Global Partners Reports Record Fourth-Quarter and Full-Year 2012 Financial Results

  Global Partners Reports Record Fourth-Quarter and Full-Year 2012 Financial
  Results

Fourth Quarter Highlights

  *Net income increased 126% to $22.7 million from the fourth quarter of 2011
  *EBITDA up 76% to $47.1 million from $26.8 million for the fourth quarter
    of 2011
  *Distributable cash flow of $32.1 million, 95% higher than the fourth
    quarter of 2011
  *Quarterly cash distribution of $0.57 per unit, up 14% from the same period
    in 2011

Full Year Highlights

  *Net income more than doubled to $46.7 million from $19.4 million in 2011
  *EBITDA up 58% to $135.8 million from $85.7 million in 2011
  *Distributable cash flow of $80.8 million, 73% higher than 2011

Business Wire

WALTHAM, Mass. -- March 14, 2013

Global Partners LP (NYSE: GLP) today reported financial results for the fourth
quarter and 12 months ended December 31, 2012.

“Global’s development of rail logistics and gas station assets has
strengthened and diversified our cash flows and income streams,” said Eric
Slifka, the Partnership’s president and chief executive officer. “Our record
results in 2012 reflect this transformation, highlighted by the steady growth
of our rail logistics capabilities and the acquisition of Alliance Energy.”

“We believe our direct, single line haul ‘virtual pipeline’ to Albany, NY on
Canadian Pacific provides the most efficient model to move competitively
price-advantaged product from the mid-continent of the U.S. and Canada to the
East Coast,” Slifka said. “The rail volume into our Global Albany crude and
ethanol terminal has more than doubled from 42 unit trains in the first
quarter of 2012 to 87 in the fourth quarter, with 81 unit trains received
through the first two months of 2013 alone, averaging over 100,000 barrels a
day.”

“In recent weeks, we have expanded our advantaged logistics, purchasing a 60%
membership interest in Basin Transload in North Dakota and acquiring the
Cascade Kelly crude oil transload and ethanol production facility near
Portland, Oregon,” Slifka said. “The Basin terminal in Beulah, ND and our new
Oregon facility form a West bound virtual pipeline on the BNSF Railway that
connects the U.S. mid-continent and Western Canadian Sedimentary Basin to
Pacific refiners. Together with our Albany terminal, these locations form a
network of unique origin and destination locations through which our customers
can efficiently supply cost-competitive crude oil to destinations on the East
and West coasts.”

Fourth Quarter 2012 Financial Summary
Net income for the fourth quarter of 2012 was $22.7 million, or $0.81 per
diluted limited partner unit, compared with net income of $10.0 million, or
$0.45 per diluted limited partner unit, for the fourth quarter of 2011.

Combined net product margin for the fourth quarter of 2012 was $115.5 million,
compared with $65.6 million for the fourth quarter of 2011.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for
the fourth quarter of 2012 were $47.1 million, compared with $26.8 million for
the same period of 2011.

Distributable cash flow (DCF) for the fourth quarter of 2012 was $32.1
million, compared with $16.5 million for the fourth quarter of 2011.

Net product margin, EBITDA and DCF are non-GAAP (Generally Accepted Accounting
Principles) financial measures, which are explained in greater detail below
under "Use of Non-GAAP Financial Measures." Please refer to Financial
Reconciliations included in this news release for reconciliations of these
non-GAAP financial measures to their most directly comparable GAAP financial
measures for the three and 12 months ended December 31, 2012 and 2011.

Sales for the fourth quarter of 2012 increased to $5.1 billion from $4.1
billion for the same period in 2011, driven primarily by increasing crude oil
activity and the acquisition of Alliance Energy LLC, which was completed in
the first quarter of 2012. Wholesale segment sales of $4.1 billion were up
approximately 16% from $3.5 billion for the fourth quarter of 2011 due to an
increase in volume. Sales from the Gasoline Distribution and Station
Operations segment more than doubled to $875.9 million compared with $365.5
million for the same period in 2011, reflecting contributions from the
Alliance acquisition, as well as the fuel supply and services agreement with
Getty Realty. Commercial segment sales decreased approximately 33% to $148.5
million from $220.3 million for the fourth quarter of 2011.

