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Q3 2014 Investor Presentation
Global Partners LP (NYSE: GLP)
Q4 2014 Investor Presentation
2
Forward-Looking Statements
Some of the information contained in this presentation may contain forward-looking statements. Forward-looking statements include,
without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may
contain the words “may,” “believe,” “should,” “could,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “continue,” “will likely result,” or
other similar expressions. In addition, any statement made by Global Partners LP’s management concerning future financial
performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible actions by
Global Partners LP or its subsidiaries are also forward-looking statements.
Although Global Partners LP believes these forward-looking statements are reasonable as and when made, there may be events in the
future that Global Partners LP is not able to predict accurately or control, and there can be no assurance that future developments
affecting Global Partners LP’s business will be those that it anticipates. Estimates for Global Partners LP’s future EBITDA are based
on assumptions regarding market conditions such as demand for petroleum products and renewable fuels, commodity prices,
weather, credit markets, the regulatory and permitting environment, and the forward product pricing curve, which could influence
quarterly financial results. Therefore, Global Partners LP can give no assurance that its future EBITDA will be as estimated.
For additional information about risks and uncertainties that could cause actual results to differ materially from the expectations Global
Partners LP describes in its forward-looking statements, please refer to Global Partners LP’s Annual Report on Form 10-K and
subsequent filings the Partnership makes with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are
made. Global Partners LP expressly disclaims any obligation or undertaking to update forward-looking statements to reflect any change
in its expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based.
3
Use of Non-GAAP Financial Measures
This presentation contains non-GAAP financial measures relating to Global Partners. A reconciliation of these measures to the most directly comparable GAAP measures is available in the Appendix to this presentation. For additional detail regarding selected items i mpacting comparability, please visit the Investor Relations section of Global Partners’ website at www.globalp.com.
EBITDAEarnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure used as a supplemental financial measure by management and external users of Global Partners' consolidated financial statements, such as investors, commercial banks and research analysts, to assess the Partnership's: • compliance with certain financial covenants included in its debt agreements; • financial performance without regard to financing methods, capital structure, income taxes or historical cost basis; • ability to generate cash sufficient to pay interest on its indebtedness and to make distributions to its partners; • operating performance and return on invested capital as compared to those of other companies in the wholesale, marketing, storing and distribution
of refined petroleum products, renewable fuels and crude oil, without regard to financing methods and capital structure; and • the viability of acquisitions and capital expenditure projects and the overall rates of return of alternative investment opportunities.
EBITDA should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA excludes some, but not all, items that affect net income, and this measure may vary among other companies. Therefore, EBITDA may not be comparable to similarly titled measures of other companies.
Distributable Cash FlowDistributable cash flow is an important non-GAAP financial measure for Global Partners' limited partners since it serves as an indicator of the Partnership's success in providing a cash return on their investment. Distributable cash flow means the Partnership's net income plus depreciation and amortization minus maintenance capital expenditures, as well as adjustments to eliminate items approved by the audit committee of the Board of Directors of the Partnership's general partner that are extraordinary or non-recurring in nature and that would otherwise increase distributable cash flow. Specifically, this financial measure indicates to investors whether or not the Partnership has generated sufficient earnings on a current or historic level that can sustain or support an increase in its quarterly cash distribution. Distributable cash flow is a quantitative standard used by the investment community with respect to publicly traded partnerships. Distributable cash flow should not be considered as an alternative to net income, operating income, cash flow from operations, or any other measure of financial performance presented in accordance with GAAP. In addition, Global Partners' distributable cash flow may not be comparable to distributable cash flow or similarly titled measures of other companies.
4
Global Partners at a Glance
• Master limited partnership engaged in midstream logistics and marketing
• Leading wholesale distributor of petroleum products
• One of the largest terminal networks of petroleum products and
renewable fuels in the Northeast
• One of the largest independent owners, suppliers and operators of
gasoline stations and convenience stores in the Northeast
• Leader in the purchasing, selling and logistics of transporting domestic
and Canadian crude oil and other energy products by rail
• “Virtual pipeline” connecting producing regions to demand centers on
the East, West and Gulf Coasts (pending Kansas City Southern project in
Port Arthur, TX)
5
Key Investment Considerations
Critical Logistics and
Infrastructure Serving
Prolific But
Constrained Markets
Diverse Product
and Asset Mix
Strong Financial
Profile & Increasing
Distributable Cash Flow
Experienced
Management Team
6
Vision
“Leadership in gathering, storage,
transportation and marketing of refined
petroleum products, crude oil, renewable fuels,
natural gas and propane.”
