Financial Data and Key Metrics Changes - The company reported a net income of $142.8 million or $2.26 per common unit for Q2 2022, compared to $126.3 million or $2.10 per common unit in the prior year, reflecting a significant increase [12] - Adjusted EBITDA for Q2 2022 was $172.5 million, which improved by $0.5 million compared to the prior year [13] - Total gross margin for Q2 2022 was $316.1 million, an increase of $12 million or 4% compared to the prior year [16] Business Line Data and Key Metrics Changes - Retail propane gallons sold in Q2 2022 were 159.2 million gallons, which was 5.8% lower than the prior year due to elevated customer tank levels and warmer weather [13][14] - Combined operating and G&A expenses for Q2 2022 were $143 million, an increase of $12.4 million or 9.5% compared to the prior year, primarily due to higher payroll and inflationary pressures [17] Market Data and Key Metrics Changes - Average wholesale propane prices for Q2 2022 were $1.31 per gallon, which is 45% higher than the prior year and 5% higher than Q1 2022 [15] - The average temperatures for Q2 2022 were 7% warmer than normal, impacting heat-related demand [14] Company Strategy and Development Direction - The company is focusing on building a renewable energy platform and has made strategic investments, including a 25% equity stake in Independence Hydrogen and additional capital for Oberon Fuels [8][9] - A new subsidiary, Suburban Renewals, has been formed to support investments in renewable energy businesses and assets [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by high commodity prices, inflation, and customer conservation efforts, but expressed confidence in the company's ability to manage margins and expenses [6][20] - The company aims to balance strategic investments with debt reduction, targeting a leverage ratio in the mid-3x range [21] Other Important Information - The quarterly distribution declared was $0.325 per common unit, equating to an annualized rate of $1.30 per common unit [19] - The company repaid $41.9 million of borrowings during the quarter, reducing total debt outstanding [18] Q&A Session Summary Question: Could you talk a little bit more about margin management? - Management discussed the challenges of managing prices in a competitive market and emphasized their effective risk management strategies to insulate the business from price volatility [24][25] Question: Can you expand on the impact of customer conservation? - Management noted that customer conservation has been observed when prices exceed $1.50, estimating that a couple of percentage points of the volume decline were due to conservation efforts [27][30] Question: What is the board's view on distribution increases going forward? - Management indicated a balanced approach to capital allocation, focusing on renewable platform investments while also considering distribution increases as opportunities arise [33][35]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 26, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 1-14222 SUBURBAN PROPANE PARTNERS, L.P. (Exact name of registrant as specified in its charter) Delaware 22-3410353 (State or other jurisdiction of (I.R.S. Employ ...

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA increase of more than 8% compared to the prior year first quarter, reaching $86.5 million, which is an improvement of $6.5 million or 8.1% [6][11] - Net income for the first quarter was $55.4 million or $0.88 per common unit, compared to $33.4 million or $0.53 per common unit in the prior year [11] - Total gross margin for the first quarter increased by $15.6 million or 7.9% to $212.6 million, driven by effective selling price management and favorable commodity hedges [14] Business Line Data and Key Metrics Changes - Retail propane gallons sold were 105.3 million gallons, which is 5.7% lower than the prior year, impacted by unseasonably warm temperatures and lower agricultural demand [13] - Average wholesale prices for the first quarter were $1.25 per gallon, nearly 120% higher than the prior year first quarter [14] Market Data and Key Metrics Changes - U.S. propane inventories were reported at around 20% below the five-year average for that time of year, but improved as the quarter progressed due to solid production outpacing soft domestic demand [8] - Propane prices started to rise again, increasing more than 15% in just the past three weeks as colder temperatures returned [23] Company Strategy and