Sunoco LP

17. Derivatives

Our subsidiaries hold working inventories of refined petroleum products, renewable fuels, gasoline blendstocks and transmix in storage. While in storage, volatility in the market price of stored motor fuel could adversely impact the price at which we can later sell the motor fuel. However, we may use futures, forwards and other derivative instruments (collectively, “positions”) to hedge a variety of price risks relating to deviations in that inventory from a target base operating level established by management. Derivative instruments utilized consist primarily of exchange-traded futures contracts traded on the New York Mercantile Exchange, Chicago Mercantile Exchange and Intercontinental Exchange, as well as over-the-counter transactions (including swap agreements) entered into with established financial institutions and other credit-approved energy companies. While these derivative instruments represent economic hedges, they are not designated as hedges for accounting purposes. We may also engage in controlled trading in accordance with specific parameters set forth in a written risk management policy.

On a consolidated basis, the Partnership had derivative positions on 4.5 million barrels with an aggregate unrealized gain of $23 million at September 30, 2026. As of September 30, 2026, the Partnership's interest rate swap derivative positions had a fair value of$8 million and were classified within Level 2 of the fair value hierarchy.

The following table summarizes the location and amounts recognized in our consolidated statements of operations with respect to our derivative financial instruments:

The following table summarizes our interest rate swaps outstanding, none of which were designated as hedges for accounting purposes:

(1)Floating rates are based on EURIBOR.

(2)The December 2030 interest rate swap was acquired in conjunction with the Partnership's acquisition of TanQuid in 2026, with a notional amount of €191 million ($216 million).