Global Partners LP

Q2 2026 net income was $71 million versus $25.2 million in Q2 2025. EBITDA was $146 million versus $95.7 million, adjusted EBITDA was $148.2 million versus $98.2 million, distributable cash flow was $92.6 million versus $52 million, and adjusted DCF was $92.5 million versus $52.3 million. GDSO product margin increased $37.3 million to $245.2 million, including gasoline distribution margin up $37.1 million to $175 million and fuel margin rising to $0.50 per gallon from $0.36. Wholesale product margin increased $14.8 million to $106.5 million, and commercial product margin increased $4.4 million to $10.5 million. Operating expenses were $136.8 million, SG&A was $83 million, and interest expense was $33.1 million. CapEx was $35 million in the quarter, including $15.9 million maintenance and $19.1 million expansion. For full-year 2026, maintenance CapEx is expected at $60 million to $70 million and expansion CapEx excluding acquisitions at $75 million to $85 million. Leverage was 2.85x at June 30, with $174.6 million outstanding on the working capital revolver and $103.5 million outstanding on the revolving credit facility. The board approved a quarterly cash distribution of $0.78 per common unit, or $3.12 annualized.

Eric Slifka said the quarter showed the strength of Global’s integrated liquid energy platform and diversification across products, markets, and customers. He emphasized that the company’s model can generate steady cash flow while also capturing upside when markets are dynamic, and said the balance sheet and asset base position Global well for the rest of 2026 and beyond. On capital allocation, he reiterated a focus on investing thoughtfully and targeting the highest-return opportunities.

Gregory Hanson highlighted that the quarter benefited from strong year-over-year margin improvement across segments and that coverage remained strong at 2.25x, or 2.19x including preferred distributions. He noted that operating expenses rose modestly and SG&A increased to $83 million mainly from incentive comp, wages, and benefits, while interest expense fell to $33.1 million due partly to lower average credit facility balances. He also pointed to a strong balance sheet, 2.85x leverage, ample bank capacity, and said redeeming the Series B preferred units was accretive and simplified the capital structure.

Analysts asked whether higher prices were affecting consumer behavior, and management said they are seeing only a slight impact: smaller fill-ups and some trading down from 93 octane to 87 octane, but nothing material in store sales or transactions, including through the first month of Q3. On the preferred redemption, management said it was driven by the 9.5% fixed cost, strong year-to-date excess cash flow, and a desire to simplify the capital structure, while still leaving open the possibility of using pref or equity for future acquisitions. On M&A, Eric Slifka said the deal environment is busy and that Global will pursue assets that fit its platform and where it can be the high bidder.