Sunoco（SUNC）2026年第3四半期決算説明会：過去最高のEBITDAとオフェン買収

要点

• Sunocoが発表した2026年第3四半期の調整後EBITDAは、約1,100万ドルの単発の取引費用を除き、過去最高の10億6,000万ドルとなりました。調整後分配可能キャッシュフローは5億8,800万ドルでした。
• 四半期配当金はSunoco LPの普通ユニットおよびSunocoCorpの株式1株当たり約1.015ドルとなり、前四半期比で1.25%増加し、2025年第3四半期比では10%以上の増加となりました。
• 燃料配送事業の調整後EBITDAは、900万ドルの取引費用を除いて5億3,200万ドルに達し、配送量は約42億ガロン、燃料マージンは1ガロン当たり0.168ドルとなりました。
• 精製事業の調整後EBITDAは、2026年第2四半期の1億7,500万ドルから2億3,800万ドルに増加しました。バーナビー精製所の処理量は日量平均5万7,000バレルで、精製マージンは1バレル当たり54ドルを超え、経費は2四半期連続で1バレル当たり10ドル未満となりました。
• Sunocoは四半期末後、6億ドル規模のOffen Petroleumの買収を完了しました。Offenの買収により、年間約25億ガロンの燃料配送量が加わり、同社の中西部およびマウンテン・ウェスト地域でのプレゼンスが拡大します。
• 経営陣は、2026年の業績がガイダンスの上限を上回ることに強い自信を示しており、精製クラックスプレッドがミッドサイクル水準近くに戻ったとしても、2027年は再び過去最高を更新する年になると予想しています。

主要財務データ

事業および業績ハイライト

燃料配送事業

燃料配送事業の調整後EBITDAは、900万ドルの取引費用を除いて5億3,200万ドルとなり、同様の除外ベースで2026年第2四半期の5億1,600万ドル、2025年第3四半期の2億3,800万ドルと比較して増加しました。Sunocoは約42億ガロンを配送し、燃料マージンは1ガロン当たり0.168ドルとなりました。配送量は前四半期比でわずかに増加し、マージンは微減となりました。

経営陣によると、特に軽油における市場の変動が粗利益の最適化機会を生み出しました。留出油在庫のひっ迫、世界的な供給網の混乱、精製所の停止、季節的な保守点検が寄与要因として挙げられています。

決算説明会で引用されたEIAのデータによると、米国の需要は堅調を維持し、軽油は前年同期比でほぼ横ばい、ガソリンは1桁台前半の減少となりました。カナダでは価格変動の拡大を背景に軽油とガソリンの需要が1桁台前半から半ばの減少となりましたが、マージンは力強さを維持しました。経営陣はカリブ海地域について、数量増とマージン拡大に支えられた成長市場との評価を継続しました。

Offen Petroleumの買収により、Sunocoの地域的な規模と供給の選択肢が拡大します。経営陣は、買収した物流機能と市場密度が、ブランド・ノーブランド両事業における輸送、調達、成長を後押しすると見込んでいます。

パイプライン・システム事業

調整後EBITDAは1億6,600万ドルとなり、2026年第2四半期の1億9,000万ドルおよび2025年第3四半期の1億8,200万ドルから減少しました。輸送量は日量約130万バレルで、両比較期間とほぼ同水準を維持しました。

前四半期比での減少は、合弁会社からの寄与低下および2026年上半期に計上されたFERCの返還還付益の消滅を反映しています。経営陣は、当セグメントが引き続き安定した収益を提供しており、比較的少額の資本投資を通じて稼働率の向上や取扱量の拡大を図る機会があるとしています。

ターミナル事業

調整後EBITDAは、200万ドルの取引費用を除いて1億2,400万ドルとなり、同様のベースで2026年第2四半期の1億1,500万ドル、2025年第3四半期の7,600万ドルから拡大しました。取扱量は日量約100万バレル近くを維持しました。

