WHIPPANY, NJ, Aug 8, 2024 /PRNewswire/ — Suburban Propane Partners, L.P. (NYSE: SPH), today announced earnings for its third quarter ended June 29, 2024.

Consistent with the seasonal nature of its business, the Partnership typically experiences a net loss in the third quarter of its fiscal year. Net loss for the third quarter of fiscal 2024 was $17.2 million, or $0.27 per Common Unit, compared to a net loss of $5.3 million, or $0.08 per Common Unit, in the third quarter of fiscal 2023. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA, as defined and reconciled below) for the third quarter of fiscal 2024 was $27.0 million, compared to $33.0 million in the prior year third quarter.

In announcing these results, President and Chief Executive Officer, Michael A. Stivala said, "Widespread unseasonably warm temperatures experienced during the peak winter heating months in our fiscal 2024 second quarter continued into the third quarter of fiscal 2024, with periods of extreme heat in certain parts of the country. By contrast, the prior year third quarter benefited from colder average temperatures that generated a late burst of heat-related customer demand from our residential customer base. However, incremental volumes resulting from growth in certain counter-seasonal customer segments, coupled with effective management of selling prices and expenses, helped offset the impact of warmer weather. During the third quarter, we completed two propane acquisitions in strategic markets in Nevada and Florida, investing more than $12.0 million, while also reducing debt by $10.5 million using excess cash flows from operations."

Mr. Stivala continued, "In our renewable natural gas ("RNG") operations, while overall revenues at our Stanfield, Arizona facility have been negatively influenced by lower environmental attribute prices, particularly in the California Low Carbon Fuel Standards market, we remain focused on driving operational excellence, making improvements in feedstock intake and production levels, and growing revenue opportunities. During the fiscal 2024 third quarter, operational enhancements have resulted in an increase in feedstocks processed and increased levels of daily RNG injection at the Stanfield facility. Additionally, we are making excellent progress in advancing the construction activities at our Columbus and Adirondack facilities."

Mr. Stivala concluded, "We continue to execute on our long-term strategic growth plans – investing in the growth of our core propane business, driving operational excellence in the build out of our renewable energy platform, and maintaining a disciplined approach to deploying additional capital to foster the strength of the balance sheet."

Retail propane gallons sold in the third quarter of fiscal 2024 of 71.7 million gallons decreased 8.6% compared to the prior year, primarily due to warmer weather across most of the Partnership’s operating territories. Average temperatures (as measured by heating degree days) across all of the Partnership’s service territories during the third quarter were 14% warmer than normal and 10% warmer than the prior year third quarter.

Average propane prices (basis Mont Belvieu, Texas) for the third quarter of fiscal 2024 increased 11.5% compared to the prior year third quarter. Total gross margin of $160.2 million for the third quarter decreased $8.0 million, or 4.7%, compared to the prior year third quarter, primarily due to lower volumes sold, partially offset by higher unit margins. Gross margin for the third quarter of fiscal 2024 included a $3.2 million unrealized loss attributable to the mark-to-market adjustment for derivative instruments used in risk management activities, compared to a $3.0 million unrealized loss in the prior year third quarter. These non-cash adjustments, which were reported in cost of products sold, were excluded from Adjusted EBITDA for both periods. Excluding the impact of the mark-to-market adjustments, propane unit margins increased $0.07 per gallon, or 3.8%, compared to the prior year third quarter.

Combined operating and general and administrative expenses of $135.6 million for the third quarter of fiscal 2024 decreased $2.1 million, or 1.6%, compared to the prior year third quarter, primarily due to lower volume-related variable operating costs, lower variable compensation, and cost savings and efficiencies realized in our RNG operations, offset to an extent by an increase in self-insurance accruals.

During the third quarter of fiscal 2024, the Partnership utilized cash flows from operating activities to acquire two retail propane businesses, to make additional investments in Oberon Fuels and Independence Hydrogen, in support of the Partnership’s long-term strategic goals, and to repay $10.5 million in borrowings under the revolving credit facility. The Total Consolidated Leverage Ratio, as defined in the Partnership’s credit agreement, for the twelve-month period ending June 29, 2024 was 4.68x.

As previously announced on July 25, 2024, the Partnership’s Board of Supervisors declared a quarterly distribution of $0.325 per Common Unit for the three months ended June 29, 2024. On an annualized basis, this distribution rate equates to $1.30 per Common Unit. The distribution is payable on August 13, 2024 to Common Unitholders of record as of August 6, 2024.

About Suburban Propane Partners, L.P.
Suburban Propane Partners, L.P. ("Suburban Propane") is a publicly traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban Propane has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas ("RNG"), fuel oil and related products and services, as well as a marketer of natural gas and electricity and producer of and investor in low carbon fuel alternatives, servicing the energy needs of approximately 1 million residential, commercial, governmental, industrial and agricultural customers through approximately 700 locations across 42 states. Suburban Propane is supported by three core pillars: (1) Suburban Commitment – showcasing Suburban Propane’s 95-year legacy, and ongoing commitment to the highest standards for dependability, flexibility, and reliability that underscores Suburban Propane’s commitment to excellence in customer service; (2) SuburbanCares – highlighting continued dedication to giving back to local communities across Suburban Propane’s national footprint; and (3) Go Green with Suburban Propane – promoting the clean burning and versatile nature of propane and renewable propane as a bridge to a green energy future and investing in the next generation of innovative, renewable energy alternatives. For additional information on Suburban Propane, please visit www.suburbanpropane.com.

Forward-Looking Statements
This press release contains certain forward-looking statements relating to future business expectations, capital expenditures, strategic investments, project developments and financial condition and results of operations of the Partnership, based on management’s current good faith expectations and beliefs concerning future developments. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed or implied in such forward-looking statements, including the following:

