2014 Investor Day. November 11, Global Partners LP (NYSE: GLP)

Transcription

1 2014 Investor Day November 11, 2014 Global Partners LP (NYSE: GLP)

2 Agenda Investment Highlights & Strategy Eric Slifka, President & Chief Executive Officer Terminal Operations Bill Davidson, Senior Vice President, Terminals & Operations Wholesale Business Mark Romaine, Chief Operating Officer Break Gasoline Distribution and Station Operations Andrew Slifka, EVP, President of Gasoline Distribution & Station Operations Financial Overview Daphne Foster, Chief Financial Officer Wrap-up & Q&A Eric Slifka, President & Chief Executive Officer 2 Global Partners LP 2014 Investor Day November 11, 2014

3 Forward-Looking Statements Some of the information contained in this presentation may contain forward-looking statements. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words may, believe, should, could, expect, anticipate, plan, intend, estimate, continue, will likely result, or other similar expressions. In addition, any statement made by Global Partners LP s management concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible actions by Global Partners LP or its subsidiaries are also forward-looking statements. Although Global Partners LP believes these forward-looking statements are reasonable as and when made, there may be events in the future that Global Partners LP is not able to predict accurately or control, and there can be no assurance that future developments affecting Global Partners LP s business will be those that it anticipates. Additionally, all statements concerning Global Partners expectations regarding future operating results are based on current forecasts for its existing operations and do not include the potential impact of any future acquisitions. Estimates for Global Partners future EBITDA are based on a number of assumptions regarding market conditions, including demand for petroleum products and renewable fuels, weather, credit markets, the regulatory and permitting environment and the forward product pricing curve. Therefore, Global Partners can give no assurance that its future EBITDA will be as estimated. For additional information about risks and uncertainties that could cause actual results to differ materially from the expectations Global Partners LP describes in its forward-looking statements, please refer to Global Partners LP s Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent filings the Partnership makes with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made. Global Partners LP expressly disclaims any obligation or undertaking to update forward-looking statements to reflect any change in its expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based. 3 Global Partners LP 2014 Investor Day November 11, 2014

4 Use of Non-GAAP Financial Measures This presentation contains non-gaap financial measures relating to Global Partners. A reconciliation of these measures to the m ost directly comparable GAAP measures is available in the Appendix to this presentation. For additional detail regarding selected items i mpacting comparability, please visit the Investor Relations section of Global Partners website at EBITDA Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-gaap financial measure used as a supplemental financial measure by management and external users of Global Partners' consolidated financial statements, such as investors, commercial banks and research analysts, to assess the Partnership's: compliance with certain financial covenants included in its debt agreements; financial performance without regard to financing methods, capital structure, income taxes or historical cost basis; ability to generate cash sufficient to pay interest on its indebtedness and to make distributions to its partners; operating performance and return on invested capital as compared to those of other companies in the wholesale, marketing, storing and distribution of refined petroleum products, renewable fuels and crude oil, without regard to financing methods and capital structure; and the viability of acquisitions and capital expenditure projects and the overall rates of return of alternative investment opportunities. EBITDA should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA excludes some, but not all, items that affect net income, and this measure may vary among other companies. Therefore, EBITDA may not be comparable to similarly titled measures of other companies. Distributable Cash Flow Distributable cash flow is an important non-gaap financial measure for Global Partners' limited partners since it serves as an indicator of the Partnership's success in providing a cash return on their investment. Distributable cash flow means the Partnership's net income plus depreciation and amortization minus maintenance capital expenditures, as well as adjustments to eliminate items approved by the audit committee of the Board of Directors of the Partnership's general partner that are extraordinary or non-recurring in nature and that would otherwise increase distributable cash flow. Specifically, this financial measure indicates to investors whether or not the Partnership has generated sufficient earnings on a current or historic level that can sustain or support an increase in its quarterly cash distribution. Distributable cash flow is a quantitative standard used by the investment community with respect to publicly traded partnerships. Distributable cash flow should not be considered as an alternative to net income, operating income, cash flow from operations, or any other measure of financial performance presented in accordance with GAAP. In addition, Global Partners' distributable cash flow may not be comparable to distributable cash flow or similarly titled measures of other companies. 4 Global Partners LP 2014 Investor Day November 11, 2014

5 Investment Highlights & Strategy Eric Slifka President & Chief Executive Officer

6 Global Partners at a Glance Master limited partnership engaged in midstream logistics and marketing Leading wholesale distributor of petroleum products One of the largest terminal networks of petroleum products and renewable fuels in the Northeast One of the largest independent owners, suppliers and operators of gasoline stations and convenience stores in the Northeast Leader in the purchasing, selling and logistics of transporting domestic and Canadian crude oil and other energy products by rail Virtual pipeline connecting producing regions to demand centers in the East, West and Gulf Coast (pending) 6 Global Partners LP 2014 Investor Day November 11, 2014

7 Diversified Business Mix 2005 Product Margin by Business Segment $93.4M 2013 Product Margin by Business Segment $461.5M Commercial 16% Wholesale Gasoline 15% Wholesale Residual Oil 24% Wholesale Distillates 45% Wholesale 84% Gasoline Distribution and Station Operations 50% Rent & C-Store 17% Gasoline Distribution 33% Wholesale Crude 20% Wholesale Distillates & Residual Oil 15% Wholesale Gasoline 9% Wholesale 44% Commercial 6% 7 Global Partners LP 2014 Investor Day November 11, 2014

8 Vision Leadership in gathering, storage, transportation and marketing of refined petroleum products, crude oil, renewable fuels, natural gas and propane. 8 Global Partners LP 2014 Investor Day November 11, 2014

9 Key Investment Considerations Critical Logistics and Infrastructure Serving Prolific But Constrained Markets Diverse Product and Asset Mix Strong Financial Profile & Increasing Distributable Cash Flow Experienced Management Team 9 Global Partners LP 2014 Investor Day November 11, 2014

