Investor Materials Library

## Key Takeaways - **No refined fuels/refining content**: This transaction is entirely upstream/midstream (Bakken and DJ Basin crude oil gathering, processing, and transportation), with zero mention of refinery throughput, utilization rates, crack spreads, RIN/LCFS exposure, or renewable diesel/SAF economics. - **Midstream cost structure improvement**: Chevron expects ~50% reduction in Bakken unit midstream costs via extended/improved commercial terms with Hess Midstream, which could support sustained or increased upstream crude volumes feeding into downstream/refining systems, but no explicit production or barrel guidance is given. - **Capital allocation signal**: Chevron receives $200 million cash and offloads ~$3.7 billion of Hess Midstream debt (via deconsolidation) in exchange for giving up its GP/ownership stake in Hess Midstream and its DJ Basin crude midstream assets — a deleveraging/portfolio-simplification move rather than a refining capacity or margin-related action. - **One-time financial hit**: Chevron will recognize an estimated $3–4 billion after-tax loss at closing (treated as a special item), reflecting inability to capitalize future midstream cost savings — this is a balance-sheet/earnings event, not a signal on refined product supply or demand. - **ROCE accretion, not volume guidance**: The deal is expected to be accretive to return on capital employed by 0.5% (absolute), framed around capital efficiency in upstream/midstream operations rather than any change to refined fuels output, utilization, or margin capture. - **Timing**: Expected close by year-end 2026, pending regulatory approval and customary conditions — no near-term operational disruption flagged for crude supply to refineries. ## What It Signals for Fuels Markets This is a midstream/upstream restructuring with no direct bearing on refined fuels markets (no throughput, margin, RIN/LCFS, or SAF/renewable diesel data disclosed); its only indirect relevance is that lower Bakken production costs could support continued crude feedstock availability from the Bakken into North American refining systems over time.

## Fuel-Segment Takeaways — Costco 10-K (FY2026) - **Station count & sales mix:** Costco operated 774 gas stations at FY2026 year-end; gasoline represented 11% of total net sales for 2026. - **Gasoline price/volume impact on net sales:** Higher gasoline prices positively impacted net sales by $3,501M (130 bps), driven by a 12% increase in average price per gallon. Gasoline volume growth of 7% added a further $1,913M (71 bps) to net sales. - **Growth driver in warehouse ancillary:** Sales in warehouse ancillary and other businesses (led by gasoline and pharmacy) rose $10,199M, or 20% — outpacing core merchandise category growth of 8%. - **Margin dynamics:** Gasoline (and pharmacy) drove a 19-bps positive contribution to gross margin percentage within warehouse ancillary/other businesses, but gross margin in this segment *as a percentage of its own sales* fell 14 bps, "primarily due to gasoline and pharmacy" — reflecting gasoline's inherently lower margin profile and sales-mix dilution as it grew faster than core categories. - **Strategic/structural commentary:** Management reiterates that gasoline "generally has a lower gross margin percentage and lower SG&A expense" than non-gasoline business, and that rising gasoline prices inflate net sales (pressuring gross margin % on a consolidated basis) while reducing SG&A as a % of net sales — with the inverse true in a declining price environment. Co-branded credit card reward costs tied to higher gasoline sales also modestly pressured core category margins. - **Climate/regulatory risk flagged:** Risk factors cite exposure to climate-related regulation and the transition to low-carbon/alternative-fuel vehicles as a potential headwind to gasoline demand and compliance costs. **Signal for fuels markets:** Costco's results confirm gasoline retailing remains a high-volume, low-margin traffic driver whose profitability is highly sensitive to pump-price inflation/deflation (margin dilution vs. SG&A leverage trade-off), with the retailer's continued station footprint and volume growth (+7% gallons) suggesting resilient consumer fuel demand even as long-term EV/regulatory transition risk is explicitly acknowledged.

