APC

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET Chairman, President and Chief Executive Officer - Arie Kotler Chief Financial Officer - Jordan Mann Senior Vice President of Investor Relations - Priya Trivedi Operator: Greetings, and welcome to the ARKO Petroleum Corp. Reports Second Quarter 2026 Results. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Priya Trivedi, Senior Vice President of Investor Relations. Priya, please go ahead. Priya Trivedi: Thank you. Good afternoon, and welcome to ARKO Petroleum Corp.'s Second Quarter 2026 Earnings Conference Call and Webcast. On today's call are Arie Kotler, Chairman, President and Chief Executive Officer; and Jordan Mann, Chief Financial Officer. Our earnings press release and quarterly report on Form 10-Q for the second quarter of 2026 as filed with the SEC are available on our website at www.arkopetroleum.com. During our call today, unless otherwise stated, management will compare results to the same period in 2025. Before we begin, please note that all second quarter 2026 financial information is unaudited. During this call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please review the forward-looking and cautionary statement section at the end of the second quarter 2026 earnings press release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. All forward-looking statements made during this call reflect our current views with respect to the future events, and ARKO Petroleum Corp. is under no obligation to update or revise forward-looking statements made on this call, whether as a result of new information, future events or otherwise, except as required by law. On this call, management will share operating results on both a GAAP and non-GAAP basis. Description of those non-GAAP financial measures that we use, such as adjusted EBITDA, discretionary cash flow, net debt and the ratio of net debt to adjusted EBITDA and reconciliations of these measures to our results as reported in accordance with GAAP are detailed in our earnings press release and our quarterly report on Form 10-Q for the quarter ended June 30, 2026. Additionally, management will share profit measures by individual business segments, along with fuel contribution, which is calculated as fuel revenue less fuel costs and excludes intercompany charges by our GPMP segment. And now I would like to turn the call over to Arie. Arie Kotler: Thank you, Priya, and thank you all for joining us today. Before we begin, I want to welcome Priya Trivedi, who recently joined APC as our new Head of Investor Relations. Many of you will have the opportunity to work with Priya directly, and we are very pleased to have her as part of our team as we continue to broaden our engagement with the investment community. We are excited to report another quarter of strong execution and growing momentum across the platform. The second quarter once again demonstrated the strength, stability and cash-generating power of APC's business model. At the same time, we announced the signing of a purchase agreement to acquire the business of U.S. Petroleum Partners, or USPP, a highly strategic transaction that we believe represents a major step forward in the growth story we laid out to the investors at the time of our IPO. This is exactly why we took APC public. We accessed the public markets to solidify our balance sheet, increase our liquidity and give the company the flexibility to pursue high-quality accretive growth opportunities. Today's announcement shows that we are executing on that strategy. The U.S. Petroleum Partners business is complementary to APC's existing platform and upon closing, will expand our scale, add new infrastructure capabilities and bolster the long-term earnings and cash flow profile of the company. This transaction reinforces every major pillars of APC's investment thesis. It would deepen our supplier relationship, expand our stable fee-based and fixed margin business model, put our post-IPO financial flexibility to work, build on our proven acquisition track record and accelerate our long-term growth outlook. Let me provide some details on the acquisition and the related compelling economics. U.S. Petroleum Partners is a sizable, vertically integrated fuel distribution platform. The acquisition will add approximately 280 million gallons of annual wholesale fuel volume, increasing APC's fuel volumes by about 14% for the 12 months ended June 30, 2026. We believe this additional scale will deepen our relationship with major fuel suppliers, increase throughput and enhance the overall value of our wholesale platform. These gallons are distributed to more than 400 wholesale locations, which would expand our network to more than 2,500 locations and further support APC's position as one of the largest fuel distribution platforms in the country. The acquisition will also include 2 fuel storage terminals along the Buckeye Pipeline system located in Novi, Michigan, and Toledo, Ohio. These are long-lived infrastructure assets that provide meaningful storage capacity across the refined product spectrum, including gasoline, diesel, ethanol and jet fuel. Importantly, this transaction will bring APC into the terminal business, adding a new infrastructure-based fee-generating income stream through third-party storage and throughput activities. It will also give us greater flexibility over fuel logistics and supply while creating multiple additional avenues for future earnings growth. We believe these terminals will enhance the profitability potential of our core fuel distribution business and increase our margin capture through greater vertical integration across the refined product infrastructure value chain. Additionally, the acquisition will include a fleet of trucks and trailers that support the last mile of our fuel logistics infrastructure. This will enhance our current distribution capabilities, provide another source of earnings and further increase the vertical integration of the APC platform. We expect to close the transaction later this year. Following closing, we expect the acquisition to be accretive and to add approximately $30 million of annual adjusted EBITDA while enhancing discretionary cash flow. We also expect synergies to begin in 2027 and see meaningful opportunities for additional operational efficiencies and value creation over time as we integrate the business into APC's platform. Additionally, as we continue to build the APC platform, we plan to work with the USPP team to evaluate opportunities within their existing acquisition pipeline. The consideration at closing will consist of $205 million in cash plus the cost of inventory. Additionally, at closing, APC will issue $30 million in Class A common stock to be held in escrow and to be released to the USPP, subject to the acquired business achieving certain EBITDA-based financial targets in the first 4 full quarters after we close the transaction. This earn-out payment is subject to adjustments if the acquired business does not achieve $31.7 million of EBITDA and $2.2 million of EBITDA generated by certain fuel-related components. EBITDA is defined in the purchase agreement. Also, the earn-out may increase if the acquired business achieves results that are greater than these financial targets. From a capital allocation perspective, this is the type of disciplined strategic acquisition we believe can create meaningful shareholder value. At quarter end, our leverage was 2.2x net debt to adjusted EBITDA, well below our post-IPO target of 2.5x, and we maintain significant liquidity. We intentionally position APC with the financial flexibility to pursue attractive growth opportunities like this one. Upon closing, on an annualized basis, pro forma Net Debt to Adjusted EBITDA is expected to be in the range of 3x to 3.5x, which remains within our previously communicated leverage range of 3x to 4x and reflects our continued discipline around capital allocation. In summary, this potential acquisition directly supports the investment thesis we presented to the market at the time of our IPO. We believe that it will expand our predominantly fee-based and fixed-margin earnings profile, enhance our cash flow generation capabilities, support our dividend philosophy and solidify APC's long-term growth platform. With a strong balance sheet, a proven management team and deep pipeline of opportunities, we believe APC is very well positioned to continue scaling the business and creating long-term value for shareholders through disciplined accretive growth. Now let's turn to the second quarter results. APC delivered another strong quarter with a year-over-year adjusted EBITDA growth of approximately 4% and discretionary cash flow growth of approximately 12%. These results demonstrate the durability of our platform, the strength of our cash flow generation and our team's ability to execute effectively through a volatile fuel price environment. In our Wholesale segment, blended cents per gallon margin increased year-over-year, primarily benefiting from higher prompt pay discount on the higher cost of fuel. Our fleet fueling segment's operating income was relatively flat this quarter compared to prior year. As planned, we continue to invest in this segment