Speaker #1: Thank you for standing by . My name is be your Tina conference operator today . At this time , I would like to welcome everyone to the Gallup Capital earnings call .
Davin D'Ambrosio: Tina, Tina, it's Suburban.
Davin D'Ambrosio: Tina, Tina, it's Suburban.
Operator: I apologize. I apologize. Suburban Propane Partners LP Financial Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. To ask a question, simply press star one on your telephone keypad. To withdraw your question, press star one. It is now my pleasure to turn the call over to Davin D'Ambrosio, Vice President and Treasurer. You may begin.
Operator: I apologize. I apologize. Suburban Propane Partners LP Financial Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. To ask a question, simply press star one on your telephone keypad. To withdraw your question, press star one. It is now my pleasure to turn the call over to Davin D'Ambrosio, Vice President and Treasurer. You may begin.
Speaker #1: All lines .
Speaker #1: All lines BDC
Speaker #2: Tina, it's the Suburban.
Speaker #1: I apologize , suburban propane LP partners financial call . All lines have been placed mute to on prevent any background noise after the speakers remarks , there will be question and answer session .
Speaker #1: ask a question , simply press one on your To star telephone keypad . withdraw your To question , press star one . now my It is pleasure to over to David call turn the DeMerit .
Davin D'Ambrosio: Great. Thank you, Tina. This is Davin D'Ambrosio, Vice President and Treasurer, and good morning, everyone, and thank you for joining us this morning for our fiscal 2026 first 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 first quarter financial 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, 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.
Davin D'Ambrosio: Great. Thank you, Tina. This is Davin D'Ambrosio, Vice President and Treasurer, and good morning, everyone, and thank you for joining us this morning for our fiscal 2026 first 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 first quarter financial 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, 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.
Speaker #1: President and Treasurer . Your you may begin The
Speaker #2: Great . Thank you . Tina , this is Dave and D'Ambrosio , vice president and treasurer . And good morning , everyone , and thank you for this morning for our joining us fiscal 2026 .
Speaker #2: Great . Thank you . Tina , this is Dave and D'Ambrosio , vice president and treasurer . And good morning , everyone , and thank you for this morning for our
Speaker #2: First quarter earnings call . conference , our president and Chief Executive Officer , Michael Kuglin . Chief Financial Officer and Alex Senior Vice Centeno This morning , we will review our first quarter financial results along with current outlook for the our business .
Speaker #2: 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 21 the Securities of Exchange Act of 1934 , as amended , relating to the partnership's future business and predictions and financial condition and expectations results of operations .
Davin D'Ambrosio: 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, oral, forward-looking statements attributable to the partnership or persons acting on behalf of the partnership are expressly qualified in their entirety by such cautionary statements. Our annual report on Form 10-K for the fiscal year ended September 27, 2025, and Form 10-Q for the period ended December 27, 2025, 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 SEC. Certain non-GAAP measures will be discussed on this call.
Davin D'Ambrosio: 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, oral, forward-looking statements attributable to the partnership or persons acting on behalf of the partnership are expressly qualified in their entirety by such cautionary statements. Our annual report on Form 10-K for the fiscal year ended September 27, 2025, and Form 10-Q for the period ended December 27, 2025, 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 SEC. Certain non-GAAP measures will be discussed on this call.
Speaker #2: These forward-looking statements involve certain risks and uncertainties. We have listed some of the factors that could be important and cause actual results to materially differ 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 Suburban Propane Partners LP.
Speaker #2: While subsequent oral differ the attributable to or persons acting on behalf partnership of the partnership , or expressly qualified in their entirety by such cautionary statements , our annual Report on Form 10-K for the ended September 27th , 2025 , and form 10-q for the period ended December 27th , 2025 , which will be filed by the end of today .
Speaker #2: Business contains additional disclosure statements and forward-looking regarding copies. Copies may be obtained by contacting the partnership or the SEC. Certain non-GAAP measures will be discussed on this call. Risk factors may also be included.
Davin D'Ambrosio: 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?
Davin D'Ambrosio: 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?
Speaker #2: We have provided a those description of measures , as well as a discussion we believe this of why be useful information to in our form 8-K , which was furnished to the SEC .
Speaker #2: This morning, the form 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 for remarks.
