CAPL Units Closing in on Record High
Sometimes even great stocks benefit from knee-jerk investor optimism. And it can be a great time for shareholders to take advantage of these opportunities. Prices for gas can fluctuate due to local taxes, proximity to refineries, and even supply disruptions.
Typically, supply disruptions come from severe weather events. And lately, severe winter weather across a large portion of the U.S. has led gasoline and natural gas prices to soar.
Will this last forever? No. But investing is about opportunity. And, right now, things are looking up for CrossAmerica Partners LP (NYSE:CAPL) units.
About CrossAmerica Partners LP
CrossAmerica Partners 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, January 27, 2026.)
With a geographic footprint that spans 34 U.S. states, CrossAmerica Partners distributes petroleum for motor vehicles to over 1,800 locations. It’s always looking to streamline its operations and take advantage of industry tailwinds.
For the nine months ended September 30, 2025, CrossAmerica sold 96 properties for $94.5 million, resulting in a net gain of $42.5 million.
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.”
Q3 Earnings & Revenue Beat
Despite ongoing volatility with crude oil prices, CrossAmerica Partners reported another solid quarter, with third-quarter operating revenue of $971.8 million. That’s down from $1.01 billion in the third quarter of 2024, but up from Wall Street consensus of $816.6 million. (Source: “CrossAmerica Partners LP Reports Third Quarter 2025 Results,” CrossAmerica Partners LP, November 5, 2025.)
The company reported third-quarter net income of $13.6 million, up from $10.7 million in the same prior-year period. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $41.3 million, down slightly from $43.9 million in the same period last year.
Third-quarter gross profit for the retail segment was $80.0 million, down four percent from $83.6 million in the third quarter of 2024. CrossAmerica’s gross profit for the wholesale segment was $24.8 million versus $27.6 million in the third quarter of 2024.
The all-important distributable cash flow advanced 2.5% to $27.8 million.
Commenting on the results, Charles Nifong, the company’s president and chief executive officer, said, “We generated solid operating results for the third quarter. We also continued to make meaningful progress on our asset-sale initiative, completing approximately $22 million in transactions during the quarter. These sales enabled us to reduce debt by a similar amount, lower operating and administrative expenses, and further advance our strategic objective of enhancing the long-term quality and performance of our portfolio.”
Quarterly Distribution of $0.5250/Unit Declared
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 9.25%. (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 second quarter was 1.39 times.
CAPL Trumping S&P 500?
This Pennsylvania-based oil and gas refining and marketing company has a history of reporting solid financial results and offers a reliable dividend. Moreover, in April 2025, CAPL units hit a record high of $25.73.
While CAPL drifted lower from those levels, it recently popped on winter storms ravaging the U.S. Since the start of 2026, CAPL units are up more than 10%; that’s far better than the S&P 500, which is up just 1.9% year to date.
CAPL is also up:
- 8.8% over the last month
- 10% over the last three months
- 10.1% year over year
Currently trading hands at $22.67, the units are closing in on their April 2025 record high.
For technical traders, CAPL just formed a golden cross, a bullish indicator where the faster 50-day moving average (blue line) crosses above the slower 200-day moving average (red line). Holding this formation could see the stock move towards its record high.
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. This has allowed it to pay down debt, strengthen its balance sheet, and maintain its ultra-high distribution. We’ll get to see how CrossAmerica has performed in the fourth quarter in the coming weeks.
While every publicly traded company wants to perform well, this is especially true for companies with a big insider ownership. And CrossAmerica Partners does fit into that category; 52.46% of all shares are held by insiders. (Source: “CrossAmerica Partners LP (CAPL),” Yahoo! Finance, last accessed January 27, 2026.)
Meanwhile, institutions hold 23.91% of all outstanding shares. Some of the biggest holders include Invesco Ltd, JP Morgan Chase & Company, and Raymond James Financial, Inc.