Development Direction - The company is focused on greenfield expansions and acquisitions in strategic markets to enhance its service capability [32] - There is an ongoing effort to commercialize low-carbon renewable dimethyl ether, which will significantly reduce carbon intensity when blended with propane [25][27] - The company aims to build out a renewable energy platform and is actively seeking investment opportunities in new technologies [26][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the heating season began with unseasonably warm weather, but colder temperatures are expected to drive increased heating demand [23] - The company remains well-positioned to respond to increasing customer demand while adhering to safety standards amid the ongoing pandemic [24] 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, with a strong distribution coverage of 2.6x [22] - The consolidated leverage ratio for the trailing 12-month period was 4.02x, reflecting a significant improvement from the prior year [19] Q&A Session Summary Question: Details on the acquisition of properties in new markets - The company is actively identifying strategic markets for expansion and has completed most of the spending for greenfield expansions, focusing now on marketing [32][33] Question: Inflationary effects on combined OpEx and SG&A - The company is experiencing inflationary impacts from driver shortages, increased compensation, and higher costs for materials and fuel, but has managed to maintain operational efficiency [35][36] Question: Target leverage and priorities between deleveraging and investments - The company aims to reduce its leverage metric to the mid-3x range and will use excess cash flow for investments in renewable technologies or to reduce debt [41][43] Question: Timing on refinancing 2027 notes - The company is actively considering refinancing options but has not disclosed specific timing [45]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%2E%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)](index=5&type=section&id=ITEM%201%2E%20FINANCIAL%20STATEMENTS%20%28UNAUDITED%29) This section presents the unaudited condensed consolidated financial statements for the quarter ended December 25, 2021, showing a decrease in net income to **$21.3 million** from **$38.0 million** year-over-year despite a **23%** revenue increase [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The financial statements indicate total assets increased to **$2.10 billion**, with revenues rising to **$375.4 million**, while net income decreased to **$21.3 million**, and operating cash flow shifted to a **$13.3 million** outflow Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 25, 2021 | Sep 25, 2021 | | :--- | :--- | :--- | | Total current assets | $223,378 | $180,108 | | Goodwill | $1,107,026 | $1,107,026 | | **Total assets** | **$2,096,926** | **$2,051,730** | | Total current liabilities | $279,128 | $287,146 | | Long-term borrowings | $1,162,842 | $1,118,014 | | **Total liabilities** | **$1,669,578** | **$1,626,309** | | **Total partners' capital** | **$427,348** | **$425,421** | Condensed Consolidated Statement of Operations (in thousands) | | Three Months Ended | | | :--- | :--- | :--- | | | Dec 25, 2021 | Dec 26, 2020 | | **Revenues** | **$375,407** | **$305,191** | | Cost of products sold | $196,338 | $103,379 | | Operating income | $37,256 | $57,686 | | **Net income** | **$21,298** | **$37,977** | | Net income per Common Unit - basic | $0.34 | $0.61 | Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended Dec 25, 2021 | Three Months Ended Dec 26, 2020 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(13,335) | $4,234 | | Net cash used in investing activities | $(10,371) | $(11,214) | | Net cash provided by financing activities | $21,426 | $9,153 | | **Net (decrease) increase in cash** | **$(2,280)** | **$2,173** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, revenue disaggregation showing residential customers as the largest source, a **39%** equity stake in Oberon Fuels, Inc., and **$1.16 billion** in long-term debt, with the Propane segment generating **88%** of revenue - The Partnership primarily engages in retail marketing and distribution of propane, fuel oil, and other fuels, with the Propane segment generating approximately **88%** of total revenue[23](index=23&type=chunk)[39](index=39&type=chunk) Revenue by Customer Type (in thousands) | Customer Type | Three Months Ended Dec 25, 2021 | Three Months