Raymond James & Associates, Inc.., member of New York Stock Exchange / SIPC

Quarterly Newsletter – Spring 2020

In This Issue

Recent, Notable M&A Transactions

Macroeconomic Indicators

Summaries of Recent Earnings Releases

Debt and Equity Market Conditions

Other Recent Content from

Raymond James(Links Below)

Raymond James Equity Research:

Convenience Stores | Fuel Volumes Show

Another Modest W/W Improvement;

Margin Gains Slow

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

2

Deal Spotlights

First Reserve Backed Refuel LLC Acquired Double Quick Inc.

7-Eleven Inc. Acquires 7-Eleven of Oklahoma Observations and Takeaways

Has Acquired• Transaction included 48 company

operated c-stores and five stand-

alone quick service restaurants in

Mississippi and Arkansas

• Indianola, MS based Double Quick

was founded in 1983 by Tom

Gresham and Bill McPherson

• First Reserve backed Refuel, LLC

has experienced tremendous growth

via acquisitions since an investment

by First Reserve in 2019

• Closed: April 23, 2020

• Transaction Value: Undisclosed

• Operating only five stores in

early 2019, transaction brings

Refuel’s company operated c-

store count to 89, keeping it on

pace to surpass the 100-store

milestone by the end of 2020

• Closed: March 1, 2020

• Transaction value: Undisclosed

• “These stores have carried the 7-Eleven name for 67

years, and today they officially join the global 7-Eleven

family, we look forward to meeting the needs of

Oklahoma customers and offering them the great

products and services available in stores across the

country.” – 7-Eleven Inc. CEO & President Joe DePinto

• The Company’s retail portfolio consists of 108 high quality

convenience stores located in Oklahoma (~55% fee

simple) as well as a bakery, commissary and merchandise

distribution facilities that support the retail operations

• The Company has a significant market share position in

central Oklahoma and is the registered owner of the 7-

Eleven trademark and trade dress in Oklahoma

• The Company was founded by the Brown family who has

actively managed the business since 1953

• Transaction brings 7-Eleven Inc.’s U.S. and Canada store

count to almost 9,800

Acquired

Observations and Takeaways

GPM Investments LLC (“GPMI”) to Acquire Empire Petroleum Partners (“EPP”)

Observations and TakeawaysHas Entered into an

Agreement to Purchase• GPMI is one of the largest privately-owned

companies in the convenience store channel,

operating 1,272 c-stores and supplying 128

wholesale locations in 23 states

• EPP was founded in 1988 and is one of the

largest fuel distributors in the U.S., growing

primarily through 22 acquisitions completed

since 2011

• GPMI will acquire EPP’s wholesale fuel

distribution operations and retail business

totaling 1,534 sites (a majority of which are

wholesale)

• Acquisition will increase GPMI’s annual

gallons distributed to ~2.5 billion gallons and

expand its U.S. footprint into 10 new states

• Announced: December 18, 2020

• Expected Close: May 2020

• Transaction Value: ~$400 million

• "Empire has a reputation for providing superior quality and service to

its dealers, making it a logical combination with GPM, with a history of

successful execution.“ - Empire CEO Rick Golman

EPP Fuel Brands

GPMI Operations

GPMI Headquarters

New EPP Operations

EPP Headquarters

Geographic Overlap

Major GPMI Fuel Brands

Oklahoma

Closed Target Headquarters

4/23/20Double

Quick, Inc.Indianola, MS

6/27/19

Bishopville

Petroleum

Co., Inc.

Bishopville, SC

5/2/19West Oil,

Inc.Hartsville, SC

Recent Acquisitions

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

3

0

500

1,000

1,500

2,000

2,500

3,000

2015 2016 2017 2018 2019 2020

721

149

2,355

860

1,169

990

1,369

608 607

91

245

748

496 387

0

200

400

600

800

1,000

1,200

1,400

1,600

0

500

1,000

1,500

2,000

2,500

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

Q2'18

Q3'18

Q4'18

Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

M&A Transactions

Recent M&A Transactions in Convenience Store Industry

Spring M&A Overview

• 7-Eleven Inc’s acquisition

of 7-Eleven Oklahoma (108

stores) represents one of

the largest acquisitions for

the industry year-to-date

• Other notable acquisitions

year-to-date include

CrossAmerica Partners’

