Suburban Propane Partners LP (SPH) 2024 Q1 法說會逐字稿

Good morning and welcome to Suburban Propane Partners' first-quarter earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Davin D'Ambrosio, Vice President and Treasurer. Please go ahead.

早上好，歡迎參加 Suburban Propane Partners 第一季財報電話會議。（操作員說明）請注意此事件正在被記錄。現在我想將會議交給副總裁兼財務主管達文‧丹布羅西奧 (Davin D'Ambrosio)。請繼續。

Thanks, Jason. Good morning, everyone. Thank you for joining us this morning for our fiscal 2024 first quarter earnings conference call. Joining me this morning are Mike Stivala, our President and Chief Executive Officer; Mike Kuglin, our Chief Financial Officer; and Steve Boyd, our Chief Operating Officer. This morning, we will review our first quarter financial results, along with our current outlook for the business. Once we conclude our prepared remarks, we will open the session to questions.

謝謝，傑森。大家，早安。感謝您今天早上參加我們的 2024 財年第一季財報電話會議。今天早上與我一起出席的是我們的總裁兼執行長 Mike Stivala；麥克‧庫格林 (Mike Kuglin)，我們的財務長；和我們的營運長史蒂夫·博伊德。今天早上，我們將回顧第一季的財務業績，以及我們目前的業務前景。一旦我們完成準備好的發言，我們將開始提問。

Our conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended relating to the partnership's future business expectations and predictions and financial condition and results of operations. These forward-looking statements involve certain risks and uncertainties. We have listed some of the important factors that could cause actual results to differ materially from those discussed in such forward-looking statements, which are referred to as cautionary statements in our earnings press release, which can be viewed on our website at suburbanpropane.com.

我們的電話會議包含經修訂的 1934 年《證券交易法》第 21E 條含義內的前瞻性陳述，涉及合夥企業的未來業務預期和預測以及財務狀況和營運結果。這些前瞻性陳述涉及一定的風險和不確定性。我們列出了一些可能導致實際結果與此類前瞻性聲明中討論的結果存在重大差異的重要因素，這些因素在我們的收益新聞稿中被稱為警告聲明，可以在我們的網站suburbanpropane.com 上查看。

All subsequent written and oral forward-looking statements attributable to the partnership or persons acting on its behalf are expressly qualified in their entirety by such cautionary statements. Our annual report on Form 10-K for the fiscal year ended September 30, 2023, and Form 10-Q for the period ended December 30, 2023, which will be filed by the end of business today, contain additional disclosures regarding forward-looking statements and risk factors. Copies may be obtained by contacting the Partnership or the SEC.

所有隨後由合夥企業或代表其行事的人員作出的書面和口頭前瞻性陳述均明確符合此類警告性陳述。我們將於今天營業結束前提交的截至2023 年9 月30 日的財政年度的10-K 表格年度報告和截至2023 年12 月30 日的期間的10-Q 表格年度報告包含有關前瞻性的額外披露。陳述和風險因素。可以透過聯絡合夥企業或 SEC 取得副本。

Certain non-GAAP measures will be discussed on this call. We have provided a description of those measures as well as a discussion of why we believe this information to be useful in our Form 8-K, which was furnished to the SEC this morning. Form 8- K will be available through a link in the Investor Relations section of our website.

本次電話會議將討論某些非公認會計準則措施。我們在今天早上向 SEC 提交的 8-K 表格中提供了這些措施的描述，並討論了為什麼我們認為這些資訊有用。表格 8-K 可透過我們網站投資者關係部分的連結取得。

At this point, I will turn the call over to Mike Stivala for some opening remarks. Mike?

此時，我將把電話轉給 Mike Stivala，讓他發表一些開場白。麥克風？

Thanks, Davin, and good morning, and thank you all for joining us today.

謝謝，達文，早安，謝謝大家今天加入我們。

The first quarter of fiscal 2024 was dominated by widespread unseasonably warm weather, particularly during the month of December, which represents the most critical month of the quarter for heat-related demand. However, continued improvements in our customer base growth and retention initiatives, combined with active crop drying demand in the agricultural sector helped to mitigate the adverse impact of the warmer weather on volumes.

