Global Partners LP (NYSE: GLP) (“Global” or the “Partnership”) today reported financial results for the first quarter ended March 31, 2024.
CEO Commentary
Eric Slifka, the Partnership’s President and Chief Executive Officer, said, “Our Gasoline Distribution and Station Operations segment performed well in the first quarter, posting healthy margins that partly offset less favorable market conditions in our Wholesale and Commercial segments. Specific to our Wholesale segment, certain products were negatively impacted by the timing of mark-to-market valuations, which have largely recovered in the month of April. In the first quarter, we successfully completed the integration of liquid energy terminals acquired in December from Motiva Enterprises, and those assets performed in line with our expectations for the quarter.
“In April, we closed on the purchase of four liquid energy terminals in the Northeast from Gulf Oil Limited Partnership. This acquisition, which will be reflected in our results beginning in the second quarter of this year, further demonstrates our commitment to increasing the scale and strength of our growing energy distribution network,” Slifka said. “We are excited about the new opportunities the Gulf and Motiva transactions create to build on our strategic advantage and serve customers in these high-demand markets.”
First-Quarter 2024 Financial Highlights
Net loss was $5.6 million, or $0.37 per common limited partner unit, for the first quarter of 2024 compared with net income of $29.0 million, or $0.70 per diluted common limited partner unit, in the same period of 2023.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $56.9 million in the first quarter of 2024 compared with $78.1 million in the same period of 2023.
Adjusted EBITDA was $56.0 million in the first quarter of 2024 versus $76.0 million in the same period of 2023.
Distributable cash flow (DCF) was $15.8 million in the first quarter of 2024 compared with $46.3 million in the same period of 2023.
Adjusted DCF was $16.0 million in the first quarter of 2024 compared with $46.3 million in the same period of 2023.
Gross profit in the first quarter of 2024 was $215.1 million compared with $222.1 million in the same period of 2023.
Combined product margin, which is gross profit adjusted for depreciation allocated to cost of sales, was $244.1 million in the first quarter of 2024 compared with $244.8 million in the same period of 2023.
Combined product margin, EBITDA, adjusted EBITDA, DCF and adjusted DCF are non-GAAP (Generally Accepted Accounting Principles) financial measures, which are explained in greater detail below under “Use of Non-GAAP Financial Measures.” Please refer to Financial Reconciliations included in this news release for reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures for the three months ended March 31, 2024, and 2023.
GDSO segment product margin was $187.7 million in the first quarter of 2024 compared with $183.5 million in the same period of 2023. Product margin from gasoline distribution increased to $121.6 million from $120.8 million in the year-earlier period, primarily due to higher fuel margins (cents per gallon). Product margin from station operations totaled $66.1 million compared with $62.7 million in the first quarter of 2023.
Wholesale segment product margin was $49.4 million in the first quarter of 2024 compared with $53.1 million in the same period of 2023. Gasoline and gasoline blendstocks product margin was $29.7 million compared with $20.4 million in the same period of 2023, largely due to the acquisition of 25 refined product terminals and related assets from Motiva Enterprises in December 2023, partially offset by less favorable market conditions in gasoline. Product margin from distillates and other oils was $19.7 million in the first quarter of 2024 compared with $32.7 million in the same period of 2023, primarily due to less favorable market conditions in residual oil.
Commercial segment product margin was $7.0 million in the first quarter of 2024 compared with $8.1 million in the same period of 2023, primarily due to less favorable market conditions.
Total sales were $4.1 billion in the first quarter of 2024 compared with $4.0 billion in the same period of 2023. Wholesale segment sales were $2.6 billion in the first quarter of 2024 compared with $2.5 billion in the same period of 2023. GDSO segment sales were $1.2 billion in the first quarter of 2024 versus $1.3 billion in the same period of 2023. Commercial segment sales were $278.6 million in the first quarter of 2024 compared with $257.9 million in the same period of 2023.
Total volume was 1.6 billion gallons in the first quarter of 2024 compared with 1.4 billion gallons in the same period of 2023. Wholesale segment volume was 1.1 billion gallons in the first quarter of 2024 compared with 928.6 million gallons in the same period of 2023. GDSO volume was 364.3 million gallons in the first quarter of 2024 compared with 379.2 million gallons in the same period of 2023. Commercial segment volume was 120.7 million gallons in the first quarter of 2024 compared with 99.7 million gallons in the same period of 2023.
Recent Developments
- Global completed its acquisition of four liquid energy terminals from Gulf Oil Limited Partnership for $212.3 million. The terminals, which are strategically located in Chelsea, MA, New Haven, CT, Linden, NJ, and Woodbury, NJ, further enhance Global’s position in the energy economy of the Northeast.
- Global fully redeemed all of its outstanding Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Series A Preferred Units”) at a redemption price of $25.00 per share, plus a $0.514275 per unit cash distribution for the period from February 15, 2024 through April 14, 2024. Effective April 15, 2024, the Series A Preferred Units are no longer outstanding.
- Global announced a cash distribution of $0.7100 per unit ($2.84 per unit on an annualized basis) on all of its outstanding common units from January 1, 2024 through March 31, 2024. The distribution will be paid on May 15, 2024 to unitholders of record as of the close of business on May 9, 2024.
