Q3 2025 Suburban Propane Partners LP Earnings Call Transcript
Key Points
- Suburban Propane Partners LP (SPH) delivered a solid counter-seasonal quarter despite unseasonably warm temperatures and commodity price volatility.
- The strategic propane acquisition in New Mexico is showing benefits, contributing to the company's growth.
- Cash flow generation in the fiscal third quarter was strong, allowing the company to reduce outstanding debt by $69 million.
- The company maintained a healthy distribution coverage of 2.16 times for the trailing 12 months ended June 2025.
- Suburban Propane Partners LP (SPH) is advancing capital projects at its Columbus, Ohio, and Upstate New York facilities, expected to increase overall renewable natural gas sales.
- The company experienced a net loss of $10.8 million for the third quarter, compared to a net loss of $8 million in the prior year.
- Average federal D3 RIN prices for the third quarter were down 21% year-over-year, impacting revenues.
- Revenues at the Stanfield facility faced headwinds from lower prices for environmental attributes, including California LCFS credits.
- Operational improvements at the Stanfield facility led to downtime, causing a slight decline in average daily RNG injection.
- The company is still awaiting final regulations on tax credits under 45Z, which affects the recognition of potential credits.
Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Suburban Propane Partners Third Quarter Earnings Conference Call. (Operator Instructions)
I would now like to turn the call over to Davin D'Ambrosio, Vice President and Treasurer. Please go ahead.
' -
Thanks, Eric. Good morning, and thank you for joining us for our fiscal 2025 third quarter earnings conference call.
I'm here with Mike Stivala, our President and Chief Executive Officer; Mike Kuglin, our Chief Financial Officer; and Alex Centeno, Senior Vice President of Operations. This morning, we will review our third quarter financial results, along with our outlook for the business. Once we 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 1934 as amended,
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