10 Extensive Industry Experience Richard Slifka Chairman David McKown Director Robert McCool Director Kenneth Watchmaker Director Eric Slifka President, CEO & Director Andrew Slifka EVP, President, GDSO & Director Edward Faneuil EVP and General Counsel Daphne Foster CFO Mark Romaine COO Charles Rudinsky EVP, & CAO William Davidson SVP, Terminals & Operations Terry Theofilou SVP, Supply & Distribution Mark Cosenza SVP, GDSO Joseph DeStefano SVP, Marketing Board of Directors BOD and Executive Mgt. Executive Management Management 10 Global Partners LP 2014 Investor Day November 11, 2014

11 Global s DNA: Sourcing, Logistics & Marketing Virtual Pipeline Gathering Transportation Storage Origin Delivery Destination Integrated Marketing Wholesale Distribution Retail C-Store Operations 11 Global Partners LP 2014 Investor Day November 11, 2014 Alltow photo

12 Uniquely Positioned in U.S. Energy Market 25 Refined Petroleum Bulk Product Terminals 10.1M Barrels of Storage Capacity 450K Barrels of Product Throughput Daily 1,000 Gas Stations and Convenience Stores 12 Global Partners LP 2014 Investor Day November 11, 2014

13 Daily Production (000 bbls per day) Average Rail Carloads per Month Positioned to Benefit From Domestic Energy Resurgence Region Source: North Dakota Pipeline Authority Refining Capacity by Region Refining Capacity (mm bpd) Imported Crude (mm bpd) Source: Bloomberg, EIA Global has the only single-line haul rail from the North Dakota Bakken region to the East and West coasts a Virtual Pipeline Growth in Bakken Oil Production Imports as a Percent of PADD PADD I % PADD II % PADD III % PADD IV % PADD V % Total % 1,100 1, Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 U.S. Oil and Liquid Fuels Production (mm bpd) Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Total production Production forecast Source: U.S. Energy Information Administration Crude Moved by Rail From Williston Basin 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Source: North Dakota Pipeline Authority 13 Global Partners LP 2014 Investor Day November 11, 2014

14 Growth Strategy Focused on Building Unitholder Value Conservative Financial Approach and Strong Capitalization Support: Organic Growth Initiatives Enhance cash flow through product and market diversification Invest in terminaling and logistics in constrained markets Attract new customers through superior service and product availability Optimize terminal assets and enhance supply and logistical efficiencies Strategic Acquisitions Consolidate markets and leverage scale to achieve purchasing efficiencies Achieve significant operational synergies and cost savings while increasing returns Create opportunities to deliver value-added products and services Increase cash flow stability while enhancing real estate portfolio 14 Global Partners LP 2014 Investor Day November 11, 2014

15 History of Growth Acquired three terminals from ExxonMobil Completed Port of Providence terminal project Launched offshore bunkering service $1.2 Billion in Acquisitions and Investments Receipt, storage and distribution of Bakken crude oil at Global Albany Albany Ethanol Expansion Project with CP Railway Acquired Warex terminals Getty Realty Agreement Opened propane facility in Albany Completed Global Albany rail expansion Agreement to Acquire Warren Equities Acquired two terminals from ExxonMobil Organic terminal projects in Albany, NY Oyster Bay, NY Philadelphia, PA Acquired Mobil Stations Contracted to supply 150M gallons to other Mobil distributors Acquired Alliance Energy Completed 100,000 barrel storage tank in Columbus, ND Acquired Basin Transload Acquired CPBR Facility Agreement with KCS to develop terminal in Port Arthur, TX Signed pipeline connection agreements with Tesoro and Meadowlark 15 Global Partners LP 2014 Investor Day November 11, 2014

16 Growth Initiatives Port Arthur, TX Terminal Agreement with Kansas City Southern on new unit train terminal in Port Arthur, TX 340, ,000 barrels of initial storage capacity with expansion opportunities Approximate investments of $75 million to $125 million Warren Equities Operates 147 Xtra Mart convenience stores, markets fuel through 53 commission agent locations and supplies fuel to ~320 dealers Sells ~500 million gallons of fuel annually through ~520 retail locations Projected EBITDA of $50 million to $60 million in second full year of operations 16 Global Partners LP 2014 Investor Day November 11, 2014

17 Growth Initiatives CPBR Storage expansion 600,000 barrels Rail expansion to unload unit train in 12 hours Ability to run crude transload and ethanol facility simultaneously Dock investments to take largest possible vessels Approximate investments of $75 million to $100 million Mid-Continent Transload Facilities Expanding crude oil gathering capabilities in Bakken through pipeline connections Construction of 176,000 barrels of additional storage capacity in Columbus, ND, increasing the total North Dakota storage capacity to 726,000 barrels 17 Global Partners LP 2014 Investor Day November 11, 2014

18 Gulf Coast Destination Asset: Port Arthur, TX Agreement with Kansas City Southern Global will develop and build a unit train terminal Terminal will initially handle heavy crude from Canada Initial storage capacity of 340,000 to 700,000 barrels Expansion capabilities for distillates, renewable fuels and NGLs Designed to handle up to two unit trains per day with expansion capacity up to six unit trains per day Dock capable of handling Aframax-size vessels Situated within a 100-mile radius of nearly 5 million barrels of Gulf Coast refining capacity Expected to be in service in early 2017 Port Arthur 18 Global Partners LP 2014 Investor Day November 11, 2014

19 Warren Equities is Transformative Acquisition for Global s Retail Platform Meaningfully expanding scale while providing significant operational synergies and strategic options Strong footprint across 10 states in the Northeast U.S. with the majority of its stores primarily concentrated in MA, CT and NY Operates 147 Xtra Mart convenience stores, markets fuel through 53 commission agent locations and supplies fuel to ~320 dealers Sells ~500 million gallons of fuel annually through ~520 retail locations On track to close in Q subject to customary closing conditions Projected EBITDA: Second full year of operations: $50 million to $60 million Received early HSR termination 19 Global Partners LP 2014 Investor Day November 11, 2014

