Quarterly Report (10-q)

GLP Global Partners LP

GLP Global Partners LP

Hot Features

News Global Partners Lp

Hot Features

News Global Partners Lp

Follow Feed

Optionen-Flow

Watchlist

Kürzlich von Ihnen besucht

Trends

Toplisten

Follow Feed

Optionen-Flow

Watchlist

Kürzlich von Ihnen besucht

Marktdaten

News

Werkzeuge

Märkte

Entdecken

Unternehmen

Geschäft

Popular

App herunterladen

Marktdaten

News

Werkzeuge

Märkte

Entdecken

Unternehmen

Geschäft

Popular

App herunterladen

http://fasb.org/us-gaap/2022#AccruedEnvironmentalLossContingenciesCurrenthttp://fasb.org/us-gaap/2022#AccruedEnvironmentalLossContingenciesCurrenthttp://fasb.org/us-gaap/2022#AccruedEnvironmentalLossContingenciesCurrenthttp://fasb.org/us-gaap/2022#DerivativeAssetsCurrenthttp://fasb.org/us-gaap/2022#DerivativeLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#DerivativeAssetsCurrenthttp://fasb.org/us-gaap/2022#DerivativeLiabilitiesCurrent0.59375http://fasb.org/us-gaap/2022#Revenues27600002760000http://fasb.org/us-gaap/2022#Revenues0001323468--12-312023Q1falseP90D300000030000000.500001323468us-gaap:DisposalGroupDisposedOfByMeansOtherThanSaleNotDiscontinuedOperationsMemberglp:SaleLeasebackSitesMember2023-03-310001323468glp:AllSeniorNotesMember2023-03-310001323468us-gaap:DisposalGroupDisposedOfByMeansOtherThanSaleNotDiscontinuedOperationsMemberglp:SaleLeasebackSitesMember2022-12-310001323468glp:CreditAgreementMember2022-12-310001323468glp:AllSeniorNotesMember2022-12-310001323468us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:CommodityMember2023-01-012023-03-310001323468us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:CommodityMember2022-01-012022-03-310001323468us-gaap:SalesRevenueProductLineMember2023-01-012023-03-310001323468glp:ProductMarginMember2023-01-012023-03-310001323468glp:TidewaterMember2023-01-012023-03-310001323468glp:RefinedPetroleumProductsRenewableFuelsCrudeOilAndPropaneMemberglp:WholesaleSegmentMember2023-01-012023-03-310001323468glp:RefinedPetroleumProductsRenewableFuelsCrudeOilAndPropaneMemberglp:GasolineDistributionAndStationOperationsSegmentMember2023-01-012023-03-310001323468glp:RefinedPetroleumProductsRenewableFuelsCrudeOilAndPropaneMemberglp:CommercialSegmentMember2023-01-012023-03-310001323468glp:StationOperationsMember2023-01-012023-03-310001323468glp:RefinedPetroleumProductsRenewableFuelsCrudeOilAndPropaneMember2023-01-012023-03-310001323468glp:RefinedPetroleumProductsRenewableFuelsCrudeOilAndPropaneMemberglp:WholesaleSegmentMember2022-01-012022-03-310001323468glp:RefinedPetroleumProductsRenewableFuelsCrudeOilAndPropaneMemberglp:GasolineDistributionAndStationOperationsSegmentMember2022-01-012022-03-310001323468glp:RefinedPetroleumProductsRenewableFuelsCrudeOilAndPropaneMemberglp:CommercialSegmentMember2022-01-012022-03-310001323468glp:StationOperationsMember2022-01-012022-03-310001323468glp:RefinedPetroleumProductsRenewableFuelsCrudeOilAndPropaneMember2022-01-012022-03-310001323468us-gaap:GeneralPartnerMember2023-01-012023-03-310001323468us-gaap:GeneralPartnerMember2022-01-012022-03-310001323468us-gaap:LandMember2023-03-310001323468us-gaap:ConstructionInProgressMember2023-03-310001323468us-gaap:BuildingAndBuildingImprovementsMember2023-03-310001323468glp:IdlePlantAssetsMember2023-03-310001323468glp:FixturesAndEquipmentMember2023-03-310001323468glp:CapitalizedInternalUseSoftwareMember2023-03-310001323468us-gaap:LandMember2022-12-310001323468us-gaap:ConstructionInProgressMember2022-12-310001323468us-gaap:BuildingAndBuildingImprovementsMember2022-12-310001323468glp:IdlePlantAssetsMember2022-12-310001323468glp:FixturesAndEquipmentMember2022-12-310001323468glp:CapitalizedInternalUseSoftwareMember2022-12-310001323468glp:WorkingCapitalFacilityMember2023-01-012023-03-310001323468glp:WorkingCapitalFacilityMember2022-01-012022-03-310001323468glp:NonWorkingCapitalFacilityMember2022-01-012022-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesMemberus-gaap:LimitedPartnerMember2023-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMemberus-gaap:LimitedPartnerMember2023-03-310001323468us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesMemberus-gaap:LimitedPartnerMember2022-12-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMemberus-gaap:LimitedPartnerMember2022-12-310001323468glp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2022-12-310001323468us-gaap:GeneralPartnerMember2022-12-310001323468us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001323468glp:LimitedPartnershipUnitsPreferredSeriesMemberus-gaap:LimitedPartnerMember2022-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMemberus-gaap:LimitedPartnerMember2022-03-310001323468glp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2022-03-310001323468us-gaap:GeneralPartnerMember2022-03-310001323468us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesMemberus-gaap:LimitedPartnerMember2021-12-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMemberus-gaap:LimitedPartnerMember2021-12-310001323468glp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2021-12-310001323468us-gaap:GeneralPartnerMember2021-12-310001323468us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001323468glp:LimitedPartnershipUnitsPreferredSeriesMemberus-gaap:LimitedPartnerMember2023-01-012023-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMemberus-gaap:LimitedPartnerMember2023-01-012023-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesMemberus-gaap:LimitedPartnerMember2022-01-012022-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMemberus-gaap:LimitedPartnerMember2022-01-012022-03-310001323468us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001323468us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001323468glp:LimitedPartnershipUnitsPreferredMember2023-01-012023-03-310001323468glp:LimitedPartnershipUnitsPreferredMember2022-01-012022-03-310001323468glp:LimitedPartnershipUnitsCommonMember2022-01-012022-03-310001323468glp:SlifkaFamilyMember2023-03-310001323468glp:WorkingCapitalFacilityMember2023-03-310001323468glp:NonWorkingCapitalFacilityMember2023-03-310001323468glp:CreditAgreementMember2023-03-310001323468us-gaap:RevolvingCreditFacilityMember2023-02-020001323468glp:AffiliatesOfGeneralPartnerMemberglp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2023-03-310001323468glp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2023-03-310001323468glp:AffiliatesOfGeneralPartnerMemberglp:LimitedPartnershipUnitsCommonMember2023-03-310001323468glp:LimitedPartnershipUnitsCommonMember2023-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesMember2022-12-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMember2022-12-310001323468glp:LimitedPartnershipUnitsCommonMember2022-12-310001323468glp:GlobalPartnersLpMemberus-gaap:LimitedPartnerMember2023-01-012023-03-310001323468glp:AffiliatesOfGeneralPartnerMemberglp:GlobalPartnersLpMember2023-01-012023-03-310001323468glp:GlobalPartnersLpMemberus-gaap:GeneralPartnerMember2023-01-012023-03-310001323468srt:CrudeOilMember2023-03-310001323468glp:ResidualOilMember2023-03-310001323468glp:RenewableIdentificationNumbersMember2023-03-310001323468glp:GasolineMember2023-03-310001323468glp:GasolineBlendStockMember2023-03-310001323468glp:DistillatesResidualOilAndPropaneSalesMember2023-03-310001323468glp:ConvenienceStoreInventoryMember2023-03-310001323468srt:CrudeOilMember2022-12-310001323468glp:ResidualOilMember2022-12-310001323468glp:RenewableIdentificationNumbersMember2022-12-310001323468glp:GasolineMember2022-12-310001323468glp:GasolineBlendStockMember2022-12-310001323468glp:DistillatesResidualOilAndPropaneSalesMember2022-12-310001323468glp:ConvenienceStoreInventoryMember2022-12-310001323468us-gaap:GeneralPartnerMember2023-03-310001323468us-gaap:GeneralPartnerMember2023-03-310001323468us-gaap:GeneralPartnerMember2022-12-310001323468glp:AnnualizedBasisMemberglp:LimitedPartnershipUnitsCommonMemberus-gaap:SubsequentEventMember2023-04-252023-04-250001323468glp:AnnualizedBasisMemberglp:LimitedPartnershipUnitsPreferredSeriesMemberus-gaap:SubsequentEventMember2023-04-172023-04-170001323468glp:AnnualizedBasisMemberglp:LimitedPartnershipUnitsPreferredSeriesBMemberus-gaap:SubsequentEventMember2023-04-172023-04-1700013234682023-02-142023-02-140001323468glp:LimitedPartnershipUnitsCommonMemberus-gaap:SubsequentEventMember2023-04-252023-04-250001323468glp:LimitedPartnershipUnitsCommonMember2023-04-252023-04-250001323468glp:LimitedPartnershipUnitsPreferredSeriesMemberus-gaap:SubsequentEventMember2023-04-172023-04-170001323468glp:LimitedPartnershipUnitsPreferredSeriesBMemberus-gaap:SubsequentEventMember2023-04-172023-04-170001323468glp:LimitedPartnershipUnitsPreferredSeriesMember2023-04-172023-04-170001323468glp:LimitedPartnershipUnitsPreferredSeriesBMember2023-04-172023-04-170001323468glp:LimitedPartnershipUnitsPreferredSeriesMember2023-02-152023-02-150001323468glp:LimitedPartnershipUnitsPreferredSeriesBMember2023-02-152023-02-150001323468us-gaap:ExchangeTradedOptionsMemberus-gaap:ShortMember2023-01-012023-03-310001323468us-gaap:ExchangeTradedOptionsMemberus-gaap:LongMember2023-01-012023-03-310001323468glp:DerivativesPetroleumEthanolMemberus-gaap:ShortMember2023-01-012023-03-310001323468glp:DerivativesPetroleumEthanolMemberus-gaap:LongMember2023-01-012023-03-310001323468glp:DerivativeLiabilitiesMemberus-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2023-03-310001323468glp:DerivativeLiabilitiesMemberus-gaap:ForwardContractsMember2023-03-310001323468glp:DerivativeLiabilitiesMemberus-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2022-12-310001323468glp:DerivativeLiabilitiesMemberus-gaap:ForwardContractsMember2022-12-310001323468glp:DerivativeAssetsMemberus-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2023-03-310001323468glp:BrokerMarginDepositsMemberus-gaap:ExchangeTradedOptionsMemberus-gaap:NondesignatedMember2023-03-310001323468glp:BrokerMarginDepositsMemberus-gaap:ExchangeTradedOptionsMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310001323468glp:DerivativeAssetsMemberus-gaap:ForwardContractsMember2023-03-310001323468glp:BrokerMarginDepositsMemberus-gaap:ExchangeTradedOptionsMember2023-03-310001323468us-gaap:NondesignatedMember2023-03-310001323468us-gaap:DesignatedAsHedgingInstrumentMember2023-03-310001323468glp:DerivativeAssetsMemberus-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2022-12-310001323468glp:BrokerMarginDepositsMemberus-gaap:ExchangeTradedOptionsMemberus-gaap:NondesignatedMember2022-12-310001323468glp:BrokerMarginDepositsMemberus-gaap:ExchangeTradedOptionsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001323468glp:DerivativeAssetsMemberus-gaap:ForwardContractsMember2022-12-310001323468glp:BrokerMarginDepositsMemberus-gaap:ExchangeTradedOptionsMember2022-12-310001323468us-gaap:NondesignatedMember2022-12-310001323468us-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001323468us-gaap:ForwardContractsMember2023-03-310001323468us-gaap:ForwardContractsMember2022-12-310001323468us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001323468us-gaap:ForwardContractsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001323468us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001323468us-gaap:ForwardContractsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001323468glp:CreditAgreementMember2022-01-012022-03-310001323468glp:SeniorNotes7.00PercentDue2027Member2023-03-310001323468glp:SeniorNotes6.875PercentDue2029Member2023-03-310001323468glp:SeniorNotes7.00PercentDue2027Member2022-12-310001323468glp:SeniorNotes6.875PercentDue2029Member2022-12-310001323468glp:StationOperationsMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2023-01-012023-03-310001323468glp:ProductMarginMemberus-gaap:CustomerConcentrationRiskMemberglp:WholesaleSegmentMember2023-01-012023-03-310001323468glp:ProductMarginMemberus-gaap:CustomerConcentrationRiskMemberglp:GasolineDistributionAndStationOperationsSegmentMember2023-01-012023-03-310001323468glp:ProductMarginMemberus-gaap:CustomerConcentrationRiskMemberglp:CommercialSegmentMember2023-01-012023-03-310001323468glp:GasolineAndGasolineBlendstockMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2023-01-012023-03-310001323468glp:DistillatesResidualOilAndPropaneSalesMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2023-01-012023-03-310001323468us-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2023-01-012023-03-310001323468glp:ProductMarginMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-03-310001323468glp:StationOperationsMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2022-01-012022-03-310001323468glp:ProductMarginMemberus-gaap:CustomerConcentrationRiskMemberglp:WholesaleSegmentMember2022-01-012022-03-310001323468glp:ProductMarginMemberus-gaap:CustomerConcentrationRiskMemberglp:GasolineDistributionAndStationOperationsSegmentMember2022-01-012022-03-310001323468glp:ProductMarginMemberus-gaap:CustomerConcentrationRiskMemberglp:CommercialSegmentMember2022-01-012022-03-310001323468glp:GasolineAndGasolineBlendstockMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2022-01-012022-03-310001323468glp:DistillatesResidualOilAndPropaneSalesMemberus-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2022-01-012022-03-310001323468us-gaap:SalesRevenueNetMemberus-gaap:ProductConcentrationRiskMember2022-01-012022-03-310001323468glp:ProductMarginMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-03-310001323468glp:InventoriesAndForwardFixedPriceContractsMemberus-gaap:FairValueHedgingMemberus-gaap:CostOfSalesMember2023-01-012023-03-310001323468glp:InventoriesAndForwardFixedPriceContractsMemberus-gaap:FairValueHedgingMemberus-gaap:CostOfSalesMember2022-01-012022-03-310001323468us-gaap:FutureMemberus-gaap:FairValueHedgingMemberus-gaap:CostOfSalesMember2023-01-012023-03-310001323468us-gaap:FutureMemberus-gaap:FairValueHedgingMemberus-gaap:CostOfSalesMember2022-01-012022-03-3100013234682022-03-3100013234682021-12-310001323468glp:RetailGasolineStationsMember2023-03-310001323468glp:RetailGasolineStationsMember2022-12-310001323468us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001323468us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001323468us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001323468us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001323468us-gaap:MaterialReconcilingItemsMember2023-03-310001323468glp:WholesaleSegmentMember2023-03-310001323468glp:GasolineDistributionAndStationOperationsSegmentMember2023-03-310001323468us-gaap:MaterialReconcilingItemsMember2022-12-310001323468glp:WholesaleSegmentMember2022-12-310001323468glp:GasolineDistributionAndStationOperationsSegmentMember2022-12-310001323468glp:TerminalsMember2023-01-012023-03-310001323468glp:RetailGasolineStationsMember2023-01-012023-03-310001323468glp:TerminalsMember2023-03-310001323468glp:RetailGasolineStationsMember2023-03-310001323468glp:TerminalsMember2022-12-310001323468glp:RetailGasolineStationsMember2022-12-310001323468us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001323468us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001323468glp:LimitedPartnershipUnitsPreferredSeriesAndBMember2023-01-012023-03-310001323468us-gaap:IntersegmentEliminationMemberglp:GasolineDistributionAndStationOperationsSegmentMember2023-01-012023-03-310001323468us-gaap:IntersegmentEliminationMemberglp:GasolineDistributionAndStationOperationsSegmentMember2022-01-012022-03-310001323468glp:SlifkaFamilyMember2015-01-012015-12-3100013234682023-02-020001323468glp:RevereMaOwnerLlcMember2022-06-282022-06-280001323468glp:RevereMaOwnerLlcMemberglp:SlifkaFamilyMember2015-01-012015-12-310001323468glp:LimitedPartnershipUnitsPreferredSeriesMember2023-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMember2023-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesMember2023-01-012023-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMember2023-01-012023-03-310001323468us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-03-310001323468us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-03-310001323468glp:TidewaterMember2022-09-202022-09-200001323468glp:StationOperationsMemberglp:GasolineDistributionAndStationOperationsSegmentMember2023-01-012023-03-310001323468glp:GasolineMemberglp:GasolineDistributionAndStationOperationsSegmentMember2023-01-012023-03-310001323468glp:GasolineAndGasolineBlendstockMemberglp:WholesaleSegmentMember2023-01-012023-03-310001323468glp:DistillatesResidualOilAndCrudeOilMemberglp:WholesaleSegmentMember2023-01-012023-03-310001323468glp:WholesaleSegmentMember2023-01-012023-03-310001323468glp:GasolineDistributionAndStationOperationsSegmentMember2023-01-012023-03-310001323468glp:CommercialSegmentMember2023-01-012023-03-310001323468glp:StationOperationsMemberglp:GasolineDistributionAndStationOperationsSegmentMember2022-01-012022-03-310001323468glp:GasolineMemberglp:GasolineDistributionAndStationOperationsSegmentMember2022-01-012022-03-310001323468glp:GasolineAndGasolineBlendstockMemberglp:WholesaleSegmentMember2022-01-012022-03-310001323468glp:DistillatesResidualOilAndCrudeOilMemberglp:WholesaleSegmentMember2022-01-012022-03-310001323468glp:WholesaleSegmentMember2022-01-012022-03-310001323468glp:GasolineDistributionAndStationOperationsSegmentMember2022-01-012022-03-310001323468glp:CommercialSegmentMember2022-01-012022-03-310001323468glp:WorkingCapitalFacilityMember2023-02-0200013234682023-02-022023-02-020001323468glp:CreditAgreementMember2023-01-012023-03-310001323468srt:MinimumMemberglp:LimitedPartnershipUnitsPreferredSeriesMember2023-01-012023-03-310001323468srt:MinimumMemberglp:LimitedPartnershipUnitsPreferredSeriesBMember2023-01-012023-03-310001323468srt:MaximumMemberglp:LimitedPartnershipUnitsPreferredSeriesMember2023-01-012023-03-310001323468srt:MaximumMemberglp:LimitedPartnershipUnitsPreferredSeriesBMember2023-01-012023-03-3100013234682023-03-3100013234682022-12-310001323468us-gaap:MaterialReconcilingItemsMember2023-01-012023-03-310001323468us-gaap:MaterialReconcilingItemsMember2022-01-012022-03-310001323468us-gaap:ExchangeTradedOptionsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001323468us-gaap:ExchangeTradedOptionsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001323468us-gaap:ExchangeTradedOptionsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001323468us-gaap:ExchangeTradedOptionsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001323468glp:ThirdTargetDistributionMembersrt:MinimumMember2023-01-012023-03-310001323468glp:ThirdTargetDistributionMembersrt:MaximumMember2023-01-012023-03-310001323468glp:SecondTargetDistributionMembersrt:MinimumMember2023-01-012023-03-310001323468glp:SecondTargetDistributionMembersrt:MaximumMember2023-01-012023-03-310001323468glp:FirstTargetDistributionMembersrt:MaximumMember2023-01-012023-03-310001323468glp:FinalTargetDistributionMembersrt:MinimumMember2023-01-012023-03-310001323468glp:ThirdTargetDistributionMemberglp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2023-01-012023-03-310001323468glp:SecondTargetDistributionMemberglp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2023-01-012023-03-310001323468glp:FirstTargetDistributionMemberglp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2023-01-012023-03-310001323468glp:FinalTargetDistributionMemberglp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2023-01-012023-03-310001323468glp:ThirdTargetDistributionMemberus-gaap:GeneralPartnerMember2023-01-012023-03-310001323468glp:SecondTargetDistributionMemberus-gaap:GeneralPartnerMember2023-01-012023-03-310001323468glp:FirstTargetDistributionMemberus-gaap:GeneralPartnerMember2023-01-012023-03-310001323468glp:FinalTargetDistributionMemberus-gaap:GeneralPartnerMember2023-01-012023-03-310001323468glp:LimitedPartnershipUnitsCommonMember2023-01-012023-03-310001323468srt:MinimumMember2023-01-012023-03-310001323468srt:MaximumMember2023-01-012023-03-310001323468us-gaap:ExchangeTradedOptionsMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001323468us-gaap:ExchangeTradedOptionsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001323468glp:LimitedPartnershipUnitsPreferredMemberus-gaap:LimitedPartnerMember2023-01-012023-03-310001323468glp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2023-01-012023-03-310001323468us-gaap:LimitedPartnerMember2023-01-012023-03-310001323468us-gaap:GeneralPartnerMember2023-01-012023-03-310001323468glp:IncentiveDistributionRightsMember2023-01-012023-03-310001323468glp:LimitedPartnershipUnitsPreferredMemberus-gaap:LimitedPartnerMember2022-01-012022-03-310001323468glp:LimitedPartnershipUnitsCommonMemberus-gaap:LimitedPartnerMember2022-01-012022-03-310001323468us-gaap:LimitedPartnerMember2022-01-012022-03-310001323468us-gaap:GeneralPartnerMember2022-01-012022-03-310001323468glp:IncentiveDistributionRightsMember2022-01-012022-03-3100013234682022-01-012022-03-310001323468glp:SlifkaFamilyMember2023-01-012023-03-310001323468glp:RevereMaOwnerLlcMemberglp:AccruedExpensesAndOtherCurrentLiabilitiesMember2023-03-310001323468glp:TidewaterMember2022-09-200001323468glp:LimitedPartnershipUnitsPreferredSeriesMember2023-01-012023-03-310001323468glp:LimitedPartnershipUnitsPreferredSeriesBMember2023-01-012023-03-310001323468glp:LimitedPartnershipUnitsCommonMember2023-01-012023-03-3100013234682023-05-0300013234682023-01-012023-03-31utr:MBblsxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:pureglp:itemglp:storeglp:siteglp:customerutr:gal

