Suburban Propane Partners LP (SPH) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Suburban Propane Partners second quarter earnings conference call. (Operator Instructions) This call is being recorded on Thursday, May 8, 2025. I would now like to turn the conference over to Davin D'Ambrosio, Vice President and Treasurer. Please go ahead.

女士們、先生們，早安，歡迎參加 Suburban Propane Partners 第二季財報電話會議。（操作員指示）本次通話於 2025 年 5 月 8 日星期四錄製。現在，我想將會議交給副總裁兼財務主管 Davin D'Ambrosio。請繼續。

Thank you, John. Good morning, everyone. Thank you for joining us this morning for our fiscal 2025 second quarter earnings conference call. Joining me this morning are Mike Stivala, our President and Chief Executive Officer; Mike Kuglin, Chief Financial Officer; and Alex Centeno, Senior Vice President, Operations. This morning, we will review our second quarter financial results, along with the current outlook for the business.

謝謝你，約翰。大家早安。感謝您今天上午參加我們的 2025 財年第二季財報電話會議。今天早上與我一起出席的有我們的總裁兼執行長 Mike Stivala、財務長 Mike Kuglin 和營運高級副總裁 Alex Centeno。今天上午，我們將回顧第二季的財務表現以及當前的業務前景。

Once we have concluded our prepared remarks, we will open the session to questions. Our conference call contains forward-looking statements within the meaning of Section 21(e) 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.

一旦我們結束準備好的發言，我們將開始回答問題。我們的電話會議包含經修訂的 1934 年證券交易法第 21(e) 節所定義的前瞻性陳述，涉及合夥企業的未來業務預期和預測以及財務狀況和經營業績。

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.

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示性聲明，您可以在我們的網站 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 28, 2024, and our Form 10-Q for the period ended March 29, 2025, which will be filed by the end of business today, contain additional disclosure regarding forward-looking statements and risk factors. Copies may be obtained by contacting the partnership or SEC.

所有後續的、歸因於合夥企業或代表其行事的人員的書面和口頭前瞻性陳述均明確地完全符合此類警告性聲明。我們將於今天下班前提交截至 2024 年 9 月 28 日的財政年度的 10-K 表年度報告和截至 2025 年 3 月 29 日的 10-Q 表，其中包含有關前瞻性陳述和風險因素的額外揭露。可以透過聯絡合夥企業或證券交易委員會 (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. The Form 8-K will be available through a link in the Investor Relations section of our website. At this point, I will turn the call over to Mike Stivala for some opening remarks. Mike?

本次電話會議將討論某些非公認會計準則指標。我們在今天早上提交給美國證券交易委員會的 8-K 表中對這些措施進行了描述，並討論了我們認為這些資訊有用的原因。您可以透過我們網站投資者關係部分的連結取得 8-K 表格。現在，我將把電話轉給 Mike Stivala 來發表一些開場白。麥克風？

Thanks, Davin. Good morning. Thank you all for joining us today. The fiscal 2025 second quarter was an outstanding quarter for Suburban Propane. Our business experienced some of the most sustained winter weather in the heart of our footprint throughout January and February, the most critical months for heat-related demand, the kind of consistent weather conditions we haven't seen in nearly a decade.

謝謝，戴文。早安.感謝大家今天的參與。2025 財年第二季對 Suburban Propane 來說是個出色的季度。整個 1 月和 2 月，也就是高溫需求最為關鍵的月份，我們的業務中心地帶經歷了最持久的冬季天氣，這種持續的天氣狀況近十年來從未見過。

I'm extremely proud of how our field personnel at every level worked tirelessly to meet the surge in demand when our customers needed us most, while also opportunistically taking on new business when others were unable to keep up.

我為我們各級現場人員不知疲倦地工作以滿足客戶最需要我們時激增的需求而感到非常自豪，同時，他們還在其他人無法跟上的時候抓住機會承接新業務。

This was a real testament to the preparation by our operations teams and the flexibility of our operating model to ramp up when demand dictates. And with safety as our highest priority, I'm extremely proud of the way our people maintain their focus on the highest operating standards for safety during a prolonged stretch of high activity levels and some tough operating conditions.

這真正證明了我們的營運團隊的準備工作以及我們的營運模式在需求需要時能夠靈活地擴大規模。安全是我們的首要任務，我為我們的員工在長期高強度的活動和艱苦的作業條件下始終注重最高的安全作業標準的方式感到非常自豪。

As a result of the surge in demand, propane volumes for the quarter increased 15.5% compared to the prior year second quarter. In fact, during the month of January 2025, we delivered the highest propane volumes since 2018.

