Global Partners LP (GLP) Bundle
A Brief History of Global Partners LP
Founded in 2005, Global Partners LP has evolved into a significant player in the energy sector, primarily focusing on gasoline distribution and terminal operations. The company has strategically expanded its operations through acquisitions, enhancing its market presence along the East Coast and into the Gulf Coast regions.
Acquisitions and Growth
In December 2023, Global Partners completed the acquisition of 25 refined product terminals from Motiva Enterprises, further solidifying its distribution capabilities. This acquisition was pivotal, increasing the company's operational footprint significantly and enhancing its logistical efficiency.
Financial Performance
As of September 30, 2024, Global Partners reported total sales of $4.4 billion for the three months ended September 30, 2024, which reflects a 5% increase compared to $4.2 billion during the same period in 2023. The nine-month sales also showed growth, totaling $12.9 billion in 2024, up from $12.1 billion in 2023.
| Period | Sales (in billions) | Gross Profit (in millions) | Net Income (in millions) |
|---|---|---|---|
| Q3 2024 | $4.422 | $286.0 | $45.9 |
| Q3 2023 | $4.221 | $228.5 | $26.8 |
| 9M 2024 | $12.977 | $789.1 | $86.5 |
| 9M 2023 | $12.083 | $693.2 | $97.2 |
Cash Distributions
Global Partners has consistently returned value to its shareholders through cash distributions. In 2024, the company paid the following cash distributions to its common unitholders:
| Payment Date | Cash Distribution (in millions) | Quarterly Period Ended |
|---|---|---|
| February 14, 2024 | $26.8 | Q4 2023 |
| May 15, 2024 | $27.5 | Q1 2024 |
| August 14, 2024 | $28.2 | Q2 2024 |
| October 23, 2024 | $28.8 (expected) | Q3 2024 |
Debt and Interest Expenses
As of September 30, 2024, Global Partners had total liabilities of approximately $2.9 billion. The company incurred significant interest expenses of $100.3 million for the nine months ended September 30, 2024, compared to $64.9 million for the same period in 2023, reflecting an increase of 54% primarily due to the issuance of 8.250% senior notes due 2032.
| Debt Instruments | Face Value (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Senior Notes due 2027 | $400.0 | 7.00% | 2027 |
| Senior Notes due 2029 | $350.0 | 6.875% | 2029 |
| Senior Notes due 2032 | $450.0 | 8.250% | 2032 |
Market Position and Future Outlook
Global Partners continues to strengthen its market position through strategic acquisitions and operational efficiencies. The company’s focus on expanding its terminal operations and enhancing its distribution network is expected to drive growth in the coming years, positioning it well within the competitive energy sector.
A Who Owns Global Partners LP (GLP)
Ownership Structure
As of 2024, Global Partners LP (GLP) operates under a master limited partnership structure. The ownership interests in Global Partners are divided into common units, Series A Preferred Units, and Series B Preferred Units. The General Partner of Global Partners is owned entirely by affiliates of the Slifka family.
Shareholder Breakdown
At September 30, 2024, the ownership of Global Partners LP is organized as follows:
| Type of Unit | Units Issued | Units Outstanding | Percentage Ownership |
|---|---|---|---|
| Series A Preferred Units | 0 | 0 | 0% |
| Series B Preferred Units | 3,000,000 | 3,000,000 | 8.0% |
| Common Limited Partners | 33,995,563 | 33,727,256 | 92.0% |
| General Partner Interest | 230,303 | 230,303 | 0.67% |
Preferred Units and Cash Distributions
In 2024, Global Partners LP has made the following cash distributions on its preferred units:
| Cash Distribution Payment Date | Series A Distribution Paid | Series B Distribution Paid |
|---|---|---|
| February 15, 2024 | $2.1 million | $1.8 million |
| May 15, 2024 | — | $1.8 million |
| August 15, 2024 | — | $1.8 million |
Financial Overview
For the nine months ended September 30, 2024, Global Partners LP reported the following financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Total Revenue | $12,977,328 |
| Cost of Sales | $12,188,260 |
| Gross Profit | $789,068 |
| Net Income | $45,922 |
| Total Assets | $3,665,115 |
| Total Liabilities | $2,941,793 |
| Partners' Equity | $723,322 |
General Partner and Management
The General Partner of Global Partners LP is wholly owned by the Slifka family. The General Partner is responsible for the management of the Partnership and employs most of the Partnership’s workforce. In 2024, the Partnership reimbursed the General Partner for expenses totaling $165.4 million for the nine months ended September 30, 2024.