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-32593

Global Partners LP

(Exact name of registrant as specified in its charter)

Delaware		74-3140887
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

P.O. Box 9161
800 South Street
Waltham, Massachusetts 02454-9161
(Address of principal executive offices, including zip code)

(781) 894-8800
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units representing limited partner interests	GLP	New York Stock Exchange

9.75% Series A Fixed-to-Floating Rate Cumulative Redeemable	GLP pr A	New York Stock Exchange
Perpetual Preferred Units representing limited partner interests

9.50% Series B Fixed Rate Cumulative Redeemable	GLP pr B	New York Stock Exchange
Perpetual Preferred Units representing limited partner interests

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒			Accelerated filer ☐
Non-accelerated filer ☐			Smaller reporting company ☐
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The issuer had 33,995,563 common units outstanding as of May 3, 2023.

Table of Contents

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)		3

Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022		3

Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022		4

Consolidated Statements of Comprehensive Income for the three months ended March 31, 2023 and 2022		5

Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022		6

Consolidated Statements of Partners’ Equity for the three months ended March 31, 2023 and 2022		7

Notes to Consolidated Financial Statements		8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		30

Item 3. Quantitative and Qualitative Disclosures About Market Risk		51

Item 4. Controls and Procedures		53

PART II. OTHER INFORMATION		54

Item 1. Legal Proceedings		54

Item 1A. Risk Factors		54

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		54

Item 6. Exhibits		54

SIGNATURES		56

Table of Contents

Item 1.Financial Statements

GLOBAL PARTNERS LP

CONSOLIDATED BALANCE SHEETS

(In thousands, except unit data)

(Unaudited)


	March 31,		December 31,
	2023		2022
Assets
Current assets:
Cash and cash equivalents	$	7,070	$	4,040
Accounts receivable, net		438,220		478,837
Accounts receivable-affiliates		4,035		2,380
Inventories		385,303		566,731
Brokerage margin deposits		19,050		23,431
Derivative assets		18,554		19,848
Prepaid expenses and other current assets		78,616		73,992
Total current assets		950,848		1,169,259
Property and equipment, net		1,204,361		1,218,171
Right of use assets, net		284,377		288,142
Intangible assets, net		24,770		26,854
Goodwill		427,780		427,780
Other assets		32,610		30,679
Total assets	$	2,924,746	$	3,160,885
Liabilities and partners’ equity
Current liabilities:
Accounts payable	$	285,217	$	530,940
Working capital revolving credit facility-current portion		247,300		153,400
Lease liability-current portion		63,521		64,919
Environmental liabilities-current portion		4,941		4,606
Trustee taxes payable		48,227		42,972
Accrued expenses and other current liabilities		115,448		156,964
Derivative liabilities		8,384		17,680
Total current liabilities		773,038		971,481
Working capital revolving credit facility-less current portion		—		—
Revolving credit facility		99,000		99,000
Senior notes		741,441		741,015
Long-term lease liability-less current portion		228,965		231,427
Environmental liabilities-less current portion		63,114		64,029
Financing obligations		141,023		141,784
Deferred tax liabilities		65,909		66,400
Other long-term liabilities		52,968		57,305
Total liabilities		2,165,458		2,372,441
Partners’ equity
Series A preferred limited partners (2,760,000 units issued and outstanding at March 31, 2023 and December 31, 2022)		67,226		67,226
Series B preferred limited partners (3,000,000 units issued and outstanding at March 31, 2023 and December 31, 2022)		72,305		72,305
Common limited partners (33,995,563 units issued and 33,985,772 outstanding at March 31, 2023 and 33,995,563 units issued and 33,937,519 outstanding at December 31, 2022)		619,518		648,956
General partner interest (0.67% interest with 230,303 equivalent units outstanding at March 31, 2023 and December 31, 2022)		236		406
Accumulated other comprehensive loss		3		(449)
Total partners’ equity		759,288		788,444
Total liabilities and partners’ equity	$	2,924,746	$	3,160,885

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

GLOBAL PARTNERS LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per unit data)

(Unaudited)


	Three Months Ended
	March 31,
	2023		2022
Sales	$	4,030,327	$	4,500,538
Cost of sales		3,808,263		4,294,300
Gross profit		222,064		206,238
Costs and operating expenses:
Selling, general and administrative expenses		62,256		56,281
Operating expenses		108,353		99,233
Amortization expense		2,084		2,499
Net gain on sale and disposition of assets		(2,128)		(4,911)
Total costs and operating expenses		170,565		153,102
Operating income		51,499		53,136
Interest expense		(22,068)		(21,474)
Income before income tax expense		29,431		31,662
Income tax expense		(400)		(1,177)
Net income		29,031		30,485
Less: General partner’s interest in net income, including incentive distribution rights		1,782		1,177
Less: Preferred limited partner interest in net income		3,463		3,463
Net income attributable to common limited partners	$	23,786	$	25,845
Basic net income per common limited partner unit	$	0.70	$	0.76
Diluted net income per common limited partner unit	$	0.70	$	0.76
Basic weighted average common limited partner units outstanding		33,986		33,953
Diluted weighted average common limited partner units outstanding		34,001		34,085

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

GLOBAL PARTNERS LP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)


	Three Months Ended
	March 31,
	2023		2022
Net income	$	29,031	$	30,485
Other comprehensive income (loss):
Change in pension liability		452		(1,507)
Total other comprehensive income (loss)		452		(1,507)
Comprehensive income	$	29,483	$	28,978

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

GLOBAL PARTNERS LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Three Months Ended
	March 31,
	2023		2022
Cash flows from operating activities
Net income	$	29,031	$	30,485
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		26,648		26,701
Amortization of deferred financing fees		1,347		1,390
Bad debt expense		38		51
Unit-based compensation expense		1,094		204
Net gain loss on sale and disposition of assets		(2,128)		(4,911)
Changes in operating assets and liabilities:
Accounts receivable		40,579		(114,955)
Accounts receivable-affiliate		(1,655)		(1,099)
Inventories		180,867		2,229
Broker margin deposits		4,381		(19,905)
Prepaid expenses, all other current assets and other assets		(3,580)		10,658
Accounts payable		(245,723)		112,979
Trustee taxes payable		5,255		(342)
Change in derivatives		(8,002)		14,178
Accrued expenses, all other current liabilities and other long-term liabilities		(47,477)		(35,035)
Net cash (used in) provided by operating activities		(19,325)		22,628
Cash flows from investing activities
Acquisitions		—		(214,894)
Capital expenditures		(15,180)		(17,093)
Seller note issuances		(3,880)		—
Proceeds from sale of property and equipment, net		6,991		25,187
Net cash used in investing activities		(12,069)		(206,800)
Cash flows from financing activities
Net borrowings from working capital revolving credit facility		93,900		23,900
Net borrowings from revolving credit facility		—		184,600
LTIP units withheld for tax obligations		(469)		(6)
Distribution equivalent rights		(149)		—
Distributions to limited partners and general partner		(58,858)		(24,337)
Net cash provided by financing activities		34,424		184,157
Cash and cash equivalents
Increase (decrease) increase in cash and cash equivalents		3,030		(15)
Cash and cash equivalents at beginning of period		4,040		10,849
Cash and cash equivalents at end of period	$	7,070	$	10,834
Supplemental information
Cash paid during the period for interest	$	29,259	$	29,524

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

GLOBAL PARTNERS LP

CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY

(In thousands)

(Unaudited)


	Series A		Series B						Accumulated
	Preferred		Preferred		Common		General		Other		Total
	Limited		Limited		Limited		Partner		Comprehensive		Partners’
Three months ended March 31, 2023	Partners		Partners		Partners		Interest		Income (Loss)		Equity
Balance at December 31, 2022	$	67,226	$	72,305	$	648,956	$	406	$	(449)	$	788,444
Net income		1,682		1,781		23,786		1,782		—		29,031
Distributions to limited partners and general partner		(1,682)		(1,781)		(53,458)		(1,952)		—		(58,873)
Unit-based compensation		—		—		1,094		—		—		1,094
Other comprehensive income		—		—		—		—		452		452
LTIP units withheld for tax obligations		—		—		(469)		—		—		(469)
Distribution equivalent rights		—		—		(406)		—		—		(406)
Dividends on repurchased units		—		—		15		—		—		15
Balance at March 31, 2023	$	67,226	$	72,305	$	619,518	$	236	$	3	$	759,288


	Series A		Series B						Accumulated
	Preferred		Preferred		Common		General		Other		Total
	Limited		Limited		Limited		Partner		Comprehensive		Partners’
Three months ended March 31, 2022	Partners		Partners		Partners		Interest		Income (Loss)		Equity
Balance at December 31, 2021	$	67,226	$	72,305	$	392,086	$	(1,948)	$	(1,902)	$	527,767
Net income		1,682		1,781		25,845		1,177		—		30,485
Distributions to limited partners and general partner		(1,682)		(1,781)		(19,887)		(1,012)		—		(24,362)
Unit-based compensation		—		—		204		—		—		204
Other comprehensive loss		—		—		—		—		(1,507)		(1,507)
LTIP units withheld for tax obligations		—		—		(6)		—		—		(6)
Dividends on repurchased units		—		—		25		—		—		25
Balance at March 31, 2022	$	67,226	$	72,305	$	398,267	$	(1,783)	$	(3,409)	$	532,606

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Organization and Basis of Presentation

Organization

Global Partners LP (the “Partnership”) is a master limited partnership formed in March 2005. The Partnership owns, controls or has access to one of the largest terminal networks of refined petroleum products and renewable fuels in Massachusetts, Maine, Connecticut, Vermont, New Hampshire, Rhode Island, New York, New Jersey and Pennsylvania (collectively, the “Northeast”). The Partnership is one of the region’s largest independent owners, suppliers and operators of gasoline stations and convenience stores. As of March 31, 2023, the Partnership had a portfolio of 1,656 owned, leased and/or supplied gasoline stations, including 343 directly operated convenience stores, primarily in the Northeast. The Partnership is also one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in the New England states and New York. The Partnership engages in the purchasing, selling, gathering, blending, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks (such as ethanol), distillates (such as home heating oil, diesel and kerosene), residual oil, renewable fuels, crude oil and propane and in the transportation of petroleum products and renewable fuels by rail from the mid-continent region of the United States and Canada.

Global GP LLC, the Partnership’s general partner (the “General Partner”), manages the Partnership’s operations and activities and employs its officers and substantially all of its personnel, except for most of its gasoline station and convenience store employees who are employed by Global Montello Group Corp. (“GMG”), a wholly owned subsidiary of the Partnership.

The General Partner, which holds a 0.67% general partner interest in the Partnership, is owned by affiliates of the Slifka family. As of March 31, 2023, affiliates of the General Partner, including its directors and executive officers and their affiliates, owned 6,322,050 common units, representing a 18.6% limited partner interest.

2023 Events

Acquisition of Houston Sites—On March 28, 2023, the Partnership and ExxonMobil signed an agreement to acquire 64 Houston-area convenience and fueling facilities from the Landmark Group. The transaction is subject to the satisfaction of closing conditions and is expected to be completed in the second quarter of 2023. Upon closing of the transaction, the assets will be purchased by Spring Partners Retail LLC, a joint venture between the Partnership and ExxonMobil, and the Partnership will act as the management company and operator.

Amendments to the Credit Agreement—On February 2, 2023, the Partnership and certain of its subsidiaries entered into the eighth amendment to the third amended and restated credit agreement which, among other things, permits the Partnership to request up to two reallocations per calendar year of the lending commitments among its facilities under the credit agreement. On May 2, 2023, the Partnership and certain of its subsidiaries entered into the ninth amendment to third amended and restated credit agreement and joinder which, among other things, increases the applicable revolver rate by 25 basis points on borrowings under the revolving credit facility and extends the maturity date from May 6, 2024 to May 2, 2026. See Note 7 for additional information on the credit agreement.

Basis of Presentation

The accompanying consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022 reflect the accounts of the Partnership. Upon consolidation, all intercompany balances and transactions have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and reflect all adjustments (consisting of normal recurring

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition and operating results for the interim periods. The interim financial information, which has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), should be read in conjunction with the consolidated financial statements for the year ended December 31, 2022 and notes thereto contained in the Partnership’s Annual Report on Form 10-K. The significant accounting policies described in Note 2, “Summary of Significant Accounting Policies,” of such Annual Report on Form 10-K are the same used in preparing the accompanying consolidated financial statements.

The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results of operations that will be realized for the entire year ending December 31, 2023. The consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022.

Concentration of Risk

Due to the nature of the Partnership’s businesses and its reliance, in part, on consumer travel and spending patterns, the Partnership may experience more demand for gasoline during the late spring and summer months than during the fall and winter months. Travel and recreational activities are typically higher in these months in the geographic areas in which the Partnership operates, increasing the demand for gasoline. Therefore, the Partnership’s volumes in gasoline are typically higher in the second and third quarters of the calendar year. As demand for some of the Partnership’s refined petroleum products, specifically home heating oil and residual oil for space heating purposes, is generally greater during the winter months, heating oil and residual oil volumes are generally higher during the first and fourth quarters of the calendar year. These factors may result in fluctuations in the Partnership’s quarterly operating results.

The following table presents the Partnership’s product sales and other revenues as a percentage of the consolidated sales for the periods presented:


	Three Months Ended
	March 31,
	2023		2022
Gasoline sales: gasoline and gasoline blendstocks (such as ethanol)	59	%	60	%
Distillates (home heating oil, diesel and kerosene), residual oil and crude oil sales	38	%	37	%
Convenience store and prepared food sales, rental income and sundries	3	%	3	%
Total	100	%	100	%

The following table presents the Partnership’s product margin by segment as a percentage of the consolidated product margin for the periods presented:


	Three Months Ended
	March 31,
	2023		2022
Wholesale segment	22	%	21	%
Gasoline Distribution and Station Operations segment	75	%	76	%
Commercial segment	3	%	3	%
Total	100	%	100	%

See Note 13, “Segment Reporting,” for additional information on the Partnership’s operating segments.

None of the Partnership’s customers accounted for greater than 10% of total sales for the three months ended March 31, 2023 and 2022.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2. Business Combination

Acquisition of Tidewater Convenience, Inc.—On September 20, 2022, the Partnership acquired substantially all of the assets of Tidewater Convenience, Inc. (“Tidewater”) in a cash transaction. The acquisition includes 14 company-operated Tidewater convenience stores and 1 fuel site, all located in Virginia. The purchase price was approximately $40.3 million, including inventory. The acquisition was funded with borrowings under the Partnership’s revolving credit facility.

The preliminary fair values of the assets acquired and liabilities assumed as of September 20, 2022, the acquisition date, are set forth in the table below. The excess of the purchase price over the aggregate acquisition date value of identifiable net assets acquired was recorded as goodwill and assigned to the Gasoline Distribution and Station Operations (“GDSO”) segment. Substantially all of the goodwill is expected to be deductible for tax purposes. These preliminary acquisition date values were generally determined through established and generally accepted valuation techniques and are subject to change during the measurement period as valuations are finalized. As a result, the acquisition accounting is not complete, and additional information that existed at the acquisition date may become known to the Partnership during the remainder of the measurement period. The Partnership is still in the process of valuing the assets acquired of Tidewater, including inventory, property and equipment and right of use assets, and liabilities.

The following table presents the preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands):


Assets purchased:
Inventory	$	1,004
Property and equipment		28,653
Right of use assets		638
Total identifiable assets purchased		30,295
Liabilities assumed:
Accrued expenses and other current liabilities		(908)
Environmental liabilities		(2,154)
Lease liability		(508)
Other non-current liabilities		(3,056)
Total liabilities assumed		(6,626)
Net identifiable assets acquired		23,669
Goodwill		16,651
Net assets acquired	$	40,320

The fair values of the remaining assets and liabilities noted above approximate their carrying values at September 20, 2022, the acquisition date.