由於需求激增，本季丙烷產量與去年同期第二季相比成長了 15.5%。事實上，2025 年 1 月，我們交付的丙烷量達到了 2018 年以來的最高水準。

The strong volume performance, combined with effective margin management during a rising commodity price environment and good expense discipline contributed to a $28 million or 19.1% increase in adjusted EBITDA compared to the prior year second quarter.

強勁的銷售表現，加上大宗商品價格上漲環境下有效的利潤管理以及良好的費用控制，使得調整後的 EBITDA 與去年同期第二季度相比增加了 2800 萬美元，即 19.1%。

In our renewable natural gas operations, average daily RNG injection for the second quarter improved from the first quarter and was down slightly compared to the prior year second quarter due to extremely cold ambient air temperatures in the Arizona area that impacted anaerobic digestion and RNG production at our Stanfield facility, coupled with a short period of planned downtime to install enhancements to heating capacity.

在我們的再生天然氣業務中，第二季度的平均每日 RNG 注入量較第一季有所改善，但與去年同期相比略有下降，原因是亞利桑那州地區極冷的環境氣溫影響了我們斯坦菲爾德工廠的厭氧消化和 RNG 生產，再加上為安裝增強加熱能力的設備而進行的短暫計劃停機。

While revenues at the Stanfield facility have faced headwinds from lower prices for California LCFS credits and more recently, D3 RIN prices, we continue to implement enhancements to RNG production and injection, safety protocols, feedstock intake practices and overall plant efficiency in order to improve the long-term performance and returns from the facility.

儘管斯坦菲爾德工廠的收入面臨加州低碳燃料標準 (LCFS) 信用額度和近期 D3 RIN 價格下跌帶來的阻力，但我們仍在繼續改進 RNG 生產和注入、安全協議、原料攝取實踐和整體工廠效率，以提高工廠的長期性能和回報。

We are also progressing well with the capital projects at our Columbus, Ohio and Upstate New York facilities, which will increase our overall RNG sales once those facilities are fully operational. Additionally, during the quarter, we made great progress integrating the propane business that we acquired in the first quarter of fiscal 2025 for approximately $53 million with operations in New Mexico and Arizona, our largest single propane acquisition since 2012. The performance of the acquired business has exceeded our expectations in the early part of our ownership.

我們在俄亥俄州哥倫布市和紐約州北部工廠的資本項目也進展順利，一旦這些工廠全面投入運營，我們的整體 RNG 銷售將會提高。此外，在本季度，我們在整合 2025 財年第一季以約 5,300 萬美元收購的丙烷業務及其在新墨西哥州和亞利桑那州的業務方面取得了巨大進展，這是我們自 2012 年以來最大的單筆丙烷收購。所收購業務的業績超出了我們早期持有時的預期。

And finally, in late February, we launched an at-the-market or ATM equity sales program to sell up to $100 million of newly issued common units. Under the program, we may sell common units from time to time at prevailing market prices through registered placement agents acting on behalf of Suburban Propane in a controlled and disciplined manner.

最後，在二月底，我們推出了一項按市場或 ATM 股票銷售計劃，以出售高達 1 億美元的新發行普通股。根據該計劃，我們可能會不時透過代表 Suburban Propane 行事的註冊配售代理以受控且有紀律的方式以現行市場價格出售普通股。

As we have consistently messaged, our long-term strategic growth plan is to foster the growth of our core propane business, make strategic investments in lower carbon renewable energy alternatives while maintaining balance sheet flexibility.

正如我們一貫強調的那樣，我們的長期策略成長計畫是促進核心丙烷業務的成長，對低碳再生能源替代品進行策略性投資，同時保持資產負債表的靈活性。

Over the course of the past five years, we have utilized a combination of strong free cash flows and borrowings under our revolving credit facility to fund the execution of our long-term growth strategy. The purpose of the ATM program is to provide additional capital to support our ongoing pursuit of opportunistic growth while reinforcing the strength of our balance sheet.

在過去五年中，我們利用強勁的自由現金流和循環信貸額度下的借款來為我們的長期成長策略的實施提供資金。ATM 計劃的目的是提供額外的資本，以支持我們不斷追求機會性成長，同時增強我們的資產負債表實力。

During the second quarter, we raised net proceeds of $8.8 million under the program, which were used to repay outstanding debt under our revolver. Therefore, we continue to advance our long-term strategic growth plans while maintaining our focus on strengthening our balance sheet and financial metrics to drive long-term value for all of our key stakeholders. In a moment, I'll come back for some closing remarks.