2024 財年第一季主要是普遍的反季節溫暖天氣，特別是 12 月份，這是該季度與供熱相關的需求最關鍵的月份。然而，我們的客戶群成長和保留計畫的持續改善，加上農業部門活躍的農作物乾燥需求，有助於減輕天氣變暖對產量的不利影響。

Propane volumes for the first quarter of fiscal 2024 were down just 2% compared to the prior year first quarter, despite average heating degree days that were 9% warmer than normal and 6% warmer than the prior year, and with December reflecting 10% warmer weather. Our field operations continue to do an excellent job managing selling prices in a lower, but at times volatile commodity price environment and are leveraging our efficient operating model to help manage expenses.

2024 財年第一季的丙烷銷量與去年第一季相比僅下降了2%，儘管平均暖氣度天數比正常水準高9%，比前一年高6%，且12 月比去年同期高10 %天氣。我們的現場營運繼續在較低但有時波動的商品價格環境中出色地管理銷售價格，並利用我們高效的營運模式來幫助管理費用。

For the quarter, adjusted EBITDA was $75.2 million, a decrease of $14.8 million from the prior year. In our renewable natural gas operations, we acquired at the beginning of the second quarter of last year. We have taken a number of steps to integrate the business and install the kind of operating disciplines, efficiencies, safety practices, and leadership that we have developed over the decades of operating our propane business to be recognized as best-in-class operators.

本季調整後 EBITDA 為 7,520 萬美元，較上年減少 1,480 萬美元。在我們的再生天然氣業務中，我們於去年第二季初收購了該業務。我們採取了一系列措施來整合業務，並建立了我們在經營丙烷業務數十年中所形成的營運紀律、效率、安全實踐和領導力，以被公認為一流的營運商。

To highlight some of our achievements since taking ownership of these assets. We terminated the third-party operating contracts at both the Stanfield, Arizona and Columbus, Ohio facilities. These locations are now staffed with employees of our Suburban Renewable Energy subsidiary, including this, the facilities manager for the Stanfield location, who's now overseeing all of our RNG facilities. We exited the management services agreement that was supported by the seller Equilibrium Capital Group, two years ahead of schedule.

強調我們自擁有這些資產以來所取得的一些成就。我們終止了亞利桑那州斯坦菲爾德和俄亥俄州哥倫布工廠的第三方營運合約。這些地點現在配備了我們郊區再生能源子公司的員工，其中包括斯坦菲爾德地點的設施經理，他現在負責監督我們所有的 RNG 設施。我們提前兩年退出了由賣方 Equilibrium Capital Group 支援的管理服務協議。

We have increased the intake of local food and municipal waste to enhance the opportunity for improved tipping fee revenues and increased production of D5 RNG. We are now selling nutrient rich digestate from our Stanfield facility, which is a byproduct of RNG production, the material remaining after the anaerobic digestion of the biodegradable feedstock. And we are selling that to local feedstock -- fertilizer producers to provide added revenue streams.

我們增加了當地食物和城市垃圾的攝取量，以增加提高小費收入和增加 D5 RNG 產量的機會。我們現在正在銷售來自斯坦菲爾德工廠的營養豐富的沼渣，這是 RNG 生產的副產品，是可生物降解原料厭氧消化後剩餘的材料。我們將其出售給當地的原料—化肥生產商，以提供額外的收入來源。

We have made capital improvements to the production equipment to increase efficiencies and enhance production output of both D3 and D5 RNG. And we are beginning to develop relationships with additional dairy farms in the Stanfield area to potentially increase the manure intake and in turn, increase the amount of RNG output.

我們對生產設備進行了資本改進，以提高效率並提高 D3 和 D5 RNG 的產量。我們開始與斯坦菲爾德地區的其他乳牛場建立關係，以增加糞便的攝取量，進而增加RNG的產量。

And finally, we are continuing to execute on our capital improvement plans for the installation of RNG upgrade equipment at our Columbus, Ohio facility. And are advancing the engineering and construction of our anaerobic digester facility at Adirondack Farms in upstate New York. We expect construction for the Columbus facility to be completed in the early part of fiscal 2025, while we have experienced some delays in construction at Adirondack Farms due to permitting delays.

最後，我們將繼續執行在俄亥俄州哥倫布工廠安裝 RNG 升級設備的資本改善計畫。並正在推動紐約州北部阿迪朗達克農場厭氧消化設施的工程和建設。我們預計哥倫布設施的建設將於 2025 財年初期完成，而阿迪朗達克農場的建設由於許可延誤而出現了一些延誤。

So while warm weather weighed on customer demand, we continue to manage the things we can control, and we remain steadfast in our commitment to our strategic growth objectives. There are still a lot of heating season ahead. Our operating personnel are very well prepared to handle any surge in demand from colder weather, such as some of the extreme cold conditions experienced in January 2024, as well as to adapt in the event of further softness in weather-related demand as the season progresses.