Ended Dec 26, 2020 | | :--- | :--- | :--- | | Residential | $198,005 | $174,711 | | Commercial | $110,952 | $79,440 | | Industrial | $34,194 | $25,795 | | Agricultural | $13,803 | $11,138 | | **Total Revenues** | **$375,407** | **$305,191** | - The Partnership holds a **39%** equity stake in Oberon Fuels, Inc., a renewable dimethyl ether (rDME) producer, supporting its 'Go Green' initiative[41](index=41&type=chunk) Long-Term Borrowings (in thousands) | Debt Instrument | Dec 25, 2021 | Sep 25, 2021 | | :--- | :--- | :--- | | 5.875% senior notes due 2027 | $350,000 | $350,000 | | 5.0% senior notes due 2031 | $650,000 | $650,000 | | Revolving Credit Facility | $176,400 | $132,000 | | **Total (before issuance costs)** | **$1,176,400** | **$1,132,000** | - A quarterly distribution of **$0.325** per Common Unit for Q1 FY2022 was announced on January 20, 2022[77](index=77&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=28&type=section&id=ITEM%202%2E%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses performance drivers including COVID-19, volatile product costs, seasonality, and weather, noting a **43.9%** decrease in net income to **$21.3 million** despite a **23%** revenue increase, while Adjusted EBITDA grew **8.1%** to **$86.5 million** [Executive Overview and Key Factors](index=28&type=section&id=Executive%20Overview%20and%20Key%20Factors) Key factors influencing the business include the ongoing COVID-19 pandemic, volatile product costs, high seasonality with most sales in winter, and significant impact from weather conditions, particularly warmer temperatures - The COVID-19 pandemic caused lower commercial revenues, partially offset by increased residential usage, requiring operational adaptation to shifting demand[103](index=103&type=chunk) - Profitability relies heavily on the spread between retail prices and volatile product acquisition costs, with average propane prices **118.5%** higher in Q1 2022 year-over-year[104](index=104&type=chunk)[108](index=108&type=chunk) - The business is highly seasonal, with approximately **two-thirds** of retail propane volume sold during the peak heating season from October to March[109](index=109&type=chunk) - Weather significantly impacts demand, with Q1 2022 average temperatures **16%** warmer than normal and **3%** warmer than the prior year, negatively affecting sales volumes[110](index=110&type=chunk)[116](index=116&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Total revenues increased **23.0%** to **$375.4 million** in Q1 2022 due to higher selling prices, despite a **5.7%** decrease in retail propane volumes, while cost of products sold surged **89.9%** and operating income fell to **$37.3 million** Key Performance Indicators | Metric | Q1 FY2022 | Q1 FY2021 | Change | | :--- | :--- | :--- | :--- | | Net Income | $21.3M | $38.0M | (43.9)% | | Adjusted EBITDA | $86.5M | $80.0M | +8.1% | | Retail Propane Gallons Sold | 105.3M | 111.7M | (5.7)% | Revenues by Segment (in thousands) | Segment | Q1 FY2022 | Q1 FY2021 | % Change | | :--- | :--- | :--- | :--- | | Propane | $331,117 | $268,624 | +23.3% | | Fuel oil and refined fuels | $20,966 | $15,750 | +33.1% | | Natural gas and electricity | $9,223 | $6,876 | +34.1% | | **Total revenues** | **$375,407** | **$305,191** | **+23.0%** | - Cost of products sold increased **89.9%** year-over-year, primarily due to higher wholesale commodity prices and a **$33.5 million** unrealized non-cash loss from derivative mark-to-market adjustments[130](index=130&type=chunk)[132](index=132&type=chunk) - Operating expenses rose **7.9%** to **$105.7 million** and G&A expenses increased **9.2%** to **$19.8 million**, driven by higher payroll, vehicle costs, and general inflation[137](index=137&type=chunk)[139](index=139&type=chunk) - Depreciation and amortization expense decreased **41.9%** to **$16.3 million**, primarily due to the conclusion of amortization for certain intangible assets from prior acquisitions[140](index=140&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash used in operating activities was **$13.3 million**, a shift from prior-year cash provided, while investing activities used **$10.4 million**, and financing activities provided **$21.4 million**, leaving **$274.7 million** in revolving facility borrowing capacity - Net cash used in operating activities totaled **$13.3 million**, a decrease from **$4.2 million** provided in the prior-year period, due to higher variable compensation and increased working