トランスミックス処理事業や、拡大したSunocoの欧州ネットワークからの寄与が業績に貢献しました。経営陣はまた、稼働率の引き上げや顧客の需要に基づいた成長プロジェクトを推進する機会を見込んでいます。

精製事業

精製セグメントの調整後EBITDAは、2026年第2四半期の1億7,500万ドルから2億3,800万ドルに増加しました。バーナビー精製所の処理量は日量平均5万7,000バレルとなり、前四半期をわずかに上回りました。精製マージンは1バレル当たり54ドルを超え、経費は2四半期連続で1バレル当たり10ドル未満を維持しました。

経営陣は、良好な市場環境と業務執行の双方をこの成果の要因としています。Sunocoは単独の戦略として精製事業を拡大することは目指していませんが、精製クラックスプレッドが上昇する際にはバーナビー精製所が非対称的なアップサイドをもたらす源泉になると見なしています。

経営陣による業績予想（ガイダンス）

経営陣は、2026年通期の業績が既存ガイダンスの上限を超えると非常に強い確信を持っており、これが実現すれば8年連続のEBITDA成長となります。

同社は1月初旬に詳細な2027年ガイダンスを発表する予定です。経営陣は現在、全4セグメントの業績、買収、および自律的投資に支えられ、精製クラックスプレッドがミッドサイクル水準に近づいたとしても、2027年が再び過去最高を更新する年になると予想しています。

Sunocoは、2026年のボルトオン買収が合計で約15億ドルになると見込んでいます。自律的成長投資を含めた総成長投資額は20億ドルを超えると予想されています。経営陣は毎年少なくとも5億ドルのボルトオン買収を行うという複数年目標を改めて表明し、その水準は2027年以降にとって控えめなものであると述べました。

燃料配送事業の営業費用について、経営陣は四半期ごとのある程度の変動を見込みつつも、Parklandの統合プロセスが進行するにつれて、2027年は2026年と比較して全体として減少すると予測しています。

リスクと注視すべき事項

• 精製マージンは変動が見込まれ、クラックスプレッドがミッドサイクル水準またはそれを下回る水準まで正常化した場合、バーナビー精製所の貢献度が低下する可能性があります。
• 燃料価格の変動は、最終的に需要を減退させる可能性があります。経営陣は、より顕著な需要反応が生じるタイミングや価格水準については依然として不確実であると述べました。
• カナダにおける軽油とガソリンの需要は、価格高騰と市場変動の中で、すでに1桁台前半から半ばの減少となっています。
• パイプライン事業の収益は、合弁会社からの寄与、契約価格設定、時期の違い、および一時的な規制関連項目によって、四半期ごとに変動する可能性があります。
• 米国中東部（ミッドコンチネント）における潜在的なパイプライン開発により精製石油製品の流れが変化する可能性がありますが、経営陣はその影響はまだ想定の域を出ず、Sunocoのネットワークはサプライチェーンの変化に対応できる位置づけにあると述べています。

アナリスト質疑応答の要点

アナリストの質問は、精製環境が正常化した場合にも2026年の好調な業績が維持できるかに集中しました。経営陣は4つの営業セグメントすべてが好調であることを強調し、精製事業がミッドサイクル水準であったと仮定しても、Sunocoは当初のガイダンスを上回っていただろうと説明しました。

バーナビー精製所について、経営陣は単独での精製所拡大を積極的に推進しているわけではないと述べました。魅力的な非精製事業が主な戦略的適合となるParklandと同規模のより広範な取引の一環としてのみ、別の精製所の検討を行うとしています。

買収に関しては、経営陣はOffenの買収を燃料配送業界における集約戦略の延長として位置付けました。この取引により、これまでSunocoの事業規模が比較的小さかった市場における地域的密度、供給の柔軟性、および物流能力が強化されます。

経営陣はまた、Parklandの統合が第3四半期の燃料配送事業の営業費用削減に貢献したと述べました。四半期ごとの変動の可能性はあるものの、2027年には全体的なコスト構造がさらに改善すると見込んでいます。

決算説明会全文文字起こし

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to Sunoco and SunocoCorp Q3 2026 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Scott Grischow, Senior Vice President of Finance. Please go ahead.

