Sunoco LP (SUN) 2024 Q2 法說會逐字稿

Greetings and welcome to the Sunoco LP's Second Quarter 2024 earnings call. (Operator Instructions) And as a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Scott Grischow, Senior Vice President, Finance and Treasurer. Thank you, Scott, you may begin.

歡迎參加 Sunoco LP 2024 年第二季財報電話會議。（操作員說明）謹此提醒，本次會議正在錄製中。現在我很高興向大家介紹主持人史考特‧格里肖 (Scott Grischow)，他是財務兼財務高級副總裁。謝謝你，斯科特，你可以開始了。

Thank you, and good morning, everyone. On the call with me this morning are Joe Kim, Sunoco LP's President and Chief Executive Officer; Karl Fails, Chief Operating Officer; Dylan Bramhall, Chief Financial Officer; Austin Harkness, Chief Commercial Officer, and other members of the management team.

謝謝大家，大家早安。今天早上與我通話的是 Sunoco LP 總裁兼執行長 Joe Kim；卡爾法爾斯 (Karl Fails)，營運長；迪倫‧布拉姆霍爾 (Dylan Bramhall)，財務長；商務長 Austin Harkness 和管理團隊的其他成員。

Today's call will contain forward-looking statements that include expectations and assumptions regarding the partnership's future operations and financial performance. Actual results could differ materially, and the partnership undertakes no obligation to update these statements based on subsequent events. So please refer to our earnings release as well as our filings with the SEC for a list of these factors.

今天的電話會議將包含前瞻性聲明，其中包括有關合作夥伴未來營運和財務表現的預期和假設。實際結果可能存在重大差異，合作夥伴不承擔根據後續事件更新這些聲明的義務。因此，請參閱我們的收益發布以及我們向 SEC 提交的文件，以了解這些因素的清單。

During today's call, we will also discuss certain non-GAAP financial measures, including adjusted EBITDA and distributable cash flow as adjusted. Please refer to the Sunoco LP website for a reconciliation of each financial measure. It has been another busy quarter for the partnership, and I'd like to begin my remarks by providing a brief recap. First, on April 16, we completed the divestiture of 204 convenience stores across West Texas, New Mexico and Oklahoma to 7-Eleven for approximately $1 billion.

在今天的電話會議中，我們還將討論某些非公認會計準則財務指標，包括調整後的 EBITDA 和調整後的可分配現金流量。請參閱 Sunoco LP 網站以了解每項財務指標的調節表。對於合作夥伴來說，這是又一個忙碌的季度，我想在開始發言時做一個簡短的回顧。首先，4 月 16 日，我們以約 10 億美元的價格完成了將西德克薩斯州、新墨西哥州和俄克拉荷馬州的 204 家便利商店剝離給 7-11 便利商店。

Next, on May 3, we closed the $7.3 billion acquisition of NuStar Energy. We also completed several important financing activities related to the NuStar acquisition in the second quarter. In April 30, we issued $1.5 billion in senior unsecured notes and used the proceeds to repay NuStar's credit and receivables financing facilities and fully redeem NuStar's preferred equity and subordinated note. The reduction in interest expense from this refinancing activity will generate approximately $60 million in cash flow annually.

接下來，5 月 3 日，我們完成了對 NuStar Energy 的 73 億美元收購。我們也在第二季完成了與 NuStar 收購相關的幾項重要融資活動。4月30日，我們發行了15億美元的優先無抵押票據，並將所得款項用於償還NuStar的信貸和應收帳款融資資金，並全額贖回NuStar的優先股和次級票據。此次再融資活動減少的利息支出每年將產生約 6,000 萬美元的現金流。

Before I turn to second quarter 2024 operational and financial results, I'd like to take a moment to discuss the changes in segment reporting we published in this quarter's earnings release. As we continue to grow and diversify our portfolio of stable income streams, it was now appropriate to modify the way we report our financial and operational results to give our stakeholders better clarity on the performance of the business.

在討論 2024 年第二季的營運和財務表現之前，我想花點時間討論一下我們在本季度收益發布中發布的分部報告的變化。隨著我們不斷擴大穩定收入來源組合並使之多樣化，現在適當的是修改我們報告財務和營運績效的方式，以使我們的利害關係人更了解業務績效。

To that end, we will now report three segments: fuel distribution, pipeline systems and terminals. As a reminder, the partnership previously reported two segments: fuel distribution and marketing and all other. Operations within those prior reportable segments have now been reallocated among the three new reportable segments, and prior periods have been adjusted accordingly to reflect the new segment presentation. In addition, certain operations within NuStar's prior stand-alone reporting have been reallocated based on the post-acquisition internal reporting and management structure. Therefore, segment operating results are not comparable to those previously reported by NuStar and its standalone pre-acquisition financial statements due to the reallocation of operations between the segments.

為此，我們現在將報告三個部分：燃料分配、管道系統和終端。提醒一下，該合作夥伴關係之前報告了兩個部分：燃料分銷和行銷以及所有其他部分。這些先前可報告分部內的業務現已在三個新可報告分部之間重新分配，並且先前期間已進行相應調整以反映新分部的列報。此外，NuStar先前的獨立報告中的某些業務已根據收購後的內部報告和管理結構進行了重新分配。因此，由於各分部間業務的重新分配，所以分部經營業績與 NuStar 先前報告的業績及其獨立收購前財務報表不具可比性。

In this quarter and moving forward, our fuel distribution segment will include the sale of fuel to third party customers. This segment will also include lease income as well as income from our remaining retail operations in Hawaii and along the New Jersey turnpike and other fuel distribution related services such as credit card processing and franchise royalties.

在本季及今後，我們的燃料分銷部門將包括向第三方客戶銷售燃料。該部門還包括租賃收入以及我們在夏威夷和新澤西州收費公路沿線的剩餘零售業務的收入以及信用卡處理和特許經營權使用費等其他燃料分銷相關服務的收入。

Our pipeline systems segment will include the operations of our refined products, crude oil and ammonia pipelines, as well as other assets that are operated and managed on an integrated basis with our pipeline systems, including certain terminal and storage assets.

我們的管道系統部門將包括我們的煉油產品、原油和氨管道的運營，以及與我們的管道系統整合營運和管理的其他資產，包括某些碼頭和儲存資產。

Finally, our terminals segment will include our storage facilities that provide storage handling and other services on a fee basis for refined products, crude oil, specialty chemicals, renewable fuels and other liquids. This segment will also include the operations of our four transmix processing facilities. Terminals that are integrated within the operations of the pipeline system segment are not included in this segment.

