Financial Performance - Operating revenues for Q3 2025 were $971.8 million, a decrease of 10% from $1,079.2 million in Q3 2024[13] - Gross profit for Q3 2025 was $104.8 million, down from $111.2 million in Q3 2024, reflecting a gross margin of approximately 10.8%[13] - Net income for Q3 2025 increased to $13.6 million, compared to $10.7 million in Q3 2024, representing a year-over-year growth of 27.5%[13] - Earnings per common unit for Q3 2025 were $0.34, up from $0.27 in Q3 2024, indicating a 25.9% increase[13] - Total revenues for the three months ended September 30, 2025, were $971,847 thousand, a decrease from $1,079,163 thousand in the same period of 2024[85] - Gross profit for the three months ended September 30, 2025, was $104,770 thousand, compared to $111,226 thousand for the same period in 2024, reflecting a decline of approximately 5.1%[86] - Operating income for the three months ended September 30, 2025, was $28,087 thousand, slightly up from $27,096 thousand in 2024, indicating a year-over-year increase of 3.7%[89] - The company reported a net income before income taxes of $16,453 thousand for the three months ended September 30, 2025, compared to $13,124 thousand in 2024, marking an increase of 25.5%[89] Assets and Liabilities - Total assets as of September 30, 2025, were $998.9 million, a decrease from $1,114.7 million at the end of 2024[11] - Total liabilities decreased to $1,060.9 million as of September 30, 2025, down from $1,139.5 million at the end of 2024[11] - Property and equipment, net, decreased to $568,888,000 as of September 30, 2025, from $656,300,000 as of December 31, 2024, indicating a reduction of about 13.3%[35] - Long-term debt and finance lease obligations totaled $710,989,000 as of September 30, 2025, down from $775,436,000 as of December 31, 2024, a decrease of about 8.3%[37] Cash Flow and Investments - The company’s cash and cash equivalents increased to $5.8 million as of September 30, 2025, compared to $3.4 million at the end of 2024[11] - Cash flows from operating activities for the nine months ended September 30, 2025, were $62.065 million, down from $76.672 million in 2024[18] - The company had a net cash increase of $2.385 million for the nine months ended September 30, 2025, compared to $2.775 million in 2024[18] - The company acquired assets from Applegreen for a total consideration of $16.9 million, transitioning 59 locations to company-operated sites[29] Expenses and Costs - Operating expenses for Q3 2025 were $84.1 million, a decrease from $88.8 million in Q3 2024, reflecting cost management efforts[13] - The company reported depreciation, amortization, and accretion expense of $69.671 million for the nine months ended September 30, 2025, compared to $57.903 million in 2024[18] - Impairment charges recorded during the three months ended September 30, 2025, were $4.2 million, compared to $3.2 million in the same period of 2024, reflecting an increase of approximately 31.3%[35] - Cash paid for interest in the nine months ended September 30, 2025, was $36,112 thousand, slightly down from $36,987 thousand in 2024[95] Inventory and Receivables - Total inventory as of September 30, 2025, was $60,967,000, a decrease from $63,169,000 as of December 31, 2024, representing a decline of approximately 3.4%[33] - Total accounts receivable as of September 30, 2025, was $34,572 thousand, an increase from $32,237 thousand at December 31, 2024[89] - Receivables from fuel and merchandise sales increased to $33,421 thousand as of September 30, 2025, from $30,115 thousand at December 31, 2024[89] Environmental and Tax Liabilities - Environmental liabilities recorded on the balance sheet totaled $9.0 million and $8.4 million at September 30, 2025, and December 31, 2024, respectively[63] - Income tax expense for the three months ended September 30, 2025, was $2.9 million, compared to $2.4 million for the same period in 2024[76] - The effective tax rate differs from the combined federal and state statutory rate primarily because only corporate subsidiaries are subject to income tax[76] Distributions and Common Units - The company paid $60.212 million in distributions during the nine months ended September 30, 2025[18] - Common unit distributions to the Topper Group were $7.7 million for each of the three months ended September 30, 2025, and 2024, indicating stability in distributions[49] - Distributions paid on common units for the three months ended September 30, 2025, were $20,012,000, compared to $19,975,000 in 2024[78] Operational Changes - The company converted 13 sites from lessee dealer sites to company-operated or commission agent sites in the retail segment during the three months ended September 30, 2025[84] - The company has exclusive motor fuel distribution contracts with lessee dealers and independent dealers in the wholesale segment[81]

