capl-ex991

Allentown, PA August 5, 2019 – CrossAmerica Partners LP (NYSE: CAPL) (“CrossAmerica” or the “Partnership”), a leading wholesale fuels distributor and owner and lessor of real estate used in the retail distribution of motor fuels, today reported financial results for the second quarter ended June 30, 2019.

Gerardo Valencia, CEO and President of CrossAmerica, said, “For the second quarter, our operating income increased by $15 million year-over-year supported by our margin optimization agenda, resulting in one of the historical high wholesale fuel margins per gallon for the partnership. We grew our distributable cash flow by 12% for the same period, leading to our highest quarterly coverage ratio in the last three years at 1.24 times.” Valencia went on to say, “During the second quarter we announced the completion of our first tranche of the asset exchange with our General Partner and a definitive agreement with Applegreen to operate our remaining 46 company operated sites in the Upper Midwest. We expect to announce our second tranche of the asset exchange in the third quarter and are in a good position to continue to grow our business in the second half of 2019.”

Operating income was $13.9 million for the second quarter 2019 compared to a loss of $1.6 million for the second quarter 2018, representing an increase of over $15 million, and Net income was $6.4 million for the second quarter 2019 compared to a Net loss of $6.9 million for the second quarter 2018. EBITDA was $26.4 million for the three-month period ended June 30, 2019 compared to $20.3 million for the same period in 2018, representing a 30% increase. Adjusted EBITDA was $27.7 million for the second quarter 2019 compared to $28.2 million for the same period in 2018, representing a decrease of 2%. The decline in Adjusted EBITDA was primarily as a result of the new lease accounting guidance (ASC 842). Lease payments on the Partnership’s previous sale-leaseback transactions totaling $1.8 million per quarter were characterized as principal and interest expense in periods prior to 2019. However, beginning with the first quarter 2019 this is now characterized as rent expense, thus reducing these non-GAAP measures. Also contributing to the decline was a decrease in gross profit in the Retail segment. Non-GAAP measures, including EBITDA, as described are reconciled to the corresponding GAAP measures in the Supplemental Disclosure section of this release.

During the second quarter 2019, CrossAmerica’s Wholesale segment generated $33.4 million in gross profit compared to $33.5 million in gross profit for the second quarter 2018. The Partnership distributed, on a wholesale basis, 258.6 million gallons of motor fuel at an average wholesale gross profit of $0.074 per gallon, resulting in motor fuel gross profit of $19.0 million. For the three-month period ended June 30, 2018, CrossAmerica distributed, on a wholesale basis, 272.4 million gallons of fuel at an average wholesale gross profit of $0.066 per gallon, resulting in motor fuel gross profit of $17.9 million. The 6% increase in motor fuel gross profit was primarily due to a 12% increase in fuel margin per gallon. The main driver of the increase was a $0.4 million improvement in CrossAmerica’s fuel margin from sites in its Alabama market driven by the rebranding of these sites beginning November 1, 2018 and the concurrent change in terms under a subjobber agreement with Circle K and a $1.0 million improvement in CrossAmerica’s dealer tank wagon (DTW) margins as a result of movements in crude oil prices between the two periods. This was partially offset by a reduction of $0.7 million in Terms Discounts in 2019 as compared to 2018 due to the decrease in motor fuel prices. Volume declined 5% as a result of the 2018 divestitures mandated by FTC orders, the termination or non-renewal of fuel supply contracts (a significant number of which were low margin) and seasonal weather.

The prices paid by the Partnership to its motor fuel suppliers for wholesale motor fuel (which affects the cost of sales) are highly correlated to the price of crude oil. The average daily spot price of West Texas Intermediate crude oil decreased approximately 12% to $59.88 per barrel during the second quarter 2019 as compared to $68.07 per barrel during the same period in 2018.