最後，我們的碼頭部門將包括我們的儲存設施，為成品油、原油、特殊化學品、再生燃料和其他液體提供收費的儲存處理和其他服務。該部門還將包括我們四個混合加工設施的運作。整合在管道系統段運作中的終端不包括在該段中。

Karl will discuss the results for each of the segments later in the call, but I will first discuss the consolidated results for the partnership. As a reminder, our second quarter results include approximately two months of NuStar operations, given the May 3 close date.

卡爾將在稍後的電話會議中討論每個部分的結果，但我將首先討論合作夥伴關係的綜合結果。提醒一下，鑑於 5 月 3 日截止日期，我們第二季的業績包括大約兩個月的 NuStar 營運。

Sunoco delivered a record second quarter adjusted EBITDA of $400 million, excluding approximately $80 million of one-time transaction expenses. Total expenses in the second quarter were $285 million, which includes the $80 million in transaction expenses I just referenced. Roughly three quarters of the transaction expenses this quarter were related to NuStar severance payments, and we expect total transaction expenses will be approximately $100 million, the vast majority of which will be spent in 2024.

Sunoco 在第二季調整後 EBITDA 達到創紀錄的 4 億美元，其中不包括約 8,000 萬美元的一次性交易費用。第二季的總費用為 2.85 億美元，其中包括我剛才提到的 8,000 萬美元的交易費用。本季約四分之三的交易費用與 NuStar 遣散費有關，我們預計交易費用總額約為 1 億美元，其中絕大多數將在 2024 年支出。

In the second quarter, we spent $52 million in growth capital and $26 million on maintenance capital. We expect to spend at least $300 million of growth capital in 2024 and approximately $120 million maintenance capital. Second quarter distributable cash flow as adjusted was $295 million, yielding a current quarter coverage ratio of 1.9 times and a trailing 12-month ratio of 1.8 times. On July 25, we declared an $0.8756 per unit distribution, unchanged from last quarter.

第二季度，我們花了 5,200 萬美元的成長資本和 2,600 萬美元的維護資本。我們預計 2024 年將花費至少 3 億美元的成長資本和約 1.2 億美元的維護資本。調整後的第二季可分配現金流量為 2.95 億美元，當季覆蓋率為 1.9 倍，過去 12 個月覆蓋率為 1.8 倍。7 月 25 日，我們宣布每單位分配 0.8756 美元，與上季持平。

Our liquidity position and balance sheet remained strong. At the end of the second quarter, we had approximately $1.4 billion of liquidity remaining on our $1.5 billion revolving credit facility. Following the completion of the refinancing activity I mentioned earlier, we now have a balanced debt maturity profile and a fully unsecured capital structure. Leverage at the end of the quarter was 4.1 times, positioning us to deliver on our commitment to a long-term leverage target of four times.

我們的流動性狀況和資產負債表仍然強勁。截至第二季末，我們 15 億美元的循環信貸額度中剩餘約 14 億美元的流動資金。在我之前提到的再融資活動完成後，我們現在擁有平衡的債務到期狀況和完全無擔保的資本結構。本季末的槓桿率為 4.1 倍，使我們能夠兌現對四倍長期槓桿目標的承諾。

I'd now like to spend a few moments discussing the recent announcements we made following the end of the second quarter. First, on July 16, we announced the formation of a joint venture with Energy Transfer, combining our respective crude oil and produced water gathering assets in the Permian Basin. The joint venture will operate more than 5,000 miles of crude oil and water gathering pipelines with crude oil storage capacity in excess of 11 million barrels.

我現在想花一些時間討論我們在第二季末後發布的最新公告。首先，7 月 16 日，我們宣布與 Energy Transfer 成立一家合資企業，合併我們各自在二疊紀盆地的原油和採出水收集資產。該合資企業將營運超過5,000英里的原油和集水管道，原油儲存能力超過1,100萬桶。

Energy Transfer will serve as the operator of the joint venture and hold a 67.5% interest with Sunoco holding at 32.5% interest. The formation of the joint venture has an effective date of July 1, 2024, and is expected to be immediately accretive to our unitholders.

Energy Transfer將作為合資公司的營運商，持有67.5%的權益，Sunoco持有32.5%的權益。該合資企業的成立將於 2024 年 7 月 1 日生效，預計將立即為我們的單位持有人帶來收益。

Next, on June 28, we signed a definitive agreement to acquire a refined product terminal in Portland, Maine. Strategically located terminal provides refined product supply and logistics services to East Coast demand markets and will allow Sunoco to further expand its fuel distribution business in the region.

接下來，6 月 28 日，我們簽署了收購緬因州波特蘭煉油產品碼頭的最終協議。位於戰略位置的碼頭為東海岸需求市場提供精緻的產品供應和物流服務，並將使太陽石油公司能夠進一步擴大其在該地區的燃料分銷業務。

Similar to our previous terminal acquisitions, we expect a mid-single digit synergized EBITDA multiple on this investment and to be immediately accretive to our unitholders. We expect the acquisition will close in the third quarter. We remain confident in the strength of the legacy Sunoco business and the contribution from the NuStar acquisition. And I'd like to take a moment to review the key elements of our 2024 business outlook we provided in June. First we continue to expect 2024 for adjusted EBITDA to be in a range of $1.46 billion to $1.52 billion. This guidance range excludes transaction expenses and synergies. Second, we increased our synergy expectations from the NuStar acquisition and now expect to achieve approximately $200 million in commercial and expense synergies annually, an increase from our initial estimate of $150 million. Expense synergies will account for over $100 million of this total amount. We expect to achieve approximately $50 million of synergies in 2024, $125 million in 2025 and the full $200 million run rate in 2026.

與我們先前的終端收購類似，我們預計此項投資將實現中個位數的協同 EBITDA 倍數，並將立即為我們的單位持有人帶來增值。我們預計收購將在第三季完成。我們對 Sunoco 傳統業務的實力以及收購 NuStar 所做的貢獻仍然充滿信心。我想花點時間回顧我們 6 月提供的 2024 年業務展望的關鍵要素。首先，我們繼續預期 2024 年調整後 EBITDA 將在 14.6 億美元至 15.2 億美元之間。此指導範圍不包括交易費用和協同效應。其次，我們提高了對收購 NuStar 的協同效應預期，現在預計每年將實現約 2 億美元的商業和費用協同效應，高於我們最初估計的 1.5 億美元。其中費用綜效將佔總金額超過 1 億美元。我們預計 2024 年將實現約 5,000 萬美元的綜效，2025 年將達到 1.25 億美元的綜效，2026 年將達到 2 億美元的全額運行率。

I'd like to conclude my remarks by stating that our financial position continues to be stronger than at any time in Sunoco LP's history, which we believe will provide us with the continued flexibility to balance pursuing high-return growth opportunities, maintaining a healthy balance sheet and targeting a secure and growing distribution for our unitholders.

