My name is Joanna, and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Later we will conduct the 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 for joining the CrossAmerica Partners Second Quarter 2023 Earnings Call. With me today is Charles Nifong, CEO and President. We’ll start off the call today with Charles providing some opening comments and an overview of CrossAmerica’s operational performance from the quarter. And then I will discuss the financial results. We will then open up the call to questions. Today’s call will follow presentation slides that 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. As always, Maura and I appreciate everyone joining us. We thank you for making the time and your schedule to be with us this morning. During today’s call, I will briefly go through the operating highlights for the second quarter. I will also provide color on 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 our operating results. For the second quarter of 2023, our wholesale fuel gross profit declined 6% to $17.9 million compared to $19 million in the second quarter of 2022. The decline was driven by a decrease in fuel margin, partially offset by an increase in fuel volume. Wholesale segment gross profit was $31.7 million, a decrease of 5% when compared to the $33.5 million of wholesale gross profit in the second quarter of 2022. Our wholesale fuel margin declined 8% from $0.089 per gallon in the second quarter of 2022 to $0.082 per gallon for the second quarter of 2023. Crude oil prices were lower during the quarter compared to the prior year, and the year-over-year decrease in fuel margin was primarily driven by the result of lower cost of motor fuel during the quarter and the corresponding decrease in the dollar value of the terms discount on certain gallons purchased during the quarter. Although not directly evident in the results this quarter, we also continued to benefit from improved fuel sourcing costs, and we had success during the quarter in our continued efforts to lower our cost of product. Our wholesale volume was 218.1 million gallons for the second quarter of 2023 compared to 214.4 million gallons in the second quarter of 2022. The…

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 $14.5 million for the second quarter of 2023 compared to net income of $14 million in the second quarter of 2022. The increase in net income was primarily driven by an increase in adjusted EBITDA, partially offset by the year-over-year increase in interest expense due to the elevated interest rate environment. Adjusted EBITDA was $42.2 million for the second quarter of 2023, which was an increase of 2% when compared to adjusted EBITDA of $41.4 million for the second quarter of 2022. Our distributable cash flow for the second quarter of 2023 was $30.4 million versus $32.4 million for the second quarter of 2022. The decrease in distributable cash flow was primarily due to the increase in cash interest expense that impacted our second quarter net income. Our distribution coverage for the current quarter was 1.53 times compared to 1.63 times for the second quarter of 2022. On a trailing 12-month basis, our distribution coverage was 1.68 times for the 12 months ended June 30, 2023, compared to 1.48 times for the comparable period ended June 30, 2022. The business overall continues to benefit from the strategic initiatives and growth opportunities we have acted upon over the past three-plus years, continuing to result in these strong distribution coverage ratio statistics. The Partnership paid a distribution of $0.525 per unit during the second quarter of 2023, attributable to the first quarter of 2023 for a total of almost $20 million. Charles discussed some of the primary drivers of our top line and gross profit performance for the quarter earlier. Turning to the expense portion of our operations. Operating expenses for the second quarter…

Yes. So, if you should have follow-up questions, please feel free to contact us. Otherwise, we appreciate everyone joining us today. Thank you, and have a good day.

Ladies and gentlemen, this concludes your conference for today. We thank you for participating, and we ask that you please disconnect your lines.