There have been no changes to the preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed during the three months ended March 31, 2023.

Supplemental Pro Forma Information—Revenues and net income not included in the Partnership’s consolidated operating results for Tidewater from January 1, 2022 through the acquisition date were immaterial.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 3. Revenue from Contract Customers

Disaggregation of Revenue

The following table provides the disaggregation of revenue from contracts with customers and other sales by segment for the periods presented (in thousands):


	Three Months Ended March 31, 2023
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Petroleum and related product sales	$	857,757	$	1,185,866	$	171,807	$	2,215,430
Station operations		—		107,279		—		107,279
Total revenue from contracts with customers		857,757		1,293,145		171,807		2,322,709
Other sales:
Revenue originating as physical forward contracts and exchanges		1,601,151		—		86,065		1,687,216
Revenue from leases		515		19,887		—		20,402
Total other sales		1,601,666		19,887		86,065		1,707,618
Total sales	$	2,459,423	$	1,313,032	$	257,872	$	4,030,327


	Three Months Ended March 31, 2022
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Petroleum and related product sales	$	1,011,786	$	1,276,961	$	222,573	$	2,511,320
Station operations		—		96,566		—		96,566
Total revenue from contracts with customers		1,011,786		1,373,527		222,573		2,607,886
Other sales:
Revenue originating as physical forward contracts and exchanges		1,765,004		—		107,409		1,872,413
Revenue from leases		913		19,326		—		20,239
Total other sales		1,765,917		19,326		107,409		1,892,652
Total sales	$	2,777,703	$	1,392,853	$	329,982	$	4,500,538

Contract Balances

A receivable, which is included in accounts receivable, net in the accompanying consolidated balance sheets, is recognized in the period the Partnership provides services when its right to consideration is unconditional. In contrast, a contract asset will be recognized when the Partnership has fulfilled a contract obligation but must perform other obligations before being entitled to payment.

The nature of the receivables related to revenue from contracts with customers and other revenue, as well as contract assets, are the same, given they are related to the same customers and have the same risk profile and securitization. Payment terms on invoiced amounts are typically 2 to 30 days.

A contract liability is recognized when the Partnership has an obligation to transfer goods or services to a customer for which the Partnership has received consideration (or the amount is due) from the customer. The Partnership had no significant contract liabilities at both March 31, 2023 and December 31, 2022.

Note 4. Inventories

The Partnership hedges substantially all of its petroleum and ethanol inventory using a variety of instruments, primarily exchange-traded futures contracts. These futures contracts are entered into when inventory is purchased and are either designated as fair value hedges against the inventory on a specific barrel basis for inventories qualifying for

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

fair value hedge accounting or not designated and maintained as economic hedges against certain inventory of the Partnership on a specific barrel basis. Changes in fair value of these futures contracts, as well as the offsetting change in fair value on the hedged inventory, are recognized in earnings as an increase or decrease in cost of sales. All hedged inventory designated in a fair value hedge relationship is valued using the lower of cost, as determined by specific identification, or net realizable value, as determined at the product level. All petroleum and ethanol inventory not designated in a fair value hedging relationship is carried at the lower of historical cost, on a first-in, first-out basis, or net realizable value. Renewable Identification Numbers (“RINs”) inventory is carried at the lower of historical cost, on a first-in, first-out basis, or net realizable value. Convenience store inventory is carried at the lower of historical cost, based on a weighted average cost method, or net realizable value.

Inventories consisted of the following (in thousands):


	March 31,		December 31,
	2023		2022
Distillates: home heating oil, diesel and kerosene	$	100,813	$	205,076
Gasoline		147,256		160,386
Gasoline blendstocks		42,266		51,900
Residual oil		61,916		112,457
Renewable identification numbers (RINs)		2,488		5,098
Crude oil		1,459		2,248
Convenience store inventory		29,105		29,566
Total	$	385,303	$	566,731

In addition to its own inventory, the Partnership has exchange agreements for petroleum products and ethanol with unrelated third-party suppliers, whereby it may draw inventory from these other suppliers and suppliers may draw inventory from the Partnership. Positive exchange balances are accounted for as accounts receivable and amounted to $9.2 million and $2.3 million at March 31, 2023 and December 31, 2022, respectively. Negative exchange balances are accounted for as accounts payable and amounted to $22.8 million and $24.3 million at March 31, 2023 and December 31, 2022, respectively. Exchange transactions are valued using current carrying costs.

Note 5. Goodwill

The Partnership’s goodwill, all of which has been allocated to the GDSO segment, was $427.8 million at both March 31, 2023 and December 31, 2022. There were no changes to goodwill during the three months ended March 31, 2023.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 6. Property and Equipment

Property and equipment consisted of the following (in thousands):


	March 31,		December 31,
	2023		2022
Buildings and improvements	$	1,464,390	$	1,441,893
Land		521,520		523,631
Fixtures and equipment		42,879		42,136
Idle plant assets		30,500		30,500
Construction in process		43,395		56,047
Capitalized internal use software		33,808		33,687
Total property and equipment		2,136,492		2,127,894
Less accumulated depreciation		932,131		909,723
Total	$	1,204,361	$	1,218,171

Property and equipment includes retail gasoline station assets held for sale of $1.4 million and $5.3 million at March 31, 2023 and December 31, 2022, respectively.

At March 31, 2023, the Partnership had a $37.6 million remaining net book value of long-lived assets at its West Coast facility, including $30.5 million related to the Partnership’s ethanol plant acquired in 2013. The Partnership would need to take certain measures to prepare the facility for ethanol production in order to place the plant into service and commence depreciation. Therefore, the $30.5 million related to the ethanol plant was included in property and equipment and classified as idle plant assets at both March 31, 2023 and December 31, 2022.

If the Partnership is unable to generate cash flows to support the recoverability of the plant and facility assets, this may become an indicator of potential impairment of the West Coast facility. The Partnership believes these assets are recoverable but continues to monitor the market for ethanol, the continued business development of this facility for ethanol or other product transloading, and the related impact this may have on the facility’s operating cash flows and whether this would constitute an impairment indicator.

Note 7. Debt and Financing Obligations

Credit Agreement

Certain subsidiaries of the Partnership, as borrowers, and the Partnership and certain of its subsidiaries, as guarantors, have a $1.55 billion senior secured credit facility (the “Credit Agreement”). The Credit Agreement matures on May 6, 2024.

On February 2, 2023, the Partnership and certain of its subsidiaries entered into the eighth amendment to the third amended and restated credit agreement (the “Eighth Amendment”) which, among other things, permits the Partnership to request up to two reallocations per calendar year of the lending commitments among its facilities under the Credit Agreement (see “Eighth Amendment to the Credit Agreement” below). On May 2, 2023, the Partnership and certain of its subsidiaries entered into the ninth amendment to third amended and restated credit agreement and joinder which, among other things, increases the applicable revolver rate by 25 basis points on borrowings under the revolving credit facility and extends the maturity date from May 6, 2024 to May 2, 2026. All other material terms of the Credit Agreement remain substantially the same as disclosed in Note 9 of Notes to Consolidated Financial Statements in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of March 31, 2023, there were are two facilities under the Credit Agreement:

●

a working capital revolving credit facility to be used for working capital purposes and letters of credit in the principal amount equal to the lesser of the Partnership’s borrowing base and $950.0 million; and

●

a $600.0 million revolving credit facility to be used for general corporate purposes.

Availability under the working capital revolving credit facility is subject to a borrowing base which is redetermined from time to time and based on specific advance rates on eligible current assets. Availability under the borrowing base may be affected by events beyond the Partnership’s control, such as changes in petroleum product prices, collection cycles, counterparty performance, advance rates and limits and general economic conditions.

The average interest rates for the Credit Agreement were 6.5% and 2.3% for the three months ended March 31, 2023 and 2022, respectively.

The Partnership classifies a portion of its working capital revolving credit facility as a current liability and a portion as a long-term liability. The portion classified as a long-term liability represents the amounts expected to be outstanding throughout the next twelve months based on an analysis of historical daily borrowings under the working capital revolving credit facility, the seasonality of borrowings, forecasted future working capital requirements and forward product curves, and because the Partnership has a multi-year, long-term commitment from its bank group. Accordingly, at March 31, 2023 the Partnership estimated working capital revolving credit facility borrowings will equal or exceed $0 over the next twelve months.

The table below presents the total borrowings and availability under the Credit Agreement (in thousands):


	March 31,		December 31,
	2023		2022
Total available commitments	$	1,550,000	$	1,550,000

Working capital revolving credit facility-current portion		247,300		153,400
Working capital revolving credit facility-less current portion		—		—
Revolving credit facility		99,000		99,000
Total borrowings outstanding		346,300		252,400

Less outstanding letters of credit		43,800		181,400

Total remaining availability for borrowings and letters of credit (1)	$	1,159,900	$	1,116,200

(1)	Subject to borrowing base limitations.

The Credit Agreement imposes financial covenants that require the Partnership to maintain certain minimum working capital amounts, a minimum combined interest coverage ratio, a maximum senior secured leverage ratio and a maximum total leverage ratio. The Partnership was in compliance with the foregoing covenants at March 31, 2023.

Please read Note 9 of Notes to Consolidated Financial Statements in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the Credit Agreement.

Deferred Financing Fees

The Partnership incurs bank fees related to its Credit Agreement and other financing arrangements. These deferred financing fees are capitalized and amortized over the life of the Credit Agreement or other financing

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

arrangements. The Partnership had unamortized deferred financing fees of $13.0 million and $14.4 million at March 31, 2023 and December 31, 2022, respectively.

Unamortized fees related to the Credit Agreement are included in other current assets and other long-term assets and amounted to $3.9 million and $4.8 million at March 31, 2023 and December 31, 2022, respectively. Unamortized fees related to the senior notes are presented as a direct deduction from the carrying amount of that debt liability and amounted to $8.6 million and $9.0 million at March 31, 2023 and December 31, 2022, respectively. Unamortized fees related to the Partnership’s sale-lease transactions are presented as a direct deduction from the carrying amount of the financing obligation and amounted to $0.5 million and $0.6 million at March 31, 2023 and December 31, 2022, respectively.

Amortization expense of approximately $1.3 million and $1.4 million for the three months ended March 31, 2023 and 2022, respectively, is included in interest expense in the accompanying consolidated statements of operations.

Supplemental cash flow information

The following table presents supplemental cash flow information related to the Credit Agreement for the periods presented (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Borrowings from working capital revolving credit facility	$	751,400	$	669,100
Payments on working capital revolving credit facility		(657,500)		(645,200)
Net borrowings from working capital revolving credit facility	$	93,900	$	23,900
Borrowings from revolving credit facility	$	—	$	384,000
Payments on revolving credit facility		—		(199,400)
Net borrowings from revolving credit facility	$	—	$	184,600

Eighth Amendment to the Credit Agreement

On February 2, 2023, the Partnership and certain of its subsidiaries entered into the Eighth Amendment which, among other things, permits the Partnership to request up to two reallocations per calendar year (each, a “Reallocation”) of a portion of the working capital revolving credit facility, the working capital interim facility and/or the revolving credit facility to the working capital revolving credit facility, the working capital interim facility and/or the revolving credit facility, as applicable. Each Reallocation shall be in a minimum amount of $50.0 million and, after giving effect to any such Reallocation, the amount of the aggregate commitments shall remain the same.

Pursuant to the terms of the Credit Agreement, the Partnership requested, and the lenders under the Credit Agreement agreed to, a Reallocation of $150.0 million of the working capital revolving credit facility to the revolving credit facility. After giving effect to such Reallocation, the working capital revolving credit facility is $950.0 million, and the revolving credit facility is $600.0 million.

Senior Notes

The Partnership had 7.00% senior notes due 2027 and 6.875% senior notes due 2029 outstanding at March 31, 2023 and December 31, 2022. Please read Note 9 of Notes to Consolidated Financial Statements in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on these senior notes.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Financing Obligations

The Partnership had financing obligations outstanding at March 31, 2023 and December 31, 2022 associated with historical sale-leaseback transactions that did not meet the criteria for sale accounting. Please read Note 9 of Notes to Consolidated Financial Statements in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on these financial obligations.

Note 8. Derivative Financial Instruments

The Partnership principally uses derivative instruments, which include regulated exchange-traded futures and options contracts (collectively, “exchange-traded derivatives”) and physical and financial forwards and over-the-counter (“OTC”) swaps (collectively, “OTC derivatives”), to reduce its exposure to unfavorable changes in commodity market prices. The Partnership uses these exchange-traded and OTC derivatives to hedge commodity price risk associated with its inventory and undelivered forward commodity purchases and sales (“physical forward contracts”). The Partnership accounts for derivative transactions in accordance with ASC Topic 815, “Derivatives and Hedging,” and recognizes derivatives instruments as either assets or liabilities in the consolidated balance sheet and measures those instruments at fair value. The changes in fair value of the derivative transactions are presented currently in earnings, unless specific hedge accounting criteria are met.

The following table summarizes the notional values related to the Partnership’s derivative instruments outstanding at March 31, 2023:


	Units (1)		Unit of Measure
Exchange-Traded Derivatives
Long		39,447	Thousands of barrels
Short		(41,073)	Thousands of barrels

OTC Derivatives (Petroleum/Ethanol)
Long		5,339	Thousands of barrels
Short		(3,012)	Thousands of barrels

(1)

Number of open positions and gross notional values do not measure the Partnership’s risk of loss, quantify risk or represent assets or liabilities of the Partnership, but rather indicate the relative size of the derivative instruments and are used in the calculation of the amounts to be exchanged between counterparties upon settlements.

Derivatives Accounted for as Hedges

Fair Value Hedges

The Partnership’s fair value hedges include exchange-traded futures contracts and OTC derivative contracts that are hedges against inventory with specific futures contracts matched to specific barrels. The change in fair value of these futures contracts and the change in fair value of the underlying inventory generally provide an offset to each other in the consolidated statements of operations.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the gains and losses from the Partnership’s derivative instruments involved in fair value hedging relationships recognized in the consolidated statements of operations for the periods presented (in thousands):


	Statement of Gain (Loss)	Three Months Ended
	Recognized in Income on	March 31,
	Derivatives	2023		2022
Derivatives in fair value hedging relationship
Exchange-traded futures contracts and OTC derivative contracts for petroleum commodity products	Cost of sales	$	(514)	$	(10,804)
Hedged items in fair value hedge relationship
Physical inventory	Cost of sales	$	(4,819)	$	21,771

Derivatives Not Accounted for as Hedges

The Partnership utilizes petroleum and ethanol commodity contracts to hedge price and currency risk in certain commodity inventories and physical forward contracts.

The following table presents the gains and losses from the Partnership’s derivative instruments not involved in a hedging relationship recognized in the consolidated statements of operations for the periods presented (in thousands):


	Statement of Gain (Loss)	Three Months Ended
Derivatives not designated as	Recognized in	March 31,
hedging instruments	Income on Derivatives	2023		2022
Commodity contracts	Cost of sales	$	(2,241)	$	5,748

Commodity Contracts and Other Derivative Activity

The Partnership’s commodity contracts and other derivative activity include: (i) exchange-traded derivative contracts that are hedges against inventory and either do not qualify for hedge accounting or are not designated in a hedge accounting relationship, (ii) exchange-traded derivative contracts used to economically hedge physical forward contracts, (iii) financial forward and OTC swap agreements used to economically hedge physical forward contracts and (iv) the derivative instruments under the Partnership’s controlled trading program. The Partnership does not take the normal purchase and sale exemption available under ASC 815 for any of its physical forward contracts.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the fair value of each classification of the Partnership’s derivative instruments and its location in the consolidated balance sheets at March 31, 2023 and December 31, 2022 (in thousands):


		March 31, 2023
		Derivatives		Derivatives Not
		Designated as		Designated as
		Hedging		Hedging
	Balance Sheet Location	Instruments		Instruments		Total
Asset Derivatives:
Exchange-traded derivative contracts	Broker margin deposits	$	(514)	$	46,140	$	45,626
Forward derivative contracts (1)	Derivative assets		—		18,554		18,554
Total asset derivatives		$	(514)	$	64,694	$	64,180

Liability Derivatives:
Exchange-traded derivative contracts	Broker margin deposits	$	—	$	(38,969)	$	(38,969)
Forward derivative contracts (1)	Derivative liabilities		—		(8,384)		(8,384)
Total liability derivatives		$	—	$	(47,353)	$	(47,353)


		December 31, 2022
		Derivatives		Derivatives Not
		Designated as		Designated as
		Hedging		Hedging
	Balance Sheet Location	Instruments		Instruments		Total
Asset Derivatives:
Exchange-traded derivative contracts	Broker margin deposits	$	(11,517)	$	58,380	$	46,863
Forward derivative contracts (1)	Derivative assets		—		19,848		19,848
Total asset derivatives		$	(11,517)	$	78,228	$	66,711

Liability Derivatives:
Exchange-traded derivative contracts	Broker margin deposits	$	—	$	(51,974)	$	(51,974)
Forward derivative contracts (1)	Derivative liabilities		—		(17,680)		(17,680)
Total liability derivatives		$	—	$	(69,654)	$	(69,654)

(1)	Forward derivative contracts include the Partnership’s petroleum and ethanol physical and financial forwards and OTC swaps.

Credit Risk

The Partnership’s derivative financial instruments do not contain credit risk related to other contingent features that could cause accelerated payments when these financial instruments are in net liability positions.

The Partnership is exposed to credit loss in the event of nonperformance by counterparties to the Partnership’s exchange-traded and OTC derivative contracts, but the Partnership has no current reason to expect any material nonperformance by any of these counterparties. Exchange-traded derivative contracts, the primary derivative instrument utilized by the Partnership, are traded on regulated exchanges, greatly reducing potential credit risks. The Partnership utilizes major financial institutions as its clearing brokers for all New York Mercantile Exchange (“NYMEX”), Chicago Mercantile Exchange (“CME”) and Intercontinental Exchange (“ICE”) derivative transactions and the right of offset exists with these financial institutions under master netting agreements. Accordingly, the fair value of the Partnership’s exchange-traded derivative instruments is presented on a net basis in the consolidated balance sheets. Exposure on OTC derivatives is limited to the amount of the recorded fair value as of the balance sheet dates.

