Embed Size (px)
Citation preview
Q3 2014 Investor Presentation
Global Partners LP (NYSE: GLP)
Q4 2015 Investor Presentation
2
Forward-Looking Statements
Certain statements and information in this presentation may constitute “forward-looking statements.” The words “believe,” “expect,”
“anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could” or other similar expressions are intended to identify forward-looking
statements, which are generally not historical in nature. These forward-looking statements are based on current expectations and beliefs
concerning future developments and their potential effect on Global Partners. While management believes that these forward-looking
statements are reasonable as and when made, there can be no assurance that future developments affecting Global Partners will be
those that it anticipates. All comments concerning Global Partners’ expectations for future revenues and operating results are based on
Global Partners’ forecasts for existing operations and do not include the potential impact of any future acquisitions. Global Partners’
forward-looking statements involve significant risks and uncertainties (some of which are beyond Global Partners’ control) and
assumptions that could cause actual results to differ materially from its historical experience and its present expectations or projections.
For additional information regarding known material factors that could cause Global Partners’ actual results to differ from its projected
results, please see Global Partners LP’s filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Global
Partners undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a
result of new information, future events or otherwise.
3
Use of Non-GAAP Financial Measures
This presentation contains non-GAAP financial measures relating to Global Partners. A reconciliation of these measures to the m ost directly comparable GAAP measures is available in the
Appendix to this presentation. For additional detail regarding selected items impacting comparability, please visit the Inve stor Relations section of Global Partners’ website at
www.globalp.com.
Product Margin
Global Partners views product margin as an important performance measure of the core profitability of its operations. The Par tnership reviews product margin monthly for consistency and
trend analysis. Global Partners defines product margin as product sales minus product costs. Product sales primarily include sales of unbranded and branded gasoline, distillates, residual oil,
renewable fuels, crude oil, natural gas and propane, as well as convenience store sales, gasoline station rental income and r evenue generated from the Partnership’s logistics activities when it
engages in the storage, transloading and shipment of products owned by others. Product costs include the cost of acquiring th e refined petroleum products, renewable fuels, crude oil, natural
gas and propane and all associated costs including shipping and handling costs to bring such products to the point of sale, a s well as product costs related to convenience store items and
costs associated with the Partnership’s logistics activities. The Partnership also looks at product margin on a per unit basi s (product margin divided by volume). Product margin is a non-GAAP
financial measure used by management and external users of Global Partners’ consolidated financial statements to assess the P artnership’s business. Product margin should not be
considered an alternative to net income, operating income, cash flow from operations, or any other measure of financial perfo rmance presented in accordance with GAAP. In addition, Global
Partners’ product margin may not be comparable to product margin or a similarly titled measure of other companies.
EBITDA
EBITDA is a non-GAAP financial measure used as a supplemental financial measure by management and may be used by 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, crude oil, natural gas and propane, without regard to financing methods and capital structure; and
• 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.
4
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
• Engaged in the transportation of crude oil and other products by rail
from the mid-continental U.S. and Canada to the East and West Coasts
5
Strategy In Current Environment
Maintain Strong Balance Sheet
• Reduced capital spending
• Reduced expenses
• Lowered quarterly distribution
Optimize Assets
• Convert 200,000 barrels of storage capacity to ethanol transloading at Oregon terminal
• Use terminal storage capacity to capitalize on contango market
• Maximize value of real-estate portfolio through asset sales and converting mode of operation of certain stations
Pursue Growth Opportunities
• Expand dock in Oregon to create favorable inbound and outbound freight economics
• Development of new to industry sites/raze and rebuilds
6
Global’s DNA
Origin Delivery Destination
Sourcing and Logistics
Gathering Transportation Storage
Integrated Marketing
Retail Wholesale Distribution C-Store Operations
7
Global by the Numbers
Refined Petroleum Bulk Product Terminals
Barrels of Storage Capacity
Barrels of Product Sold Daily
Gas Stations Owned, Leased or Supplied
25
12.2M
368K
1,600
*Included in the ~1,600 total gas stations
281* Company-operated Convenience Stores
8
How Large is Global’s Refined Fuels Network?