to add on what is one of the largest cardlock platforms in the country. We have identified 20 new cardlock locations for opening in 2026, of which we have opened 3 new locations thus far, and the remaining 17 are in various stages of development. We expect to continue adding to this segment as we like the low capital investment and mid- to high teens expected returns per location. As announced this morning, we have declared a quarterly dividend of $0.50 per share, consistent with our annual target dividend rate of $2 per share. We continue to believe APC's combination of stable cash flow generation, disciplined capital allocation and attractive dividend profile differentiate us within the sector. With that, I will turn it over to Jordan to walk through our financial results and outlook. Jordan Mann: Thank you, Arie. I also would like to thank you all for joining. As Arie mentioned, we delivered strong second quarter results while also announcing the signing of the USPP acquisition agreement this morning as that transaction will enable us to continue to scale this platform. Together, these milestones highlight the strength of the platform we have built and the opportunity we see to continue scaling APC in a disciplined, accretive and shareholder-focused way. Turning to our second quarter results. Net income was $12.2 million for the quarter, up from $10 million in the prior year period, reflecting continued operating discipline and earnings power of our platform. Adjusted EBITDA was $39.8 million for the quarter compared to $38.3 million for the prior year, an increase of approximately 4%. Just as importantly, discretionary cash flow grew approximately 12%, underscoring the strength of our cash conversion and quality of APC's earnings. Turning to our Wholesale segment. Wholesale fuel contribution increased 3.7% to $26.3 million in the quarter compared to $25.4 million in Q2 of 2025. Fuel contribution dollars increased despite a 4.6% decline in wholesale gallons to 240.8 million gallons due to incremental dealer locations resulting from ARKO Corp.'s ongoing dealerization program. As Arie mentioned, the blended fuel margin was approximately $0.109 per gallon in Q2 compared to $0.101 per gallon in the prior year, primarily benefiting from higher prompt pay discounts on the higher cost of fuel, reflecting market dynamics tied to higher retail fuel prices. Moving to our fleet fueling segment. Fleet fueling fuel contribution was $17.1 million, a slight decrease for the quarter compared to $17.8 million last year. Fleet fueling gallons were slightly up at 36.4 million gallons compared to 36.3 million gallons last year. The blended margin was $0.469 per gallon, down approximately $0.02 from the prior year period as this year's margins reflect a more normalized margin rate. We also experienced some fuel margin compression during the quarter as index prices that we charge our customers declined more quickly than the cost of our weighted average inventory. Even with that dynamic, contribution remained healthy, reinforcing the durable earnings profile of this segment. We continue to invest in additional new cardlock locations as we like the low capital investment and mid- to high teens expected returns per location. Moving to our GPMP segment. GPMP fuel contribution from related party locations, that is ARKO retail sites, was $11.5 million for the quarter compared to $11.3 million last year. GPMP related party gallons totaled 191.4 million gallons compared to 225.3 million gallons in the prior year, which was primarily driven by the shift of gallons from ARKO retail sites to wholesale through our active conversion of ARKO retail sites to dealer locations. Discretionary cash flow for the quarter was approximately $27.1 million, up from approximately $24.2 million in the prior year. Net cash provided by operating activities for the quarter was approximately $10.4 million as compared to $23.2 million in the prior period, primarily due to the increase in working capital resulting from the increase in the cost of fuel. Looking at the balance sheet. We believe that our balance sheet remains a strategic advantage and gives us meaningful financial flexibility with approximately $710 million in availability under our credit lines. Our IPO strengthened our balance sheet and positioned APC to pursue disciplined growth while continuing to support shareholder returns. As of quarter end, our total debt net was $184.7 million, and our Net Debt was $324.2 million. Our leverage ratio of Net Debt to Adjusted EBITDA was approximately 2.2x. Total debt net to net income was 4.8x. Following the USPP acquisition, we expect our pro forma Net Debt to Adjusted EBITDA on an annualized basis to be in the range of 3x to 3.5x, which remains comfortably within our communicated targeted leverage range of 3x to 4x and reflects our disciplined approach to capital allocation. Importantly, we expect that APC's strong conversion of adjusted EBITDA to Discretionary Cash Flow will support our dividend, fund growth and drive long-term shareholder returns. Turning to 2026 guidance. As the team continues to execute through 2026, we are pleased with our first half results, which further demonstrate the stability, consistency and cash flow generation of our platform. We believe these results reinforce the core attributes investors should expect from APC, disciplined execution, visible cash generation and a clear path to long-term growth. As Arie mentioned, we currently expect to close the U.S. Petroleum Partners acquisition later in the year. Based on our current expectations, the transaction is anticipated to contribute to our 2026 results in a manner that is generally consistent with the planning assumptions embedded in our guidance. As a result, we are maintaining our previously issued full year guidance and continue to expect full year adjusted EBITDA of approximately $156 million and discretionary cash flow of approximately $110 million. We remain confident in the stability of the platform, the strength of our cash flow generation and our ability to deliver consistent earnings growth and attractive shareholder returns over the long term. With that, I'll hand the call back to the operator to begin Q&A. Operator: [Operator Instructions] Our first question comes from the line of Josh Silverstein with UBS. Joshua Silverstein: Great to see the acquisition come through and good use of the balance sheet here. I was hoping you could talk a little bit more about the synergies that USPP brings to the ARKO footprint and how you guys might be able to benefit and kind of integrate the transport and terminal infrastructure offerings that they have? Arie Kotler: Sure. Good question. So first of all, the USPP business is a complementary business to our business. We have -- as you can imagine, we have major relationships with the major oil companies. And while we have major relationships with major oil companies, they have 280 million gallons. We have over 2 billion gallons over here. So my point is that everything that we're buying over here, which is adding another 400 dealers to basically to our platform, increasing our -- basically our business to 2,500 dealers is absolutely complementary. Those guys also have a fleet of trucks that are actually delivering fuel to some of their dealers, approximately 80% of their business. So all of those things are just complementary to the business that we are in right now. So -- and in addition to that, of course, the terminal, as you can imagine, we are pulling product to our dealers from some different terminals, and that will be an opportunity for us to basically pull product for our own dealers from a terminal that now we basically own and control. Joshua Silverstein: Got it. And then how should we think about the CapEx needs versus the $30 million of EBITDA that you forecast? I'm trying to get a sense of the free cash flow generation from this and then how you plan to allocate those funds. Does it go to the balance sheet and delever? Or is this the support for more dividends? Arie Kotler: Sure. You mentioned CapEx. So just for your benefit, this is a very low CapEx business. The terminal business is really a storage unit out there. So that's not required basically a lot of CapEx, very minimal CapEx in this business. And with respect to the rest of basically the opportunities that we are going to pursue, we're just going to continue to use our balance sheet and at the same time, continue to be very, very disciplined and very careful in terms of leverage. Operator: The next question comes from the line of Gabe Moreen with Mizuho Securities. Gabriel Moreen: Congrats on the transaction. I wanted to ask just in terms of contract length here, also sort of the margin determination cost plus, is it a mix here and how it may compare to APC's base volumes? Arie Kotler: Yes. Gabe, very similar business. They have 400 accounts. The majority of those accounts are on fixed fee, similar to 85% of our business, which is also basically a fixed fee of cost plus. And that's -- like I said, that's the majority of their business over here, and that's the majority of the EBITDA over here. Gabriel Moreen: Great. And then if I think about kind of the $30 million