Please read Note 2 of Notes to Consolidated Financial Statements in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on derivative financial instruments.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 9. Fair Value Measurements

The following tables present, by level within the fair value hierarchy, the Partnership’s financial assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 (in thousands):


	Fair Value at March 31, 2023
					Cash Collateral
	Level 1		Level 2		Netting		Total
Assets:
Forward derivative contracts (1)	$	—	$	18,554	$	—	$	18,554
Exchange-traded/cleared derivative instruments (2)		6,657		—		12,393		19,050
Pension plans		18,668		—		—		18,668
Total assets	$	25,325	$	18,554	$	12,393	$	56,272

Liabilities:
Forward derivative contracts (1)	$	—	$	(8,384)	$	—	$	(8,384)


	Fair Value at December 31, 2022
					Cash Collateral
	Level 1		Level 2		Netting		Total
Assets:
Forward derivative contracts (1)	$	—	$	19,848	$	—	$	19,848
Exchange-traded/cleared derivative instruments (2)		(5,111)		—		28,542		23,431
Pension plans		18,257		—		—		18,257
Total assets	$	13,146	$	19,848	$	28,542	$	61,536

Liabilities:
Forward derivative contracts (1)	$	—	$	(17,680)	$	—	$	(17,680)

(1)	Forward derivative contracts include the Partnership’s petroleum and ethanol physical and financial forwards and OTC swaps.

(2)	Amount includes the effect of cash balances on deposit with clearing brokers.

This table excludes cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value. The carrying amounts of certain of the Partnership’s financial instruments, including cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate fair value due to their short maturities. The carrying value of the credit facility approximates fair value due to the variable rate nature of these financial instruments.

The carrying value of the inventory qualifying for fair value hedge accounting approximates fair value due to adjustments for changes in fair value of the hedged item. The fair values of the derivatives used by the Partnership are disclosed in Note 8.

The determination of the fair values above incorporates factors including not only the credit standing of the counterparties involved, but also the impact of the Partnership’s nonperformance risks on its liabilities.

The Partnership estimates the fair values of its senior notes using a combination of quoted market prices for similar financing arrangements and expected future payments discounted at risk-adjusted rates, which are considered

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Level 2 inputs. The fair values of the senior notes, estimated by observing market trading prices of the respective senior notes, were as follows (in thousands):


	March 31, 2023				December 31, 2022
	Face		Fair		Face		Fair
	Value		Value		Value		Value
7.00% senior notes due 2027	$	400,000	$	383,000	$	400,000	$	379,000
6.875% senior notes due 2029	$	350,000	$	320,250	$	350,000	$	315,875

Non-Recurring Fair Value Measures

Certain nonfinancial assets and liabilities are measured at fair value on a non-recurring basis and are subject to fair value adjustments in certain circumstances, such as acquired assets and liabilities, losses related to firm non-cancellable purchase commitments or long-lived assets subject to impairment. For assets and liabilities measured on a non-recurring basis during the period, accounting guidance requires quantitative disclosures about the fair value measurements separately for each major category. See Note 2 for acquired assets and liabilities measured on a non-recurring basis.

Note 10. Environmental Liabilities

The following table presents a summary roll forward of the Partnership’s environmental liabilities at March 31, 2023 (in thousands):


	Balance at						Other		Balance at
	December 31,		Payments		Dispositions		Adjustments		March 31,
Environmental Liability Related to:	2022		2023		2023		2023		2023
Retail gasoline stations	$	66,703	$	(578)	$	(85)	$	81	$	66,121
Terminals		1,932		(19)		—		21		1,934
Total environmental liabilities	$	68,635	$	(597)	$	(85)	$	102	$	68,055
Current portion	$	4,606							$	4,941
Long-term portion		64,029								63,114
Total environmental liabilities	$	68,635							$	68,055

The Partnership’s estimates used in these environmental liabilities are based on all known facts at the time and its assessment of the ultimate remedial action outcomes. Among the many uncertainties that impact the Partnership’s estimates are the necessary regulatory approvals for, and potential modification of, its remediation plans, the amount of data available upon initial assessment of the impact of soil or water contamination, changes in costs associated with environmental remediation services and equipment, relief of obligations through divestitures of sites and the possibility of existing legal claims giving rise to additional claims. Dispositions generally represent relief of legal obligations through the sale of the related property with no retained obligation. Other adjustments generally represent changes in estimates for existing obligations or obligations associated with new sites. Therefore, although the Partnership believes that these environmental liabilities are adequate, no assurances can be made that any costs incurred in excess of these environmental liabilities or outside of indemnifications or not otherwise covered by insurance would not have a material adverse effect on the Partnership’s financial condition, results of operations or cash flows.

Note 11. Related Party Transactions

Services Agreement—The Partnership is a party to a services agreement with various entities which own limited partner interests in the Partnership and interests in the General Partner and which are 100% owned by members of the Slifka family (the “Slifka Entities Services Agreement”), pursuant to which the Partnership provides certain tax, accounting, treasury, and legal support services and such Slifka entities pay the Partnership an annual services fee of $20,000, and which Slifka Entities Services Agreement has been approved by the Conflicts Committee of the board of

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

directors of the General Partner. The Slifka Entities Services Agreement is for an indefinite term and any party may terminate some or all of the services upon ninety (90) days’ advance written notice. As of March 31, 2023, no such notice of termination had been given by any party to the Slifka Entities Services Agreement.

The General Partner employs substantially all of the Partnership’s employees, except for most of its gasoline station and convenience store employees, who are employed by GMG. The Partnership reimburses the General Partner for expenses incurred in connection with these employees. These expenses, including bonus, payroll and payroll taxes, were $36.4 million and $39.7 million for the three months ended March 31, 2023 and 2022, respectively. The Partnership also reimburses the General Partner for its contributions under the General Partner’s 401(k) Savings and Profit Sharing Plans and the General Partner’s qualified and non-qualified pension plans.

The table below presents receivables from the General Partner (in thousands):


	March 31,		December 31,
	2023		2022
Receivables from the General Partner (1)	$	4,035	$	2,380

(1)	Receivables from the General Partner reflect the Partnership’s prepayment of payroll taxes and payroll accruals to the General Partner and are due to the timing of the payroll obligations.

Sale of the Revere Terminal—On June 28, 2022, the Partnership completed the sale of its terminal located on Boston Harbor in Revere, Massachusetts (the “Revere Terminal”) to Revere MA Owner LLC (the “Revere Buyer”) for a purchase price of $150.0 million in cash. In connection with closing under the purchase agreement between the Partnership and the Revere Buyer, the Partnership entered into a leaseback agreement, which meets the criteria for sale accounting, with the Revere Buyer pursuant to which the Partnership leases back key infrastructure at the Revere Terminal, including certain tanks, dock access rights, and loading rack infrastructure, to allow the Partnership to continue business operations at the Revere Terminal. The term of the leaseback agreement, including all renewal options exercisable at the Partnership’s election, could extend through September 30, 2039.

Pursuant to the terms of the purchase agreement the Partnership entered into with affiliates of the Slifka family (the “Initial Sellers”), related parties, in 2015 to acquire the Revere Terminal, the Initial Sellers are entitled to an amount equal to fifty percent of the net proceeds (as defined in the 2015 purchase agreement) (the “Initial Sellers Share”) from the sale of the Revere Terminal. At the time of the 2022 closing, the preliminary calculation of the Initial Sellers Share was approximately $44.3 million, which amount is subject to future revisions. To date, there have been no payments of additional net proceeds from the 2022 sale of the Revere Terminal relating to the final calculation of the Initial Sellers Share, as adjusted for such shared expenses and potential operating losses or profits.

The final calculation of the Initial Sellers Share, including a sharing of any additional expenses in order to satisfy outstanding obligations under the Partnership’s current government storage contract at the Revere Terminal and potential operating losses or profits relating to the operation of the Revere Terminal during the initial leaseback term, will occur upon the expiration of such storage contract. The Partnership recorded a total of approximately $7.3 million of such additional expenses due to the Initial Sellers which are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet as of March 31, 2023. Approximately $2.7 million of the total amount was recorded in selling, general and administrative expenses in the accompanying consolidated statement of operations for the three months ended March 31, 2023.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 12. Partners’ Equity and Cash Distributions

Partners’ Equity

Common Units and General Partner Interest

At March 31, 2023, there were 33,995,563 common units issued, including 6,322,050 common units held by affiliates of the General Partner, including directors and executive officers, collectively representing a 99.33% limited partner interest in the Partnership, and 230,303 general partner units representing a 0.67% general partner interest in the Partnership. There have been no changes to common units or the general partner interest during the three months ended March 31, 2023.

Series A Preferred Units

At March 31, 2023, there were 2,760,000 9.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units issued representing limited partner interests (the “Series A Preferred Units”) for $25.00 per Series A Preferred Unit. There have been no changes to the Series A Preferred Units during the three months ended March 31, 2023.

Series B Preferred Units

At March 31, 2023, there were 3,000,000 9.50% Series B Fixed Rate Cumulative Redeemable Perpetual Preferred Units issued representing limited partners interests (the “Series B Preferred Units”) for $25.00 per Series B Preferred Unit. There have been no changes to the Series B Preferred Units during the three months ended March 31, 2023.

Cash Distributions

Common Units

The Partnership intends to make cash distributions to common unitholders on a quarterly basis, although there is no assurance as to the future cash distributions since they are dependent upon future earnings, capital requirements, financial condition and other factors. The Credit Agreement prohibits the Partnership from making cash distributions if any potential default or Event of Default, as defined in the Credit Agreement, occurs or would result from the cash distribution. The indentures governing the Partnership’s outstanding senior notes also limit the Partnership’s ability to make distributions to its common unitholders in certain circumstances.

Within 45 days after the end of each quarter, the Partnership will distribute all of its Available Cash (as defined in its partnership agreement) to common unitholders of record on the applicable record date.

The Partnership will make distributions of Available Cash from distributable cash flow for any quarter in the following manner: 99.33% to the common unitholders, pro rata, and 0.67% to the General Partner, until the Partnership distributes for each outstanding common unit an amount equal to the minimum quarterly distribution for that quarter; and thereafter, cash in excess of the minimum quarterly distribution is distributed to the common unitholders and the General Partner based on the percentages as provided below.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As holder of the IDRs, the General Partner is entitled to incentive distributions if the amount that the Partnership distributes with respect to any quarter exceeds specified target levels shown below:


			Marginal Percentage
	Total Quarterly Distribution		Interest in Distributions
	Target Amount		Unitholders		General Partner
First Target Distribution		up to $0.4625	99.33	%	0.67	%
Second Target Distribution		above $0.4625 up to $0.5375	86.33	%	13.67	%
Third Target Distribution		above $0.5375 up to $0.6625	76.33	%	23.67	%
Thereafter		above $0.6625	51.33	%	48.67	%

The Partnership paid the following cash distribution to common unitholders during 2023 (in thousands, except per unit data):

For the

Per Unit

Cash Distribution

Quarter

Cash

Common

General

Incentive

Total Cash

Payment Date

Ended

Distribution

Units

Partner

Distribution

2/14/2023 (1)(2)

12/31/22

1.5725

53,458

569

1,383

55,410

(1)	This distribution consists of a quarterly distribution of $0.6350 per unit and a one-time special distribution of $0.9375 per unit.

(2)

The quarterly distribution of $0.6350 per unit resulted in the Partnership reaching its third target level distribution for this quarter. As a result, the General Partner, as the holder of the IDRs, received an incentive distribution with respect to the $0.6350 per unit distribution. The General Partner agreed to waive its incentive distribution rights with respect to the one-time special distribution of $0.9375 per unit.

In addition, on April 25, 2023, the board of directors of the General Partner declared a quarterly cash distribution of $0.6550 per unit ($2.62 per unit on an annualized basis) on all of its outstanding common units for the period from January 1, 2023 through March 31, 2023. On May 15, 2023, the Partnership will pay this cash distribution to its common unitholders of record as of the close of business on May 9, 2023.

Preferred Units

Distributions on the Series A Preferred Units are cumulative from August 7, 2018, the original issue date of the Series A Preferred Units, and payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year (each, a “Series A Distribution Payment Date”), commencing on November 15, 2018, to holders of record as of the opening of business on the February 1, May 1, August 1 or November 1 next preceding the Series A Distribution Payment Date, in each case, when, as, and if declared by the General Partner out of legally available funds for such purpose. Distributions on the Series A Preferred Units will be paid out of Available Cash with respect to the quarter immediately preceding the applicable Series A Distribution Payment Date.

At any time on or after August 15, 2023, the Partnership may redeem, in whole or in part, the Series A Preferred Units at a redemption price in cash of $25.00 per Series A Preferred Unit plus an amount equal to all accumulated and unpaid distributions thereon to, but excluding, the date of redemption, whether or not declared. The Partnership must provide not less than 30 days’ and not more than 60 days’ advance written notice of any such redemption. Any such redemptions would be effected only out of funds legally available for such purposes and would be subject to compliance with the provisions of the Partnership’s outstanding indebtedness.

Distributions on the Series B Preferred Units are cumulative from March 24, 2021, the original issue date of the Series B Preferred Units, and payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year (each, a “Series B Distribution Payment Date”), commencing on May 15, 2021, to holders of record as of the

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

opening of business on the February 1, May 1, August 1 or November 1 next preceding the Series B Distribution Payment Date, in each case, when, as, and if declared by the General Partner out of legally available funds for such purpose. Distributions on the Series B Preferred Units will be paid out of Available Cash with respect to the quarter immediately preceding the applicable Series B Distribution Payment Date.

At any time on or after May 15, 2026, the Partnership may redeem, in whole or in part, the Series B Preferred Units at a redemption price in cash of $25.00 per Series B Preferred Unit plus an amount equal to all accumulated and unpaid distributions thereon to, but excluding, the date of redemption, whether or not declared. The Partnership must provide not less than 30 days’ and not more than 60 days’ advance written notice of any such redemption.

The Partnership paid the following cash distributions on the Series A Preferred Units and the Series B Preferred Units during 2023 (in thousands, except per unit data):

Series A Preferred Units

Series B Preferred Units

For the

Per Unit

Cash Distribution

Quarterly Period

Cash

Total Cash

Cash

Total Cash

Payment Date

Covering

Distribution

2/15/2023

11/15/22 - 2/14/23

0.609375

1,682

0.59375

1,781

In addition, on April 17, 2023, the board of directors (“the Board”) of the General Partner declared a quarterly cash distribution of $0.609375 per unit ($2.4375 per unit on an annualized basis) on the Series A Preferred Units for the period from February 15, 2023 through May 14, 2023. This distribution will be payable on May 15, 2023 to holders of record as of the opening of business on May 1, 2023.

The Board also declared a quarterly cash distribution of $0.59375 per unit ($2.375 per unit on an annualized basis) on the Series B Preferred Units for the period from February 15, 2023 through May 14, 2023. This distribution will be payable on May 15, 2023 to holders of record as of the opening of business on May 1, 2023.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 13. Segment Reporting

Summarized financial information for the Partnership’s reportable segments is presented in the table below (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Wholesale Segment:
Sales
Gasoline and gasoline blendstocks	$	1,175,623	$	1,420,226
Distillates and other oils (1)(2)		1,283,800		1,357,477
Total	$	2,459,423	$	2,777,703
Product margin
Gasoline and gasoline blendstocks	$	20,386	$	(2,285)
Distillates and other oils (1)(2)		32,747		49,373
Total	$	53,133	$	47,088
Gasoline Distribution and Station Operations Segment:
Sales
Gasoline	$	1,185,866	$	1,276,961
Station operations (3)		127,166		115,892
Total	$	1,313,032	$	1,392,853
Product margin
Gasoline	$	120,816	$	114,886
Station operations (3)		62,730		58,097
Total	$	183,546	$	172,983
Commercial Segment:
Sales	$	257,872	$	329,982
Product margin	$	8,127	$	8,141
Combined sales and Product margin:
Sales	$	4,030,327	$	4,500,538
Product margin (4)	$	244,806	$	228,212
Depreciation allocated to cost of sales		(22,742)		(21,974)
Combined gross profit	$	222,064	$	206,238

(1)	Distillates and other oils (primarily residual oil and crude oil).

(2)

Segment reporting results for the three months ended March 31, 2022 have been reclassified within the Wholesale segment to conform to the Partnership’s current presentation. Specifically, results from crude oil previously shown separately are included in distillates and other oils as results from crude oil are immaterial.

(3)	Station operations consist of convenience store and prepared food sales, rental income and sundries.

(4)	Product margin is a non-GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess its business. The table above includes a reconciliation of product margin on a combined basis to gross profit, a directly comparable GAAP measure.

Approximately 96 million gallons and 101 million gallons of the GDSO segment’s sales for the three months ended March 31, 2023 and 2022, respectively, were supplied from petroleum products and renewable fuels sourced by the Wholesale segment. The Commercial segment’s sales were predominantly sourced by the Wholesale segment. These intra-segment sales are not reflected as sales in the Wholesale segment as they are eliminated.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

A reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements is as follows (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Combined gross profit	$	222,064	$	206,238
Operating costs and expenses not allocated to operating segments:
Selling, general and administrative expenses		62,256		56,281
Operating expenses		108,353		99,233
Amortization expense		2,084		2,499
Net gain on sale and disposition of assets		(2,128)		(4,911)
Total operating costs and expenses		170,565		153,102
Operating income		51,499		53,136
Interest expense		(22,068)		(21,474)
Income tax expense		(400)		(1,177)
Net income	$	29,031	$	30,485

The Partnership’s foreign assets and foreign sales were immaterial as of and for the three months ended March 31, 2023 and 2022.

Segment Assets

The Partnership’s terminal assets are allocated to the Wholesale and Commercial segments, and its retail gasoline stations are allocated to the GDSO segment. Due to the commingled nature and uses of the remainder of the Partnership’s assets, it is not reasonably possible for the Partnership to allocate these assets among its reportable segments.

The table below presents total assets by reportable segment at March 31, 2023 and December 31, 2022 (in thousands):


		Wholesale		Commercial		GDSO		Unallocated		Total
March 31, 2023	$	553,783	$	—	$	1,908,210	$	462,753	$	2,924,746
December 31, 2022	$	738,995	$	—	$	1,944,135	$	477,755	$	3,160,885

Note 14. Net Income Per Common Limited Partner Unit

Under the Partnership’s partnership agreement, for any quarterly period, the incentive distribution rights (“IDRs”) participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in the Partnership’s undistributed net income or losses. Accordingly, the Partnership’s undistributed net income or losses is assumed to be allocated to the common unitholders and to the General Partner’s general partner interest.

