Suburban Propane Partners, L.P. (SPH) 2026 Q3 法說會逐字稿

Hello. Thank you for standing by. My name is Lacey. I will be your conference operator today. At this time, I would like to welcome everyone to Suburban Propane Partners' third quarter earnings conference call. (Operator Instructions)

您好。感謝您稍候。我叫 Lacey。今天我將擔任本次電話會議的接線員。此刻，我謹代表 Suburban Propane Partners 歡迎各位參加第三季財報電話會議。(接線員指示)

Thank you. I would now like to turn the call (technical difficulty) to D'Ambrosio, Vice President and Treasurer. Please go ahead, sir.

謝謝。現在我想將電話（技術問題）轉交給副總裁兼財務主管 D'Ambrosio。先生，請開始。

Thank you, Lacey. Good morning. Thank you for joining us for our fiscal 2026 third quarter earnings conference call. I'm here with Mike Stivala, our President and Chief Executive Officer; Mike Kuglin, Chief Financial Officer; and Alex Centeno, Senior Vice President of Operations.

謝謝你，Lacey。各位早安。感謝各位參加我們 2026 財政年度第三季財報電話會議。今天與我一同出席的有：我們的總裁暨執行長 Mike Stivala、財務長 Mike Kuglin，以及營運資深副總裁 Alex Centeno。

This morning, we will review our third quarter results, along with our current outlook for the business. Once we've concluded our prepared remarks, we will open the session to questions. Our conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, related to the partnership's future business expectations and predictions, financial condition, and results of operations.

今天上午，我們將回顧第三季業績，以及目前對業務的展望。在我們完成事先準備的發言後，將開放提問。本次電話會議包含《1934 年證券交易法》（修訂後）第 21E 條所定義的前瞻性陳述，涉及本合夥企業對未來業務預期與預測、財務狀況及營運結果。

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. 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.

這些前瞻性陳述涉及若干風險與不確定性。我們已在盈餘新聞稿中列示若干重要因素，可能導致實際結果與此等前瞻性陳述所討論內容出現重大差異；該等因素在新聞稿中稱為警示性陳述，可於我們網站 suburbanpropane.com 查閱。凡可歸因於本合夥企業或代表其行事之人士所作的其後書面及口頭前瞻性陳述，均在其整體範圍內明確受該等警示性陳述之限制。

Our Form 10-Q for the quarter period ending June 27, 2026, which will be filed by the end of business today, contains additional disclosures regarding forward-looking statements and risk factors. Copies may be obtained by contacting the partnership or the SEC. Certain non-GAAP measures will be discussed on this call.

我們截至 2026 年 6 月 27 日之季度期間的 Form 10-Q（將於今日營業結束前提交）包含關於前瞻性陳述與風險因素的額外揭露。可透過聯絡本合夥企業或美國證券交易委員會（SEC）取得副本。本次電話會議將討論若干非 GAAP 衡量指標。

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.

我們已在今早提供給 SEC 的 Form 8-K 中，提供這些衡量指標的說明，以及我們認為該等資訊有用之原因的討論。Form 8-K 將可透過我們網站投資人關係專區的連結取得。

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

此刻，我將把電話交給 Mike Stivala 做一些開場致詞。Mike？

Thanks, Davin. Good morning. Thank you all for joining us today. Following a solid first half, we experienced sustained cold weather in the eastern half of the US and extremely warm weather in the west.

謝謝，Davin。各位早安。感謝各位今天加入我們。在上半年表現穩健之後，我們在美國東半部經歷持續寒冷的天氣，而西部則出現異常溫暖的天氣。

The third quarter started out slow. Near record warm temperatures across our footprint during the shoulder month of April reduced heat-related demand, while residential customer tank levels entering the third quarter were elevated through the timing of deliveries in the second quarter, when demand was particularly strong.

第三季一開始進展較慢。在 4 月這個淡旺季交替月份，我們營運版圖內接近創紀錄的高溫降低了取暖相關需求；同時，由於第二季（當時需求特別強勁）的配送時點安排，進入第三季時住宅客戶的儲槽液位偏高。

Despite the slow start, volumes for the quarter benefited from continued growth in our counter-seasonal customer base, which substantially offset the impact of warmer weather as volumes in both May and June exceeded prior year levels.

儘管開局偏慢，本季銷量仍受惠於我們反季節客戶基礎的持續成長，這在很大程度上抵銷了較溫暖天氣的影響；因為 5 月與 6 月的銷量均高於去年同期水準。

As always, our operating personnel did an outstanding job delivering exceptional customer service to our customers, managing selling prices in a rising and volatile commodity price environment, maintaining discipline over operating costs.