in EBITDA that you disclosed in the press release versus the EBITDA you'd need to hit for the earn-out -- the sellers would need to hit for the earn-out provision. Can you just talk about, Arie, maybe what's your baseline EBITDA here? Is that earn-out provision a stretch goal? What could get you there? I'm just curious kind of how to reconcile those 2 numbers in the release. Arie Kotler: Yes. No, the $30 million is the expected EBITDA for the business, for the current business right now that we're buying. This is on an annualized basis. There is a few components over here that can just increase EBITDA above the $30 million. And that's why we put $30 million of Class A common stock in escrow for the next 12 months for the benefit of them basically achieving some of those goals in order to basically release those shares to them. And I'm very confident that they're going to do their best, of course, to get there, and I'm very confident that they're going to do so. But like I said, the base business that you need to take into account, Gabe, is the $30 million -- expected $30 million adjusted EBITDA and anything above that, it would be great. Operator: The next question comes from the line of Selman Akyol with Stifel. Selman Akyol: Congrats on the deal. Let me just ask this. You're acquiring some assets that historically you haven't had in terms of your footprint. And I'm thinking in particular the terminals and the trucks. And so as you look forward, would you be wanting to add more assets into sort of the business model? Or is this something we should expect to just be sort of unique to this acquisition and going forward, future acquisitions will probably be more along the asset-light line? Arie Kotler: Sure, sure, sure. So let me just maybe provide a couple of corrections, if you don't mind, Selman. First of all, we are in the Great Lakes market. So we have a lot of dealer accounts in this part of the country. So that's absolutely complementary. We're adding another 400 to a large count of dealer account that we have in this part of the country. With respect to transportation, just for your benefit, we currently have around 80 trucks already. Most of them are in the Carolina. So we are in running basically transportation. The unique thing about this business is that the concentration of the dealer business that we're buying over here are mainly in the Great Lakes location. And given that there is a concentration of dealer business over there, it's great to have the trucks that basically supply fuel to 80% of those dealers. So you're trying to capture every penny that you can capture over here. And like I said earlier, this is -- each one of those components is complementary. The same thing goes to the terminal. Those are 2 terminals. But if you think about the terminals, I always call it simple, but it is a simple business. It's basically a storage unit. We don't own the 97% of the product in the terminal, basically owned by the major oil companies, and we are just collecting a fee for storage. So it's just basically another piece to add over here that is absolutely complementary for our business. And now like I said, instead of buying products from the major oil companies and going to different terminals, when we have a terminal and we can pull our own products from a terminal that we collect a fee from the major oil company will be absolutely basically complementary for us and we will expand our participation across the fuel value chain over here. Operator: Ladies and gentlemen, this concludes the question-and-answer session. And I'd like to turn the call back over to Arie Kotler for closing remarks. Arie Kotler: Thank you. Before we conclude, I would like to thank our dedicated employees whose hard work and commitment enabled us to deliver another strong quarter while bringing strategic acquisition to signing. It is their daily execution, focus on our customers and commitment to operational excellence that continues to drive APC forward and position us for the next phase of growth. I'd also like to thank our shareholders for their continued support and confidence in our strategy. As demonstrated by today's announcement, we are executing on the commitment we made at the time of our IPO, maintaining a disciplined balance sheet, pursuing accretive growth opportunities, expanding our platform and building a business designed to generate durable cash flow, support our dividend philosophy and create long-term shareholder value. With strong foundation, significant financial flexibility and the expected addition of USPP business, we believe APC is entering an exciting new phase of growth. Thank you again for joining us today. We hope you enjoy your summer, and we look forward to updating you on our progress next quarter. Operator: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. APC Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

ARKO Corp. ARKO entered its Q2 2026 call with a split message: retail demand softened as elevated fuel prices pressured consumers, but management kept full-year adjusted EBITDA guidance intact and raised its retail fuel-margin outlook. The planned U.S. Petroleum Partners acquisition also dominated the discussion, giving ARKO Petroleum Corp. a larger fee-based platform while management leaned on margins, dealerization and loyalty to navigate softer retail demand. Chairman, president and chief executive officer Arie Kotler said first-half adjusted EBITDA rose 14% to $123 million, supporting confidence in the full-year outlook despite weaker retail demand in June. Chief financial officer Gallagher Jeff reaffirmed 2026 adjusted EBITDA guidance of $245 million to $265 million. ARKO also raised its expected average annual retail fuel margin to 45.5 cents to 47.5 cents per gallon, with higher margins expected to offset lower volumes. Revenues of $2.35 billion topped the Zacks Consensus Estimate of $1.99 billion, while EPS of $0.04 missed the consensus estimate of $0.15. ARKO Corp. price-consensus-eps-surprise-chart | ARKO Corp. Quote Kotler said sustained higher fuel prices pressured household budgets and reduced gallons sold and in-store spending. Same-store merchandise sales excluding cigarettes fell 0.9%, while same-store fuel gallons declined 5.7%. Merchandise margin still expanded 110 basis points to 34.7%. Same-store fuel margin increased to 48.7 cents per gallon from 45.7 cents, allowing same-store fuel contribution to edge higher. In Q&A, a Jefferies analyst asked whether demand improved as fuel prices eased. Kotler said July showed some rebound after June, while emphasizing continued fuel-price and consumer volatility. Kotler described the pending USPP transaction as a strategic step for ARKO Petroleum. The deal is expected to add roughly 280 million gallons of annual volume, more than 400 dealer locations and about $30 million of annualized adjusted EBITDA. The transaction also brings two fuel terminals and transportation capabilities. Kotler said the added scale should strengthen supplier economics, expand participation across the fuel value chain and create more fee-based earnings opportunities. A Raymond James analyst asked about benefits to ARKO's broader network. Kotler said greater purchasing scale and terminal throughput should support better fuel economics across retail and wholesale operations. Kotler said loyalty remains central to ARKO's response to consumer pressure. Fueling America's Future has delivered more than $4 million in fuel savings, while the company added more than 100,000 loyalty members during the quarter. Management also highlighted remodels and food service. Completed remodels generated double-digit merchandise sales and gallon growth versus pre-remodel levels, and Kotler said returns on recently opened new-to-industry stores were approaching 20%. Dealerization continued with 21 retail stores converted during Q2, bringing the total to 471. In Q&A, Kotler said about 70 additional locations were committed or in process, putting the program on track to exceed 500 conversions. Gallagher Jeff said ARKO remains focused on remodels, new stores, cardlocks and food service. The company also repurchased about $37.9 million of senior-note principal during the quarter at a discount. ARKO ended June with approximately $1.0 billion of liquidity, including about $246 million of cash and cash equivalents. After quarter-end, it increased PNC credit-line capacity by $74 million. A BofA Securities analyst asked how debt repurchases compete with other uses of capital. Jeff said ARKO will balance opportunistic debt retirement with growth investments while preserving financial flexibility. Management's posture centered on protecting margins, improving retail productivity and using APC as a separate growth platform. Kotler continued to frame dealerization and loyalty as tools for producing a more capital-efficient business. Jeff was cautious about the second half. In response to a Raymond James question, he said fuel and customer volatility created enough uncertainty that management did not raise guidance despite first-half adjusted EBITDA growth. ARKO carries a Zacks Rank #3 (Hold). Its Value, Momentum and VGM Score is A each, while its Growth Score is C. Under the Zacks framework, A