[Suburban Propane Partners, L.P. Announces Second Quarter Results](index=1&type=section&id=Suburban%20Propane%20Partners%2C%20L.P.%20Announces%20Second%20Quarter%20Results) Suburban Propane Partners reports strong Q2 FY2025 results, driven by increased sales volume and effective cost management [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Suburban Propane achieved significant Q2 FY2025 profitability growth, with net income rising to $137.1 million and Adjusted EBITDA increasing by 19.1% Q2 Fiscal 2025 vs. Q2 Fiscal 2024 Key Financial Metrics | Metric | Q2 FY2025 ($ million) | Q2 FY2024 ($ million) | Change | | :--- | :--- | :--- | :--- | | Net Income | $137.1 | $111.5 | +23.0% | | Net Income per Common Unit ($) | $2.11 | $1.73 | +22.0% | | Adjusted EBITDA | $175.0 | $147.0 | +19.1% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong performance to colder weather, increased sales volume, and effective cost control, while advancing renewable energy and capital management initiatives [Operational Performance and Weather Impact](index=1&type=section&id=Operational%20Performance%20and%20Weather%20Impact) Operational performance significantly benefited from colder weather, leading to a 15.5% increase in retail propane gallons sold - Retail propane gallons sold increased **15.5% to 162.0 million gallons** compared to the prior year's second quarter[4](index=4&type=chunk) - Average temperatures across service territories were **9% cooler** than the prior year's second quarter. During the critical months of January and February, temperatures were **13% colder** than the same period last year[4](index=4&type=chunk) [Renewable Energy Initiatives](index=1&type=section&id=Renewable%20Energy%20Initiatives) The company continues to advance renewable natural gas projects despite temporary weather impacts on current injection volumes - RNG injection at the Stanfield facility was negatively affected by extremely cold ambient air temperatures and planned downtime for enhancements[4](index=4&type=chunk) - The company continues to advance capital projects to construct an anaerobic digester in New York and upgrade gas equipment at its Ohio facility[4](index=4&type=chunk) [Capital Management and Strategy](index=1&type=section&id=Capital%20Management%20and%20Strategy) The company launched an ATM equity program to raise capital for strategic growth and debt repayment, improving its Consolidated Leverage Ratio - An ATM equity sales program was launched to sell up to **$100.0 million** of newly issued Common Units to support strategic growth[4](index=4&type=chunk) - During the quarter, **$8.8 million** in net proceeds were raised under the ATM program and used to repay debt[4](index=4&type=chunk) - The Consolidated Leverage Ratio improved to **4.54x** for the twelve months ended March 29, 2025[7](index=7&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) Gross margin increased by 12.1% due to higher volumes, while operating and administrative expenses rose 9.7% due to increased demand Q2 FY2025 vs. Q2 FY2024 Financial Details | Metric | Q2 FY2025 ($ million) | Q2 FY2024 ($ million) | Change | | :--- | :--- | :--- | :--- | | Total Gross Margin | $345.3 | $308.0 | +12.1% | | Combined Operating & G&A Expenses | $169.3 | $154.4 | +9.7% | | Average Propane Prices (Mont Belvieu) (%) | - | - | +7.2% | - Excluding non-cash mark-to-market adjustments, total gross margin increased by **$42.5 million**, or **14.1%**, primarily due to higher propane volumes sold[5](index=5&type=chunk) [Shareholder Returns](index=3&type=section&id=Shareholder%20Returns) The Partnership declared a quarterly distribution of $0.325 per Common Unit, maintaining an