Sunoco LP
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
SUN$61.73+0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-09.
0001552275-24-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001552275-24-000056
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 109 previous paragraphs and 146 current paragraphs.
69 unchanged; 17 reworded; 59 added; 22 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 3 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (59)
Current report
We are a Delaware master limited partnership with operations in over 40 U.S. states, Puerto Rico, Europe and Mexico. We are the largest independent distributor of motor fuel in North America and a leading operator of critical midstream energy infrastructure. Our midstream operations include an extensive network of approximately 14,000 miles of pipeline and over 100 terminals. This critical infrastructure complements our fuel distribution operations, which serve approximately 7,400 Sunoco and partner branded locations and additional independent dealers and commercial customers.
Current report
NuStar
Current report
Zenith European Terminals
Current report
West Texas Sale
Current report
Other Transactions
Current report
Permian Joint Venture
Current report
On July 16, 2024, SUN and Energy Transfer announced the formation of a joint venture combining their respective crude oil and produced water gathering assets in the Permian Basin. Pursuant to the Contribution Agreement by and among Sunoco LP, SUN Pipeline Holdings LLC, NuStar Permian Transportation and Storage LLC, NuStar Permian Crude Logistics LLC, NuStar Permian Holdings LLC, NuStar Logistics, L.P., ET-S Permian Holdings Company LP, ET-S Permian Pipeline Company LLC, ET-S Permian Marketing Company LLC, Energy Transfer LP, and Energy Transfer Crude Marketing, LLC dated July 14, 2024 in a cashless transaction, SUN contributed all of its Permian crude oil gathering assets and operations to the joint venture. Additionally, Energy Transfer contributed its Permian crude oil and produced water gathering assets and operations to the joint venture. Energy Transfer’s long-haul crude pipeline network that provides transportation of crude oil out of the Permian Basin to Nederland, Houston, and Cushing is excluded from the joint venture.
Current report
The joint venture operates more than 5,000 miles of crude oil and water gathering pipelines with crude oil storage capacity in excess of 11 million barrels.
Current report
SUN holds a 32.5% interest with Energy Transfer holding the remaining 67.5% interest in the joint venture.
Current report
The formation of the joint venture was effective on July 1, 2024.
Current report
Consolidated Results
Current report
Net Income. For the three and six months ended June 30, 2024 compared to the same periods last year, net income increased primarily due to a $598 million gain on the West Texas Sale in April 2024, as discussed below. In addition, the increase in net income reflected increases of $9 million and $107 million, respectively, in operating income, driven by results from our reportable segments, partially offset by increases in depreciation, amortization and accretion, as well as losses on disposal of asset and impairment charges. The increases in net income were also offset by increases in interest expense and income tax expense. These changes are discussed in more detail below.
Current report
Adjusted EBITDA (consolidated). For the three and six months ended June 30, 2024 compared to the same periods last year, Adjusted EBITDA increased primarily due to increases in profit of $251 million and $360 million, respectively, primarily related to the acquisitions of NuStar and Zenith European terminals, partially offset by increases in operating costs (including operating expenses, general and administrative expenses and lease expense) of $148 million and $163 million, respectively, primarily related to the acquisitions of NuStar and Zenith European terminals.
Current report
Additional discussion on the changes impacting net income and comprehensive income and Adjusted EBITDA for the three and six months ended June 30, 2024 compared to the same periods last year is available below and in “Segment Operating Results.”
Current report
Depreciation, Depletion and Amortization. For the three and six months ended June 30, 2024 compared to the same periods last year, depreciation, depletion and amortization increased primarily due to additional depreciation and amortization from assets recently placed in service and from recent acquisitions.
Current report
Loss (Gain) on Disposal of Assets and Impairment Charges. For the three and six months ended June 30, 2024 compared to the same periods last year, loss on disposal of assets and impairment charges primarily relates to the termination of a lease in June 2024.
Current report
Gain on West Texas Sale. The gain on West Texas Sale relates to the gain recognized by SUN upon completion of the sale of convenience stores to 7-Eleven Inc. in April 2024.
