ARKO Petroleum (APC) Investor presentation summary

Business overview and market position

• Operates as one of the largest wholesale fuel distributors in North America, distributing fuel to 3,489 sites across 30+ states and spanning wholesale, fleet fueling, and GPMP segments.

• Achieved a compounded annual growth rate of ~11% in gallons sold and ~14% expansion in annual fuel margin per gallon since 2020.

• Listed on Nasdaq in February 2026, raising $226 million in gross proceeds, with most proceeds used to repay debt.

• Maintains strong supplier relationships and long-term, fee-based distribution contracts, with ~85% of gallons sold under cost-plus agreements.

• Holds a leading position in a highly fragmented U.S. fuels distribution market, providing significant runway for acquisitive growth.

Financial performance and capital structure

• Reported $143.5 million in adjusted EBITDA for 2025 and targets a 70% discretionary cash flow conversion rate.

• Net leverage stands at 2.1x Net Debt to Adjusted EBITDA as of March 31, 2026, well below industry peers.

• Approximately $730 million in liquidity, supporting both organic and inorganic growth strategies.

• Q1 2026 earnings showed an 18% increase in adjusted EBITDA and a 46% increase in discretionary cash flow compared to Q1 2025.

• Announced an expected annual dividend rate of $2.00 per share.

Growth strategy and operational highlights

• Pursues robust organic and inorganic growth, targeting mid-single digit annual growth in total gallons distributed.

• Fleet Fueling segment expanded through acquisitions, with rapid integration and strong performance post-Quarles acquisition.

• GPMP segment leverages long-term agreements with ARKO retail sites, benefiting from ARKO’s transformation and site conversions.

• Focuses on acquiring targets with operational inefficiencies, complementary geographies, and synergy potential.

• Asset-light business model results in low maintenance capital expenditures and high cash flow conversion.