Common units outstanding as reported in the accompanying consolidated financial statements at March 31, 2023 and December 31, 2022, respectively, excludes 9,791 and 58,044 common units held on behalf of the Partnership pursuant to its repurchase program. These units are not deemed outstanding for purposes of calculating net income per common limited partner unit (basic and diluted). For all periods presented below, the Partnership’s preferred units are not potentially dilutive securities based on the nature of the conversion feature.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides a reconciliation of net income and the assumed allocation of net income to the common limited partners (after deducting amounts allocated to preferred unitholders) for purposes of computing net income per common limited partner unit for the periods presented (in thousands, except per unit data):


	Three Months Ended March 31, 2023								Three Months Ended March 31, 2022
			Common		General						Common		General
			Limited		Partner						Limited		Partner
Numerator:	Total		Partners		Interest		IDRs		Total		Partners		Interest		IDRs
Net income	$	29,031	$	27,249	$	1,782	$	—	$	30,485	$	29,308	$	1,177	$	—
Declared distribution	$	24,016	$	22,267	$	162	$	1,587	$	21,344	$	20,227	$	144	$	973
Assumed allocation of undistributed net income		5,015		4,982		33		—		9,141		9,081		60		—
Assumed allocation of net income	$	29,031	$	27,249	$	195	$	1,587	$	30,485	$	29,308	$	204	$	973
Less: Preferred limited partner interest in net income				3,463								3,463
Net income attributable to common limited partners			$	23,786							$	25,845
Denominator:
Basic weighted average common units outstanding				33,986								33,953
Dilutive effect of phantom units				15								132
Diluted weighted average common units outstanding				34,001								34,085
Basic net income per common limited partner unit			$	0.70							$	0.76
Diluted net income per common limited partner unit			$	0.70							$	0.76

The board of directors of the General Partner declared the following quarterly cash distribution on its common units:


	Per Common Unit Cash		Distribution Declared for the
Cash Distribution Declaration Date	Distribution Declared		Quarterly Period Ended
April 25, 2023	$	0.6550	March 31, 2023

The board of directors of the General Partner declared the following quarterly cash distributions on the Series A Preferred Units and the Series B Preferred Units:


	Series A Preferred Units		Series B Preferred Units
	Per Unit Cash		Per Unit Cash		Distribution Declared for the
Cash Distribution Declaration Date	Distribution Declared		Distribution Declared		Quarterly Period Covering
April 17, 2023	$	0.609375	$	0.59375	February 15, 2023 - May 14, 2023

See Note 12, “Partners’ Equity and Cash Distributions” for further information.

Note 15. Legal Proceedings

General

Although the Partnership may, from time to time, be involved in litigation and claims arising out of its operations in the normal course of business, the Partnership does not believe that it is a party to any litigation that will have a material adverse impact on its financial condition or results of operations. Except as described below and in Note 10

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

included herein, the Partnership is not aware of any significant legal or governmental proceedings against it or contemplated to be brought against it. The Partnership maintains insurance policies with insurers in amounts and with coverage and deductibles as its general partner believes are reasonable and prudent. However, the Partnership can provide no assurance that this insurance will be adequate to protect it from all material expenses related to potential future claims or that these levels of insurance will be available in the future at economically acceptable prices.

Other

In January 2022, the Partnership was served with a complaint filed in the Middlesex County Superior Court of the Commonwealth of Massachusetts against the Partnership and its wholly owned subsidiaries, Global Companies LLC (“Global Companies”) and Alliance Energy LLC (“Alliance”), alleging, among other things, that a plaintiff truck driver, while (1) loading gasoline and diesel fuel at terminals owned and operated by the Partnership located in Albany, New York and Revere, Massachusetts and (2) unloading gasoline and diesel fuel at gasoline stations owned and/or operated by the Partnership throughout New York, Massachusetts and New Hampshire, contracted aplastic anemia as a result of exposure to benzene-containing products and/or vapors therefrom. The Partnership, Global Companies and Alliance have meritorious defenses to the allegations in the complaint and will vigorously contest the actions taken by the plaintiff.

In October 2020, the Partnership was served with a complaint filed against the Partnership and its wholly owned subsidiary, Global Companies alleging, among other things, wrongful death and loss of consortium. The complaint, filed in the Middlesex County Superior Court of the Commonwealth of Massachusetts, alleges, among other things, that a truck driver (whose estate is a co-plaintiff), while loading gasoline and diesel fuel at terminals owned and operated by the Partnership located in Albany, New York and Burlington, Vermont, was exposed to benzene-containing products and/or vapors therefrom. The Partnership and Global Companies have meritorious defenses to the allegations in the complaint and will vigorously contest the actions taken by the plaintiffs.

By letter dated January 25, 2017, the Partnership received a notice of intent to sue (the “2017 NOI”) from Earthjustice related to alleged violations of the CAA; specifically alleging that the Partnership was operating the Albany Terminal without a valid CAA Title V Permit. On February 9, 2017, the Partnership responded to Earthjustice advising that the 2017 NOI was without factual or legal merit and that the Partnership would move to dismiss any action commenced by Earthjustice. No action was taken by either the EPA or the NYSDEC with regard to the Earthjustice allegations. At this time, there has been no further action taken by Earthjustice. Neither the EPA nor the NYSDEC has followed up on the 2017 NOI. The Albany Terminal is currently operating pursuant to its Title V Permit, which has been extended in accordance with the State Administrative Procedures Act. Additionally, the Partnership has submitted a Title V Permit renewal and a request for modifications to its existing Title V Permit. The Partnership believes that it has meritorious defenses against all allegations.

The Partnership received letters from the EPA dated November 2, 2011 and March 29, 2012, containing requirements and testing orders (collectively, the “Requests for Information”) for information under the CAA. The Requests for Information were part of an EPA investigation to determine whether the Partnership has violated sections of the CAA at certain of its terminal locations in New England with respect to residual oil and asphalt. On June 6, 2014, a NOV was received from the EPA, alleging certain violations of its Air Emissions License issued by the Maine Department of Environmental Protection, based upon the test results at the South Portland, Maine terminal. The Partnership met with and provided additional information to the EPA with respect to the alleged violations. On April 7, 2015, the EPA issued a Supplemental Notice of Violation modifying the allegations of violations of the terminal’s Air Emissions License. The Partnership has entered into a consent decree (the “Consent Decree”) with the EPA and the United States Department of Justice (the “Department of Justice”), which was filed in the U.S. District Court for the District of Maine (the “Court”) on March 25, 2019. The Consent Decree was entered by the Court on December 19, 2019. The Partnership believes that compliance with the Consent Decree and implementation of the requirements of the Consent Decree will have no material impact on its operations.

Table of Contents

GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The Partnership received a Subpoena Duces Tecum dated May 13, 2022 from the Office of the Attorney General of the State of New York (“NY AG”) requesting information regarding charges paid by retailers, distributors, or consumers for oil and gas products in or within the proximity of the State of New York during the disruption of the market triggered by Russia’s 2022 invasion of Ukraine. The Partnership has been advised that the NY AG’s office sent similar subpoena requests for information to market participants across the petroleum industry. The Partnership made an initial submission of information to the NY AG’s office and continues to cooperate with the NY AG’s office to satisfy its obligations under the subpoena.

The Partnership received a letter from the Office of the Attorney General of the State of Connecticut (“CT AG”) dated June 28, 2022 seeking information from the Partnership related to its sales of motor fuel to retailers within the State of Connecticut from February 3, 2022 through June 28, 2022. The Partnership has been advised that the CT AG’s office sent similar requests for information to market participants across the petroleum industry. The Partnership has complied with the CT AG’s request and submitted information responsive thereto.

Note 16. New Accounting Standards

There have been no recently issued accounting standards that are expected to have a material impact on the Partnership’s consolidated financial statements.

Note 17. Subsequent Events

Distribution to Common Unitholders—On April 25, 2023, the board of directors of the General Partner declared a quarterly cash distribution of $0.6550 per unit ($2.62 per unit on an annualized basis) for the period from January 1, 2023 through March 31, 2023. On May 15, 2023, the Partnership will pay this cash distribution to its common unitholders of record as of the close of business on May 9, 2023.

Distribution to Series A Preferred Unitholders—On April 17, 2023, the board of directors of the General Partner declared a quarterly cash distribution of $0.609375 per unit ($2.4375 per unit on an annualized basis) on the Series A Preferred Units, covering the period from February 15, 2023 through May 14, 2023. This distribution will be payable on May 15, 2023 to holders of record as of the opening of business on May 1, 2023.

Distribution to Series B Preferred Unitholders—On April 17, 2023, the board of directors of the General Partner declared a quarterly cash distribution of $0.59375 per unit ($2.375 per unit on an annualized basis) on the Series B Preferred Units, covering the period from February 15, 2023 through May 14, 2023. This distribution will be payable on May 15, 2023 to holders of record as of the opening of business on May 1, 2023.

Table of Contents

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of financial condition and results of operations of Global Partners LP should be read in conjunction with the historical consolidated financial statements of Global Partners LP and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

Forward-Looking Statements

Some of the information contained in this Quarterly Report on Form 10-Q 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 although not all forward-looking statements contain such identifying words. In addition, any statement made by our management concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible actions by us are also forward-looking statements. Forward-looking statements are not guarantees of performance. Although we believe these forward-looking statements are based on reasonable assumptions, statements made regarding future results are subject to a number of assumptions, uncertainties and risks, many of which are beyond our control, which may cause future results to be materially different from the results stated or implied in this document. These risks and uncertainties include, among other things:

●

We may not have sufficient cash from operations to enable us to pay distributions on the Series A Preferred Units or the Series B Preferred Units (each as defined in Note 12 of Notes to Consolidated Financial Statements) or maintain distributions on our common units at current levels following establishment of cash reserves and payment of fees and expenses, including payments to our general partner.

●	A significant decrease in price or demand for the products we sell or a significant increase in the cost of our logistics activities could have an adverse effect on our financial condition, results of operations and cash available for distribution to our unitholders.

●

COVID-19 and certain developments in global petroleum markets have had, and may from time to time continue to have, material adverse consequences for general economic, financial and business conditions, and could materially and adversely affect our business, financial condition and results of operation and those of our customers, suppliers and other counterparties.

●	The impact on the global economy and commodity prices resulting from the conflict in Ukraine may have a negative impact on our financial condition and results of operations.

●We depend upon marine, pipeline, rail and truck transportation services for a substantial portion of our logistics activities in transporting the products we sell. Implementation of regulations and directives that adversely impact the market for transporting these products by rail or otherwise could adversely affect those activities. In addition, implementation of regulations and directives related to these aforementioned services as well as a disruption in any of these transportation services could have an adverse effect on our financial condition, results of operations and cash available for distribution to our unitholders.

●We have contractual obligations for certain transportation assets such as railcars, barges and pipelines. A decline in demand for the products we sell could result in a decrease in the utilization of our transportation assets, which could negatively impact our financial condition, results of operations and cash available for distribution to our unitholders.

●

We may not be able to fully implement or capitalize upon planned growth projects. Even if we consummate acquisitions or expend capital in pursuit of growth projects that we believe will be accretive, they may in fact result in no increase or even a decrease in cash available for distribution to our unitholders.

●Erosion of the value of major gasoline brands could adversely affect our gasoline sales and customer traffic.

Table of Contents

●Our motor fuel sales could be significantly reduced by a reduction in demand due to higher prices and new technologies and alternative fuel sources, such as electric, hybrid, battery powered, hydrogen or other alternative fuel-powered motor vehicles. In addition to new technologies and alternative fuel sources, changing consumer preferences or driving habits could lead to new forms of fueling destinations or potentially fewer customer visits to our sites, resulting in a decrease in gasoline sales and/or sales of food, sundries and other on-site services. Any of these outcomes could negatively affect our financial condition, results of operations and cash available for distribution to our unitholders.

●Effects of climate change and impacts to areas prone to sea level rise or other extreme weather events could have the potential to adversely affect our assets and operations.

●Changes in government usage mandates and tax credits could adversely affect the availability and pricing of ethanol and renewable fuels, which could negatively impact our sales.

●Our petroleum and related products sales, logistics activities, convenience store operations and results of operations have been and could continue to be adversely affected by, among other things, changes in the petroleum products market structure, product differentials and volatility (or lack thereof), implementation of regulations that adversely impact the market for transporting petroleum and related products by rail and other modes of transportation, severe weather conditions, significant changes in prices, labor and equipment shortages and interruptions in transportation services and other necessary services and equipment, such as railcars, barges, trucks, loading equipment and qualified drivers.

●Our risk management policies cannot eliminate all commodity risk, basis risk or the impact of unfavorable market conditions, each of which can adversely affect our financial condition, results of operations and cash available for distribution to our unitholders. In addition, noncompliance with our risk management policies could result in significant financial losses.

●Our results of operations are affected by the overall forward market for the products we sell, and pricing volatility may adversely impact our results.

●Our businesses could be affected by a range of issues, such as changes in demand, commodity prices, energy conservation, competition, the global economic climate, movement of products between foreign locales and within the United States, changes in refiner demand, weekly and monthly refinery output levels, changes in the rate of inflation or deflation, changes in local, domestic and worldwide inventory levels, changes in health, safety and environmental regulations, including, without limitation, those related to climate change, failure to obtain permits, amend existing permits for expansion and/or to address changes to our assets and underlying operations, or renew existing permits on terms favorable to us, seasonality, supply, weather and logistics disruptions and other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of refined products, gasoline blendstocks, renewable fuels and crude oil.

●Increases and/or decreases in the prices of the products we sell could adversely impact the amount of availability for borrowing working capital under our credit agreement, which credit agreement has borrowing base limitations and advance rates.

●Warmer weather conditions could adversely affect our home heating oil and residual oil sales. Our sales of home heating oil and residual oil continue to be reduced by conversions to natural gas and/or electric heat pumps and by utilization of propane and/or natural gas (instead of heating oil) as primary fuel sources.

●We are exposed to trade credit risk and risk associated with our trade credit support in the ordinary course of our businesses.

●	The condition of credit markets may adversely affect our liquidity.

Table of Contents

●

Our credit agreement and the indentures governing our senior notes contain operating and financial covenants, and our credit agreement contains borrowing base requirements. A failure to comply with the operating and financial covenants in our credit agreement, the indentures and any future financing agreements could impact our access to bank loans and other sources of financing as well as our ability to pursue our business activities.

●	A significant increase in interest rates could adversely affect our results of operations and cash available for distribution to our unitholders and our ability to service our indebtedness.

●	Our gasoline station and convenience store business could expose us to an increase in consumer litigation and result in an unfavorable outcome or settlement of one or more lawsuits where insurance proceeds are insufficient or otherwise unavailable.

●

Congress has given the Food and Drug Administration (“FDA”) broad authority to regulate tobacco and nicotine products, and the FDA, states and some municipalities have enacted and are pursuing enaction of numerous regulations restricting the sale of such products. These governmental actions, as well as national, state and municipal campaigns to discourage smoking, tax increases, and imposition of regulations restricting the sale of flavored tobacco products, e-cigarettes and vapor products, have and could result in reduced consumption levels, higher costs which we may not be able to pass on to our customers, and reduced overall customer traffic. Also, increasing regulations related to and restricting the sale of flavored tobacco products, e-cigarettes and vapor products may offset some of the gains we have experienced from selling these types of products. These factors could materially affect the sale of this product mix which in turn could have an adverse effect on our financial condition, results of operations and cash available for distribution to our unitholders.

●Our results can be adversely affected by unforeseen events, such as adverse weather, natural disasters, terrorism, cyber attacks, pandemics, or other catastrophic events which could have an adverse effect on our financial condition, results of operations and cash available for distributions to our unitholders.

●	Our businesses could expose us to litigation and result in an unfavorable outcome or settlement of one or more lawsuits where insurance proceeds are insufficient or otherwise unavailable.

●Adverse developments in the areas where we conduct our businesses could have a material adverse effect on such businesses and could reduce our ability to make distributions to our unitholders.

●A serious disruption to our information technology systems could significantly limit our ability to manage and operate our businesses efficiently.

●We are exposed to performance risk in our supply chain.

●Our businesses are subject to federal, state and municipal environmental and non-environmental regulations which could have a material adverse effect on such businesses.

●Our general partner and its affiliates have conflicts of interest and limited fiduciary duties, which could permit them to favor their own interests to the detriment of our unitholders.

●Unitholders have limited voting rights and are not entitled to elect our general partner or its directors or remove our general partner without the consent of the holders of at least 66 2/3% of the outstanding common units (including common units held by our general partner and its affiliates), which could lower the trading price of our units.

●Our tax treatment depends on our status as a partnership for federal income tax purposes.

●Unitholders may be required to pay taxes on their share of our income even if they do not receive any cash distributions from us.

Table of Contents

Additional information about risks and uncertainties that could cause actual results to differ materially from forward-looking statements is contained in Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2022 and Part II, Item 1A, “Risk Factors,” in this Quarterly Report on Form 10-Q.

We expressly disclaim any obligation or undertaking to update these statements to reflect any change in our expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based, other than as required by federal and state securities laws. All forward-looking statements included in this Quarterly Report on Form 10-Q and all subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements.

Overview

We are a master limited partnership formed in March 2005. We own, control or have access to one of the largest terminal networks of refined petroleum products and renewable fuels in Massachusetts, Maine, Connecticut, Vermont, New Hampshire, Rhode Island, New York, New Jersey and Pennsylvania (collectively, the “Northeast”). We are one of the region’s largest independent owners, suppliers and operators of gasoline stations and convenience stores. As of March 31, 2023, we had a portfolio of 1,656 owned, leased and/or supplied gasoline stations, including 343 directly operated convenience stores, primarily in the Northeast. We are also one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in the New England states and New York. We engage in the purchasing, selling, gathering, blending, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks (such as ethanol), distillates (such as home heating oil, diesel and kerosene), residual oil, renewable fuels, crude oil and propane and in the transportation of petroleum products and renewable fuels by rail from the mid-continent region of the United States and Canada.

Collectively, we sold approximately $3.9 billion of refined petroleum products, gasoline blendstocks, renewable fuels and crude oil for the three months ended March 31, 2023. In addition, we had other revenues of approximately $0.1 billion for the three months ended March 31, 2023 from convenience store and prepared food sales at our directly operated stores, rental income from dealer leased and commissioned agent leased gasoline stations and from cobranding arrangements, and sundries.

We base our pricing on spot prices, fixed prices or indexed prices and routinely use the New York Mercantile Exchange (“NYMEX”), Chicago Mercantile Exchange (“CME”) and Intercontinental Exchange (“ICE”) or other counterparties to hedge the risk inherent in buying and selling commodities. Through the use of regulated exchanges or derivatives, we seek to maintain a position that is substantially balanced between purchased volumes and sales volumes or future delivery obligations.

2023 Events

Acquisition of Houston Sites—On March 28, 2023, we and ExxonMobil signed an agreement to acquire 64 Houston-area convenience and fueling facilities from the Landmark Group. The transaction is subject to the satisfaction of closing conditions and is expected to be completed in the second quarter of 2023. Upon closing of the transaction, the assets will be purchased by Spring Partners Retail LLC, a joint venture between us and ExxonMobil, and we will act as the management company and operator.

Amendments to the Credit Agreement—On February 2, 2023, we and certain of our subsidiaries entered into the eighth amendment to our credit agreement which, among other things, permits us to request up to two reallocations per calendar year of the lending commitments among our facilities under our credit agreement. On May 2, 2023, we and certain of our subsidiaries entered into the ninth amendment to third amended and restated credit agreement and joinder which, among other things, increases the applicable revolver rate by 25 basis points on borrowings under the revolving credit facility and extends the maturity date from May 6, 2024 to May 2, 2026. See “—Liquidity and Capital Resources—Credit Agreement.”

Table of Contents

Operating Segments

We purchase refined petroleum products, gasoline blendstocks, renewable fuels and crude oil primarily from domestic and foreign refiners and ethanol producers, crude oil producers, major and independent oil companies and trading companies. We operate our businesses under three segments: (i) Wholesale, (ii) Gasoline Distribution and Station Operations (“GDSO”) and (iii) Commercial.

