Global Partners LP Q2 FY2025 earnings call

• Global delivered strong second quarter results in line with expectations, with net income, adjusted EBITDA, and adjusted DCF growing year-over-year in the first half of 2025.
• Continued strength across retail, terminal, and wholesale liquid energy segments. Recent terminal acquisitions expanded reach and created M&A opportunities.
• Board approved a quarterly cash distribution of $0.75 per unit, 15th consecutive increase. Distribution payable on August 14.
• Reflected on the passing of long-time Chairman Richard Slifka and welcomed new Board member Tom Jalkut.

Retail Segment: GDSO product margin decreased $13.6 million to $207.9 million in the quarter, primarily due to lower site count and adverse weather in the Northeast. Gasoline Distribution product margin decreased $9.4 million to $137.9 million, reflecting lower fuel volumes. Station Operations product margin, impacted by weather and lower site count, decreased $4.2 million to $70 million. At quarter end, the portfolio had 1,553 sites, 42 fewer than prior year. Wholesale Segment: Second quarter product margin was $91.7 million. Gasoline and gasoline blendstocks product margin decreased $11.6 million to $58.8 million due to less favorable market conditions, while distillates and other oils product margin increased $11.4 million to $32.9 million. Commercial Segment: Product margin decreased $0.1 million to $6.1 million, in part due to less favorable market conditions in bunkering.

• Full-year maintenance capital expenditures anticipated to be approximately $60 million to $70 million.
• Expansion capital expenditures (excluding acquisitions) anticipated to be approximately $65 million to $75 million in 2025, with the midpoint of expansion CapEx range down $10 million from year-end 2024 call.
• Current CapEx estimates depend on timing of project completion, equipment and workforce availability, weather, and unanticipated events/opportunities.

• Assumptions and future performance subject to wide range of business risks, uncertainties, and factors that could cause actual results to differ materially from projections.

Q: Can you quantify the impact of weather on the quarter?

A: It's hard to quantify exactly, but it impacted May and early June, was material with 13 weekends of consecutive rain in the Northeast, affecting merchandising, packed sales, and fuel side.

Q: How close are you to being done with site rationalization?

A: Not much more to go, very satisfied with current portfolio, with a handful of sites potentially to convert or divest, and annual reviews continuing.

Q: Is CPG strength tied to acquired terminals?

A: No, it's independent from terminals, related to supply advantages and vertical integration in Wholesale segment.

Q: Comment on acquisition outlook and bid-ask spreads?

A: Bid-ask spreads wide on terminaling side, retail side remains active, with opportunities out there but spreads wide.