Good morning, ladies and gentlemen, and welcome to the Suburban Propane Partners Fourth Quarter and Fiscal Year-End Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Thursday, November 14, 2024. I would now like to turn the conference over to Davin D’Ambrosio, Vice President and Treasurer. Please go ahead. Davin D’Ambrosio: Thank you, Emily. Good morning, everyone. Thank you for joining us this morning for our fiscal 2024 fourth quarter and full year earnings conference call. Joining me this morning are Mike Stivala, our President and Chief Executive Officer; Mike Kuglin, Chief Financial Officer; Steve Boyd, Chief Operating Officer; and Alex Centeno, our Senior Vice President of Operations. This morning, we will review our fourth quarter 2024 fourth quarter and full year financial results, along with our current outlook for the business. Once we’ve concluded our prepared remarks, we will open the session to questions. Our conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, relating to the partnership’s future business expectations and predictions and financial condition and results of operations. These forward-looking statements involve certain risks and uncertainties. We’ve listed some of the important factors that could cause actual results to differ materially from those discussed in such forward-looking statements, which are referred to as cautionary statements in our earnings press release, which can be viewed on our website at suburbanpropane.com. All subsequent written and oral forward-looking statements attributable to the partnership or persons acting on its behalf are expressly qualified in their entirety by such cautionary statements. Our annual report on Form 10-K for the fiscal year ended September 28, 2024, which contains additional disclosure regarding forward-looking statements and risk factors, will be filed on or about November 27. Once filed, copies may be obtained by contacting the partnership or the SEC. For non-GAAP measures will be discussed on this call. We have provided a description of those measures as well as a discussion of why we believe this information to be useful in our Form 8-K, which was furnished to the SEC this morning. Form 8-K will be available through a link in the Investor Relations section of our website. At this time, I will turn the call over to Mike Stivala for some opening remarks. Mike?

Thanks, Davin, and thank you all for joining us this morning. Before I discuss our performance and accomplishments for fiscal 2024, I’d like to take a moment to comment on the two hurricanes that hit the Southeast territory in late September and early October within two weeks of each other. Hurricane Helene and Milton delivered historic devastation and sadly, significant losses of life and homes especially in Western North Carolina, where we have a very strong market presence. In the face of some horrific operating conditions and in many instances, personal challenges at home, the dedication of our safety personnel are drivers, service technicians, customer service reps and local management teams was nothing short of remarkable. I’m so proud of how our employees executed our emergency preparedness and response plan to assess the situation, secure our assets and quickly deploy to serve our customers and local communities in the immediate aftermath of the storms. I’m also proud of the area leadership team for the thoughtful preparation in advance of the storms to relocate all of our vehicles to higher ground, which help protect our fleet and prepare us to serve our customers when it was safe to do so. We also had numerous drivers and technicians from around the country, volunteer to travel into the affected areas to help our local teams meet the increased demand for propane deliveries and related service work. The dedication of our people is reflective of our culture and is a true testament to the resiliency of our operating model. Our commitment to excellence and our unwavering focus on serving our customers when they need us most. We also work closely with our long-term partner, the American Red Cross to support their disaster relief efforts in Florida and North Carolina. While the devastation from these…

Thanks, Mike, and good morning, everyone. I will start by focusing on our full year results, which included 52 weeks of operations in fiscal 2024, compared to 53 weeks in the prior year, to give some color on the fourth quarter toward the end of my remarks. To be consistent with previous reporting and excluding the impact of unrealized noncash mark-to-market adjustments on our commodity hedges, which resulted in an unrealized loss of $14.6 million in fiscal 2024, compared to an unrealized loss of $3.7 million in the prior year, along with certain other noncash items and acquisition-related transaction costs in the prior year. Including these items, net income for fiscal 2024 was $107.7 million or $1.68 per common unit compared to $138.4 million or $2.17 per common unit in the prior year. Adjusted EBITDA for fiscal 2024 was $250 million compared to $275 million in the prior year. As Mike mentioned, our earnings for fiscal 2024 were impacted by lower heat-related demand resulting from warm weather during most of the heating season, but benefited from growth in our customer base, unit margin expansion, controlling our operating expenses and greater contributions from our RNG operations. Retail propane gallons sold in fiscal 2024 were 378 million gallons, which was 4.6% lower than the prior year, primarily due to the impact of widespread warmer weather throughout much of the heating season. In addition, the year-over-year comparison of our volumes was impacted by the additional week of operations in the fourth quarter of fiscal 2023, which contributed approximately 5.5 million gallons to the prior year. With respect to the weather, average temperatures for fiscal 2024 were 10% warmer than normal and 2% warmer than the prior year. The weather pattern during the critical months of the heating season, reflected average temperatures for the…

