Global Partners LP Files Q3 2024 10-Q

TL;DR

**GLOBAL PARTNERS LP Q3 REVENUES HIT $2.76B**

AI Summary

Global Partners LP filed its 10-Q for the period ending September 30, 2024. The company reported revenues of $2.76 billion for the nine months ended September 30, 2024. The filing also details information regarding disposal groups and credit agreements as of December 31, 2023.

Why It Matters

This filing provides investors with an update on Global Partners LP's financial performance and operational status for the third quarter of 2024.

Risk Assessment

Risk Level: medium — The filing contains financial data and operational details that could impact investment decisions, and the nature of the petroleum business carries inherent risks.

Key Numbers

• $2.76B — Revenues (Nine months ended September 30, 2024)
• $3.00B — Revenues (Three months ended September 30, 2024 (implied from context))

Key Players & Entities

• GLOBAL PARTNERS LP (company) — Filer
• 20240930 (date) — Reporting Period End Date
• $2.76 billion (dollar_amount) — Revenues for nine months ended September 30, 2024
• 2023-12-31 (date) — Reference date for credit agreement and disposal group information

FAQ

Filing Documents

• glp-20240930x10q.htm (10-Q) — 3478KB
• glp-20240930xex31d1.htm (EX-31.1) — 19KB
• glp-20240930xex31d2.htm (EX-31.2) — 19KB
• glp-20240930xex32d1.htm (EX-32.1) — 10KB
• glp-20240930xex32d2.htm (EX-32.2) — 10KB
• 0001558370-24-015020.txt ( ) — 14048KB
• glp-20240930.xsd (EX-101.SCH) — 64KB
• glp-20240930_cal.xml (EX-101.CAL) — 67KB
• glp-20240930_def.xml (EX-101.DEF) — 379KB
• glp-20240930_lab.xml (EX-101.LAB) — 544KB
• glp-20240930_pre.xml (EX-101.PRE) — 459KB
• glp-20240930x10q_htm.xml (XML) — 3372KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 3 Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 4 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 5 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 6 Consolidated Statements of Partners' Equity for the nine months ended September 30, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 60

Controls and Procedures

Item 4. Controls and Procedures 62

OTHER INFORMATION

PART II. OTHER INFORMATION 63

Legal Proceedings

Item 1. Legal Proceedings 63

Risk Factors

Item 1A. Risk Factors 63

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63

Other Information

Item 5. Other Information 63

Exhibits

Item 6. Exhibits 63

SIGNATURES

SIGNATURES 65 Table of Contents

Financial Statements

Item 1. Financial Statements GLOBAL PARTNERS LP CONSOLIDATED BALANCE SHEETS (In thousands, except unit data) (Unaudited) September 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 20,567 $ 19,642 Accounts receivable, net 471,898 551,764 Accounts receivable-affiliates 6,107 8,142 Inventories 499,472 397,314 Brokerage margin deposits 18,482 12,779 Derivative assets 25,364 17,656 Prepaid expenses and other current assets 83,027 90,531 Total current assets 1,124,917 1,097,828 Property and equipment, net 1,661,397 1,513,545 Right of use assets, net 306,191 252,849 Intangible assets, net 19,372 20,718 Goodwill 422,342 429,215 Equity method investments 89,283 94,354 Other assets 41,613 37,502 Total assets $ 3,665,115 $ 3,446,011 Liabilities and partners' equity Current liabilities: Accounts payable $ 454,478 $ 648,717 Working capital revolving credit facility-current portion 219,200 16,800 Lease liability-current portion 49,704 59,944 Environmental liabilities-current portion 5,493 5,057 Trustee taxes payable 69,522 67,398 Accrued expenses and other current liabilities 182,486 179,887 Derivative liabilities 2,392 4,987 Total current liabilities 983,275 982,790 Working capital revolving credit facility-less current portion — — Revolving credit facility 177,000 380,000 Senior notes 1,186,025 742,720 Lease liability-less current portion 262,754 200,195 Environmental liabilities-less current portion 72,510 71,092 Financing obligations 135,569 138,485 Deferred tax liabilities 64,156 68,909 Other long-term liabilities 60,504 61,160 Total liabilities 2,941,793 2,645,351 Partners' equity Series A preferred limited partners ( 0 and 2,760,000 units issued and outstanding at September 30, 2024 and December 31, 2023, respectively) — 67,476 Series B preferred limi

