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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, ~~2024~~2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-14129

STAR GROUP, L.P.

(Exact name of registrant as specified in its charter)

     Delaware

     06-1437793

     (State or other jurisdiction of
incorporation or organization)

     (I.R.S. Employer
Identification No.)


9 West Broad Street, Suite 310, Stamford, Connecticut		06902
(Address of principal executive office)		(Zip Code)

(203) 328-7310

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units	SGU	New York Stock Exchange
Common Unit Purchase Rights	N/A	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the registrant’s common units held by non-affiliates on March 31, ~~2024~~2025 was approximately $~~313~~402,~~349~~396,~~949~~722

As of November 30, ~~2024~~2025, the registrant had 3432,~~577~~976,~~855~~515 common units outstanding.

Documents Incorporated by Reference: None

STAR GROUP, L.P.

~~2024~~2025 FORM 10-K ANNUAL REPORT

TABLE OF CONTENTS

		Page
	PART I
Item 1.	Business	3
Item 1A.	Risk Factors	13
Item 1B.	Unresolved Staff Comments	2425
Item 1C.	Cybersecurity	2425
Item 2.	Properties	2526
Item 3.	Legal Proceedings—Litigation	2526
Item 4.	Mine Safety Disclosures	2526
	PART II
Item 5.	Market for the Registrant’s Units, ~~and~~ Related Unitholder Matters and Issuer Purchases of Units	2627
Item 6.	(Reserved)	2728
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2829
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	4244
Item 8.	Financial Statements and Supplementary Data	4244
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	4244
Item 9A.	Controls and Procedures	4244
Item 9B.	Other Information	4345
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	4345
	PART III
Item 10.	Directors, Executive Officers and Corporate Governance	4446
Item 11.	Executive Compensation	4950
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters	6062
Item 13.	Certain Relationships and Related Transactions, and Director Independence	6163
Item 14.	Principal ~~Accounting~~Accountant Fees and Services	6465
	PART IV
Item 15.	Exhibits and Financial Statement Schedules	6566

Item 16. Form 10-K Summary 6566

PART I

Statement Regarding Forward-Looking Disclosure

This Annual Report on Form 10-K (this “Report”) includes “forward-looking statements” which represent our expectations or beliefs concerning future events that involve risks and uncertainties, including the impact of geopolitical events on wholesale product cost volatility, tariff regimes, including newly imposed U.S. tariffs and any additional responsive non-U.S. tariffs or additional U.S. tariffs, the price and supply of the products that we sell, our ability to purchase sufficient quantities of product to meet our customer’s needs, rapid increases in levels of inflation, the consumption patterns of our customers, our ability to obtain satisfactory gross profit margins, the effect of weather conditions on our financial performance, our ability to obtain new customers and retain existing customers, our ability to make strategic acquisitions, the impact of litigation, natural gas conversions and electrification of heating systems, pandemic and future global health pandemics, recessionary economic conditions, future union relations and the outcome of current and future union negotiations, the impact of current and future governmental regulations, including ~~climate~~federal, ~~change~~state and municipal laws restricting greenhouse gas ("GHG") emissions and federal, state and local environmental, health, and safety regulations, the ability to attract and retain employees, customer credit worthiness, counterparty credit worthiness, marketing plans, cyber-attacks, global supply chain issues, labor shortages and new technology, including alternative methods for heating and cooling residences. All statements other than statements of historical facts included in this Report including, without limitation, the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “seek,” “estimate,” and similar expressions are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to, those set forth in this Report under the headings “Risk Factors,” “Business Strategy” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Important factors that could cause actual results to differ materially from our expectations (“Cautionary Statements”) are disclosed in this Report. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. Unless otherwise required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this Report.

ITEM 1. BUSINESS

Structure

Star Group, L.P. (“Star” the “Company,” “we,” “us,” or “our”) is a home heating oil and propane distributor and services provider with one reportable operating segment that principally provides heating related services to residential and commercial customers. Our unitholders voted in favor of proposals to have the Company elect to be treated as a corporation, instead of a partnership, for federal income tax purposes (commonly referred to as a “check-the-box election”), along with amendments to our partnership agreement to effect such changes in income tax classification, in each case effective November 1, 2017. In addition, the Company changed its name, effective October 25, 2017, from “Star Gas Partners, L.P.” to “Star Group, L.P.” to more closely align our name with the scope of our product and service offerings. Unitholders will receive a Form 1099-DIV and will not receive a Schedule K-1 as in tax years prior to December 31, 2017. Our legal structure has remained a Delaware limited partnership and the distribution provisions under our limited partnership agreement, including the incentive distribution structure has remained unchanged. As of November 30, ~~2024~~2025, we had outstanding 3433.60 million common partner units (NYSE: “SGU”) representing a 99.10% limited partner interest in Star, and 0.3 million general partner units, representing a 01.90% general partner interest in Star.

The following chart depicts the ownership of Star as of November 30, ~~2024~~2025:

	Star Group, L.P.
Limited PartnersCommon Units99.1%		General Partner (Kestrel Heat)General Partner Units0.9%
Limited PartnersCommon Units99.0%		General Partner (Kestrel Heat)General Partner Units1.0%
	Public Unitholders - Common Units
	88.1%
	87.7%
	Officers and Directors - Common Units
	11.9%
	12.3%

Star is organized as follows:

•

Our general partner is Kestrel Heat, LLC, a Delaware limited liability company (“Kestrel Heat” or the “general partner”). The Board of Directors of Kestrel Heat (the “Board”) is appointed by its sole member, Kestrel Energy Partners, LLC, a Delaware limited liability company (“Kestrel”).

•

Our operations are conducted through Petro Holdings, Inc., a Minnesota corporation that is a wholly owned subsidiary of Star Acquisitions, Inc., and its subsidiaries.

•

Petroleum Heat and Power Co., Inc. (“PH&P”) is an indirect, wholly owned subsidiary of Star. PH&P is the borrower and Star is the guarantor of the seventh amended and restated credit agreement’s $210 million five-year senior secured term loan and the $400 million ($475 million during the heating season of December through April of each year) revolving credit facility, both due September 27, 2029. (See Note 13—Long-Term Debt and Bank Facility Borrowings).

We file annual, quarterly, current and other reports and information with the Securities and Exchange Commission, or SEC. These filings can be viewed and downloaded from the Internet at the SEC’s website at www.sec.gov. In addition, these SEC filings are available at no cost as soon as reasonably practicable after the filing thereof on our website at ~~www~~investors.stargrouplp.com/financial-information/sec~~.cfm. You may also obtain copies of these~~ -filings ~~and other information at the offices of the New York Stock Exchange located at 11 Wall Street, New York, New York 10005~~. Please note that any Internet addresses provided in this Annual Report on Form 10-K are for informational purposes only and are not intended to be hyperlinks. Accordingly, no information found and/or provided at such Internet addresses is intended or deemed to be incorporated by reference herein.

