SUBURBAN PROPANE PARTNERS LP

Previous wording

The following is a discussion and analysis of the financial condition and results of operations of the Partnership as of and for the three and six months ended March 28, 2026, seen from our perspective. The discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the historical consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended September 27, 2025.

Current wording

The following is a discussion and analysis of the financial condition and results of operations of the Partnership as of and for the three and nine months ended June 27, 2026, seen from our perspective. The discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the historical consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended September 27, 2025.

Previous wording

According to the Energy Information Administration, U.S. propane inventory levels at the end of March 2026 were 77.0 million barrels, which was 74.5% higher than March 2025 levels and 46.5% higher than the five-year average for March. The increase in inventory levels contributed to a decrease in average posted propane prices (basis Mont Belvieu, Texas) of 23.1% compared to the prior year second quarter.

Current wording

According to the Energy Information Administration, U.S. propane inventory levels at the end of June 2026 were 91.3 million barrels, which was 20.7% higher than June 2025 levels and 20.9% higher than the five-year average for June. Despite these increased inventory levels, average posted propane prices for the third quarter of fiscal 2026 increased 3.6% (basis Mont Belvieu, Texas) compared to the prior year third quarter due to geopolitical tensions in the Middle East and strong export demand.

Previous wording

The Agents use their commercially reasonable efforts, as the sales agents and subject to the terms of the Equity Distribution Agreement, to sell the Common Units offered. Sales of the Common Units are deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act, including sales made directly on or through the New York Stock Exchange. We may also agree to sell Common Units to the Agents as principal for their own account on terms agreed to by us and the Agents. Each Agent will be entitled to a commission from us on the gross sales price per Common Unit sold under the Equity Distribution Agreement by such Agent acting as our sales agent. During the six months ended March 28, 2026, we issued and sold 171,745 Common Units under the Equity Distribution Agreement for net proceeds of $3.1 million, after agent commissions and offering costs of $0.2 million.

Current wording

The Agents use their commercially reasonable efforts, as the sales agents and subject to the terms of the Equity Distribution Agreement, to sell the Common Units offered. Sales of the Common Units are deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act, including sales made directly on or through the New York Stock Exchange. We may also agree to sell Common Units to the Agents as principal for their own account on terms agreed to by us and the Agents. Each Agent will be entitled to a commission from us on the gross sales price per Common Unit sold under the Equity Distribution Agreement by such Agent acting as our sales agent. During the nine months ended June 27, 2026, we issued and sold 523,404 Common Units under the Equity Distribution Agreement for net proceeds of $9.7 million, after agent commissions and offering costs of $0.3 million.

Previous wording

Net income for the second quarter of fiscal 2026 was $137.5 million, or $2.07 per Common Unit, compared to net income of $137.1 million, or $2.11 per Common Unit, for the second quarter of fiscal 2025. Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”, as defined and reconciled below) for the second quarter of fiscal 2026 improved $0.3 million, or 0.2%, to $175.3 million, compared to the prior year second quarter.

Current wording

Consistent with the seasonal nature of our business, we typically experience a net loss in the third quarter of our fiscal year. Net loss for the third quarter of fiscal 2026 was $17.5 million, or $0.26 per Common Unit, compared to net loss of $14.8 million, or $0.23 per Common Unit, for the third quarter of fiscal 2025. Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”, as defined and reconciled below) for the third quarter of fiscal 2026 was $18.0 million, compared to $27.0 million in the prior year third quarter.

Previous wording

Average propane prices (basis Mont Belvieu, Texas) for the second quarter of fiscal 2026 decreased 23.1% compared to the prior year second quarter. Total gross margin of $343.7 million for the second quarter of fiscal 2026 decreased $1.6 million, or 0.5%, compared to the prior year second quarter. Gross margin for the second quarter of fiscal 2026 included a $1.4 million unrealized loss attributable to the mark-to-market adjustment for derivative instruments used in risk management activities, compared to a $0.7 million unrealized gain 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 $0.5 million compared to the prior year second quarter, primarily due to an increase in propane unit margins of $0.03 per gallon, or 1.7%.

Current wording

Average propane prices (basis Mont Belvieu, Texas) for the third quarter of fiscal 2026 increased 3.6% compared to the prior year third quarter. Total gross margin for the third quarter of fiscal 2026 of $160.3 million was unchanged from the prior year third quarter. Gross margin for the third quarter of fiscal 2026 included a $0.7 million unrealized gain attributable to the mark-to-market adjustment for derivative instruments used in risk management activities, compared to a $2.9 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, total gross margin decreased $3.9 million, or 2.4%, compared to the prior year third quarter, primarily due to lower propane volumes sold, as propane unit margins remained steady.