## Takeaways - **Capital raise structure:** Delek US (NYSE: DK) intends to offer $400.0 million in convertible senior notes due November 1, 2031, with a 13-day, $60.0 million over-allotment option for initial purchasers (potential total: $460.0 million), sold via Rule 144A private placement to qualified institutional buyers. - **Use of proceeds — deleveraging signal:** A portion funds capped call transactions (dilution offset); the remainder is earmarked for general corporate purposes, explicitly including **partial repayment of the Term Loan Credit Facility** (principal, accrued interest, fees/expenses) — a balance-sheet optimization move rather than growth capex, indicating no signaled change to refining/logistics investment plans. - **No operational guidance changes:** The release contains no updates to throughput, utilization, capture rates, margins, renewable diesel/SAF economics, or RIN/LCFS exposure — this is purely a financing/liability-management transaction. - **Refining footprint reference point:** Document reaffirms combined nameplate crude throughput capacity of **302,000 bpd** across Tyler and Big Spring (TX), El Dorado (AR), and Krotz Springs (LA) refineries — unchanged from prior disclosures, no capacity additions or idling mentioned. - **Logistics ownership stake:** Delek and subsidiaries hold ~58.0% of Delek Logistics Partners, LP (NYSE: DKL) as of August 14, 2026, unchanged, with no new logistics asset drops or midstream capex commitments tied to this offering. - **Redemption/conversion mechanics:** Notes are non-callable until November 6, 2029 (absent a cleanup redemption below 10% outstanding), and conversion terms (rate, interest) remain unset pending pricing — standard convertible structure with no embedded commodity-linked or fuels-market triggers. ## Market Signal This is a balance-sheet management transaction — refinancing near-term term-loan debt into longer-dated convertible paper — with no indication of capacity changes, margin guidance, or renewable fuels strategy shifts, suggesting Delek's operational refining/logistics outlook remains steady while management prioritizes financial flexibility ahead of potential capex or macro refining-margin volatility.

## Key Takeaways - **Capital raise details**: Delek US priced $400.0 million of 0.00% convertible senior notes due November 1, 2031 (with a 13-day, $60.0 million upsize option), priced September 24, 2026, closing September 29, 2026. Notes carry zero coupon and no principal accretion. - **Use of proceeds — deleveraging signal**: A portion funds capped call transactions (anti-dilution hedge); the remainder goes to "general corporate purposes," explicitly including **partial repayment of the Term Loan Credit Facility** (principal, accrued interest, fees). This is a liability-management move, not new capex or growth funding. - **Conversion economics**: Initial conversion price ~$85.31/share (11.7219 shares per $1,000 note), a 27.5% premium over the September 24, 2026 close of $66.91. Capped call cap price set at ~$117.09/share (75% premium), limiting dilution up to that level. - **No operational disclosures**: The release contains **no throughput, utilization, capture rate, crack spread, renewable diesel/SAF, or RIN/LCFS data** — this is purely a financing/capital-markets exhibit, not an operating update or guidance revision. - **Refining footprint reminder**: Company reiterates combined nameplate crude throughput capacity of 302,000 bpd across Tyler, Big Spring, El Dorado, and Krotz Springs, and ~58.0% ownership (incl. GP interest) in Delek Logistics Partners (DKL) as of August 14, 2026 — unchanged from prior disclosures. ## Market Signal This is a balance-sheet/financial-flexibility transaction — using cheap convertible debt to term out and reduce term-loan borrowings — rather than any indication of refining margin strength, throughput changes, or renewable fuels strategy, so it should be read as a funding/liquidity event with no direct read-through to near-term refined product supply or crack spreads.

## Fuel-Segment Takeaways - **Fuel sales surged on price, not volume**: Supermarket fuel sales rose 25.6% in Q2 2026 ($4,105M vs. $3,269M) and 23.1% for the first two quarters ($9,367M vs. $7,609M), driven almost entirely by average retail fuel price increases of 25.3% (Q2) and 23.9% (YTD) rather than gallon growth. - **Fuel remains a drag on margin mix**: Management explicitly notes fuel sales "have a very low FIFO gross margin rate" and "very low OG&A rate" compared to non-fuel sales — increased fuel sales mechanically lowered both consolidated gross margin (22.4% vs. 22.5% Q2) and OG&A rate (17.2% vs. 17.6% Q2), a mix effect rather than a fuel-margin deterioration signal. - **Fuel contributed positively to operating profit**: Increased fuel operating profit was cited as a factor boosting operating profit as % of sales for the first two quarters of 2026 (+18 bps), and higher fuel earnings helped drive YTD adjusted EPS growth (+6%). - **Identical sales metrics exclude fuel**: All core identical-sales reporting (0.2% Q2, 0.6% YTD) strips out fuel entirely, reflecting continued volatility/distortion from fuel pricing in comparable-sales analysis. - **No station-count or fuel-center-specific disclosures**: The filing provides no data on number of fuel centers, fuel gallons sold, or membership/loyalty-linked fuel discount dynamics (e.g., fuel points redemption trends). **Signal for fuels markets**: Kroger's results reflect fuel retail price inflation (~24-25% YoY) flowing through to a major U.S. supermarket fuel retailer's topline, with fuel-related earnings functioning as a modest tailwind to profitability even as fuel's inherently thin margins dilute blended retailer profitability ratios.

