수노코(SUNC) 2026년 3분기 실적발표 컨퍼런스 콜: 사상 최대 EBITDA 및 오펜 인수

핵심 요약

• 수노코는 일회성 거래 비용 약 1,100만 달러를 제외한 2026년 3분기 조정 EBITDA가 사상 최대치인 10억 6,000만 달러를 기록했다고 발표했습니다. 조정 분배가능 현금흐름은 5억 8,800만 달러를 기록했습니다.
• 분기 배당금은 수노코 LP 합자회사 지분 및 수노코코프 주식당 약 1.015달러로, 전분기 대비 1.25%, 2025년 3분기 대비 10% 이상 증가했습니다.
• 연료 유통 부문의 조정 EBITDA는 거래 비용 900만 달러를 제외하고 5억 3,200만 달러를 달성했습니다. 약 42억 갤런의 유통량과 갤런당 0.168달러의 연료 마진을 기록했습니다.
• 정제 부문의 조정 EBITDA는 2026년 2분기 1억 7,500만 달러에서 2억 3,800만 달러로 증가했습니다. 버나비 정제소의 일일 처리량은 평균 5만 7,000배럴이었으며, 정제 마진은 배럴당 54달러를 웃돌았고 비용은 2분기 연속 배럴당 10달러 미만을 유지했습니다.
• 수노코는 분기 말 이후 6억 달러 규모의 오펜 페트롤리엄 인수를 완료했습니다. 오펜은 연간 약 25억 갤런의 연료 유통량을 추가하며 회사의 미중부 및 마운틴 웨스트 지역 입지를 확대합니다.
• 경영진은 2026년 실적이 가이던스 상단을 상회할 것이라고 강하게 확신하고 있으며, 정제 크랙이 미드싸이클 수준에 가깝게 하락하더라도 2027년이 또 다른 사상 최고 실적의 해가 될 것으로 전망하고 있습니다.

주요 재무 데이터

사업 및 영업 실적

연료 유통

조정 EBITDA는 거래 비용 900만 달러를 제외하고 5억 3,200만 달러를 기록했습니다. 이는 동일 기준 전분기(2026년 2분기)의 5억 1,600만 달러 및 전년 동기(2025년 3분기)의 2억 3,800만 달러와 비교되는 수치입니다. 수노코는 약 42억 갤런을 유통했으며, 연료 마진은 갤런당 0.168달러였습니다. 유통량은 전분기 대비 소폭 증가했고 마진은 소폭 감소했습니다.

경영진은 특히 디젤 시장의 변동성이 매출총이익 최적화 기회를 제공했다고 밝혔습니다. 이에 영향을 미친 요인으로는 중간유분 재고 부족, 글로벌 공급 차질, 정제소 가동 중단, 계절적 유지보수 등을 꼽았습니다.

경영진에 따르면 실적 발표 중 인용한 미국 에너지정보청(EIA) 데이터를 기준으로 미국 내 수요는 견조하게 유지되었으며, 디젤은 전년 동기 대비 보합세를 보였고 가솔린은 20%대 미만인 1~3% 하락했습니다. 캐나다에서는 가격 변동성이 커진 가운데 디젤과 가솔린 수요가 1~5% 감소했으나 마진은 강세를 유지했습니다. 경영진은 카리브해 지역을 유통량과 마진 확장에 힘입은 성장 시장으로 지속해서 평가했습니다.

오펜 페트롤리엄 인수를 통해 수노코의 지역적 규모와 공급 선택성이 확장되었습니다. 경영진은 확보한 물류 역량과 시장 밀도가 자사 브랜드 및 비브랜드 사업 전반에서 운송, 조달, 성장을 뒷받침할 것으로 기대하고 있습니다.

파이프라인 시스템

조정 EBITDA는 1억 6,600만 달러로, 2026년 2분기의 1억 9,000만 달러 및 2025년 3분기의 1억 8,200만 달러에서 감소했습니다. 일일 수송량은 약 130만 배럴로 두 비교 기간과 비교해 전반적으로 변동이 없었습니다.

전분기 대비 감소는 합작투자(JV) 기여도 감소 및 2026년 상반기에 반영되었던 미국 연방에너지규제위원회(FERC) 환수 혜택의 부재를 반영합니다. 경영진은 이 부문이 비교적 적은 자본 투자를 통해 가동률을 높이고 수송량을 늘릴 기회를 갖추며 안정적인 수익을 지속적으로 제공하고 있다고 설명했습니다.

터미널

조정 EBITDA는 거래 비용 200만 달러를 제외하고 1억 2,400만 달러를 기록해 동일 기준 2026년 2분기 1억 1,500만 달러, 2025년 3분기 7,600만 달러 대비 증가했습니다. 처리량은 일일 100만 배럴 수준을 유지했습니다.

