Star Group, L.P. (SGU): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da distribuição de energia, o Star Group, L.P. (SGU) surge como uma potência estratégica, transformando serviços de aquecimento residencial e propano por meio de um modelo de negócios inovador. Ao elaborar meticulosamente uma abordagem abrangente que equilibra as necessidades do cliente, a eficiência operacional e as parcerias estratégicas, a SGU se posicionou como um participante crítico no mercado de energia residencial. Seu modelo de modelo de negócios exclusivo revela uma estratégia sofisticada que vai além da mera entrega de combustível, oferecendo soluções de energia personalizadas que se adaptam às demandas em evolução dos proprietários e comunidades modernas.

Star Group, L.P. (SGU) - Modelo de negócios: Parcerias -chave

Aquecimento de óleo e fornecedores de propano

O Star Group mantém parcerias estratégicas com os seguintes fornecedores de combustível de aquecimento primário:

Fornecedor	Volume anual (galões)	Duração do contrato
Irving Oil Limited	42,5 milhões	Contrato de 3 anos
Corporação do Citgo Petroleum	38,2 milhões	Contrato de 2 anos

Redes regionais de distribuição de energia

O Star Group colabora com as principais redes de distribuição regional:

• Associação de Distribuidores de Petróleo do Nordeste
• Cooperativa de Energia Média do Atlântico
• Instituto de combustível da Nova Inglaterra

Provedores de equipamentos de manutenção e serviço

Provedor de equipamentos	Valor anual do equipamento	Cobertura de serviço
Honeywell International	US $ 3,6 milhões	Equipamento HVAC
Emerson Electric	US $ 2,8 milhões	Componentes do sistema de aquecimento

Instituições financeiras para linhas de capital e crédito

As principais parcerias financeiras do Star Group incluem:

• Bank of America - Linha de crédito rotativo de US $ 75 milhões
• Wells Fargo - Empréstimo a prazo de US $ 50 milhões
• Citizens Bank - Linha de capital de giro de US $ 40 milhões

HVAC local e contratados de instalação

Contratante	Volume anual de instalação	Cobertura geográfica
Soluções de aquecimento do nordeste	1.250 instalações residenciais	Massachusetts, Rhode Island
Serviços HVAC da Costa Atlântica	980 Instalações comerciais	Nova York, Nova Jersey

Star Group, L.P. (SGU) - Modelo de negócios: Atividades -chave

Distribuição de óleo de aquecimento residencial e propano

O Star Group distribuiu aproximadamente 250 milhões de galões de óleo de aquecimento doméstico e propano no ano fiscal de 2023. A receita total de distribuição de combustível foi de US $ 1,18 bilhão.

Canal de distribuição	Volume (galões)	Receita ($ m)
Óleo de aquecimento	175 milhões	$825
Propano	75 milhões	$355

Instalação e manutenção de equipamentos energéticos

A empresa concluída 12.847 instalações de equipamentos e 38.215 chamadas de serviço de manutenção no ano fiscal de 2023.

• Custo médio de instalação do equipamento: US $ 3.750
• Serviço de manutenção média Receita: $ 425
• Receita total de serviços de equipamentos: US $ 67,3 milhões

Operações de atendimento ao cliente e suporte

O Star Group manteve uma equipe de atendimento ao cliente de 423 funcionários em período integral em 14 centros de serviços regionais.

Métrica de serviço	Desempenho
Tempo médio de resposta ao cliente	27 minutos
Interações anuais de atendimento ao cliente	412,500

Gerenciamento de armazenamento e logística de combustível

A empresa opera 37 instalações de armazenamento de combustível com uma capacidade total de armazenamento de 8,6 milhões de galões.

• Frota total de logística: 214 caminhões de entrega
• Custo operacional anual de logística: US $ 42,6 milhões
• Distância média de entrega: 87 milhas por rota

Serviços de consulta de eficiência energética

O Star Group forneceu consultas de eficiência energética a 16.752 clientes residenciais no ano fiscal de 2023.

Tipo de consulta	Número de consultas	Receita média de consulta
Auditoria de energia em casa	12,450	$275
Recomendações de atualização de eficiência	4,302	$625

Star Group, L.P. (SGU) - Modelo de negócios: Recursos -chave

Extensa infraestrutura de distribuição de combustível

A partir de 2024, o Star Group opera 260 instalações de distribuição de propano em 11 estados no nordeste dos Estados Unidos.

Ativo de infraestrutura	Quantidade
Instalações de distribuição	260
Tanques de armazenamento	1,450
Capacidade total de armazenamento	12,5 milhões de galões

Frota de veículos de entrega

O Star Group mantém uma frota robusta do veículo de entrega para distribuição de óleo de propano e aquecimento.

