Global Partners (GLP) Q2 2024 earnings summary

Executive summary

• Achieved year-over-year growth across all key financial metrics in Q2 2024, including operating income, net income, distributable cash flow, and Adjusted EBITDA, reflecting the effectiveness of the integrated business model and strong wholesale and GDSO segment performance.

• Invested over $500 million in acquiring 29 terminals from Motiva Enterprises and Gulf Oil, more than doubling storage capacity to 21.4 million barrels and expanding geographic reach.

• Expanded network and strategic Houston JV with ExxonMobil enhance terminal operations, support growth, and strengthen brand presence.

• GDSO segment benefited from healthy retail fuel margins and successful merchandising initiatives in convenience markets.

• Declared a quarterly cash distribution of $0.72 per common unit, a 6.7% increase over the prior year.

Financial highlights

• Net income for Q2 2024 was $46.1 million ($1.10 per diluted unit), up from $41.4 million ($1.05 per diluted unit) in Q2 2023.

• Adjusted EBITDA rose to $121.1 million from $90.4 million year-over-year; EBITDA was $118.8 million, up from $90.7 million.

• Distributable cash flow reached $73.1 million, up from $54.8 million; adjusted DCF was $74.2 million, up from $53.3 million.

• Gross profit increased to $287.9 million from $242.7 million; total sales rose to $4.4 billion from $3.8 billion, driven by higher volumes.

• Maintenance capex for Q2 2024 was $8.9 million, down from $13.6 million year-over-year.

Outlook and guidance

• Maintenance capex for 2024 expected at $50–$60 million; expansion capex (excluding acquisitions) at $60–$70 million, focused on gasoline station and terminal businesses.

• Management highlights opportunities for low-risk growth through consolidation in the fragmented convenience store market and continued expansion of EV charging and renewable product offerings.

• Estimates depend on project timing, equipment/workforce availability, weather, and unforeseen events.