20 Mid-Continent Transload Facilities Basin Columbus, ND Economically advantaged single-line long-haul to Albany 270,000-barrel storage capacity with truck-and-rail off-loading rack Construction of 176,000 barrels of additional storage expected to be completed in Q1 2015, which will increase total ND storage capacity to 726,000 barrels 50,000 bbls/day pipeline connection to Meadowlark Midstream Partners Divide Gathering System (scheduled to be operational by Q2 2015) Basin Columbus Basin Beulah Basin Beulah, ND Direct long-haul service to West and Gulf Coasts 280,000-barrel storage capacity with truck-and-rail off-loading system Pipeline connection to Tesoro High Plains Pipeline System Initial capacity 10,000 bbls/day with potential of 40,000 bbls/day 20 Global Partners LP 2014 Investor Day November 11, 2014

21 West Coast Destination Asset: Clatskanie, OR Located on the Columbia River approximately 50 miles from open water 200,000 barrels of storage with near term expansion potential Served by BNSF via connections with CP and CN Approximately 4 days transit by rail from Edmonton Capacity for handling 115 car unit trains Leased deep water dock 21 Global Partners LP 2014 Investor Day November 11, 2014

22 Key Financial Metrics ($ in millions) EBITDA $157.4 ($ in millions) Distributable Cash Flow $105.3 $ % +132% $ Distribution History Partners Equity $ % $2.61 ($ in millions) +194% $463.2 $ Global Partners LP 2014 Investor Day November 11, 2014

23 Key Takeaways Critical Logistics and Infrastructure Serving Prolific But Constrained Markets Diverse Product and Asset Mix Strong Financial Profile & Increasing Distributable Cash Flow Experienced Management Team 23 Global Partners LP 2014 Investor Day November 11, 2014

24 Questions & Answers

25 Terminal Operations Bill Davidson Senior Vice President, Terminals & Operations

26 Steel in the Ground 10.1M barrels of storage capacity for refined products, crude oil and renewable fuels Terminal assets feed expanding network of retail sites Strong relationships with oil companies Crude oil rail terminals Albany, NY Beulah and Stampede, ND Clatskanie, OR Port Arthur, TX (in development) Rail-fed propane and butane storage terminal 26 Global Partners LP 2014 Investor Day November 11, 2014

27 Logistical Advantages Expansive Asset Network Our wholesale storage, terminaling, marketing and logistics serve refiners and other customers across the country Virtual Pipeline Solution Efficiency of single line haul on Canadian Pacific and BNSF is a competitive differentiator in our shipment of crude oil and associated products Optimization and Efficiency Terminals & Stations Our network of terminals is a gateway for the receipt, storage and distribution of refined petroleum products, renewable fuels and crude oil Built-in Market Clearing Intermodal Options Strategically located, intermodal terminals provide an efficient and a cost-effective mechanism to move product in and out of our system 27 Global Partners LP 2014 Investor Day November 11, 2014

28 Wholesale Terminals Northeast Key to Terminal Type Distillate Ethanol Gasoline/Distillate/Ethanol Residual/Distillate Residual/Distillate/Biofuel Distillate/Biofuel Gasoline/Distillate/Ethanol/Crude Crude Global has 9.2 million bbls of terminal capacity in the Northeast Burlington, VT: 419K bbls Wethersfield, CT: 183K bbls Springfield, MA: 54K bbls Albany, NY: 1,402K bbls Bridgeport, CT: 110K bbls Newburgh, NY: 429K bbls Newburgh-Warex: 956K bbls Macungie, PA: 170K bbls Bayonne, NJ: 371K bbls Staten Island: 287K bbls Portland, ME: 665K bbls Revere, MA: 2,097K bbls Chelsea, MA: 685K bbls Sandwich, MA: 99K bbls Port of Providence, RI: 480K bbls Glenwood Landing, NY: 98K bbls Commander/Oyster Bay, NY: 134K bbls Philadelphia, PA: 159K bbls Inwood, NY: 322K bbls Estimated market share 1 Location Est. market capacity GLP capacity GLP % of total Newburgh, NY 2,755 1,385 50% Western Long Island, NY % Boston Harbor, MA 9,774 2,782 28% Vermont % Providence, RI 4, % Albany/Rensselaer, NY 9,558 1,402 15% 28 Global Partners LP 2014 Investor Day November 11, Based on terminal capacity (bbls in 000s) Source: OPIS/Stalsby Petroleum Terminal Encyclopedia, 2013, various marketing materials and Company data

29 Growth and Versatility of Terminal Assets Growth in Rail Car Spots Rail Storage Capacity (bbls) K 650K Global Partners LP 2014 Investor Day November 11, 2014

30 Unique Origin-to-Destination Assets Form System s Backbone Global Partners Single Line Haul, East-West Infrastructure Clatskanie, OR Terminal Basin Columbus, ND (CP) Basin Beulah, ND (BNSF) Albany, NY Terminal Storage capacity = 200,000 barrels Storage capacity = 550,000 barrels Rail off-loading capacity = 160,000 bpd 30 Global Partners LP 2014 Investor Day November 11, 2014

31 Albany Terminal Critical Link in North American Infrastructure Albany terminal is gateway to efficient and costeffective receipt, storage and delivery of crude oil and other products Relationship with Canadian Pacific (CP) provides significant routing flexibility Intermodal terminal linked via single line haul to CP Enables two 120-car unit trains to be offloaded in a 24 hour period Rail expansion more than tripled terminal intake capacity to approximately 160,000 bbls/day Averaging just 4 to 5 days one-way per train shipment Established infrastructure links Global to energy producing regions across North America Transload facility in North Dakota s Bakken region Product shipped by barge from Albany to East Coast refiners 31 Global Partners LP 2014 Investor Day November 11, 2014

