Analyst Note| Andrew Bischof, CFA, CPA |
We are maintaining our $14.50 per unit fair value estimate for Suburban Propane Partners after the partnership reported that its propane, refined fuels, and energy marketing businesses generated $172 million in adjusted EBITDA for the 2021 fiscal second quarter, up sharply from $130.6 million in the same the year-ago period. Net income was $127.2 million compared with $77.4 million in the 2020 second quarter. We increased our full-year expectations, which did not have a material impact on our fair value estimate. Our long-term outlook remains unchanged. We are reaffirming our no-moat and negative moat trend ratings.