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Leases | 9 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
Leases | 4. Leases As of September 30, 2025, the Company leased 962 of its retail convenience stores, 470 dealer locations, 154 cardlock locations, former store locations, and certain office and storage spaces, including land and buildings in certain cases. Most of the lease agreements are for long-term periods, ranging from 15 to 20 years, and generally include several renewal options for extension periods for five to 25 years. Additionally, the Company leases certain store equipment, office equipment, automatic tank gauges and fuel dispensers. The components of lease cost recorded on the condensed consolidated statements of operations were as follows:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
|  | (in thousands) |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation of right-of-use assets |  | $ | 2,544 |  |  | $ | 2,471 |  |  | $ | 7,448 |  |  | $ | 7,453 |
Interest on lease liabilities |  |  | 4,105 |  |  |  | 4,302 |  |  |  | 12,499 |  |  |  | 12,955 |
Operating lease costs included in site operating expenses |  |  | 48,494 |  |  |  | 48,105 |  |  |  | 144,590 |  |  |  | 142,515 |
Operating lease costs included in general and administrative expenses |  |  | 434 |  |  |  | 525 |  |  |  | 1,449 |  |  |  | 1,593 |
Lease cost related to variable lease payments, short-term leases and leases of low value assets |  |  | 479 |  |  |  | 611 |  |  |  | 1,614 |  |  |  | 1,850 |
Right-of-use asset impairment charges and loss (gain) on disposals of leases |  |  | 361 |  |  |  | 856 |  |  |  | 2,219 |  |  |  | 1,586 |
Total lease costs |  | $ | 56,417 |  |  | $ | 56,870 |  |  | $ | 169,819 |  |  | $ | 167,952 |
In connection with the closing of the Company’s 2021 acquisition of 60 ExpressStop convenience stores, a real estate investment fund acquired fee simple ownership of 25 of the acquired sites, and the Company entered into a lease agreement for these locations under customary terms. The real estate fund granted the Company an option to purchase the fee simple ownership in these sites following an initial four-year period for a purchase price agreed upon between the parties. For accounting purposes, this transaction was originally treated as a failed sale-leaseback and resulted in recording a financial liability of approximately $44.2 million at that time. In the second quarter of 2025, the Company chose not to exercise its purchase option. The expiration of this purchase option was accounted for as a sale-leaseback, resulting in the removal of such financial liability and related fixed assets, and the recording of a gain in the second quarter of 2025 of approximately $20.8 million included in other expenses (income), net on the condensed consolidated statement of operations. The Company recorded right-of-use assets and operating lease liabilities of approximately $34.5 million in connection with the remaining lease term for these sites. In connection with the 2024 acquisition of the 21 SpeedyQ Markets convenience stores, the Company leased one site from the seller, for which the seller received a put right to require that the Company purchase such site, and the Company received a call right to require that the seller sell such site, both for a purchase price of $7.0 million, subject to terms set forth in the purchase agreement governing the SpeedyQ Markets acquisition. In June 2025, the seller exercised its put right, and the Company is expected to complete the acquisition of the site in the first quarter of 2026. Supplemental balance sheet data related to leases was as follows:
|  | September 30, 2025 |  |  | December 31, 2024 |
|  | (in thousands) |
Operating leases |  |  |  |  |  |
Assets |  |  |  |  |  |
Right-of-use assets under operating leases |  | $ | 1,360,130 |  |  | $ | 1,386,244 |
Liabilities |  |  |  |  |  |
Operating leases, current portion |  |  | 76,604 |  |  |  | 71,580 |
Operating leases |  |  | 1,390,194 |  |  |  | 1,408,293 |
Total operating leases |  |  | 1,466,798 |  |  |  | 1,479,873 |
Weighted average remaining lease term (in years) |  |  | 13.3 |  |  |  | 13.7 |
Weighted average discount rate |  |  | 7.7 | % |  |  | 7.7 | %
Financing leases |  |  |  |  |  |
Assets |  |  |  |  |  |
Right-of-use assets |  | $ | 214,589 |  |  | $ | 220,018 |
Accumulated amortization |  |  | (68,845 | ) |  |  | (62,019 | )
Right-of-use assets under financing leases, net |  |  | 145,744 |  |  |  | 157,999 |
Liabilities |  |  |  |  |  |
Financing leases, current portion |  |  | 12,846 |  |  |  | 11,515 |
Financing leases |  |  | 200,151 |  |  |  | 211,051 |
Total financing leases |  |  | 212,997 |  |  |  | 222,566 |
Weighted average remaining lease term (in years) |  |  | 20.2 |  |  |  | 20.3 |
Weighted average discount rate |  |  | 7.9 | % |  |  | 7.9 | %
As of September 30, 2025, future minimum payments for operating lease obligations and financing lease obligations were as set forth in the following table. The minimum lease payments presented below include periods during which an option is reasonably certain to be exercised and do not take into consideration any future consumer price index adjustments for these agreements.
|  | Operating |  |  | Financing |
|  | (in thousands) |
October 2025 through September 2026 |  | $ | 184,649 |  |  | $ | 28,662 |
October 2026 through September 2027 |  |  | 183,561 |  |  |  | 21,428 |
October 2027 through September 2028 |  |  | 180,870 |  |  |  | 21,598 |
October 2028 through September 2029 |  |  | 179,133 |  |  |  | 21,924 |
October 2029 through September 2030 |  |  | 175,965 |  |  |  | 21,571 |
Thereafter |  |  | 1,508,815 |  |  |  | 361,508 |
Gross lease payments |  | $ | 2,412,993 |  |  | $ | 476,691 |
Less: imputed interest |  |  | (946,195 | ) |  |  | (263,694 | )
Total lease liabilities |  | $ | 1,466,798 |  |  | $ | 212,997 |

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