## Key Takeaways - **Board appointment, not an operational update**: This filing announces Matt Audette (President & CFO of LPL Financial; former CFO of E*TRADE) joining Valero's Board and Audit Committee effective September 18, 2026. No throughput, margin, capture rate, or guidance data is disclosed in this release. - **Refining footprint (boilerplate, unchanged)**: Valero operates **14 petroleum refineries** across the U.S., Canada, and U.K. with combined throughput capacity of **~3.0 million bpd** — no change in stated capacity versus prior disclosures. - **Renewable diesel/SAF capacity (boilerplate, unchanged)**: Diamond Green Diesel JV has renewable diesel/SAF production capacity of **~1.2 billion gallons/year** in the U.S. Gulf Coast. No updated economics, feedstock costs, or blender's tax credit/45Z commentary provided. - **Ethanol segment (boilerplate, unchanged)**: 12 ethanol plants in the U.S. Mid-Continent with combined capacity of **~1.7 billion gallons/year** — capacity figure only, no production or margin data. - **No RIN/LCFS, capital allocation, or guidance signals**: The release contains no commentary on RIN prices, LCFS credit exposure, capex plans, buybacks/dividends, or forward guidance changes. - **Governance signal**: Adding a second public-company CFO with deep financial/risk/compliance background to the Audit Committee suggests continued board-level emphasis on financial discipline and risk oversight, but this is not a market-moving operational disclosure. **Market signal**: This filing is a governance/personnel announcement with no new operational, margin, or regulatory data — it carries no direct implications for refined fuels, renewable diesel, or RIN/LCFS market dynamics.

# Couche-Tard Q1-2027 Investor Presentation: Refined Fuels Market Takeaways - **Volume softness, margin strength**: Same-store fuel volumes declined in the US (-1.6%) and Europe/Other Regions (-4.3%) in Q1-2027, while Canada grew modestly (+1.1%). Despite volume pressure, road transportation fuel (RTF) gross margins expanded: US margin hit **52.61¢/gallon** in Q1-FY27 (vs. 44.00¢ prior-year comp for FY26), Canada **16.79 CA¢/liter**, Europe **11.34¢/liter** — indicating retail fuel margin capture is offsetting volume erosion. - **Breakeven advantage widening**: ACT's US RTF breakeven margin was **20.33¢/gallon** (FY26) vs. the industry bottom-quartile breakeven trending toward ~33¢/gallon by FY2025 — management frames this gap as "widening" due to supply chain and procurement scale, a structural cost advantage over smaller independents. - **Guidance: fuel profit growth pegged to CPI, not volume**: FY2026-FY2030 guidance targets **Total RTF Gross Profit growth = CPI** (not unit growth), reflecting a strategy of price/margin management over volume chasing — consistent with a maturing, EV-pressured fuel retail environment. Total fuel gallons sold were 15.8 billion in FY2026 with $56.2B in fuel revenue and $7.3B RTF gross profit. - **No upstream/refining or RIN/LCFS exposure**: This is a pure downstream retailer — no owned refining, renewable diesel/SAF production, or direct RIN/LCFS credit generation disclosed. EV/e-mobility (charging) is treated as the primary "energy transition" lever rather than biofuel blending economics; European transaction growth from EV charging is guided at **+40% CAGR

## Key Takeaways - **Capital allocation, not operations**: This filing is purely financial engineering (debt refinancing) — it contains no throughput, utilization, capture rate, margin, or RIN/LCFS data. All figures relate to note pricing and refinancing mechanics. - **Refinancing the 2030 notes**: PBF Holding is issuing $500M of 0% exchangeable notes due 2032 (upsizable to $550M via a 13-day $50M greenshoe) with proceeds earmarked to repay/redeem its outstanding **7.875% Senior Unsecured Notes due 2030** — a meaningful reduction in cash interest expense (from 7.875% coupon to 0% coupon) that improves free cash flow available for capex/refining reinvestment or shareholder returns. - **Balance sheet cost structure shift**: Net proceeds (~$485.0M, or ~$533.6M with full over-allotment) will fund $25.2M for capped call transactions plus the bulk of the 2030 Notes payoff, effectively swapping high-coupon secured refining-sector debt for a zero-coupon convertible-like instrument — reduces near-term interest burden but introduces future equity dilution risk (exchange rate 10.3306 shares/$1,000, exchange price ~$96.80, a 37.5% premium to the $70.40 September 14, 2026 share price). - **Dilution mitigation via capped calls**: Capped call structure (cap price $123.20, 75% premium to spot) signals management's intent to limit equity dilution/cash outflow upon conversion — an indicator PBF is trying to preserve balance-sheet flexibility for future capex or buybacks rather than telegraph major expansion plans. - **No guidance revision or operational disclosure**: No updates to refining segment guidance, renewable diesel/SAF capacity (including the 50%-owned St. Bernard Renewables JV), or crack spread/capture assumptions are included; the filing is a standalone financing press release under Rule 135c. ## Market Signal This is a balance-sheet optimization move (extending maturities to 2032, cutting cash coupon to zero) rather than a signal about refining fundamentals, margins, or renewable fuels economics — investors should look to PBF's next quarterly filing for operational/RIN-LCFS/capture-rate updates.

