Good day, everyone, and welcome to the Global Partners Third Quarter 2013 Financial Results Conference Call. Today's call is being recorded. [Operator Instructions] With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slifka; Chief Financial Officer, Ms. Daphne Foster; Chief Operating Officer Mr. Mark Romaine; Executive Vice President and Chief Accounting Officer, Mr. Charles Rudinsky; and Executive Vice President and General Counsel, Mr. Edward Faneuil. At this time, I'd like to turn the call over to Mr. Faneuil for opening remarks. Please go ahead, sir.

Good morning, everyone. Thank you for joining us. Let me remind everyone that during today's call, we will make forward-looking statements within the meaning of federal securities laws. These statements may include, but are not limited to, projections, beliefs, goals and estimates concerning the future financial and operational performance of Global Partners. Estimates for Global Partners' future EBITDA are based on a number of assumptions regarding market conditions, including demand for petroleum products and renewable fuels, changes in commodity prices, weather, credit markets and the forward product pricing curve. Therefore, Global Partners can give no assurance that our future EBITDA will be as estimated. The actual performance for Global Partners may differ materially from those expressed or implied by any such forward-looking statements. In addition, such performance is subject to risk factors including, but not limited to those described in Global Partners' filings with the Securities and Exchange Commission. Global Partners undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements that may be made during today’s conference call. With Regulation FD in effect, it is our policy that any material comments concerning future results of operations will be communicated through press releases, publicly announced conference calls or other means that will constitute public disclosure for purposes of Regulation FD. And now please let me turn the call over to our President and Chief Executive Officer, Eric Slifka.

Thank you, Edward. Good morning, everyone, and thank you for joining us. Year-over-year EBITDA for the third quarter of 2013 was up $7.7 million to $37.2 million, while distributable cash flow increased about $8 million to $23.2 million. We benefited from a strong performance in our Gasoline Distribution and Station Operations and favorable market conditions in wholesale distillates. As expected, our performance was moderated by backwardation in wholesale gasoline blendstocks and supply dislocations in crude oil that compressed margins and reduced volumes. Through the first 5 weeks of Q4, we have seen a return to market conditions that support further growth in crude by rail volumes. Looking in more detail at our businesses, net product margin in our Gasoline Distribution and Station Operations segment was up 24% to $64.7 million in the third quarter from the same period a year earlier, driven in part by a lower retail gas price environment. Our performance also benefited from activities within our new-to-industry and raze and rebuild program. For example, in 2013, we completely renovated and reopened 3 additional locations on the heavily traffic Connecticut Turnpike. We have completed that work at 11 of our 23 turnpike locations. The remaining 12 locations should be substantiably -- substantially completed over the next year or so. Beyond the Connecticut Turnpike corridor, we continue to actively execute on our strategy to develop other locations. Year-to-date, we have opened 2 new-to-industry sites and 1 raze and rebuild facility. Our growth model concentrates on high-return projects, and we are pleased with their overall performance, which has resulted in increases in volume and C-store revenues. We expect to complete one more raze and rebuild and one major renovation by year end. In our Wholesale segment, net product margin increased $7.3 million in the quarter to $42.3 million from $34.9…

Thank you, Eric. EBITDA and DCF were up significantly in the third quarter, increasing on a year-over-year basis by 26% and 55%, respectively. These increases primarily reflect the strong performance in our gasoline station-related business as well as a more favorable distillates market. Our fuel net product margin in our Gasoline Distribution and Station Operations segment increased almost $10 million, from $33.5 million in the third quarter of 2012 to $43.4 million due to the decline in gasoline prices. The NYMEX price for 87 [indiscernible] decreased $0.50, from a high of $3.13 on July 16 to $2.63 at the end of September. During the same timeframe, as an example, the AAA street price in Boston declined only approximately $0.25. Total net product margin for this segment during the quarter was $64.7 million, which includes $21.3 million generated from station operations, primarily rental income and margin generated in our approximate 120 owned and operated convenience stores. On a trailing 4-quarter basis, this segment generated $238 million in net product margin, which translates to a quarterly average of approximately $59 million. In our Wholesale segment, net product margin increased over $7 million or 21% to $42.2 million due to stronger distillate margins year-over-year as well as activity at our new transload terminal in North Dakota and Oregon. However, margins and volumes were negatively impacted in this segment by competitive pressures in our wholesale gasoline business, backwardation in gasoline blendstocks and supply dislocations in the crude oil markets. Our Commercial segment, which consists of deliveries to end-user commercial and public sector customers of gasoline, heating oil, natural gas and bunker fuel, performed in line with last year, generating $4.7 million in net product margin. While a smaller segment, it has contributed on average over $20 million in net product margin on a trailing…

Thanks, Daphne. In summary, we are broadening our earnings capacity through expansion projects designed to further optimize our logistics capacity and capabilities and to increase the volume of products put through our terminaling system and our gasoline station network. These projects represent significant growth opportunities for Global in 2014 and beyond. Before going to Q&A, let me note that we have several investor events scheduled for November, including the Jefferies Global Energy Conference in Houston, the Barclays Select Growth Conference in New York and the RBC Capital Markets' MLP Conference in Dallas. We look forward to seeing you there. With that, we'll be happy to take your questions. Operator?