capital[144](index=144&type=chunk) - Capital expenditures for the quarter amounted to **$10.7 million**, comprising **$6.3 million** for growth and **$4.4 million** for maintenance[145](index=145&type=chunk) - As of December 25, 2021, long-term debt included **$1.0 billion** in senior notes and **$176.4 million** outstanding on the revolving credit facility[149](index=149&type=chunk) - A quarterly distribution of **$0.325** per Common Unit was announced, payable on February 8, 2022[153](index=153&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=36&type=section&id=ITEM%203%2E%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The Partnership faces market risks from commodity price fluctuations, credit risk, and interest rate changes, managing commodity risk with derivatives, where a **10%** adverse price change would decrease potential future net gains by **$7.8 million** - The company utilizes derivative instruments, including futures, options, and swaps, to manage price risk for propane and fuel oil physical inventory and fixed-price sales contracts[159](index=159&type=chunk) - The Partnership is exposed to interest rate risk on variable-rate borrowings under its Revolving Credit Facility, which are tied to LIBOR plus an applicable margin[162](index=162&type=chunk) - A sensitivity analysis indicates a hypothetical **10%** adverse change in commodity prices would decrease potential future net gains on open derivative positions by **$7.8 million** as of December 25, 2021[165](index=165&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=38&type=section&id=ITEM%204%2E%20CONTROLS%20AND%20PROCEDURES) Management concluded that the Partnership's disclosure controls and procedures were effective as of December 25, 2021, with no material changes to internal control over financial reporting during the quarter - The Partnership's principal executive and financial officers concluded that disclosure controls and procedures were effective as of the period end[168](index=168&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[169](index=169&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II%2E%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=39&type=section&id=ITEM%201%2E%20LEGAL%20PROCEEDINGS) The company reported no new material legal proceedings for the period - No material legal proceedings were reported[171](index=171&type=chunk) [ITEM 1A. RISK FACTORS](index=39&type=section&id=ITEM%201A%2E%20RISK%20FACTORS) No new risk factors are disclosed in this report, with reference made to those discussed in the Annual Report on Form 10-K for the fiscal year ended September 25, 2021 - The report refers to the Risk Factors section in the Partnership's Annual Report on Form 10-K for the fiscal year ended September 25, 2021[172](index=172&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=39&type=section&id=ITEM%202%2E%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During the quarter, **133,836** Common Units were withheld at an average price of **$15.31** per unit from executive officers to satisfy income tax withholding obligations upon restricted unit vesting Common Units Withheld for Tax Purposes | Period | Units Purchased (Withheld) | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 24 - Nov 20, 2021 | 133,836 | $15.31 | | **Total** | **133,836** | **$15.31** | [ITEM 5. OTHER INFORMATION](index=39&type=section&id=ITEM%205%2E%20OTHER%20INFORMATION) On February 2, 2022, the Partnership amended its 2021 Long-Term Incentive Plan to adjust the vesting percentage of unvested phantom units based on performance measures - The Partnership adopted an amendment to the 2021 Long-Term Incentive Plan on February 2, 2022, adjusting performance-based vesting criteria[176](index=176&type=chunk) [ITEM 6. EXHIBITS](index=40&type=section&id=ITEM%206%2E%20EXHIBITS) This section lists exhibits filed with the quarterly report, including the amended 2021 Long-Term Incentive Plan and Sarbanes-Oxley Act certifications by the CEO and CFO - Key exhibits filed include the Amended 2021 Long-Term Incentive Plan (Exhibit 10.1) and Sarbanes-Oxley Act Section 302 and 906 Certifications (Exhibits 31.1, 31.2, 32.1, 32.2)[180](index=180&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Commission File Number: 1-14222 SUBURBAN PROPANE PARTNERS, L.P. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Delaware 22-3410353 240 Route 10 West Whippany, NJ 07981 (973) 887-5300 (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) Sec ...