acquisition of 169 retail

sites (closed on 4/14/20)

from a seller group that

includes entities affiliated

with Joe Topper, Chairman

of the board of

CrossAmerica’s general

partner

• For context, EG Group’s

acquisition of Cumberland

Farm’s 562 stores

represented the industry’s

largest retail acquisition of

2019

• The Covid-19 virus has

sparked a global economic

downturn – reducing

consumer confidence and

spending, as well as supply

chain disruptions

• Although COVID-19 has

impacted M&A volume over

the last several months, the

convenience store industry

has performed relatively

well compared to many

other types of retail,

positioning it well for an

M&A rebound as the

pandemic begins to abate

Most Active Acquirors(1)

M&A Activity By Store Count(1)

LTM Rolling Average

3.2%Quarterly

GDP

# of Stores

Acquired

3.1% 2.9% 2.2% 4.2%1.8% 1.2% 3.5% 2.2% 3.1%

(1) Source: Public company filings and press releases; count as of announcement date. Includes

only U.S. deals.

(2) Includes Sunoco LP’s retail assets sold to 7-Eleven.

(3) Includes Marathon’s acquisition of Andeavor (1,085 sites).

2.0% 2.1%

(2)

(3)

2.1% (4.8%)

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

4

M&A Transactions

Summary of Notable Transactions in the Convenience Store Space

Source: Public company filings, press releases and CapitalIQ.

Note: Store count includes cardlocks and travel centers in certain transactions; purchase price may

include non-convenience store operations (e.g. wholesale distribution assets and refineries).

Announced TEV Store

Date Acquiror Target ($MM) Count Target Description

2/13/2020 ReFuel LLCGresham Petroleum

(Double Quick)- 48

Based in Indianola, MS, Gresham Petroleum operates 48 convenience stores under the "Double

Quick" brand; additionally operates a wholesale division which was not included in the transaction.

1/17/2020 7-Eleven Inc.7-Eleven stores Of

Oklahoma- 108

7-Eleven of Oklahoma is independently owned and operated 108 retail locations throughout the

greater Oklahoma City metropolitan area.

1/16/2020CrossAmerica

Partners, LP

Select Assets of Joe

Topper35.7 -

Transaction includes 172 dealer sites in Ohio and Pennsylvania that are managed through entities

affiliated with Joe Topper including most notably, Dunne Manning Inc.

12/18/2019 GPM Investments Empire Petroleum LLC 400.0 77Empire Petroleum and is one of the largest fuel distributors in the U.S., distributing ~1.1 billion

gallons of fuel in 2019 to 1,534 retail sites, of which 77 are company-operated.

11/20/2019 Joe TopperCrossAmerica Partner's

General Partner- -

Prior to the transaction, Alimentation Couche-Tard Inc. held 100% general partner interest in

CrossAmerica Partners, LP a publicly-traded wholesale fuel distributor to over 1,300 sites.

11/18/2019 Par Mar Stores Mountaineer Mart - 17 The Company operates 17 "Mountaineer Mart" branded stores all located in West Virginia.

10/16/2019 Campbell Oil The Hartley Co. - 31The Hartley Co. operates 16 "Starfire" branded stores in Ohio and distributes Marathon fuels to 15

company-owned and dealer operated locations.

10/8/2019Brookwood Financial

Partners (Yesway)

Allsup's Convenience

Stores- 304

Allsup's is a top 40 operator (in terms of store count) doing business throughout New Mexico,

Texas, and Oklahoma. The Company is known for its strong foodservice offerings.

9/30/2019 GPM Investments Riiser Energy - 63Riiser Energy operates 63 stores throughout Wisconsin and has doubled its store count over the

last year primarily through acquisitions.

8/28/2019 TrueNorth Energy Schmuckal Oil Company - 25Schmuckal Oil operates 25 "Mini-Mart" branded convenience stores and manages a wholesale and

transport division in northern Michigan.

7/12/2019 EG Group Cumberland Farms 2,100.0 562Cumberland Farms is a top-15 convenience store operator that does business in Connecticut,

Florida, Massachusetts, Maine, New Hampshire, New York, Rhode Island, and Vermont.