실적은 트랜스믹스 처리 사업과 수노코의 확장된 유럽 네트워크 기여의 이점을 얻었습니다. 경영진은 또한 가동률을 올리고 고객 계약에 기반한 성장 프로젝트를 추진할 기회가 있다고 보고 있습니다.

정제

정제 부문의 조정 EBITDA는 2026년 2분기 1억 7,500만 달러에서 2억 3,800만 달러로 증가했습니다. 버나비 정제소의 일일 처리량은 평균 5만 7,000배럴로 전분기보다 소폭 증가했습니다. 정제 마진은 배럴당 54달러를 넘었으며, 비용은 2분기 연속 배럴당 10달러 미만을 유지했습니다.

경영진은 이 결과가 우호적인 시장 조건과 운영 실행력 덕분이라고 평가했습니다. 수노코는 단독 전략으로서 정제 사업 확장을 추진하지는 않지만, 정제 크랙이 강세를 보일 때 버나비를 비대칭적 상방 이익의 원천으로 간주하고 있습니다.

경영진 가이던스

경영진은 2026년 전체 실적이 기존 가이던스 상단을 넘어설 것으로 강하게 확신하고 있으며, 이는 8년 연속 EBITDA 성장을 기록하게 되는 것입니다.

회사는 1월 초에 상세한 2027년 가이던스를 발표할 예정입니다. 경영진은 4개 사업 부문 전체의 실적, 인수합병, 자체 성장을 위한 투자에 힘입어 정제 크랙이 미드싸이클 수준에 가까워지더라도 2027년이 또 다른 사상 최대 실적의 해가 될 것으로 현재 예상하고 있습니다.

수노코는 2026년 볼트온 인수 규모가 총 약 15억 달러에 달할 것으로 예상합니다. 자체 성장 자본을 포함하면 전체 성장 투입 자금은 20억 달러를 넘어설 것으로 예상됩니다. 경영진은 연간 최소 5억 달러 이상의 볼트온 인수라는 다년간의 목표를 재확인했으며, 이 기준선이 2027년 이후에는 조심스러운 수준이라고 설명했습니다.

연료 유통 영업비용과 관련해 경영진은 분기별 변동성은 일부 있을 수 있으나 파크랜드 통합 작업이 계속됨에 따라 2027년에는 2026년 대비 전반적인 비용 감소를 전망하고 있습니다.

리스크 및 주요 관전 포인트

• 정제 마진은 변동할 것으로 예상되며, 크랙이 미드싸이클 수준이나 그 이하로 정상화될 경우 버나비 정제소의 실적 기여도는 감소할 수 있습니다.
• 연료 가격의 변동성은 결국 수요를 약화시킬 수 있습니다. 경영진은 더 두드러진 수요 반응이 나타날 시기와 가격 임계치는 여전히 불확실하다고 밝혔습니다.
• 캐나다의 디젤 및 가솔린 수요는 가격 상승과 변동성 속에서 이미 1~5% 감소한 상태였습니다.
• 파이프라인 수익은 합작투자 기여도, 계약 가격 책정, 시점 차이, 비리커링 규제 항목에 따라 분기별로 차이가 날 수 있습니다.
• 미중부 지역의 잠재적인 파이프라인 개발은 석유 제품의 흐름을 변화시킬 수 있으나, 경영진은 그 영향이 여전히 가설 단계이며 수노코의 네트워크가 공급망 변화에 대응할 수 있는 위치에 있다고 설명했습니다.

애널리스트 Q&A 하이라이트

애널리스트들은 정제 업황이 정상화되더라도 2026년의 호실적이 지속될 수 있을지에 집중했습니다. 경영진은 4개 영업 부문 모두 잘 진행되고 있음을 강조하며, 정제업이 미드싸이클 가정하에 있었더라도 수노코가 기존 가이던스를 넘어섰을 것이라고 말했습니다.

버나비 정제소와 관련해 경영진은 단독 정제소 확장을 적극적으로 추진하고 있지는 않다고 밝혔습니다. 매력적인 비정제 사업 부문이 주요 전략적 적합성 요소였던 파크랜드 인수와 유사한 더 광범위한 거래의 일환일 때만 추가 정제소 인수를 고려할 것이라고 말했습니다.

인수합병과 관련하여 경영진은 오펜 인수를 연료 유통 통합 전략의 연장선으로 제시했습니다. 이번 거래는 이전에 수노코의 규모가 비교적 작았던 시장에서 지역적 밀도, 공급 유연성 및 물류 역량을 더해 줍니다.

경영진은 또한 파크랜드 통합이 3분기 연료 유통 영업비용 절감에 기여했다고 말했습니다. 분기별 변동 가능성에도 불구하고 2027년에는 전반적인 비용 개선이 더욱 이루어질 것으로 예상하고 있습니다.

실적 발표 전화회의 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

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.

질의응답

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.