Wholesale segment volume was 1.4 billion gallons for the fourth quarter of
2012 compared with 1.3 billion gallons for the fourth quarter of 2011. Volume
in the Gasoline Distribution and Station Operations segment was up 130% to
267.9 million gallons for the fourth quarter of 2012 from 116.6 million
gallons in the comparable period of 2011. Commercial segment volume was 96.9
million gallons, compared with 93.9 million gallons for the fourth quarter of
2011.

Combined gross profit increased to $104.9 million for the fourth quarter of
2012, compared with $59.5 million for the fourth quarter of 2011. Total
wholesale net product margin grew to $42.6 million for the fourth quarter of
2012, compared with $36.5 million for the same period in 2011. In the Gasoline
Distribution and Station Operations segment, net product margin increased 204%
to $68.4 million from $22.5 million in the comparable period of 2011.
Commercial segment net product margin decreased to $4.5 million for the fourth
quarter of 2012 compared with $6.6 million in the same period of 2011.

Full Year 2012 Financial Summary
Net income for the 12 months ended December 31, 2012 was $46.7 million, or
$1.71 per diluted limited partner unit, compared with $19.4 million, or $0.87
per diluted limited partner unit, for the same period in 2011. The Partnership
had approximately 26.6 million and 21.5 million diluted weighted average
limited partner units outstanding for the 12 months ended December 31, 2012
and 2011, respectively.

Combined net product margin for 2012 was $370.2 million, compared with $234.0
million for 2011.

EBITDA for the 12 months ended December 31, 2012 increased 58% to $135.8
million from $85.7 million for the same period in 2011.

Distributable cash flow for 2012 was $80.8 million, compared with $46.7
million for the comparable period in 2011.

Sales for the 12 months ended December 31, 2012 increased 19% to $17.6
billion, compared with $14.8 billion for the same period in 2011, reflecting
the contributions of crude oil activity and the Alliance acquisition.
Wholesale segment sales were $13.8 billion, or 78% of total sales, for 2012,
compared with $12.6 billion, or 85% of total sales, for 2011. Sales from the
Gasoline Distribution and Station Operations segment were $3.1 billion, or 18%
of total sales, for 2012, compared with $1.5 billion, or 10% of total sales,
for 2011. Commercial segment sales were $716.2 million, or 4% of total sales,
for 2012, compared with $775.0 million, or 5% of total sales, for 2011.

Combined product volume totaled 6.1 billion gallons in 2012, compared with 5.2
billion gallons in 2011. Wholesale segment volume increased to 4.8 billion
gallons versus 4.4 billion gallons in 2011. Volume in the Gasoline
Distribution and Station Operations segment was up 115% to 954.3 million
gallons in 2012 from 442.9 million gallons in 2011. Commercial segment volume
increased to 352.2 million gallons in 2012, compared with 338.2 million
gallons in 2011.

Combined gross profit increased 59% to $333.5 million in 2012 from $209.6
million in 2011. Total wholesale net product margin grew 17% to $145.4 million
in 2012, compared with $123.8 million for the same period in 2011. In the
Gasoline Distribution and Station Operations segment, net product margin
increased 134% to $206.1 million from $88.2 million in 2011. Commercial
segment net product margin decreased to $18.7 million in 2012 compared with
$22.0 million in 2011.

Recent Highlights

  *Global and Phillips 66 (NYSE:PSX) signed a five-year take-or-pay contract
    under which Global is using its rail transloading, logistics and
    transportation system to deliver crude oil from the Bakken region of North
    Dakota to Phillips 66’s Bayway, NJ refinery. The agreement includes a
    take-or-pay commitment from Phillips 66 to receive approximately 91
    million barrels of crude oil over the contract term.
  *Global completed its acquisition of a 60% membership interest in Basin
    Transload, which operates two transloading facilities for crude oil and
    other products in Columbus and Beulah, ND with a combined rail loading
    capacity of 160,000 barrels per day.
  *Global completed its acquisition of 100% of the membership interests of
    Cascade Kelly Holdings, which owns a West Coast crude oil and ethanol
    facility near Portland, Oregon. The assets include a rail transloading
    facility serviced by the BNSF Railway, 200,000 barrels of storage
    capacity, a deepwater marine terminal with access to a 1,200-foot leased
    dock and the largest ethanol plant on the West Coast.
  *In connection with its Basin Transload and Cascade Kelly acquisitions,
    Global increased its bank credit facility by $115 million and issued a $70
    million senior unsecured five-year note to funds managed by GSO Capital
    Partners LP, the credit arm of The Blackstone Group.
  *The Board of Directors of the Partnership’s general partner, Global GP
    LLC, increased the Partnership’s quarterly cash distribution to $0.57 per
    unit ($2.28 per unit on an annualized basis) on all of its outstanding
    common units for the period from October 1 through December 31, 2012. The
    distribution was paid on February 14, 2013 to unitholders of record as of
    the close of business February 5, 2013.

