Debt Obligations |
3 Months Ended |
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Mar. 31, 2026 | |
| Debt Obligations [Abstract] | |
| Debt Obligations | DEBT OBLIGATIONS Recent Transactions Energy Transfer Notes Issuances and Redemptions In January 2026, the Partnership issued $1.00 billion aggregate principal amount of 4.55% senior notes due 2031, $1.00 billion aggregate principal amount of 5.35% senior notes due 2036 and $1.00 billion aggregate principal amount of 6.30% senior notes due 2056. The Partnership used the net proceeds to refinance existing indebtedness, including to repay commercial paper and borrowings under its Five-Year Credit Facility. In January 2026, the Partnership redeemed its $1.00 billion aggregate principal amount of 4.75% senior notes due January 2026 using cash on hand and commercial paper borrowings. In February 2026, the Partnership redeemed its $600 million aggregate principal amount of 5.625% senior notes due May 2027 using cash on hand and commercial paper borrowings. Sunoco LP Senior Notes Issuances and Redemption In March 2026, Sunoco LP issued $600 million aggregate principal amount of 5.375% senior notes due 2031 and $600 million aggregate principal amount of 5.625% senior notes due 2034. These notes will mature on July 15, 2031 and July 15, 2034, respectively, and interest is payable semi-annually on January 15 and July 15 of each year, commencing on July 15, 2026. Sunoco LP used a portion of the net proceeds from this private offering to redeem in full its $500 million aggregate principal amount of 6.000% senior notes due 2026 and its $600 million aggregate principal amount of 6.000% senior notes due 2027. In March 2026, Sunoco LP redeemed Parkland’s remaining senior notes. Credit Facilities and Commercial Paper Five-Year Credit Facility The Partnership’s revolving credit facility (the “Five-Year Credit Facility”) allows for unsecured borrowings up to $5.00 billion until April 11, 2027, and up to $4.84 billion until April 11, 2029. The Five-Year Credit Facility contains an accordion feature, under which the total aggregate commitment may be increased up to $7.00 billion under certain conditions. As of March 31, 2026, the Five-Year Credit Facility had $1.49 billion of outstanding borrowings, all of which consisted of commercial paper. The amount available for future borrowings was $3.45 billion, after accounting for outstanding letters of credit in the amount of $61 million. The weighted average interest rate on the total amount outstanding as of March 31, 2026 was 3.95%. Sunoco LP Credit Facility As of March 31, 2026, Sunoco LP’s credit facility, which matures in June 2030, had $125 million of outstanding borrowings and $151 million in standby letters of credit. The unused availability on Sunoco LP’s revolving credit facility as of March 31, 2026 was $2.22 billion. The weighted average interest rate on the total amount outstanding as of March 31, 2026 was 5.52%. Sunoco LP Receivables Financing Agreement Upon the closing of Sunoco LP’s acquisition of NuStar, the commitments under NuStar’s receivables financing agreement were reduced to zero during a suspension period, for which the period end has not been determined. As of March 31, 2026 this facility had no outstanding borrowings. USAC Credit Facility As of March 31, 2026, USAC’s credit facility, which matures in August 2030, had $1.25 billion of outstanding borrowings and $2 million outstanding letters of credit. As of March 31, 2026, USAC’s credit facility had $498 million of remaining unused availability. The weighted average interest rate on the total amount outstanding as of March 31, 2026 was 5.66%. Compliance with our Covenants We and our subsidiaries were in compliance with all requirements, tests, limitations and covenants related to our debt agreements as of March 31, 2026. For the quarter ended March 31, 2026, the Partnership’s leverage ratio, as calculated pursuant to the covenant related to its Five-Year Credit Facility, was 3.16x.
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