Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on how tariffs might affect your supply, particularly from outside US borders? A: Mark Romaine, Chief Operating Officer, explained that while they don't disclose specific percentages for competitive reasons, Canadian barrels are crucial for the supply landscape in New England and the Northeast. The company is prepared to source barrels from anywhere, thanks to their flexible system, which allows them to adapt to changes in supply dynamics, including potential tariffs.
Q: Do potential tariffs influence your acquisition strategy or geographic focus? A: Eric Slifka, President and CEO, stated that potential tariffs do not alter their acquisition strategy. The flexibility of their terminals allows them to source product globally, ensuring supply continuity despite potential cost increases. This adaptability is seen as a competitive advantage, reinforcing their current business model and investment strategy.
Q: What are your growth plans for the Houston area? A: Mark Romaine highlighted that they plan to grow all three business segments in Houston: retail, terminals, and wholesale. They are disciplined in acquisitions, seeking value and synergies. The company sees opportunities for organic growth in their recently acquired terminals and aims to enhance retail operations and sales.
Q: Are there any changes in the acquisition landscape, such as pricing or bid-ask spreads? A: Eric Slifka noted that the market remains active with numerous opportunities. Asset quality significantly influences pricing, and while some spreads have widened, Global Partners remains active and optimistic about completing transactions in the coming year.
Q: How does your system's flexibility impact your ability to manage supply chain disruptions? A: Mark Romaine emphasized that their system's design allows them to source barrels from various locations, mitigating supply chain disruptions. This flexibility is crucial in maintaining supply and optimizing costs, regardless of external challenges like tariffs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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