Mike Stivala: Thanks, Devin, and good morning. I apologize for the confusion from the operator. You are listening to the Suburban Propane First Quarter Earnings Conference Call. So thanks for joining us today. The fiscal 2026 heating season is off to a great start, with a surge of colder weather in our Northeast, Mid-Atlantic, and Midwest operating territories during November, and more importantly, December 2025, that drove heat-related demand, which more than offset warmer average temperatures in the West, and incremental volumes in the prior year Q1, resulting from Hurricanes Helene and Milton. Our operating personnel have already endured some significant challenges with harsh weather conditions that have persisted into the fiscal Q2, and I'm extremely proud of the hard work and dedication of our local teams for their preparation and commitment to the safety and comfort of our customers and local communities.
Mike Stivala: Thanks, Devin, and good morning. I apologize for the confusion from the operator. You are listening to the Suburban Propane First Quarter Earnings Conference Call. So thanks for joining us today. The fiscal 2026 heating season is off to a great start, with a surge of colder weather in our Northeast, Mid-Atlantic, and Midwest operating territories during November, and more importantly, December 2025, that drove heat-related demand, which more than offset warmer average temperatures in the West, and incremental volumes in the prior year Q1, resulting from Hurricanes Helene and Milton. Our operating personnel have already endured some significant challenges with harsh weather conditions that have persisted into the fiscal Q2, and I'm extremely proud of the hard work and dedication of our local teams for their preparation and commitment to the safety and comfort of our customers and local communities.
Speaker #2: Mike And . Thanks ,
Speaker #3: Good morning. We apologize for the confusion from the operator. You are on the Suburban Propane Partners LP first quarter earnings conference call. Thank you for joining us today.
Speaker #3: The fiscal season is 2026 heating off to a great start with a colder in our weather northeast and , Mid-Atlantic operating Midwest surge of during territories November importantly , .
Speaker #3: And more in December 2025. That drove heat-related demand, which more than offset warmer average temperatures in the East and West in the prior year.
Speaker #3: incremental First quarter volumes in the resulting from Hurricanes Helene and Milton operating . Our personnel already have endured some significant harsh challenges with weather conditions into the that have fiscal second quarter persisted extremely .
Speaker #3: the hard work and proud of And I'm dedication of our local teams for the preparation and commitment to the safety and comfort of our customers and local communities .
Mike Stivala: The boost in heat-related demand, along with continued positive trends from our customer base growth and retention initiatives, enabled us to deliver an increase of more than 4% in volume sold compared to the prior year first quarter, and an increase of $8.1 million, or nearly 11% in Adjusted EBITDA for the quarter. In our renewable natural gas operations, average daily RNG injection in the first quarter increased both sequentially and year-over-year, driven by the operational enhancements implemented at our Stanfield, Arizona facility, which are resulting in both improved uptime at the facility and increased conversion of feedstock to RNG injection. We also started the commissioning process for our newly constructed anaerobic digester facility in Upstate New York during December 2025, and made substantial progress on the construction of the gas upgrade equipment at our existing anaerobic digester facility in Columbus, Ohio.
Mike Stivala: The boost in heat-related demand, along with continued positive trends from our customer base growth and retention initiatives, enabled us to deliver an increase of more than 4% in volume sold compared to the prior year first quarter, and an increase of $8.1 million, or nearly 11% in Adjusted EBITDA for the quarter. In our renewable natural gas operations, average daily RNG injection in the first quarter increased both sequentially and year-over-year, driven by the operational enhancements implemented at our Stanfield, Arizona facility, which are resulting in both improved uptime at the facility and increased conversion of feedstock to RNG injection. We also started the commissioning process for our newly constructed anaerobic digester facility in Upstate New York during December 2025, and made substantial progress on the construction of the gas upgrade equipment at our existing anaerobic digester facility in Columbus, Ohio.
Speaker #3: The boost in heat related demand , along with continued positive from our trends customer base , growth and retention initiatives us to deliver , enabled of more increase than 4% in volumes sold compared to the prior year .
Speaker #3: First quarter , and an of $8.1 million , or nearly 11% , in EBITDA for the quarter . In our renewable natural gas operations , average daily RNG injection in the first quarter increased both and year sequentially over year , driven by the operational enhancements implemented at our Arizona facility , Stanfield , which are resulting in both improved at the uptime facility and increased conversion of feedstock to RNG .
Speaker #3: We started the injection commissioning also process for our newly constructed digester anaerobic facility in upstate New York and made during December 2025 , progress on the construction of the gas upgrade equipment at existing anaerobic our digester substantial Columbus , Ohio .
