SUBURBAN PROPANE PARTNERS LP
For the period ended Mar 28, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 28, 2026 · Filed May 7, 2026
SPH$17.18-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-27; filed 2026-02-05.
0001193125-26-038903
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-28; filed 2026-05-07.
0001193125-26-210853
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 90 previous paragraphs and 120 current paragraphs.
54 unchanged; 34 reworded; 25 added; 2 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 9 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Transferable Tax Credits
Current report
In accordance with the Inflation Reduction Act of 2022 (“IRA”), renewable natural gas (“RNG”) produced in the United States and sold for use as a transportation fuel may qualify for the Clean Fuel Production Tax Credit (“PTC”) under Section 45Z of the Internal Revenue Code. Section 45Z was enacted as part of the IRA and is administered primarily by the U.S. Department of Treasury and Internal Revenue Service, in coordination with other federal agencies, including the Environmental Protection Agency and the U.S. Department of Energy. The IRA was designed, in part, to incentivize the development and production of renewable and low carbon energy. On July 4, 2025, The One, Big, Beautiful Bill Act (“OBBBA”) was signed into law, extending the availability of the Section 45Z credit from December 31, 2027 to December 31, 2029. Accordingly, qualifying credits may be claimed for eligible RNG produced and sold after December 31, 2024, and before January 1, 2030.
Current report
Although Section 45Z became effective on January 1, 2025, we did not previously recognize any benefit from these credits pending additional regulatory clarity regarding eligibility, lifecycle greenhouse gas emissions calculations, and transferability. On February 4, 2026, proposed Treasury regulations published in the Federal Register provided sufficient clarity for us to conclude that the production and sale of our RNG qualify for the credit.
Current report
The value of PTCs earned is based on the statutory base credit rate of $0.20 per gallon equivalent, adjusted for applicable prevailing wage and apprenticeship compliance, lifecycle greenhouse gas emissions calculations, qualifying production and sales volumes, and prevailing market prices for transferable tax credits. Where applicable prevailing wage and apprenticeship requirements are satisfied, the credit may be increased up to five times the base amount. The amount recognized reflects our estimate of credits earned based on currently available guidance, applicable carbon intensity scores, and anticipated monetization values. Actual amounts ultimately realized may differ upon the issuance of final regulations and the ultimate transfer or utilization of the credits.
Current report
Combined operating and general and administrative expenses of $169.5 million for the second quarter of fiscal 2026 were flat compared to the prior year second quarter, as higher payroll and benefit-related expenses, higher fuel and other vehicle costs, and an increase in accruals for self-insurance matters, were offset by a benefit of $3.5 million from the recognition of PTCs and an insurance recovery related to the partial settlement of certain claims associated with our acquisition of RNG production assets in December 2022.
Current report
Revenues from the distribution of propane and related activities of $491.1 million decreased $34.1 million, or 6.5%, compared to the prior year, primarily due to lower average retail selling prices. Average propane selling prices decreased 4.2% compared to the prior year second quarter, reflecting lower average wholesale costs, resulting in a $21.3 million decrease in revenues. Retail propane gallons sold were essentially flat compared to the prior year second quarter, as the impact of cooler temperatures in the East on heat-related demand and contributions from our recent acquisitions, substantially offset considerably warmer temperatures in the West, resulting in a $1.4 million decrease in revenues. Included within the propane segment are revenues from risk management activities, which decreased $11.4 million, primarily due to a lower notional amount of hedging contracts used in risk management activities that were settled physically.
Current report
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 report
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 report
General and administrative expenses of $30.0 million for the second quarter of fiscal 2026 were essentially flat compared to the prior year second quarter, as higher variable compensation expense was substantially offset by the capitalization of payroll and benefit-related costs associated with software implementation as part of our multi-year initiative to modernize our information technology platform.
Current report
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 report
Six Months Ended March 28, 2026 Compared to Six Months Ended March 29, 2025
Current report
Revenues
Current report
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 report
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 report
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 report
Cost of Products Sold
Current report
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 report
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 report
Operating Expenses
Current report
General and Administrative Expenses
Current report
Depreciation and Amortization
Current report
Interest Expense, net
Current report
Other, net
Current report
EBITDA and Adjusted EBITDA
Current report
Seasonal working capital needs are typically greater during the first and second quarters, which can lead to increased borrowings under the Revolving Credit Facility. The Consolidated Leverage Ratio for the twelve months ended March 29, 2025 was 4.54x.