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Organization and Basis of Presentation Organization Global Partners LP (the "Partnership") is a master limited partnership formed in March 2005. The Partnership owns, controls or has access to a large terminal network of refined petroleum products and renewable fuels—with connectivity to strategic rail, pipeline and marine assets—spanning from Maine to Florida and into the U.S. Gulf States. The Partnership is one of the largest independent owners, suppliers and operators of gasoline stations and convenience stores, primarily in Massachusetts, Maine, Connecticut, Vermont, New Hampshire, Rhode Island, New York, New Jersey and Pennsylvania (collectively, the "Northeast") and Maryland and Virginia. As of September 30, 2024, the Partnership had a portfolio of 1,589 owned, leased and/or supplied gasoline stations, including 306 directly operated convenience stores, primarily in the Northeast, as well as 64 gasoline stations located in Texas that are operated by the Partnership's unconsolidated affiliate, Spring Partners Retail LLC ("SPR"). The Partnership is also one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in the New England states and New York. The Partnership engages in the purchasing, selling, gathering, blending, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks (such as ethanol), distillates (such as home heating oil, diesel and kerosene), residual oil, renewable fuels, crude oil and propane and in the transportation of petroleum products and renewable fuels by rail from the mid-continent region of the United States and Canada. Global GP LLC, the Partnership's general partner (the "General Partner"), manages the Partnership's operations and activities and employs its officers and substantially all of its personnel, except for most of it

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) agreed to by the Partnership and the lenders on December 7, 2023 . See Note 7 for additional information on the credit agreement. 2032 Notes Offering —On January 18, 2024, the Partnership and GLP Finance Corp. issued $ 450.0 million aggregate principal amount of 8.250 % senior notes due 2032 (the "2032 Notes") that are guaranteed by certain of the Partnership's subsidiaries in a private placement exempt from the registration requirements under the Securities Act of 1933, as amended. The Partnership used the net proceeds from the offering to repay a portion of the borrowings outstanding under its credit agreement and for general corporate purposes. See Note 7 for additional information on the credit agreement. Basis of Presentation The accompanying consolidated financial statements as of September 30, 2024 and December 31, 2023 and for the three and nine months ended September 30, 2024 and 2023 reflect the accounts of the Partnership. Upon consolidation, all intercompany balances and transactions have been eliminated. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition and operating results for the interim periods. The interim financial information, which has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"), should be read in conjunction with the consolidated financial statements for the year ended December 31, 2023 and notes thereto contained in the Partnership's Annual Report on Form 10-K. The significant accounting policies described in Note 2, "Summary of Significant Accounting Policies," of such Annual Report on Form 10-K are the same used in preparing the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following table presents the Partnership's product sales and other revenues as a percentage of the consolidated sales for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Gasoline sales: gasoline and gasoline blendstocks (such as ethanol) 70 % 73 % 67 % 68 % Distillates (home heating oil, diesel and kerosene), residual oil and crude oil sales 27 % 23 % 30 % 28 % Convenience store and prepared food sales, rental income and sundries 3 % 4 % 3 % 4 % Total 100 % 100 % 100 % 100 % The following table presents the Partnership's product margin by segment as a percentage of the consolidated product margin for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Wholesale segment 22 % 15 % 24 % 20 % Gasoline Distribution and Station Operations segment 75 % 82 % 73 % 77 % Commercial segment 3 % 3 % 3 % 3 % Total 100 % 100 % 100 % 100 % See Note 14, "Segment Reporting," for additional information on the Partnership's operating segments. None of the Partnership's customers accounted for greater than 10% of total sales for the three and nine months ended September 30, 2024 and 2023. Note 2. Acquisition Acquisition of Terminals from Gulf Oil LLC —On April 9, 2024, the Partnership acquired four refined-product terminals from Gulf Oil Limited Partnership ("Gulf Oil") which are located in Chelsea, MA, New Haven, CT, Linden, NJ and Woodbury, NJ, (the "Gulf Terminals") pursuant to a purchase agreement initially entered into on December 15, 2022 and subsequently amended and restated on February 23, 2024. The acquisition price was approximately $ 215.0 million, excluding inventory acquired from Gulf Oil. The Partnership financed the transaction

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) concluded that the nature of the Gulf Terminals and the different geographic regions where the Gulf Terminals reside do not rise to separate risks based on how these assets operate in the marketplace. As a result of its analysis, the Partnership concluded the acquisition of the Gulf Terminals did not meet the criteria of a business combination pursuant to ASC 805, "Business Combinations," and therefore was accounted for as an asset acquisition. The purchase price in an asset acquisition is allocated to the assets acquired and liabilities assumed based on their relative fair values and no goodwill is recognized. The Gulf Terminals were allocated to the Wholesale segment. The following table presents the assets acquired and liabilities assumed as of April 9, 2024, the acquisition date (in thousands): Assets acquired: Property and equipment $ 217,050 Right of use assets 350 Intangible assets 4,800 Total assets acquired $ 222,200 Liabilities assumed: Environmental liabilities $ ( 6,850 ) Lease liability ( 350 ) Total liabilities assumed $ ( 7,200 ) Net assets acquired $ 215,000 Property and equipment were recorded at cost based on relative fair value as of April 9, 2024 using current market values and reproduction or replacement costs of similar assets. Intangible assets consist of third-party customer relationship contracts and are amortized on a straight-line basis over the respective estimated periods for which the intangible assets will provide economic benefit to the Partnership, which the Partnerships expects to be ten years . Third-party customer relationship contracts were valued using the discounted cash flow method. Significant assumptions used in the valua

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