32 Albany Propane and Butane Terminal Opened rail-fed propane and butane storage and distribution terminal in 2013 Can source propane and butane directly from Midwest and Canadian sources via single-line haul on Canadian Pacific Storage capacity of approximately 1 million gallons 32 Global Partners LP 2014 Investor Day November 11, 2014

33 Port Arthur Terminal Provides Access to Gulf Coast Capacity Global will design, build and operate unit train crude oil terminal Agreement with Kansas City Southern (KCS) KCS connects with all other Class I railroads in North America Terminal will initially handle heavy crude from Canada 340,000 to 700,000 barrels of initial storage capacity Expansion capabilities for distillates, renewable fuels and NGLs Designed to handle up to two unit trains per day with expansion capacity up to six unit trains per day Dock capable of handling Aframax-size vessels Situated within a 100-mile radius of nearly 5 million barrels of Gulf Coast refining capacity Expected to be in service in early 2017 Port Arthur 33 Global Partners LP 2014 Investor Day November 11, 2014

34 Current Configuration of CPBR/Global Westward Infrastructure Two 100,000 barrel tanks Pipeline from offloading to tanks Pipeline from tanks to dock loading Multiple unloading stations Permitted for both crude transloading and ethanol manufacturing Largest West Coast ethanol plant 120M gallons per year ethanol capacity Only U.S. ethanol facility located on deep-water port with direct-ocean access via deep-water river system 34 Global Partners LP 2014 Investor Day November 11, 2014

35 Mid-Continent Assets Form Core of Virtual Pipeline Basin Columbus, ND (CP) Economically advantaged single-line long-haul to Albany 270,000-barrel storage capacity with truck-and-rail off-loading rack Construction of 176,000 barrels of additional storage expected to be completed in Q1 2015, which will increase total ND storage capacity to 726,000 barrels Basin Beulah, ND (BNSF) Direct long-haul service to West and Gulf Coasts 280,000-barrel storage capacity with truck-and-rail off-loading system Pipeline Connections Tesoro High Plains Pipeline System (THPP) Basin Columbus to THPP Basin Beulah to THPP (scheduled for completion in Q4 2014) Connection to Columbus and Beulah provides customers with optionality to move product to either facility Meadowlark Midstream Partners Divide Gathering System Basin Columbus to the Divide Gathering System (scheduled to be operational by Q2 2015) 35 Global Partners LP 2014 Investor Day November 11, 2014

36 Vertical Integration Tanker Gas station Retail Barge Truck Wholesale Rack Consumer Crude Oil Rail Storage Facilities Rail Commercial Refinery Pipeline Barge Industrial Truck Refinery Wholesale Commercial Gasoline Distribution & Station Operations 36 Global Partners LP 2014 Investor Day November 11, 2014

37 Safety, Health & Environmental Rigorous training and preparedness exercises Thousands of hours of safety and operations training Spill avoidance, response preparedness and drills Training for first responders / emergency personnel Oversight by federal, state and local agencies, including on-site inspections and tabletop exercises Booming and spill response equipment on site Member of National Response Corporation 37 Global Partners LP 2014 Investor Day November 11, 2014

38 Safety-Enhanced Railcars for Crude Transport Requiring all crude oil cars arriving at our East and West Coast terminals to be CPC-1232 compliant Support federal government s efforts to adopt CPC-1232 initiative 38 Global Partners LP 2014 Investor Day November 11, 2014

39 Key Takeaways Strategically located terminal assets anchor wholesale and GDSO segments First class, well-maintained and flexible facilities Safety-first culture puts focus on employees and the local community 39 Global Partners LP 2014 Investor Day November 11, 2014

40 Questions & Answers

41 Wholesale Business Mark Romaine Chief Operating Officer

42 Vital Supplier of Petroleum Products Highly valuable terminal infrastructure links Global to energy producing regions across the globe Flexible infrastructure handles a range of petroleum products Tank flexibility, rail flexibility, blending Expanding storage, transportation and marketing of products by rail from the U.S. and Canada Buildout of rail system covering East, West and Gulf Coast to provide rail optionality throughout system Daily throughput: 450,000 barrels 42 Global Partners LP 2014 Investor Day November 11, 2014

43 Vertical Integrated Assets Provide Competitive Advantage Tanker Gas station Retail Barge Truck Wholesale Rack Consumer Crude Oil Rail Storage Facilities Rail Commercial Refinery Pipeline Barge Industrial Truck Refinery Wholesale Commercial Gasoline Distribution & Station Operations 43 Global Partners LP 2014 Investor Day November 11, 2014

44 World Oil Demand in the Lower and Higher Economic Growth Scenarios Source: Organization of the Petroleum Exporting Countries, 2014 World Oil Outlook 44 Global Partners LP 2014 Investor Day November 11, 2014

45 U.S. and Canadian Crude Oil Production and Forecast Source: Turner, Mason & Company 45 Global Partners LP 2014 Investor Day November 11, 2014

46 U.S. Refinery Capacity by PADD Total 139 refineries million bbl/d = Refining capacity million bbl/d = Number of operating refineries Refining capacity as of August 2014 Number of operating refineries as of January 2014 Source: Energy Information Administration 46 Global Partners LP 2014 Investor Day November 11, 2014

47 U.S. Percent Utilization of Refinery Operable Capacity Source: U.S. Energy Information Administration 47 Global Partners LP 2014 Investor Day November 11, 2014

48 National Gasoline Prices by County (prices as of 11/08/2014) Source: GasBuddy.com 48 Global Partners LP 2014 Investor Day November 11, 2014