[Operator Instructions] Our first question comes from the line of Theresa Chen with Barclays Capital.

Just 2 quick questions, with first, would you mind providing some additional color on your plans to expand in Canada? Do you anticipate building or leasing any terminals there?

We're always looking to further our position in Canada and as those opportunities present themselves, we'll look to execute on them. Certainly, we think it's important to have the ability to service our customers and give them the capability to buy products through various other locations and channels. So we're going to look at all those opportunities, right?

Got it. And secondly, in regards to the Tesoro pipelines build in the Bakken, how will this or will this impact your crude loading volumes in the fourth quarter?

It was really very minimal. It wasn't down for a long time, so it's a real [indiscernible] issue.

[Operator Instructions] Our next question comes from the line of James Jampel with HITE Hedge Asset Management.

Eric, just a couple of questions. Expanding on what you said about Canada, I mean, what direction of flows do you think might be most appealing should you build something in Canada?

It really depends. There's lots of various products, and the good thing is I think we have a system that can move those volumes east and west. The West Coast logistics are closer, so you're moving maybe approximately 900 miles to get to our plant in Oregon, right? Going east, depends on the products, but the good news is, it's depending on whatever market provides the higher value to the customer base, that's where they are going to push the products to. So it's really about trying to broaden our capacity to give our customers really the most locations to purchase product from.

Okay. You mentioned that the assets you had in this segment are irreplaceable on both on the origin and destination. I kind of understand the destination side, but seems like there's a lot of places to load crude on the origin side. What leads you to believe that they're irreplaceable on the origin side?

I mean, look, at the end of the day, I think it's the connection to the assets, right? So that's unique, all right? Having both origin and destination when you look at sort of all the competitors out there, I think we're in -- may not be the sole company with it, but there's not a lot of them.

Okay. And then my final one would be concerning the -- if I can call it the legacy Wholesale business, if you will. Did I hear you mention some sort of new competitive dynamic there? And what's going on there? And can we expect the return to historical profitability there?

In terms of the -- what, you call it the legacy -- I'm not, I mean, actually, the...

No, this is your -- the wholesale gasoline business affected by backwardation.

Oh, yes. No, I think that's really just a short-term kind of effect. I don't really believe that, that's going to sort of continue on, so...

So that you mentioned competitive pressures at the rack?

Yes, I think you just had a little bit of restructuring with some of the refiners directly marketing those areas. And -- but I think that, over time, settles out, and it gets back to more historical norms.

Do you see yourself competing for terminal acquisitions in your core area on the -- in the Northeast? Or is that something that's pretty much played out?

As the acquisitions come up, there is always a slew of competitors looking for those assets for us to be interested. I'd think it's got to be strategic, and that's the kind of an asset that we're going to buy. We're going to look at it and hopefully be able to do a lot more than just it looks like. And that's really the kind of assets we're going to be competitive on when it comes to purchases.

Okay. And another -- squeeze in one more, and then I'll let it go. The EBITDA guidance for the full year is still very wide, considering we have 3 quarters in the books. So is it really that difficult to narrow it at this point for the fourth quarter?

Yes, we've given you the guidance and kind of that's what we're going to stick with.

[Operator Instructions] Our next question comes from the line of Rob Longnecker with Jovetree.

Can you provide a little more volume -- a little more detail on crude volumes in the quarter, please?

You know what we've given historically, we've given some volumes that are through Albany. When I sort of want to -- I do want to talk a little bit about that. So looking back in Q2, we came -- we announced about 100,000 barrels, maybe 102,000 barrels a day to the Albany facility. Q3 was somewhere around 80,000 barrels a day. But looking forward, those volumes have really picked up substantially. Those numbers, too, that I gave you, sorry, were all products by rail there, right? So -- but those volumes had picked up more recently. So we think you'll sort of look back and take a look at the volumes that we've done in Q2. And we see it heading back to those kind of numbers and maybe even more, so...

And were you guys moving -- I know in the past, you have moved some barrels sort of on your own account. Is that something you did in the quarter?

Yes, we continually -- as an opportunity presents itself, we will move barrels ourselves, right? And obviously, in Q3, as those opportunities were limited in crude, we did less of that. And then you had the other products. But I think the point is, it's interesting because if you look at the spread, roughly 100,000 barrels of product corridor, 80,000 in a quarter whether the spreads could come right, weigh in. I think that really goes to the strength and stability of the business.

Spreads obviously jumped around a lot in the quarter. When they got really bad, were things -- obviously, it takes time for people to change their plans. I mean, were there discussions starting to happen that people started to back away or they happened too quickly or...

I mean, we had term business through the facility, and that's really what drove the volumes, right? So we do some spot business there, but these base volumes are stable.

[Operator Instructions] There are no further questions at this time. I would now like to turn the floor back over to Mr. Slifka for his closing comments.

Thank you for joining us this morning. We look forward to updating on our progress next quarter. Have a great day, everybody. Thank you.

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.