GLP - Earnings call transcript Q2 2024

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Operator

Good day, everyone, and welcome to the Global Partners Second 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 this to Mr. like I the At would to turn time, call over Geary for opening remarks. sir. ahead, go Please

Sean Geary

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

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

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

Eric Slifka

The good all and Sean, key you, metrics morning, in profitability across Thank delivered QX. everyone. year-over-year growth company

model the markets. Our integrated results convenient reinforce liquid to and portfolio continue our strength and terminals, stations of our energy fueling business of

our overall performance income, GDSO gains net and income, EBITDA our at and both we QX, adjusted in operating by DCF in driven segments. posted Wholesale strong in results Looking

terminals million past a our Coast the storage we've more the Florida, Oil, to our the doubling and and than the into from to reach Gulf footprint expand more Eastern XX invested geographic England, Over along Gulf Motiva segment capacity significantly million terminals strategic than months, Wholesale combined $XXX expand within of These barrels. Seaboard X through acquisition Texas. New Enterprise XX.X and

newly acquired to invest opportunities optimize terminals. identified these in have numerous We and

to by minimum highlight in Motiva take-or-pay commitment. the also initiatives margins annual a continues performance. XX-year benefit includes to agreement we've As throughput from healthy on fuel discussed calls, merchandising and solid segment retail convenience want transaction successful I our The revenue markets. that GDSO's is prior underpinned

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

the over turn me the Greg call for to review. Greg? financial Let

Gregory Hanson

Eric, Thank and morning, everyone. you, good

was note As the be of second XXXX. $XX.X of of noted, $XX.X flow $XX.X unless with the the with LTM otherwise we 'XX DCF review $XXX.X Adjusted $XX.X as million quarter coverage million. after distribution million million was numbers, compared our with million in factoring $XX.X in with in preferred net X.Xx please XXXX. million and unitholders. second comparisons quarter $XX.X in XX to that second EBITDA second was compared with Distributable X.Xx will distribution or the all June compared in cash And was XXXX. of quarter million the of compared million quarter income adjusted $XX.X

On a to to our product margin QX gallon gasoline -- primarily increased $X.XX margins $XX.X $XX.X margins to cents $XXX.X from Turning million fuel to per Product million, reflecting in quarter in year-over-year. increased $X.XX distribution margin the QX $XXX.X increased [ million in 'XX segment million ]. higher 'XX. from GDSO $X.XX basis, details.

of of increased includes rental which to sales, XXXX, and convenience quarter merchandising the and $X prepared in sundries store second the our margin, million highlighting product operations food income $XX.X success efforts. Station million continued

totaled of C-store stations fueling end, sites X,XXX. and quarter our portfolio At

[ joint Partners under we operate retail Additionally, venture. XX sites Crew our ]

at Wholesale segment. Looking the

of distillates, due to partially conditions other offset increased $XX.X acquisition margin $XX.X terminals conditions and oils to million, margin December and million. and of Product due $X.X Second blend -- primarily increased oil. 'XX quarter million million, distillates increased favorable Motiva and XXXX million in in to Product $XX.X less stocks gasoline $XX.X gasoline. gasoline the $XX.X more by million from from product in primarily to residual the favorable market market margin to more

mentioned would quarter. mark-to-market were in we fully the second add, I impacted also Those certain timing products first our negatively first in valuation quarter. in as by impacts the in the quarter of call, were recovered Wholesale the segment earnings

Commercial due segment million $X.X to conditions. product decreased less $X.X margin market favorable primarily million, to

to 'XX to SG&A Turning terminal million, due second in Gulf primarily in to quarter, the to long-term expenses. to were 'XX, increases expense $XX terminals in to to ] in increased to the increased which this Motiva fees. incentive as $XX.X increased the second senior January, used past and to quarter acquisition. related million inter result comp, million the Motiva of Interest of the expense balances $XX.X in our issued $X.X Operating -- [ X X/X professional related due acquisition, recent and facilitate average primarily on higher and from facilities expenses a credit million million acquisitions the $XX.X million the expense largely QX wages notes investments $XX.X

the ] related businesses. [ of station primarily in [indiscernible] and million second million, investments $XX.X and expense CapEx, consisting of to in of million was $X.X terminal CapEx $X.X quarter gasoline maintenance our

and expanded year of currently in the timing $XX investments. the current terminal capital primarily to events of part station the relating million These additional workforce, million, expenditures, availability full XXXX, unanticipated and in maintenance of expect businesses. and $XX we maintenance on the estimates range gasoline project completion, $XX million For $XX million in range excluding opportunities equipment to of expenditures requiring depend capital weather and our to and acquisitions, of

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

revolving credit $XXX.X from working facility on on million borrowings outstanding our our As we credit June $XXX of outstanding capital facility. and million XX, had revolving

cash rate, per to on -- approximately and, an -- unit outstanding As distributable the expected redeemable fixed rate to flow $X.XX is we XX, current A April out immediately annual accretive I accretive noted interest This for call, cumulative basis. redeemed perpetual fully be on QX Series our floating at all preferred trend is

to Relations upcoming Turning our Investor calendar.

you'd Please we'll our IR participating contact in X-on-X team be schedule Midstream conference. Infrastructure week, Energy meeting and Citi like the if Conference. a Next to during XXXX the New

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

Eric Slifka

closing, our Thanks, building value began Greg. look forward in the strategic to first deliver half execute the success growth on We with half XXXX second unitholders. continuing momentum. year of our objectives we positive and In to for our of by

be the to that, and for open your Greg, questions. please Mark Operator, would With happy line Q&A. I take

Operator

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

Selman Akyol

opening bit up the I on sort it Congratulations you a quarter. you've and you you explore little sense more to your more. Maybe could on comments you now talked about the you add? maybe that more in little you tied GDSO terminals you explain with that around nice opportunities of you to have wanted explain to to talking Are just terminals in done seeing Wholesale, fill invest. just that follow are all didn't of up where wanted to that Can bit about investment I a the just trying a that. And previously? that

Eric Slifka

to the the well here terminal would bought both months. lot as we I in say X last the business Eric. it's count M&A terminals remains in business. a our retail But relative in of generally, as active, terminal -- Selman,

that a now will investment asset existing get it's have. that how that the to so think how that we some assets things could differently, make we from can also provide about I there, be we sure there's opportunity that and And capacity. unit there to And around and we real capacity operate, rail we operate out each flexibility value but are it we're trying maximizing trade be building just around have. It's

opportunity so think And assets drive us there's I through for existing value a the to well. as real just

Selman Akyol

benefits I'm wondering, all then has your we merchandising that well? efforts. about an Or future as in ongoing quarters And expect effort also, that Got just stores? out rolled it. talked to And and is should increased you through see

Mark Romaine

Yes.

Mark. are optimize marketplace. Those introduce I across optimize SKUs, pricing spread our the merchandising efforts entire not mean it's as plan, always to our new. items things our portfolio. have the change new in They're optimize tried we and So

effort. an So that's ongoing

to that we think area. in I improve continue

We that execution. continue benefit the to of our through see

through away to So that's an the something portfolio, -- we'll ongoing that. work effort continue entire you at that's and

Selman Akyol

the just and potentially your [indiscernible]? down more Houston on Any update in for then JV one And Understood. me. last

Gregory Hanson

continue for the us it's geography be up encouraged I very on front, the to Greg. by largest mean we in large the JV. another the one especially it store opens of Selman, retail U.S. markets and think And I state convenience

joint continue And mean venture. hope we yes, that grow to I to

continues Eric mentioned, market active. the retail to be M&A As pretty

that we at continue look all geography to hopefully So to opportunities that. can expand in potentially

Operator

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

Eric Slifka

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

Operator

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

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

Global Partners (GLP) 7 Aug 242024 Q2 Earnings call transcript