Previous wording

In December 2025, we strategically refinanced our previously outstanding $350.0 million of 5.875% senior notes due 2027 (“2027 Senior Notes”) with net proceeds from the issuance of new 6.50% senior notes due 2035 (“2035 Senior Notes”) totaling $350.0 million and borrowings under our Revolving Credit Facility. The refinancing extends weighted average debt maturities by nearly three years and provides additional financial flexibility.

Current wording

In December 2025, we strategically refinanced our previously outstanding $350.0 million of 5.875% senior notes due 2027 (“2027 Senior Notes”) with net proceeds from the issuance of new 6.50% senior notes due 2035 (“2035 Senior Notes”) totaling $350.0 million and borrowings under our $500.0 million senior secured revolving credit facility (“Revolving Credit Facility”) provided by our Fourth Amended and Restated Credit Agreement (the “Credit Agreement”). The refinancing extends weighted average debt maturities by nearly three years and provides additional financial flexibility.

Previous wording

During the first quarter of fiscal 2026, we acquired two well-run propane businesses in strategic markets in California for total consideration of $24.0 million, inclusive of non-compete payments. During the second quarter of fiscal 2026, we utilized cash flows from operating activities to repay $64.3 million in borrowings under our revolving credit facility. The Consolidated Leverage Ratio, as defined in our credit agreement, for the twelve-month period ended March 28, 2026 improved to 4.34x, compared to 4.54x for the twelve-month period ended March 29, 2025.

Current wording

During the first quarter of fiscal 2026, we acquired two well-run propane businesses in strategic markets in California for total consideration of $24.0 million, inclusive of non-compete payments. During the third quarter of fiscal 2026, we utilized cash flows from operating activities to repay $36.2 million in borrowings under our Revolving Credit Facility. The Total Consolidated Leverage Ratio, as defined in our Credit Agreement, for the twelve-month period ended June 27, 2026 was 4.35x, compared to 4.33x for the twelve-month period ended June 28, 2025.

Previous wording

Our anticipated cash requirements for the remainder of fiscal 2026 include: (i) maintenance and growth capital expenditures of approximately $19.9 million for the propane segment; (ii) capital expenditures of approximately $19.0 million to support the construction and development efforts for our renewable energy platform; (iii) interest and income tax payments of approximately $37.5 million; and (iv) distributions of approximately $43.3 million to our Common Unitholders, based on the quarterly distribution rate of $0.325 per Common Unit. Based on our liquidity position, which includes availability of funds under the Revolving Credit Facility and expected cash flow from operating activities and our ATM equity program, we expect to have sufficient funds to meet our current and future obligations.

Current wording

Our anticipated cash requirements for the remainder of fiscal 2026 include: (i) maintenance and growth capital expenditures of approximately $8.7 million for the propane segment; (ii) capital expenditures of approximately $7.2 million to support the construction and development efforts for our renewable energy platform; (iii) interest and income tax payments of approximately $3.6 million; and (iv) distributions of approximately $21.7 million to our Common Unitholders, based on the quarterly distribution rate of $0.325 per Common Unit. Based on our liquidity position, which includes availability of funds under the Revolving Credit Facility and expected cash flow from operating activities and our ATM equity program, we expect to have sufficient funds to meet our current and future obligations.

Previous wording

As discussed above, average temperatures (as measured in heating degree days) across all of our service territories during the second quarter of fiscal 2026 were 6% warmer than normal and 1% warmer than the prior year second quarter. Average temperatures in the West were 22% warmer than normal and 17% warmer than the prior year second quarter, whereas average temperatures in the East were 2% warmer than normal and 3% cooler than the prior year second quarter. The cooler average temperatures were primarily in the Northeast and Mid-Atlantic, which led to increased heat-related demand from customers in those markets.

Current wording

As discussed above, average temperatures (as measured in heating degree days) across all of our service territories during the third quarter of fiscal 2026 were 17% warmer than normal and 3% warmer than the prior year third quarter. Average temperatures for the month of April 2026 were 24% warmer than normal and 11% warmer than the prior year, ranking as the second warmest April on record.

