Global Partners LP (GLP) Earnings

Management highlights

### Core Business Model & Performance Summary - The company delivered strong Q2 2026 results, with all operating segments contributing positively. The integrated, diversified liquid energy platform is highlighted as a key competitive advantage, enabling value capture across changing market conditions and delivering resilient performance. - The business model is built on a foundation of steady, predictable cash flow regardless of market conditions, with disciplined risk management to capture upside during market volatility while controlling exposure. ### Capital & Distribution Updates - The board approved a quarterly cash distribution of $0.78 per common unit ($3.12 annualized), payable August 14 to unit holders of record as of August 12. - All outstanding Series B fixed rate preferred units were redeemed on July 30, an accretive transaction that simplifies the company's capital structure. - The balance sheet remains strong, with a leverage ratio (funded debt to EBITDA) of 2.85x as of June 30 and ample excess capacity in credit facilities. ### Overall Financial Results - Net income was $71 million in Q2 2026, up from $25.2 million in Q2 2025. EBITDA was $146 million, up from $95.7 million YoY; adjusted EBITDA was $148.2 million, up from $98.2 million YoY. - Distributable cash flow (DCF) was $92.6 million, up from $52 million YoY; adjusted DCF was $92.5 million, up from $52.3 million YoY. Healthy distribution coverage of 2.25x (2.19x including preferred unit distributions) was maintained at quarter end. - Q2 2026 capital expenditures totaled $35 million, split between $15.9 million in maintenance CapEx and $19.1 million in expansion CapEx, primarily for investments in the gasoline station business. - Operating expenses increased $1.1 million to $136.8 million (higher GDSO expenses offset by lower terminal operation expenses). SG&A increased $8.3 million to $83 million, driven by higher incentive compensation, wages and benefits, partially offset by lower professional fees. Interest expense decreased $1.4 million to $33.1 million due to lower average credit facility balances.

Guidance

- Full year 2026 maintenance capital expenditure is maintained at a range of $60 million to $70 million, while expansion capital expenditure (excluding acquisitions) is maintained at a range of $75 million to $85 million. - Capital expenditure estimates are contingent on project completion timing, equipment and labor availability, weather, and unforeseen maintenance or investment requirements.

Segment performance

1. Gasoline Distribution and Station Operations (GDSO): Total product margin was $245.2 million, an increase of $37.3 million year-over-year (YoY). Gasoline distribution product margin accounted for 71.4% of total GDSO product margin at $175 million, up $37.1 million YoY driven by higher fuel margins (fuel margin rose $0.14 per gallon to $0.50). Station operations (including convenience store, food, sundries, and rental income) product margin was $70.2 million, an increase of $0.2 million YoY, making up 28.6% of GDSO product margin. The GDSO portfolio held 1,505 sites as of quarter end, excluding 69 sites in the Spring Partners retail joint venture. 2. Wholesale: Total product margin was $106.5 million, an increase of $14.8 million YoY. Gasoline and gasoline blendstocks product margin was $78.4 million, up $19.6 million YoY from favorable gasoline market conditions, accounting for 73.6% of wholesale product margin. Distillers and other oils product margin was $28.1 million, down $4.8 million YoY due to unfavorable residual oil market conditions, making up 26.4% of wholesale product margin. 3. Commercial: Total product margin was $10.5 million, an increase of $4.4 million YoY, driven by favorable market conditions for the bunkering group.

Risks & headwinds

- Refined product markets are currently volatile, with geopolitical developments driving elevated price swings, increased inventory risk, and tight inventory levels. - The steep backwardation in the forward product pricing curve is expected to increase the cost of carrying hedged inventory in future periods. - All forward-looking projections are subject to a wide range of business risks and uncertainties that could cause actual results to differ materially from expectations, including unexpected shifts in supply and demand.

Analyst Q&A

• Q: How are higher prices and inflation impacting consumer behavior at Global Partners' fueling stations and convenience stores, and has this trend changed into Q3 2026? /

  A: Management notes a small non-material impact from higher prices: average fill-up size is slightly lower, with some minor trading down from higher to lower octane gasoline. In convenience stores, transaction counts are down slightly, but overall store sales remain healthy. There has been no material change in consumer behavior trends entering Q3 2026, matching trends seen through most of the year.

• Q: What drove the decision to redeem all outstanding Series B fixed rate preferred units, and does this reflect a change to the company's approach to capital structure? /

  A: The redemption was driven by two main factors: the 9.5% fixed rate preferred units were accretive to redeem given the company's current cost of capital, and the business has generated significant excess cash flow year-to-date. The transaction simplifies the company's capital structure, but does not rule out future use of equity or preferred markets for acquisition financing. With a strong balance sheet and ample credit facility capacity, the accretive redemption made strategic sense at this time.

• Q: What is the current state of the M&A environment for Global Partners, and what is the company's approach to pursuing deals? /

  A: Management notes the M&A environment is currently active with many opportunities available. Global Partners will continue to target assets that fit and complement its existing asset base, and will position itself to be the high bidder for suitable targets, with the goal of executing complementary deals when they align with the company's strategy.