Gasoline*
Diesel fuel
Heating oil
TTM as of 12/31/2015
*Total gasoline volume sold
744K
18K
43K
Automobile tanks filled/day
Diesel trucks filled/day
Homes heated/day in winter
9
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
Opened NGL
facility in Albany
Signed pipeline connection
agreements with Tesoro and
Meadowlark
Agreement with KCS to develop
terminal in Port Arthur, TX
~$1.7 Billion in Acquisitions and Investments
2015
Acquired
Warren Equities
Acquired Boston
Harbor Terminal
Acquired NY/DC retail
portfolio from Capitol
Petroleum
Completed 176,000 barrel
storage tank
in Columbus, ND
10
Growth Strategy
• 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 assets and enhance supply and logistical
efficiencies
Organic Growth Initiatives Strategic Acquisitions
• Consolidate markets and leverage scale to
achieve 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
Business Overview
12
Businesses Overview
• Bulk purchase, movement,
storage and sale of:
– Gasoline and gasoline blendstocks
– Crude oil
– Other oils and related products
• Customers
– Branded and unbranded gasoline
distributors
– Home heating oil retailers and
wholesale distributors
– Refiners
CommercialWholesale
• 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
Gasoline Distribution &
Station Operations• Distribution of branded and
unbranded gasoline
• Rental income from dealers,
commission agents and
co-branding arrangements
• Sale of gasoline, convenience
items and car wash services to
retail customers
• Alltown and Xtra Mart
convenience stores
• Customers
– Station operators
– Gasoline jobbers
– Retail customers
13
Vertical Integration
Tanker
Barge
Pipeline
Truck
Storage Facilities
Truck
Rail
Refinery
Wholesale “Rack”
Retail
Consumer
Rail
Gas station
Wholesale Commercial Gasoline Distribution & Station Operations
Commercial
IndustrialBarge
14
Diversified Business Mix
Wholesale
30%
Gasoline Distribution and
Station Operations
66%
Commercial
4%
2015 Product Margin by Business Segment
$692.5M
Wholesale
84%
Commercial
16%
2005 Product Margin by Business Segment
$93.4M
Wholesale
Distillates
45%
Wholesale
Gasoline
15%
Wholesale
Residual Oil
24%
Wholesale
Crude 11%
Wholesale Distillates
& Residual Oil 10%
Wholesale
Gasoline 9%
Gasoline
Distribution
40%
C-Store &
Third-party Rent
26%
Wholesale Segment
16
Global has 11.3 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, 2015 and Company data
Newburgh, NY: 429K bbls
Albany, NY: 1,402K bbls
Newburgh-Warex, NY: 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
Propane/Butane
Crude Macungie, PA: 170K bbls
Staten Island, NY: 287K bbls
Philadelphia, PA: 260K bbls
Bayonne, NJ: 371K bbls
Springfield, MA: 54K bbls
Location Est. market capacity GLP capacity GLP % of total
Newburgh, NY 2,847 1,385 49%
Western Long Island, NY 776 554 71%
Boston Harbor, MA 9,995 2,782 28%
Vermont 427 419 98%
Providence, RI 4,631 480 10%
Albany/Rensselaer, NY 9,387 1,402 15%
Riverhead, NY: 2,045K bbls
Albany, NY: 24K bbls
17
Rail Logistics
Basin Stampede, ND
Clatskanie, OR Terminal
Albany, NY TerminalBasin Beulah, ND
Basin Stampede, ND (CP)– 452,000-barrel total storage capacity with truck-and-rail
off-loading rack
– Economically advantaged single-line long-haul to Albany
Basin Beulah, ND (BNSF)– 280,000-barrel total storage capacity with truck-and-rail
off-loading system
– Single line haul service to West and Gulf Coasts
Pipeline Connections – Tesoro High Plains Pipeline System (THPP)
– Basin Stampede and Basin Beulah to THPP
– Connection to Stampede and Beulah provides customers
with optionality to move product to either facility
– Meadowlark Midstream Partners’ Divide Gathering System