Previous wording

Revenues from the distribution of fuel oil and refined fuels of $50.5 million were $0.5 million, or 1.0%, lower than the prior year first half, primarily due to a decrease in volumes sold. Fuel oil and refined fuels gallons sold decreased 0.1 million gallons, or 1.0%, resulting in a $0.5 million decrease in revenues. Average fuel oil and refined fuels selling prices were essentially flat compared to the prior year.

Current wording

Revenues from the distribution of fuel oil and refined fuels of $11.7 million were $2.0 million, or 20.6%, higher than the prior year third quarter, primarily due to higher average retail selling prices, offset to an extent by a decrease in volumes sold. Average fuel oil and refined fuels selling prices increased 31.9%, reflecting higher average wholesale costs, resulting in a $2.8 million increase in revenues. Fuel oil and refined fuels gallons sold decreased 0.2 million gallons, or 8.3%, resulting in a decrease in revenues of $0.8 million.

Previous wording

Revenues in our natural gas and electricity segment of $8.8 million were $0.2 million, or 2.7%, lower than the prior year, resulting from less natural gas and electricity usage, primarily due to the impact of a lower customer base.

Current wording

Revenues in our natural gas and electricity segment of $4.5 million were $0.3 million, or 6.5%, lower than the prior year, resulting from less natural gas and electricity usage, primarily due to the impact of a lower customer base.

Previous wording

Revenues in our all other segment of $38.9 million were $0.5 million, or 1.2%, lower than the prior year first half, primarily due to lower tipping fees at our RNG facilities and lower services revenues.

Current wording

Revenues in our all other segment of $18.2 million were $0.5 million, or 2.8%, lower than the prior year, primarily due to lower services revenues.

Previous wording

In the commodities markets, average posted propane prices (basis Mont Belvieu, Texas) were 23.1% lower than the prior year second quarter, and average fuel oil prices were 22.3% higher. The net change in the fair value of derivative instruments resulted in a $1.4 million unrealized non-cash loss in the second quarter of fiscal 2026, compared to a $0.7 million unrealized non-cash gain in the prior year second quarter. This led to a year-over-year net increase of $2.1 million in cost of products sold, of which $1.9 million and $0.2 million was reported within the propane segment and the natural gas and electricity segment, respectively. These unrealized mark-to-market adjustments were excluded from Adjusted EBITDA for both periods.

Current wording

In the commodities markets, average posted propane prices (basis Mont Belvieu, Texas) were 3.6% higher than the prior year third quarter, while average fuel oil prices increased 73.3%. The increase in wholesale prices reflected global supply concerns stemming from geopolitical tensions in the Middle East. The net change in the fair value of derivative instruments resulted in a $0.7 million unrealized non-cash gain in the third quarter of fiscal 2026, compared to a $2.9 million unrealized non-cash loss in the prior year third quarter. As a result, cost of products sold decreased $3.6 million year-over-year, of which $3.4 million and $0.2 million were reported within the propane segment and the natural gas and electricity segment, respectively. These unrealized mark-to-market adjustments were excluded from Adjusted EBITDA for both periods.

Previous wording

Cost of products sold associated with the distribution of propane and related activities of $176.3 million decreased $36.8 million, or 17.3%, compared to the prior year second quarter. Lower average wholesale costs contributed to a $27.0 million decrease in cost of products sold, while lower volumes sold contributed to a $0.5 million decrease. Included within the propane segment are costs from other propane activities, which decreased $11.2 million compared to the prior year primarily due to a lower notional amount of hedging contracts used in risk management that were settled physically. This was offset to an extent by the net increase in costs of products sold of $1.9 million resulting from the change in mark-to-market adjustments on derivative instruments in both periods discussed above.

Current wording

Cost of products sold associated with the distribution of propane and related activities of $86.6 million decreased $0.5 million, or 0.5%, compared to the prior year third quarter. Lower volumes sold contributed to a $1.5 million decrease in cost of products sold while higher average wholesale costs contributed to a $2.1 million increase. Included within the propane segment are costs from risk management activities, which increased $2.3 million compared to the prior year primarily due to a higher notional amount of hedging contracts that were settled physically. This was offset to an extent by the net decrease in costs of products sold of $3.4 million resulting from the mark-to-market adjustments on derivative instruments in both periods discussed above.

Previous wording

Cost of products sold associated with our fuel oil and refined fuels segment of $20.3 million increased $0.1 million, or 0.6%, compared to the prior year second quarter. Higher average wholesale costs led to an increase of $0.9 million, substantially offset by a decrease of $0.8 million from lower volumes sold.

