HOUSTON --Sunoco LP, formerly Susser Petroleum Partners LP, has announced financial and operating results for the three and nine months ended Sept. 30, 2014, reporting net income for the quarter of $1 million, compared with $9.6 million in third-quarter 2013. Net income includes the impact of $5.1 million in charges related to the merger with ETP, other acquisition activity and revolving credit facility refinancing.
Adjusted EBITDA totaled $14 million, and distributable cash flow was $11.8 million, versus $13.8 million and $12.7 million, respectively, for the prior-year period. Revenue in the third quarter was $1.3 billion, an 11.8% increase compared to $1.2 billion in the comparable period last year. The increase was the result of a 17.2% increase in gallons sold and an 83.8% increase in rental income, partly offset by a 14-cent-per-gallon decrease in the average selling price per gallon.
Gross profit for the latest quarter totaled $21.9 million, a 19% increase compared to $18.4 million in third-quarter 2013. On a weighted average basis, fuel margin for all gallons sold increased slightly to 3.8 cents per gallon, compared to 3.7 cents per gallon a year earlier, excluding the impact of fuel inventory valuation adjustments.
Affiliate customers at September 30 included 645 Stripes and Sac-N-Pac convenience stores operated by a subsidiary of our parent company, ETP, as well as sales of motor fuel to ETP for resale under consignment arrangements at approximately 85 independently operated convenience stores. Motor fuel gallons sold to affiliates during the quarter increased 12.7% from a year ago to 302.7 million gallons. Gross profit on these gallons totaled $9.2 million, or three cents per gallon, versus $8.1 million, or three cents per gallon, in same period last year.
Third-party customers included 516 independent dealers under long-term fuel supply agreements, 22 independently operated consignment locations and more than 1,900 other commercial customers. Total gallons sold to third parties increased year-over-year by 26.5% to 165.6 million gallons. Gross profit on these gallons was $8.9 million excluding a $2.1 million non-cash fuel valuation adjustment, or 5.3 cents per gallon, compared to $6.8 million, or 5.2 cents per gallon, in the prior-year period.
Revenue for the first nine months of 2014 totaled $3.9 billion, a 15.4% increase compared to the first nine months of 2013. Gross profit for this period increased 30.1% year-over-year to $66.2 million. Total gallons of motor fuel sold to affiliates increased by 11.5% to 873.7 million gallons, and gallons sold to third parties increased by 31.8% to 489.8 million. On a weighted average basis, fuel margin for all gallons sold increased to 3.8 cents per gallon for the first nine months of 2014 from the 3.6 cents per gallon in the comparable 2013 period. Adjusted EBITDA was $45.2 million, compared to $37.8 million for the 2013 period, and distributable cash flow was $39.5 million, versus $35 million for the first nine months of last year.
Effective with the beginning of trading on the New York Stock Exchange (NYSE) on Oct. 27, 2014, the partnership changed its name from Susser Petroleum Partners LP to Sunoco LP and its ticker symbol from SUSP to SUN. Additionally, SUN's general partner, Susser Petroleum Partners GP LLC also changed its name to Sunoco GP LLC.
On Aug. 29, 2014, ETP completed its acquisition of Susser Holdings Corp., the owner of Sunoco LP's general partner. As a result of this transaction, a subsidiary of ETP now owns 100% of the general partner of Sunoco LP, along with 100% of the incentive distribution rights. ETP currently owns a 44.2% limited partner interest in SUN.
On Oct. 1, 2014, Sunoco LP acquired Mid-Atlantic Convenience Stores LLC from its parent, ETP, for approximately $768 million. SUN issued approximately four million new SUN common units to ETP and paid $556 million of cash. MACS includes approximately 110 company-operated c-stores and 200 dealer-operated and consignment sites in Virginia, Maryland, Tennessee and Georgia offering Sunoco, Exxon, Mobil and Shell branded motor fuel.
Sunoco LP agreed to acquire Honolulu-based Aloha Petroleum Ltd., the largest independent gasoline marketer and one of the largest c-store operators in Hawaii. The transaction includes six fuel storage terminals and a wholesale fuel distribution network that markets to approximately 100 company- or dealer-operated stores. The base purchase price is $240 million, subject to a post-closing earn-out, closing adjustments and before transaction expenses. The companies expect the acquisition to close by the end of the year.
The company added six new contracted dealer sites in the third quarter, and discontinued seven sites for a total of 538 third-party dealer and consignment locations supplied by SUN as of Sept. 30, 2014, in addition to the 85 consignment sites supplied by a subsidiary of parent company ETP. Year to date, SUN has acquired or added 44 dealer sites and discontinued 12, and expects to add an additional 5 to 15 dealers during the fourth quarter in addition to the dealers and company-operated sites being acquired with the MACS and Aloha acquisitions.
Including the Stripes store purchases, SUN's gross capital expenditures for the third quarter were $38.4 million, which included $38.2 million for growth capital and $200,000 for maintenance capital. Excluding the acquisition of MACS and Aloha, the Partnership expects to spend approximately $2 million to $5 million for maintenance capital for full year 2014, and approximately $150 million to $170 million on expansion capital. Included in growth capex is the purchase of 28 to 33 new Stripes stores that will be leased back to Stripes.
Houston-based Sunoco is a master limited partnership (MLP) that primarily distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors. SUN also operates more than 100 c-stores and retail fuel sites. SUN's general partner is a wholly owned subsidiary of ETP. While primarily engaged in natural gas, natural gas liquids, crude oil and refined products transportation, ETP also operates a retail business with a network of more than 5,500 company- or independently-operated retail fuel outlets and c-stores through its wholly owned subsidiaries, Sunoco Inc. and Stripes LLC.
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