GLOBAL PARTNERS LP Q4 FY2024 earnings call

• 2024 was a transformative year of growth with integration of thirty new terminals across multiple regions, doubling storage capacity to ~22 million barrels. Strategic investments over $528 million. - Wholesale and GDSO segments showed robust growth in 2024, with wholesale segment product margin up $90 million and GDSO product margin up almost $26 million. - Addressed steps to prepare for potential tariffs on oil and gas imports, actively monitoring conditions and doing scenario planning. - In January, board declared a $0.74 distribution on all outstanding common units for the fourth quarter, thirteenth consecutive quarterly increase.

In the GDSO segment, the fourth quarter 2024 product margin decreased $31.8 million to $213.6 million. Gasoline distribution product margin decreased $32.1 million to $145.7 million in the quarter but increased $20.2 million or 4% on a full-year basis compared to 2023. Station operations product margin increased $0.3 million to $67.9 million in the fourth quarter of 2024. For the wholesale segment, fourth quarter 2024 product margin increased $27.9 million to $79.8 million. Product margin from gasoline and gasoline blend stocks increased $13.2 million to $38.6 million, and from distillates and other oils increased $14.7 million to $41.2 million. The commercial segment product margin increased $0.2 million to $8.6 million. Revenue contribution % not explicitly stated in absolute terms but the financial performance in absolute numbers is as described.

• For full year 2025, expect maintenance capital expenditures in the range of $60 million to $70 million and expansion capital expenditures excluding acquisitions in the range of $75 million to $85 million, relating primarily to gasoline station and terminalling businesses. These estimates depend on project completion timing, equipment/workforce availability, weather, and unanticipated events/opportunities.

• Potential implementation of tariffs on oil and gas imports, particularly from Canada and Europe, which could impact supply dynamics and costs. The assumptions and future performance are subject to a wide range of business risks, uncertainties, and factors which could cause actual results to differ materially.

Q: In terms of your thoughts on tariffs, can you just say how much of your supply comes from outside US borders?

A: Can't tell exactly what percent of supply comes from outside US, but Canadian barrels are important in New England and Northeast. System is designed to source barrels from anywhere, not tied to one source of supply.

Q: Does that in any way change sort of your thought plans or in terms of maybe doing an acquisition, or does it change desire where you would wanna be more emphasis to get into other parts of the country?

A: It doesn't affect how we think about our business and where we wanna invest. Tariffs may increase cost of supply but our system has flexibility, and this highlights our competitive advantages. It's business as usual, and doesn't change our investment and growth plans significantly.

Q: Can you maybe talk about what you're seeing in Houston and maybe what the growth plans are for that?

A: Have retail, terminals, and wholesale and branded rack business in Houston. Look to grow all three legs, consider new retail assets disciplinedly, look to organically grow assets from Motiva transaction in Texas, and leverage sales and supply functions to grow supply and wholesale presence.

Q: Anything changing in terms of either the number of potentials you see out there or anything in terms of pricing, bid-ask spreads getting closer, anything you can just make on commentary along those lines?

A: It continues to be really busy with lots of movements in retail and terminaling. Lots of potentials out there, depending on asset quality matters for multiples, and some spreads have opened up, but continue to be very active and hopeful of doing transactions in next year