Business Context and Reporting Period
Company: Global Partners LP (GLP)
Filing Type: Form 10-Q (Unaudited)
Reporting Period: Quarter and six months ended June 30, 2026
Business Overview: A master limited partnership owning, controlling, or having access to a large terminal network of refined petroleum products and renewable fuels. It operates 1,505 gasoline stations and 286 convenience stores primarily in the Northeast U.S., plus 69 stations in Texas via a joint venture.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 |
Six Months Ended June 30, 2026 |
|---|---|---|
| Sales | $6.79 billion | $12.11 billion |
| Gross Profit | $328.9 million | $661.1 million |
| Operating Income | $107.4 million | $213.1 million |
| Net Income | $71.0 million | $141.1 million |
| Net Income Attributable to Common Partners | $63.3 million | $126.3 million |
| Diluted EPS (Common) | $1.86 | $3.70 |
| EBITDA | $146.0 million | $288.1 million |
| Adjusted EBITDA | $148.2 million | $288.5 million |
| Net Cash Provided by Operating Activities | N/A | $204.7 million |
| Total Debt (Credit Facilities + Senior Notes) | $1.51 billion | $1.51 billion |
| Cash and Cash Equivalents | $23.9 million | $23.9 million |
Material Changes vs. Prior Period
- Revenue Growth: Sales increased 47% ($2.2 billion) for the quarter and 31% ($2.9 billion) for the six months compared to the prior year periods, driven primarily by higher product prices and increased volumes in the Wholesale and Commercial segments.
- Profitability: Net income attributable to common limited partners surged 237% for the quarter ($63.3M vs. $18.8M) and 303% for the six months ($126.3M vs. $31.3M). Gross profit margins improved due to favorable market conditions in gasoline and bunkering.
- Segment Performance:
- Wholesale: Sales up 56% (QoQ) and 38% (6M) due to price and volume increases.
- GDSO: Gasoline distribution margins increased due to higher cents-per-gallon margins.
- Commercial: Product margin increased 72% (QoQ) and 68% (6M) driven by favorable bunkering markets.
- Working Capital: Working capital increased to $230.3 million from $151.3 million at year-end 2025, reflecting higher receivables and inventories due to price increases, partially offset by higher payables.
Guidance, Outlook, and Risks
- Capital Expenditures: Management expects maintenance capital expenditures of $60.0–$70.0 million and expansion capital expenditures of $75.0–$85.0 million for the full year 2026.
- Distributions: A quarterly cash distribution of $0.7800 per unit ($3.12 annualized) was declared for Q2 2026, payable August 14, 2026.
- Subsequent Events: On July 30, 2026, the Partnership redeemed all outstanding Series B Preferred Units ($76.5 million total cost), eliminating future preferred distributions.
- Credit Facilities: In March 2026, the Partnership exercised an accordion feature to increase total credit commitment to $1.8 billion. As of June 30, 2026, remaining availability was $1.44 billion.
- Risks: Key risks include commodity price volatility, potential disruption in transportation services (rail, marine, pipeline), environmental liabilities, and the impact of alternative fuel technologies on long-term gasoline demand.
Investor Verification Checklist
- Preferred Unit Redemption: Verify the impact of the July 30, 2026, redemption of Series B Preferred Units on future cash flow and distribution calculations.
- Derivative Positions: Review Note 7 for details on the net liability position of derivative instruments ($35.5 million net liability at June 30, 2026) and sensitivity to price changes.
- Environmental Liabilities: Monitor the $93.4 million in environmental liabilities and ongoing legal proceedings, including the Conservation Law Foundation complaint regarding NPDES permits.
- Joint Venture Exposure: Assess the performance and cash flow contributions of equity method investments, specifically Spring Partners Retail LLC (SPR) and the Everett Landco project.
- Debt Covenants: Confirm continued compliance with financial covenants (leverage ratios, interest coverage) under the $1.8 billion credit agreement.