annualized rate of $1.30 - A quarterly distribution of **$0.325 per Common Unit** was declared, equating to an annualized rate of **$1.30 per Common Unit**[8](index=8&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations show significant Q2 FY2025 growth, with total revenues reaching $587.7 million and net income at $137.1 million Q2 FY2025 vs. Q2 FY2024 Statement of Operations (in thousands) | Metric | Three Months Ended Mar 29, 2025 (in thousands) | Three Months Ended Mar 30, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Revenues** | **$587,663** | **$498,087** | | Propane Revenues | $525,256 | $437,564 | | Operating Income | $158,413 | $136,860 | | **Net Income** | **$137,121** | **$111,500** | | Net Income per Common Unit - basic | $2.11 | $1.73 | Q2 FY2025 vs. Q2 FY2024 Supplemental Information | Metric | Three Months Ended Mar 29, 2025 (thousands) | Three Months Ended Mar 30, 2024 (thousands) | | :--- | :--- | :--- | | Propane Gallons Sold | 162,027 | 140,243 | | Maintenance Capex | $8,041 | $5,577 | | Growth Capex | $11,268 | $8,969 | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) The company provides reconciliations for non-GAAP measures, with Q2 FY2025 Net Income of $137.1 million reconciling to Adjusted EBITDA of $175.0 million Reconciliation of Net Income to Adjusted EBITDA (Q2, in thousands) | Metric | March 29, 2025 (in thousands) | March 30, 2024 (in thousands) | | :--- | :--- | :--- | | **Net Income** | **$137,121** | **$111,500** | | Add: Interest, Taxes, D&A | $38,163 | $36,676 | | **EBITDA** | **$175,284** | **$148,176** | | Adjustments | ($240) | ($1,154) | | **Adjusted EBITDA** | **$175,044** | **$147,022** | - Management uses EBITDA and Adjusted EBITDA as supplemental measures of operating performance, believing they provide useful additional information to investors and analysts[17](index=17&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) Forward-looking statements are subject to risks including weather impact, commodity price volatility, competition, and challenges in renewable fuel projects - Key risks include the impact of weather on demand, volatility in fuel costs, competition, and the ability to manage expenses[12](index=12&type=chunk)[13](index=13&type=chunk) - The company also identifies risks specific to its renewable fuel projects, including customer adoption, operational challenges, and dependence on government funding and environmental attribute markets[13](index=13&type=chunk)

Core Viewpoint - Suburban Propane Partners, L.P. is set to hold its Fiscal 2025 Second Quarter Results Conference Call on May 8, 2025, at 9:00 AM Eastern Time, inviting analysts and investors to discuss the results and business outlook [1]. Company Overview - Suburban Propane Partners, L.P. is a publicly traded master limited partnership listed on the NYSE, headquartered in Whippany, New Jersey, and has been in the customer service business since 1928 [3]. - The company distributes propane, renewable propane, renewable natural gas, fuel oil, and related products and services, serving approximately 1 million customers across 42 states through around 700 locations [3]. Core Pillars - Suburban Propane is supported by three core pillars: 1. **Suburban Commitment** - Emphasizing a legacy of nearly 100 years and a commitment to high standards in customer service [4]. 2. **SuburbanCares** - Highlighting the company's dedication to community engagement across its national footprint [4]. 3. **Go Green with Suburban Propane** - Promoting the clean-burning nature of propane and renewable propane as a bridge to a green energy future, while investing in innovative renewable energy alternatives [4].