Removed paragraphs (2)
Previous report
Combined operating and general and administrative expenses of $155.0 million for the first quarter of fiscal 2026 increased $5.0 million, or 3.4%, compared to the prior year first quarter, primarily due to higher payroll and benefit-related expenses, overtime and other variable operating costs to support the increase in customer demand, as well as higher variable compensation expense associated with the increase in earnings.
Previous report
Revenues in our all other segment of $19.9 million were $0.6 million, or 3.1%, higher than the prior year, primarily due to an increase in renewable natural gas (“RNG”) injections at our facility in Stanfield, Arizona. This was offset to an extent by a decrease in environmental attribute and RNG commodity prices compared to the prior year first quarter.
Reworded paragraphs (34)
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 months ended December 27, 2025, 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 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.
Previous wording
According to the Energy Information Administration, U.S. propane inventory levels at the end of December 2025 were 100.3 million barrels, which was 18.0% higher than December 2024 levels and 19.7% higher than the five-year average for December. The increase in inventory levels contributed to a decrease in average posted propane prices (basis Mont Belvieu, Texas) for the first quarter of fiscal 2026 of 14.0% compared to the prior year first quarter.
Current 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.
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 three months ended December 27, 2025, we issued 171,745 Common Units under the Equity Distribution Agreement for net proceeds of $3.1 million, after agent commissions and offering costs of $0.1 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 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.
Previous wording
Net income for the first quarter of fiscal 2026 was $45.8 million, or $0.69 per Common Unit, compared to net income of $19.4 million, or $0.30 per Common Unit, for the first quarter of fiscal 2025. Adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA, as defined and reconciled below) for the first quarter of fiscal 2026 improved $8.1 million, or 10.8%, to $83.4 million, compared to the prior year first quarter.
Current 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.
Previous wording
Retail propane gallons sold in the first quarter of fiscal 2026 of 110.2 million gallons increased 4.2% compared to the prior year, 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 quarter in the aftermath of Hurricanes Helene and Milton in the Southeast. Average temperatures (as measured by the number of heating degree days reported by the National Oceanic and Atmospheric Administration) across all of our service territories during the first quarter of fiscal 2026 were 6% warmer than normal and 6% cooler than the prior year first quarter. Notably, average temperatures in the East were in line with normal and 12% cooler than the prior year first quarter, whereas average temperatures in the West were 24% warmer than normal and 11% warmer than the prior year first quarter.
Current wording
Retail propane gallons sold in the second quarter of fiscal 2026 of 161.6 million gallons were flat compared to the prior year second quarter, as the impact of cooler temperatures across much of the eastern half of the United States on heat-related demand and contributions from our recent acquisitions, were offset by considerably warmer temperatures in the West. Average temperatures (as measured by the number of heating degree days reported by the National Oceanic and Atmospheric Administration) 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. Notably, average temperatures in the East were 2% warmer than normal and 3% colder than the prior year, whereas average temperatures in the West were 22% warmer than normal and 17% warmer than the prior year.
Previous wording
Average propane prices (basis Mont Belvieu, Texas) for the first quarter of fiscal 2026 decreased 14.0% compared to the prior year first quarter. Total gross margin of $239.5 million for the fiscal 2026 first quarter increased $13.4 million, or 5.9%, compared to the prior year first quarter. Gross margin for the first quarter of fiscal 2026 included a $0.9 million unrealized gain attributable to the mark-to-market adjustment for derivative instruments used in risk management activities, compared to a $3.6 million unrealized gain 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 increased $16.1 million, or 7.2%, compared to the prior year first quarter, primarily due to higher propane volumes sold, and an increase in propane unit margins of $0.08 per gallon, or 4.1%.
Current 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%.
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. The acquisitions, along with seasonal working capital, growth capital expenditures for the RNG facilities, and costs associated with the refinancing of our 2027 Senior Notes were funded with net borrowings of $115.4 million under the Revolving Credit Facility and net proceeds of $3.1 million from the issuance of Common Units under the At-the-Market equity program. The Consolidated Leverage Ratio, as defined in our Credit Agreement, for the twelve-month period ended December 27, 2025 was 4.57x, compared to 4.99x for the twelve-month period ended December 28, 2024.
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 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.
Previous wording
Our anticipated cash requirements for the remainder of fiscal 2026 include: (i) maintenance and growth capital expenditures of approximately $32.0 million for the propane segment; (ii) capital expenditures of approximately $29.7 million to support the construction and development efforts for our renewable energy platform; (iii) interest and income tax payments of approximately $42.6 million; and (iv) distributions of approximately $65.1 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 $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.
