Global Partners LP(US:GLP)2025-08-07 16:55PART I. FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) The unaudited financial statements show a slight asset decrease, with six-month net income and operating cash flow significantly improving year-over-year Consolidated Balance Sheets Total assets slightly decreased to $3.78 billion, while liabilities increased and partners' equity declined as of June 30, 2025 Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total current assets | $1,215,163 | $1,207,380 | $7,783 | | Property and equipment, net | $1,668,367 | $1,706,605 | ($38,238) | | Total assets | $3,784,338 | $3,788,198 | ($3,860) | | Total current liabilities | $1,027,264 | $1,000,121 | $27,143 | | Senior notes | $1,270,916 | $1,186,723 | $84,193 | | Total liabilities | $3,098,033 | $3,071,585 | $26,448 | | Total partners' equity | $686,305 | $716,613 | ($30,308) | Consolidated Statements of Operations Q2 2025 sales increased but net income decreased, while six-month sales and net income both improved year-over-year Consolidated Statements of Operations Summary (in thousands, except per unit data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales | $4,626,925 | $4,409,698 | $9,219,122 | $8,555,090 | | Gross Profit | $272,362 | $287,884 | $527,603 | $503,019 | | Operating Income | $60,066 | $83,869 | $115,953 | $109,705 | | Net Income | $25,210 | $46,149 | $43,894 | $40,547 | | Diluted EPS | $0.55 | $1.10 | $0.92 | $0.73 | Consolidated Statements of Cash Flows Operating cash flow significantly improved to a provision of $164.7 million, while investing and financing activities shifted due to acquisitions and debt refinancing Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $164,730 | ($158,356) | | Net cash used in investing activities | ($44,435) | ($232,174) | | Net cash (used in) provided by financing activities | ($112,406) | $385,002 | | Increase (decrease) in cash and cash equivalents | $7,889 | ($5,528) | Notes to Consolidated Financial Statements Detailed notes cover accounting policies, significant 2025 events including debt refinancing and credit agreement amendments, and segment performance - In June 2025, the Partnership issued $450.0 million of 7.125% senior notes due 2033, using proceeds to redeem 2027 notes and repay credit facility borrowings2021 - The credit agreement was amended in March 2025, extending maturity to March 2028, increasing the working capital facility to $1.0 billion, and decreasing the revolving credit facility to $500.0 million2247 - The Gasoline Distribution and Station Operations (GDSO) segment is the largest contributor to product margin, accounting for 68% and 67% of the consolidated total in Q2 and H1 2025, respectively31 Cash Distributions Paid in 2025 (in thousands, except per unit data) | Payment Date | Security | Quarter Ended | Per Unit | Total Paid | | :--- | :--- | :--- | :--- | :--- | | 2/14/2025 | Common Units | 12/31/24 | $0.7400 | $29,483 | | 5/15/2025 | Common Units | 03/31/25 | $0.7450 | $29,815 | | 2/18/2025 | Series B Preferred | 11/15/24 - 2/14/25 | $0.59375 | $1,781 | | 5/15/2025 | Series B Preferred | 2/15/25 - 5/14/25 | $0.59375 | $1,781 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses increased sales driven by volume, a Q2 gross profit decline due to market conditions, and key financing activities impacting liquidity Results of Operations Q2 sales increased but gross profit declined due to gasoline margins, while H1 sales and gross profit grew, with SG&A expenses rising Gross Profit by Period (in millions) | Period | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $272.4 | $287.9 | -5% | $527.6 | $503.0 | +5% | - Wholesale segment product margin decreased by 16% in Q2 2025 for gasoline due to unfavorable market conditions, but increased by 53% for distillates due to more favorable conditions227230 - GDSO segment gasoline distribution product margin decreased 6% in Q2 2025, primarily due to lower sales volume and a reduced site count year-over-year232 - SG&A expenses increased by $2.4 million (3%) in Q2 2025, driven by wages, benefits, and professional fees, partially offset by lower expenses related to the Revere Terminal sale239 Liquidity and Capital Resources Liquidity is supported by operations and credit facilities, with working capital decreasing and significant debt refinancing activities undertaken - Working capital decreased by $19.3 million from year-end 2024 to $187.9 million at June 30, 2025, mainly due to a $98.5 million decrease in inventories and an $80.4 million increase in accounts payable251 2025 Capital Expenditure Outlook | Category | Expected 2025 Capex | | :--- | :--- | | Maintenance | $60.0 million - $70.0 million | | Expansion (ex-acquisitions) | $65.0 million - $75.0 million | - On June 23, 2025, the Partnership issued $450.0 million of 7.125% senior notes due 2033 and used the proceeds to redeem $360.3 million of its 2027 notes, resulting in a $2.8 million loss on early extinguishment of debt286287288 - As of June 30, 2025, the Partnership had $1.13 billion in remaining availability under its credit facilities, subject to borrowing base limitations280 Item 3. Quantitative and Qualitative Disclosures About Market Risk The Partnership faces interest rate risk from variable debt and commodity price risk managed by derivatives, with a 10% price change impacting derivatives by $45.0 million - The company is exposed to interest rate risk on its $286.7 million of variable rate debt, where a 1% increase in interest rates would raise annual interest expense by about $2.9 million302 Commodity Derivative Sensitivity Analysis (in thousands) | Derivative Type | Fair Value at June 30, 2025 | Effect of 10% Price Increase | Effect of 10% Price Decrease | | :--- | :--- | :--- | :--- | | Exchange traded | ($28,648) | ($26,324) | $26,324 | | Forward contracts | $4,251 | ($18,698) | $18,698 | | Total | ($24,397) | ($45,022) | $45,022 | Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025312 - No material changes to the internal control over financial reporting occurred during the quarter ended June 30, 2025313 PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is involved in routine legal proceedings not expected to have a material adverse impact on its financial condition - The company does not believe it is a party to any litigation that will have a material adverse impact on its financial condition or results of operations, with details provided in Note 15151316 Item 1A. Risk Factors No material changes occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - The report refers to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed discussion of potential risks317 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased 58,367 common units during Q2 2025 under its LTIP, with over 1 million units remaining authorized for repurchase Common Unit Repurchases (Q2 2025) | Period | Units Purchased | Average Price Paid ($) | | :--- | :--- | :--- | | April 2025 | — | — | | May 2025 | 33,367 | — | | June 2025 | 25,000 | $53.21 | - The repurchase program is for meeting obligations under the LTIP and employment agreements, with 1,001,654 units remaining authorized for repurchase as of August 7, 2025318 Item 5. Other Information The COO adopted a Rule 10b5-1 trading plan on March 25, 2025, for the sale of up to 44,994 common units - Mark A. Romaine, the company's COO, adopted a Rule 10b5-1 trading plan on March 25, 2025, for the sale of up to 44,994 common units320 Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including officer certifications and XBRL data files - Lists various filed exhibits, including certifications under Rule 13a-14(a)/15d-14(a) and Section 1350, as well as Inline XBRL documents321323