CrossAmerica’s gross profit from Rent and Other for the Wholesale segment, which primarily consists of rental income, was $14.3 million for the second quarter 2019 compared to $15.5 million for the second quarter 2018, representing a decrease of 8%. The decline in Rent and Other was primarily as a result of the new lease accounting guidance. Lease payments on CrossAmerica’s previous sale-leaseback transactions totaling $1.7 million per quarter were characterized as principal and interest expense in 2018, whereas such payments are characterized as rent expense in 2019. Partially offsetting this decline was the incremental rent margin from the first tranche of the asset exchange with Circle K and the impact of converting commission sites in the Retail segment to lessee dealer sites in the Wholesale segment.

Operating expenses increased $0.4 million or 5% primarily as a result of higher insurance costs.

Adjusted EBITDA for the Wholesale segment was $29.7 million for the second quarter 2019 compared to $30.2 million for the same period in 2018. As discussed above, the year-over-year decrease was primarily driven by the new lease accounting guidance (see Supplemental Disclosure Regarding Non-GAAP Financial Information below).

For the second quarter 2019, the Partnership sold 45.8 million gallons of motor fuel at an average retail motor fuel gross profit of $0.041 per gallon, net of commissions and credit card fees, resulting in motor fuel gross profit of $1.9 million. For the same period in 2018, CrossAmerica sold 54.1 million gallons in its retail segment at an average gross profit of $0.047 per gallon, net of commissions and credit card fees, resulting in motor fuel gross profit of $2.5 million. The decrease in motor fuel gross profit is attributable to a 15% decrease in volume driven by the 2018 divestitures of seven company operated Upper Midwest and two commission agent sites mandated by FTC orders, the conversion of commission sites in the Retail segment to lessee dealer sites in CrossAmerica’s Wholesale segment, the divestiture of 17 company operated Upper Midwest sites in May 2019 in connection with the asset exchange with Circle K and seasonal weather. Partially offsetting these decreases was that the Partnership realized a higher margin per gallon at its company operated sites in 2019 as compared to 2018, driven by the movement in crude oil prices throughout the two periods.

During the quarter, the Partnership generated $4.7 million in gross profit from merchandise and services versus $6.4 million for the same period in 2018. This decrease was driven by the 2018 divestitures of seven company operated Upper Midwest sites mandated by FTC orders and the May 2019 first tranche of the asset exchange with Circle K. Gross profit from Rent and Other for the Retail segment was $1.5 million for the second quarter 2019 compared to $1.6 million for the same period in 2018, reflecting a decrease of 3%. Rent and other gross profit decreased slightly primarily as a result of the new lease accounting guidance. Lease payments on the Partnership’s previous sale-leaseback transactions totaling $0.1 million per quarter were characterized as principal and interest expense in 2018, whereas such payments are characterized as rent expense in 2019.

Operating expenses declined $1.9 million or 21% primarily as a result of the 2018 divestitures of seven company operated Upper Midwest and two commission agent sites mandated by FTC orders, the divestiture of 17 company operated Upper Midwest sites in May 2019 in connection with the asset exchange with Circle K and the conversion of commission sites in CrossAmerica’s Retail segment to lessee dealer sites in the Wholesale segment.

Adjusted EBITDA for the Retail segment was $1.3 million for the second quarter 2019 compared to $1.9 million for the second quarter 2018.

The decline in gross profit and Adjusted EBITDA were primarily due to the 2018 divestitures of seven company operated sites in the Upper Midwest and two commission sites mandated by FTC orders, the divestiture of 17 company operated Upper Midwest sites in May 2019 in connection with the asset exchange with Circle K and the conversion of commission sites in CrossAmerica’s Retail segment to lessee dealer sites in the Wholesale segment. (see Supplemental Disclosure Regarding Non-GAAP Financial Information below).

Distributable Cash Flow was $22.3 million for the three-month period ended June 30, 2019, compared to $20.0 million for the same period in 2018. The increase in Distributable Cash Flow was primarily due to a current tax benefit generated by 100% bonus depreciation taken on the eligible assets acquired in the first tranche of the asset exchange as well as the dispenser upgrades at CrossAmerica’s Alabama sites and the reduction in general and administrative expenses, partially offset by the impact of the FTC divestitures and the new lease accounting guidance. The Distribution Coverage Ratio for the current quarter was 1.24 times. The Distribution Coverage Ratio was 1.06 times for the trailing twelve months ended June 30, 2019, as compared to 0.97 times for the trailing twelve months ended June 30, 2018. Information regarding Distributable Cash Flow and other non-GAAP measures are further described to their most directly comparable GAAP measures in the Supplemental Disclosure Regarding Non-GAAP Financial Measures section of this release.