我想在結束演講時指出，我們的財務狀況繼續比 Sunoco LP 歷史上的任何時候都要強勁，我們相信這將為我們提供持續的靈活性，以平衡追求高回報增長機會和保持健康的平衡表並致力於為我們的單位持有者提供安全且不斷增長的分配。

With that, I'll now turn it over to Karl to walk through some additional thoughts on our second quarter performance.

現在，我將把它交給卡爾，讓他對我們第二季的表現進行一些額外的思考。

Thanks, Scott. Good morning, everyone. As Scott just walked through, our teams have been very busy this quarter and the operational and financial results highlight the strength of our business and the benefits that come from the new additions to our portfolio. Scott also provided some definitions for the three segments we will be using to report going forward. Let me walk through our results in each of those segments and provide some perspective on each business line.

謝謝，斯科特。大家早安。正如斯科特剛剛走過的那樣，我們的團隊本季非常忙碌，營運和財務表現突顯了我們業務的實力以及我們投資組合新成員帶來的好處。斯科特也為我們將在未來報告中使用的三個部分提供了一些定義。讓我回顧一下我們在每個細分市場的結果，並提供對每個業務線的一些看法。

Starting with our fuel distribution segment, volumes remained strong in the second quarter. We distributed 2.2 billion gallons, up 4% versus last quarter and up 5% versus the second quarter of last year. Our volume growth continues to outpace industry trends as a result of our investments and profit optimization strategies.

從我們的燃料分銷部門開始，第二季的銷售仍然強勁。我們分發了 22 億加侖，比上季成長 4%，比去年第二季成長 5%。由於我們的投資和利潤優化策略，我們的銷售成長持續超過行業趨勢。

Reported margin for the quarter was $0.118 per gallon compared to $0.11 per gallon last quarter and $0.119 per gallon for the second quarter of 2023. Adjusted EBITDA for the segment was $246 million, excluding $1 million of transaction expenses. This was an 8% increase over the second quarter of last year. There are two notable changes that impacted our segment fuel profit and CPG in the second quarter and will be relevant going forward.

本季度報告的利潤為每加侖 0.118 美元，而上季度為每加侖 0.11 美元，2023 年第二季為每加侖 0.119 美元。該部門調整後的 EBITDA 為 2.46 億美元，不包括 100 萬美元的交易費用。這比去年第二季增長了 8%。有兩個顯著的變化影響了我們第二季度的燃料利潤和 CPG 業務，並將與未來相關。

First is the divestiture of the West Texas retail assets to 7-Eleven. Since the margin on those gallons was above our average, removing them reduces our reported CPG following the sale.

首先是將西德州零售資產剝離給 7-11。由於這些加侖的利潤高於我們的平均水平，因此刪除它們會減少我們在銷售後報告的 CPG。

The second impact relates to our introduction of additional segments this quarter. In the past, the profit generated by processing transmix in our facilities was included in our reported fuel CPG. Beginning this quarter, those profit dollars are included in our terminal segment. The combined impact of these two factors means that on an apples-to-apples basis, our reported CPG will be lower by 80 to 120 basis points this quarter and going forward.

第二個影響與我們本季引入的其他細分市場有關。過去，在我們的設施中加工混合燃料產生的利潤包含在我們報告的燃料 CPG 中。從本季開始，這些利潤將計入我們的終端部門。這兩個因素的綜合影響意味著，在同類基礎上，我們報告的 CPG 本季及未來將降低 80 至 120 個基點。

This is simply a mix impact and does not change our strategy or our view of the business. Even with these impacts, our fuel profit performance this quarter was very strong. In addition to continued higher breakeven margins, there were various market tailwinds throughout the quarter that we were able to take advantage of, including improved blend margins and falling gasoline and diesel prices as opposed to rising prices in the first quarter. While market conditions can result in some quarter-to-quarter variation, we expect that our fuel profit optimization strategies, coupled with our growth plans, will continue to lead to increasing fuel profit over the long run.

這只是一種混合影響，不會改變我們的策略或我們對業務的看法。即使受到這些影響，我們本季的燃料利潤表現仍然非常強勁。除了持續提高的損益平衡利潤率之外，整個季度我們還能夠利用各種市場順風車，包括混合利潤率提高以及汽油和柴油價格下降（而不是第一季價格上漲）。雖然市場狀況可能會導致一些季度與季度的變化，但我們預計，我們的燃油利潤優化策略，加上我們的成長計劃，從長遠來看將繼續導致燃油利潤增加。

In our pipeline system segment, we reported nearly 1.3 million barrels per day of throughput. Segment adjusted EBITDA for the second quarter was $111 million, excluding $58 million of transaction expenses. Given our change in reporting segments and the fact that the majority of the assets in this segment came as part of the recent NuStar acquisition, there will not be comparisons to prior quarters or previous year until we cycle through the upcoming quarters. With only a couple of months of ownership, the segment performed in line with our expectations relative to our pre-acquisition analysis.

在我們的管道系統部分，我們報告每天的吞吐量接近 130 萬桶。第二季部門調整後 EBITDA 為 1.11 億美元，不包括 5,800 萬美元的交易費用。鑑於我們報告分部的變化以及該分部的大部分資產來自最近 NuStar 收購的一部分，在我們循環查看未來幾個季度之前，不會與前幾個季度或去年進行比較。由於所有權只有幾個月，該部門的表現符合我們相對於收購前分析的預期。

As we look forward, we expect some impacts in the third quarter from planned refinery turnarounds on our system and revenue of a few MVC contracts that we won't recognize until the fourth quarter. Overall, as we look across a full year period, we like the stability of the business.

展望未來，我們預計煉油廠計劃的檢修將在第三季度對我們的系統和一些 MVC 合約的收入產生一些影響，而這些影響我們要到第四季度才能認識到。總的來說，從全年來看，我們喜歡業務的穩定性。

In our terminal segment, we reported over 600,000 barrels per day of throughput and segment adjusted EBITDA of $43 million, excluding $21 million of transaction expenses. Both our legacy Sunoco and our legacy NuStar systems performed well, with our throughputs and storage revenues in line with expectations.

在我們的碼頭部門，我們報告每天的吞吐量超過 60 萬桶，部門調整後 EBITDA 為 4,300 萬美元，不包括 2,100 萬美元的交易費用。我們的傳統 Sunoco 和傳統 NuStar 系統均表現良好，吞吐量和儲存收入符合預期。

We also received the benefit of a full quarter of volumes and storage revenues from our acquisition of Zenith Europe assets that we closed on in the first quarter. The overall integration process of our larger business is proceeding well. Scott just reiterated our updated synergy numbers that we shared in June. Most of the synergies that we will capture in 2024 are on the expense side, and we have already made significant progress on those efforts.