Core Insights - Suburban Propane Partners, L.P. has partnered with NASCAR to introduce a propane-powered track dryer at the DAYTONA 500, enhancing track drying efficiency and reducing pollutants compared to diesel or gasoline [1][2] - The partnership aims to improve the fan experience by providing reliable propane services at NASCAR events, including fueling concession stands and supporting campground energy needs [3][4] Company Overview - Suburban Propane is a publicly traded master limited partnership, established in 1928, and operates as a nationwide distributor of propane, renewable propane, renewable natural gas, and related products and services [5] - The company serves approximately 1 million customers across 700 locations in 42 states, emphasizing its commitment to customer service and community support [5][6] Environmental Commitment - Suburban Propane promotes the clean-burning nature of propane and renewable propane as part of its "Go Green" initiative, aiming to contribute to a sustainable energy future [6]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $75.3 million, essentially flat compared to the prior year [4][11] - Net income for Q1 2025 was $38 million or $0.59 per common unit, down from $40.4 million or $0.63 per common unit in the prior year [10] - Average wholesale propane prices increased by 15% to $0.77 per gallon compared to the prior year [12] - Total gross margin for Q1 decreased by $1 million or 0.5% to $222.5 million compared to the prior year [12] Business Line Data and Key Metrics Changes - Retail propane gallons sold were 105.7 million gallons, down 0.8% from the prior year, primarily due to lower heat-related demand [11] - The company experienced increased demand in the Southeast region following hurricanes, which offset some of the declines in other areas [4][11] - Renewable natural gas (RNG) injection was lower than the prior year due to a planned shutdown for maintenance [6] Market Data and Key Metrics Changes - Average temperatures during Q1 2025 were 7% warmer than normal, impacting propane demand [11] - November 2024 was one of the top five warmest Novembers on record, with temperatures 15% warmer than normal [11] Company Strategy and Development Direction - The company is focused on growing its core propane business and expanding its renewable energy platform through strategic investments [22][23] - Capital spending for fiscal 2025 is expected to range between $40 million and $45 million for propane operations and $35 million to $45 million for RNG projects [16] - The company has invested approximately $320 million in renewable fuels, hydrogen, and RNG over the past five years [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in handling increased demand due to colder weather and highlighted the operational readiness of the company [5][30] - The company expects to benefit from production tax credits starting January 1, 2025, which will contribute to cash flow [46] - Management acknowledged elevated leverage but indicated that it is within debt covenant requirements and expected to improve as growth projects come online [18][44] Other Important Information - The quarterly distribution was declared at $0.325 per common unit, equating to an annualized rate of $1.30 per common unit [21] - The company recognized $3 million of income related to contingent consideration from Equilibrium Capital Group [13] Q&A Session Summary Question: How is the system handling the colder weather and the pricing aspect? - Management stated that the platform is built for cold weather and has been effectively managing increased demand and pricing volatility [36][40] Question: Can you expand on the leverage and timing for production tax credits? - Management confirmed ample liquidity and explained that leverage metrics are influenced by past earnings and ongoing investments in growth projects, which are expected to improve as new facilities come online [44][46]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Presents unaudited condensed consolidated financial statements for Q1 FY2025, noting key acquisitions and impairment charges Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 28, 2024 | Sep 28, 2024 | | :--- | :--- | :--- | | Total current assets | $230,004 | $157,544 | | Total assets | $2,384,626 | $2,272,761 | | Total current liabilities | $329,405 | $306,122 | | Long-term borrowings | $1,302,824 | $1,210,326 | | Total liabilities | $1,839,488 | $1,725,701 | | Total partners' capital | $545,138 | $547,060 | Condensed Consolidated Statements of Operations (in thousands, except per unit) | Account | Q1 FY2025 (ended Dec 28, 2024) | Q1 FY2024 (ended Dec 30, 2023) | | :--- | :--- | :--- | | Total Revenues | $373,329 | $365,834 | | Operating Income | $59,062 | $48,748 | | Net Income | $19,420 | $24,454 | | Net Income per Common Unit - basic | $0.30 | $0.38 | - The Partnership recorded other-than-temporary impairment charges totaling **$19.8 million** in Q1 FY2025 for its investments