一如既往，我們的營運團隊在提供卓越客戶服務、在商品價格上升且波動的環境中管理銷售價格，以及維持營運成本紀律方面，都表現得非常出色。

In our renewable natural gas operations, average daily RNG injection for the third quarter was essentially flat compared to the prior year, as increases in manure-based D3 injections were offset by lower food waste D5 injections. However, revenues from RNG injection benefited from higher prices for environmental attributes, including a 31% year over year increase in California LCFS credit prices and an 8% year over year increase in D3 RIN prices. Subsequent to the end of the third quarter, we placed our new anaerobic digester facility in Upstate New York into service, which is expected to add approximately 100,000 MMBtus of annual D3 RNG injection.

在我們的再生天然氣（RNG）業務中，第三季的 RNG 日均注入量與去年同期基本持平；因為以糞肥為原料的 D3 注入量增加，被以廚餘為原料的 D5 注入量下降所抵銷。然而，RNG 注入收入受惠於環境屬性價格走高，包括加州 LCFS 信用價格年增 31%，以及 D3 RIN 價格年增 8%。在第三季結束後，我們已將位於紐約州北部的新厭氧消化設施投入營運，預計每年可新增約 100,000 MMBtu 的 D3 RNG 注入量。

Following the completion of our RNG upgrade project at our Columbus, Ohio, biogas facility, we expect to be injecting pipeline quality RNG from that facility during the fourth quarter, which is expected to add another nearly 200,000 MMBtus of annual D5 RNG injection. As a result, we will enter fiscal year 2027 with all three of our RNG facilities operational and an anticipated level of annual injection in the range of 750,000 to 800,000 MMBtus.

隨著我們完成俄亥俄州哥倫布生物氣設施的 RNG 升級專案，我們預期將於第四季自該設施注入符合管線品質的 RNG，預計每年可再新增近 200,000 MMBtu 的 D5 RNG 注入量。因此，我們將在 2027 財政年度開始時，三座 RNG 設施皆投入營運，預期年注入量約在 750,000 至 800,000 MMBtu 的區間。

We are also focused on opportunities for organic growth and production through continued capacity optimization and increased feedstock intake. During the quarter, we also recognized a benefit of $1.1 million from production tax credits earned under Section 45Z of the Inflation Reduction Act for D3 injections at our Stanfield, Arizona, facility. The facility's significant negative carbon intensity score of approximately negative 380, together with compliance with the prevailing wage and apprenticeship requirements, allows us to maximize the available credit value under the regulations.

我們也聚焦於透過持續的產能最佳化與提高原料進料量，尋求有機成長與產量提升的機會。本季我們亦認列了 110 萬美元的利益，來自《通膨削減法案》第 45Z 條下，因亞利桑那州 Stanfield 設施的 D3 注入所取得的生產稅額抵免（PTC）。該設施顯著的負碳強度分數（約為負 380），加上符合現行工資與學徒制要求，使我們得以在法規下最大化可取得的抵免價值。

With the facility in Upstate New York now online, we expect to earn additional PTCs from RNG injection at that facility in addition to investment tax credits on the capital deployed for construction of the facility. With the New York facility now online and our Ohio facility soon to be online, we will have completed the major capital investments for our existing RNG facilities. As we have stated on a number of occasions, since owning this portfolio of assets, we have been focused on stabilizing production at our Arizona facility, where we had some operational challenges in the early years of ownership.

隨著紐約州北部設施現已上線，我們預期除可就該設施的 RNG 注入取得額外 PTC 外，亦可就建造該設施所投入的資本取得投資稅額抵免（ITC）。在紐約設施上線且俄亥俄設施即將上線之際，我們將完成現有 RNG 設施的主要資本投資。正如我們多次提到的，自擁有這組資產組合以來，我們一直專注於穩定亞利桑那設施的產量；在持有初期，我們曾面臨一些營運挑戰。

Driving operational excellence across the platform, improving plant design to increase the conversion of feedstock to RNG, deploying capital for the new facility in New York and the upgrade equipment in Ohio, and building the team to support the long-term growth of the platform. These initiatives were undertaken during a period when our environmental credit prices were significantly depressed.

