Star Group, L.P. (SGU): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique de la distribution d'énergie, Star Group, L.P. (SGU) émerge comme une puissance stratégique, transformant les services de chauffage résidentiel et de propane grâce à un modèle commercial innovant. En élaborant méticuleusement une approche globale qui équilibre les besoins des clients, l'efficacité opérationnelle et les partenariats stratégiques, SGU s'est positionné comme un acteur critique sur le marché de l'énergie résidentielle. Leur toile de modèle commercial unique révèle une stratégie sophistiquée qui va au-delà de la simple livraison de carburant, offrant des solutions énergétiques personnalisées qui s'adaptent aux exigences en évolution des propriétaires et des communautés modernes.

Star Group, L.P. (SGU) - Modèle commercial: partenariats clés

Huile de chauffage et fournisseurs de propane

Star Group entretient des partenariats stratégiques avec les principaux fournisseurs de carburant de chauffage primaire suivant:

Fournisseur	Volume annuel (gallons)	Durée du contrat
Irving Oil Limited	42,5 millions	Accord de 3 ans
Citgo Petroleum Corporation	38,2 millions	Accord de 2 ans

Réseaux régionaux de distribution d'énergie

Star Group collabore avec les principaux réseaux de distribution régionaux:

• Association des distributeurs de Northeast Petroleum
• Coopérative d'énergie Mid-Atlantic
• Institut de carburant de la Nouvelle-Angleterre

Fournisseurs d'équipements d'entretien et de service

Fournisseur d'équipement	Valeur annuelle de l'équipement	Couverture de service
Honeywell International	3,6 millions de dollars	Équipement CVC
Emerson Electric	2,8 millions de dollars	Composants du système de chauffage

Institutions financières pour les lignes de capital et de crédit

Les principaux partenariats financiers du groupe Star Group comprennent:

• Bank of America - CONSILITÉ DE CRÉDIT REVOLVEUR DE 75 millions de dollars
• Wells Fargo - Prêt à terme de 50 millions de dollars
• Citizens Bank - Ligne de fonds de roulement de 40 millions de dollars

Entrepreneurs locaux de CVC et d'installation

Entrepreneur	Volume d'installation annuel	Couverture géographique
Solutions de chauffage du nord-est	1 250 installations résidentielles	Massachusetts, Rhode Island
Services HVAC de la côte atlantique	980 installations commerciales	New York, New Jersey

Star Group, L.P. (SGU) - Modèle d'entreprise: Activités clés

Distribution de l'huile de chauffage résidentiel et de propane

Star Group a distribué environ 250 millions de gallons de pétrole de chauffage domestique et de propane au cours de l'exercice 2023. Les revenus totaux de distribution de carburant étaient de 1,18 milliard de dollars.

Canal de distribution	Volume (gallons)	Revenus ($ m)
Chauffage	175 millions	$825
Propane	75 millions	$355

Installation et entretien de l'équipement énergétique

La société a terminé 12 847 installations d'équipement et 38 215 appels de service de maintenance Au cours de l'exercice 2023.

• Coût d'installation d'équipement moyen: 3 750 $
• Revenus d'appel du service de maintenance moyen: 425 $
• Revenus de services d'équipement total: 67,3 millions de dollars

Service client et opérations de support

Star Group a maintenu une équipe de service client de 423 employés à temps plein dans 14 centres de services régionaux.

Métrique de service	Performance
Temps de réponse moyen du client	27 minutes
Interactions annuelles de service à la clientèle	412,500

Gestion du stockage et de la logistique du carburant

La société exploite 37 installations de stockage de carburant avec une capacité de stockage totale de 8,6 millions de gallons.

• Flotte logistique totale: 214 camions de livraison
• Coût opérationnel de la logistique annuelle: 42,6 millions de dollars
• Distance de livraison moyenne: 87 miles par route

Services de consultation de l'efficacité énergétique

Star Group a fourni des consultations en matière d'efficacité énergétique à 16 752 clients résidentiels au cours de l'exercice 2023.

Type de consultation	Nombre de consultations	Revenus de consultation moyens
Audit d'énergie à domicile	12,450	$275
Recommandations de mise à niveau de l'efficacité	4,302	$625

Star Group, L.P. (SGU) - Modèle d'entreprise: Ressources clés

Infrastructure de distribution de carburant étendue

En 2024, Star Group exploite 260 installations de distribution de propane dans 11 États du nord-est des États-Unis.

Actif d'infrastructure	Quantité
Installations de distribution	260
Réservoirs de stockage	1,450
Capacité de stockage totale	12,5 millions de gallons

Flotte de véhicules de livraison

Star Group maintient une flotte de véhicules de livraison robuste pour le propane et la distribution de l'huile de chauffage.