因此，儘管溫暖的天氣影響了客戶的需求，但我們將繼續管理我們可以控制的事情，並且我們仍然堅定地致力於實現我們的策略成長目標。未來還有很長一段暖氣季。我們的營運人員已做好充分準備，應對寒冷天氣導致的需求激增（例如 2024 年 1 月經歷的一些極端寒冷條件），並適應隨著季節的推移與天氣相關的需求進一步疲軟的情況。

In a moment, I'll come back for some closing remarks and provide added color on our strategic initiatives. However, at this point, I'll turn the call over to Mike Kuglin to discuss our first quarter results in more detail. Mike?

稍後，我將回來發表一些結束語，並為我們的策略舉措提供更多的內容。不過，此時，我將把電話轉給麥克‧庫格林 (Mike Kuglin)，更詳細地討論我們第一季的業績。麥克風？

Thanks, Mike, and good morning, everyone.

謝謝麥克，大家早安。

To be consistent with previous reporting. As I discuss our first quarter results, I am excluding the impact of unrealized mark-to-market adjustments on our commodity hedges, which resulted in an unrealized loss of $10.8 million for the first quarter compared to an unrealized loss of $13.7 million in the prior year first quarter.

與先前的報告保持一致。當我討論第一季業績時，我排除了未實現的按市價調整對我們的商品對沖的影響，這導致第一季未實現損失 1,080 萬美元，而上一季未實現損失為 1,370 萬美元年第一季。

Excluding these noncash items, as well as the non-cash equity and earnings of unconsolidated subsidiaries accounted for under the equity method and acquisition-related costs in the prior year, net income for the first quarter was $40.4 million or $0.63 per common unit prior to net income of $60.3 million or $0.95 per common unit in the prior year.

不包括這些非現金項目，以及按權益法核算的非現金權益和未合併子公司的收益以及上一年收購相關成本，第一季淨利潤為 4,040 萬美元，即去年同期每普通單位 0.63 美元。上年度淨收入為6,030 萬美元，即每普通單位0.95 美元。

Adjusted EBITDA for the first quarter was $75.2 million compared to $90 million in the prior year. As Mike mentioned, our earnings for the quarter were impacted by lower heat-related demand resulting from a warmer weather pattern and continued inflationary pressures on our expenses. But benefited from favorable customer base activity, resulting from organic growth in some of our greenfield expansion efforts and contributions from the RNG production facilities that we acquired at the beginning of the prior year second quarter.

第一季調整後 EBITDA 為 7,520 萬美元，去年同期為 9,000 萬美元。正如麥克所提到的，我們本季的收益受到天氣變暖導致的與熱相關的需求下降以及我們的開立支持續面臨的通膨壓力的影響。但受益於有利的客戶群活動，這得益於我們一些綠地擴張努力的有機成長以及我們在去年第二季初收購的 RNG 生產設施的貢獻。

Retail propane gallons sold 106.5 million gallons, were 2% lower than the prior year first quarter, primarily due to the impact of inconsistent and widespread unseasonably warm temperatures on heat-related demand, partially offset by higher agricultural volumes resulting from strong crop drying demand in early part of the quarter and from solid customer base management.

零售丙烷加侖銷售量為1.065 億加侖，比去年第一季下降2%，主要是由於不一致和普遍的反季節溫暖氣溫對熱相關需求的影響，部分被2019 年強勁的農作物乾燥需求導致的農業銷售增加所抵銷。本季初期以及來自可靠的客戶群管理。

With respect to the weather. Average temperatures during the first quarter were 9% warmer than normal and 6% warmer than the prior year first quarter. Average temperatures for the month of December, which is the most critical month for heat-related demand in the first quarter, was 10% warmer than both normal and December 2022.

就天氣而言。第一季的平均氣溫比正常高 9%，比去年第一季高 6%。12 月的平均氣溫是第一季熱相關需求最關鍵的月份，比正常情況和 2022 年 12 月高出 10%。

From a commodity perspective, propane inventory levels in the US experienced a seasonal decline during the quarter but remained elevated relative to historical levels for this time of the year. At the end of the first quarter, US propane inventories were at 82.6 million barrels, which is 2% higher than December 2022 levels and 7% higher than the 5-year average for December.