Core Insights - CrossAmerica Partners LP reported solid operating results for Q3 2025, with increases in retail same-store sales and merchandise margin percentage, despite a decline in retail same-store fuel volumes [3][4] - The company completed approximately $22 million in asset sales during the quarter, which helped reduce debt and lower operating expenses [3][4] - Net income for Q3 2025 was $13.6 million, up from $10.7 million in Q3 2024, primarily due to gains from asset sales and reduced interest expenses [4][5] Financial Performance - Q3 2025 consolidated results showed: - Net Income: $13.6 million (up from $10.7 million in Q3 2024) - Adjusted EBITDA: $41.3 million (down from $43.9 million in Q3 2024) - Distributable Cash Flow: $27.8 million (up from $27.1 million in Q3 2024) - Distribution Coverage Ratio: 1.39x (compared to 1.36x in Q3 2024) [4][5][6] - Operating expenses decreased by 5% from $60.8 million in Q3 2024 to $57.5 million in Q3 2025 [5][6] Retail Segment Performance - Retail segment gross profit for Q3 2025 was $80.0 million, down from $83.6 million in Q3 2024, with motor fuel gross profit declining by $5.0 million or 11% [7][8] - Same-store motor fuel gallons distributed decreased by 4%, totaling 132.6 million gallons in Q3 2025 compared to 137.9 million gallons in Q3 2024 [7][8] - Merchandise gross profit increased by 5% year-over-year, with a gross profit percentage rising from 27.9% to 28.9% [9][10] Wholesale Segment Performance - Wholesale segment gross profit decreased by 10% to $24.8 million in Q3 2025, driven by a decline in motor fuel and rent gross profit [11][12] - Motor fuel gallons distributed in the wholesale segment fell to 177.7 million in Q3 2025 from 186.9 million in Q3 2024 [11][12] Asset Sales and Debt Management - CrossAmerica sold 29 properties for $21.9 million in proceeds during Q3 2025, resulting in a net gain of $7.4 million [12] - As of September 30, 2025, leverage was 3.56 times, down from 4.36 times at the end of 2024 [13] Distribution Information - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q3 2025, to be paid on November 13, 2025 [14]

Core Insights - Midstream energy stocks are involved in the processing, transportation, and storage of crude oil, natural gas, and natural gas liquids, operating in a sector less affected by spot pricing due to long-term contracts [1][5] - Master limited partnerships (MLPs) are highlighted as a strong investment option for energy exposure, offering substantial and dependable dividends, particularly from midstream companies [2][5] - A screening of midstream MLPs identified four top companies that provide high distributions to shareholders, emphasizing their appeal for income-focused investors [3] Industry Overview - Energy MLPs are attractive investments due to their structure and market position, typically offering annual distributions of 5% to 8% by distributing most cash flow to unitholders, thus providing a steady income stream [5] - MLPs benefit from stable, fee-based revenues linked to energy transportation, which mitigates risks associated with commodity price volatility [5] Company Spotlight - Cross America Partners L.P. has shown significant growth and is expected to continue this trend, offering a high dividend yield of 10.60% [6] - The company operates through two segments: wholesale distribution of motor fuel and retail sales at various sites, including convenience stores [7]

Core Viewpoint - CrossAmerica Partners LP is set to announce its third quarter 2025 earnings results on November 5, 2025, with a conference call scheduled for November 6, 2025, at 9:00 a.m. Eastern Time [2][3]. Company Overview - CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and convenience store operator, formed in 2012. The company distributes branded and unbranded petroleum for motor vehicles across approximately 1,600 locations and owns or leases around 1,000 sites [5]. - The company operates in 34 states and has established relationships with major oil brands, including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66. It ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and is among the top 10 for additional brands [5]. Conference Call Details - The conference call can be accessed via numbers 800-990-4333 or 646-769-9600, with a passcode of 284226. A live audio webcast will also be available on the investor section of the CrossAmerica website [3]. - An archive of the webcast will be accessible within 24 hours after the call and will remain available for sixty days [4].

Core Viewpoint - CrossAmerica Partners LP is set to announce its third quarter 2025 earnings results on November 5, 2025, with a conference call scheduled for November 6, 2025, at 9:00 a.m. Eastern Time [2][3]. Company Overview - CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and convenience store operator, formed in 2012. The company distributes branded and unbranded petroleum for motor vehicles across approximately 1,600 locations and owns or leases around 1,000 sites [5]. - The company operates in 34 states and has established relationships with major oil brands, including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66. It ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and is among the top 10 for additional brands [5].