在第二季度，我們透過該計劃籌集了 880 萬美元的淨收益，用於償還循環信貸額度下的未償債務。因此，我們繼續推進我們的長期策略成長計劃，同時繼續專注於加強我們的資產負債表和財務指標，為我們所有主要利害關係人創造長期價值。稍後我將回來做一些結束語。

But at this point, I'll turn it over to Mike Kuglin to discuss our second quarter results in more detail. Mike?

但現在，我將把話題轉到 Mike Kuglin 身上，更詳細地討論我們的第二季業績。麥克風？

Thanks, Mike, and good morning, everyone. To be consistent with previous reporting, as I discuss our second quarter results, I'm excluding the impact of unrealized mark-to-market adjustments on our commodity hedges, which resulted in an unrealized gain of $700,000 for the second quarter compared to an unrealized gain of $5.9 million in the prior year second quarter.

謝謝，麥克，大家早安。為了與先前的報告保持一致，當我討論我們的第二季度業績時，我排除了未實現的市價調整對我們的商品對沖的影響，這導致第二季度的未實現收益為 70 萬美元，而去年同期第二季度的未實現收益為 590 萬美元。

Excluding these and certain other noncash items, net income for the second quarter was $136.9 million or $2.11 per common unit compared to net income of $110.3 million or $1.71 per common unit in the prior year second quarter. Adjusted EBITDA for the quarter was $175 million, an increase of $28 million or 19.1% compared to the prior year second quarter.

不包括這些和某些其他非現金項目，第二季淨收入為 1.369 億美元或每普通股 2.11 美元，而去年同期第二季淨收入為 1.103 億美元或每普通股 1.71 美元。本季調整後 EBITDA 為 1.75 億美元，較去年同期第二季增加 2,800 萬美元，增幅 19.1%。

Retail propane gallons sold in the quarter were 162 million gallons, which was 15.5% higher than the prior year second quarter, primarily due to the impact of sustained widespread cooler temperatures on heat-related demand during January and February and the contributions from our recent propane acquisitions. Average temperatures across our service territories during the second quarter were 5% warmer than normal and 9% cooler than the prior year second quarter.

本季銷售的零售丙烷加侖為 1.62 億加侖，比去年同期第二季高出 15.5%，這主要是由於 1 月和 2 月持續大規模寒冷天氣對供暖相關需求的影響，以及我們近期丙烷收購的貢獻。我們服務區域第二季的平均氣溫比正常高 5%，比去年第二季低 9%。

During January and February, which are the most critical months for heat-related demand during the second quarter, average temperatures were comparable to normal and 13% colder than the same period last year. From a commodity perspective, propane inventory levels in the US experienced a strong seasonal decline during the second quarter due to a surge in domestic demand and continued strength in exports.

一月和二月是第二季暖氣需求最關鍵的月份，平均氣溫與正常水準相當，比去年同期低 13%。從商品角度來看，由於國內需求激增和出口持續強勁，美國丙烷庫存水準在第二季經歷了強勁的季節性下降。

At the end of the second quarter, US propane inventories were at 44.1 million barrels, which were 15% lower than March 2024 levels and 6% lower than the five-year average for March. Given the decline in inventories and other factors, average wholesale propane prices for the quarter of $0.90 per gallon as basis Mont Belvieu increased 7.2% compared to the prior year second quarter.

第二季末，美國丙烷庫存為4,410萬桶，比2024年3月水準低15%，比3月五年平均低6%。鑑於庫存下降等因素，以蒙特貝爾維尤為基礎的本季丙烷平均批發價格為每加侖 0.90 美元，較去年同期第二季上漲 7.2%。

Excluding the impact of the noncash mark-to-market adjustments on our commodity hedges that I mentioned earlier, total gross margin of $344.6 million for the second quarter increased $42.5 million or 14.1% compared to the prior year second quarter, primarily due to higher propane volumes sold. Propane unit margins for the quarter were flat compared to the prior year second quarter as we effectively managed selling prices to offset the impact of higher product costs.

不包括我之前提到的非現金以市價調整對我們的商品對沖的影響，第二季的總毛利率為 3.446 億美元，比去年同期增加了 4,250 萬美元，增幅為 14.1%，這主要是由於丙烷銷量增加。由於我們有效地管理了銷售價格以抵消產品成本上漲的影響，本季丙烷單位利潤率與去年同期第二季持平。

With respect to expenses, combined operating and G&A expenses of $169.3 million for the quarter increased $14.9 million or 9.7% compared to the prior year second quarter primarily due to higher payroll and benefit-related expenses, including overtime and other variable operating costs to support the increase in customer demand as well as higher variable compensation expense associated with the increase in earnings.

