Star Group LP (SGU)

In the past six months, Star Group LP's stock has experienced notable events, including robust second-quarter results for fiscal year 2025 due to colder weather and successful acquisitions. Home heating oil and propane volumes increased by 23% to 144 million gallons in Q2 FY25. In December 2025, Star Group agreed to acquire a fuel dealer for $35 million and reported its fiscal 2025 full year and fourth-quarter results, indicating a narrower year-over-year Q4 loss. An earnings call in December 2025 highlighted an $81 million acquisition investment and 12% volume growth. Star Group declared quarterly distributions of 18.50 cents per unit in October 2025. As of January 5, 2026, the stock price was $11.95 per share, a 4.55% increase from January 6, 2025, with a total return of 7% in the four months leading up to January 2026.

Star Group LP's business is significantly impacted by seasonal fluctuations, with the highest demand for home heating oil and propane during colder months, resulting in significant sales in its first and second fiscal quarters. Warm winters can adversely affect financial performance, while colder weather positively impacts it. The company uses weather hedging programs, which can result in expenses or benefits based on actual weather patterns.

Star Group LP (SGU) is a leading provider of diversified energy and home services, primarily in the energy distribution industry, focusing on heating-related services for residential and commercial customers. The company distributes home heating oil, propane, diesel fuel, and gasoline, and offers home services like HVAC, plumbing, electrical services, and home security systems. Star Group is the largest retail distributor of home heating oil based on sales volume.

Star Group LP has a substantial market presence across the northeastern and Mid-Atlantic United States, serving clients in Connecticut, Delaware, Maryland, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, and the District of Columbia.

Star Group has a strong reputation for dependable service, competitive pricing, and community commitment. Strong financial performance, strategic acquisitions, consistent dividend payments, and a focus on operational efficiency bolster its reputation. Potential challenges include risks related to climate change legislation, cybersecurity, workforce issues, and the decline of the retail home heating oil industry.

Star Group LP's ownership includes institutional shareholders, insiders, and public unitholders. As of January 5, 2026, there were 75 institutional owners holding 10,872,343 shares. Major institutional owners include Hartree Partners, LP, Bandera Partners LLC, and Oakcliff Capital Partners, LP. Kestrel Energy Partners LLC is the largest individual shareholder, owning 41.73% of the company. Other key individual owners include Sheldon B. Lubar, Bryan H. Lawrence, and Paul A. Vermylen Jr.