6/26/2019 Applegreen CrossAmerica Partners - 46Allentown, PA-based CrossAmerica is a wholesale distributor of motor fuels and owner and lessor

of real estate used in the retail distribution of motor fuels.

5/13/2019 EG Group Certified Oil - 69Certified Oil operates 69 convenience stores located throughout Kentucky, West Virginia, and

Ohio.

4/14/2019 Marathon NOCO Energy - 33NOCO Express has sold its 33 convenience stores, as well as a 900,000-barrel capacity light

product and asphalt terminal.

4/9/2019 EG Group Fastrac - 54East Syracuse, NY-based Fastrac owns and operates convenience stores across the Rochester-

Syracuse-Albany region.

4/2/2019 GPM Investments Town Star Holdings LLC - 18Town Star Holdings was formed by Junonia Capital LLC by acquiring 13 c-stores from TimeSaver

Food Stores Co. in 2014 and five c-stores from RaceTrac Petroleum Inc. in 2015.

2/21/2019 First Reserve Refuel Inc. & West Oil Inc. - 31 Refuel Inc. & West Oil Inc. together operate 31 convenience store sites in South Carolina.

1/16/2019TravelCenters of

America LLC

Hospitality Properties

Trust308.2 20

HPT is the principal landlord of TravelCenters of America. This sale-leaseback transaction involved

20 sites previously leased from HPT for a total deal value of $308.2 million.

12/13/2018Atlantis Management

Group LLCDattilo Petroleum Inc. - 27

Dattilo Petroleum Inc. is an operator of 27 Shell and Citgo-branded retail sites in New York and

New Jersey.

12/3/2018BP & ArcLight Capital

PartnersThorntons Inc. 1,075.0 191

Thorntons operates 191 c-stores in Florida, Illinois, Indiana, Kentucky, Ohio and Tennessee. BP

and private equity firm ArcLight Capital Partners formed a joint venture to acquire the company.

10/23/2018 United Pacific Macland Investments - 39Macland Investments owns and operates 39 gas stations and c-stores as well as provides car

washing and real estate services in California.

10/5/2018 Coen Markets Inc. CoGo's Co. - 38CoGo's Co. is an operator of 38 convenience stores in western and central Pennsylvania, West

Virginia and Maryland and has a franchise program.

10/2/2018Petroleum Marketing

Group Inc.

Hendel's Inc. (Henny

Penny)- 40

Hendel's Inc. is a family owned business operating 26 company operated convenience stores and

providing fuel to 14 dealers under the Henny Penny brand.

9/27/2018 Giant Eagle Inc. Ricker Oil Company, Inc. - 56Ricker Oil is a convenience store operator with 54 stores throughout Indiana, with significant

concentration within the Indianapolis MSA.

9/4/2018 EG GroupTravelCenters of America

LLC (C-Store Division)330.8 225

TravelCenters of America is a publicly-traded company operating both a convenience store and

travel center divisions throughout the U.S.

8/24/2018 Quinenco S.A. Road Ranger LLC 289.0 38Road Ranger operates a network of 38 travel centers throughout Iowa, Missouri, Illinois, Indiana,

Wisconsin, Indiana, and Texas.

High $2,100.0 562

Low 35.7 17

Median 330.8 43

Average 648.4 90

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

2.3% 2.2%

3.2% 3.5%

2.5%

3.5% 2.9%

1.1%

3.1%

2.0% 2.1% 2.1%

(4.8%)

-7%

-5%

-3%

-1%

1%

3%

5%

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

Q2'18

Q3'18

Q4'18

Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

May-16 Nov-16 May-17 Nov-17 May-18 Nov-18 May-19 Nov-19 May-20

Inflation (CPI) 10-Year U.S. Treasury Yield

($40)

($20)

$0

$20

$40

$60

$80

May-17 Nov-17 May-18 Nov-18 May-19 Nov-19 May-20

40.0

45.0

50.0

55.0

60.0

65.0

Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 Dec-19 Apr-20

2.4% 2.4% 2.4%

4.6%

1.7%

4.0% 3.5%

1.4% 1.1%

4.6%

3.2%

1.8%

(7.6%)(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

Q2'18

Q3'18

Q4'18

Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

Source: Bureau of Economic Analysis, St. Louis Federal Reserve, Bureau of Labor

Statistics, Institute for Supply Management and Capital IQ.