Current report
Income Tax Expense. For the three and six months ended June 30, 2024 compared to the same periods last year, income tax expense increased primarily due to the taxable gain recognized by a corporate subsidiary on the West Texas Sale.
Current report
Segment Operating Results
Current report
We evaluate segment performance based on Segment Adjusted EBITDA, which we believe is an important performance measure of the core profitability of our operations. This measure represents the basis of our internal financial reporting and is one of the performance measures used by senior management in deciding how to allocate capital resources among business segments.
Current report
The following tables identify the components of Segment Adjusted EBITDA, which is calculated as follows:
Current report
•Segment profit, operating expensesand selling, general and administrative expenses. These amounts represent the amounts included in our consolidated financial statements that are attributable to each segment.
Current report
The following analysis of segment operating results includes a measure of segment profit. Segment profit is a non-GAAP financial measure and is presented herein to assist in the analysis of segment operating results and particularly to facilitate an understanding of the impacts that changes in sales revenues have on the segment performance measure of Segment Adjusted EBITDA. Segment profit is similar to the GAAP measure of gross profit, except that segment profit excludes charges for depreciation, depletion and amortization. Among the GAAP measures reported by the Partnership, the most directly comparable measure to segment profit is Segment Adjusted EBITDA; a reconciliation of segment profit to Segment Adjusted EBITDA is included in the following tables for each segment where segment profit is presented.
Current report
In addition, for the Fuel Distribution segment, the following sections include information on the components of segment profit by sales type, which components are included in order to provide additional disaggregated information to facilitate the analysis of segment profit and Segment Adjusted EBITDA. These components of segment profit are calculated consistent with the calculation of segment profit; therefore, these components also exclude charges for depreciation, depletion and amortization.
Current report
Fuel Distribution
Current report
(1)For the three months ended June 30, 2024, Fuel Distribution segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $96 million, and unrealized gains on commodity derivatives of $6 million and adding non-cash unit-based compensation of $4 million, inventory valuation adjustments of $30 million and other of $9 million. For the three months ended June 30, 2023, Fuel Distribution segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $111 million, and adding non-cash unit-based compensation of $4 million, unrealized losses on commodity derivatives of $1 million, inventory valuation adjustments of $51 million, and other of $7 million. For the six months ended June 30, 2024, Fuel Distribution segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $207 million and inventory valuation adjustments of $85 million and adding non-cash unit-based compensation of $8 million, unrealized losses on commodity derivatives of $7 million and other of $19 million. For the six months ended June 30, 2023, Fuel Distribution segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $216 million and unrealized gains on commodity derivatives of $10 million and adding non-cash unit-based compensation of $9 million, inventory valuation adjustments of $19 million and other of $11 million.
Current report
Volumes. For the three and six months ended June 30, 2024 compared to the same periods last year, volumes increased primarily due to growth from investments and profit optimization strategies.
Current report
•a decrease of $15 million in expenses primarily due to the West Texas Sale in April 2024 and lower allocated overhead; partially offset by
Current report
•a decrease of $7 million in lease profit due to the West Texas Sale in April 2024.
Current report
Segment Adjusted EBITDA. For the six months ended June 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our Fuel Distribution segment increased due to the net impact of the following:
Current report
•an increase of $33 million related to a 7% increase in gallons sold, partially offset by a decrease in profit per gallon primarily as a result of the West Texas Sale; and
Current report
•a decrease of $9 million in expenses primarily due to the West Texas sale in April 2024 and lower allocated overhead; partially offset by
Current report
•a decrease of $6 million in lease profit due to the West Texas Sale in April 2024.
Current report
Pipeline Systems
Current report
(1)For the three months ended June 30, 2024, Pipeline Systems segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $121 million and other of $1 million and adding Adjusted EBITDA related to unconsolidated affiliates of $3 million. For the three months ended June 30, 2023, Pipeline Systems segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $1 million and adding Adjusted EBITDA related to unconsolidated affiliates of $3 million. For the six months ended June 30, 2024, Pipeline Systems segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $124 million and other of $2 million and adding Adjusted EBITDA related to unconsolidated affiliates of $6 million. For the six months ended June 30, 2023, Pipeline Systems segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $2 million and adding Adjusted EBITDA related to unconsolidated affiliates of $6 million and other of $1 million.