– Basin Stampede to the Divide Gathering System
Clatskanie, OR Terminal (BNSF)– 200,000-barrel total storage capacity
– Served by BNSF through the Genesee &
Wyoming short-line
– Pipeline from offloading to tanks
– Permitted for both crude and ethanol transloading
and ethanol manufacturing
– Capacity for handling 115-car unit trains
– 120M gallons per year ethanol manufacturing
capacity
– Only U.S. ethanol facility located on deep-water
port with direct-ocean access via deep-water river
Albany, NY Terminal (CP)– 1.4M-barrel total storage capacity
– Intermodal terminal linked via single-line
haul to CP
– Enables offloading of two 120-car unit trains
in a 24-hour period
– Terminal intake capacity of approximately
160,000 bbls/day
– Averaging just 4 to 5 days one-way
per train shipment
18
Albany Terminal Critical Link in North American Infrastructure
• Receipt, storage and delivery of
multiple petroleum products
–Gasoline
–Ethanol
–Heating oil
–Crude oil
• Significant intermodal flexibility
–Rail
–Barge
–Truck
19
Initiatives Underway at Oregon Terminal
• Infrastructure projects including enhancement of inbound and outbound freight economics
–Upgrading terminal dock to handle Panamax-
class vessels
–Converting facility’s 200,000 bbls of storage to
ethanol transloading
–Projects expected to be completed in Q3 2016
Gasoline Distribution & Station
Operations Segment
21
One of the Largest Operators of Gasoline Stations and
Convenience Stores in the Northeast
• Large gasoline station and C-store portfolio –Supply ~1,600 locations in 11 states
–~281* company operated fuel locations and C-stores
–Brands include Mobil, CITGO Fuel, Shell, Gulf and Sunoco
• New-to-industry and organic projects –Retail site development and expansion
–Merchandising and rebranding
–Co-branding initiatives
• Acquisitions of Warren Equities and Capitol Petroleum portfolio –Strengthen footprint on East Coast
–Expand presence to mid-Atlantic
–Deepen integration between midstream and downstream assets
*Included in the 1,600 total gas stations
22
GDSO Segment is Downstream Link in Vertically Integrated
Supply Chain
Existing Global locations
Warren locations
Capitol Petroleum locations
• Annuity business: Rental income from
Dealer Leased and Commission Agents
• Vertical integration: Integration between
supply, terminaling and wholesale
businesses and gas station sites
• Scale: ~1,600 sites with volume of 1.5
billion gallons in 2015
• Preeminent locations: Portfolio of “best-in-
class” sites in Northeast and Mid-Atlantic
• Diversification: Flexible diversity of mode of
operation, site geography and site brand
Strategic Advantages
23
Organization of GDSO Segment
Company Operated Stores
Commission Agents
Lessee Dealers
Contract Dealers
281
283
280
665Mobil Brand Fee Agreement126*
*Certain locations included are classified above based on how station is operated by Global
24
Warren Equities: A Transformative Acquisition
for Global’s Retail Platform
• Completed in January 2015
• Meaningfully expands scale while providing significant operational synergies and strategic options
• Strong footprint across 10 states in the Northeast with the majority of its stores primarily
concentrated in MA, CT and NY
• Operates 148 retail gasoline sites and Xtra Mart convenience stores, markets fuel through
53 commission agent locations and supplies fuel to ~330 dealers
• Projected EBITDA:
– Accretive in first full year of operations
– Second full year of operations: $50 million to $60 million
25
Acquired Retail Portfolio from Capitol Petroleum Group
NY0086JT: 646181_1
WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.WASHINGTON, D.C.
AnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolisAnnapolis
Aspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen HillAspen Hill
BethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesdaBethesda
BowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieBowieChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillumChillum
GaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburgGaithersburg
Oxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-GlassmanorOxon Hill-Glassmanor
PotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomacPotomac
RockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockvilleRockville
Silver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver SpringSilver Spring
Suitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver HillSuitland-Silver Hill
Wheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-GlenmontWheaton-Glenmont
AlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAlexandriaAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandaleAnnandale
ArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlington
BurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurkeBurke
Dale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale CityDale City
McLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanMcLeanRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonRestonReston
NY0086JT: 646181_1
NEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKNEW YORKBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonneBayonne
BellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBellevilleBelleville
BloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfieldBloomfield
CliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonCliftonClifton
East OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast OrangeEast Orange
ElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabethElizabeth
Fort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort LeeFort Lee
HackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensackHackensack
IrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonIrvingtonJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey CityJersey City
LindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLindenLinden
NewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewarkNewark
Perth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth AmboyPerth Amboy
UnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnionUnion
West New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest New YorkWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest OrangeWest Orange
East MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast MeadowEast Meadow
FreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeportFreeport
HempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempsteadHempstead
HicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksvilleHicksville
Long BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong BeachLong Beach
OceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceansideOceanside
Valley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley StreamValley Stream
678
95
80
278
95
478
278
398
66
97
498
270
Lessee Dealer Commissioned Agent Dealer – Supply Only
• Completed in June 2015
• Expands Global’s presence in two attractive markets
• Portfolio primarily of 97 Mobil- and Exxon-branded owned or leased retail gas stations and seven dealer supply contracts in NYC and Prince George’s County, MD
• 51 retail locations and seven dealer supply accounts in NYC and 46 retail sites in Maryland/Washington, D.C.
market
• Sites sold a total of ~125 million gallons of fuel in 2014
• Expected to be accretive in the first full year of operations
26
GDSO Segment - Growth Through Organic and M&A Initiatives
Organic Projects:
• Raze and rebuilds
• New-to-industry sites
Real Estate Focus:
• Optimize real-estate portfolio through asset sales
• Convert mode of operation of certain stations to
maximize value
Merchandising Focus:
• Store mix
• Vendor relationships and related buying power
• Co-branding alliances
M&A:
• Transactions that provide strategic and operational
advantages
Commercial Segment
28
Commercial Segment Overview
• Delivered fuels business – commercial and industrial, as well as states, towns and
municipalities
– Through competitive bidding process or through contracts of various terms
• Bunkering – marine vessel fueling
– Custom blending and delivered by barge or from a terminal dock to ships
• Natural gas marketing
29
Expertise and Competitive Strengths
• Expertise –Marketing, logistics and transportation
• Competitive strengths –Reliability
– Terminal locations
–Customer base
Representative Customers
Financial Summary
31
Q4 2015 Financial Performance
($ in millions) Q4 2014 Q4 2015 FY 2014 FY 2015
Product margin $159.4 $157.4 $606.1 $692.5
Gross profit $142.6 $132.6 $544.8 $597.7
Net income (loss) attributable to GLP $27.9 $(2.3) $114.7 $43.6
EBITDA $61.9 $45.8 $242.3 $225.7
Maintenance capex $5.6 $9.7 $34.1 $29.9