從大宗商品的角度來看，美國丙烷庫存水準在本季經歷了季節性下降，但相對於今年同期的歷史水準仍處於較高水準。截至第一季末，美國丙烷庫存為8,260萬桶，比2022年12月水準高2%，比12月五年平均高出7%。

As a result of the increase in inventories and other factors, wholesale propane prices for the first quarter of $0.67 per gallon basis Mont Belvieu, decreased 17% compared to the prior year first quarter and 3% for the fourth quarter of fiscal 2023. Since the end of the first quarter and with a burst of cold weather in January, propane prices have increased significantly from the average prices for the first quarter. With posted prices now in excess of $0.9 per gallon.

由於庫存增加等因素，Mont Belvieu 第一季丙烷批發價格為每加侖 0.67 美元，與去年第一季相比下降了 17%，與 2023 財年第四季相比下降了 3%。一季末以來，隨著1月的一陣寒流，丙烷價格較一季均價大幅上漲。目前公佈的價格已超過每加侖 0.9 美元。

Excluding the impact of the mark-to-market adjustments on our commodity hedges that I mentioned earlier, total gross margin of $223.6 million for the first quarter decreased $4.9 million or 2.2% compared to the prior year. Primarily due to lower volumes sold and lower propane unit margins offset to an extent by margin contribution from the RNG assets acquired at the end of December 2022.

剔除我之前提到的按市價調整對我們的商品對沖的影響，第一季總毛利率為 2.236 億美元，比去年同期減少 490 萬美元，即 2.2%。主要是由於銷售下降和丙烷裝置利潤率下降，在一定程度上被 2022 年 12 月底收購的 RNG 資產的利潤貢獻所抵消。

Excluding the impact of the unrealized mark-to-market adjustments, propane unit margins for the first quarter decreased $0.05 per gallon or 2.8% compared to the prior year. Primarily due to the mix of volume with a higher concentration of commercial and industrial volumes that tend to be less weather sensitive than residential volumes. As well as from a less favorable benefit from commodity hedges that matured during the period compared to last year.

排除未實現的按市價調整的影響，第一季丙烷單位利潤率比去年同期下降了每加侖 0.05 美元，即 2.8%。主要是由於商業和工業體量的混合體量較高，這些體量往往比住宅體量對天氣的敏感度較低。與去年相比，同期到期的商品對沖收益也較差。

Although total propane unit margins decreased due to volume mix. We reported an increase in unit margins in each of our customer segments compared to the prior year first quarter, due to effective selling price management during a period of declining commodity prices.

儘管由於銷量混合，丙烷裝置總利潤有所下降。與去年第一季相比，我們報告稱，由於在商品價格下跌期間進行了有效的銷售價格管理，我們每個客戶群的單位利潤率均有所增加。

With respect to expenses. Combined operating and G&A expenses of $147.6 million increased $9.8 million or 7.2% compared to the prior year. Primarily due to higher payroll and benefit related costs, higher costs in other areas due to persistent inflation, as well as the operating costs associated with our RNG production facilities.

關於費用。合併營運和一般管理費用為 1.476 億美元，比上年增加 980 萬美元，即 7.2%。主要是由於工資和福利相關成本增加、持續通貨膨脹導致其他領域的成本增加以及與我們的 RNG 生產設施相關的營運成本。

The Interest expense of $18.2 million for the first quarter increased $2.2 million or 13.7%, due to a higher level of average outstanding borrowings under our revolving credit facility to fund the prior year RNG acquisition, coupled with higher benchmark interest rates for borrowings under the revolver. As well as the impact of the $80.6 million in green bonds assumed in the RNG acquisition.

第一季的利息支出為1,820 萬美元，增加了220 萬美元或13.7%，原因是我們為上一年收購RNG 提供資金的循環信貸安排下的平均未償還借款水平較高，加上循環貸款下的基準利率較高。以及 RNG 收購中承擔的 8,060 萬美元綠色債券的影響。

Total capital spending for the quarter of $11.2 million was marginally higher than the prior year first quarter. Primarily due to higher growth CapEx associated with the construction of the gas upgrading equipment at our Columbus, Ohio facility and ongoing construction of the RNG facility at Adirondack farms, partially offset by a lower level of spending on propane tanks and cylinders, as we leverage our inventory on hand.

