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 (NYSE: CAPL) will release its fourth quarter/year-end 2021 earnings results on February 28, 2022, post market closure. A live conference call is scheduled for March 1 at 9:00 a.m. ET. Investors can access the call via phone at 800-774-6070 or 630-691-2753 using passcode 8674133#. A webcast of the call and related earnings materials will also be available on CrossAmerica's website. The company operates as a wholesale distributor of motor fuels, serving approximately 1,800 locations across 34 states.
CrossAmerica Partners LP (CAPL) announced its third quarter 2021 financial results, reporting an operating income of $12.6 million and a net income of $8.9 million. This marks a decrease from $23.7 million and $21.2 million in Q3 2020, respectively. However, Adjusted EBITDA increased by 20% to $35.9 million, and Distributable Cash Flow rose to $30.4 million, demonstrating growth in operational performance despite challenges. The company distributed approximately 354.6 million gallons of fuel, showing an 8% increase in volume. Additionally, CrossAmerica closed on 98 properties from 7-Eleven, enhancing its retail footprint.
CrossAmerica Partners LP announced a quarterly distribution of $0.5250 per unit for Q3 2021, maintaining an annualized rate of $2.10 per unit. This distribution is payable on November 10, 2021, to unitholders of record as of November 3, 2021. The partnership, a key player in fuel distribution with operations in 34 states and relationships with major oil brands, will host a call on November 9 to discuss Q2 earnings results, which will be released on November 8.
CrossAmerica Partners LP (NYSE: CAPL) announced it will report its third quarter 2021 earnings on November 8, 2021, after market close. A conference call will follow on November 9 at 9:00 a.m. ET, providing insights into the financial performance and metrics of the company. The call can be accessed via toll-free numbers or a live audio webcast available on the CrossAmerica website. The company is a significant player in the wholesale distribution of motor fuels in the U.S.
CrossAmerica Partners LP (CAPL) reported its second quarter 2021 results, showing operating income of $8.2 million and net income of $4.8 million, compared to $6.3 million and $5.2 million in Q2 2020. Adjusted EBITDA increased by 7% to $29.7 million. Gross profit for the wholesale segment was $44.2 million, marking a 9% rise, while retail gross profit also increased by 32% to $21.1 million. The company began its $263 million acquisition of 106 convenience stores from 7-Eleven. The Board appointed Maura Topper as the new CFO, effective August 11, 2021.
CrossAmerica Partners LP announced a quarterly distribution of $0.5250 per unit for the second quarter of 2021, which is annualized to $2.10 per unit. This distribution is payable on August 10, 2021 to unitholders of record as of August 3, 2021. A conference call is scheduled for August 10 at 9:00 a.m. ET to discuss the earnings results, which will be released after the market closes on August 9.
CrossAmerica Partners LP (NYSE: CAPL) will release its second quarter 2021 earnings results after the market closes on August 9, 2021. A conference call will follow on August 10, 2021 at 9:00 a.m. ET. Interested parties can join the call by dialing 800-774-6070 or 630-691-2753 (passcode: 8674133#). A live audio webcast will also be available on the company’s investor website, along with materials including reconciliations of non-GAAP to GAAP measures. CrossAmerica is a significant fuel distributor in the U.S., operating across 34 states.
On May 17, 2021, CrossAmerica Partners (NYSE: CAPL) announced that its President and CEO, Charles Nifong, will participate in a fireside chat at the Energy Infrastructure Council (EIC) Investor Conference in Las Vegas on May 19, 2021, at 5:45 p.m. ET. The session will be available live via audio webcast on their investor website.
CrossAmerica Partners is a prominent distributor of motor fuels and operates convenience stores across 34 states, serving around 1,700 locations. It has strong ties with major oil brands like ExxonMobil and BP.
CrossAmerica Partners LP (NYSE: CAPL) reported a first-quarter 2021 operating loss of $0.9 million and a net loss of $4.0 million, a stark contrast to the $77.4 million operating income and $72.1 million net income achieved in Q1 2020, which included a $70.9 million gain from asset sales. Adjusted EBITDA declined to $20.7 million, down 18% year-over-year. The company distributed 291.8 million gallons of fuel, reflecting a 32% volume increase but a 19% decrease in gross margin per gallon. CrossAmerica announced plans to acquire 106 convenience store locations for $263 million, expected to enhance future cash flow.
CrossAmerica Partners LP (CAPL) announced a definitive agreement to acquire 106 convenience store locations from 7-Eleven, Inc. for $263 million. This acquisition aims to enhance CrossAmerica's retail operations and increase scale within its existing asset base. The sites, primarily operating under the Speedway brand, recorded 160 million gallons of fuel sales and $134 million in merchandise sales over the past year. The transaction is expected to be immediately accretive to distributable cash flow and will be financed through existing credit facilities and cash. Closing is contingent on regulatory approvals.
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