Scott Grischow

Thank you, and good morning, everyone. On the call with me this morning are Joe Kim, President and Chief Executive Officer; Karl Fails, Chief Operating Officer; Austin Harkness, Chief Commercial Officer; Brian Hand, Chief Sales Officer; and Dylan Bramhall, Chief Financial Officer.

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

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.

The partnership continued its strong performance in 2026, with a record third quarter adjusted EBITDA of $1.06 billion, excluding approximately $11 million of onetime transaction expenses. Third quarter distributable cash flow as adjusted was $588 million. On October 22, we announced a distribution of approximately $1.015 for both Sunoco LP common units and SunocoCorp shares. This represents a quarterly increase of 1.25% from the prior quarter, over 10% versus the third quarter of 2025.

Our business continues to generate strong cash flow, resulting in a trailing 12-month coverage ratio of 2.1x. Our balance sheet and liquidity position remains strong. We had $2.3 billion in availability under our revolving credit facility at the end of the quarter, and leverage was approximately 3.5x, well below our long-term target. Finally, we spent $121 million on growth capital and $116 million on maintenance capital.

I want to wrap up my comments by stating that our execution in 2026 has put us in an outstanding financial position. In less than 1 year since closing on the Parkland acquisition, we have already delivered double-digit growth to DCF per common unit, while also getting our balance sheet below our long-term leverage target of 4x. Investors have benefited from this execution through year-over-year distribution growth of over 10%. Finally, we have continued to execute on growth opportunities, including the acquisition of Offen Petroleum for $600 million, which we closed last week.

In summary, we expect our financial position will continue to strengthen, which will provide us with continued flexibility to pursue high-return growth opportunities while maintaining a healthy balance sheet and a secure and growing distribution for our unitholders.

With that, I will turn it over to Karl to walk through some additional thoughts on our third quarter performance.

Karl Fails

Thanks, Scott. Good morning, everyone. As Scott outlined, we delivered record financial results in the third quarter. Our teams continue to optimize gross profit across fuel distribution, operate our midstream assets reliably and capture a favorable market environment at the Burnaby Refinery.

Let me walk through the performance of each segment. Starting with our Fuel Distribution segment. Adjusted EBITDA was $532 million, excluding $9 million of transaction expenses. This compares with $516 million last quarter and $238 million in the third quarter of 2025, both excluding transaction expenses. We distributed approximately 4.2 billion gallons during the quarter and fuel margin was $0.168 per gallon. Volume was up slightly and margin was down slightly from last quarter.

While industry demand indicators were mixed and varied by geography, the volatility in the market continued to provide opportunities for gross profit optimization, especially for a system with our scale. Volatility remained elevated, particularly in diesel, reflecting tight distillate inventories, global supply disruptions, refinery outages and fall maintenance activity. Our scale, supply optionality and commercial capabilities allowed us to respond to those market conditions.

When you step back, our model continues to deliver on what it is designed to do. We do not manage the business for an individual quarterly volume or margin outcome. Instead, we manage for total fuel profit, EBITDA and returns on deployed capital. The third quarter result demonstrates the value of applying that approach across a much larger geography. And more importantly, that geography continues to expand.

As Scott shared earlier, we closed on the acquisition of Offen Petroleum last week. Offen adds approximately 2.5 billion gallons of annual fuel distribution volume and strengthens our presence in the Midwest and Mountain West regions. The Offen business is a great fit with our existing portfolio. Its geographic footprint complements our network, while its logistics capabilities and market density create opportunities to improve supply, transportation and growth in both our branded and unbranded businesses. We look forward to the integration process and welcome the new team members to Sunoco.