Legal Structure

The following chart summarizes our structure as of September 30, ~~2024~~2025.



		Star Group, L.P.

			Star Acquisitions, Inc.		Woodbury Insurance Co., Inc.


		Petro Holdings, Inc.


Petroleum Heat and Power Co., Inc.		Meenan Oil LLC		Champion Energy LLC	Griffith Energy Services, Inc.

	Denotes borrower in the asset based lending facility and the term loan, which are guaranteed by Star Group, L.P. and the other entities listed above, excluding Woodbury Insurance Co., Inc.

	Although Star Group, L.P. is a partnership for state law purposes, it has elected to be treated as a corporation, rather than a partnership, for federal income tax purposes (commonly referred to as a "check-the-box election").

Business Overview

We are a home heating oil and propane distributor and service provider to residential and commercial customers ~~who~~whose primary use is to heat their homes and buildings ~~primarily~~ in the Northeast and Mid-Atlantic U.S. regions. As of September 30, ~~2024~~2025, we sold home heating oil and propane to approximately ~~404~~406,~~600~~400 full service residential and commercial customers and 6163,~~700~~200 customers on a delivery only basis. Approximately ~~266~~277,000 of these customers, or 5759%, are located in the New York, New Jersey, and Connecticut. We believe we are the largest retail distributor of home heating oil in the United States, based upon sales volume with a market share in excess of 5.5%. We also sell gasoline and diesel fuel to approximately 2627,~~800~~700 customers. We install, maintain, and repair heating and air conditioning equipment and to a lesser extent provide these services outside of our heating oil and propane customer base including 20,~~800~~200 service contracts for natural gas and other heating systems. During fiscal ~~2024~~2025, total sales were comprised of approximately 6163% from home heating oil and propane, 2118% from other petroleum products, the majority of which is diesel and gasoline, and 1819% from the installation and repair of heating and air conditioning equipment and ancillary services. We provide home heating equipment repair service and natural gas service 24-hours-a-day, 7-days-a-week, 52 weeks a year. These services are an integral part of our business, and are intended to increase customer satisfaction and loyalty.

We conduct our business through an operating subsidiary, Petro Holdings, Inc., utilizing multiple local brand names, such as Petro Home Services, Meenan, and Griffith Energy Services~~, Inc~~.

We also offer several pricing alternatives to our residential home heating oil customers, including a variable price (market based) option and a price-protected option, the latter of which either sets the maximum price or a fixed price that a customer will pay. Users choose the plan they feel best suits them which we believe increases customer satisfaction. Approximately 9593% of our full service residential and commercial home heating oil and propane customers automatically receive deliveries based on prevailing weather conditions. In addition, approximately 3125% of our residential home heating oil and propane customers take advantage of our “smart pay” budget payment plan under which their estimated annual oil and propane deliveries and service billings are paid for in a series of equal monthly installments. We use derivative instruments as needed to mitigate our exposure to market risks associated with our price-protected offerings and the storing of our physical home heating oil inventory. Given our size, we believe we are able to realize certain benefits of scale and provide consistent, strong customer service.

Currently, we have heating oil and/or propane customers in the following states: Connecticut, Delaware, Maryland, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia and the District of Columbia.

Industry Characteristics

Home heating oil is primarily used as a source of fuel to heat residences and businesses in the Northeast and Mid-Atlantic regions. According to the U.S. Department of Energy—Energy Information Administration, Residential Energy Consumption Survey (released May 2022), these regions account for 82% (4.1 million of 5.0 million) of the households in the United States where heating oil is the main space-heating fuel and 19% (4.1 million of 21.9 million) of the homes in these regions use home heating oil as their main space-heating fuel. Our experience has been that customers have a tendency to increase their conservation efforts as the price of home heating oil increases, thereby reducing their consumption.

The retail home heating oil industry is mature, with total market demand expected to decline in the foreseeable future due to conversions to natural gas and electricity, availability of other alternative energy sources and the installations of more fuel efficient heating systems. Therefore, our ability to maintain our business or grow within the industry is dependent on the acquisition of other retail distributors, the success of our marketing programs, and the growth of our other service offerings. Based on our records, our customer conversions to natural gas and electricity have ranged between 1.1% and 1.6% per year over the last five years. We believe this may continue or even increase. In addition, there are legislative and regulatory efforts underway in several states ~~seeking~~and tocertain ~~encourage~~municipalities ~~homeowners~~seeking to reduce orGHG ~~even~~emissions ~~eliminate~~from ~~the~~fuel-burning ~~consumption of fossil fuels that we sell~~systems.

The retail home heating oil industry is highly fragmented, characterized by a large number of relatively small, independently owned and operated local distributors. Some businesses provide full service, as we do, and others offer delivery only on a cash-on-delivery basis, which we also do to a significantly lesser extent. In addition, the industry is complex and costly due to government regulations, working capital requirements, and the costs and risks of hedging for price protected customers.

Propane is a by-product of natural gas processing and petroleum refining. Propane use falls into three broad categories: residential and commercial applications; industrial applications; and agricultural uses. In the residential and commercial markets, propane is used primarily for space heating, water heating, clothes drying and cooking. Industrial customers use propane generally as a motor fuel to power over-the-road vehicles, forklifts and stationary engines, to fire furnaces, as a cutting gas and in other process applications. In the agricultural market, propane is primarily used for tobacco curing, crop drying, poultry breeding and weed control.

The retail propane distribution industry is highly competitive and is generally serviced by large multi-state full-service distributors and small local independent distributors. Like the home heating oil industry, each retail propane distribution provider operates in its own competitive environment because propane distributors typically reside in close proximity to their customers. In most retail propane distribution markets, customers can choose from multiple distributors based on the quality of customer service, safety, reputation and price.

It is common practice in our business to price our liquid products to customers based on a per gallon margin over wholesale costs. As a result, we believe distributors such as ourselves generally seek to maintain their per gallon margins by passing wholesale price increases or decreases through to customers, thus insulating their margins from the volatility in wholesale prices. However, distributors may be unable or unwilling to pass the entire product cost changes through to customers. ~~We believe this is especially true in the propane business.~~ In these cases, significant decreases in per gallon margins may result when prices rise. The timing of cost pass-throughs can also significantly affect margins. (See Customers and Pricing for a discussion on our offerings).

Business Strategy

Our business strategy is to increase Adjusted EBITDA (See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for a definition) and cash flow by effectively managing operations while growing and retaining our customer base as a retail distributor of home heating oil and propane and provider of related products and services. The key elements of this strategy include the following:

Pursue select acquisitions Our senior management team has developed expertise in identifying acquisition opportunities and integrating acquired customers into our operations. We focus on acquiring companies within and outside our current footprint.