我們在整個平台推動卓越營運、改善廠房設計以提高原料轉化為 RNG 的效率、為紐約新設施及俄亥俄升級設備投入資本，並建立團隊以支持平台的長期成長。這些措施是在我們的環境信用價格顯著低迷的期間推動的。

With California LCFS credits declining into the low $40 range due to the buildup of excess credits in the market. As we get ready to enter fiscal 2027 with all three facilities online, we are encouraged to see credit prices continuing to improve following regulatory actions taken in California that are driving more aggressive emissions targets and helping to rebalance the market. We believe this improving price environment presents a good tailwind for revenue enhancement in our RNG platform.

當時由於市場累積過剩信用，加州 LCFS 信用價格下滑至 40 美元出頭的區間。在我們準備以三座設施全數上線的狀態進入 2027 財政年度之際，我們樂見信用價格在加州採取監管行動後持續改善；該等行動正推動更積極的減排目標並協助市場重新平衡。我們認為，這個改善中的價格環境將為我們 RNG 平台的營收提升帶來有利助力。

With all of these set efforts over the past three years-plus, we have also maintained our focus on strengthening the balance sheet and allocating capital in a disciplined manner. Following the strong first-half performance, cash flow generation in the fiscal third quarter benefited from the seasonal collection of receivables. During the quarter, we used excess cash flows, supplemented by proceeds from the issuance of common units under our ATM equity sales program to reduce debt by more than $36 million.

在過去三年多的各項努力之下，我們也持續專注於強化資產負債表，並以嚴謹的方式進行資本配置。在上半年表現強勁之後，2026 財政年度第三季的現金流量生成受惠於應收帳款的季節性回收。本季我們運用多餘現金流，並搭配透過 ATM 股權銷售計畫發行普通單位的募集款項，將負債降低超過 3,600 萬美元。

In a moment, I'll come back for some closing remarks. However, at this point, I'll turn the call over to Mike Kuglin to discuss the third quarter results in more detail. Mike?

稍後我會回來做一些結語。不過此刻，我先把電話交給 Mike Kuglin，更詳細地說明第三季業績。Mike？

Thanks, Mike, and good morning, everyone. To be consistent with previous reporting, I discuss our third quarter results and excluding the impact, both unrealized mark-to-market adjustments on our commodity hedges, which resulted in unrealized gain of $700,000 in the third quarter for fiscal 2026, compared with unrealized loss, $2.9 million in the prior year third quarter, along with certain other non-cash items.

謝謝你，Mike，各位早安。為與先前的報導一致，我將在討論第三季業績時排除若干項目之影響，包括我們商品避險的未實現按市價評價調整；該調整在 2026 財政年度第三季產生 70 萬美元的未實現收益，而去年同期第三季則為 290 萬美元的未實現損失，並同時排除其他若干非現金項目。

Given the seasonal nature of our business, we typically experience the net loss in the third quarter of our fiscal year. With that said, adjusted net loss for the third quarter was $17.7 million, or $0.27 per common unit, compared to adjusted net loss of $10.8 million or $0.17 per common unit in the prior year. Adjusted EBITDA for the third quarter was $18 million, compared to $27 million in the prior year.

鑑於我們業務具有季節性特徵，我們通常會在本財政年度第三季出現淨虧損。話雖如此，第三季調整後淨虧損為1,770萬美元，或每普通單位0.27美元，相較於去年同期調整後淨虧損1,080萬美元或每普通單位0.17美元。第三季調整後EBITDA為1,800萬美元，去年同期為2,700萬美元。

Retail propane gallons sold in the third quarter were 70.6 million gallons, a decrease of 1.8% compared to the prior year, primarily due to the impact of seasonally warm weather in April on heat-related demand, which was substantially offset with customer base growth in our agricultural, industrial, and national accounts customer segments.

第三季零售丙烷銷售量為7,060萬加侖，較去年同期下降1.8%，主要係因4月季節性偏暖天氣對取暖相關需求造成影響；不過，農業、工業及全國性客戶帳戶等客群的客戶基礎成長在很大程度上抵銷了該影響。

With respect to the weather, average temperatures across our service territories during the third quarter were 17% warmer than normal and 3% warmer than the prior year third quarter. For the month of April, average temperatures were 24% warmer than normal and 11% warmer than April 2025 and ranked as the second warmest April on record.

就天氣而言，第三季我們服務區域的平均氣溫較常年高17%，亦較去年第三季高3%。以4月來看，平均氣溫較常年高24%，較2025年4月高11%，並列為有紀錄以來第二溫暖的4月。

From a commodity perspective, US propane inventories remained strong during the quarter, with June 2026 inventory levels approximately 21% above both June 2025 and historical averages for this time of year. Despite elevated inventory levels, wholesale propane prices were volatile and traded between $0.70 and $0.90 per gallon basis Mont Belvieu due to geopolitical tensions in the Middle East and strong export demand.