In our Pipeline Systems segment, adjusted EBITDA was $166 million compared with $190 million last quarter and $182 million in the third quarter of 2025. Throughput was approximately 1.3 million barrels per day, essentially flat with last quarter and the third quarter of 2025. Sequential reductions were related to lower contributions from our joint ventures and some FERC clawbacks we received in the first half of the year that did not repeat in the second half. However, the underlying characteristics of the segment remain consistent. The segment consists of critical infrastructure assets generating stable income, with targeted opportunities to grow volumes, improve utilization and generate attractive returns from relatively modest capital investments.

Moving on to our Terminals segment. Adjusted EBITDA was $124 million, excluding $2 million of transaction expenses, compared with $115 million last quarter and $76 million in the third quarter of 2025, both excluding transaction expenses. Throughput was approximately 1 million barrels per day, in line with last quarter. Overall results were supported by a strong quarter in our transmix processing business as well as the continued contribution of our larger European network. This is another segment where the operating story is straightforward. The assets continue to generate stable results, and the expanded system gives us additional opportunities to increase utilization, support fuel distribution and deploy growth capital where we have attractive customer-backed returns.

Turning to our Refinery segment. Adjusted EBITDA was $238 million compared with $175 million last quarter. The Burnaby Refinery throughput averaged 57,000 barrels per day during the quarter, slightly up from the second quarter. Refining margin topped $54 per barrel and expenses were below $10 per barrel for the second quarter in a row. The market environment clearly remained favorable, but the financial result also reflects strong execution by the team.

Our priorities at Burnaby remain safe and reliable operations, disciplined expense management and positioning the facility to capture available market opportunities. We understand that refining margins will move over time. Our job is to manage what we can control and operate the facility with a long-term mindset.

Before I wrap up, I want to share a few final thoughts. This was an outstanding quarter, but it is really a continuation of the same operating focus that we deliver quarter after quarter, year after year. We grow and integrate. We operate our assets reliably and efficiently. We fully capture market opportunities, all through disciplined execution of our strategy.

I will now turn it over to Joe to share his final thoughts. Joe?

Joseph Kim

Thanks, Karl. Good morning, everyone. We had an outstanding third quarter. Although 2026 is not quite over, I want to share some perspectives on this year as a whole. 2026 will be another record year for Sunoco. With 3 quarters completed and visibility into the fourth quarter, we're highly confident that we will surpass the top end of our guidance. This will be our eighth consecutive year of EBITDA growth.

Obviously, the Parkland acquisition is a big part of our recent success. We have already delivered approximately a 25% growth in DCF per common unit in less than 1 year of ownership. In addition, our pre-Parkland businesses are performing at a high level. Our portfolio has become more diversified with greater scale and geographic reach. Combining this enhanced portfolio with our proven business model, we're able to succeed in various commodity environments.

2026 is a good example of our ability to deliver outstanding results in a higher price volatile market. Looking further into the future, we believe volatility will persist. Agnostic of the direction of prices, we're confident that we'll deliver strong results in various scenarios.

Let me wrap up with some final thoughts. We've had material accretive growth over the last 5 years, and we expect this to continue. Earlier this year, we provided a multiyear guidance of at least $500 million a year of bolt-on acquisitions. We exceeded this amount in 2026 and we expect this to be a modest bar in 2027 and beyond. In addition, we'll continue to deploy attractive organic growth capital. Bottom line, when you combine our portfolio of stable income streams with acquisitions and investments that are delivering on expected economics, our cash flow will continue to grow. We're in a strong position to continue to increase distributions while executing on accretive growth and maintaining a strong balance sheet.

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

Operator

[Operator Instructions] Our first question comes from the line of Spiro Dounis with Citi.

