DALLAS: Sunoco LP has entered into a definitive agreement to acquire fuel distributor Offen Petroleum in an all-cash transaction valued at approximately $600 million, the company announced Thursday.
Offen operates a fuel distribution network delivering approximately 2.5 billion gallons annually, serving about 7,000 customers and more than 800 retail stations across the Midwest, Mountain West and Southwest regions of the United States.
Sunoco said the transaction will be immediately accretive and will increase cash flow for distribution growth and reinvestment. The expanded geographic footprint complements Sunoco’s existing fuel distribution operations and creates additional opportunities for organic growth and bolt-on acquisitions, according to the company.
Subject to regulatory approval, the partnership expects the transaction to close in the fourth quarter of 2026.
Strong Q2 results
The acquisition announcement follows Sunoco’s second-quarter financial results, also reported this week. Net income attributable to Sunoco LP for the quarter ended June 30, 2026, was $283 million, compared to $86 million in the same period of 2025.
Adjusted EBITDA for the second quarter of 2026 was $982 million, more than double the $454 million reported in the second quarter of 2025. Adjusted EBITDA for both periods included one-time transaction-related expenses — $14 million in 2026 and $10 million in 2025.
Distributable Cash Flow, as adjusted, for the second quarter of 2026 was $608 million, compared to $300 million in the year-ago quarter.
Segment performance
The Fuel Distribution segment remained Sunoco’s largest earnings contributor, with Adjusted EBITDA of $504 million for the second quarter of 2026, up from $206 million in the prior-year period. The segment sold approximately 4.1 billion gallons of fuel at a margin of 17.1 cents per gallon.
The Pipeline Systems segment reported Adjusted EBITDA of $190 million, compared to $177 million in the second quarter of 2025, with average throughput volumes of approximately 1.3 million barrels per day.
The Terminals segment generated Adjusted EBITDA of $113 million, up from $71 million a year earlier, with average throughput volumes of approximately 1.1 million barrels per day.
The Refinery segment, a new reporting segment, contributed Adjusted EBITDA of $175 million, averaging throughput volumes of approximately 57,000 barrels per day.
Distribution increase
On July 27, 2026, Sunoco declared a second-quarter distribution of $1.0023 per unit, marking the seventh consecutive quarterly increase and representing more than 10% growth compared with the prior-year period.
Sunoco raised its full-year 2026 Adjusted EBITDA guidance by $400 million to a range of $3.5 billion to $3.7 billion, reflecting stronger operating momentum.
About Sunoco
Sunoco LP is a leading energy infrastructure and fuel distribution master limited partnership operating across 33 countries and territories in North America, the Greater Caribbean and Europe. The partnership’s midstream operations include a network of approximately 14,000 miles of pipeline and more than 170 terminals. Sunoco distributes more than 15 billion gallons annually to approximately 11,000 Sunoco and partner-branded retail locations, as well as independent dealers and commercial customers.
Sunoco’s general partner is owned by Energy Transfer LP (NYSE: ET). SunocoCorp LLC is a publicly traded limited liability company that owns a direct limited partner interest in Sunoco LP. Both Sunoco LP (NYSE: SUN) and SunocoCorp LLC (NYSE: SUNC) are headquartered in Dallas.
