2014 investor day · 2019. 12. 4. · 4 │ global partners lp 2014 investor day │ november 11,...

2014 Investor Day November 11, 2014

Global Partners LP (NYSE: GLP)

2 │ Global Partners LP 2014 Investor Day │ November 11, 2014

Agenda

Investment Highlights & Strategy Eric Slifka, President & Chief Executive Officer

Terminal Operations Bill Davidson, Senior Vice President, Terminals & Operations

Wholesale Business Mark Romaine, Chief Operating Officer

Break

Gasoline Distribution and Station Operations Andrew Slifka, EVP, President of Gasoline Distribution & Station Operations

Financial Overview Daphne Foster, Chief Financial Officer

Wrap-up & Q&A Eric Slifka, President & Chief Executive Officer


Forward-Looking Statements

Some of the information contained in this presentation may contain forward-looking statements. Forward-looking statements include,

without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may

contain the words “may,” “believe,” “should,” “could,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “continue,” “will likely result,” or

other similar expressions. In addition, any statement made by Global Partners LP’s management concerning future financial

performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible actions by

Global Partners LP or its subsidiaries are also forward-looking statements.

Although Global Partners LP believes these forward-looking statements are reasonable as and when made, there may be events in the

future that Global Partners LP is not able to predict accurately or control, and there can be no assurance that future developments

affecting Global Partners LP’s business will be those that it anticipates. Additionally, all statements concerning Global Par tners’

expectations regarding future operating results are based on current forecasts for its existing operations and do not include the potential

impact of any future acquisitions. Estimates for Global Partners’ future EBITDA are based on a number of assumptions regarding market

conditions, including demand for petroleum products and renewable fuels, weather, credit markets, the regulatory and permitting

environment and the forward product pricing curve. Therefore, Global Partners can give no assurance that its future EBITDA will be as

estimated.

For additional information about risks and uncertainties that could cause actual results to differ materially from the expectations Global

Partners LP describes in its forward-looking statements, please refer to Global Partners LP’s Annual Report on Form 10-K for the year

ended December 31, 2013 and subsequent filings the Partnership makes with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are

made. Global Partners LP expressly disclaims any obligation or undertaking to update forward-looking statements to reflect any change

in its expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based.


Use of Non-GAAP Financial Measures

This presentation contains non-GAAP financial measures relating to Global Partners. A reconciliation of these measures to the most directly comparable GAAP measures is available in the Appendix to this presentation. For additional detail regarding selected items i mpacting comparability, please visit the Investor Relations section of Global Partners’ website at www.globalp.com. EBITDA Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure used as a supplemental financial measure by management and external users of Global Partners' consolidated financial statements, such as investors, commercial banks and research analysts, to assess the Partnership's: • compliance with certain financial covenants included in its debt agreements; • financial performance without regard to financing methods, capital structure, income taxes or historical cost basis; • ability to generate cash sufficient to pay interest on its indebtedness and to make distributions to its partners; • operating performance and return on invested capital as compared to those of other companies in the wholesale, marketing, storing and distribution

of refined petroleum products, renewable fuels and crude oil, without regard to financing methods and capital structure; and • the viability of acquisitions and capital expenditure projects and the overall rates of return of alternative investment opportunities.

EBITDA should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA excludes some, but not all, items that affect net income, and this measure may vary among other companies. Therefore, EBITDA may not be comparable to similarly titled measures of other companies. Distributable Cash Flow Distributable cash flow is an important non-GAAP financial measure for Global Partners' limited partners since it serves as an indicator of the Partnership's success in providing a cash return on their investment. Distributable cash flow means the Partnership's net income plus depreciation and amortization minus maintenance capital expenditures, as well as adjustments to eliminate items approved by the audit committee of the Board of Directors of the Partnership's general partner that are extraordinary or non-recurring in nature and that would otherwise increase distributable cash flow. Specifically, this financial measure indicates to investors whether or not the Partnership has generated sufficient earnings on a current or historic level that can sustain or support an increase in its quarterly cash distribution. Distributable cash flow is a quantitative standard used by the investment community with respect to publicly traded partnerships. Distributable cash flow should not be considered as an alternative to net income, operating income, cash flow from operations, or any other measure of financial performance presented in accordance with GAAP. In addition, Global Partners' distributable cash flow may not be comparable to distributable cash flow or similarly titled measures of other companies.

http://www.globalp.com/

Investment Highlights & Strategy

Eric Slifka

President & Chief Executive Officer


Global Partners at a Glance

• Master limited partnership engaged in midstream logistics and marketing

• Leading wholesale distributor of petroleum products

• One of the largest terminal networks of petroleum products and

renewable fuels in the Northeast

• One of the largest independent owners, suppliers and operators of

gasoline stations and convenience stores in the Northeast

• Leader in the purchasing, selling and logistics of transporting domestic

and Canadian crude oil and other energy products by rail

• “Virtual pipeline” connecting producing regions to demand centers in

the East, West and Gulf Coast (pending)


Diversified Business Mix

Wholesale

44%

Gasoline Distribution and

Station Operations

50%

Commercial

6%

2013 Product Margin by Business Segment

$461.5M

Wholesale

84%

Commercial

16%

2005 Product Margin by Business Segment

$93.4M

Wholesale

Distillates

45%

Wholesale

Gasoline

15%

Wholesale

Residual Oil

24%

Wholesale

Crude

20%

Wholesale

Distillates &

Residual Oil

15%

Wholesale

Gasoline

9%

Gasoline

Distribution

33%

Rent &

C-Store

17%


Vision

“Leadership in gathering, storage,

transportation and marketing of refined

petroleum products, crude oil, renewable fuels,

natural gas and propane.”


Key Investment Considerations

Critical Logistics and

Infrastructure Serving

Prolific But

Constrained Markets

Diverse Product

and Asset Mix

Strong Financial

Profile & Increasing

Distributable Cash Flow

Experienced

Management Team


Extensive Industry Experience

Richard Slifka Chairman

David McKown Director

Robert McCool Director

Kenneth Watchmaker Director

Eric Slifka President, CEO & Director

Daphne Foster CFO

Mark Romaine COO

Andrew Slifka EVP, President, GDSO & Director

Edward Faneuil EVP and General Counsel

Charles Rudinsky EVP, & CAO

William Davidson SVP, Terminals & Operations

Terry Theofilou SVP, Supply & Distribution

Mark Cosenza SVP, GDSO

Joseph DeStefano SVP, Marketing

Executive Management Management BOD and Executive Mgt. Board of Directors


Global’s DNA: Sourcing, Logistics & Marketing

Origin Delivery Destination

“Virtual Pipeline”

