Company Remains Well Positioned with a Healthy Balance Sheet and Ample Liquidity
WALTHAM, Mass.--(BUSINESS WIRE)--
Global Partners LP (NYSE:GLP) today issued a statement in response
to a news brief published on Friday by Oil Express, an industry
newsletter.
Global Partners' President and CEO Eric Slifka said, "The Oil
Express article contains inaccurate assertions about Global Partners.
The publication draws from two completely unrelated events: 1) a
routine amendment to our credit agreement with our bank group, and 2)
a marketing letter to the heating oil industry, which appears below in
its entirety. Oil Express said that our letter "provoked concern about
Global's financial position" without providing any sources or an
opportunity for the company to comment."
Slifka said, "Contrary to the assertions made in the article, we
have not heard such concerns. In fact, customers and industry players
who received our letter have expressed their support and appreciation
for our commitment to the industry. Global's financial position
remains strong and our access to capital remains favorable:
-- We reported earnings of $7.3 million through the first six
months of 2008.
-- We maintain a healthy balance sheet, supported with a net
worth of $154 million at June 30.
-- We do not have any trade, hedging or derivative exposures with
Lehman Brothers, AIG or SemGroup L.P.
-- We have $750 million in total credit facilities from a very
supportive 13-member bank group. These facilities are
committed through 2011, and provide us with ample borrowing
capacity for our business."
"As we stated in our August 7, 2008 press release, it is
management's intention to recommend to the Board of Directors of our
general partner that we maintain our cash distribution at $0.4875 per
unit for the third and fourth quarters of 2008," Slifka said. "While
this recommendation is subject to revision each quarter, Global
Partners remains well positioned with a healthy balance sheet and
ample liquidity that provides us with an excellent base for our
business."
An open letter to the heating oil industry from Eric Slifka,
President and CEO of Global Companies, LLC
If you reside in the Northeast where our heating oil market is
concentrated, you're likely familiar with the phrase "If you don't
like the weather just wait a few minutes." I draw a parallel between
oil and the weather, because while our local markets remain weather
driven, the supply and demand factors that determine the price you and
your customers pay for heating oil are not only dependent on these
variables but also the costs and risks associated with carrying
inventory. Unlike the changing weather, Global remains dedicated in
its commitment to the retail heating oil dealer.
I am writing to assure our valued customers that Global Companies
is in the best position to respond to the most extreme market
conditions. We are a company that you have come to know and trust from
the day of our founding as an independent, family-owned fuel oil
wholesaler. Global Companies has the same vision of consistent supply
and service to the customers and markets we serve. We have our own
supply department that sources products from all corners of the globe,
providing our customers with the most dependable sources of supply
available in the market. We have been entrusted to manage the daily
supply needs of many large multinational energy and manufacturing
companies totaling the tens of millions of barrels annually.
Specifically, our success is attributable to the faith and
confidence our heating oil customers continue to place in Global. In
return, we have made significant capital investments over the last
several years to expand our terminal storage capacity throughout the
Northeast to provide direct access to product at strategic locations
24/7/365. Unlike other companies from whom you could buy product,
Global stands alone in terms of its historical commitment and
dedication to heating oil retailers.
We know your business. The Slifka family has been there, having
owned and operated many retail heating oil businesses in the past.
Today we are a terminal and wholesale marketing distribution company
that shares and understands your concerns. You, our customer, and your
own customers come first. Delivering supply when needed is one of the
most important steps in this process. Global focuses on addressing the
needs of each heating oil retailer and the heating needs of an entire
region. Quite simply, we are as committed to your success as we are to
our own.
As we continue to plan for this heating season, Global is
confident about the future of our industry. Situations may arise that
will try our collective patience. However, as we have witnessed
before, having oil available at the most critical times allows us to
maintain a mutually beneficial and prosperous relationship. These are
risks that we can and will weather together.
Warmest Regards,
Eric Slifka, President and Chief Executive Officer
Global Companies, LLC
About Global Partners LP
Global Partners LP, a publicly traded master limited partnership
based in Waltham, Massachusetts, owns, controls and has access to one
of the largest terminal networks of refined petroleum products in the
Northeast. The partnership is one of the largest wholesale
distributors of gasoline, distillates (such as home heating oil,
diesel and kerosene) and residual oil to wholesalers, retailers and
commercial customers in the region. Global Partners LP, a FORTUNE
500(R) company, trades on the New York Stock Exchange under the ticker
symbol "GLP." For additional information, please visit
www.globalp.com.
Safe Harbor Statement
This news release contains certain "forward-looking statements"
within the meaning of the federal securities laws. These
forward-looking statements are identified as any statements that do
not relate strictly to historical or current facts and can generally
be identified by the use of forward-looking terminology including
"will," "may," "believe," "expect," "anticipate," "estimate,"
"continue" or other similar words. Such statements may discuss
business prospects, goals, new developments and future expectations or
contain projections of results of operations, financial condition and
Global Partners LP's ability to make distributions to unitholders.
These statements are not guarantees of performance. Although Global
Partners LP believes these forward-looking statements are based on
reasonable assumptions, statements made regarding future results are
subject to a number of assumptions, uncertainties and risks, many of
which are beyond the control of Global Partners LP, which may cause
actual results to be materially different from the forward-looking
statements contained in this news release. For specific risks and
uncertainties that could cause actual results to differ materially
from forward-looking statements, please refer to Global Partners LP's
Annual Report on Form 10-K for the year ended December 31, 2007 and
subsequent filings the partnership makes with the Securities and
Exchange Commission. All forward-looking statements included in this
news release and all subsequent written or oral forward-looking
statements attributable to Global Partners LP or persons acting on its
behalf are expressly qualified in their entirety by these cautionary
statements. The forward-looking statements speak only as of the date
made, and Global Partners LP undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
Source: Global Partners LP