我們也從第一季完成的 Zenith Europe 資產收購中獲得了整個季度的銷售和儲存收入。我們較大業務的整體整合進程進展順利。斯科特剛剛重申了我們在 6 月分享的最新協同數據。我們將在 2024 年實現的大部分協同效應都在費用方面，而且我們已經在這些努力方面取得了重大進展。

Now that we have operated the legacy NuStar assets for a few months, we have been able to flip over from the planning process to execution mode on the commercial opportunities that are enabled by the ownership of these high-quality assets. Any capital that we will spend this year to capture these synergies is incorporated in the numbers that Scott shared on our 2024 guidance. One of the biggest steps on the commercial synergy front was the completion of the analysis of our crude system and the recent announcement of the joint venture we entered into with Energy Transfer in the Permian Basin. This partnership leverages our combined footprint to deliver more value to customers and provide additional commercial flexibility. This was a great deal for both Sun and ET, with incremental accretion and synergies above and beyond our original deal economics. It is one of the primary reasons we were able to increase our 2026 run rate synergy number to $200 million.

現在，我們已經經營 NuStar 的遺留資產幾個月了，我們已經能夠將這些優質資產的所有權所帶來的商業機會從規劃流程轉變為執行模式。我們今年為實現這些協同效應而花費的任何資本都包含在 Scott 在我們的 2024 年指導中分享的數字中。商業協同最大的步驟之一是完成了對我們的原油系統的分析，以及最近宣布我們與二疊紀盆地能源轉移公司成立的合資企業。這種合作關係利用我們的合併足跡為客戶提供更多價值並提供額外的商業靈活性。這對 Sun 和 ET 來說都是一筆巨大的交易，其增量增值和協同效應超出了我們最初的交易經濟效益。這是我們能夠將 2026 年運行率綜效提高到 2 億美元的主要原因之一。

Before turning the time over to Joe, I will wrap up by emphasizing that we are off to a strong start to the year. Our fuel distribution business remains strong and resilient, and the focus on profit optimization and growth will continue going forward. We've already begun delivering on synergies in our pipeline systems and terminals businesses. As we fully integrate these business lines, we do expect some quarter-to-quarter variations as transaction expenses, seasonality in various contract terms flow through our reported results. What we are very confident in is our ability to deliver on our overall adjusted EBITDA guidance we provided for the year, our ability to deliver on expense reductions and hit our overall synergy targets. Joe?

在把時間交給喬之前，我要強調我們今年有一個好的開始。我們的燃料分銷業務仍然強勁且富有彈性，未來將繼續專注於利潤優化和成長。我們已經開始在管道系統和碼頭業務中發揮協同效應。隨著我們完全整合這些業務線，我們確實預計會出現一些季度變化，因為交易費用、各種合約條款的季節性都會影響我們報告的結果。我們非常有信心的是，我們有能力實現今年提供的整體調整後 EBITDA 指導，我們有能力實現費用削減並實現整體協同目標。喬？

Thanks, Karl, and good morning, everyone. We're halfway through 2024 and as expected, our business continues to perform very well. Scott and Karl have discussed the key details related to the second quarter results. Let me provide some additional perspectives about our business as a whole.

謝謝卡爾，大家早安。2024 年已過半，如預期，我們的業務持續表現良好。斯科特和卡爾討論了與第二季業績相關的關鍵細節。讓我提供一些關於我們整個業務的額外觀點。

Starting with our fuel distribution segment. Year-to-date, we had record volumes, while margins continue to remain strong, especially in the second quarter. But most importantly, our fuel profit continues to grow. We have done this while always controlling expenses. Our performance in this segment has been a key driver of two consecutive record EBITDA quarters.

從我們的燃料分銷部門開始。今年迄今為止，我們的銷售量創歷史新高，而利潤率持續保持強勁，尤其是在第二季。但最重要的是，我們的燃料利潤持續成長。我們在做到這一點的同時始終控制著開支。我們在這一領域的業績是連續兩季 EBITDA 創紀錄的關鍵驅動力。

Keep in mind, this has been accomplished even with the West Texas divestiture. Looking forward, we're confident that our strong performance will continue. Breakeven margins remain high and we expect them to remain high in the future. At the same time, commodity volatility continues to provide fuel profit optimization opportunities. And finally, our growth capital continues to deliver expected results. As for our terminals segment, in less than five years, we've grown EBITDA in this segment by over 500%. This growth has come from two areas, first by acquiring quality assets at reasonable valuations. This includes both single and multi-asset portfolios as well as larger opportunities like NuStar.

請記住，即使是西德克薩斯州的資產剝離也已經實現了這一點。展望未來，我們有信心繼續保持強勁的業績。損益平衡利潤率仍然很高，我們預計未來也將維持在高水準。同時，大宗商品波動持續提供燃料利潤優化機會。最後，我們的成長資本持續帶來預期成果。至於我們的碼頭部門，在不到五年的時間裡，我們在該部門的 EBITDA 成長了 500% 以上。這種成長來自兩個方面，首先是透過以合理的估值收購優質資產。這包括單一和多資產投資組合以及像 NuStar 這樣的更大機會。

Second, we optimize the utilization of these assets, synergizing down to very attractive valuation. Our team has done an outstanding job of delivering on synergies by being the low-cost operator and executing on commercial opportunities. We expect our growth in this segment to continue.

其次，我們優化這些資產的利用，協同降低至非常有吸引力的估值。我們的團隊透過成為低成本營運商並抓住商業機會，在實現協同效應方面表現出色。我們預計該領域的成長將持續下去。

As for our pipeline systems segment, the NuStar assets are a great addition. We will employ the same proven principles that have been used in the terminal segment to maximize their contribution and value. Permian JV with Energy Transfer is a good initial example. I provides further stability and additional growth opportunities above the stand-alone case.

對於我們的管線系統部門來說，NuStar 資產是一個很好的補充。我們將採用與終端領域相同的經過驗證的原則，以最大限度地發揮其貢獻和價值。二疊紀能源轉移合資企業就是一個很好的初步例子。I 在獨立案例之上提供了進一步的穩定性和額外的成長機會。

Let me wrap up. When we announced the NuStar deal in January, I was confident that we will deliver on the economics. And with our integration efforts to date, I'm even more confident that we'll deliver double digit accretion while maintaining a strong balance sheet. We still have additional integration efforts to complete, but we are approaching business as usual. Bottom line, our business model remains strong and continues to deliver our growth, and we expect this to continue.