Current report
Volumes. For the three and six months ended June 30, 2024 compared to the same periods last year, volumes increased due to recently acquired assets.
Current report
Segment Adjusted EBITDA. For the three and six months ended June 30, 2024 compared to the same periods last year, Segment Adjusted EBITDA related to our Pipeline Systems segment increased due to the acquisition of NuStar.
Current report
Terminals
Current report
(1)For the three months ended June 30, 2024, Terminals segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $68 million and other of $1 million and adding inventory valuation adjustments of $2 million. For the three months ended June 30, 2023, Terminals segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $25 million and adding inventory valuation adjustments of $6 million and other of $1 million. For the six months ended June 30, 2024, Terminals segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $96 million and inventory valuation adjustments of $13 million. For the six months ended June 30, 2023, Terminals segment profit reconciles to Segment Adjusted EBITDA by subtracting expenses of $46 million and adding inventory valuation adjustments of $9 million and other of $1 million.
Current report
Volumes. For the three and six months ended June 30, 2024 compared to the same periods last year, volumes increased due to recently acquired assets.
Showing the first 40 of 59 passages. Open the source sections for the rest.
Removed paragraphs (22)
Previous report
We are a Delaware master limited partnership primarily engaged in the distribution of motor fuels to independent dealers, distributors and other customers and the distribution of motor fuels to end customers at retail sites operated by commission agents. We also receive rental income through the leasing or subleasing of real estate used in the retail distribution of motor fuels. As of March 31, 2024, we operated 76 retail stores located in Hawaii and New Jersey. In addition to distributing motor fuel, we also distribute other petroleum products such as propane and lubricating oil.
Previous report
We purchase motor fuel primarily from independent refiners and major oil companies and distribute it across more than 40 states and territories throughout the United States, including Hawaii and Puerto Rico, to:
Previous report
•76 company-owned and operated retail stores;
Previous report
•473 independently operated commission agent locations where we sell motor fuel to retail customers under commission agent arrangements with such operators;
Previous report
•6,804 retail stores operated by independent operators, which we refer to as “dealers” or “distributors,” pursuant to long-term distribution agreements; and
Previous report
•approximately 1,700 other commercial customers, including unbranded retail stores, other fuel distributors, school districts, municipalities and other industrial customers.
Previous report
•Motor fuel gallons sold. One of the primary drivers of our business is the total volume of motor fuel sold through our channels. Fuel distribution contracts with our customers generally provide that we distribute motor fuel at a fixed, volume-based profit margin or at an agreed upon level of price support. As a result, profit is directly tied to the volume of motor fuel that we distribute. Total motor fuel profit dollars earned from the product of profit per gallon and motor fuel gallons sold are used by management to evaluate business performance.
Previous report
•Profit per gallon. Profit per gallon is calculated as the profit on motor fuel (excluding non-cash inventory valuation adjustments as described under "Adjusted EBITDA" below) divided by the number of gallons sold, and is typically expressed as cents per gallon. Our profit per gallon varies amongst our third-party relationships and is impacted by the availability of certain discounts and rebates from suppliers. Retail profit per gallon is heavily impacted by volatile pricing and intense competition from retail stores, supermarkets, club stores and other retail formats, which varies based on the market.
Previous report
The following information is intended to provide investors with a reasonable basis for assessing our historical operations, but should not serve as the only criteria for predicting our future performance.
Previous report
Three Months Ended March 31, 2024 compared to Three Months Ended March 31, 2023
Previous report
The following table sets forth, for the periods indicated, information concerning key measures we rely on to gauge our operating performance:
Previous report
(1) We define Adjusted EBITDA, which is a non-GAAP financial measure, as described above under “Key Measures Used to Evaluate and Assess Our Business.”
Previous report
(2) Excludes the impact of inventory valuation adjustments consistent with the definition of Adjusted EBITDA.
