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.
Company Overview
CrossAmerica Partners LP (CAPL) is a comprehensive wholesale distributor of motor fuels that also owns and leases real estate for retail fuel distribution. Operating within two primary segments, the company drives its business through both wholesale operations—distributing branded and unbranded petroleum products—and retail channels that include convenience merchandise and fuel sales at both company-operated locations and commission agent sites.
Core Business and Operations
The firm stands out for its dual-focused business model. In the wholesale segment, CrossAmerica distributes motor fuel to a diverse network comprising lessee dealers, independent dealers, commission agents, and sub-wholesalers. Its strategic partnerships with multiple major oil brands such as ExxonMobil, BP, Shell, Chevron, and others underpin its ability to serve a vast array of customers across numerous states. This robust network ensures a steady supply chain that provides value to both fuel suppliers and retail operators.
The retail segment complements the wholesale operations by focusing on the direct sale of motor fuel and convenience merchandise. The retail operations include company-operated sites and those managed by commission agents. This integration allows the company to dynamically adapt to shifts in market conditions, including the conversion of lessee dealer sites into company-operated or commission agent sites. The firm uses this conversion strategy to better align operational efficiencies while maintaining strong customer service across its geographical footprint.
Market Position and Industry Significance
CrossAmerica Partners LP has solidified its standing in the motor fuel distribution sector by leveraging established relationships and a strong network of branded fuel providers. It is recognized as one of the largest distributors for prominent brands by fuel volume, emphasizing its role as a critical intermediary between oil companies and retail services. With a presence spanning multiple states, the company exhibits significant market penetration and resilience in a competitive energy infrastructure landscape.
Real Estate and Site Operations
Beyond fuel distribution, the company strategically owns and leases sites essential for retail fuel distribution. These assets are vital for operational flexibility, as they allow CrossAmerica to control key locations that facilitate both fuel sales and convenience store operations. The ownership model supports long-term operational stability by maintaining prime real estate assets that remain in high demand within the motor fuel retail sector.
Business Model Nuances
The company’s integrated approach touches on the complete supply chain from fuel distribution to retail sales. This model includes:
- Wholesale Distribution: Serving a diverse network with consistent supply of branded and unbranded motor fuels.
- Retail Integration: Operating and facilitating fuel stations that also offer convenience merchandise, enhancing customer engagement at the point of sale.
- Real Estate Management: Owning and leasing strategically important sites that provide long-term revenue opportunities and operational flexibility.
Strategic Partnerships and Operational Adjustments
Key to CrossAmerica’s competitive advantage is its ability to maintain long-term relationships with major oil companies. By aligning its logistics and distribution channels efficiently, the company ensures a reliable supply of diverse fuel options while also adapting through site conversions when market dynamics shift—a strategy that contributes to its sustained operational performance even amid changing fuel margins and conversion-related adjustments.
Conclusion
Through a balanced portfolio of wholesale distribution and retail site operations, CrossAmerica Partners LP fortifies its role in the transportation and energy infrastructure segments. The company’s adept management of real estate assets coupled with its expansive network of oil brand partnerships positions it as a vital entity in the motor fuel supply chain, delivering both operational efficiency and wide market reach that appeals to diverse customer bases across the United States.
CrossAmerica Partners LP (NYSE: CAPL) filed its Annual Report on Form 10-K for the fiscal year ending December 31, 2022, with the SEC on February 28, 2023. This report includes the Partnership's audited financial statements and can be accessed via the Partnership's or SEC's websites. Unitholders can request printed copies for detailed insights into financial performance. CrossAmerica Partners operates as a wholesale distributor of motor fuels and convenience store operator, covering 34 states and serving approximately 1,750 locations. Notably, it ranks among ExxonMobil's largest distributors by fuel volume in the U.S.
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.
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