Star Group LP (NYSE: SGU) is a home heating oil and propane distribution and services company that delivers fuel and heating-related services to residential and commercial customers across the northeastern United States. Revenue comes from per-gallon product sales priced at a margin over wholesale cost, supplemented by installations and services billings. The company operates as a Delaware limited partnership that has elected corporate tax treatment since November 1, 2017, and pays quarterly distributions to unitholders. As of November 30, 2025, there were 33.0 million common partner units outstanding. Customers choose from variable, price-capped, or fixed-price plans; as of September 30, 2025, 67.7% were on variable pricing, 25.9% on a ceiling plan, and 6.4% on fixed pricing. Approximately 93% of full-service residential and commercial customers receive automatic deliveries based on weather conditions, and roughly 25% use a monthly budget payment plan. Business is heavily seasonal, with approximately 30% of home heating oil and propane volume sold in the first fiscal quarter and 50% in the second fiscal quarter (the peak heating season). The fiscal year ends September 30.

Revenue model

Per-gallon margin over wholesale cost on product sales, plus installations and service billings. Price-protected customer offerings are hedged with derivative instruments. Finance charge income offsets some expenses. Quarterly distributions are paid to limited partner unitholders.

Products and services

Home heating oil (including biodiesel blends), propane, motor fuel and other petroleum products, heating and air conditioning equipment installations, and equipment service. Price plan options include variable, price-capped (ceiling), and fixed-price. A 'smart pay' budget payment plan spreads estimated annual costs across equal monthly installments.

Customers and end markets

Residential and commercial customers for space heating, water heating, and related services. Propane customers include residential, commercial, industrial (motor fuel, forklifts, process applications), and agricultural users (crop drying, poultry breeding). Approximately 93% of full-service residential and commercial customers receive automatic weather-based deliveries. Sales volume fluctuates with weather, measured in degree days, and wholesale energy prices.

Value-chain role

Retail distributor and last-mile deliverer of home heating oil and propane. Purchases product from wholesale suppliers, stores physical inventory, hedges commodity price exposure via derivative instruments, and delivers directly to end customers. Also provides equipment installation and maintenance services.

Geographic exposure

Operates exclusively in the northeastern United States. States served as of the filing include Connecticut, Delaware, Maryland, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, and the District of Columbia. A significant portion of customers are located in New York and Connecticut.

Competitors

Large multi-state full-service propane and heating oil distributors, Small local independent heating oil and propane distributors

Source: SEC 10-K, filed 2025-12-09

Industry: Retail-Retail Stores, NEC Peers: Atmos Energy Corp Chesapeake Utilities Corp Ferrellgas Partners LP Spire Inc Northwest Natural Holding Co RGC Resources Inc Southern California Gas Co Suburban Propane Partners LP