讓我總結一下。當我們在一月份宣布 NuStar 交易時，我相信我們能夠實現經濟效益。透過迄今為止我們的整合工作，我更有信心我們將實現兩位數的成長，同時保持強勁的資產負債表。我們仍然需要完成額外的整合工作，但我們正在一切如常。最重要的是，我們的業務模式仍然強勁，並繼續實現我們的成長，我們預計這種情況將繼續下去。

Operator, that concludes our prepared remarks. You may open the line for questions.

接線員，我們準備好的發言到此結束。您可以開啟提問熱線。

Thank you. We'll now be conducting a question and answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員說明）

One moment, please while we poll for questions.

請稍等一下，我們進行投票提問。

Thank you. Our first question is from Theresa Chen with Barclays. Please proceed with your question.

謝謝。我們的第一個問題來自巴克萊銀行的Theresa Chen。請繼續你的問題。

Morning, and thank you for taking my questions. Maybe first on the synergies, can we get some more color on the projects and execution and synergy outlook on the refined product side and on the crude side, it was in terms of your JV with ET, how would it mechanically work to kind of balance the downstream interest of ET and across our long-haul pipelines to Nederland as well as your asset in Corpus Christi?

早安，謝謝你回答我的問題。也許首先是關於協同效應，我們能否對精煉產品方面和原油方面的項目、執行和協同前景有更多的了解，就你們與 ET 的合資企業而言，它將如何機械地實現平衡ET 的下游利益以及我們通往荷蘭的長途管道以及您在科珀斯克里斯蒂的資產？

Yes, Theresa, thanks for the question. This is Karl. I think I'll start with the crude side of the business. As I shared in my prepared remarks, we're really excited about the JV in the Permian with ET. And I think the press release that we put out on that joint venture was pretty clear on the assets that were included in that.

是的，特蕾莎，謝謝你的提問。這是卡爾.我想我將從業務的原始方面開始。正如我在準備好的演講中所分享的那樣，我們對與 ET 在二疊紀的合資企業感到非常興奮。我認為我們發布的關於該合資企業的新聞稿對於其中包含的資產非常清楚。

And that's really the crude -- the gathering on both the crude and water side. And then ET and others obviously have a long-haul pipes leaving the Permian to various destinations. So I think what the JV provides is the combination of those two gathering systems now provide more flexibility for all customers to really access multiple exit points and the commercial team can really work with customers to provide the best value for both us in the JV and their opportunities.

這確實是原油——原油和水方面的聚集。然後，ET 和其他人顯然有一條長途管道將二疊紀盆地送到各個目的地。因此，我認為合資企業提供的是這兩個收集系統的組合，現在為所有客戶提供了更大的靈活性，以真正訪問多個出口點，並且商業團隊可以真正與客戶合作，為合資企業中的我們及其客戶提供最佳價值。

So there are -- we have a terminal in North Beach and some pipes in South Texas, South Texas Crude System, and we think there's some opportunities there that we're still looking at. And I'll let ET talk about their crude system and what opportunities they think they're going to have on the rest of their system.

因此，我們在北海灘有一個終端，在德克薩斯州南部、南德克薩斯原油系統有一些管道，我們認為那裡有一些我們仍在尋找的機會。我將讓 ET 談論他們的原始系統以及他們認為他們將在系統的其餘部分中獲得哪些機會。

As far as the the other synergies, whether it's in refined product space, I've talked about in the past, the areas that we're excited about the vertical integration between the fuel distribution business and the midstream business.

至於其他協同效應，無論是在精細產品領域，我過去曾談到過，我們對燃料分銷業務和中游業務之間的垂直整合感到興奮。

So the same geographies that I've hit on the past, whether it's the Midwest or the West Coast, I think we probably haven't talked enough about South Texas itself where, if you remember, we built our terminal in Brownsville and stood up a nice our export business into Northern Mexico where we were selling product on the US side and folks were exporting. Well, now we have a much bigger platform and more assets where we can grow that business and secure the utilization of the midstream assets that we have.

因此，我過去接觸過的相同地區，無論是中西部還是西海岸，我認為我們可能還沒有充分討論南德克薩斯州本身，如果你還記得的話，我們在布朗斯維爾建立了我們的航站樓樓並站起來我們對墨西哥北部的出口業務很好，我們在美國一側銷售產品，人們也在出口。好吧，現在我們擁有更大的平台和更多的資產，我們可以在其中發展業務並確保我們擁有的中游資產的利用。

Another area that we probably haven't talked about as much is NuStar had a marine fuel distribution business. It was kind of small, but we think that fits perfectly into our strategy of being able to sell fuel to customers and utilize our midstream assets to distribute that fuels. So we think there's value creation in that marine fuel business as well.

我們可能沒有過多談論的另一個領域是 NuStar 擁有船用燃料分銷業務。它有點小，但我們認為這完全符合我們能夠向客戶銷售燃料並利用我們的中游資產分配燃料的策略。因此，我們認為船用燃料業務也能創造價值。

And maybe turning to a different region. Within the active pace of M&A that you have for years now, you built out a pretty comprehensive terminalling network across the Atlantic Basin, whether it be domestically in PADD 1 or internationally and with the Portland asset most recently. So I guess my question is, how does this position SUN versus other large-scale refined product marketers that compete across the Atlantic Basin? And are you close to being done in this terminal roll-up within this region? Or do you see other low-hanging fruit out there that would fit well within your portfolio?

也許轉向不同的地區。在你們多年來積極的併購步伐中，你們建立了一個橫跨大西洋盆地的相當全面的終端網絡，無論是國內的 PADD 1 還是國際的以及最近的波特蘭資產。所以我想我的問題是，與其他跨大西洋盆地競爭的大型精煉產品行銷商相比，SUN 的定位如何？您在該地區的終端匯總工作即將完成嗎？或者您看到其他適合您投資組合的容易實現的目標？

Would love to get your view here.

很想在這裡聽聽您的看法。

Hey, Theresa. This is Joe. Simply put, are we done?

嘿，特蕾莎。這是喬。簡而言之，我們完成了嗎？

No, we're not done. We think there's still ample opportunities. And you know, as far as I think we've been the biggest player on doing roll-ups in the terminal space, especially on the refined products. And I don't see those opportunities diminishing. I think we're actually, I would say, in even a better position than we were even a year ago or two years ago because as we add to our network and we add our capabilities, especially on the fuel distribution side, we have a bigger platform and we have more synergy opportunities.

