GLP - Earnings call transcript Q1 2024

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Operator

Good day, everyone, and welcome to the Global Partners First Quarter 2024 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. Officer, Operating Chief Hanson, Mr. Gregory Chief Mark and Mr. Officer Romaine; and Secretary, Legal Geary. Sean

go this to Geary Mr. Please like I for sir. the remarks. At would to turn time, call over opening ahead,

Sean Geary

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

Our to statements. with to Commission, undertakes differ materially in forward-looking our obligation as Global the filings described revise no any Exchange Securities update or and Partners

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

Eric Slifka

Thank you, Sean, and everyone. morning, good

we've and fit our each perfect markets make acquired than Their Connecticut capacity months, New more million to storage Jersey our total these million. represent X terminal and Massachusetts, existing X.X [indiscernible] Jersey terminals Linden doubling million Woodbury, from barrels locations barrels. a XX.X network. business. our XX terminal last the in for assets $XXX New and network approximately in operational new and geographic Northern Over

the which Company. terminal Revere Link to market, as network. nearby million in our capabilities and divested gasoline portfolio, allowing Boston to replacing Massachusetts terminal as the Connecticut Chelsea, The XXXX the strategically Logistics of a terminal continue us The distillate serve our to for Haven serve New to customers Blackstone as wholesale retail capabilities our to well we extensive $XXX us allows

service allow our disruption. will this distillate to of Boston continue customers With our and the divestment terminal, to without acquisition Revere area gasoline us

full heating optimize know, offer operate including and allowing and us fuels, diesel. may fuels, anticipate industrial Chelsea, commercial around a in X oil invest these you to in terminals of now bunker biofuel, products, We opportunities to and we slate As properties.

the progress Motiva. the terminals assets well-run commitment drive was which additional these high-value of to we in operational acquisition expansion completed with backed extremely as XX and the schedule liquid about efficiencies facilities. extremely ahead take-or-pay We're December a pleased our to are energy excited ability of transition, We're by of for optimize Turning These March. investment, Motiva. from XX-year

Looking May April, a common an May on the represents increase on X. $X.XX as of units the at the In and distribution our cash This XX on over distribution. of unitholders distribution declared $X.XX annualized business quarterly period record to Board payable prior of on basis. of our is year an or close X.X%

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

Gregory Hanson

good Thanks, Eric, morning, and everyone.

same in first a please million otherwise quarter we compared $XX with million We $XX As $XX all of of will noted. go XXXX in the $X.X quarter income in net unless compared through net and be period comparisons million the of Distributable with our X.Xx LTM XX factoring flow to preferred after quarter $XX versus XXXX. first as in with $XX.X the cover X.Xx in 'XX. DCF distributions $XX.X million unitholders. in million March was million $XX.X Adjusted the of loss EBITDA quarter that QX million 'XX in first numbers, was in was of note cash or the in reported million XXXX, adjusted compared distribution in 'XX. the was

margins $X.X primarily compared 'XX increasing million, XXXX. period Product increase X million in $X.XX segment margin in basis, increased from to to QX $X.XX increased same in gasoline XX.XX to with in million our $XXX.X to resilience a fuel On reflecting the the year-over-year. illustrating QX $X.X increased $X.XX gallon margins 'XX despite wholesale from 'XX, of for fuel year-end $X.XX million. $X.XX our GDSO distribution the margin from prices cents product per fuel margins higher gasoline to Turning quarter details. $XXX.X

sundries increases quarter of to XXXX, a throughout the margin, $XX.X which as rental also our food million had from XXXX stores. quarter operations first portfolio income, as $X.X includes consistent product quarter. and first prepared to in million sites. quarter during prices of first quarter At end, the to which opposed off we increased in in prices The store in team well X,XXX fall execute the the benefited sales, of had quarter a convenience our Station continues

addition, under Partners retail our we sites Spring joint operated XX In venture.

