2026 financial results conference call. Today's call is being recorded. With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slipka, Chief Financial Officer, Mr. Gregory Hansen, Chief Operating Officer, Mr. Mark Romain, and Chief Legal Officer, Ms. Kristen Seabrook. At this time, I would like to turn the call over to Ms. Seabrook for opening remarks. Please go ahead.

Good morning everyone and thank you for joining us. Today's call will include forward-looking statements within the meaning of federal security laws, including projections and expectations concerning the future financial and operational performance of global partners. No assurances can be given that these projections will be attained or that these expectations will be met. Our assumptions in future performance are subject to a wide range of business risks, uncertainties, and factors, including supply and demand, which could cause actual results to differ materially as described in our filings with the Securities and Exchange Commission. Global Partners undertakes no obligation to revise or update any forward-looking statements. Now, it's my pleasure to turn the call over to our President and Chief Executive Officer, Eric Sliska. Eric?

Thank you, Kristen, and good morning, everyone. We delivered a strong second quarter with each of our operating segments contributing meaningfully and our teams executing at a high level across business. These results underscore the strength of Global's integrated liquid energy platform and the advantage of operating across products, markets, and customers. That diversification is a competitive strength and allows us to capture value across changing market conditions and generate attractive returns. During the quarter, our gasoline distribution station operations segment benefited from improved fuel margins, while our wholesale and commercial segment also delivered positive year-over-year growth. These results reinforce the resiliency of our model and the value of maintaining a portfolio of assets that can perform across a variety of operating environments. But the core of our business is predictable, delivering steady cash flow regardless of the market. On top of that foundation is our ability to capture additional value when markets are dynamic, and we pursue that upside within a disciplined framework that manages our exposure as conditions shift. Against that backdrop, refined product markets remain volatile, with geopolitical developments contributing to elevated price swings, increased inventory risk, and tight inventory levels. Turning briefly to our distribution, last month our board approved a quarterly cash distribution of $0.78 per common unit or $3.12 on an annualized basis. The distribution will be paid on August 14th to unit holders of record as of August 12th. Now, let me turn the call over to Greg for the financial review.

Thank you, Eric, and good morning, everyone. As we review the numbers, unless otherwise noted, all comparisons will be with the second quarter of 2025. Net income in the second quarter of 26 was $71 million versus $25.2 million in the prior year period. EBITDA was $146 million in the second quarter versus $95.7 million in 25. And adjusted EBITDA was $148.2 million compared with $98.2 million. Distributable cash flow was $92.6 million in the second quarter of 26, compared with $52 million, and adjusted DCF was $92.5 million versus $52.3 million. We continue to maintain healthy distribution coverage at quarter end 2.25 times or 2.19 times after including distributions to our preferred unit holders. Moving to our segment details, GDSO segment product margin increased $37.3 million in the quarter to $245.2 million. Product margin from gasoline distribution increased $37.1 million to $175 million, primarily reflecting higher fuel margins year-over-year. On a cents-per-gallon basis, fuel margin increased by $0.14 to $0.50 in Q2-26, from $0.36 in Q2-25. Station operations product margin, which includes convenience store and prepared food sales, sundries, and rental income increased $0.2 million to $70.2 million in the second quarter of 26. Quarter end, our GDSO portfolio of fueling stations and C-stores consists of 1,505 sites, exclusive of the 69 sites under our Spring Partners retail joint venture. Turning to our wholesale segment, second quarter product margin increased $14.8 million to $106.5 million. Product margin from gasoline and gasoline blunt socks increased $19.6 million to $78.4 million, primarily reflecting more favorable market conditions in gasoline. Product margin from distalists and other oils decreased 4.8 million to 28.1 million, primarily due to less favorable market conditions in residual oil. In our commercial segment, product margin increased 4.4 million to 10.5 million, primarily reflecting more favorable market conditions in our bunkering group. As Eric mentioned, we are pleased with the results across our segments and our team's ability to capture value in a dynamic market environment. We continue to expect the current steep backwardation in the forward product pricing curve to increase the cost of carrying our hedged inventory in the future periods, and we remain focused on disciplined inventory management, driving growth across our segments, and efficient operations. Operating expenses increased $1.1 million in the second quarter to $136.8 million, reflecting higher expenses associated with our GDSO operations, offset by lower expenses related to our terminal operations. SG&A increased $8.3 million to $83 million, primarily due to increase in discretionary incentive comp, wages and benefits, and other expenses, partially offset by a decrease in professional fees. Interest expense decreased $1.4 million to $33.1 million, partly due to lower average balances on our credit facilities. CapEx in the second quarter was $35 million, consisting of maintenance CapEx of $15.9 million and expansion CapEx of $19.1 million, primarily related to investments in our gasoline station business for the full year 2026 we continue to expect maintenance capex in the range of 60 million to 70 million and expansion capex excluding acquisitions in the range of 75 to 85 million our current capex estimates depend in part on the timing of project completions availability of equipment and labor whether in any unforeseen events or opportunities that require additional maintenance or investment Our balance sheet remains strong. As of June 30th, leverage has defined in our credit agreement as funded debt to EBITDA stood at 2.85 times, and we had ample excess capacity in our credit facility. We had $174.6 million outstanding on our working capital revolving credit facility and $103.5 million outstanding on our revolving credit facility. I'd also like to highlight on July 30th, we redeemed all the outstanding Series B fixed rate preferred units. This accretive transaction further simplifies our capital structure and enhances our financial flexibility going forward. Now, let me turn the call back to Eric for closing comments.