Gathering Transportation Storage

Integrated Marketing

Retail Wholesale Distribution

Alltow photo

C-Store Operations


Uniquely Positioned in U.S. Energy Market

Refined Petroleum Bulk Product Terminals

Barrels of Storage Capacity

Barrels of Product Throughput Daily

Gas Stations and Convenience Stores

25

10.1M

450K

1,000


Growth in Bakken Oil Production Crude Moved by Rail From Williston Basin

Source: North Dakota Pipeline Authority Source: North Dakota Pipeline Authority

Refining Capacity by Region U.S. Oil and Liquid Fuels Production (mm bpd)

Source: Bloomberg, EIA

Global has the only single-line haul rail from the North

Dakota Bakken region to the East and West coasts

– a “Virtual Pipeline” –

Region

Refining Capacity

(mm bpd)

Imported Crude

(mm bpd)

Imports as a

Percent of PADD

PADD I 1.30 0.56 43.08%

PADD II 3.81 2.01 52.76%

PADD III 9.15 3.53 38.58%

PADD IV 0.65 0.26 40.00%

PADD V 2.91 1.12 38.49%

Total 17.82 7.48 41.98%

0

100

200

300

400

500

600

700

800

900

1,000

1,100

Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14

Dai

ly P

rodu

ctio

n (0

00 b

bls

per

day)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000


Ave

rage

Rai

l Car

load

s pe

r M

onth

Source: U.S. Energy Information Administration

Positioned to Benefit From Domestic Energy Resurgence

0

4

8

12

16


Total production Production forecast


Growth Strategy Focused on Building Unitholder Value

• Enhance cash flow through product and market

diversification

• Invest in terminaling and logistics in constrained

markets

• Attract new customers through superior service and

product availability

• Optimize terminal assets and enhance supply and

logistical efficiencies

Organic Growth Initiatives Strategic Acquisitions

• Consolidate markets and leverage scale to

achieve purchasing efficiencies

• Achieve significant operational synergies and

cost savings while increasing returns

• Create opportunities to deliver value-added

products and services

• Increase cash flow stability while enhancing

real estate portfolio

Conservative Financial

Approach and Strong

Capitalization Support:


History of Growth

2007 2008 2009 2010 2011 2012

Acquired three

terminals

from ExxonMobil

Acquired two

terminals

from ExxonMobil

Completed Port of

Providence

terminal project

Organic terminal

projects in

Albany, NY

Oyster Bay, NY

Philadelphia, PA

Launched offshore

bunkering service

2013 2014

Albany Ethanol Expansion

Project with CP Railway

Acquired Warex

terminals

Acquired

Mobil Stations

Contracted to supply

150M gallons to other

Mobil distributors

Receipt, storage and

distribution of Bakken crude

oil at Global Albany

Acquired

Alliance Energy

Getty Realty

Agreement

Completed 100,000 barrel

storage tank

in Columbus, ND

Acquired

Basin Transload

Completed

Global Albany

rail expansion

Acquired

CPBR Facility

Agreement to Acquire

Warren Equities

Opened propane

facility in Albany

Signed pipeline connection

agreements with Tesoro and

Meadowlark

Agreement with KCS to

develop terminal in

Port Arthur, TX

$1.2 Billion in Acquisitions and Investments


Growth Initiatives

• Agreement with Kansas City Southern on new unit train terminal in Port Arthur, TX

• 340,000-700,000 barrels of initial storage capacity with expansion opportunities

• Approximate investments of $75 million to $125 million

Port Arthur, TX Terminal

• Operates 147 Xtra Mart convenience stores, markets fuel through 53 commission agent locations and

supplies fuel to ~320 dealers

• Sells ~500 million gallons of fuel annually through ~520 retail locations

• Projected EBITDA of $50 million to $60 million in second full year of operations

Warren Equities


Growth Initiatives

• Storage expansion 600,000 barrels

• Rail expansion to unload unit train in 12 hours

• Ability to run crude transload and ethanol facility simultaneously

• Dock investments to take largest possible vessels

• Approximate investments of $75 million to $100 million

CPBR

• Expanding crude oil gathering capabilities in Bakken through pipeline connections

• Construction of 176,000 barrels of additional storage capacity in Columbus, ND, increasing the total

North Dakota storage capacity to 726,000 barrels

Mid-Continent Transload Facilities


Gulf Coast Destination Asset: Port Arthur, TX

• Agreement with Kansas City Southern

• Global will develop and build a unit train terminal

• Terminal will initially handle heavy crude from Canada

• Initial storage capacity of 340,000 to 700,000 barrels

• Expansion capabilities for distillates, renewable fuels

and NGLs

• Designed to handle up to two unit trains per day with

expansion capacity up to six unit trains per day

• Dock capable of handling Aframax-size vessels

• Situated within a 100-mile radius of nearly 5 million

barrels of Gulf Coast refining capacity

• Expected to be in service in early 2017 Port Arthur


Warren Equities is Transformative Acquisition for Global’s

Retail Platform

• Meaningfully expanding scale while providing significant operational synergies and strategic options

• Strong footprint across 10 states in the Northeast U.S. with the majority of its stores primarily

concentrated in MA, CT and NY

• Operates 147 Xtra Mart convenience stores, markets fuel through 53 commission agent locations

and supplies fuel to ~320 dealers

• Sells ~500 million gallons of fuel annually through ~520 retail locations

• On track to close in Q1 2015 subject to customary closing conditions

• Projected EBITDA:

– Second full year of operations: $50 million to $60 million

• Received early HSR termination


Mid-Continent Transload Facilities

• Economically advantaged single-line long-haul to Albany

• 270,000-barrel storage capacity with truck-and-rail off-loading rack

• Construction of 176,000 barrels of additional storage expected to be

completed in Q1 2015, which will increase total ND storage capacity

to 726,000 barrels

• 50,000 bbls/day pipeline connection to Meadowlark Midstream

Partners’ Divide Gathering System (scheduled to be operational by

Q2 2015)

Basin Columbus, ND

• Direct long-haul service to West and Gulf Coasts

• 280,000-barrel storage capacity with truck-and-rail off-loading system

• Pipeline connection to Tesoro High Plains Pipeline System

— Initial capacity 10,000 bbls/day with potential of 40,000 bbls/day

Basin Beulah, ND

Basin Columbus

Basin Beulah


West Coast Destination Asset: Clatskanie, OR

• Located on the Columbia River approximately 50 miles from open water

• 200,000 barrels of storage with near term expansion potential

• Served by BNSF via connections with CP and CN

• Approximately 4 days transit by rail from Edmonton

• Capacity for handling 115 car unit trains

• Leased deep water dock


Key Financial Metrics

$66.7

$157.4

2009 2013

EBITDA

$1.95

$2.61

2009 2013

Distribution History

$45.4

$105.3

2009 2013


$157.4

$463.2

2009 2013

Partners’ Equity

($ in millions) ($ in millions)

($ in millions)

+34%

+136% +132%

+194%


Key Takeaways



Prolific But

Constrained Markets

Diverse Product

and Asset Mix

Strong Financial



Experienced

Management Team

Questions & Answers

Terminal Operations

Bill Davidson

Senior Vice President, Terminals & Operations


Steel in the Ground

• 10.1M barrels of storage capacity for refined products, crude oil and

renewable fuels

• Terminal assets feed expanding network of retail sites

• Strong relationships with oil companies

• Crude oil rail terminals

–Albany, NY

–Beulah and Stampede, ND

–Clatskanie, OR

–Port Arthur, TX (in development)

• Rail-fed propane and butane storage terminal


Logistical Advantages

Our network of terminals is a gateway for the receipt, storage and

distribution of refined petroleum products, renewable fuels and crude oil

Our wholesale storage, terminaling, marketing and logistics

serve refiners and other customers across the country

Strategically located, intermodal terminals provide an

efficient and a cost-effective mechanism to move product

in and out of our system

Expansive Asset Network

Built-in Market Clearing – Intermodal Options

Optimization and Efficiency – Terminals & Stations

Virtual Pipeline Solution Efficiency of single line haul on Canadian Pacific and BNSF

is a competitive differentiator in our shipment of crude oil and

associated products


Global has 9.2 million bbls of terminal capacity in the Northeast

Estimated market share1

Wholesale Terminals – Northeast

1 Based on terminal capacity (bbls in 000s)

Source: OPIS/Stalsby Petroleum Terminal Encyclopedia,

2013, various marketing materials and Company data

Newburgh, NY: 429K bbls

Albany, NY: 1,402K bbls

Newburgh-Warex: 956K bbls

Commander/Oyster Bay, NY: 134K bbls

Port of Providence, RI: 480K bbls

Sandwich, MA: 99K bbls

Chelsea, MA: 685K bbls

Revere, MA: 2,097K bbls

Portland, ME: 665K bbls

Burlington, VT: 419K bbls

Inwood, NY: 322K bbls

Glenwood Landing, NY: 98K bbls

Wethersfield, CT: 183K bbls

Bridgeport, CT: 110K bbls

Key to Terminal Type

Distillate

Ethanol

Gasoline/Distillate/Ethanol

Residual/Distillate

Residual/Distillate/Biofuel

Distillate/Biofuel

Gasoline/Distillate/Ethanol/Crude

Crude Macungie, PA: 170K bbls

Staten Island: 287K bbls

Philadelphia, PA: 159K bbls

Bayonne, NJ: 371K bbls

Springfield, MA: 54K bbls

Location Est. market capacity GLP capacity GLP % of total

Newburgh, NY 2,755 1,385 50%

Western Long Island, NY 769 554 72%

Boston Harbor, MA 9,774 2,782 28%

Vermont 430 419 97%

Providence, RI 4,455 480 9%

Albany/Rensselaer, NY 9,558 1,402 15%


Growth and Versatility of Terminal Assets

Growth in Rail Car Spots Rail Storage Capacity (bbls)

30 300+

2011 2014 2011 2014

650K 200K


Unique Origin-to-Destination Assets Form System’s Backbone

Storage capacity = 550,000 barrels Storage capacity = 200,000 barrels Rail off-loading capacity = 160,000 bpd

Basin Columbus, ND (CP)

Clatskanie, OR Terminal

Albany, NY Terminal Basin Beulah, ND (BNSF)

Global Partners’ Single Line Haul, East-West Infrastructure


Albany Terminal Critical Link in North American Infrastructure

• Albany terminal is gateway to efficient and cost-

effective receipt, storage and delivery of crude oil

and other products

• Relationship with Canadian Pacific (CP) provides

significant routing flexibility

– Intermodal terminal linked via single line haul to CP

– Enables two 120-car unit trains to be offloaded in a

24 hour period

–Rail expansion more than tripled terminal intake capacity to

approximately 160,000 bbls/day

– Averaging just 4 to 5 days one-way per train shipment

• Established infrastructure links Global to energy

producing regions across North America

– Transload facility in North Dakota’s Bakken region

– Product shipped by barge from Albany to East Coast refiners


• Opened rail-fed propane and butane storage

and distribution terminal in 2013

• Can source propane and butane directly from

Midwest and Canadian sources via single-line

haul on Canadian Pacific

• Storage capacity of approximately 1 million

gallons

Albany Propane and Butane Terminal


Port Arthur Terminal Provides Access to Gulf Coast Capacity

• Global will design, build and operate unit train crude oil terminal – Agreement with Kansas City Southern (KCS)

– KCS connects with all other Class I railroads in North America

– Terminal will initially handle heavy crude from Canada

– 340,000 to 700,000 barrels of initial storage capacity

– Expansion capabilities for distillates, renewable fuels and NGLs

– Designed to handle up to two unit trains per day with expansion capacity up to six unit trains per day

– Dock capable of handling Aframax-size vessels

– Situated within a 100-mile radius of nearly 5 million barrels of Gulf Coast refining capacity

– Expected to be in service in early 2017

Port Arthur


Current Configuration of CPBR/Global Westward

• Infrastructure – Two 100,000 barrel tanks

– Pipeline from offloading to tanks

– Pipeline from tanks to dock loading

– Multiple unloading stations

– Permitted for both crude transloading and

ethanol manufacturing

• Largest West Coast ethanol plant – 120M gallons per year ethanol capacity

– Only U.S. ethanol facility located on deep-water

port with direct-ocean access via deep-water

river system


Mid-Continent Assets Form Core of ‘Virtual Pipeline’

• Basin Columbus, ND (CP) – Economically advantaged single-line long-haul to Albany

– 270,000-barrel storage capacity with truck-and-rail off-loading rack

– Construction of 176,000 barrels of additional storage expected to be completed in Q1 2015,

which will increase total ND storage capacity to 726,000 barrels

• Basin Beulah, ND (BNSF)

– Direct long-haul service to West and Gulf Coasts

– 280,000-barrel storage capacity with truck-and-rail off-loading system

• Pipeline Connections – Tesoro High Plains Pipeline System (THPP)

– Basin Columbus to THPP

– Basin Beulah to THPP (scheduled for completion in Q4 2014)

– Connection to Columbus and Beulah provides customers with optionality to move product to

either facility

– Meadowlark Midstream Partners’ Divide Gathering System

– Basin Columbus to the Divide Gathering System (scheduled to be operational by Q2 2015)


Vertical Integration

Crude Oil

Refinery

Tanker

Barge

Pipeline

Truck

Storage Facilities

Truck

Rail

Refinery

Wholesale “Rack”