就費用而言，本季綜合營運及一般行政費用為 1.693 億美元，較去年同期第二季度增加 1,490 萬美元（9.7%），主要原因是工資和福利相關費用增加，包括加班費和其他可變運營成本，以支持客戶需求的增長，以及與收益增加相關的更高的可變薪酬費用。

Net interest expense of $20.6 million for the quarter increased 3.3% compared to the prior year second quarter, resulting from a higher level of average outstanding borrowings under our revolving credit facility, partially offset by lower benchmark interest rates for borrowings under the revolver. Total capital spending for the quarter of $19.3 million was $4.8 million higher than the prior year second quarter, primarily due to advancing construction efforts at our Columbus and Adirondack facilities.

本季淨利息支出為 2,060 萬美元，較去年同期第二季成長 3.3%，原因是我們的循環信貸額度下的平均未償還借款水準較高，但循環信貸額度下借款的基準利率較低，部分抵銷了這一影響。本季總資本支出為 1,930 萬美元，比去年同期第二季高出 480 萬美元，主要原因是我們哥倫布和阿迪朗達克工廠的建設工作正在推進。

And turning to our balance sheet. During the second quarter, we utilized cash flows from operating activities and net proceeds of $8.8 million from the issuance of common units under our ATM program to repay $10.1 million of borrowings under the revolver. As a result of the debt repayment and increase in earnings, our consolidated leverage ratio for the trailing 12-month period ended March 2025 improved to 4.54 times compared to 4.99 times at the end of the first quarter.

並轉向我們的資產負債表。在第二季度，我們利用經營活動產生的現金流量和 ATM 計劃下發行普通股所得的 880 萬美元淨收益償還了循環信貸下的 1,010 萬美元借款。由於償還債務和收益增加，截至 2025 年 3 月的過去 12 個月期間，我們的綜合槓桿率從第一季末的 4.99 倍改善至 4.54 倍。

We have now moved through our historically high period of seasonal working capital needs and into the fiscal quarters, we expect to generate excess cash flows. We will continue to remain focused on utilizing excess cash flows and any proceeds received from the ATM program to strengthen the balance sheet as opportunities arise to fund strategic growth, including the growth capital for our RNG platform. We have more than ample borrowing capacity under our revolver to support our capital expansion plans and ongoing strategic growth initiatives.

我們現在已經度過了季節性營運資金需求的歷史高點時期，進入財政季度，我們預計將產生超額現金流。我們將繼續專注於利用超額現金流和從 ATM 計劃中獲得的任何收益來加強資產負債表，因為有機會為策略性成長提供資金，包括我們 RNG 平台的成長資本。我們的循環信貸額度擁有充足的借貸能力，可以支持我們的資本擴張計劃和正在進行的策略成長計劃。

I have one other topic to discuss before turning the call back to Mike. In January 2025, the US Treasury Department issued a notice of proposed regulations for production tax credits eligible to be earned under the Inflation Reduction Act for the production and sale of low-emission transportation fuels, including RNG.

在將電話轉回給麥克之前，我還有一個話題要討論。2025年1月，美國財政部發布了一項擬議法規通知，規定生產和銷售低排放運輸燃料（包括RNG）可獲得《通貨膨脹削減法案》規定的生產稅收抵免。

Under the proposed regulations, there is ambiguity as to whether RNG production and sales from our Stanfield facility will qualify for PTCs. And as a result, we did not recognize any income from PTCs during the second quarter.

根據擬議法規，我們斯坦菲爾德工廠的 RNG 生產和銷售是否有資格獲得 PTC 尚不明確。因此，我們在第二季度沒有確認任何來自 PTC 的收入。

Since the proposed regulations seem inconsistent with the original intent of the IRA, we, along with numerous others, are seeking clarification from the IRS in the final rules particularly as it relates to qualifying sales and the measurement of carbon intensity for RNG produced from dairy cow manure and food waste feedstocks. Once final regulations are issued by the IRS, we will revisit the matter.

由於擬議的法規似乎與 IRA 的初衷不一致，我們與許多其他人一樣，正在尋求 IRS 在最終規則中做出澄清，特別是涉及合格銷售和由奶牛糞便和食物垃圾原料生產的 RNG 的碳強度測量。一旦美國國稅局發布最終規定，我們將重新審視此事。

With that, I'll turn the call back to Mike.

