Sunoco LP and SunocoCorp LLC Announce Significant 6.25% Quarterly Distribution Increase

Key Highlights

• Quarterly Distribution Raised: Sunoco LP (NYSE: SUN) and SunocoCorp LLC (NYSE: SUNC) have jointly announced a 6.25% increase in their quarterly distribution, raising it to \$0.9899 per common unit, or \$3.9596 on an annualized basis, for the quarter ended March 31, 2026.
• Distribution Growth Breakdown: The increase consists of a one-time 5% step-up and a regular quarterly rise of 1.25%.
• Year-over-Year Growth: The first quarter 2026 annualized distribution represents an approximately 10% increase compared to the same period in 2025.
• Track Record of Growth: This marks the sixth consecutive quarterly increase, with prior annual distribution increases of 2% in 2023, 4% in 2024, and 5% in 2025.
• Payment Dates: Distributions will be paid on May 20, 2026, to holders of record as of May 8, 2026.
• Strategic Implications: Management attributes the increase to financial stability, successful acquisitions, growth projects, and confidence in future distribution increases.

Details for Shareholders

• Distribution Policy: This distribution increase aligns with Sunoco LP’s capital allocation strategy, which aims for a multi-year distribution growth rate of at least 5%.
• Operational Footprint: Sunoco LP operates across 32 countries and territories in North America, the Greater Caribbean, and Europe, with midstream assets including roughly 14,000 miles of pipeline and over 160 terminals. The company distributes more than 15 billion gallons of fuel annually to about 11,000 Sunoco and partner-branded retail locations as well as to independent dealers and commercial customers.
• Ownership Structure: SUN’s general partner is owned by Energy Transfer LP (NYSE: ET). SunocoCorp LLC (SUNC) is a publicly traded LLC holding a direct limited partner interest in Sunoco LP. Both companies are headquartered in Dallas, Texas.

Tax Information and Guidance for Investors

• Tax Withholding for Foreign Investors: 100% of Sunoco LP’s distributions to foreign investors are considered income effectively connected with a U.S. trade or business. These distributions are subject to federal tax withholding at the highest applicable rate. Nominees, rather than Sunoco LP, are responsible for this withholding.
• SUNC Distribution Tax Reporting: SUNC is classified as a corporation for U.S. federal income tax purposes, so its distributions may be treated as taxable dividends or returns of tax basis. SUNC intends to publish IRS Form 8937 to clarify what portion of the distribution is taxable versus a return of basis. If this classification is delayed or not adhered to by brokers, overwithholding may occur.

Potential Impact on Share Price

• Distribution Growth as a Price Catalyst: The 6.25% increase, including a substantial one-time step-up, reflects management’s confidence and the company’s strong financial position, which may positively influence investor sentiment and share price.
• Consistent Growth Track Record: The ongoing pattern of quarterly increases and multi-year growth targets provide investors with greater visibility and confidence in future income, a key consideration for income-focused investors.
• Operational Strength: The company’s robust infrastructure and extensive distribution network enhance its ability to deliver stable and growing distributions over time.
• Tax Clarity: Clear guidance on tax treatment for both domestic and foreign investors may reduce uncertainty and appeal to a broader investor base.

Contacts for Further Information

• Investor Relations: Scott Grischow, Treasurer, Senior Vice President – Finance, (214) 840-5660, [email protected]
• Director – Investor Relations: Brian Brungardt, (214) 840-5437, [email protected]
• Media Contact: Chris Cho, Director – Corporate Communications, (469) 646-1647, [email protected]

Forward-Looking Statements

This release may include forward-looking statements regarding future expectations, which are subject to various risks and uncertainties. These statements are based on current management estimates and assumptions but are inherently difficult to predict. Investors should consult the company’s filings with the Securities and Exchange Commission for further information on potential risks and uncertainties.

Disclaimer

The information provided in this article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with their financial advisors before making investment decisions.

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