GLP - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

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

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

Sean Geary

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

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

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

Eric Slifka

providing call. times that today's Partners, a Good and our joining us rooted in is of morning, on long to rebuilding. infrastructure recovery thank for in history everyone, service, At Global you depend on essential especially earnings of and and commitment communities products

the terminal work we our a moment exceptional to our team more across earnings take Milton. restoring Before business, commend Hurricane the resilience at to it's results, want to Helene during critical quickly fuel review support I in we resources in is strength our and and dedication Tampa recovery. of Their operations and This than that the our ensured were proudly available community's to empowering serve. role regions

key our quarter. dynamics Station our us returns. assets to expectations. in to favorable financial on We to and drive delivered year-over-year Gasoline Operations are optimize market and the demonstrating Wholesale execute capitalize retail Turning our acquire, exceeding across In ability conditions enabled Commercial segment, strategy gains supply and assets Distribution our in of In results. segment, to our invest each our on that our metrics,

enhance to long-term provides integrated the Our our potential growth. and market model business leadership

are long-term from acquired liquid the to unlock the platform The offerings, energy value assets XX past months network. Enterprises goals, continuing that Motiva Gulf strategic a full reach. integrate Oil. terminals operational of our We projects new, offer about XX to and for over the bring opportunity We're market expanding our with excited the to align these enhancing efficiency product our and terminals

renewable which product week, we East including terminal liquid hub Providence, capacity products, XXX-acre tanks ExxonMobil access. acquisition XX Island a storing distillates, barrels strategic the the a a from terminal, deepwater features of in total XXX,XXX with Last serves completed for Rhode fuels Oil Corporation. energy dock shell as additives, gasoline, The and of

Additional potential nonfuel diversification allows estate portfolio. of acreage further the for real our use

the three In million deploy Transportation of Vehicle This of National our $XX business, to Electric Department EV next a provide years. is to accelerate selected the across retail MassDOT's charging reliable experience own and customers. one a companies X Massachusetts to NEVI, locations we Global stations fast of Program, the Infrastructure strategic or safe, alongside and work DC to the are network our retail install charging allocation over our EV plans to unique to at enjoyable opportunity for

MassDOT We the to development, proud reliable sites Commonwealth. important of to for our and DC the are list on included of partner we first fast-charging number the finalizing be to in of are initiative with tranche increase this locations

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

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

Gregory Hanson

good everyone. morning, and Eric, Thanks,

million the with that and was [ net million unless note third will million XXXX adjusted $XX.X $XXX compared be compared review $XX.X million XXXX. $XX.X of EBITDA million with please in with $XX.X flow with income Adjusted we the of was previous third of million As compared the quarter noted, comparisons was quarter $XX.X third and numbers, quarter otherwise was in compared 'XX ] DCF $XX.X the year. $XX.X cash million with in million. the Distributable all

Our as X.XXx distributions after our September XX last coverage X.XXx XX-month distribution was in to of or unitholders. preferred factoring

QX which margin, margin to from to from and and product million per gallon $XXX.X to reflecting 'XX increased $X.X $XX.X $X.XX fuel margins in sundries million higher increased million 'XX, quarter $XX.X basis, store $XXX.X million. margin rental our GDSO convenience the increased in quarter in segment to $XX.X million, gasoline due a food to decreased conversions product sites. in QX year-over-year. income third $X.XX details. includes fuel 'XX. prepared Turning part company-operated primarily million the Station and the to $X.XX in of of sales, cents certain divestiture Operations distribution margins On Product

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

In Retail operate addition, XX under our we Partners venture. Spring sites joint

Looking at Wholesale segment. the

$XX.X from $XX $XX.X Third due to primarily million, gasoline million margin million gasoline acquisition the $XX.X market favorable conditions. blend product and quarter Motiva more 'XX million. margin Product increased and some of to to terminals increased stocks

million, increased market margin terminals oils favorable to more conditions the market primarily margin Product also Gulf increased to $XX.X million, benefited margin product to of $XX.X in Commercial Our from residual $X.X conditions due oil. million in million to part distillates distillates more bunkering. acquisition $X.X segment from favorable and due other April. product in and the and

to Turning expenses.

terminal Motiva related primarily increased the the the recent acquisition $XX.X incentive a compensation, QX 'XX Gulf. million Terminal facilitate SG&A this the third average in increased X.XX% increases to to operating long-term expense in and benefits largely Interest expense and other to related past million interest to were in primarily and due and result higher used notes on expenses $XX.X to facility of million, Our acquisition. $XX.X $X $XX senior quarter $XXX.X credit third Gulf the million 'XX, Motiva to million increased expense wages expenses. which as to the acquisitions balances million of from due to in quarter, issued January, our

quarter CapEx of from primarily businesses. gasoline million CapEx, million to terminalling expansion CapEx was in the maintenance station of related and $XX.X million, $XX.X our of consisting investments and third $XX.X

