Star Group, L.P. (SGU): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el mundo dinámico de la distribución de energía, Star Group, L.P. (SGU) surge como una potencia estratégica, transformando los servicios de calefacción y propano residenciales a través de un modelo de negocio innovador. Al crear meticulosamente un enfoque integral que equilibre las necesidades de los clientes, la eficiencia operativa y las asociaciones estratégicas, SGU se ha posicionado como un jugador crítico en el mercado de energía residencial. Su lienzo de modelo de negocio único revela una estrategia sofisticada que va más allá de la mera entrega de combustible, ofreciendo soluciones de energía personalizadas que se adaptan a las demandas en evolución de los propietarios y comunidades modernas.

Star Group, L.P. (SGU) - Modelo de negocios: asociaciones clave

Proveedores de aceite de calefacción y propano

Star Group mantiene asociaciones estratégicas con los siguientes proveedores de combustible de calefacción primario:

Proveedor	Volumen anual (galones)	Duración del contrato
Irving Oil Limited	42.5 millones	Acuerdo de 3 años
Citgo Petroleum Corporation	38.2 millones	Acuerdo de 2 años

Redes regionales de distribución de energía

Star Group colabora con redes de distribución regionales clave:

• Asociación de Distribuidores del Petróleo del Nordeste
• Cooperativa de energía del Atlántico medio
• Instituto de combustible de Nueva Inglaterra

Proveedores de equipos de mantenimiento y servicio

Proveedor de equipos	Valor de equipo anual	Cobertura de servicio
Honeywell International	$ 3.6 millones	Equipo HVAC
Emerson Electric	$ 2.8 millones	Componentes del sistema de calefacción

Instituciones financieras para líneas de capital y crédito

Las principales asociaciones financieras de Star Group incluyen:

• Bank of America - Centro de crédito rotativo de $ 75 millones
• Wells Fargo - Préstamo a plazo de $ 50 millones
• Banco de Ciudadanos - Línea de capital de trabajo de $ 40 millones

Contratistas locales de HVAC y instalación

Contratista	Volumen de instalación anual	Cobertura geográfica
Soluciones de calefacción del noreste	1.250 instalaciones residenciales	Massachusetts, Rhode Island
Servicios de HVAC de la costa atlántica	980 instalaciones comerciales	Nueva York, Nueva Jersey

Star Group, L.P. (SGU) - Modelo de negocio: actividades clave

Distribución de aceite de calefacción y propano residencial

Star Group distribuyó aproximadamente 250 millones de galones de aceite de calefacción en el hogar y propano en el año fiscal 2023. Los ingresos totales de distribución de combustible fueron de $ 1.18 mil millones.

Canal de distribución	Volumen (galones)	Ingresos ($ M)
Aceite de calefacción	175 millones	$825
Propano	75 millones	$355

Instalación y mantenimiento del equipo de energía

La compañía completada 12,847 instalaciones de equipos y 38,215 llamadas de servicio de mantenimiento En el año fiscal 2023.

• Costo promedio de instalación del equipo: $ 3,750
• Ingresos de llamadas de servicio de mantenimiento promedio: $ 425
• Ingresos totales de servicios de equipos: $ 67.3 millones

Servicio al cliente y operaciones de soporte

Star Group mantuvo un equipo de servicio al cliente de 423 empleados a tiempo completo en 14 centros de servicio regional.

Métrico de servicio	Actuación
Tiempo promedio de respuesta al cliente	27 minutos
Interacciones anuales de servicio al cliente	412,500

Almacenamiento de combustible y gestión de logística

La compañía opera 37 instalaciones de almacenamiento de combustible con una capacidad de almacenamiento total de 8.6 millones de galones.

• Flota Logística Total: 214 camiones de reparto
• Costo operativo anual de logística: $ 42.6 millones
• Distancia promedio de entrega: 87 millas por ruta

Servicios de consulta de eficiencia energética

Star Group proporcionó consultas de eficiencia energética a 16,752 clientes residenciales en el año fiscal 2023.

Tipo de consulta	Número de consultas	Ingresos de consulta promedio
Auditoría de energía en el hogar	12,450	$275
Recomendaciones de actualización de eficiencia	4,302	$625

Star Group, L.P. (SGU) - Modelo de negocios: recursos clave

Infraestructura extensa de distribución de combustible

A partir de 2024, Star Group opera 260 instalaciones de distribución de propano en 11 estados en el noreste de los Estados Unidos.

