GLP - Earnings call 4 2023 | Global Partners LP

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Operator

Good day, everyone, and welcome to the Global Partners Fourth Quarter 2023 Financial Results Conference Call. Today's call is being recorded. [Operator Instructions] With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slifka; Chief Financial Officer, Mr. Gregory Hanson; Chief Operating Officer, Mr. Legal Chief and Romaine; Officer, Mr. Mark Geary. Sean this to Mr. I'd to like over call the turn At time, Sean opening Geary for remarks. Please go ahead, sir.

Sean Geary

or Good within federal for include and projections No be morning, joining us. Global performance future, that these assurances the Today's will you attained everyone. financial met. Partners. call expectations and will concerning forward-looking the that laws, securities statements of expectations meaning including projections can these of given Thank operational will be be

are performance risks, and future our and forward-looking to which a cause no business assumptions Our the to Exchange in of range subject Partners any undertakes statements. as obligation uncertainties could Securities wide Global filings with described factors, to and Commission. update differ revise actual results materially or

pleasure over Now Chief to President and Slifka. call Officer, turn our the Executive to Eric it's my

Eric Slifka

everyone. Thank delivering XXXX Global. on year and excellence work, begin I'll by new for terminals you, recognizing opportunities drive creativity hard our and strategy good enabled Motiva with execute company our We and exceptional retail Their and increase operational power. full Partners . the a fourth earnings to was and quarter JV acquisition Sean, team. morning, Global the solid us position the These the transformative ExxonMobil. growth closed to accretive performance. while deals year

ownership in area. acquiring a and to First, Spring joint us million ExxonMobil, extensive Houston in the operational $XX.X June, transaction with interest growing metro and convenience XX management in our XX.XX% fueling invested our cash for in retail venture facilities. apply enables expertise we Partners This

growing the X new rapidly integrated of retail our growth storage, support and with in capabilities million We Motiva broadens terminals our network wholesale Second, capacity nearly liquid by rail of in and from states. diversifies areas in in December, for energy XX the and footprint. $XXX.X transaction acquired supply, doubled terminals adding waterborne storage country. our Motiva pipeline, The terminals cash. we Enterprises These

supported anchor revenue by is facilities agreement Motiva, throughput the minimum acquisition annual a commitments. with these at includes The tenant take-or-pay XX-year and

of very assets good about Xx is in The our of the align underway, complement capabilities. second invest acquisition the Our achieve Motiva and joint multiple high-quality Motiva and well operational synergistic, that below Partners venture integration Spring with assets ownership. strategy of Retail being year to target our in to acquisition and able we our directly optimize the feel acquire,

of balance along and noted on $X.XX stronger. and have potential distribution legacy organically outstanding XXXX, annualized never on in sheet. X, $X.XX February our deals, growth our of past morning's maintaining more all quarterly on XX, expansion acquisitions with on to grow basis million to X while or earnings and over our the record the these February a of of distribution of close In XXXX. cash the business units. approved diversification common I as The assets As Between $XXX unitholders Board buy strength paid been strength business than release, January, an and CapEx, was assets we this of with X strategic execution, the market invested years, the

the purchase to be from purchase removed terminal want This Oil. million restated over will an from terminals as part morning, Before we I refined from transaction that million. of reduced to of of call turning to acquisition will products the and product Gulf's you be transaction the agreement, pending update Maine Portland, our Gulf Greg, $XXX.X the announced in refined $XXX price on briefly amended that and

work this to process continue through regulatory We transaction. the for

that, Greg? me the With call review. turn over let the financial Greg for to

Gregory Hanson

everyone. Thank you, Eric, and good morning,

fourth XX-month in $XXX.X the all in EBITDA comparisons was of net and $XXX.X for million noted. or fourth please income to December our quarter the will to be determine the $XX.X provide XXXX. $XX.X or XXXX, ] DCF was million numbers, with and million the compared our proportionate in of of through revisions after million [ agreement our Adjusted was Adjusted share the agreement. and for . Adjusted related DCF adjusted EBITDA under may and unless XX.X% perspective is adjusted fourth unitholders. in X.Xx solely go our versus financial X.XXx presented our an not partnership XXXX $XX.X investors and fourth to Retail Adjusted for we quarter venture. that with $XX.X factoring EBITDA include quarter $XX.X make DCF to with cash Partners distribution ability flow million be Trailing our is quarter XXXX million lower calculated as compared higher preferred XXXX of XX than [ to in As Spring interest with as joint note otherwise versus partnership was DCF coverage EPS distributions cash Distributable our performance. ] DCF enhanced used million. of million was in $XX.X our