Retail

Consumer

Rail

Gas station

Wholesale Commercial Gasoline Distribution & Station Operations

Commercial

Industrial

Barge

http://midwestoilgas.com/Files/Motion Files/Picture1.gif


Safety, Health & Environmental

• Rigorous training and preparedness exercises

–Thousands of hours of safety and operations training

–Spill avoidance, response preparedness and drills

• Training for first responders / emergency

personnel

• Oversight by federal, state and local agencies,

including on-site inspections and tabletop

exercises

• Booming and spill response equipment on site

• Member of National Response Corporation


Safety-Enhanced Railcars for Crude Transport

• Requiring all crude oil cars arriving at our East and West Coast

terminals to be CPC-1232 compliant

• Support federal government’s efforts to adopt CPC-1232 initiative


Key Takeaways

• Strategically located terminal assets anchor wholesale and

GDSO segments

• First class, well-maintained and flexible facilities

• Safety-first culture puts focus on employees and the local

community

Questions & Answers

Wholesale Business

Mark Romaine

Chief Operating Officer


Vital Supplier of Petroleum Products

• Highly valuable terminal infrastructure links

Global to energy producing regions across

the globe

• Flexible infrastructure handles a range of

petroleum products

– Tank flexibility, rail flexibility, blending

• Expanding storage, transportation and

marketing of products by rail from the U.S.

and Canada

– Buildout of rail system covering East, West and Gulf Coast to provide rail optionality throughout system

Daily throughput: 450,000 barrels


Vertical Integrated Assets Provide Competitive Advantage

Crude Oil

Refinery

Tanker

Barge

Pipeline

Truck

Storage Facilities

Truck

Rail

Refinery


Retail

Consumer

Rail

Gas station

Wholesale Commercial Gasoline Distribution & Station Operations

Commercial

Industrial

Barge



World Oil Demand in the Lower and Higher Economic Growth

Scenarios

Source: Organization of the Petroleum Exporting Countries, 2014 World Oil Outlook


U.S. and Canadian Crude Oil Production and Forecast

Source: Turner, Mason & Company


U.S. Refinery Capacity by PADD

Refining capacity as of August 2014

Number of operating refineries as of January 2014

Source: Energy Information Administration

9.15

1.30

3.81

0.65

2.91

= Number of operating refineries

56

= Refining capacity million bbl/d

31

17

26

9

Total

139 refineries

17.82 million bbl/d


U.S. Percent Utilization of Refinery Operable Capacity

0

20

40

60

80

100

120

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Source: U.S. Energy Information Administration


National Gasoline Prices by County

Source: GasBuddy.com

(prices as of 11/08/2014)


Pro Forma Retail Footprint with Warren Equities*

Site Type** Global Warren Total

Company Operated 126 147 273

Commission Agents 219 53 272

Dealer Leased 196 20 216

TOTAL 541 220 761

Contract Dealers 342 299 641

Mobil Brand Fee Agreement 129 129

TOTAL 1,012 519 1,531

Key Business Metrics*** Global Warren Total

Motor Fuel Sales (million gallons) 1,001.6 497.1 1,498.7

**Active portfolio with monthly category moves. ***Metrics are based on current run-rate.

Existing Global locations

Warren locations

*Transaction expected to close in Q1 2015, subject to customary closing conditions.


Global has 9.2 million bbls of terminal capacity in the Northeast

Estimated market share1

GLP’s Terminal Network – Northeast

1 Based on terminal capacity (bbls in 000s)

Source: OPIS/Stalsby Petroleum Terminal Encyclopedia,

2013, various marketing materials and Company data

Newburgh, NY: 429K bbls

Albany, NY: 1,402K bbls

Newburgh-Warex: 956K bbls

Commander/Oyster Bay, NY: 134K bbls

Port of Providence, RI: 480K bbls

Sandwich, MA: 99K bbls

Chelsea, MA: 685K bbls

Revere, MA: 2,097K bbls

Portland, ME: 665K bbls

Burlington, VT: 419K bbls

Inwood, NY: 322K bbls

Glenwood Landing, NY: 98K bbls

Wethersfield, CT: 183K bbls

Bridgeport, CT: 110K bbls


Distillate

Ethanol


Residual/Distillate


Distillate/Biofuel


Crude Macungie, PA: 170K bbls

Staten Island: 287K bbls

Philadelphia, PA: 159K bbls

Bayonne, NJ: 371K bbls

Springfield, MA: 54K bbls

Location Est. market capacity GLP capacity GLP % of total

Newburgh, NY 2,755 1,385 50%

Western Long Island, NY 769 554 72%

Boston Harbor, MA 9,774 2,782 28%

Vermont 430 419 97%

Providence, RI 4,455 480 9%

Albany/Rensselaer, NY 9,558 1,402 15%


Expansive Product Portfolio

• Distillates – Home heating oil

– Diesel fuel

– Kerosene

• Gasoline

• Gasoline blendstocks

• Ethanol

• Crude oil

• Residual fuel

• Biofuels

• Propane

• Butane

• Natural gas

• Electricity


Wholesale and Commercial

Business overview

• Bulk purchase, movement, storage and

sale of:

– Gasoline and gasoline blendstocks

– Crude oil

– Other oils and related products

• Customers

– Unbranded gasoline distributors and

transportation fuel resellers

– Home heating oil retailers

– Refiners

Commercial Wholesale

Business overview

• Sales and deliveries to end user customers of:

– Unbranded gasoline

– Heating oil, kerosene, diesel and residual fuel

– Natural gas

– Bunker fuel

• Customers

– Government agencies

– States, towns, municipalities

– Large commercial clients

– Shipping companies


Global Meets the Northeast’s Daily Energy Needs

Gasoline

Diesel fuel

Heating oil

As of 9/30/2014

912K

19K

46K

Automobile tanks filled/day

Diesel trucks filled/day

Homes heated/day in winter


Wholesale Supply Infrastructure

Supply Infrastructure: Limited Product Pipelines in Northeast

Source: IHRDC

0.9

1.2

3.1 2.6

1.5

Vancouver

Anacortes

Billings

Minneapolis

Chicago

New York Wood

River

Salt

Lake

City

Casper Guernsey

Cushing

Beaumont Houston

Patoka

Refining centers

capacity (Million bpd)

Products pipeline

distribution

Source: Energy Policy Research Foundation Inc.

Limited Crude Pipelines to East and West Coasts


Where We Source Barrels

=== Denotes CP and BNSF rail routes to GLP facilities

T

T T T

T Port Arthur Terminal

(early 2017)

Edmonton, AB, Canada

Kansas City, MO

=== Denotes KCS rail route to proposed GLP facility

Imports from

Canada

Imports from

Europe


Distillate

Ethanol


Residual/Distillate


Distillate/Biofuel

Crude

Crude/Ethanol


Transload facility T

Imports from

Other Countries

Imports from U.S.