Activo de infraestructura	Cantidad
Instalaciones de distribución	260
Tanques de almacenamiento	1,450
Capacidad de almacenamiento total	12.5 millones de galones

Flota de vehículos de entrega

Star Group mantiene una flota de vehículos de entrega robusta para la distribución de propano y aceite de calefacción.

Tipo de vehículo	Número
Camiones de reparto de propano	185
Calefacción de camiones de entrega de aceite	95
Tamaño total de la flota	280 vehículos

Ubicaciones de servicios geográficos estratégicos

• Presencia operativa en Connecticut
• Cobertura de servicio en Massachusetts
• Redes de distribución en New Hampshire
• Mercados activos en Nueva York
• Áreas de servicio en Pensilvania
• Canales de distribución en Rhode Island

Base de datos de clientes y sistemas de gestión de relaciones

Star Group utiliza tecnología CRM avanzada con las siguientes especificaciones:

Métricas del sistema CRM	Detalles
Cuentas totales de clientes	87,500
Tasa anual de retención de clientes	89.3%

Personal técnico y de servicio especializado

Composición de la fuerza laboral y experiencia técnica:

Categoría de personal	Número de empleados
Técnicos de entrega	425
Representantes de servicio al cliente	175
Personal de apoyo técnico	95
Fuerza de trabajo total	695 empleados

Star Group, L.P. (SGU) - Modelo de negocio: propuestas de valor

Entrega confiable de combustible para calefacción para el hogar

Star Group, L.P. entregó aproximadamente 286.7 millones de galones de combustible para calefacción en el hogar en 2022. La compañía atiende a más de 360,000 clientes residenciales y comerciales en el noreste de los Estados Unidos.

Métricas de rendimiento de entrega	Datos 2022
Total de galones entregados	286.7 millones
Base de clientes	360,000+
Región de servicio	Noreste de los Estados Unidos

Opciones de precios y pago flexibles

Star Group ofrece múltiples estrategias de precios para satisfacer las necesidades del cliente:

• Planes de protección de precios fijos
• Opciones de precios variables
• Programas de facturación de presupuesto

Suministro de energía constante para clientes residenciales

La compañía mantiene un 99.7% Tasa de confiabilidad de entrega Para clientes de combustible de calefacción residencial. El consumo promedio de combustible residencial anual es de 800-1,200 galones por hogar.

Servicios de entrega de combustible de emergencia

Métrica de servicio de emergencia	Actuación
Tiempo de respuesta promedio	4-6 horas
Disponibilidad de emergencia 24/7	Sí
Área de cobertura de servicio	13 estados

Soluciones personalizadas de gestión de energía

Star Group proporciona servicios habilitados para la tecnología que incluyen:

• Integración de termostato inteligente
• Programación de entrega automática
• Administración de cuentas en línea

La compañía reportó $ 1.84 mil millones en ingresos totales para el año fiscal 2022, con segmentos de aceite de calefacción y propano que contribuyen significativamente a su propuesta de valor.

Star Group, L.P. (SGU) - Modelo de negocios: relaciones con los clientes

Contratos de servicio a largo plazo

Star Group, L.P. reportó 114,600 clientes residenciales y comerciales bajo contratos de servicio a largo plazo en 2023. La duración promedio del contrato es de 3.2 años con un valor de contrato anual de $ 1,875 por cliente.

Tipo de contrato	Número de clientes	Valor de contrato promedio
Contratos residenciales	89,300	$1,650
Contratos comerciales	25,300	$2,450

Gestión de cuentas personales

Star Group mantiene 42 equipos de gestión de cuentas dedicados que atienden a clientes con ingresos anuales de más de $ 500,000. El soporte personalizado cubre el 18% de la base total de clientes.

