(SPH) Suburban Propane Partners - Ratings and Ratios

Suburban Propane Partners, L.P. (NYSE: SPH) operates as a diversified energy distribution company, primarily focusing on propane, renewable propane, fuel oil, and refined fuels across the United States. With a history dating back to 1945, the company has established itself as a reliable provider of essential energy products, serving residential, commercial, industrial, and agricultural customers.

Its business is segmented into four core areas: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. The Propane segment, which is the company’s largest, distributes propane for a wide range of applications, including space heating, water heating, cooking, and as a motor fuel for vehicles and industrial equipment. It also serves agricultural markets for tobacco curing, crop drying, and poultry brooding. Additionally, Suburban Propane engages in wholesale propane distribution to industrial users, further diversifying its revenue streams.

The Fuel Oil and Refined Fuels segment focuses on the retail distribution of fuel oil, diesel, kerosene, and gasoline, primarily for heating in homes and commercial buildings. This segment complements the company’s propane business, allowing it to offer a broader suite of energy solutions to its customers.

In the Natural Gas and Electricity segment, Suburban Propane markets these commodities to residential and commercial customers in the deregulated energy markets of New York and Pennsylvania. This segment represents the company’s push into adjacent energy markets, leveraging its existing customer base and distribution infrastructure.

The All Other segment rounds out the company’s offerings by selling, installing, and servicing home comfort equipment, such as whole-house heating products, air cleaners, humidifiers, and space heaters. This segment highlights Suburban Propane’s efforts to provide a comprehensive energy and home comfort solution to its customers.

Geographically, the company operates primarily on the east and west coasts of the United States, as well as parts of the Midwest and Alaska. This regional focus allows Suburban Propane to maintain a strong market presence and logistical efficiency. With a market capitalization of approximately $1.39 billion and a price-to-earnings ratio of 20.15, the company is positioned as a mid-sized player in the energy distribution sector. Its forward P/E of 9.83 suggests potential value for investors looking at future earnings growth.

Suburban Propane’s diversified product offerings, combined with its long-standing operational history and regional market dominance, make it an attractive option for investors seeking exposure to the energy distribution space. The company’s ability to adapt to changing energy demands, including its focus on renewable propane, further underscores its commitment to sustainability and long-term growth.

Ticker Symbol: SPH | Exchange: NYSE | Type: Common Stock | Country: United States | GICS Sub Industry: Gas Utilities

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