Investment in Joint Ventures
Global Partners LP has a significant investment in Spring Partners Retail LLC (SPR), a joint venture with ExxonMobil. The Partnership holds a 49.99% interest in SPR, with an investment of approximately $69.5 million. As of September 30, 2024, the Partnership's investment balance in SPR was $73.5 million.
Global Partners LP (GLP) Mission Statement
Company Overview
Global Partners LP is a master limited partnership formed in March 2005. The company is one of the largest independent owners, suppliers, and operators of gasoline stations and convenience stores primarily in the Northeast United States. As of September 30, 2024, Global Partners had a portfolio of 1,589 owned, leased, and/or supplied gasoline stations, including 306 directly operated convenience stores.
Mission Statement
Global Partners LP aims to deliver superior service and quality products to its customers while maintaining a commitment to environmental stewardship and community engagement. The company focuses on enhancing shareholder value through strategic growth, operational excellence, and a focus on sustainability.
Financial Performance
As of September 30, 2024, Global Partners reported total sales of approximately $12.98 billion for the nine months ended, representing an increase compared to the previous year. The company’s gross profit for the same period was approximately $789.07 million, up from $693.24 million in the prior year.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Sales | $12,977,328,000 | $12,083,062,000 |
| Gross Profit | $789,068,000 | $693,243,000 |
| Net Income | $86,469,000 | $97,228,000 |
| Basic Net Income per Common Unit | $1.92 | $2.35 |
Operational Segments
Global Partners operates through three main segments: Wholesale, Gasoline Distribution and Station Operations (GDSO), and Commercial. Each segment contributes to the overall mission by providing various services and products, including gasoline, distillates, and convenience store offerings.
| Segment | Sales (2024 Q3) | Sales (2023 Q3) |
|---|---|---|
| Wholesale | $2,724,210,000 | $2,329,896,000 |
| Gasoline Distribution and Station Operations | $1,420,898,000 | $1,617,355,000 |
| Commercial | $277,130,000 | $273,794,000 |
Cash Distributions
In 2024, Global Partners LP has made several cash distributions to its unitholders, reflecting its strong cash flow generation capabilities.
| Payment Date | Quarter Ended | Cash Distribution per Unit | Total Cash Distribution |
|---|---|---|---|
| 02/14/2024 | 12/31/2023 | $0.7000 | $26,834,000 |
| 05/15/2024 | 03/31/2024 | $0.7100 | $27,496,000 |
| 08/14/2024 | 06/30/2024 | $0.7200 | $28,159,000 |
Environmental and Community Commitment
Global Partners LP is committed to sustainability and reducing environmental impact through responsible operations. The company engages in community initiatives and supports local economies by providing jobs and services.
Conclusion on Financial Health
As of September 30, 2024, Global Partners LP showed solid financial health with total assets amounting to $3.67 billion and total liabilities of $2.94 billion, reflecting a robust equity position. The company continues to prioritize its mission of delivering value while maintaining its environmental and community commitments.
How Global Partners LP (GLP) Works
Business Model Overview
Global Partners LP (GLP) operates primarily in the wholesale and retail distribution of gasoline and related products. The company segments its operations into three main areas:
- Wholesale Segment
- Gasoline Distribution and Station Operations
- Commercial Segment
Financial Performance
As of September 30, 2024, GLP reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Sales | $4,422,238,000 | $4,221,045,000 | $12,977,328,000 | $12,083,062,000 |
| Gross Profit | $286,049,000 | $228,520,000 | $789,068,000 | $693,243,000 |
| Net Income | $45,922,000 | $26,808,000 | $86,469,000 | $97,228,000 |
Segment Reporting
The partnership's reportable segments and their respective sales and product margins for the three and nine months ended September 30, 2024, are as follows:
| Segment | Sales (Q3 2024) | Product Margin (Q3 2024) | Sales (YTD 2024) | Product Margin (YTD 2024) |
|---|---|---|---|---|
| Wholesale Segment | $2,724,210,000 | $71,142,000 | $8,026,246,000 | $212,427,000 |
| Gasoline Distribution and Station Operations | $1,420,898,000 | $237,712,000 | $4,114,416,000 | $646,896,000 |
| Commercial Segment | $277,130,000 | $9,509,000 | $836,666,000 | $22,699,000 |
Operational Highlights
In 2024, GLP completed the acquisition of four refined-product terminals from Gulf Oil for approximately $215 million, enhancing its operational capacity and market reach.