(1) BEA Advance Estimate as of 4/29/20.

MACROECONOMIC INDICATORS

West Texas Intermediate($ per barrel)

Inflation vs. 10-Year Treasury

Real GDP Growth(seasonally adjusted annual rates)

Consumer Spending Growth(Real PCE % change, seasonally adjusted at annual rates)

Purchasing Managers Index(annual rate)

Weekly Jobless Claims(in millions)

5

Note: PMI Index figures above 50 indicate expansion

5/5/20

0.7%

March 2020

1.5%

5/11/20

$24.02

April 2020

41.5

(1)

Industrial production fell 15.5% in

April from the month prior

Retail sales fell 8.7% in

March from a month

earlier, largest monthly

decline on record

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20

Week Ended 5/9/20

3.0

33.5 million job losses

over the last month,

the most rapid and

severe amount of job

destruction on recordIMF estimates

that global GDP

will contract

3.0% in 2020

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

6

Quarterly Earnings Recap

Source: Public company filings.

(1) Reflects total retail and wholesale fuel margin.

(2) Reflect U.S. performance.

(3) In-store margins and SSS merchandise comps calculated as weighted average of

all reported in-store / non-fuel product categories.

TravelCenters of America LLC (NasdaqGS: TA)

• “Fuel sales volume increased by 16.9 million

gallons or 3.6%. In addition to increased trucking

activity during the last two weeks of March as

the implications of the COVID-19 pandemic

began to be widely understood we believe these

increases were also driven by our UltraONE

customer loyalty program…..as well as our

commercial sales team and improved market

conditions during the first 2.5 months of 2020.”

• “Non-fuel revenues decreased 3.6% as a result

of a decrease in revenue of the company's

standalone and full service restaurants driven by

government mandated temporary closures….”

Murphy USA Inc. (NYSE: MUSA)

• “Total retail gallons increased 1.2% y/y in Q1,

while volumes on a same store sales basis

decreased 1.0%. Retail fuel margins of 26.9 cpg

were 220.2% higher than the first quarter 2019.”

• “While the drop in crude prices from around $62 a

barrel in January to just below $20 a barrel in late

March was not of the same magnitude as we saw

in 2008, it occurred in a much, much shorter time

frame. The immediate result of this rapid drop

was the generation of total fuel margins of $0.225

per gallon, which in turn led to our record Q1

financial performance.”

Casey’s General Stores, Inc. (NasdaqGS: CASY)(3)

• “Earnings were impacted by lower fuel margin

versus the third quarter last year and higher

operating expenses as we cycled over significant

operating expense reductions in the prior year.”

• “During the quarter in the fuel category, we

experienced a challenging demand environment.

While at the same time, we were comparing

against our strongest margin period from a year

ago. We were pleased with our ability to leverage

our current price optimization and procurement

programs to navigate through this.”

Alimentation Couche-Tard Inc. (TSX: ATD.B)(2)

• “In the U.S., we saw an increase in same-store

merchandise revenue of 3% compared with the

same quarter last year. Across the network, we

continue to see positive benefits driven by the

successful rebranding activities, continued

improvements to our offerings as well as various

initiatives to drive traffic.”

• “U.S., fuel volumes were stable and once again

outperformed the industry with same-store volumes

increasing by 0.1%....and fuel margins continued to

experience positive trends even as we cycled

against an exceptional performance last year.”

Change

3/31/2020 3/31/2019

EPS -$2.23 -$1.58 41.1%

SSS Fuel Gallons 3.6% 2.0% 1.6%

Fuel Margin (CPG) $0.168 $0.161 $0.007

SSS Merch Sales -3.6% 2.7% -6.3%

In-Store Margin 61.9% 61.8% 0.1%

Quarter Ended

Change

3/31/2020 3/31/2019

EPS $2.92 $0.16 1725.0%

SSS Fuel Gallons -1.0% 1.8% -2.8%

Fuel Margin (CPG) $0.225 $0.123 $0.102

SSS Merch Sales 11.8% 5.4% 6.4%

In-Store Margin 15.6% 16.1% -0.5%

Quarter Ended

Change

2/2/2020 2/3/2019

EPS $0.59 $0.54 9.3%

SSS Fuel Gallons 0.1% 0.8% -0.7%

Fuel Margin (CPG) $0.270 $0.294 -$0.024

SSS Merch Sales 3.0% 4.5% -1.5%

In-Store Margin 34.0% 33.7% 0.3%

Quarter Ended

Change

1/31/2020 1/31/2019

EPS $0.91 $1.13 -19.5%

SSS Fuel Gallons -2.0% -3.4% 1.4%

Fuel Margin (CPG) $0.217 $0.221 -$0.004

SSS Merch Sales 3.3% 2.8% 0.5%

In-Store Margin 41.6% 41.7% -0.1%

Quarter Ended

(1)

