Suburban Propane Partners Acquires Equilibrium Capital Group’s Bioenergy Business
January 6, 2023
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Suburban Propane Partners ($NYSE:SPH), LP is a publicly traded master limited partnership listed on the New York Stock Exchange. It is engaged in the retail marketing and distribution of propane and other products related to propane such as heating oil, natural gas, diesel fuel, kerosene, and related products and services. Suburban Propane Partners has recently announced the completion of its acquisition of Equilibrium Capital Group’s Bioenergy business. The agreement includes the purchase of certain operating assets, including seven industrial-scale biomass energy facilities located in four states across the United States. This acquisition is expected to strengthen Suburban Propane’s presence in the bioenergy sector and increase its production capacity. The company also expects this acquisition to result in increased cost savings due to improved operational efficiencies.
Additionally, the acquisition is expected to increase the company’s market presence in the renewable energy sector. The acquired assets will provide Suburban Propane with access to multiple revenue streams, such as renewable fuels, electricity, and renewable energy certificates. This acquisition marks a significant milestone for Suburban Propane Partners as it seeks to diversify its portfolio and further capitalize on the growth in the renewable energy sector. The terms of the agreement have not been disclosed. This investment is expected to help facilitate Suburban Propane’s ongoing efforts to become a leader in the bioenergy sector.
Stock Price
The news has so far been met with mostly positive reactions. On Thursday, Suburban Propane Partners’ stock opened at $15.4 and closed at $15.2, a dip of 0.9% from its previous closing price of $15.3. The acquisition is aimed at further strengthening Suburban Propane Partners’ presence in the energy sector, particularly in the bioenergy space. Suburban Propane Partners already has a strong foothold in the energy market, and this move will help them expand their reach even further. The acquisition is expected to provide substantial financial and operational benefits to Suburban Propane Partners, as well as their customers. Suburban Propane Partners is confident that this acquisition will be beneficial for their business in the long run.
They have already invested heavily in infrastructure and personnel to ensure that the transition will be smooth and successful. With their strong commitment to providing customers with quality energy solutions, Suburban Propane Partners is confident that this acquisition will help them further strengthen their position in the energy market. Overall, the news of Suburban Propane Partners’ acquisition of Equilibrium Capital Group’s Bioenergy Business has been met with mostly positive reactions. The company is hopeful that this move will help them expand their reach even further in the energy sector, while providing customers with improved services and quality products. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SPH. More…
| Total Revenues | Net Income | Net Margin |
| 1.5k | 139.71 | 9.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SPH. More…
| Operations | Investing | Financing |
| 216.91 | -34.08 | -189.81 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SPH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.12k | 1.55k | 8.99 |
Key Ratios Snapshot
Some of the financial key ratios for SPH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.8% | 11.0% | 13.4% |
| FCF Margin | ROE | ROA |
| 11.7% | 22.2% | 5.9% |
VI Analysis
SUBURBAN PROPANE PARTNERS’ long-term potential can be evaluated through an analysis of its fundamentals. The VI App provides this analysis in an easy-to-understand format. Using the VI Risk Rating, SUBURBAN PROPANE PARTNERS is a low-risk investment in terms of both financial and business aspects. This means that the company is unlikely to experience any major losses due to bad financial decisions or macroeconomic conditions. The VI App has also detected two risk warnings in the income statement and balance sheet of SUBURBAN PROPANE PARTNERS. These warnings are only visible to registered users, so users who are considering investing in the company should register and take a closer look. In general, however, the company has a good risk profile, making it an attractive option for those looking for a safe, long-term investment. More…
VI Peers
The company faces competition from other large propane companies such as Atmos Energy Corp, Spire Inc and Unimot SA, who all strive to provide competitively priced and efficient services to their respective customers.
– Atmos Energy Corp ($NYSE:ATO)
Atmos Energy Corp is an integrated natural gas company that provides natural gas distribution and related services to over three million residential, commercial, public authority, and industrial customers in eight states. As of 2023, Atmos Energy Corp had a market cap of 15.35 billion and a Return on Equity (ROE) of 6.44%. The market cap of a company is the total value of its outstanding shares of stock and is calculated by multiplying the number of outstanding shares by the current market price of the stock. Atmos Energy Corp’s market cap indicates that it is a large and stable company that has been able to generate consistent returns for its investors. The company’s ROE is a measure of how efficiently it is using its shareholders’ investments to generate profits. Atmos Energy Corp’s 6.44% ROE indicates that it is using its resources to generate a relatively stable and consistent return for its investors.
– Spire Inc ($NYSE:SR)
Spire Inc is a leading energy services company that operates natural gas infrastructure, utility services, and renewable energy solutions in the United States. With a market cap of 3.68B as of 2023, Spire Inc is well positioned to continue to capitalize on energy markets for the foreseeable future. Its Return on Equity (ROE) has also been strong at 8.82%, indicating that the company is generating a healthy return for shareholders. This healthy return has allowed the company to make strategic investments in new technologies and services that have kept it competitive in the ever-changing energy market.
– Unimot SA ($LTS:0ROK)
Unimot SA is a Polish fuel and energy company that operates in the retail fuel and energy sector. The company has a market capitalization of 746M as of 2023, which ranks it among the largest publicly-traded companies in Poland. Unimot SA has also maintained a strong Return on Equity (ROE) of 37.34%, a sign of the company’s strong financial performance. Unimot SA has been able to generate strong returns for its stockholders thanks to its successful business model and efficient management. The company is well-positioned to continue delivering growth in the years to come.
Summary
Suburban Propane Partners recently acquired Equilibrium Capital Group’s Bioenergy business, signaling a positive outlook for the company. This acquisition is expected to bolster the company’s portfolio and provide an additional revenue stream. As a result, Suburban Propane Partners has seen an increase in stock prices and investor confidence. With the acquisition of the Bioenergy business, Suburban Propane Partners is well-positioned to benefit from the growing demand for renewable energy sources.
Additionally, the company has made significant investments in its infrastructure and operations, which have enabled it to become a leader in the propane industry. With its strong financial position, experienced management team, and ambitious growth plans, Suburban Propane Partners is an attractive investment opportunity for those looking to invest in a reliable and profitable company.
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