Suburban Propane Partners, L.P.

Ladies and gentlemen, and welcome to the Suburban Propane Partners second quarter earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, May 8, 2025. I would now like to turn the conference over to David D'Ambrosio, Vice President and Treasurer. Please go ahead.

Thank you, John. Good morning, everyone. Thank you for joining us this morning for our fiscal 2025 second quarter earnings conference call. Joining me this morning are Mike Stavala, our President and Chief Executive Officer, Mike Coogland, Chief Financial Officer, and Alex Centeno, Senior Vice President, Operations. This morning, we will review our second quarter financial results along with the current outlook for the business. Once we have 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. 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 and oral forward-looking statements attributable to the partnership or persons acting on its behalf are expressly qualified in there entirely by such cautionary statements. Our annual report on Form 10-K for the fiscal year ended September 28, 2024, and our Form 10-Q for the period ended March 29, 2025, which will be filed by the end of business today, contained additional disclosure 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. 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 8K, which was furnished to the SEC this morning. The Form 8K 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 Stavall for some opening remarks. Mike?

Thanks, Davin. Good morning. Thank you all for joining us today. The fiscal 2025 second quarter was an outstanding quarter for suburban propane. Our business experienced some of the most sustained winter weather in the heart of our footprint throughout January and February, the most critical months for heat-related demand. The kind of consistent weather conditions we haven't seen in nearly a decade. I'm extremely proud of how our field personnel at every level worked tirelessly to meet the surge in demand when our customers needed us most. while also opportunistically taking on new business when others were unable to keep up. This was a real testament to the preparation by our operations teams and the flexibility of our operating model to ramp up when demand dictates. And with safety as our highest priority, I'm extremely proud of the way our people maintain their focus on the highest operating standards for safety during a prolonged stretch of high activity levels and some tough operating conditions. As a result of the surge in demand, propane volumes for the quarter increased 15.5% compared to the prior year second quarter. In fact, during the month of January 2025, we delivered the highest propane volumes since 2018. The strong volume performance combined with effective margin management during a rising commodity price environment and good expense discipline contributed to a $28 million or 19.1% increase in adjusted EBITDA compared to the prior year second quarter. In our renewable natural gas operations, average daily RNG injection for the second quarter improved from the first quarter and was down slightly compared to the prior year second quarter due to extremely cold ambient air temperatures in the Arizona area that impacted anaerobic digestion and RNG production at our Stanfield facility, coupled with a short period of planned downtime to install enhancements to heating capacity. While revenues at the Stanfield facility have faced headwinds from lower prices for California LCFS credits and, more recently, D3 RIN prices, we continue to implement enhancements to RNG production and injection, safety protocols, feedstock intake practices, and overall plant efficiency in order to improve the long-term performance and returns from the facility. We are also progressing well with the capital projects at our Columbus, Ohio, and upstate New York facilities, which will increase our overall RNG sales once those facilities are fully operational. Additionally, during the quarter, we made great progress integrating the propane business that we acquired in the first quarter of fiscal 2025 for approximately $53 million with operations in New Mexico and Arizona, our largest single propane acquisition since 2012. The performance of the acquired business has exceeded our expectations in the early part of our ownership. And finally, in late February, we launched an at-the-market or ATM equity sales program to sell up to $100 million of newly issued common units. Under the program, we may sell common units from time to time at prevailing market prices through registered placement agents acting on behalf of Suburban Propane in a controlled and disciplined manner. As we have consistently messaged, Our long-term strategic growth plan is to foster the growth of our core propane business, make strategic investments in lower carbon renewable energy alternatives while maintaining balance sheet flexibility. Over the course of the past five years, we have utilized a combination of strong free cash flows and borrowings under our revolving credit facility to fund the execution of our long-term growth strategy. The purpose of the ATM program is to provide additional capital to support our ongoing pursuit of opportunistic growth while reinforcing the strength of our balance sheet. During the second quarter, we raised net proceeds of $8.8 million under the program, which were used to repay outstanding debt under our revolver. Therefore, we continue to advance our long-term strategic growth plans while maintaining our focus on strengthening our balance sheet and financial metrics to drive long-term value for all of our key stakeholders. In a moment, I'll come back for some closing remarks, but at this point, I'll turn it over to Mike Coogland to discuss our second quarter results in more detail. Mike?