the at Looking segment. Wholesale

to of from of in $XX.X million the blend gasoline margin to margin gasoline First in gasoline to offset period conditions oils in product $XX.X to less $XX.X from market distillates due was the residual favorable largely same million terminals. This by million. and acquisition favorable conditions Motiva $XX $X.X million less partially the other margin quarter XXXX 'XX in decreased stocks $X.X and increased million, Product Product primarily quarter to the market decreased compared million, to first due oil. 'XX.

in of have million impacted Wholesale conditions. timing were April. our the market in through negatively product valuations, $X.X segment largely we quarter-to-date decreased press products certain $X margin due million, which primarily favorable mark-to-market As segment less by recover our Commercial mentioned to we seen release, to

Motiva from Looking other $XX.X SG&A related $X.X million million acquisition increases to quarter, QX Motiva. $XX.X SG&A acquisition costs expenses $XXX.X first to increased and including in Operating million primarily the the to to and the expenses. benefits of terminals the wages in expense related expenses. acquisition at in million, terminals increased and

issued primarily to and million first first 'XX. of interest business. the primarily of compared of gasoline Capex and of Interest million consisting senior of million in to the with in $X.X quarter X.XX% the our related deferred $XX.X January a related in expansion quarter expense expense fees. that maintenance $XX.X million, increase write-off $XX.X XXXX was in investments CapEx, CapEx was The million due financing our 'XX $X.X was to to of million $XX.X station we in notes

unanticipated of excluding to $XX to $XX expansion million, million the equipment of and expenditures, For requiring gas year our workforce, and to to current in of on additional of estimates $XX primarily expect range availability maintenance and of continue million depend business. million full whether $XX relating part XXXX, These capital expenditures the in investments. the in or or station opportunities we events of projects, capital range the maintenance and acquisitions timing completion terminalling

with capacity defined X.XXx at sheet Our credit debt continue in strong balance credit to at our leverage agreement we our X/XX EBITDA excess and as remains as facilities. have funded ample to at

outstanding which with under on credit XX, under our of were As $XXX all revolving revolver of million, our X March total facility. working were our capital credit borrowings agreement outstanding

$X.XX cumulative to that at accretive fully per transaction we to on basis. perpetual I'd rate XX, on also Series floating the units. all accretive immediately This redeemable distributable preferred current interest cash highlight rate redeemed be an flow unit April to outstanding was like expected A to annual fixed is approximately and

Now upcoming review Energy turn call Conference. XXst Investor participating participating be to for June, Sector before and I Infrastructure calendar. Stifel and Annual the Cross be our the This we'll month, in Insight comments, Conference let Conference back in Eric the Relations me closing the Credit BofA we'll in Energy

to of with If the you're attending of you. one events, meeting we look more forward

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

Eric Slifka

X X acknowledge Thanks, and their team significant past months. our work for over Greg. want the closing, In acquisitions completing to and integrations I outstanding

energy meaningful well-positioned and are that in future for and a way of will shaping we the Strategically, incredible continued terrific well financially, the economy. to assets We business, to believe success. people I have operationally a positioned continue contribute

that, be take questions. to I your Mark and With Greg, will Operator? happy

Operator

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

Selman Akyol

since add able off in acquired I Have to Motiva throughput been you you acquisition. Or are increase guys starting guess have the new seeing guys First, you on down that? there? just customers any

Mark Romaine

Selman, cutover, roughly those and end Mark. including into all systems, completed effectively Yes, the of ownership operating March. the full We're terminals terminals. X those We a it's Yes. months of

us been there's volume being we taken it's terminals. time opportunities for there. So in fully to the those lot terminals, optimize us And what opportunities to understanding a new terminals. exist transition of those working for terminals, those to actively on some invest exist have us said, what positives That adding

business. to stream on we new we So expectation move here, forward is that will our as start

We dialed where little opportunities invest. bit the in more will get a around to