The amount of availability under the New Credit Agreement at August 1, 2019, after taking into consideration debt covenant restrictions, was $84.5 million.

On July 18, 2019, the Board of the Directors of CrossAmerica’s General Partner (“Board”) declared a quarterly distribution of $0.5250 per limited partner unit attributable to the second quarter of 2019. As previously announced, the distribution will be paid on August 6, 2019 to all unitholders of record as of July 30, 2019. The amount and timing of any future distributions is subject to the discretion of the Board (see Supplemental Disclosure Regarding Non-GAAP Financial Information below).

In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02–Leases (ASC 842). This standard modifies existing guidance for reporting organizations that enter into leases to increase transparency by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance became effective for CrossAmerica on January 1, 2019.

As was noted in CrossAmerica’s 2018 Form 10-K (Annual Report), certain previous sale-leaseback transactions that were accounted for similarly to capital leases were required to be reassessed under the new guidance as part of adopting ASC 842. These leases are accounted for as operating leases under the new guidance, and so the $42.0 million of net property and equipment and $76.1 million of sale-leaseback financing obligations recorded on the balance sheet as of December 31, 2018 were removed as part of the transition adjustment effective January 1, 2019.

Since CrossAmerica is not restating prior periods as part of adopting this guidance, the results in 2019 are not directly comparable to the results for periods before 2019. Specifically, payments on these sale-leaseback obligations were characterized as principal and interest expense in periods prior to 2019. Starting in 2019, these payments are characterized as rent expense and thus reduce gross profit particularly from the wholesale segment, operating income, income before income taxes, and net income relative to the results reported for periods prior to 2019.

The adoption of the new lease standard does not affect the Partnership’s covenant calculations with regard to its Credit Agreement, nor has there been any change in the underlying cash flows related to these leases. The adoption of the new lease standard, if it had been adopted January 1, 2018, would have impacted CrossAmerica’s full year 2018 financial results in the following manner: Adjusted EBITDA would have been lower by approximately $7.2 million, primarily affecting the Wholesale Segment, and Distributable Cash Flow would have been lower by approximately $1.7 million. CrossAmerica anticipates a similar effect on its 2019 financial results. Non-GAAP measures used in this release include Adjusted EBITDA and Distributable Cash Flow, which non-GAAP measures are further described to their most directly comparable GAAP measures in the Supplemental Disclosure Regarding Non-GAAP Financial Measures section of this release.

The Partnership will host a conference call on August 6, 2019 at 9:00 a.m. Eastern Time to discuss second quarter 2019 earnings results. The conference call numbers are 877-420-2982 or 847-619-6129 and the passcode for both is 7118414#. A live audio webcast of the conference call and the related earnings materials, including reconciliations of non-GAAP financial measures to GAAP financial measures and any other applicable disclosures, will be available on that same day on the investor section of the CrossAmerica website (www.crossamericapartners.com). A slide presentation for the conference call will also be available on the investor section of the Partnership’s website. To listen to the audio webcast, go to https://caplp.gcs-web.com/webcasts-presentations. After the live conference call, a replay will be available for a period of thirty days. The replay numbers are 888-843-7419 or 630-652-3042 and the passcode for both is 7118414#. An archive of the webcast will be available on the investor section of the CrossAmerica website at https://caplp.gcs-web.com/webcasts-presentations within 24 hours after the call for a period of sixty days.