Previous wording
Our long-term strategic growth plan is to foster the growth of our core propane business, while making strategic investments in lower carbon renewable energy alternatives that allows us to leverage our core competencies in safety, logistics expertise and customer service. Suburban Propane has a proud legacy of being a trusted provider of energy to local communities for almost 100 years. We are leveraging the strength and stability of our core propane business to position Suburban Propane for sustainable, long-term growth by helping to identify and invest in solutions to support the ongoing energy evolution to a lower-carbon energy economy. That innovation includes our advancements in delivering renewable propane and renewable natural gas as direct drop-in replacements for their traditional energy equivalents.
Current wording
Our long-term strategic growth plan is to foster the growth of our core propane business, while making strategic investments in lower carbon renewable energy alternatives that allow us to leverage our core competencies in safety, logistics expertise and customer service. Suburban Propane has a proud legacy of being a trusted provider of energy to local communities for almost 100 years. We are leveraging the strength and stability of our core propane business to position Suburban Propane for sustainable, long-term growth by helping to identify and invest in solutions to support the ongoing energy evolution to a lower-carbon energy economy. That innovation includes our advancements in delivering renewable propane and renewable natural gas as direct drop-in replacements for their traditional energy equivalents.
Previous wording
As discussed above, average temperatures (as measured in heating degree days) across all of our service territories during the first quarter of fiscal 2026 were 6% warmer than normal and 6% cooler than the prior year first quarter. The cooler weather was primarily experienced in the Northeast, Mid-Atlantic and Midwest regions of our operating footprint, whereas average temperatures in the western parts of our footprint were considerably warmer than the prior year. Notably, average temperatures in the East were in line with normal and 12% cooler than the prior year first quarter, whereas average temperatures in the West were 24% warmer than normal and 11% warmer than the prior year first quarter.
Current 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.
Previous wording
Revenues from the distribution of fuel oil and refined fuels of $18.2 million were $0.5 million, or 2.9%, higher than the prior year first quarter, primarily due to an increase in volumes sold, offset to an extent by lower average retail selling prices. Fuel oil and refined fuels gallons sold increased 0.2 million gallons, or 3.9%, resulting in a $0.7 million increase in revenues. Average fuel oil and refined fuels selling prices decreased 1.0% compared to the prior year, resulting in a $0.2 million decrease in revenues.
Current 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.
Previous wording
In the commodities markets, average posted propane prices (basis Mont Belvieu, Texas) were 14.0% lower than the prior year first quarter, and average fuel oil prices were 4.4% higher than the prior year first quarter. The net change in the fair value of derivative instruments resulted in unrealized non-cash gains of $0.9 million and $3.6 million in the first quarter of fiscal 2026 and 2025, respectively. This led to a year-over-year net increase of $2.7 million in cost of products sold, with a $2.8 million increase reported within the propane segment, and a $0.1 million decrease reported within the natural gas and electricity segment. 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 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.
Previous wording
Cost of products sold associated with our fuel oil and refined fuels segment of $11.3 million increased $0.7 million, or 7.1%, compared to the prior year first quarter. Higher volumes sold and higher average wholesale costs led to increases of $0.4 million and $0.3 million, respectively.
Current 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.
Previous wording
Depreciation and amortization expense of $16.9 million for the first quarter of fiscal 2026 decreased $0.2 million, or 1.4%, compared to the prior year first 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 $16.3 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.
Previous wording
Revenues from the distribution of propane and related activities of $326.4 million decreased $3.9 million, or 1.2%, compared to the prior year, due to lower average retail selling prices, partially offset by higher volumes sold. Average propane selling prices decreased 1.8% compared to the prior year first quarter, reflecting lower average wholesale costs, resulting in a $6.1 million decrease in revenues. Retail propane gallons sold increased 4.4 million gallons, or 4.2%, compared to the prior year first quarter, resulting in a $13.3 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 quarter in the aftermath of Hurricanes Helene and Milton in the Southeast. Included within the propane segment are revenues from risk management activities, which decreased $11.1 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 $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.
Previous wording
Revenues in our natural gas and electricity segment of $5.9 million were $0.2 million, or 2.5%, lower than the prior year, resulting from lower electricity sales, primarily due to the impact of a lower customer base.
Current 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.