Virgin Islands and

other Caribbean

Countries


Multiple Distribution Channels Create Optionality for Customers

• Logistics

– Water

– Rail

– Pipeline

– Truck

– Terminals


How We Move Barrels

• Time Charter Barges

–Cost control/operational flexibility

• Spot Ships & Barges

–Strong vendor relationships/market opportunities

• Pipeline

–Colonial & Buckeye

–Tesoro High Plains Pipeline System

• Rail

–Canadian Pacific, CSX Corporation, Norfolk Southern,

Canadian National, Union Pacific & BNSF

–Five terminals with active rail operations

–Global’s leased railcar fleet


Risk Management

• Pricing

– Daily posted rack

– NYMEX or other index-based fixed-forward contracts

– NYMEX or other index-based prompt contracts

• Inventory is Substantially Hedged

– Primarily NYMEX Traded Instruments

– Constant Rebalancing – Intraday

– Basis Risk – Inventory Management


Commercial Segment Overview

• Delivered Fuels Business

– Through competitive bidding process or

through contracts of various terms

• Bunkering

– Custom blended and delivered by barge

or from a terminal dock to ships

• Natural Gas Marketing

• Competitive Strengths

– Reputation and reliability

– Terminal locations

– Customer base

Representative Customers

http://www.dartmouth.edu/home/index.html


Gulf Coast Destination Asset: Port Arthur, TX

• Agreement with Kansas City Southern

• Global will develop and build a unit train terminal

• Terminal will initially handle heavy crude from Canada

• Initial storage capacity of 340,000 to 700,000 barrels

• Expansion capabilities for distillates, renewable fuels

and NGLs

• Designed to handle up to two unit trains per day with

expansion capacity up to six unit trains per day

• Dock capable of handling Aframax-size vessels

• Situated within a 100-mile radius of nearly 5 million

barrels of Gulf Coast refining capacity

• Expected to be in service in early 2017 Port Arthur


West Coast Destination Asset: Clatskanie, OR

• Located on the Columbia River approximately 50 miles from open water

• 200,000 barrels of storage with near term expansion potential

• Served by BNSF via connections with CP and CN

• Approximately 4 days transit by rail from Edmonton

• Capacity for handling 115 car unit trains

• Leased deep water dock


Key Takeaways

• Vertical integration of wholesale business, terminal operations and retail

network drives sourcing efficiencies

• Connection between terminaling and retail gasoline assets uniquely

positions Global as an advantaged fuel provider in supply-constrained

markets

• Increasing geographic diversity and transload capabilities provide

optionality for customers

• Positioned to capitalize on export opportunities

Questions & Answers

Gasoline Distribution &

Station Operations

Andrew Slifka

EVP, President of Gasoline Distribution & Station Operations


Gasoline Distribution and Station Operations

Crude Oil

Refinery

Tanker

Barge

Pipeline

Truck

Storage Facilities

Truck

Rail

Barge

Refinery


Industrial

Commercial

Retail

Consumer

Rail

Gas station

Gasoline Distribution Station Operations



Organization of GDSO Segment

Company Operated Stores

Commission Agents

Dealer Leased

Contract Dealers

126

219

196

342 Mobil Brand Fee Agreement 129


One of the Largest Operators of Gasoline Stations and

Convenience Stores in the Northeast

• Expanding gasoline station portfolio

–~1,000 locations in eight states

–126 company-operated locations

–Brands include Mobil, CITGO, Shell, Gulf and Sunoco

• Major focus on new-to-industry and organic

projects

–Retail site development and expansion

–Merchandising and rebranding

–Co-branding initiatives

• Pending acquisition of Warren Equities, Inc.

–Strengthens footprint in the Northeast

–Expands presence to Mid-Atlantic


Key Facts and Figures

• Supply to ~1,000 stations in total

• Control 540 properties through fee or lease

―Operate 126 of these as company

operated locations

NH, 8%

PA, 9%

ME, 5%

RI, 4%

NJ

VT

MA, 33%

CT, 27%

NY, 13%

State Market Share

Connecticut 16.0%

Massachusetts 10.0%

Rhode Island 9.0%

New Hampshire 9.0%

Maine 3.0%

New England Total 10.0% FYE 12/31/13

*Source NPN Magazine Market Facts 2013 and Company data

• Annuity business: Rental income from Dealer Leased and

Commission Agents as well as convenience store sales are stable

• Vertical integration: Integration between supply, terminaling and

wholesale businesses and gas station sites

• Scale: 1,000+ sites with volume exceeding one billion gallons

• Best in class locations: Preeminent locations in Northeast

• Diversification: Flexible diversity of model, site geography and site

brand

Percentage of Sites by State

Strategic Advantages

Market Share by Station Count*

Segment Profile


GDSO is a Key Contributor to Volume and Margin

*Alliance Energy acquisition completed on 3/1/2012

$88.2

$206.1

$230.2

$195.2

2011 2012 2013 YTD 9/30/14

Segment Product Margin*

(gallons in millions)

442.9

954.3

1,047.1

767.7

2011 2012 2013 YTD 9/30/14

Segment Product Volume

($ in millions)


Convenience Retailing Initiative


Warren Transaction Provides GDSO Segment with Significant

Growth Opportunity

Company Operated Stores

Commission Agents

Dealer Leased

Contract Dealers

147

53

20

299


Key Benefits of Warren Transaction

Strategic and geographic fit

Increased scale and operating synergies

Strong real estate portfolio

Regionally recognized C-store and multi-branded fuel supplier

Quick-service restaurant presence at 37 locations

Opportunity to expand geographically in the Mid-Atlantic


Pro Forma Retail Footprint with Warren Equities*

Site Type** Global Warren Total

Company Operated 126 147 273

Commission Agents 219 53 272

Dealer Leased 196 20 216

TOTAL 541 220 761

Contract Dealers 342 299 641

Mobil Brand Fee Agreement 129 129

TOTAL 1,012 519 1,531

Key Business Metrics*** Global Warren Total

Motor Fuel Sales (million gallons) 1,001.6 497.1 1,498.7

**Active portfolio with monthly category moves. ***Metrics are based on current run-rate.

Existing Global locations

Warren locations

*Transaction expected to close in Q1 2015, subject to customary closing conditions.