## Key Takeaways - **Hydrogen supply chain conversion at Torrance**: PBF LLC closed (Sept 9, 2026) on the purchase of two hydrogen production plants previously under operating lease, paying $44.8M cash plus a ~$342.2M promissory note (guaranteed by PBF Energy Inc.), converting a leased/tolled hydrogen supply into owned refinery infrastructure — hydrogen being a critical input cost for hydrotreating/hydrocracking units that determine sulfur compliance and clean-fuel yields. - **Balance sheet shift, not operational guidance**: The transaction derecognizes the prior operating lease liability and right-of-use asset, replacing a lease obligation with ~$342M of funded debt — a capital structure change rather than a signal on run rates, utilization, or capture. - **No throughput, margin, or crack spread commentary**: The filing contains no update on refinery utilization, crack capture, or Torrance-specific operating performance. - **No RIN/LCFS/SAF/renewable diesel disclosure**: This exhibit is silent on RIN obligations, LCFS credit exposure, or renewable diesel/SAF economics — none of PBF's typical green fuels metrics are addressed here. - **Liquidity expansion signal**: PBF Holding is negotiating to extend its Revolving Credit Facility maturity to 2031 and raise capacity to $3.5–$4.0 billion (from current levels), expected to close by end of Q3 2026 — indicating management is building balance sheet flexibility, likely to fund ongoing capex (including hydrogen infrastructure), turnarounds, or working capital swings. ## Market Signal This filing signals a defensive, balance-sheet-focused move — internalizing hydrogen supply at Torrance to reduce counterparty/lease risk while simultaneously expanding liquidity capacity — rather than any change in refined product margin outlook, throughput guidance, or renewable fuels economics.

## Key Takeaways - **Financing action, not operational disclosure**: PBF Holding Company LLC (indirect subsidiary of PBF Energy) intends to offer $500 million in senior unsecured exchangeable notes due January 15, 2032, with a 13-day option for initial purchasers to buy an additional $50 million (potential total: $550 million). - **Debt refinancing signal**: Net proceeds are earmarked to fund the cost of capped call transactions, with the remainder plus available cash used to repay or redeem all outstanding **7.875% Senior Unsecured Notes due 2030**. This indicates PBF is proactively refinancing higher-coupon debt via a lower-cost exchangeable structure, a balance-sheet optimization move rather than a growth/capex signal. - **No operational metrics disclosed**: The document contains no data on refinery throughput, utilization rates, capture rates, crack spread margins, renewable diesel/SAF volumes or economics, or RIN/LCFS credit exposure — this is purely a capital markets/financing press release under Rule 135c. - **Structural terms**: Notes are non-callable until January 20, 2030 (absent a cleanup redemption if <10% of notes remain outstanding), with redemption thereafter permitted only if PBF's stock trades at ≥130% of the exchange price. Exchange settlement can be cash, stock, or a combination at the Issuers' discretion, capped via the capped call transactions to limit dilution. - **No parent guarantee**: Notably, PBF Energy Inc. (the NYSE-listed parent) does not guarantee the notes — only certain PBF Holding subsidiaries that already guarantee existing senior notes are guarantors, keeping the structural liability at the operating subsidiary level. ## Market Signal This filing signals a routine liability-management/refinancing transaction to extend maturities and lower interest costs on PBF's balance sheet, with no new information on refining throughput, margins, or renewables economics that would move refined fuels market fundamentals.