We actively pursue home heating oil only companies, propane companies, and dual fuel (home heating oil and propane) companies ~~and selectively target motor fuels acquisitions, especially where they are operating in the markets we currently serve~~.

Deliver superior customer service We are dedicated to consistently providing our customers with superior service and a positive customer experience to improve retention and drive additional revenue. We have established programs and conduct surveys to effectively measure customer satisfaction at certain brands.

We have deployed a customer relationship management solution at most of our larger brands. We believe this allows us to provide a more consistent customer experience as our employees will have a 360 degree-view of each customer with easy access to key customer information and customized dashboards to track individual employee performance.

We have resources dedicated to training employees to provide superior and consistent service and enhance the customer experience. This effort is supported, reinforced and monitored by our local management teams.

Provide complementary service offerings These offerings include, but are not limited to, the sales, service and installation of heating and air conditioning equipment, and standby home generators. In addition, we also repair and install natural gas ~~heating~~and heat pump systems.

Pursue environmental sustainability opportunities We are committed to pursuing initiatives that reduce greenhouse gas emissions across our product offerings, by ~~offering~~selling biodiesel ~~blended~~ products and by offering energy efficient heating and air conditioning equipment to our customers.

Seasonality

Our fiscal year ends on September 30. All references to quarters and years respectively in this document are to fiscal quarters and years unless otherwise noted. The seasonal nature of our business results in the sale of approximately 30% of our volume of home heating oil and propane in the first fiscal quarter and 50% of our volume in the second fiscal quarter of each fiscal year, the peak heating season. Approximately 25% of our volume of motor fuel and other petroleum products is sold in each of the four fiscal quarters. We generally realize net income in our first and second fiscal quarters and net losses during our third and fourth fiscal quarters and we expect that the negative impact of seasonality on our third and fourth fiscal quarter operating results will continue. In addition, sales volume typically fluctuates from year to year in response to variations in weather, wholesale energy prices and other factors.

Degree Day

A “degree day” is an industry measurement of temperature designed to evaluate energy demand and consumption. Degree days are based on how far the average daily temperature departs from 65°F. Each degree of temperature above 65°F is counted as one cooling degree day, and each degree of temperature below 65°F is counted as one heating degree day. Degree days are accumulated each day over the course of a year and can be compared to a monthly or a multi-year average to see if a month or a year was warmer or cooler than usual. Degree days are officially observed by the National Weather Service.

Every ten years, the National Oceanic and Atmospheric Administration (“NOAA”) computes and publishes average meteorological quantities, including the average temperature for the last 30 years by geographical location, and the corresponding degree days. The latest data covers the years from 1991 to 2020. Our calculations of normal weather are based on these published 30 year averages for heating degree days, weighted by volume for the locations where we have existing operations. Our operating and financial plans are based upon the published weather data for the last ten years.

Competition

Most of our operating locations compete with numerous distributors, primarily on the basis of price, reliability of service and response to customer needs. Each such location operates in its own competitive environment.

Customer Attrition

We measure net customer attrition for our full service residential and commercial home heating oil and propane customers. Net customer attrition is the difference between gross customer losses and customers added through marketing efforts. Customers added through acquisitions are not included in the calculation of gross customer gains. However, additional customers that are obtained through marketing efforts at newly acquired businesses are included in these calculations from the point of closing going forward. Customer attrition percentage calculations include customers added through acquisitions in the denominators of the calculations on a weighted average basis from the closing date. Gross customer losses are the result of a number of factors, including price competition, move outs, credit losses and conversions to natural gas and electrified heating systems. (See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Customer Attrition.)

Customers and Pricing

The number of home heating oil customers comprise 7874% of our product customer base, with propane customers comprising another 1720% and motor fuel and other petroleum product customers making up the remaining 56%. (During fiscal ~~2024~~2025, we sold ~~253~~282.46 million gallons of home heating oil and propane and ~~129~~123.19 million gallons of motor fuel and other petroleum products.)

Our full service home heating oil and propane customer base is comprised of 96% residential customers and 4% commercial customers. Approximately 9593% of our full service residential and commercial home heating oil and propane customers have their deliveries scheduled automatically and 57% of our home heating oil and propane customer base call from time to time to schedule a delivery. Automatic deliveries are scheduled based on each customer’s historical consumption pattern and prevailing weather conditions. Our practice is to bill customers promptly after delivery. We offer a balanced payment plan to residential customers in which a customer’s estimated annual home heating oil and propane purchases and service contract fees are paid for in a series of equal monthly payments. Approximately 3125% of our residential home heating oil and propane customers have selected this billing option.

We offer several pricing alternatives to our residential home heating oil and propane customers. Our "variable" pricing program allows the price to float with the heating oil market and other factors. In addition, we offer price-protected programs, which establish either a "ceiling" or a "fixed price" per gallon that the customer pays over a defined period. The following chart depicts the percentage of the pricing plans selected by our residential home heating oil and propane customers as of the end of the fiscal year.

	Percentage of Residential Home Heating Oil Customers
	Percentage of Residential Home Heating Oil and Propane Customers
	September 30,
Pricing Programs	~~2024~~2025			~~2023~~2024			~~2022~~2023			~~2021~~2022			~~2020~~2021
Variable		5367.27	%		5562.65	%		5764.02	%		5564.05	%		5462.46	%
Ceiling		3625.39	%		3729.81	%		3730.65	%		3931.0	%		3832.54	%
Fixed		106.54	%		68.64	%		5.43	%		64.05	%		75.10	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Sales to residential customers ordinarily generate higher per gallon margins than sales to commercial customers. Due to greater price sensitivity, ~~our own internal marketing efforts,~~ and hedging costs of residential price-protected customers, the per gallon margins realized from price-protected customers generally are less than from variable priced residential customers.

The propane customer base has a similar profile to heating oil residential and commercial customers. Sales to residential customers ordinarily generate higher per gallon margins than sales to commercial customers. Pricing plans chosen by propane customers are almost exclusively variable in nature where selling prices will float with the propane market and other commercial factors.

The motor fuel and other petroleum products customer group includes commercial and industrial customers of unbranded diesel, gasoline, kerosene and related distillate products. We sell products to these customers through contracts of various terms or through a competitive bidding process.

Derivatives

We use derivative instruments in order to mitigate our exposure to market risk associated with the purchase of home heating oil for our price-protected customers, physical inventory on hand, inventory in transit, priced purchase commitments, and the variable interest rate on a portion of our term loan. Currently, the Company’s derivative instruments are with the following counterparties: Bank of America, N.A., Bank of Montreal, Cargill, Inc., Citibank, N.A., ~~JPMorgan~~Citizens ~~Chase~~ Bank, N.A., ~~Key~~JPMorgan Chase Bank, N.A., ~~Mieco~~MSI GuaranteedWeather Trading Ltd., Munich Re Trading LLC and Wells Fargo Bank, N.A.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-10-05, Derivatives and Hedging, requires that derivative instruments be recorded at fair value and included in the consolidated balance sheet as assets or liabilities. To the extent our interest rate derivative instruments designated as cash flow hedges are effective, as defined under this guidance, changes in fair value are recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. We have elected not to designate our commodity derivative instruments as hedging instruments under this guidance, and as a result, the changes in fair value of the derivative instruments during the holding period are recognized in our statement of operations. Therefore, we experience volatility in earnings as outstanding derivative instruments are marked-to-market and non-cash gains and losses are recorded prior to the sale of the commodity to the customer. The volatility in any given period related to unrealized non-cash gains or losses on derivative instruments can be significant to our overall results. However, we ultimately expect those gains and losses to be offset by the cost of product when purchased.

