10%-Yielding CrossAmerica Reports Solid Q4
March 23, 2026
CAPL Units Outpacing S&P 500?
The war with Iran may be taking place thousands of miles away in the Middle East, but high energy prices are hitting Americans directly in their pocketbooks. The price of gas soared more than 20% from under $3.00 per gallon in late February to $3.60 in mid-March. Prices are significantly higher in California, averaging close to $5.50 per gallon.
Some experts believe that gas prices could climb even higher, to $4.00 per gallon. It all depends, of course, on the length and severity of the war in Iran.
The price of crude oil has been holding steady at over $100.00 per barrel. However, it could go even higher. The Strait of Hormuz, which carries about one-third of global oil shipments, is currently blocked. If disruptions continue, crude could rise to $150.00 to $200.00 per barrel.
And that would continue to have a huge impact on gasoline prices. There aren’t too many people cheering high gas prices, except of course companies like CrossAmerica Partners LP (NYSE:CAPL).
About CrossAmerica Partners LP
CrossAmerica Partners LP is a leading U.S. wholesale distributor of motor fuels, operator of convenience stores, and owner and lessee of real estate used in the retail distribution of motor fuels. (Source: “Who We Are,” CrossAmerica Partners LP, March 16, 2026.)
With a geographic footprint that spans 34 U.S. states, CrossAmerica Partners distributes petroleum for motor vehicles to over 1,800 locations. It has well-established relationships with major oil brands, including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66.
It also operates seven convenience stores at more than 250 locations across 10 states in the eastern U.S. The sites offer food, various essentials, and car washes. Some locations are also paired with prominent national brands such as “Arby’s,” “Dunkin’,” and “Subway.”
On the executive front, CrossAmerica Partners announced in early March that Maura Topper, was appointed President and CEO. She previously held the position of CFO at CrossAmerica Partners since 2021. (Source: “CrossAmerica Partners LP Announces President and CEO Transition,” CrossAmerica Partners LP, March 2, 2026.)
Q4 Earnings Beat
Despite weaker commodity prices in the fourth quarter, CrossAmerica reported a solid quarter, which included an earnings beat. The partnership reported fourth-quarter operating revenue of $866.3 million, down from $944.2 million in the same prior-year period. (Source: “CrossAmerica Partners LP Reports Fourth Quarter and Full Year 2025 Results,” CrossAmerica Partners LP, February 25, 2026.)
The company’s net income available to limited partners came in at $9.5 million, or $0.25 per share, down from $16.2 million, or $0.42 per share, in the fourth quarter of 2024. Its adjusted earnings before interest taxes, depreciation, and amortization (EBITDA) was $43.4 million, up 22% over the $35.5 million recorded in the same period in 2024.
CrossAmerica’s fourth-quarter 2025 distributable cash flow was $28.5 million, up from $21.1 million in the fourth quarter of 2024.
During the fourth quarter, the company sold 11 sites for $8.8 million in proceeds, resulting in net gains of $3.4 million. For the 12 months ended December 31, 2025, CrossAmerica sold 107 properties for $103.3 million in proceeds, resulting in net gains of $45.9 million.
Commenting on the fourth-quarter results, Charles Nifong, the company’s president and chief executive officer, said, “We delivered a solid fourth quarter, driven by strong retail and wholesale fuel margins, along with growth in same-store sales and store margin percentage, resulting in performance well above the prior year.
“Throughout the year, we successfully divested non-core locations, generating over $100 million in proceeds that we used to materially reduce our debt and enhance our financial flexibility. As a result, we enter 2026 with a solid core business and a strong balance sheet to support future growth.”
Quarterly Distribution of $0.5250/Unit
Dependable real estate rental income and motor fuel distribution provides CrossAmerica Partners with solid cash flow, which allows it to provide shareholders with a reliable, high-yield distribution.
In February, the company paid out a fourth-quarter distribution of $0.5250 per share, or $2.10 on an annual basis, for a current forward yield of approximately 10%. (Source: “CrossAmerica Partners LP Maintains Quarterly Distribution,” CrossAmerica Partners LP, January 21, 2026.)
That distribution is safe, too. CrossAmerica targets a coverage ratio of 1.2x. Its coverage ratio for the fourth quarter was 1.43 times.
CAPL Trumping S&P 500?
CrossAmerica Partners has a history of reporting solid financial results and a reliable dividend. In April 2025, CAPL units hit a record high of $25.18.
While CAPL drifted lower from those levels for much of the rest of 2025, they popped in the opening months of 2026, hitting a 52-week high of $23.40 in mid-February. It see-sawed in late February and early March on, no doubt, concerns about the war in Iran. But CAPL units have rebounded to a large extent since then, and were trading hands at $21.42 as of March 16. This puts CAPL up 6.7% year to date. For comparison’s sake, the S&P 500 is down 2.2% in 2026.
Chart courtesy of StockCharts.com
The Lowdown on CrossAmerica Partners LP
CrossAmerica Partners LP is an energy partnership with a strong domestic footprint. Despite a challenging 2025, the company has reported solid financial results all year long.
In the fourth quarter, it reported increases in adjusted EBITDA, distributable cash flow, and its distribution coverage ratio. For the full year, the company reported increases in net income, adjusted EBITDA, distributable cash flow, and its distribution coverage ratio.
This has allowed CrossAmerica to pay down debt, strengthen its balance sheet, and maintain its ultra-high distribution.
While every publicly traded company wants to perform well, this is especially true for companies that have significant insider ownership. And CrossAmerica Partners does; 52.5% of all CAPL shares are held by insiders. (Source: “CrossAmerica Partners LP (CAPL),” Yahoo! Finance, last accessed March 16, 2026.)
Meanwhile, institutions hold 23.72% of all outstanding shares. Some of the biggest holders include Invesco Ltd, JP Morgan Chase & Company, and Raymond James Financial, Inc.