• The impact of weather conditions on the demand for propane, renewable propane, fuel oil and other refined fuels, natural gas, renewable natural gas ("RNG") and electricity;
• The impact of climate change and potential climate change legislation on the Partnership and demand for propane, fuel oil and other refined fuels, natural gas, RNG and electricity;
• Volatility in the unit cost of propane, renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity, the impact of the Partnership’s hedging and risk management activities, and the adverse impact of price increases on volumes sold as a result of customer conservation;
• The ability of the Partnership to compete with other suppliers of propane, renewable propane, fuel oil, RNG and other energy sources;
• The impact on the price and supply of propane, fuel oil and other refined fuels from the political, military or economic instability of the oil producing nations, including hostilities in the Middle East, Russian military action in Ukraine, global terrorism and other general economic conditions, including the economic instability resulting from natural disasters;
• The ability of the Partnership to acquire and maintain sufficient volumes of, and the costs to the Partnership of acquiring, reliably transporting and storing, propane, renewable propane, fuel oil and other refined fuels;
• The ability of the Partnership to attract and retain employees and key personnel to support the growth of our business;
• The ability of the Partnership to retain customers or acquire new customers;
• The impact of customer conservation, energy efficiency, general economic conditions and technology advances on the demand for propane, fuel oil and other refined fuels, natural gas, RNG and electricity;
• The ability of management to continue to control expenses and manage inflationary increases in fuel, labor and other operating costs;
• Risks related to the Partnership’s renewable fuel projects and investments, including the willingness of customers to purchase fuels generated by the projects, the permitting, financing, construction, development and operation of supporting facilities, the Partnership’s ability to generate a sufficient return on its renewable fuel projects, the Partnership’s dependence on third-party partners to help manage and operate renewable fuel investment projects, and increased regulation and dependence on government funding for commercial viability of renewable fuel investment projects;
• The generation and monetization of environmental attributes produced by the Partnership’s renewable fuel projects, changes to legislation and/or regulations concerning the generation and monetization of environmental attributes and pricing volatility in the open markets where environmental attributes are traded;
• The impact of changes in applicable statutes and government regulations, or their interpretations, including those relating to the environment and climate change, human health and safety laws and regulations, derivative instruments, the sale or marketing of propane and renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity, including the impact of recently adopted and proposed changes to New York law, and other regulatory developments that could impose costs and liabilities on the Partnership’s business;
• The impact of changes in tax laws that could adversely affect the tax treatment of the Partnership for income tax purposes;
• The impact of legal risks and proceedings on the Partnership’s business;
• The impact of operating hazards that could adversely affect the Partnership’s reputation and its operating results to the extent not covered by insurance;
• The Partnership’s ability to make strategic acquisitions, successfully integrate them and realize the expected benefits of those acquisitions;
• The ability of the Partnership and any third-party service providers on which it may rely for support or services to continue to combat cybersecurity threats to their respective and shared networks and information technology;
• Risks related to the Partnership’s plans to diversify its business;
• The impact of current conditions in the global capital, credit and environmental attribute markets, and general economic pressures; and
• Other risks referenced from time to time in filings with the Securities and Exchange Commission ("SEC") and those factors listed or incorporated by reference into the Partnership’s most recent Annual Report under "Risk Factors."

Some of these risks and uncertainties are discussed in more detail in the Partnership’s Annual Report on Form 10-K for its fiscal year ended September 30, 2023 and other periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s view only as of the date made. The Partnership undertakes no obligation to update any forward-looking statement, except as otherwise required by law.

EBITDA and Adjusted EBITDA are not recognized terms under accounting principles generally accepted in the United States of America ("US GAAP") and should not be considered as an alternative to net income or net cash provided by operating activities determined in accordance with US GAAP. Because EBITDA and Adjusted EBITDA as determined by us excludes some, but not all, items that affect net income, they may not be comparable to EBITDA and Adjusted EBITDA or similarly titled measures used by other companies.

The following table sets forth our calculations of EBITDA and Adjusted EBITDA:

We also reference gross margins, computed as revenues less cost of products sold as those amounts are reported on the consolidated financial statements. Our management uses gross margin as a supplemental measure of operating performance and we are including it as we believe that it provides our investors and industry analysts with additional information that we determined is useful to evaluate our operating results. As cost of products sold does not include depreciation and amortization expense, the gross margin we reference is considered a non-GAAP financial measure.

The unaudited financial information included in this document is intended only as a summary provided for your convenience, and should be read in conjunction with the complete consolidated financial statements of the Partnership (including the Notes thereto, which set forth important information) contained in its Quarterly Report on Form 10-Q to be filed by the Partnership with the SEC. Such report, once filed, will be available on the public EDGAR electronic filing system maintained by the SEC.

SOURCE Suburban Propane Partners, L.P.

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Building on Suburban Propane’s legacy spanning nearly a century, the spirit of philanthropy and community involvement are integral parts of our company’s culture and values. As part of the Company’s ongoing SuburbanCares efforts, employees made significant contributions to the well-being of their neighbors and neighborhoods across our 42-state national presence. In honor of both World Caring Day and World LPG (Liquefied Petroleum Gas) Day, we look back and reflect on the employee volunteering initiatives we’ve embarked on year to date.

Among the community initiatives pursued, several have made a positive impact, including:

• United with Historic Tours of America to Support the Lincolnville Museum and Cultural Center (LMCC) to preserve and uphold the LMCC’s mission of celebrating the dynamic cultural heritage of St. Augustine, Florida’s African American community
• Collaborated with the American Red Cross and The Links, Inc. to honor the remarkable achievements of Dr. Charles R. Drew, a pioneer in the field of blood transfusions, and hosted a Sickle Cell blood drive in Inglewood, California
• Partnered with Keep Austin Fed to address the issue of food insecurity sustainably. Volunteers came together to arrange surplus nutritious food for individuals in need in the Austin, Texas area
• Teamed up with Crayons to Classrooms for a joint effort to create educational supplies and learning tools benefitting teachers in need throughout Dayton, Ohio
• Supported Our Heroes with Operation Adopt A Soldier in Saratoga Springs, New York, by assembling over 500 care packages and heartfelt letters of support to deployed military personnel overseas

In addition to local community efforts, Suburban Propane employees, joined by family and friends, made a significant impact on the environment by engaging in a wide assortment of earth-centric volunteering efforts and clean-up activities as part of the Company’s ongoing Go Green with Suburban Propane initiative, including:

• Laramie, Wyoming: Assisted Feeding Laramie Valley, a non-profit organization, with preparing community gardens for the upcoming growing season and supporting their mission to alleviate food insecurity through a locally-led, sustainable, and all-encompassing food system that benefits residents in need
• Fort Myers, Florida: Collaborated with the City of Fort Myers to beautify a stretch of State Rt. 41 by clearing debris and garbage from the roadway
• Phoenix, New York: Teamed up with the Village of Phoenix to organize a street and sidewalk clean-up event, to remove trash along a stretch of Route 57
• Coventry, Rhode Island: Worked with the Coventry Department of Public Works to clear local streets of trash and debris
• Eugene, Oregon: Joined efforts with the City of Eugene Parks and Open Spaces for an event to remove trash and waste littered along the riverbank of Maurie Jacobs Park
• Susquehanna Valley, Pennsylvania: In a combined effort with the Montgomery House Library, volunteers made repairs throughout the establishment and helped clean, organize, and shelf books contributing to the library’s overall improvement
• Detroit, Michigan: Teamed up with the State of Michigan’s Island Lake Recreation Department to gather litter and beautify open spaces surrounding local beaches
• Brevard, North Carolina: Partnered with the City of Brevard’s Adopt-a-Green Space Program, to facilitate the cleaning and restoration of the garden at Tannery Skate Park

On this dual celebration, Suburban Propane reflects on our dedication to delivering reliable propane services providing energy to homes and businesses, while nurturing the nationwide communities we serve. Suburban Propane is incredibly proud of our employees and their commitment towards their communities and conscientious efforts in environmental stewardship.