is the strongest Style Score grade, and VGM combines value, growth and momentum characteristics. Zacks emphasizes that Style Scores work best alongside Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks, while Rank #3 stocks can still be held under the framework. ARKO's scores show stronger value and momentum attributes than growth, but the Zacks Rank can change as estimates are revised after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ARKO Corp. (ARKO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Signs Agreement to Acquire a Vertically Integrated Fuel Supply and Distribution Platform RICHMOND, Va., Aug. 06, 2026 (GLOBE NEWSWIRE) -- ARKO Petroleum Corp. (Nasdaq: APC) (“APC” or the “Company”), one of the largest wholesale fuel distributors in the United States, today announced financial results for the second quarter ended June 30, 2026 and reaffirms full-year financial 2026 guidance. Second Quarter 2026 Key Highlights (vs. Year-Ago Period) 1,2 Net income for the quarter increased to $12.2 million compared to $10.0 million. Adjusted EBITDA for the quarter increased to $39.8 million compared to $38.3 million. Net cash provided by operating activities for the quarter was $10.4 million compared to $23.2 million. Discretionary Cash Flow for the quarter was $27.1 million compared to $24.2 million. Total debt, net was $184.7 million and Net Debt was $324.2 million, in each case, as of June 30, 2026. Strategic Acquisition Announcement Today announced entering into an agreement to acquire the business of U.S. Petroleum Partners, LLC ("USPP"), a vertically integrated fuel supply and distribution platform serving customers throughout Great Lakes region. The strategic transaction would meaningfully expand APC’s platform and accelerate the growth strategy outlined at the time of its initial public offering. The acquisition is expected to increase the Company's annual fuel volumes by approximately 280 million gallons, or approximately 14% on a trailing twelve-months basis, by adding more than 400 dealer locations and meaningfully enhance the Company's commercial and operational scale. The acquisition is expected to be accretive and add approximately $30 million of annual Adjusted EBITDA and enhance Discretionary Cash Flow, further strengthening the Company's earnings diversification and cash generation capability. The acquisition is expected to strengthen supplier relationships, enhance vertical integration and expand fee based earnings streams through the addition of two fuel terminals and expanded transportation capabilities. These assets are expected to create additional opportunities for future earnings growth through increased throughput, operational synergies and future acquisition opportunities. The consideration at closing will consist of approximately $205 million in cash plus the cost of inventory. Additionally, at closing the Company will issue $30 million in APC Class A common stock that will be held in escrow and released to the seller subject to the acquired business achieving certain EBITDA-based financial targets of the acquired business in the first four full quarters after closing. Additional details regarding the transaction, including the strategic and financial highlights, can be found in a separate press release and investor presentation issued by the Company today and available on the Investor Relations section of the Company's website at www.arkopetroleum.com. 1 See Use of Non-GAAP Measures below.2 All figures for fuel costs, fuel contribution and fuel margin per gallon (other than related party) exclude the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel. Other Key Highlights As part of the ongoing transformation plan of the Company's controlling stockholder, ARKO Corp. (Nasdaq: ARKO) ("ARKO Parent"), 21 ARKO retail convenience stores that sell fuel ("ARKO Retail Sites") were converted to dealer locations in the Company's wholesale segment during the second quarter of 2026, bringing total conversions since program inception in 2024 to 471 sites. ARKO Parent has approximately 70 additional sites committed either under letter of intent, under contract or already converted since quarter end. The Company expects to complete these conversions, along with additional conversions, throughout 2026 and into 2027. The Company is targeting opening 20 new fleet fueling locations in 2026, of which one opened in March 2026, two opened in July 2026, and 17 are in process, reflecting the attractive, durable cash flow profile of its fleet fueling business. The Board of Directors declared a quarterly dividend of $0.50 per share of common stock to be paid on August 28, 2026 to stockholders of record as of August 18, 2026, which is consistent with an expected annual dividend rate of $2.00 per share. "APC delivered another quarter of strong execution, highlighted by growth in Adjusted EBITDA and Discretionary Cash Flow," said Arie Kotler, Chairman, President and Chief Executive Officer of APC. "We saw growth in operating income across all three of our segments, which we believe underscores the resilience of our platform, enabling us to perform even during volatile market conditions. Our strong first-half results reinforce our confidence in the stability of our cash flow generation, and we believe that we remain well positioned to deliver on our full-year guidance." Mr. Kotler continued "We also announced that we agreed to acquire the business of U.S. Petroleum Partners, which represents an important milestone in our growth story. We intentionally positioned APC with a strong balance sheet, significant liquidity and financial flexibility at the time of our IPO so we could pursue accretive and highly strategic opportunities like this one. This transaction is expected to expand our predominantly fee-based and fixed-margin earnings profile, enhance our cash flow generation capabilities and strengthen our ability to create long-term value for shareholders. Combined with our continued organic growth initiatives and disciplined capital allocation strategy, we believe APC is entering an exciting new phase of growth." Second Quarter 2026 Segment Highlights Wholesale Segment For the second quarter of 2026, wholesale operating income increased by $1.6 million compared to the second quarter of 2025 as a result of additional operating income from ARKO Retail Sites converted to dealer locations, which was partially offset by reduced operating income at comparable wholesale sites. For the second quarter of 2026, fuel contribution increased by $0.9 million compared to the second quarter of 2025. Fuel contribution for the second quarter of 2026 at fuel supply locations increased by $2.0 million due to incremental contribution from ARKO Retail Sites converted to dealer locations. Fuel margin per gallon at fuel supply locations increased 1.3 cents per gallon compared to the second quarter of 2025, primarily as a result of increased prompt pay discounts related to higher fuel costs. Fuel contribution for the second quarter of 2026 at consignment agent locations decreased $1.1 million due to reduced fuel contribution at comparable wholesale sites, which was partially offset by $0.5 million of incremental contribution from ARKO Retail Sites converted to dealer locations. Fuel margin per gallon at consignment agent locations decreased 1.5 cents per gallon compared to the second quarter of 2025, primarily due to margin compression during the second quarter of 2026, as market prices declined more quickly than the Company's weighted average inventory cost. For the second quarter of 2026, other revenues, net increased by $4.5 million, and site operating expenses increased by $4.2 million, in each case as compared to the second quarter of 2025, resulting primarily from ARKO Retail Sites converted to dealer locations. Fleet Fueling Segment For the second quarter of 2026, fuel contribution decreased by $0.7 million compared to the second quarter of 2025. At proprietary cardlocks, fuel contribution decreased by $0.3 million, and fuel margin per gallon also decreased for the second quarter of 2026 compared to the second quarter of 2025. At third-party cardlock locations, fuel contribution decreased $0.4 million, and fuel margin per gallon decreased for the second quarter of 2026 compared to the second quarter of 2025. These decreases were primarily due to higher than average fuel margins in the prior year, as well as margin compression during the second quarter of 2026, as indexed prices declined more quickly than the weighted average inventory cost. GPMP Segment For the second quarter of 2026, fuel revenue – related party increased by $111.9 million, or 18.5%, compared to the second quarter of 2025, resulting primarily from an increase in the average price of fuel in the second quarter of 2026 compared to the second quarter of 2025, which was partially offset by a 33.9 million, or 15.1%, decrease in gallons sold, reflecting the challenging macroeconomic environment as well as ARKO Retail Sites converted to dealer locations. Fuel contribution – related party increased by $0.2 million for the second quarter of 2026 compared to the second quarter of 2025, primarily due to an increase in the fixed margin from 5.0 cents per gallon sold