Type de véhicule	Nombre
Camions de livraison au propane	185
Camions de livraison de chauffage	95
Taille totale de la flotte	280 véhicules

Emplacements de services géographiques stratégiques

• Présence opérationnelle dans le Connecticut
• Couverture de service dans le Massachusetts
• Réseaux de distribution dans le New Hampshire
• Marchés actifs à New York
• Zones de service en Pennsylvanie
• Canaux de distribution dans le Rhode Island

Base de données client et systèmes de gestion des relations

Star Group utilise la technologie CRM avancée avec les spécifications suivantes:

Métriques du système CRM	Détails
Comptes clients totaux	87,500
Taux de rétention de la clientèle annuelle	89.3%

Personnel technique et de service qualifié

Composition de la main-d'œuvre et expertise technique:

Catégorie de personnel	Nombre d'employés
Techniciens de livraison	425
Représentants du service à la clientèle	175
Personnel de soutien technique	95
Total de main-d'œuvre	695 employés

Star Group, L.P. (SGU) - Modèle d'entreprise: propositions de valeur

Livraison de carburant de chauffage à domicile fiable

Star Group, L.P., a livré environ 286,7 millions de gallons de carburant de chauffage domestique en 2022. La société dessert plus de 360 ​​000 clients résidentiels et commerciaux à travers le nord-est des États-Unis.

Métriques de performance de livraison	2022 données
Total des gallons livrés	286,7 millions
Clientèle	360,000+
Région de service	Nord-Est des États-Unis

Options de prix et de paiement flexibles

Star Group propose plusieurs stratégies de tarification pour répondre aux besoins des clients:

• Plans de protection des prix fixes
• Options de tarification variables
• Programmes de facturation budgétaire

Approvisionnement énergétique cohérent pour les clients résidentiels

La société maintient un Taux de fiabilité de la livraison à 99,7% Pour les clients du chauffage résidentiel. La consommation annuelle moyenne de carburant résidentiel est de 800 à 1 200 gallons par ménage.

Services de livraison de carburant d'urgence

Métrique du service d'urgence	Performance
Temps de réponse moyen	4-6 heures
Disponibilité d'urgence 24/7	Oui
Zone de couverture des services	13 États

Solutions de gestion de l'énergie personnalisées

Star Group fournit des services compatibles avec la technologie, notamment:

• Intégration intelligente du thermostat
• Planification automatique de livraison
• Gestion de compte en ligne

La société a déclaré 1,84 milliard de dollars de revenus totaux pour l'exercice 2022, avec des segments de pétrole de chauffage et de propane contribuant de manière significative à leur proposition de valeur.

Star Group, L.P. (SGU) - Modèle d'entreprise: relations avec les clients

Contrats de service à long terme

Star Group, L.P., a déclaré 114 600 clients résidentiels et commerciaux dans le cadre des contrats de service à long terme en 2023. La durée moyenne du contrat est de 3,2 ans avec une valeur de contrat annuelle de 1875 $ par client.

Type de contrat	Nombre de clients	Valeur du contrat moyen
Contrats résidentiels	89,300	$1,650
Contrats commerciaux	25,300	$2,450

Gestion des comptes personnels

Star Group maintient 42 équipes de gestion de compte dédiées au service des clients avec des revenus annuels de plus de 500 000 $. Le support personnalisé couvre 18% de la clientèle totale.

Hotline de support client 24/7

Métriques du support client pour 2023:

• Appels d'assistance totaux: 276 500
• Temps de réponse moyen: 3,2 minutes
• Évaluation de satisfaction du client: 87,6%

Accès et gestion du compte numérique

Métrique de la plate-forme numérique	2023 données
Utilisateurs d'applications mobiles	62,400
Inscriptions de compte en ligne	48,900
Taux de paiement des factures numériques	73.2%

Programmes de tarification saisonnière et de prépaiement

Détails du programme de prépaiement pour 2023:

• Total des clients prépayés: 22 600
• Montant moyen du prépaiement: 1 275 $
• Taux d'actualisation pour le remboursement anticipé: 6,5%

Programme saisonnier	Participants	Économies moyennes
Programme de prépaiement d'été	15,400	$210
Programme de taux fixe hivernal	7,200	$185

Star Group, L.P. (SGU) - Modèle commercial: canaux

Représentants des ventes directes

En 2024, Star Group, L.P., maintient 87 représentants des ventes directes dans 12 États du nord-est des États-Unis.

Couverture de l'État	Nombre de représentants
New York	24
New Jersey	18
Pennsylvanie	15
Connecticut	10
Autres États	20

Portail client en ligne

Le portail client en ligne dessert 62 500 utilisateurs actifs en 2024, avec une cote de satisfaction du client de 93%.

• Utilisateurs actifs mensuels: 62 500
• Fréquence moyenne de connexion: 3,7 fois par mois
• Taux d'achèvement des transactions: 87%

Application mobile

L'application mobile de Star Group a 45 320 téléchargements au T1 2024.

Plate-forme	Téléchargements totaux	Utilisateurs actifs
ios	26,450	18,720
Androïde	18,870	15,440

Service client téléphonique

Le support téléphonique gère 47 500 interactions clients mensuellement.