Key Takeaways

• Premier retail gasoline portfolio with year-round income stream

• Expanding footprint into key geographies

• Strong real estate portfolio with substantial operational upside

Questions & Answers

Financial Overview

Daphne H. Foster

Chief Financial Officer


Strong Financial Profile & Increasing Distributable Cash Flow

• Track record of growth and profitability with increasing EBITDA and DCF

• 36 consecutive quarterly cash distributions since IPO in October 2005

• Current distribution of $0.6525 per unit ($2.61 per unit annualized)

+912%

9 Months Ended 9/30/2014

Net Income

$86.8

+95%

EBITDA

$180.3

+122%

DCF

$116.9

+43%

Product Margin

$445.7

($ in millions)

Denotes % change from 9 months ended 9/30/2013

Please refer to Appendix for reconciliation of non-GAAP items


Increasing Volume and Sales

$5.8

$7.8

$14.8

$17.6

$19.6

$13.7

2009 2010 2011 2012 2013 YTD 9/30/14

Sales

3.4 3.7

5.2

6.1

7.0

4.8

2009 2010 2011 2012 2013 YTD 9/30/14

Sales Volume (Gallons in billions) ($ in billions)


$67 $72

$86

$136

$157

$180

$0.020 $0.020 $0.016

$0.022 $0.023

$0.038

2009 2010 2011 2012 2013 YTD 9/30/14

$161 $182

$234

$370

$461 $445

$0.047 $0.050 $0.045

$0.061 $0.066

$0.093

2009 2010 2011 2012 2013 YTD 9/30/14


Product Margin

($ in millions, except cents per gallon)

EBITDA

($ in millions, except cents per gallon)

Financial Growth with Consistent Profitability


Performance Demonstrates Diversification and Strong Growth

• Q3 2014 reflects higher throughput volumes through our crude oil transload facilities and strong contribution from the GDSO segment

• Q3 2014 crude oil product margin increased $20.0M over Q3 2013

• Q3 2014 GDSO product margin up $15.5M YOY due to strong fuel margins and increased contribution from station operations

• Expenses increased to support growing business and growth initiatives

($ in millions, except per unit data) Q3 2013 Q3 2014 YTD 2014

Gross profit $118.1 $155.4 $401.1

Net income attributable to GLP $25.8 $42.5 $86.8

Net income per limited partner unit $0.91 $1.50 $3.03

EBITDA $58.5 $74.7 $180.3

Maintenance capex $1.3 $11.2 $28.5

DCF $44.4 $51.5 $116.9


Full-year 2014 EBITDA guidance of $215M to $230M* (as of 11/6/2014)

* This guidance is based on assumptions regarding market conditions, including demand for petroleum products and renewable fuels, weather, credit

markets, the regulatory and permitting environment and the forward product pricing curve, which could influence quarterly financial results.


Expenses to Support Growth

Operating Expenses

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

3 Mos. 9/30/2013 3 Mos. 9/30/2014

+$3.8 - GDSO (new and renovated sites)

+$1.5 - Terminal network

+$1.3 - Crude oil operations

$46.7

$53.3

($ in millions)

+$6.6

SG&A Expenses

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

3 Mos. 9/30/2013 3 Mos. 9/30/2014

+$4.8 - Incentive comp.

+$3.5 - Professional fees

+$1.8 - Additional staff

+$1.6 - Depreciation

+$1.8 - Other miscellaneous

$27.9

$41.4

($ in millions)

+$13.5


Diversified Product Margin

Product Margin by Business Segment

YTD as of 9/30/2014

$445M

Wholesale

51%

Gasoline Distribution &

Station Operations

44%

Commercial

5%

Wholesale

Crude

22%

Wholesale

Distillates &

Residual

13% Wholesale

Gasoline

16%

Gasoline

Distribution

29%

Rent &

C-Store

15%

$88

$206 $230

$195

2011 2012 2013 YTD 9/30/14

$124 $145

$203 $227

2011 2012 2013 YTD 9/30/14

$22 $19 $28 $23

2011 2012 2013 YTD 9/30/14

GDSO Product Margin ($M) Wholesale Product Margin ($M) Commercial Product Margin ($M)



Segment Overview: Margin & Cash Flow Drivers

• Premier locations in densely populated

Northeast

• Northeast market leader

• Scale – Over 1,000 sites

• Consistent rental income

• Ratable convenience store income

• Stable fuel margin over the longer term

Operation

Gasoline Distribution

Rent

+

C-Store Margin

Fuel Margin

Fee

Gasoline Distribution & Station Operations (YTD product margin – $195 million)

Drivers Cash Flow Profile

Fee-like

Fee-like

Margin

Station Operations


Station Operations: Fee Income and Margin Stability

• Dealer Leases

– 3 year agreements

– Market value adjustment by contract

(average ~3 years)

• Commission Agents

– 1 to 3 year agreements

• Co-branding Agreements

Company Operated 126

Commission Agents 219

Dealer Leased 196

Contract Dealers and BFA Agreement 471

Total 1,012

Rent

• Company Operated

– 36% YTD 9/30/2014

– Up 6 points YOY

C-Store Margin

2012 2013 YTD 2013 YTD 2014

$66.4 $80.1 $59.1 $68.6

Station Operations segment consists primarily of rent and C-store sales

Site Type Station Operations Margin ($ in millions)


Operation

Refined Products Supply

Terminal Throughput

+

Supply

Fee-like


• Significant role in energy infrastructure

– Non-replicable assets

– No product pipelines

– Utility like demand

– Market leadership in the Northeast

• Exchange and other contracts

• Unique origin-to-destination assets

• Increasing production requires rail

takeaway

• Robust expansion opportunities with

pipeline connections

• Growing fee-based activities

Wholesale (YTD product margin – $227 million)


Margin

Fee

Margin

Terminal Throughput

+

Logistics Services

+

Supply

Crude Logistics & Supply



• End user demand

• Long-term relationships

• Contracts (delivered business)

Operation

Fuel Distribution

Commercial (YTD product margin – $23 million)


Terminal Throughput

+

Logistics Services

+

Supply

Fee-like

Margin

Delivered fuels business

• ~60% is bid business, typically multi-year contracts

Natural gas commercial supply

• Some contracts extend up to 3 years

Bunkering

• Long-term contract with Defense Logistics Agency, supplied from leased tankage at IMTT terminal

• Seasonal contracts with cruise lines

Contract Composition


4.6 4.0 3.7 4.7 5.0 4.5

6.1 6.6

9.3

12.8

14.6 14.3

16.5

0

5

10

15

20

Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13

Total CPG Retail CPG

Crude logistics and

retail have driven

margin expansion

Volume and Margin

• Consistency/Repeatability – Driving cars & trucks

– Heating buildings and homes

– Term contracts

– Rental income and C-Store sales

(“Station Operations” 12/31/13 margin of $80.1M,

TTM 9/30/14 margin of $89.7M)

• Variability – Market and economic conditions

– Weather

– Seasonality

* Retail excludes C-store margin and rent. 9/30/14 results are TTM.

Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-13 Dec-12 LTM Sept-14

Product Margin (cents per gallon)

*


Period DCF Coverage

2006 1.8x

2007 1.5x

2008 1.3x

2009 1.7x

2010 1.3x

2011 1.1x

2012 1.4x

2013 1.5x

YTD 2014 2.1x

DCF Coverage

($ in millions)

Conservative Distribution Policy

Global has generated $194.9 million in Excess DCF since the IPO with an average

DCF coverage ratio of 1.5x since 2006

Note: Global went public on 10/4/2005.

