In a recent series of transactions, Global GP LLC, the general partner of Global Partners LP (NYSE:GLP), has acquired a significant number of common units representing limited partner interests. The purchases, which took place over a span of three days, amounted to a total of $766,350.
The buying spree began on August 27, 2024, with the purchase of 5,000 common units at an average price of $42.67. The following day, an additional 5,000 units were acquired at an average price of $42.98. The transactions continued on August 29, with the purchase of 7,500 units at an average price of $45.08. The prices for these units varied within specific ranges during the multiple transactions, with the lowest price being $42.67 and the highest reaching $45.08.
Global GP LLC has stated that the purpose of these purchases is to fulfill obligations related to awards previously granted to directors and officers under the Global Partners LP Long-Term Incentive Plan (LTIP). It should be noted that Global GP LLC disclaims any pecuniary interest in these securities, and the report does not imply that it is the beneficial owner of the securities for the purpose of Section 16.
This series of acquisitions by the general partner demonstrates a tangible commitment to the company and may be of interest to current and potential investors. The common units purchased are part of the wholesale petroleum bulk stations and terminals industry, under which Global Partners LP operates.
Investors and security holders may request detailed information about the exact number of units purchased at each price point within the ranges disclosed. The transactions were officially signed by Amy J. Gould, Attorney-in-Fact for Global GP LLC, on August 29, 2024.
In other recent news, Global Partners LP reported substantial growth for Q2 2024, with significant year-over-year increases in key profitability metrics. This includes operating income, net income, DCF, and adjusted EBITDA. The company cited strategic acquisitions and healthy retail fuel margins as primary contributors to this growth. Expansion in the Wholesale segment was particularly notable, with the acquisition of 29 terminals effectively doubling storage capacity.
The Gasoline Distribution and Station Operations (GDSO) segment also demonstrated robust performance, benefiting from successful merchandising initiatives. However, operating expenses and SG&A expense increased due to acquisitions and elevated professional fees. Despite this, the quarterly cash distribution on common units rose by 6.7% over the prior year.
Looking ahead, management conveyed positive momentum moving into the second half of the year, with a focus on strategic growth objectives to deliver value for unitholders. They also announced participation in the upcoming Citi 2024 One-on-One Midstream & New Energy Infrastructure Conference. These are among the recent developments for Global Partners LP.
InvestingPro Insights
Amidst the recent acquisitions by Global GP LLC, insights from InvestingPro shed light on the financial health and market position of Global Partners LP (NYSE:GLP). With a market capitalization of $1.46 billion, GLP has demonstrated resilience in its stock performance, with a notable one-year price total return of 54.66%, reflecting a strong return over the past year. This aligns with the InvestingPro Tip highlighting GLP's high return over the last year, which could be a signal of investor confidence and the company's potential for continued growth.
Investors interested in dividend performance will find it noteworthy that GLP has raised its dividend for 3 consecutive years, and impressively, has maintained dividend payments for 19 consecutive years. The current dividend yield stands at 6.36%, which is particularly attractive for income-seeking investors. This consistent dividend history, as indicated in the InvestingPro Tips, may serve as a testament to the company's commitment to shareholder returns, despite a challenging business environment characterized by weak gross profit margins of 6.15%.
For those looking at valuation metrics, GLP is trading at a price-to-earnings (P/E) ratio of 16.47, closely aligned with the adjusted P/E ratio for the last twelve months as of Q2 2024 at 16.52. While the company's valuation implies a poor free cash flow yield, as per InvestingPro Tips, the low revenue valuation multiple could suggest that the stock is undervalued relative to its revenue generation capabilities.
For more insights and additional InvestingPro Tips, which include analysis on cash burn and profitability, investors can visit InvestingPro's comprehensive platform at https://www.investing.com/pro/GLP. Currently, there are 10 more InvestingPro Tips available that can provide a deeper understanding of Global Partners LP's financial and operational performance.
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