Q1 2024 Global Partners LP Earnings Call Transcript
Key Points
- Global Partners LP significantly expanded its terminal network, more than doubling its storage capacity through strategic acquisitions.
- The company successfully completed the acquisition of 25 liquid energy terminals from Motiva ahead of schedule, enhancing operational efficiency.
- Declared a quarterly cash distribution of $0.71 per common unit, representing an 8.4% increase over the prior year, payable to unitholders.
- Redeemed all outstanding Series B preferred units, which is expected to be accretive to distributable cash flow by approximately $0.09 per unit annually.
- Maintained a strong balance sheet with leverage well within credit agreement limits, and ample excess capacity on credit facilities.
- Reported a net loss of $5.6 million for the quarter, compared to a net income of $29 million in the same period last year.
- Adjusted EBITDA and distributable cash flow both decreased significantly from the previous year.
- Product margin from distillates and other oils decreased by $13 million due to less favorable market conditions.
- Operating expenses increased by $11.8 million, primarily due to the acquisition of terminals from Motiva.
- The first quarter performance of the retail joint venture was impacted negatively by severe weather conditions and a competitive margin environment.
Good day, everyone, and welcome to the Global Partners First Quarter 2024 financial results conference call. Today's call is being recorded. If anyone should require operator assistance during the conference please press star zero on your telephone keypad. With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slifka, Chief Financial Officer, Mr. Gregory Hanson, Chief Operating Officer, Mr. Mark Romaine and Chief Legal Officer and Secretary, Mr. Sean Geary. At this time, I would like to turn the call over to Mr. Gary for opening remarks. Please go ahead, sir.
Good morning, everyone, and thank you for joining us. Today's call will include forward-looking statements within the meaning of federal securities laws, including projections and expectations concerning the future financial and operational performance of Global Partners. No assurances can be given that these projections will be attained or that these expectations will be met. Our assumptions
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