質疑応答

Charles Douglas Bryant

This is Chad on for Spiro. Just starting off on guidance. You're now trending over the '26 guidance range. Could you just provide kind of your latest thoughts on how the fourth quarter is shaping up versus your record third quarter results? And maybe any outlook into '27?

Joseph Kim

Chad, this is Joe. I think the first takeaway is that 2026 is going to be another outstanding year for Sunoco. Obviously, the refinery has performed very well this year. But even if we had more cracks that were closer to the mid-cycle levels for this year, we would have still surpassed the guidance that we gave back in January. I think the key point is that all 4 business segments are performing very well, and we've delivered on our very high expectations on the Parkland acquisition as well as other smaller acquisitions. But I think the most important takeaway is that 2026 is not an outlier. But instead, we're going to continue to grow our business. We are very well positioned for 2027 to be another record year, even if refining cracks are closer to the mid-cycle levels.

Charles Douglas Bryant

Perfect. And just following up on fuel demand. I guess, kind of in this elevated crude price volatile environment, what are you seeing with respect to the impact on fuel demand and margins as a result kind of going forward?

Austin Harkness

Yes. Chad, this is Austin. Happy to walk you through kind of some of the themes that we're seeing across the portfolio. If you start domestically, demand in the U.S. has been remarkably resilient despite all the fuel price volatility that we've seen recently. So if you look at EIA data, the monthly data shows that diesel is roughly flat on a year-over-year basis, with gasoline demand being off low single digits year-over-year. And then all this is against the backdrop of healthy margins, despite the fact that we've had all this flat price volatility and haven't yet hit the part of the volatility curve where prices durably come off and margins widen. So we feel really good about kind of where the U.S. business is for the segment and kind of the outlook there.

If you move to Canada, -- just as a reminder and point of reference, flat price volatility has actually been amplified in Canada relative to what we've seen in the U.S. So as an example, diesel recently touched USD 7 a gallon equivalent there. And so some of the themes that we had touched on last quarter around demand starting to soften continue into Q3. So diesel and gasoline demand is off low to mid-single digits. But as a reminder, that's -- it's a very strong margin environment. We've seen strong margins and durable margins likely, in large part, owed to the flat price volatility that we're seeing there.

And then lastly, in the Caribbean, that continues to be its own kind of animal. We've got 20-plus markets that we operate in, each with their own demand and margin profiles. What I would just say there is, in general, the theme is, the Caribbean has been a growth engine for us. It will continue to be a growth engine for us, and we expect that to be both on healthy volume growth and margin expansion.

So all that said, if you followed our story, you all know that if demand softens from here, that paints a pretty bullish picture for what the margin environment looks like. And then also, as Joe mentioned in his opening remarks, we've built this portfolio in this segment to perform in a range of economic scenarios. And so we feel really well positioned to grow the segment from an EBITDA and fuel profit standpoint durably into the future.

Operator

Our next question comes from the line of Gabe Moreen with Mizuho.

Gabriel Moreen

$500 million, I guess, is a pretty easily -- easy bogey to clear at this point. But Offen, nonetheless, it was a pretty big transaction for you. Can you just talk about that asset as a fuel distributor versus others and what it may give you? And then also any chance of another acquisition announcement 2 days after earnings like you did with Offen?

Karl Fails

Well, thanks, Gabe. This is Karl. Clearly, we're excited about Offen. And in many ways, Offen is just a continuation of our roll-up strategy, but clearly, it's on a much larger scale. So one of the pillars of our overall fuel distribution strategy is that scale matters. And that is not just from an aggregate basis, but also on a more regional view.

So Offen gives us scale in areas of the U.S. that we haven't necessarily had scale before. So that really leads into the next benefit, which is supply optionality. So that larger scale in the Midwest, Mountain West region really integrates well into our footprint in Canada, in the South, Southwest and a little bit further east. So it provides a lot of options for us to supply and integrate those markets into our much broader network.

And then I think the last thing I'd mention is people. With Offen, we picked up a couple of really good leaders that are going to help us on our much larger portfolio, and we're excited to have them join the team.