Depending on the risk being hedged, realized gains and losses are recorded in cost of product, cost of installations and services, or delivery and branch expenses.

Suppliers and Supply Arrangements

We purchase our products for delivery in either barge, pipeline or truckload quantities. As of September 30, ~~2024~~2025 we had contracts with approximately ~~136~~137 third-party terminal sites for the right to temporarily store petroleum products at their facilities. Home heating oil and propane purchases are made under supply contracts or on the spot market. We have entered into New York Mercantile Exchange ("NYMEX"), Platts American Gulf Coast or Mont Belvieu based physical supply contracts for approximately 76% of our expected home heating oil and propane requirements for our full service residential and commercial customers for the fiscal ~~2025~~2026 heating season. For the fiscal year ~~2025~~2026 heating season, approximately 7463% of the Company’s contracted home heating oil volume with suppliers has a biofuel component. We also have entered into NYMEX or Platts American Gulf Coast based physical supply contracts for approximately 4648% of our expected diesel and gasoline requirements for fiscal ~~2025~~2026.

During fiscal ~~2024~~2025, ~~Shell~~Motiva ~~Trading~~Enterprises ~~and~~LLC ~~Shell Oil Products US~~ provided approximately 16% of our petroleum purchases and ~~Motiva~~Global ~~Enterprises~~Companies LLC provided 1514% of our petroleum product purchases. During fiscal ~~2023~~2024, Shell Trading and Shell Oil Products US provided approximately 1816% of our petroleum purchases and Motiva Enterprises LLC provided 1415% of our petroleum product purchases~~, respectively~~. Our supply contracts typically have terms of 6 to 12 months. For fiscal ~~2025~~2026, approximately 24% of our physical supply contracts are with ~~Motiva~~Shell ~~Enterprises~~Trading ~~LLC~~and Shell Oil Products US. All of our supply contracts provide for minimum quantities and in most cases do not establish in advance the price of home heating oil or propane. This price is based upon a published index price at the time of delivery or pricing date plus an agreed upon differential. We believe that our policy of contracting for the majority of our anticipated supply needs with diverse and reliable sources will enable us to obtain sufficient product should unforeseen shortages develop in worldwide supplies.

Liquid Product Price Volatility

Volatility, which is reflected in the wholesale price of liquid products, including home heating oil, propane and motor fuels, has a larger impact on our business when prices rise. Home heating oil consumers are price sensitive to heating cost increases, and this often leads to customer conservation and increased gross customer losses. As a commodity, the price of home heating oil is generally impacted by many factors, including economic and geopolitical forces, and is closely linked to the price of diesel fuel. The volatility in the wholesale cost of diesel fuel as measured by the New York Mercantile Exchange (“NYMEX”), for the fiscal years ending September 30, ~~2020~~2021, through ~~2024~~2025, on a quarterly basis, is illustrated in the following chart (price per gallon):

	Fiscal 2024 (a)				Fiscal 2023				Fiscal 2022				Fiscal 2021				Fiscal 2020
	Fiscal 2025 (a)				Fiscal 2024				Fiscal 2023				Fiscal 2022				Fiscal 2021
Quarter Ended	Low		High		Low		High		Low		High		Low		High		Low		High
December 31	$	2.5113	$	32.2240	$	2.7851	$	43.5522	$	2.0678	$	24.5955	$	12.0806	$	12.5159	$	1.8608	$	21.0551
March 31		2.5316		2.9662		2.6153		32.5596		2.3661		43.4455		12.4636		14.9744		01.9546		21.0697
June 30		21.2997		2.7754		2.2329		2.7377		32.2723		52.1473		13.7727		25.1614		01.6177		12.2216
September 30		2.0623		2.6351		2.3806		32.4863		32.1338		43.0148		13.9113		24.3401		1.0891		12.2834

(a)

On November 3028, ~~2024~~2025, the NYMEX ultra low sulfur diesel contract closed at $2.1933 per gallon.

Acquisitions

Part of our business strategy is to pursue select acquisitions. Each acquired company’s operating results are included in the Company’s consolidated financial statements starting on its acquisition date. Customer lists, other intangibles (excluding goodwill) and trade names are amortized on a straight-line basis over seven to twenty years.

During fiscal ~~2024~~2025, the Company acquired one ~~propane~~heating ~~and~~oil ~~four~~business ~~heating~~and ~~oil~~three propane businesses for approximately $4980.45 million in cash. The gross purchase price was allocated $4038.47 million to intangible assets, $1317.7 million to goodwill, $425.92 million to fixed assets and reduced by $91.61 million of negative working capital.

During fiscal ~~2023~~2024, the Company acquired one propane business and ~~two~~four heating oil businesses for approximately $1949.84 million in cash. The gross purchase price was allocated $1040.4 million to intangible assets, $813.07 million to goodwill, $24.39 million to fixed assets and reduced by $0.9.6 million of negative working capital.

During fiscal ~~2022~~2023, the Company acquired ~~five~~one propane business and two heating oil businesses for approximately $1519.68 million ~~(using $13.1 million~~ in cash ~~and assuming $2~~.5 ~~million of liabilities).~~ The gross purchase price was allocated $710.34 million to intangible assets, $38.10 million to goodwill, $52.63 million to fixed assets and reduced by $0.49 million of negative working capital.

Employees and Human Capital Management

We consider our employees a key factor to Star’s success and we are focused on attracting and retaining the best employees at all levels of our business. In particular, our dedication to providing superior customer service depends significantly on employee satisfaction and retention. We strive to create a productive and collaborative work environment for our employees. Our human capital measures and objectives focus on safety of our employees, employee benefits, and employee development and training.

The safety of our employees and customers is paramount. We strive to ensure that all employees feel safe in their respective work environment. Since March 2020, a portion of our office personnel have worked ~~remotely~~hybrid. We believe that our employees have adapted well and continue to be flexible to the changing working conditions.

To attract talent and meet the needs of our employees, we offer benefits packages for full-time employees. We offer a health and welfare and retirement program to all eligible employees. We also provide our employees with resources for professional development including technical training, feedback and performance reviews from supervisors, and management training.