21.0 35.0

42.9

62.2 73.0 75.7

98.2

134.4

194.9

0.0

50.0

100.0

150.0

200.0

06 07 08 09 10 11 12 13 YTD

2014

Cumulative Excess Cash Flow Reinvested in GLP


Capital Expenditures

• GDSO

–New-to-Industry

–Raze and Rebuilds

–Tuck-in Acquisitions

of Individual Sites

–Rebranding

–Co-branding

• Crude Oil

–Tanks

–Pipeline Connections

–Rail Infrastructure

($ in millions) GDSO Crude Oil Other YTD 2014

Maintenance $14.7 -- $13.8 $28.5

Expansion $16.1 $15.9 $13.1 $45.1

Total $30.8 $15.9 $26.9 $73.6


$0.4875 $0.495 $0.50

$0.5325

$0.60

$0.6525

$1.95 $1.98 $2.00

$2.13

$2.40

$2.61

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014

Quarterly Distribution Annualized Rate

Recently

announced

distribution of

$0.6525

represents

8.75% annual

increase

Selected Distribution History


Balance Sheet at September 30, 2014

• Tangible and liquid with receivables and inventory comprising 45% of total

assets at 9/30/14

• Receivables diversified over a large customer base and turn within 10 to 20

days; write-offs have averaged 0.01% of sales per year over the past five

years

• Inventory represents about 10 to 20 days of sales

• Remaining assets are comprised primarily of $824M of conservatively valued

fixed assets

• $205M (24%) of total debt at 9/30/14 related to inventory financing

– Borrowed under working capital facility

• $641M (76%) is debt related to:

– Terminal operating infrastructure

– Acquisitions and capital expenditures

• Total committed facility of $1.625B:

– $1,000M working capital revolver

– $625M acquisition/general corporate purpose revolver

– Credit agreement matures 4/30/2018

• Issued $375M 6.25% senior notes due 2022

Balance sheet figures

(In thousands)

(Unaudited)

Assets

Current assets:

Cash and cash equivalents $ 5,545

Accounts receivable, net 529,147

Accounts receivable - affiliates 3,411

Inventories 455,709

Brokerage margin deposits 10,792

Fair value of forward fixed price contracts 57,121

Prepaid expenses and other current assets 53,989

Total current assets 1,115,714

Property and equipment, net 823,583

Intangible assets, net 54,195

Goodwill 154,078

Other assets 30,124

Total assets $ 2,177,694

Liabilities and partners' equity

Current liabilities:

Accounts payable $ 545,749

Working capital revolving credit facility - current portion 113,000

Line of credit 700

Environmental liabilities - current portion 3,320

Trustee taxes payable 82,133

Accrued expenses and other current liabilities 63,484

Obligations on forward fixed price contracts 55,754

Total current liabilities 864,140

Working capital revolving credit facility - less current portion 92,000

Revolving credit facility 272,600

Senior notes 368,012

Environmental liabilities - less current portion 36,533

Other long-term liabilities 47,253

Total liabilities 1,680,538

Partners' equity

Global Partners LP equity 447,514

Noncontrolling interest 49,642

Total partners' equity 497,156

Total liabilities and partners' equity $ 2,177,694


Global Debt History & Philosophy

Working Capital Borrowings “Funded” Term Debt (Banks or Bonds)

Purpose Financing of inventory & accounts receivable Acquisition of long-life fixed assets (terminals or stations)

Source of

Repayment

Self-liquidation through rapid turn of inventory & accounts

receivable

Cash flow over time

Asset Coverage Borrowing base of inventory & accounts receivable with ample

availability

Fixed assets with significant excess coverage

Debt Levels –

Controls and

Philosophy

Governed by a borrowing base

Borrowings typically no more than 60% of total inventory &

accounts receivable

Total Funded Term Debt/Adjusted EBITDA*:

Long term target of 3.50x or less

Sources of Debt

Capital

Since going public, have grown bank group to 27 banks and more than tripled the credit facility with every increase significantly

oversubscribed

$1.0 billion working capital credit facility $625 million general corporate purposes credit facility with

commitments to expand to $775 million. Issued $375 million

6.25% Senior Unsecured Notes due 2022 in June of 2014.

* Total Funded Term Debt excludes working capital borrowings


Total Debt (With & Without W/C Facility) to EBITDA

29.1% EBITDA CAGR from 2010 to 2013 while keeping debt relatively flat

• Disciplined Growth Initiatives

• Working Capital Management

• Reinvestment of Excess Cash Flows

$300 $205

$422

$583 $641

$787 $794 $847

$910 $846

0

50

100

150

200

$250

0

200

400

600

800

$1,000

FY 2010 FY 2011 FY 2012 FY 2013 YTD 2014

Debt Excl. W/C Facility EBITDA

$72 $86

$136

$157

$180

Improved Balance Sheet Efficiency

Total Debt


Pending Acquisition of Warren Equities

• Accretive in the first full year of operations

• Expect $50-60 million EBITDA contribution in the second full year of

operations

–Bottom-up, site-by-site analysis to arrive at value

–Historical financial performance not reflective of future performance

• Ability to finance transaction under bank facility

• Long-term financing target: 60/40 Debt/Equity

• On track to close in Q1 2015 subject to customary closing conditions

• Maintenance capex of $6-8 million annually


$20

$50 - $60

$0

$10

$20

$30

$40

$50

$60

$70

2014 Adj. EBITDA* Year 2 Proj. EBITDA

Warren Equities: Acquisition Multiples and Growth Drivers

EBITDA Multiples (Total Consideration / Net of Notes)

19.1x / 17.8x

6.4x / 6.0x

Acquisition Price of $383 million = $357 million Base Price + $26 million in Secured Dealer Notes & Mortgages

($ in millions) C-Store Margin

Fuel Procurement

OpEx Savings

Synergies

Warren EBITDA Growth Drivers

* Warren Equities audited fiscal 2014 financials adjusted for interest income and gain on sale of sites.

