In addition, such performance is subject to risk factors including, but not limited to those described in Global Partners 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 statement that may be made during today’s conference call.With Regulation FD in effect, it is our policy that any material comments concerning the future results of operations will be communicated through press releases, publicly announced conference calls or other means that will constitute public disclosure for purposes of Regulation FD. Now, please let me turn the call over to our President and Chief Executive Officer, Mr. Eric Slifka. Eric Slifka Thank you, Edward, and good morning everyone. Let me start by saying we are very pleased with our results for the second quarter as Global Partners delivered net income of more than $18.5 million, record EBITDA of $40.8 million and record distributable cash flow of $26.7 million. The second quarter of 2012 was our first full quarter with Alliance Energy, which we acquired in March of this year and helped drive our solid performance. Our results also benefitted from several other factors, including lower gasoline prices, our recent fuel supply and services agreement with Getty Realty, a more favorable distillates market than a year ago and our rapidly expanding crude oil storage logistics and marketing business. These factors were partially offset by backwardation in the futures market and competitive pricing at the rack, which adversely affected our wholesale gasoline results. Let's look more closely at the factors that helped drive our performance in Q2. Following the rapid ascent of gasoline prices in the first quarter, prices in the second quarter declined. Gasoline prices on the NYMEX increased from $2.69 a gallon at the end of December 2011 to $3.39 a gallon at the end of March, before returning back down to $2.73 a gallon as of June 30th.
As we have mentioned on previous calls, there is a lag effect in the margins in gasoline distribution and station operations. Rising prices tend to squeeze margins while declining prices tend to expand the margins. In the second quarter, largely as a result of the price decline, margins in the gas station distribution business were strong.Another key contributor to our retail results was our fuel supply and services agreement with Getty Realty to supply more than 200 of their stations. This agreement broadens our presence in the New York City Metro and New Jersey markets. In addition, the wholesale distillates market recovered in Q2 from the same period a year earlier due to more favorable buying opportunities and a more favorable futures market. Our continued expansion and oil logistics, including the gathering, storage, transportation and marketing of the U.S. and Canadian mid-continent crude also contributed to the bottom line in the second quarter. Stepping back, we have strengthened our operations and financial position through acquisitions and organic projects that have diversified our income streams, extended our logistical advantages and increased our vertical integration. Alliance Energy and the Mobil assets acquired in the fall of 2010 are performing at or above expectations. This business, which is included in our gasoline distribution and stationed operations segment, has a number of attractive growth opportunities, including future acquisitions as well as management services and supply agreements similar to the one we signed with Getty Realty. We continue to expect this segment to generate recurring cash flows and contribute about $75 million to $80 million of EBITDA at our annual earnings power in a full 12-months period. Read the rest of this transcript for free on seekingalpha.com