說完這些，我就把電話轉回給麥克。

Thanks, Mike. As announced on April 24, our Board of Supervisors declared our quarterly distribution of $0.325 per common unit in respect of our second quarter of fiscal 2025 this equates to an annualized rate of $1.30 per common unit. Our quarterly distribution will be paid on May 13 to our unitholders of record as of May 6. Our distribution coverage continues to remain strong at 2.17 times for the trailing 12-month period ended March 2025.

謝謝，麥克。正如 4 月 24 日宣布的那樣，我們的監事會宣布，2025 財年第二季度我們的季度分配為每普通股 0.325 美元，相當於每普通股 1.30 美元的年化利率。我們的季度分配將於 5 月 13 日支付給截至 5 月 6 日登記在冊的單位持有人。截至 2025 年 3 月的 12 個月期間，我們的分銷覆蓋率持續保持強勁，為 2.17 倍。

So just a few closing remarks. During the second quarter, we officially launched our multiyear sponsorship of NASCAR and Speedway Motorsports at the DAYTONA 500 Race in February. We are now the official propane partner of NASCAR. Under this partnership, Suburban Propane will provide propane for new propane-powered track dryers that NASCAR has added to its fleet to replace kerosene-fired dryers as part of NASCAR's sustainability initiatives.

最後我再說幾句。第二季度，我們於 2 月在 DAYTONA 500 賽事上正式啟動了對 NASCAR 和 Speedway Motorsports 的多年贊助。我們現在是 NASCAR 的官方丙烷合作夥伴。根據這項合作關係，作為 NASCAR 永續發展計畫的一部分，Suburban Propane 將為 NASCAR 車隊新增的以丙烷為動力的新型賽道乾燥機提供丙烷，以取代以煤油為燃料的乾燥機。

Suburban Propane is also providing propane to the concessions and on-site services for campers during NASCAR event weekends at 19 tracks during 28 races throughout the NASCAR season to enhance the fan experience.

在整個 NASCAR 賽季的 28 場比賽期間，Suburban Propane 還在 19 條賽道的 NASCAR 賽事週末為特許經營店和露營者提供現場服務，以增強車迷的體驗。

We are extremely proud to partner with such an iconic American spectator sport. Their trust in Suburban Propane is a testament to our commitment to safety, our national reach, our reliability, our commitment to local communities and our shared commitment to sustainability. We look forward to a long and rewarding relationship and the opportunity to engage with fans at every race.

我們非常自豪能夠與如此標誌性的美國觀賞性運動項目合作。他們對 Suburban Propane 的信任證明了我們對安全的承諾、我們的全國影響力、我們的可靠性、我們對當地社區的承諾以及我們對永續發展的共同承諾。我們期待建立長期且有益的合作關係，並有機會在每場比賽中與車迷互動。

Now just a quick comment on something that has dominated the news and markets over the course of the last several weeks, and that's tariffs. As a domestic energy distributor, we source the vast majority of the products and equipment, whether for resale or operational use in the United States and only a small portion of propane from Canada.

現在，我只想簡單評論一下過去幾週佔據新聞和市場焦點的話題，那就是關稅。作為國內能源分銷商，我們採購絕大多數產品和設備，無論是在美國轉售或營運使用，只有一小部分丙烷來自加拿大。

Therefore, we believe that for the time being, we are substantially insulated from the impact of tariffs. Recently, we have seen propane price volatility given potential uncertainty with Chinese demand for propane from the US, which could result in incremental domestic propane supplies remaining in the US and in turn, propane prices have come down. Lower cost of domestic energy will be a positive development for the consumers here in the United States.

因此，我們認為，目前我們基本上不受關稅的影響。最近，由於中國對美國丙烷需求的潛在不確定性，我們看到丙烷價格波動，這可能導緻美國國內丙烷供應增加，進而導致丙烷價格下降。國內能源成本的降低對美國消費者來說將是一個正面的發展。

Ultimately, we believe that markets will find a balance. And with some of the regulatory relief in energy markets, the conversation about the future of energy is taking on a more balanced focus on energy resiliency, security, affordability and sustainability as opposed to an outsized focus on sustainability that was beginning to drown out the first three critical factors previously.