本季總資本支出為 1,120 萬美元，略高於去年第一季。主要是由於與我們俄亥俄州哥倫布工廠的天然氣升級設備建設以及阿迪朗達克農場正在建設的RNG設施相關的資本支出增長較高，部分被丙烷儲罐和鋼瓶支出水平較低所抵消，因為我們利用了我們的現有庫存。

Turning to our balance sheet. Given the seasonal nature of our business, we typically borrow under our revolving credit facility during the first quarter to help fund a portion of our seasonal working capital needs, an actual $54.8 million during the quarter. Our consolidated leverage ratio for the trailing 12-month period ended December 2023 was 4.72 times. Although the leverage metric has been elevated relative to our historical levels following the RNG acquisition, we remain well within our debt covenant requirement of 5.75 times.

轉向我們的資產負債表。鑑於我們業務的季節性，我們通常會在第一季根據循環信貸額度借款，以幫助滿足我們的部分季節性營運資金需求，該季度實際金額為 5480 萬美元。截至 2023 年 12 月的過去 12 個月期間，我們的綜合槓桿率為 4.72 倍。儘管收購 RNG 後槓桿指標相對於我們的歷史水準有所提高，但我們仍完全符合 5.75 倍的債務契約要求。

As we previously mentioned, factoring in the projected run rate EBITDA contributions from the RNG facilities and a more normalized weather pattern, the pro forma consolidated leverage ratio approaches 4 times. Our working capital needs typically peak towards the end of the heating season, late February, early March timeframe, after which we expect to generate excess cash flows.

正如我們之前提到的，考慮到 RNG 設施的預期運作率 EBITDA 貢獻和更正常化的天氣模式，預計綜合槓桿率將接近 4 倍。我們的營運資金需求通常在暖氣季結束時、二月底、三月初達到峰值，之後我們預計會產生過剩的現金流。

We will continue to remain focused on utilizing excess cash flows to strengthen the balance sheet. And as opportunities arise, to fund strategic growth, including growth capital for our RNG projects. We have more than ample borrowing capacity under our revolver to fund our remaining working capital needs for the heating season and as well as to support our capital expansion plans and ongoing strategic growth initiatives. Back to you Mike.

我們將繼續專注於利用過剩現金流來強化資產負債表。隨著機會的出現，為策略成長提供資金，包括我們的 RNG 專案的成長資本。我們的循環貸款能力非常充裕，可以為暖氣季剩餘的營運資金需求提供資金，並支持我們的資本擴張計畫和持續的策略成長計畫。回到你身邊，麥克。

Thanks, Mike. As announced on January 25, our Board of Supervisors declared our quarterly distribution of $0.325 per common unit. In respect of our first quarter of fiscal 2024, that equates to an annualized rate of $1.30 per common unit. Our quarterly distribution will be paid on February 13 to our unitholders of record as of February 6. Our distribution coverage continues to remain healthy at 2.03 times for the trailing 12-month period ended December 2023.

謝謝，麥克。正如 1 月 25 日宣布的那樣，我們的監事會宣布我們的季度分配為每普通單位 0.325 美元。就 2024 財年第一季而言，這相當於每普通單位的年化利率為 1.30 美元。我們的季度分配將於 2 月 13 日支付給截至 2 月 6 日記錄在案的單位持有人。截至 2023 年 12 月的過去 12 個月內，我們的分配覆蓋率持續維持在 2.03 倍的健康水準。

Looking ahead to the rest of fiscal 2024, as I stated earlier, there's still a significant amount of the heating season ahead. And we are well positioned both operationally and financially to adapt as demand dictates. In fact, we experienced a blast of cold weather across our operating footprint during the last two weeks of January, driving heat-related demand and solid volume performance for the month.

展望 2024 財年剩餘時間，正如我之前所說，未來供暖季的時間仍然很長。我們在營運和財務上都處於有利地位，可以根據需求進行調整。事實上，一月份的最後兩週，我們的營運範圍經歷了一陣寒冷天氣，推動了與供熱相關的需求和本月的穩定銷售表現。

In our RNG operations, with the investments we have made in Stanfield to improve efficiencies within the manure handling and processing activities, we are starting to see increasing production levels. While overall revenues have been influenced by lower benchmark natural gas prices and recent declines in California LCFS values. In addition, we are ramping up our internal resources to support the growth of our RNG platform and focusing on developing long-term offtake contracts in the voluntary RNG market, particularly for when Columbus and Adirondack farms facilities begin producing RNG.