As of September 30, ~~2024~~2025, we had 3,~~039~~024 employees, of whom ~~909~~915 were office, clerical and customer service personnel; ~~834~~833 were equipment technicians; 474 were fuel delivery drivers and mechanics; ~~540~~532 were management and ~~282~~270 were employed in sales. Due to the seasonal nature of our business and depending on the demands of the ~~2025~~2026 heating season, we anticipate that we will augment our current staffing levels during the heating season from among the ~~295~~293 employees on temporary leave of absence as of September 30, ~~2024~~2025. As of September 30, ~~2024~~2025, considering seasonal and employees that are on leave, we had 1,~~362~~367 (3940%) employees that are represented by 6264 different collective bargaining agreements with local chapters of labor unions. There are 2013 collective bargaining agreements up for renewal in fiscal ~~2025~~2026, covering approximately ~~419~~428 employees (1213%). We believe that our relations with both our union and non-union employees are generally satisfactory.

Government Regulations

Regulations ~~in Response~~ to ~~Climate~~Curb ~~Change~~GHG Emissions. There ishas ~~increasing~~been ~~attention~~a intrend ~~the~~towards ~~United~~increased ~~States~~regulation and ~~worldwide~~initiatives, ~~concerning~~both ~~the~~domestically ~~issue of climate change~~ and ~~the~~internationally, ~~effect~~aimed ofat ~~greenhouse~~limiting ~~gas (“~~GHG”) emissions, in particular, from the combustion of carbon-based fossil fuels. ~~Our~~ ~~heating~~Domestically, ~~oil~~federal and ~~propane~~state ~~products~~legislative ~~are~~and ~~widely~~regulatory ~~considered~~initiatives tohave beattempted ~~fossil~~to ~~fuels~~and ~~that~~will ~~produce~~likely ~~GHG~~continue ~~emissions.~~to Toaddress ~~combat the cause of global warming domestically, President Biden identified~~ climate change ~~as one of his administration’s top priorities~~ and ~~pledged~~control toor ~~seek~~limit ~~measures that would pave the path for the U.S. to achieve net zero~~ GHG emissions ~~by 2050~~. InOur ~~April~~heating ~~2021,~~oil ~~President~~and ~~Biden~~propane ~~announced~~products ~~the~~are ~~administration’s~~widely ~~plan~~considered to ~~reduce~~be ~~the~~fossil ~~U.S.~~fuels ~~GHG~~that ~~emissions~~produce by at least 50% by 2030. These environmental goals earned a prominent place in the Biden administration’s $1.2 trillion infrastructure bill, which was signed into law on November 15, 2021. On August 16, 2022, President Biden signed the Inflation Reduction Act which aims to reduce GHG emissions by offering tax and other financial incentives designed to encourage homeowners to switch to alternative sources of energy other than those we sell, including a tax rebate of up to $8,000 per qualified household for the installation of an electric heat pump for a home’s primary heat source. ~~States~~ must apply for rebate funding with the U.S. Department of Energy and adopt and administer energy rebate programs within their respective states before homeowners can apply and receive tax rebates under the program. As of October 2024, two (2) states within our operating footprint -- New York and Rhode Island – have launched programs to distribute homeowner rebates. The timing of when the other states within our operating footprint will adopt energy rebate programs in order to distribute homeowner rebates remains uncertain.

Numerous states and municipalities have adopted laws and policies on climate change and emission reduction targets. These measures, which have or may have the effect of reducing or eliminating GHG emissions from fossil fuel-burning vehicles, boilers and furnaces, could significantly negatively impact the Company’s operations in New York City, New York State and Massachusetts, which together constitute a material portion of the Company’s business. These measures could also increase the Company’s cost of compliance by increasing reporting requirements and/or requiring the purchase of emission allowances. Other states in which the Company operates and that are material to the Company’s operations, such as Connecticut, Rhode Island, Maryland and New Jersey, have adopted similar GHG laws or have otherwise announced GHG emission reduction targets.

For example, on July 18, 2019, the State of New York (the location of approximately 42% of our residential home heating oil and propane customers) passed the Climate Leadership and Community Protection Act (“CLCPA”). Among other things, the CLCPA sets out a series of emissions reduction, renewable energy, and energy storage goals to significantly reduce the use of carbon-based fossil fuels and eventually achieve net zero GHG emissions in the state. In December 2022, New York approved the Scoping Plan, which details actions required to advance directives stated in the CLCPA and to enable New York to limit GHG emissions as a percentage of 1990 emissions to 60% by 2030 and to 15% by 2050. The CLCPA gave the New York Department of Energy

~~Numerous~~Conservation ~~states and municipalities have also adopted laws and policies on climate change and emission reduction targets. For example, on July 18, 2019, the State of New York~~ (~~location of approximately 44% of our residential home heating oil and propane customers) passed the Climate Leadership and Community Protection Act (~~“~~CLCPA~~NYDEC”). ~~Among~~until ~~other~~January ~~things~~1, ~~the CLCPA sets out a series of emissions reduction~~2024, ~~renewable~~to ~~energy,~~promulgate ~~and~~regulations ~~energy storage goals~~ to ~~significantly~~ensure ~~reduce~~that the ~~use~~State of ~~carbon-based~~New ~~fossil~~York ~~fuels~~meets ~~and~~the ~~eventually~~CLCPA’s ~~achieve~~GHG ~~net~~emission ~~zero~~limits ~~GHG~~as ~~emissions~~outlined in the ~~state. In December 2022, New York approved the~~ Scoping Plan,. The ~~which~~NYDEC ~~details~~has ~~actions~~not ~~required~~yet toadopted ~~advance~~regulations ~~directives~~to ~~stated~~implement in the CLCPA’s ~~and to enable New York to limit~~ GHG emissions aslimits adespite ~~percentage~~the ofJanuary ~~1990~~1, ~~emissions~~2024 todeadline ~~60%~~for bydoing ~~2030~~so. Climate and toenvironmental ~~15%~~justice bygroups ~~2050.~~filed ~~However,~~a ~~the~~lawsuit ~~CLCPA~~against ~~gave~~ the ~~New~~NYDEC ~~York~~in ~~Department~~March of2025 ~~Energy~~for ~~Conservation~~not ~~until~~adopting ~~January 1, 2024, to promulgate~~ regulations toimplementing ~~ensure that~~ the ~~State of New York meets the~~ CLCPA’s GHG ~~emission~~emissions limits asby ~~outlined~~the inJanuary ~~the~~1, ~~Scoping~~2024 ~~Plan~~deadline. ~~The~~ ~~State~~We ofare ~~New~~unable ~~York has not yet adopted regulations~~ to ~~implement~~predict the ~~CLCPA’s~~impact ~~GHG~~on ~~emissions~~our ~~despite~~business of the ~~January~~implementation 1,of ~~2024~~this ~~deadline for doing so~~law.