Wholesale

In our Wholesale segment, we engage in the logistics of selling, gathering, blending, storing and transporting refined petroleum products, gasoline blendstocks, renewable fuels, crude oil and propane. We transport these products by railcars, barges, trucks and/or pipelines pursuant to spot or long-term contracts. We sell home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene and residual oil to home heating oil retailers and wholesale distributors. Generally, customers use their own vehicles or contract carriers to take delivery of the gasoline, distillates and propane at bulk terminals and inland storage facilities that we own or control or at which we have throughput or exchange arrangements. Ethanol is shipped primarily by rail and by barge.

In our Wholesale segment, we obtain Renewable Identification Numbers (“RIN”) in connection with our purchase of ethanol which is used for bulk trading purposes or for blending with gasoline through our terminal system. A RIN is a renewable identification number associated with government-mandated renewable fuel standards. To evidence that the required volume of renewable fuel is blended with gasoline, obligated parties must retire sufficient RINs to cover their Renewable Volume Obligation (“RVO”). Our U.S. Environmental Protection Agency (“EPA”) obligations relative to renewable fuel reporting are comprised of foreign gasoline and diesel that we may import and blending operations at certain facilities.

Gasoline Distribution and Station Operations

In our GDSO segment, gasoline distribution includes sales of branded and unbranded gasoline to gasoline station operators and sub-jobbers. Station operations include (i) convenience store and prepared food sales, (ii) rental income from gasoline stations leased to dealers, from commissioned agents and from cobranding arrangements and (iii) sundries (such as car wash sales and lottery and ATM commissions).

As of March 31, 2023, we had a portfolio of owned, leased and/or supplied gasoline stations, primarily in the Northeast, that consisted of the following:


Company operated		343
Commissioned agents		297
Lessee dealers		188
Contract dealers		828
Total		1,656

At our company-operated stores, we operate the gasoline stations and convenience stores with our employees, and we set the retail price of gasoline at the station. At commissioned agent locations, we own the gasoline inventory, and we set the retail price of gasoline at the station and pay the commissioned agent a fee related to the gallons sold. We receive rental income from commissioned agent leased gasoline stations for the leasing of the convenience store premises, repair bays and/or other businesses that may be conducted by the commissioned agent. At dealer-leased locations, the dealer purchases gasoline from us, and the dealer sets the retail price of gasoline at the dealer’s station. We also receive rental income from (i) dealer-leased gasoline stations and (ii) cobranding arrangements. We also supply gasoline to locations owned and/or leased by independent contract dealers. Additionally, we have contractual relationships with distributors in certain New England states pursuant to which we source and supply these distributors’ gasoline stations with ExxonMobil-branded gasoline.

Table of Contents

Commercial

In our Commercial segment, we include sales and deliveries to end user customers in the public sector and to large commercial and industrial end users of unbranded gasoline, home heating oil, diesel, kerosene, residual oil and bunker fuel. In the case of public sector commercial and industrial end user customers, we sell products primarily either through a competitive bidding process or through contracts of various terms. We respond to publicly issued requests for product proposals and quotes. We generally arrange for the delivery of the product to the customer’s designated location. Our Commercial segment also includes sales of custom blended fuels delivered by barges or from a terminal dock to ships through bunkering activity.

Seasonality

Due to the nature of our businesses and our reliance, in part, on consumer travel and spending patterns, we may experience more demand for gasoline during the late spring and summer months than during the fall and winter months. Travel and recreational activities are typically higher in these months in the geographic areas in which we operate, increasing the demand for gasoline. Therefore, our volumes in gasoline are typically higher in the second and third quarters of the calendar year. As demand for some of our refined petroleum products, specifically home heating oil and residual oil for space heating purposes, is generally greater during the winter months, heating oil and residual oil volumes are generally higher during the first and fourth quarters of the calendar year. These factors may result in fluctuations in our quarterly operating results.

Outlook

This section identifies certain risks and certain economic or industry-wide factors that may affect our financial performance and results of operations in the future, both in the short-term and in the long-term. Our results of operations and financial condition depend, in part, upon the following:

●

Our businesses are influenced by the overall markets for refined petroleum products, gasoline blendstocks, renewable fuels, crude oil and propane and increases and/or decreases in the prices of these products may adversely impact our financial condition, results of operations and cash available for distribution to our unitholders and the amount of borrowing available for working capital under our credit agreement. Results from our purchasing, storing, terminalling, transporting, selling and blending operations are influenced by prices for refined petroleum products, gasoline blendstocks, renewable fuels, crude oil and propane, price volatility and the market for such products. Prices in the overall markets for these products may affect our financial condition, results of operations and cash available for distribution to our unitholders. Our margins can be significantly impacted by the forward product pricing curve, often referred to as the futures market. We typically hedge our exposure to petroleum product and renewable fuel price moves with futures contracts and, to a lesser extent, swaps. In markets where future prices are higher than current prices, referred to as contango, we may use our storage capacity to improve our margins by storing products we have purchased at lower prices in the current market for delivery to customers at higher prices in the future. In markets where future prices are lower than current prices, referred to as backwardation, inventories can depreciate in value and hedging costs are more expensive. For this reason, in these backward markets, we attempt to reduce our inventories in order to minimize these effects. Our inventory management is dependent on the use of hedging instruments which are managed based on the structure of the forward pricing curve. Daily market changes may impact periodic results due to the point-in-time valuation of these positions. Volatility in petroleum markets may impact our results. When prices for the products we sell rise, some of our customers may have insufficient credit to purchase supply from us at their historical purchase volumes, and their customers, in turn, may adopt conservation measures which reduce consumption, thereby reducing demand for product. Furthermore, when prices increase rapidly and dramatically, we may be unable to promptly pass our additional costs on to our customers, resulting in lower margins which could adversely affect our results of operations. Higher prices for the products we sell may (1) diminish our access to trade credit support and/or cause it to become more expensive and (2) decrease the amount of borrowings available for working capital under our credit agreement as a result of total available commitments, borrowing base limitations and advance rates thereunder. When prices for the products we sell decline, our exposure to risk of loss in the event of nonperformance by our customers of our forward contracts may be

Table of Contents

increased as they and/or their customers may breach their contracts and purchase the products we sell at the then lower market price from a competitor.

●

We commit substantial resources to pursuing acquisitions and expending capital for growth projects, although there is no certainty that we will successfully complete any acquisitions or growth projects or receive the economic results we anticipate from completed acquisitions or growth projects. We are continuously engaged in discussions with potential sellers and lessors of existing (or suitable for development) terminalling, storage, logistics and/or marketing assets, including gasoline stations, convenience stores and related businesses, and also consider organic growth projects. Our growth largely depends on our ability to make accretive acquisitions and/or accretive development projects. We may be unable to execute such accretive transactions for a number of reasons, including the following: (1) we are unable to identify attractive transaction candidates or negotiate acceptable terms; (2) we are unable to obtain financing for such transactions on economically acceptable terms; or (3) we are outbid by competitors. Many of these transactions involve numerous regulatory, environmental, commercial and legal uncertainties beyond our control. Required approvals, permits and licenses may not be obtained, may be delayed or may be obtained with conditions that materially alter the expected return associated with the underlying projects. In addition, we may consummate transactions that we believe will be accretive but that ultimately may not be accretive. If any of these events were to occur, our future growth and ability to increase or maintain distributions on our common units could be limited. We can give no assurance that our transaction efforts will be successful or that any such efforts will be completed on terms that are favorable to us.

●

The condition of credit markets may adversely affect our liquidity. In the past, world financial markets experienced a severe reduction in the availability of credit. Possible negative impacts in the future could include a decrease in the availability of borrowings under our credit agreement, increased counterparty credit risk on our derivatives contracts and our contractual counterparties could require us to provide collateral. In addition, we could experience a tightening of trade credit from our suppliers.

●

We depend upon marine, pipeline, rail and truck transportation services for a substantial portion of our logistics activities in transporting the products we sell. Implementation of regulations and directives related to these aforementioned services as well as disruption in any of these transportation services could have an adverse effect on our financial condition, results of operations and cash available for distribution to our unitholders. Hurricanes, flooding and other severe weather conditions could cause a disruption in the transportation services we depend upon and could affect the flow of service. In addition, accidents, labor disputes between providers and their employees and labor renegotiations, including strikes, lockouts or a work stoppage, shortage of railcars, trucks and barges, mechanical difficulties or bottlenecks and disruptions in transportation logistics could also disrupt our business operations. These events could result in service disruptions and increased costs which could also adversely affect our financial condition, results of operations and cash available for distribution to our unitholders. Other disruptions, such as those due to an act of terrorism or war, could also adversely affect our businesses.

●

We have contractual obligations for certain transportation assets such as railcars, barges and pipelines. A decline in demand for the products we sell could result in a decrease in the utilization of our transportation assets, which could negatively impact our financial condition, results of operations and cash available for distribution to our unitholders.

●

Our gasoline financial results in our GDSO segment can be lower in the first and fourth quarters of the calendar year due to seasonal fluctuations in demand. Due to the nature of our businesses and our reliance, in part, on consumer travel and spending patterns, we may experience more demand for gasoline during the late spring and summer months than during the fall and winter months. Travel and recreational activities are typically higher in these months in the geographic areas in which we operate, increasing the demand for gasoline. Therefore, our results of operations in gasoline can be lower in the first and fourth quarters of the calendar year.

●	Our heating oil and residual oil financial results can be lower in the second and third quarters of the calendar year. Demand for some refined petroleum products, specifically home heating oil and residual oil for space

Table of Contents

heating purposes, is generally higher during November through March than during April through October. We obtain a significant portion of these sales during the winter months.

●

Warmer weather conditions could adversely affect our results of operations and financial condition. Weather conditions generally have an impact on the demand for both home heating oil and residual oil. Because we supply distributors whose customers depend on home heating oil and residual oil for space heating purposes during the winter, warmer-than-normal temperatures during the first and fourth calendar quarters can decrease the total volume we sell and the gross profit realized on those sales.

●Our gasoline, convenience store and prepared food sales could be significantly reduced by a reduction in demand due to higher prices and inflation in general and new technologies and alternative fuel sources, such as electric, hybrid, battery powered, hydrogen or other alternative fuel-powered motor vehicles. Technological advances and alternative fuel sources, such as electric, hybrid, battery powered, hydrogen or other alternative fuel-powered motor vehicles, may adversely affect the demand for gasoline. We could face additional competition from alternative energy sources as a result of future government-mandated controls or regulations which promote the use of alternative fuel sources. A number of new legal incentives and regulatory requirements, and executive initiatives, including various government subsidies including the extension of certain tax credits for renewable energy, have made these alternative forms of energy more competitive. Changing consumer preferences or driving habits could lead to new forms of fueling destinations or potentially fewer customer visits to our sites, resulting in a decrease in gasoline sales and/or sales of food, sundries and other on-site services. In addition, higher prices and inflation in general could reduce the demand for gasoline and the products and services we offer at our convenience stores and adversely impact our sales. A reduction in our sales could have an adverse effect on our financial condition, results of operations and cash available for distribution to our unitholders.

●

Energy efficiency, higher prices, new technology and alternative fuels could reduce demand for our heating oil and residual oil. Increased conservation and technological advances have adversely affected the demand for home heating oil and residual oil. Consumption of residual oil has steadily declined over the last four decades. We could face additional competition from alternative energy sources as a result of future government-mandated controls or regulations further promoting the use of cleaner fuels. End users who are dual-fuel users have the ability to switch between residual oil and natural gas. Other end users may elect to convert to natural gas, electric heat pumps or other alternative fuels. During a period of increasing residual oil prices relative to the prices of natural gas, dual-fuel customers may switch and other end users may convert to natural gas. During periods of increasing home heating oil prices relative to the price of natural gas, residential users of home heating oil may also convert to natural gas, electric heat pumps or other alternative fuels. As described above, such switching or conversion could have an adverse effect on our financial condition, results of operations and cash available for distribution to our unitholders.

●

Changes in government usage mandates and tax credits could adversely affect the availability and pricing of ethanol and renewable fuels, which could negatively impact our sales. The EPA has implemented a Renewable Fuels Standard (“RFS”) pursuant to the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007. The RFS program seeks to promote the incorporation of renewable fuels in the nation’s fuel supply and, to that end, sets annual quotas for the quantity of renewable fuels (such as ethanol) that must be blended into transportation fuels consumed in the United States. A RIN is assigned to each gallon of renewable fuel produced in or imported into the United States. We are exposed to volatility in the market price of RINs. We cannot predict the future prices of RINs. RIN prices are dependent upon a variety of factors, including EPA regulations related to the amount of RINs required and the total amounts that can be generated, the availability of RINs for purchase, the price at which RINs can be purchased, and levels of transportation fuels produced, all of which can vary significantly from quarter to quarter. If sufficient RINs are unavailable for purchase or if we have to pay a significantly higher price for RINs, or if we are otherwise unable to meet the EPA’s RFS mandates, our results of operations and cash flows could be adversely affected. Future demand for ethanol will be largely dependent upon the economic incentives to blend based upon the relative value of gasoline and ethanol, taking into consideration the EPA’s regulations on the RFS program and oxygenate blending requirements. A reduction or waiver of the RFS mandate or oxygenate blending requirements could adversely affect the availability and pricing of ethanol, which in turn could adversely affect our future gasoline and ethanol sales. In addition, changes in blending

Table of Contents

requirements or broadening the definition of what constitutes a renewable fuel could affect the price of RINs which could impact the magnitude of the mark-to-market liability recorded for the deficiency, if any, in our RIN position relative to our RVO at a point in time. Changes proposed by EPA for the renewable volume obligations may increase the cost to consumers for transportation fuel, which could result in a decline in demand for fuels and lower revenues for our business.

●

Governmental action and campaigns to discourage smoking and use of other products may have a material adverse effect on our revenues and gross profit. Congress has given the FDA broad authority to regulate tobacco and nicotine products, and the FDA, states and some municipalities have enacted and are pursuing enaction of numerous regulations restricting the sale of such products. These governmental actions, as well as national, state and municipal campaigns to discourage smoking, tax increases, and imposition of regulations restricting the sale of flavored tobacco products, e-cigarettes and vapor products, have and could result in reduced consumption levels, higher costs which we may not be able to pass on to our customers, and reduced overall customer traffic. Also, increasing regulations related to and restricting the sale of flavored tobacco products, e-cigarettes and vapor products may offset some of the gains we have experienced from selling these types of products. These factors could materially affect the sale of this product mix which in turn could have an adverse effect on our financial condition, results of operations and cash available for distribution to our unitholders.

●

New, stricter environmental laws and other industry-related regulations or environmental litigation could significantly impact our operations and/or increase our costs, which could adversely affect our results of operations and financial condition. Our operations are subject to federal, state and municipal laws and regulations regulating, among other matters, logistics activities, product quality specifications and other environmental matters. The trend in environmental regulation has been towards more restrictions and limitations on activities that may affect the environment over time. For example, President Biden signed an executive order calling for new or more stringent emissions standards for new, modified and existing oil and gas facilities, and the EPA has released both a proposed rule and a supplemental proposal to that effect. Our businesses may be adversely affected by increased costs and liabilities resulting from such stricter laws and regulations. We try to anticipate future regulatory requirements that might be imposed and plan accordingly to remain in compliance with changing environmental laws and regulations and to minimize the costs of such compliance. Risks related to our environmental permits, including the risk of noncompliance, permit interpretation, permit modification, renewal of permits on less favorable terms, judicial or administrative challenges to permits by citizens groups or federal, state or municipal entities or permit revocation are inherent in the operation of our businesses, as it is with other companies engaged in similar businesses. We may not be able to renew the permits necessary for our operations, or we may be forced to accept terms in future permits that limit our operations or result in additional compliance costs. There can be no assurances as to the timing and type of such changes in existing laws or the promulgation of new laws or the amount of any required expenditures associated therewith. Climate change continues to attract considerable public and scientific attention. In recent years environmental interest groups have filed suit against companies in the energy industry related to climate change. Should such suits succeed, we could face additional compliance costs or litigation risks.

Results of Operations

Evaluating Our Results of Operations

Our management uses a variety of financial and operational measurements to analyze our performance. These measurements include: (1) product margin, (2) gross profit, (3) earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA, (4) distributable cash flow, (5) selling, general and administrative expenses (“SG&A”), (6) operating expenses and (7) degree days.

Product Margin

We view product margin as an important performance measure of the core profitability of our operations. We review product margin monthly for consistency and trend analysis. We define product margin as our product sales minus product costs. Product sales primarily include sales of unbranded and branded gasoline, distillates, residual oil,

Table of Contents

renewable fuels and crude oil, as well as convenience store and prepared food sales, gasoline station rental income and revenue generated from our logistics activities when we engage in the storage, transloading and shipment of products owned by others. Product costs include the cost of acquiring products and all associated costs including shipping and handling costs to bring such products to the point of sale as well as product costs related to convenience store items and costs associated with our logistics activities. We also look at product margin on a per unit basis (product margin divided by volume). Product margin is a non-GAAP financial measure used by management and external users of our consolidated financial statements to assess our business. Product margin should not be considered 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, our product margin may not be comparable to product margin or a similarly titled measure of other companies.

Gross Profit

We define gross profit as our product margin minus terminal and gasoline station related depreciation expense allocated to cost of sales.

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are non-GAAP financial measures used as supplemental financial measures by management and may be used by external users of our consolidated financial statements, such as investors, commercial banks and research analysts, to assess:

●	our compliance with certain financial covenants included in our debt agreements;

●	our financial performance without regard to financing methods, capital structure, income taxes or historical cost basis;

●	our ability to generate cash sufficient to pay interest on our indebtedness and to make distributions to our partners;

●

our 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, gasoline blendstocks, renewable fuels, crude oil and propane, and in the gasoline stations and convenience stores business, 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.

Adjusted EBITDA is EBITDA further adjusted for gains or losses on the sale and disposition of assets and goodwill and long-lived asset impairment charges. EBITDA and Adjusted EBITDA should not be considered as alternatives 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 and Adjusted EBITDA exclude some, but not all, items that affect net income, and these measures may vary among other companies. Therefore, EBITDA and Adjusted 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 our limited partners since it serves as an indicator of our success in providing a cash return on their investment. Distributable cash flow as defined by our partnership agreement is 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 our general partner that are extraordinary or non-recurring in nature and that would otherwise increase distributable cash flow.

Distributable cash flow as used in our partnership agreement also determines our ability to make cash distributions on our incentive distribution rights. The investment community also uses a distributable cash flow metric

Table of Contents

similar to the metric used in our partnership agreement with respect to publicly traded partnerships to indicate whether or not such partnerships have generated sufficient earnings on a current or historical level that can sustain distributions on preferred or common units or support an increase in quarterly cash distributions on common units. Our partnership agreement does not permit adjustments for certain non-cash items, such as net losses on the sale and disposition of assets and goodwill and long-lived asset impairment charges.

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, our distributable cash flow may not be comparable to distributable cash flow or similarly titled measures of other companies.

