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- **Q1 Growth Drivers**: 4.2% volume increase and 10.8% EBITDA rise, fueled by colder weather and RNG expansion.
- **RNG Momentum**: Improved RNG injection volumes and on-track project timelines for H2 2026 injection.
- **Financial Strength**: 10.8% EBITDA growth, 4% propane margin expansion, and 4.57x leverage ratio.
- **Strategic Investments**: $24M propane acquisitions, $30-35M RNG capex, and refinanced debt at 10-year maturity.
- **Distribution Sustainability**: $0.325/unit quarterly payout with 2.19x coverage ratio.

**【Management Remarks】**
- Davin D'Ambrosio provided an overview of the call, emphasizing the partnership's focus on operational excellence and financial discipline. He highlighted the importance of forward-looking statements and non-GAAP metrics for analyzing performance.

**【CEO Summary Section】**
- Fiscal 2026 Q1 volumes sold increased by 4.2% YoY, driven by colder weather in the Northeast, Mid-Atlantic, and Midwest, offsetting warmer temperatures in the West. Adjusted EBITDA rose by $8.1 million (10.8%) to $83.4 million.
- RNG operations saw a sequential and YoY increase in daily injection volumes, with the Stanfield, AZ facility achieving improved uptime. The Upstate NY and Columbus, OH RNG projects are on track for H2 2026 injection.
- Strategic investments included $24 million for propane business acquisitions and $7 million in growth CapEx, alongside a refinancing of 2027 senior notes at a 10-year maturity.

**【CFO Financial Commentary】**
- Net income of $46.6 million ($0.70/unit) and adjusted EBITDA of $83.4 million reflected 10.8% YoY growth, driven by 4.2% volume growth and a 4% increase in propane unit margins.
- Wholesale propane prices averaged $0.66/gallon (-14% YoY), with inventories at 89 million barrels (34% above YoY). RNG contributed to gross margin improvement, alongside cost control in operating expenses (+3.4% YoY).
- Capital spending of $19.8 million ($13M propane, $6.8M RNG) aligns with the $30-35M full-year RNG capex guidance. The leverage ratio improved to 4.57x (from 4.99x YoY), with seasonal borrowing under the revolver.

**【Closing Remarks】**
- Q1 distribution of $0.325/unit (annualized $1.30) was supported by a 2.19x trailing 12-month coverage ratio. Mike Stivala reiterated focus on RNG growth, operational resilience, and disciplined capital allocation to maintain balance sheet strength.


Suburban Propane Partners, L.P. Common Units (SPH) Q1 2026 Earnings Call Transcript

- **Propane Volume Growth**: 5.9% increase in fiscal 2025, driven by favorable weather and acquisitions, with EBITDA up 11.2% to $278 million.
- **Strategic Acquisitions**: $77 million invested in expanding propane operations in key markets, with RNG projects in Ohio and New York set to launch in 2026.
- **Financial Strength**: Leverage ratio improved to 4.29x, using equity program proceeds to reduce debt and fund growth.
- **Renewable Energy Expansion**: Over 2 million gallons of renewable propane sold, with RNG operational improvements and regulatory support in California.
- **Distribution Health**: Quarterly distribution of $0.325 per unit, with coverage ratio of 2.13x.

**【Management Opening Remarks】**
- Davin D'Ambrosio outlined the agenda, emphasizing the review of fiscal 2025 financial results and the outlook for fiscal 2026. He highlighted the importance of forward-looking statements and the risks associated with them. The call would focus on strategic initiatives, financial performance, and operational improvements.

**【CEO Commentary】**
- **Propane Volume Growth**: Fiscal 2025 propane volumes increased 5.9% year-over-year, driven by favorable winter weather, hurricane recovery efforts, and acquisitions in New Mexico, Arizona, and California. Adjusted EBITDA rose $28 million (11.2%) to $278 million.
- **Strategic Acquisitions**: Acquired propane businesses in New Mexico, Arizona, and California for a total of $77 million, expanding market presence and incremental volumes.
- **Renewable Energy Expansion**: Sold over 2 million gallons of renewable propane, with plans to expand into Florida and Virginia. RNG operations in Arizona were optimized, with new facilities in Ohio and New York expected to come online in fiscal 2026.
- **Financial Discipline**: Reduced leverage ratio to 4.29x from 4.76x, using proceeds from an ATM equity program to reduce debt and fund growth projects.
- **Operational Excellence**: Maintained safety standards during high-demand periods, with no compromise on safety protocols.

