Global Partners (GLP) Q2 2024 earnings summary

Executive summary

• Achieved year-over-year growth across all key financial and profitability metrics in Q2 2024, reflecting the effectiveness of the integrated business model and diversified portfolio.

• 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.

• Integrated business model and recent terminal investments drive operational scale, margin enhancement, and open new growth avenues.

• Strategic expansion into the Houston market via JV with ExxonMobil and continued focus on sustainability and social responsibility.

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

Financial highlights

• Q2 2024 net income 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 was $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.

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

Outlook and guidance

• Maintenance capital expenditures for 2024 expected in the range of $50–$60 million; expansion capex (excluding acquisitions) expected 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 leveraging integrated operations.

• Ongoing efforts to optimize and invest in newly acquired terminals, with opportunities to drive value through operational improvements and asset flexibility.

• Sufficient liquidity is expected from operations, credit facilities, and potential debt/equity issuance.

• Continued focus on strategic growth objectives and delivering value for unitholders in the second half of 2024.