Suburban Propane Partners LP (NYSE: SPH) is a retail energy distribution company that delivers propane, fuel oil, refined fuels, and natural gas and electricity to residential and commercial customers across the United States. Revenue is generated primarily through transactional sales of propane and other fuels at a margin between commodity acquisition cost and retail price, making gross profit sensitive to weather, commodity prices, and volume. The partnership commenced operations in March 1996 and is structured as a Delaware limited partnership, conducting its business principally through its operating subsidiary, Suburban Propane, L.P. In FY2025 (fiscal year ended September 2025), total revenues were $1.43 billion and Adjusted EBITDA was $278.0 million. SPH also holds a 38% equity interest in Oberon Fuels, a producer of renewable dimethyl ether, and operates or is developing renewable natural gas facilities, including anaerobic digesters at Adirondack Farms in New York and at SuburbanRNG-Columbus. The partnership pays a quarterly distribution, declared at $0.325 per Common Unit for Q4 FY2025, equating to an annualized rate of $1.30 per Common Unit. The Consolidated Leverage Ratio as of fiscal 2025 was 4.29x.

Revenue model

Transactional commodity sales: revenue is earned on each gallon or unit of propane, fuel oil, refined fuels, natural gas, or electricity delivered to customers, with profitability determined by the spread between acquisition and transport costs and retail prices. There is no disclosed subscription or fee-based revenue stream; gross margins fluctuate with commodity prices and seasonal heating demand. Agway Energy Services (AES), a wholly owned subsidiary, supplies natural gas and electricity to approximately 25,000 customers in deregulated markets in New York and Pennsylvania.

Products and services

Retail propane distribution; fuel oil and other refined fuels; natural gas supply via Agway Energy Services LLC (AES); retail electricity supply via AES; renewable natural gas (RNG) production in development (Adirondack Farms, New York and SuburbanRNG-Columbus, expected production calendar year 2026); 38% equity interest in Oberon Fuels, a developer of renewable dimethyl ether (rDME) transportation fuel.

Customers and end markets

Residential customers for home heating and cooking; commercial and industrial customers; heavy-duty transportation end market for renewable fuels. AES serves approximately 25,000 natural gas and electricity customers in New York and Pennsylvania (as of the 10-K filed 2025-11-26). No single customer concentration is disclosed in the excerpts.

Value-chain role

Downstream distributor and retailer: SPH acquires propane and other commodity fuels from suppliers, transports them, and delivers directly to end customers. It does not own the gas pipelines used to transport RNG. For natural gas and electricity, AES arranges commodity supply and the local utility distributes on its own infrastructure.

Geographic exposure

United States. Natural gas and electricity marketing through AES is specifically in New York and Pennsylvania. RNG development facilities are located in New York and Ohio. Broader propane distribution footprint is national but specific state or regional breakdown is not disclosed in the excerpts.

Source: SEC 10-K, filed 2025-11-26

Industry: Retail-Miscellaneous Retail Peers: Atmos Energy Corp Chesapeake Utilities Corp Ferrellgas Partners LP Spire Inc Northwest Natural Holding Co New Jersey Resources Corp RGC Resources Inc SOUTH JERSEY INDUSTRIES INC Star Group LP