最終，我們相信市場會找到平衡。隨著能源市場監管放鬆，有關能源未來的討論開始更加平衡地關注能源彈性、安全性、可負擔性和可持續性，而不是像以前那樣過分關注可持續性而淹沒了前三個關鍵因素。

As a result, propane can benefit from the recognition of its already low carbon attributes and its ability to provide energy on demand. It will continue to be relied upon by millions of Americans across many sectors of the economy because of its availability, versatility and affordability.

因此，丙烷可以從其低碳特性和按需提供能源的能力中受益。由於其可用性、多功能性和可負擔性，它將繼續受到經濟各領域數百萬美國人的依賴。

Suburban Propane is very well positioned to meet the energy needs of local communities to drive increased propane use in certain applications that can benefit immediately from its lower carbon footprint and to innovate with the introduction of even lower carbon renewable energy alternatives.

Suburban Propane 完全有能力滿足當地社區的能源需求，推動某些應用領域中丙烷的使用量增加，這些應用領域可立即受益於其較低的碳足跡，並透過引入更低碳的可再生能源替代品進行創新。

Through the execution of our long-term strategic growth plans, Suburban Propane remains committed to advancing propane as a long-term low-carbon solution while leveraging our core competencies in safety, customer service and logistics expertise to grow the markets for renewable fuels, such as renewable propane and renewable natural gas and clean hydrogen well into the future.

透過實施我們的長期策略成長計劃，Suburban Propane 始終致力於將丙烷推進為長期低碳解決方案，同時利用我們在安全、客戶服務和物流專業知識方面的核心競爭力，在未來擴大再生燃料市場，例如可再生丙烷、可再生天然氣和清潔氫。

In closing, I want to take a moment to thank the more than 3,300 dedicated employees at Suburban Propane for their unwavering commitment to safety and outstanding customer service during a very challenging winter heating season and during a time when our customers needed us the most. Thank you. And as always, we appreciate your support and attention this morning.

最後，我想藉此機會感謝 Suburban Propane 的 3,300 多名敬業的員工，感謝他們在極具挑戰性的冬季供暖季節以及客戶最需要我們的時候，對安全的堅定承諾和出色的客戶服務。謝謝。像往常一樣，我們感謝您今天上午的支持和關注。

And now I'd like to open the call for questions. And John, if you wouldn't mind helping us with that, I appreciate it.

現在我想開始提問。約翰，如果你不介意幫助我們的話，我將非常感激。

(Operator Instructions) Christopher Jeffrey, Mizuho Securities.

（操作員指示）瑞穗證券的克里斯多福‧傑弗瑞 (Christopher Jeffrey)。

Congratulations on the strong quarter. Mike, maybe to pick up where you kind of ended as far as volatility in the propane price market. Could you just kind of maybe talk about how Suburban is positioning yourselves ahead of kind of during this non-heating season, any kind of changes to the plan for the next heating season?

恭喜本季業績強勁。麥克，也許我們可以繼續討論丙烷價格市場波動的問題。您能否談談 Suburban 在非供暖季節的定位以及下一個供暖季節的計劃有何變化？

No. Honestly, Chris, we've been through different commodity cycles over the last several decades. We know how to manage the supply of propane very, very well. Our product supply team does an amazing job. We have great relationships with our suppliers.

不。老實說，克里斯，過去幾十年來我們經歷了不同的商品週期。我們非常了解如何管理丙烷的供應。我們的產品供應團隊做得非常好。我們與供應商保持著良好的關係。

In fact, I think with the expectation that there's going to be more propane trapped here in the United States and all that can change overnight. But currently, I think there is a view that there may be a higher inventory of propane here and prices are going to reflect that. We -- the average price of propane in Belvieu was about $0.90 in the second quarter. It's down closer to $0.70 as of yesterday.

事實上，我認為預計美國將會有更多的丙烷被困，而這一切都可能在一夜之間改變。但目前，我認為有一種觀點認為這裡的丙烷庫存可能較高，價格也會反映這一點。我們——第二季度貝爾維尤的丙烷平均價格約為 0.90 美元。截至昨日，該價格已跌至接近 0.70 美元。

So you're starting to see the impact of that. But that doesn't really change the way we're thinking about how to source and set ourselves up for next year's heating season.

所以你開始看到它的影響了。但這並沒有真正改變我們對如何採購和準備明年供暖季節的思考方式。

Got it. And then just wondering if you could kind of give us a high-level view of Suburban's view of the propane M&A landscape kind of coming out of this heating season. I know that tends to be where the activity picks up.