Current wording

Cost of products sold associated with our fuel oil and refined fuels segment of $8.5 million increased $2.6 million, or 43.8%, compared to the prior year third quarter. Higher average wholesale costs led to an increase of $3.1 million, which was partially offset by a decrease of $0.5 million from lower volumes sold.

Previous wording

All costs of operating our retail distribution and appliance sales and service operations, as well as the RNG production facilities, are reported within operating expenses in the condensed consolidated statements of operations. These operating expenses include the compensation and benefits of field and direct operating support personnel, costs of operating and maintaining our vehicle fleet, overhead and other costs of our purchasing, training and safety departments and other direct and indirect costs of operating our customer service centers and RNG production facilities.

Current wording

All costs of operating our retail distribution and appliance sales and service operations, as well as the RNG production facilities, are reported within operating expenses in the condensed consolidated statements of operations. These operating expenses include the compensation and benefits of field and direct operating support personnel, costs of operating and maintaining our vehicle fleet, overhead and other costs of our purchasing, training and safety departments and other direct and indirect costs of operating our customer service centers and RNG production facilities. In addition, the benefit from PTCs earned from RNG injections is reported within operating expenses.

Previous wording

Operating expenses of $139.5 million for the second quarter of fiscal 2026 increased $0.1 million, or 0.1%, compared to the prior year second quarter, primarily due to higher payroll and benefit-related costs, higher fuel and vehicle maintenance costs, and an increase in accruals for self-insurance matters, substantially offset by a benefit of $3.5 million from the recognition of PTCs and an insurance recovery for the partial settlement of certain claims associated with the RNG Acquisition.

Current wording

Operating expenses of $125.0 million for the third quarter of fiscal 2026 increased $7.5 million, or 6.3%, compared to the prior year third quarter, primarily due to higher payroll and benefit-related costs, higher fuel and vehicle maintenance costs, partially offset by a benefit of $1.1 million from PTCs earned on RNG injections. The prior year third quarter also included a gain from an insurance recovery which reduced operating expenses.

Previous wording

Depreciation and amortization expense of $16.3 million for the second quarter of fiscal 2026 decreased $1.3 million, or 7.7%, compared to the prior year second quarter, primarily as a result of accelerated depreciation in the prior year for assets taken out of service.

Current wording

Depreciation and amortization expense of $16.7 million for the third quarter of fiscal 2026 decreased $2.1 million, or 11.0%, compared to the prior year third quarter, primarily as a result of accelerated depreciation in the prior year for assets taken out of service.

Previous wording

Net interest expense of $19.7 million decreased $0.9 million, or 4.2%, compared to the prior year second quarter, primarily due to a lower level of average outstanding borrowings under our Revolving Credit Facility along with lower benchmark interest rates on those borrowings, offset to an extent by a higher interest rate for a tranche of senior notes that were refinanced in the first quarter of fiscal 2026. See Liquidity and Capital Resources below for additional discussion.

Current wording

Net interest expense of $18.8 million was essentially flat compared to the prior year third quarter, as lower benchmark interest rates on borrowings under our Revolving Credit Facility were substantially offset by a higher interest rate for a tranche of senior notes that were refinanced in the first quarter of fiscal 2026. See Liquidity and Capital Resources below for additional discussion.

Previous wording

Average temperatures (as measured in heating degree days) across all of our service territories for the first half of fiscal 2026 were 6% warmer than normal and 2% cooler than the prior year. The fiscal 2026 heating season was characterized by periods of extremely cold weather in the eastern half of the U.S., principally in the Northeast, Mid-Atlantic and Midwest regions of our operating footprint, and sustained unseasonably warm conditions in the western half. In the East, average temperatures were approximately 1% warmer than normal and 6% colder than the prior year, while average temperatures in the West were approximately 23% and 13% warmer than normal and the prior year, respectively.

Current wording

Average temperatures (as measured in heating degree days) across all of our service territories for the first nine months of fiscal 2026 were 8% warmer than normal and 1% cooler than the prior year. The fiscal 2026 heating season was characterized by periods of extremely cold weather in the eastern half of the U.S., principally in the Northeast, Mid-Atlantic and Midwest regions of our operating footprint, and sustained unseasonably warm conditions in the western half. For the first nine months of fiscal 2026, average temperatures in the East were approximately 3% warmer than normal and 6% colder than the prior year, while average temperatures in the West were approximately 23% and 14% warmer than normal and the prior year, respectively.