Mike Stivala: The RNG capital projects are on track for completion toward the end of Q2, with RNG injections scheduled to begin in the second half of the fiscal year. With a great start to the fiscal year, we remain focused on delivering outstanding performance while also advancing our long-term strategic growth plans with the previously announced acquisition of two well-run propane businesses in California, investing $24 million, progressing our capital projects to grow RNG production, investing nearly $7 million in growth CapEx in the quarter, and strategically refinancing our 2027 senior notes at an attractive rate and a 10-year maturity. Therefore, we continue to focus on disciplined investment in growth while maintaining balance sheet strength and flexibility. In a moment, I'll come back for some closing remarks.
Mike Stivala: The RNG capital projects are on track for completion toward the end of Q2, with RNG injections scheduled to begin in the second half of the fiscal year. With a great start to the fiscal year, we remain focused on delivering outstanding performance while also advancing our long-term strategic growth plans with the previously announced acquisition of two well-run propane businesses in California, investing $24 million, progressing our capital projects to grow RNG production, investing nearly $7 million in growth CapEx in the quarter, and strategically refinancing our 2027 senior notes at an attractive rate and a 10-year maturity. Therefore, we continue to focus on disciplined investment in growth while maintaining balance sheet strength and flexibility. In a moment, I'll come back for some closing remarks.
Speaker #3: The RNG capital projects track for are on completion toward the end of the second fiscal quarter, with RNG scheduled to injection begin in the second half of the fiscal year.
Speaker #3: With the start to the fiscal year , we remain focused on delivering while also outstanding long term strategic growth advancing our plans with announced performance previously acquisition of two well run propane businesses in California investing $24 million , progressing our capital to projects RNG production , investing $7 million in growth nearly quarter , and strategically refinancing notes 2027 Senior and our an attractive rate and a ten year .
Speaker #3: Therefore , we continue to focus disciplined on investment and growth maintaining balance sheet and strength flexibility . In a moment , I'll come back for some closing remarks .
Mike Stivala: However, at this point, I'll turn the call over to Mike Kuglin, to discuss the first quarter results in more detail. Mike?
Mike Stivala: However, at this point, I'll turn the call over to Mike Kuglin, to discuss the first quarter results in more detail. Mike?
Mike Kuglin: Thanks, Mike, and good morning, everyone. To be consistent with previous reporting, as I discuss our first quarter results, I'm excluding the impact of unrealized mark-to-market adjustments on our commodity hedges, which resulted in an unrealized gain of $930,000 in the first quarter, compared to an unrealized gain of $3.6 million in the prior year first quarter. Excluding these and certain other non-cash items we've identified in a reconciliation of net income to Adjusted EBITDA in the press release. Net income for the first quarter was $46.6 million, or $0.70 per common unit, compared to net income of $38 million, or $0.59 per common unit in the prior year.
Mike Kuglin: Thanks, Mike, and good morning, everyone. To be consistent with previous reporting, as I discuss our first quarter results, I'm excluding the impact of unrealized mark-to-market adjustments on our commodity hedges, which resulted in an unrealized gain of $930,000 in the first quarter, compared to an unrealized gain of $3.6 million in the prior year first quarter. Excluding these and certain other non-cash items we've identified in a reconciliation of net income to Adjusted EBITDA in the press release. Net income for the first quarter was $46.6 million, or $0.70 per common unit, compared to net income of $38 million, or $0.59 per common unit in the prior year.
Speaker #3: However , at this point I'll turn the call over to Michael Kuglin to discuss the first quarter results in more detail . Mike .
Speaker #2: Mike . Thanks ,
Speaker #4: And good morning , everyone . To be consistent with previous reporting that I discussed , results , I'm our first quarter excluding the impact of unrealized mark to market adjustments on our commodity hedges , which resulted in unrealized gain of $930,000 in the first quarter compared to an unrealized gain year .
Speaker #4: of $3.6 million in the prior First quarter . Excluding these and certain other non-cash we've items , reconciliation of net adjusted identified and income to press EBITDA in the the first income for .
Speaker #4: Net income for the quarter was $46.6 million, or $0.70 per common unit, compared to net income of $38 million, or $0.59 per common unit in the prior year.
