Suburban Propane Partners, L.P.

Thank you for standing by. At this time, I would like to welcome everyone to the Suburban Propane second quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. I would now like to turn the conference over to Davin D'Ambrosio, Vice President and Treasurer. The floor is yours.

Morgan, thank you. Good morning, everyone. Thank you for joining us this morning for our fiscal 2026 second quarter earnings conference call. Joining me this morning are Mike Stavala, our president and chief executive officer, Mike Hoogland, chief financial officer, and Alex Centeno, senior vice president of operations. This morning, we will review our second quarter financial results along with our current outlook for the business. Once we've concluded our prepared remarks, we will open the session of 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 can cause actual results to differ in which are referred to as cautionary statements and are our express 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 their entirety as such cautionary statements. Our annual report on Form 10-K for the fiscal year ended September 27, 2025, and our Form 10-Q for the period ended March 28, which will be filed by the end of business today, contain additional disclosure regarding forward-looking statements and risk factors. Copies may be obtained by contracting partnership or SEC. Certain non-GAAP measures will be discussed on this call. We have provided a description of why these 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. 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 Stavala for some opening remarks.

Mike? Thanks, Evan. Good morning. Thank you all for joining us today. The fiscal 2020 second quarter was another solid quarter for suburban propane. Our core propane business performed extremely well in a very challenging heating season. We made great progress stabilizing production, and advancing our expansion projects in our renewable natural gas business. And with our excess cash flows from operations, we continue to reduce our total outstanding debt. With respect to our propane operations, this year's heating season was a tale of two halves. The eastern half of our footprint experienced some of the most sustained, colder temperatures in the heart of the heating season than we've experienced in decades, along with several harsh winter storms. Our western half, on the other hand, reported near-record warm temperatures throughout most of the winter. Where we got weather, customer demand surged, and our teams worked tirelessly to safely and reliably meet the needs of our customers, many times in some very harsh weather with challenging road conditions. Volumes in our eastern territories were approximately 3% higher than the prior year second quarter, on average heating degree days that were 3% colder than the same period. In the west, volumes were approximately 10% lower on average heat in three days that was 17% warmer. As always, our operating personnel were well prepared to manage the surge in demand in our eastern markets, supplemented by resources redeployed from certain locations in our western territories to provide the additional support. And I am so proud of how our teams responded to meet our customers' needs under these conditions. while also maintaining their focus on our customer-based growth and retention initiatives. In addition to solid volume performance, we effectively managed selling prices amid a volatile commodity price environment influenced in March by the conflict in the Middle East, while also maintaining disciplined expense control. In our renewable natural gas operation, average daily P3 RNG injection during the second quarter of fiscal 2026 increased 16% compared to the prior sequential quarter and more than 12% compared to the prior year second quarter, driven by improved facility uptime and the benefits of our capital investments and process improvements that we have implemented since our acquisition of our anaerobic digestive facility in Stanfield, Arizona. Additionally, with our new anaerobic digestive facility in upstate New York, and our gas upgrading system at our facility in Columbus, Ohio, both of which remain on schedule for completion during the second half of fiscal 2026, we expect to add approximately 200,000 MMVTUs of annual production to our R&E platform. We are also pursuing opportunities to increase feedstock intake for both manure and food waste at the Stanfield facility in order to take advantage of additional production capacity at the plant. While environmental credit values, particularly California LCFS prices, have been depressed over the past couple of years, we are encouraged by the regulatory steps taken by the California Air Resources Board to create a better balance in the supply-demand equation for environmental credits, which is starting to favorably impact LCFS credit values. We are also pleased to see the Treasury release draft regulations in February 2026, that favorably addressed ambiguities in previous guidance related to the eligibility to earn production tax credits, or PTCs, under Section 45Z of the Internal Revenue Code as promulgated in the Inflation Reduction Act. The One Big Beautiful Bill Act also extended the window for PTCs by two years until December of 2029. During the second quarter of fiscal 2026, We recognize $3.5 million of PTCs earned on D3 RNG injections at our Stanford facility for the period from January 2025 through March 2026. And we continue to earn PTCs on production going forward. As D3 production at our upstate New York facility comes online, we expect to be eligible to earn PTCs for RNG injected from that facility as well. So for the second quarter of fiscal 2026, adjusted EBITDA of $175.3 million was essentially flat for the prior year. And combined with our fiscal first quarter results, adjusted EBITDA totaled $258.7 million for the first half of the fiscal year. That's an increase of $8.4 million, or 3.4%, compared to the first two quarters of the prior year. And with another quarter of strong operating performance, and with capital expenditures for our R&G facilities that are nearing completion. We used excess cash flow generated during the second quarter to reduce our total outstanding debt by more than $64 million. We remain disciplined in our capital allocation, balancing investments in the growth of our core propane business and renewable energy platform, with preserving balance sheet strength and flexibility in support of our long-term strategic growth initiatives and for enhancing unit holder value. In a moment, I'll come back for some closing remarks. However, let me turn the call over to Mike Coogland to discuss the second quarter results in more detail. Mike.