7
Global’s DNA: Sourcing, Logistics & Marketing
Origin Delivery Destination
“Virtual Pipeline”
Gathering Transportation Storage
Integrated Marketing
Retail Wholesale Distribution
Alltow photo
C-Store Operations
8
Uniquely Positioned in U.S. Energy Market
Refined Petroleum Bulk Product Terminals
Barrels of Storage Capacity
Barrels of Product Throughput Daily
Gas Stations Owned, Leased or Supplied
25
11.7M
415K
1,500*
*Data as of January 2015
**Included in the 1,500 total gas stations
~270** Company-owned Convenience Stores
9
Global Meets the Northeast’s Daily Energy Needs
Gasoline
Diesel fuel
Heating oil
As of 12/31/2014 (prior to acquisition of Warren Equities)
874K
20K
45K
Automobile tanks filled/day
Diesel trucks filled/day
Homes heated/day in winter
10
Growth in Bakken Oil Production Crude Moved by Rail From Williston Basin
Source: North Dakota Pipeline Authority Source: North Dakota Pipeline Authority
Refining Capacity by Region U.S. Oil and Liquid Fuels Production (mm bpd)
Source: Bloomberg, EIA
Global has the only single-line haul rail from the North
Dakota Bakken region to both the East and West coasts
– a “Virtual Pipeline” –
Region
Refining Capacity
(mm bpd)
Imported Crude
(mm bpd)
Imports as a
Percent of PADD
PADD I 1.27 0.64 50.39%
PADD II 3.80 2.22 58.42%
PADD III 9.17 3.02 32.93%
PADD IV 0.65 0.30 46.15%
PADD V 2.91 1.03 35.40%
Total 17.80 7.21 40.51%
0
100
200
300
400
500
600
700
800
900
1,000
1,100
Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14
Dai
ly P
rodu
ctio
n (0
00 b
bls
per
day)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14
Ave
rage
Rai
l Car
load
s pe
r M
onth
Source: U.S. Energy Information Administration
Positioned to Benefit From Domestic Energy Resurgence
0
4
8
12
16
Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
Total production Production forecast
11
History of Growth
2007 2008 2009 2010 2011 2012
Acquired three
terminals
from ExxonMobil
Acquired two
terminals
from ExxonMobil
Completed Port of
Providence
terminal project
Organic terminal
projects in
Albany, NY
Oyster Bay, NY
Philadelphia, PA
Launched offshore
bunkering service
2013 2014
Albany Ethanol Expansion
Project with CP Railway
Acquired Warex
terminals
Acquired
Mobil Stations
Contracted to supply
150M gallons to other
Mobil distributors
Receipt, storage and
distribution of Bakken crude
oil at Global Albany
Acquired
Alliance Energy
Getty Realty
Agreement
Completed 100,000 barrel
storage tank
in Columbus, ND
Acquired
Basin Transload
Completed
Global Albany
rail expansion
Acquired
CPBR Facility
Opened propane
facility in Albany
Signed pipeline connection
agreements with Tesoro and
Meadowlark
Agreement with KCS to
develop terminal in
Port Arthur, TX
~$1.6 Billion in Acquisitions and Investments
2015
Acquired
Warren Equities
Acquired Boston
Harbor Terminal
12
Diversified Business Mix
Wholesale
49%
Gasoline Distribution and
Station Operations
46%
Commercial
5%
2014 Product Margin by Business Segment
$604.0M
Wholesale
84%
Commercial
16%
2005 Product Margin by Business Segment
$93.4M
Wholesale
Distillates
45%
Wholesale
Gasoline
15%
Wholesale
Residual Oil
24%
Wholesale
Crude
24%
Wholesale
Distillates &
Residual Oil
13%
Wholesale
Gasoline
12%
Gasoline
Distribution
31%
Rent &
C-Store
15%
13
Vertical Integration
Crude Oil
Refinery
Tanker
Barge
Pipeline
Truck
Storage Facilities
Truck
Rail
Refinery
Wholesale “Rack”
Retail
Consumer
Rail
Gas station
Wholesale Commercial Gasoline Distribution & Station Operations
Commercial
IndustrialBarge
14
Wholesale and Commercial
Business overview
• Bulk purchase, movement, storage and
sale of:
– Gasoline and gasoline blendstocks
– Crude oil
– Other oils and related products
• Customers
– Unbranded gasoline distributors and
transportation fuel resellers
– Home heating oil retailers
– Refiners
CommercialWholesale
Business overview