for the second quarter of 2025 to 6.0 cents per gallon sold for the second quarter of 2026, partially offset by fewer gallons sold to ARKO Retail Sites. Liquidity and Capital Expenditures As of June 30, 2026, the Company’s total liquidity was approximately $724 million, consisting of approximately $15 million of cash and cash equivalents and approximately $709 million of availability under the Company's lines of credit. Total debt, net was approximately $184.7 million, resulting in Net Debt (as defined below) of approximately $324.2 million. For the quarter ended June 30, 2026, maintenance capital expenditures were $2.7 million and growth capital expenditures were $7.1 million, including the investments in new fleet fueling locations, purchase of fuel dispensers and other investments in the Company's sites. Quarterly Dividend The Company’s ability to return cash to its stockholders through its cash dividend program is consistent with its capital allocation framework and reflects the Company’s confidence in the strength of its cash generation ability and strong financial position. The Board declared a quarterly dividend of $0.50 per share of common stock to be paid on August 28, 2026 to stockholders of record as of August 18, 2026. This dividend is consistent with an expected annual dividend rate of $2.00 per share. Segment Update The following tables present certain information regarding changes in the wholesale, fleet fueling and GPMP segments for the periods presented: Full Year 2026 Guidance The Company is reaffirming its guidance disclosed in March 2026, and currently expects full year 2026 Adjusted EBITDA and Discretionary Cash Flow to be approximately $156 million and approximately $110 million, respectively. The Company is not currently providing reconciliations of Adjusted EBITDA to net income or Discretionary Cash Flow to net cash provided by operating activities for the year ending December 31, 2026 due to the unavailability of certain required inputs for providing forecasts of such GAAP measures, and the related reconciliations, that are not available without unreasonable efforts, including depreciation and amortization related to the Company's capital allocation as part of the Company's focus on strategic and organic growth, as well as inputs related to working capital adjustments. Conference Call and Webcast Details The Company will host a conference call today, August 6, 2026, to discuss these results at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 877-407-8306 or 201-689-8481. A simultaneous, live webcast will also be available on the Investor Relations section of the Company’s website at https://www.arkopetroleum.com/news-events/ir-calendar. The webcast will be archived for 30 days. About ARKO Petroleum Corp. ARKO Petroleum Corp. (Nasdaq: APC) is a growth-oriented, fuel distribution company and one of the largest wholesale fuel distributors by gallons in North America, supplying approximately 2 billion gallons of fuel annually to customers in approximately 3,500 locations in the District of Columbia and more than 30 states across the Mid-Atlantic, Midwestern, Northeastern, Southeastern, and Southwestern United States. We are engaged in (i) wholesale activity, which includes the supply of fuel to gas stations operated by third-party dealers, (ii) fleet fueling, which includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations) and the issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites, and (iii) the wholesale distribution of fuel to substantially all of the retail convenience stores that sell fuel operated by ARKO Corp., our parent company (Nasdaq: ARKO), one of the largest operators of convenience stores in the United States. To learn more about APC, visit: www.arkopetroleum.com. Forward-Looking Statements This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as “accretive,” “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company’s ability to successfully integrate business that it may acquire, including the business of USPP; the Company’s ability to achieve the benefits that it expects to realize as a result of its acquisitions, including the business of USPP; the potential negative impact on the Company’s financial condition and results of operations if it fails to achieve the benefits that it expects to realize as a result of its business acquisitions, including the business of USPP; liabilities of the businesses that the Company acquires that are not known to the Company; the Company’s ability to maintain the listing of its Class A common stock on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; the success of ARKO's transformation plan and its effect on the Company, including the dealerization of retail stores; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law. Use of Non-GAAP Measures The Company discloses certain measures on a “comparable wholesale sites” basis, which is a non-GAAP measure. Information disclosed on a “comparable wholesale sites” basis excludes wholesale sites added through ARKO Retail Sites converted to dealer locations until the first quarter in which these sites had a full quarter of wholesale activity in the prior year. The Company believes that this information is useful for its investors, securities analysts, and other interested parties by providing greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges. Both EBITDA and Adjusted EBITDA are non-GAAP financial measures. The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believe these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance. The Company defines Net Debt as the sum of total debt, net, financing leases and financial liabilities, less cash and cash equivalents. Net Debt is used by management to measure the effective level of our indebtedness. The Company defines the Ratio of Net Debt to Adjusted EBITDA as the ratio derived by dividing Net Debt by Adjusted EBITDA. The Ratio of Net Debt to Adjusted EBITDA is an important measure used by management to evaluate the Company's access to liquidity, and the Company believes it provides useful information for investors as a representation of its financial strength by presenting the sustainability of its debt levels and its ability to take on additional debt against Adjusted EBITDA, which is used as an operating performance measure. The Ratio of Net Debt to Adjusted EBITDA is also frequently used by investors and credit rating agencies to analyze the Company's operating performance. The Company defines Discretionary Cash Flow as net cash provided by operating activities, (i) less changes in operating assets and liabilities, maintenance capital expenditures, charges to allowance for credit losses, and non-cash rent expense, and (ii) plus acquisition costs, amortization of deferred income net of prepaid to related party, and certain other expenses (income). Discretionary Cash Flow will not reflect changes in working capital balances. Discretionary Cash Flow is a liquidity measure the Company and third parties, such as industry analysts, investors, lenders, rating agencies and others, use to assess its ability to internally fund its acquisitions, pay dividends, and service or incur additional debt. The Company believes that the presentation of Discretionary Cash Flow provides useful information to investors, securities analysts, and other interested parties for evaluating its liquidity. EBITDA, Adjusted EBITDA, Net Debt, the Ratio of Net Debt to Adjusted EBITDA and Discretionary Cash Flow should not be considered as alternatives to any financial measure presented in accordance with GAAP, including net income and net cash provided by operating activities. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation, or as substitutes for the analysis of its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, comparable wholesale sites, EBITDA, Adjusted EBITDA, Net Debt, the Ratio of Net Debt to Adjusted EBITDA and Discretionary Cash Flow, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company’s use of these non-GAAP financial measures with those used by other companies. Reconciliations of forward looking non-GAAP measures related to the business of USPP following its acquisition included in this press release to the corresponding GAAP financial measures are not included due to variability and difficulty in making accurate forecasts and projections, particularly in light of potential changes in USPP’s business following its acquisition, as well as, because certain information is not currently ascertainable or accessible, and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information, nor can the Company accurately predict all the components of the applicable non-GAAP financial measures and reconciling adjustments thereto; accordingly, the corresponding GAAP measures may be materially different than the non-GAAP measures. Such forward-looking information is also subject to uncertainty and various risks, including those set forth in the risk factors discussed above, and there can be no assurance that any forecasted results or conditions will actually be achieved. Company and Investor ContactPriya TrivediARKO Petroleum [email protected] Supplemental Disclosure of Non-GAAP Financial Information Supplemental Disclosures of Segment Information Wholesale Segment Fleet Fueling Segment GPMP Segment

