Suburban Propane Partners, L.P. (SPH) Stock Analysis

Suburban Propane Partners served approximately 1.0 million residential, commercial, industrial, and agricultural customers through roughly 750 locations in 42 states as of September 27, 2025, with operations concentrated along the U.S. east and west coasts, the Midwest, and Alaska. The partnership is the third-largest retail propane marketer in the country by gallons sold, operating three reportable segments — Propane, Fuel Oil and Refined Fuels, and Natural Gas and Electricity — plus a Suburban Renewable Energy platform investing in RNG, hydrogen, and low-carbon fuels. It sold approximately 400.5 million gallons of propane and 16.5 million gallons of fuel oil and refined fuels during fiscal 2025.

Suburban's propane revenue splits across seven customer markets, with 93% of fiscal 2025 gallons sold at retail — 43% residential, 39% commercial, 8% industrial, 6% government, and 4% agricultural — and the remaining 7% from risk-management and wholesale activity; no single customer reached 10% of propane or fuel oil revenue. Supply runs through roughly 45 wholesalers at about 140 points across the U.S. and Canada under mostly one-year contracts, but purchasing is far more concentrated than sales: Energy Transfer LP supplied approximately 30% of total propane purchases in fiscal 2025 and Targa Liquids Marketing and Trade LLC another 12%, with 85% of purchases sourced domestically and 100% from North America. The partnership manages propane price volatility through forward options and swap agreements under a formal Hedging and Risk Management Policy, and stores inventory at its owned Elk Grove, California facility and smaller sites to buffer seasonal demand swings.