Q3 2026 Suburban Propane Partners, L.P. Earnings Call Transcript
Key Points
- Customer base growth in agricultural, industrial, and national accounts segments substantially offset the impact of warmer weather on volumes.
- RNG revenues benefited from a 31% year-over-year increase in California LCFS credit prices and an 8% increase in D3 RIN prices.
- New RNG facilities in Upstate New York and Columbus, Ohio are expected to boost annual injection to 750,000-800,000 MMBtus by fiscal 2027.
- Recognized $1.1 million in production tax credits under Section 45Z for D3 injections at the Stanfield, Arizona facility.
- Reduced debt by over $36 million during the quarter, maintaining a strong distribution coverage ratio of 2.07 times.
- Full-year capital spending for RNG projects is expected at the low end of the guidance range, indicating cost discipline.
- Adjusted net loss widened to $17.7 million from $10.8 million in the prior year, and adjusted EBITDA fell to $18 million from $27 million.
- Retail propane gallons sold decreased 1.8% year-over-year due to record warm April temperatures.
- Combined operating and G&A expenses increased 3.8% year-over-year, driven by higher payroll, benefits, fuel, and vehicle maintenance costs.
- Wholesale propane prices were volatile, trading between $0.70 and $0.90 per gallon due to geopolitical tensions and strong export demand.
- RNG injection volumes were flat year-over-year, as increases in D3 injections were offset by lower D5 injections.
- Consolidated leverage ratio remained elevated at 4.35 times, flat compared to the prior year.
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)
Thank you. I would now like to turn the call (technical difficulty) to D'Ambrosio, Vice President and Treasurer. Please go ahead, sir.
' -
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.
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
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