## Key Takeaways - **No operational or financial disclosures**: This 8-K exhibit is exclusively an administrative announcement regarding a stock exchange listing transfer (NYSE → Texas Stock Exchange), effective October 5, 2026. It contains no data on throughput, utilization, capture rates, margins, or guidance. - **No renewable fuels or RIN/LCFS content**: The filing does not address renewable diesel, SAF economics, capacity, or RIN/LCFS exposure in any capacity. - **No capital allocation signals**: There is no mention of capex, distributions, buybacks, or balance sheet actions tied to this transfer. - **Business description reiterated (unchanged)**: The filing repeats standard descriptive figures — ~14,000 miles of pipeline, 170+ terminals, >15 billion gallons distributed annually, ~11,000 retail locations across 33 countries/territories — but these are boilerplate "About Sunoco" figures, not new operational metrics or guidance updates. - **Corporate/ticker mechanics only**: SUN and SUNC will retain identical ticker symbols on TXSE; no unitholder action is required, and the transfer is framed as aligning with SUN/SUNC's Texas-based operational footprint. ## Market Signal This filing is not fuels-market-relevant news: it signals only an exchange-listing/venue change for SUN and SUNC's common units, and refined-products traders should not draw any inference about throughput, margins, or renewable fuels economics from it.

## Fuel-Segment Extract: Kroger 2Q26 (period ended Aug 15, 2026) - **No fuel gallon volumes, fuel comps, or station count data disclosed** in this release — all identical sales metrics (0.2% Q2, 3.4% prior year) are reported *excluding* fuel. - **Fuel cited as a margin mix headwind**: overall gross margin declined to 22.4% (from 22.5%) partly due to "the mix effect of higher fuel sales" alongside higher shrink and transportation costs. - **Fuel called out as an EPS tailwind**: CFO David Kennerley attributed adjusted EPS growth (+5%) in part to "strong pharmacy and fuel performance," alongside cost savings and eCommerce profitability gains — but no margin rate or dollar figure was quantified. - **Total sales including fuel rose to $34.6B from $33.9B**, while sales excluding fuel (and adjusting for Vitacost sale/fulfillment center exits) grew just 0.1%, implying fuel sales dollars were a meaningful contributor to the topline increase, though volume/price split is not broken out. - No commentary on membership-fuel programs, fuel center openings/closures, or fuel-specific capital allocation. **Signal for fuels markets:** Kroger's fuel business appears to have benefited from higher fuel sales dollars (likely price-driven given no volume disclosure) and contributed positively to profitability, but the company provides no granular fuel margin, gallon, or station data — limiting this release's utility as a fuels-market indicator beyond confirming fuel remained a net-positive, low-margin-mix drag on retail gross margin.

# CVR Energy (CVI) — Refined Fuels Takeaways from Sept 2026 Investor Presentation - **Throughput/utilization**: Total nameplate crude capacity 206,500 bpd (Coffeyville 132,000 bpd + Wynnewood 74,500 bpd, complexity 10.8); TTM throughputs ~215,000 bpd with 97% liquid volume yield and 92% gasoline/distillate yield. Five-year average utilization is 90% (incl. turnarounds); **no planned Petroleum Segment turnarounds in 2026** (next ones: Wynnewood 2027, Coffeyville 2028), implying sustained high run rates through year-end. - **Crack spreads improved sharply but capture rates fell**: Group 3 2-1-1 crack averaged **$33.34/bbl in 1H26 vs. $20.89/bbl in 1H25**, yet CVR's adjusted margin capture dropped to **26% in 1H26 from 46% in FY25**, driven by higher RIN prices, realized derivative losses, and steeper crude backwardation — margin capture, not crack spreads, is the bottleneck. - **RIN/SRE exposure remains material**: Company is "diligently pursuing" Small Refinery Exemptions at Wynnewood; SREs granted in Aug 2025 and Aug 2026 would have added ~6% to average margin capture over 2021–2025, underscoring how RFS compliance costs are a persistent drag on realized margins. - **RDU reversion signals hydrocarbon-first stance for now**: Wynnewood's Renewable Diesel Unit has been converted back to hydrocarb