不，我們還沒完成。我們認為仍有充足的機會。你知道，據我認為，我們一直是終端領域整合的最大參與者，尤其是在精煉產品方面。我不認為這些機會正在減少。我認為，我想說，我們實際上比一年前或兩年前處於更好的位置，因為當我們增加我們的網絡並增加我們的能力時，特別是在燃料分配方面，我們有一個更大的平台，我們有更多的協同機會。

The way that we look at it is pretty simple. Whenever we look for acquisitions, we're looking for a few things, stable income, we're looking for growth opportunities, we're looking for the ability for Sun to bring synergies to the table, and finally, good valuations. And the market has yielded some very attractive valuations for us, and we've been able to synergize that down to the mid-single digit multiples and we see that continuing.

我們看待它的方式非常簡單。每當我們尋找收購時，我們都會尋找一些東西，穩定的收入，我們正在尋找成長機會，我們正在尋找Sun帶來協同效應的能力，最後，良好的估值。市場已經為我們帶來了一些非常有吸引力的估值，我們已經能夠將其協同到中個位數倍數，並且我們看到這種情況會持續下去。

And just the competitive dynamic across Atlantic Basin, please?

還有大西洋盆地的競爭動態，好嗎？

Yes.

是的。

I think the value that Joe talks about really comes from the combination of our fuel distribution and the terminalling assets. So the criteria that Joe used on the midstream side, we want assets that are well contracts. So you look at the Europe deal that we just did. If you look at it on a standalone midstream basis, it's strong, they're well contracted, utilizations high, high quality customers. And so that's like a strong foundation. And then our commercial team, particularly on the refined products supply team, can look at it provides option value, right? As they integrate that with the waterborne supply that's coming into the East Coast. You know, when we did the deal, we fully expected that there were probably some opportunities commercially that we didn't even anticipate that we were able to find as we looked at that.

我認為喬所說的價值實際上來自我們的燃料分銷和終端資產的結合。因此，喬在中游方面使用的標準是，我們希望資產具有良好的合約性。所以你看看我們剛剛達成的歐洲協議。如果你從獨立的中游基礎來看，它很強大，他們的合約很好，利用率很高，高品質的客戶。這就像一個堅實的基礎。然後我們的商業團隊，特別是成品油供應團隊，可以看到它提供了選擇權價值，對嗎？當他們將其與進入東海岸的水運供應整合起來時。你知道，當我們進行交易時，我們完全預期可能會有一些商業機會，而我們在考慮時甚至沒有預料到能夠找到這些機會。

So Joe talked about the criteria. If there are additional assets in Europe where we can meet those same criteria. And there are additional supply points that come in that could either impact our primarily our East Coast business, we're going to look at that. As far as the competitive landscape, we sell a commodity, right? So it's pretty competitive market. There are a lot of participants in that market. And but we like our position and we think the vertical integration definitely gives us advantage.

所以喬談到了標準。如果歐洲有其他資產，我們可以滿足同樣的標準。還有其他供應點可能會影響我們主要的東海岸業務，我們將對此進行研究。就競爭格局而言，我們賣的是商品，對嗎？所以這是一個競爭相當激烈的市場。該市場有很多參與者。但我們喜歡我們的立場，我們認為垂直整合絕對為我們帶來了優勢。

Thank you all very much.

非常感謝大家。

Thank you. Our next question is from Spiro Dounis with Citi. Please proceed with your question.

謝謝。我們的下一個問題來自花旗銀行的 Spiro Dounis。請繼續你的問題。

Thanks, operator.

謝謝，接線生。

Good morning, team.

早上好，團隊。

Wanted to go back to the joint venture with Energy Transfer.

想回到與Energy Transfer的合資企業。

Joe, you had mentioned in your prepared remarks that this is going to provide some additional growth opportunities. And so I know it's early days, but just curious if you've been able to get in there and start to identify any potential growth projects available to you now under the new structure?

喬，您在準備好的發言中提到，這將提供一些額外的成長機會。所以我知道現在還為時過早，但只是好奇您是否能夠進入那裡並開始確定新結構下現在可供您使用的任何潛在增長項目？

Yes. Yes is the short answer, Spiro. As we've worked with Energy Transfer's commercial team, and as we mentioned, they're going to be the operator.

是的。簡短的回答是，是的，斯皮羅。正如我們與 Energy Transfer 的商業團隊合作一樣，正如我們所提到的，他們將成為營運商。

Yes, when we did the valuation and the negotiations of the joint venture, we had very concrete ideas, some requiring capital, some not requiring capital. Then we have structures that even additional ideas that come down the road, we're both going to participate in. So I don't know that there's a lot of specifics that I share other than there are concrete things on the table that are already in execution.

是的，我們在做合資公司的估值和談判的時候，我們有非常具體的想法，有的需要資金，有的不需要資金。然後我們就有了一些結構，甚至未來出現的額外想法，我們都會參與其中。所以我不知道除了已經在執行的具體事情之外，我還分享了許多細節。

Got it. Got it. We'll wait to hear more about that. The second question is a bit of a macro question. Recession has entered the discussion in the last few days. I don't think that's going to surprise anybody at this point based on sort of volatility. But just curious, you just remind us, as you think about Sun and how you performed historically during any sort of downturn. Can you just walk us through kind of what the typical playbook is there?

知道了。知道了。我們將等待聽到更多相關資訊。第二個問題是一個有點宏觀的問題。經濟衰退在過去幾天進入了討論。基於某種波動性，我認為目前這不會讓任何人感到驚訝。但只是好奇，你只是提醒我們，當你想到 Sun 以及你在任何經濟低迷時期的歷史表現。您能否向我們介紹典型的劇本？

Yes, Spiro, this is Austin. In terms of -- I think the second quarter is a good example. As we've shared in the past, we really optimize around fuel profit versus solving for volume or CPG margin independently, right? And every quarter is going to be different and some favor optimizing fuel profit by optimizing volume at the expense of CBG or vice versa or in the case of the second quarter, it allows us to sort of optimize both.

是的，斯皮羅，這是奧斯汀。就我而言，我認為第二季度是一個很好的例子。正如我們過去分享的那樣，我們真正圍繞燃油利潤進行優化，而不是獨立解決銷售或 CPG 利潤，對吧？每個季度都會有所不同，有些人傾向於透過優化銷量來優化燃料利潤，但以犧牲CBG 為代價，反之亦然，或者在第二季度的情況下，它允許我們對兩者進行某種程度的優化。

And as Karl mentioned, I think Q2 benefited from the continued backdrop of elevated breakevens, which we continue to see sustained, which creates a constructive margin environment to operate in. But it's never one thing or one variable that's going to drive our results. And so that's on the margin side of things. On the volume side, we think there's a couple of things at play here. From Sun standpoint, our business has proven resilient, and we're confident that we can perform across a range of scenarios. Our base case assumption is that the rest of the year from a macro fuel demand standpoint, it's going to look similar to the first half of this year as well as much of last year. But if our assumptions are optimistic, meaning there's demand destruction in the market. I think history has shown that that will elevate breakevens and create a further constructive margin environment to operate in.

