10 Cheapest Oil and Gas Stocks to Invest in

7. Sunoco LP (NYSE:SUN)

Forward P/E: 9.82

Potential Upside: 14.88%

Number of Hedge Fund Holders: 5

Sunoco LP (NYSE:SUN) released its 2026 guidance on January 6, 2026, forecasting a full-year adjusted EBITDA of $3.1 billion to $3.3 billion. The outlook reflects roughly $125 million in expected synergies from the Parkland acquisition. It also incorporates a planned 50-day maintenance turnaround at the Burnaby Refinery, beginning in late January, as well as the expected first-quarter closing of the TanQuid acquisition. The guidance also assumes at least $600 million in growth capital expenditures, along with $400 million to $450 million in maintenance capital expenditures.

Moreover, the company outlined its capital allocation strategy. This includes a multi-year pipeline of bolt-on acquisitions of no less than $500 million per year and a return to its long-term leverage target of four times during the year. The strategy also targets a distribution growth rate of at least 5% supported by quarterly increases. The company also expects to increase distributable cash flow per common unit for the ninth consecutive year and provide equal dividend equivalents to its investors. These actions highlight the partnership’s growing focus on income growth for unitholders and balance sheet strength.

The company also received an upgrade from Raymond James on January 5. Justin Jenkins, an analyst at Raymond James, upgraded the stock from Outperform to Strong Buy while maintaining the price target of $70. The upgrade is part of a broader rating adjustment in the midstream supplier sector for 2026.

Sunoco LP (NYSE:SUN) is involved in the distribution of motor fuels and energy infrastructure in the United States. The company operates through the Pipeline Systems, Fuel Distribution, and Terminals segments. It was incorporated in 1886 and is headquartered in Dallas, Texas.