Línea directa de soporte al cliente 24/7

Métricas de atención al cliente para 2023:

• Llamadas de soporte total: 276,500
• Tiempo de respuesta promedio: 3.2 minutos
• Calificación de satisfacción del cliente: 87.6%

Acceso y gestión de cuentas digitales

Métrica de plataforma digital	2023 datos
Usuarios de aplicaciones móviles	62,400
Registros de cuentas en línea	48,900
Tasa de pago de facturas digitales	73.2%

Programas de precios estacionales y prepago

Detalles del programa de prepago para 2023:

• Total de clientes prepagos: 22,600
• Monto promedio de pago anticipado: $ 1,275
• Tasa de descuento para prepago: 6.5%

Programa estacional	Participantes	Ahorros promedio
Programa de prepago de verano	15,400	$210
Programa de tarifa fija de invierno	7,200	$185

Star Group, L.P. (SGU) - Modelo de negocios: canales

Representantes de ventas directas

A partir de 2024, Star Group, L.P. mantiene 87 representantes de ventas directas en 12 estados en el noreste de los Estados Unidos.

Cobertura estatal	Número de representantes
Nueva York	24
Nueva Jersey	18
Pensilvania	15
Connecticut	10
Otros estados	20

Portal de clientes en línea

El portal de clientes en línea atiende a 62,500 usuarios activos en 2024, con una calificación de satisfacción del cliente del 93%.

• Usuarios activos mensuales: 62,500
• Frecuencia de inicio de sesión promedio: 3.7 veces al mes
• Tasa de finalización de la transacción: 87%

Aplicación móvil

La aplicación móvil de Star Group tiene 45,320 descargas a partir del cuarto trimestre de 2024.

Plataforma	Descargas totales	Usuarios activos
iOS	26,450	18,720
Androide	18,870	15,440

Servicio al cliente telefónico

El soporte telefónico maneja 47,500 interacciones de los clientes mensualmente.

• Tiempo promedio de manejo de llamadas: 6.2 minutos
• Tasa de resolución de primera llamada: 82%
• Tiempo de espera promedio: 2.3 minutos

Ramas locales

Star Group opera 42 sucursales locales en la región del noreste.

Región	Número de ramas
Áreas metropolitanas	28
Ubicaciones suburbanas	14

Star Group, L.P. (SGU) - Modelo de negocios: segmentos de clientes

Propietarios residenciales

A partir de 2024, Star Group atiende a aproximadamente 378,000 clientes de calefacción residencial en el noreste de los Estados Unidos.

Tipo de cliente	Consumo anual promedio	Concentración geográfica
Propietarios residenciales	800-1,200 galones de aceite de calefacción	Massachusetts, Nueva York, Connecticut, New Hampshire

Propietarios de propiedades suburbanas y rurales

Star Group se dirige a aproximadamente el 62% de su base de clientes en segmentos de propiedades suburbanas y rurales.

• Tamaño mediano de la propiedad servido: 0.5-2 acres
• Gastos de calefacción anuales promedio: $ 1,450- $ 2,100

Clientes del mercado de calefacción estacional

Los clientes estacionales representan el 35% de la cartera total de clientes de Star Group.

Segmento de clientes estacionales	Porcentaje	Uso promedio
Casas de temporada	22%	500-700 galones anualmente
Propiedades de vacaciones	13%	400-600 galones anualmente

Pequeños administradores de propiedades comerciales

Los clientes comerciales constituyen el 18% de la base total de clientes de Star Group.

• Tamaño promedio de la cuenta comercial: 3,500-5,000 galones anualmente
• Sectores primarios: minorista, pequeños complejos de oficinas, instituciones educativas

Hogares de ancianos y de ingresos fijos

Aproximadamente el 27% de la base de clientes residenciales de Star Group comprende hogares de ancianos y de ingresos fijos.

Segmento demográfico	Porcentaje	Consumo anual promedio
Más de 65 años	19%	650-850 galones
Hogares de ingresos fijos	8%	500-700 galones

Star Group, L.P. (SGU) - Modelo de negocio: Estructura de costos

Gastos de adquisición de combustible

Para el año fiscal 2023, Star Group, L.P. informó costos totales de adquisición de combustible de $ 1,247,653,000. La estrategia de compra de combustible de la compañía implica múltiples canales de adquisición y contratos de suministro a largo plazo.

Categoría de adquisición de combustible	Costo anual ($)
Adquisición de propano	892,415,000
Adquisición de aceite de calentamiento	355,238,000

Mantenimiento de vehículos y equipos

Los gastos anuales de mantenimiento de vehículos y equipos totalizaron $ 42,675,000 en 2023.

• Costos de mantenimiento de la flota: $ 27,345,000
• Reparación y reemplazo de equipos: $ 15,330,000

Salarios y beneficios de los empleados

La compensación total de los empleados para 2023 fue de $ 178,456,000.

