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Global Partners Reports Strong Results For The Second Quarter Of 2012

Due primarily to the Alliance Energy acquisition, sales for the second quarter of 2012 increased to $3.9 billion from $3.4 billion for the same period in 2011. Wholesale segment sales of $2.9 billion were flat with the second quarter of 2011 as an increase in volume was offset by a decline in product prices. Sales from the Gasoline Distribution and Station Operations segment more than doubled to $842.5 million compared with $393.2 million for the same period in 2011, reflecting the Alliance acquisition as well as increases in branded gasoline distribution activity. Commercial segment sales grew 19.4% to $193.4 million from $162.0 million in the second quarter of 2011.

Wholesale segment volume was 1.0 billion gallons for the second quarter of 2012 compared with 946.9 million gallons for the second quarter of 2011. Volume in the Gasoline Distribution and Station Operations segment was up 136% to 262.7 million gallons in the second quarter of 2012 from 111.2 million gallons in the comparable period of 2011 . Commercial segment volume was 85.5 million, compared with 68.6 million gallons in the second quarter of 2011.

Combined gross profit increased to $90.7 million in the second quarter of 2012, compared with $44.6 million in the second quarter of 2011. Total wholesale net product margin grew to $34.7 million in the second quarter of 2012, compared with $23.5 million for the same period in 2011. In the Gasoline Distribution and Station Operations segment, net product margin increased 172% to $62.3 million from $22.9 million in the comparable period of 2011. Commercial segment net product margin declined to $3.2 million in the second quarter of 2012 compared with $4.3 million in the same period of 2011.

Recent DevelopmentsThe Board of Directors of the Partnership’s general partner, Global GP LLC, increased the Partnership’s quarterly cash distribution to $0.5250 per unit ($2.10 per unit on an annualized basis) on all of its outstanding common units for the period from April 1 through June 30, 2012. The distribution will be paid on August 14, 2012 to unitholders of record as of the close of business August 3, 2012.

Business Outlook“Our second-quarter results reflect our continued success in strengthening our business through acquisitions and organic projects to diversify our income streams, extend our logistical advantages and increase our vertical integration,” Slifka said. “We have a number of attractive growth opportunities on the horizon that leverage our expertise in logistics and marketing. In Columbus, North Dakota, we have completed our new 100,000 barrel storage tank and loading facility as part of the development of that location as a hub for the gathering, storage, transportation and marketing of crude oil and associated petroleum products. We also have completed a major rail expansion at our Albany, NY terminal, increasing the terminal’s capacity to receive products via rail from 55,000 barrels per day to 160,000 barrels per day. This increased rail capacity allows the terminal to offload two 120-car unit trains per day. In addition, we are moving forward on a new rail-fed propane storage facility in Albany, not far from our crude terminal operations, which we believe will be an attractive source of cost-competitive mid-continent propane for wholesale customers in the Northeast.”

“Based on our current business outlook, for the year we continue to expect to generate EBITDA in the range of $110 million to $130 million. While our third-quarter performance is not expected to match the excellent results we achieved in the second quarter, our forecast for full-year 2012 remains positive,” Slifka concluded. The Partnership’s outlook is also based on assumptions regarding market conditions, including demand for petroleum products and renewable fuels, weather, credit markets and the forward product pricing curve, which will influence quarterly financial results.

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