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At Suburban Propane, we are deeply committed to honoring the military community not only on Memorial Day but throughout the entire year. Our support for veterans and active service members is woven into the fabric of our organization in several impactful ways.

From Military Life to Suburban Life

Suburban Propane takes great pride in our robust efforts to hire veterans, through our “Heroes Hired Here” initiative. We recognize the exceptional skills and attributes that veterans bring to our workforce, including leadership, teamwork, and a strong service orientation. These qualities not only enhance our business operations but foster a culture of excellence and integrity. Our commitment to hiring and supporting veterans is unwavering, as we believe in providing meaningful career opportunities that allow them to continue making a positive impact.

Recognition in Military Times: Best for Vets Employers Ranking

Recently, Suburban Propane was honored to be recognized in the Military Times: Best for Vets Employers ranking. This prestigious accolade reflects our exemplary support of veterans and underscores our dedication to fostering a diverse and inclusive workplace. Our veterans’ program is a testament to our ongoing commitment to empowering military service members and veterans through career development and growth. Click here to read the Press Release.

Nevada Department of Veterans Services’ Patriot Employer Program

In addition to national recognition, Suburban Propane was acknowledged by the Nevada Department of Veterans Services’ Patriot Employer Program. This program supports employers in the recruitment and retention of veterans and provides valuable training services. Our participation in this program highlights our exceptional commitment to supporting those who have served our country. Click here to read the Press Release.

SuburbanCares about Active Military Members and Veterans

Beyond employment initiatives, the Company actively engages in philanthropic endeavors through its SuburbanCares pillar to support the military and veteran communities. From joining forces with our longtime national partner the American Red Cross by supporting their Service to the Armed Forces division, to participating in Wreaths Across America, to collaborating with our customer Historic Tours of America, Suburban Propane is proud to uphold the legacy of giving back to the individuals who fight for our freedoms.

Moreover, throughout the year Suburban Propane partners with non-profit organizations aimed at assisting active military members and veterans. Through financial contributions and volunteer efforts, we strive to make a tangible difference in the lives of the heroes who have sacrificed so much.

As we observe Memorial Day, let us remember and honor our fallen heroes. At Suburban Propane, we are dedicated to supporting our military and veteran community year-round and express our gratitude to those who have dedicated their lives to serving our nation.

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WHIPPANY, N.J., May 14, 2024 /PRNewswire/ — Suburban Propane Partners, L.P. (NYSE: SPH), a nationwide distributor of propane, renewable propane, renewable natural gas, fuel oil and related products and services, as well as a marketer of natural gas and electricity and investor in low carbon fuel alternatives, has been recognized in the prestigious Military Times: Best for Vets Employers ranking for 2023. This annual survey, conducted by Military Times, is the foremost resource for veterans exploring career opportunities and educational paths, aims to spotlight organizations with exemplary military-connected employment programs, benefits, and support initiatives.

The Military Times: Best for Vets Employers survey is regarded as the most comprehensive ranking of its kind, identifying, and celebrating companies and organizations that go above and beyond in their efforts to recruit, retain, and support the veteran community. Suburban Propane’s ranking among the top 230 employers in the US to earn a place on the list highlights the company’s ongoing commitment to providing meaningful career opportunities for military service members and veterans.

"Being recognized in the Military Times: Best for Vets Employers ranking is a testament to our dedication to supporting those who have served our country," said Nandini Sankara, Spokesperson, Suburban Propane. "We are proud to create a workplace environment that values the unique skills and experiences of veterans, and we remain committed to providing them with fulfilling career paths."

Suburban Propane joins the ranks of distinguished companies recognized in the 2023 Best for Vets Employers list, showcasing its commitment to fostering a diverse and inclusive workplace. The Company’s dedication to supporting veterans aligns with its core values, ensuring that those who have served our country are provided with opportunities to thrive in their civilian careers. To learn more about Suburban Propane’s "Heroes Hired Here" Program, visit: https://jobs.suburbanpropane.com/commitment-to-veterans/.

About Suburban Propane:

Suburban Propane Partners, L.P. ("Suburban Propane") is a publicly traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban Propane has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas ("RNG"), fuel oil, and related products and services, as well as a marketer of natural gas and electricity and producer of and investor in low carbon fuel alternatives, servicing the energy needs of approximately 1 million residential, commercial, governmental, industrial and agricultural customers through approximately 700 locations across 42 states.

Suburban Propane is supported by three core pillars: (1) Suburban Commitment – showcasing Suburban Propane’s 95-year legacy, an ongoing commitment to the highest standards for dependability, flexibility, and reliability that underscores Suburban Propane’s commitment to excellence in customer service; (2) SuburbanCares – highlighting continued dedication to giving back to local communities across Suburban Propane’s national footprint; and (3) Go Green with Suburban Propane – promoting the clean burning and versatile nature of propane and renewable propane as a bridge to a green energy future and investing in the next generation of innovative, renewable energy alternatives.

For additional information on Suburban Propane, please visit suburbanpropane.com.

SOURCE Suburban Propane Partners, L.P.

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WHIPPANY, N.J., May 13, 2024 /PRNewswire/ — Suburban Propane Partners, L.P. (NYSE: SPH), a nationwide distributor of propane, renewable propane, renewable natural gas, fuel oil and related products and services, as well as a marketer of natural gas and electricity and investor in low carbon fuel alternatives, was named a distinguished employer within the Nevada Department of Veterans Services‘ Patriot Employer Program. Colonel Mary Devine, representing Nevada Governor Joe Lombardo, presented the certificate of recognition in a ceremony held at Suburban Propane’s Customer Service Center (CSC) in Las Vegas, Nevada on Thursday, May 9^th.