Previous wording

Revenues from the distribution of propane and related activities of $817.5 million decreased $38.0 million, or 4.4%, compared to the prior year, due to lower average retail selling prices, partially offset by higher volumes sold. Average propane selling prices decreased 3.3%, reflecting lower average wholesale costs, resulting in a $27.8 million decrease in revenues. Retail propane gallons sold increased 4.0 million gallons, or 1.5%, resulting in a $12.4 million increase in revenues. The increase in propane volumes sold was primarily due to the impact of colder temperatures across much of the eastern half of the United States on heat-related demand and contributions from our recent acquisitions, which more than offset considerably warmer temperatures in the West and incremental volumes in the prior year first half in the aftermath of Hurricanes Helene and Milton in the Southeast. Included within the propane segment are revenues from risk management activities, which decreased $22.6 million, primarily due to a lower notional amount of hedging contracts used in risk management activities that were settled physically.

Current wording

Revenues from the distribution of propane and related activities of $1,044.5 million decreased $37.9 million, or 3.5%, compared to the prior year, due to lower average retail selling prices, partially offset by higher volumes sold. Average propane selling prices decreased 2.5%, reflecting lower average wholesale costs, resulting in a $26.3 million decrease in revenues. Retail propane gallons sold increased 2.7 million gallons, or 0.8%, resulting in an $8.4 million increase in revenues. The increase in propane volumes sold was primarily due to the impact of colder temperatures during the heating season across much of the eastern half of the United States on heat-related demand and contributions from our recent acquisitions, which more than offset considerably warmer temperatures in the West and incremental volumes in the prior year comparable period in the aftermath of Hurricanes Helene and Milton in the Southeast. Included within the propane segment are revenues from risk management activities, which decreased $20.0 million, primarily due to a lower notional amount of hedging contracts that were settled physically.

Previous wording

Revenues from the distribution of fuel oil and refined fuels of $32.4 million were $1.0 million, or 3.0%, lower than the prior year second quarter, primarily due to a decrease in volumes sold, offset to an extent by higher average retail selling prices. Fuel oil and refined fuels gallons sold decreased 0.3 million gallons, or 3.8%, resulting in a $1.2 million decrease in revenues. Average fuel oil and refined fuels selling prices increased 0.8% compared to the prior year, resulting in a $0.2 million increase in revenues.

Current wording

Revenues from the distribution of fuel oil and refined fuels of $62.2 million were $1.5 million, or 2.5%, higher than the prior year, primarily due to an increase in average selling prices, offset to an extent by a decrease in volumes sold. Average fuel oil and refined fuels selling prices increased 4.9% compared to the prior year, reflecting the increase in average wholesale costs, resulting in a $2.9 million increase in revenues. Fuel oil and refined fuels gallons sold decreased 0.3 million gallons, or 2.3%, resulting in a $1.4 million decrease in revenues.

Previous wording

Revenues in our natural gas and electricity segment of $14.7 million were $0.4 million, or 2.7%, lower than the prior year, resulting from lower electricity usage, primarily due to the impact of a lower customer base.

Current wording

Revenues in our natural gas and electricity segment of $19.2 million were $0.7 million, or 3.6%, lower than the prior year, resulting from lower electricity usage, primarily due to the impact of a lower customer base.

Previous wording

Revenues in our all other segment of $18.9 million were $1.1 million, or 5.4%, lower than the prior year, primarily due to lower tipping fees at our RNG facilities and lower services revenues.

Current wording

Revenues in our all other segment of $57.0 million were $1.0 million, or 1.7%, lower than the prior year, primarily due to lower tipping fees at our RNG facilities, partially offset by higher revenues from sales of RNG.

Previous wording

In the commodities markets, average posted propane prices (basis Mont Belvieu, Texas) were 18.9% lower than the prior year first half, while average fuel oil prices were 13.6% higher than the prior year first half. The net change in the fair value of derivative instruments resulted in a $0.4 million unrealized non-cash loss in the first half of fiscal 2026, compared to a $4.4 million unrealized non-cash gain in the first half of fiscal 2025. This led to a year-over-year net increase of $4.8 million in cost of products sold, of which $4.7 million and $0.1 million was reported within the propane segment and the natural gas and electricity segment, respectively. These unrealized mark-to-market adjustments were excluded from Adjusted EBITDA for both periods.

