Global Partners LP(US:GLP)2025-02-28 16:22Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2024 was $97.8 million, down from $112.1 million in Q4 2023, reflecting a challenging fuel margin environment [16] - Adjusted DCF decreased to $46.1 million from $58.8 million year-over-year [16] - Trailing twelve-month distribution coverage was 1.81 times, or 1.72 times after preferred unitholder distributions [17] Business Line Data and Key Metrics Changes - GDSO product margin decreased by $31.8 million to $213.6 million in Q4 2024, with gasoline distribution product margin down $32.1 million to $145.7 million due to lower fuel margins [17][18] - Fuel margins on a cents per gallon basis decreased from $0.44 in Q4 2023 to $0.36 in Q4 2024 [18] - Station operations product margin increased by $0.3 million to $67.9 million in Q4 2024, with a total of 1,584 fueling stations and convenience stores in the GDSO portfolio [20] Market Data and Key Metrics Changes - Wholesale segment product margin increased by $27.9 million to $79.8 million in Q4 2024, driven by favorable market conditions and the acquisition of terminals from Motiva [21] - Product margin from gasoline and gasoline blend stocks increased by $13.2 million to $38.6 million [21] Company Strategy and Development Direction - The company integrated thirty new terminals, doubling storage capacity to approximately 22 million barrels, with significant investments totaling over $528 million [7][8] - The company is focused on leveraging its expanded operating footprint and strong balance sheet to seize growth opportunities [14] - Management emphasized the flexibility of their terminal facilities to source products from various regions, mitigating risks associated with potential tariffs [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the dynamic energy landscape and maintain operational excellence despite challenges [9][10] - The company anticipates 2025 to be a year of opportunity and growth, continuing to integrate recently acquired assets [26][27] Other Important Information - The board declared a distribution of $0.74 per common unit for Q4 2024, marking the thirteenth consecutive quarterly increase [13] - Operating expenses increased by $12.1 million due to the addition of new terminals, while SG&A expenses decreased by $1.9 million [22] Q&A Session Summary Question: What percentage of supply comes from outside the US? - Management indicated that while they cannot disclose exact percentages for competitive reasons, Canadian barrels are significant for the Northeast supply landscape [31][32] Question: How do tariffs affect acquisition plans? - Management stated that tariffs do not change their acquisition strategy, as their terminals are flexible and can source products from various locations [38][39] Question: What are the growth plans for Houston? - Management highlighted plans to grow retail, terminal, and wholesale operations in Houston, focusing on disciplined acquisitions and organic growth [44][48] Question: Any changes in acquisition opportunities or pricing? - Management noted that the market remains active with various opportunities, and they are hopeful for transactions in the coming year [51][52]