知道了。然後我想知道您是否可以從總體上向我們介紹 Suburban 對這個供暖季節丙烷併購前景的看法。我知道這往往是活動開始活躍的地方。

Yes, it's a great question, Chris. The interesting thing, I think, is the propane M&A landscape has changed dramatically in the sense that the number of buyers has significantly diminished. I think part of that is there's just less majors than there were, say, 10, 15 years ago that were aggressively going after trying to consolidate the industry. And the other aspect is some of our peers have different challenges that may force them to stay on the sidelines for a bit while they sort of focus internally.

是的，這是一個很好的問題，克里斯。我認為有趣的是，丙烷併購格局發生了巨大變化，買家數量大幅減少。我認為部分原因是，與 10 或 15 年前相比，現在積極嘗試整合產業的專業公司越來越少。另一方面，我們的一些同行面臨著不同的挑戰，這可能會迫使他們暫時袖手旁觀，專注於內部事務。

We're viewing this as a great opportunity for Suburban Propane. There's a very promising future, I think, with respect to propane, different than it was, I would say, even two, three years ago. I think some of the challenges that the propane or that, frankly, the energy landscape has experienced over the last several years, whether it was COVID, whether it's been some of the natural disasters has really started to highlight.

我們認為這對 Suburban Propane 來說是一個絕佳的機會。我認為，丙烷的前景非常光明，與兩、三年前相比已經大不相同。我認為丙烷或坦白說，能源格局在過去幾年中經歷的一些挑戰，無論是 COVID，還是一些自然災害，都開始真正凸顯出來。

What we've been saying all along is that propane is such a powerful on-demand energy source. So we see a very bright future for propane, which is why our strategic growth initiatives is balanced. We're continuing to invest in our core propane business, and we're focusing on the long-term future to position ourselves well in the renewable energy landscape.

我們一直在說，丙烷是一種強大的按需能源。因此，我們認為丙烷的前景非常光明，這就是我們的策略成長計畫保持平衡的原因。我們將繼續投資於我們的核心丙烷業務，並著眼於長遠未來，以便在再生能源領域佔據有利地位。

But as far as propane goes, we're really excited about some of the new uses that we're finding for propane, some of the new respect we're finding for propane. And frankly, when it comes to M&A, we're in the best position of anybody to take on good quality businesses in attractive markets and our pipeline of opportunities is building quite nicely as we come out of the heating season now.

但就丙烷而言，我們對發現丙烷的一些新用途以及對丙烷的一些新尊重感到非常興奮。坦白說，在併購方面，我們處於最佳位置，可以在有吸引力的市場中承接優質業務，而且隨著供暖季節的結束，我們的機會管道正在不斷完善。

And I think with some more discipline in the market, multiples are probably getting back to where they should have been all along to be much more reasonable and practical with a limited number of undisciplined buyers left in the marketplace.

我認為，隨著市場紀律的加強，多重因素可能會回到它們原本應有的水平，變得更加合理和實用，而市場上不守紀律的買家數量將有所減少。

Got it. And then maybe just one on the renewables side of things. Maybe any kind of expanding on the comments as far as whether it's federal regulations, state-level regulations, any kind of time lines we should be looking out for? And then maybe longer term, just do these different outcomes change the way you might be operating or thinking about Adirondack, Columbus, or any kind of future investment in the space?

知道了。然後也許只涉及再生能源方面的事情。是否可以擴展評論，例如是否需要注意聯邦法規、州級法規或任何時間表？那麼從長遠來看，這些不同的結果是否會改變您對阿迪朗達克、哥倫布或任何未來太空投資的運作方式或思考方式？

Yes. On the RNG side, I think one of the things that is going to develop over time, and that's more of a state-related regulatory framework. California and their LCFS program, they're very much focused on creating a better balance in the credit markets, the environmental attribute markets.

是的。在 RNG 方面，我認為隨著時間的推移，其中一件事將會發展，那就是與國家相關的監管框架。加州及其低碳食品服務 (LCFS) 計劃非常注重在信貸市場和環境屬性市場中創造更好的平衡。

And some of the amendments that have been proposed by CARB to create that better balance to drive higher values for credit prices are certainly opportunities that we see are going to take shape as those amendments get finalized, hopefully, in the coming weeks or months because what you see in the environmental attribute markets is as soon as there is an adoption or a change to the LCFS program even that gets announced, you see movement.