Group 1 - Midstream energy stocks are involved in the processing, transportation, and storage of crude oil, natural gas, and natural gas liquids [1]

Group 1 - The article discusses investment opportunities in dividend stocks with yields ranging from 5% to 10% or more, supported by strong earnings [1] - The investment group "Hidden Dividend Stocks Plus" is led by Robert Hauver, who has over 30 years of investing experience and focuses on undercovered and undervalued income vehicles [2] Group 2 - The portfolio managed by "Hidden Dividend Stocks Plus" can include up to 40 holdings at a time, along with features like a dividend calendar and weekly research articles [1]

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Second Quarter 2025 Performance Overview - Retail Segment gross profit decreased by 1% to $76.127 million[6] - Retail Segment operating income decreased by 10% to $25.299 million[6] - Wholesale Segment gross profit decreased by 12% to $24.865 million[6] - Wholesale Segment operating income decreased by 15% to $17.744 million[6] - Net income increased by 103% to $25.168 million[8] - Adjusted EBITDA decreased by 13% to $37.083 million[8] - Distributable Cash Flow decreased by 14% to $22.396 million[8] Capital Management - Second quarter capital expenditures totaled $11.8 million, including $9.3 million in growth capex[13] - Credit facility balance was $727.0 million as of June 30, 2025[13] - Leverage ratio was 3.65x at June 30, 2025[13]