The Patriot Employer Program aims to support employers with the recruitment and retention of men and women who have served our country. The program offers training services for employer partners and acknowledges those who demonstrate exceptional commitment to the mission.

In Nevada, veterans comprise 14.7% of Suburban Propane’s workforce, and Suburban Propane is committed to hiring veterans throughout its 42-state footprint through its "Heroes Hired Here" program. The company has collaborated with veterans’ organizations across the country including Forgotten Soldiers Outreach in Lake Worth, FL; Veterans Bridge Home in Charlotte, NC; Move America Forward in Sacramento, CA; and Operation Adopt a Soldier in Syracuse, NY. In addition, it has been recognized for its efforts by The American Legion of New Jersey and the Texas Workforce Commission, and has been featured on Lifetime TV’s Military Makeover.

"Suburban Propane is incredibly honored to receive recognition from the Nevada Department of Veterans Services as a participant in the Patriot Employer Program," said Nandini Sankara, Spokesperson, Suburban Propane. "Throughout our more than 95-year history, we have remained steadfast in our support of military and veterans’ initiatives. We extend our heartfelt gratitude to the State of Nevada for championing our efforts in this vital endeavor."

About Suburban Propane:
Suburban Propane Partners, L.P. ("Suburban Propane") is a publicly traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban Propane has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas ("RNG"), fuel oil and related products and services, as well as a marketer of natural gas and electricity and producer of and investor in low carbon fuel alternatives, servicing the energy needs of approximately 1 million residential, commercial, governmental, industrial and agricultural customers through approximately 700 locations across 42 states.

Suburban Propane is supported by three core pillars: (1) Suburban Commitment – showcasing Suburban Propane’s 95-year legacy, an ongoing commitment to the highest standards for dependability, flexibility, and reliability that underscores Suburban Propane’s commitment to excellence in customer service; (2) SuburbanCares – highlighting continued dedication to giving back to local communities across Suburban Propane’s national footprint; and (3) Go Green with Suburban Propane – promoting the clean burning and versatile nature of propane and renewable propane as a bridge to a green energy future and investing in the next generation of innovative, renewable energy alternatives.

For additional information on Suburban Propane, please visit www.suburbanpropane.com.

SOURCE Suburban Propane Partners, L.P.

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Local Suburban Propane employees assembled over 500 parcels containing essential items most requested by soldiers, such as snacks, games, and other supplies. Moreover, these packages included letters of encouragement and gratitude written by Suburban Propane employees across the region, serving as a tangible token of appreciation and a comforting reminder of home. In addition to the packing event, the local Customer Service Center in Fort Edward, New York, has been collecting donations for this event and others in the future. This initiative is part of the Company’s ongoing SuburbanCares efforts, which support local communities across its 42-state footprint.

OAAS has been a beacon of support for U.S. soldiers stationed around the globe since its inception in 2003. Founded on the principles of volunteerism and gratitude, OAAS aims to shed light on the sacrifices made by military personnel and their families in safeguarding our country’s freedoms. By partnering with Operation Adopt a Soldier, local Suburban Propane employees volunteered time and energy as an opportunity to give back to those who serve our nation daily.

Suburban Propane has a strong history of supporting active military personnel, veterans, and their families. Through the company’s “Heroes Hired Here” program, Suburban Propane offers various employment incentives and benefits to members of the military community, recognizing the immense sacrifices made by these courageous individuals in defending our freedom. We are incredibly proud of our employees who have selflessly served our country.

If you’re interested in volunteering or donating, visit operationadoptasoldier.org to learn more.

Featured Photos:

First row (L-R): Volunteers from Fort Edward, NY Customer Service Center; with Cliff Seguin; founder of Operation Adopt a Soldier (OAAS)
Second row (L-R): Volunteers from Fort Edward, NY Customer Service Center

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WHIPPANY, N.J., May 9, 2024 /PRNewswire/ — Suburban Propane Partners, L.P. (NYSE:SPH), today announced earnings for its second quarter ended March 30, 2024.

Net income for the second quarter of fiscal 2024 was $111.5 million, or $1.73 per Common Unit, compared to net income of $104.5 million, or $1.63 per Common Unit, in the second quarter of fiscal 2023. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA, as defined and reconciled below) for the second quarter of fiscal 2024 was $147.0 million, compared to $149.0 million in the prior year second quarter.

In announcing these results, President and Chief Executive Officer, Michael A. Stivala said, "The fiscal 2024 second quarter was characterized by an inconsistent weather pattern and unseasonably warm weather across much of our operating footprint. With the exception of a short burst of extreme cold weather in mid-January, average temperatures were warmer than the prior year, which negatively impacted customer demand for heating purposes. In the markets where we experienced cooler weather compared to the prior year, such as the southeast, our volumes responded favorably. Our field operations once again did an outstanding job managing the things they can control, which is operating safely, managing our selling prices, controlling expenses and executing on our customer base growth and retention initiatives — all of which helped mitigate the impact of warm weather on volumes sold."

Mr. Stivala continued, "In our renewable natural gas ("RNG") operations, average daily pipeline injected RNG at our facility in Stanfield, Arizona has continued to improve as we drive operating performance and enhance the feedstock intake. We continue to advance our capital improvement plans at the Columbus, Ohio facility and the construction of our anaerobic digester facility located at Adirondack Farms in upstate New York, and expect construction for both facilities to be completed in the second half of calendar 2025. While the fiscal 2024 heating season presented headwinds as a result of warmer weather, we continue to focus on our strategic growth initiatives – fostering the growth of our core propane operations, steering operational excellence in our RNG business and continuing to evaluate opportunities to make additional strategic investments in lower carbon renewable energy alternatives."

Retail propane gallons sold in the second quarter of fiscal 2024 of 140.2 million gallons decreased 2.7% compared to the prior year, primarily due to widespread warm weather throughout much of the second quarter, aside from a two-week period of extreme cold temperatures in mid-January 2024. Average temperatures (as measured by heating degree days) across all of the Partnership’s service territories during the second quarter were 8% warmer than normal and 4% cooler than the prior year second quarter (which was heavily influenced by mid-January heating degree days that were 33% colder than the prior year). Average temperatures for the month of February were 1% warmer than the prior year and on par for the warmest February on record; followed by March which was 7% warmer than the prior year.