49 Pro Forma Retail Footprint with Warren Equities* Site Type** Global Warren Total Company Operated Commission Agents Dealer Leased TOTAL Contract Dealers Mobil Brand Fee Agreement TOTAL 1, ,531 Key Business Metrics*** Global Warren Total Motor Fuel Sales (million gallons) 1, ,498.7 Existing Global locations Warren locations *Transaction expected to close in Q1 2015, subject to customary closing conditions. **Active portfolio with monthly category moves. ***Metrics are based on current run-rate. 49 Global Partners LP 2014 Investor Day November 11, 2014

50 GLP s Terminal Network Northeast Key to Terminal Type Distillate Ethanol Gasoline/Distillate/Ethanol Residual/Distillate Residual/Distillate/Biofuel Distillate/Biofuel Gasoline/Distillate/Ethanol/Crude Crude Global has 9.2 million bbls of terminal capacity in the Northeast Burlington, VT: 419K bbls Wethersfield, CT: 183K bbls Springfield, MA: 54K bbls Albany, NY: 1,402K bbls Bridgeport, CT: 110K bbls Newburgh, NY: 429K bbls Newburgh-Warex: 956K bbls Macungie, PA: 170K bbls Bayonne, NJ: 371K bbls Staten Island: 287K bbls Portland, ME: 665K bbls Revere, MA: 2,097K bbls Chelsea, MA: 685K bbls Sandwich, MA: 99K bbls Port of Providence, RI: 480K bbls Glenwood Landing, NY: 98K bbls Commander/Oyster Bay, NY: 134K bbls Philadelphia, PA: 159K bbls Inwood, NY: 322K bbls Estimated market share 1 Location Est. market capacity GLP capacity GLP % of total Newburgh, NY 2,755 1,385 50% Western Long Island, NY % Boston Harbor, MA 9,774 2,782 28% Vermont % Providence, RI 4, % Albany/Rensselaer, NY 9,558 1,402 15% 50 Global Partners LP 2014 Investor Day November 11, Based on terminal capacity (bbls in 000s) Source: OPIS/Stalsby Petroleum Terminal Encyclopedia, 2013, various marketing materials and Company data

51 Expansive Product Portfolio Distillates Home heating oil Diesel fuel Kerosene Gasoline Gasoline blendstocks Ethanol Crude oil Residual fuel Biofuels Propane Butane Natural gas Electricity 51 Global Partners LP 2014 Investor Day November 11, 2014

52 Wholesale and Commercial Business overview Bulk purchase, movement, storage and sale of: Gasoline and gasoline blendstocks Crude oil Wholesale Other oils and related products Business overview Commercial Sales and deliveries to end user customers of: Unbranded gasoline Heating oil, kerosene, diesel and residual fuel Natural gas Bunker fuel Customers Unbranded gasoline distributors and transportation fuel resellers Home heating oil retailers Refiners Customers Government agencies States, towns, municipalities Large commercial clients Shipping companies 52 Global Partners LP 2014 Investor Day November 11, 2014

53 Global Meets the Northeast s Daily Energy Needs Gasoline 912K Automobile tanks filled/day Diesel fuel 19K Diesel trucks filled/day As of 9/30/2014 Heating oil 46K Homes heated/day in winter 53 Global Partners LP 2014 Investor Day November 11, 2014

54 Wholesale Supply Infrastructure Supply Infrastructure: Limited Product Pipelines in Northeast Limited Crude Pipelines to East and West Coasts Vancouver Anacortes Billings Minneapolis Salt Lake City Casper Guernsey Wood River Chicago New York 1.2 Cushing Patoka Refining centers capacity (Million bpd) Products pipeline distribution Source: IHRDC Beaumont Houston Source: Energy Policy Research Foundation Inc. 54 Global Partners LP 2014 Investor Day November 11, 2014

55 Where We Source Barrels Edmonton, AB, Canada === Denotes CP and BNSF rail routes to GLP facilities === Denotes KCS rail route to proposed GLP facility T T T T Imports from Canada Imports from Europe Kansas City, MO Key to Terminal Type Imports from Other Countries Distillate Ethanol Gasoline/Distillate/Ethanol Residual/Distillate Residual/Distillate/Biofuel Distillate/Biofuel Crude Crude/Ethanol Gasoline/Distillate/Ethanol/Crude T Transload facility T Port Arthur Terminal (early 2017) Imports from U.S. Virgin Islands and other Caribbean Countries 55 Global Partners LP 2014 Investor Day November 11, 2014

56 Multiple Distribution Channels Create Optionality for Customers Logistics Water Rail Pipeline Truck Terminals 56 Global Partners LP 2014 Investor Day November 11, 2014

57 How We Move Barrels Time Charter Barges Cost control/operational flexibility Spot Ships & Barges Strong vendor relationships/market opportunities Pipeline Rail Colonial & Buckeye Tesoro High Plains Pipeline System Canadian Pacific, CSX Corporation, Norfolk Southern, Canadian National, Union Pacific & BNSF Five terminals with active rail operations Global s leased railcar fleet 57 Global Partners LP 2014 Investor Day November 11, 2014

58 Risk Management Pricing Daily posted rack NYMEX or other index-based fixed-forward contracts NYMEX or other index-based prompt contracts Inventory is Substantially Hedged Primarily NYMEX Traded Instruments Constant Rebalancing Intraday Basis Risk Inventory Management 58 Global Partners LP 2014 Investor Day November 11, 2014

59 Commercial Segment Overview Delivered Fuels Business Through competitive bidding process or through contracts of various terms Bunkering Custom blended and delivered by barge or from a terminal dock to ships Natural Gas Marketing Representative Customers Competitive Strengths Reputation and reliability Terminal locations Customer base 59 Global Partners LP 2014 Investor Day November 11, 2014

60 Gulf Coast Destination Asset: Port Arthur, TX Agreement with Kansas City Southern Global will develop and build a unit train terminal Terminal will initially handle heavy crude from Canada Initial storage capacity of 340,000 to 700,000 barrels Expansion capabilities for distillates, renewable fuels and NGLs Designed to handle up to two unit trains per day with expansion capacity up to six unit trains per day Dock capable of handling Aframax-size vessels Situated within a 100-mile radius of nearly 5 million barrels of Gulf Coast refining capacity Expected to be in service in early 2017 Port Arthur 60 Global Partners LP 2014 Investor Day November 11, 2014