Previous report
The Partnership’s results of operations are discussed on a consolidated basis below. Those results are primarily driven by the fuel distribution and marketing segment, which is the Partnership’s only significant segment. To the extent that results of operations are significantly impacted by discrete items or activities within the all other segment, such impacts are specifically attributed to the all other segment in the discussion and analysis below.
Previous report
In the discussion below, the analysis of the Partnership’s primary revenue generating activities are discussed in the analysis of Adjusted EBITDA, and other significant items impacting net income are analyzed separately.
Previous report
The following table presents a reconciliation of net income to Adjusted EBITDA for the three months ended March 31, 2024 and 2023:
Previous report
The following discussion compares the results of operations for the three months ended March 31, 2024 and 2023.
Previous report
Net Income and Comprehensive Income. For the three months ended March 31, 2024 compared to the same period last year, net income and comprehensive income increased primarily due to favorable inventory valuation adjustments in the current period, as discussed further below.
Previous report
•an increase in non-motor fuel sales and lease profit of $11 million primarily due to increased throughput and storage margin from recent acquisitions and increased rental income; partially offset by
Previous report
•an increase in operating costs of $15 million, including other operating expense, general and administrative expense and lease expense, primarily due to recent acquisitions of refined product terminals and the transmix processing and terminal facility.
Previous report
•borrowed $889 million and repaid $675 million under the Credit Facility; and
Previous report
•borrowed $759 million and repaid $859 million under the Credit Facility; and
Reworded paragraphs (17)
Previous wording
Many of the foregoing risks and uncertainties are, and will be, heightened by any further worsening of the global business and economic environment. New factors that could impact forward-looking statements emerge from time to time, and it is not possible for us to predict all such factors. Should one or more of the risks or uncertainties described or referenced in this Quarterly Report on Form 10-Q or our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 16, 2024 occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements.
Current wording
Many of the foregoing risks and uncertainties are, and will be, heightened by any further worsening of the global business and economic environment. New factors that could impact forward-looking statements emerge from time to time, and it is not possible for us to predict all such factors. Should one or more of the risks or uncertainties described or referenced in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 16, 2024 or our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 filed with the SEC on May 9, 2024 occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements.
Previous wording
You should not put undue reliance on any forward-looking statements. When considering forward-looking statements, please review the risks described or referenced under the heading “Item 1A. Risk Factors” herein, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 16, 2024. The list of factors that could affect future performance and the accuracy of forward-looking statements is illustrative but by no means exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in this report are based on, and include, our estimates as of the filing of this report. We anticipate that subsequent events and market developments will cause our estimates to change. However, we specifically disclaim any obligation to update any forward-looking statements after the date of this Quarterly Report on Form 10-Q, except as required by law, even if new information becomes available in the future.
Current wording
You should not put undue reliance on any forward-looking statements. When considering forward-looking statements, please review the risks described or referenced under the heading “Item 1A. Risk Factors” herein, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 16, 2024 or from the risk factors set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 filed with the SEC on May 9, 2024. The list of factors that could affect future performance and the accuracy of forward-looking statements is illustrative but by no means exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in this report are based on, and include, our estimates as of the filing of this report. We anticipate that subsequent events and market developments will cause our estimates to change. However, we specifically disclaim any obligation to update any forward-looking statements after the date of this Quarterly Report on Form 10-Q, except as required by law, even if new information becomes available in the future.
Previous wording
On May 3, 2024, we completed the previously announced acquisition of NuStar Energy L.P. (“NuStar”). Under the terms of the agreement, NuStar common unitholders received 0.400 SUN common units for each NuStar common unit. In connection with the acquisition, we issued approximately 50.6 million common units, which had a fair value of approximately $2.8 billion, assumed debt totaling approximately $3.4 billion and assumed preferred units with a fair value of approximately $800 million. NuStar has approximately 9,500 miles of pipeline and 63 terminal and storage facilities that store and distribute crude oil, refined products, renewable fuels, ammonia and specialty liquids.