DCF $44.4 $17.3 $161.2 $126.9
Please refer to Appendix for reconciliation of non-GAAP items
• Q4 2015 GDSO product margin increased by $34.2M, or 39%, YOY to $121.3M, driven by the acquisitions
of Warren Equities and the retail portfolio from Capitol Petroleum
• Q4 2015 Wholesale product margin decreased by $34.2M, or 52%, YOY to $31.6M, reflecting tighter
differentials in the crude oil market and unseasonably warm temperatures
• Q4 2015 Commercial product margin decreased by $1.9M, or 29%, YOY to $4.5M, primarily reflecting the
effect of warmer temperatures
32
$161 $182
$234
$371
$460
$606
$692
2009 2010 2011 2012 2013 2014 2015
Please refer to Appendix for reconciliation of non-GAAP items
Financial Profile
$67 $72 $86
$136
$157
$242 $226
2009 2010 2011 2012 2013 2014 2015
Product Margin EBITDA
($ in millions) ($ in millions)
DCF
($ in millions)
$45 $46 $47
$81
$105
$161
$127
2009 2010 2011 2012 2013 2014 2015
33
$22 $19
$28 $30 $29
2011 2012 2013 2014 2015
Product Margin by Business Segment
Wholesale
Crude
23%
Q4 2015
$157.4MWholesale Crude 4%
Wholesale Distillates
& Residual 9%
Wholesale Gasoline 7%
Commercial 3%
Gasoline
Distribution
47%
C-Store &
Third-party Rent
30%
$88
$207 $229$283
$455
2011 2012 2013 2014 2015
$124 $145
$203
$293
$208
2011 2012 2013 2014 2015
GDSO Product Margin ($M) Wholesale Product Margin ($M) Commercial Product Margin ($M)
Please refer to Appendix for reconciliation of non-GAAP items
Wholesale 20%
GDSO 77%
FY 2015
$692.5M
Wholesale 30%
GDSO 66%
Commercial 4%
Wholesale
Crude 11%
Gasoline
Distribution
40%
C-Store &
Third-party Rent
26%Wholesale Distillates
& Residual 10%
Wholesale
Gasoline 9%
34
4.6 4.0 3.74.7 5.0 4.5
6.1 6.6
9.5
12.312.814.6 14.3
18.4 18.3
0
5
10
15
20
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total CPG Retail CPG*
Volume and Margin
• Consistency/Repeatability– Driving cars & trucks
– Heating buildings and homes
– Term contracts
– Rental income and C-Store sales
• Variability– Market and economic conditions
– Weather
– Seasonality
* Retail excludes C-store margin and rent
Product Margin (cents per gallon)Station Operations Margin ($M)
$8.9
$31.7
$67.0$78.8
$93.9
$178.5
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
$200.0
2010 2011 2012 2013 2014 2015
35
Period DCF Coverage
2006 1.8x
2007 1.5x
2008 1.3x
2009 1.7x
2010 1.3x
2011 1.1x
2012 1.4x
2013 1.5x
2014 2.0x
2015 1.4x
DCF Coverage
($ in millions)
Conservative Distribution Policy
Global has generated $251.7 million in Excess DCF since its IPO with an average DCF
coverage ratio of 1.5x since 2006
Note: Global went public on 10/4/2005
Cumulative Excess Cash Flow Reinvested in GLP
21.035.0 42.9
62.273.0 75.7
98.2
134.4
216.9
251.7
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
36
Balance Sheet at December 31, 2015
• Tangible and liquid with receivables and inventory comprising 26% of total
assets at 12/31/15
• 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 $1.2B of conservatively valued
fixed assets (strategically located, non-replicable terminals and gas stations)
• $248M (21%) of total debt at 12/31/15 related to inventory financing
– Borrowed under working capital facility
• $926M (79%) is debt related to:
– Terminal operating infrastructure
– Acquisitions and capital expenditures
• Total committed facility of $1.775B*:
– $1,000M working capital revolver
– $775M acquisition/general corporate purpose revolver
– Credit agreement matures 4/30/2018
• Issued $375M 6.25% senior notes due 2022 and $300M 7.00% senior notes due 2023
Balance sheet figures
(In thousands)
Assets
Current assets:
Cash and cash equivalents $ 1,116
Accounts receivable, net 311,354
Accounts receivable - affiliates 2,578
Inventories 388,952
Brokerage margin deposits 31,327
Derivative assets 66,099
Prepaid expenses and other current assets 65,609
Total current assets 867,035
Property and equipment, net 1,242,683
Intangible assets, net 75,694
Goodwill 435,369
Other assets 42,894
Total assets $ 2,663,675
Liabilities and partners' equity
Current liabilities:
Accounts payable $ 303,781
Working capital revolving credit facility - current portion 98,100
Environmental liabilities - current portion 5,350
Trustee taxes payable 95,264
Accrued expenses and other current liabilities 60,328
Derivative liabilities 31,911
Total current liabilities 594,734
Working capital revolving credit facility - less current portion 150,000
Revolving credit facility 269,000
Senior notes 656,564
Environmental liabilities - less current portion 67,883
Financing obligation 89,790
Deferred tax liabilities 84,835
Other long-term liabilities 56,885
Total liabilities 1,969,691
Partners' equity
Global Partners LP equity 647,789
Noncontrolling interest 46,195
Total partners' equity 693,984
Total liabilities and partners' equity $ 2,663,675
*On February 24, 2016, the Partnership amended its credit agreement which reflects the Partnership’s voluntary election to
reduce the working capital revolver to $900M and the revolver to $575M, for a total available commitment of $1.475B.
