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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
3 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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.
4 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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.
Investment Highlights & Strategy
Eric Slifka
President & Chief Executive Officer
6 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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)
7 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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%
8 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Vision
“Leadership in gathering, storage,
transportation and marketing of refined
petroleum products, crude oil, renewable fuels,
natural gas and propane.”
9 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
10 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
11 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Global’s DNA: Sourcing, Logistics & Marketing
Origin Delivery Destination
“Virtual Pipeline”
Gathering Transportation Storage
Integrated Marketing
Retail Wholesale Distribution
Alltow photo
C-Store Operations
12 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
13 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14
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
Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15
Total production Production forecast
14 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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:
15 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
16 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
17 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
18 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
19 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
20 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
21 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
22 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Key Financial Metrics
$66.7
$157.4
2009 2013
EBITDA
$1.95
$2.61
2009 2013
Distribution History
$45.4
$105.3
2009 2013
Distributable Cash Flow
$157.4
$463.2
2009 2013
Partners’ Equity
($ in millions) ($ in millions)
($ in millions)
+34%
+136% +132%
+194%
23 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Key Takeaways
Critical Logistics and
Infrastructure Serving
Prolific But
Constrained Markets
Diverse Product
and Asset Mix
Strong Financial
Profile & Increasing
Distributable Cash Flow
Experienced
Management Team
Questions & Answers
Terminal Operations
Bill Davidson
Senior Vice President, Terminals & Operations
26 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
27 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
28 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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%
29 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Growth and Versatility of Terminal Assets
Growth in Rail Car Spots Rail Storage Capacity (bbls)
30 300+
2011 2014 2011 2014
650K 200K
30 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
31 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
32 │ Global Partners LP 2014 Investor Day │ November 11, 2014
• 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
33 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
34 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
35 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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)
36 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
37 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
38 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
39 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
42 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
43 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Vertical Integrated Assets Provide Competitive Advantage
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
44 │ Global Partners LP 2014 Investor Day │ November 11, 2014
World Oil Demand in the Lower and Higher Economic Growth
Scenarios
Source: Organization of the Petroleum Exporting Countries, 2014 World Oil Outlook
45 │ Global Partners LP 2014 Investor Day │ November 11, 2014
U.S. and Canadian Crude Oil Production and Forecast
Source: Turner, Mason & Company
46 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
47 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
48 │ Global Partners LP 2014 Investor Day │ November 11, 2014
National Gasoline Prices by County
Source: GasBuddy.com
(prices as of 11/08/2014)
49 │ Global Partners LP 2014 Investor Day │ November 11, 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.
50 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
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%
51 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Expansive Product Portfolio
• Distillates – Home heating oil
– Diesel fuel
– Kerosene
• Gasoline
• Gasoline blendstocks
• Ethanol
• Crude oil
• Residual fuel
• Biofuels
• Propane
• Butane
• Natural gas
• Electricity
52 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
53 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
54 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
55 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
Key to Terminal Type
Distillate
Ethanol
Gasoline/Distillate/Ethanol
Residual/Distillate
Residual/Distillate/Biofuel
Distillate/Biofuel
Crude
Crude/Ethanol
Gasoline/Distillate/Ethanol/Crude
Transload facility T
Imports from
Other Countries
Imports from U.S.
Virgin Islands and
other Caribbean
Countries
56 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Multiple Distribution Channels Create Optionality for Customers
• Logistics
– Water
– Rail
– Pipeline
– Truck
– Terminals
57 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
58 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
59 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
60 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
61 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
62 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
65 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Gasoline Distribution and Station Operations
Crude Oil
Refinery
Tanker
Barge
Pipeline
Truck
Storage Facilities
Truck
Rail
Barge
Refinery
Wholesale “Rack”
Industrial
Commercial
Retail
Consumer
Rail
Gas station
Gasoline Distribution Station Operations
66 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Organization of GDSO Segment
Company Operated Stores
Commission Agents
Dealer Leased
Contract Dealers
126
219
196
342 Mobil Brand Fee Agreement 129
67 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
68 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
69 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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)
70 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Convenience Retailing Initiative
71 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Warren Transaction Provides GDSO Segment with Significant
Growth Opportunity
Company Operated Stores
Commission Agents
Dealer Leased
Contract Dealers
147
53
20
299
72 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
73 │ Global Partners LP 2014 Investor Day │ November 11, 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.
74 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
77 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
78 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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)
79 │ Global Partners LP 2014 Investor Day │ November 11, 2014
$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
$0.093
2009 2010 2011 2012 2013 YTD 9/30/14
Please refer to Appendix for reconciliation of non-GAAP items
Product Margin
($ in millions, except cents per gallon)
EBITDA
($ in millions, except cents per gallon)
Financial Growth with Consistent Profitability
80 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
Please refer to Appendix for reconciliation of non-GAAP items
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.
81 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
82 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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)
Please refer to Appendix for reconciliation of non-GAAP items
83 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
84 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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)
85 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Operation
Refined Products Supply
Terminal Throughput
+
Supply
Fee-like
Segment Overview: Margin & Cash Flow Drivers
• 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)
Drivers Cash Flow Profile
Margin
Fee
Margin
Terminal Throughput
+
Logistics Services
+
Supply
Crude Logistics & Supply
86 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Segment Overview: Margin & Cash Flow Drivers
• End user demand
• Long-term relationships
• Contracts (delivered business)
Operation
Fuel Distribution
Commercial (YTD product margin – $23 million)
Drivers Cash Flow Profile
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
87 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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 $89.7M)
• Variability – Market and economic conditions
– Weather
– Seasonality
* Retail excludes C-store margin and rent. 9/30/14 results are TTM.
Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-13 Dec-12 LTM Sept-14
Product Margin (cents per gallon)
*
88 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Period DCF Coverage
2006 1.8x
2007 1.5x
2008 1.3x
2009 1.7x
2010 1.3x
2011 1.1x
2012 1.4x
2013 1.5x
YTD 2014 2.1x
DCF Coverage
($ in millions)
Conservative Distribution Policy
Global has generated $194.9 million in Excess DCF since the IPO with an average
DCF coverage ratio of 1.5x since 2006
Note: Global went public on 10/4/2005.
21.0 35.0
42.9
62.2 73.0 75.7
98.2
134.4
194.9
0.0
50.0
100.0
150.0
200.0
06 07 08 09 10 11 12 13 YTD
2014
Cumulative Excess Cash Flow Reinvested in GLP
89 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Capital Expenditures
• GDSO
–New-to-Industry
–Raze and Rebuilds
–Tuck-in Acquisitions
of Individual Sites
–Rebranding
–Co-branding
• Crude Oil
–Tanks
–Pipeline Connections
–Rail Infrastructure
($ 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
90 │ Global Partners LP 2014 Investor Day │ November 11, 2014
$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
91 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
92 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
93 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
94 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
95 │ Global Partners LP 2014 Investor Day │ November 11, 2014
$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
96 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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
98 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Key Takeaways
Critical Logistics and
Infrastructure Serving
Prolific But
Constrained Markets
Diverse Product
and Asset Mix
Strong Financial
Profile & Increasing
Distributable Cash Flow
Experienced
Management Team
Appendix
100 │ Global Partners LP 2014 Investor Day │ November 11, 2014
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.
101 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Appendix – Financial Reconciliations
(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.
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
102 │ Global Partners LP 2014 Investor Day │ November 11, 2014
Appendix – Financial Reconciliations
(In thousands)
(Unaudited)
(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.
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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