Selling, General and Administrative Expenses

Our SG&A expenses include, among other things, marketing costs, corporate overhead, employee salaries and benefits, pension and 401(k) plan expenses, discretionary bonuses, non-interest financing costs, professional fees and information technology expenses. Employee-related expenses including employee salaries, discretionary bonuses and related payroll taxes, benefits, and pension and 401(k) plan expenses are paid by our general partner which, in turn, are reimbursed for these expenses by us.

Operating Expenses

Operating expenses are costs associated with the operation of the terminals, transload facilities and gasoline stations and convenience stores used in our businesses. Lease payments, maintenance and repair, property taxes, utilities, credit card fees, taxes, labor and labor-related expenses comprise the most significant portion of our operating expenses. While the majority of these expenses remains relatively stable, independent of the volumes through our system, they can fluctuate depending on the activities performed during a specific period. In addition, they can be impacted by new directives issued by federal, state and local governments.

Degree Days

A “degree day” is an industry measurement of temperature designed to evaluate energy demand and consumption. Degree days are based on how far the average temperature departs from a human comfort level of 65°F. Each degree of temperature above 65°F is counted as one cooling degree day, and each degree of temperature below 65°F is counted as one heating degree day. Degree days are accumulated each day over the course of a year and can be compared to a monthly or a long-term (multi-year) average, or normal, to see if a month or a year was warmer or cooler than usual. Degree days are officially observed by the National Weather Service and officially archived by the National Climatic Data Center. For purposes of evaluating our results of operations, we use the normal heating degree day amount as reported by the National Weather Service at its Logan International Airport station in Boston, Massachusetts.

Table of Contents

Key Performance Indicators

The following table provides a summary of some of the key performance indicators that may be used to assess our results of operations. These comparisons are not necessarily indicative of future results (gallons and dollars in thousands):


	Three Months Ended
	March 31,
	2023		2022
Net income	$	29,031	$	30,485
EBITDA (1)	$	78,147	$	79,837
Adjusted EBITDA (1)	$	76,019	$	74,926
Distributable cash flow (2)(3)	$	46,328	$	49,877
Wholesale Segment:
Volume (gallons)		928,567		976,837
Sales
Gasoline and gasoline blendstocks	$	1,175,623	$	1,420,226
Distillates and other oils (4)(5)		1,283,800		1,357,477
Total	$	2,459,423	$	2,777,703
Product margin
Gasoline and gasoline blendstocks	$	20,386	$	(2,285)
Distillates and other oils (4)(5)		32,747		49,373
Total	$	53,133	$	47,088
Gasoline Distribution and Station Operations Segment:
Volume (gallons)		379,226		376,486
Sales
Gasoline	$	1,185,866	$	1,276,961
Station operations (6)		127,166		115,892
Total	$	1,313,032	$	1,392,853
Product margin
Gasoline	$	120,816	$	114,886
Station operations (6)		62,730		58,097
Total	$	183,546	$	172,983
Commercial Segment:
Volume (gallons)		99,672		116,802
Sales	$	257,872	$	329,982
Product margin	$	8,127	$	8,141
Combined sales and product margin:
Sales	$	4,030,327	$	4,500,538
Product margin (7)	$	244,806	$	228,212
Depreciation allocated to cost of sales		(22,742)		(21,974)
Combined gross profit	$	222,064	$	206,238

GDSO portfolio as of March 31, 2023 and 2022:		2023		2022
Company operated		343		342
Commissioned agents		297		293
Lessee dealers		188		196
Contract dealers		828		858
Total GDSO portfolio		1,656		1,689

Table of Contents


	Three Months Ended
	March 31,
	2023			2022
Weather conditions:
Normal heating degree days		2,870			2,870
Actual heating degree days		2,413			2,768
Variance from normal heating degree days		(16)	%		(4)	%
Variance from prior period actual heating degree days		(13)	%		3	%

(1)	EBITDA and Adjusted EBITDA are non-GAAP financial measures which are discussed above under “—Evaluating Our Results of Operations.” The table below presents reconciliations of EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measures.

(2)

Distributable cash flow is a non-GAAP financial measure which is discussed above under “—Evaluating Our Results of Operations.” As defined by our partnership agreement, distributable cash flow is not adjusted for certain non-cash items, such as net losses on the sale and disposition of assets and goodwill and long-lived asset impairment charges. The table below presents reconciliations of distributable cash flow to the most directly comparable GAAP financial measures.

(3)	Distributable cash flow includes a net gain on sale and disposition of assets of $2.1 million and $4.9 million for the three months ended March 31, 2023 and 2022, respectively.

(4)	Distillates and other oils (primarily residual oil and crude oil).

(5)

Segment reporting results for the three months ended March 31, 2022 have been reclassed within the Wholesale segment to conform to our current presentation. Specifically, results from crude oil previously shown separately are included in distillates and other oils as results from crude oil are immaterial.

(6)	Station operations consist of convenience store and prepared food sales, rental income and sundries.

(7)	Product margin is a non-GAAP financial measure which is discussed above under “—Evaluating Our Results of Operations.” The table above includes a reconciliation of product margin on a combined basis to gross profit, a directly comparable GAAP measure.

Table of Contents

The following table presents reconciliations of EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measures on a historical basis for each period presented (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Reconciliation of net income to EBITDA and Adjusted EBITDA:
Net income	$	29,031	$	30,485
Depreciation and amortization		26,648		26,701
Interest expense		22,068		21,474
Income tax expense		400		1,177
EBITDA		78,147		79,837
Net gain on sale and disposition of assets		(2,128)		(4,911)
Adjusted EBITDA	$	76,019	$	74,926

Reconciliation of net cash (used in) provided by operating activities to EBITDA and Adjusted EBITDA:
Net cash (used in) provided by operating activities	$	(19,325)	$	22,628
Net changes in operating assets and liabilities and certain non-cash items		75,004		34,558
Interest expense		22,068		21,474
Income tax expense		400		1,177
EBITDA		78,147		79,837
Net gain on sale and disposition of assets		(2,128)		(4,911)
Adjusted EBITDA	$	76,019	$	74,926

The following table presents reconciliations of distributable cash flow to the most directly comparable GAAP financial measures on a historical basis for each period presented (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Reconciliation of net income to distributable cash flow:
Net income	$	29,031	$	30,485
Depreciation and amortization		26,648		26,701
Amortization of deferred financing fees		1,347		1,390
Amortization of routine bank refinancing fees		(1,138)		(1,181)
Maintenance capital expenditures		(9,560)		(7,518)
Distributable cash flow (1)(2)		46,328		49,877
Distributions to preferred unitholders (3)		(3,463)		(3,463)
Distributable cash flow after distributions to preferred unitholders	$	42,865	$	46,414

Reconciliation of net cash (used in) provided by operating activities to distributable cash flow:
Net cash (used in) provided by operating activities	$	(19,325)	$	22,628
Net changes in operating assets and liabilities and certain non-cash items		75,004		34,558
Amortization of deferred financing fees		1,347		1,390
Amortization of routine bank refinancing fees		(1,138)		(1,181)
Maintenance capital expenditures		(9,560)		(7,518)
Distributable cash flow (1)(2)		46,328		49,877
Distributions to preferred unitholders (3)		(3,463)		(3,463)
Distributable cash flow after distributions to preferred unitholders	$	42,865	$	46,414

(1)

(2)	Distributable cash flow includes a net gain on sale and disposition of assets of $2.1 million and $4.9 million for the three months ended March 31, 2023 and 2022, respectively.

(3)

Distributions to preferred unitholders represent the distributions payable to the Series A preferred unitholders and the Series B preferred unitholders earned during the period. These distributions are cumulative and payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year.

Table of Contents

Results of Operations

Consolidated Sales

Our total sales were $4.0 billion and $4.5 billion for the three months ended March 31, 2023 and 2022, respectively, a decrease of $0.5 billion, or 11%, primarily due to a decrease in prices and in volume sold. Our aggregate volume of product sold was 1.4 billion gallons and 1.5 billion gallons for the three months ended March 31, 2023 and 2022, respectively, decreasing 62 million gallons (consisting of decreases of 48 million gallons and 17 million gallons in our Wholesale and Commercial segments, respectively, offset by an increase of 3 million gallons in our GDSO segment).

Gross Profit

Our gross profit was $222.1 million and $206.2 million for the three months ended March 31, 2023 and 2022, respectively, an increase of $15.9 million, or 8%. In our GDSO segment, our product margins benefitted from our acquisitions of Consumers Petroleum of Connecticut, Incorporated (“Consumers Petroleum”) on January 25, 2022, Miller Oil Co., Inc. (“Miller Oil”) on February 1, 2022 and Tidewater Convenience, Inc. (“Tidewater”) on September 20, 2022 (collectively, the “2022 Acquisitions”). Our gasoline distribution product margin increased due to higher fuel margins (cents per gallon) and higher volume due to the 2022 Acquisitions. Our station operations product margin increased due to increased activity at our convenience stores, in part due to the 2022 Acquisitions. In our Wholesale segment, our product margins in gasoline and gasoline blendstocks benefitted from more favorable market conditions while distillates and other oils were negatively impacted by less favorable market conditions.

Results for Wholesale Segment

Gasoline and Gasoline Blendstocks. Sales from wholesale gasoline and gasoline blendstocks were $1.2 billion and $1.4 billion for the three months ended March 31, 2023 and 2022, respectively, decreasing $244.6 million, or 17%, due to a decrease in prices and in volume sold. Our gasoline and gasoline blendstocks product margin was $20.4 million and ($2.3 million) for the three months ended March 31, 2023 and 2022, respectively, an increase of $22.7 million, primarily due to more favorable market conditions during the first quarter compared to the first quarter of 2022.

Distillates and Other Oils. Sales from distillates and other oils (primarily residual oil and crude oil ) were $1.3 million and $1.4 million for the three months ended March 31, 2023 and 2022, respectively, decreasing $73.7 million, or 5%, primarily due to a decrease in prices and a decrease in distillate volume sold, offset by an increase in residual oil volume sold. Our product margin from distillates and other oils was $32.7 million and $49.4 million for the three months ended March 31, 2023 and 2022, respectively, a decrease of $16.7 million, or 34%, primarily due to less favorable market conditions in distillates and residual oil, offset by improved margins in crude oil. Our sales, volumes sold and product margins related to weather-sensitive products were negatively impacted for the first quarter in 2023 due to warmer weather. Temperatures were 16% warmer than normal during the first quarter of 2023 and 13% warmer than the first quarter of 2022.

Results for Gasoline Distribution and Station Operations Segment

Gasoline Distribution. Sales from gasoline distribution were $1.2 billion and $1.3 billion for the three months ended March 31, 2023 and 2022, respectively, a decrease of $0.1 billion, or 7%, primarily due to a decrease in prices. Our product margin from gasoline distribution was $120.8 million and $114.9 million for the three months ended March 31, 2023 and 2022, respectively, an increase of $5.9 million, or 5%, primarily due to higher fuel margins (cents per gallon) and higher volume sold due to the 2022 Acquisitions.

Station Operations. Our station operations, which include (i) convenience store and prepared food sales at our directly operated stores, (ii) rental income from gasoline stations leased to dealers or from commissioned agents and from cobranding arrangements and (iii) sale of sundries, such as car wash sales and lottery and ATM commissions, collectively generated revenues of $127.2 million and $115.9 million for the three months ended March 31, 2023 and 2022, respectively, an increase of $11.3 million, or 10%. Our product margin from station operations was $62.7 million

Table of Contents

and $58.1 million for the three months ended March 31, 2023 and 2022, respectively, an increase of $4.6 million, or 8%. The increases in sales and product margin are primarily due to an increase in activity at our convenience stores, including the 2022 Acquisitions.

Results for Commercial Segment

Our commercial sales were $257.9 million and $330.0 million for the three months ended March 31, 2023 and 2022, respectively, a decrease of $72.1 million or 22%, primarily due to a decrease in prices and in volume sold. Our commercial product margin was $8.1 million for each of the three months ended March 31, 2023 and 2022.

Selling, General and Administrative Expenses

SG&A expenses were $62.3 million and $56.3 million for the three months ended March 31, 2023 and 2022, respectively, an increase of $6.0 million, or 11%, including increases of $5.0 million in wages and benefits and $3.1 million in various other SG&A expenses, offset by a decrease of $2.1 million in accrued discretionary incentive compensation.

Operating Expenses

Operating expenses were $108.3 million and $99.2 million for the three months ended March 31, 2023 and 2022, respectively, an increase of $9.1 million, or 9%, largely due to an increase of $8.5 million associated with our GDSO operations, including the 2022 Acquisitions, in part due to higher salary expense and higher rent expense due in part to greater activity at our stores and an increase in maintenance and repair expenses. Operating expenses associated with our terminal operations increased $0.6 million, partially due to an increase in maintenance and repair expenses.

Amortization Expense

Amortization expense related to intangible assets was $2.1 million and $2.5 million for the three months ended March 31, 2023 and 2022, respectively.

Net Gain on Sale and Disposition of Assets

Net gain on sale and disposition of assets was $2.1 million and $4.9 million for the three months ended March 31, 2023 and 2022, respectively, primarily due to the sale of GDSO sites.

Interest Expense

Interest expense was $22.1 million and $21.5 million for the three months ended March 31, 2023 and 2022, respectively, an increase of $0.6 million, or 3%, due in part to lower average balances on our credit facilities, offset by higher interest rates.

Income Tax Expense

Income tax expense was $0.4 million and $1.2 million for the three months ended March 31, 2023 and 2022, respectively. The respective income tax expense predominantly reflects the income tax expense from the operating results of GMG, which is a taxable entity for federal and state income tax purposes.

Liquidity and Capital Resources

Liquidity

Our primary liquidity needs are to fund our working capital requirements, capital expenditures and distributions and to service our indebtedness. Our primary sources of liquidity are cash generated from operations, amounts available

Table of Contents

under our working capital revolving credit facility and equity and debt offerings. Please read “—Credit Agreement” for more information on our working capital revolving credit facility.

Working capital was $177.8 million and $197.8 million at March 31, 2023 and December 31, 2022, respectively, a decrease of $20.0 million. Changes in current assets and current liabilities decreasing our working capital primarily include a decrease of $181.4 million in inventories due do carrying lower levels of inventories and to lower prices, a decrease of $40.6 million in accounts receivable in part due to lower prices and an increase of $93.9 million in the current portion of our working capital revolving credit facility. The decrease in working capital was offset by a decrease of $245.7 million in accounts payable also in part due to lower prices and $41.5 million in accrued expenses and other current liabilities.

Cash Distributions

Common Units

During 2023, we paid the following cash distribution to our common unitholders and our general partner:

(1)	This distribution consists of a quarterly distribution of $0.6350 per unit and a one-time special distribution of $0.9375 per unit. Our general partner agreed to waive its incentive distribution rights with respect to the special distribution.

In addition, on April 25, 2023, the board of directors of our general partner declared a quarterly cash distribution of $0.6550 per unit ($2.62 per unit on an annualized basis) on all of our outstanding common units for the period from January 1, 2023 through March 31, 2023 to our common unitholders of record as of the close of business on May 9, 2023. We expect to pay the total cash distribution of approximately $24.0 million on May 15, 2023.

Preferred Units

During 2023, we paid the following cash distributions to holders of the Series A Preferred Units and the Series B Preferred Units:


	Series A		Series B
	Preferred Units		Preferred Units		Distribution Paid for the
Cash Distribution Payment Date	Total Paid		Total Paid		Quarterly Period Covering
February 15, 2023	$	1.7 million	$	1.8 million	November 15, 2022 - February 14, 2023

In addition, on April 17, 2023, the board of directors of our general partner declared a quarterly cash distribution of $0.609375 per unit ($2.4375 per unit on an annualized basis) on the Series A Preferred Units for the period from February 15, 2023 through May 14, 2023 to our Series A preferred unitholders of record as of the opening of business on May 1, 2023. We expect to pay the total cash distribution of approximately $1.7 million on May 15, 2023.

The board of directors of our general partner also declared a quarterly cash distribution of $0.59375 per unit ($2.375 per unit on an annualized basis) on the Series B Preferred Units for the period from February 15, 2023 through May 14, 2023 to our Series B preferred unitholders of record as of the opening of business on May 1, 2023. We expect to pay the total cash distribution of approximately $1.8 million on May 15, 2023.

Table of Contents

Contractual Obligations

We have contractual obligations that are required to be settled in cash. The amounts of our contractual obligations at March 31, 2023 were as follows (in thousands):


	Payments Due by Period
	Remainder of
Contractual Obligations	2023		Beyond 2023		Total
Credit facility obligations (1)	$	16,807	$	354,174	$	370,981
Senior notes obligations (2)		26,031		994,346		1,020,377
Operating lease obligations (3)		63,991		275,610		339,601
Other long-term liabilities (4)		12,190		57,931		70,121
Financing obligations (5)		11,659		97,933		109,592
Total	$	130,678	$	1,779,994	$	1,910,672

(1)

Includes principal and interest on our working capital revolving credit facility and our revolving credit facility at March 31, 2023 and assumes a ratable payment through the expiration date. Our credit agreement has a contractual maturity of May 6, 2024 and no principal payments are required prior to that date. However, we repay amounts outstanding and reborrow funds based on our working capital requirements. Therefore, the current portion of the working capital revolving credit facility included in the accompanying consolidated balance sheets is the amount we expect to pay down during the course of the year, and the long-term portion of the working capital revolving credit facility is the amount we expect to be outstanding during the entire year. Please read “—Credit Agreement” for more information on our working capital revolving credit facility.

(2)	Includes principal and interest on our senior notes. No principal payments are required prior to maturity. See Note 9 of Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

(3)	Includes operating lease obligations related to leases for office space and computer equipment, land, gasoline stations, railcars and barges.

(4)	Includes amounts related to our brand fee agreement and amounts related to our access right agreements and our pension and deferred compensation obligations.

(5)

Includes lease rental payments in connection with (i) the acquisition of Capitol Petroleum Group (“Capitol”) related to properties previously sold by Capitol within two sale-leaseback transactions; and (ii) the sale of real property assets and convenience stores. These transactions did not meet the criteria for sale accounting and the lease rental payments are classified as interest expense on the respective financing obligation and the pay-down of the related financing obligation. See Note 9 of Notes to Consolidated Financial Statement in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

Capital Expenditures

Our operations require investments to maintain, expand, upgrade and enhance existing operations and to meet environmental and operational regulations. We categorize our capital requirements as either maintenance capital expenditures or expansion capital expenditures. Maintenance capital expenditures represent capital expenditures to repair or replace partially or fully depreciated assets to maintain the operating capacity of, or revenues generated by, existing assets and extend their useful lives. Maintenance capital expenditures also include expenditures required to maintain equipment reliability, tank and pipeline integrity and safety and to address certain environmental regulations. We anticipate that maintenance capital expenditures will be funded with cash generated by operations. We had approximately $9.6 million and $7.5 million in maintenance capital expenditures for the three months ended March 31, 2023 and 2022, respectively, which are included in capital expenditures in the accompanying consolidated statements of cash flows, of which approximately $8.5 million and $7.1 million for the three months ended March 31, 2023 and 2022, respectively, are related to our investments in our gasoline station business. Repair and maintenance expenses associated with existing assets that are minor in nature and do not extend the useful life of existing assets are charged to operating expenses as incurred.

