Ladies and gentlemen, thank you for standing by. Welcome to the Third Quarter 2014 Earnings Conference Call for CrossAmerica Partners. [Operator Instructions] This conference call may contain forward-looking statements relating to the partnership's future business expectations and predictions, financial condition and results of operations. These forward-looking statements involve certain risks and uncertainties. The partnership has listed some of the important factors that may cause actual results to differ materially from those discussed in such forward-looking statements, which are referred to as cautionary statements in the third quarter 2014 earnings release. The earnings release may be viewed on the CrossAmerica Partners' website at www.crossamericapartners.com. All subsequent written and oral forward-looking statements attributed both through partnerships or persons acting on their behalf are expressly qualified in their entirety by such cautionary statements. In addition, the certain non-GAAP financial measures will be discussed on this call. The partnership has provided a description of these measures, as well as a discussion of why they believe this information is useful to management in its Form 8-K furnished to the SEC yesterday. For the Form 8-K may be accessed through a link on the partnership's website at www.crossamericapartners.com. As a reminder, this conference call is being recorded. I would now turn the conference over to the host, Joe Topper, the President and CEO of CrossAmerica Partners.

Thank you, and good morning. Welcome to CrossAmerica Partners' Third Quarter 2014 Earnings Call. Joining me on the call today are Mark Miller, Chief Financial Officer; and Dave Hrinak, Chief Operating Officer. This is our first earnings call since the completion of the acquisition of the partnership's general partner by CST, and our first with our new name, CrossAmerica Partners. So today, call represents the start of a new period in the partnership's growth. We are excited by the new opportunities available to the partnership and look forward to discussing them in more detail with you in the coming quarters. For the call today, I will provide a brief overview and some initial commentary on our third quarter results, followed by a review of our third quarter distribution increase, and then review the acquisition that we announced earlier this week with CST, our first joint acquisition with CST. Once we've concluded our prepared remarks, we will open the session to your questions. Net income for the third quarter of 2014 totaled $4.2 million or $0.21 per basic common unit. For the quarter, EBITDA totaled $16.9 million. Adjusted EBITDA totaled $18.7 million and distributable cash flow amounts to $13.6 million or $0.70 per common unit. Our wholesale gross margin for the quarter was $0.078 per gallon. The wholesale fuel environment for the quarter was generally very strong due to the strong declining trend in oil and rack fuel prices for the quarter. As we have discussed before, our variable-priced fuel supply contracts, our margin typically improved as oil and rack fuel prices decline. One important note to realize on our wholesale fuel margin for the quarter is that the partnership's supply agreement with LGO provides for a variable rate pricing. During the quarter, the partnership effectively charged fixed rate pricing under…

Thank you, Joe. During the third quarter 2014, we distributed on a wholesale basis, 244.6 million gallons in motor fuels, resulting in a $2.83 average selling price per gallon and a $0.078 average wholesale margin per gallon. Wholesale gross profit from motor fuel sales for the quarter totaled $19.2 million. Our retail segment, which represents our commission agent sites, and much of our PMI operations, distributed 46.5 million gallons, resulting in a $3.41 average selling price per gallon and a $0.053 average retail margin per gallon. Retail gross profit margin for motor fuel sales for the quarter totaled $2.5 million. The total gallons distributed for the quarter was 269.4 million gallons. The total gross profit margin from fuel sales was $21.6 million, representing a margin of $0.08 per gallon. For the same period of 2013, the partnership wholesale distributed 160.5 million gallons at an average selling price of approximately $2.98 per gallon and a $0.071 average margin per gallon. Gross profit from motor fuel sales for the third quarter 2013 totaled $11.4 million. Relative to the results for the third quarter 2013, our wholesale fuel volume increased approximately 52%, and our wholesale gross profit from fuel sales increased 68% for the third quarter of 2014. The increase in gross profit was driven by higher margin and volume for the third quarter compared to last year. On the retail side, the partnership retail distributed 46.5 million gallons in the quarter at an average selling price of $3.41 and a $0.053 average margin per gallon. The partnership began retail fuel operations late in the third quarter 2013. Accordingly, it had minimum retail fuel sales during the same period last year. Net income, which is rental income less rent expense, totaled $5.6 million for the quarter. For the same period in 2013, the…

Thank you, Mark. That concludes our prepared remarks. Operator, I would like to open the line up for questions. Thank you.

[Operator Instructions] And our first question comes from Ethan Bellamy from Robert W. Baird.

Joe...

Ethan, hold on for a moment, I just want to let you know that Kim Lovell is on the phone and Clay Killinger from CST, and they're listening in. If there are questions that would be addressed to them, they're welcome to speak and talk on behalf of their -- it's been a great partnership.

Excellent. Good. That was one of my questions. We can go ahead and cross off. I've been operating under the assumption that your margins in the fourth quarter ought to be widening substantially right now, and the fourth quarter ought to be pretty solid. Is that accurate? And if so, how are we are tracking so far?

