FR Refuel LLC

Overview Key strengths Key risks Good growth prospects because of store investments, consolidation strategy, and store and customer engagement enhancements. Small regional operator in the highly competitive and fragmented convenience store industry. Diversified long-term fuel supply agreement that reduces its exposure to fuel-price volatility. Aggressive acquisition strategy and predominantly owned by an equity sponsor. Although elevated, relatively consistent credit protection measures including adjusted leverage in the 5x area. Exposure to long-term environmental and social risk factors. For the first six months of 2022, the company increased sales at a double-digit percentage pace, driven by acquisition-related growth in fuel volumes and merchandise sales along with a significant increase in retail fuel prices. For the six months ended in June, revenue rose

...We expect FR Refuel LLC's merchandise sales and fuel volumes to increase over the next 12 months. For the first six months of 2022, the company increased sales at a double-digit percentage pace, driven by acquisition-related growth in fuel volumes and merchandise sales along with a significant increase in retail fuel prices. For the six months ended in June, revenue rose more than 105% as fuel sales increased more than 140% and merchandise sales gained in excess of 45%. The growth in fuel and merchandise sales results primarily from acquisitions completed this year and in 2021, offsetting the decline in same-store fuel volumes and merchandise turnover. The significant increase in retail fuel prices early in the year also helped boost overall revenue, while also...

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