sales, XXX dealers At $X.X which of includes XXX portfolio product of X,XXX margin, consisted prices XXXX. quarter-end, prepared sites, commission store QX GDSO segment wholesale $X.XX $XX.X Product Turning $XX.X rental product dealers. from margin company-operated of per fourth million increased in million. quarter in reflecting and X/XX/'XX to million basis, fuel $X.XX to gallon $XXX.X On XX/XX/'XX the comprised million from to in of decline distribution quarter sites, food to increased $XXX.X XXX and primarily contract million, fuel the $X.XX Station cents a gasoline to $X.XX agents, higher million to and margins our income VC in QX versus XXXX operations year-over-year. prices $XX.X our increased $X.XX sundries details. in from convenience declined gasoline GDSO as XXXX. margin margins increased XXX

operate In XX Retail Partners addition, of Spring we the on sites venture. behalf joint

segment. the $XX.X margin $XX.X due oils $XX.X more million $XX.X decreased million, market to decreased distillates favorable gasoline at Product from the gasoline due distillates to margin and million, in Looking Product Wholesale favorable conditions million and quarter. margin quarter million. gasoline year-over-year. product XXXX Fourth other to million $XX.X $XX.X in increased from less to market primarily blendstocks and to primarily conditions

favorable $X.X business. to decreased primarily margins margin product less bunkering to million, due million our segment $X.X in Commercial

in expenses. Operating million SG&A the expense to our at with expenses quarter was increased million $XX.X Interest XXXX. of in investments $XX.X expenses primarily million the The million the million and CapEx, $XXX $X.X of expansion in XXXX. Looking station $XX.X $X $XX.X $X.X million. million the to fourth CapEx consisting to business. compared quarter fourth was $XX.X in million of quarter gasoline related of in maintenance in million, CapEx quarter decreased

expansion had maintenance in we XXXX, million million CapEx year full For $XX.X in and $XX CapEx.

expenditures and to to equipment $XX million projects, of year businesses. terminaling range weather we our and excluding and station of workforce, opportunities million estimates $XX availability relating expansion maintenance of gasoline million events the maintenance expenditures, capital timing These in requiring depend full in current the completion of primarily [ expect XXXX, on for ], additional of million $X in acquisitions, the $X range or to and part of unanticipated For the capital investments.

our Our remains debt balance of sheet EBITDA which agreement with in X.XXx. leverage, to approximately strong is credit at funded as XX/XX defined

capacity in continue have our facilities. We ample credit to excess

general our This $XXX January, we total XXXX. outstanding facility. offering used in repay $XXX were outstanding the and our consists purposes. the borrowings amount proceeds of outstanding working under under million of our offering of completed private the notes corporate capital million. principal XX, a of the unsecured aggregate credit X.XXX% for In borrowings borrowings under portion As million of $XXX.X revolver agreement We the revolving $XX.X primarily acquisition million from and December credit our due credit Motiva to current senior agreement, of to -- related credit

to let turn Now comments. for the me Eric Eric? call closing back

Eric Slifka

flows to our strategic opportunities Thank execute XXXX ahead. priorities you, Greg. a the please for strong that us position and questions. with the on We sheet Operator, and open begin . call balance cash growth

Operator

Selman the Akyol first question Stifel. Instructions] with from [Operator comes Our of line

Selman Akyol

Gulf oil now Maybe just off presumably, that ex big -- the Does you up thing that holding was with starting HSR. out, that and that was amendment. the

for have a time closing? you do line So

Gregory Hanson

Hanson. Gregory it's

we much the we're other Gulf going talk what not the So than in to X-K. put about transaction

-- the with We are move that get to forward. FTC still working

all so the And we're talk that's about at going moment. to

Selman Akyol

can Then outlook Exxon? Okay. XXXX, -- for your you your enter you what's as with JV

Gregory Hanson

for Mark, I about sites, it a mean, in the -- we're I it getting we the us. June needs growth excited we're us, think largest and lot time space on still the It's closed We've and the consolidation we know, We Yes. it's do to last of potential up operate it's In Houston. to of market guys growing of spent to C-store We a that and it's lot white can and it a very free JV. add. opportunity a about on standards speak think for in to there the a space I There's that U.S. Texas, in I for and been how good marketplace happen excited us. Eric mean as of down C-store you feel fragmentation year. market. it in

has it for So room growth.

overall, think, we're continue the 'XX. and look opportunity grow excited about to I to in So

Selman Akyol

growth to out in that 'XX? So of see expect we should

Gregory Hanson

That's the goal.