Current wording
On May 3, 2024, we completed the previously announced acquisition of NuStar Energy L.P. (“NuStar”). Under the terms of the agreement, NuStar common unitholders received 0.400 SUN common units for each NuStar common unit. In connection with the acquisition, we issued approximately 51.5 million common units, which had a fair value of approximately $2.9 billion, assumed debt totaling approximately $3.5 billion and assumed preferred units with a fair value of approximately $800 million. NuStar has approximately 9,500 miles of pipeline and 63 terminal and storage facilities that store and distribute crude oil, refined products, renewable fuels, ammonia and specialty liquids.
Previous wording
•Adjusted EBITDA. Adjusted EBITDA, as used throughout this document, is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash unit-based compensation expense, unrealized gains and losses on commodity derivatives and inventory valuation adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss on disposal of assets and non-cash impairment charges. Inventory valuation adjustments that are excluded from the calculation of Adjusted EBITDA represent changes in lower of cost or market reserves on the Partnership's inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period.
Current wording
•Adjusted EBITDA. Adjusted EBITDA, as used throughout this document, is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, non-cash unit-based compensation expense, gains and losses on disposal of assets, non-cash impairment charges, losses on extinguishment of debt, unrealized gains and losses on commodity derivatives, inventory valuation adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations. Inventory valuation adjustments that are excluded from the calculation of Adjusted EBITDA represent changes in lower of cost or market reserves on the Partnership's inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period.
Previous wording
Interest Expense, net. For the three months ended March 31, 2024 compared to the same period last year, interest expense increased primarily due to an increase in average total long-term debt as well as higher interest rates on floating rate debt.
Current wording
Interest Expense, net. For the three months ended June 30, 2024 compared to the same period last year, interest expense increased primarily due to an increase in average total long-term debt.
Previous wording
Inventory Valuation Adjustments. Inventory valuation adjustments represent changes in lower of cost or market reserves using the last-in, first-out method on the Partnership’s inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period. For the three months ended March 31, 2024, and March 31, 2023, increases in fuel prices caused the lower of cost or market reserve requirements to decrease by $130 million and $29 million, respectively, which increased net income.
Current wording
Inventory Valuation Adjustments. Inventory valuation adjustments represent changes in lower of cost or market reserves using the last-in, first-out method on the Partnership’s inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period. For the three months ended June 30, 2024 and 2023, the Partnership's cost of sales included unfavorable inventory valuation adjustments of $32 million and $57 million, respectively, which decreased net income. For the six months ended June 30, 2024, the Partnership's cost of sales included favorable inventory valuation adjustments of $98 million, which increased net income; and for the six months ended June 30, 2023, the Partnership's cost of sales included unfavorable inventory adjustments of $28 million, which decreased net income.
Previous wording
Adjusted EBITDA. For the three months ended March 31, 2024 compared to the same period last year, Adjusted EBITDA increased primarily due to the net impact of the following:
Current wording
Segment Adjusted EBITDA. For the three months ended June 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our Fuel Distribution segment increased due to the net impact of the following:
Previous wording
•an increase in the profit on motor fuel sales of $25 million primarily due to a 9% increase in gallons sold, partially offset by a decrease in profit per gallon; and
Current wording
•an increase of $11 million related to a 5% increase in gallons sold, partially offset by a decrease in profit per gallon primarily as a result of the West Texas Sale; and
Previous wording
As of March 31, 2024, we had $215 million of cash and cash equivalents on hand and borrowing capacity of $870 million on our Credit Facility. The Partnership was in compliance with all financial covenants at March 31, 2024. Based on our current estimates, we expect to utilize capacity under the Credit Facility, along with cash from operations, to fund our announced growth capital expenditures and working capital needs for 2024; however, we may issue debt or equity securities prior to that time as we deem prudent to provide liquidity for new capital projects or other partnership purposes.
Current wording
As of June 30, 2024, we had $226 million of cash and cash equivalents on hand and borrowing capacity of $1.40 billion on our Credit Facility. The Partnership was in compliance with all financial covenants at June 30, 2024. Based on our current estimates, we expect to utilize capacity under the Credit Facility, along with cash from operations, to fund our announced growth capital expenditures and working capital needs for 2024; however, we may issue debt or equity securities prior to that time as we deem prudent to provide liquidity for new capital projects or other partnership purposes.