Gabriel Moreen

Great. And then maybe if I can just ask in terms of going back to the guidance for the year and the bump, and I guess not giving kind of specific range for where you might wind up for 2026. But just within the larger context of thinking about giving guidance going forward, particularly with Burnaby and the volatility in the backdrop here. Just can you talk about how you're thinking about that in terms of laying out specific parameters for the market and what you want your -- you obviously want to show a ratable growth rate, I think, with the underlying business, and how you would kind of go about communicating that?

Joseph Kim

Yes. Gabe, this is Joe. As far as guidance, we'll follow the same kind of rhythm that we've done in the past. We'll provide guidance in early January of next year. But here's -- I'll kind of reiterate what I said earlier. I want to reemphasize that '26 is not an outlier for us. Yes, cracks are really great this year. At the same time, the point is that even if we assume a mid-cycle type level, we're going to see SUN grow in 2027, and you should expect SUN to grow in 2028.

And that's why we gave that guidance earlier this year that we think that we can do bolt-on acquisitions of at least $500 million. This year, we should end up roughly about $1.5 billion in bolt-on acquisition. And if you add in our organic growth capital, we're well over $2 billion. And I said it in the prepared remarks, I think $500 million a year of bolt-on acquisitions is a modest bar. As we kind of look at all the different geographies we're in, we look at the different sectors we're in and we see what's kind of coming to the market, what's not on the market, what those opportunities are, we feel really good about our growth. And that's all with the foundation that all of our businesses are performing very well.

Operator

Next question comes from the line of Theresa Chen with Barclays.

Theresa Chen

Given the recent M&A activity across refining and the strength in margins, how are you thinking about the strategic value and long-term fit of Burnaby within your portfolio? Is there a valuation at which you would consider monetizing the asset?

Joseph Kim

Theresa, it's Joe. Here's the way that we look at -- look at the Burnaby Refinery. So I've talked to a lot of you many times. We've -- our strategic intent was never to say that we're going to go buy a refinery and put into the portfolio. But the Parkland acquisition, as I said, we're already 25% DCF growth within a year. So that worked out tremendously for us.

The way that I think you should look at our business is that if you look at our other 3 sectors, Fuel Distribution, our Pipeline and our Terminals segment, they're stable and growing. And the way that I would look at the Burnaby Refinery is it's kind of an asymmetrical upside for us, where whenever cracks blow out, we're going to -- we're going to take that to the bottom line. But even if it goes back to a mid-cycle or slightly below mid-cycle level, we're going to continue to grow our overall business. So that's the way we're looking at it.

As far as opportunistically, are we trying to grow the refining sector? And the answer is no. That's one scenario that I would say that we would look at is if there was an identical type of match to Parkland that came with a fantastic business that also happens to have a refinery, yes, we'll take a look at that. But as far as on a stand-alone segment basis, we like the position we're in, where we have 3 segments that are stable and growing and we have the smaller segment that gives us asymmetrical upside in various environments.

Theresa Chen

And I want to go back to Austin's comment about demand elasticity, taking into account your comment about not hitting the part of the volatility curve that would impact demand and margins at this point. But it does feel that the market has been testing that threshold for some time. Where do you see that inflection point today?

Austin Harkness

Theresa, it's a good question. I think it's one that's on a lot of our minds. But frankly, it's not one that we spend a lot of time thinking about because our guess is likely going to be wrong. I think what we have seen is there's a couple of different themes that we can talk to. One is when there's flat price volatility, the degree and direction which is going to impact demand is really a question of how high does price go and for how long, right? And so to your point, I think we've seen extended periods of pretty significant volatility, but demand has been holding up. As to when it gets -- demand gets impacted, I think, is anyone's guess.

What I would say is we've built the portfolio -- just going back to my earlier comments and Joe's opening remarks, we've built the portfolio to perform in a range of economic conditions. And I think given our scale, the supply chain optionality, the logistics capabilities that Karl referenced earlier, we feel really well positioned regardless of what the macroeconomic future kind of holds, that we're going to be well positioned to grow the segment's EBITDA well into the future.

Operator

Next question comes from the line of Vrathan Reddy with JPMorgan.

Vrathan Reddy

I wanted to start on the Fuel Distribution segment and maybe if you guys could just speak to the strength in margins there, your outlook and the synergies you still have left to capture in that segment?

Austin Harkness

Yes, this is Austin. Just going back to kind of some of the earlier comments that have been shared, I think we feel really good about where margins are right now. I think for those that are maybe newer to the story, we don't really solve for margin or volume independently. It's more a story around fuel profit and optimizing for EBITDA growth on a year-over-year basis.

There's always going to be some quarter-to-quarter volatility, but as mentioned earlier and then I think implied relative to Theresa's question a moment ago, we feel really good about where margins are right now given where flat price volatility has been, and the fact that we haven't yet come -- prices haven't durably come off, which is where we tend to see the most margin expansion.

Vrathan Reddy

And then in Pipelines, is there anything that we should note this quarter, a little softer versus expectations beyond seasonality?

Karl Fails

Yes. I mean, I mentioned a couple of things in my prepared remarks. I don't know that there's a lot more color to add other than -- just like in most of our segments, we look at it on a rolling 12-month sort of basis. So there's always quarter-to-quarter fluctuations, whether it's certain contracts or certain pricing or certain kind of timing variations. But overall, we're really happy with our Pipeline business. And as Joe mentioned earlier, I think both of our midstream segments, Terminals and Pipelines, provide a lot of stability in our portfolio.

Operator

[Operator Instructions] And our final question comes from the line of Ned Baramov with Wells Fargo.

Ned Baramov

Could the planned pipeline, which is linking the Midwest, Mid-Con and Gulf Coast refinery supply to Arizona, Nevada and California, together with the recently completed refined products pipeline expansion into Denver and the Denver Airport, could this tighten product balances in the Mid-Con and potentially increase demand for northbound shipments from the Gulf Coast? And if yes, do -- is there a role for Sunoco to play in this rerouting of flows?

Karl Fails

Yes, Ned. I mean the short answer is yes. I mean, there are obviously a lot of hypotheticals in what you've laid out. I know they're -- there are other pipeline companies that have announced projects that could impact the product flows in the middle part of the U.S.

I'd say here's -- our view is if those projects are built and product flows change, we've experienced that a lot in our history, and we are well positioned, particularly in the Mid-Continent, we have our pipeline system that kind of flows north in the Mid-Continent. But I'd extend that to the broader kind of point that Joe made earlier, given our portfolio, I mean, we've intentionally put together the portfolio we have to be able to withstand and take advantage of lots of different product shifts or supply chain shifts, whether they're a tailwind like the hypothetical that you gave us could be or even if they are a headwind, we can find some other way in other parts of our business to continue to grow year after year.

Ned Baramov

Understood. And then a quick housekeeping item on operating expenses in the Fuel Distribution segment. It seems OpEx was well below our forecast. Can you maybe just talk about drivers behind the lower number and how sustainable this is going forward?

Scott Grischow

Ned, this is Scott. I'd offer a couple of comments there. I think, one, being a low-cost operator has always been a focus for us. And the decline you saw in Q3 is another example of that.

Second, the Parkland integration efforts continue, and that also contributed to the sequential decline. I think moving forward, there may be some ups and downs sequentially, but looking forward to 2027, we expect an overall decline relative to '26.

Operator

That concludes the question-and-answer session. I would now like to turn the call back over to Scott Grischow for closing remarks.

Scott Grischow

Well, thank you for joining us on the call today, and we appreciate the continued interest in Sunoco. Please feel free to reach out if you have any follow-up questions. This concludes today's call.

Operator

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.