in Oberon Fuels, Inc and Independence Hydrogen, Inc[60](index=60&type=chunk)[64](index=64&type=chunk) - On November 6, 2024, the Partnership acquired the assets of a propane retailer in New Mexico for **$53.0 million**[66](index=66&type=chunk) - A subsidiary did not comply with the debt service coverage ratio for its Green Bonds, but the Partnership obtained a waiver to cure the resulting events of default[95](index=95&type=chunk)[103](index=103&type=chunk)[136](index=136&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q1 FY2025 results, highlighting lower net income due to impairments but stable Adjusted EBITDA Q1 FY2025 vs. Q1 FY2024 Performance Summary (in millions) | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net Income | $19.4 | $24.5 | | Adjusted EBITDA | $75.3 | $75.2 | - Retail propane gallons sold decreased by **0.8%** to 105.7 million gallons, primarily due to unseasonably warm weather[153](index=153&type=chunk)[162](index=162&type=chunk) - Average propane prices increased **14.9%** compared to the prior year's first quarter, contributing to a 5.4% increase in propane revenue[154](index=154&type=chunk)[163](index=163&type=chunk) - The company recognized **$19.8 million** in other-than-temporary impairment charges for its renewable energy investments, which were excluded from Adjusted EBITDA[158](index=158&type=chunk)[182](index=182&type=chunk) - The Consolidated Leverage Ratio increased to **4.99x** at the end of Q1 FY2025, up from 4.76x at the end of FY2024[157](index=157&type=chunk)[196](index=196&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Outlines the Partnership's exposure to commodity price, credit, and interest rate risks and its hedging strategies - The company uses derivative instruments to manage price risk associated with physical inventory and future commodity purchases[206](index=206&type=chunk) - A portion of the company's debt is subject to variable interest rates based on SOFR, creating interest rate risk[209](index=209&type=chunk) - A sensitivity analysis indicated that a hypothetical 10% adverse change in market prices would result in a potential future net loss of **$0.2 million**[212](index=212&type=chunk) [Controls and Procedures](index=37&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management confirms the effectiveness of disclosure controls and procedures with no material changes to internal controls - The Partnership's principal executive and financial officers concluded that disclosure controls and procedures were **effective** as of December 28, 2024[214](index=214&type=chunk) - There were **no material changes** in the Partnership's internal control over financial reporting during the quarter[215](index=215&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reports no material legal proceedings for the period - None reported[218](index=218&type=chunk) [Risk Factors](index=38&type=section&id=ITEM%201A.%20RISK%20FACTORS) Updates risk factors related to debt covenants, subsidiary non-compliance, and significant renewable fuel investment impairments - A subsidiary **failed to comply with its debt service coverage ratio covenant** for its Green Bonds, requiring waivers to cure the default[220](index=220&type=chunk) - Debt covenants, including a total consolidated leverage ratio limit of **5.75x**, may limit financial flexibility and distributions[219](index=219&type=chunk)[222](index=222&type=chunk) - Investments in renewable fuels are subject to significant risks, highlighted by Q1 FY2025 impairment charges of **$19.8 million**[224](index=224&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Reports on common units withheld to cover tax obligations for executives, not as part of a public buyback program Common Units Withheld for Tax Purposes | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 27 - Nov 23, 2024 | 156,540 | $17.77 | | **Total** | **156,540** | **$17.77** | - The withheld units were for income tax purposes related to vested restricted units for executive officers and not part of a public buyback program[229](index=229&type=chunk) [Defaults Upon Senior Securities](index=40&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reports no defaults upon senior securities - None reported[230](index=230&type=chunk) [Mine Safety Disclosures](index=40&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - Not applicable[231](index=231&type=chunk) [Other Information](index=40&type=section&id=ITEM%205.%20OTHER%20INFORMATION) Confirms no executive officers adopted or terminated Rule 10b5-1 trading arrangements during the fiscal quarter - No supervisors or executive officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[232](index=232&type=chunk) [Exhibits](index=41&type=section&id=ITEM%206.%20EXHIBITS) Lists the exhibits filed with the report, including Sarbanes-Oxley certifications and Inline XBRL data files - Exhibits filed include certifications from the CEO and CFO pursuant to Sarbanes-Oxley and XBRL data files[236](index=236&type=chunk)