## Casey's General Stores (CASY) — Q1 FY2027 10-Q: Refined Fuels Takeaways - **Fuel volume/throughput:** Gallons sold rose 2.5% YoY to 934.2M (from 911.8M), though same-store gallons *declined* 0.3% — growth came entirely from net new stores (64 more locations, incl. 12 acquisitions), not underlying demand strength. - **Margin capture — historically elevated:** Fuel margin (revenue less COGS ex-D&A) was 47.8 cents/gallon vs. 41.0 cents/gallon a year ago, despite the *percentage* margin compressing to 12.0% of fuel revenue (from 13.7%) as retail price/gallon jumped 33.0%. Management explicitly flags this as "historically higher than average" for the company and industry, cautioning it can swing unpredictably. - **RIN exposure quantified:** Recognized $25.7M from 10.9M RINs monetized in Q1 FY27 vs. $6.7M from 6.1M RINs a year earlier — RIN volume/value nearly doubled/quadrupled, but net impact to fuel margin was described as "minimal" since higher RIN revenue was offset by higher RIN-related costs. Company early-adopted ASU 2026-02 (environmental credits), now marking RINs to fair value (Level 1) as noncompliance environmental credits; balances remain immaterial to the balance sheet. - **Wholesale/logistics footprint:** Wholesale fuel activity comprises ~3% of total revenue; Casey's self-distributes the majority of its fuel via its own Waco, TX terminal and continues hedging bulk inventoried fuel (pipeline/terminal) with futures — derivative positions remain immaterial as of quarter-end. - **EV build-out still marginal:** Only 294 charging ports across 68 of 2,959 stores (14 of 19 states) — company reiterates Midwest EV demand lags coastal markets, signaling no near-term cannibalization risk to gasoline/diesel volumes. - **Capital allocation tilts toward fuel infrastructure/growth:** Capex jumped to $194.4M (from $110.0M) and acquisition spend to $43.9M (from $9.5M) alongside a share buyback program expansion from $400M to $1.0B (Board authorized June 2026), signaling confidence in continued fuel-retail footprint growth even amid normalizing margins. **Signal for fuels markets:** Casey's results reflect a retail fuel margin environment that remains unusually rich (47.8¢/gal) even as percentage spreads compress with rising pump prices, while RIN monetization is scaling in volume

## Key Takeaways — Casey's General Stores Q1 FY2027 (Fuel-Relevant Metrics) - **Fuel margin expansion drove profit growth**: Fuel margin (excluding credit card fees) rose to **47.8¢/gallon** from **41.0¢/gallon** YoY (+16.6%), pushing total fuel gross profit up **19.6%** to **$446.9 million** despite roughly flat volumes — indicating retail fuel capture/spread strength outpaced volume growth this quarter. - **Same-store fuel demand softened**: Same-store gallons sold declined **0.3%** YoY (vs. +1.7% in the prior-year quarter), though positive on a two-year stack (+1.4%). Total fuel gallons sold still grew **2.5%** to **934.2 million gallons**, driven entirely by net store count growth (64 more stores YoY, including the Fikes acquisition), not underlying demand. - **No renewable diesel/SAF or RIN/LCFS exposure disclosed**: As a fuel retailer (not a refiner or producer), Casey's has no stated renewable fuel production capacity, RIN generation/obligation, or LCFS credit exposure in this release — fuel economics here reflect retail marketing spread only, not refining/blending economics. - **Guidance unchanged**: FY2027 outlook reaffirmed — same-store fuel gallons expected in a **-1% to +1%** range, consistent with the current quarter's softness; management flagged no shift due to macro fuel demand trends. - **Capital allocation favors expansion over fuel infrastructure specifics**: Store count grew to **2,959** (net +15 in-quarter, including 12 acquired sites), with capex guidance of **~$800 million** for FY2027 and continued M&A-driven growth (target **120+ new stores**), suggesting continued investment in fuel-dispensing retail footprint amid integration of the Fikes acquisition (ahead of schedule per CEO commentary). - **Liquidity/returns steady**: $1.4B available liquidity ($524M cash), $45.6M in buybacks this quarter, $973M remaining authorization, and a raised-looking but flat $0.65/share dividend — signaling no acute capital strain tied to fuel margin volatility. **Market signal**: Casey's results show retail fuel marketing margins remain historically elevated even as underlying same-store gasoline demand is flat-to-slightly-negative, reinforcing that convenience-fuel retailers are capturing wider spreads in a volatile wholesale fuel environment rather than benefiting from volume growth — a dynamic more reflective of retail margin resilience than refined product demand strength.