• Sales and deliveries to end user customers of:
– Unbranded gasoline
– Heating oil, kerosene, diesel and residual fuel
– Natural gas
– Bunker fuel
• Customers
– Government agencies
– States, towns, municipalities
– Large commercial clients
– Shipping companies
15
Global has 10.8 million bbls of terminal capacity in the Northeast
Estimated market share1
Wholesale Terminals – Northeast
1 Based on terminal capacity (bbls in 000s)
Source: OPIS/Stalsby Petroleum Terminal Encyclopedia,
2013, various marketing materials and Company data
Newburgh, NY: 429K bbls
Albany, NY: 1,402K bbls
Newburgh-Warex, NY: 956K bbls
Commander/Oyster Bay, NY: 134K bbls
Port of Providence, RI: 480K bbls
Sandwich, MA: 99K bbls
Chelsea, MA: 685K bbls
Revere, MA: 2,097K bbls
Portland, ME: 665K bbls
Burlington, VT: 419K bbls
Inwood, NY: 322K bbls
Glenwood Landing, NY: 98K bbls
Wethersfield, CT: 183K bbls
Bridgeport, CT: 110K bbls
Key to Terminal Type
Distillate
Ethanol
Gasoline/Distillate/Ethanol
Residual/Distillate
Residual/Distillate/Biofuel
Distillate/Biofuel
Gasoline/Distillate/Ethanol/Crude
Propane/Butane
Crude Macungie, PA: 170K bbls
Staten Island, NY: 287K bbls
Philadelphia, PA: 159K bbls
Bayonne, NJ: 371K bbls
Springfield, MA: 54K bbls
Location Est. market capacity GLP capacity GLP % of total
Newburgh, NY 2,755 1,385 50%
Western Long Island, NY 769 554 72%
Boston Harbor, MA 9,774 2,782 28%
Vermont 430 419 97%
Providence, RI 4,455 480 9%
Albany/Rensselaer, NY 9,558 1,402 15%
Riverhead, NY: 1,630K bbls
Albany, NY: 24K bbls
16
Unique Origin-to-Destination Assets Form System’s Backbone
Basin Columbus, ND (CP)
Clatskanie, OR Terminal
Albany, NY TerminalBasin Beulah, ND (BNSF)
Storage capacity = 726K barrelsStorage capacity = 200K barrels Storage capacity = 510K barrels
Port Arthur, TX Terminal(expected in 2017)
Initial storage capacity = 1,050K barrels
17
Albany Terminal Critical Link in North American Infrastructure
• Albany terminal is gateway to efficient and cost-
effective receipt, storage and delivery of crude oil
and other products
• Relationship with Canadian Pacific (CP) provides
significant routing flexibility
– Intermodal terminal linked via single line haul to CP
– Enables two 120-car unit trains to be offloaded in a
24 hour period
– Rail expansion more than tripled terminal intake capacity to
approximately 160,000 bbls/day
– Averaging just 4 to 5 days one-way per train shipment
• Established infrastructure links Global to energy
producing regions across North America
– Transload facility in North Dakota’s Bakken region
– Product shipped by barge from Albany to East Coast refiners
18
Logistical Advantages
Our network of terminals is a gateway for the receipt, storage and
distribution of refined petroleum products, renewable fuels and crude oil
Our wholesale storage, terminaling, marketing and logistics
serve refiners and other customers across the country
Strategically located, intermodal terminals provide an
efficient and a cost-effective mechanism to move product
in and out of our system
Expansive Asset Network
Built-in Market Clearing – Intermodal Options
Optimization and Efficiency – Terminals & Stations
Virtual Pipeline SolutionEfficiency of single line haul on Canadian Pacific and BNSF
is a competitive differentiator in our shipment of crude oil and
associated products
19
Where We Source Barrels
=== Denotes CP and BNSF rail routes to GLP facilities
T
T
T
T
TPort Arthur Terminal
(expected in 2017)
Edmonton, AB, Canada
Kansas City, MO
=== Denotes KCS rail route to proposed GLP facility
Imports from
Canada
Imports from
Europe
Key to Terminal Type
Distillate
Ethanol
Gasoline/Distillate/Ethanol
Residual/Distillate
Residual/Distillate/Biofuel
Propane/Butane
Distillate/Biofuel
Crude
Crude/Ethanol
Gasoline/Distillate/Ethanol/Crude
Transload facilityT
Imports from
Other Countries
Imports from U.S.