Interested in Anadarko Petroleum Co.? Here are five stocks we like better. Second-quarter performance improved: Net income rose to $12.2 million, adjusted EBITDA increased 4% to $39.8 million, and Discretionary Cash Flow grew 12% to $27.1 million. The company maintained its $0.50 quarterly dividend. USPP acquisition planned for later in 2026: The $205 million cash-and-stock transaction would add roughly 280 million gallons of annual wholesale volume, more than 400 locations, two fuel terminals, and delivery assets. Management expects approximately $30 million in annual adjusted EBITDA and integration synergies beginning in 2027. Full-year guidance was reaffirmed: The company continues to target approximately $156 million of adjusted EBITDA and $110 million of Discretionary Cash Flow for 2026. Pro forma leverage after the acquisition is expected to be 3 to 3.5 times net debt to adjusted EBITDA. ARKO Petroleum Corp. reported higher second-quarter earnings and cash flow, while outlining an agreement to acquire U.S. Petroleum Partners, a transaction management said would expand its wholesale distribution network, add terminal and transportation assets, and contribute approximately $30 million of annual adjusted EBITDA after closing. Chairman, President and Chief Executive Officer Arie Kotler said the company expects the acquisition to close later in 2026. The consideration includes $205 million in cash plus the cost of inventory, along with $30 million in Class A common stock held in escrow. The escrowed shares are tied to EBITDA-based performance targets during the first four full quarters following the transaction's closing. → 3 Drone Stocks That Should Soar After the Summer Slump Chief Financial Officer Jordan Mann said net income rose to $12.2 million in the second quarter from $10 million a year earlier. Adjusted EBITDA increased about 4% to $39.8 million, compared with $38.3 million in the prior-year quarter. Discretionary Cash Flow increased approximately 12% to $27.1 million, from $24.2 million a year earlier. Net cash provided by operating activities, however, declined to about $10.4 million from $23.2 million, which Mann attributed primarily to higher working capital resulting from an increase in fuel costs. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company declared a quarterly dividend of $0.50 per share, consistent with its stated annual dividend target of $2 per share. Wholesale fuel contribution increased 3.7% to $26.3 million. Wholesale gallons declined 4.6% to 240.8 million gallons. Wholesale blended fuel margin rose to approximately $0.109 per gallon, from $0.101 per gallon a year earlier. Fleet fueling contribution declined to $17.1 million from $17.8 million, while gallons increased slightly to 36.4 million. GPMP fuel contribution from related-party ARKO retail locations increased to $11.5 million from $11.3 million. Mann said wholesale contribution increased despite the decline in gallons because of incremental dealer locations from the company’s dealerization program. He said the wholesale margin benefited from higher prompt-pay discounts associated with higher fuel costs and retail fuel prices. → Jersey Mike's Serves Fresh Gains After IPO Stumble In fleet fueling, the blended margin declined by about $0.02 per gallon to $0.469. Mann said margins reflected a more normalized rate and were also affected by fuel margin compression, as customer index prices declined more quickly than the cost of the company’s weighted-average inventory. Kotler said U.S. Petroleum Partners is a vertically integrated fuel distribution platform that would add about 280 million gallons of annual wholesale fuel volume. That would represent an approximately 14% increase in ARKO Petroleum’s fuel volume for the 12 months ended June 30, 2026, according to management. The business distributes fuel to more than 400 wholesale locations. Following a closing, ARKO Petroleum said its network would exceed 2,500 locations. The transaction also includes two fuel storage terminals on the Buckeye Pipeline system, located in Novi, Michigan, and Toledo, Ohio. The terminals handle refined products including gasoline, diesel, ethanol and jet fuel. Kotler said the assets would introduce the company to a terminal business that generates fees from third-party storage and throughput activities, while also providing more flexibility in fuel logistics and supply. The acquired business also includes trucks and trailers serving last-mile fuel delivery. Kotler said the company already operates approximately 80 trucks, primarily in the Carolinas, and that the USPP fleet would be particularly complementary because its dealer network is concentrated in the Great Lakes region. Management said the acquired business is expected to be low capital expenditure intensity. Kotler described the terminals as storage assets, saying the company does not own approximately 97% of the product stored there and instead collects storage fees from major oil companies. ARKO Petroleum expects the acquisition to be accretive after closing and to enhance Discretionary Cash Flow. The company expects integration synergies to begin in 2027 and said it sees opportunities for further operating efficiencies over time. The earn-out shares are subject to adjustments based on whether the acquired business achieves $31.7 million of EBITDA and $2.2 million of EBITDA from certain fuel-related components, as defined in the purchase agreement. Kotler said the approximately $30 million of expected annual adjusted EBITDA represents the base business being acquired, while the escrow arrangement is designed to reward performance above that level. At quarter-end, Mann said net debt was $324.2 million and the company’s net debt-to-adjusted EBITDA ratio was approximately 2.2 times. ARKO Petroleum reported approximately $710 million of availability under its credit lines. After the USPP transaction closes, the company expects annualized pro forma net debt-to-adjusted EBITDA of between 3 and 3.5 times, within its previously communicated target range of 3 to 4 times. Management maintained its full-year outlook, citing first-half execution and expectations that the USPP transaction’s 2026 contribution will be generally consistent with assumptions already incorporated into guidance. ARKO Petroleum continues to expect full-year adjusted EBITDA of approximately $156 million and Discretionary Cash Flow of approximately $110 million. Kotler said the company has identified 20 new CardLock locations for opening during 2026. Three had opened as of the call, while the remaining 17 were in various stages of development. He said management expects mid-to-high-teen returns per location and views the segment as requiring relatively low capital investment. Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Anadarko Petroleum Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

RICHMOND, Va., May 11, 2026 (GLOBE NEWSWIRE) -- ARKO Petroleum Corp. (Nasdaq: APC) (“APC” or the “Company”), one of the largest wholesale fuel distributors in the United States, today announced financial results for the first quarter ended March 31, 2026. First Quarter 2026 Key Highlights (vs. Year-Ago Period) 1,2 Net income for the quarter increased to $8.1 million compared to $4.5 million. Adjusted EBITDA for the quarter increased to $36.4 million compared to $30.9 million. Net cash provided by operating activities for the quarter was $6.6 million compared to $14.9 million. Discretionary Cash Flow for the quarter was $25.0 million compared to $17.1 million. Total debt, net was $184.5 million and Net Debt was $313.5 million, in each case, as of March 31, 2026. Other Key Highlights The Company completed its initial public offering of 12,570,223 shares of its Class A common stock at a price to the public of $18.00 per share (the “IPO”) including the exercise by the underwriters of their overallotment option, representing an aggregate of 26.4% of the economic interests in the Company. The Company applied $206.7 million of proceeds from the IPO to reduce debt during the quarter and strengthened an already conservative balance sheet, creating further financial flexibility for the Company. As part of the ongoing transformation plan of the Company's controlling stockholder, ARKO Corp. (Nasdaq: ARKO) ("ARKO"), 41 ARKO retail convenience stores that sell fuel ("ARKO Retail Sites") were converted to dealer locations in the Company's wholesale segment during the first quarter of 2026, bringing total conversions since program inception in 2024 to 450 sites. ARKO has approximately 75 additional sites committed either under letter of intent, under contract or already converted since quarter end. The Company expects to complete these conversions, along with additional conversions, by the end of 2026. The Company continues to target 20 new-to-industry fleet fueling locations with openings in 2026, with one opened in March 2026, and 17 of which are in process, reflecting the attractive, durable cash flow profile of its fleet fueling business. “We are excited to share that APC delivered strong year-over-year growth, in its first quarter as a public company, continuing on