Previous wording
Cost of products sold associated with the distribution of propane and related activities of $112.1 million decreased $17.6 million, or 13.6%, compared to the prior year first quarter. Lower average wholesale costs contributed to a $13.1 million decrease in cost of products sold, while higher volumes sold contributed to a $4.8 million increase. Included within the propane segment are costs from other propane activities, which decreased $12.1 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 $2.8 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 $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.
Previous wording
Cost of products sold in our natural gas and electricity segment of $3.2 million increased $0.6 million, or 24.0%, compared to the prior year primarily due to higher natural gas and electricity wholesale costs, partially offset by lower usage and 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.
Current 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.
Previous wording
Operating expenses of $127.2 million for the first quarter of fiscal 2026 increased $4.0 million, or 3.3%, compared to the prior year first quarter, primarily due to higher payroll and benefit-related costs, overtime and other variable operating costs to support the increase in customer demand, as well as higher variable compensation costs associated with the increase in earnings.
Current 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.
Previous wording
General and administrative expenses of $27.9 million for the first quarter of fiscal 2026 increased $1.0 million, or 3.8%, compared to the prior year first quarter, primarily due to higher variable compensation costs associated with the increase in earnings.
Current 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.
Previous wording
Net interest expense of $19.8 million increased $0.1 million, or 0.7%, compared to the prior year first quarter, primarily due to a higher level of average outstanding borrowings under our Revolving Credit Facility, substantially offset by lower benchmark interest rates on those borrowings. See Liquidity and Capital Resources below for additional discussion.
Current 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.
Previous wording
Three months ended December 28, 2024 included an other-than-temporary impairment charge of $9.6 million (see Item 1, Note 4 of this Quarterly Report).
Current 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).
Previous wording
Three months ended December 28, 2024 included an other-than-temporary impairment charge of $10.2 million (see Item 1, Note 4 of this Quarterly Report).
Current 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).
Previous wording
Both periods included net periodic benefits costs for the Partnership’s pension and other postretirement benefit plans (see Item 1, Note 15 of this Quarterly Report). Three months ended December 27, 2025 included an other-than-temporary impairment charge of $0.2 million related to a cost-method investee.
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). 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.
Previous wording
Operating Activities. Net cash used in operating activities for the first quarter of fiscal 2026 was $47.7 million, compared to net cash provided by operating activities of $8.8 million in the prior year first quarter. The change was primarily due to the timing of payments for propane purchases and other working capital-related items, partially offset by higher earnings in the current period.
Current 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.
Previous wording
Investing Activities. Net cash used in investing activities of $41.3 million for the first quarter of fiscal 2026 consisted of $22.0 million used to fund the acquisitions of two propane businesses, capital expenditures of $19.8 million (including approximately $13.7 million to support the growth of operations and $6.1 million for maintenance expenditures), and $0.2 million used to fund additional investments in an unconsolidated affiliate. This was partially offset by $0.7 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 $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.
Previous wording
Net cash used in investing activities of $74.5 million for the first quarter of fiscal 2025 consisted of capital expenditures of $23.8 million (including approximately $19.2 million to support the growth of operations and $4.6 million for maintenance expenditures), $46.8 million used to fund the acquisitions of retail propane businesses, and $4.3 million used to fund additional investments in unconsolidated affiliates. This was partially offset by $0.4 million in proceeds from the sale of property, plant and equipment.
Current 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.
Previous wording
Financing Activities. Net cash provided by financing activities of $88.8 million for the first quarter of fiscal 2026 reflected $115.4 million in net borrowings under our Revolving Credit Facility and $3.1 million in net proceeds raised from the issuance of Common Units under our ATM equity program (see below) , which were used to fund a portion of our seasonal working capital needs and the capital expenditures, acquisitions and investments noted above. Financing activities also reflected $21.4 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, $5.3 million of issuance costs related to the issuance of our 2035 Senior Notes, as well as other financing activities of $3.0 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 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.
Previous wording
Net cash provided by financing activities of $67.6 million for the first quarter of fiscal 2025 reflected $91.7 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, offset to an extent by $20.8 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 other financing activities of $3.3 million.
Current 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.
Previous wording
As of December 27, 2025, our long-term debt consisted of $650.0 million in aggregate principal amount of 5.0% Senior Notes due June 1, 2031, $350.0 million in aggregate principal amount of 6.5% Senior Notes due December 15, 2035, $80.6 million in aggregate principal amount of 5.5% Green Bonds due October 1, 2028 through October 1, 2033 (“Green Bonds”) and $264.6 million outstanding 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”). Total long-term borrowings as of December 27, 2025 and December 28, 2024 were $1,345.2 million and $1,323.3 million, respectively. See Item 1, Note 10 of this Quarterly Report.