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Operating revenues^(a)	$	605,528		$	673,295		$	1,077,314		$	1,227,865
Costs of sales		564,158			629,323			998,867			1,143,942
Gross profit		41,370			43,972			78,447			83,923

Income from CST Fuel Supply equity interests		3,734			3,740			7,160			7,545
Operating expenses:
Operating expenses		14,210			15,691			29,563			32,033
General and administrative expenses		4,109			4,810			8,527			9,530
Depreciation, amortization and accretion expense		12,496			21,932			25,557			37,432
Total operating expenses		30,815			42,433			63,647			78,995
Loss on dispositions and lease terminations, net		(369	)		(6,847	)		(428	)		(6,617	)
Operating income (loss)		13,920			(1,568	)		21,532			5,856
Other income, net		98			89			184			183
Interest expense		(7,236	)		(8,157	)		(14,573	)		(16,209	)
Income (loss) before income taxes		6,782			(9,636	)		7,143			(10,170	)
Income tax expense (benefit)		341			(2,698	)		490			(2,425	)
Net income (loss)		6,441			(6,938	)		6,653			(7,745	)
Less: net loss attributable to noncontrolling interests		—			(3	)		—			(5	)
Net income (loss) attributable to limited partners		6,441			(6,935	)		6,653			(7,740	)
IDR distributions		(133	)		(133	)		(266	)		(1,313	)
Net income (loss) available to limited partners	$	6,308		$	(7,068	)	$	6,387		$	(9,053	)

Basic and diluted income (loss) per limited partner unit	$	0.18		$	(0.21	)	$	0.19		$	(0.26	)

Weighted-average limited partner units:
Basic common units		34,444,180			34,336,386			34,444,147			34,247,232
Diluted common units^(b)		34,461,024			34,346,097			34,461,470			34,257,559

Supplemental information:
(a) Includes excise taxes of:	$	19,906		$	25,450		$	40,350		$	49,808
(a) Includes revenues from fuel sales to and rental income from related parties of:		88,361			124,550			161,988			228,071
(b) Diluted common units were not used in the calculation of diluted earnings per common unit for the three and six months ended June 30, 2018 because to do so would have been antidilutive.

The following table highlights the results of operations and certain operating metrics of the Wholesale segment (thousands of dollars, except for the number of distribution sites and per gallon amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Gross profit:
Motor fuel–third party	$	11,343		$	9,491		$	19,411		$	17,124
Motor fuel–intersegment and related party		7,691			8,447			14,393			15,114
Motor fuel gross profit		19,034			17,938			33,804			32,238
Rent and other^(a)		14,318			15,537			28,528			31,916
Total gross profit		33,352			33,475			62,332			64,154
Income from CST Fuel Supply equity interests^(b)		3,734			3,740			7,160			7,545
Operating expenses		(7,407	)		(7,026	)		(15,525	)		(15,346	)
Adjusted EBITDA^(c)	$	29,679		$	30,189		$	53,967		$	56,353
Motor fuel distribution sites (end of period):^(d)
Motor fuel–third party
Independent dealers^(e)		364			373			364			373
Lessee dealers^(f)		571			452			571			452
Total motor fuel distribution–third party sites		935			825			935			825
Motor fuel–intersegment and related party
DMS (related party)^(g)		73			130			73			130
Circle K (related party)^(h)		37			43			37			43
Commission agents (Retail segment)⁽ⁱ⁾		170			176			170			176
Company operated retail sites (Retail segment)^(j)		46			71			46			71
Total motor fuel distribution–intersegment and related party sites		326			420			326			420
Motor fuel distribution sites (average during the period):
Motor fuel-third party distribution		899			830			881			827
Motor fuel-intersegment and related party distribution		343			421			353			428
Total motor fuel distribution sites		1,242			1,251			1,234			1,255
Volume of gallons distributed (in thousands)
Third party		174,400			169,637			325,797			318,896
Intersegment and related party		84,202			102,763			164,038			203,012
Total volume of gallons distributed		258,602			272,400			489,835			521,908

Wholesale margin per gallon	$	0.074		$	0.066		$	0.069		$	0.062

The following table highlights the results of operations and certain operating metrics of the Retail segment (thousands of dollars, except for the number of retail sites, gallons sold per day and per gallon amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Gross profit:
Motor fuel	$	1,893		$	2,541		$	3,437		$	4,697
Merchandise and services		4,670			6,434			9,581			12,176
Rent and other^(a)		1,539			1,588			2,927			3,061
Total gross profit		8,102			10,563			15,945			19,934
Operating expenses		(6,803	)		(8,665	)		(14,038	)		(16,687	)
Adjusted EBITDA^(b)	$	1,299		$	1,898		$	1,907		$	3,247