Business Outlook
“We closed 2012 with strong financial and operational momentum,” Slifka said.
“In addition to our gasoline activity and increased wholesale volumes, we are
successfully implementing a rail strategy that leverages our expertise in
midstream logistics and marketing, strengthening our position at the forefront
of a large and growing market opportunity to move mid-continent and Canadian
origin crude from the well to consumption.”

As previously announced, excluding the recently completed Cascade Kelly
Holdings acquisition, for full-year 2013 the Partnership expects EBITDA in the
range of $175 million to $190 million. The Partnership’s outlook is based on
assumptions regarding current 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.

Financial Results Conference Call

Management will review the Partnership’s fourth-quarter and year-end 2012
financial results in a teleconference call for analysts and investors today.

Time:               10:00 a.m. ET
Dial-in numbers:       (877) 709-8155 (U.S. and Canada)
                       (201) 689-8881 (International)

The call also will be webcast live and archived on Global’s website,
www.globalp.com.

Use of Non-GAAP Financial Measures

Net Product Margin

Global Partners views net product margin as an important performance measure
of the core profitability of its operations. The Partnership reviews net
product margin monthly for consistency and trend analysis. Global Partners
defines net product margin as sales minus product costs. Sales primarily
include sales of unbranded and branded gasoline, distillates, residual oil,
renewable fuels, crude oil and natural gas, as well as convenience store sales
and gasoline station rental income. Product costs include the cost of
acquiring the refined petroleum products, renewable fuels, crude oil and
natural gas and all associated costs including shipping and handling costs to
bring such products to the point of sale as well as product costs related to
convenience store items. The Partnership also looks at net product margin on a
per unit basis (net product margin divided by volume). Net product margin is a
non-GAAP financial measure used by management and external users of Global
Partners' consolidated financial statements to assess the Partnership’s
business. Net product margin should not be considered 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’ net product margin may not be comparable to net product margin or a
similarly titled measure of other companies.

EBITDA

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
  *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.

About Global Partners LP

A publicly traded master limited partnership, Global Partners LP is a
midstream logistics and marketing company. Global is a leader in the logistics
of transporting Bakken and Canadian crude oil and other energy products via
rail, establishing a ‘virtual pipeline’ from the mid-continent region of the
U.S. and Canada to refiners and other customers on the East and West coasts.
Global owns, controls or has access to one of the largest terminal networks of
petroleum products and renewable fuels in the Northeast, and is one of the
largest wholesale distributors of gasoline, distillates, residual oil and
renewable fuels to wholesalers, retailers and commercial customers in New
England and New York. With a portfolio of approximately 1,000 locations in
nine states, the Partnership is also one of the largest independent owners,
suppliers and operators of gasoline stations and convenience stores in the
Northeast. In addition, the Partnership is a distributor of natural gas.
Global is No. 182 in the Fortune 500 list of America’s largest corporations.

Forward-looking Statements

Some of the information contained in this news release 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,” “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. Estimates for Global Partners LP’s future
EBITDA are based on a number of assumptions regarding market conditions,
including demand for petroleum products and renewable fuels, weather, credit
markets and the forward product pricing curve. Therefore, Global Partners LP
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, 2011 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.

