Global Partners LP. (NYSE:GLP) Q4 2023 Earnings Conference Call February 28, 2024 10:00 AM ET

Company Participants

Sean Geary - Chief Legal Officer

Eric Slifka - President & Chief Executive Officer

Gregory Hanson - Chief Financial Officer

Mark Romaine - Chief Operating Officer

Conference Call Participants

Selman Akyol - Stifel

Gregg Brody - Bank of America

Operator

Good day everyone and welcome to Global Partners Fourth Quarter 2023 Financial Results Conference Call. Today's call is being recorded. [Operator Instructions].

With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slifka; Chief Financial Officer; Mr. Gregory Hanson, Chief Operating Officer; Mr. Mark Romaine; 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.

Sean Geary

Good morning, everyone. Thank you for joining us. Today's call will include forward-looking statements within the meaning of federal securities laws. These statements include projections, expectations and estimates concerning the future financial and operational performance of Global Partners. No assurances can be given that these projections will be obtained whether these expectations will be met. Our assumptions and future performance are subject to a wide range of business risks, uncertainties, and factors which could cause actual results to differ materially as described in our filings with the Securities and Exchange Commission. Global Partners undertakes no obligation to revise or update any forward-looking statements.

Now it's my pleasure to turn the call over to our President and Chief Executive Officer, Eric Slifka.

Eric Slifka

Thank you, Sean, and good morning everyone. I'll begin by recognizing the exceptional Global Partners team. Their hard work, operational excellence, and creativity enabled us to execute our acquisition strategy while delivering solid fourth quarter and full year performance. 2023 was a transformative year for Global. We closed on the Motiva terminals and the retail JV with ExxonMobil. These accretive deals positioned the company to drive new growth opportunities and increase our earnings power.

First in June, we invested $69.5 million in cash for a 49.99% ownership interest in our spring partners retail joint venture with ExxonMobil, acquiring 64 convenience and fueling facilities. This transaction enables us to apply our extensive operational and management expertise in the growing Houston metro area.

Second, in December, we acquired 25 liquid energy terminals from Motiva Enterprises for $313.2 million in cash. The Motiva transaction broadens and diversifies our footprint. We nearly doubled our storage capacity by adding terminals in seven new states. These terminals with pipeline, rail, and waterborne capabilities support the growth of our integrated supply, storage, wholesale, and retail network in rapidly growing areas of the country. The acquisition is supported by a 25-year take or pay throughput agreement with Motiva, the anchor tenant at these facilities, and includes minimum annual revenue commitments.