I way time. well we very we're It little so recognize those a synergies. think what -- seen will So our to take far. are bit of And starting -- just we're encouraged to on will we've we

I through those of business of the the terminals. end quite a by year, new think bit we will have

Selman Akyol

it. Got

of And so more in seeing would sort just in of there opportunity you sort line initially performing say when Are expectations? as you line? said, with I you maybe thought or than your

Mark Romaine

for exceed the expectation. get and our do going optimization ourselves. line would I is It's these can think that -- at those to ahead far we're that hope we're looking term, longer with term we early in like to of the our that to probably I seems too the near expectations. get want what all expectations. too say do is reasonable be with a today opportunities investment will And around assets, we I don't

Eric Slifka

These Yes. opportunities within Selman, real into it's but assets the are here with of the lots there out with products. assets think only mentioned expand exist, And well-located we of extremely time values. we a try have there's as to unique assets and are them, lot particular ways as opportunities, of some Eric. with not that get they that permits expansion think little we assets that we that, and spend Mark of go that bit a we'll think once just

Selman Akyol

the JV and how coming performing growth out and on Got expectations it's it. update of Any any that?

Gregory Hanson

Yes.

our in continue in you in frozen, lower was no area. than Houston of weather the had of that there. the days I'd the expectations, couple you a the market in excited of say operating be traffic We Really in a really. horrible JV January, to quarter had JV about little first

And other there environment have definitely than down of also first there. competitive in areas margin results then the the weather impacted some quarter. So you a the more down country.

finished those down we've of said, now a sites. in We've that rebrand there. invested But those sites

We've We continue they're operating down grow we about excited that a very very partner to strong very well. for business. got and to opportunities look there are

Eric Slifka

it's Selman, Eric. Yes.

look exist we're be potential sale. that at I growth, opportunities say stream down to for there. there that may would of to seems a terms be of assets In continuing

do new there at trying those a that there's the we'll potential fit everything after. for is our will in there there, complementing I well. And think we're if to as to that think with us try something down market. terminals So assets look go we down

position that, there. think better that hopefully assets of give a we us should terms so in And acquiring

Selman Akyol

there you then look comment on you're can that sort M&A, as Understood. And on? that you well as more markets of seeing other but touched you is beyond anything

Eric Slifka

fit make Yes. to returns, trying which I steady ones and the right? out to we're just at sure way figure company highest a opportunities. of really drive looking wouldn't we'll active. So And the stream say the them there's and best it's

Selman Akyol

growing run front But never is And I dividend prerogative guys that been you cash you also have that's said in always said, of and growing you consideration highlighted et you'll that have the realize preferred acquisitions, then I and you redeemed consistently as flows And A Board's you've them get. Understood. accretive the and doing earnings. $X.XX kind to that been cetera. just

as on financing? should terms in at So more of terms to be would in just that business well consider seeing potential looked growth basis? that underlying go-forward opposed Or of they a the as in

Gregory Hanson

Yes. Greg. I it's -- I mean guess

positioned think We've Board that where distribution the appreciation by lot distribution. growth. of the of grow I this to continued issued the year. ourselves penny And we of sort a an increasing confidence of in

reinvest with to excess LTM CapEx now debt cash coverage LTM lowering and in of X.Xx cash is some company. able our putting we've basis. the been on fully Our also expansion an and cover that

in been from we've coverage distribution a standpoint. a position So strong

excited we're think bottom about to the contribute for I think We continue will do they line the us. acquisitions. to

think continue the this higher I at And future. some hopefully, that excited But so Board point the us I will to to lead what grow bottom about in allow line. to acquisitions can't would we to the our speak do. and are And distribution should

Operator

I'll to Mr. the back now turn for call comments. closing Slifka

Eric Slifka

look day. everyone, joining us morning. our this good progress. Thanks, We a keeping to on forward for Have you updated

Operator

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

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

Global Partners (GLP) 8 May 242024 Q1 Earnings call transcript