• Adjusted EBITDA: $114 million in Q3 2024, up from $77.7 million in Q3 2023.
• Net Income: $45.9 million in Q3 2024, compared to $26.8 million in Q3 2023.
• Distributable Cash Flow: $71.1 million in Q3 2024, up from $42.2 million in Q3 2023.
• Adjusted Distributable Cash Flow: $71.6 million in Q3 2024, compared to $43.3 million in Q3 2023.
• GDSO Product Margin: Increased by $31.2 million to $237.7 million in Q3 2024.
• Gasoline Distribution Product Margin: Increased by $32.1 million to $164.1 million in Q3 2024.
• Fuel Margins: Increased by $0.09 to $0.40 per gallon in Q3 2024 from $0.31 in Q3 2023.
• Station Operations Product Margin: Decreased by $0.9 million to $73.6 million in Q3 2024.
• Wholesale Segment Product Margin: Increased by $33.9 million to $71.1 million in Q3 2024.
• Operating Expenses: Increased by $21.2 million to $137.1 million in Q3 2024.
• SG&A Expense: Increased by $7 million to $70.5 million in Q3 2024.
• Interest Expense: Increased by $14 million to $35.1 million in Q3 2024.
• CapEx: $24.3 million in Q3 2024, with $11.2 million in maintenance CapEx and $13.1 million in expansion CapEx.
• Fueling Stations and C-store Sites: Totaled 1,589 at the end of Q3 2024.

• Warning! GuruFocus has detected 7 Warning Signs with GLP.

Release Date: November 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Global Partners LP (NYSE:GLP) reported significant year-over-year gains across key financial metrics, showcasing effective execution of their strategic initiatives.
• The acquisition of 29 liquid energy terminals from Motiva Enterprises and Gulf Oil is expected to enhance operational efficiency and market reach.
• The company completed the acquisition of a 730-acre liquid energy terminal in East Providence, Rhode Island, which offers strategic storage capabilities and potential for real estate diversification.
• Global Partners LP (NYSE:GLP) was selected to partner with the Massachusetts Department of Transportation to deploy the National Electric Vehicle Infrastructure Program, accelerating their EV charging station plans.
• The Board declared a quarterly cash distribution increase of 6.6% over the prior year, reflecting strong financial performance and commitment to returning value to unitholders.

Negative Points

• Operating expenses increased by $21.2 million in the third quarter, largely due to recent terminal acquisitions, impacting overall profitability.
• SG&A expenses rose by $7 million, driven by higher long-term incentive compensation, wages, and benefits, which could pressure margins.
• Interest expenses increased by $14 million, primarily due to the issuance of senior notes and higher average balances on credit facilities, affecting net income.
• The Station Operations product margin decreased by $0.9 million, partly due to the divestiture and conversion of certain company-operated sites.
• The company faces high valuations in the market, making it challenging to find accretive acquisition opportunities that fit their strategic goals.

Q & A Highlights

Q: Any impact from the elections that you guys are anticipating? A: Eric Slifka, President and CEO, mentioned that while they need to see how things play out, Global Partners has a durable and scaled business with long-term commitments, positioning them well to continue executing regardless of election outcomes.

Q: What are your plans for the 730-acre terminal recently acquired? A: Eric Slifka explained that the terminal is a great asset with good access and infrastructure. While there are no immediate plans, they see potential opportunities for real estate development and will explore these as they arise.

Q: Can you discuss the outlook for acquisitions, particularly terminals or GDSO? A: Eric Slifka noted that the market remains busy and competitive with high valuations. Global Partners is selective, focusing on deals that fit well with the company and can be accretive, maintaining discipline to deliver returns.

Q: Any updates on the partnership in Houston? A: Eric Slifka stated that although the partnership is relatively new, they are optimizing operations and see a positive outlook, with plans to explore further opportunities in the Houston market.

Q: Can you provide insights on the number of EV chargers planned across your system? A: Eric Slifka emphasized a disciplined approach to EV charger deployment, partnering with government to build a network in strategic locations while managing risks, as the EV charging business is still in early stages.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.