Average propane prices (basis Mont Belvieu, Texas) for the second quarter of fiscal 2024 increased 2.8% compared to the prior year second quarter. Total gross margin of $308.0 million for the second quarter increased $13.1 million, or 4.4%, compared to the prior year second quarter. Gross margin for the second quarter of fiscal 2024 included a $5.9 million unrealized gain attributable to the mark-to-market adjustment for derivative instruments used in risk management activities, compared to a $4.5 million unrealized loss in the prior year second quarter. These non-cash adjustments, which were reported in cost of products sold, were excluded from Adjusted EBITDA for both periods. Excluding the impact of the mark-to-market adjustments, total gross margin increased $2.7 million, or 0.9%, compared to the prior year second quarter, primarily due to higher unit margins, which increased $0.08 per gallon, more than offsetting the lower volumes sold.

Combined operating and general and administrative expenses of $154.4 million for the second quarter of fiscal 2024 increased $1.2 million, or 0.8%, compared to the prior year second quarter, primarily due to higher payroll and benefit-related expenses, offset to an extent by lower volume-related variable operating costs. In addition, included within general and administrative expenses in the second quarter of the prior year were acquisition-related fees and expenses of $3.4 million, which were excluded from Adjusted EBITDA for the second quarter of fiscal 2023.

During the second quarter of fiscal 2024, the Partnership utilized cash flows from operating activities to repay $32.3 million in outstanding debt. As a result of this debt repayment, the Total Consolidated Leverage Ratio, as defined in the Partnership’s credit agreement, for the twelve-month period ending March 30, 2024 improved to 4.61x compared to 4.72x at the end of the first quarter of fiscal 2024.

As previously announced on April 25, 2024, the Partnership’s Board of Supervisors declared a quarterly distribution of $0.325 per Common Unit for the three months ended March 30, 2024. On an annualized basis, this distribution rate equates to $1.30 per Common Unit. The distribution is payable on May 14, 2024 to Common Unitholders of record as of May 7, 2024.

About Suburban Propane Partners, L.P.
Suburban Propane Partners, L.P. ("Suburban Propane") is a publicly traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban Propane has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas ("RNG"), fuel oil and related products and services, as well as a marketer of natural gas and electricity and producer of and investor in low carbon fuel alternatives, servicing the energy needs of approximately 1 million residential, commercial, governmental, industrial and agricultural customers through approximately 700 locations across 42 states. Suburban Propane is supported by three core pillars: (1) Suburban Commitment – showcasing Suburban Propane’s 95-year legacy, and ongoing commitment to the highest standards for dependability, flexibility, and reliability that underscores Suburban Propane’s commitment to excellence in customer service; (2) SuburbanCares – highlighting continued dedication to giving back to local communities across Suburban Propane’s national footprint; and (3) Go Green with Suburban Propane – promoting the clean burning and versatile nature of propane and renewable propane as a bridge to a green energy future and investing in the next generation of innovative, renewable energy alternatives. For additional information on Suburban Propane, please visit www.suburbanpropane.com.

Forward-Looking Statements
This press release contains certain forward-looking statements relating to future business expectations, capital expenditures, strategic investments, project developments and financial condition and results of operations of the Partnership, based on management’s current good faith expectations and beliefs concerning future developments. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed or implied in such forward-looking statements, including the following:

• The impact of weather conditions on the demand for propane, renewable propane, fuel oil and other refined fuels, natural gas, renewable natural gas ("RNG") and electricity;
• The impact of climate change and potential climate change legislation on the Partnership and demand for propane, fuel oil and other refined fuels, natural gas, RNG and electricity;
• Volatility in the unit cost of propane, renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity, the impact of the Partnership’s hedging and risk management activities, and the adverse impact of price increases on volumes sold as a result of customer conservation;
• The ability of the Partnership to compete with other suppliers of propane, renewable propane, fuel oil, RNG and other energy sources;
• The impact on the price and supply of propane, fuel oil and other refined fuels from the political, military or economic instability of the oil producing nations, including hostilities in the Middle East, Russian military action in Ukraine, global terrorism and other general economic conditions, including the economic instability resulting from natural disasters;
• The ability of the Partnership to acquire and maintain sufficient volumes of, and the costs to the Partnership of acquiring, reliably transporting and storing, propane, renewable propane, fuel oil and other refined fuels;
• The ability of the Partnership to attract and retain employees and key personnel to support the growth of our business;
• The ability of the Partnership to retain customers or acquire new customers;
• The impact of customer conservation, energy efficiency, general economic conditions and technology advances on the demand for propane, fuel oil and other refined fuels, natural gas, RNG and electricity;
• The ability of management to continue to control expenses and manage inflationary increases in fuel, labor and other operating costs;
• Risks related to the Partnership’s renewable fuel projects and investments, including the willingness of customers to purchase fuels generated by the projects, the permitting, financing, construction, development and operation of supporting facilities, the Partnership’s ability to generate a sufficient return on its renewable fuel projects, the Partnership’s dependence on third-party partners to help manage and operate renewable fuel investment projects, and increased regulation and dependence on government funding for commercial viability of renewable fuel investment projects;
• The generation and monetization of environmental attributes produced by the Partnership’s renewable fuel projects, changes to legislation and/or regulations concerning the generation and monetization of environmental attributes and pricing volatility in the open markets where environmental attributes are traded;
• The impact of changes in applicable statutes and government regulations, or their interpretations, including those relating to the environment and climate change, human health and safety laws and regulations, derivative instruments, the sale or marketing of propane and renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity, including the impact of recently adopted and proposed changes to New York law, and other regulatory developments that could impose costs and liabilities on the Partnership’s business;
• The impact of changes in tax laws that could adversely affect the tax treatment of the Partnership for income tax purposes;
• The impact of legal risks and proceedings on the Partnership’s business;
• The impact of operating hazards that could adversely affect the Partnership’s reputation and its operating results to the extent not covered by insurance;
• The Partnership’s ability to make strategic acquisitions, successfully integrate them and realize the expected benefits of those acquisitions;
• The ability of the Partnership and any third-party service providers on which it may rely for support or services to continue to combat cybersecurity threats to their respective and shared networks and information technology;
• Risks related to the Partnership’s plans to diversify its business;
• The impact of current conditions in the global capital, credit and environmental attribute markets, and general economic pressures; and
• Other risks referenced from time to time in filings with the Securities and Exchange Commission ("SEC") and those factors listed or incorporated by reference into the Partnership’s most recent Annual Report under "Risk Factors."