Mike Kuglin: Adjusted EBITDA for the first quarter was $83.4 million, an increase of $8.1 million, or 10.8% compared to the prior year. Retail propane gallons sold totaled 110.2 million gallons for the first quarter, an increase of 4.2% compared to the prior year. The increase was driven by colder temperatures across much of the eastern half of the US, which boosted heat-related demand, as well as positive contributions from organic customer base growth and our recent propane acquisitions.... These factors more than offset the impact of considerably warmer temperatures in the western half of the country, and incremental volumes in the prior year first quarter in the aftermath of Hurricane Helene and Milton in the Southeast.
Mike Kuglin: Adjusted EBITDA for the first quarter was $83.4 million, an increase of $8.1 million, or 10.8% compared to the prior year. Retail propane gallons sold totaled 110.2 million gallons for the first quarter, an increase of 4.2% compared to the prior year. The increase was driven by colder temperatures across much of the eastern half of the US, which boosted heat-related demand, as well as positive contributions from organic customer base growth and our recent propane acquisitions.... These factors more than offset the impact of considerably warmer temperatures in the western half of the country, and incremental volumes in the prior year first quarter in the aftermath of Hurricane Helene and Milton in the Southeast.
Speaker #4: Adjusted first for the quarter was an increase of $83.4 million , EBITDA or 10.8% , compared to the prior $8.1 million , year sold gallon propane totaled gallons for .
Speaker #4: the first quarter , 110.2 million an of increase 4.2% compared to the Retail prior year . The was driven by colder increase temperatures across much of the eastern half of the US , which heat related as well as demand positive boosted organic , customer based growth .
Speaker #4: And our recent acquisitions . These factors more than impact of considerably warmer temperatures in the of the offset the western half country , and incremental volumes in the prior year , first quarter aftermath of .
Mike Kuglin: With respect to the weather, average temperatures during Q1 were 6% warmer than normal and 6% colder than the prior-year Q1. In the eastern half of the US, average temperatures were in line with normal and 12% cooler than the prior-year Q1, whereas average temperatures in the West were 24% warmer than normal and 11% warmer than the prior-year Q1. From a commodity perspective, average wholesale propane prices for Q1 were $0.66 per gallon, basis Mont Belvieu, representing a 14% decrease compared to the prior-year Q1. According to the most recent report from the Energy Information Administration, US propane inventories total 89 million barrels at the end of last week, which is 34% higher than a year ago and 28% above historical averages for this time of year.
Mike Kuglin: With respect to the weather, average temperatures during Q1 were 6% warmer than normal and 6% colder than the prior-year Q1. In the eastern half of the US, average temperatures were in line with normal and 12% cooler than the prior-year Q1, whereas average temperatures in the West were 24% warmer than normal and 11% warmer than the prior-year Q1. From a commodity perspective, average wholesale propane prices for Q1 were $0.66 per gallon, basis Mont Belvieu, representing a 14% decrease compared to the prior-year Q1. According to the most recent report from the Energy Information Administration, US propane inventories total 89 million barrels at the end of last week, which is 34% higher than a year ago and 28% above historical averages for this time of year.
Speaker #4: Celine Milton in the and southeast with respect to the In the weather , average temperatures during the first quarter 6% warmer than were and 6% colder than the prior year .
Speaker #4: First quarter . In the eastern half of the US , average line with normal were in 12% cooler than the prior year . temperatures and First quarter , whereas average temperatures in the were 24% warmer than normal and 11% warmer than the prior year .
Speaker #4: From a first quarter perspective, average wholesale propane commodity prices for the first quarter were $0.66 per gallon at Mont Belvieu, representing a 14% decrease compared to the prior year.
Speaker #4: First quarter , according to the most recent report from the Energy Information Administration . US propane inventories totaled 89 million barrels at the end of last week , which was 34% higher than a year ago 28% above for this averages time of year historical .
Mike Kuglin: While domestic demand from the recent blast of cold weather in the east could impact inventories, wholesale propane prices remain in the $0.60 per gallon range, compared to $0.90 per gallon range a year ago. Excluding the impact of the mark-to-market adjustments on our commodity hedges, total gross margin for the Q1 was $238.6 million, an increase of $16.1 million, or 7.2%, compared to the prior year. The improvement was driven by higher propane volume sold, coupled with an increase in propane unit margins of $0.08 per gallon, or 4%, and to a lesser extent, higher contribution from our RNG operations due to increased RNG injection. With respect to expenses, combined operating and G&A expenses increased $5 million, or 3.4%, compared to the prior year Q1.
