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Performance was driven by the strength of a diversified, integrated platform spanning supply, terminals, wholesale, and retail, which balances earnings across different market cycles.
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The Wholesale segment saw higher volumes and double-digit product margin increases, benefiting from investments that expanded terminal capabilities and enhanced network connectivity.
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GDSO results were supported by strong fuel margins that helped offset lower volumes and a reduced station count resulting from ongoing site optimization efforts.
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The Providence terminal acquisition exceeded expectations in its first full year, providing critical storage and marine capabilities that strengthened the Northeastern service footprint.
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Expansion into the Houston bunkering market via a lease at Texas City establishes a growth platform in one of the world’s largest refining hubs.
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Management attributes long-term stability to the ability to capture value across the entire system, from sourcing product to serving retail guests.
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Portfolio optimization involved divesting non-strategic retail locations and converting sites to higher-value formats to improve overall asset quality.
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Early 2026 performance is expected to benefit from a ‘decent tailwind’ in the wholesale rack business due to extreme cold weather and high heating degree days in the Northeast.
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Maintenance CapEx for 2026 is projected between $60.0 million and $70.0 million, reflecting an uptick to support recently acquired terminal assets.
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Expansion CapEx is targeted at $75.0 million to $85.0 million, focusing on terminal throughput logistics and three ‘raze-and-rebuild’ projects in the GDSO segment.
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Strategic focus remains on expanding terminal capabilities and logistics, particularly around assets acquired in the last three years, though timing remains subject to permitting and contracts.
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The company intends to continue its 17-quarter streak of distribution increases, supported by a 1.56x coverage ratio and a strong balance sheet.
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Station operations product margin decreased by $2.2 million, directly linked to a lower company-operated site count following strategic divestments.
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SG&A expenses increased by $1.5 million, primarily driven by investments in labor and software licenses for new data and analytics infrastructure.
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The Houston bunkering expansion is characterized as ‘CapEx-light’ as it utilizes leased barges and terminals rather than owned infrastructure.
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Leverage remains at 3.59x, with management emphasizing ample capacity in credit facilities to fund future opportunistic acquisitions.
