GLP earnings call transcript, November 6, 2026

...to the communities we serve remains an important part of who we are. We have committed more than $200,000 to community action agencies and nonprofits to assist with home heating oil efforts in New England this winter. This builds on our long-standing efforts to help families... ...meet their heating needs with direct contributions that allow these organizations to put the funds where they can have the greatest impact. Now, let me turn the call over to Greg for the financial review. Greg?

And good morning, everyone. ...numbers, unless otherwise noted, all comparisons will be with the third quarter of 2025. Net income in the third quarter of 2026 was $52.4 million versus $29 million in the prior year period. EBITDA was $120.8 million in the third quarter versus... $97.1 million in 2025. And adjusted EBITDA was $122.9 compared with $98.8 million. Distributable cash flow was $70.1 million in the third quarter of 26 compared with $53 million. And adjusted DCF was... $50.3 million versus $53.3 million. We continue to maintain a healthy distribution coverage at quarter end of 2.3 times. Moving to our segment details, GDSO segment product margin decreased $8.3 million. To $210.6 million in a quarter. Product margin from gasoline distribution was down $8 million to $136.8 million, primarily due to a decrease in volume sold. Station operations product margin, which includes convenience store and prepared food. Sales, sundries, and rental incomes decreased $300,000 to $73.8 million in the third quarter of 2026. At quarter end, our GDSO portfolio of fueling stations and C-stores consisted of 1,489 sites. Exclusive of the 69 sites under our Spring Partners retail joint venture. Turning to our wholesale segment, third quarter product margin increased $33.4 million to $111.4 million, primarily reflecting more favorable market conditions. In gasoline and distillates, with product margin from gasoline and gasoline blend stocks increasing $14.3 million to $75.8 million, and product margin from distillates and other oils increasing $19.1 million to $35.6 million.

Commercial segment, product margin increased $0.1 million to $71 million due in part to more favorable market conditions and bunkering. We are pleased with our results in the quarter. Our integrated system provides us with multiple sources of revenue generation, and our team has demonstrated strong execution and capturing value in a dynamic market environment. We continue to expect the current steep backwardation in the forward product pricing curve to increase the cost of carrying our hedged inventory in future periods. And we remain focused on disciplined inventory management, driving growth across our segments and efficient operations. Turning to the expense side, operating expenses decreased 1.4 million in the third quarter to 131.1 million, reflecting lower expenses associated with our terminal operations, largely in maintenance and repair expenses, offset by higher expenses related to our GDSO operations, mostly in credit card fees. SG&A increased 3.1 million to 79.4 million, consisting of increases in wages and benefits, discretionary incentive comp, and various other expenses, offset by a decrease in maintenance and repair expenses. Interest expense decreased 1.9 million to 31.4 million, partially due to lower average balances on our working capital revolving credit facility. CAPEX in the third quarter was 41.9 million. consisting of maintenance CAPEX of 19.3 million and expansion CAPEX of 22.6 million, primarily related to investments in our gasoline station business. For full year 2026, we now expect maintenance CAPEX in the range of 65 million.

to 75 million, up 5 million from our previous range. For the expansion of CAPEX, excluding acquisitions unchanged at 75 million to 85 million. Our current CAPEX estimates depend in part on the timing of project completions, availability of equipment and labor, whether in any unforeseen events or opportunities that require additional maintenance or investment. Our balance sheet remains strong as of September 30th leverage as defined in our credit agreement as funded debt to EBITDA of approximately 2.8 times and we maintain ample excess capacity. our credit facilities. We had 99 million outstanding on our working capital revolver and 144.5 million outstanding on our revolving credit facility. During the third quarter, we redeemed all of our outstanding nine and a half series B fixed rate preferred units eliminated. Being 75 million of preferred equity from our capital structure. In subsequent to quarter end, we amended our credit agreement, extending its maturity by more than three years to October, 2031 while maintaining our $1 billion working capital revolving credit facility and our $500 million revolving credit facility. Let me turn the call back to Eric for his closing comments. Eric?

As we look forward, our focus is straightforward. Execute well, build on the strengths of- for our integrated platform and continuing positioning global for long-term growth. We have a strong foundation, a proven operating model, and a team that knows how to navigate a dynamic market.