Tipo de veículo	Número
Caminhões de entrega de propano	185
Aquecimento de caminhões de entrega de óleo	95
Tamanho total da frota	280 veículos

Locais de serviço geográfico estratégico

• Presença operacional em Connecticut
• Cobertura de serviço em Massachusetts
• Redes de distribuição em New Hampshire
• Mercados ativos em Nova York
• Áreas de serviço na Pensilvânia
• Canais de distribuição em Rhode Island

Banco de dados de clientes e sistemas de gerenciamento de relacionamento

O Star Group utiliza a tecnologia avançada de CRM com as seguintes especificações:

Métricas do sistema CRM	Detalhes
Total de contas de clientes	87,500
Taxa anual de retenção de clientes	89.3%

Pessoal técnico e de serviço qualificado

Composição da força de trabalho e experiência técnica:

Categoria de pessoal	Número de funcionários
Técnicos de entrega	425
Representantes de atendimento ao cliente	175
Equipe de suporte técnico	95
Força de trabalho total	695 funcionários

Star Group, L.P. (SGU) - Modelo de negócios: proposições de valor

Entrega de combustível de aquecimento doméstico confiável

O Star Group, L.P. entregou aproximadamente 286,7 milhões de galões de combustível de aquecimento doméstico em 2022. A empresa atende mais de 360.000 clientes residenciais e comerciais no nordeste dos Estados Unidos.

Métricas de desempenho de entrega	2022 dados
Galões totais entregues	286,7 milhões
Base de clientes	360,000+
Região de serviço	Nordeste dos Estados Unidos

Opções flexíveis de preços e pagamento

O Star Group oferece várias estratégias de preços para acomodar as necessidades dos clientes:

• Planos de proteção de preço fixo
• Opções de preços variáveis
• Programas de cobrança orçamentária

Fornecimento de energia consistente para clientes residenciais

A empresa mantém um 99,7% da taxa de confiabilidade da entrega Para clientes de combustível de aquecimento residencial. O consumo médio anual de combustível residencial é de 800 a 1.200 galões por família.

Serviços de entrega de combustível de emergência

Métrica de Serviço de Emergência	Desempenho
Tempo médio de resposta	4-6 horas
24/7 de disponibilidade de emergência	Sim
Área de cobertura de serviço	13 estados

Soluções personalizadas de gerenciamento de energia

O Star Group fornece serviços habilitados para tecnologia, incluindo:

• Integração inteligente do termostato
• Programação automática de entrega
• Gerenciamento de contas on -line

A empresa registrou US $ 1,84 bilhão em receita total para o ano fiscal de 2022, com segmentos de petróleo e propano que aquecem significativamente para sua proposta de valor.

Star Group, L.P. (SGU) - Modelo de Negócios: Relacionamentos do Cliente

Contratos de serviço de longo prazo

O Star Group, L.P. relatou 114.600 clientes residenciais e comerciais sob contratos de serviço de longo prazo em 2023. A duração média do contrato é de 3,2 anos, com um valor anual de contrato de US $ 1.875 por cliente.

Tipo de contrato	Número de clientes	Valor médio do contrato
Contratos residenciais	89,300	$1,650
Contratos comerciais	25,300	$2,450

Gerenciamento de contas pessoais

O Star Group mantém 42 equipes de gerenciamento de contas dedicadas que atendem aos clientes com receitas anuais acima de US $ 500.000. O suporte personalizado cobre 18% da base total de clientes.

24/7 de suporte ao cliente

Métricas de suporte ao cliente para 2023:

• Chamadas de suporte total: 276.500
• Tempo médio de resposta: 3,2 minutos
• Classificação de satisfação do cliente: 87,6%

Acesso e gerenciamento de conta digital

Métrica da plataforma digital	2023 dados
Usuários de aplicativos móveis	62,400
Registros de conta on -line	48,900
Taxa de pagamento da fatura digital	73.2%

Programas de preços e pré -pagamento sazonais

Detalhes do programa de pré -pagamento para 2023:

• Total de clientes pré -pagos: 22.600
• Valor médio de pré -pagamento: US $ 1.275
• Taxa de desconto para pré -pagamento: 6,5%

Programa sazonal	Participantes	Economia média
Programa de pré -pagamento de verão	15,400	$210
Programa de taxa fixa de inverno	7,200	$185

Star Group, L.P. (SGU) - Modelo de Negócios: Canais

Representantes de vendas diretas

A partir de 2024, o Star Group, L.P. mantém 87 representantes de vendas diretas em 12 estados no nordeste dos Estados Unidos.

Cobertura do estado	Número de representantes
Nova Iorque	24
Nova Jersey	18
Pensilvânia	15
Connecticut	10
Outros estados	20

Portal de clientes on -line

O portal de clientes on -line atende 62.500 usuários ativos em 2024, com uma classificação de satisfação de 93% do cliente.

• Usuários ativos mensais: 62.500
• Frequência de login médio: 3,7 vezes por mês
• Taxa de conclusão da transação: 87%

Aplicativo móvel

O aplicativo móvel do Star Group tem 45.320 downloads a partir do primeiro trimestre de 2024.

Plataforma	Downloads totais	Usuários ativos
iOS	26,450	18,720
Android	18,870	15,440

Atendimento ao cliente por telefone

O suporte telefônico lida com 47.500 interações com os clientes mensalmente.

