Global Partners LP (NYSE:GLP) shares soared to an all-time high this week, reaching a peak of $53.55. The impressive milestone underscores a period of robust performance for the energy supply company, which has seen its stock value surge by 55.17% over the past year. Investors have rallied behind Global Partners, buoyed by the company's strategic initiatives and favorable industry trends, propelling the stock to unprecedented levels. This remarkable ascent reflects growing confidence in the firm's market position and its potential for sustained growth in the competitive energy sector.
In other recent news, Global Partners LP reported strong financial growth in its third-quarter earnings call. The company's adjusted EBITDA rose from $77.7 million the previous year to $114 million, while net income saw a substantial increase from $26.8 million to $45.9 million. Distributable cash flow also grew noticeably, rising from $42.2 million to $71.1 million compared to the same quarter last year. In addition, the quarterly cash distribution per common unit saw a year-over-year increase of 6.6%, reaching $0.73.
Global Partners also revealed its recent acquisition of a 730-acre liquid energy terminal in East Providence, RI, which is expected to bolster operations. The company is actively participating in the expansion of electric vehicle infrastructure in Massachusetts. The executives also shared their optimism about the company's partnership in Houston and plans to expand in that market.
These developments come as Global Partners integrates 29 newly acquired liquid energy terminals and projects capital expenditures for 2024 to be between $50 million to $60 million for maintenance and $40 million to $50 million for expansion. It is worth noting that the company's leverage ratio was reported at 3.27x as of September 30, 2024.
InvestingPro Insights
Global Partners LP's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's shares are currently trading near their 52-week high, with a strong return of 64.54% over the last year, surpassing the 55.17% mentioned in the article. This performance is part of a broader trend, as GLP has shown strong returns over various timeframes, including a 23.95% gain in the last three months.
InvestingPro data reveals that Global Partners has a market capitalization of $1.8 billion and a P/E ratio of 16.61, suggesting a reasonable valuation relative to its earnings. The company's revenue for the last twelve months as of Q3 2023 stood at $17.39 billion, with a growth rate of 5.31%. This growth is complemented by an attractive dividend yield of 5.53%, which may be appealing to income-focused investors.
InvestingPro Tips highlight that Global Partners has maintained dividend payments for 19 consecutive years and has raised its dividend for 3 consecutive years. This consistent dividend policy could be a contributing factor to investor confidence and the stock's recent performance.
For readers interested in a deeper analysis, InvestingPro offers 12 additional tips for Global Partners, providing a more comprehensive view of the company's financial health and market position.
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