Star Group LP (SGU)

Star Group LP (SGU) reported strong fiscal first-quarter 2026 results, with a 32% year-over-year increase in adjusted EBITDA and a 14% rise in home heating oil and propane volume due to colder temperatures and acquisitions. Service and installation gross profit decreased, and expenses rose due to weather hedge contracts and derivative instruments. Despite increased expenses, net income increased by $3 million. Following the report, SGU shares gained 5.7% and saw a 10.4% increase over the past month. The stock has traded between $11.31 and $13.75 over the past 52 weeks. Star Group pays quarterly dividends, with the latest declared distribution of $0.1850 per common unit for the quarter ended December 31, 2025.

Demand for Star Group LP's products and services is highly seasonal, with financial performance significantly influenced by weather conditions. Colder temperatures increase demand and sales volumes, while warmer weather negatively impacts demand. The company manages this seasonality through strategies like weather hedge programs, and anticipates new opportunities closer to spring.

Star Group LP (SGU) is a full-service energy provider specializing in the distribution of home heating oil and propane to residential and commercial customers, operating within the Oil & Gas Refining & Marketing industry. In addition to heating oil and propane, Star Group provides diesel fuel and gasoline, as well as HVAC installation, maintenance, and repair services, and plumbing in certain areas. As of September 2024, Star Group served approximately 404,600 full-service customers and 61,700 delivery-only customers.

Star Group LP's operations are concentrated across the Northeast and Mid-Atlantic regions of the United States, serving customers in 19 states and the District of Columbia, including Connecticut, Delaware, Maryland, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia.

Assessing Star Group LP's brand reputation is challenging due to a lack of broad, public assessments. Management emphasizes excellent customer service, and net customer attrition is modest. However, some employee reviews indicate concerns regarding workplace culture, including toxic gossip, unpaid work, and poor communication. Some reviews also suggest that the company's pricing practices might lead customers to feel ripped off. Warmer weather impacting demand and sales has also been cited as a challenge.

Star Group LP (SGU) has a mix of institutional and individual/insider owners. The company has 75 institutional owners holding a total of 10,871,643 shares. Major institutional shareholders include Hartree Partners, LP, Bandera Partners LLC, Oakcliff Capital Partners, LP, Renaissance Technologies Llc, Jpmorgan Chase & Co, BIAUX - Brown Advisory Small-Cap Fundamental Value Fund Investor Shares, Joel Isaacson & Co., LLC, Blackstone Group Inc, Doliver Advisors, Lp, and Locust Wood Capital Advisers, Llc. Significant individual and insider owners include Kestrel Energy Partners LLC (owning 41.73% of shares), Bandera Partners LLC (19.09%), Stephen Lessing (6.126%), Paul Vermylen (4.082%), Sheldon B. Lubar (4.41%), and Bryan H. Lawrence (3.83%).