61 West Coast Destination Asset: Clatskanie, OR Located on the Columbia River approximately 50 miles from open water 200,000 barrels of storage with near term expansion potential Served by BNSF via connections with CP and CN Approximately 4 days transit by rail from Edmonton Capacity for handling 115 car unit trains Leased deep water dock 61 Global Partners LP 2014 Investor Day November 11, 2014

62 Key Takeaways Vertical integration of wholesale business, terminal operations and retail network drives sourcing efficiencies Connection between terminaling and retail gasoline assets uniquely positions Global as an advantaged fuel provider in supply-constrained markets Increasing geographic diversity and transload capabilities provide optionality for customers Positioned to capitalize on export opportunities 62 Global Partners LP 2014 Investor Day November 11, 2014

63 Questions & Answers

64 Gasoline Distribution & Station Operations Andrew Slifka EVP, President of Gasoline Distribution & Station Operations

65 Gasoline Distribution and Station Operations Gasoline Distribution Station Operations Tanker Gas station Retail Crude Oil Barge Truck Wholesale Rack Consumer Rail Storage Facilities Rail Commercial Refinery Pipeline Barge Industrial Truck Refinery 65 Global Partners LP 2014 Investor Day November 11, 2014

66 Organization of GDSO Segment 126 Company Operated Stores 219 Commission Agents 196 Dealer Leased Contract Dealers Mobil Brand Fee Agreement 66 Global Partners LP 2014 Investor Day November 11, 2014

67 One of the Largest Operators of Gasoline Stations and Convenience Stores in the Northeast Expanding gasoline station portfolio ~1,000 locations in eight states 126 company-operated locations Brands include Mobil, CITGO, Shell, Gulf and Sunoco Major focus on new-to-industry and organic projects Retail site development and expansion Merchandising and rebranding Co-branding initiatives Pending acquisition of Warren Equities, Inc. Strengthens footprint in the Northeast Expands presence to Mid-Atlantic 67 Global Partners LP 2014 Investor Day November 11, 2014

68 Key Facts and Figures Supply to ~1,000 stations in total Control 540 properties through fee or lease Operate 126 of these as company operated locations CT, 27% Segment Profile Percentage of Sites by State NY, 13% NH, 8% MA, 33% FYE 12/31/13 *Source NPN Magazine Market Facts 2013 and Company data PA, 9% ME, 5% RI, 4% NJ VT Strategic Advantages Annuity business: Rental income from Dealer Leased and Commission Agents as well as convenience store sales are stable Vertical integration: Integration between supply, terminaling and wholesale businesses and gas station sites Scale: 1,000+ sites with volume exceeding one billion gallons Best in class locations: Preeminent locations in Northeast Diversification: Flexible diversity of model, site geography and site brand Market Share by Station Count* State Market Share Connecticut 16.0% Massachusetts 10.0% Rhode Island 9.0% New Hampshire 9.0% Maine 3.0% New England Total 10.0% 68 Global Partners LP 2014 Investor Day November 11, 2014

69 GDSO is a Key Contributor to Volume and Margin Segment Product Volume Segment Product Margin* (gallons in millions) ,047.1 ($ in millions) $206.1 $230.2 $ $ YTD 9/30/ YTD 9/30/14 *Alliance Energy acquisition completed on 3/1/ Global Partners LP 2014 Investor Day November 11, 2014

70 Convenience Retailing Initiative 70 Global Partners LP 2014 Investor Day November 11, 2014

71 Warren Transaction Provides GDSO Segment with Significant Growth Opportunity 147 Company Operated Stores 53 Commission Agents 20 Dealer Leased 299 Contract Dealers 71 Global Partners LP 2014 Investor Day November 11, 2014

72 Key Benefits of Warren Transaction Strategic and geographic fit Increased scale and operating synergies Strong real estate portfolio Regionally recognized C-store and multi-branded fuel supplier Quick-service restaurant presence at 37 locations Opportunity to expand geographically in the Mid-Atlantic 72 Global Partners LP 2014 Investor Day November 11, 2014

73 Pro Forma Retail Footprint with Warren Equities* Site Type** Global Warren Total Company Operated Commission Agents Dealer Leased TOTAL Contract Dealers Mobil Brand Fee Agreement TOTAL 1, ,531 Key Business Metrics*** Global Warren Total Motor Fuel Sales (million gallons) 1, ,498.7 Existing Global locations Warren locations *Transaction expected to close in Q1 2015, subject to customary closing conditions. **Active portfolio with monthly category moves. ***Metrics are based on current run-rate. 73 Global Partners LP 2014 Investor Day November 11, 2014

74 Key Takeaways Premier retail gasoline portfolio with year-round income stream Expanding footprint into key geographies Strong real estate portfolio with substantial operational upside 74 Global Partners LP 2014 Investor Day November 11, 2014

75 Questions & Answers

76 Financial Overview Daphne H. Foster Chief Financial Officer

77 Strong Financial Profile & Increasing Distributable Cash Flow Track record of growth and profitability with increasing EBITDA and DCF 36 consecutive quarterly cash distributions since IPO in October 2005 Current distribution of $ per unit ($2.61 per unit annualized) 9 Months Ended 9/30/2014 ($ in millions) Denotes % change from 9 months ended 9/30/ % +95% +122% +43% Net Income $86.8 Please refer to Appendix for reconciliation of non-gaap items EBITDA $180.3 DCF $116.9 Product Margin $ Global Partners LP 2014 Investor Day November 11, 2014

78 Increasing Volume and Sales Sales Volume (Gallons in billions) ($ in billions) Sales $17.6 $ $14.8 $ $7.8 $ YTD 9/30/ YTD 9/30/14 78 Global Partners LP 2014 Investor Day November 11, 2014