並且，加州空氣資源委員會 (CARB) 提出的一些修正案旨在創造更好的平衡，從而提高信用價格的價值，這些修正案無疑將成為機遇，我們希望這些修正案在未來幾週或幾個月內最終確定，因為您在環境屬性市場中看到的是，一旦採用或更改低碳燃料標準計劃（LCFS），即使只是宣布，您也會看到動靜。

And then when those amendments had to get pulled back for technical reasons, you see movement back downward and sort of values getting stuck where they are right now. But I think what we see is the regulators are interested in ensuring that the incentives that are there that were envisioned from the beginning to drive lower carbon fuels are continuing to drive the behavior and the investment into that space, and they're very much focused on getting credit values up.

然後，當這些修正案因技術原因不得不被撤回時，你會看到趨勢再次下降，價值觀也停留在現在的水平。但我認為，我們看到的是，監管機構有興趣確保從一開始就設想的推動低碳燃料的激勵措施能夠繼續推動該領域的行為和投資，並且他們非常注重提高信用價值。

So I think when we see LCFS amendments actually get implemented in California, I think we're going to see a rebound in LCFS credit values, which is going to be a welcome sign for anybody in the renewable fuels markets and certainly for our RNG platform.

因此，我認為，當我們看到 LCFS 修正案在加州真正實施時，我們將看到 LCFS 信用值的反彈，這對於再生燃料市場中的任何人，當然對於我們的 RNG 平台來說都是一個可喜的信號。

In the meantime, we're very much focused on just operational excellence. That's who we are. That's what we've been known for in propane, and we're driving that mindset in the RNG platform. And so as the Columbus and Adirondack opportunities come online at the tail end of this calendar year, maybe into the early part of next year, we expect that, that will be at a time when we'll see better pricing in the environmental attribute markets, and we'll sort of stay the course with our plan because renewable natural gas is a direct drop-in replacement for traditional natural gas, and it's a great opportunity to decarbonize large sectors of the economy.

同時，我們非常注重卓越營運。這就是我們。這就是我們在丙烷領域聞名的原因，我們正在 RNG 平台上推動這種思維方式。因此，隨著哥倫布和阿迪朗達克的機會在今年年底，或許是明年年初出現，我們預計，那時我們將看到環境屬性市場更好的定價，我們將堅持我們的計劃，因為可再生天然氣是傳統天然氣的直接替代品，這是使經濟大部分部門脫碳的絕佳機會。

So we think in the long term, it's a good place to be invested. At the same time, the rest of our renewable platform is really developing in terms of really driving and finding where we see the economy for lower carbon fuels heading that will benefit most from what I said earlier is our three core competencies, and that's safety, customer service and logistics.

因此我們認為從長遠來看，這是一個值得投資的好地方。同時，我們的其他再生平台正在真正發展，真正推動和尋找低碳燃料的經濟走向，這將從我之前所說的我們的三大核心競爭力中受益最多，即安全、客戶服務和物流。

There are going to be newer, cleaner fuels that develop, whether that's hydrogen, whether it's renewable propane. But the reality is those fuels will need to be distributed locally and who better to do that than suburban propane. That's the way we're looking at the transition of energy in the long term.

將會有更新、更乾淨的燃料被開發出來，無論是氫氣，還是可再生丙烷。但現實情況是，這些燃料需要在當地分銷，而誰能比郊區丙烷更好地做到這一點呢？這就是我們長期看待能源轉型的方式。

And whether that's 2, 3, 5, 10 years from now, we're going to be positioned to be able to move other products.

無論是 2 年、3 年、5 年或 10 年後，我們都將有能力銷售其他產品。

(Operator Instructions) There are no further questions at this time. I would like to turn the call over to Mike Stivala for closing comments. Sir, please go ahead.

（操作員指示）目前沒有其他問題。我想將電話轉給 Mike Stivala 來做最後發言。先生，請繼續。

Great. Thanks for your help today, John, and thank you all for your interest and your attention today. Again, it was a fantastic quarter for Suburban Propane. It's what we're built for is to be able to meet the demand when it comes and I think this quarter demonstrated that.

偉大的。感謝您今天的幫助，約翰，也感謝大家今天的關注與關注。這對 Suburban Propane 來說又是一個輝煌的季度。我們成立的目的是為了能夠滿足需求，我認為本季就證明了這一點。

We look forward to talking with you again at the end of our third quarter in the summer. And in the meantime, please remember, always, at all times, please be safe. Thank you.

我們期待在夏季第三季末再次與您交談。同時，請記住，無論何時，都要注意安全。謝謝。

This concludes today's conference call. Thank you very much for your participation. You may now disconnect.

今天的電話會議到此結束。非常感謝您的參與。您現在可以斷開連線。