Categoría de compensación	Costo anual ($)
Salarios base	124,919,000
Beneficios y seguro	53,537,000

Costos de distribución y logística

Los gastos de distribución para 2023 ascendieron a $ 86,234,000.

• Logística de transporte: $ 62,489,000
• Almacenamiento y almacenamiento: $ 23,745,000

Inversiones de tecnología e infraestructura

El gasto total en tecnología e infraestructura en 2023 fue de $ 37,891,000.

Categoría de inversión tecnológica	Costo anual ($)
Infraestructura	22,734,000
Software y sistemas	15,157,000

Star Group, L.P. (SGU) - Modelo de negocios: flujos de ingresos

Ventas de aceite de calefacción residencial

Para el año fiscal 2023, Star Group, L.P. informó ingresos por ventas de petróleo de calefacción residencial de $ 464.9 millones.

Métrico	Valor
Volumen total de aceite de calentamiento	175.3 millones de galones
Precio promedio por galón	$2.65

Servicios de distribución de propano

La distribución de propano generó $ 217.6 millones en ingresos para el año fiscal 2023.

Métricas de segmento de propano	Valor
Volumen total de propano	82.4 millones de galones
Precio promedio de propano	$ 2.64 por galón

Tarifas de instalación de equipos

Los servicios de instalación de equipos contribuyeron con $ 36.5 millones al flujo de ingresos de la compañía en 2023.

• Instalaciones del sistema de calefacción: $ 22.1 millones
• Instalaciones del sistema de propano: $ 14.4 millones

Ingresos del contrato de servicio

Los contratos de servicio generaron $ 53.2 millones en ingresos recurrentes para el año fiscal 2023.

Tipo de contrato de servicio	Ganancia
Contratos de servicio residencial	$ 37.8 millones
Contratos de servicio comercial	$ 15.4 millones

Cargos de mantenimiento y reparación

Los servicios de mantenimiento y reparación representaron $ 42.7 millones en ingresos durante 2023.

• Reparaciones del sistema de calefacción: $ 26.3 millones
• Mantenimiento del sistema de propano: $ 16.4 millones

Flujos de ingresos totales para el año fiscal 2023: $ 814.9 millones

Star Group, L.P. (SGU) - Canvas Business Model: Value Propositions

You're looking at the core promises Star Group, L.P. makes to its customers, which are directly tied to their financial performance as a leading energy distributor and services provider.

Full-service, reliable home energy and equipment maintenance

Star Group, L.P. provides more than just fuel delivery; they install, maintain, and repair the heating and air conditioning equipment for their residential and commercial customers. This service component is a key part of their operational stability, generating a combined service/installation gross profit that rose approximately $0.6 million year-over-year for the third quarter of fiscal 2025. For the first nine months of fiscal 2025, the service and installation segment contributed meaningfully to the overall results as operational initiatives took hold.

The company serves customers across the Northeast and Mid-Atlantic U.S. regions. Their dual-revenue stream-product sales and service fees-is a defining characteristic of their value proposition.

Price protection plans to mitigate fuel cost volatility

To help customers manage the swings in energy costs, Star Group, L.P. uses derivative instruments, which are essentially price protection plans. The impact of these hedges shows up directly in the financials. For the first six months of fiscal 2025 (ending March 31, 2025), the company recorded an expense under its weather hedge contracts of $3.1 million. This contrasts with the prior-year period, which saw a benefit of $7.5 million under the weather hedge. For the full fiscal year 2026, Star Group has weather hedges in place totaling approximately $15 million.

Largest retail distributor of home heating oil in the U.S.

Star Group, L.P. believes it is the nation's largest retail distributor of home heating oil based upon sales volume. The volume of home heating oil and propane sold is a critical metric reflecting their market scale. For the first nine months of fiscal 2025 (ending June 30, 2025), the total volume of home heating oil and propane sold increased by 11.8 percent, reaching 262.6 million gallons. This volume growth, combined with higher per-gallon margins, drove an increase in Adjusted EBITDA of $28.2 million for the same nine-month period.