Some of these risks and uncertainties are discussed in more detail in the Partnership’s Annual Report on Form 10-K for its fiscal year ended September 30, 2023 and other periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s view only as of the date made. The Partnership undertakes no obligation to update any forward-looking statement, except as otherwise required by law.

EBITDA and Adjusted EBITDA are not recognized terms under accounting principles generally accepted in the United States of America ("US GAAP") and should not be considered as an alternative to net income or net cash provided by operating activities determined in accordance with US GAAP. Because EBITDA and Adjusted EBITDA as determined by us excludes some, but not all, items that affect net income, they may not be comparable to EBITDA and Adjusted EBITDA or similarly titled measures used by other companies.

The following table sets forth our calculations of EBITDA and Adjusted EBITDA:

We also reference gross margins, computed as revenues less cost of products sold as those amounts are reported on the consolidated financial statements. Our management uses gross margin as a supplemental measure of operating performance and we are including it as we believe that it provides our investors and industry analysts with additional information that we determined is useful to evaluate our operating results. As cost of products sold does not include depreciation and amortization expense, the gross margin we reference is considered a non-GAAP financial measure.

The unaudited financial information included in this document is intended only as a summary provided for your convenience, and should be read in conjunction with the complete consolidated financial statements of the Partnership (including the Notes thereto, which set forth important information) contained in its Quarterly Report on Form 10-Q to be filed by the Partnership with the SEC. Such report, once filed, will be available on the public EDGAR electronic filing system maintained by the SEC.

SOURCE Suburban Propane Partners, L.P.

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WHIPPANY, N.J., May 8, 2024 /PRNewswire/ — Suburban Propane Partners, L.P. (NYSE: SPH), a nationwide distributor of propane, renewable propane, renewable natural gas, fuel oil and related products and services, as well as a marketer of natural gas and electricity and investor in low carbon fuel alternatives, today collaborated with Operation Adopt A Soldier (OAAS) to assemble care packages for local troops serving overseas.

More than 500 packages were created, which included letters written by Suburban Propane employees from across the region, snacks, games, and other necessities that will serve as a reminder of home and a symbol of gratitude for their service. In addition to the packing event, Suburban Propane Customer Service Centers in Fort Edward, Chestertown, and Ticonderoga have collected items since March to increase local donations to Operation Adopt A Soldier for this event.

"As a veteran employer, Suburban Propane is honored to join Operation Adopt A Soldier in their mission to support our troops, who selflessly serve this country every day to protect our freedoms," said Nandini Sankara, Spokesperson, Suburban Propane. "As a 95 year old company with a footprint across 42 states, we understand the importance of organizations such as OAAS, which, thanks to a team of dedicated volunteers, is doing the work necessary to ensure our servicemen and women are never forgotten."

"Operation Adopt A Soldier is an all-volunteer, not for profit 501c3 organization with a goal to raise and maintain awareness to the American people of the day to day sacrifices our military men and women and their families make to protect our freedoms," said Cliff Seguin, Founder and Chairman, Operation Adopt A Soldier. "In 2023, we mailed over 6,300 boxes to our troops and are so grateful to Suburban Propane for their support so that we can be as successful this year."

SuburbanCares is committed to supporting community efforts across the United States. Recently, SuburbanCares has undertaken charitable endeavors in numerous communities within Dayton, OH; Milford, NH; Phoenix, AZ; Dayton and Columbus, OH; Sacramento, San Diego, Santa Rosa and Los Angeles, CA; Huntsville, AL; Syracuse and Albany, NY; St. Augustine, Key West and Lake Worth, FL; Spokane, WA; Boston, MA; Helena, MT; Charlotte, NC; Lewes, DE; San Diego and Santa Rosa, CA; Dayton, OH; Philadelphia, PA; Santa Fe, NM; Columbia and Charleston, SC; New Brunswick, NJ; and Austin, TX.

About Suburban Propane:
Suburban Propane Partners, L.P. ("Suburban Propane") is a publicly traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban Propane has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas ("RNG"), fuel oil and related products and services, as well as a marketer of natural gas and electricity and producer of and investor in low carbon fuel alternatives, servicing the energy needs of approximately 1 million residential, commercial, governmental, industrial and agricultural customers through approximately 700 locations across 42 states.

Suburban Propane is supported by three core pillars: (1) Suburban Commitment – showcasing Suburban Propane’s 95-year legacy, an ongoing commitment to the highest standards for dependability, flexibility, and reliability that underscores Suburban Propane’s commitment to excellence in customer service; (2) SuburbanCares – highlighting continued dedication to giving back to local communities across Suburban Propane’s national footprint; and (3) Go Green with Suburban Propane – promoting the clean burning and versatile nature of propane and renewable propane as a bridge to a green energy future and investing in the next generation of innovative, renewable energy alternatives.

For additional information on Suburban Propane, please visit www.suburbanpropane.com.

About Operation Adopt A Soldier, Inc.
Operation Adopt A Soldier, Inc. (OAAS) was founded in 2003 by Cliff Seguin and Dominick Commisso at the Mt. McGregor Correctional Facility in Wilton, NY. OAAS first started when Cliff began sending packages to a platoon of soldiers from the 368th Combat Engineers, which included his son Steven, who were stationed in Iraq. Later that year, Cliff met Dominick at a Support Our Troops Rally and learned that he was also sending care packages to the platoons of his two sons, Jason and Michael, who were also stationed in Iraq. The two joined forces to bring their efforts to a larger scale and help more platoons stationed overseas.

OAAS is a purely volunteer program whose mission is to raise awareness about the daily sacrifices that the men and women stationed overseas and their families make in order to preserve freedom for all of us. The main goal is to provide a sense of home to our soldiers and make them feel as comfortable as possible through care packages, gifts, letters, phone cards, and more. OAAS’ motto is clear and simple "YOU WILL NEVER BE FORGOTTEN." For more information, visit www.operationadoptasoldier.org.

SOURCE Suburban Propane Partners, L.P.

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Understanding Employee Value

At Suburban Propane, our employees are our most valuable asset. We actively acknowledge and appreciate the hard work and achievements of our team members, many of whom have been with us for decades! In fact, 28% of our workforce has been with us for 10+ years, and numerous employees are celebrating 25, 35, and even 50+ year work anniversaries with us this year.

As a company, we promote a healthy work-life balance and actively encourage our family of employees to focus on their health and overall well-being. In addition to competitive pay and an outstanding benefits package, we are proud to offer several programs to support employees including:

Tuition Assistance: 

We encourage and support employees eager to further their education through a Tuition Assistance Program, where we provide full or partial payment/reimbursement of eligible tuition expenses. Additionally, Suburban Propane has partnered with select universities to offer our employees unique educational benefits and innovative ways to continue learning.

