Global Partners Declares Fourth-Quarter 2024 Cash Distribution of $0.7400 on Common Units

Rhea-AI Summary

Global Partners LP (NYSE: GLP) has announced its fourth-quarter 2024 cash distribution of $0.7400 per unit, equivalent to $2.96 per unit annually. The distribution will be paid on February 14, 2025, to unitholders of record as of February 10, 2025.

The company also provided notice regarding non-U.S. withholding requirements, stating that 100% of distributions to non-U.S. investors are considered effectively connected with U.S. trade or business. These distributions are subject to federal income tax withholding at the highest applicable effective tax rate plus 10%, with brokers and nominees serving as withholding agents.

Positive

• Maintaining quarterly distribution of $0.74 per unit ($2.96 annualized)
• Consistent dividend payment schedule demonstrates financial stability

Negative

• None.

Insights

Financial Analyst

The declared quarterly distribution of $0.74 per unit showcases Global Partners LP's robust distribution policy, translating to an annualized rate of $2.96 per unit. This Master Partnership (MLP) continues to demonstrate financial stability through its consistent distribution payments, particularly noteworthy in the energy infrastructure sector.

The distribution policy carries significant implications for different investor categories. For U.S. investors, MLP distributions often receive favorable tax treatment as they're typically considered return of capital. However, for non-U.S. investors, the announcement outlines stringent withholding requirements, with brokers required to withhold at the highest applicable effective tax rate plus an additional 10%. This tax structure makes GLP potentially less attractive for international investors compared to traditional corporate dividends.

The maintenance of the distribution level signals management's confidence in the partnership's operational cash flows and business model sustainability. In the current market environment, where many energy companies are facing pressure to balance between distributions and capital investment, GLP's steady payout reflects strong underlying fundamentals in their wholesale distribution and gasoline station operations.

WALTHAM, Mass.--(BUSINESS WIRE)-- Global Partners LP (NYSE: GLP) (the “Partnership”) today announced that the Board of Directors of its general partner, Global GP LLC, has declared a cash distribution of $0.7400 per unit ($2.96 per unit on an annualized basis) on all of its outstanding common units from October 1, 2024 through December 31, 2024. The distribution will be paid on February 14, 2025 to unitholders of record as of the close of business on February 10, 2025.

Non-U.S. Withholding Information

Concurrent with this announcement we are providing qualified notice to brokers and nominees that hold Global Partners LP units on behalf of non-U.S. investors under Treasury Regulation Section 1.1446-4(b) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Brokers and nominees should treat one hundred percent (100%) of Global Partners LP’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. In addition, brokers and nominees should treat one hundred percent (100%) of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold. Accordingly, Global Partners LP’s distributions to non-U.S. investors are subject to federal income tax withholding at a rate equal to the highest applicable effective tax rate plus ten percent (10%). Nominees, and not Global Partners LP, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of non-U.S. investors.

About Global Partners LP

Building on a legacy that began more than 90 years ago, Global Partners has evolved into a Fortune 500 company and industry-leading integrated owner, supplier, and operator of liquid energy terminals, fueling locations, and guest-focused retail experiences. Global operates or maintains dedicated storage at 54 liquid energy terminals—with connectivity to strategic rail, pipeline, and marine assets—spanning from Maine to Florida and into the U.S. Gulf States. Through this extensive network, the company distributes gasoline, distillates, residual oil, and renewable fuels to wholesalers, retailers, and commercial customers. In addition, Global owns, operates and/or supplies more than 1,700 retail locations across the Northeast states, the Mid-Atlantic, and Texas, providing the fuels people need to keep them on the go at their unique guest-focused convenience destinations. Recognized as one of Fortune’s Most Admired Companies, Global Partners is embracing progress and diversifying to meet the needs of the energy transition.

Global, a master limited partnership, trades on the New York Stock Exchange under the ticker symbol “GLP.” For additional information, visit www.globalp.com.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250128471883/en/

Gregory B. Hanson

Chief Financial Officer

Global Partners LP

(781) 894-8800

Sean T. Geary

Chief Legal Officer and Secretary

Global Partners LP

(781) 894-8800

Source: Global Partners LP

FAQ

What is Global Partners LP's (GLP) Q4 2024 distribution amount per unit?

Global Partners LP's Q4 2024 distribution is $0.7400 per unit, which equals $2.96 per unit on an annualized basis.

When will GLP pay its Q4 2024 distribution?

The Q4 2024 distribution will be paid on February 14, 2025, to unitholders of record as of February 10, 2025.

What is the tax withholding requirement for non-U.S. investors holding GLP units?

Non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate plus 10% on 100% of the distributions.

What period does GLP's Q4 2024 distribution cover?

The distribution covers the period from October 1, 2024 through December 31, 2024.