Global Partners LP (NYSE:GLP) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 10:00 am ET


Global Partners LP (NYSE:GLP) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to the Global Partners Third Quarter 2019 Financial Results Conference Call. Today's call is being recorded. There will be an opportunity for questions at the end of the call. [Operator Instructions]

With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slifka; Chief Financial Officer, Ms. Daphne Foster; Chief Operating Officer, Mr. Mark Romaine; and Executive Vice President and General Counsel, Mr. Edward Faneuil.

At this time, I'd like to turn the call over to Mr. Faneuil for opening remarks. Please go ahead, sir.

Edward J. Faneuil

Good morning, everyone, and thank you for joining us today.

Before we begin, let me remind everyone that this morning we will be making forward-looking statements within the meaning of federal securities laws. These statements may include, but are not limited to, projections, beliefs, goals and estimates concerning the future financial and operational performance of Global Partners. Estimates for Global Partners' EBITDA guidance and future performance are based on assumptions regarding market conditions such as the crude oil market business cycles, demand for petroleum products, including gasoline and gasoline blend stocks and renewable fuels, utilization of assets and facilities, weather, credit markets, the regulatory and permitting environment and the forward product pricing curve which could influence quarterly financial results.

We believe these assumptions are reasonable given currently available information and our assessment of historical trends. Because our assumptions and future performance are subject to a wide range of business risks and uncertainties, we can provide no assurance that actual performance will fall within guidance ranges. In addition, such performance is subject to risk factors, including but not limited to, those described in our filings with the Securities and Exchange Commission.

Global Partners undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements that may be made during today's conference call. With regulation FD in effect, it is our policy that any material comments concerning future results of operations will be communicated through news releases, publicly announced conference calls or other means that will constitute public disclosure for the purposes of regulation FD.

Now please allow me to turn the call over to our President and Chief Executive Officer, Eric Slifka.

Eric Slifka

Thank you, Eddie. Good morning, everyone, and thank you for joining us.

We delivered strong third quarter results, highlighted by product margin increases. Our gasoline distribution and station operations benefited from higher retail fuel margins and a full quarter of results from our Champlain and Cheshire Oil portfolio of retail stations and convenience stores which we acquired in July of last year. In our wholesale segment, product lines primarily benefited from favorable market conditions.

Turning to our distribution. In October, the Board raised the quarterly distribution on our common units from $0.515 to $0.52 per unit or $2.08 on an annualized basis. The distribution will be paid on November 14 to common unit holders of record as of November 8.

In summary, we had a strong performance through the first nine months