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

7

8.5x

12.0x

5.6x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

CAPL SUN GLP

13.9%

16.2% 16.1%

0%

3%

6%

9%

12%

15%

18%

SUN GLP CAPL

23.7x

14.0x15.6x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

CASY MUSA ATD.B

10.1x

11.4x

7.5x

3.0x

5.0x

7.0x

9.0x

11.0x

13.0x

15.0x

ATD.B CASY MUSA

10.4x

11.2x

7.4x

3.0x

5.0x

7.0x

9.0x

11.0x

13.0x

15.0x

ATD.B CASY MUSA

88.6% 87.6%

80.3%

20%

40%

60%

80%

100%

MUSA ATD.B CASY

7

Public Companies: Trading Multiples

Convenience Store Comparables (ATD.B, CASY, MUSA)

Current Price as a % of LTM High LTM P/E Ratio

Wholesale Fuel MLP Comparables Trading Multiples (SUN, CAPL, GLP)

EV / LTM EBITDA EV / 2020E EBITDA

EV / LTM EBITDAAnnualized (MRQ) Distribution Yield

Source: Public company filings, Capital IQ, Wall Street equity research.

Note: Share prices current as of 5/14/20.

Median: 88.6%

Median: 10.4x

Median: 10.1x

Median: 16.1%

Median: 8.5x

Median: 15..6x

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

8

20

40

60

80

100

120

140

160

May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20

Alerian MLP Index Sunoco LP Global Partners LP CrossAmerica Partners LP Wholesale MLP Average

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20

S&P 500 Casey's General Stores, Inc. TravelCenters of America LLC

Murphy USA Inc. Alimentation Couche-Tard Inc. C-Store Average

Public Company Share Price Performance

Convenience Store Dividend Adjusted Prior Three Year Share Price Performance (ATD.B, CASY, MUSA, TA)

Wholesale Fuel MLP Dividend Adjusted Prior Three Year Unit Price Performance (SUN, CAPL, GLP)

Note: Price performance is based on dividend-adjusted share pricing. Indexed share price

performance (5/14/17 = 100.0).

Source: Capital IQ.

+27.2%

+18.7%

+30.9%

+55.4%

0.7%

-60.3%

-34.1%

-19.6%

+3.8%

-62.0%

-28.6%

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

9

6.7x

6.8x

6.6x

7.2x

6.6x

6.6x

7.4x

8.4x8.8x

9.2x

10.7x

9.8x

10.9x 11.0x

9.8x

11.5x

11.7x

8.9x

10.4x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

12.0x

13.0x

May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 May-20

10¢

20¢

30¢

40¢

50¢

60¢

70¢

80¢

Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov

2016/17 2017/18 2018/19

2019/20 4 yr. Average

Historical Valuation Multiples & Fuel CPG

Fuel Margins Performance (cpg)

10-Year Convenience Store Historical Trading Multiples (EV/EBITDA)(1)

Quarterly National Retail Gasoline Margins National Retail Fuel Margins – Monthly Trends

Source: S&P Cap IQ; OPIS, and Raymond James equity research.

(1) Median EV/LTM EBITDA multiple for ATD, CASY, CST, MUSA, PTRY, and SUSS. CST added on 4/17/2013 (spin-off from Valero Corporation). MUSA added on

8/19/2013 (spin-off from Murphy Oil Corporation). PTRY removed on 3/17/2015 (acquired by Alimentation Couche-Tard). SUSS removed on 8/30/2014 (acquired by

Sunoco LP). CST removed on 6/28/2017 (acquired by Alimentation Couche-Tard).

