CrossAmerica Partners LP Stock: 10%-Yielder Reports Solid Q2 Results
August 27, 2025
Wall Street Remains Bullish on CrossAmerica Partners
Despite some calls to the contrary, the average price of gas in the U.S. is $3.13 per gallon. Gas prices, of course, vary by region, with states on the West Coast, notably California, generally paying the highest prices, while the Midwest and South tend to be cheaper. (Source: “Today’s Gas Prices By State,” Forbes, August 19, 2025.)
Prices for gas can fluctuate due to local taxes, proximity to refineries, and even supply disruptions. Typically, supply disruptions stem from severe weather events, but this year, production delays are a result of aging infrastructure. That said, nearly all U.S. refiners are operational, which is a positive sign for gas prices.
And, with the U.S. economy chugging along and fears of a recession in the rear-view mirror, the outlook remains solid for an energy stock like CrossAmerica Partners LP (NYSE:CAPL).
About the Company
Based in Allentown, Pennsylvania, the oil and gas refining and marketing company has a history of reporting solid financial results and offers a reliable dividend. Moreover, in April, CrossAmerica Partners LP stock hit a record high of $25.73. CAPL units have drifted lower from those levels, but remain above $24.00.
CrossAmerica is a leading U.S. wholesale distributor of motor fuels that also operates convenience stores and owns and leases real estate used in the retail distribution of motor fuels. (Source: “Who We Are,” CrossAmerica Partners LP, August 19, 2025.)
With a geographic footprint that spans 34 U.S. states, the company distributes petroleum for motor vehicles to over 1,800 locations. It’s always looking to streamline its operations and take advantage of industry tailwinds.
In the second quarter, CrossAmerica sold 60 properties for $64.0 million, resulting in a net gain of $29.7 million. This allowed it to pay down more than $50.0 million in debt and strengthen its balance sheet.
CrossAmerica 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 paired with prominent national brands such as “Arby’s,” “Dunkin’,” and “Subway.”
Another Solid Quarter
For the second quarter ended June 30, 2025, CrossAmerica Partners reported operating revenue of $961.9 million. This resulted in gross profit of $100.9 million. (Source: “CrossAmerica Partners LP Reports Second Quarter 2025 Results,” CrossAmerica Partners LP, August 6, 2025.)
The company reported second-quarter net income of $25.2 million, more than double the $12.4 million it recorded in the same prior-year period.
Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $37.1 million, down slightly from $42.6 million in the second quarter of 2024.
CrossAmerica’s distributable cash flow slipped to $22.4 million from $26.1 million in the same period last year.
Commenting on the results, Charles Nifong, the company’s president and chief executive officer, said, “Our second quarter results showed a meaningful improvement over the first quarter, although they remained below prior-year levels.”
Nifong added, “While overall demand remains soft, our volume and store sales outpaced industry trends, reflecting the strength of our market position.”
CrossAmerica Partners LP Stock: Quarterly Distribution Held at $0.5250/Unit
Dependable real estate rental income and motor fuel distribution provide the company with solid cash flow, which allows CrossAmerica Partners LP stock to provide shareholders with a reliable, high-yield distribution.
In August, CrossAmerica Partners LP stock paid out a second-quarter distribution of $0.5250 per share, or $2.10 on an annual basis, for a current forward yield of 10.3%. (Source: “CrossAmerica Partners LP Maintains Quarterly Distribution,” CrossAmerica Partners LP, July 23, 2025.)
That distribution is safe, too. CrossAmerica targets a coverage ratio of 1.2x. Its coverage ratio for the second quarter was 1.12 times.
Outlook for CrossAmerica Partners LP Stock Remains Robust
CAPL units went on a solid run after the November 2024 presidential election. Investors were buoyed by incoming President Donald Trump’s pro-business policies. From the start of November through April 2025, CrossAmerica Partners LP stock rallied an impressive 25%.
CAPL took a big hit in early April though, after President Trump announced his global tariff policies. Investors were spooked on the thought of how a global trade war could impact the economy.
While global stocks have rebounded since then, with the S&P 500 hovering near record levels, energy stocks in general are still facing headwinds. Year to date, energy is the third worst-performing sector, up just 0.87%.
Despite the company posting solid second-quarter results, CrossAmerica Partners stock has slipped from its April 2025 record levels down to near $20.00 per unit. From a technical perspective, CAPL units could continue to trend lower.
CrossAmerica Partners LP stock’s quicker moving 50-day moving average (MA) crossed below the slower-moving 200-day MA in late July. When the 200-day MA crosses over the 50-day MA, this forms a “death cross,” a bearish technical indicator that points to additional downside. We saw this take place with CrossAmerica Partners LP stock back in July 2024.
Conversely, investors should also keep an eye out for the bullish “golden cross” indicator. That’s where the 50-day MA crosses above the 200-day MA. Should CrossAmerica Partners LP stock hold this formation, it could then move towards its record high. CAPL last made this formation in October 2024, proceeding to climb considerably higher over the ensuing months.
Chart courtesy of StockCharts.com
The Lowdown on CrossAmerica Partners LP Stock
CrossAmerica is an energy partnership with a strong domestic footprint. Despite a challenging industry-wide start to the year, the company reported solid first- and second-quarter results, paid down debt, strengthened its balance sheet, and maintained its ultra-high distribution.
While every publicly traded company wants to perform well, this is especially true for companies with significant insider ownership. And CrossAmerica Partners LP stock does fit into the latter category: 52.43% of all CAPL shares are held by insiders. (Source: “CrossAmerica Partners LP (CAPL),” Yahoo! Finance, last accessed August 19, 2025.)
Meanwhile, 72 institutions hold 24.14% of all outstanding CrossAmerica Partners LP stock. Some of the biggest holders include Invesco Ltd, JPMorgan Chase & Co, and Raymond James Financial, Inc.