Here are the volume and revenue snapshots from the first three quarters of fiscal 2025:

Period	Total Revenue	Home Heating Oil & Propane Volume
Fiscal 2025 Q1 (3 months ended Dec 31, 2024)	$488.1 million	82.4 million gallons
Fiscal 2025 Q2 (3 months ended Mar 31, 2025)	$743.0 million	143.9 million gallons
Fiscal 2025 Q3 (3 months ended Jun 30, 2025)	$305.6 million	36.2 million gallons
First Nine Months of FY2025	$1.5 billion	262.6 million gallons

Commitment to cleaner fuels like Bioheat® fuel

Star Group, L.P. is providing customers with Bioheat® fuel, which is a blend of renewable biodiesel and ultra-low sulfur heating oil, as part of an environmental pledge to mitigate climate change and reach net-zero carbon emissions by 2050.

Localized, high-touch customer service model

The company supports its market position through a full-service approach, which includes selling and servicing heating and air conditioning equipment. This localized service is reinforced by strategic growth, having completed $126.5 million in acquisitions since February 1, 2024, to enhance their market presence. The company also supports shareholder returns, having raised its annual dividend by $0.05 to $0.74 per unit.

• The company serves more than 500,000 residential and commercial customers.
• The vision is to be the premier provider of energy services by delivering outstanding quality, value, and service.
• Net income for the first nine months of fiscal 2025 surged to $102.2 million.

Star Group, L.P. (SGU) - Canvas Business Model: Customer Relationships

You're looking at how Star Group, L.P. (SGU) keeps its customer base engaged, which is crucial for a business highly sensitive to weather conditions. Their approach blends traditional local service with a focus on recurring revenue streams.

Full-service contracts for predictable maintenance revenue are a core part of the Star Group, L.P. strategy. The company describes itself as a full service provider, installing, maintaining, and repairing the heating and air conditioning equipment for its customers. This service component helps stabilize revenue against the volatility of product sales. For the first nine months of fiscal 2025, the gross profit from service and installation increased by $4.8 million year-to-date. Of that increase, $2.1 million was due to initiatives in the base business. For the fiscal 2025 first quarter (three months ended December 31, 2024), unearned service contract revenue stood at $79,568 (in thousands).

The local branch presence fosters long-term customer loyalty by serving customers across the Northeast and Mid-Atlantic regions. Star Group, L.P. serves more than 405,000 residential and commercial customers. This local footprint supports their position as the nation's largest retail distributor of home heating oil based on sales volume.

For commercial customers, the model relies on deep engagement, though specific numbers on dedicated account managers for commercial customers aren't publicly detailed in the latest reports. The company does emphasize its full-service approach for both residential and commercial accounts.

The commitment to shareholders is evident in the high distribution yield of $0.74 per unit for investors. The Board raised the quarterly distribution to $0.185 per unit, which annualizes to $0.74. This represents a nearly 10-year high distribution yield of 6.3% as of September 2025, with a trailing payout ratio of 45%.

Regarding technology, there is an indication of exploration into selective use of AI in customer service interfaces. During the fiscal 2025 third quarter earnings call, an analyst specifically inquired about applications for AI, mentioning customer service as an obvious area. No concrete data on deployment or results for AI in customer service was provided in the available materials.

Here are the key financial metrics related to shareholder returns and service revenue:

Metric	Value (Latest Available)	Period/Context
Annual Distribution Per Unit	$0.74 USD	Fiscal 2025 Annualized
Quarterly Distribution Per Unit	18.5c USD	Latest Declared
Forward Distribution Yield	6.3%	As of September 2025
Trailing Twelve Month (TTM) Dividend Yield	6.07%	As of December 03, 2025
Payout Ratio	43.85%	Trailing Earnings
Service & Installation Gross Profit Increase (YTD)	$4.8 million	First 9 Months Fiscal 2025
Q3 Fiscal 2025 Service & Installation Gross Profit	$14 million	Q3 Fiscal 2025

The customer base relies on Star Group, L.P. for more than just fuel delivery. The company also sells and services heating and air conditioning equipment to its home heating oil and propane customers. The total customer count is more than 405,000.

The focus on service revenue growth is a clear operational priority, as shown by the year-to-date increase in gross profit:

• Total Service & Installation Gross Profit Increase (9M FY2025): $4.8 million
• Attributable to Acquisitions: $2.7 million
• Attributable to Base Business Initiatives: $2.1 million

The company's vision is to be the premier provider of energy services, which directly ties into these customer-facing elements. Finance: draft 13-week cash view by Friday.