37
Planned Capital Investments for 2016
Maintenance capex of approximately $40M
• >$30M related to expenses associated with retail sites and GDSO
• Balance for terminals and IT infrastructure
Expansion capex of $30-35M
• Raze-and-rebuilds and NTIs
• Completion of dock expansion and related project infrastructure in Oregon
• IT projects
Appendix
39
Appendix – Financial Reconciliations: Net Income to EBITDA
(In thousands)
(Unaudited)
2011
Reconciliation of net income (loss) to EBITDA
Net income (loss) (1) $ 34,134 $ 27,038 $ 19,352 $ 46,743 $ 41,053 $ 116,980 $ 43,264 $ 28,482 $ (2,905)
Net loss (income) attributable to noncontrolling interest - - - - 1,562 (2,271) 299 (572) 623
Net income (loss) attributable to Global Partners LP (1) 34,134 27,038 19,352 46,743 42,615 114,709 43,563 27,910 (2,282)
Depreciation and amortization, excluding the impact of noncontrolling interest 14,740 20,082 30,359 45,458 70,423 78,888 110,670 21,635 28,667
Interest expense, excluding the impact of noncontrolling interest 16,357 25,317 35,932 42,021 43,537 47,719 73,329 12,084 22,274
Income tax expense (benefit) 1,429 - 68 1,577 819 963 (1,873) 303 (2,842)
EBITDA (1) $ 66,660 $ 72,437 $ 85,711 $ 135,799 $ 157,394 $ 242,279 $ 225,689 $ 61,932 $ 45,817
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 $ 344,902 $ 70,506 $ 150,901 $ 75,898
Net changes in operating assets and liabilities and certain non-cash items 110,003 134,314 67,068 (140,251) (136,960) (141,558) 88,609 (98,808) (49,001)
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest - - - - (5,149) (9,747) (4,882) (2,548) (512)
Interest expense, excluding the impact of noncontrolling interest 16,357 25,317 35,932 42,021 43,537 47,719 73,329 12,084 22,274
Income tax expense (benefit) 1,429 - 68 1,577 819 963 (1,873) 303 (2,842)
EBITDA (1) $ 66,660 $ 72,437 $ 85,711 $ 135,799 $ 157,394 $ 242,279 $ 225,689 $ 61,932 $ 45,817
(1) Results for the year ended December 31, 2013 include a non-cash adjustment of ($19.3 million) related to the Partnership's RIN RVO and loss on fixed forward commitments.