Retail sites (end of period):
Commission agents^(c)		170			176			170			176
Company operated retail sites^(d)		46			71			46			71
Total system sites at the end of the period		216			247			216			247

Total system operating statistics:
Average retail fuel sites during the period		225			248			230			249
Motor fuel sales (gallons per site per day)		2,239			2,402			2,148			2,349
Motor fuel gross profit per gallon, net of credit card fees and commissions	$	0.041		$	0.047		$	0.038		$	0.044

Commission agents statistics:
Average retail fuel sites during the period		170			177			171			178
Motor fuel gross profit per gallon, net of credit card fees and commissions	$	0.015		$	0.017		$	0.016		$	0.015

Company operated retail site statistics:
Average retail fuel sites during the period		55			71			59			71
Motor fuel gross profit per gallon, net of credit card fees	$	0.112		$	0.109		$	0.095		$	0.105
Merchandise and services gross profit percentage, net of credit card fees		23.8	%		24.6	%		24.2	%		25.0	%

CrossAmerica uses non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. EBITDA represents net income available to the Partnership before deducting interest expense, income taxes, depreciation, amortization and accretion (which includes certain impairment charges). Adjusted EBITDA represents EBITDA as further adjusted to exclude equity funded expenses related to incentive compensation and the Amended Omnibus Agreement, gains or losses on dispositions and lease terminations, net, certain discrete acquisition related costs, such as legal and other professional fees and separation benefit expenses associated with recently acquired companies, and certain other discrete non-cash items arising from purchase accounting. Distributable Cash Flow represents Adjusted EBITDA less cash interest expense, sustaining capital expenditures and current income tax expense. Distribution Coverage Ratio is computed by dividing Distributable Cash Flow by the weighted average diluted common units and then dividing that result by the distributions paid per limited partner unit.

EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are used as supplemental financial measures by management and by external users of the CrossAmerica financial statements, such as investors and lenders. EBITDA and Adjusted EBITDA are used to assess the financial performance without regard to financing methods, capital structure or income taxes and the ability to incur and service debt and to fund capital expenditures. In addition, Adjusted EBITDA is used to assess the operating performance of the CrossAmerica business on a consistent basis by excluding the impact of items which do not result directly from the wholesale distribution of motor fuel, the leasing of real property, or the day to day operations of the Partnership’s retail site activities. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are also used to assess the ability to generate cash sufficient to make distributions to the Partnership’s unitholders.

CrossAmerica believes the presentation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio provides useful information to investors in assessing the financial condition and results of operations. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio should not be considered alternatives to net income or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio have important limitations as analytical tools because they exclude some but not all items that affect net income. Additionally, because EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may be defined differently by other companies in the industry, the Partnership’s definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

The following table presents reconciliations of EBITDA, Adjusted EBITDA, and Distributable Cash Flow to net income, the most directly comparable U.S. GAAP financial measure, for each of the periods indicated (in thousands, except for per unit amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net income (loss) available to limited partners^(a)	$	6,308		$	(7,068	)	$	6,387		$	(9,053	)
Interest expense^(a)		7,236			8,157			14,573			16,209
Income tax expense (benefit)		341			(2,698	)		490			(2,425	)
Depreciation, amortization and accretion expense		12,496			21,932			25,557			37,432
EBITDA^(a)		26,381			20,323			47,007			42,163
Equity funded expenses related to incentive compensation and the Amended Omnibus Agreement^(b)		124			130			326			3,473
Loss on dispositions and lease terminations, net^(c)		369			6,847			428			6,617
Acquisition-related costs^(d)		847			918			1,405			1,974
Adjusted EBITDA^(a)		27,721			28,218			49,166			54,227
Cash interest expense^(a)		(6,981	)		(7,664	)		(14,028	)		(15,288	)
Sustaining capital expenditures^(e)		(437	)		(637	)		(763	)		(1,427	)
Current income tax benefit (expense)^(f)		2,043			38			1,228			(886	)
Distributable Cash Flow^(a)	$	22,346		$	19,955		$	35,603		$	36,626
Weighted-average diluted common units		34,461			34,346			34,461			34,258
Distributions paid per limited partner unit^(g)	$	0.5250		$	0.5250		$	1.0500		$	1.1525
Distribution Coverage Ratio^(a)(h)	1.24x			1.11x			0.98x			0.93x

The table below shows approximate adjustments to CrossAmerica’s Net income available to limited partners, EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage for the three and six months ended June 30, 2019 as if ASC 842 had not been applied (in thousands, except for per unit amounts).

