ARKO Expects US$30 Million in Annual Additions From USPP Deal Yet to Close
Key Facts
ARKO Petroleum kept its acquisition of U.S. Petroleum Partners’ business on track to close in the fourth quarter of 2026, saying the deal is expected to add about US$30 million to annual adjusted EBITDA after completion. In its latest available official filing, the company had not announced that it had closed the deal; instead, it said it was "continuing to work toward closing the transaction." The company links the outlook to an increase in fuel volume distributed and stronger estimated cash flow. This comes as it raised its 2026 earnings outlook following third-quarter results, with the expected deal closing included in the basis for that outlook.
ARKO signed an asset purchase agreement to acquire USPP’s business on August 4, 2026. According to the company’s estimates announced on November 4, the deal will add about 280 million gallons in annual fuel volume, equivalent to about 14% of ARKO’s fuel volume for the 12 months ended September 30, 2026. The expected volume will pass through about 400 distributor locations, expanding the distribution reach underpinning the deal. The company estimated that the acquisition will add about US$30 million to annual adjusted EBITDA after closing and strengthen estimated cash flow. These are announced deal figures and estimates, not operating results achieved after completion.
The announced assets include two fuel terminals and expanded transportation capabilities, which the company said are expected to strengthen vertical integration. CEO Arie Kotler said the assets "will increase our scale, strengthen our infrastructure presence, and deepen our relationships with major oil suppliers." The company sees expanded infrastructure as potentially enabling greater use of fuel terminals, improved transportation efficiency, and additional stable or fee-based income. In announcing the agreement, it also linked the new assets to avenues for increasing earnings through higher fuel volumes transported, operating efficiencies, and additional fees. These benefits remain part of the deal’s rationale and projections, while closing is still expected in the fourth quarter.
ARKO announced on November 4 that third-quarter revenue was US$1.889 billion, compared with US$1.484 billion in the third quarter of 2025. Net income rose to US$13.3 million from US$10.1 million in the comparable period, while adjusted EBITDA increased to US$41.0 million from US$37.4 million. But cash generated from operating activities was US$21.6 million, versus US$25.0 million a year earlier. These results provide context for the company’s annual outlook, which it raised to a range of US$156–157 million in adjusted EBITDA for 2026, based on year-to-date performance, expectations for the remainder of the year, and the expected USPP closing. Accordingly, reaching the announced range depends in part, according to the company, on completing the deal within the expected timeframe.
On distributions, ARKO’s board declared a quarterly dividend of US$0.50 per share, payable on November 30 to shareholders of record on November 18, 2026. In trading, APC shares closed at US$14.90 on November 10, 2026. The U.S. Energy Information Administration’s schedule lists the weekly petroleum status report for November 12, covering the week ended November 6. The agency postponed the report because of the federal government closure on November 11 for Veterans Day. The report is scheduled for 12:00 p.m. and 2:00 p.m. Eastern Time, making it the next update to U.S. oil supply data cited in the available disclosures.