2014 2015
December 31,
Three Months Ended
2014201320122009 2010 2015
Year Ended December 31,
40
Appendix – Financial Reconciliations: Net Income to DCF
Reconciliation of net income (loss) to distributable cash flow
Net income (loss) (1) $ 34,134 $ 27,038 $ 19,352 $ 46,743 $ 41,053 $ 116,980 $ 43,264 $ 28,482 $ (2,905)
Net loss (income) attributable to noncontrolling interest - - - - 1,562 (2,271) 299 (572) 623
Net income (loss) attributable to Global Partners LP (1) 34,134 27,038 19,352 46,743 42,615 114,709 43,563 27,910 (2,282)
Depreciation and amortization, excluding the impact of noncontrolling interest 15,909 23,089 30,359 45,458 70,423 78,888 110,670 21,635 28,667
Amortization of deferred financing fees and senior notes discount - - 4,723 5,753 7,265 6,186 6,988 1,564 1,826
Amortization of routine bank refinancing fees - - (3,467) (4,073) (4,072) (4,444) (4,516) (1,102) (1,135)
Maintenance capital expenditures, excluding the impact of noncontrolling interest (4,610) (4,092) (4,226) (13,112) (10,977) (34,115) (29,850) (5,648) (9,740)
Distributable cash flow (1) $ 45,433 $ 46,035 $ 46,741 $ 80,769 $ 105,254 $ 161,224 $ 126,855 $ 44,359 $ 17,336
Reconciliation of net cash provided by (used in) operating activities to
distributable cash flow
Net cash (used in) provided by operating activities (1) $ (61,129) $ (87,194) $ (17,357) $ 232,452 $ 255,147 $ 344,902 $ 70,506 $ 150,901 $ 75,898
Net changes in operating assets and liabilities and certain non-cash items 111,172 137,321 67,068 (140,251) (136,960) (141,558) 88,609 (98,808) (49,001)
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest - - - - (5,149) (9,747) (4,882) (2,548) (512)
Amortization of deferred financing fees and senior notes discount - - 4,723 5,753 7,265 6,186 6,988 1,564 1,826
Amortization of routine bank refinancing fees - - (3,467) (4,073) (4,072) (4,444) (4,516) (1,102) (1,135)
Maintenance capital expenditures, excluding the impact of noncontrolling interest (4,610) (4,092) (4,226) (13,112) (10,977) (34,115) (29,850) (5,648) (9,740)
Distributable cash flow (1) $ 45,433 $ 46,035 $ 46,741 $ 80,769 $ 105,254 $ 161,224 $ 126,855 $ 44,359 $ 17,336
(1) Results for the year ended December 31, 2013 include a non-cash adjustment of ($19.3 million) related to the Partnership's RIN RVO and loss on fixed forward commitments.
2011 20122009 2010 2013 2015
Year Ended December 31,
2014 2015
December 31,
Three Months Ended
2014
(In thousands)
(Unaudited)
41
Appendix – Financial Reconciliations: Gross Profit to Product Margin
(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 $ 71,713 $ 66,031 $ 754 $ 11,337
Crude oil - - - 12,301 35,538 92,807 141,965 74,182 43,709 6,378
Other oils and related products 64,835 104,528 90,346 55,308 55,252 66,916 79,376 67,709 21,412 13,908
Total (1) 78,809 145,234 144,411 123,833 145,429 202,870 293,054 207,922 65,875 31,623
Gasoline Distribution and Station Operations segment:
Gasoline distribution - - 14,017 56,690 139,706 150,147 189,439 276,848 62,810 73,643
Station operations (2) - - 8,885 31,713 67,011 78,833 93,939 178,487 24,270 47,651
Total - - 22,902 88,403 206,717 228,980 283,378 455,335 87,080 121,294
Commercial segment 14,570 15,410 15,033 21,975 18,652 28,359 29,716 29,201 6,421 4,532
Combined product margin (1) 93,379 160,644 182,346 234,211 370,798 460,209 606,148 692,458 159,376 157,449
Depreciation allocated to cost of sales (1,662) (10,816) (15,628) (24,391) (36,683) (55,653) (61,361) (94,789) (16,733) (24,825)
Gross profit (1) $ 91,717 $ 149,828 $ 166,718 $ 209,820 $ 334,115 $ 404,556 $ 544,787 $ 597,669 $ 142,643 $ 132,624
(1) Results for the year ended December 31, 2013 include a non-cash adjustment of ($19.3 million) related to the Partnership's RIN RVO and loss on fixed forward commitments.
(2) Amounts prior to 2015 include the reclass of gain or loss on sale and disposition of assets from product margin to operating expenses to conform to the Partnership's current presentation.
2014 2015
Three Months Ended
December 31,
2015
Year Ended December 31,
20132009 2010 2011 2012 20142005
