Global Partners (GLP), a Top Stock to Buy Amid the Spike in Oil Prices

Operating one of the largest terminal networks of refined petroleum products in the Northeastern United States, Global Partners GLP is an appealing stock to consider amid the sharp spike in crude oil prices.

This comes as escalating tensions in the Middle East between Israel and Iran have resulted in supply disruption fears, with Iran being a major oil producer. Meanwhile, Wildfires in Canada have disrupted about 350,000 barrels of oil production per day, and OPEC has failed to reach an agreement to increase global output.

Despite dipping over 1% on Monday, WTI crude prices have spiked 15% in the last month to over $70 a barrel, and Global Partners could be in a prime position to capitalize.

GLP Performance Overview

Having liquid energy terminals that span from Maine to Florida via rail, pipelines, and marine assets, Global Partners stores and distributes gasoline, distillates, residual oil, and renewable fuels.

Attributed to its strategic expansion and operational execution, GLP has a total return of +23% in 2025, when including dividends. Notably, Global Partners' total return has impressively topped the broader market and its Zacks Oil Refining & Marketing MLP peers, along with the performance of oil conglomerates Exxon Mobil XOM and Chevron CVX.

GLP Dividend/Distribution Advantage

Making GLP of interest to income investors and correlating with Global Partners' pleasant total return is that MLPs (Master Limited Partnerships) don’t pay corporate tax and are incentivized to pass their income directly to shareholders to retain this tax advantage.

Most MLPs typically allocate 80%-90% of their cash flow to investors, with GLP currently having a 94% payout ratio. Global Partners' current annual distribution/dividend yield is at 5.8%, and the company has increased its payout 17 times in the last five years for an annual growth rate of nearly 11% during this period.  

GLP Outlook & EPS Revisions

More Compelling in regard to adding positions in GLP is that Global Partners' total sales are now expected to soar 37% in fiscal 2025 to $23.55 billion compared to $17.16 billion last year. Plus, Global Partners’ top line is projected to expand another 17% in FY26 to over $27 billion.

On the bottom line, annual earnings (EPS) are slated to pop 18% this year and are projected to rise another 6% in FY26 to $3.03 per share. Suggesting that the strong price performance of GLP (+20% YTD without dividends) could continue is that FY25 and FY26 EPS estimates have spiked more than 20% in the last 60 days, respectively.

Bottom Line

Global Partners stock is starting to look very suitable for investors' portfolios, with GLP sporting a Zacks Rank #1 (Strong Buy) at the moment. Considering Global Partners' strong operational performance and liquid energy terminal expansion, higher crude prices could certainly push GLP shares higher as well, which still trade at a reasonable 19.5X forward earnings multiple.  

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This article originally published on Zacks Investment Research (zacks.com).

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