CrossAmerica Partners LP (NYSE: CAPL)

CrossAmerica Partners LP (CAPL), a company listed on the New York Stock Exchange under the symbol CAPL, operates in the wholesale distribution of motor fuel and the ownership and leasing of real estate used in the retail distribution of motor fuel. The company's business model is rooted in the supply of motor fuel to lessee dealers and independent dealers, as well as the retail sale of motor fuel and convenience merchandise items at company-operated sites and commission sites.

CAPL's operations span across the United States, with a network of approximately 1,100 sites, of which 295 are company-operated. The company's reach extends to about 1,700 sites in 34 states, demonstrating its broad footprint in the motor fuel distribution industry.

The company's revenue generation is primarily driven by its wholesale segment, which involves the distribution of motor fuel to lessee dealers and independent dealers. These two sub-segments constitute the core of CAPL's wholesale operations, with independent dealers owning or leasing the property and CAPL exclusively distributing motor fuel, while lessee dealers lease the property from CAPL and own all motor fuel and retail site inventory.

On the other hand, the retail segment contributes to CAPL's revenue through the sale of convenience merchandise items at company-operated sites and the retail sale of motor fuel at company-operated and commission sites. The company's retail strategy is built on the operation of sites by the company or by commission agents who pay rent to CAPL and operate the site for their own account.

CAPL's competitive edge lies in its stable cash flows from diversified operations, a history of successful site acquisitions and integrations, long-term relationships with major oil companies and suppliers, and prime real estate locations in high-traffic areas with significant motor fuel consumption. These strengths position CAPL as a formidable player in the motor fuel distribution industry, competing with other motor fuel distributors in the wholesale segment and various retail site chains, independently owned sites, motor fuel stations, and other retail outlets in the retail segment.

The company's primary customers include major oil companies such as ExxonMobil, BP, Motiva, Shell, Sunoco, Valero, Gulf, Citgo, Marathon, and Phillips 66, with approximately 94% of the motor fuel distributed in 2023 being branded. This customer base underscores CAPL's significant role in the motor fuel distribution value chain.