**【CFO Financial Commentary】**
- **Net Income and EBITDA**: Fiscal 2025 net income was $128.4 million ($1.97 per unit), up 19% from $107.7 million ($1.68 per unit). Adjusted EBITDA increased 11.2% to $278 million.
- **Propane Margins**: Gross margin rose $46.8 million (5.7%) due to higher volumes and unit margins, with propane unit margins expanding 1%.
- **RNG Challenges**: RNG revenue faced headwinds from depressed LCFS credit prices and operational downtime, though final LCFS amendments in California may stabilize credit prices.
- **Capital Spending**: Fiscal 2025 capital expenditures were $72 million, with $30-35 million allocated to RNG projects in fiscal 2026, partially offset by Inflation Reduction Act tax credits.
- **Fourth Quarter Results**: Flat EBITDA compared to prior year, with propane gallons sold up 1.8% and gross margin increasing $5.3 million.

**【Closing Remarks】**
- **Distribution**: Quarterly distribution of $0.325 per unit (annualized $1.30), with coverage ratio of 2.13x.
- **Long-Term Strategy**: Focus on propane growth and renewable energy investments, leveraging propane's versatility and clean qualities. Excited about the new heating season and RNG project completions.


Suburban Propane Partners, L.P.(SPH)-20251113-2025 Q4 Earnings call transcript

- **Revenue Resilience**: Propane volumes grew 6.6% year-to-date despite warm weather, driven by strategic acquisitions and operational excellence.
- **RNG Challenges & Opportunities**: RNG production in Arizona faced short-term disruptions, but LCFS credit prices rebounded 30% post-regulatory changes. New RNG projects in Ohio/New York on track for late 2025/early 2026.
- **Balance Sheet Strength**: Debt reduced by $69 million, leverage ratio improved to 4.33x, with excess cash flow allocation to debt repayment.
- **Strategic Growth**: Expanded hydrogen infrastructure through Independence Hydrogen partnership and maintained disciplined M&A pipeline.

**【Opening Remarks】**
- Suburban Propane delivered a solid third quarter despite unseasonably warm temperatures and commodity price volatility.
- Propane volumes grew year-over-year, driven by customer base expansion and strategic acquisitions.
- RNG production faced challenges due to operational improvements and power outages in Arizona, but long-term projects in Ohio and New York remain on track.

**【CEO Summary Section】**
- **Operational Strength**: Volumes increased 6.6% year-to-date, supported by cold winter weather and hurricane-related demand in the Southeast.
- **RNG Challenges**: RNG injection in Arizona declined due to operational upgrades, but long-term efficiency improvements are underway. LCFS credit prices rose 30% post-regulatory changes, offsetting D3 RIN price declines.
- **Balance Sheet Management**: Reduced debt by $69 million, lowering leverage ratio to 4.33x, with plans to further strengthen financial position.
- **Strategic Growth**: Completed a propane acquisition in New Mexico and invested in hydrogen infrastructure through Independence Hydrogen.

**【CFO Financial Commentary】**
- **Financial Results**: Net loss of $10.8 million (flat vs. prior year), Adjusted EBITDA of $27 million (unchanged). Retail propane gallons sold matched prior year levels.
- **Commodity Dynamics**: Wholesale propane prices rose 4.7% YoY, while inventories remained 10% above historical averages.
- **Expense Management**: Operating expenses were stable, benefiting from a $2 million insurance recovery. Interest expense increased slightly due to higher borrowings.
- **Capital Allocation**: Maintained disciplined spending on RNG projects, with $38.1 million raised via ATM program to reduce debt.

**【Q&A Key Highlights】**
- **RNG Regulatory Update**: Treasury regulations for 45Z tax credits expected by end-2025; OBBA Bill extended credit eligibility but did not resolve ambiguities.
- **Project Timelines**: Columbus and Upstate New York RNG facilities expected to come online late 2025/early 2026. Arizona operational improvements ongoing with no major timeline.
- **O&M Trends**: Inflation (~3% YoY) offset by one-time insurance recovery; no material O&M growth expected.
- **M&A Activity**: Active pipeline of propane and RNG-related opportunities, with focus on strategic accretive deals.


Suburban Propane Partners, L.P. Common Units (SPH) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Propane volumes up 15.5% YoY, driving $28M EBITDA increase.
- **RNG Challenges**: Arizona RNG production down due to weather, but long-term projects on track.
- **Financial Strength**: Net income +24%, leverage ratio improved to 4.54x.
- **Strategic Moves**: $53M M&A success, $100M ATM program for disciplined growth.
- **Regulatory Risk**: RNG tax credit eligibility uncertain; monitoring LCFS reforms.

