Underpinned by a 25-year guaranteed take-or-pay
throughput agreement, the strategically located assets will
significantly increase Global’s operating footprint
Global Partners LP (“Global”) (NYSE:GLP), an integrated storage,
distribution and retail liquid energy company, has entered into an
asset purchase agreement with Motiva Enterprises LLC (“Motiva”) to
acquire 25 liquid energy terminals along the Atlantic Coast, in the
Southeast and in Texas. Global has agreed to purchase the
terminals, with a shell capacity of 8.4 million barrels, for $305.8
million in cash.
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On Thursday, November 9, 2023, Global
Partners LP (NYSE:GLP) announced the signing of an asset purchase
agreement with Motiva Enterprises LLC to acquire 25 liquid energy
terminals along the Atlantic Coast, in the Southeast and in Texas
for $305.8 million in cash. The terminals have an aggregate shell
capacity of 8.4 million barrels. (Graphic: Global Partners LP)
Global currently owns or leases 24 liquid energy terminals in
states throughout the Northeast and in North Dakota and Oregon.
This acquisition will significantly increase Global’s terminal
capacity and geographic reach to cover the Atlantic Coast and the
US Gulf. The strategically located assets have a direct connection
to a critical network of docks and refined product
pipelines—Colonial, Plantation, Enterprise, Explorer, and Magellan.
Upon closing, Global’s storage capacity will increase approximately
85 percent to 18.3 million barrels.1
“This acquisition is an exceptional opportunity to deliver on
our strategy and create value by expanding our footprint into areas
with increasing population centers. As a premier operator of
terminals, wholesale distribution and retail marketing, we believe
these terminals allow us to leverage our expertise in supply and
give us a platform for growth in all aspects of our business,” said
Eric Slifka, Global’s President and Chief Executive Officer.
“The transaction is backed by a 25-year agreement with Motiva,
our anchor tenant, that includes minimum annual revenue
commitments,” Mr. Slifka added. “This acquisition, underpinned by
the strength of a long-term throughput agreement, will provide the
potential for growth into the future.”
Jeff Rinker, Motiva’s President and Chief Executive Officer,
said, “With the divestiture of our product terminals, we will
increase our focus on growing our core manufacturing and logistics
centered around Port Arthur Manufacturing Complex while continuing
to strengthen and grow our marketing channels. I’m excited about
entering this long-term partnership with Global Partners and
believe the relationship with such an outstanding terminal operator
will be positive for our customers and support growth of our
marketing business.”
The acquisition is subject to customary closing conditions,
including regulatory approvals, and expected to close by year-end.
Global expects the acquisition to be accretive to distributable
cash flow per common unit in the first full year of operations,
excluding the impact of first year transition-related expenses.
BofA Securities acted as exclusive financial advisor to Global. The
purchase price will be funded with borrowings under Global’s
revolving credit facility.
About Global Partners LP
With approximately 1,700 locations primarily in the Northeast,
Global Partners is one of the region’s largest independent owners,
suppliers and operators of gasoline stations and convenience
stores. Global also owns, controls or has access to one of the
largest terminal networks in New England and New York, through
which it distributes gasoline, distillates, residual oil and
renewable fuels to wholesalers, retailers and commercial customers.
In addition, Global engages in the transportation of petroleum
products and renewable fuels by rail from the mid-continental U.S.
and Canada. Global, a master limited partnership, trades on the New
York Stock Exchange under the ticker symbol “GLP.” For additional
information, visit www.globalp.com.
About Motiva Enterprises
Headquartered in Houston, Texas, Motiva refines, distributes,
and markets petroleum products throughout the Americas. The
company’s Port Arthur Manufacturing Complex is comprised of North
America’s largest refinery with a crude capacity of 640,000 barrels
a day, the country’s largest base oil plant, and an adjacent
chemical plant. Under exclusive, long-term brand licenses with
Shell and Phillips 66 (for the 76® brand), Motiva’s marketing
operations support more than 5,000 retail gasoline stations. Motiva
is wholly owned by Aramco.
Forward-looking Statements
Certain statements and information in this press release may
constitute “forward-looking statements.” The words “believe,”
“expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,”
“would,” “could” or other similar expressions are intended to
identify forward-looking statements, which are generally not
historical in nature, although not all forward-looking statements
contain such identifying words. These forward-looking statements
are based on Global’s current expectations and beliefs concerning
future developments and their potential effect on the Partnership.
While management believes that these forward-looking statements are
reasonable as and when made, there can be no assurance that future
developments affecting the Partnership will be those that it
anticipates. Forward-looking statements involve significant risks
and uncertainties (some of which are beyond the Partnership’s
control) including, without limitation, uncertainty around the
timing of an economic recovery in the United States which will
impact the demand for the products we sell and the services that we
provide, and assumptions that could cause actual results to differ
materially from the Partnership’s historical experience and present
expectations or projections. We believe these assumptions are
reasonable given currently available information. Our assumptions
and future performance are subject to a wide range of business
risks, uncertainties and factors, which are described in our
filings with the Securities and Exchange Commission (SEC).
For additional information regarding known material factors that
could cause actual results to differ from the Partnership’s
projected results, please see Global’s filings with the SEC,
including its Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
Global undertakes no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise.
1 Based on the Partnership’s storage capacity as of September
30, 2023.
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version on businesswire.com: https://www.businesswire.com/news/home/20231108711745/en/
Media Catie Kerns SVP Corporate Affairs and
Sustainability Global Partners LP media@globalp.com (781) 894-8800
Investors Gregory B. Hanson Chief Financial Officer Global
Partners LP (781) 894-8800
Grafico Azioni Global Partners (NYSE:GLP)
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Da Dic 2024 a Gen 2025
Grafico Azioni Global Partners (NYSE:GLP)
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