GLOBAL PARTNERS LP Q3 FY2024 earnings call

• Commended team at Tampa terminal for quick restoration during hurricanes. - Delivered year-over-year gains in key financial metrics. - Retail assets exceeding expectations; Wholesale and Commercial capitalizing on favorable market conditions. - Integrated 29 liquid energy terminals from Motiva and Gulf; completed acquisition of a 730-acre liquid energy terminal in East Providence, Rhode Island. - Selected to deploy NEVI program for EV charging stations at retail locations. - Declared quarterly cash distribution of $0.73 per common unit, a 6.6% increase over prior year.

Gasoline Distribution and Station Operations (GDSO): Product margin increased $31.2 million to $237.7 million in the quarter. Gasoline distribution product margin rose $32.1 million to $164.1 million, with fuel margins per gallon up to $0.40 from $0.31 in Q3 2023. Station Operations product margin decreased $0.9 million to $73.6 million due to divestitures/conversions. Portfolio included 1,589 fueling stations and C-store sites, with 64 under Spring Partners Retail joint venture. Wholesale and Commercial: Wholesale product margin increased $33.9 million to $71.1 million. Gasoline and blend stocks margin rose $22.6 million to $43 million due to terminal acquisitions and favorable market conditions. Distillates and other oils margin increased $11.3 million to $28.1 million. Commercial product margin increased $1.1 million to $9.5 million due to favorable markets and bunkering.

• Full year 2024 maintenance CapEx expected in range of $50 million to $60 million. - Revising expansion CapEx for 2024 to range of $40 million to $50 million from previous $60 million to $70 million, depending on project timing, equipment availability, etc. - Balance sheet strong with funded debt-to-EBITDA at 3.27x as of September 30.

• Business risks, uncertainties, and factors could cause actual results to differ from projections as per SEC filings. - Valuations still relatively high for acquisitions. - Timing of project completion, equipment availability, workforce, weather, and unanticipated events could impact CapEx estimates.

Q: Any impact from the elections?

A: We've got a durable business, scaled business with long-term commitments, so we're in a solid position to continue executing regardless of elections.

Q: Plans for the 730-acre terminal in East Providence?

A: There's opportunity there; we bought a great asset with good dock access, tankage, and land, and we'll look to take advantage of real estate diversification opportunities.

Q: Outlook for acquisitions?

A: It's been busy, we're very selective. Valuations are still relatively high, but we'll find the right deals that are accretive to Global and maintain discipline.

Q: Update on Houston partnership?

A: We haven't added to it long, but we continue to tweak and drive value, looking to do more in that market with a positive outlook.

Q: Number of EV chargers across system?

A: It's not huge scale, we'll be financially disciplined, partnering with government to build out a network in desirable locations for customers while managing risk.

Q: Outlook for CPG margin durability?

A: We saw good volatility over summer; wholesale RBOB prices dropped, giving margin opportunity. Market is consolidating, smaller scale operators have higher breakeven costs, so volatility is typically good for our fuel margins. Structurally, there may be higher fuel margins, but we're not betting on specific levels yet.