Recent Acquisitions Bolster Global Partners' Strategic Advantage

With a combined shell capacity of approximately 3 million barrels, these terminals expand the company's ability to store and distribute gasoline, distillates and ethanol. 

"These strategic acquisitions strengthen our terminal operations, expand our growth opportunities and enhance our earning power. 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," Slifka said during the partnership's first-quarter 2024 earnings call, held May 8.

According to the chief executive, Global Partners is looking to further enhance its presence with retail opportunities that complement the previous liquid energy terminal deals. The partnership is currently exploring possibilities for growth in the Houston market by way of Global Partners' Spring Partners Retail LLC joint venture with ExxonMobil, which closed during the second quarter of 2023.

"There seems to be a stream of potential assets that may be for sale, so we're looking at everything in the market. If we think there's something that will fit us, we'll try to go after it," Slifka said, noting that he sees the potential for complementing those assets with the company's newly acquired liquid energy terminals from the Motiva deal.

The integration of the acquired terminals from Motiva performed inline with the partnership's expectations for the first quarter of 2024, which ended March 31.

Q1 2024 by the Numbers

Looking at Global Partners' various segments, the Gasoline Distribution and Station Operations segment product margin increased $4.2 million to $187.7 million vs. $183.5 million for the same period of 2023. 

Product margin from gasoline distribution increased to $121.6 million from $120.8 million in Q1 2023, primarily due to higher fuel margins (cents per gallon). Station operations product margin — which includes convenience store and prepared food sales, sundries and rental income — increased $3.4 million to $66.1 million vs. $62.7 million in Q1 2023.

Wholesale segment product margin decreased $3.7 million to $49.4 million in the first quarter of 2024, compared to $53.1 million for the year-ago period. Product margin from gasoline and gasoline blendstocks increased $9.3 million to $29.7 million, largely due to the acquisition of the Motiva terminals. This was partially offset by less favorable market conditions in gasoline in the first quarter of 2024, according to Global Partners.

Commercial segment product margin also decreased $1.1 million to $7 million, primarily due to less favorable market conditions.

Other financial highlights for the period include:

• Net loss was $5.6 million, compared to net income of $29 million in Q1 2023.
• Adjusted EBITDA was $56 million vs. $76 million for Q1 2023.
• Gross profit was $215.1 million vs. $222.1 million for the year-ago period.
• Fuel margin increased 33 cents.
• Operating expenses increased $11.8 million to $120.1 million, primarily related to the acquisition of the terminals from Motiva.

The Gulf acquisition will be reflected in the partnership's earnings beginning in the second quarter of 2024, Slifka noted.

Waltham-based Global Partners operates or maintains dedicated storage at 53 liquid energy terminals — with connectivity to strategic rail, pipeline and marine assets — spanning from Maine to Florida and into the U.S. Gulf States. Through its network, the company distributes gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers. In addition, Global Partners owns, supplies and operates more than 1,700 retail locations across 12 Northeast states, the Mid-Atlantic and Texas.