Current wording

In the commodities markets, average posted propane prices (basis Mont Belvieu, Texas) were 11.7% lower than the prior year period, while average fuel oil prices were 32.7% higher. The net change in the fair value of derivative instruments resulted in a $0.3 million unrealized non-cash gain in the first nine months of fiscal 2026, compared to a $1.5 million unrealized non-cash gain in the prior year. This led to a year-over-year net increase of $1.2 million in cost of products sold, with an increase of $1.3 million reported within the propane segment, and a decrease of $0.1 million reported in the natural gas and electricity segment. These unrealized mark-to-market adjustments were excluded from Adjusted EBITDA for both periods.

Previous wording

Cost of products sold associated with the distribution of propane and related activities of $288.4 million decreased $54.4 million, or 15.9%, compared to the prior year. Lower average wholesale costs contributed to a $40.6 million decrease in cost of products sold, while higher volumes sold contributed to a $4.7 million increase. Included within the propane segment are costs from other propane activities, which decreased $23.2 million compared to the prior year first half primarily due to a lower notional amount of hedging contracts used in risk management that were settled physically. This was offset to an extent by the net increase in costs of products sold of $4.7 million resulting from the change in mark-to-market adjustments on derivative instruments in both periods discussed above.

Current wording

Cost of products sold associated with the distribution of propane and related activities of $374.9 million decreased $54.8 million, or 12.8%, compared to the prior year. Lower average wholesale costs contributed to a $38.4 million decrease in cost of products sold, while higher volumes sold contributed to a $3.2 million increase. Included within the propane segment are costs from other propane activities, which decreased $20.9 million compared to the corresponding prior year period primarily due to a lower notional amount of hedging contracts used in risk management that were settled physically. This was offset to an extent by the net increase in costs of products sold of $1.3 million resulting from the change in mark-to-market adjustments on derivative instruments in both periods discussed above.

Previous wording

Cost of products sold associated with our fuel oil and refined fuels segment of $31.6 million increased $0.9 million, or 2.8%, compared to the prior year. Higher average wholesale costs led to an increase of $1.2 million, which was partially offset by the impact of $0.3 million from lower volumes sold.

Current wording

Cost of products sold associated with our fuel oil and refined fuels segment of $40.1 million increased $3.5 million, or 9.5%, compared to the prior year. Higher average wholesale costs led to an increase of $4.3 million, which was partially offset by the impact of $0.8 million from lower volumes sold.

Previous wording

Cost of products sold in our natural gas and electricity segment of $10.7 million increased $2.3 million, or 27.0%, compared to the prior year primarily due to higher natural gas and electricity wholesale costs and the net increase of $0.1 million resulting from the change in mark-to-market adjustments on derivative instruments used in both periods discussed above.

Current wording

Cost of products sold in our natural gas and electricity segment of $13.4 million increased $2.1 million, or 18.4%, compared to the prior year primarily due to higher natural gas and electricity wholesale costs, offset to an extent by the net decrease of $0.1 million resulting from the change in mark-to-market adjustments on derivative instruments used in both periods discussed above.

Previous wording

Operating expenses of $266.7 million for the first half of fiscal 2026 increased $4.1 million, or 1.6%, compared to the prior year first half, primarily due to higher payroll and benefit-related costs, higher volume-related variable operating costs to support the increase in customer demand and an increase in accruals for self-insurance matters, offset to an extent by a benefit of $3.5 million from the recognition of PTCs and an insurance recovery for the partial settlement of certain claims associated with the RNG Acquisition.

Current wording

Operating expenses of $391.6 million for the first nine months of fiscal 2026 increased $11.6 million, or 3.0%, compared to the corresponding prior year period, primarily due to higher payroll and benefit-related costs, higher volume-related variable operating costs to support the increase in customer demand and an increase in accruals for self-insurance matters, offset to an extent by a benefit of $4.6 million from the recognition of PTCs and an insurance recovery for the partial settlement of certain claims associated with the RNG Acquisition.

Previous wording

General and administrative expenses of $57.9 million for the first half of fiscal 2026 increased $1.2 million, or 2.0%, compared to the prior year, primarily due to higher variable compensation costs associated with the increase in earnings and costs related to our multi-year initiative to modernize our information technology platform, offset to an extent by the capitalization of payroll and benefit- related costs associated with software implementation.