	Three Months Ended June 30, 2019									Six Months Ended June 30, 2019
	As Reported			Adjustments			As Adjusted			As Reported			Adjustments			As Adjusted
Net income available to limited partners	$	6,308		$	447		$	6,755		$	6,387		$	889		$	7,276
Interest expense		7,236			1,360			8,596			14,573			2,725			17,298
Income tax expense		341			—			341			490			—			490
Depreciation, amortization and accretion expense		12,496			—			12,496			25,557			—			25,557
EBITDA		26,381			1,807			28,188			47,007			3,614			50,621
Equity funded expenses related to incentive compensation and the Amended Omnibus Agreement		124			—			124			326			—			326
Loss on dispositions and lease terminations, net		369			—			369			428			—			428
Acquisition-related costs		847			—			847			1,405			—			1,405
Adjusted EBITDA		27,721			1,807			29,528			49,166			3,614			52,780
Cash interest expense		(6,981	)		(1,360	)		(8,341	)		(14,028	)		(2,725	)		(16,753	)
Sustaining capital expenditures		(437	)		—			(437	)		(763	)		—			(763	)
Current income tax benefit		2,043			—			2,043			1,228			—			1,228
Distributable Cash Flow	$	22,346		$	447		$	22,793		$	35,603		$	889		$	36,492
Weighted-average diluted common units		34,461			34,461			34,461			34,461			34,461			34,461
Distributions paid per limited partner unit	$	0.5250		$	0.5250		$	0.5250		$	1.0500		$	1.0500		$	1.0500
Distribution Coverage Ratio	1.24x			0.02x			1.26x			0.98x			0.02x			1.01x

The following table reconciles the segment Adjusted EBITDA to Consolidated Adjusted EBITDA (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Adjusted EBITDA - Wholesale segment	$	29,679		$	30,189		$	53,967		$	56,353
Adjusted EBITDA - Retail segment		1,299			1,898			1,907			3,247
Adjusted EBITDA - Total segment	$	30,978		$	32,087		$	55,874		$	59,600
Reconciling items:
Elimination of intersegment profit in ending inventory balance		(84	)		(66	)	170				(165	)
General and administrative expenses		(4,109	)		(4,810	)		(8,527	)		(9,530	)
Other income, net		98			89			184			183
Equity funded expenses related to incentive compensation and the Amended Omnibus Agreement		124			130			326			3,473
Acquisition-related costs		847			918			1,405			1,974
Net loss attributable to noncontrolling interests		—			3			—			5
IDR distributions		(133	)		(133	)		(266	)		(1,313	)
Consolidated Adjusted EBITDA	$	27,721		$	28,218		$	49,166		$	54,227

CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is a wholly owned subsidiary of Alimentation Couche-Tard Inc. Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,300 locations and owns or leases nearly 1,000 sites. With a geographic footprint covering 31 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf, Citgo, Marathon and Phillips 66. CrossAmerica Partners LP ranks as one of ExxonMobil’s largest distributors by fuel volume in the United States and in the top 10 for additional brands. For additional information, please visit www.crossamericapartners.com.

Statements contained in this release that state the Partnership’s or management’s expectations or predictions of the future are forward-looking statements. The words “believe,” “expect,” “should,” “intends,” “estimates,” “target” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see CrossAmerica’s Form 10-K or Forms 10-Q filed with the Securities and Exchange Commission, and available on the CrossAmerica’s website at www.crossamericapartners.com. The Partnership undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

Note to Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100%) of CrossAmerica Partners LP’s distributions to non-U.S. investors as attributable to income that is effectively connected with a United States trade or business. Accordingly, CrossAmerica Partners LP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.