從商品面來看，本季美國丙烷庫存維持強勁，2026年6月庫存水準約較2025年6月及該時點的歷史平均值高出21%。儘管庫存水位偏高，受中東地緣政治緊張與強勁出口需求影響，批發丙烷價格仍呈現波動，依Mont Belvieu基準每加侖介於0.70至0.90美元之間交易。

Overall, average wholesale prices for the quarter increased 3.6% compared to the prior year third quarter. In the early part of the fourth quarter, wholesale prices have generally been in the $0.70 to $0.75 per gallon range, which is flat compared to the same time last year. Excluding the impact of the mark-to-market adjustments on our commodity hedges that I mentioned earlier, total gross margins for the third quarter were $159.6 million, a decrease of 2.4% compared to the prior year, primarily due to lower volume sold as propane unit margins remained steady.

整體而言，本季平均批發價格較去年第三季上升3.6%。在第四季初期，批發價格大致落在每加侖0.70至0.75美元區間，與去年同期持平。扣除我先前提到的商品避險按市價評價調整影響後，第三季總毛利為1億5,960萬美元，較去年同期下降2.4%，主要因銷售量較低，而丙烷單位毛利維持穩定。

With respect to expenses, combined operating and G&A expenses of $141.4 million for the third quarter were $5.2 million or 3.8% higher than the prior year. The increase was primarily attributable to higher payroll and benefit-related expenses and higher fuel and vehicle maintenance costs, partially offset by lower variable compensation costs, the benefit of $1.1 million from Production Tax Credits earned for the current year quarter from RNG injections.

就費用而言，第三季合計營運費用與一般及行政（G&A）費用為1億4,140萬美元，較去年同期增加520萬美元或3.8%。增加主要歸因於薪資與福利相關費用上升，以及燃料與車輛維修成本提高；部分被較低的變動薪酬成本所抵銷，並包含本年度當季因RNG注入所取得的生產稅額抵免（Production Tax Credits）帶來的110萬美元效益。

Operating expenses for the third quarter of fiscal 2025 include a $2 million gain from insurance recovery related to Hurricane Helene, reduced prior year operating expenses, and a pension settlement charge of $500,000, which was excluded from adjusted EBITDA. Net interest expense of $18.8 million for the third quarter was flat to the prior year as lower benchmark interest rates on borrowings under our revolving credit facility were offset by a higher interest rate for a tranche of senior notes that were refinanced in the first quarter of fiscal 2026.

2025財年第三季的營運費用包含與海倫颶風（Hurricane Helene）相關的保險理賠回收所帶來的200萬美元收益，降低了去年同期的營運費用，另包含50萬美元的退休金結算費用，該項已自調整後EBITDA中排除。第三季淨利息費用為1,880萬美元，與去年同期持平；循環信貸額度借款的基準利率下降所帶來的利息降低，被2026財年第一季再融資的一批次優先票據較高利率所抵銷。

Total capital spending for the quarter was $21.4 million, which included $15.1 million of growth capital. Capital spending increased $6.8 million compared to the prior year, primarily due to construction efforts at our Columbus, Ohio and upstate New York RNG facilities. On a year-to-date basis, our total growth CapEx for our RNG facilities was $28.7 million, and our full-year capital spending estimate for the existing RNG projects is approximately $35 million, which is at the low end of the previously communicated range of $35 million to $40 million.

本季資本支出合計為2,140萬美元，其中包含1,510萬美元的成長型資本支出。資本支出較去年同期增加680萬美元，主要因我們在俄亥俄州哥倫布（Columbus, Ohio）及紐約州北部（upstate New York）的RNG設施進行建設作業。以年初至今計算，我們RNG設施的成長型資本支出為2,870萬美元；對於既有RNG專案，我們對全年資本支出的估計約為3,500萬美元，位於先前公布的3,500萬至4,000萬美元區間的低端。

Turning to our balance sheet, during the third quarter, we utilized cash flows from operating activities and net proceeds of $6.6 million from the issuance of common units under our ATM program to repay $36.2 million of borrowings under the revolver.

談到資產負債表，第三季我們運用營運活動現金流，以及透過ATM計畫發行普通單位所取得的660萬美元淨收益，償還循環信貸（revolver）借款3,620萬美元。

Our consolidated leverage ratio for the trailing 12-month period into June 2026 was 4.35 times, which was flat compared to June 2025. With a significant portion of capital spending on the RNG platform launched and complete, we expect to generate increasing financial flexibility. We will remain focused on utilizing excess cash flows and proceeds received from the ATM program to further strengthen the balance sheet and, as opportunities arise, to fund strategic growth.