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $75.3 million, essentially flat compared to the prior year [6][10] - Net income for Q1 2025 was $38 million or $0.59 per common unit, down from $40.4 million or $0.63 per common unit in the prior year [10][12] - Total gross margin for Q1 2025 was $222.5 million, a decrease of $1 million or 0.5% compared to the prior year [11][12] Business Line Data and Key Metrics Changes - Retail propane gallons sold were 105.7 million, down 0.8% from the prior year, primarily due to lower heat-related demand [10][11] - Renewable natural gas (RNG) injection was lower than the prior year due to a planned shutdown for maintenance and upgrades [8][9] Market Data and Key Metrics Changes - Average temperatures during Q1 2025 were 7% warmer than normal, impacting propane demand [11] - Average wholesale propane prices increased by 15% to $0.77 per gallon compared to the prior year [11] Company Strategy and Development Direction - The company focuses on growing its core propane business and expanding its renewable energy platform through strategic investments [18][22] - Over the past five years, the company has invested approximately $320 million in renewable fuels, hydrogen, and RNG [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in handling increased demand due to colder weather in early 2025, stating that the company is well-prepared [7][23] - The company anticipates that its leverage metric will improve as growth projects are completed and earnings increase [16][33] Other Important Information - The quarterly distribution was declared at $0.325 per common unit, with a coverage ratio of 1.87 times for the trailing twelve months [17] - The company recognized impairment charges of $19.8 million related to investments in Oberon Fuels and Independence Hydrogen [19][20] Q&A Session Summary Question: How is the system handling the colder weather and pricing aspects? - Management stated that the platform is built for cold weather and is effectively managing increased demand and pricing volatility [26][29] Question: Can you expand on the leverage and timing for production tax credits? - Management indicated that liquidity is not an issue and that leverage will improve as new RNG assets come online and production tax credits are monetized [32][33][36]

Exhibit 99.1 News Release Contact: Michael A. Kuglin Chief Financial Officer P.O. Box 206, Whippany, NJ 07981-0206 Phone: 973-503-9252 FOR IMMEDIATE RELEASE Suburban Propane Partners, L.P. Announces First Quarter Results Retail propane gallons sold in the first quarter of fiscal 2025 of 105.7 million gallons decreased 0.8% compared to the prior year, primarily due to lower heat-related demand from widespread unseasonably warm temperatures and lower agricultural demand for crop drying, offset to an extent by ...

Company Announcement - Suburban Propane Partners, L P has scheduled its Fiscal 2025 First Quarter Results Conference Call for February 6, 2025, at 9:00 AM Eastern Time [1] - The conference call will discuss Fiscal 2025 First Quarter results and business outlook, accessible via the company's website or by phone [1] - A replay of the call will be available from February 6, 2025, at 12:00 PM Eastern Time until February 13, 2025, at 11:55 PM Eastern Time, accessible via phone or the company's website [1] Company Overview - Suburban Propane Partners, L P is a publicly traded master limited partnership listed on the New York Stock Exchange under the ticker symbol SPH [3] - The company, headquartered in Whippany, New Jersey, has been in the customer service business since 1928 and operates as a nationwide distributor of propane, renewable energy, and related products and services [3] - It also markets natural gas and electricity and invests in low-carbon alternatives, serving approximately 1 million residential, commercial, governmental, industrial, and agricultural customers across 42 states through 700 locations [3] Core Pillars - Suburban Commitment: Highlights the company's 95-year legacy and commitment to dependability, flexibility, and reliability in customer service [3] - SuburbanCares: Reflects the company's dedication to giving back to local communities across its national footprint [3] - Go Green with Suburban Propane: Promotes the clean-burning and versatile nature of propane and renewable propane as a solution for a green energy future, alongside investments in renewable energy development [3]

WHIPPANY, N.J., Jan. 14, 2025 /PRNewswire/ -- Suburban Propane Partners, L.P. (NYSE: SPH), a nationwide distributor of propane, renewable propane, renewable natural gas, fuel oil and related products and services, as well as a marketer of natural gas and electricity and investor in low carbon fuel alternatives, today announced that it has entered into a multi-year partnership with NASCAR, America's No.1 motorsport, and sports entertainment and facility operator Speedway Motorsports, making Suburban Propane ...

