SPH

• RNG Operational Updates

• Post-quarter, the new anaerobic digester facility in upstate New York was placed into service, expected to add ~100,000 MMVTUs of annual D3 RNG injection.
• The RNG upgrade project at the Columbus, Ohio facility is on track to be completed in Q4 fiscal 2026, expected to add nearly 200,000 MMVTUs of annual D5 RNG injection.
• All three existing RNG facilities will be fully operational by the start of fiscal 2027, with total anticipated annual injection of 750,000 to 800,000 MMVTUs. Major capital investments for the existing RNG portfolio are now complete.
• The Stanfield, Arizona facility qualified for maximum Inflation Reduction Act production tax credits due to its ~-380 carbon intensity score and compliance with wage/apprenticeship requirements, and the newly online New York facility will also qualify for additional PTCs plus investment tax credits for construction capital.

• Core Propane Operational Performance

• Q3 propane sales declined 1.8% YoY primarily due to extreme seasonally warm weather: Q3 average temperatures were 17% warmer than normal and 3% warmer than YoY, with April 2026 ranking as the second-warmest April on record at 24% warmer than normal. This warm-weather demand decline offset customer base growth in agricultural, industrial, and national account segments.
• U.S. propane inventories in June 2026 were ~21% above both June 2025 levels and historical averages; wholesale propane prices were volatile between 70-90 cents per gallon during Q3 due to Middle East geopolitical tensions and strong export demand, with an average 3.6% YoY price increase. Early Q4 2026 wholesale prices have held at 70-75 cents per gallon, flat YoY.

• Financial and Balance Sheet Management

• Adjusted net loss for Q3 fiscal 2026 was $17.7 million (27 cents per common unit), compared to an adjusted net loss of $10.8 million (17 cents per common unit) in Q3 fiscal 2025. Adjusted EBITDA was $18 million, down from $27 million YoY.
• Combined operating and G&A expenses were $141.4 million, 3.8% higher than YoY, driven by higher payroll/benefit and fuel/vehicle maintenance costs; prior year expenses included a $2 million insurance recovery gain from Hurricane Eileen and a $500,000 pension settlement charge.
• The company used operating cash flow plus $6.6 million in proceeds from common unit issuance under its ATM program to repay $36.2 million in revolving credit debt during the quarter. The 12-month trailing consolidated leverage ratio as of June 2026 held flat at 4.35x YoY.
• A quarterly distribution of 32.5 cents per common unit (annualized $1.30 per unit) was declared for Q3 fiscal 2026, payable August 11 to record holders as of August 4; 12-month trailing distribution coverage was a strong 2.07x as of June 2026.

• Full-year capital spending for existing RNG projects is expected to total approximately $35 million, which is at the low end of the previously guided range of $35 million to $40 million.

• All three RNG facilities will be fully operational at the start of fiscal 2027, with total annual RNG injection expected to reach 750,000 to 800,000 MMVTUs.
• Management expects increasing financial flexibility as major capital spending on the RNG platform is largely complete; excess cash flow and ATM program proceeds will continue to be used to strengthen the balance sheet and fund strategic growth opportunities as they arise.
• Improving California LCFS credit prices, driven by new regulatory actions to tighten emissions targets and rebalance the market, are expected to act as a tailwind for RNG platform revenue growth going forward.

1. Retail Propane Segment: Retail propane gallons sold totaled 70.6 million gallons, a 1.8% year-over-year decrease. Excluding unrealized commodity hedge adjustments, total gross margins for the quarter were $159.6 million, a 2.4% year-over-year decrease driven primarily by lower sales volume, while unit propane margins remained steady. The segment contributed the large majority of the firm's total revenue and gross profit as the company's core business.
2. Renewable Natural Gas (RNG) Segment: Average daily RNG injection in Q3 was flat year-over-year, as higher manure-based D3 injections were offset by lower food waste D5 injections. RNG revenues increased year-over-year due to higher environmental attribute prices: California LCFS credit prices rose 31% YoY, and D3 RIN prices rose 8% YoY. The segment recognized a $1.1 million benefit from Section 45Z production tax credits in the quarter. Capital spending for RNG projects through the first nine months of fiscal 2026 totaled $28.7 million, making up the majority of the company's total growth capital spending for the period.

• Propane demand is highly exposed to weather volatility: extreme warm temperatures during the 2026 Q3 heating season significantly reduced sales volume, offsetting underlying customer segment growth.

• Wholesale propane prices face volatility driven by geopolitical tensions (specifically Middle East conflicts) and export demand fluctuations, even when domestic inventories are elevated.
• Early operations at the Stanfield, Arizona RNG facility faced unanticipated operational challenges that required stabilization efforts in the first years of ownership.
• The California LCFS credit market previously experienced a period of depressed prices due to an excess inventory build-up of credits, which negatively impacted RNG segment revenue.

No analyst or investor questions were submitted during the Q&A portion of this call.