截至2026年6月的過去12個月期間，我們的合併槓桿比率為4.35倍，與2025年6月持平。隨著RNG平台的大部分資本支出已啟動並完成，我們預期將產生更高的財務彈性。我們將持續專注於運用多餘現金流及ATM計畫所取得的資金進一步強化資產負債表，並在機會出現時，為策略性成長提供資金。

With that, I turn the call back to Mike.

接下來，我把電話交回給Mike。

Thanks, Mike. As announced on July 23, our Board of Supervisors declared our quarterly distribution of $0.325 per common unit in respect of our third quarter of fiscal 2026. That equates to an annualized rate of $1.30 per common unit. Our quarterly distribution will be paid on August 11 to our unit holders of record as of August 4. Our distribution coverage continues to remain very strong at 2.07 times for the trailing 12 months ended June 2026.

謝謝你，Mike。如7月23日所宣布，我們監事會（Board of Supervisors）宣告就2026財年第三季發放每普通單位0.325美元的季度配息。換算年化為每普通單位1.30美元。本次季度配息將於8月11日支付給截至8月4日登記在冊的單位持有人。截至2026年6月止的過去12個月，我們的配息覆蓋倍數仍維持非常強勁，為2.07倍。

Just to close it out, through the first nine months, fiscal 2026 has been another great year for Suburban Propane, as our personnel in the eastern half of our propane operations did an amazing job responding to a surge in demand from some of the most sustained cold weather and harsh storms that we've seen during the heart of the heating season in over a decade. While our teams in the west continued to focus on the areas they can control, growing our customer base and managing expenses.

最後做個總結，在前九個月期間，2026財年對Suburban Propane而言又是表現出色的一年；我們丙烷業務東半部的同仁在取暖季核心期間，面對十多年來最持續的寒冷天氣與嚴峻風暴所帶來的需求激增，展現了卓越的應對能力。同時，我們西部團隊持續專注於可控事項，擴大客戶基礎並管理費用。

With all three of our RNG production facilities approaching full operations, the platform has benefited from our efforts to drive operational and safety discipline, production stability, and capacity optimization plans, all at a time in which we see tailwinds for the RNG platform in the form of improving environmental credit pricing, continued regulatory support for clean energy production pathways, and exponential growth in power demand.

隨著我們三座RNG生產設施皆接近全面運轉，該平台受惠於我們在營運與安全紀律、產量穩定性以及產能最佳化計畫方面的努力；同時，我們也看到RNG平台的順風因素，包括環境信用價格改善、對潔淨能源生產途徑的持續監管支持，以及電力需求的指數型成長。

Taken together, the strength and stability of our core propane business, combined with the investments we have made to build a renewable energy platform, positions Suburban Propane for long-term growth as we continue to support the evolution of energy to a lower carbon future and approach our 100-year anniversary in 2028.

綜合而言，我們核心丙烷業務的強勁與穩定，加上我們為打造再生能源平台所進行的投資，使Suburban Propane具備長期成長的有利定位；我們將持續支持能源朝向更低碳的未來演進，並迎接2028年的百年紀念。

Finally, I want to take a moment to thank the more than 3,200 employees at Suburban Propane for their hard work and unwavering focus on the safety and comfort of our customers and the communities we serve. Thank you all for everything you do all day.

最後，我想花點時間感謝Suburban Propane超過3,200名員工的辛勤付出，以及對客戶與我們所服務社區之安全與舒適的堅定專注。感謝各位每天所做的一切。

As always, we appreciate your support and attention this morning and would now like to open the call up for questions. Lacey, could you help us with that?

一如往常，我們感謝各位今天上午的支持與關注，現在我們想開放電話會議進入提問環節。Lacey，可以請你協助我們嗎？

(Operator Instructions) There are no questions at this time.

（接線員指示）目前沒有提問。

Thank you, Lacey. Again, thank you all for joining us, and I hope you enjoy the rest of your summer. As always, please be safe. We'll talk to you in November.

謝謝你，Lacey。再次感謝各位參與，也希望各位享受接下來的夏日時光。一如往常，請務必注意安全。我們11月再與各位通話。

Ladies and gentlemen, this concludes today's conference call. You may now disconnect.

各位女士、先生，今天的電話會議到此結束。您現在可以掛線。