Previous wording
Three months ended March 31, 2024 compared to three months ended March 31, 2023. Net cash provided by operating activities during 2024 was $286 million compared to $326 million for 2023. The decrease in cash flows provided by operations was primarily due to a decrease in net cash flow from operating assets and liabilities of $30 million.
Current wording
Six months ended June 30, 2024 compared to six months ended June 30, 2023. Net cash provided by operating activities during 2024 was $216 million compared to $417 million for 2023. The decrease in cash flows provided by operations was primarily due to the gain on West Texas Sale of $598 million and a decrease in net cash flow from operating assets and liabilities of $6 million.
Previous wording
Three months ended March 31, 2024 compared to three months ended March 31, 2023. Net cash used in investing activities during 2024 was $223 million compared to $31 million for 2023. Capital expenditures for 2024 were $41 million compared to $37 million for 2023. In 2024, we paid $185 million in cash for the acquisition of liquid fuels terminals from Zenith Energy, including working capital. Distributions from unconsolidated affiliates in excess of cumulative earnings were $1 million and $3 million for 2024 and 2023, respectively. Proceeds from disposal of property and equipment were $2 million and $3 million for 2024 and 2023, respectively.
Current wording
Six months ended June 30, 2024 compared to six months ended June 30, 2023. Net cash provided by investing activities during 2024 was $727 million compared to net cash used in investing activities of $170 million for 2023. Capital expenditures for 2024 were $111 million compared to $87 million for 2023. In 2024, we paid $185 million in cash for the acquisition of liquid fuels terminals from Zenith Energy, including working capital, and received $27 million in cash from the NuStar acquisition. In 2023, we paid $111 million in cash for the acquisition of 16 refined product terminals from Zenith Energy, including working capital. Distributions from unconsolidated affiliates in excess of cumulative earnings were $4 million and $5 million for 2024 and 2023, respectively. Proceeds from disposal of property and equipment were $2 million and $21 million for 2024 and 2023, respectively. Additionally, we received $990 million in cash proceeds from the West Texas Sale.
Previous wording
Three months ended March 31, 2024 compared to three months ended March 31, 2023. Net cash provided by financing activities during 2024 was $123 million, and net cash used in financing activities during 2023 was $188 million.
Current wording
Six months ended June 30, 2024 compared to six months ended June 30, 2023. Net cash used in financing activities was $746 million and $90 million for 2024 and 2023, respectively.
Previous wording
During the three months ended March 31, 2024, we:
Current wording
During the six months ended June 30, 2024, we:
Previous wording
•paid $88 million in distributions to our unitholders, of which $43 million was paid to Energy Transfer.
Current wording
•paid $249 million in distributions to our unitholders, of which $104 million was paid to Energy Transfer; and
Previous wording
•paid $91 million in distributions to our unitholders, of which $43 million was paid to Energy Transfer.
Current wording
•paid $180 million in distributions to our unitholders, of which $85 million was paid to Energy Transfer.
Previous wording
For the three months ended March 31, 2024, total capital expenditures were $41 million, which included $27 million for growth capital and $14 million for maintenance capital.
Current wording
For the six months ended June 30, 2024, total capital expenditures were $119 million, which included $79 million for growth capital and $40 million for maintenance capital.
Previous wording
As of March 31, 2024, the balance on the Credit Facility was $625 million, and $5 million standby letters of credit were outstanding. The unused availability on the Credit Facility at March 31, 2024 was $870 million. The weighted average interest rate on the total amount outstanding at March 31, 2024 was 7.18%. The Partnership was in compliance with all financial covenants at March 31, 2024.
Current wording
As of June 30, 2024, the balance on the Credit Facility was $85 million, and $15 million standby letters of credit were outstanding. The unused availability on the Credit Facility at June 30, 2024 was $1.40 billion. The weighted average interest rate on the total amount outstanding at June 30, 2024 was 7.43%. The Partnership was in compliance with all financial covenants at June 30, 2024.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Adjusted EBITDA related to unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Segment Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
During the three months ended March 31, 2023, we: