Welcome to our dedicated page for Crossamerica Partners Lp news (Ticker: CAPL), a resource for investors and traders seeking the latest updates and insights on Crossamerica Partners Lp stock.
Overview of CrossAmerica Partners LP
CrossAmerica Partners LP (NYSE: CAPL) is a prominent player in the U.S. fuel distribution and convenience retail industry, specializing in the wholesale distribution of motor fuels and the ownership and leasing of real estate used for retail fuel distribution. Established in 2012, the company has cultivated a robust presence across 29 to 34 states, distributing branded and unbranded petroleum products to approximately 1,200 to 1,600 locations and managing a portfolio of around 900 to 1,100 real estate sites. CrossAmerica's operations are underpinned by strong partnerships with leading oil brands such as ExxonMobil, BP, Shell, Chevron, Marathon, Valero, and Phillips 66, positioning it as one of ExxonMobil’s largest distributors by fuel volume in the United States.
Business Segments
Wholesale Segment
The Wholesale segment serves as the cornerstone of CrossAmerica’s business model, focusing on the distribution of motor fuels to lessee dealers, independent dealers, commission agents, and its own retail sites. This segment also generates revenue through leasing real estate to dealers and commission agents, creating a diversified income stream. By maintaining long-term relationships with major oil brands, CAPL ensures a steady supply of high-quality fuel products to its customers.
Retail Segment
The Retail segment complements the Wholesale operations by managing company-operated retail sites. This includes the sale of motor fuels directly to consumers and the operation of convenience stores offering a range of merchandise. The retail segment has grown significantly through strategic site conversions, transitioning lessee dealer and commission agent locations into company-operated sites. This vertical integration allows CAPL to capture additional value across the supply chain.
Market Position and Competitive Landscape
CrossAmerica Partners holds a unique position in the fuel distribution market, leveraging its dual focus on wholesale and retail operations. Its extensive geographic footprint and established relationships with major oil brands provide a competitive edge. However, the company operates in a highly competitive and price-sensitive industry, facing challenges from other fuel distributors and vertically integrated convenience store chains. CAPL differentiates itself through its hybrid business model, which combines fuel distribution with real estate management, offering both operational and financial flexibility.
Strategic Initiatives and Challenges
CAPL has undertaken several strategic initiatives to optimize its operations, including the conversion of lessee dealer and commission agent sites to company-operated locations. These conversions aim to enhance profitability but also involve increased operating expenses and capital investments. Additionally, the company engages in real estate rationalization efforts to streamline its portfolio and maximize asset utilization. Market volatility, particularly fluctuations in crude oil prices, poses a challenge to both the wholesale and retail segments, impacting fuel margins and profitability.
Key Differentiators
- Extensive Geographic Reach: Operations spanning 29-34 states ensure a broad market presence.
- Strong Brand Partnerships: Long-standing relationships with major oil brands like ExxonMobil and Shell.
- Hybrid Business Model: Integration of fuel distribution with real estate management for diversified revenue streams.
- Focus on Vertical Integration: Strategic site conversions to company-operated locations for enhanced control and profitability.
Conclusion
CrossAmerica Partners LP exemplifies a well-rounded business model that combines fuel distribution expertise with strategic real estate management. Its dual focus on Wholesale and Retail segments enables it to adapt to market dynamics while maintaining strong relationships with major oil brands. As a key player in the U.S. motor fuel supply chain, CAPL continues to navigate industry challenges and leverage opportunities for growth and operational efficiency.
CrossAmerica Partners LP (CAPL) reported strong financial results for Q4 and full year 2022. Q4 net income was $17.1 million, with adjusted EBITDA of $44.3 million and distributable cash flow of $33.3 million. Full year net income reached $63.7 million, with total adjusted EBITDA at $179.8 million. Gross profit improved in both the wholesale and retail segments, with Q4 wholesale gross profit at $32.8 million and retail gross profit at $60.4 million. The distribution coverage ratio increased to 1.67x in Q4 compared to 1.56x in Q4 2021. Additionally, leverage decreased to 3.7 times. A new board member was appointed as part of strategic initiatives to enhance operational performance.
CrossAmerica Partners LP (NYSE: CAPL) will disclose its fourth quarter and full-year 2022 earnings results on February 27, 2023, after market close. A conference call will follow on February 28 at 9:00 a.m. ET, allowing investors and interested parties to engage via telephone or live webcast. They can also access related earnings materials on the CrossAmerica Partners website. Established in 2012, the company is a leading distributor of motor fuels across 34 states, servicing approximately 1,750 locations.
CrossAmerica Partners LP has announced a quarterly distribution of $0.5250 per unit for the fourth quarter of 2022, resulting in an annualized distribution of $2.10 per unit. This distribution is payable on February 10, 2023, to unitholders of record on February 3, 2023. The company is scheduled to host a conference call on February 28 at 9:00 a.m. ET to discuss its fourth quarter and full-year earnings results, which are set for release after market close on February 27.
CrossAmerica Partners LP (NYSE: CAPL) has successfully completed the acquisition of specific assets from Community Service Stations for $27.5 million plus working capital. This deal encompasses wholesale fuel supply contracts covering approximately 75 million gallons of fuel annually across 38 dealer-owned locations and 35 subjobber accounts in the Greater Boston area. The acquisition is financed through cash reserves and undrawn credit capacity, and is anticipated to enhance distributable cash flow for limited partners.
CrossAmerica Partners LP (NYSE: CAPL) announced robust third quarter 2022 financial results, with operating income reaching $39.6 million and net income at $27.6 million, significantly up from $12.6 million and $8.9 million in Q3 2021. Adjusted EBITDA increased 73% to $62.2 million, while distributable cash flow grew 67% to $50.9 million. The wholesale segment gross profit surged 18% to $56.8 million, despite a 5% drop in gallons distributed. The retail segment gross profit jumped 102% to $56.3 million, due to higher fuel sales and margins, alongside a quarterly distribution of $0.525 per unit.
CrossAmerica Partners LP has announced a quarterly distribution of $0.5250 per unit for the third quarter of 2022, which annualizes to $2.10 per unit. This distribution will be payable on November 10, 2022, to unitholders of record as of November 3, 2022. Additionally, the company will hold a conference call on November 8 at 9:00 a.m. ET to discuss its third-quarter earnings, set to be released after market close on November 7. CrossAmerica is a leading wholesale distributor of motor fuels in the U.S.
CrossAmerica Partners LP (NYSE: CAPL) announced the release date for its third quarter 2022 earnings results, which will be available after market close on November 7, 2022. The management will conduct a conference call on November 8 at 9:00 a.m. ET. Interested parties can join the call using the numbers provided or listen to a live audio webcast on the company's investor relations page. CrossAmerica Partners is a prominent distributor of motor fuels across the U.S., operating in 34 states and servicing approximately 1,750 locations. For more details, visit www.crossamericapartners.com.
CrossAmerica Partners LP has announced the availability of its 2021 Tax Package for Schedule K-3. Unitholders can access the form online at partnerdatalink.com or request a physical copy via mail. The Schedule K-3 is crucial for various unitholders, including foreign investors and those needing specific tax details for accurate reporting. The company emphasizes the importance of consulting tax advisors regarding individual tax situations. CrossAmerica is a leading motor fuel distributor across 34 states.
On August 24, 2022, CrossAmerica Partners LP (CAPL) announced a definitive agreement to acquire assets from Community Service Stations. This acquisition involves wholesale fuel supply contracts that cover approximately 75 million gallons of fuel annually across 39 dealer locations and 34 subjobber accounts in the Greater Boston area. The deal is anticipated to close in Q4 2022 and will utilize cash on hand or revolving credit. It is expected to be immediately accretive to distributable cash flow, enhancing the company's presence in the New England fuel market.
CrossAmerica Partners LP (CAPL) reported strong Q2 2022 results, with operating income of $21.1 million and net income of $14.0 million, reflecting significant growth from Q2 2021's $8.2 million and $4.8 million, respectively. Adjusted EBITDA increased 39% to $41.4 million, while distributable cash flow rose 30% to $32.4 million. The wholesale segment gross profit reached $55.0 million, up 24% year-on-year, driven by fuel volume and margin increases, aided by the 7-Eleven acquisition. Retail segment gross profit grew 66% to $34.9 million. The Board declared a quarterly distribution of $0.5250 per unit.
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