Current wording
As of March 28, 2026, our long-term debt consisted of $650.0 million in aggregate principal amount of 5.0% Senior Notes due June 1, 2031, $350.0 million in aggregate principal amount of 6.5% Senior Notes due December 15, 2035, $80.6 million in aggregate principal amount of 5.5% Green Bonds due October 1, 2028 through October 1, 2033 (“Green Bonds”) and $200.3 million outstanding 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”). Total long-term borrowings as of March 28, 2026 and March 29, 2025 were $1,280.9 million and $1,313.2 million, respectively. See Item 1, Note 10 of this Quarterly Report.
Previous wording
The aggregate amounts of long-term debt maturities subsequent to December 27, 2025 are as follows: fiscal 2026: $-0-; fiscal 2027: $-0-; fiscal 2028: $-0-; fiscal 2029: $276.3 million; fiscal 2030: $12.4 million; and thereafter: $1,056.6 million.
Current wording
The aggregate amounts of long-term debt maturities subsequent to March 28, 2026 are as follows: fiscal 2026: $-0-; fiscal 2027: $-0-; fiscal 2028: $-0-; fiscal 2029: $212.0 million; fiscal 2030: $12.3 million; and thereafter: $1,056.6 million.
Previous wording
On January 22, 2026, we announced a quarterly distribution of $0.325 per Common Unit, or $1.30 on an annualized basis, in respect of the first quarter of fiscal 2026, payable on February 10, 2026 to holders of record on February 3, 2026.
Current wording
On April 23, 2026, we announced a quarterly distribution of $0.325 per Common Unit, or $1.30 on an annualized basis, in respect of the second quarter of fiscal 2026, payable on May 12, 2026 to holders of record on May 5, 2026.
Previous wording
We have a noncontributory, cash balance format, defined benefit pension plan which was frozen to new participants effective January 1, 2000. Effective January 1, 2003, the defined benefit pension plan was amended such that future service credits ceased and eligible employees would receive interest credits only toward their ultimate retirement benefit. We also provide postretirement health care and life insurance benefits for certain retired employees under a plan that was frozen to new participants effective March 31, 1998. At December 27, 2025, we had a liability for the defined benefit pension plan and accrued retiree health and life benefits of $9.9 million and $3.9 million, respectively.
Current wording
We have a noncontributory, cash balance format, defined benefit pension plan which was frozen to new participants effective January 1, 2000. Effective January 1, 2003, the defined benefit pension plan was amended such that future service credits ceased and eligible employees would receive interest credits only toward their ultimate retirement benefit. We also provide postretirement health care and life insurance benefits for certain retired employees under a plan that was frozen to new participants effective March 31, 1998. At March 28, 2026, we had a liability for the defined benefit pension plan and accrued retiree health and life benefits of $8.1 million and $3.8 million, respectively.
Previous wording
We are self-insured for general and product, workers’ compensation and automobile liabilities up to predetermined thresholds above which third party insurance applies. At December 27, 2025, we had accrued insurance liabilities of $56.9 million, and a receivable of $15.7 million related to the amount of the liability expected to be covered by insurance.
Current wording
We are self-insured for general and product, workers’ compensation and automobile liabilities up to predetermined thresholds above which third party insurance applies. At March 28, 2026, we had accrued insurance liabilities of $59.4 million, and a receivable of $15.8 million related to the amount of the liability expected to be covered by insurance.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
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 report — wording carried from elsewhere
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 report — wording carried from elsewhere
Cost of products sold in our natural gas and electricity segment of $7.5 million increased $1.7 million, or 28.3%, compared to the prior year primarily due to higher natural gas and electricity wholesale costs and the net increase of $0.2 million resulting from the change in mark-to-market adjustments on derivative instruments used in both periods discussed above.
Current report — wording carried from elsewhere
Represents net periodic benefit costs for our pension and other postretirement benefit plans (see Item 1, Note 15 of this Quarterly Report).
Current report — wording carried from elsewhere
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 report — wording carried from elsewhere
The following table sets forth our calculations of EBITDA and Adjusted EBITDA:
Current report — wording carried from elsewhere
We also reference gross margins, computed as revenues less cost of products sold as those amounts are reported on the condensed 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.