Suburban Propane Partners, L.P. — Fiscal Year 2026 Earnings Summary

Financial Performance:

• Full-year 2026 net income was $109.0 million ($1.63 per Common Unit), compared to $106.6 million ($1.64 per Common Unit) in fiscal 2025.
• Adjusted EBITDA for fiscal 2026 increased 2.2% to $284.0 million, up from $278.0 million in the prior year.
• Fiscal 2026 fourth quarter net loss was $56.8 million ($0.85 per Common Unit), compared to a net loss of $35.1 million ($0.53 per Common Unit) in the fourth quarter of fiscal 2025.
• Fourth quarter Adjusted EBITDA increased to $7.3 million from $0.7 million in the prior year quarter.
• Total gross margins for fiscal 2026 were $893.4 million, an increase of $34.7 million (4.0%) compared to the prior year.
• Combined operating and general and administrative expenses for fiscal 2026 were $603.1 million, an increase of $22.8 million (3.9%) compared to the prior year.
• Retail propane gallons sold in fiscal 2026 were 402.9 million, an increase of approximately 1% compared to the prior year.
• Average propane prices (basis Mont Belvieu, Texas) for fiscal 2026 decreased 7.1% compared to the prior year.
• Total Consolidated Leverage Ratio improved to 4.13x at the end of fiscal 2026, down from 4.29x in fiscal 2025.
• Fiscal 2026 Adjusted EBITDA included a $12.4 million benefit from production tax credits (PTCs) related to RNG injections.
• Fiscal 2026 Adjusted EBITDA included a $7.8 million benefit from PTCs in the fourth quarter.
• Fiscal 2026 Adjusted EBITDA included an unrealized gain of $4.5 million from derivative instruments, compared to $2.4 million in fiscal 2025.

Guidance and Future Outlook:

• Management expects to monetize remaining PTCs and investment tax credits (ITCs) during fiscal 2027.
• The company enters fiscal 2027 with a larger, more reliable RNG platform and opportunities to increase production through capacity optimization and higher feedstock intake.
• Management expressed confidence in the long-term outlook for the business following the substantial completion of RNG growth capital investments.

Business Segments and Product Lines:

• The company modified its reportable segments to Propane and Renewable Natural Gas (RNG) to better align with management's evaluation of performance.
• The Propane segment includes distribution of propane, renewable propane, other fuels, and related services.
• The RNG segment includes production and injection of RNG.
• RNG average daily injection for fiscal 2026 increased 13% compared to the prior year.
• RNG segment Adjusted EBITDA for fiscal 2026 was $13.5 million, compared to $0.2 million in the prior year.
• RNG segment Adjusted EBITDA for the fourth quarter of fiscal 2026 was $8.6 million, compared to a loss of $2.6 million in the prior year quarter.
• RNG volumes sold in fiscal 2026 were 369.4 million MMBtu, up from 325.7 million MMBtu in the prior year.
• RNG volumes sold in the fourth quarter of fiscal 2026 were 103.8 million MMBtu, up from 75.9 million MMBtu in the prior year quarter.
• The company acquired two propane businesses in California for $24.0 million during fiscal 2026.
• Subsequent to the fiscal year end, the company acquired a high-quality propane business in Florida for $6.2 million.
• A new anaerobic digester facility in Upstate New York was placed into service in July 2026.
• Gas upgrading equipment was installed at the existing anaerobic digestion facility in Columbus, Ohio, awaiting final commissioning.
• Capital expenditures for growth in fiscal 2026 totaled $59.5 million, including $34.6 million for RNG production facilities.
• Maintenance capital expenditures for fiscal 2026 were $26.2 million.

Market and Competitive Landscape:

• Propane operations benefited from strong heat-related demand across the eastern half of the United States during the 2026 heating season.
• The company reported continued growth in its counter-seasonal customer base.
• Average temperatures across all service territories were 8% warmer than normal and 1% cooler than the prior year.
• Average temperatures in the East were 4% warmer than normal and 6% cooler than the prior year.
• Average temperatures in the West were 23% warmer than normal and 14% warmer than the prior year.
• Warmer temperatures in the West and the absence of incremental volumes from prior-year hurricanes in the Southeast partially offset demand gains in the East.

Risks and Challenges:

• Weather conditions significantly impact demand for propane, RNG, and other fuels.
• Volatility in commodity costs and the impact of hedging activities affect results.
• The ability to qualify for, substantiate, retain, and monetize PTCs and ITCs is subject to regulatory and legislative changes.
• Risks include the ability to compete with other energy suppliers and the willingness of customers to purchase renewable fuels.
• Economic volatility, trade conflicts, and global instability may impact fuel prices and supply.
• The company faces risks related to attracting and retaining employees and key personnel.
• Cybersecurity threats and data privacy regulations pose operational and compliance risks.
• Changes in tax laws and environmental regulations could adversely affect the business.

Management Commentary and Tone:

• CEO Michael A. Stivala described fiscal 2026 as a "strong year" with solid results in propane operations and the completion of RNG capital projects.
• Management highlighted the successful refinancing of $350.0 million of senior notes, extending maturities by nearly nine years.
• Management noted a reduction in total debt of more than $25.0 million.
• The tone was confident regarding the strengthened financial position and the long-term outlook.
• Management expressed pride in employees' ability to manage selling prices and expenses in a volatile environment.

Other Key Points:

• The Board of Supervisors increased the quarterly distribution from $0.325 to $0.35 per Common Unit for the quarter ended September 26, 2026.
• The annualized distribution rate increased 7.7% to $1.40 per Common Unit.
• The distribution was paid on November 10, 2026, to unitholders of record as of November 3, 2026.
• The company refinanced $350.0 million of senior notes due in March 2027 with $350.0 million of 6.5% senior notes due in December 2035.
• The company utilized $23.5 million from the issuance of Common Units under its at-the-market equity program.
• The company recognized $11.3 million of investment tax credits (ITCs) associated with the Upstate New York facility construction.
• The company monetized approximately $3.0 million of PTCs during fiscal 2026.
• Goodwill impairment of $7.9 million was recorded for the natural gas and electricity business in fiscal 2026.
• The company serves approximately 1 million customers through approximately 750 locations across 42 states.