Suburban Propane Prices $350 Million 6.5% Senior Notes Due 2035
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 08 2025
0mins
Should l Buy SPH?
Source: PRnewswire
- Financing Size: Suburban Propane announced the pricing of $350 million in 6.5% senior notes, expected to close on December 22, 2025, enhancing its capital structure to support future growth.
- Interest Payment Arrangement: The notes will pay interest semi-annually on June 15 and December 15, with the first payment scheduled for June 15, 2026, ensuring a stable cash flow for investors.
- Redemption Flexibility: Before December 15, 2028, Suburban Propane may redeem up to 35% of the notes using net proceeds from certain offerings, providing a flexible capital management strategy to adapt to market changes.
- Use of Proceeds: The net proceeds from this offering will be combined with borrowings under its revolving credit facility to redeem the outstanding $350 million of 5.875% senior notes, optimizing its debt structure to lower financing costs.
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Analyst Views on SPH
Wall Street analysts forecast SPH stock price to fall
1 Analyst Rating
0 Buy
0 Hold
1 Sell
Moderate Sell
Current: 20.010
Low
17.00
Averages
17.00
High
17.00
Current: 20.010
Low
17.00
Averages
17.00
High
17.00
No data
About SPH
Suburban Propane Partners, L.P. is a nationwide distributor of propane, renewable propane, renewable natural gas, fuel oil and related products and services, as well as a marketer of natural gas and electricity and investor in low carbon fuel alternatives. The Company's segments include propane, fuel oil and refined fuels, natural gas and electricity, and all other. The propane segment is engaged in the retail distribution of propane and renewable propane to residential, commercial, industrial, agricultural and government customers and, to a lesser extent, wholesale distribution to large industrial end users. The fuel oil and refined fuels segment is engaged in the retail distribution of fuel oil, diesel, kerosene and gasoline. The natural gas and electricity segment is engaged in the marketing of natural gas and electricity to residential and commercial customers in the deregulated energy markets of New York and Pennsylvania. The all other segment includes its service business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Suburban Propane (SPH) Q1 2026 Earnings Transcript
See More
Suburban Propane Q1 Earnings Miss Expectations
- Disappointing Earnings: Suburban Propane Partners reported a Q1 GAAP earnings per unit of $0.69, missing expectations by $0.02, indicating a decline in profitability that could undermine investor confidence.
- Revenue Decline: The company’s revenue of $370.39 million represents a year-over-year decrease of 0.8%, falling short of market expectations by $21.61 million, reflecting pressures from weak market demand and intensified competition.
- Debt Financing Initiative: Suburban Propane announced a private offering of $350 million in senior notes due 2035, aimed at optimizing its capital structure and providing funding support for future growth initiatives.
- Uncertain Market Outlook: While growth in 2025 is viewed as potentially anomalous, the ongoing poor financial performance may negatively impact the company's long-term strategy and market positioning.
See More
Suburban Propane Reports Q1 Net Income Growth
- Significant Net Income Growth: Suburban Propane reported a net income of $45.8 million for Q1 2026, translating to $0.69 per unit, which is a remarkable 135.5% increase from $19.4 million and $0.30 per unit in Q1 2025, indicating strong market performance and enhanced profitability.
- Adjusted EBITDA Improvement: The adjusted EBITDA for the first quarter reached $83.4 million, an increase of $8.1 million or 10.8% compared to the previous year, driven by increased sales volumes and effective cost management, reflecting ongoing operational efficiency improvements.
- Retail Propane Volume Growth: Retail propane sales for Q1 totaled 110.2 million gallons, up 4.2% year-over-year, primarily due to colder weather in the eastern U.S., demonstrating the company's flexibility and adaptability in responding to market demand fluctuations.
- Strategic Acquisitions and Refinancing: The company acquired two well-run propane businesses in California for $24 million and successfully refinanced $350 million of senior notes due 2027 at favorable rates, enhancing financial flexibility and laying the groundwork for future growth.
See More
Suburban Propane Reports Q1 Net Income Surge to $45.8 Million
- Significant Net Income Growth: Suburban Propane reported a net income of $45.8 million for Q1 2026, translating to $0.69 per unit, a substantial increase from $19.4 million and $0.30 per unit in Q1 2025, reflecting the company's robust market performance and enhanced profitability.
- Adjusted EBITDA Improvement: The adjusted EBITDA for the first quarter reached $83.4 million, an increase of $8.1 million or 10.8% compared to the previous year, primarily driven by increased sales volumes and effective cost management, indicating ongoing operational efficiency improvements.
- Retail Propane Volume Growth: Retail propane sales for Q1 totaled 110.2 million gallons, up 4.2% year-over-year, largely due to colder weather in the eastern U.S., demonstrating the company's enhanced capability to meet customer demand.
- Strategic Acquisitions and Refinancing: The company acquired two well-run propane businesses in California for $24 million and successfully refinanced $350 million of senior notes due 2027 at a 6.50% rate, enhancing financial flexibility to support future growth strategies.
See More
Suburban Propane to Announce Q1 Earnings on February 5
- Earnings Announcement Schedule: Suburban Propane Partners is set to release its Q1 2023 earnings report on February 5 before market open, with consensus EPS estimated at $0.75 and revenue expected to reach $392 million, reflecting a 5% year-over-year growth.
- Market Expectation Analysis: Analysts' earnings expectations for Suburban Propane indicate moderate growth, showcasing the company's ability to maintain profitability in a stable market environment despite facing industry challenges.
- Debt Financing Dynamics: Suburban Propane recently announced a private offering of $350 million senior notes due in 2035, aimed at optimizing its capital structure and providing funding for future investments.
