Global Partners LP's 2025 Distribution Stability and Tax Implications for International Investors

In an era of economic uncertainty, energy infrastructure MLPs like Global Partners LP (GLP) remain critical to assessing risk-adjusted returns. The company's recent declaration of a $0.7550 per unit distribution for Q3 2025-annualizing to $3.02-highlights its commitment to unitholder returns, as detailed in the Q3 2025 distribution announcement. However, the sustainability of these payouts and the tax complexities for non-U.S. investors demand closer scrutiny.

Distribution Stability: A Balancing Act

Global Partners LP operates 55 liquid energy terminals and supplies 1,700 retail locations, positioning it as a linchpin in the U.S. fuel distribution network, according to that announcement. Its ability to maintain a $3.02 annualized distribution amid economic headwinds reflects operational resilience. The company's focus on adapting to the energy transition-while preserving core infrastructure-suggests a strategic alignment with long-term market demands.

Yet, distribution sustainability hinges on cash flow and debt management. While Q3 2025 results are promising, the absence of detailed 10-Q filings on debt, EBITDA, and cash flow coverage ratios leaves gaps in assessing leverage risks. Investors must await the November 7, 2025, earnings call for clarity on liquidity metrics. For now, the consistency of distributions since 2020-despite macroeconomic volatility-underscores management's prioritization of unitholder returns, per the distribution history.

Tax Implications: A Labyrinth for International Investors

Non-U.S. unitholders face a complex tax landscape. Global Partners LP's distributions are subject to federal income tax withholding at the highest applicable effective rate plus 10%, according to the company's tax information. For non-corporate foreign partners, this translates to a 37% effective rate, while corporate partners face 21%, per IRS guidance on partnership withholding. Crucially, nominees-brokers or custodians-bear the withholding responsibility, not the MLP itself, as noted in the company's tax information.

The IRS's Section 1446(f) further complicates matters, imposing a 10% withholding on proceeds from unit sales if gains are effectively connected to a U.S. trade or business. Foreign investors must navigate forms like 8804 and 8805 to report and certify deductions, though partnerships are not obligated to honor such claims under IRS partnership-withholding rules. Tax treaties may offer relief, but their applicability remains unclear without detailed treaty-specific disclosures in the company's tax information.

Conclusion: Weighing Rewards and Risks

Global Partners LP's 2025 distribution strategy demonstrates operational fortitude, but international investors must factor in the tax labyrinth. While the MLP's infrastructure moat supports distribution stability, the effective tax burden-coupled with opaque financial metrics-demands rigorous due diligence. For those prepared to navigate these complexities, GLP offers a compelling, albeit nuanced, opportunity in the energy transition era.