RoadFlex expands fuel discount network with Global Partners

WALTHAM, Mass. - RoadFlex, a company specializing in fuel risk management and fleet card solutions, has entered into a strategic partnership with Global Partners LP (NYSE: GLP), a $1.8 billion market cap energy company with over $17 billion in annual revenue. According to InvestingPro data, Global Partners has maintained dividend payments for 20 consecutive years, making it a stable partner for this move set to enhance savings and convenience for fleet management customers. The collaboration, announced today, integrates Global Partners’ extensive network of service stations into RoadFlex’s fuel card program, providing widespread access to discounted gasoline and diesel across multiple states.

This partnership allows RoadFlex customers to use their universally accepted VISA fleet card at Global Partners’ service stations, including notable brands such as Shell, BP, 76, Exxon, Mobil, Sunoco, Gulf, Citgo, Alltown Fresh, VP Racing, Global, and Xtramart. Participating locations are spread across Connecticut, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Virginia, and Vermont.

The integration is designed to streamline operations for fleet drivers and managers by offering competitive discounts on fuel purchases. RoadFlex’s Chief Revenue Officer, Rush Akin, highlighted the significant benefits this partnership delivers, emphasizing the access to discounted, top-tier fuel options along key routes and locations. Global Partners has shown strong momentum recently, with InvestingPro reporting a 30.5% price return over the past six months and maintaining profitability with a 6.4% gross margin.

Customers of RoadFlex can immediately begin using their cards to access these benefits. The discounts can be combined with RoadFlex’s Fuel Risk Management Platform, which includes purchase controls and advanced fuel analytics and reporting tools. These features are intended to help businesses manage their fuel expenses more effectively, potentially leading to significant cost reductions.

Michael Lingman, Senior Director of Commercial Fleet Fuel Programs at Global Partners, expressed enthusiasm about the collaboration’s potential to enhance the company’s service offerings and align with their commitment to providing value and convenience to clients.

RoadFlex boasts that its customers have seen an average of 11% annual savings on fuel. In addition to fuel expenses, the company’s VISA fleet business cards also offer cashback on non-fuel purchases, further extending the benefits of the program. However, potential investors should note that InvestingPro analysis indicates Global Partners operates with significant debt burden and faces cash flow challenges, with 8 additional ProTips available for subscribers seeking deeper insights into the company’s financial health.

The partnership is based on a shared goal between RoadFlex and Global Partners to serve the fleet management industry more effectively. For additional details on the partnership and how to maximize the program’s benefits, interested parties are directed to RoadFlex’s website.

This news is based on a press release statement from RoadFlex.

In other recent news, Global Partners L.P. reported a decline in its Q4 2024 adjusted EBITDA to $97.8 million from $112.1 million in the same quarter the previous year, while adjusted distributable cash flow also decreased to $46.1 million from $58.8 million. Despite these challenges, the company saw growth in its GDSO and wholesale margins, reflecting resilience in its core operations. Additionally, Global Partners acquired 25 refined product terminals from Motiva Enterprises in December 2023 for $305 million, expanding its capacity to 18.3 million barrels. The company further bolstered its EBITDA by acquiring four additional terminals from Gulf Oil Corp in early 2024.

S&P Global Ratings upgraded its outlook on Global Partners to positive following these acquisitions, anticipating a reduction in adjusted leverage below 4x by 2025. In contrast, Stifel analysts downgraded Global Partners from Buy to Hold, citing lower-than-expected Q4 earnings due to reduced fuel margins. However, they raised the price target to $56, reflecting a slight improvement in the valuation. Global Partners continues to explore mergers and acquisitions, maintaining confidence in its ability to adapt to market changes, including potential Canadian tariffs. The company expects 2025 to be a year of growth, with capital expenditures projected between $135 million and $155 million.

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