On May 2, 2023, the State of New York adopted its 2024 fiscal year budget, which included amendments to New York’s Energy Law and to its Executive Law that prohibit “the installation of fossil-fuel equipment and building systems” in any new buildings under seven stories, except for a new commercial or industrial building greater than 100,000 square feet in conditioned floor area beginning December 31, 2025 (the “Fossil Fuel Ban”). The Fossil Fuel Ban applies to equipment that uses heating oil, propane and natural gas for combustion and will then expand to all new buildings beginning January 1, 2029. Specifically, the Energy Law and the Executive Law direct the New York State Fire Prevention and Building Code Council (the “Code Council”) to include the Fossil Fuel Ban on installation of fossil-fuel burning equipment and building systems in new buildings in the State of New York’s Energy Conservation Construction Code (the “Energy Code”) and in the Uniform Fire Prevention and Building Code (the “Building Code”). WeThe ~~understand that~~ New York Building Code Council isintegrated ~~set to integrate~~ the Fossil Fuel Ban into its 2025 Building Code update thereby codifying the Fossil Fuel Ban.

OnIn ~~October~~May 122019, ~~2023,~~New aYork ~~coalition~~City (location of ~~businesses,~~approximately ~~trade~~3% ~~associations~~of ~~and~~our ~~labor~~residential ~~unions~~home ~~including~~heating ~~the~~oil ~~National~~and ~~Propane~~propane ~~Gas~~customers) ~~Association,~~enacted ~~New~~Local ~~York~~Law ~~Propane~~97 ~~Gas~~as ~~Association and Mulhern Gas Co., filed~~ a ~~federal~~part ~~lawsuit~~of in the ~~Northern~~Climate ~~District~~Mobilization ofAct ~~New~~aimed ~~York~~at ~~(Mulhern~~reducing ~~Gas~~GHG ~~Co.,~~emissions ~~Inc.~~by et80% alfrom v.commercial ~~Rodriguez,~~and etresidential ~~al.,~~buildings ~~Case~~by No2050. ~~1:23-cv-1267)~~Starting ~~claiming~~in ~~that~~2024, ~~the~~this ~~Fossil Fuel Ban violates federal~~ law. ~~The~~will ~~lawsuit~~place ~~seeks~~carbon tocaps ~~declare the Fossil Fuel Ban invalid and to block its enforcement~~ on ~~the~~most ~~grounds~~buildings ~~that~~larger itthan is25,000 ~~preempted~~square byfeet. ~~the~~In ~~federal~~addition, ~~Energy~~in ~~Policy~~December ~~and~~2021, ~~Conservation~~New ~~Act~~York ~~("EPCA").~~City Itpassed ~~relies~~Local onLaw a154 ~~recent decision by the U.S. Court~~ of ~~Appeals~~2021, ~~for~~also called the ~~Ninth~~"Building ~~Circuit~~Electrification ~~(California~~Law", ~~Restaurant Association v. City of Berkeley)~~ which ~~held~~will ~~that~~phase aout ~~ban~~fossil onfuel ~~gas~~usage ~~piping~~ in anewly ~~new~~constructed ~~building~~residential inand ~~Berkeley,~~commercial ~~California~~buildings ~~was~~starting ~~invalid~~in on2024 ~~the~~for ~~basis~~lower-rise ~~that~~buildings, ~~it concerned the energy use of appliances covered by the EPCA~~ and ~~was~~in ~~therefore~~2027 ~~preempted~~for bytaller ~~federal law~~buildings. As ~~this~~With ~~legal~~few ~~challenge is ongoing~~exceptions, itall ~~remains~~new ~~uncertain~~buildings ~~what~~constructed ~~impact,~~in ifNew ~~any,~~York itCity ~~will~~must ~~have~~be onfully ~~the~~electric ~~Company’s~~by ~~operations in the State of New York~~2027.

InOn ~~May~~October ~~2019~~12, 2023, a coalition of businesses, trade associations and labor unions filed a federal lawsuit in the Northern District of New York ~~City~~ (~~location~~Mulhern ofGas ~~approximately~~Co., 3%Inc. ofet ~~our~~al ~~residential~~v. ~~home~~Rodriguez, ~~heating~~et ~~oil~~al., ~~and~~Case ~~propane~~No. ~~customers~~1:23-cv-1267) ~~enacted~~seeking ~~Local~~to ~~Law~~declare 97the asFossil aFuel ~~part~~Ban ofinvalid ~~the~~and ~~Climate~~to ~~Mobilization~~block ~~Act~~its ~~aimed~~enforcement aton ~~reducing~~the ~~GHG~~grounds ~~emissions~~that it is preempted by ~~80%~~the ~~from~~federal ~~commercial~~Energy Policy and ~~residential~~Conservation ~~buildings~~Act ("EPCA"). The lawsuit relies on a decision by ~~2050~~the U.S. ~~Starting~~Court of Appeals for the Ninth Circuit (California Restaurant Association v. City of Berkeley) which held that a ban on gas piping in ~~2024~~a new building in Berkeley, ~~this~~California was invalid on the basis that it concerned the energy use of appliances covered by the EPCA and was therefore preempted by federal law. The ~~will~~Court ~~place~~denied ~~carbon~~the ~~caps~~plaintiffs’ onmotion ~~most~~for ~~buildings~~summary ~~larger~~judgment ~~than~~and 25the case was dismissed on August 21,~~000~~ ~~square~~2025. The ~~feet~~plaintiffs appealed the Court’s ruling and filed a motion for preliminary injunction to prevent enforcement of the Fossil Fuel Ban before the appeal is heard. The defendants have filed an opposition to the plaintiffs’ motion. In ~~addition,~~a inseparate lawsuit filed on December ~~2021~~29 2023, a group of trade associations and a labor union filed a lawsuit in the federal district court for the Southern District of New York ~~City~~(Association ~~passed~~of ~~Local~~Contracting ~~Law~~Plumbers ~~154~~of the City of ~~2021~~New York, ~~which~~Inc. ~~will~~et ~~phase~~al ~~out~~v. ~~fossil~~City ~~fuel~~of ~~usage~~New York) challenging the enforcement of the New York City Building Electrification Law on substantially the same legal grounds as the plaintiffs in ~~newly~~the ~~constructed~~Mulhern ~~residential~~case. The Court granted defendant New York City’s motion to dismiss and ~~commercial~~the ~~buildings~~case ~~starting~~was indismissed ~~2024~~on ~~for~~March ~~lower-rise~~18, ~~buildings~~2025. The plaintiffs appealed the Court’s ruling. On October 14, 2025, the Second Circuit Court of Appeals ordered that the appeals of Mulhern and Association of Contracting Plumbers cases be heard in ~~2027~~tandem. On November 12, 2025, attorneys for ~~taller~~the ~~buildings~~State of New York agreed in a stipulation to delay implementation of the Fossil Fuel Ban (which was scheduled to go into effect on January 1, 2026) until the appellate court rules on the appeal of the case. ~~With~~As ~~few~~these ~~exceptions~~legal challenges are ongoing, ~~all~~it ~~new~~remains ~~buildings~~uncertain ~~constructed~~what impact, if any, it will have on the Company’s operations in New York City ~~must~~and bethe ~~fully~~State ~~electric~~of byNew ~~2027~~York.