the momentum we built through the end of 2025,” said Arie Kotler, Chairman, President and Chief Executive Officer of APC. “We saw growth in operating income across all three of our segments, which underscores the resilience of our platform, enabling us to perform even during volatile market conditions. With our low leverage, and liquidity of approximately $731 million, we are well-positioned to grow share in a highly fragmented industry through new to industry builds in our fleet fueling segment and through disciplined, accretive M&A in our wholesale segment and to drive long-term shareholder value.” First Quarter 2026 Segment Highlights Wholesale Segment For the first quarter of 2026, wholesale operating income increased by $4.4 million compared to the first quarter of 2025 as a result of additional operating income from ARKO Retail Sites converted to dealer locations combined with increased operating income at comparable wholesale sites. For the first quarter of 2026, fuel contribution increased by $2.8 million compared to the first quarter of 2025. Fuel contribution for the first quarter of 2026 at fuel supply locations increased by $1.2 million due to incremental contribution from ARKO Retail Sites converted to dealer locations, which was partially offset by lower fuel contribution at comparable wholesale sites. Fuel contribution for the first quarter of 2026 at consignment agent locations increased $1.6 million due to incremental contribution from ARKO Retail Sites converted to dealer locations and higher fuel contribution at comparable wholesale sites. As compared to the first quarter of 2025, fuel margin per gallon increased 0.4 cents per gallon at fuel supply locations and 5.3 cents per gallon at consignment agent locations, primarily as a result of significant volatility in the fuel market due to the geopolitical environment and increased prompt pay discounts related to higher fuel costs. For the first quarter of 2026, other revenues, net increased by $6.2 million, and site operating expenses increased by $5.2 million, in each case as compared to the first quarter of 2025, resulting primarily from ARKO Retail Sites converted to dealer locations. Fleet Fueling Segment Fuel contribution for the first quarter of 2026 increased by $1.4 million compared to the first quarter of 2025. At proprietary cardlocks, fuel contribution increased by $1.2 million, and fuel margin per gallon also increased for the first quarter of 2026 compared to the first quarter of 2025. At third-party cardlock locations, fuel contribution increased $0.2 million, and fuel margin per gallon also increased for the first quarter of 2026 compared to the first quarter of 2025. These increases were primarily due to favorable diesel margins as a result of significant volatility in the fuel market due to the geopolitical environment. GPMP Segment For the first quarter of 2026, fuel revenue – related party decreased by $59.9 million, or 10.4%, compared to the first quarter of 2025, primarily driven by a $28.9 million, or 13.7%, decrease in gallons sold, reflecting the challenging macroeconomic environment as well as severe weather conditions in the quarter in several markets in which the Company operates, as well as the impact from ARKO Retail Sites converted to dealer locations, which was partially offset by an increase in the average price of fuel in the first quarter of 2026 compared to the first quarter of 2025. Fuel contribution – related party increased by $0.4 million for the first quarter of 2026, compared to the first quarter of 2025, primarily due to an increase in the fixed margin from 5.0 cents per gallon sold for the first quarter of 2025 to 6.0 cents per gallon sold for the first quarter of 2026, partially offset by fewer gallons sold to ARKO Retail Sites. Liquidity and Capital Expenditures As of March 31, 2026, the Company’s total liquidity was approximately $731 million, consisting of approximately $22 million of cash and cash equivalents and approximately $709 million of availability under the Company's lines of credit. Total debt, net was approximately $184.5 million, resulting in Net Debt (as defined below) of approximately $313.5 million. The IPO bolstered the Company's liquidity position, as the Company used the net proceeds to repay $206.7 million of indebtedness during the quarter. For the quarter ended March 31, 2026, maintenance capital expenditures were $2.5 million and growth capital expenditures were $3.5 million, including the investments in NTI fleet fueling locations, purchase of fuel dispensers and other investments in the Company's sites. Quarterly Dividend The Board declared a quarterly dividend of $0.26 per share of common stock which was paid on April 21, 2026 to stockholders of record as of April 10, 2026. This dividend was in respect of the pro-rata portion of the first quarter of 2026 during which the Company was public, and is consistent with an expected annual dividend rate of $2.00 per share. For illustrative purposes, this anticipated annual dividend represents an 11% to 10% dividend yield at a share price of $18.50 to $19.50 per share. The Company's dividend for the second quarter of 2026 is expected to be $0.50 per share of common stock to be paid after the Company releases its second quarter results. Segment Update The following tables present certain information regarding changes in the wholesale, fleet fueling and GPMP segments for the periods presented: Full Year 2026 Guidance The Company is not revising its guidance disclosed in March 2026, and currently expects full year 2026 Adjusted EBITDA and Discretionary Cash Flow to be approximately $156 million and approximately $110 million, respectively. The Company is not currently providing reconciliations of Adjusted EBITDA to net income or Discretionary Cash Flow to net cash provided by operating activities for the year ending December 31, 2026 due to the unavailability of certain required inputs for providing forecasts of such GAAP measures, and the related reconciliations, that are not available without unreasonable efforts, including depreciation and amortization related to the Company's capital allocation as part of the Company's focus on strategic and organic growth, as well as inputs related to working capital adjustments. Conference Call and Webcast Details The Company will host a conference call today, May 11, 2026, to discuss these results at 9:00 a.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 877-407-8306 or 201-689-8481. A simultaneous, live webcast will also be available on the Investor Relations section of the Company’s website at https://www.arkopetroleum.com/news-events/ir-calendar. The webcast will be archived for 30 days. About ARKO Petroleum Corp. ARKO Petroleum Corp. (Nasdaq: APC) is a growth-oriented, fuel distribution company and one of the largest wholesale fuel distributors by gallons in North America, supplying approximately 2 billion gallons of fuel annually to customers in approximately 3,500 locations in the District of Columbia and more than 30 states across the Mid-Atlantic, Midwestern, Northeastern, Southeastern, and Southwestern United States. We are engaged in (i) wholesale activity, which includes the supply of fuel to gas stations operated by third-party dealers, (ii) fleet fueling, which includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations) and the issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites, and (iii) the wholesale distribution of fuel to substantially all of the retail convenience stores that sell fuel operated by ARKO Corp., our parent company (Nasdaq: ARKO), one of the largest operators of convenience stores in the United States. To learn more about APC, visit: www.arkopetroleum.com. Forward-Looking Statements This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as “accretive,” “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company’s ability to maintain the listing of its Class A common stock on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; the success of ARKO's transformation plan and its effect on the Company, including the dealerization of retail stores; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law. Use of Non-GAAP Measures The Company discloses certain measures on a “comparable wholesale sites” basis, which is a non-GAAP measure. Information disclosed on a “comparable wholesale sites” basis excludes wholesale sites added through ARKO Retail Sites converted to dealer locations until the first quarter in which these sites had a full quarter of wholesale activity in the prior year. The Company believes that this information is useful for its investors, securities analysts, and other interested parties by providing greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges. Both EBITDA and Adjusted EBITDA are non-GAAP financial measures. The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believe these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance. The Company defines Net Debt as the sum of total debt, net, financing leases and financial liabilities, less cash and cash equivalents. Net Debt is used by management to measure the effective level of our indebtedness. The Company defines the Ratio of Net Debt to Adjusted EBITDA as the