Virgin Islands and
other Caribbean
Countries
20
Leveraging our Wholesale Segment to Drive Growth –
Key Initiatives
• 1,050,000 barrels of initial storage capacity with expansion opportunities
• Approximate investments of $75 million to $125 million
Development of Gulf Coast petroleum products and renewable energy terminal
• Pursuing storage expansion from 200,000 barrels to 600,000 barrels; ability to run crude transload and
ethanol facility simultaneously
• Approximate investments of $75 million to $100 million
• Expanding crude oil gathering capabilities in Bakken through pipeline connections
• Ongoing construction of 176,000 barrels of additional storage capacity in Columbus, ND, which will
increase the total North Dakota storage capacity to 726,000 barrels
Build-out of Mid-Continent assets
Expansion of West Coast terminal – CPBR
21
Mid-Continent Assets Form Core of ‘Virtual Pipeline’
• Basin Columbus, ND (CP)– Economically advantaged single-line long-haul to Albany
– 270,000-barrel storage capacity with truck-and-rail off-loading rack
– Construction of 176,000 barrels of additional storage expected to be completed in Q2 2015,
which will increase total ND storage capacity to 726,000 barrels
• Basin Beulah, ND (BNSF)
– Direct long-haul service to West and Gulf Coasts
– 280,000-barrel storage capacity with truck-and-rail off-loading system
• Pipeline Connections – Tesoro High Plains Pipeline System (THPP)
– Basin Columbus to THPP
– Basin Beulah to THPP
– Connection to Columbus and Beulah provides customers with optionality to move product to
either facility
– Meadowlark Midstream Partners’ Divide Gathering System
– Basin Columbus to the Divide Gathering System (to be commissioned in Q4 2015)
22
West Coast Destination Asset: Clatskanie, OR
• Located on the Columbia River approximately
50 miles from open water
• Approximately 4 days transit by rail from
Edmonton
• Infrastructure– Two 100,000 barrel tanks
– Pipeline from offloading to tanks
– Pipeline from tanks to dock loading
– Multiple unloading stations
– Permitted for both crude transloading and ethanol
manufacturing
– Served by BNSF via connections with CP and CN
– Capacity for handling 115-car unit trains
• Largest West Coast ethanol plant – 120M gallons per year ethanol capacity
– Only U.S. ethanol facility located on deep-water
port with direct-ocean access via deep-water river
system
23
Port Arthur Terminal Provides Access to Gulf Coast Capacity
• Global will design, build and operate unit train petroleum products and renewable energy terminal– Agreement with Kansas City Southern (KCS)
– KCS connects with all other Class I railroads in North America
– Terminal will initially handle heavy crude from Canada
– 1,050,000 barrels of initial storage capacity
– Expansion capabilities for distillates, renewable fuels and NGLs
– Designed to handle up to two unit trains per day with expansion capacity up to six unit trains per day
– Dock capable of handling Aframax-size vessels
– Potential to accommodate as much as nine million barrels of storage
– Expected to be in service in 2017
Port Arthur
24
Organization of GDSO Segment
Company Operated Stores
Commission Agents
Dealer Leased
Contract Dealers
273
272
216
641Mobil Brand Fee Agreement129
Data as of January 2015
25
One of the Largest Operators of Gasoline Stations and
Convenience Stores in the Northeast
• Large gasoline station and C-store portfolio*
–~1,500 locations in 10 states
–~270 company-operated locations
–Brands include Mobil, CITGO, Shell, Gulf and Sunoco
• Major focus on new-to-industry and organic
projects
–Retail site development and expansion
–Merchandising and rebranding
–Co-branding initiatives
• Acquisition of Warren Equities, Inc.
