About Suburban Propane Partners
Suburban Propane Partners, L.P. (NYSE: SPH) is a publicly traded master limited partnership (MLP). It’s headquartered in Whippany, New Jersey, and has been in the energy distribution business since 1928, giving it nearly a century of operational history.
Key Overview
Suburban Propane is primarily a nationwide marketer and distributor of energy products, including propane, renewable propane, renewable natural gas (RNG), fuel oil, and refined fuels. It also markets natural gas and electricity and invests in low-carbon energy alternatives.
The company serves around 1 million residential, commercial, governmental, industrial, and agricultural customers through a broad network of operations across approximately 700+ locations in 42 U.S. states.
Beyond traditional fuels, Suburban Propane has been expanding into renewable energy platforms (like RNG and hydrogen technologies) and emphasizes sustainability through initiatives like renewable propane and low-carbon fuels.
The business highlights a long-standing commitment to safety, reliability, local community support (via its SuburbanCares initiative), and customer service.
Earnings Performance
Net income for the first quarter of fiscal 2026 rose to $45.8 million, or $0.69 per common unit, compared with $19.4 million, or $0.30 per common unit, in the first quarter of fiscal 2025. Adjusted EBITDA increased by $8.1 million, or 10.8%, year over year to $83.4 million.
Volumes and Weather Impact
Retail propane volumes increased 4.2% to 110.2 million gallons, driven by colder temperatures in the eastern U.S. and contributions from recent acquisitions, which more than offset warmer conditions in the West and hurricane-related incremental volumes in the prior year. Overall temperatures were 6% warmer than normal and 6% cooler than last year, with the East cooler year over year and the West significantly warmer.
Pricing and Gross Margin
Average propane prices declined 14.0% year over year. Total gross margin rose 5.9% to $239.5 million, while excluding mark-to-market impacts, gross margin increased 7.2%, supported by higher volumes and a $0.08 per gallon (4.1%) improvement in unit margins.
Operating Expenses
Combined operating and general and administrative expenses increased 3.4% to $155.0 million, mainly due to higher payroll, benefits, overtime, and variable compensation tied to stronger demand and earnings.
Financing and Capital Structure
In December 2025, the Partnership refinanced $350.0 million of senior notes, issuing new 6.50% notes due 2035, extending average debt maturities by nearly three years and enhancing financial flexibility.
Acquisitions and Leverage
Two propane businesses in California were acquired for $24.0 million, funded alongside other needs through revolver borrowings and $3.1 million from equity issuance. The consolidated leverage ratio improved to 4.57x, down from 4.99x a year earlier.
Distributions The Board declared a quarterly distribution of $0.325 per common unit, equivalent to $1.30 annually, payable on February 10, 2026.