在我們的 RNG 營運中，隨著我們在斯坦菲爾德進行投資以提高糞便處理和加工活動的效率，我們開始看到生產水平不斷提高。雖然整體收入受到基準天然氣價格下降和加州 LCFS 價值近期下降的影響。此外，我們正在增加內部資源以支持 RNG 平台的發展，並專注於在自願 RNG 市場上製定長期承購合同，特別是當哥倫布和阿迪朗達克農場設施開始生產 RNG 時。

As we have stated in previous quarters, our long-term strategic growth plan is to continue to foster the growth of our core propane business while making strategic investments in lower carbon renewable energy alternatives. We are committed to positioning Suburban Propane for long-term growth and sustainability, enhancing the career development opportunities for our valued employees and creating long-term value for all of our key and stakeholders.

正如我們在前幾個季度所述，我們的長期策略成長計畫是繼續促進核心丙烷業務的成長，同時對低碳再生能源替代品進行策略性投資。我們致力於將 Suburban Propane 定位為長期成長和永續發展，為我們尊貴的員工增加職涯發展機會，並為我們所有的關鍵和利害關係人創造長期價值。

The foundation of our ongoing success continues to be rooted in our more than 3,200 dedicated employees at Suburban Propane and their hard work and unwavering focus on the safety and comfort of our customers and the communities we serve. I want to take a moment to thank them all for their efforts. Especially in some of the challenging conditions they have faced in the latter part of January.

我們持續成功的基礎仍然植根於 Suburban Propane 的 3,200 多名敬業員工，他們的辛勤工作以及對客戶和我們所服務社區的安全和舒適的堅定關注。我想花點時間感謝他們所有人的努力。特別是在一月下旬他們面臨的一些具有挑戰性的情況下。

And as always, we appreciate your support and attention today and would now like to open the call up for questions. And Jason, if you could help us with that.

一如既往，我們感謝您今天的支持和關注，現在開始接受提問。傑森，如果你能幫助我們的話。

(Operator Instructions) Gabe Moreen, Mizuho.

（操作員指示）Gabe Moreen，Mizuho。

Good morning, everyone. (technical difficulties) just a question around SPH units have gotten included in some MLP indices, clearly it seems to have had a benefit. I'm just want to -- curious about how you're thinking about whether that matters to your cost of capital going forward? Specifically, as it comes to evaluating acquisitions, doing organic investments, or even de-levering the balance sheet from here. So I'm just curious if that changes your thinking at all?

大家，早安。 （技術困難）只是圍繞 SPH 單位的問題已被納入一些 MLP 指數中，顯然它似乎有好處。我只是想知道您如何考慮這對您未來的資本成本是否重要？具體來說，涉及評估收購、進行有機投資，甚至從這裡開始去槓桿化資產負債表。所以我很好奇這是否會改變你的想法？

That's a great question, Gabe. I mean obviously, we're happy about the performance of our units. We're happy to be included in the index that happened in mid-December. And certainly, had an immediate impact on the trading activity of our units. And we also have seen some additional run-up as of late. And so we're certainly pleased with that.

這是一個很好的問題，加布。我的意思顯然是，我們對我們單位的表現感到滿意。我們很高興被納入 12 月中旬發生的指數中。當然，這對我們單位的交易活動產生了直接影響。最近我們也看到了一些額外的成長。所以我們對此當然感到滿意。

I think it's also good recognition of the strategic initiatives and the pivoting of our business that we're doing with this great propane operation that we run really well. And now positioned the company for long term success in the renewable energy space.

我認為這也是對我們在這個運作良好的丙烷業務中所做的策略性舉措和業務轉型的良好認可。現在，該公司在再生能源領域已取得長期成功。

So as we think about funding future growth, we always keep in mind a fair -- we try to be fairly balanced in the way we attempt to fund growth. And certainly, with our common units at a much better cost of capital than they were, say, a few months ago. It certainly provides added flexibility or opportunities that we -- that perhaps weren't as obvious before. But at this point, I don't see the need for us to access additional capital, unless something more significant comes our way.

因此，當我們考慮為未來的成長提供資金時，我們始終牢記公平——我們努力在為成長提供資金的方式上保持相當平衡。當然，我們的共同單位的資本成本比幾個月前好得多。它確實為我們提供了更多的靈活性或機會——這可能以前就沒那麼明顯。但目前，我認為我們沒有必要獲得額外的資本，除非有更重要的事情發生。

With respect to an acquisition that we think adds to our long-term growth strategy, we can continue to bring the leverage down naturally as we generate excess cash flow in the business and as the earnings of the RNG platform continue to ramp up to a more run rate capacity over time. So nothing just -- I would say nothing to just try to repair the balance sheet, because we could do that on our own.

