7.6.6.2Vertical

Petroleum Product Pipelines

Operators of refined product pipelines to terminals.

Market snapshot

These figures describe Petroleum Product Distribution (7.6.6), the segment that Petroleum Product Pipelines sits within. They are not figures for Petroleum Product Pipelines on its own.

Market size
~$1.99T
Growth
~11.6%CAGR (2017–22, nominal)
Companies
~3,834 firms
Firms by employee count

62.9% of firms have fewer than 20 employees: 2,410 micro-businesses, below most mandates.

The investable universe1,424 firms with 20+ employees
20–99
80156%
100–499
34424%
500+
27920%

The largest revenue figure in the sector, and the least meaningful as a measure of value, because wholesalers book the full price of the fuel they resell on margins of a few percent. Judge these businesses on volume, terminal access and working capital, never on turnover.

NAICS 424710, 424720, 457210, 486910. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Wholesale fuel distribution (thin per-gallon margins)

Key economics

Revenue per firm
$519,295,914
Employees per firm
28.3
Recurring revenue
Moderate–High

recurring fuel reorder

EBITDA margin
Very thin

pass-through fuel economics

Capex intensity
Moderate

Characteristics

  • Deep strategic-buyer pool: 279 firms exceed 500 employees, so a scaled asset has trade buyers
  • Bulk stations, terminals, jobbers, and fuel marketers.
  • Revenue is pass-through fuel value at thin margins.
  • Growth reflects 2022 fuel prices, not volume.

NAICS 424710, 424720, 457210, 486910. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaMaineMassachusettsMinnesotaNew JerseyNorth CarolinaOklahomaPennsylvaniaSouth DakotaTexasWyomingConnecticutMissouriWest VirginiaIllinoisNew MexicoArkansasCaliforniaDelawareDistrict of ColumbiaHawaiiIowaKentuckyMarylandMichiganMississippiMontanaNew HampshireNew YorkOhioOregonTennesseeUtahVirginiaWashingtonWisconsinNebraskaSouth CarolinaIdahoNevadaVermontRhode IslandKansasNorth DakotaLouisiana

North Dakota, Kansas and Louisiana: fuel distribution concentrates where population is thin and driving distances long, because a dispersed market needs more separate distributors to serve it.

North DakotaKansasLouisiana

U.S. Census Bureau, 2022 Statistics of U.S. Businesses (firms by state), NAICS 424710/424720/457210/486910. Concentration shown by location quotient.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Large fuel marketers & distributors
  • PE-backed distribution platforms
  • Regional jobber consolidators

What’s driving deals

  • Roll-up of regional fuel jobbers.
  • Scale, logistics, and supply advantages.
  • Diversification into convenience and lubricants.

Find Petroleum Product Pipelines acquisition targets

Search Acquisera’s index for companies classified under Petroleum Product Pipelines (7.6.6.2) and build a targeted deal pipeline.

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