Mike Kuglin: While domestic demand from the recent blast of cold weather in the east could impact inventories, wholesale propane prices remain in the $0.60 per gallon range, compared to $0.90 per gallon range a year ago. Excluding the impact of the mark-to-market adjustments on our commodity hedges, total gross margin for the Q1 was $238.6 million, an increase of $16.1 million, or 7.2%, compared to the prior year. The improvement was driven by higher propane volume sold, coupled with an increase in propane unit margins of $0.08 per gallon, or 4%, and to a lesser extent, higher contribution from our RNG operations due to increased RNG injection. With respect to expenses, combined operating and G&A expenses increased $5 million, or 3.4%, compared to the prior year Q1.
Speaker #4: domestic While demand from the of cold recent in the blast east , wholesale inventories could impact propane remain in the $0.60 per gallon range compared , to $0.90 per gallon range a year ago .
Speaker #4: of the Excluding the mark to market adjustments on our commodity hedges , total gross margin for the first quarter was prices $238.6 million , an increase of $16.1 million , or 7.2% , to the prior year compared .
Speaker #4: of the Excluding the mark to market adjustments on our commodity hedges , total gross margin for the first quarter was prices $238.6 million , an increase of $16.1 million , or 7.2% , to the prior year compared and driven by propane volumes , coupled with an sold propane unit in margins of $0.08 per gallon , or 4% , lesser extent , higher contribution from our RNG operations due to increased RNG injection .
Speaker #4: With respect to expenses , combined and G&A operating expenses increased $5 million , or 3.4% compared to the prior year . First quarter .
Mike Kuglin: The increase was primarily due to higher payroll and benefit related costs, overtime, and other variable operating costs to support the increased activities associated with the incremental customer demand. Both higher variable compensation expenses associated with the increase in earnings. Net interest expense of $19.8 million for the quarter was flat compared to the prior year, as the impact of higher average outstanding borrowings under our revolving credit facility was offset by lower benchmark interest rates on those borrowings. Total capital spending for the quarter was $19.8 million, of which $13 million was in support of our propane operations, and $6.8 million was for our RNG growth projects. Our full year capital spending estimate for the RNG project remains unchanged at $30 to 35 million, with spending concentrated in the first and second quarters.
Mike Kuglin: The increase was primarily due to higher payroll and benefit related costs, overtime, and other variable operating costs to support the increased activities associated with the incremental customer demand. Both higher variable compensation expenses associated with the increase in earnings. Net interest expense of $19.8 million for the quarter was flat compared to the prior year, as the impact of higher average outstanding borrowings under our revolving credit facility was offset by lower benchmark interest rates on those borrowings. Total capital spending for the quarter was $19.8 million, of which $13 million was in support of our propane operations, and $6.8 million was for our RNG growth projects. Our full year capital spending estimate for the RNG project remains unchanged at $30 to 35 million, with spending concentrated in the first and second quarters.
Speaker #4: The increase was primarily due to higher payroll and related benefit costs and other variable support the costs to operating increased activities associated with the incremental customer demand , as well as higher compensation expense associated with the earnings increase in .
Speaker #4: Net expense was $19.8 million for the quarter, as compared to the prior year. The impact of higher interest was flat, as outstanding borrowings under our revolving credit facility were offset by lower benchmark interest rates on those borrowings.
Speaker #4: Total capital spending for the quarter was $19.8 million , of which $13 million was in support of our propane operations $6.8 million for our and RNG growth projects .
Speaker #4: Our full year capital spending the project remains RNG unchanged at 30 to $35 million , with spending concentrated in the estimate for and first and turning our balance sheet .
Mike Kuglin: Turning to our balance sheet, given the seasonal nature of our business, we typically borrow under our revolving credit facility during Q1 to fund a portion of our seasonal working capital needs. With that said, during Q1, we borrowed $115.4 million under our revolver and used net proceeds of $3.1 million from the issuance of common units under our ATM equity program to fund our seasonal working capital needs, growth capital expenditures for the RNG projects, and the costs associated with refinancing of our senior notes and the two propane acquisitions that Mike mentioned earlier. Our consolidated leverage ratio for the trailing twelve-month period ended December 2025 improved to 4.57 times, compared to 4.99 times for the trailing twelve-month period ended December 2024.
