Global GP LLC, the general partner of Global Partners LP (NYSE:GLP), recently acquired common units representing limited partner interests in a series of transactions. On November 14, 15, and 18, the firm purchased a total of 15,000 units, with transaction prices ranging from $49.25 to $50.76 per unit. This acquisition amounted to a total investment of approximately $747,600.
These purchases were made to satisfy obligations related to awards previously granted to directors and officers under Global Partners LP's Long-Term Incentive Plan. The reporting entity, Global GP LLC, has noted that it disclaims any pecuniary interest in these securities. Following these transactions, Global GP LLC now holds a total of 283,307 common units.
In other recent news, Global Partners LP reported significant financial growth in its third-quarter earnings call. The company's Adjusted EBITDA rose to $114 million from $77.7 million, while net income increased to $45.9 million from $26.8 million in the previous year. The distributable cash flow also saw a substantial rise to $71.1 million from $42.2 million, and a quarterly cash distribution of $0.73 per common unit was declared, marking a 6.6% increase year-over-year.
In addition to these financial highlights, Global Partners announced the acquisition of a 730-acre liquid energy terminal in East Providence, RI, and its active participation in the electric vehicle infrastructure expansion in Massachusetts. These recent developments reflect the company's focus on strategic growth and resilience in fluctuating markets.
Analysts noted the strong performance in Gasoline Distribution and Station Operations, with a $31.2 million increase in product margins. The firm is integrating 29 newly acquired liquid energy terminals and projected capital expenditures for 2024 are set between $50 million to $60 million for maintenance and $40 million to $50 million for expansion. The company's leverage ratio was reported at 3.27x as of September 30, 2024.
InvestingPro Insights
Global Partners LP (NYSE:GLP) has been showing strong performance recently, with the stock trading near its 52-week high and demonstrating robust returns. According to InvestingPro Data, GLP has seen a remarkable 55.56% price total return over the past year, and a 20.07% return in the last three months alone. This aligns with the recent insider purchases, potentially signaling confidence in the company's future prospects.
The company's financial health appears solid, with a market capitalization of $1.74 billion and a P/E ratio of 15.71, suggesting a reasonable valuation relative to earnings. GLP's revenue for the last twelve months as of Q3 2023 stood at $17.39 billion, with a 5.31% growth rate, indicating steady business expansion.
InvestingPro Tips highlight that GLP has maintained dividend payments for 19 consecutive years and has raised its dividend for 3 consecutive years. This is particularly noteworthy given the current dividend yield of 5.9%, which may be attractive to income-focused investors. The company's commitment to shareholder returns aligns with the recent unit purchases to satisfy Long-Term Incentive Plan obligations.
However, it's important to note that GLP operates with a significant debt burden, which investors should consider alongside its positive attributes. For a more comprehensive analysis, InvestingPro offers 12 additional tips that could provide deeper insights into GLP's financial position and future outlook.
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