Fuel Delivery


Key Takeaways

• Track record of growth, increasing DCF and distributions with

pending accretive transactions

• Stability and diversity underlying cash flows

• Well capitalized with increasing cash flow and flat debt levels

resulting in decreased leverage profile

Questions & Answers


Key Takeaways



Prolific But

Constrained Markets

Diverse Product

and Asset Mix

Strong Financial



Experienced

Management Team

Appendix


Appendix – Financial Reconciliations

2011

Reconciliation of net income to EBITDA

Net income (1) $ 34,134 $ 27,038 $ 19,352 $ 46,743 $ 41,053 $ 25,136 $ 43,622 $ 8,024 $ 88,498

Net loss (income) attributable to noncontrolling interest - - - - 1,562 679 (1,114) 549 (1,699)

Net income attributable to Global Partners LP (1) 34,134 27,038 19,352 46,743 42,615 25,815 42,508 8,573 86,799

Depreciation and amortization, excluding the impact of noncontrolling interest 14,740 20,082 30,359 45,458 70,423 19,061 19,651 50,999 57,253

Interest expense, excluding the impact of noncontrolling interest 16,357 25,317 35,932 42,021 43,537 10,855 12,314 32,113 35,635

Income tax expense 1,429 - 68 1,577 819 2,727 244 852 660

EBITDA (1) $ 66,660 $ 72,437 $ 85,711 $ 135,799 $ 157,394 $ 58,458 $ 74,717 $ 92,537 $ 180,347

Reconciliation of net cash (used in) provided by operating activities to EBITDA

Net cash (used in) provided by operating activities (1) $ (61,129) $ (87,194) $ (17,357) $ 232,452 $ 255,147 $ (73,600) $ 144,367 $ 254,112 $ 194,001

Net changes in operating assets and liabilities and certain non-cash items 110,003 134,314 67,068 (140,251) (136,960) 119,537 (79,167) (190,554) (42,750)

Net cash from operating activities and changes in operating

assets and liabilities attributable to noncontrolling interest - - - - (5,149) (1,061) (3,041) (3,986) (7,199)

Interest expense, excluding the impact of noncontrolling interest 16,357 25,317 35,932 42,021 43,537 10,855 12,314 32,113 35,635

Income tax expense 1,429 - 68 1,577 819 2,727 244 852 660

EBITDA (1) $ 66,660 $ 72,437 $ 85,711 $ 135,799 $ 157,394 $ 58,458 $ 74,717 $ 92,537 $ 180,347

Year Ended December 31,

201320122009 2010 2013 2014

September 30,

Three Months Ended Nine Months Ended

September 30,

2013 2014

(In thousands)

(Unaudited)

Prior year amounts for amortization of deferred financing fees have been reclassified from selling, general and administrative expenses to interest expense to conform to the current year presentation.

(1) Results for the three months ended September 30, 2013 and 2014 include non-cash adjustments of $2.0 million and $0.2 million, respectively, related to the Partnership's RIN RVO and loss on fixed

forward commitments. Results for the nine months ended September 30, 2013 and 2014 include non-cash adjustments of ($29.2 million) and $18.6 million, respectively, related to the RIN RVO and loss on

fixed forward commitments.



(In thousands)

(Unaudited)

Prior year amounts for amortization of deferred financing fees have been reclassified from selling, general and administrative expenses to interest expense to conform to the current year presentation.




Reconciliation of net income to distributable cash flow

Net income (1) $ 34,134 $ 41,053 $ 25,136 $ 43,622 $ 8,024 $ 88,498

Net loss (income) attributable to noncontrolling interest - 1,562 679 (1,114) 549 (1,699)

Net income attributable to Global Partners LP (1) 34,134 42,615 25,815 42,508 8,573 86,799

Depreciation and amortization, excluding the impact of noncontrolling interest 14,740 70,423 19,061 19,651 50,999 57,253

Amortization of deferred financing fees 1,169 6,897 1,744 1,620 5,062 4,187

Amortization of senior notes discount - 368 105 225 263 435

Amortization of routine bank refinancing fees - (4,072) (985) (1,339) (2,955) (3,342)

Maintenance capital expenditures (4,610) (10,977) (1,297) (11,156) (9,192) (28,467)

Distributable cash flow (1) $ 45,433 $ 105,254 $ 44,443 $ 51,509 $ 52,750 $ 116,865

Reconciliation of net cash provided by (used in) operating activities to

distributable cash flow

Net cash provided by (used in) operating activities (1) $ (61,129) $ 255,147 $ (73,600) $ 144,367 $ 254,112 $ 194,001

Net changes in operating assets and liabilities and certain non-cash items 110,003 (136,960) 119,537 (79,167) (190,554) (42,750)

Amortization of deferred financing fees 1,169 6,897 1,744 1,620 5,062 4,187

Amortization of senior notes discount - 368 105 225 263 435

Net cash from operating activities and changes in operating

assets and liabilities attributable to noncontrolling interest - (5,149) (1,061) (3,041) (3,986) (7,199)

Amortization of routine bank refinancing fees - (4,072) (985) (1,339) (2,955) (3,342)

Maintenance capital expenditures (4,610) (10,977) (1,297) (11,156) (9,192) (28,467)

Distributable cash flow (1) $ 45,433 $ 105,254 $ 44,443 $ 51,509 $ 52,750 $ 116,865

2013

Year Ended

December 31,

2009

Nine Months Ended

September 30,

2013 20142013 2014

September 30,

Three Months Ended



(In thousands)

(Unaudited)




Reconciliation of gross profit to product margin

Wholesale segment:

Gasoline and gasoline blendstocks (1) $ 13,974 $ 40,706 $ 54,065 $ 56,224 $ 54,639 $ 43,147 $ 21,854 $ 25,370 $ 4,786 $ 70,959 $ 109,320

Crude oil - - - 12,301 35,538 92,807 24,621 44,670 70,503 98,256 120,560

Other oils and related products 64,835 104,528 90,346 55,308 55,252 66,916 17,592 14,821 45,263 57,964 79,617

Total (1) 78,809 145,234 144,411 123,833 145,429 202,870 64,067 84,861 120,552 227,179 309,497

Gasoline Distribution and Station Operations segment:

Gasoline distribution - - 14,017 56,690 139,706 150,147 43,443 54,306 110,533 126,629 166,243

Station operations - - 8,885 31,491 66,384 80,106 21,287 25,905 59,062 68,609 89,653

Total - - 22,902 88,181 206,090 230,253 64,730 80,211 169,595 195,238 255,896

Commercial segment 14,570 15,410 15,033 21,975 18,652 28,359 4,745 5,234 21,340 23,295 30,314

Combined product margin (1) 93,379 160,644 182,346 233,989 370,171 461,482 133,542 170,306 311,487 445,712 595,707

Depreciation allocated to cost of sales (1,662) (10,816) (15,628) (24,391) (36,683) (55,653) (15,449) (14,871) (40,525) (44,628) (59,756)

Gross profit (1) $ 91,717 $ 149,828 $ 166,718 $ 209,598 $ 333,488 $ 405,829 $ 118,093 $ 155,435 $ 270,962 $ 401,084 $ 535,951

Year Ended December 31,

2005 20132009 2010 2011 2012

Trailing

Twelve

Months Ended

September 30,

2013 2014 2014

Three Months Ended

September 30,

Nine Months Ended

September 30,

2013 2014

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