CrossAmerica Partners Units Outpacing S&P 500
The war in Iran and ongoing volatility and uncertainty in the Strait of Hormuz continues to put pressure on crude oil. Those high oil prices has resulted in sustained, higher gas prices for consumers.
It’s not as if gas companies are going to eat higher costs. Everything trickles down. At the start of September, the average price of a gallon of gas stood at $4.09 for regular and $4.98 for premium. If you live in the Western part of the country, you’re paying upwards of $5.70 per gallon. It ended up being the most expensive August at the pump, surpassing the record set in August 2022. (Source: “Gas Prices Remain High as August Will Likely Set New Record,” AAA.com, August 27, 2026.)
High gas prices are bad for you and me, but, it’s a boon for companies like CrossAmerica Partners LP (NYSE:CAPL) and its units.
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, September 1, 2026.)
With a geographic footprint that spans 34 U.S. states, CrossAmerica Partners distributes petroleum for motor vehicles to over 1,600 locations. It also own and or leases approximately 900 sites. 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 340 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.”
Another Earnings Beat
Stronger crude oil prices and higher gas prices helped CrossAmerica report another strong quarter, including an earnings beat. Second quarter operating revenue increased 22% on an annual basis to $1.179 billion. (Source: “CrossAmerica Partners LP Reports Second Quarter 2026 Results,” CrossAmerica Partners LP, August 5, 2026.)
Second quarter net income attributable to limited partners came in at $20.1 million, or $0.52 per share. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rallied 39% to $51.8 million.
Distributable cash flow jumped 50% to $33.6 million. The distribution coverage ratio improved to 1.68 times for the quarter and to 1.39 times over the trailing 12 months.
During the second quarter CrossAmerica sold five sites for $2.7 million in proceeds, resulting in a net gain of $1.1 million. CrossAmerica maintained a supply relationship post sale with substantially all of the locations divested during the quarter.
Commenting on the second quarter results, Maura Topper, President and CEO said, “The Partnership continued its strong start to the year, building on our very strong first quarter with another quarter of significant growth in Adjusted EBITDA and Distributable Cash Flow.”
Maintains Quarterly Distribution of $0.5250 Per 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 August, it paid out a second quarter distribution of $0.5250 per share, or $2.10 on an annual basis, for a current forward yield of approximately nine percent. (Source: “CrossAmerica Partners LP Maintains Quarterly Distribution,” CrossAmerica Partners LP, July 21, 2026.)
That distribution is safe too. The company targets a coverage ratio of 1.2x. It’s coverage ratio for the second quarter was 1.68 times.
CAPL Trumping S&P 500
CrossAmerica Partners has a history of reporting solid financial results, has a reliable dividend, and in August, CAPL units hit a record high of $24.63. They have given up some short-term ground to profit trading, but continue to trade near that level at around $23.26.
As of this writing, CAPL units are up:
- 21% year to date
- 23% year over year
For comparison’s sake, over the same time frame, the S&P 500 is up a respectable 12% and 18% respectively.
Chart courtesy of StockCharts.com
The Lowdown on CrossAmerica Partners LP
CrossAmerica Partners LP is an energy partnership with a strong domestic footprint.
It has reported solid financial results all year long, including second quarter increases in adjusted EBITDA, distributable cash flow and distribution coverage.
It’s units are trading at record levels and continue to outpace the broader market, and CrossAmerica continues to provide a reliable high yield dividing.
While every publicly traded company wants to perform well, this is especially true for those companies that have a big insider ownership. And CrossAmerica Partners does; 52.50% of all shares are held by insiders. (Source: “CrossAmerica Partners LP (CAPL),” Yahoo! Finance, last accessed September 2, 2026.)
Meanwhile, institutions hold 23.90% of all outstanding shares. Some of the biggest holders include Invesco Ltd, JP Morgan Chase & Company, and Raymond James Financial, Inc.