ratio derived by dividing Net Debt by Adjusted EBITDA. The Ratio of Net Debt to Adjusted EBITDA is an important measure used by management to evaluate the Company's access to liquidity, and the Company believes it provides useful information for investors as a representation of its financial strength by presenting the sustainability of its debt levels and its ability to take on additional debt against Adjusted EBITDA, which is used as an operating performance measure. The Ratio of Net Debt to Adjusted EBITDA is also frequently used by investors and credit rating agencies to analyze the Company's operating performance. The Company defines Discretionary Cash Flow as net cash provided by operating activities, (i) less changes in operating assets and liabilities, maintenance capital expenditures, charges to allowance for credit losses, and non-cash rent expense, and (ii) plus acquisition costs, amortization of deferred income net of prepaid to related party, and certain other expenses (income). Discretionary Cash Flow will not reflect changes in working capital balances. Discretionary Cash Flow is a liquidity measure the Company and third parties, such as industry analysts, investors, lenders, rating agencies and others, use to assess its ability to internally fund its acquisitions, pay dividends, and service or incur additional debt. The Company believes that the presentation of Discretionary Cash Flow provides useful information to investors, securities analysts, and other interested parties for evaluating its liquidity. EBITDA, Adjusted EBITDA, Net Debt, the Ratio of Net Debt to Adjusted EBITDA and Discretionary Cash Flow should not be considered as alternatives to any financial measure presented in accordance with GAAP, including net income and net cash provided by operating activities. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation, or as substitutes for the analysis of its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, comparable wholesale sites, EBITDA, Adjusted EBITDA, Net Debt, the Ratio of Net Debt to Adjusted EBITDA and Discretionary Cash Flow, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company’s use of these non-GAAP financial measures with those used by other companies. Supplemental Disclosure of Non-GAAP Financial Information Supplemental Disclosures of Segment Information Wholesale Segment Fleet Fueling Segment GPMP Segment CONTACT: Company and Investor Contact Jordan Mann ARKO Petroleum Corp. [email protected]

Interested in Anadarko Petroleum Co.? Here are five stocks we like better. Strong Q1 results: ARKO reported higher first-quarter 2026 earnings, with net income rising to $8.1 million from $4.5 million and adjusted EBITDA increasing to $36.4 million, helped by fuel-margin discipline and wholesale growth. Balance sheet improved after IPO: The company used $206.7 million of IPO proceeds to reduce debt, leaving it with about $731 million in liquidity and net leverage of 2.1x, which management says supports further expansion and acquisitions. Growth plans remain intact: ARKO left full-year 2026 guidance unchanged, expects about $156 million in adjusted EBITDA, and continues expanding dealer conversions and cardlock/fleet fueling locations while maintaining a dividend target of $2 per share annually. ARKO Petroleum Corp. reported stronger first-quarter 2026 results, with management pointing to fuel-margin discipline, wholesale growth and the company’s post-IPO balance sheet as key factors supporting its outlook. Chairman, President and Chief Executive Officer Arie Kotler said adjusted EBITDA rose approximately 18% year over year during a quarter marked by significant fuel-cost volatility. Kotler said the results reflected the company’s “cost-plus” margin structure on roughly 85% of gallons distributed, as well as pricing execution on the remaining gallons sold through fleet fueling and consignment agent locations. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Chief Financial Officer Jordan Mann said net income was $8.1 million for the quarter, compared with $4.5 million in the prior-year period. Adjusted EBITDA increased to $36.4 million from $30.9 million a year earlier. In the wholesale segment, fuel contribution rose 14.2% to $22.9 million from $20 million in the first quarter of 2025. Wholesale gallons increased 2.8% to 233.9 million gallons, while fuel margin improved to approximately 9.8 cents per gallon from 8.8 cents per gallon a year earlier. → 3 Ways to Target the Resources Powering AI and Data Centers Kotler said the wholesale segment benefited from higher margin capture at consignment agent locations during volatile fuel markets and, to a lesser extent, increased prompt-pay discounts tied to higher fuel costs. He also said the segment gained from ARKO Corp.’s continued conversion of retail sites into dealer locations. The company converted 41 ARKO retail sites to dealer locations during the first quarter, bringing total conversions since mid-2024 to 450. Kotler said approximately 75 additional sites were committed under letters of intent, contracts or had already converted after quarter-end, and he expects those and additional conversions to be completed by the end of 2026. → Quantum Earnings Season Is Ramping Up—What to Watch From 2 Major Players In fleet fueling, fuel contribution increased 9.4% to $16.7 million from $15.3 million a year earlier. Gallons declined 3.2% to 34 million, but margin expanded by 5.7 cents per gallon to 49.3 cents per gallon, more than offsetting the volume decline. Mann said the segment continued to reflect a “durable cash flow profile.” In the GPMP segment, fuel contribution from related-party locations, which are ARKO retail sites, increased to $11 million from $10.6 million. Related-party gallons fell to 182.7 million from 211.7 million, which Mann attributed to the shift of gallons from ARKO retail sites to wholesale as stores convert to dealer locations, as well as a decline in gallons at ARKO retail sites. Mann said the segment’s margin was fixed at 5 cents per gallon through Dec. 31, 2025, and has since been fixed at 6 cents per gallon. Management highlighted the company’s February initial public offering as a key development that strengthened the balance sheet. Mann said ARKO used $206.7 million of net proceeds to reduce debt and enhance liquidity. As of quarter-end, Kotler said net leverage was 2.1 times, below the company’s expectations during its IPO roadshow of less than 2.5 times. He also said liquidity was approximately $731 million. Mann said total debt net was $184.5 million, net debt was approximately $313.5 million and the ratio of net debt to adjusted EBITDA was approximately 2.1 times. The ratio of total debt net to net income was 5.1 times. Kotler said the company’s liquidity positions it to pursue growth through new-to-industry fleet fueling locations and disciplined, accretive wholesale acquisitions. He said the IPO has increased the company’s exposure as a potential acquirer, leading to more opportunities, though he said during the Q&A that seller expectations had not materially changed in the recent volatile commodity environment. ARKO is continuing to invest in its fleet fueling segment, including its cardlock platform. Kotler said the company opened one new-to-industry location in the first quarter and has identified and is working on 17 additional locations as part of its target of 20. In response to an analyst question, Kotler said additional locations are expected to begin opening more toward the third and fourth quarters, with most of the benefit likely appearing in 2027. He said sites typically take six to 12 months to ramp up, with roughly nine months a reasonable planning assumption. On shareholder returns, Kotler said the company paid an initial dividend of 26 cents per share in April, representing the pro rata portion of the first quarter following the IPO. He said that payment was consistent with an annual target dividend rate of $2 per share. The company expects a second-quarter dividend of 50 cents per share to be paid after it reports second-quarter results. ARKO left its full-year 2026 outlook unchanged. Mann said the company continues to expect full-year adjusted EBITDA of approximately $156 million and discretionary cash flow of approximately $110 million. During the Q&A, Kotler said the company did not see customers pulling back because of fuel-price volatility, though he noted that weak weather in late January and February contributed to a small decline in first-quarter gallons. He said gallons improved in March and April, and that customers were visiting more often while purchasing fewer gallons per visit. Kotler added that if pump prices remain around $4.50 per gallon into the summer, the company would expect to see a decrease in gallons, though he said that would be offset by prompt-pay discounts tied to higher fuel prices. In closing remarks, Kotler thanked employees for executing through a volatile macro environment and said the company remains focused on the growth strategies outlined at the time of its IPO, stable cash flow generation and a healthy dividend. Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Anadarko Petroleum Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.