Global Partners LP(GLP) - 2024 Q4 - Annual Report

Financial Commitments and Sales - As of December 31, 2024, the company had a total commitment of $1.55 billion in credit facilities, including a working capital revolving credit facility of$950 million and a revolving credit facility of $600 million[29]. - In 2024, the company's sales distribution was approximately 63$450 million in senior notes due 2032 at an interest rate of 8.250% to repay a portion of borrowings and for general corporate purposes[29]. Operations and Infrastructure - The company operated a portfolio of 1,584 gasoline stations as of December 31, 2024, including 300 company-operated locations[57]. - The company owned, leased, or maintained dedicated storage facilities at 54 bulk terminals with a collective storage capacity of approximately 22 million barrels[46]. - The company has a controlled trading program with an aggregate outright commodity exposure of up to 250,000 barrels at any one time[63]. - The company experienced higher gasoline demand during the late spring and summer months, while heating oil demand peaked in the winter months[60]. Employee and Workforce - The company employs approximately 4,840 employees, including about 3,330 full-time employees, as of December 31, 2024[71]. - The company has launched an Employee Relief Fund to support employees during times of need, emphasizing its commitment to employee well-being[76]. - The company has competitive compensation and benefits programs designed to attract and retain talent, including health insurance and retirement savings plans[72]. Environmental Compliance and Regulations - The company is subject to extensive environmental laws that may impose new obligations and affect its business activities[82]. - The company monitors its operations for compliance with environmental laws and regulations, which may incur significant future costs[88]. - The company has obligations to retire sufficient Renewable Identification Numbers (RINs) to cover its Renewable Volume Obligation (RVO), which may lead to mark-to-market liabilities if RINs are insufficient[69]. - The company believes it is in substantial compliance with hazardous substance releases and waste handling requirements, but future regulations could increase operating and compliance costs[93]. - The company holds discharge permits for its facilities and operates in material compliance, although there have been periodic permit discharge exceedances[100]. - The company is subject to the Clean Water Act, which imposes restrictions on pollutant discharges and may require additional permits due to ongoing regulatory changes[99]. - The company has a comprehensive program for underground storage tanks to ensure compliance with environmental regulations, which may require significant future capital expenditures[98]. - The company is aware of no changes to air quality regulations that will materially affect its financial condition or operations[101]. - The company currently reports under the Mandatory Greenhouse Gas Reporting Rule due to the volume of petroleum products imported, which may limit import capabilities or increase costs[112]. - The company faces uncertainty regarding future GHG regulations, which could impact operations and market demand for its products[114]. - The company is subject to potential litigation related to climate change, which could adversely affect its operations in the future[115]. - The SEC released a final rule in March 2024 for climate risk reporting, but its future is uncertain due to ongoing legal challenges[118]. - California has enacted new laws for additional climate-related disclosures, which may increase compliance costs and affect access to capital[118]. Renewable Energy and Fuel Standards - The Renewable Fuel Standard mandates a certain amount of renewable fuels, including ethanol, to be used in transportation fuels each year[121]. - The EPA's final "Set" rule for 2023-2025 under the RFS program may lead to increased costs for renewable fuels and reduced fuel consumption[123]. - The EPA has finalized more stringent methane rules in December 2023, which could impose significant operational costs and compliance requirements[109]. - Starting in 2024, the Inflation Reduction Act imposes a fee on methane emissions, beginning at $900 per metric ton and increasing to$1,500 by 2026[111]. - The EPA's final methane rules and the IRA's fee could accelerate a transition away from fossil fuels, potentially lowering fuel consumption and adversely affecting business[111]. - The EPA's final "Set" rule for biofuel targets increases the renewable volume obligation, likely resulting in higher fuel costs and reduced revenues[122]. Risk Management and Insurance - The company maintains insurance for environmental matters, but coverage may not be sufficient for all risks[125]. - Increased security measures due to terrorism threats have resulted in higher operational costs[126]. - The company believes it is in substantial compliance with hazardous materials transportation regulations, but future regulatory changes could increase costs[133]. - The company believes it is in substantial compliance with OSHA requirements, ensuring worker health and safety[134].