Company: CAPL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028082
Chunk: 55

Company: CrossAmerica Partners LP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 55
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 increasing our quarterly cash distributions, is focused on the following key initiatives:

•Expand within and beyond our existing markets through acquisitions. Since our IPO and through February 21, 2025, we have completed acquisitions for a total of approximately 1,000 fee and leasehold sites and 700 wholesale fuel supply contracts for total consideration of approximately $1.5 billion;

•Enhance our real estate business’ cash flows by owning or leasing sites in prime locations;

•Increase cash flows from our retail segment by operating our retail sites efficiently with a focus on providing excellent value and service;

•Increase cash flows from our wholesale segment by expanding market share and growing rental income over time;

•Maintain strong relationships with major integrated oil companies and refiners; and

•Optimize the operations of our assets to the most appropriate format (lessee dealer, independent dealer, company operated, or commission) to maximize our investment return.

We believe our competitive strengths will allow us to capitalize on our strategic opportunities, including:

•Stable cash flows from diversified operations of our portfolio of assets, including rental income, motor fuel distribution and retail convenience store sales;

•Established history of acquiring sites and successfully integrating these sites and operations into our existing business;

•Long-term relationships with major integrated oil companies and other key suppliers, which support our negotiations with and enable us to collaboratively work with our suppliers to maximize benefits to the Partnership; and

•Prime real estate locations in areas with high traffic and considerable motor fuel consumption.

Subsequent to an acquisition and throughout the life cycle of a site, we evaluate the optimal operation of each site as company operated, commission or lessee dealer, or we consider strategic alternatives, including divesting the site, which can result in the site becoming an independent dealer site if we continue to supply fuel to it after its divestiture.

Supplier Arrangements

We distribute branded motor fuel under the Exxon, Mobil, BP, Shell, Marathon, Valero and Phillips 66 brands to our customers. Branded motor fuels are purchased from major integrated oil companies and refiners under supply agreements. For 2024, we purchased approximately 81% of our motor fuel from four suppliers. Certain suppliers offer volume rebates or incentive payments to drive volumes and provide an incentive for branding new locations. Certain suppliers require that all or a portion of any such incentive payments be repaid to the supplier in the event that the sites are rebranded within a stated number of years. We also purchase unbranded motor fuel for distribution. As of December