Sunoco LP (NYSE:SUN) Q4 2022 Earnings Call Transcript

Karl Fails: Yes. So as far as the Colonial outage, it had no material impact on us. I think the only other comment I’d make is our supply network is diverse enough, and the supply team does a really good job of making sure we have optionality and we’re tuned to the market. So clearly, if in an extended outage that would have an impact, but something like what happened, it didn’t really impact us. As far as volume trends in January and February, I guess I’ll build off one of my earlier answers, Ned, and say kind of that stagnation of volume that we — kind of volume growth on a seasonal basis that we saw at the back half of last year has continued into the first couple of months. Again, we don’t think that, that has a material impact on our overall performance and earnings, but that’s what we’re seeing.

Ned Baramov: Got it. And then my second one is on OpEx. I guess guidance was reaffirmed, but expenses increased in the fourth quarter and you did note that this was partially due to the Peerless acquisition. But just annualizing the fourth quarter OpEx, gets me to roughly $550 million, I guess, for ’23. Could you talk about what gets you to the low end and the high end of your guidance range?

Karl Fails: Sure, Ned. For those of you who’ve been following us for a while, OpEx management is something that we take pride in, and it’s very important and core to what we do. And so I’ll talk about Q4 and then our 2023 guidance. So in Q4, I mentioned a couple of things in our — in my prepared remarks. So there’s a little bit of Peerless in there and some other kind of catch-up or onetime expenses for the year. If you look at the difference between where we ended the year in ’22 and our guidance, even the upper end of our guidance range for ’23, that is entirely explained by our Peerless acquisition. So if you take a step back and think about that, I don’t know many other companies that are saying that they’re flat year-over-year in this inflationary environment. And so if anything, we think that differentiates us versus our competition.

Operator: We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Scott Grischow for closing comments.

Scott Grischow: Thanks, everyone, for joining us on the call this morning. As always, if you have any follow-up questions, please feel free to reach out to me directly. Have a great day.

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