Wellness Programs:

Suburban Propane is committed to aiding all employees in improving the health and wellness of themselves and their families. Through our wellness programs employees have an assortment of educational content, live resources, and challenges to manage health goals.  Employees can earn points by making healthy behavior choices and participating in a variety of health and wellness-related activities to achieve personal wellness goals and improve long-term health.

Charitable Contribution Match Program: 

Employees are encouraged to support organizations that help others by supplying health, welfare, and other life-enhancing services as well as accredited colleges and universities. Through this program employees select qualified organizations of their choice and Suburban Propane matches their contribution dollar-for-dollar.

Community Outreach & Social Responsibility

Over the years, Suburban Propane has instilled a pillar of the company solely responsible for humanitarian efforts. The endeavor is part of the company’s SuburbanCares initiative which actively supports community efforts across the United States. Recently, SuburbanCares has undertaken charitable endeavors in numerous underserved communities. Examples of this include partnering with Big Brothers Big Sisters and Boys & Girls Club, supporting our country’s veterans with meals through the Guy Fieri Foundation, or partnering with Forgotten Soldiers Outreach to provide “We Care” packages to deployed military service members overseas. Plus, we are very proud of our partnership with the American Red Cross. Throughout the year we sponsor numerous collaborations including the annual Jersey City Police & Fire 9/11 Memorial Blood Drive.

In addition to supporting incredible employees and philanthropic involvement, the company has devoted numerous efforts to promote safe and sustainable greener practices with two divisions in the environmental sector.

Green & Sustainable Initiatives

Suburban Propane is committed to supporting the growth and innovation of propane as a sustainable energy source. Go Green with Suburban Propane has an active global effort to monitor and reduce its carbon footprint in the energy sector. Our dedication is to guide the propane industry towards a sustainable future by promoting the environmental advantages of conventional propane and investing in developing cleaner and more sustainable energy alternatives. Suburban Renewables aims to reduce carbon emissions and improve air quality.

Ultimately, Suburban Propane understands the value of prioritizing its employees, the community in which it operates, and environmental sustainability. We are proud of our over 95 years of quality service to the people and organizations who have helped us make a difference and look forward to seeing the impact we can make in the future.

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WHIPPANY, N.J., Feb. 8, 2024 /PRNewswire/ — Suburban Propane Partners, L.P. (NYSE:SPH), today announced earnings for its first quarter ended December 30, 2023.

Net income for the first quarter of fiscal 2024 was $24.5 million, or $0.38 per Common Unit, compared to net income of $45.4 million, or $0.71 per Common Unit, in the fiscal 2023 first quarter. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA, as defined and reconciled below) for the first quarter of fiscal 2024 was $75.2 million, compared to $90.0 million in the prior year first quarter.

In announcing these results, President and Chief Executive Officer Michael A. Stivala said, "The fiscal 2024 first quarter was dominated by unseasonably warm weather that persisted across the country, especially during the critical last six weeks of the quarter, which negatively impacted customer demand for heating purposes. Propane volumes were down just 2.0% compared to the prior year first quarter, as the impact of warmer weather was favorably offset by solid agricultural demand from an active crop drying season, and positive customer base trends and market expansion efforts over the past couple of years. Our operations personnel are continuing to do an excellent job managing our selling prices and expenses and, as more seasonable weather arrived in the early part of the second quarter, our business is very well positioned to meet increased demand. There is still plenty of heating season ahead of us."

Mr. Stivala continued, "In our renewable natural gas ("RNG") operations, we have deployed capital to enhance the efficiency and operating performance of our RNG production facility in Stanfield, Arizona. We continue to execute on our capital improvement plans at the Columbus, Ohio facility, which will include the installation of RNG upgrade equipment, and we are advancing the engineering and construction of our anaerobic digester facility located at Adirondack Farms in upstate New York. In addition, we continue to develop relationships with local feedstock providers to increase tipping fee revenue and production capacity for all of our facilities, as well as developing RNG offtake arrangements for Columbus and New York once those facilities begin producing RNG."

Retail propane gallons sold in the first quarter of fiscal 2024 of 106.5 million gallons decreased 2.0% compared to the prior year, primarily due to an inconsistent and warmer weather pattern that adversely impacted heat-related demand. Average temperatures (as measured by heating degree days) across all of the Partnership’s service territories during the first quarter were 9% warmer than normal and 6% warmer than the prior year first quarter. Average temperatures for the month of December, which is the most critical month of the first quarter for heat-related demand, were 10% warmer than both normal and December 2022.

Average propane prices (basis Mont Belvieu, Texas) for the first quarter of fiscal 2024 decreased 16.7% compared to the prior year first quarter. Total gross margin of $212.8 million for the fiscal 2024 first quarter decreased $2.0 million, or 0.9%, compared to the prior year first quarter. Gross margin for the first quarter of fiscal 2024 included a $10.8 million unrealized loss attributable to the mark-to-market adjustment for derivative instruments used in risk management activities, compared to a $13.7 million unrealized loss in the prior year first quarter. These non-cash adjustments, which were reported in cost of products sold, were excluded from Adjusted EBITDA for both periods. Excluding the impact of the mark-to-market adjustments, total gross margin decreased $4.9 million, or 2.2%, compared to the prior year first quarter, primarily due to lower propane volumes sold and lower propane unit margins, offset to an extent by margin contribution from the RNG assets acquired at the end of December 2022. Excluding the impact of the unrealized mark-to-market adjustments, propane unit margins for the first quarter of fiscal 2024 decreased $0.05 per gallon, or 2.8%, compared to the prior year first quarter, primarily due to a greater mix from the Partnership’s commercial and industrial customer base that tend to be less weather sensitive than our residential customer base.

Combined operating and general and administrative expenses of $147.6 million for the first quarter of fiscal 2024 increased 6.4% compared to the prior year first quarter, primarily due to higher payroll and benefit-related expenses and operating costs associated with the RNG production facilities. In addition, included within general and administrative expenses in the first quarter of the prior year were fees and expenses of $0.9 million associated with the acquisition of the RNG assets, which were excluded from Adjusted EBITDA for the first quarter of fiscal 2023.

