Welcome to the CrossAmerica Partners Second Quarter 2022 Earnings Call. My name is Darrel and I will be your operator for today's call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. I will now turn the call over to Maura Topper. You may begin.

Thank you, operator. Good morning, and thank you for joining the CrossAmerica Partners second quarter 2022 earnings call. With me today is Charles Nifong, CEO and President. Charles will provide some opening comments, a brief overview of CrossAmerica's operational performance and highlights from the quarter, and then I will discuss the financial results. At the end, we will open up the call to questions. I should point out that today's call will follow some presentation slides that we will utilize during this morning's event. These slides are available as part of the webcast and are posted on the CrossAmerica website. Before we begin, I would like to remind everyone that today's call, including the question-and-answer session, may include forward-looking statements regarding expected revenue, future plans, future operational metrics and opportunities and expectations of the organization. There can be no assurance that management's expectations, beliefs and projections will be achieved or that actual results will not differ from expectations. Please see CrossAmerica's filings with the Securities and Exchange Commission, including annual reports on Form 10-K and quarterly reports on Form 10-Q for a discussion of important factors that could affect our actual results. Forward-looking statements represent the judgment of CrossAmerica's management as of today's date, and the organization disclaims any intent or obligation to update any forward-looking statements. During today's call, we may also provide certain performance measures that do not conform to U.S. generally accepted accounting principles or GAAP. We have provided schedules that reconcile these non-GAAP measures with our reported results on a GAAP basis as part of our earnings press release. Today's call is being webcast, and a recording of this conference call will be available on the CrossAmerica website for a period of 60 days. With that, I will now turn the call over to Charles.

Thank you, Maura. Maura and I appreciate everyone joining us this morning. As always, we thank you for your interest in the partnership. During today's call, I will briefly go through some of the operating highlights for the second quarter. I will also provide some color on the trends in the market and a few other updates similar to what I provided on previous calls. Maura will then review in more detail the financial results. Now if you turn to Slide 4, I will briefly review some of our operating results. For the second quarter of 2022, our wholesale fuel gross profit increased 33% to $40.5 million compared to $30.5 million in the second quarter of 2021. This growth was driven by increases in both volume and fuel margin. Wholesale segment gross profit was $55 million, an increase of 24% or $10.8 million when compared to the second quarter of 2021. Our wholesale fuel volume was 342.8 million gallons for the second quarter of 2022, an increase of 3% when compared to the same period in 2021, largely due to the acquisition of assets from 7-Eleven, which occurred primarily during the third quarter of 2021. It was a challenging quarter overall for fuel volume. If you look at gasoline demand data from the Energy Information Administration, national gasoline demand was down year-over-year for every week in the quarter, except 1 week. Our wholesale fuel volume was not immune from the national trend. We particularly saw a decline in gasoline demand from our wholesale locations as fuel prices rose sharply at late May and into June. Fuel demand continued to remain lower than the prior year after fuel prices peaked in mid-June. Overall, for the quarter, our wholesale same-site fuel volume declined about 6% year-over-year. Moderating fuel prices in the period…

Thank you, Charles. If you would please turn to Slide 6. I would like to review our second quarter results for the partnership. We reported net income of $14 million for the second quarter of 2022 compared to net income of $4.8 million in the second quarter of 2021. The increase in net income was primarily driven by the year-over-year increases in operating income in both the wholesale and retail segments, with each segment benefiting from the acquisition of assets from 7-Eleven, along with the favorable fuel margin environment that Charles has discussed. Adjusted EBITDA was $41.4 million for the second quarter of 2022, which was an increase of 39% when compared to adjusted EBITDA of $29.7 million for the second quarter of 2021. Our distributable cash flow for the second quarter of 2022 was $32.4 million versus $25 million for the second quarter of 2021. The 30% increase in distributable cash flow was primarily due to the increase in operating income in both the wholesale and retail segments, partially offset by an increase in cash interest expense. Our distribution coverage for the current quarter was 1.63x compared to 1.26x for the second quarter of 2021. Our distribution coverage on a paid basis for the trailing 12 months was 1.48x compared to 1.22x for the 12 months ended June 30, 2021. As Charles referenced earlier, we have felt the impact of inflation in our cost of goods sold and operating expenses over the past several quarters. On the cost of goods sold front, we continue to focus on identifying price changes in fuel and retail goods as they are occurring and acting effectively to push updates through our channels to maintain margins wherever possible, while retaining our focus on remaining a destination of choice for our customers. On an operating…

Well, it doesn't appear that we have any questions today. Should you think of one later, please reach out to us because we'll be happy to address. Otherwise, thank you for joining us, and have a good day.

Thank you. This concludes today's conference. Thank you for participating. You may now disconnect.