79 Financial Growth with Consistent Profitability Product Margin ($ in millions, except cents per gallon) EBITDA ($ in millions, except cents per gallon) $461 $445 $180 $370 $157 $136 $161 $182 $0.047 $0.050 $234 $0.045 $0.061 $0.066 $0.093 $67 $72 $0.020 $0.020 $86 $0.016 $0.022 $0.023 $ YTD 9/30/14 Please refer to Appendix for reconciliation of non-gaap items YTD 9/30/14 79 Global Partners LP 2014 Investor Day November 11, 2014

80 Performance Demonstrates Diversification and Strong Growth Q reflects higher throughput volumes through our crude oil transload facilities and strong contribution from the GDSO segment Q crude oil product margin increased $20.0M over Q Q GDSO product margin up $15.5M YOY due to strong fuel margins and increased contribution from station operations Expenses increased to support growing business and growth initiatives ($ in millions, except per unit data) Q Q YTD 2014 Gross profit $118.1 $155.4 $401.1 Net income attributable to GLP $25.8 $42.5 $86.8 Net income per limited partner unit $0.91 $1.50 $3.03 EBITDA $58.5 $74.7 $180.3 Maintenance capex $1.3 $11.2 $28.5 DCF $44.4 $51.5 $116.9 Please refer to Appendix for reconciliation of non-gaap items Full-year 2014 EBITDA guidance of $215M to $230M* (as of 11/6/2014) * This guidance is based on assumptions regarding market conditions, including demand for petroleum products and renewable fuels, weather, credit markets, the regulatory and permitting environment and the forward product pricing curve, which could influence quarterly financial results. 80 Global Partners LP 2014 Investor Day November 11, 2014

81 Expenses to Support Growth Operating Expenses SG&A Expenses +$4.8 - Incentive comp. ($ in millions) $60.0 $50.0 +$6.6 $46.7 +$3.8 - GDSO (new and renovated sites) +$1.5 - Terminal network +$1.3 - Crude oil operations $53.3 ($ in millions) $45.0 $40.0 $35.0 +$13.5 +$3.5 - Professional fees +$1.8 - Additional staff +$1.6 - Depreciation +$1.8 - Other miscellaneous $41.4 $40.0 $30.0 $27.9 $30.0 $25.0 $20.0 $20.0 $15.0 $10.0 $10.0 $5.0 $0.0 3 Mos. 9/30/ Mos. 9/30/2014 $0.0 3 Mos. 9/30/ Mos. 9/30/ Global Partners LP 2014 Investor Day November 11, 2014

82 Diversified Product Margin Product Margin by Business Segment YTD as of 9/30/2014 $445M Gasoline Distribution & Station Operations 44% Rent & C-Store 15% Gasoline Distribution 29% Wholesale Crude 22% Wholesale Distillates & Residual 13% Wholesale Gasoline 16% Wholesale 51% Commercial 5% GDSO Product Margin ($M) Wholesale Product Margin ($M) Commercial Product Margin ($M) $88 $206 $230 $195 $124 $145 $203 $227 $22 $19 $28 $ YTD 9/30/ YTD 9/30/14 Please refer to Appendix for reconciliation of non-gaap items 82 Global Partners LP 2014 Investor Day November 11, YTD 9/30/14

83 Segment Overview: Margin & Cash Flow Drivers Gasoline Distribution & Station Operations (YTD product margin $195 million) Operation Drivers Cash Flow Profile Premier locations in densely populated Northeast Northeast market leader Scale Over 1,000 sites Rent + C-Store Margin Fee Fee-like Gasoline Distribution Consistent rental income Ratable convenience store income Stable fuel margin over the longer term Fuel Margin Fee-like Margin Station Operations 83 Global Partners LP 2014 Investor Day November 11, 2014

84 Station Operations: Fee Income and Margin Stability Site Type Company Operated 126 Commission Agents 219 Dealer Leased 196 Contract Dealers and BFA Agreement 471 Total 1,012 Station Operations Margin ($ in millions) YTD 2013 YTD 2014 $66.4 $80.1 $59.1 $68.6 Station Operations segment consists primarily of rent and C-store sales Dealer Leases Rent 3 year agreements Market value adjustment by contract (average ~3 years) Commission Agents 1 to 3 year agreements Co-branding Agreements C-Store Margin Company Operated 36% YTD 9/30/2014 Up 6 points YOY 84 Global Partners LP 2014 Investor Day November 11, 2014

85 Segment Overview: Margin & Cash Flow Drivers Wholesale (YTD product margin $227 million) Operation Drivers Cash Flow Profile Significant role in energy infrastructure Non-replicable assets No product pipelines Utility like demand Market leadership in the Northeast Terminal Throughput + Supply Fee-like Margin Refined Products Supply Exchange and other contracts Crude Logistics & Supply Unique origin-to-destination assets Increasing production requires rail takeaway Robust expansion opportunities with pipeline connections Growing fee-based activities Terminal Throughput + Logistics Services + Supply Fee Margin 85 Global Partners LP 2014 Investor Day November 11, 2014

86 Segment Overview: Margin & Cash Flow Drivers Commercial (YTD product margin $23 million) Operation Drivers Cash Flow Profile Fuel Distribution End user demand Long-term relationships Contracts (delivered business) Contract Composition Delivered fuels business ~60% is bid business, typically multi-year contracts Natural gas commercial supply Some contracts extend up to 3 years Terminal Throughput + Logistics Services + Supply Bunkering Long-term contract with Defense Logistics Agency, supplied from leased tankage at IMTT terminal Seasonal contracts with cruise lines Fee-like Margin 86 Global Partners LP 2014 Investor Day November 11, 2014