10-Year Average: 9.3x

10.4x

5/14/20

TBU

TBU

10¢

15¢

20¢

25¢

30¢

35¢

40¢

Mar Jun Sep Dec

2016 2017 2018 2019 2020 5 yr. Average

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

10

Current Debt Market Outlook

Source: LCD Research.

(1) Middle market defined as companies with less than $50 million in EBITDA.

US Companies Historical Interest Rates

Middle Market Leverage Trends(1)

Non-Investment Grade Bond Yields

4.8x5.0x 4.9x

5.1x5.4x

5.6x5.4x 5.3x

2.0x

3.0x

4.0x

5.0x

6.0x

2013 2014 2015 2016 2017 2018 2019 2020Q1

Average Leverage Ratio

35%

40%

45%

50%

55%

2008 2010 2012 2014 2016 2018

Average LBO Equity Contribution

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

4Q'16

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

4Q'19

1Q'20

BAML High Yield Index

S&P LCD LEVERAGE LOAN 100 INDEX YTM

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

May-19 Aug-19 Nov-19 Feb-20 May-20

Yield To Maturity

5/7/20

7.7%

Leveraged Finance Volume ($BN)

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Pro Rata Institutional High-Yield

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

11

What We Are Reading

“Still Concerned About COVID-19, U.S. Consumers Will Want More From Convenience Stores” | Nielsen

May 18, 2020 – “Last November, Nielsen forecasted that the U.S. convenience channel would grow faster than all other offline channels

over the next five years. When we look at the importance of proximity to our homes and the desire among many to avoid large crowds,

convenience stores have the ability to write their own future. To do so, they need to embrace the opportunity to expand beyond

categories traditionally expected from the channel. Baking staples, for example, aren’t common on the shelves at most C-stores, but

sales of the category have been on an upward trend across the U.S. since the week of March 14, 2020, as consumers settled into

restricted living conditions. The same can be said for household cleaners and fresh meats. As consumers begin to evolve into their new

normal, convenience stores can put themselves into the consideration set for these new need states.”

Read More

“Visa Delays Fuel Dispenser EMV Deadline” | Jackson Lewis, CSP Daily News

May 1, 2020 – “Visa will delay the EMV liability shift deadline for automatic fuel dispensers to accept chip cards from Oct. 1, 2020, to April

17, 2021. The responsibility for fraudulent transactions will shift to fuel retailers that have not upgraded their dispensers to the new

standard. The change in date is in response to letters NACS, PMAA, SIGMA and NATSO sent to the four credit card networks — Visa,

Mastercard, American Express and Discover — that manage the EMV liability shift. The letters requested the October deadline be delayed

given the shelter-in-place or stay-at-home orders because of the coronavirus pandemic.”

Read More

March 24, 2020 – “Among the many change-of-life impacts of the COVID-19 coronavirus pandemic, convenience stores are seeing an

increase in shoppers who typically would go to supermarkets for their grocery needs. Fifteen percent of shoppers said they are more

likely to shop at convenience stores for groceries due to the pandemic, according to a new study conducted by Convenience Store

News’ parent company, EnsembleIQ. Fielded March 13-15, the survey was conducted among 1,001 primary household grocery

shoppers in the United States. Almost half of the respondents (44 percent) say they are stocking up on cleaning supplies, medications,

personal care items and food to keep themselves healthy and prepared for whatever may come next. Regardless of where shoppers

typically shop for groceries, they are now turning to online shopping more often as a result of the pandemic, according to the findings.

Convenience stores also are capturing more shoppers, as are drug and dollar stores. Interestingly, many shoppers are going to

specialty/natural stores more often, too. Besides an increase in grocery shopping at c-stores and other non-supermarket outlets, the

research revealed other behavioral changes, including a significant increase in online ordering and use of out-of-store pickup options.”

Read More

“Exclusive Research Shows Coronavirus Pandemic Is Driving Grocery Shoppers to Convenience Stores” | CS News

“C-store Spending Gets a Boost From Federal Stimulus Checks” | CS News

April 28, 2020 – “A week after consumers reported a decrease in spending at convenience stores, the channel is getting a boost. According

to the latest weekly report from NACS and PDI on how COVID-19 is impacting consumer insights, spending at c-stores rose during the third

week of April compared to the week prior. A notable uptick was seen on April 15 — the date millions of Americans received federal stimulus

payments. While overall spend and trips are still down compared to one year ago, there are signs of improvement, as the decline in year-

over-year spend further slowed from a 12.1-percent decline for the week ended April 12 to a 5-percent decline for the week ended April 19.