Mike Kuglin: Turning to our balance sheet, given the seasonal nature of our business, we typically borrow under our revolving credit facility during Q1 to fund a portion of our seasonal working capital needs. With that said, during Q1, we borrowed $115.4 million under our revolver and used net proceeds of $3.1 million from the issuance of common units under our ATM equity program to fund our seasonal working capital needs, growth capital expenditures for the RNG projects, and the costs associated with refinancing of our senior notes and the two propane acquisitions that Mike mentioned earlier. Our consolidated leverage ratio for the trailing twelve-month period ended December 2025 improved to 4.57 times, compared to 4.99 times for the trailing twelve-month period ended December 2024.
Speaker #4: Given the second quarters seasonal nature of our business , we typically borrow under our revolving credit during the first quarter to portion fund a of our seasonal working needs capital .
Speaker #4: that said , With during the first quarter , we borrowed $115.4 million under our and used net proceeds $3.1 million from the of common issuance of units under our ATM equity program to fund our seasonal working needs capital capital .
Speaker #4: the Growth expenditures for projects , along with the costs associated refinancing of our notes and the two propane acquisitions that Mike mentioned earlier .
Speaker #4: Our leverage senior ratio for the trailing 12-month period ended December 2025 consolidated to 4.57 times, compared to times for the trailing 12-month period ended December 2024.
Mike Kuglin: Our working capital needs typically peak towards the end of the heating season, late February or early March timeframe, after which we expect to generate excess cash flows. We will continue to remain focused on utilizing excess cash flows to strengthen the balance sheet as opportunities arise to fund strategic growth. We have more than ample borrowing capacity under our revolver to fund our remaining working capital needs for the heating season, as well as to support our growth capital and ongoing strategic growth initiatives. With that, I'll turn it back to Mike.
Mike Kuglin: Our working capital needs typically peak towards the end of the heating season, late February or early March timeframe, after which we expect to generate excess cash flows. We will continue to remain focused on utilizing excess cash flows to strengthen the balance sheet as opportunities arise to fund strategic growth. We have more than ample borrowing capacity under our revolver to fund our remaining working capital needs for the heating season, as well as to support our growth capital and ongoing strategic growth initiatives. With that, I'll turn it back to Mike.
Speaker #4: Our working capital needs peak towards the heating season , late February or March . Time end of the frame , after which we early excess generate cash flows .
Speaker #4: continue to remain focused on utilizing excess flows to strengthen cash balance sheet , the and as opportunities strategic fund arise , to growth have more .
Speaker #4: ample than capacity borrowing We under our revolver fund our remaining to working needs heating , as well season as to support our growth for the capital growth capital and strategic initiatives .
Mike Stivala: Thanks, Mike. As announced on 22 January, our board of supervisors declared our quarterly distribution of $0.325 per common unit in respect of our first quarter of fiscal 2026. That equates to an annualized rate of $1.30 per common unit. Our quarterly distribution will be paid on 10 February to our unit holders of record as of 3 February. Our distribution coverage continues to remain strong at 2.19 times for the trailing twelve-month period ended December 2025. So just a few final thoughts. As colder weather and extreme storms have swept across much of the eastern half of the country in recent weeks, our operations personnel are well prepared and working tirelessly to safely meet customer demand.
Mike Stivala: Thanks, Mike. As announced on 22 January, our board of supervisors declared our quarterly distribution of $0.325 per common unit in respect of our first quarter of fiscal 2026. That equates to an annualized rate of $1.30 per common unit. Our quarterly distribution will be paid on 10 February to our unit holders of record as of 3 February. Our distribution coverage continues to remain strong at 2.19 times for the trailing twelve-month period ended December 2025. So just a few final thoughts. As colder weather and extreme storms have swept across much of the eastern half of the country in recent weeks, our operations personnel are well prepared and working tirelessly to safely meet customer demand.
Speaker #4: With that , I'll turn it back to Mike .
Speaker #3: Mike . announced on Thanks , January 22nd , our Board of Supervisors declared our quarterly As of distribution unit . In respect of our first quarter of fiscal That equates to an annualized $1.30 per common unit .
Speaker #3: common Our distribution paid on rate of will be of record as unit holders of 2026 . February the 3rd , our distribution coverage continues to remain quarterly at times for the trailing 12 month period 2.19 strong December 2025 .
Speaker #3: few final So just a thoughts . As colder weather extreme and storms have across much of the eastern half of the country in recent weeks , our swept operations prepared and well tirelessly working meet customer safely demand .