Financial Data and Key Metrics Changes - Fiscal year 2021 saw adjusted EBITDA increase by $22 million or nearly 9% from $253.7 million to $275.7 million [8][17] - Net income for fiscal 2021 was $101.9 million or $1.62 per common unit, compared to $62.3 million or $1 per common unit in the prior year [16] - Distributable cash flow increased by more than $26 million or 16%, ending fiscal 2021 with a distribution coverage ratio of 2.55x [9] Business Line Data and Key Metrics Changes - Propane volumes sold increased by more than 4%, with retail propane gallons sold reaching 419.8 million gallons, a 4.2% increase from the prior year [7][17] - Propane unit margins increased by about $0.02 per gallon or 1.2% compared to the prior year due to effective margin management [20] Market Data and Key Metrics Changes - Average wholesale propane prices for the year were $0.88 per gallon, which was 98% higher than the prior year [19] - Wholesale prices have continued to rise in early fiscal 2022, with current prices ranging between $1.35 and $1.45 per gallon [19][29] Company Strategy and Development Direction - The company completed an acquisition of a propane business in North Carolina and is investing in renewable energy technologies, particularly renewable DME [10][32] - The strategic focus includes building a renewable energy platform and supporting sustainability goals [11][31] Management's Comments on Operating Environment and Future Outlook - Management noted strong customer demand driven by economic activity and easing COVID-19 restrictions, contributing to increased propane volumes [7] - The outlook for the upcoming winter indicates cooler than average temperatures, which may affect propane demand [30] Other Important Information - The company repaid nearly $88 million of revolver borrowings during the fiscal year, improving its consolidated leverage ratio to 3.96x [26] - The company is committed to hiring military veterans through its Heroes Hired Here Program [6][12] Q&A Session Summary Question: Capital allocation and potential distribution increases - Management indicated that discussions on distribution increases will depend on achieving the 3.5 times leverage target and strategic opportunities in renewable energy [36][37] Question: Strategic initiatives related to Oberon - Management confirmed ongoing investments in Oberon to support renewable DME production and is evaluating additional renewable energy technologies [38][39] Question: Update on the Propane M&A market - Management noted that while the M&A market has seen increased multiples, they will remain disciplined in their acquisition strategy [41][42]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 26, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 1-14222 SUBURBAN PROPANE PARTNERS, L.P. (Exact name of registrant as specified in its charter) Delaware 22-3410353 (State or other jurisdiction of (I.R.S. Employe ...

Suburban Propane Partners, L.P. (NYSE:SPH) Q3 2021 Earnings Conference Call August 5, 2021 9:00 AM ET Company Representatives Mike Stivala - President, Chief Executive Officer Mike Kuglin - Chief Financial Officer, Chief Accounting Officer Steve Boyd - Chief Operating Officer Davin D'Ambrosio - Vice President, Treasurer Conference Call Participants Operator Good day, and welcome to the Suburban Propane Partners L.P. third quarter conference call. All participants will be in listen-only mode. [Operator Instr ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $172 million, which is an increase of more than $41 million or 32% compared to the prior year, marking the strongest second quarter performance since 2015 [4][6] - Net income for the second quarter was $126.3 million, improving by $44.1 million or 53.7% compared to the prior year [7] - Total gross margins increased to $304 million, up $48.4 million or 18.9% year-over-year, primarily due to higher propane volumes sold and improved unit margins [9] Business Line Data and Key Metrics Changes - Retail propane gallons sold increased by 16.5% to 169.1 million gallons, driven by demand across all customer segments, particularly in the residential segment [8] - The company experienced organic customer base growth, contributing to increased propane volumes [5] Market Data and Key Metrics Changes - Average wholesale propane prices for the second quarter were $0.90 per gallon, which is 123% higher than the prior second quarter and 58% higher than the first quarter of fiscal 2021 [9] - The company noted that wholesale propane prices have started to recede in the early part of the third fiscal quarter, currently in the low $0.80 per gallon range [9] Company Strategy and Development Direction - The company is focused on customer base growth and retention initiatives, which have resulted in organic growth through the first half of fiscal 2021 [16] - The management emphasized a disciplined approach to acquisitions and debt reduction efforts to strengthen the balance sheet and enhance financial flexibility for strategic growth [16] Management