$XX year gasoline expansion our For currently in a for XXXX, of range the related CapEx $XX through Based the expect range we $XX 'XX are from investments on projects the of and anticipated to planned $XX million million to revising terminals, our maintenance million. to expectation of CapEx full our million million. we previous to to stations million year $XX in $XX end of the our of

estimates of weather equipment completion, or part and timing the These maintenance in availability depend on additional events current of or investments. unanticipated project requiring and opportunities workforce,

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

borrowings September $XXX.X million on capital and of have XX, working we facility. As revolver outstanding revolving million outstanding $XXX our our credit on

Relations meeting Turning Utilities Investor the our Energy you'd be Leveraged we'll TD upcoming Energy like to weeks, Wells a during our team the and Midstream Please Securities participating In coming if and schedule Conference, Investor Fargo the Symposium. in calendar. contact conference. BofA Finance Relations the Conference to the

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

Eric Slifka

and I opportunities and forward success. commitment to growth thanks further momentum We ahead. Greg. Global to express quarters work in to you, look want hard my entire driving this continuing pursuing team the to your our the for Thank for

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

Operator

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

Selman Akyol

quarter. nice a on Congrats

at start just the are anticipating? me Let impact that top. all the from elections at you guys Any

Eric Slifka

see to with commitments I business, parts everything got we've how have a many it. of itself out. very long-term mean we mean, I scaled plays durable business in

we're a execute. our solid position whatever I way, may And to to in think so come continue

Selman Akyol

a And you alluded large it. but most on Got do XXX terminal in acres? plan in you acres to doing this footprint, with your those what recent acquisition, then all comments the off

Eric Slifka

good And I estate deepwater advantage do to good got then some right? there's bottom got too. bought going well. it, I those we're that I'm tankage and is think regardless opportunities And it's real there, there's It's dock. but to there's great if of saying opportunity racks. line other anything we're asset, think as great opportunities, the for land take with access, there, a And we a good tomorrow doing not

Selman Akyol

you GDSO? a or it's it. little Got could acquisitions, for talk bit terminals Maybe whether about the outlook

Eric Slifka

think it's but mean been maintain those selective. very to busy, going I right, got we've make right and we we're to can to be deals Yes. to accretive high, the and we busy. returns. We're the on deliver relatively discipline that try that continues are company find still that fit Global, to Valuations

Selman Akyol

there Is thought? I to in comments you then done Just fairly around any And it. it down is lines, Is a partnership static since there? guess, competitive of just more along Houston, your and talk thinking it been than it. that? in market you've Got about in just update about terms any anything it's those

Eric Slifka

mean down organized the to I would there had efficient it in value that we we're and that haven't Yes. continue say tweak I that make long. and we sure most way. drive

a is in on we that can more outlook that there's looking market. do and really we're positive think I to if partnership, see

Selman Akyol

then And last one me. for it. Got

chargers you a maybe your guess, I Anything and you from you're could finalize number chargers can across You about EV of see to level? about talked But EV first trying tranche. talk a system? your high

Eric Slifka

to be not it's in financially huge limit around do what scale, mean, try but to we're I disciplined Yes. risk. to -- the going terms we

making as out really in keep are want innings early customers way sure important, And we in have but to right? partnering lid disciplined places any so we're may really on a try is we network a we do that that develop sure government and that critical, to it making our and make the desirable build business, risk is that sure It's with still we a really out. in for network we that that

Selman Akyol

have I did And X lied, it. I Got more.

CPG, your increase say in be should there, that nice year-over-year. on about higher? you we to moving durable how anything thinking just a Anything very is, So showed

Gregory Hanson

and Selman. mean, X summer. then too. over I Greg, mean can in I some give cents, I Mark think good saw volatility weigh I'll my the It's we

[ at were wholesale down $X.XX from If period. to X/XX X/XX look RBOB you ] prices

and to prices. So it the some for us those margin opportunity of prices in from versus glean movement some the had difference the Street wholesale the

consolidation that changed what standpoint. a we and think continue market to the It is to said has from continues have believe consolidate. I others too what

lever still got have need pull. fragmented, highly that's the on biggest it's margins, you've scale smaller it fuel higher and to to the consolidate. that continues breakeven Although costs them operators for to And

I So margins. typically think volatility fuel they'll good for is our --

we think could those we're I favorable you to be going don't last have and But for creeping them down know the to do going betting are at, do it couple again. fuel level you're less higher So our of have years. on business. and structurally, I see I volatility, over think seen margins. margins tightness what not

Operator

Thank you.

We like to end have back reached the now Mr. of for to turn comments. question-and-answer Slifka over I'd session. closing floor the the

Eric Slifka

We you look Thanksgiving. updated progress, hope joining us and to Thank Thanks, forward everyone. keeping this on everybody for our morning. has wonderful a I you

Operator

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

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

Global Partners (GLP) 8 Nov 242024 Q3 Earnings call transcript