- Ratings and Outlook: Seeking Alpha's Quant Rating on Suburban Propane Partners reflects a cautiously optimistic market sentiment regarding its future growth, although the anticipated growth in 2025 may be viewed as an aberration, the company is actively pursuing stable financial performance.
See More
Suburban Propane Partners (SPH) Declares $0.325 Quarterly Dividend with 6.62% Yield
- Quarterly Dividend Announcement: Suburban Propane Partners has declared a quarterly dividend of $0.325 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy.
- Yield Performance: The forward yield of 6.62% not only attracts income-seeking investors but also reflects the company's competitiveness in the current market environment.
- Shareholder Record Dates: The dividend will be payable on February 10, with a record date of February 3 and an ex-dividend date also set for February 3, ensuring shareholders receive their returns promptly.
- Debt Financing Plan: Suburban Propane has announced a private offering of $350 million in senior notes due 2035, aimed at optimizing its capital structure and supporting future growth strategies.
See More
Suburban Propane (SPH) Q1 2026 Earnings Transcript
See More
Suburban Propane Q1 Earnings Miss Expectations
- Disappointing Earnings: Suburban Propane Partners reported a Q1 GAAP earnings per unit of $0.69, missing expectations by $0.02, indicating a decline in profitability that could undermine investor confidence.
- Revenue Decline: The company’s revenue of $370.39 million represents a year-over-year decrease of 0.8%, falling short of market expectations by $21.61 million, reflecting pressures from weak market demand and intensified competition.
- Debt Financing Initiative: Suburban Propane announced a private offering of $350 million in senior notes due 2035, aimed at optimizing its capital structure and providing funding support for future growth initiatives.
- Uncertain Market Outlook: While growth in 2025 is viewed as potentially anomalous, the ongoing poor financial performance may negatively impact the company's long-term strategy and market positioning.
See More
Suburban Propane Reports Q1 Net Income Growth
- Significant Net Income Growth: Suburban Propane reported a net income of $45.8 million for Q1 2026, translating to $0.69 per unit, which is a remarkable 135.5% increase from $19.4 million and $0.30 per unit in Q1 2025, indicating strong market performance and enhanced profitability.
- Adjusted EBITDA Improvement: The adjusted EBITDA for the first quarter reached $83.4 million, an increase of $8.1 million or 10.8% compared to the previous year, driven by increased sales volumes and effective cost management, reflecting ongoing operational efficiency improvements.
- Retail Propane Volume Growth: Retail propane sales for Q1 totaled 110.2 million gallons, up 4.2% year-over-year, primarily due to colder weather in the eastern U.S., demonstrating the company's flexibility and adaptability in responding to market demand fluctuations.
- Strategic Acquisitions and Refinancing: The company acquired two well-run propane businesses in California for $24 million and successfully refinanced $350 million of senior notes due 2027 at favorable rates, enhancing financial flexibility and laying the groundwork for future growth.
See More
Suburban Propane Reports Q1 Net Income Surge to $45.8 Million
- Significant Net Income Growth: Suburban Propane reported a net income of $45.8 million for Q1 2026, translating to $0.69 per unit, a substantial increase from $19.4 million and $0.30 per unit in Q1 2025, reflecting the company's robust market performance and enhanced profitability.
- Adjusted EBITDA Improvement: The adjusted EBITDA for the first quarter reached $83.4 million, an increase of $8.1 million or 10.8% compared to the previous year, primarily driven by increased sales volumes and effective cost management, indicating ongoing operational efficiency improvements.
- Retail Propane Volume Growth: Retail propane sales for Q1 totaled 110.2 million gallons, up 4.2% year-over-year, largely due to colder weather in the eastern U.S., demonstrating the company's enhanced capability to meet customer demand.
- Strategic Acquisitions and Refinancing: The company acquired two well-run propane businesses in California for $24 million and successfully refinanced $350 million of senior notes due 2027 at a 6.50% rate, enhancing financial flexibility to support future growth strategies.
See More
Suburban Propane to Announce Q1 Earnings on February 5
- Earnings Announcement Schedule: Suburban Propane Partners is set to release its Q1 2023 earnings report on February 5 before market open, with consensus EPS estimated at $0.75 and revenue expected to reach $392 million, reflecting a 5% year-over-year growth.
- Market Expectation Analysis: Analysts' earnings expectations for Suburban Propane indicate moderate growth, showcasing the company's ability to maintain profitability in a stable market environment despite facing industry challenges.
- Debt Financing Dynamics: Suburban Propane recently announced a private offering of $350 million senior notes due in 2035, aimed at optimizing its capital structure and providing funding for future investments.
- Ratings and Outlook: Seeking Alpha's Quant Rating on Suburban Propane Partners reflects a cautiously optimistic market sentiment regarding its future growth, although the anticipated growth in 2025 may be viewed as an aberration, the company is actively pursuing stable financial performance.
See More
Suburban Propane Partners (SPH) Declares $0.325 Quarterly Dividend with 6.62% Yield
- Quarterly Dividend Announcement: Suburban Propane Partners has declared a quarterly dividend of $0.325 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy.
- Yield Performance: The forward yield of 6.62% not only attracts income-seeking investors but also reflects the company's competitiveness in the current market environment.
- Shareholder Record Dates: The dividend will be payable on February 10, with a record date of February 3 and an ex-dividend date also set for February 3, ensuring shareholders receive their returns promptly.
- Debt Financing Plan: Suburban Propane has announced a private offering of $350 million in senior notes due 2035, aimed at optimizing its capital structure and supporting future growth strategies.
See More