Current wording

General and administrative expenses of $74.4 million for the first nine months of fiscal 2026 decreased $1.1 million, or 1.5%, compared to the prior year period, primarily due to lower variable compensation costs coupled with the capitalization of payroll and benefit-related costs associated with software implementation related to our multi-year initiative to modernize our information technology platform.

Previous wording

Depreciation and amortization expense of $33.1 million for the first half of fiscal 2026 decreased $1.6 million, or 4.6%, primarily as a result of accelerated depreciation in the prior year for assets taken out of service.

Current wording

Depreciation and amortization expense of $49.8 million for the first nine months of fiscal 2026 decreased $3.6 million, or 6.8%, primarily as a result of accelerated depreciation in the prior year for assets taken out of service.

Previous wording

Net interest expense of $39.5 million decreased $0.7 million, or 1.8%, compared to the prior year period, primarily due to a lower level of average outstanding borrowings under our Revolving Credit Facility and lower benchmark interest rates on those borrowings, offset to an extent by a higher interest rate for a tranche of senior notes that were refinanced in the first quarter of fiscal 2026. See Liquidity and Capital Resources below for additional discussion.

Current wording

Net interest expense of $58.3 million decreased $0.8 million, or 1.3%, compared to the prior year period, primarily due to lower benchmark interest rates on borrowings under the Revolving Credit Facility, offset to an extent by a higher interest rate for a tranche of senior notes that were refinanced in the first quarter of fiscal 2026. See Liquidity and Capital Resources below for additional discussion.

Previous wording

Six months ended March 29, 2025 included an other-than-temporary impairment charge of $9.6 million recorded during the first quarter of fiscal 2025 (see Item 1, Note 4 of this Quarterly Report).

Current wording

Nine months ended June 28, 2025 included an other-than-temporary impairment charge of $9.6 million recorded during the first quarter of fiscal 2025 (see Item 1, Note 4 of this Quarterly Report).

Previous wording

Six months ended March 29, 2025 included an other-than-temporary impairment charge of $10.2 million recorded during the first quarter of fiscal 2025 (see Item 1, Note 4 of this Quarterly Report).

Current wording

Nine months ended June 28, 2025 included an other-than-temporary impairment charge of $10.2 million recorded during the first quarter of fiscal 2025 (see Item 1, Note 4 of this Quarterly Report).

Previous wording

Both periods included net periodic benefits costs for our pension and other postretirement benefit plans (see Item 1, Note 15 of this Quarterly Report). Six months ended March 28, 2026 included an other-than-temporary impairment charge of $0.2 million related to a cost-method investee recorded during the first quarter of fiscal 2026.

Current wording

Both periods included net periodic benefits costs for our pension and other postretirement benefit plans (see Item 1, Note 15 of this Quarterly Report). Nine months ended June 27, 2026 included an other-than-temporary impairment charge of $0.2 million related to a cost-method investee recorded during the first quarter of fiscal 2026.

Previous wording

Operating Activities. Net cash provided by operating activities for the first half of fiscal 2026 was $68.6 million compared to $48.9 million in the first half of the prior year. The change was primarily due to higher earnings in the current period coupled with a smaller increase in working capital compared to the prior year, which stemmed from the decline in average wholesale costs of propane.

Current wording

Operating Activities. Net cash provided by operating activities for the first nine months of fiscal 2026 was $139.6 million, compared to $144.4 million in the corresponding prior year period. The change was primarily due to a larger increase in working capital compared to the prior year period, driven by higher accounts receivable resulting from year-over-year increases in propane volumes sold, as well as higher inventory levels on hand.

Previous wording

Investing Activities. Net cash used in investing activities of $65.8 million for the first half of fiscal 2026 consisted of capital expenditures of $44.5 million (including approximately $31.2 million to support the growth of operations and $13.3 million for maintenance expenditures), $22.9 million used to fund the acquisitions of two propane businesses, and $0.2 million used to fund additional investments in an unconsolidated affiliate. This was partially offset by $1.8 million in proceeds from the sale of property, plant and equipment. See Item 1, Note 4 of this Quarterly Report.

Current wording

Investing Activities. Net cash used in investing activities of $86.6 million for the first nine months of fiscal 2026 consisted of capital expenditures of $66.0 million (including approximately $46.3 million to support the growth of operations and $19.7 million for maintenance expenditures), $22.9 million used to fund the acquisitions of two propane businesses, and $0.2 million used to fund additional investments in an unconsolidated affiliate. This was partially offset by $2.5 million in proceeds from the sale of property, plant and equipment. See Item 1, Note 4 of this Quarterly Report.