This is primarily because trips are not down as much, going from a 28.7 percent decline for the week ended April 12 to a 24.3 percent

decline for the week ended April 19, according to the findings.”

Read More

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed

web sites or their respective sponsors. Raymond James is not responsible for the content of any web site or the collection or use of information regarding

any web site’s users and/or members.

“GasBuddy Issues New Consumer Fuel-Buying Trends Quarterly Report, Reveals Unprecedented 20% Drop in

Gasoline Demand Year-Over-Year Due to COVID-19” | GasBuddy

April 15, 2020 – “GasBuddy, the travel and navigation app that is used by more North American drivers to save money on gas, today

released its first quarterly report examining consumer fuel buying trends, finding that March 2020 fuel demand in gallons purchased

dropped 20% compared to March 2019 as millions of Americans followed stay-at-home orders during the COVID-19 pandemic.

The report examines millions of fuel transactions from Pay with GasBuddy, the first-of-its-kind fuel savings program that gives drivers a

discount on virtually every gallon of gas they will ever pump, used by nearly 750,000 Americans. Along with the 20% decline in gallons

pumped in March year-over-year, additional declines include a 14% drop in fuel transactions and a 28% drop in total payment volume

(TPV). These drops come at a time when gasoline has never been more affordable due to a combination of the massive global surplus

of crude oil and drop in demand.”

Read More

CONVENIENCE STORE INSIGHT QUARTERLY NEWSLETTER

ABOUT RAYMOND JAMES CONVENIENCE STORE & FUEL PRODUCTS DISTRIBUTION INVESTMENT BANKING

• Leading full-service financial advisor to the Convenience Store and Fuel Products Distribution industries

• Experienced and seasoned transaction team

• Dedicated to providing a full range of advisory and capital-raising solutions to industry participants

• Established strong track record of working with the industry’s leading companies and delivering results

• Maintain deep relationships with key equity investors, specialty lenders, sale-leaseback providers and other capital sources

• As M&A specialists, we understand the concerns of buyers and sellers and how to drive value for our clients

• Convenience Store Retailers

• Wholesale Petroleum

Distributors

• Truck Stop and Travel

Center Operators

• Commercial Fuel &

Lube Distributors

• Car Wash Operators

• Alternative Fuel Providers

• Propane Distributors

• Terminal Operators

• Merchandise /

Foodservice Distributors

• Mobile Fueling

• Company Sales

• Acquisition Advisory

• Private Equity Placements

• Debt Capital Raises

• Asset Sales / Divestitures

• Restructurings

• Recapitalizations

• Public Offerings

• Master Limited Partnerships

CLIENT FOCUSADVISORY SERVICES

Convenience Store & Fuel Products Distribution Investment Banking

SCOTT GARFINKEL

Group Head

Nashville, TN // 615.645.6796

scott.garfinkel@raymondjames.com

ROGER WOODMAN

Managing Director

Atlanta, GA // 404.240.6864

roger.woodman@raymondjames.com

DAVID CORBETT

Director

Atlanta, GA // 404.279.7442

david.corbett@raymondjames.com

JOHN VEITH

Director

Nashville, TN // 615.645.6799

john.veith@raymondjames.com

Representative Transactions

12

This material is not to be considered an offer or solicitation regarding the sale of any security. This material was prepared within Raymond James &

Associates’ Investment Banking Department and is for information purposes only. This material is not a product of Raymond James & Associates’

Research Department; recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other

decision. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does

not guarantee future results. Information contained in this report was received from sources believed to be reliable, but accuracy is not guaranteed.

Raymond James & Associates, Inc.., member of New York Stock Exchange / SIPC

Has sold its California and

Wyoming assets to

$408,000,000

Has been acquired byHas sold its retail convenience

store assets to

(formerly Tesoro Corp.)

$535,000,000

Has acquired

2017 Cross Border Deal of

the Year ($500MM - $1B)

Has acquiredHas sold its wholesale fuel and

refined fuel terminal assets toHas sold its c-store and fuel

distribution assets to

Has been acquired by

$289,000,000

OklahomaHas been acquired by

Has sold select assets to