• Tempo médio de manuseio de chamadas: 6,2 minutos
• Taxa de resolução de primeira ligação: 82%
• Tempo médio de espera: 2,3 minutos

Filiais locais

O Star Group opera 42 filiais locais em toda a região nordeste.

Região	Número de ramificações
Áreas metropolitanas	28
Locais suburbanos	14

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

Proprietários residenciais

A partir de 2024, o Star Group atende a aproximadamente 378.000 clientes de aquecimento residencial no nordeste dos Estados Unidos.

Tipo de cliente	Consumo médio anual	Concentração geográfica
Proprietários residenciais	800-1.200 galões de óleo de aquecimento	Massachusetts, Nova York, Connecticut, New Hampshire

Proprietários suburbanos e rurais

O Star Group tem como alvo aproximadamente 62% de sua base de clientes nos segmentos suburbanos e de propriedades rurais.

• Tamanho médio da propriedade servido: 0,5-2 acres
• Despesas médias de aquecimento anual: US $ 1.450- $ 2.100

Clientes do mercado de aquecimento sazonal

Os clientes sazonais representam 35% do portfólio total de clientes do Star Group.

Segmento de cliente sazonal	Percentagem	Uso médio
Casas sazonais	22%	500-700 galões anualmente
Propriedades de férias	13%	400-600 galões anualmente

Pequenos gerentes de propriedades comerciais

Os clientes comerciais constituem 18% da base total de clientes do Star Group.

• Tamanho médio da conta comercial: 3.500-5.000 galões anualmente
• Setores primários: varejo, pequenos complexos de escritórios, instituições educacionais

Famílias idosas e de renda fixa

Aproximadamente 27% da base de clientes residenciais do Star Group compreende idosos e famílias de renda fixa.

Segmento demográfico	Percentagem	Consumo médio anual
65 anos ou mais	19%	650-850 galões
Famílias de renda fixa	8%	500-700 galões

Star Group, L.P. (SGU) - Modelo de negócios: estrutura de custos

Despesas de aquisição de combustível

Para o ano fiscal de 2023, o Star Group, L.P. registrou custos totais de aquisição de combustível de US $ 1.247.653.000. A estratégia de compra de combustível da empresa envolve vários canais de compras e contratos de fornecimento de longo prazo.

Categoria de aquisição de combustível	Custo anual ($)
Compra de propano	892,415,000
Aquecimento da compra de óleo	355,238,000

Manutenção de veículos e equipamentos

As despesas anuais de manutenção de veículos e equipamentos totalizaram US $ 42.675.000 em 2023.

• Custos de manutenção da frota: US $ 27.345.000
• Reparação e substituição de equipamentos: US $ 15.330.000

Salários e benefícios dos funcionários

A compensação total dos funcionários para 2023 foi de US $ 178.456.000.

Categoria de compensação	Custo anual ($)
Salários da base	124,919,000
Benefícios e seguro	53,537,000

Custos de distribuição e logística

As despesas de distribuição de 2023 totalizaram US $ 86.234.000.

• Logística de transporte: US $ 62.489.000
• Armazenamento e armazenamento: US $ 23.745.000

Investimentos de tecnologia e infraestrutura

Os gastos totais de tecnologia e infraestrutura em 2023 foram de US $ 37.891.000.

Categoria de investimento em tecnologia	Custo anual ($)
Infraestrutura de TI	22,734,000
Software e sistemas	15,157,000

Star Group, L.P. (SGU) - Modelo de negócios: fluxos de receita

Vendas de óleo de aquecimento residencial

Para o ano fiscal de 2023, o Star Group, L.P. relatou receita de vendas de petróleo de aquecimento residencial de US $ 464,9 milhões.

Métrica	Valor
Volume total de óleo de aquecimento	175,3 milhões de galões
Preço médio por galão	$2.65

Serviços de distribuição de propano

A distribuição de propano gerou US $ 217,6 milhões em receita para o ano fiscal de 2023.

Métricas de segmento de propano	Valor
Volume total de propano	82,4 milhões de galões
Preço médio de propano	US $ 2,64 por galão

Taxas de instalação do equipamento

Os serviços de instalação de equipamentos contribuíram com US $ 36,5 milhões para o fluxo de receita da empresa em 2023.

• Instalações do sistema de aquecimento: US $ 22,1 milhões
• Instalações do sistema de propano: US $ 14,4 milhões

Receita de contrato de serviço

Os contratos de serviço geraram US $ 53,2 milhões em receita recorrente para o ano fiscal de 2023.

Tipo de contrato de serviço	Receita
Contratos de serviço residencial	US $ 37,8 milhões
Contratos de Serviço Comercial	US $ 15,4 milhões

Taxas de manutenção e reparo

Os serviços de manutenção e reparo representaram US $ 42,7 milhões em receita durante 2023.

• Reparos do sistema de aquecimento: US $ 26,3 milhões
• Manutenção do sistema de propano: US $ 16,4 milhões

Fluxos totais de receita para o ano fiscal de 2023: US $ 814,9 milhões

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.