Global Partners LP · NYSE:GLP
Global Partners LP — Q3 2024 Earnings Presentation
25 slides from Global Partners LP's earnings presentation, Nov 13, 2024
Slide 1: Global Partners LP Q3 2024 Investor Presentation
Global Partners LP Q3 2024 Investor Presentation
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Certain statements and information in this presentation may constitute “forward-looking statements.” The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could” or other similar expressions are intended to identify forward-looking
Slide 3: Use of Non-GAAP Financial Measures
3 Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures relating to Global Partners. A reconciliation of these measures to the most directly comparable GAAP measures is available in the Appendix to this presentation. For additional detail regarding selected items
Slide 4: Global at a Glance
4 Global at a Glance • Master Limited Partnership (NYSE “GLP”) that • Dedicated storage at 53 liquid energy terminals completed its initial public offering in 2005 spanning from Maine to Florida and into the U.S. Gulf States • One of the largest independent owners, operators and/or • Leading wholesa
Slide 5: Investment Highlights
5 Investment Highlights • Successful history of acquiring, integrating and operating terminal and retail fuel assets • Operational expertise and scale enable us to realize significant operational synergies and cost benefits • Integrated business model drives volume and margin enhancement • Solid bal
Slide 6: More than $500 Million in Recent Terminal Investments
6 More than $500 Million in Recent Terminal Investments Acquired 25 liquid energy terminals from Motiva Enterprises for $313MM in cash • Strategically located on the Atlantic Coast, the Southeast, and in Texas, with 8.4MM bbls of aggregate shell capacity • Backed by minimum take-or-pay throughput ag
Slide 7: DNA and Strategy
7 DNA and Strategy Integration: We operate a uniquely integrated refined products distribution system through our terminal network, wholesale market Sourcing and Logistics presence and large portfolio of retail Origin and Transportation - Delivery and Storage gasoline stations. This integrated model
Slide 8: Acting Thoughtfully and Sustainably for our Stakeholders
8 Acting Thoughtfully and Sustainably for our Stakeholders FUELING THE FUTURE ENERGY EFFICIENCY AND CONSERVATION • Years of experience in the sourcing and • Deploy advanced remote-energy monitoring distribution of biofuels technology to audit and optimize terminal and c-store electricity usage • Con
Slide 9: Segment Overview
GLOBAL PARTNERS Segment Overview
Slide 10: Business Overview by Segment
10 Business Overview by Segment Gasoline Distribution & Wholesale Commercial Station Operations Retail gasoline sales Bulk purchase, Sales and deliveries to end user – Branded and unbranded movement, storage, and sale of: customers of: Rental income from: – Gasoline and gasoline blendstocks – Unbran
Slide 11: GDSO: One of the Largest Gasoline and Convenience Store Operators in the Northeast
11 GDSO: One of the Largest Gasoline Large gasoline station and C-store portfolio and Convenience Store Operators Supply 1,589 locations in the Northeast • Own or control 795 sites; ~45% owned 89 97 32 New-to-industry and organic projects • Retail site development and expansion 375 55 • Merchandisin
Slide 12: GDSO – Competitive Strengths
12 GDSO – Competitive Strengths Strategic Advantages Multiple Brands Integrated Business: Integration between supply, terminalling, and wholesale businesses and gas station sites Scale: 1,589 sites with volume of 1.6 billion gallons (TTM 9/30/2024) Preeminent locations: Portfolio of “best-in-class”
Slide 13: JV with ExxonMobil
13 JV with ExxonMobil Expands Global’s Reach into the Large and Growing Houston Market • Houston is 4th largest city in the U.S., with approximately 7 million residents • Over the past decade Houston has added 1.1 million new residents, making it the fastest- growing city among the 10 most populous
Slide 14: GDSO – Opportunities
14 501+ Stores GDSO – Opportunities 1-10 Stores 22% of Operators (32,864) 63% of Operators (95,753) C-Store Market Remains Fragmented with Significant Opportunity for 201-500 Stores Consolidation 3% of Operators (5,186) 51-200 Stores U.S. Convenience Store Composition 6% of Operators (9,033) By Chai
Slide 15: Wholesale and Commercial Terminal Network
15 Wholesale and Commercial Terminal Network Amounts in Barrels* New Haven, CT (3): 1,344K Charlotte, NC (2): 488K Wethersfield, CT: 183K Greensboro, NC: 252K Bridgeport, CT: 110K Fayetteville, NC: 215K Port Everglades, FL (3): 1,864K Apex, NC: 214K Tampa, FL: 599K Stampede, ND: 452K Doraville, GA (
Slide 16: Commercial Segment
16 Commercial Segment Delivered fuel business – Commercial and industrial customers as well as federal agencies, states, and municipalities – Through competitive bidding process or through contracts of various terms Bunkering – Marine vessel fueling – Custom blending and delivered by barge or from a
Slide 17: Financial Overview
GLOBAL PARTNERS Financial Overview
Slide 18: Q3 2024 Financial Performance
18 Q3 2024 Financial Performance Product Margin Q3 2024 ($ in millions) Q3 2024 Q3 2023 Distillates & Other Oils 9% Product margin(1) $318.3 $252.1 Wholesale Gross profit $286.0 $228.5 22% GDSO 75% Net income $45.9 $26.8 Station Gasoline and Operations Gasoline Blendstocks 13% EBITDA(1) $119.1 $76.7
Slide 19: Volume and Margin History
19 Volume and Margin History Consistency Variability • Driving cars and trucks • Market and economic conditions • Heating buildings and homes • Weather • Term contracts • Seasonality • Rental income and C-Store sales C-Store & Sundry Rent Total CPG Retail CPG* $350.0 ($ in millions) (Cents per gallo
Slide 20: Balance Sheet Highlights (as of September 30, 2024)
20 Balance Sheet Highlights (as of September 30, 2024) • Liquid receivables and inventory comprising 26% of total assets • Remaining assets are comprised primarily of $1.7B of conservatively valued fixed assets • Strategically located, non-replicable terminals and gas stations • $219.2M (14%) of tot
Slide 21: Appendix
GLOBAL PARTNERS Appendix
Slide 22: Financial Reconciliations: Product Margin
22 Financial Reconciliations: Product Margin (In thousands) (Unaudited) Trailing Twelve Three Months Ended Nine Months Ended Months Ended Year Ended December 31, September 30, September 30, September 30, 2019 2020 2021 2022 2023 2023 2024 2023 2024 2024 Reconciliation of gross profit to product marg
Slide 23: Financial Reconciliations: EBITDA & Adjusted EBITDA
23 Financial Reconciliations: EBITDA & Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended Nine Months Ended Year Ended December 31, September 30, September 30, 2019 (2) 2020 (3) 2021 (4) 2022 2023 2023 2024 2023 2024 Reconciliation of net income to EBITDA and adjusted EBITDA Net income $
Slide 24: Financial Reconciliations: Distributable Cash Flow
24 Financial Reconciliations: Distributable Cash Flow (In thousands) (Unaudited) Three Months Ended Nine Months Ended Year Ended December 31, September 30, September 30, 2019 (4) 2020 (5) 2021 (6) 2022 (7) 2023 2023 2024 2023 2024 Reconciliation of net income to distributable cash flow and adjusted
Slide 25: Balance Sheet (as of September 30, 2024)
25 Balance Sheet (as of September 30, 2024) (In thousands) (Unaudited) Assets Liabilities and partners' equity Current assets: Current liabilities: Cash and cash equivalents $ 20,567 Accounts payable $ 454,478 Accounts receivable, net 471,898 Working capital revolving credit facility - current porti