Fortune Shines on the Convenience Store Industry
NATIONAL REPORT -- Fortune Magazine released its latest Fortune 500 report and according to the revenue rankings, 16 convenience store retailers saw a lot of green in 2012. In fact, four companies with c-store operations ranked in the top 10, including ExxonMobil Corp., Chevron Corp., Phillips 66 and Valero Energy Corp.
Although it fell behind retail giant Wal-Mart Stores Inc. for the top spot, ExxonMobil at No. 2 posted the second-highest annual profit in U.S. history, beating its own 2008 record. Its net income rose by 9.8 percent to $44.8 billion from the previous year.
Chevron managed to maintain its No. 3 ranking for the second year in a row. The nation’s second-largest oil company posted earnings of $26.2 billion -- the second-highest result in the company’s history, after $26.9 billion in 2011.
Phillips 66 reappeared on the Fortune 500 list this year. The downstream spinoff of ConocoPhillips Inc. posted $169.5 billion in sales, which landed it in the No.4 spot. As CSNews Online previously reported, Phillips 66 Chairman and CEO Greg Garland announced in January the company will create a midstream master limited partnership (MLP) in the second half of this year.
Other companies appearing on this year’s list have completed spinoffs, including Valero and Marathon Petroleum Corp. (MPC), parent company to Speedway LLC. As CSNews Online previously reported, Valero officially spun off 80 percent of its retail division as CST Brands Inc. on May 1, and Valero Chairman and CEO Bill Klesse acknowledged the company will now consider spinning off its midstream assets into a MLP. The retail spinoff seems to have been favorable with investors and helped Valero jump three spots to No. 9, earning $138.9 billion in revenue.
Meanwhile, MPC ranked No. 33 with $76.8 billion in revenue. MPC completed a midstream MLP transaction in October and named the new company MPLX LP.
The other c-store retailers who appear on this year’s Fortune 500 list are:
- No. 23: The Kroger Co., $96.8 billion in revenue
- No. 69: CHS Inc., $40.6 billion
- No. 75: Hess Corp., $38.4 billion
- No. 95: Tesoro Corp. $32.5 billion
- No. 104: Murphy Oil Co., $28.8 billion
- No. 157: Global Partners LP, $17.6 billion
- No. 283: Western Refining Inc., $9.5 billion
- No. 329: TravelCenters of America LLC, $8 billion
- No. 347: The Pantry Inc., $7.4 billion
- No. 392: Casey's General Stores Inc., $6.5 billion
- No. 460: Susser Holdings Corp., $5.5 billion
To see the full Fortune 500 ranking, click here.