Summary of financial information for the reportable segments |
Summarized financial information for the Partnership’s reportable segments is presented in the table below (in thousands): | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | | | 2024 | | 2023 | | 2024 | | 2023 | | Wholesale Segment: | | | | | | | | | | | | | | Sales | | | | | | | | | | | | | | Gasoline and gasoline blendstocks | | $ | 1,745,666 | | $ | 1,423,454 | | $ | 3,119,258 | | $ | 2,599,077 | | Distillates and other oils (1) | | | 917,022 | | | 683,256 | | | 2,182,778 | | | 1,967,056 | | Total | | $ | 2,662,688 | | $ | 2,106,710 | | $ | 5,302,036 | | $ | 4,566,133 | | Product margin | | | | | | | | | | | | | | Gasoline and gasoline blendstocks | | $ | 70,412 | | $ | 39,023 | | $ | 100,173 | | $ | 59,409 | | Distillates and other oils (1) | | | 21,453 | | | 20,699 | | | 41,112 | | | 53,446 | | Total | | $ | 91,865 | | $ | 59,722 | | $ | 141,285 | | $ | 112,855 | | Gasoline Distribution and Station Operations Segment: | | | | | | | | | | | | | | Sales | | | | | | | | | | | | | | Gasoline | | $ | 1,316,548 | | $ | 1,350,354 | | $ | 2,413,825 | | $ | 2,536,220 | | Station operations (2) | | | 149,525 | | | 148,100 | | | 279,693 | | | 275,266 | | Total | | $ | 1,466,073 | | $ | 1,498,454 | | $ | 2,693,518 | | $ | 2,811,486 | | Product margin | | | | | | | | | | | | | | Gasoline | | $ | 147,313 | | $ | 127,883 | | $ | 268,943 | | $ | 248,699 | | Station operations (2) | | | 74,154 | | | 71,196 | | | 140,241 | | | 133,926 | | Total | | $ | 221,467 | | $ | 199,079 | | $ | 409,184 | | $ | 382,625 | | Commercial Segment: | | | | | | | | | | | | | | Sales | | $ | 280,937 | | $ | 226,526 | | $ | 559,536 | | $ | 484,398 | | Product margin | | $ | 6,222 | | $ | 6,757 | | $ | 13,190 | | $ | 14,884 | | Combined sales and Product margin: | | | | | | | | | | | | | | Sales | | $ | 4,409,698 | | $ | 3,831,690 | | $ | 8,555,090 | | $ | 7,862,017 | | Product margin (3) | | $ | 319,554 | | $ | 265,558 | | $ | 563,659 | | $ | 510,364 | | Depreciation allocated to cost of sales | | | (31,670) | | | (22,899) | | | (60,640) | | | (45,641) | | Combined gross profit | | $ | 287,884 | | $ | 242,659 | | $ | 503,019 | | $ | 464,723 | |
(1) | Distillates and other oils (primarily residual oil and crude oil). |
(2) | Station operations consist of convenience store and prepared food sales, rental income and sundries. |
(3) | Product margin is a non-GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess its business. The table above includes a reconciliation of product margin on a combined basis to gross profit, a directly comparable GAAP measure. |
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Schedule of reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements |
A reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements is as follows (in thousands): | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | | | 2024 | | 2023 | | 2024 | | 2023 | | Combined gross profit | | $ | 287,884 | | $ | 242,659 | | $ | 503,019 | | $ | 464,723 | | Operating costs and expenses not allocated to operating segments: | | | | | | | | | | | | | | Selling, general and administrative expenses | | | 72,370 | | | 66,696 | | | 142,151 | | | 128,952 | | Operating expenses | | | 129,959 | | | 110,379 | | | 250,109 | | | 218,732 | | Amortization expense | | | 1,989 | | | 2,018 | | | 3,858 | | | 4,102 | | Net (gain) loss on sale and disposition of assets | | | (303) | | | 884 | | | (2,804) | | | (1,244) | | Total operating costs and expenses | | | 204,015 | | | 179,977 | | | 393,314 | | | 350,542 | | Operating income | | | 83,869 | | | 62,682 | | | 109,705 | | | 114,181 | | (Loss) income from equity method investments | | | (346) | | | 1,204 | | | (1,725) | | | 1,204 | | Interest expense | | | (35,531) | | | (21,806) | | | (65,227) | | | (43,874) | | Income tax expense | | | (1,843) | | | (691) | | | (2,206) | | | (1,091) | | Net income | | $ | 46,149 | | $ | 41,389 | | $ | 40,547 | | $ | 70,420 | |
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Schedule of total assets by reportable segment |
The table below presents total assets by reportable segment at June 30, 2024 and December 31, 2023 (in thousands): | | | | | | | | | | | | | | | | | | | Wholesale | | | Commercial | | | GDSO | | | Unallocated (1) | | | Total | June 30, 2024 | | $ | 1,256,420 | | $ | — | | $ | 1,897,897 | | $ | 674,427 | | $ | 3,828,744 | December 31, 2023 | | $ | 862,850 | | $ | — | | $ | 1,910,058 | | $ | 673,103 | | $ | 3,446,011 |
(1) | Includes the Partnership’s proportional share of assets related to its equity method investments (see Note 11). |
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