Previous wording

Net cash used in investing activities of $97.1 million for the first half of fiscal 2025 consisted of capital expenditures of $43.2 million (including approximately $30.5 million to support the growth of operations and $12.7 million for maintenance expenditures), $50.0 million used to fund the acquisitions of propane businesses, and $5.3 million used to fund additional investments in Oberon and IH. This was partially offset by $1.4 million in proceeds from the sale of property, plant and equipment.

Current wording

Net cash used in investing activities of $114.9 million for the first nine months of fiscal 2025 consisted of capital expenditures of $57.8 million (including approximately $40.3 million to support the growth of operations and $17.5 million for maintenance expenditures), $52.6 million used to fund the acquisitions of propane businesses, and $6.8 million used to fund additional investments in our unconsolidated affiliates. This was partially offset by $2.3 million in proceeds from the sale of property, plant and equipment.

Previous wording

Financing Activities. Net cash provided by financing activities of $2.2 million for the first half of fiscal 2026 reflected $51.1 million in net borrowings under our Revolving Credit Facility to support seasonal working capital needs and $3.1 million in net proceeds raised from the sale of Common Units under our ATM equity program (see Item 1, Note 17, “At-the-Market Equity Program,” of this Quarterly Report). Financing activities also reflected $43.0 million paid for the quarterly distributions to Common Unitholders at a rate of $0.325 per Common Unit paid in respect of the fourth quarter of fiscal 2025 and first quarter of fiscal 2026, $6.0 million of issuance costs related to the issuance of our 2035 Senior Notes, as well as other financing activities of $3.1 million. As described in Item 1, Note 10 of this Quarterly Report, during the first quarter of fiscal 2026, we completed the private offering of $350.0 million in aggregate principal amount of our 2035 Senior Notes. The net proceeds from the offering of the 2035 Senior Notes, along with borrowings under the Revolving Credit Facility, were used to redeem, satisfy and discharge all of the then outstanding 2027 Senior Notes.

Current wording

Financing Activities. Net cash used in financing activities of $49.4 million for the first nine months of fiscal 2026 reflected $64.5 million paid for the quarterly distributions to Common Unitholders at a rate of $0.325 per Common Unit paid in respect of the fourth quarter of fiscal 2025 and the first and second quarters of fiscal 2026, $6.0 million of issuance costs related to the issuance of our 2035 Senior Notes, as well as other financing activities of $3.5 million. Financing activities also reflected $14.9 million in net borrowings under our Revolving Credit Facility to support seasonal working capital needs and $9.7 million in net proceeds raised from the sale of Common Units under our ATM equity program (see Item 1, Note 17, “At-the-Market Equity Program,” of this Quarterly Report). As described in Item 1, Note 10 of this Quarterly Report, during the first quarter of fiscal 2026, we completed the private offering of $350.0 million in aggregate principal amount of our 2035 Senior Notes. The net proceeds from the offering of the 2035 Senior Notes, along with borrowings under the Revolving Credit Facility, were used to redeem, satisfy and discharge all of the then outstanding 2027 Senior Notes.

Previous wording

Net cash provided by financing activities of $45.1 million for the first half of fiscal 2025 reflected $81.6 million in net borrowings under our Revolving Credit Facility to support seasonal working capital needs and $8.8 million in net proceeds raised from the sale of Common Units under our ATM equity program. Financing activities also reflected $41.8 million paid for the quarterly distributions to Common Unitholders at a rate of $0.325 per Common Unit paid in respect of the fourth quarter of fiscal 2024 and first quarter of fiscal 2025, as well as other financing activities of $3.5 million.

Current wording

Net cash used in financing activities of $37.3 million for the first nine months of fiscal 2025 reflected $62.9 million paid for the quarterly distributions to Common Unitholders at a rate of $0.325 per Common Unit paid in respect of the fourth quarter of fiscal 2024 and the first and second quarters of fiscal 2025, as well as other financing activities of $3.9 million. This was offset to an extent by $12.6 million in net borrowings under our Revolving Credit Facility, which were used to fund a portion of our seasonal working capital needs and the capital expenditures, acquisitions and investments noted above, coupled with $16.9 million in net proceeds raised from the issuance of Common Units under our ATM equity program.