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

Global Partners (GLP) is positioned to benefit from rising crude oil prices due to geopolitical tensions and supply disruptions, with WTI crude up 15% in the last month. GLP's strategic network of liquid energy terminals and strong operational execution have driven a total return of +23% in 2025, outperforming peers. The company's attractive 5.8% dividend yield, coupled with expected sales growth of 37% in fiscal 2025 and 17% in fiscal 2026, and EPS growth of 18% and 6% respectively, make it a compelling investment, reflected in its Zacks Rank #1 (Strong Buy) rating.

Analysis

Global Partners (GLP) is strategically positioned to benefit from the current surge in crude oil prices, with WTI crude having risen 15% in the last month to over $70 a barrel, driven by geopolitical tensions in the Middle East, Canadian wildfire-induced supply disruptions of approximately 350,000 barrels per day, and OPEC's failure to agree on output increases. As an operator of an extensive network of refined petroleum product terminals in the Northeastern U.S., GLP's business of storing and distributing gasoline, distillates, residual oil, and renewable fuels is directly impacted by these market dynamics. The company has demonstrated strong performance, delivering a total return of +23% in 2025 (including dividends), outperforming the broader market, its Zacks Oil Refining & Marketing MLP peers, and major oil conglomerates like Exxon Mobil and Chevron. This performance is supported by significant growth projections, with total sales expected to increase by 37% in fiscal 2025 to $23.55 billion and a further 17% in fiscal 2026. Annual earnings per share (EPS) are forecast to grow 18% in fiscal 2025 and another 6% in fiscal 2026 to $3.03 per share, with FY25 and FY26 EPS estimates having been revised upwards by over 20% in the last 60 days, indicating strengthening analyst conviction. GLP's structure as a Master Limited Partnership (MLP) offers an attractive 5.8% current annual distribution yield, underpinned by 17 payout increases in the last five years—an annual growth rate of nearly 11%—and a current payout ratio of 94%. Despite this high payout, the company trades at a reasonable 19.5X forward earnings multiple and holds a Zacks Rank #1 (Strong Buy), reflecting its robust operational execution and expansion of liquid energy terminals.

Key Decisions for Investors

• Investors may consider GLP an attractive opportunity given its strong projected revenue and earnings growth, favorable crude oil market conditions, significant recent upward EPS estimate revisions, and a compelling dividend yield reinforced by consistent distribution growth.
• Continuous monitoring of geopolitical events affecting oil supply, OPEC decisions, and North American production levels is crucial, as these factors directly influence crude prices and GLP's profitability.
• The 94% payout ratio, characteristic of MLPs, alongside the company's expansion initiatives, should be assessed for long-term distribution sustainability relative to cash flow generation.
• The stock's MLP structure, offering direct income pass-through and tax advantages, warrants consideration for income-focused investors, though they should be mindful of the associated K-1 tax reporting.