SUBURBAN PROPANE PARTNERS LP Q4 FY2024 earnings call

• Response to hurricanes Helene and Milton: Employees showed remarkable dedication in emergency preparedness and response, with volunteers from across the country helping affected areas. Worked with the American Red Cross for disaster relief. • Fiscal 2024 performance: Despite warm weather negatively impacting heating demand, net customer base growth and acquisitions helped offset some shortfall. Adjusted EBITDA was $250 million compared to $275 million prior year. • RNG initiatives: Deployed capital to enhance RNG production in Stanfield, Arizona; advanced projects in Columbus, Ohio, and Upstate New York; RNG sales eligible for production tax credits from Jan 2025. • Acquisitions: Acquired three propane businesses in 2024, including a larger $53 million acquisition in New Mexico and Arizona adding over 14,000 customers. • Greenfield expansions: Increased active expansions from 9 in fiscal 2023 to 18 in fiscal 2024. • Awards: Recognized for women in trucking, veterans employment, energy transition, and SuburbanCares platform.

In fiscal 2024, retail propane gallons sold were 378 million gallons, a 4.6% decrease compared to the prior year, primarily due to warmer weather during the heating season. RNG production saw a peak daily injection of 1,535 MMBtus and an overall average of 1,049 MMBtus per day in fiscal 2024, representing a 20% increase from the prior year. Retail propane contributed significantly to revenue, while RNG operations also made a growing contribution.

• For 2025, capital spending for propane operations expected to be between $40 million and $45 million. • CapEx for RNG projects expected to range between $35 million to $45 million, excluding potential investment tax credit benefit. • Anticipate monetizing investment tax credits and production tax credits in the tax credit transfer market.

• Forward-looking statements involve risks and uncertainties, including factors that could cause actual results to differ from projections. • Weather conditions can impact propane demand. • Regulatory changes, such as those affecting tax credits for RNG, could impact the RNG business.

Q: Asks about the recent acquisition in Arizona and New Mexico, genesis of the transaction, attractiveness of the markets, and third-party M&A outlook.

A: Mike Stivala responds that New Mexico is an expanding market they've been growing in, the acquisition fills a good part of the market, and they are active in third-party M&A for propane.

Q: Inquires about cost inflation expectations for the propane business and trends.

A: Mike Stivala states that cost infrastructure has stabilized, with a 0.2% increase in operating and G&A expenses in fiscal 2024 due to effective operating model flexing.

Q: Asks about outlook for RNG business regarding tax credits with the changing administration.

A: Mike Stivala says it's early to predict, but sees potential benefits in an all-of-the-above energy approach, and production tax credits in the IRA remain to be seen but believes many projects are embraced across states.