[CrossAmerica Partners LP Second Quarter 2025 Results](index=1&type=section&id=CrossAmerica%20Partners%20LP%20Reports%20Second%20Quarter%202025%20Results) The company reported higher net income from asset sales but saw a decline in core operational metrics like Adjusted EBITDA and Distributable Cash Flow [Overview of Second Quarter 2025 Results](index=1&type=section&id=Overview%20of%20Second%20Quarter%202025%20Results) Net income rose due to asset sales, while core operational performance declined, though debt reduction improved the company's leverage ratio Key Operating Metrics | Key Operating Metrics | Q2 2025 | Q2 2024 | | --- | --- | --- | | Net Income | $25.2M | $12.4M | | Adjusted EBITDA | $37.1M | $42.6M | | Distributable Cash Flow | $22.4M | $26.1M | | Distribution Coverage Ratio: Current Quarter | 1.12x | 1.30x | - The increase in Net Income was primarily driven by a **$28.4 million net gain** from asset sales and lease terminations, compared to a $5.6 million gain in the prior-year period[4](index=4&type=chunk)[6](index=6&type=chunk) - **Adjusted EBITDA declined by $5.5 million** year-over-year due to lower fuel and rent gross profit and higher operating expenses[6](index=6&type=chunk) - The company **reduced debt by more than $50 million** through asset sales, improving the leverage ratio from 4.36x to **3.65x**[3](index=3&type=chunk)[5](index=5&type=chunk) - The Board of Directors declared a quarterly distribution of **$0.5250 per limited partner unit**, consistent with the previous quarter[5](index=5&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) The Retail segment's performance was stable while the Wholesale segment saw a significant decline in gross profit due to lower volumes and margins [Retail Segment](index=2&type=section&id=Retail%20Segment) Retail gross profit remained stable as merchandise growth nearly offset a slight decline in fuel profit and higher operating expenses Retail Segment Metrics | Retail Segment Metrics | Q2 2025 | Q2 2024 | | --- | --- | --- | | Retail segment gross profit | $76.1M | $76.6M | | Retail segment motor fuel gallons distributed | 141.7M | 143.0M | | Same store merchandise sales excluding cigarettes* | $70.8M | $68.3M | | Merchandise gross profit* | $30.5M | $29.8M | | Operating Expenses | $50.8M | $48.6M | - Motor fuel gross profit **declined by $0.5 million (1%)** due to a 1% decrease in both volume and margin per gallon[8](index=8&type=chunk) - Merchandise gross profit **increased by 2%**, supported by a **4% rise** in same-store merchandise sales (excluding cigarettes)[9](index=9&type=chunk) - Operating expenses **increased by 5%**, primarily due to a 5% increase in the average segment site count resulting from the conversion of lessee dealer sites[10](index=10&type=chunk) [Wholesale Segment](index=3&type=section&id=Wholesale%20Segment) Wholesale gross profit fell 12% due to a significant drop in fuel volume and lower margins, influenced by site conversions to the retail segment Wholesale Segment Metrics | Wholesale Segment Metrics | Q2 2025 | Q2 2024 | | --- | --- | --- | | Wholesale segment gross profit | $24.9M | $28.1M | | Wholesale motor fuel gallons distributed | 179.2M | 192.1M | | Average wholesale gross margin per gallon | $0.085 | $0.087 | - The **12% decrease in segment gross profit** was driven by declines in both motor fuel and rent gross profit, primarily due to the conversion of sites between segments[12](index=12&type=chunk) - A significant portion of the **7% decrease in wholesale volume** is attributed to the conversion of wholesale locations to retail locations, with the associated volume now reported in the retail segment[12](index=12&type=chunk) [Corporate Activities and Financial Position](index=3&type=section&id=Corporate%20Activities%20and%20Financial%20Position) The company executed significant property sales, using the proceeds to reduce debt and substantially improve its leverage ratio [Divestment Activity](index=3&type=section&id=Divestment%20Activity) The company sold 60 properties for $64.0 million, generating a significant gain while retaining fuel supply relationships for most locations - Sold **60 properties for $64.0 million** in proceeds during the three months ended June 30, 2025[13](index=13&type=chunk) - The sales resulted in a **net gain of $29.7 million**[13](index=13&type=chunk) - CrossAmerica **maintained a fuel supply relationship** with substantially all of the divested locations post-sale[13](index=13&type=chunk) [Liquidity, Capital Resources, and Distributions](index=3&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Distributions) Financial flexibility improved significantly through a $51 million debt reduction and a lower leverage ratio, while maintaining its quarterly distribution - The balance on the CAPL Credit Facility was **paid down from $778.0 million to $727.0 million** during the quarter[14](index=14&type=chunk) - Leverage, as defined in the credit facility, **improved to 3.65 times** as of June 30, 2025, compared to 4.36 times as of December 31, 2024[14](index=14&type=chunk) - A quarterly distribution of **$0.5250 per limited partner unit** for Q2 2025 was declared on July 23, 2025[15](index=15&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Financial statements reflect the impact of divestments, showing reduced assets and liabilities, and a significant increase in net income [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities decreased due to property sales and subsequent debt repayment, reflecting a smaller but deleveraged balance sheet Balance Sheet Highlights (in thousands) | Balance Sheet Items | June 30, 2025 | December 31, 2024 | | --- | --- | --- | | Total assets | $1,028,470 | $1,114,725 | | Property and equipment, net | $586,579 | $656,300 | | Total liabilities | $1,082,620 | $1,139,508 | | Debt and finance lease obligations, less current portion | $722,694 | $763,932 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Net income more than doubled year-over-year, driven by a substantial gain on dispositions which offset lower operating revenues Income Statement Highlights (in thousands) | Income Statement Items (Q2) | 2025 | 2024 | | --- | --- | --- | | Operating revenues | $961,925 | $1,133,355 | | Gross profit | $100,992 | $104,762 | | Gain on dispositions, net | $28,365 | $5,578 | | Operating income | $41,497 | $28,177 | | Net income | $25,168 | $12,424 | | Basic Net earnings per common unit | $0.64 | $0.31 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations remained stable, while investing activities provided significant cash from asset sales used for debt repayment and distributions Cash Flow Highlights (in thousands) | Cash Flow Items (Six Months Ended June 30) | 2025 | 2024 | | --- | --- | --- | | Net cash provided by operating activities | $37,697 | $34,723 | | Net cash provided by (used in) investing activities | $50,871 | $(26,114) | | Net cash used in financing activities | $(82,232) | $(8,109) | | Net increase in cash and cash equivalents | $6,336 | $500 | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) This section provides reconciliations for non-GAAP measures, a corporate overview, and cautionary notes on forward-looking statements [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliations show a decline in Adjusted EBITDA and Distributable Cash Flow, resulting in a lower but still healthy distribution coverage ratio - The company uses non-GAAP measures including **EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Distribution Coverage Ratio** to assess financial performance, service debt, and the ability to make distributions[33](index=33&type=chunk)[34](index=34&type=chunk) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow (in thousands) | Reconciliation (Q2) | 2025 | 2024 | | --- | --- | --- | | Net income (loss) | $25,168 | $12,424 | | EBITDA | $64,967 | $46,781 | | Adjusted EBITDA | $37,083 | $42,570 | | Distributable Cash Flow | $22,396 | $26,051 | | Distribution Coverage Ratio | 1.12x | 1.30x | [Company Overview and Forward-Looking Statements](index=11&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) CrossAmerica is a major US motor fuel distributor and convenience store operator, and this report contains forward-looking statements - CrossAmerica Partners is a leading wholesale distributor of motor fuels, distributing to approximately **1,600 locations** and owning or leasing over 1,000 sites in **34 states**[37](index=37&type=chunk) - The report includes a cautionary statement advising that **forward-looking statements are not guarantees** of future performance and actual results could differ materially[38](index=38&type=chunk)