對於我們認為有助於我們長期成長策略的收購，我們可以繼續自然地降低槓桿，因為我們在業務中產生了多餘的現金流，並且隨著RNG 平台的盈利繼續上升到更多水平，我們可以繼續自然地降低槓桿率。隨著時間的推移，運行率容量。所以，我不會說什麼只是嘗試修復資產負債表，因為我們可以自己做到這一點。

Thanks, Mike. I appreciate that. It certainly seems like you have a lot on your plate from an RNG standpoint at the moment. And it sounds like you're evaluating additional dairy farms and things like that. But I'm just curious, are you still also potentially interested in or evaluating propane deals at this point? Or is really your focus at this point from a growth standpoint, pivoted entirely to RNG and hydrogen in your transition platforms I guess?

謝謝，麥克。我很感激。從 RNG 的角度來看，目前看來你們有很多事情要做。聽起來您正在評估其他乳牛場之類的東西。但我只是好奇，此時您是否仍然對丙烷交易感興趣或評估丙烷交易？或者，從成長的角度來看，您目前的重點是否真的是完全轉向過渡平台中的 RNG 和氫？

No, we are fully committed to propane Gabe. And we have -- actually, we have for this time of year, we have a decent pipeline of propane opportunities that we're pretty excited about. So no, we are not totally pivoting.

不，我們完全致力於丙烷 Gabe。實際上，每年的這個時候，我們都有大量丙烷機會，我們對此感到非常興奮。所以不，我們並沒有完全轉向。

We're balanced. We have a great propane business that we believe, given the clean qualities of propane, it's going to have a permanent position in energy to serve the needs of communities' long term. And we intend to be the relied upon energy provider to our customers and communities for the long term.

我們很平衡。我們擁有出色的丙烷業務，我們相信，鑑於丙烷的清潔品質，它將在能源領域擁有永久的地位，以滿足社區的長期需求。我們打算長期成為客戶和社區值得信賴的能源供應商。

So no. We are very much focused on our core propane business. And also, being strategic to add to the renewables platform.

所以不行。我們非常專注於我們的核心丙烷業務。此外，還策略性地添加到再生能源平台。

And then if I could just ask one last, one around, you mentioned like the bilateral contracts that you hope to sign for some of your RNG assets. Can you maybe give us more color on how those conversations are going, potential timing, particularly in light of I think maybe some of the permitting issues? I'm just curious about how that stands at the moment?

然後，如果我可以問最後一個問題，你提到了你希望為你的一些 RNG 資產簽署的雙邊合約。您能否給我們更多關於這些對話的進展、潛在時機的信息，特別是考慮到我認為可能存在一些許可問題？我只是好奇現在狀況如何？

Yeah, we're in the early stages of that Gabe. And actually, I think the voluntary market for RNG is also really in the early stages. And so it's going to take time. We have time, given the construction that needs to happen at both Columbus and Adirondack. The Stanfield assets already have a long-term contract that is really based on natural gas and environmental attribute prices.

是的，我們正處於 Gabe 的早期階段。事實上，我認為RNG的自願市場也確實處於早期階段。所以需要時間。考慮到哥倫布和阿迪朗達克都需要進行建設，我們有時間。斯坦菲爾德資產已經簽訂了一份真正基於天然氣和環境屬性價格的長期合約。

As the voluntary market develops, we will also take a look at whether it makes more sense to transfer that into a more fixed price environment. But for now, we have an outlet for all the RNG that we produce. We will have an outlet for the RNG we start producing in Columbus and Adirondack. But we believe that the voluntary market needs to develop and will develop. And we thought we intend to be part of that process to drive that.

隨著自願市場的發展，我們也將研究將其轉移到更固定的價格環境是否更有意義。但現在，我們生產的所有 RNG 都有了一個出口。我們將在哥倫布和阿迪朗達克為我們開始生產的 RNG 設立一個銷售點。但我們相信自願市場需要發展並且將會發展。我們認為我們打算成為推動這項進程的一部分。

Great. Thanks, Mike.

偉大的。謝謝，麥克。

Sure Gabe, thanks.

當然，加布，謝謝。

(Operator Instructions) Ned Baramov, Wells Fargo.

（操作員說明）Ned Baramov，富國銀行。

Hey, good morning. Thanks for taking the questions.