Total debt outstanding as of December 2023 increased $54.8 million compared to September 2023, due to seasonal borrowings under the Partnership’s revolving credit facility to help fund working capital. The Consolidated Leverage Ratio, as defined in the Partnership’s credit agreement, for the twelve-month period ending December 30, 2023 was 4.72x.

As previously announced on January 25, 2024, the Partnership’s Board of Supervisors declared a quarterly distribution of $0.325 per Common Unit for the three months ended December 30, 2023. On an annualized basis, this distribution rate equates to $1.30 per Common Unit. The distribution is payable on February 13, 2024 to Common Unitholders of record as of February 6, 2024.

About Suburban Propane Partners, L.P.
Suburban Propane Partners, L.P. ("Suburban Propane") is a publicly traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban Propane has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas ("RNG"), fuel oil and related products and services, as well as a marketer of natural gas and electricity and producer of and investor in low carbon fuel alternatives, servicing the energy needs of approximately 1 million residential, commercial, governmental, industrial and agricultural customers through approximately 700 locations across 42 states. Suburban Propane is supported by three core pillars: (1) Suburban Commitment – showcasing Suburban Propane’s 95-year legacy, and ongoing commitment to the highest standards for dependability, flexibility, and reliability that underscores Suburban Propane’s commitment to excellence in customer service; (2) SuburbanCares – highlighting continued dedication to giving back to local communities across Suburban Propane’s national footprint; and (3) Go Green with Suburban Propane – promoting the clean burning and versatile nature of propane and renewable propane as a bridge to a green energy future and investing in the next generation of innovative, renewable energy alternatives. For additional information on Suburban Propane, please visit www.suburbanpropane.com.

Forward-Looking Statements
This press release contains certain forward-looking statements relating to future business expectations and financial condition and results of operations of the Partnership, based on management’s current good faith expectations and beliefs concerning future developments. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed or implied in such forward-looking statements, including the following:

• The impact of weather conditions on the demand for propane, renewable propane, fuel oil and other refined fuels, natural gas, renewable natural gas ("RNG") and electricity;

• The impact of climate change and potential climate change legislation on the Partnership and demand for propane, fuel oil and other refined fuels, natural gas, RNG and electricity;

• Volatility in the unit cost of propane, renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity, the impact of the Partnership’s hedging and risk management activities, and the adverse impact of price increases on volumes sold as a result of customer conservation;

• The ability of the Partnership to compete with other suppliers of propane, renewable propane, fuel oil, RNG and other energy sources;

• The impact on the price and supply of propane, fuel oil and other refined fuels from the political, military or economic instability of the oil producing nations, including hostilities in the Middle East, Russian military action in Ukraine, global terrorism and other general economic conditions, including the economic instability resulting from natural disasters;

• The ability of the Partnership to acquire and maintain sufficient volumes of, and the costs to the Partnership of acquiring, reliably transporting and storing, propane, renewable propane, fuel oil and other refined fuels;

• The ability of the Partnership to attract and retain employees and key personnel to support the growth of our business;

• The ability of the Partnership to retain customers or acquire new customers;

• The impact of customer conservation, energy efficiency, general economic conditions and technology advances on the demand for propane, fuel oil and other refined fuels, natural gas, RNG and electricity;

• The ability of management to continue to control expenses and manage inflationary increases in fuel, labor and other operating costs;

• Risks related to the Partnership’s renewable fuel projects and investments, including the willingness of customers to purchase fuels generated by the projects, the permitting, financing, construction, development and operation of supporting facilities, the Partnership’s ability to generate a sufficient return on its renewable fuel projects, the Partnership’s dependence on third-party partners to help manage and operate renewable fuel investment projects, and increased regulation and dependence on government funding for commercial viability of renewable fuel investment projects;

• The generation and monetization of environmental attributes produced by the Partnership’s renewable fuel projects, changes to legislation and/or regulations concerning the generation and monetization of environmental attributes and pricing volatility in the open markets where environmental attributes are traded;

• The impact of changes in applicable statutes and government regulations, or their interpretations, including those relating to the environment and climate change, human health and safety laws and regulations, derivative instruments, the sale or marketing of propane and renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity and other regulatory developments that could impose costs and liabilities on the Partnership’s business;

• The impact of changes in tax laws that could adversely affect the tax treatment of the Partnership for income tax purposes;

• The impact of legal risks and proceedings on the Partnership’s business;

• The impact of operating hazards that could adversely affect the Partnership’s reputation and its operating results to the extent not covered by insurance;

• The Partnership’s ability to make strategic acquisitions, successfully integrate them and realize the expected benefits of those acquisitions;

• The ability of the Partnership and any third-party service providers on which it may rely for support or services to continue to combat cybersecurity threats to their respective and shared networks and information technology;

• Risks related to the Partnership’s plans to diversify its business;

• The impact of current conditions in the global capital, credit and environmental attribute markets, and general economic pressures; and

• Other risks referenced from time to time in filings with the Securities and Exchange Commission ("SEC") and those factors listed or incorporated by reference into the Partnership’s most recent Annual Report under "Risk Factors."

Some of these risks and uncertainties are discussed in more detail in the Partnership’s Annual Report on Form 10-K for its fiscal year ended September 30, 2023 and other periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s view only as of the date made. The Partnership undertakes no obligation to update any forward-looking statement, except as otherwise required by law.

EBITDA and Adjusted EBITDA are not recognized terms under accounting principles generally accepted in the United States of America ("US GAAP") and should not be considered as an alternative to net income or net cash provided by operating activities determined in accordance with US GAAP. Because EBITDA and Adjusted EBITDA as determined by us excludes some, but not all, items that affect net income, they may not be comparable to EBITDA and Adjusted EBITDA or similarly titled measures used by other companies.

The following table sets forth our calculations of EBITDA and Adjusted EBITDA:

We also reference gross margins, computed as revenues less cost of products sold as those amounts are reported on the consolidated financial statements. Our management uses gross margin as a supplemental measure of operating performance and we are including it as we believe that it provides our investors and industry analysts with additional information that we determined is useful to evaluate our operating results. As cost of products sold does not include depreciation and amortization expense, the gross margin we reference is considered a non-GAAP financial measure.

The unaudited financial information included in this document is intended only as a summary provided for your convenience, and should be read in conjunction with the complete consolidated financial statements of the Partnership (including the Notes thereto, which set forth important information) contained in its Quarterly Report on Form 10-Q to be filed by the Partnership with the SEC. Such report, once filed, will be available on the public EDGAR electronic filing system maintained by the SEC.

SOURCE Suburban Propane Partners, L.P.

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