- The stock price of Suburban Propane Partners LP (NYSE: SPH) fell by 1.13% this past week. This is why.
The stock price of Suburban Propane Partners LP (NYSE: SPH) fell by 1.13% this past week.
Why: Q1 results
Results: Suburban Propane Partners (NYSE: SPH) reported a Q1 EPS of $0.71, which was $0.28 lower than a consensus of $0.99. And the revenue for the quarter was $397.47 million compared to a consensus of $382.38 million.
“A combination of continued positive trends in our customer base growth and retention initiatives, cooler average temperatures, especially in the back half of December 2022, and excellent management of selling prices and expenses in a challenging economic backdrop, helped to deliver another outstanding quarter with an increase of more than 4.0% in Adjusted EBITDA compared to the prior year first quarter. There is still a significant amount of the heating season ahead and, while the second quarter has started out unseasonably warm, our operating personnel are well prepared to manage the things they can control and to deliver exceptional service to our customers.”
“In addition to the strong earnings, subsequent to the end of the first quarter, we closed on the acquisition of two operating renewable natural gas (“RNG”) production facilities from Equilibrium Capital Group (“Equilibrium”), a leading sustainability-driven asset management firm, for $190.0 million. We also established a strategic partnership with Equilibrium to identify, develop and operate additional RNG production facilities over the next three years. These strategic investments provide immediate and meaningful scale to Suburban’s existing portfolio of renewable energy investments and assets, as well as a platform for accelerated growth in the renewable fuels sector.”
“We have a proud 95-year legacy of being a trusted provider of energy to local communities. Leveraging the strength and stability of our core propane business, we are investing in the clean energy economy of the future as society transitions to lower carbon alternatives, and positioning Suburban Propane for long-term growth for our employees, valued unitholders and key stakeholders.”
— President and Chief Executive Officer Michael A. Stivala