GLOBAL PARTNERS LP
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per unit data)
(Unaudited)
                                                                 
                                                                            
                     Three Months Ended                Twelve Months Ended
                     December 31,                      December 31,
                     2012             2011           2012              2011         
                                                                            
Sales                $ 5,117,259       $ 4,106,744     $ 17,625,997       $ 14,835,729
Cost of sales         5,012,385       4,047,246     17,292,509       14,626,131 
Gross profit           104,874           59,498          333,488            209,598
                                                                            
Costs and
operating
expenses:
Selling,
general and            30,855            21,520          101,463            78,605
administrative
expenses
Operating              39,721            18,602          140,413            73,534
expenses
Restructuring          -                 311             -                  2,030
charges
Amortization          1,651           1,217         7,024            4,800      
expense
Total costs
and operating         72,227          41,650        248,900          158,969    
expenses
                                                                            
Operating              32,647            17,848          84,588             50,629
income
                                                                            
Interest              (8,563    )      (7,731    )    (36,268    )      (31,209    )
expense
                                                                            
Income before
income tax             24,084            10,117          48,320             19,420
expense
                                                                            
Income tax            (1,349    )      (68       )    (1,577     )      (68        )
expense
                                                                            
Net income             22,735            10,049          46,743             19,352
                                                                            
Less: General
partner's
interest in
net income,           (479      )      (229      )    (1,212     )      (684       )
including
incentive
distribution
rights (1)(2)
                                                                            
Limited
partners'            $ 22,256         $ 9,820        $ 45,531          $ 18,668     
interest in
net income
                                                                            
Basic net
income per
limited              $ 0.81           $ 0.46         $ 1.73            $ 0.88       
partner unit
(3)
                                                                            
Diluted net
income per
limited              $ 0.81           $ 0.45         $ 1.71            $ 0.87       
partner unit
(3)
                                                                            
Basic weighted
average
limited               27,311          21,550        26,393           21,280     
partner units
outstanding
                                                                            
Diluted
weighted
average               27,487          21,723        26,567           21,474     
limited
partner units
outstanding
                                                                            

(1) Calculations for 2012 include the effect of the March 1, 2012 issuance of
5,850,000 common units in connection with the acquisition of Alliance Energy
LLC. As a result, the general partner interest was reduced to 0.83% for the
three months ended December 31, 2012 and, based on a weighted average, 0.86%
for the twelve months ended December 31, 2012.

(2) Calculations for 2011 include the effect of the November 2010 and February
2011 public offerings. As a result, the general partner interest was reduced
to 1.06% for the three months ended December 31, 2011 and, based on a weighted
average, 1.09% for the twelve months ended December 31, 2011.

(3) Under the Partnership's partnership agreement, for any quarterly period,
the incentive distribution rights ("IDRs") participate in net income only to
the extent of the amount of cash distributions actually declared, thereby
excluding the IDRs from participating in the Partnership's undistributed net
income or losses. Accordingly, the Partnership's undistributed net income is
assumed to be allocated to the limited partners' interest and to the General
Partner's general partner interest. Limited partners' interest in net income
is divided by the weighted average limited partner units outstanding in
computing the net income per limited partner unit.

GLOBAL PARTNERS LP
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                           
                                                                     
                                               December 31,       December 31,
                                               2012               2011
Assets
Current assets:
Cash and cash equivalents                      $  5,977           $  4,328
Accounts receivable, net                          696,762            621,670
Accounts receivable - affiliates                  1,307              1,776
Inventories                                       634,667            664,144
Brokerage margin deposits                         54,726             43,935
Fair value of forward fixed price                 48,062             23,224
contracts
Prepaid expenses and other current               65,432            61,561
assets
Total current assets                              1,506,933          1,420,638
                                                                     
Property and equipment, net                       712,322            408,850
Goodwill                                          32,326             -
Intangible assets, net                            60,822             36,710
Other assets                                     17,349            10,427
                                                                     
Total assets                                   $  2,329,752       $  1,876,625
                                                                     
                                                                     
Liabilities and partners' equity
Current liabilities:
Accounts payable                               $  759,698         $  575,776
Working capital revolving credit                  83,746             62,805
facility - current portion
Environmental liabilities - current               4,341              2,936
portion
Trustee taxes payable                             91,494             76,523
Accrued expenses and other current                71,442             41,307
liabilities
Obligations on forward fixed price               34,474            19,481
contracts
Total current liabilities                         1,045,195          778,828
                                                                     