Thanks, Greg. Looking ahead, we remain focused on executing our strategy, investing thoughtfully in the business, and allocating capital to the highest return opportunities. We believe the quality of our asset base, the dedication of our team, and the strength of our balance sheet position global well for the remainder of 2026 and beyond we are committed to delivering attractive returns for our unit holders and building value that endures over time with that greg mark and i will be happy to take your questions operator please open the line for q a we will now be conducting a question and answer session if you would like to ask a question please press star 1 on your telephone keypad.

A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Our first question comes from the line of Greg Brody with Bank of America. Please proceed with your questions.

All right. Good morning, guys. Good morning, Greg. Would you mind just talking a little bit about the consumer behavior, what you're seeing out there? Are higher prices affecting purchases at all?

Yeah. Good morning, Greg. It's Mark. You know, I think we're seeing a little bit of that. We're seeing a little bit of impact from, you know, inflation, higher prices. I think where that shows up is, you know, the average size of the fill up is probably down a little bit. But I wouldn't say, you know, in a material fashion. And that's trading, you know, that could be trading also trading down from 93 octane to 87 octane. From a store standpoint, our store sales are pretty good. You know, transactions may be down a shade, but I wouldn't say anything material. We're not seeing anything material.

Yes, it's not, I don't see any numbers, it's, it's, it is interesting. And, yeah, and that's, that's continued through this quarter, through the first month of this quarter, same, same as QQ.

You're talking about, you're talking about July?

The customer behavior, yeah, yeah, customer behavior.

Yeah, I don't think you're seeing anything material different here as we enter into, or as we sit in the middle of Q3, I don't think we see anything different than we've seen for the better part of the year.

Got it. This decision to pay down the prep, it's just historically you've paid it down and refinanced it, but it sounds like that's a permanent decision. Is that just cost of capital or is there a change in the way you're viewing your credit profile?

Yeah, I mean, I guess it's a couple things. One, it's a very creative. obviously was at a fixed rate at 9.5%. It's a nice piece of paper. We used it for acquisitions, that equity component and acquisitions in the previous. But like the Series A, after five years when you're callable, given where our cost of capital is right now, and we also produced significant amount of excess cash flow year to date. And so it made a lot of sense to simplify our capital structure and take it out on a very accretive basis overall. Doesn't mean we wouldn't look to the prep equity or equity markets in the future for certain acquisitions, but given where we stand today, we've got a lot of excess capacity under our bank facilities and a very strong balance sheet, so it made a lot of sense on an accretion basis to take it out.

And just the last question for me, can you just talk about the M&A environment today, what you're seeing out there, the opportunity set and um the potential for you to be active yeah i think it i think it's been busy and there's a lot that's out there and as i've sort of always said you know we're gonna look for the right assets um we should be the high bidder on assets that fit us and complement our existing asset base and and uh in a position to try and execute on some deals actually time guys So, that's it for me.

Thank you, Greg.

We have reached the end of the question and answer session. Mr. Slifka, I'd like to turn the floor back over to you for closing comments.

Thank you again for your time today and for your continued interest in global. We look forward to speaking with you next quarter and wish everyone a great weekend.

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.