Suburban Propane Partners, L.P. (NYSE:SPH) Q1 2023 Earnings Call Transcript

Because, if you say x percent of our business is going to be propane and x percent is going to be renewable. Well, then you sort of have an incentive to hit that at the — maybe at the behest of doing a good deal. And I’d rather just continue to be very patient be very measured and be very strategic about how we allocate our capital for the right set of circumstances. If you look at our history, this $200 million deal is the third largest deal we’ve done since 2002. We did a $206 million deal in 2003. We did a $1.8 billion deal in 2012, and now we’re doing a $200 million deal in 2022. So we’re pretty patient and disciplined when it comes to allocating capital. Now we do have growth projects to fund. And we are looking at the allocation of capital to fund those growth projects because that’s how these businesses are going to reach their run rate potential and then some.

And so that is a little different for us to manage because we are making commitments. But as I said earlier, that those commitments as we see the visibility today gives us plenty of cushion for — within our own cash flow generation to fund that growth capital. So we’re managing the business for the long term for growth, and as growth comes, it will provide growth opportunities for everybody, for our employees, for our unitholders and all of our key stakeholders. And that’s really what we’re here to do is to take a long-term view. In the meantime, we have a business that’s generating great cash flow. We have a stock price that is generating an 8.25% yield that is pretty darn stable. And with this growth, opportunities that we have, I think it provides our unitholders that comfort that not only is there good stability in the distribution, but the Company is making strategic moves for long-term growth.

Operator: Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Michael Stivala for any closing remarks.

Mike Stivala: Great. Thanks for your help, Chad. Thank you all for your interest and your support. We look forward to talking to you again in February at the end of our second quarter, and I hope you all stay safe and warm. Thank you.

Operator: Thank you, sir. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.