嗨，早安。感謝您提出問題。

Hi Ned.

嗨內德。

Could you maybe talk about -- hey. Could you talk about the cadence of CapEx spending this year? And whether the previously communicated $25 million to $35 million CapEx range for RNG is still reasonable, given some of the delays you noted for the Adirondack facility?

你能談談——嘿。能談談今年資本支出的節奏嗎？考慮到您注意到阿迪朗達克設施的一些延誤，先前傳達的 RNG 2500 萬至 3500 萬美元的資本支出範圍是否仍然合理？

Yes, good morning, Ned. At this time, I would say yes. The $25 million to $35 million is still a fair estimate, although it's looking like we will probably come in towards the lower end of that range, but we're still progressing as planned. And as things develop in the future, quarterly reports we'll give an additional update. But at this point, we're still holding firm on the $25 million to $35 million estimate.

是的，早上好，內德。這時候我就說是啊。2500 萬至 3500 萬美元仍然是一個合理的估計，儘管看起來我們可能會接近該範圍的下限，但我們仍在按計劃取得進展。隨著未來事態的發展，我們將在季度報告中提供額外的更新。但目前，我們仍堅持 2,500 萬至 3,500 萬美元的預估。

Got it. Thanks for them. And then a question on the Equilibrium assets, and more specifically the likelihood of paying an earn-out payment in fiscal 2026. I believe the purchase agreement had a clause with respect to the achievement of certain EBITDA thresholds, which trigger the potential additional payment to the seller. So I guess based on how the assets have performed to date and given the ongoing work on the Columbus facility, do you anticipate that Suburban will be paying an earn-out in fiscal 2026?

知道了。謝謝他們。然後是關於均衡資產的問題，更具體地說是在 2026 財年支付獲利付款的可能性。我認為購買協議中有一項關於實現某些 EBITDA 閾值的條款，這會觸發向賣方支付的潛在額外付款。因此，我猜測，根據迄今為止資產的表現以及哥倫布工廠正在進行的工作，您預計 Suburban 將在 2026 財年支付盈利嗎？

We have accrued for the potential estimated payout for that, and we continue to monitor that quarterly. And at this point in time, we have not made any adjustments to the reserves that we have established. But it is something that we monitor quarterly. And at any point in time when we do trop that reserve, we will report on it and communicate it.

我們已經計算了潛在的估計支出，並且我們將繼續每季進行監控。目前，我們還沒有對我們建立的儲備金進行任何調整。但這是我們每季監控的事情。在任何時候，當我們確實保留該儲備時，我們都會對其進行報告並進行溝通。

Understood. And then one last one, if I may. Can you maybe elaborate on your comment that you have a full pipeline of propane M&A opportunities? More specifically, are these mom-and-pop opportunities across your footprint or are these larger packages?

明白了。如果可以的話，還有最後一張。您能否詳細說明您的評論：您擁有完整的丙烷併購機會？更具體地說，這些是您足跡中的夫妻店機會還是更大的套餐？

No, that is still mom-and-pop type opportunities Ned, in very strategic markets for us. And I think what my comment was really about the timing. We don't typically see a lot of activity in this quarter because we're in the middle of the heating season. But we've had a couple of these that we've had in our pipeline for a bit of time, and I think we're feeling good about how those are developing. So it's really more bolt-on small strategic acquisitions.

不，內德，這仍然是夫妻店類型的機會，對我們來說是非常具有戰略意義的市場。我認為我的評論實際上是關於時機的。由於正處於供暖季節中期，我們通常不會在本季度看到大量活動。但我們已經在管道中準備了一些這樣的產品一段時間了，我認為我們對這些產品的開發感覺很好。所以這實際上是補充性的小型策略收購。

Understood. That's all I had, thanks for the time.

明白了。這就是我所擁有的一切，謝謝你的時間。

Great. Thanks, Ned.

偉大的。謝謝，內德。

(Operator Instructions) There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Michael Stivala for any closing remarks.

（操作員說明）佇列中沒有更多問題。我們的問答環節到此結束。我想將會議轉回邁克爾·斯蒂瓦拉（Michael Stivala）發表閉幕詞。

Great. Thanks, Jason, and thank you all again for joining us today. We look forward to speaking with you at the end of our second quarter results. And please stay safe and warm as the heating season progresses.

偉大的。謝謝傑森，再次感謝大家今天加入我們。我們期待在第二季業績結束時與您交談。隨著供暖季節的到來，請保持安全和溫暖。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。