Working capital revolving credit                  340,754            526,095
facility - less current portion
Revolving credit facility                         422,000            205,000
Environmental liabilities - less current          39,831             27,303
portion
Other long-term liabilities                      45,511            24,110
Total liabilities                                 1,893,291          1,561,336
                                                                     
Partners' equity                                 436,461           315,289
                                                                     
Total liabilities and partners' equity         $  2,329,752       $  1,876,625
                                                                    

GLOBAL PARTNERS LP
FINANCIAL RECONCILIATIONS
(In thousands)
(Unaudited)
                                                           
                         Three Months Ended          Twelve Months Ended
                         December 31,                December 31,
                         2012         2011         2012          2011      
Reconciliation
of gross
profit to net
product margin
Wholesale
segment:
Gasoline and
gasoline                 $ 20,257      $ 9,989       $ 54,639       $ 56,224
blendstocks
Other oils and
related                   22,341      26,517      90,790       67,609  
products
Total                      42,598        36,506        145,429        123,833
Gasoline
Distribution
and Station
Operations
segment:
Gasoline                   50,422        14,526        139,706        56,690
distribution
Station                   18,017      7,985       66,384       31,491  
operations
Total                      68,439        22,511        206,090        88,181
Commercial                4,494       6,609       18,652       21,975  
segment
Combined net               115,531       65,626        370,171        233,989
product margin
Depreciation
allocated to              10,657      6,128       36,683       24,391  
cost of sales
Gross profit             $ 104,874    $ 59,498     $ 333,488     $ 209,598 
                                                                      
Reconciliation
of net income
to EBITDA
Net income               $ 22,735      $ 10,049      $ 46,743       $ 19,352
Depreciation
and
amortization
and                        14,442        8,907         51,211         35,082
amortization
of deferred
financing fees
Interest                   8,563         7,731         36,268         31,209
expense
Income tax                1,349       68          1,577        68      
expense
EBITDA                   $ 47,089     $ 26,755     $ 135,799     $ 85,711  
                                                                      
Reconciliation
of net cash
provided by
(used in)
operating
activities to
EBITDA
Net cash
provided by
(used in)                $ 42,752      $ (10,578 )   $ 232,452      $ (17,357 )
operating
activities
Net changes in
operating
assets and                 (5,575  )     29,534        (134,498 )     71,791
liabilities
and certain
non-cash items
Interest                   8,563         7,731         36,268         31,209
expense
Income tax                1,349       68          1,577        68      
expense
EBITDA                   $ 47,089     $ 26,755     $ 135,799     $ 85,711  
                                                                      
Reconciliation
of net income
to
distributable
cash flow
Net income               $ 22,735      $ 10,049      $ 46,743       $ 19,352
Depreciation
and
amortization
and                        14,442        8,907         51,211         35,082
amortization
of deferred
financing fees
Amortization
of routine
bank                       (1,195  )     (959    )     (4,073   )     (3,467  )
refinancing
fees
Maintenance
capital                   (3,914  )    (1,545  )    (13,112  )    (4,226  )
expenditures
Distributable            $ 32,068     $ 16,452     $ 80,769      $ 46,741  
cash flow
                                                                      
Reconciliation
of net cash
provided by
(used in)
operating
activities to
distributable
cash flow
Net cash
provided by
(used in)                $ 42,752      $ (10,578 )   $ 232,452      $ (17,357 )
operating
activities
Net changes in
operating
assets and                 (5,575  )     29,534        (134,498 )     71,791
liabilities
and certain
non-cash items
Amortization
of routine
bank                       (1,195  )     (959    )     (4,073   )     (3,467  )
refinancing
fees
Maintenance
capital                   (3,914  )    (1,545  )    (13,112  )    (4,226  )
expenditures
Distributable            $ 32,068     $ 16,452     $ 80,769      $ 46,741  
cash flow

Contact:

Global Partners LP
Thomas J. Hollister, 781-894-8800
Chief Operating Officer and Chief Financial Officer
or
Edward J. Faneuil, 781-894-8800
Executive Vice President, General Counsel and Secretary
 
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