Suburban Propane partner Q3 revenue misses estimates due to unseasonably warm temperatures

Overview

• Suburban Propane Q3 revenue missed analyst expectations, adjusted EBITDA beat estimates

• Net loss for fiscal Q3 improved to $14.8 mln, compared to $17.2 mln last year

• Co reduced debt by $69 mln using cash flows and ATM program proceeds

Outlook

• Company focuses on increasing RNG injection at Arizona facility

• Suburban advancing capital projects in New York and Ohio

Result Drivers

• WARM TEMPERATURES - Unseasonably warm temperatures impacted propane demand, per CEO Michael A. Stivala

• DEBT REDUCTION - Co used excess cash flows and at-the-market (ATM) program proceeds to reduce debt by $69 mln

• RNG CHALLENGES - Lower prices for environmental attributes under Renewable Fuel Standard impacted renewable natural gas revenues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

• Wall Street's median 12-month price target for Suburban Propane Partners LP is $17.00, about 5.4% below its August 6 closing price of $17.92

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPnbrWyKwa