For the fourth quarter of 2020, the Partnership recorded net income of $83 million, adjusted EBITDA was $159 million compared to $168 million in the fourth quarter of 2019.
Volumes of 1.8 billion gallons were relatively unchanged from the third quarter, but remain down about 12% from levels seen a year ago.
Fuel margin was $0.092 per gallon and included approximately $8 million of one-time write-offs associated with prior period fuel tax and inventory-related items.
Fourth quarter margin also included approximately $9 million of unfavorability related to inventory valuation and associated hedges.
For the full-year 2020, the impact of this inventory valuation and hedging activity resulted in approximately $2 million of margin favorability.
Fourth quarter distributable cash flow, as adjusted, was $97 million, yielding a coverage ratio of 1.1 times.
We ended the full-year 2020 with the coverage ratio of 1.5 times.
On January 28, we declared an $0.8255 per unit distribution, the same as last quarter.
Our full-year 2020 accomplishments include the following: adjusted EBITDA of $739 million, a record for SUN and up 11% from 2019 levels; distributable cash flow, as adjusted, was $517 million, also a record for SUN and up 14% from 2019.
We improved our already strong coverage ratio to 1.5 times, up from 1.3 times in both 2018 and 2019.
Our cost reduction initiatives resulted in total operating expenses of $448 million, which was a reduction of 11% from 2019 levels.
Our fuel margin increased $0.018 per gallon from 2019 to $0.119 per gallon.
We successfully refinanced our 4.875% Senior Notes due 2023, with new 4.5% Senior Notes due 2029, thereby lowering interest expense, while significantly expanding the weighted average maturity of our debt.
And finally, we improved our leverage to 4.18 times, or 4.1 times when adjusted for total cash on hand from 4.6 times at the end of 2019.
Our liquidity remains strong, with an undrawn $1.5 billion revolving credit facility and $97 million in cash at year-end.
In December, we provided guidance for 2021 for adjusted EBITDA of between $725 million and $765 million.
Underpinning this guidance are the following: fuel volumes in a range of 7.25 billion to 7.75 billion gallons; annual fuel margin between $0.11 per gallon and $0.12 per gallon; total operating expenses of between $440 million and $450 million; maintenance capital of $45 million; and growth capital of at least $120 million.
We will be financially disciplined with the target coverage ratio of 1.4 times, which is up from our prior target of 1.2 times and a target leverage ratio of 4 times, which is down from our prior target of 4.5 times to 4.75 times.
First, during our last conference call, I shared the volumes were off around 12% for October.
Year-over-year, J.C. Nolan volume reductions accounted for 3% of total volume for the fourth quarter.
So that would put our volumes down only 9%, if you remove the impact of J.C. Nolan.
If you look back at our history, that would have likely resulted in margins close to $0.09 a gallon, maybe even dipping a little lower.
And we still feel like a floor in the $0.095 to $0.10 range is reasonable for these tough market environments, excluding one-time issues in the quarter.
Over that time period, New York Harbor RBOB has gone up around $0.75 per gallon.

Summary:
Volumes of 1.8 billion gallons were relatively unchanged from the third quarter, but remain down about 12% from levels seen a year ago.
In December, we provided guidance for 2021 for adjusted EBITDA of between $725 million and $765 million.
Underpinning this guidance are the following: fuel volumes in a range of 7.25 billion to 7.75 billion gallons; annual fuel margin between $0.11 per gallon and $0.12 per gallon; total operating expenses of between $440 million and $450 million; maintenance capital of $45 million; and growth capital of at least $120 million.