Well, as you know, Ethan, we don't really give guidance, but I would tell you -- reiterate 2 things. One is, as prices fall, they have always been good for our margins and nothing in the quarter would indicate anything less than that. The other part was the comment with that LGO has gone to a fixed price margin, a rack plus. And so what that will do, that will stabilize margins on a predictable basis. So we have less variance from the norm. But yes, we're going to have a good fourth quarter from a margin standpoint of view.

Okay. How do you see and what are the gating factors from moving assets from CST into CAPL? And why not just move as much as you can, as fast as you can and stair step the distribution upward?

Well, first of all, that's not under my control. That's under CTS's control and their board from that standpoint of view. The second is, I think, we like the long runway that their dropdowns will provide, and we will blend it in with the acquisitions that we intend to do. As you know, we have a pretty good track record of acquisitions. And I think it's a great complement to do the 2 of them together to give our unit holders a very good long runway of dividend increases.

Okay. And then lastly, based on what we see as pretty robust growth opportunities for the distribution both in terms of dropdowns and third-party M&A, I think CAPL ought to be trading a lot better here. What do you think investors need to see, is it just execution and actually posting increased distributions for you to get a better value on CAPL?

I think it's just execution, and I think people want to see the effects of the dropdown. And once the dropdowns are in place, I think you -- I agree with you, we should be trading at a lot higher multiple.

And our next question comes from Praneeth Satish from Wells Fargo.

Stepping in for Sharon Lui today. Just 2 quick questions. I guess the first is from a high level, if fuel pricing remains at these levels, I guess, what's the potential impact on fuel demand? And have you seen a change in customer demand at the pump yet?

I think we are -- I would tell you that in some areas, where we've had modest declines in demand in the past, we've seen that being mitigated and being less. I don't think we've seen the real effect of it because it's only been going around for 30 days that we've seen a real change in the buying habits. I think once it's sustained under $3, I think we will have a very good driving season, and hopefully I would tell you that I think demand will pick up next year from these lower prices. But I wouldn't say that people have changed their buying patterns over the last 60 days yet.

Got it. And then the other question I had on the joint acquisition of the Nice N Easy assets, have you disclosed what the EBITDA multiple looks like on that deal?

We have not. And we have not in the past as that is -- I did that in my first earnings call, last 2 years ago, and that became the multiple by which everyone else bid against us. And so we've not -- we don't disclose the actual EBITDA, but what we do is, it shows up in the results in the first quarter that we're in business.

[Operator Instructions] And our next question comes from Ben Brownlow from Raymond James.

Can you give any insight into what that -- exactly the fixed fuel margin is going forward and how that compares to that -- the variable margin on that same volume in the fourth quarter last year?

I would tell you that it is -- approximates the 3-year average of our margins around $0.066, $0.067. And so -- and that is in line with what the trailing 12-month was for those same gallons. Over the 12-month period, it was -- have a nominal effect on the gallons, but what we -- it will do is it will kind of normalize the variability over the 12-month period.

Absolutely. And did I hear correctly that, that was -- that would be -- that change is going to impact 16 million gallons?

No, 16 million gallons is the gallons that are left a quarter under the variable, so about 80 million gallons is still variable priced to third parties.

Okay, great. And then how much on the Nice N Easy distribution -- that agreement, is that a fixed or variable margin?

That's going to be a fixed margin.

Can you tell us what that is? Is that similar to the $0.066?

That I think is the -- we talked about it, that has not been approved yet by the Conflicts Committee of CrossAmerica or CST yet. And so we expect that to be finalized within the next 30 days.

Okay. And then on the Nice N Easy as well, can you give us some color on what your rental income will be for those 23 sites?

Again, that falls in with the Conflicts Committee approval. We have a target rate, but right now because of the timing of everything, the Conflicts Committee on both CST and CrossAmerica are doing their work and coming up with that number, then I would expect to be -- I know we will know it in the next 30 to 45 days.

Okay, great. And just one last one from me. Kim and Clay, if -- do you guys have any insight or updates on the timing of a dropdown for fuel contracts?

We're -- Ben, this is Clay. We're currently evaluating that. And so we are evaluating the portfolio of assets that we can drop, especially taking into effect the tax matters agreement that we have with Valero, but there are assets that we can, and that we believe that does include real property assets and fuel supply associated with assets that we've built subsequent to the spin. So I can't -- at this point, I can't say whether that's going to be fourth quarter or first quarter or early, but I can tell you that we are actively working on it now.

Thank you. And we have no further questions at this time. I would now turn the call over to Mr. Joe Topper for closing remarks.

Thank you all for calling and listening to the earnings call. We at CrossAmerica and CST are very, very excited about our future and how we're going to grow these partnerships together. And I look forward to much more exciting phone calls and earnings calls in the future. Thank you for your time.

Thank you. And thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.