Star Group, L.P. (SGU) - Canvas Business Model: Channels

You're looking at how Star Group, L.P. gets its energy products and services-heating oil, propane, and HVAC work-to its customer base. The channels are a mix of physical presence and digital tools, which is typical for a business this rooted in regional distribution.

Branded fleet of delivery trucks and service vehicles is the backbone here. While the exact count of the fleet isn't public in the latest filings, this physical network is what moves the product. The scale of their operation is suggested by the volumes they move. For instance, in the fiscal 2025 second quarter (ended March 31, 2025), the volume of home heating oil and propane sold hit 143.9 million gallons. This requires a substantial, dedicated logistics operation across their service areas in the Northeast and Mid-Atlantic U.S. regions.

The network of local service branches and call centers supports that fleet and handles the service/installation side of the business. This physical footprint is how they manage the roughly 404,600 full-service residential and commercial home heating oil and propane customers they served as of September 30, 2024. The service and installation gross profit is a key focus area, improving by about $0.6 million year-over-year in Q3 fiscal 2025. This local presence also supports the 61,700 customers they served on a delivery-only basis as of that same date.

For direct-to-consumer sales and service teams, the channel is integrated into the service/installation offering. Star Group, L.P. sells and services heating and air conditioning equipment directly to its core heating oil and propane customers, and to a lesser extent, to customers outside that base. The company also sells gasoline and diesel fuel to approximately 26,800 customers, which is another direct sales channel.

The move toward online portals for account management and ordering is definitely happening, though specific adoption rates aren't public. What we do know is that management emphasized continued progress in technology deployment. Specifically, for the third quarter of fiscal 2025, the company noted that AI was deployed in customer interfaces for selective use. This suggests a digital channel is being actively developed to streamline customer interactions beyond the traditional phone call.

For targeted marketing within existing operating footprint, the strategy seems focused on customer retention and growth through acquisitions. The company's growth is often driven by adding to its existing base, with $126.5 million of acquisition transactions completed as of the second quarter of fiscal 2025. Marketing efforts support both retaining the existing base, which saw net customer attrition that was "roughly flat" year-over-year in Q3 2025, and integrating new customers from these purchases.

Here's a look at some key operational metrics that illustrate the scale these channels manage, using data closest to late 2025:

Metric Category	Specific Metric	Latest Reported Value (FY2025)	Reporting Period End Date
Customer Reach	Full-Service H.O. & Propane Customers	404,600	September 30, 2024
Customer Reach	Delivery-Only Customers	61,700	September 30, 2024
Volume Channel Performance	H.O. & Propane Gallons Sold (Q2)	143.9 million gallons	March 31, 2025
Volume Channel Performance	H.O. & Propane Gallons Sold (Q1)	82.4 million gallons	December 31, 2024
Service Channel Performance	Service & Installation Gross Profit Change (YoY)	~$0.6 million improved	Q3 2025
Acquisition Channel Impact	Acquisition Spend YTD	$126.5 million	Q2 2025

The service component is definitely a distinct channel that runs parallel to the fuel delivery. You see this in how they report service and installation gross profit separately. The company's overall revenue for the trailing twelve months (TTM) as of December 2025 was $1.77 Billion USD.

The physical infrastructure supports the core product delivery, which is highly dependent on weather. For example, the Q1 fiscal 2025 volumes were driven by temperatures 4.1 percent colder than the prior year period. The channels must be flexible enough to handle these swings.

• The company operates under several core brands including Petro Home Services, SMO Energy, and Griffith Energy Services.
• The distribution network serves customers primarily in the Northeast and Mid-Atlantic U.S. regions.
• The company employed 3,039 individuals as of September 30, 2024, supporting these channel operations.
• The annual distribution per unit was raised to $0.74 per unit in fiscal 2025, showing a commitment to shareholder returns supported by channel performance.

Star Group, L.P. (SGU) - Canvas Business Model: Customer Segments

You're looking at the distinct groups Star Group, L.P. (SGU) serves, which is key to understanding their revenue engine. This isn't just about selling fuel; it's about managing a complex service and delivery network across specific US regions.

Residential homeowners in the Northeast and Mid-Atlantic U.S.

This group forms the core of the full-service offering, relying on Star Group, L.P. for consistent heating oil and propane supply, plus essential equipment maintenance.