–Strengthens footprint in the Northeast
–Expands presence to Mid-Atlantic
*Data as of January 2015
26
Growth Through Organic Initiatives
• Opened 7 R&Rs on the Connecticut Turnpike
• Integrated 11 Mass. Turnpike locations
Raze and Rebuild (R&R) Projects in 2014
• Optimizing store mix
• Leveraging our vendor relationships and related buying power
• Introducing new healthy food options
• Strengthening co-branding alliances
Merchandising Programs
27
GDSO Segment is Downstream Link in Vertically Integrated
Supply Chain
• Supply to ~1,500 stations in total
• Control ~760 properties through fee or lease
―Operate ~270 of these as company
operated locations
NH, 9.4%
PA, 5.7%
ME,
3.7%RI, 5%
NJ, 0.4%; VA, 0.3%; VT, 0.1%
MA, 26%
NY, 27%
CT, 24%
**Source NPN Magazine Market Facts 2013 and Company data
• Annuity business: Rental income from Dealer
Leased and Commission Agents
• Vertical integration: Integration between supply,
terminaling and wholesale businesses and gas
station sites
• Scale: ~1,500 sites with volume of ~1.5 billion gallons
• Best in class locations: Preeminent locations in
Northeast
• Diversification: Flexible diversity of model, site
geography and site brand
Percentage of Sites by State**
Strategic Advantages Segment Profile*
MD,
1.7%
*Data as of January 2015
28
Warren Equities is Transformative Acquisition for Global’s
Retail Platform
• Completed in January 2015
• Meaningfully expands scale while providing significant operational synergies and strategic options
• Strong footprint across 10 states in the Northeast U.S. with the majority of its stores primarily
concentrated in MA, CT and NY
• Operates 147 retail gasoline sites and Xtra Mart convenience stores, markets fuel through 53
commission agent locations and supplies fuel to ~320 dealers
• Sells ~500 million gallons of fuel annually through ~520 retail locations
• Projected EBITDA:
– Accretive in first full year of operations
– Second full year of operations: $50 million to $60 million
29
Key Benefits of Warren Transaction
Strategic and geographic fit
Increased scale and operating synergies
Strong real estate portfolio
Regionally recognized C-store and multi-branded fuel supplier
Quick-service restaurant presence at 37 locations
Expands geographic presence to Mid-Atlantic
30
Retail Footprint with Warren Equities
Site Type Global Warren Total
Company Operated 126 147 273
CommissionAgents 219 53 272
Dealer Leased 196 20 216
TOTAL 541 220 761
Contract Dealers 342 299 641
Mobil Brand Fee Agreement 129 129
TOTAL 1,012 519 1,531
Key Business Metrics* Global Warren Total
Motor Fuel Sales (million gallons) 1,001.6 497.1 1,498.7
*Metricsare basedon current run-rate
Existing Global locations
Warren locations
Data as of January 2015
Financial Summary
32
2014 Financial Performance
($ in millions, except per unit data) Q4 2013 Q4 2014 FY 2013 FY 2014
Gross profit $134.9 $141.5 $405.8 $542.6
Net income attributable to GLP $34.0 $27.9 $42.6 $114.7
Net income per limited partner unit $1.20 $0.93 $1.42 $3.95
EBITDA $64.9 $61.9 $157.4 $242.3
Maintenance capex $1.8 $5.6 $11.0 $34.1
DCF $52.5 $44.4 $105.2 $161.2
Please refer to Appendix for reconciliation of non-GAAP items
Full-year 2015 EBITDA guidance of $205M to $225M (as of 3/12/2015)
Record full year net income, EBITDA, and DCF driven in part by:
• Unusually favorable market conditions in gasoline blendstocks in Q1 2014
• Cold weather
• Rapidly declining gasoline prices in 2H 2014
33
Strong Financial Profile & Increasing Distributable Cash Flow
• Track record of growth and profitability with increasing EBITDA and DCF
• 37 consecutive quarterly cash distributions since IPO in October 2005
• Current distribution of $0.6650 per unit ($2.66 per unit annualized)
+169%
FY 2014
Net Income
$114.7
+54%
EBITDA
$242.3
+53%
DCF
$161.2
+31%
Product Margin
$604.0
($ in millions)
Denotes % change from FY 2013
Please refer to Appendix for reconciliation of non-GAAP items
34
Diversified Product Margin
Product Margin by Business Segment
FY 2014
$604.0M
Wholesale
49%
Gasoline Distribution
& Station Operations
46%
Commercial
5%
Wholesale
Crude
24%
Wholesale
Distillates &
Residual
13%
Wholesale
Gasoline
12%
Gasoline
Distribution
31%
Rent &
C-Store
15%
Please refer to Appendix for reconciliation of non-GAAP items
35
$67 $72 $86
$136
$157
$242
$0.020 $0.020 $0.016
$0.022 $0.023
$0.038
2009 2010 2011 2012 2013 2014
$161 $182
$234
$370
$461
$604
$0.047 $0.050 $0.045
$0.061 $0.066
$0.095
2009 2010 2011 2012 2013 2014
Please refer to Appendix for reconciliation of non-GAAP items
Product Margin
($ in millions, except cents per gallon)
EBITDA
($ in millions, except cents per gallon)
Financial Growth with Consistent Profitability
36
Volume and Margin
• Consistency/Repeatability– Driving cars & trucks
– Heating buildings and homes
– Term contracts
– Rental income and C-Store sales
• Variability– Market and economic conditions
– Weather
– Seasonality
* Retail excludes C-store margin and rent.
