10 Best Pipeline and MLP Stocks to Invest In According to Analysts

5. Sunoco LP (NYSE:SUN)

Upside Potential According to Analysts: 9.88%

Sunoco LP (NYSE:SUN) is a major US energy infrastructure and motor fuel distributor. The company operates in three segments, namely Fuel Distribution, Pipeline Systems, and Terminals. The Fuel Distribution segment focuses on distributing motor fuels, propane, and lubricating oil to diverse clients, including dealers, distributors, commercial consumers, and retail locations. They also lease real estate and offer non-fuel products and services, such as in-store merchandise, food services, and car washes. The Pipeline Systems segment manages an integrated network of refined product, crude oil, and ammonia pipelines and terminals. While the Terminals segment operates transmix processing facilities and refined product terminals, providing blending, additive injection, handling, and filtering services. Sunoco LP’s diversified operations support the distribution and logistics of essential energy products across the United States.

Sunoco LP’s (NYSE:SUN) earnings report for Q4 2024 shows a topline of $5.27 billion, missing analyst estimates by $914 million. EBITDA was reported at $446 million and an EPS of $0.75. Transcripts reveal a spending of $74 million on growth capital and $58 million on maintenance capital.

Joe Kim, the President and Chief Executive Officer of Sunoco LP (NYSE:SUN) stood by the company’s recent performance during the Q4 quarterly earnings report. He had this to say:

“Looking forward, we expect the fundamentals for all three segments to remain very attractive in 2025 and beyond. We’re off to a strong start and we expect 2025 to be another record year.

Let me finish with one final thought. We have gained a solid reputation as a thoughtful defensive play within the mid-stream sector, given our ability to deliver strong results in volatile commodity environments as well as challenging macro environments such as inflation and even pandemics.”

Sunoco LP (NYSE:SUN) provided guidance for EBITDA to range between $1.9 billion to $1.95 billion for 2025, compared to $1.56 billion during 2024. Analysts’ consensus of the average twelve-month trading price at $63.50, reflecting an upside of 9.88%.