Comments on Operating Environment and Future Outlook - Management highlighted the positive impact of colder weather on demand and the normalization of demand in commercial industrial segments as COVID-19 restrictions eased [4][5] - Looking ahead, the company expects a shift back to a more traditional mix of business between residential and commercial industrial activities, with growth in commercial and industrial activities beyond pre-pandemic levels [17][18] Other Important Information - The company declared a quarterly distribution of $0.30 per common unit, equating to an annualized rate of $1.20 per common unit, to be paid on May 11th [15] - The company repaid $68.6 million of borrowings under the revolver, bringing total debt outstanding as of March 2021 to $89 million lower than the previous year [13] Q&A Session Summary - The call concluded without specific questions being documented, indicating a focus on the prepared remarks and management's insights rather than a detailed Q&A session [20][21]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Presents the unaudited condensed consolidated financial statements for the quarterly period ended March 27, 2021 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $2.13 billion while total liabilities decreased, resulting in higher partners' capital Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 27, 2021 | September 26, 2020 | | :--- | :--- | :--- | | **Total current assets** | $229,843 | $115,958 | | **Total assets** | $2,128,734 | $2,047,253 | | **Total current liabilities** | $237,509 | $244,516 | | **Long-term borrowings** | $1,172,786 | $1,210,176 | | **Total liabilities** | $1,633,386 | $1,684,872 | | **Total partners' capital** | $495,348 | $362,381 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income significantly increased for the three and six-month periods ending March 27, 2021, driven by higher revenues Statement of Operations - Three Months Ended (in thousands) | Metric | March 27, 2021 | March 28, 2020 | | :--- | :--- | :--- | | **Total Revenues** | $537,238 | $401,055 | | **Operating Income** | $147,157 | $97,625 | | **Net Income** | $127,216 | $77,361 | | **Net Income per Common Unit - basic** | $2.03 | $1.24 | Statement of Operations - Six Months Ended (in thousands) | Metric | March 27, 2021 | March 28, 2020 | | :--- | :--- | :--- | | **Total Revenues** | $842,429 | $734,933 | | **Operating Income** | $204,843 | $157,479 | | **Net Income** | $165,193 | $117,524 | | **Net Income per Common Unit - basic** | $2.64 | $1.89 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased, while investing cash use decreased and financing cash use increased for the six months ended March 27, 2021 Cash Flow Summary - Six Months Ended (in thousands) | Cash Flow Activity | March 27, 2021 | March 28, 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $101,829 | $91,319 | | **Net cash (used in) investing activities** | $(19,305) | $(40,106) | | **Net cash (used in) financing activities** | $(78,935) | $(48,459) | | **Net increase in cash and cash equivalents** | $3,589 | $2,754 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed notes on accounting policies, acquisitions, debt structure, and segment performance - The Partnership is primarily engaged in the retail marketing and distribution of propane, fuel oil, and refined fuels, with **propane accounting for the substantial majority of assets, revenues, and earnings**[30](index=30&type=chunk)[31](index=31&type=chunk) - On November 12, 2020, the Partnership acquired the assets of a propane retailer in North Carolina for **$7.685 million**. It also made strategic investments in Oberon Fuels, a producer of renewable dimethyl ether (rDME), to support its **'Go Green' initiatives**[51](index=51&type=chunk)[52](index=52&type=chunk) Long-Term Borrowings as of March 27, 2021 (in thousands) | Instrument | Principal Amount | | :--- | :--- | | 5.5% senior notes, due 2024 | $525,000 | | 5.75% senior notes, due 2025 | $250,000 | | 5.875% senior notes, due 2027 | $350,000 | | Revolving Credit Facility | $56,200 | | **Subtotal** | **$1,181,200** | Segment Revenues - Six Months Ended (in thousands) | Segment | March 27, 2021 | March 28, 2020 | | :--- | :--- | :--- | | Propane | $749,952 | $633,111 | | Fuel oil and refined fuels | $47,761 | $57,393 | | Natural gas and electricity | $17,626 | $18,919 | | **Total Reportable Segments** | **$814,739** | **$709,423** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses key operating factors, financial results, liquidity, and capital resources for the period [Executive Overview](index=30&type=section&id=Executive%20Overview) Highlights the operational impacts of the COVID-19 pandemic, product cost volatility, and business seasonality - The COVID-19 pandemic led to **lower revenues from certain commercial and industrial customers** due to operational curtailments, though **residential demand increased** due to stay-at-home initiatives[121](index=121&type=chunk) - Average posted propane prices (Mont Belvieu) were **142.8% higher** in the second quarter of fiscal 2021 compared to the prior year's second quarter, driven by lower U.S. inventory levels[125](index=125&type=chunk) - The business is highly seasonal, with approximately **two-thirds of retail propane volume sold** during the peak heating season from October through March[126](index=126&type=chunk) [Results of Operations and Financial Condition](index=32&type=section&id=Results%20of%20Operations%20and%20Financial%20Condition) Financial performance improved significantly in Q2 and H1 fiscal 2021, driven by cooler weather and higher propane volumes Q2 FY2021 vs Q2 FY2020 Performance | Metric | Q2 FY2021 | Q2 FY2020 | Change | | :--- | :--- | :--- | :--- | | Net Income | $127.2M | $77.4M | +64.3% | | Adjusted EBITDA | $172.0M | $130.6M | +31.7% | | Retail Propane Gallons Sold | 169.1M | 145.1M | +16.5% | - Average temperatures in Q2 FY2021 were **9% cooler** than the prior year's second quarter, contributing to increased heat-related demand[133](index=133&type=chunk) Adjusted EBITDA Reconciliation - Three Months Ended (in thousands) | Line Item | March 27, 2021 | March 28, 2020 | | :--- | :--- | :--- | | Net income | $127,216 | $77,361 | | EBITDA | $172,921 | $125,825 | | **Adjusted EBITDA** | **$172,038** | **$130,648** | Adjusted EBITDA Reconciliation - Six Months Ended (in thousands) | Line Item | March 27, 2021 | March 28, 2020 | | :--- | :--- | :--- | | Net income | $165,193 | $117,524 | | EBITDA | $257,546 | $213,975 | | **Adjusted EBITDA** | **$252,059** | **$216,022** | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The Partnership maintains strong liquidity with increased operating cash flow and sufficient borrowing capacity - Net cash provided by operating activities for the first half of fiscal 2021 **increased by $10.5 million** compared to the prior year, primarily due to higher earnings[176](index=176&type=chunk) - During the first half of fiscal 2021, the Partnership made net repayments of **$38.4 million** under the Revolving Credit Facility and paid **$37.4 million** in distributions to Common Unitholders[179](index=179&type=chunk) - As of March 27, 2021, available borrowing capacity under the Revolving Credit Facility was **$390.2 million**[182](index=182&type=chunk) - A quarterly distribution of **$0.30 per Common Unit** was announced on April 22, 2021, payable in May 2021[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Outlines the Partnership's exposure to commodity price and interest rate risks and its hedging strategies - The Partnership's primary market risk is **commodity price volatility** for propane and fuel oil. This risk is managed through supply contracts and derivative instruments (futures, options, swaps) to hedge physical inventory and fixed-price sales contracts[190](index=190&type=chunk)[192](index=192&type=chunk)[194](index=194&type=chunk) - **Interest rate risk** is associated with variable-rate borrowings under the Revolving Credit Facility, which are based on LIBOR plus an applicable margin[197](index=197&type=chunk) - A sensitivity analysis as of March 27, 2021, estimated that a hypothetical 10% adverse change in market prices for open derivative instruments would result in a **decrease in potential future net gains of $2.7 million**[200](index=200&type=chunk) [Controls and Procedures](index=43&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management confirms the effectiveness of disclosure controls and procedures as of March 27, 2021 - The Partnership's principal executive officer and principal financial officer concluded that **disclosure controls and procedures were effective** as of March 27, 2021[203](index=203&type=chunk) - There were **no material changes** in the Partnership's internal control over financial reporting during the quarter ended March 27, 2021[204](index=204&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Reports no new or material legal proceedings for the period - None[207](index=207&type=chunk) [Risk Factors](index=44&type=section&id=ITEM%201A.%20RISK%20FACTORS) Refers to the detailed risk factors disclosed in the Partnership's most recent Annual Report on Form 10-K - The report refers to the risk factors disclosed in the Partnership's **Annual Report on Form 10-K** for the fiscal year ended September 26, 2020[208](index=208&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Reports the withholding of Common Units from executives to satisfy tax obligations on vested restricted units - During the three months ended March 27, 2021, a total of **2,052 Common Units were withheld** from executive officers for income tax purposes related to the vesting of restricted units[209](index=209&type=chunk) [Exhibits](index=45&type=section&id=ITEM%206.%20EXHIBITS) Lists the exhibits filed with the report, including required CEO and CFO certifications - Exhibits filed with the report include **CEO and CFO certifications** under Sections 302 and 906 of the Sarbanes-Oxley Act, along with Inline XBRL documents[216](index=216&type=chunk)