## Fuel-Segment Extract — Walmart Inc. (WMT) 10-Q, Q2 FY2027 (period ended July 31, 2026) - **Sam's Club U.S. fuel sales surged**: "Fuel and other" category net sales rose to $4,192M (Q2) from $3,064M YoY (+37%), and $7,635M (6mo) from $5,915M YoY (+29%), reflecting **higher fuel prices and volumes**. - **Fuel-driven comp-sales boost**: Higher fuel sales added **+4.2 pts** to Sam's Club U.S. comparable sales in Q2 (vs. a *drag* of -2.6 pts in the prior-year quarter) and **+3.2 pts** for the six-month period (vs. -2.6 pts prior year) — a swing of roughly 680–580 bps YoY in fuel's comp contribution. - **Fuel-related cost scale**: Total fuel-related cost of sales and opex for Sam's Club U.S. was **$3.4B** (Q2) and **$6.1B** (6mo), up from $2.3B and $4.5B YoY, respectively — confirming fuel volume/price growth flowed through both revenue and cost lines. - **Ex-fuel vs. including-fuel divergence**: Sam's Club U.S. net sales growth excluding fuel was only **+4.5%** (Q2) vs. **+8.8%** including fuel, and **+4.2%** vs **+7.5%** for six months — fuel accounted for roughly half of headline growth. - **Opex leverage from fuel**: Management attributed part of the **26 bps (Q2) / 13 bps (6mo)** decrease in Sam's Club U.S. operating expenses as a % of net sales to "higher fuel sales" (fuel's low opex-intensity dilutes the ratio), partially offset by tech investment and insurance claims costs. - **Walmart U.S. fuel impact modest but positive**: Fuel added **+0.4 pt** (Q2) and **+0.3 pt** (6mo) to Walmart U.S. comparable sales in FY2027, reversing a small **-0.1 pt** drag in both prior-year periods. - No station-count, network-expansion, or fuel-margin-rate commentary was disclosed; forward-looking risk factors flag continued exposure to "commodity prices... of oil and natural gas" and "the price of gasoline and diesel fuel" as an ongoing volatility factor for Sam's Club U.S. results. **Signal for f

## Fuel-Segment Extract: BJ's Wholesale Club 10-Q (Q2 FY2026, period ended Aug 1, 2026) - **Station count:** 206 gas stations across 22 states as of August 1, 2026 (down from BJ's operating alongside 267 clubs; company had 255 clubs a year ago, implying net club growth but gas station count not broken out historically in this filing). - **Gasoline sales mix rising sharply:** "Gasoline and Other" grew to **25% of net sales in Q2 FY26** (vs. 18% in Q2 FY25) and **23% for the 26-week period** (vs. 18% prior year) — the largest categorical mix shift in the disclosure. - **Gasoline comparable sales:** **+8.8%** for the thirteen weeks and **+6.9%** for the twenty-six weeks ended Aug 1, 2026, driven by both **higher average retail price-per-gallon** and **increased comparable gallons sold** — no absolute gallon figures disclosed. - **Margin strategy:** Company states it "generally attempt[s] to maintain a fairly stable gross profit per gallon on an absolute dollar basis," so rising retail pump prices lift net sales dollars but are framed as largely margin-neutral per-gallon; volatile crude/wholesale swings cause temporary "margin contraction or expansion" versus competitors depending on procurement timing. - **Membership-fuel linkage/rewards economics:** Club+ members get a **5¢/gallon** discount at BJ's Gas; BJ's One/One+ co-branded Mastercard holders get up to a **15¢/gallon** discount when paying at BJ's gas locations — reinforcing fuel as a membership-retention lever tied to card royalty/rewards revenue (recognized via royalty revenue and co-brand deferred revenue balances in Note 3). - **Cost structure:** "Other segment expenses" (which include gasoline cost of revenue) rose from $911.5M to $1.43B YoY in the quarter and from $1.79B to $2.61B YoY for the half, consistent with higher wholesale fuel costs flowing through cost of sales alongside higher retail pump prices. **Signal for fuels markets:** BJ's data point to firmer retail pump prices and higher fuel volumes through mid-2026 versus the prior-year period, with the retailer maintaining stable per-gallon dollar margins — indicating resilient consumer fuel demand at warehouse-club price points rather than a margin-driven earnings story.

- **Downstream earnings exploded to $4.9B** ($2.4B US + $2.5B international) vs $737M a year ago — the margin capture behind this summer's record crack spreads, on total earnings of $12.1B (21% ROCE, Brent averaging $104). - **US refineries ran flat-out**: record crude unit throughput of 1.07 MMbpd at >97% utilization — yet US refined product sales fell 4% on weaker gasoline demand. This is a margin story, not a volume story. - **The Middle East conflict is visibly cutting international product supply**: international refinery inputs down 10%, product sales down 13% on supply disruptions. - **Retreating from Asian downstream**: sold Hong Kong fuels business; agreed to sell its 50% of Singapore Refining Company plus downstream assets across Vietnam, Australia, Indonesia, the Philippines, and Malaysia (closing 2027). - Record $8.4B debt paydown in the quarter; $3B structural cost target hit six months early; Hess synergies at $1.5B run-rate. **Signal for fuels markets**: a major running US refining at physical limits into record margins while shedding international downstream — more evidence that usable product supply, not crude, is the binding constraint.