正如卡爾所提到的，我認為第二季受益於損益平衡點持續上升的背景，我們繼續看到這種情況持續存在，這創造了一個建設性的經營利潤環境。但絕不是一件事或一個變數會推動我們的結果。所以這是在邊緣方面。在音量方面，我們認為有幾個因素在起作用。從 Sun 的角度來看，我們的業務已被證明具有彈性，並且我們有信心在各種場景中執行任務。我們的基本假設是，從宏觀燃料需求的角度來看，今年剩餘時間將與今年上半年以及去年的大部分時間相似。但如果我們的假設樂觀，就代表市場需求受到破壞。我認為歷史已經表明，這將提高損益平衡，並創造一個更具建設性的經營利潤環境。

On the flip side, if demand exceeds our base case, I think our business, our portfolio, our commercial teams are well positioned to execute in that environment as well.

另一方面，如果需求超過我們的基本情況，我認為我們的業務、我們的產品組合、我們的商業團隊也有能力在這種環境中執行。

So what we don't have a crystal ball on volume or margin. I think, you know, history has proven that volatility can be constructive to our ability to optimize fuel profit, recognize there's going to be quarter-to-quarter volatility going going forward.

所以我們沒有關於成交量或利潤率的水晶球。我認為，歷史已經證明，波動性對我們優化燃料利潤的能力有建設性作用，我們認識到未來將出現季度與季度之間的波動性。

Spiro, just to add onto what Austin said. Austin talked about our fuel distribution business. I think our record kind of speaks for itself that we've been able to navigate and thrive in various macro environments. But just as importantly, the NuStar acquisition was big for us. We have diversified our portfolio where the pipeline systems, internal systems are a huge addition to our overall portfolio.

Spiro，只是補充一下 Austin 所說的內容。奧斯汀談到了我們的燃料分銷業務。我認為我們的記錄足以說明我們已經能夠在各種宏觀環境中駕馭並蓬勃發展。但同樣重要的是，收購 NuStar 對我們來說意義重大。我們已經實現了產品組合的多元化，其中管道系統、內部系統是我們整體產品組合的重要補充。

If you look at the assets that we acquired. The vast majority of the income is take-or-pay contracts or a term that NuStar use, which I think is very appropriate, which is structurally exclusive, meaning that the refinery is connected to it. They have one source in and out, and that's us. So we like them.

如果你看看我們收購的資產。絕大多數收入是照付不議合約或NuStar使用的術語，我認為這是非常合適的，它在結構上是排他性的，這意味著煉油廠與之相連。他們的進出來源只有一個，那就是我們。所以我們喜歡他們。

And then on top of that, I guess a lot of the some of the rates are FERC regulated. So in an inflationary period, we have the ability to absorb some of the inflation into our rates on a going forward basis. So if you add all that up and you add the fact that in a volatile macro environment, I think we've proven our ability to control expenses. So if we're in a inflationary or recessionary period, obviously its problematic for the US and for the global basis. But I think it's also provides an opportunity for Sun to distinguish itself in these volatile environments.

最重要的是，我猜很多利率都受到 FERC 的監管。因此，在通貨膨脹時期，我們有能力在未來的基礎上將部分通貨膨脹吸收到我們的利率中。因此，如果你把所有這些加起來，再加上在動蕩的宏觀環境中這一事實，我認為我們已經證明了我們控制開支的能力。因此，如果我們處於通貨膨脹或衰退時期，顯然對美國和全球都會產生問題。但我認為這也為 Sun 在這些不穩定的環境中脫穎而出提供了機會。

Perfect.

完美的。

I'll leave it there for today.

今天我就把它留在那裡。

Thank you, gentlemen.

謝謝你們，先生們。

(Operator Instructions) Our next question is from Ned Baramov with Wells Fargo. Please proceed with your question.

（操作員說明）我們的下一個問題來自富國銀行的 Ned Baramov。請繼續你的問題。

Hey, good morning.

嘿，早安。

Thanks for taking the questions.

感謝您提出問題。

Another one on the NuStar assets, which are now part of the JV with Energy Transfer. Could you maybe talk about the credit ratings of producers you serve and also whether you're on the hook for well connect CapEx and EPS? Is this part of your maintenance and -- or growth CapEx guidance?

另一項是關於 NuStar 資產的，該資產現在是 Energy Transfer 合資企業的一部分。您能否談談您所服務的生產商的信用評級，以及您是否有良好的資本支出和每股盈餘？這是您的維護和成長資本支出指南的一部分嗎？

So I'll take the last part on capital.

所以我將討論資本的最後一部分。

Yes, the capital -- our capital contribution to the joint venture is included in our guidance for the year. As far as details on the on the credit ratings of customers, I think I'd probably refer you to disclosures that Energy Transfer has made in the past and or NuStar made in the past. I mean, the producer portfolio hasn't changed just because we entered into the JV. I think the strength of the JV and of both companies is we should be able to be able to provide services to very well-capitalized and high credit customers as well as some smaller ones on that so we should be able to create more value because of that.

是的，資本－我們對合資企業的出資已包含在我們今年的指導中。至於客戶信用評級的詳細信息，我想我可能會建議您參考 Energy Transfer 過去和/或 NuStar 過去所做的披露。我的意思是，製片人組合併沒有因為我們加入合資企業而改變。我認為合資企業和兩家公司的優勢在於我們應該能夠為資本雄厚、信用度高的客戶以及一些規模較小的客戶提供服務，因此我們應該能夠創造更多價值，因為那。

Hey, Ned. This is Joe. Let me add kind of more on a holistic basis. If you look at all -- as far as on the the addition of NuStar, we've got two credit upgrades by two agencies. And if you look at just the profile of the credit risk we have, we're in a better position. And then you look at the addition of ET's customer base. Net-net, any way you look at it, I think the conclusion is pretty simple is that on a credit profile basis, we're in a better position because of NuStar, and we're an equally or better positioned because of the JV with Energy Transfer.

嘿，內德。這是喬。讓我在整體基礎上添加更多內容。如果你看一下——就 NuStar 的增加而言，我們已經得到了兩個機構的兩次信用升級。如果你只看我們的信用風險狀況，我們會處於更好的位置。然後你看看 ET 客戶群的增加。Net-net，無論你怎麼看，我認為結論非常簡單，就是在信用狀況的基礎上，我們因為 NuStar 而處於更好的位置，並且因為合資企業，我們處於同等甚至更好的位置與能量轉移。

Understood. Thank you.