Thanks, Mike. As announced in our October ‘24 press release, our Board of Supervisors declared our quarterly distribution of $0.325 per common unit in respect of the fourth quarter of fiscal 2024, which equates to an annualized rate of $1.30 per common unit. The quarterly distribution was paid on November 12 to our unitholders of record as of November 5. So just a few closing remarks regarding our long-term strategy. As I’ve stated many times before, we are uniquely positioned to support our customers and local communities on the journey to a lower carbon energy future. Given our core competencies in safety, customer service and logistics expertise as a critical link in the local distribution of energy. There is much discussion and debate about the energy transition and what is the right solution to lowering greenhouse gas emissions. Many believe the future arrives by completely disrupting the status quo and establishing a new paradigm by pushing electrification as the sole solution to reducing greenhouse gas emissions. We have long contended that the world needs an all-of-the-above approach that leverages the best available technology for the applications to meet the growing energy needs of society in a resilient affordable and sustainable way. Suburban Propane provides solutions today in the form of traditional renewable and rDME-blended propane that has immediate benefits to lowering the carbon footprint across many applications. And we are continuing to invest in new, even lower carbon energy solutions that will shape the future. Our legacy is built on reliability, our future is being shaped by innovation. Our sustainability efforts are not just about environmental responsibility, they are about investing in communities, creating opportunities for our people and enhancing the long-term value for you, our valued unitholders. Finally, I want to thank the more than 3,200 employees for helping make fiscal 2024 another very successful year for Suburban Propane despite the many challenges presented from this past heating season. As always, I hope you and your families remain safe and healthy and we wish everyone a very happy holiday season. We appreciate your support and attention and would now like to open the call up for questions. So, Emily, do you want to help us with that?

Absolutely. Thank you, ladies and gentlemen. We will now begin the question-and-answer session. [Operator Instructions]. And your first question comes from Gabe Moreen from Mizuho. Please go ahead.

Mike, maybe I can start out on asking about the recent acquisition that you made in Arizona, New Mexico. Just wondering the genesis of that transaction such that it seems a little bit larger than some of your recent tuck-ins. Anything in particular about those markets that you’re seeing attractive and then also how things are looking on the third-party M&A front from a propane standpoint, whether you expect to maybe engage further?

Sure. Thanks, Gabe. New Mexico has been a market that we’ve actually been expanding in a bit, some of which was from -- it started from market expansion efforts. We did do a smaller acquisition a couple of years ago to begin to establish a bigger footprint. And then this acquisition came to us, which really fills in a good part of New Mexico. And what we’re seeing in New Mexico is just population growth and generally a market that is expanding, embracing propane. And so, it was a really attractive business, very, very well run. As you can see, a good size, 14,000 customers. It’s our largest acquisition since the energy -- largest single acquisition since the energy deal in 2012, which demonstrates the confidence we have in the quality of this business. And it really establishes a significant footprint down in a market that’s been demonstrating real good growth. As far as other M&A, part of our long-term strategy, we are not deviating from our core propane business, where our strategy is two-pronged, continue to invest in growth in propane while we also invest in the future with our investments in renewable energy. And I think we’re doing it in a pretty balanced and patient way. So, we’re definitely active and we’re continuing to look at opportunities that make good sense.

Appreciate that. Maybe if I can also ask about expectations for kind of cost inflation at the underlying propane business and how things are trending. It seems like you really got a handle on cost this past year. I’m just wondering if you think there’s more to go and then how the outlook is there?

Yes. I think we’ve seen a pretty good stabilization of the cost infrastructure. I think this year, fiscal 2024 was a remarkable effort on the part of our field to think about the kind of performance that we had, tough weather scenario and to only have a 0.2% increase in overall operating and G&A expenses is really a tremendous testament to our operating model to be able to flex when weather doesn’t cooperate and to flex up as we get opportunities with weather. So, I think it’s a lot of what you’ve probably been accustomed to seeing in Suburban Propane to be able to manage the business in whatever comes our way.

Got it. And then if I could just follow up with maybe a bigger picture question with the administration changing here in D.C. shortly. Just wondering how you’re viewing the outlook for tax credits and the like impacting the RNG business, whether you see any opportunities or see any risks out there? Just curious your thoughts.

Yes. I think it’s still a little early to predict. Obviously, I do think one of the benefits that I see is perhaps a little bit less focused on mandating things like EVs, despite the fact that, that doesn’t mean we won’t have continued investment in EV activity as a country. But I think maybe opening up the conversation to a more all of the above approach, which I think benefits us as propane really is and should continue to be viewed as a genuine solution to lowering carbon today. And as we innovate for even lower carbon solutions in the coming three to five years, it allows society to maintain their current infrastructure without making dramatic investments just to get to a lower carbon footprint. So, I think on that front, I think there seems to be a benefit. On the production tax credits in the IRA, that remains to be seen. I’m a firm believer that there’s a lot of projects that are already out there that are embraced by both red and blue states. And frankly, it’s going to be hard to unwind that law altogether, and I would expect to see that certain aspects, including the production tax credits, I would expect to see that continue, but we’ll see what happens. I think that’s our prognostication at this point.

[Operator Instructions] At this time, we have no other questions. I will turn the call back to Mike Stivala any closing remarks.

Great. Thank you, Emily. Again, I hope everybody has a safe and happy holiday season. We look forward to talking with you again in February after our first quarter results. So, thank you.

Ladies and gentlemen, this concludes the conference. You may now disconnect your lines.