- **Energy Products (refining) adjusted earnings hit $4.1B for the quarter** — first-half 2026 at $6.9B vs $2.2B in all of 1H 2025, a tripling driven by product margins. - **Record second-quarter diesel production** (best in their data back to 2014) on strong US Gulf Coast utilization — the industry's max-distillate shift, quantified. - Product placement flexed around the Middle East disruptions ($900M of YTD earnings impacts, plus an $884M non-US Energy Products impairment); energy products sales rose to 5.7 MMbpd. - Total: $14.5B GAAP / $14.7B adjusted earnings, $17.2B free cash flow, $9.4B returned to shareholders in the quarter. - **Corporate note**: completed its redomiciliation July 1 — ExxonMobil Holdings Corporation (Texas) replaced the New Jersey parent; same ticker, new SEC registrant. **Signal for fuels markets**: the largest US refiner by complexity is running record diesel output into a supply-constrained market and still can't soften cracks — confirmation of how tight distillate supply actually is.

- **Fuel margin expansion all the way downstream**: gasoline distribution product margin jumped to $175.0M from $137.9M on higher cents-per-gallon margins — distributors are capturing spread, not just passing through higher prices. - Adjusted EBITDA +51% to $148.2M; net income nearly tripled to $71.0M; distributable cash flow up 78% to $92.6M. - Wholesale gasoline/blendstocks margin rose to $78.4M (from $58.8M) on favorable gasoline conditions; distillates/residual margin slipped to $28.1M; bunkering strengthened. - Total sales of $6.8B vs $4.6B — almost entirely price-driven, mirroring the commodity move. - Station operations margin flat (~$70M) — the c-store side is steady while the fuel side swings. **Signal for fuels markets**: price volatility is profit for the distribution layer — Northeast rack-to-retail spreads are wide, and the margin expansion GLP shows suggests pump prices have room to keep rising even if wholesale stabilizes.

- **Gasoline was a major comp driver**: US comparable sales rose 9.4% reported but only 6.8% excluding gas prices and FX — fuel-price inflation contributed roughly 2.6 points, one of the largest gas contributions to comps in years (quarter ended May 10, before the summer spike accelerated). - Fiscal Q3 (12 weeks): net sales $69.2B (+11.6%), net income $2.19B ($4.93/share); 931 warehouses, 639 in the US. - The release gives no gallon or fuel-margin detail (Costco reserves that for the earnings call) — but the reported-vs-adjusted comp gap is the cleanest public marker of member fuel spending. - Membership fees +10.7% to $1.37B — the model that lets Costco run fuel at thin margins as a traffic driver is compounding. **Signal for fuels markets**: high-volume discount retail is passing higher fuel prices straight into reported sales while using cheap gas as a membership draw — expect Costco to stay the price floor in its markets. Fiscal Q4 (report due late September) will capture the full summer price surge.

- **Benicia is out**: buried in a slide-34 footnote — the Benicia refinery's processing units were idled in April 2026, leaving Wilmington (85 kbpd crude) as Valero's only California refinery. Portfolio now stands at 14 refineries, 3.0 MMbpd throughput / 2.5 MMbpd crude capacity, 61% concentrated on the Gulf Coast. - **SAF is live at scale**: DGD Port Arthur SAF project (completed 4Q24) can upgrade up to 235M gal/yr — half the plant's renewable diesel output — to SAF for $315M total cost, expected to clear the 25% after-tax IRR hurdle. Total DGD platform: 1.22B gal/yr. - **Renewable diesel is self-funded and best-in-class**: DGD cumulative EBITDA of $3,005M (VLO share) now exceeds cumulative capex of $2,071M. 2025 adjusted EBITDA of $0.59/gal led all RD peers ($0.21 peer average; some peers negative) — though well below the $2+/gal LCFS-era peaks of 2021–22. - **Refining discipline over growth**: no new capacity — capital goes to optimization (St. Charles FCC project, $230M, 2H26 completion, +15 kbpd resid processing and +6 kbpd alkylate) at a 25% IRR hurdle. Lowest cash opex/bbl vs PSX/MPC/DINO/PBF; 2025 was their best-ever year for safety and mechanical availability. - **Cash returned, not reinvested in barrels**: $4.0B returned in 2025 (67% payout), share count down 46% since 2012, dividend at $4.80 annualized for 2026, ~$1.4B sustaining capex. - **Export lean**: >1.5 MMbpd ratable wholesale supply (>50% of light products), 349 kbpd exports in 2025, with Latin America taking 75% of US product exports as regional refining runs decline. **Signal for fuels markets**: America's largest independent refiner is shrinking West Coast supply, capping domestic capacity growth in favor of buybacks, and steering its renewables platform toward mandated SAF markets — a structurally tightening posture for US refined product supply, especially California gasoline and diesel/jet.