Global Partners expands Houston bunkering, acquires Providence terminal, boosts fuel margin
Global Partners LP expanded its bunkering operations into Houston and completed the Providence terminal acquisition, enhancing its storage, marine and truck rack network. The company reported a leverage ratio of 3.59 times, Q4 fuel margins rose $0.09 to $0.45 per gallon, and adjusted EBITDA slipped to $94.8 million.
1. Balance Sheet and Liquidity
Global Partners LP ended Q4 with a leverage ratio of 3.59 times and maintained ample capacity on its credit facilities. Outstanding borrowings stood at $226.1 million on its working capital revolver and $103.5 million on a $500 million revolving credit facility as of December 31, 2025.
2. Strategic Expansions
In Q4, the company expanded its bunkering business into the Houston market with leased barges and terminals, positioning itself near major refining hubs. It also acquired the Providence terminal to increase its storage, marine, and truck rack capabilities in key Northeastern markets.
3. Q4 Financial Performance
Fuel margins increased by $0.09 to $0.45 per gallon year-over-year, while adjusted EBITDA declined to $94.8 million from $97.8 million. Net income rose marginally to $25.1 million, but distributable cash flow fell to $38.4 million amid lower product margins in its Wholesale and station operations segments.
4. Capital Expenditure and Investments
Capital expenditures totaled $38.8 million in Q4, with $22.6 million allocated to maintenance and $16.2 million to expansion projects. The CFO highlighted continued investments in data analytics and terminal upgrades expected to drive future efficiency gains.