Product Margin (cents per gallon)
4.6 4.0 3.74.7 5.0 4.5
6.1 6.6
9.5
12.814.6 14.3
18.4
0
5
10
15
20
2006 2007 2008 2009 2010 2011 2012 2013 2014
Total CPG Retail CPG*
Crude logistics and
retail have driven
margin expansion
37
Period DCF Coverage
2006 1.8x
2007 1.5x
2008 1.3x
2009 1.7x
2010 1.3x
2011 1.1x
2012 1.4x
2013 1.5x
2014 2.0x
DCF Coverage
($ in millions)
Conservative Distribution Policy
Global has generated $216.9 million in Excess DCF since the IPO with an average
DCF coverage ratio of 1.5x since 2006
Note: Global went public on 10/4/2005
Cumulative Excess Cash Flow Reinvested in GLP
21.035.0 42.9
62.273.0 75.7
98.2
134.4
216.9
2006 2007 2008 2009 2010 2011 2012 2013 2014
38
$0.4875$0.50 $0.50
$0.57
$0.6125
$0.6650
$1.95$2.00 $2.00
$2.28
$2.45
$2.66
Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014
Quarterly Distribution Annualized Rate
Q4 2014
distribution of
$0.6650
represents
8.57% annual
increase
Selected Distribution History
39
Balance Sheet at December 31, 2014
• Tangible and liquid with receivables and inventory comprising 39% of total
assets at 12/31/14
• Receivables diversified over a large customer base and turn within 10 to 20
days; write-offs have averaged 0.01% of sales per year over the past five
years
• Inventory represents about 10 to 20 days of sales
• Remaining assets are comprised primarily of $825M of conservatively valued
fixed assets
• $100M (17%) of total debt at 12/31/14 related to inventory financing
– Borrowed under working capital facility
• $502M (83%) is debt related to:
– Terminal operating infrastructure
– Acquisitions and capital expenditures
• Total committed facility of $1.775B:
– $1,000M working capital revolver
– $775M acquisition/general corporate purpose revolver
– Credit agreement matures 4/30/2018
• Issued $375M 6.25% senior notes due 2022
Balance sheet figures(In thousands)
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 5,238
Accounts receivable, net 457,730
Accounts receivable - affiliates 3,903
Inventories 336,813
Brokerage margin deposits 17,198
Derivative assets 83,826
Prepaid expenses and other current assets 56,515
Total current assets 961,223
Property and equipment, net 825,051
Intangible assets, net 48,902
Goodwill 154,078
Other assets 50,723
Total assets $ 2,039,977
Liabilities and partners' equity
Current liabilities:
Accounts payable $ 456,619
Line of credit 700
Environmental liabilities - current portion 3,101
Trustee taxes payable 105,744
Accrued expenses and other current liabilities 82,820
Derivative liabilities 58,507
Total current liabilities 707,491
Working capital revolving credit facility - less current portion 100,000
Revolving credit facility 133,800
Senior notes 368,136
Environmental liabilities - less current portion 34,462
Other long-term liabilities 59,932
Total liabilities 1,403,821
Partners' equity
Global Partners LP equity 586,942
Noncontrolling interest 49,214
Total partners' equity 636,156
Total liabilities and partners' equity $ 2,039,977
40