Eric Slifka

be there's Selman, a always potential at few opportunistic Motiva assets to are we'll assets. we're going company. transaction. say a every deal the like market. on -- Motiva the were I we in lot would going that try and look And Texas to has every are, and at The The

create higher the find utilizing returns is, assets So asset right the by right can our we base. question the to deals,

Selman Akyol

in strength your cents gallon this the on per comments Any Understood. quarter?

Gregory Hanson

Yes.

we lower-tier they think be operators overall, are including year, historically, than volatile for less for of continue operators. higher a going to factors, expenses have I that higher breakeven lower-tier been higher to and number margins believe given

quarter. start fourth of prices and was because the think quarter some you previous stronger first much to X the very just in of the falloff had I the strong, months, that than

that [indiscernible] There not quarter. was been that they stronger going will have fourth forward, set they I stage of as a the overall, were but as But in in we big continue may decline to October, than quarter historically. margins to be sort for believe strong the wholesale they the be continue and think in

Selman Akyol

distribution up? Is as is over ratio the you? don't guys may to for needs at to raised expect on then around thoughts Would business look about may comfortable there some that you any me. that? or last you ratio, And it your you for up coverage could I think go when anything a you the not think be you you maybe certainly coverage Do lower way levels? one do. Understood. running 'XX, opine consistently frame very Board you this and back And comfortable But the and the

Gregory Hanson

Sure.

-- Yes. think I

X.Xx I numbers. think for of over ratio We're coverage comfortable at we're at the a the X.XXx and in the year, very comfortable with partially LTM quarter strength reflected that's the level. basis the fourth

ratio public after we've the back our gone been distribution. has XXXX, you in X.Xx since look If coverage preferred since XXXX

So we've strong always maintained cash flows.

a lower would say. at definitely comfortable level than we're X.Xx, think I I

Our we look to goal the to expansion and acquisitions. that to is execute on on balance also budget to gasoline consolidated have continue we sure maintain at side. do on retail our a of I to capital mean the the strength the both capital sheet make it be side terminaling market, think will continue and our

acquisitions. sure So expect continued to a we sheet we're balance our execute do in for And that make we those. position to keeping need opportunities on

bit cash is excess it we piece. a those little there's some more opportunities, depend there more capture and Board balance than But But sheet are for of to retaining we flow will so opportunities keep opportunity, But may I may the think our if how if distribute opportunities. on there that our retain. lack out choose to need important wants what retain And to to more a strength. is

Operator

comes America. with Our of the line Bank Brody Gregg question from next of

Gregg Brody

sense set front, it, of touched be Just acquisition some on it there a it to year? just Just Is this what we color opportunity -- be out you would helpful. better maybe do but the expect the on busy there? give still

Eric Slifka

there's of busy. the a create. we've and is that say going opportunity. to any do be got still It may lot [indiscernible] to of it fit very is, Eric. it's will well overlap The Greg, would question we aware us problems think be I

deals we've And the then right at And try try locations if the look can done right, with hard I history we think assets, it. growth, And us. key markets the to in. not there of to acquisitions It's our that key right to do. come if buy we right up is company, so and like are same thing that the we'll in to plenty the of that's still see everything really always since we'll we're is the

So out there's lots there. of opportunity

Gregg Brody

any attractive that getting focused markets there into? particularly that Are to are on you you're

Eric Slifka

most terms flexibility of have Yes. value. would say have Well, the preference, most think how in accessed I assets the our they're we that the

if by and you tankage, assets but the it's every and and have and so think in I mean, in story access important. same And for is have have to out rail that large have I good docks ways operator, waterborne are also terminal get

markets the users. most So you that positioned scale to in to provide really all have the make is best are that future these sure in flexibility assets critical for new the

Operator

no further you at the for have time. like We Slifka, Mr. over would turn to floor back questions I this closing comments. to

Eric Slifka

joining updated look on to all morning. for . you We you this us Thanks, Thank our forward progress. keeping everyone.

Gregory Hanson

Thank you.

Operator

and gentlemen, this does conclude Ladies teleconference. today's

have You your at a you may for and lines wonderful Thank day. disconnect time. your this participation,

Global Partners (GLP) 28 Feb 242023 Q4 Earnings call transcript