Global Partners Lp · NYSE:GLP
Global Partners Lp — Q4 2023 Earnings Presentation
27 slides from Global Partners Lp's earnings presentation, March 2024
Slide 1: Global Partners LP Fourth-Quarter 2023 Investor Presentation
1 Global Partners LP Fourth-Quarter 2023 Investor Presentation March 2024
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 The Business • Master Limited Partnership (NYSE “GLP”) • One of the largest independent owners, suppliers and operators of gasoline stations and convenience stores • Expansive network of liquid energy terminals spanning from Maine to Florida and into the U.S. Gulf states • Strat
Slide 5: Recent Highlights
5 Recent Highlights • Completed acquisition of 25 refined product terminals from Motiva Enterprises for $313.2 million in cash, including inventory ‒ The assets are located on the Atlantic Coast, in the Southeast and in Texas and have an aggregate shell capacity of 8.4 million bbls ‒ Acquisition und
Slide 6: Motiva Terminals are Strategically Located, Well-Maintained Assets, Providing Critical Midstream Infrastructure
6 Motiva Terminals are Strategically Located, Well-Maintained Assets, Providing Critical Midstream Infrastructure Terminals Connected to Highly- Utilized Refined Product Pipelines • Diversifies Global into new geographies outside the Plantation Pipeline Northeast, providing platforms for growth acro
Slide 7: DNA and Strategy
7 DNA and Strategy Vertical Integration: We operate a uniquely integrated refined products distribution system through our terminal network, wholesale market presence and large portfolio of retail gasoline stations. This integrated model drives product margin along each step of the value chain. Sour
Slide 8: Our Network by the Numbers (as of 12/31/2023)
8 Our Network by the Numbers (as of 12/31/2023) 49 Bulk Petroleum Product Terminals 341 Company-Operated 18.3M Barrels of Convenience Stores Storage Capacity ~374K Barrels of ~1,700 Gas Stations Product Sold Daily Owned, Leased or Supplied
Slide 9: Acting Thoughtfully and Sustainably for Our Stakeholders
9 Acting Thoughtfully and Sustainably for Our Stakeholders Fueling the Future Energy Efficiency and Conservation Social Responsibility • Years of experience in the sourcing and • Deploy advanced remote-energy monitoring • Global For Good, our charitable nonprofit distribution of biofuels technology
Slide 10: Segment Overview
10 Segment Overview
Slide 11: Business Overview by Segment
11 Business Overview by Segment Gasoline Distribution & Wholesale Commercial Station Operations • Retail gasoline sales • Bulk purchase, movement, • Sales and deliveries to end user – Branded and unbranded storage and sale of: customers of: • Rental income from: – Gasoline and gasoline blendstocks –
Slide 12: GDSO – One of the Largest Operators of Gasoline Stations and Convenience Stores in the Northeast
12 GDSO – One of the Largest Operators of Gasoline Stations and Convenience Stores in the Northeast ME: 33 Locations • Large gasoline station and C-store portfolio VT: 90 Locations • Supply 1,627 locations in 12 states NH: 97 Locations – Own or control 825 sites; ~47% owned NY: 325 Locations • New-t
Slide 13: GDSO – Competitive Strengths
13 GDSO – Competitive Strengths Strategic Advantages Multiple Brands • Vertical integration: Integration between supply, terminaling and wholesale businesses and gas station sites • Scale: 1,627 sites with volume of 1.6 billion gallons (TTM 12/31/2023) • Preeminent locations: Portfolio of “best-in-c
Slide 14: JV with ExxonMobil Expands Global's Reach into the Large and Growing Houston Market
14 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 15: C-Store Market Remains Fragmented with Significant Opportunity for Consolidation
15 C-Store Market Remains Fragmented with Significant Opportunity for Consolidation U.S. Convenience Store Composition By Chain Size(1) 501+ Stores 1-10 Stores 21% of Operators (32,003) • Strong track record of integrating 63% of Operators (95,906) acquisitions 201-500 Stores 4% of Operators • Fragm
Slide 16: Wholesale and Commercial Terminals
16 Wholesale and Commercial Terminals Portland, ME: 665K Revere, MA: 608K Stampede, ND: 452K Burlington, VT: 419K Chelsea, MA: 685K Albany, NY: 1,402K Sandwich, MA: 99K Clatskanie, OR: 200K Beulah, ND: 280K Newburgh-Warex, NY (3): Port of Providence, RI: 480K Newburgh, NY: 429K 956K Glenwood Landing
Slide 17: Commercial Segment
17 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 fro
Slide 18: Financial Overview
18 Financial Overview
Slide 19: Q4 2023 Financial Performance
19 Q4 2023 Financial Performance Product Margin Q4 2023 GDSO 80% Station ($ in millions) Q4 2023 Q4 2022 Operations 22% Product margin(1) $305.7 $303.8 Gasoline and Gasoline Blendstocks Gross profit $280.4 $281.6 8% Net income $55.3 $57.5 Wholesale 17% EBITDA(1) $110.9 $105.3 Distillates & Other Oil
Slide 20: FY 2023 Financial Performance
20 FY 2023 Financial Performance Product Margin FY 2023 GDSO 78% Station ($ in millions) FY 2023 FY 2022 Operations 26% Product margin(1) $1,068.2 $1,185.3 Gasoline and Gasoline Blendstocks Gross profit $973.6 $1,097.6 10% Net income $152.5 $362.2 Wholesale 19% EBITDA(1) $356.4 $565.1 Distillates &
Slide 21: Volume and Margin History
21 Volume and Margin History Consistency Variability • Driving cars & trucks • Market and economic conditions • Heating buildings and homes • Weather • Term contracts • Seasonality • Rental income and C-Store sales C-Store & Sundry Rent Total Total CPG Retail CPG* 40 $350.0 ($ in millions) (Cents pe
Slide 22: Balance Sheet Highlights as of December 31, 2023
22 Balance Sheet Highlights as of December 31, 2023 • Liquid receivables and inventory comprising 27% of total assets • Remaining assets are comprised primarily of $1.5B of conservatively valued fixed assets – Strategically located, non-replicable terminals and gas stations • $16.8M (1%) of total de
Slide 23: Appendix
23 Appendix
Slide 24: Financial Reconciliations – Product Margin
24 Financial Reconciliations – Product Margin (In thousands) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2019 2020 2021 2022 2023 2022 2023 Reconciliation of gross profit to product margin Wholesale segment: Gasoline and gasoline blendstocks $ 86,661 $ 101,806 $ 86,289 $ 106,
Slide 25: Financial Reconciliations – EBITDA and Adjusted EBITDA
25 Financial Reconciliations – EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2019 (2) 2020 (3) 2021 (4) 2022 2023 2022 2023 Reconciliation of net income to EBITDA and adjusted EBITDA Net income $ 35,178 $ 101,682 $ 60,796 $ 362,207 $ 15
Slide 26: Financial Reconciliations – Distributable Cash Flow
26 Financial Reconciliations – Distributable Cash Flow (In thousands) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2019 (4) 2020 (5) 2021 (6) 2022 (7) 2023 2022 2023 Reconciliation of net income to distributable cash flow and adjusted distributable cash flow Net income $ 35,17
Slide 27: Balance Sheet as of December 31, 2023
27 Balance Sheet as of December 31, 2023 (In thousands) (Unaudited) Assets Liabilities and partners' equity Current assets: Current liabilities: Cash and cash equivalents $ 19,642 Accounts payable $ 648,717 Accounts receivable, net 551,764 Working capital revolving credit facility - current portion