Expansion capital expenditures include expenditures to acquire assets to grow our businesses or expand our existing facilities, such as projects that increase our operating capacity or revenues by, for example, increasing dock capacity and tankage, diversifying product availability, investing in raze and rebuilds and new-to-industry gasoline stations and convenience stores, increasing storage flexibility at various terminals and by adding terminals to our storage network. We have the ability to fund our expansion capital expenditures through cash from operations or our credit

Table of Contents

agreement or by issuing debt securities or additional equity. We had approximately $5.6 million and $9.6 million in expansion capital expenditures, excluding acquired property and equipment, for the three months ended March 31, 2023 and 2022, respectively, primarily related to investments in our gasoline station business.

We currently expect maintenance capital expenditures of approximately $50.0 million to $60.0 million and expansion capital expenditures, excluding acquisitions, of approximately $55.0 million to $65.0 million in 2023, relating primarily to investments in our gasoline station business. These current estimates depend, in part, on the timing of completion of projects, availability of equipment and workforce, weather and unanticipated events or opportunities requiring additional maintenance or investments.

We believe that we will have sufficient cash flow from operations, borrowing capacity under our credit agreement and the ability to issue additional equity and/or debt securities to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures. However, we are subject to business and operational risks that could adversely affect our cash flow. A material decrease in our cash flows would likely have an adverse effect on our borrowing capacity as well as our ability to issue additional equity and/or debt securities.

Cash Flow

The following table summarizes cash flow activity (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Net cash (used in) provided by operating activities	$	(19,325)	$	22,628
Net cash used in investing activities	$	(12,069)	$	(206,800)
Net cash provided by financing activities	$	34,424	$	184,157

Operating Activities

Cash flow from operating activities generally reflects our net income, balance sheet changes arising from inventory purchasing patterns, the timing of collections on our accounts receivable, the seasonality of parts of our businesses, fluctuations in product prices, working capital requirements and general market conditions.

Net cash (used in) provided by operating activities was ($19.3 million) and $22.6 million for the three months ended March 31, 2023 and 2022, respectively, for a period-over-period decrease in cash flow from operating activities of $41.9 million.

Except for net income, the primary drivers of the changes in operating activities include the following (in thousands):


	Three Months Ended
	March 31,
	2023		2022
Decrease (increase) in accounts receivable	$	40,579	$	(114,955)
Decrease in inventories	$	180,867	$	2,229
(Decrease) increase in accounts payable	$	(245,723)	$	112,979

For the three months ended March 31, 2023, the decreases in accounts receivable, inventories and accounts payable are primarily due to the decrease in prices. The decrease in inventories is also partly due to carrying lower levels of inventories during the period.

For the three months ended March 31, 2022, the increases in accounts receivable and accounts payable are largely due to the increase in prices. The decrease in inventories is primarily due to carrying lower levels of inventories during the quarter, offset by the increase in prices.

Table of Contents

Investing Activities

Net cash used in investing activities was $12.1 million for the three months ended March 31, 2023 and included $9.6 million in maintenance capital expenditures, $5.6 million in expansion capital expenditures and $3.9 million in seller note issuances which represent notes we received from buyers in connection with the sale of certain of our gasoline stations. Net cash used in investing activities was offset by $7.0 million in proceeds from the sale of property and equipment.

Net cash used in investing activities was $206.8 million for the three months ended March 31, 2022 and included $214.9 million in acquisitions ($154.7 million for Consumers Petroleum and $60.2 million for Miller Oil), $9.6 million in expansion capital expenditures and $7.5 million in maintenance capital expenditures. Net cash used in investing activities was offset by $25.2 million in proceeds from the sale of property and equipment.

Please read “—Capital Expenditures” for a discussion of our capital expenditures for the three months ended March 31, 2023 and 2022.

Financing Activities

Net cash provided by financing activities was $34.4 million for the three months ended March 31, 2023 and included $93.9 million in net borrowings from our working capital revolving credit facility, offset by $58.9 million in cash distributions to our limited partners (preferred and common unitholders) and our general partner, and $0.5 million in LTIP units withheld for tax obligations and $0.1 million in distribution equivalent rights, both of which are related to awards that vested in 2023.

Net cash provided by financing activities was $184.2 million for the three months ended March 31, 2022 and included $184.6 million in net borrowings from our revolving credit facility, primarily to fund the 2022 Acquisitions offset by payments on our revolving credit facility, and $23.9 million in net borrowing from our working capital revolving credit facility due primarily to the increase in prices, offset by $24.3 million in cash distributions to our limited partners (preferred and common unitholders) and our general partner.

See Note 7 of Notes to Consolidated Financial Statements for supplemental cash flow information related to our working capital revolving credit facility and revolving credit facility.

Credit Agreement

Certain subsidiaries of ours, as borrowers, and we and certain of our subsidiaries, as guarantors, have a $1.55 billion senior secured credit facility. We repay amounts outstanding and reborrow funds based on our working capital requirements and, therefore, classify as a current liability the portion of the working capital revolving credit facility we expect to pay down during the course of the year. The long-term portion of the working capital revolving credit facility is the amount we expect to be outstanding during the entire year. The credit agreement expires on May 6, 2024.

On February 2, 2023, we and certain of our subsidiaries entered into the eighth amendment to the third amended and restated credit agreement (the “Eighth Amendment”) which, among other things, permits us to request up to two reallocations per calendar year of the lending commitments among our facilities under our credit agreement (see “Eighth Amendment to the Credit Agreement” below). On May 2, 2023, we and certain of our subsidiaries entered into the ninth amendment to third amended and restated credit agreement and joinder which, among other things, increases the applicable revolver rate by 25 basis points on borrowings under the revolving credit facility and extends the maturity date from May 6, 2024 to May 2, 2026. All other material terms of the credit agreement remain substantially the same as disclosed in Note 9 of Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022.

Table of Contents

As of March 31, 2023, there were two facilities under the credit agreement:

●

a working capital revolving credit facility to be used for working capital purposes and letters of credit in the principal amount equal to the lesser of our borrowing base and $950.0 million; and

●

a $600.0 million revolving credit facility to be used for general corporate purposes.

Availability under the working capital revolving credit facility is subject to a borrowing base which is redetermined from time to time and based on specific advance rates on eligible current assets. Availability under the borrowing base may be affected by events beyond our control, such as changes in petroleum product prices, collection cycles, counterparty performance, advance rates and limits and general economic conditions.

The average interest rates for the credit agreement were 6.5% and 2.3% for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, we had $247.3 million borrowings outstanding on the working capital revolving credit facility and $99.0 million outstanding on the revolving credit facility. In addition, we had outstanding letters of credit of $43.8 million. Subject to borrowing base limitations, the total remaining availability for borrowings and letters of credit was $1.16 billion and $1.12 billion at March 31, 2023 and December 31, 2022, respectively.

The credit agreement imposes financial covenants that require us to maintain certain minimum working capital amounts, a minimum combined interest coverage ratio, a maximum senior secured leverage ratio and a maximum total leverage ratio. We were in compliance with the foregoing covenants at March 31, 2023.

Please read Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Credit Agreement” in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the credit agreement.

Eighth Amendment to the Credit Agreement

On February 2, 2023, we and certain of our subsidiaries entered into the Eighth Amendment which, among other things, permits us to request up to two reallocations per calendar year (each, a “Reallocation”) of a portion of the working capital revolving credit facility, the working capital interim facility and/or the revolving credit facility to the working capital revolving credit facility, the working capital interim facility and/or the revolving credit facility, as applicable. Each Reallocation shall be in a minimum amount of $50.0 million and, after giving effect to any such Reallocation, the amount of the aggregate commitments shall remain the same.

Pursuant to the terms of the credit agreement, we requested, and the lenders under the credit agreement agreed to, a Reallocation of $150.0 million of the working capital revolving credit facility to the revolving credit facility. After giving effect to such Reallocation, the working capital revolving credit facility is $950.0 million, and the revolving credit facility is $600.0 million.

Senior Notes

We had 7.00% senior notes due 2027 and 6.875% senior notes due 2029 outstanding at March 31, 2023 and December 31, 2022. Please read Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Senior Notes” in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

Financing Obligations

We had financing obligations outstanding at March 31, 2023 and December 31, 2022 associated with historical sale-leaseback transactions that did not meet the criteria for sale accounting. Please read Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—

Table of Contents

Financing Obligations” in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Critical Accounting Policies and Estimates

The significant accounting policies and estimates that we have adopted and followed in the preparation of our consolidated financial statements are detailed in Note 2 of Notes to Consolidated Financial Statements, “Summary of Significant Accounting Policies,” included in our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no material changes in our policies that had a significant impact on our financial condition and results of operations for the periods covered in this report.

During the three months ended March 31, 2023, there has been no material change to our critical accounting estimates discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2022.

Recent Accounting Pronouncements

A description and related impact expected from the adoption of certain new accounting pronouncements is provided in Note 16 of Notes to Consolidated Financial Statements included elsewhere in this report.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss arising from adverse changes in market rates and prices. The principal market risks to which we are exposed are interest rate risk and commodity risk. We currently utilize various derivative instruments to manage exposure to commodity risk.

Interest Rate Risk

We utilize variable rate debt and are exposed to market risk due to the floating interest rates on our credit agreement. Therefore, from time to time, we utilize interest rate collars, swaps and caps to hedge interest obligations on specific and anticipated debt issuances.

As of March 31, 2023, we had total borrowings outstanding under our credit agreement of $346.3 million. Please read Part I, Item 2. “Management’s Discussion and Analysis—Liquidity and Capital Resources—Credit Agreement,” for information on interest rates related to our borrowings. The impact of a 1% increase in the interest rate on this amount of debt would have resulted in an increase in interest expense, and a corresponding decrease in our results of operations, of approximately $3.5 million annually, assuming, however, that our indebtedness remained constant throughout the year.

Commodity Risk

We hedge our exposure to price fluctuations with respect to refined petroleum products, renewable fuels, crude oil and gasoline blendstocks in storage and expected purchases and sales of these commodities. The derivative instruments utilized consist primarily of exchange-traded futures contracts traded on the NYMEX, CME and ICE and over-the-counter transactions, including swap agreements entered into with established financial institutions and other credit-approved energy companies. Our policy is generally to purchase only products for which we have a market and to structure our sales contracts so that price fluctuations do not materially affect our profit. While our policies are designed to minimize market risk, as well as inherent basis risk, exposure to fluctuations in market conditions remains. Except for the controlled trading program discussed below, we do not acquire and hold futures contracts or other derivative products for the purpose of speculating on price changes that might expose us to indeterminable losses.

Table of Contents

While we seek to maintain a position that is substantially balanced within our commodity product purchase and sales activities, we may experience net unbalanced positions for short periods of time as a result of variances in daily purchases and sales and transportation and delivery schedules as well as other logistical issues inherent in our businesses, such as weather conditions. In connection with managing these positions, we are aided by maintaining a constant presence in the marketplace. We also engage in a controlled trading program for up to an aggregate of 250,000 barrels of commodity products at any one point in time. Changes in the fair value of these derivative instruments are recognized in the consolidated statements of operations through cost of sales. In addition, because a portion of our crude oil business may be conducted in Canadian dollars, we may use foreign currency derivatives to minimize the risks of unfavorable exchange rates. These instruments may include foreign currency exchange contracts and forwards. In conjunction with entering into the commodity derivative, we may enter into a foreign currency derivative to hedge the resulting foreign currency risk. These foreign currency derivatives are generally short-term in nature and not designated for hedge accounting.

We utilize exchange-traded futures contracts and other derivative instruments to minimize or hedge the impact of commodity price changes on our inventories and forward fixed price commitments. Any hedge ineffectiveness is reflected in our results of operations. We utilize regulated exchanges, including the NYMEX, CME and ICE, which are exchanges for the respective commodities that each trades, thereby reducing potential delivery and supply risks. Generally, our practice is to close all exchange positions rather than to make or receive physical deliveries.

At March 31, 2023, the fair value of all of our commodity risk derivative instruments and the change in fair value that would be expected from a 10% price increase or decrease are shown in the table below (in thousands):


	Fair Value at		Gain (Loss)
	March 31,		Effect of 10%		Effect of 10%
	2023		Price Increase		Price Decrease
Exchange traded derivative contracts	$	6,657	$	(25,362)	$	25,362
Forward derivative contracts		10,170		(8,726)		8,726
Total	$	16,827	$	(34,088)	$	34,088

The fair values of the futures contracts are based on quoted market prices obtained from the NYMEX, CME and ICE. The fair value of the swaps and option contracts are estimated based on quoted prices from various sources such as independent reporting services, industry publications and brokers. These quotes are compared to the contract price of the swap, which approximates the gain or loss that would have been realized if the contracts had been closed out at March 31, 2023. For positions where independent quotations are not available, an estimate is provided, or the prevailing market price at which the positions could be liquidated is used. All hedge positions offset physical exposures to the physical market; none of these offsetting physical exposures are included in the above table. Price-risk sensitivities were calculated by assuming an across-the-board 10% increase or decrease in price regardless of term or historical relationships between the contractual price of the instruments and the underlying commodity price. In the event of an actual 10% change in prompt month prices, the fair value of our derivative portfolio would typically change less than that shown in the table due to lower volatility in out-month prices. We have a daily margin requirement to maintain a cash deposit with our brokers based on the prior day’s market results on open futures contracts. The balance of this deposit will fluctuate based on our open market positions and the commodity exchange’s requirements. The brokerage margin balance was $19.0 million at March 31, 2023.

We are exposed to credit loss in the event of nonperformance by counterparties to our exchange-traded derivative contracts, physical forward contracts, and swap agreements. We anticipate some nonperformance by some of these counterparties which, in the aggregate, we do not believe at this time will have a material adverse effect on our financial condition, results of operations or cash available for distribution to our unitholders. Exchange-traded derivative contracts, the primary derivative instrument utilized by us, are traded on regulated exchanges, greatly reducing potential credit risks. We utilize major financial institutions as our clearing brokers for all NYMEX, CME and ICE derivative transactions and the right of offset exists with these financial institutions. Accordingly, the fair value of our exchange-traded derivative instruments is presented on a net basis in the consolidated balance sheet. Exposure on physical forward contracts and swap agreements is limited to the amount of the recorded fair value as of the balance sheet dates.

Table of Contents

Item 4.Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that the information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Under the supervision and with the participation of our principal executive officer and principal financial officer, management evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Exchange Act). Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were operating and effective as of March 31, 2023.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II. OTHER INFORMATION

Item 1.Legal Proceedings

The information required by this item is included in Note 15 of Notes to Consolidated Financial Statements and is incorporated herein by reference.

Item 1A.Risk Factors

In addition to other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, which could materially affect our business, financial condition or future results.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 6.Exhibits

(a)

Exhibits


3.1	—	Certificate of Limited Partnership of Global Partners LP (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed on May 10, 2005).

3.2	—	Fifth Amended and Restated Agreement of Limited Partnership of Global Partners LP dated as of March 24, 2021 (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on March 24, 2021).

4.1	—	Indenture, dated as of July 31, 2019, among the Issuers, the Guarantors and Deutsche Bank Trust Company Americas, as trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on July 31, 2019).

4.2	—	Indenture, dated October 7, 2020, among the Issuers, the Guarantors and Regions Bank, as trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on October 8, 2020).

4.3	—	First Supplemental Indenture, dated as of October 28, 2020, among the Issuers, the Guarantors and Regions Bank, as trustee (incorporated herein by reference to Exhibit 4.3 to the Registration Statement on Form S-4 filed on December 16, 2020).

4.4	—	First Supplemental Indenture, dated as of October 28, 2020, among the Issuers, the Guarantors and Regions Bank, as successor to Deutsche Bank Trust Company Americas, as trustee (incorporated herein by reference to Exhibit 4.5 to the Registration Statement on Form S-4 filed on December 16, 2020).

Table of Contents


10.1*#		Third Amended and Restated Credit Agreement, dated as of April 25, 2017, among Global Operating LLC, Global Companies LLC, Global Montello Group Corp., Glen Hes Corp., Chelsea Sandwich LLC, GLP Finance Corp., Global Energy Marketing LLC, Global CNG LLC, Alliance Energy LLC, Cascade Kelly Holdings LLC and Warren Equities, Inc. as borrowers, Bank of America, N.A., as Administrative Agent, Swing Line Lender, Alternative Currency Fronting Lender and L/C Issuer, JPMorgan Chase Bank, N.A. as an L/C Issuer, JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. as Co-Syndication Agents, Citizens Bank, N.A., Societe Generale, BNP Paribas and The Bank of Tokyo-Mitsubishi UFJ, Ltd. NY Branch as Co-Documentation Agents, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, JPMorgan Chase Bank, N.A., Wells Fargo Securities, LLC, Citizens Bank N.A., Societe Generale, BNP Paribas, and The Bank of Tokyo-Mitsubishi UFJ, Ltd. NY Branch as Joint Lead Arrangers and Joint Book Managers.

10.2	—	Eighth Amendment to Third Amended and Restated Credit Agreement, dated February 2, 2023 (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on February 7, 2023).

10.3#	—	Ninth Amendment to Third Amended and Restated Credit Agreement and Joinder, dated May 2, 2023 (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on May 3, 2023).

31.1*	—	Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer of Global GP LLC, general partner of Global Partners LP.

31.2*	—	Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer of Global GP LLC, general partner of Global Partners LP.

32.1†	—	Section 1350 Certification of Chief Executive Officer of Global GP LLC, general partner of Global Partners LP.

32.2†	—	Section 1350 Certification of Chief Financial Officer of Global GP LLC, general partner of Global Partners LP.

101.INS*	—	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH*	—	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	—	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	—	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	—	Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE*	—	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*	—	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

* Filed herewith.

# Schedules and similar attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Partnership undertakes to furnish supplementally copies of any of the omitted schedules and exhibits upon request by the U.S. Securities and Exchange Commission.

† Not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	GLOBAL PARTNERS LP
	By:	Global GP LLC,
		its general partner


Dated: May 5, 2023		By:	/s/ Eric Slifka
			Eric Slifka
			President and Chief Executive Officer
			(Principal Executive Officer)


Dated: May 5, 2023		By:	/s/ Gregory B. Hanson
			Gregory B. Hanson
			Chief Financial Officer
			(Principal Financial Officer)

Global Partners (NYSE:GLP)
Historical Stock Chart
Von Apr 2024 bis Mai 2024

Click Here for more Global Partners Charts.

Global Partners (NYSE:GLP)
Historical Stock Chart
Von Mai 2023 bis Mai 2024

Distribution Paid for the

Cash Distribution Payment Date

Total Paid

Quarterly Period Ended

February 14, 2023 (1)

55.4 million

Fourth quarter 2022