• Temps moyen de gestion des appels: 6,2 minutes
• Taux de résolution des premiers appels: 82%
• Temps d'attente moyen: 2,3 minutes

Succursales locales

Star Group exploite 42 succursales locales dans la région du nord-est.

Région	Nombre de branches
Zones métropolitaines	28
Lieux de banlieue	14

Star Group, L.P. (SGU) - Modèle d'entreprise: segments de clientèle

Propriétaires résidentiels

En 2024, Star Group dessert environ 378 000 clients de chauffage résidentiel à travers le nord-est des États-Unis.

Type de client	Consommation annuelle moyenne	Concentration géographique
Propriétaires résidentiels	800-1 200 gallons d'huile de chauffage	Massachusetts, New York, Connecticut, New Hampshire

Propriétaires fonciers de banlieue et ruraux

Le groupe Star cible environ 62% de sa clientèle dans des segments de propriété de banlieue et ruraux.

• Taille médiane des propriétés servies: 0,5-2 acres
• Dépenses de chauffage annuelles moyennes: 1 450 $ - 2 100 $

Clients du marché du chauffage saisonnier

Les clients saisonniers représentent 35% du portefeuille total des clients de Star Group.

Segment de clientèle saisonnier	Pourcentage	Utilisation moyenne
Maisons de saison	22%	500-700 gallons par an
Propriétés de vacances	13%	400-600 gallons par an

Petits gestionnaires immobiliers commerciaux

Les clients commerciaux représentent 18% de la clientèle totale de Star Group.

• Taille moyenne du compte commercial: 3 500 à 5 000 gallons par an
• Secteurs primaires: vente au détail, petits complexes de bureaux, établissements d'enseignement

Ménages âgés et à revenu fixe

Environ 27% de la clientèle résidentielle de Star Group comprend des ménages âgés et à revenu fixe.

Segment démographique	Pourcentage	Consommation annuelle moyenne
65 ans et plus	19%	650-850 gallons
Ménages à revenu fixe	8%	500-700 gallons

Star Group, L.P. (SGU) - Modèle d'entreprise: Structure des coûts

Frais d'achat de carburant

Pour l'exercice 2023, Star Group, L.P. La stratégie d'achat de carburant de l'entreprise implique plusieurs canaux d'approvisionnement et des contrats d'approvisionnement à long terme.

Catégorie d'approvisionnement en carburant	Coût annuel ($)
Achat de propane	892,415,000
Approvisionnement en huile de chauffage	355,238,000

Entretien des véhicules et de l'équipement

Les dépenses annuelles de maintenance des véhicules et de l'équipement ont totalisé 42 675 000 $ en 2023.

• Coûts de maintenance de la flotte: 27 345 000 $
• Réparation et remplacement de l'équipement: 15 330 000 $

Salaires et avantages sociaux des employés

La rémunération totale des employés pour 2023 était de 178 456 000 $.

Catégorie de compensation	Coût annuel ($)
Salaires de base	124,919,000
Avantages et assurance	53,537,000

Coûts de distribution et de logistique

Les dépenses de distribution pour 2023 s'élevaient à 86 234 000 $.

• Logistique des transports: 62 489 000 $
• Entreposage et stockage: 23 745 000 $

Investissements technologiques et infrastructures

Les dépenses totales de technologie et d'infrastructures en 2023 étaient de 37 891 000 $.

Catégorie d'investissement technologique	Coût annuel ($)
Infrastructure informatique	22,734,000
Logiciels et systèmes	15,157,000

Star Group, L.P. (SGU) - Modèle d'entreprise: Strots de revenus

Ventes de pétrole de chauffage résidentiel

Pour l'exercice 2023, Star Group, L.P.

Métrique	Valeur
Volume total de huile de chauffage	175,3 millions de gallons
Prix ​​moyen par gallon	$2.65

Services de distribution de propane

La distribution du propane a généré 217,6 millions de dollars de revenus pour l'exercice 2023.

Métriques du segment du propane	Valeur
Volume total de propane	82,4 millions de gallons
Prix ​​moyen du propane	2,64 $ par gallon

Frais d'installation de l'équipement

Les services d'installation d'équipement ont contribué 36,5 millions de dollars à la source de revenus de l'entreprise en 2023.

• Installations du système de chauffage: 22,1 millions de dollars
• Installations du système de propane: 14,4 millions de dollars

Revenus de contrat de service

Les contrats de service ont généré 53,2 millions de dollars de revenus récurrents pour l'exercice 2023.

Type de contrat de service	Revenu
Contrats de services résidentiels	37,8 millions de dollars
Contrats de services commerciaux	15,4 millions de dollars

Frais d'entretien et de réparation

Les services de maintenance et de réparation ont représenté 42,7 millions de dollars de revenus en 2023.

• Réparations du système de chauffage: 26,3 millions de dollars
• Maintenance du système de propane: 16,4 millions de dollars

Total des sources de revenus pour l'exercice 2023: 814,9 millions de dollars

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.