• Geographic focus includes states like New York, New Jersey, Pennsylvania, and others in the Northeast and Mid-Atlantic U.S..
• As of September 30, 2024, the company served approximately 404,600 full-service residential and commercial home heating oil and propane customers.
• The New York City metropolitan area represented about 46% of customers as of September 30, 2020.

Small to mid-sized commercial businesses requiring heating fuel

Commercial entities require reliable bulk supply, often bundled with delivery-only options for other petroleum products like diesel and gasoline.

• The full-service customer count of 404,600 includes these commercial accounts.
• The company also sells diesel and gasoline to approximately 26,800 customers.
• Home heating oil and propane volume for the first six months of fiscal 2025 reached 226.3 million gallons.

Customers seeking full-service HVAC and energy solutions

This segment values the ancillary services that drive stickiness and higher margin contribution beyond simple fuel delivery. The service business is a clear growth driver.

• Service and installation gross profit for the fiscal 2025 first quarter was $6.9 million, up from $4.4 million in the prior year.
• For the fiscal 2025 third quarter, sales in the installations and services segment rose 8.2% compared to the prior-year period.
• The company also provides plumbing services in certain marketing areas, primarily to its existing heating oil and propane customer base.

Income-focused investors (Limited Partners)

These are the equity holders of Star Group, L.P., who are interested in the partnership's distributions and overall financial health. They are the ultimate owners of the common units.

Here's a look at the market context for these income-focused investors as of late 2025:

Metric	Value (As of Late 2025 Data)	Reference Period/Date
Share Price (NYSE: SGU)	$11.76 / share	November 19, 2025
Market Capitalization	$396.91 MM	November 19, 2025
Total Revenue (TTM)	$1.77 Billion USD	2025 (TTM)
Annual Dividend (Per Unit)	$0.74	Raised in Q2 FY2025
Hartree Partners, LP Stake	10.12%	Latest Filing Data
Bandera Partners LLC Stake	8.169%	Latest Filing Data

The structure shows that common units represent a 99.2% limited partner interest, with 41.5 million units outstanding as of November 30, 2020.

Star Group, L.P. (SGU) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Star Group, L.P.'s operations as of late 2025. For a distributor like Star Group, L.P., the cost of the product itself is the single biggest driver, followed closely by getting that product to the customer.

Wholesale product costs are highly variable, tied directly to commodity markets. For the fiscal 2025 first quarter (three months ended December 31, 2024), the wholesale product cost saw a significant decline of $0.4969 per gallon, which translates to an 18.4 percent drop compared to the prior-year period. By the second quarter of fiscal 2025 (three months ended March 31, 2025), the decline in wholesale product cost was $0.2887 per gallon, or 10.9 percent year-over-year. This fluctuation directly impacts selling prices, even as volumes increase.

For Labor costs for drivers and service technicians and Operating expenses for fleet maintenance and distribution, the public reporting lumps these into broader categories, making precise isolation difficult. However, we can see the underlying trend in the base business expenses. For the third quarter of fiscal 2025, expenses in the base business-excluding the impact of acquisitions and weather hedging-rose by just $2.2 million, representing a 0.7 percent increase. This suggests that while labor and fleet costs are a major component of the overall Delivery, branch and G&A expenses, the core, non-acquisition, non-hedging operational cost inflation was relatively modest at that point in the year.

The overall Delivery, branch and G&A expenses saw substantial increases due to external factors. In the second quarter of fiscal 2025, these expenses rose by $27 million year-over-year, with $10.6 million of that increase specifically attributed to the weather hedging program. In the third quarter of fiscal 2025, the year-over-year rise was $31.5 million, again with $10.6 million tied to the weather hedge.

M&A integration and transaction costs are visible through both the purchase price and the associated operating expense increases. Star Group, L.P. completed an acquisition in January 2025 for approximately $68 million before working capital adjustments. Since February 1, 2024, the company has completed transactions totaling $126.5 million. Furthermore, acquisition-related expenses hit the P&L; for instance, in the third quarter of fiscal 2025, acquisitions accounted for an increase in Delivery, branch and G&A expenses of $18.7 million year-over-year, and acquisition-related financing costs were $1 million higher than the prior year period.