As of September 30, 2024, the company had total assets of $3,665,115,000, with significant investments in property and equipment valued at $1,661,397,000.
Debt and Financing
As of September 30, 2024, GLP had the following borrowings:
| Borrowing Type | Amount Outstanding |
|---|---|
| Working Capital Revolving Credit Facility | $219,200,000 |
| Revolving Credit Facility | $177,000,000 |
| Senior Notes Due 2027 | $450,000,000 |
| Senior Notes Due 2029 | Not specified |
| Senior Notes Due 2032 | $450,000,000 |
Cash Distributions
In 2024, GLP distributed cash to its unitholders as follows:
| Payment Date | Distribution Amount | Quarterly Period |
|---|---|---|
| February 14, 2024 | $26,800,000 | Q4 2023 |
| May 15, 2024 | $27,500,000 | Q1 2024 |
| August 14, 2024 | $28,200,000 | Q2 2024 |
| October 23, 2024 | $28,800,000 (expected) | Q3 2024 |
Market Position
As of September 30, 2024, GLP's total liabilities stood at $2,941,793,000, reflecting its financial leveraging strategy to support growth and acquisitions. The company’s strategy includes expanding its terminal operations and enhancing distribution capabilities across various regions.
How Global Partners LP (GLP) Makes Money
Revenue Streams
Global Partners LP generates revenue through several key segments, primarily focusing on the distribution and sale of refined petroleum products. The company operates in three main segments: Wholesale, Gasoline Distribution and Station Operations (GDSO), and Commercial operations.
Wholesale Segment
The Wholesale segment is a significant contributor to GLP's revenue, encompassing sales of gasoline, gasoline blendstocks, distillates, and other oils. For the nine months ended September 30, 2024, the sales figures were as follows:
| Product Type | Sales (in thousands) |
|---|---|
| Gasoline and gasoline blendstocks | $4,909,560 |
| Distillates and other oils | $3,116,686 |
| Total Wholesale Sales | $8,026,246 |
The product margin for the Wholesale segment for the same period was reported at $212,427 thousand.
Gasoline Distribution and Station Operations (GDSO)
This segment includes sales from gasoline stations and convenience stores. For the nine months ended September 30, 2024, the sales were:
| Category | Sales (in thousands) |
|---|---|
| Gasoline | $3,683,780 |
| Station Operations | $430,636 |
| Total GDSO Sales | $4,114,416 |
The product margin for the GDSO segment was $646,896 thousand.
Commercial Segment
The Commercial segment covers various sales, including prepared food and convenience store products. For the nine months ended September 30, 2024, total sales for this segment were:
| Category | Sales (in thousands) |
|---|---|
| Commercial Sales | $836,666 |
The product margin for the Commercial segment for the same period was $22,699 thousand.
Overall Financial Performance
For the three months ended September 30, 2024, GLP reported total sales of $4,422,238 thousand, with a gross profit of $286,049 thousand. The cost of sales during this period was $4,136,189 thousand.
Cost Structure
The company incurs various operating expenses, which include:
- Selling, general, and administrative expenses: $70,495 thousand
- Operating expenses: $137,126 thousand
- Amortization expense: $2,288 thousand
Total operating expenses for the three months ended September 30, 2024, amounted to $202,596 thousand.
Acquisition and Expansion
On April 9, 2024, GLP acquired four refined-product terminals from Gulf Oil for approximately $215 million, financed through borrowings under its revolving credit facility.
Cash Distributions
Global Partners LP has maintained a policy of distributing cash to its unitholders. In 2024, the company declared several cash distributions:
| Payment Date | Distribution per Unit | Total Paid (in thousands) |
|---|---|---|
| February 14, 2024 | $0.7000 | $26,834 |
| May 15, 2024 | $0.7100 | $27,496 |
| August 14, 2024 | $0.7200 | $28,159 |
On October 23, 2024, a quarterly cash distribution of $0.7300 per unit was declared.
Debt and Financing
As of September 30, 2024, GLP had borrowings of $219.2 million on its working capital revolving credit facility and $177 million on its revolving credit facility. The total remaining availability for borrowings and letters of credit was $1.09 billion.
Conclusion
Global Partners LP's diverse revenue streams from wholesale, GDSO, and commercial operations, coupled with strategic acquisitions and consistent cash distributions, illustrate its robust financial model as of 2024.
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Resources:
- Global Partners LP (GLP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Global Partners LP (GLP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Global Partners LP (GLP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.