ARKO Petroleum APC

ARKO Petroleum Corp is a growth oriented fuel distribution company and one of the largest wholesale fuel distributors by volume in North America. The company supplies fuel to roughly thirty five hundred locations spread across the District of Columbia and more than thirty states in the Mid Atlantic Midwestern Northeastern Southeastern and Southwestern regions of the United States. Headquartered in Richmond Virginia ARKO Petroleum Corp was incorporated in July 2025 as a Delaware corporation and operates as a wholly owned subsidiary of ARKO Corp also known as ARKO Parent. Its core activities consist of purchasing fuel from independent refiners and major oil companies and distributing that fuel through third party haulers and its own trucks to three main customer groups. These groups are third party gas station dealers commercial fleets and municipal entities that use cardlock locations and the convenience stores operated by ARKO Parent. The firm also provides proprietary fuel cards that give cardholders access to a nationwide network of fueling sites.

ARKO Petroleum Corp generates revenue primarily from the sale of motor fuel and related fees across its three operating segments. In the wholesale segment the company sells fuel to dealers and bulk purchasers under cost plus or consignment arrangements earning a fixed markup above its fuel cost or a share of the gross profit from the final sale. The fleet fueling segment derives income from selling diesel and gasoline at company owned and third party cardlock locations and from receiving commissions when customers use its proprietary fuel cards at participating retail and private fueling sites. The GPMP segment supplies fuel to ARKO Parent’s retail convenience stores at the company’s fuel cost plus a set margin per gallon and charges a fixed fee per gallon to certain ARKO Retail Sites that are not supplied by the GPMP segment. For the fiscal year ended December 31 2025 the wholesale segment contributed approximately two point eight billion dollars in revenue the fleet fueling segment contributed about four hundred eighty three point eight million dollars and the GPMP segment generated roughly two point three billion dollars from sales to ARKO Retail Sites. Revenue is driven by the volume of gallons distributed which reached two billion gallons for the year.

The company organizes its operations into three distinct segments wholesale fleet fueling and GPMP.

• The wholesale segment supplies fuel to gas stations operated by third party dealers sub wholesalers and bulk and spot purchasers. It uses two primary contract types cost plus and consignment. Under cost plus contracts the dealer buys the fuel from ARKO Petroleum Corp and the company earns a fixed markup above its fuel cost. Under consignment contracts ARKO Petroleum Corp retains ownership of the fuel until it is sold to the end customer and the gross profit is split either by percentage or through a fixed fee per gallon paid to the dealer. As of December 31 2025 the segment served two thousand ninety nine sites including one thousand eight hundred one cost plus sites and two hundred ninety eight consignment sites. The segment sold nine hundred eighty nine point one million gallons of fuel and generated two point eight billion dollars in revenue with a fuel contribution of ninety four point five million dollars.
• The fleet fueling segment operates proprietary and third party cardlock locations that are unstaffed fueling sites primarily dispensing diesel to commercial fleets and municipal entities. In addition the segment earns commissions from the sale of fuel at third party locations when customers use its proprietary fuel cards which are accepted at more than three hundred twenty thousand retail private fueling sites truck stops maintenance providers and service locations. As of December 31 2025 the segment operated two hundred ninety five cardlock sites and sold one hundred forty two point eight million gallons of fuel. This activity produced approximately four hundred eighty three point eight million dollars in revenue and a fuel contribution of sixty five point seven million dollars.
• The GPMP segment provides fuel to substantially all of ARKO Parent’s retail convenience stores known as ARKO Retail Sites at the company’s fuel cost including taxes and transportation plus a fixed margin per gallon which was five point zero cents per gallon through December 31 2025 and increased to six point zero cents per gallon thereafter. The segment also charges a fixed fee per gallon to certain ARKO Retail Sites that are not supplied by the GPMP segment and conducts inter segment sales of fuel to wholesale and fleet fueling locations at cost plus the same margin which are eliminated in consolidated reporting. As of December 31 2025 the GPMP segment supplied fuel to one thousand ninety five ARKO Retail Sites and sold eight hundred sixty four point eight million gallons of fuel generating two point three billion dollars in revenue and a fuel contribution of forty three point two million dollars.

ARKO Petroleum Corp holds a strong position in the highly fragmented United States wholesale fuel distribution market where it ranks among the top ten independent distributors by volume. The company benefits from its substantial scale which allows it to negotiate favorable pricing terms with major oil companies such as BP ExxonMobil Marathon Motiva Shell and Valero. Its relationships with these suppliers enable it to offer both branded and unbranded fuel options to customers giving it a competitive edge over smaller distributors that may rely on a limited supplier base. The firm’s large cardlock network and proprietary fuel card product provide differentiation in the fleet fueling space where it competes against onsite delivered fuel companies and traditional retail gas stations. Additionally the company’s conservative capital structure and steady cash flow from long term cost plus contracts reduce its exposure to commodity price volatility and support reliable service to customers. Competition comes from other independent wholesalers integrated oil companies that market fuel directly and regional logistics firms that provide delivered fuel services. Nonetheless ARKO Petroleum Corp’s scale supplier diversity and integration with ARKO Parent create a durable advantage in the market.

The company’s customer base consists of third party gas station operators who purchase fuel under cost plus or consignment agreements commercial fleets and municipal entities that fuel at cardlock locations and holders of its proprietary fuel cards bulk and spot purchasers seeking fuel on a non exclusive basis and ARKO Parent which relies on ARKO Petroleum Corp to supply substantially all of its retail convenience stores. While the filing does not disclose the individual names of third party dealers or bulk customers it identifies ARKO Parent as a significant counterparty that accounted for a large share of the company’s gallon volume in 2025. The diverse mix of retail wholesale and fleet customers allows ARKO Petroleum Corp to balance its revenue streams and reduce reliance on any single customer group.