87 Volume and Margin Consistency/Repeatability Driving cars & trucks Heating buildings and homes Term contracts Rental income and C-Store sales ( Station Operations 12/31/13 margin of $80.1M, TTM 9/30/14 margin of $89.7M) Variability Market and economic conditions Weather Seasonality Product Margin (cents per gallon) Total CPG Retail CPG * Crude logistics and retail have driven margin expansion 0 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 * Retail excludes C-store margin and rent. 9/30/14 results are TTM. LTM Sept Global Partners LP 2014 Investor Day November 11, 2014

88 Conservative Distribution Policy Global has generated $194.9 million in Excess DCF since the IPO with an average DCF coverage ratio of 1.5x since 2006 DCF Coverage Period DCF Coverage x x x x x x x x YTD x Cumulative Excess Cash Flow Reinvested in GLP ($ in millions) YTD 2014 Note: Global went public on 10/4/ Global Partners LP 2014 Investor Day November 11, 2014

89 Capital Expenditures ($ in millions) GDSO Crude Oil Other YTD 2014 Maintenance $ $13.8 $28.5 Expansion $16.1 $15.9 $13.1 $45.1 Total $30.8 $15.9 $26.9 $73.6 GDSO New-to-Industry Raze and Rebuilds Tuck-in Acquisitions of Individual Sites Rebranding Co-branding Crude Oil Tanks Pipeline Connections Rail Infrastructure 89 Global Partners LP 2014 Investor Day November 11, 2014

90 Selected Distribution History $2.61 $2.40 $ Recently announced $1.95 $1.98 $2.00 $2.13 $0.60 distribution of $ $ $0.495 $0.50 $ represents 8.75% annual increase Q Q Q Q Q Q Quarterly Distribution Annualized Rate 90 Global Partners LP 2014 Investor Day November 11, 2014

91 Balance Sheet at September 30, 2014 Tangible and liquid with receivables and inventory comprising 45% of total assets at 9/30/14 Receivables diversified over a large customer base and turn within 10 to 20 days; write-offs have averaged 0.01% of sales per year over the past five years Inventory represents about 10 to 20 days of sales Remaining assets are comprised primarily of $824M of conservatively valued fixed assets $205M (24%) of total debt at 9/30/14 related to inventory financing Borrowed under working capital facility $641M (76%) is debt related to: Terminal operating infrastructure Acquisitions and capital expenditures Total committed facility of $1.625B: $1,000M working capital revolver $625M acquisition/general corporate purpose revolver Credit agreement matures 4/30/2018 Issued $375M 6.25% senior notes due 2022 Balance sheet figures (In thousands) (Unaudited) Assets Current assets: Cash and cash equivalents $ 5,545 Accounts receivable, net 529,147 Accounts receivable - affiliates 3,411 Inventories 455,709 Brokerage margin deposits 10,792 Fair value of forward fixed price contracts 57,121 Prepaid expenses and other current assets 53,989 Total current assets 1,115,714 Property and equipment, net 823,583 Intangible assets, net 54,195 Goodwill 154,078 Other assets 30,124 Total assets $ 2,177,694 Liabilities and partners' equity Current liabilities: Accounts payable $ 545,749 Working capital revolving credit facility - current portion 113,000 Line of credit 700 Environmental liabilities - current portion 3,320 Trustee taxes payable 82,133 Accrued expenses and other current liabilities 63,484 Obligations on forward fixed price contracts 55,754 Total current liabilities 864,140 Working capital revolving credit facility - less current portion 92,000 Revolving credit facility 272,600 Senior notes 368,012 Environmental liabilities - less current portion 36,533 Other long-term liabilities 47,253 Total liabilities 1,680,538 Partners' equity Global Partners LP equity 447,514 Noncontrolling interest 49,642 Total partners' equity 497,156 Total liabilities and partners' equity $ 2,177, Global Partners LP 2014 Investor Day November 11, 2014

92 Global Debt History & Philosophy Working Capital Borrowings Funded Term Debt (Banks or Bonds) Purpose Financing of inventory & accounts receivable Acquisition of long-life fixed assets (terminals or stations) Source of Repayment Asset Coverage Debt Levels Controls and Philosophy Self-liquidation through rapid turn of inventory & accounts receivable Borrowing base of inventory & accounts receivable with ample availability Governed by a borrowing base Borrowings typically no more than 60% of total inventory & accounts receivable Cash flow over time Fixed assets with significant excess coverage Total Funded Term Debt/Adjusted EBITDA*: Long term target of 3.50x or less Sources of Debt Capital Since going public, have grown bank group to 27 banks and more than tripled the credit facility with every increase significantly oversubscribed $1.0 billion working capital credit facility $625 million general corporate purposes credit facility with commitments to expand to $775 million. Issued $375 million 6.25% Senior Unsecured Notes due 2022 in June of * Total Funded Term Debt excludes working capital borrowings 92 Global Partners LP 2014 Investor Day November 11, 2014

93 Improved Balance Sheet Efficiency Total Debt (With & Without W/C Facility) to EBITDA $1, $787 $794 $847 $910 $846 $180 $ $136 $ $300 $72 $205 $86 $422 $583 $ FY 2010 FY 2011 FY 2012 FY 2013 YTD 2014 Debt Excl. W/C Facility EBITDA Total Debt 29.1% EBITDA CAGR from 2010 to 2013 while keeping debt relatively flat Disciplined Growth Initiatives Working Capital Management Reinvestment of Excess Cash Flows 0 93 Global Partners LP 2014 Investor Day November 11, 2014

94 Pending Acquisition of Warren Equities Accretive in the first full year of operations Expect $50-60 million EBITDA contribution in the second full year of operations Bottom-up, site-by-site analysis to arrive at value Historical financial performance not reflective of future performance Ability to finance transaction under bank facility Long-term financing target: 60/40 Debt/Equity On track to close in Q subject to customary closing conditions Maintenance capex of $6-8 million annually 94 Global Partners LP 2014 Investor Day November 11, 2014