My take is much the same. I hold about 4K shares so I'm biased but looking at the IQ2016 financials and the REAL growth strategy they are following as reiterated in the Conf Call, I think this might be the best yielding, good growth play I'm aware of...period. Retail gasoline business is very highly fragmented and SUN has found that buying, building, consolidating, branding, rebranding, adding services & food, etc., can build a strong, more effective and more efficient business...and it all seems to be working well. This is probably a good place to add more shares to lock in 11% yield....
Just listened to the CC. Sounds like a hell of a good company, run by real professionals, dedicated to sustaining reasonable growth that will be accretive to earnings and distributable cash flow with a continued commitment to growing distributions and maintaining a minimum of a 1.1x coverage ratio. Sounded like IQ2016 volume-weighted margins on all gallons of 14.7 cents were helped a bit by their Supply & Trading group and it was mentioned that it might not be sustainable...but then again it was said that the Supply & Trading group is very talented...Several times it was mentioned that SUN feels it is in a normalized area for margins. I also heard some optimism on improvements in oil prices going forward. Net Net, I didn't hear anything that made me worry about the distribution. I don't think they increased the distribution 2% with the idea that they'd have to back down later in the year.
I strongly suspect that the Jeffries analyst has never run a business, never had to manage a payroll, never developed a strategic plan, never been on a board of directors or a management team....so he knows more about the financial future of SUN than its seasoned management???Give me a break.