**【CEO Opening Remarks】**
- **Record Q2 Performance**: Propane volumes increased 15.5% YoY, driven by extreme winter weather, with January 2025 volumes hitting the highest since 2018. Adjusted EBITDA rose $28 million (19.1%) to $175 million.
- **RNG Operational Challenges**: RNG injection in Arizona declined due to cold weather and planned downtime, though long-term efficiency improvements are underway. RNG sales from new Columbus and Adirondack facilities are expected to ramp up.
- **Strategic Capital Raise**: Launched $100 million ATM program, raising $8.8 million to repay debt, maintaining financial flexibility for growth.
- **M&A Success**: Acquired New Mexico/Arizona propane business for $53 million, exceeding integration expectations.

**【CFO Financial Commentary】**
- **Net Income Growth**: $136.9 million ($2.11/unit) vs. $110.3 million ($1.71/unit) YoY, excluding mark-to-market hedges.
- **Volume-Driven Margin**: Propane gallons sold +15.5% YoY to 162M gallons, offsetting 7.2% higher propane costs. Unit margins remained flat through pricing discipline.
- **Expense Management**: Operating/G&A expenses rose 9.7% YoY due to overtime and variable costs, but leverage ratio improved to 4.54x from 4.99x.
- **Capital Allocation**: $19.3M in Q2 capex for RNG projects; balance sheet remains strong with revolver capacity.
- **Regulatory Risk**: PTC eligibility for RNG under IRA unclear; awaiting IRS clarification.

**【Q&A Highlights】**
- **Propane Pricing Volatility**: Current $0.70/gallon vs. Q2 $0.90/gallon, but no change to supply strategy for next heating season.
- **M&A Opportunities**: Fewer disciplined buyers in propane M&A, creating attractive opportunities for Suburban to acquire high-quality assets.
- **RNG Regulatory Outlook**: California LCFS credit reforms expected to stabilize RNG economics; long-term RNG growth tied to regulatory clarity.
- **Tariff Resilience**: Minimal Canadian propane exposure; focused on domestic supply chain stability.

Suburban Propane Partners (SPH)-8 May 25-2025 Q2 Earnings call transcript

- **Resilient Q1 Performance**: Flat EBITDA despite 7% warmer weather, driven by Southeast hurricane recovery (+15% demand) and Southwest acquisition.
- **RNG Growth Catalysts**: Stanfield facility upgrade boosts RNG conversion 20%, with NY & OH projects set to add 50%+ RNG capacity by end-2025.
- **Leverage Management**: 4.99x leverage ratio (5.75x cap), with PTCs expected to reduce leverage by 0.5x+ via $10M+ annual cash flow.
- **Margin Resilience**: 1.3% propane margin expansion to $0.77/gallon, offsetting 15% commodity price increase.
- **2025 Outlook**: RNG PTCs + propane recovery could drive 15%+ EBITDA growth, with $475M+ returned to unitholders since 2020.

**【CEO Opening Remarks】**
- Q1 2025 Adjusted EBITDA: $75.3 million, flat YoY despite 7% warmer-than-normal weather.
- Propane Revenues: Offset by 0.8% volume decline due to warm weather, partially mitigated by Southeast hurricane recovery (+15% Nov-Dec demand) and Southwest acquisition contributions.
- RNG Operations: Stanfield facility restart post-upgrades achieved +20% feedstock-to-RNG conversion; NY & OH projects on track for 2025H2 completion.
- Strategic Acquisitions: $53M propane business acquisition in SW completed in Q1, expanding market reach.

**【CFO Financial Details】**
- Net Income: $38M ($0.59/unit) vs. $40.4M ($0.63/unit) YoY, driven by $19.8M non-cash write-downs in Oberon Fuels & Independence Hydrogen.
- Retail Propane Sales: 105.7M gallons (-0.8% YoY), with $0.02/gallon margin improvement to $0.77/gallon.
- RNG Margin: Down 5% YoY due to Stanfield shutdown, but upgraded facility expected to boost production 15%+.
- Capital Spending: $23.8M (vs. $11.1M YoY), 55% allocated to RNG projects.
- Leverage Ratio: 4.99x (5.75x covenant limit), expected to decline with RNG monetization & PTCs.

**【Q&A Key Takeaways】**
- Operational Resilience: 2025Q1 saw coldest Jan since 2014, with field teams managing +30% peak demand w/o disruption.
- Pricing Strategy: Propane prices up 15% YoY to $0.85-0.90/gallon, with dynamic pricing tools maintaining 2-3% margin stability.
- PTC Impact: Stanfield RNG facility now eligible for $0.15/kWh PTCs, projected to add $10M+ annual cash flow.
- Balance Sheet: $91.7M revolver draw for acquisitions, with >$100M liquidity for 2025H2 RNG projects.
- Growth Pipeline: 9 propane acquisitions (2020-2025, $125M+), 3 RNG facilities under construction, targeting 50% EBITDA from RNG by 2030.

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