Business Operations - Suburban Propane Partners served approximately 1.0 million customers and sold about 378.3 million gallons of propane and 16.9 million gallons of fuel oil and refined fuels during the year ended September 28, 2024[11]. - The company operates a nationwide retail distribution network with approximately 700 locations across 42 states, primarily concentrated in the east and west coast regions of the United States[16]. - Approximately 60% of residential customers receive propane through an automatic delivery system, utilizing proprietary technology for scheduling[16]. - The company operates a large propane storage facility in Elk Grove, California, which helps ensure supply during periods of high demand[40]. - The retail propane and fuel oil distribution businesses are seasonal, with approximately two-thirds of retail propane volume sold during the peak heating season from October through March[47]. - The company serves approximately 28,000 natural gas and electricity customers in New York and Pennsylvania, facing challenges from state regulations affecting customer eligibility in the deregulated market[45]. - The company has arrangements with approximately 20 suppliers at about 45 supply points for fuel oil, indicating a diversified supply chain[44]. - The propane supply is secured from approximately 40 wholesalers at 135 supply points, with no single supplier accounting for 10% or more of total purchases in fiscal 2024[40]. Financial Performance - In fiscal 2024, approximately 96% of propane gallons sold were to retail customers, with 42% to residential, 39% to commercial, 9% to industrial, 6% to government, and 4% to agricultural customers[39]. - Sales of fuel oil and refined fuels amounted to 16.9 million gallons in fiscal 2024, with 63% sold to residential customers and 7% to commercial customers[42]. - The company expects to secure adequate propane supplies during fiscal 2025 despite potential market volatility[40]. - The company expects to secure adequate supplies of fuel oil during fiscal 2025 despite potential supply constraints[44]. - The company expects lower operating profits and potential net losses during the third and fourth fiscal quarters, from April through September[47]. Strategic Initiatives - Suburban Propane's acquisition strategy targets businesses with steady cash flow to expand market presence and diversify operations[14]. - The company aims to improve customer retention and acquisition through enhanced customer service and training[33]. - The company has made investments in training for exceptional customer service and advanced sales techniques[33]. - The company has made investments in training employees to enhance customer service and improve customer retention and acquisition[36]. Environmental and Regulatory Compliance - Environmental liabilities accrued as of September 28, 2024, amount to $1.3 million for remediation and monitoring of properties[49]. - The company is subject to various federal, state, and local environmental regulations, which may require significant compliance costs in the future[49]. - The climate change regulatory landscape is complex and evolving, potentially increasing capital and operating costs for the company[51]. - The company anticipates generating RINs from RFS-compliant biofuel production, which can be sold in the open market[51]. - The Renewable Fuel Standard (RFS) mandates the use of renewable fuel in transportation, aiming to increase energy security and reduce GHG emissions, with compliance enforced through a credit system based on renewable identification numbers (RINs)[51]. - The Inflation Reduction Act includes incentives such as grants and tax credits for renewable energy production, with guidance from the EPA, DOE, and IRS still forthcoming[51]. - The California Low Carbon Fuel Standard (CA LCFS), Oregon Clean Fuels Program (OR CFP), and Washington Clean Fuel Standard (WA CFS) aim to reduce GHG emissions from transportation fuels, generating LCFS Credits for compliant fuels[51]. - The company generates LCFS Credits by selling compliant fuels in state-level markets, contributing to its revenue stream[51]. Governance and Cybersecurity - The company emphasizes sound corporate governance, with seven of eight Supervisors being independent as of September 28, 2024[53]. - The company has established performance-based incentive policies, including clawback provisions for financial restatements and insider trading prohibitions[53]. - The company has implemented a comprehensive cybersecurity program based on the NIST Cybersecurity Framework, regularly updated and tested by independent third parties[54]. - Independent third parties periodically review and test the cybersecurity program to ensure alignment with industry best practices[54]. - The Board conducts annual self-assessments to evaluate effectiveness and identify improvement opportunities[53]. - The CEO is required to hold Common Units equivalent to 5x base salary, promoting alignment with shareholder interests[53]. - Supervisors must hold Common Units valued at 4x their annual retainer within two years of joining the Board, reinforcing commitment to the Partnership[53]. - Independent Supervisors chair all Committees, enhancing governance and oversight[53]. Market Position - Suburban Propane is recognized as the third-largest retail marketer of propane in the U.S. based on retail gallons sold in 2023[11]. - The ten largest retailers, including the company, account for approximately 32% of total retail sales of propane in the United States[41]. - The retail propane industry is highly fragmented, with the ten largest retailers, including the company, accounting for approximately 32% of total retail sales in the U.S.[41].