Global Partners LP

Good day, everyone, and welcome to the Global Partners Second Quarter 2022 Financial Results Conference Call. Today's call is being recorded. There will be an opportunity for questions at the end of the call. If anyone should require operator assistance during the call, please press star zero on your telephone keypad. With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slifka, Chief Financial Officer, Mr. Gregory Hansen, Chief Operating Officer, Mr. Mark Romain, and Chief Legal Officer, Mr. Sean Geary. At this time, I'd like to turn the call over to Mr. Geary for opening remarks. Please go ahead, sir.

Good morning, everyone. Thank you for joining us. Before we begin, let me remind everyone that this morning's call will include forward-looking statements within the meaning of federal securities laws. These statements include projections, expectations, and estimates concerning the future financials and operational performance of global partners. These forward-looking statements are based on assumptions regarding market conditions, business cycles, demand for liquid energy products and convenience store products, utilization of our assets and facilities, the regulatory and permitting environment, the forward product pricing curve, and other factors which could influence our financial results. These statements involve significant risks and uncertainties, some of which are beyond the partnership's control. including without limitation the impact and duration of COVID-19 and its impact on our counterparties, our customers, and our operations, and other assumptions that could cause actual results to differ materially from the partnership's historical experience and present expectations or projections. We believe these assumptions are reasonable, given currently available information. Our assumptions of future performance are subject to a wide range of business risks, uncertainties, and factors which are 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 any 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 Now it's my pleasure to turn the call over to our President and Chief Executive Officer, Eric Sliska.

Thank you, Sean, and good morning, everyone. By every measure, we delivered outstanding results in the second quarter. Our financial and operating performance in Q2 reflects great execution by our team and underscores the value drivers that fuel our business. specifically an integrated network of supply, storage, marketing, and retail assets, which enable us to quickly adapt to changing market conditions, a diverse portfolio of products and services relied on by our customers and guests every day, skilled and dedicated employees, and continued emphasis on data analytics, which enables us to effectively manage inventory levels and product mix to respond to changes in the demand environment for both wholesale and retail. In the second quarter, we benefited from continued momentum in our GDSO segment, including our recently acquired retail sites, as well as favorable market conditions in our wholesale segment and an increase in bunkering activity in our commercial segment. During these calls, I've spoken frequently about the high value of our real estate assets, including our storage infrastructure and retail locations. Historically, we have not only been able to optimize these assets, but monetize them as well. In Q2, for example, we completed the sale of our 2.1 million barrel refined petroleum product terminal in Boston Harbor in Revere, Massachusetts. The purchase price was $150 million in cash, and after closing costs and other considerations, The partner received net proceeds of approximately $99 million. As part of the sale, we entered into an agreement with the buyer under which we leased back key infrastructure at the terminal, including certain tanks, dock access rights, and loading racks in order to continue business operations at the facility. The key takeaway is that the transaction enables us to unlock the value of this asset and provide capital for future growth. On that note, we continue to deliver our strategy to grow our GDSO business. We are pleased with the contribution in Q2 of our two recent acquisitions, Consumers Petroleum of Connecticut and Miller's Neighborhood Market. The Miller's transaction provides us with our first company operated locations in Virginia, where we continue to expand our presence this quarter by signing an agreement to purchase a portfolio of 13 owned, and two leased gas stations and convenience stores, as well as six adjacent pieces of real estate. The acquisition is expected to be completed by the end of Q3. We continue to make investments in the sustainability space, including further diversifying our EV offerings and sustainability business lines to create long-term value for our portfolio. In May, we launched our first resilient convenience station location with a microgrid linking solar energy, battery storage, and a DC fast-charging station for electric vehicles. We continue to be a leader in advancing renewable fuels policies and positioning our assets to deliver these products. Turning to our distribution, in July, the Board voted to increase the quarterly distribution on our common units by $0.01 per unit to $2.42 per unit on an annualized basis. The distribution will be paid on August 12th to unit holders of record as the close of business on August 8th. With that, now let me turn the call over to Greg for his financial review. Greg?