In March 2021, the State of Massachusetts (location of approximately 4% of our residential home heating oil and propane customers) signed into law “An Act Creating A Next-Generation Roadmap for Massachusetts Climate Policy” (the “2021 Climate Law”) that establishes a 2030 limit of at least a 50% reduction in GHG emissions below the 1990 GHG emissions baseline and requires the Secretary of Energy and Environmental Affairs to set interim emissions limits and sector-specific sublimits every five years. The 2021 Climate Law tasks the Massachusetts Department of Environmental Protection (the “MassDEP”) with developing a high-level program to meet the emissions limit for residential, commercial, and industrial heating and identified a Clean Heat Standard (“CHS”) as a regulatory option for addressing this requirement. The proposed regulations released by MassDEP in May 2023 could require, among other things, heating energy suppliers to demonstrate the conversion of approximately 3% of their customers to electric heat each year. Such proposed regulations, if adopted, could dramatically negatively ~~impact the Company’s Massachusetts operations and impose onerous reporting requirements on the Company. The proposed regulations are in the comment period.~~

Onimpact ~~August 11, 2022,~~ the ~~State~~Company’s of Massachusetts ~~signed~~operations ~~into law “An Act Driving Clean Energy~~ and ~~Offshore~~impose ~~Wind”~~onerous ~~(the~~reporting ~~“2022~~requirements ~~Climate~~on Law”). The 2022 Climate Law establishes a new pilot program to allow up to 10 municipalities to require through zoning that new construction or substantial renovation projects will be fossil-fuel free, and instructs the ~~State’s Department of Energy Resources (“DOER”) to adopt regulations to structure the pilot program~~Company. The ~~DOER~~proposed ~~adopted final~~ regulations ~~structuring~~underwent ~~the~~public ~~pilot~~comment ~~program~~but inhave ~~July~~not ~~2023.~~yet The purpose of the pilot program is to allow the DOER to study the implementation of fossil fuel bans in municipalities and evaluate future best practices on decarbonization. As of January 2024, seven municipalities have been ~~approved to begin enforcing the new zoning requirements~~finalized.

~~These~~On ~~measures,~~November ~~which have or may have the effect of reducing or eliminating GHG emissions from fossil fuel-burning vehicles~~22, ~~boilers and furnaces~~2024, ~~could~~the ~~significantly~~MassDEP ~~negatively~~finalized ~~impact~~amendments to the ~~Company’s~~Greenhouse ~~operations~~Gas inEmissions ~~New~~Regulation. The ~~York~~amendments ~~City,~~implement ~~New~~registration ~~York State~~ and ~~Massachusetts,~~reporting ~~which together constitute a material portion~~ of ~~the~~GHG ~~Company’s~~emissions ~~business.~~reporting ~~Other~~requirements ~~states~~for incompanies ~~which~~selling ~~the Company operates~~ and ~~that~~distributing ~~are~~heating ~~material~~fuels to ~~the~~homes ~~Company’s operations, such as Connecticut, Rhode Island~~ and ~~New~~businesses ~~Jersey,~~in ~~have adopted similar GHG laws or have otherwise announced GHG reduction targets~~Massachusetts. ~~However,~~MassDEP ~~while~~extended ~~we cannot predict at this time whether and in what manner~~ the ~~New~~initial ~~York~~registration ~~CLCPA,~~deadline ~~the~~from ~~Massachusetts~~December ~~2021 Climate Law~~31, ~~the~~2024 ~~Massachusetts~~until ~~2022~~January ~~Climate Law~~31, or2025 ~~other state~~ and ~~local~~the first GHG ~~laws~~emissions orreporting ~~targets~~deadline ~~could~~from ~~impact~~April ~~the Company~~30, ~~these~~2025 ~~measures~~to ~~could~~June ~~over~~2, ~~time have a material negative impact on the Company~~2025.

On January 20, 2025, in his first day in office, President Trump signed an Executive Order re-withdrawing the United States from the Paris Agreement and from any other commitments made under the United Nations Framework Convention on Climate Change. Since then, President Trump has issued a series of executive orders signaling a potential shift in environmental and energy policy in the United States. For example, on April 8, 2025, the President issued an executive order, “Protecting American Energy from State Overreach,” which directs the Attorney General to: (1) identify and take action against state laws and policies that burden the use of domestic energy resources and that are unconstitutional, preempted by federal law, or otherwise unenforceable; (2) prioritize taking action against laws and policies purporting to address “climate change” policies, or involving governmental, environmental and social initiatives, environmental justice, carbon or GHG emissions, and funds to collect carbon penalties or carbon taxes; and (3) submit a report to the President detailing actions taken and additional recommendations to protect American energy pursuant to the executive order in 60 days. Changes to United States climate change strategy under the second Trump administration remain subject to the ultimate passage of legislation and action of federal and state regulatory agencies; therefore, the impact to our industry and our current and future operations due to climate change and GHG emission regulation is unknown at this time.

State Law Minimum Biodiesel Blending Requirements. Commencing July 1, 2025, we are subject to an increase from the current level of 5% to now a level of 10% in the minimum percentage of biodiesel that is required to be blended with home heating oil sold for heating purposes in buildings located in the States of New York and Connecticut (where a significant portion of our heating oil customers are located), and an increase from the current level of 10% to now a level of 20% in the minimum percentage of biodiesel that is required to be blended with home heating oil sold for heating purposes in buildings in Rhode Island. Depending on the relationship of home heating oil and biodiesel, these regulations may increase or decrease our wholesale product costs in New York, Connecticut or Rhode Island.

Environmental and Safety Regulations. We are also subject to various federal, state and local environmental, health and safety laws and regulations. Generally, these laws impose limitations on the discharge or emission of pollutants and establish standards for the handling of solid and hazardous wastes. These laws include the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), the Clean Air Act, the Occupational Safety and Health Act, the Emergency Planning and Community Right to Know Act, the Clean Water Act, the Oil Pollution Act, and comparable state statutes. CERCLA, also known as the “Superfund” law, imposes joint and several liabilities without regard to fault or the legality of the original conduct on certain classes of persons that are considered to have contributed to the release or threatened release of a hazardous substance into the environment. Products stored and/or delivered by us and certain automotive waste products generated by our fleet are hazardous substances within the meaning of CERCLA or otherwise subject to investigation and cleanup under other environmental laws and regulations. While we are currently not involved with any material CERCLA claims, and we have implemented programs and policies designed to address potential liabilities and costs under applicable environmental laws and regulations, failure to comply with such laws and regulations could result in civil or criminal penalties or injunctive relief in cases of non-compliance or impose liability for remediation costs.