明白了。謝謝。

And then you reaffirmed your synergy target for 2024 of $50 million. Could you maybe talk about how much of that was realized in the second quarter?

然後您重申了 2024 年 5000 萬美元的協同目標。您能否談談第二季度實現了多少？

Yes, Ned, almost all the synergy that we'll capture this year is really on the expense front. I mean, clearly, we've started on some of the commercial activities, but those will also bear more fruit in 2025 and 2026. You saw the high transaction expense number that we reported in the second quarter. A lot of that is related to severance or other payments that enable us to capture synergies. So I'm not I'm not going to be able to provide a number, but we're well on our way on hitting that $50 million. We will ramp up through the year just as the nature of the activities is kind of once you get the expense and you can get it on an ongoing basis, but we've already made a really good start.

是的，內德，我們今年將獲得的幾乎所有協同效應實際上都集中在費用方面。我的意思是，顯然我們已經開始了一些商業活動，但這些活動也將在 2025 年和 2026 年取得更多成果。您看到了我們在第二季報告的高交易費用數字。其中許多與遣散費或其他付款有關，使我們能夠獲得協同效應。所以我不能提供具體數字，但我們正在朝著 5000 萬美元目標邁進。我們將在這一年中不斷加強，就像活動的性質一樣，一旦你獲得費用，你就可以持續獲得它，但我們已經有了一個非常好的開始。

Thank you.

謝謝。

That's all I had.

這就是我所擁有的一切。

Thank you.

謝謝。

Our next question is from Robert Mosca with Mizuho Securities. Please proceed with your question.

我們的下一個問題來自瑞穗證券的羅伯特·莫斯卡。請繼續你的問題。

Hi, good morning, everyone.

嗨，大家早安。

Maybe turning to pipeline systems, one of your peers recently announced a pretty sizable refined products pipeline projects. And wondering if you're seeing any opportunities in that segment that perhaps weren't available to the legacy NuStar business last year?

也許轉向管道系統，您的一位同行最近宣布了一個相當大的成品油管道專案。想知道您是否在該領域看到了去年傳統 NuStar 業務無法獲得的機會？

Yes. I think what I'd say on our growth opportunities in the pipeline systems, as it relates to whether it's M&A activity or whether it is organic growth.

是的。我認為我要說的是我們在管道系統中的成長機會，因為它與併購活動還是有機成長有關。

Joe already talked about the criteria that we use. You know, he gave the answer through the M&A lens, but frankly, we use a similar approach as we look at organic growth capital projects, do they provide synergies? What is the return on the project? Do they provide stable cash flow? Does it enable additional growth? So, you know, a lot of this stuff as we look at it as a build versus buy. So the short answer to your question is by having a bigger platform and having the balance sheet that we bring to it? Yes, there are more opportunities today for Sun versus before the NuStar acquisition.

喬已經討論過我們使用的標準。你知道，他從併購的角度給出了答案，但坦白說，我們在看待有機成長資本項目時使用了類似的方法，它們是否提供了協同效應？該項目的回報是多少？他們能提供穩定的現金流嗎？它能帶來額外的成長嗎？所以，你知道，我們將很多這樣的東西視為建造而不是購買。那麼，對你的問題的簡短回答是擁有一個更大的平台並擁有我們帶來的資產負債表？是的，與收購 NuStar 之前相比，今天 Sun 擁有更多的機會。

And there are more opportunities for the NuStar assets than there were before the transaction as well. But as we look at that, that growth capital, I think we're going to maintain the same focus that we've had, which is higher return, synergies between our fuel distribution and our in our midstream operation, we're generally going to favor projects that have shorter time frames between when we spend capital and when we start getting EBITDA. So there's a bigger platform for us to invest in. But we're going to stick to the kind of formula that has brought us success over the last few years.

NuStar 資產也比交易前有更多的機會。但當我們看到成長資本時，我認為我們將保持與我們相同的重點，即更高的回報，我們的燃料分銷和中游運營之間的協同效應，我們通常會青睞那些在我們支出資本和開始取得EBITDA 之間時間較短的項目。所以我們有一個更大的平台可以投資。但我們將堅持過去幾年為我們帶來成功的模式。

Great. Appreciate it, Karl. And Joe, I think you've referenced the credit rating upgrades. Wondering if becoming an investment grade entity is part of a more formal capital allocation outlook for you guys. Is that something you're explicitly targeting now?

偉大的。很欣賞它，卡爾。喬，我想你已經提到了信用評級升級。想知道成為投資等級實體是否是你們更正式的資本配置前景的一部分。這是你現在明確的目標嗎？

Yes, Rob, this is Scott.

是的，羅布，這是史考特。

And you laid out well, the choice to go to investment grade at its heart is a capital allocation decision. And for us, the capital allocation policy really revolves around creating value for all of our stakeholders. So whether it's protecting our balance sheet, providing a secure and growing distribution or reinvesting in the business through some of the growth and M&A projects. Those are really the fundamental decisions and things we evaluate when it comes to capital allocation. So if moving to investment grade would create additional value for all of our stakeholders, that's something we would pursue. But at this point in time, we see reinvesting in the business, returning capital to our unitholders and achieving our long-term leverage target of four times the primary objectives.

而且你佈局得很好，選擇投資等級的核心是資本配置決策。對我們來說，資本配置政策實際上圍繞著為所有利害關係人創造價值。因此，無論是保護我們的資產負債表，提供安全且不斷成長的分配，或是透過一些成長和併購項目對業務進行再投資。這些確實是我們在資本配置方面評估的基本決策和事物。因此，如果轉向投資等級能夠為我們所有利害關係人創造額外價值，那麼這就是我們所追求的目標。但此時此刻，我們看到了對業務的再投資，將資本回饋給我們的單位持有人，並實現了我們主要目標四倍的長期槓桿目標。

Got it. Thanks, Scott, and appreciate that, everyone.

知道了。謝謝斯科特，並感謝大家。

Thank you. There are no further questions at this time, I'd like to hand the floor back to Scott Grischow for any closing comments.

謝謝。目前沒有其他問題，我想將發言權交還給斯科特·格里肖（Scott Grischow）以徵求結束意見。

Well, thanks, everyone, for joining us on the call this morning. As always, if you have any follow-up questions, feel free to reach out and a great day.

好的，謝謝大家今天早上加入我們的電話會議。一如既往，如果您有任何後續問題，請隨時與我們聯繫，祝您有個愉快的一天。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。