Improved Balance Sheet Efficiency
Total Debt (With & Without W/C Facility) to EBITDA
$422
$641
$300$205
$422
$585$509
$0
$50
$100
$150
$200
$250
$300
$0
$200
$400
$600
$800
$1,000
2010 2011 2012 2013 2014
$787 $794$847
$912
$609
$72$86
$136
$157
$242
4.2x
2.4x
3.1x
3.7x
2.1x
27.4% EBITDA CAGR from 2010 to 2014 while keeping debt relatively flat
• Disciplined Growth Initiatives
• Working Capital Management
• Reinvestment of Excess Cash Flows
Debt Excl. W/C Facility EBITDA Total Debt
41
$20
$50 - $60
$0
$10
$20
$30
$40
$50
$60
$70
2014 Adj. EBITDA* Year 2 Proj. EBITDA
Warren Equities: Acquisition Multiples and Growth Drivers
EBITDA Multiples (Total Consideration / Net of Notes)
19.1x / 17.8x
6.4x / 6.0x
Acquisition price of approximately $387 million, including working capital
($ in millions) C-Store Margin
Fuel Procurement
OpEx Savings
Synergies
Warren EBITDA Growth Drivers
*Warren Equities audited fiscal 2014 financials adjusted for interest income and gain on sale of sites
Fuel Delivery
42
Key Investment Considerations
Critical Logistics and
Infrastructure Serving
Prolific But
Constrained Markets
Diverse Product
and Asset Mix
Strong Financial
Profile & Increasing
Distributable Cash Flow
Experienced
Management Team
Appendix
44
Appendix – Financial Reconciliations
(In thousands)
(Unaudited)
2011
Reconciliation of net income to EBITDA
Net income (1) $ 34,134 $ 27,038 $ 19,352 $ 46,743 $ 41,053 $ 116,980 $ 33,029 $ 28,482
Net loss (income) attributable to noncontrolling interest - - - - 1,562 (2,271) 1,013 (572)
Net income attributable to Global Partners LP (1) 34,134 27,038 19,352 46,743 42,615 114,709 34,042 27,910
Depreciation and amortization, excluding the impact of noncontrolling interest 14,740 20,082 30,359 45,458 70,423 78,888 19,424 21,635
Interest expense, excluding the impact of noncontrolling interest 16,357 25,317 35,932 42,021 43,537 47,719 11,424 12,084
Income tax expense (benefit) 1,429 - 68 1,577 819 963 (33) 303
EBITDA (1) $ 66,660 $ 72,437 $ 85,711 $ 135,799 $ 157,394 $ 242,279 $ 64,857 $ 61,932
Reconciliation of net cash (used in) provided by operating activities to EBITDA
Net cash (used in) provided by operating activities (1) $ (61,129) $ (87,194) $ (17,357) $ 232,452 $ 255,147 $ 344,902 $ 1,035 $ 150,901
Net changes in operating assets and liabilities and certain non-cash items 110,003 134,314 67,068 (140,251) (136,960) (141,558) 53,594 (98,808)
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest - - - - (5,149) (9,747) (1,163) (2,548)
Interest expense, excluding the impact of noncontrolling interest 16,357 25,317 35,932 42,021 43,537 47,719 11,424 12,084
Income tax expense (benefit) 1,429 - 68 1,577 819 963 (33) 303
EBITDA (1) $ 66,660 $ 72,437 $ 85,711 $ 135,799 $ 157,394 $ 242,279 $ 64,857 $ 61,932
(1) Results for the three and twelve months ended December 31, 2013 include non-cash adjustments of $9.9 million and ($19.3 million), respectively, related to the Partnership's RIN RVO and loss on fixed forward commitments.