Mike Stivala: The foundation of our ongoing success continues to be rooted in our more than 3,200 dedicated employees at Suburban Propane. Their unwavering focus on the safety and comfort of our customers and the communities we serve, and the commitment to delivering outstanding customer service truly sets us apart. I want to take a moment to thank them for their exceptional efforts during these sustained cold and extreme weather conditions. In closing, our business is very well positioned, both operationally and financially, to meet increased demand from a more normalized winter heating season, while continuing to drive operational enhancements and executing on our long-term strategic growth plans. We remain committed to growing our core propane business while leveraging our core competencies as trusted local distributors of energy to grow the markets for alternative, lower carbon, renewable fuels well into the future.
Mike Stivala: The foundation of our ongoing success continues to be rooted in our more than 3,200 dedicated employees at Suburban Propane. Their unwavering focus on the safety and comfort of our customers and the communities we serve, and the commitment to delivering outstanding customer service truly sets us apart. I want to take a moment to thank them for their exceptional efforts during these sustained cold and extreme weather conditions. In closing, our business is very well positioned, both operationally and financially, to meet increased demand from a more normalized winter heating season, while continuing to drive operational enhancements and executing on our long-term strategic growth plans. We remain committed to growing our core propane business while leveraging our core competencies as trusted local distributors of energy to grow the markets for alternative, lower carbon, renewable fuels well into the future.
Speaker #3: foundation of our The success continues to be our more rooted in employees than at 3200 dedicated Suburban Propane , their unwavering focus on the of our comfort safety and customers and the communities and the we commitment to delivering serve , outstanding customer service .
Speaker #3: Truly are apart . I want to take a moment to for their exceptional efforts during cold and sustained weather these conditions . closing , our business is very well both operationally and positioned financially thank them increased demand from a more winter heating normalized season drive while operational enhancements and continuing to executing on our long term strategic growth plans remain committed to growing our core propane business while .
Speaker #3: Leveraging our core competencies as trusted distributors in local energy, we continue to grow the markets for alternative fuels, renewable, and lower-carbon energy into the future. We continue to be patient and disciplined in executing growth plans to maintain our balance sheet strong, to support both sustainability and provide flexibility to be.
Mike Stivala: And we continue to be patient and disciplined in executing our growth plans to ensure we maintain a strong balance sheet to support both sustainability and provide flexibility to be opportunistic. As always, we appreciate your support and attention this morning, and now we'll open it up for questions. And, Tina, would you mind helping us with that?
Mike Stivala: And we continue to be patient and disciplined in executing our growth plans to ensure we maintain a strong balance sheet to support both sustainability and provide flexibility to be opportunistic. As always, we appreciate your support and attention this morning, and now we'll open it up for questions. And, Tina, would you mind helping us with that?
Speaker #3: As always, we appreciate your support and attention. This morning, we will maintain a forum for questions. Tina, would you mind helping us with that?
Operator: At this time, I would like to remind everyone to ask a question, simply press star one on your telephone keypad. Again, that is star one to ask a question. We'll pause for just a moment to compile a Q&A roster. With no questions in queue, I will hand the call back over to Davin for closing remarks.
Operator: At this time, I would like to remind everyone to ask a question, simply press star one on your telephone keypad. Again, that is star one to ask a question. We'll pause for just a moment to compile a Q&A roster. With no questions in queue, I will hand the call back over to Davin for closing remarks.
Speaker #3: ? At
Speaker #1: , I would like remind to everyone to ask a question . Simply press One on your keypad . telephone that is ask a pause star to a moment compile the Q&A roster question and we'll .
Speaker #1: Star one. For closing remarks, Devin.
Mike Stivala: Great, thank you, Tina. Appreciate everybody's attention. We look forward to talking to you again in May to follow in the end of our second quarter. And, as I always say to our employees here, please be safe out there.
Davin D'Ambrosio: Great, thank you, Tina. Appreciate everybody's attention. We look forward to talking to you again in May to follow in the end of our second quarter. And, as I always say to our employees here, please be safe out there.
Speaker #3: Thank you
Speaker #3: Tina . Appreciate attention . everybody's We look to talking to
Speaker #3: you To second quarter . And forward I always say to our To here , . Great . please be out there as
Operator: Thank you again for joining us today. This does conclude today's conference call. You may now disconnect.
Operator: Thank you again for joining us today. This does conclude today's conference call. You may now disconnect.
Speaker #1: Thank you again for joining us today . This