Finally, the Weather hedge costs are a significant, managed expense. Management announced they have already set approximately $15 million of weather hedges for fiscal year 2026. Looking at fiscal 2025 performance, the second quarter recorded an expense of $3.1 million under the hedge contracts due to colder-than-expected weather, which compared to a $6.5 million credit in the prior-year second quarter. For the first nine months of fiscal 2025, the company recorded a $10.6 million increase in expense relating to the weather hedge contracts compared to the same period in fiscal 2024.

Here's a look at the key financial figures impacting the Cost Structure for the reported periods in fiscal 2025:

Cost Component	Metric/Period	Financial Amount/Rate
Wholesale Product Cost Change (Q1 FY2025 vs Prior Year)	Per Gallon Decline	$0.4969
Wholesale Product Cost Change (Q1 FY2025 vs Prior Year)	Percentage Decline	18.4 percent
Wholesale Product Cost Change (Q2 FY2025 vs Prior Year)	Per Gallon Decline	$0.2887
Wholesale Product Cost Change (Q2 FY2025 vs Prior Year)	Percentage Decline	10.9 percent
Base Business Operating Expense Increase (Q3 FY2025 YoY)	Absolute Increase	$2.2 million
Base Business Operating Expense Increase (Q3 FY2025 YoY)	Percentage Increase	0.7 percent
M&A Transaction Value (January 2025 Acquisition)	Transaction Price (Pre-W/C)	Approx. $68 million
Total M&A Completed (Since Feb 1, 2024)	Cumulative Value	$126.5 million
Weather Hedge Expense (Q2 FY2025)	Expense Recorded	$3.1 million
Weather Hedge Impact (9M FY2025 vs Prior Year)	Increase in Expense	$10.6 million
Weather Hedge Budget (FY2026)	Set Amount	Approx. $15 million

The Delivery, branch and G&A expenses, which contain labor and distribution overhead, showed a YoY increase of $27 million in Q2 FY2025 and $31.5 million in Q3 FY2025.

• Acquisitions added $7 million to expenses in Q2 FY2025.
• Acquisitions added $18.7 million to Delivery, branch and G&A expenses in Q3 FY2025 YoY.

Finance: draft 13-week cash view by Friday.

Star Group, L.P. (SGU) - Canvas Business Model: Revenue Streams

You're looking at how Star Group, L.P. actually brings in the money, which is key for understanding its stability, especially with commodity price swings. The revenue streams are pretty straightforward for a company this size, built on both physical product sales and ongoing service contracts.

The top-line number for Star Group, L.P. as of late 2025 shows a Total Trailing Twelve Month (TTM) revenue of $1.77 Billion USD. This is the total sales figure before you subtract any costs, so it gives you the scale of their operations.

The core of the business is the distribution of energy products, but the service side is also a meaningful contributor to the overall revenue mix. Here's a breakdown of the key revenue components, using recent figures to illustrate the relative size of each stream:

Revenue Category	Specific Stream	Illustrative Amount (Millions USD)
Product Sales	Home heating oil and propane	136.15M
Product Sales	Other petroleum products (Gasoline, Diesel)	80.01M
Service and Installation Fees	Equipment maintenance service contracts	36.89M
Service and Installation Fees	Equipment installations	33.32M
Service and Installation Fees	Billable call services	19.25M

The physical product sales-home heating oil, propane, gasoline, and diesel-are naturally the largest component, but you can see the service and installation fees provide a more stable, recurring element to the revenue base. That service revenue was a significant part of the business, with maintenance contracts alone bringing in tens of millions.

When we look at profitability, the Net income for the first nine months of FY2025 was $102.2 million. That's the bottom line after all operating costs, taxes, and interest are accounted for. It's important to remember that this figure is heavily influenced by how the company manages its commodity risk through hedging.

Speaking of risk management, Star Group, L.P. uses derivative instruments to manage exposure to price volatility in heating oil and propane. These instruments can result in gains or losses that impact reported earnings. For the first nine months of FY2025, the company recorded a favorable change in the fair value of derivative instruments of $20.2 million. This hedging benefit helped boost the net income figure you see above. Still, these gains can be volatile, as seen in the Q2 results where there was an unfavorable change.

You should keep an eye on these specific revenue drivers:

• Home heating oil and propane sales volume.
• The margin captured on product sales versus the wholesale cost.
• The growth rate of service and installation revenue streams.
• The impact, positive or negative, from derivative hedging activities.

Finance: draft 13-week cash view by Friday.