2014
Year Ended December 31,
201320122009 2010 2013 2014
December 31,
Three Months Ended
45
Appendix – Financial Reconciliations
(In thousands)
(Unaudited)
Reconciliation of net income to distributable cash flow
Net income (1) $ 33,029 $ 28,482 $ 41,053 $ 116,980
Net loss (income) attributable to noncontrolling interest 1,013 (572) 1,562 (2,271)
Net income attributable to Global Partners LP (1) 34,042 27,910 42,615 114,709
Depreciation and amortization, excluding the impact of noncontrolling interest 19,424 21,635 70,423 78,888
Amortization of deferred financing fees 1,835 1,440 6,897 5,627
Amortization of senior notes discount 105 124 368 559
Amortization of routine bank refinancing fees (1,117) (1,102) (4,072) (4,444)
Maintenance capital expenditures (1,785) (5,648) (10,977) (34,115)
Distributable cash flow (1) $ 52,504 $ 44,359 $ 105,254 $ 161,224
Reconciliation of net cash provided by (used in) operating activities to
distributable cash flow
Net cash provided by (used in) operating activities (1) $ 1,035 $ 150,901 $ 255,147 $ 344,902
Net changes in operating assets and liabilities and certain non-cash items 53,594 (98,808) (136,960) (141,558)
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest (1,163) (2,548) (5,149) (9,747)
Amortization of deferred financing fees 1,835 1,440 6,897 5,627
Amortization of senior notes discount 105 124 368 559
Amortization of routine bank refinancing fees (1,117) (1,102) (4,072) (4,444)
Maintenance capital expenditures (1,785) (5,648) (10,977) (34,115)
Distributable cash flow (1) $ 52,504 $ 44,359 $ 105,254 $ 161,224
(1) Results for the three and twelve months ended December 31, 2013 include non-cash adjustments of $9.9 million and ($19.3 million), respectively, related to the Partnership's
RIN RVO and loss on fixed forward commitments.
Twelve Months Ended
December 31,
2013 20142013 2014
December 31,
Three Months Ended
46
Appendix – Financial Reconciliations
(In thousands)
(Unaudited)
(1) Results for the three and twelve months ended December 31, 2013 include non-cash adjustments of $9.9 million and ($19.3 million), respectively, related to the Partnership's RIN RVO and loss on fixed
forward commitments.
Reconciliation of gross profit to product margin
Wholesale segment:
Gasoline and gasoline blendstocks (1) $ 13,974 $ 40,706 $ 54,065 $ 56,224 $ 54,639 $ 43,147 $ 71,713 $ 38,361 $ 754
Crude oil - - - 12,301 35,538 92,807 141,965 22,304 43,709
Other oils and related products 64,835 104,528 90,346 55,308 55,252 66,916 79,376 21,653 21,412
Total (1) 78,809 145,234 144,411 123,833 145,429 202,870 293,054 82,318 65,875
Gasoline Distribution and Station Operations segment:
Gasoline distribution - - 14,017 56,690 139,706 150,147 189,439 39,614 62,810
Station operations - - 8,885 31,491 66,384 80,106 91,757 21,044 23,148
Total - - 22,902 88,181 206,090 230,253 281,196 60,658 85,958
Commercial segment 14,570 15,410 15,033 21,975 18,652 28,359 29,716 7,019 6,421
Combined product margin (1) 93,379 160,644 182,346 233,989 370,171 461,482 603,966 149,995 158,254
Depreciation allocated to cost of sales (1,662) (10,816) (15,628) (24,391) (36,683) (55,653) (61,361) (15,128) (16,733)
Gross profit (1) $ 91,717 $ 149,828 $ 166,718 $ 209,598 $ 333,488 $ 405,829 $ 542,605 $ 134,867 $ 141,521
20132009 2010 2011 2012 2014
Year Ended December 31,
2013 2014
Three Months Ended
December 31,
2005
47
Appendix – Financial Reconciliations Warren Equities, Inc.
(In thousands)
(Unaudited)
Reconciliation of net income to EBITDA
Net income $ 7,231
Depreciation and amortization 11,545
Interest expense 51
Income tax expense 4,824
EBITDA 23,651
Gain on sale of property, plant and equipment (2,284)
Interest and dividend income (1,306)
Adjusted EBITDA $ 20,061
Reconciliation of net cash provided by operating activities to EBITDA
Net cash provided by operating activities $ 20,764
Net changes in operating assets and liabilities and certain non-cash items (1,988)
Interest expense 51
Income tax expense 4,824
EBITDA 23,651
Gain on sale of property, plant and equipment (2,284)
Interest and dividend income (1,306)
Adjusted EBITDA $ 20,061
Year Ended
May 31, 2014
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