We have incurred and continue to incur costs to address soil and groundwater contamination at some of our locations, including legacy contamination at properties that we have acquired. A number of our properties are currently undergoing remediation, in some instances funded by prior owners or operators contractually obligated to do so. To date, no material issues have arisen with respect to such prior owners or operators addressing such remediation, although there is no assurance that this will continue to be the case. In addition, we have been subject to proceedings by regulatory authorities for alleged violations of environmental and safety laws and regulations. We do not expect any of these liabilities or proceedings of which we are aware to result in material costs to, or disruptions of, our business or operations.

Transportation of our products by truck is subject to regulations promulgated under the Federal Motor Carrier Safety Act. These regulations cover the transportation of hazardous materials and are administered by the United States Department of Transportation or similar state agencies. Several of our oil terminals are governed by the United States Coast Guard operations Oversite, Federal OPA 90 FRP programs and Federal Spill Prevention Control and Countermeasure programs. All of our propane bulk terminals are governed under Homeland Security Chemical Facility Anti-Terrorism Standards programs. We conduct ongoing training programs to help ensure that our operations are in compliance with applicable regulations. We maintain various permits that are necessary to operate some of our facilities, some of which may be material to our operations.

ITEM 1A. RISK FACTORS

You should consider carefully the risk factors discussed below, as well as all other information, as an investment in the Company involves a high degree of risk. We are subject to certain risks and hazards due to the nature of the business activities we conduct. The risks discussed below, any of which could materially and adversely affect our business, financial condition, cash flows, results of operations and cash available for distributions to our unitholders, could result in a partial or total loss of your investment, and are not the only risks we face. We may experience additional risks and uncertainties not currently known to us or, as a result of developments occurring in the future, conditions that we currently deem to be immaterial may also materially and adversely affect us.

Wholesale Product Price Volatility and Supply Risks Associated with our Business

Fluctuations in wholesale product costs may have adverse effects on our business, financial condition, results of operations, or liquidity.

Increases in wholesale product costs may have adverse effects on our business, financial condition and results of operations, including the following:

•

reduced profit margins;

•

customer conservation;

•

customer attrition due to customers converting to lower cost heating products or moving to lower cost suppliers;

•

reduced liquidity as ~~a result of higher net receivables including customer credit balances, and/or inventory balances as~~ we must fund a significant portion of any increase in receivables, and inventory and all hedging costs from our own cash resources ~~and thereby reduce or eliminate funds that would otherwise be available for distributions and other purposes~~;

•

higher interest expense as a result of increased working capital borrowing to finance higher receivables and/or inventory balances; and higher bad debt expense and credit card processing costs as a result of higher selling prices.

Our business is a “margin-based” business in which gross profit depends on the excess of sales prices per gallon over supply costs per gallon. Consequently, our profitability is sensitive to increases in the wholesale product cost caused by changes in supply, geopolitical forces and other market conditions. Although our wholesale product costs are closely linked to the price of diesel fuel, diesel fuel prices do not always correspond to increases or decreases in consumer demand for our products. Consequently, our wholesale product prices may rise even though demand for our heating oil products is down due to, among other things, warm winter temperatures. Significant increases in product and energy costs result in higher operating expenses, such as credit card fees, bad debt expense, and vehicle fuels, and also lead to higher working capital requirements, including higher premiums and cash requirements for some of our hedging instruments. In certain cases, we cannot pass on to our customers immediately or in full all cost increases by increasing our retail sales prices. This, in turn, negatively affects our profit margins. We cannot predict with any certainty the impact of periods of high wholesale product costs on future profit margins.

During periods of high wholesale product costs, the prices we charge our customers generally increase. High prices can lead to customer conservation and attrition, resulting in reduced demand for our products. Additionally, in an effort to retain existing accounts and attract new customers we may offer discounts, which will impact the net per gallon gross margin realized. Increases in wholesale product prices may also slow our customer collections as customers ~~are more likely to~~ delay the payment of their bills, leading to higher accounts receivable.

If increases in wholesale product costs cause our working capital requirements to exceed the amounts available under our revolving credit facility or should we fail to maintain the required availability or fixed charge coverage ratio, we would not have sufficient working capital to operate our business or cash available for distributions to unitholders.

When the wholesale price of home heating oil declines significantly after a customer enters into a price protection arrangement, some customers attempt to renegotiate their arrangement in order to enter into a lower cost pricing plan with us or terminate their arrangement and switch to a competitor, which may adversely impact our gross profit and operating results.

If, due to supply constraints or shortages, we cannot purchase sufficient quantities of products to meet our customer’s needs, our business and operations will be adversely affected.

Constraints in physical product supplies could adversely affect our ability to deliver our products and services in a timely manner, cause an increase in wholesale prices and a decrease in supply, lost sales, customer attrition, increased supply chain costs, or damage to our reputation, and could negatively impact our financial performance or financial condition. Constraints have been and could be caused by numerous factors including disruption within our supply chain network due to unforeseen events beyond our control. Such disruptions may result from weather-related events; natural disasters; international trade disputes or trade policy changes or restrictions; tariffs or import-related taxes; third-party strikes, lock-outs, work stoppages or slowdowns; shortages of supply chain labor, including truck drivers; shipping capacity constraints, including shortages of related equipment; third-party contract disputes; supply or shipping interruptions or costs; military conflicts; acts of terrorism; public health issues, including pandemics and related shut-downs, re-openings, or other actions by the government; civil unrest; or other factors beyond our control. In addition, constraints in physical product supplies could be caused by s, imbalances in supply and demand of liquid product, exacerbated by geopolitical forces, such as the wars in the Ukraine and in the Middle East. Further, backwardated energy markets, which exist when the current market price of wholesale product is higher than the futures price, have caused and may in the future cause suppliers to reduce physical inventories. We expect to cover a substantial majority of our expected heating oil and propane needs during the heating season for our full service residential and commercial customers with physical supply contracts and inventory on-hand at the beginning of the heating season. The remainder of our customer’s needs are satisfied through spot product purchases. During periods when supplies are constrained, we have paid and may continue to pay significant premiums over the wholesale product cost to ensure prompt delivery of spot purchases. In certain cases, these premium payments cannot be passed on to our customers, thereby reducing our profit margins.

If service at our third-party terminals, the common carrier pipelines used, or the barge companies or third-party haulers we hire to move product is interrupted, our operations would be adversely affected.

The products that we sell are transported in either barge, pipeline or in truckload quantities to third-party terminals where we have contracts to temporarily store our products. Any significant interruption in the service of these third-party terminals, the common carrier pipelines used, or the barge companies and third-party haulers that we hire to move product would adversely affect our ability to obtain product.

The risk of global terrorism, political unrest and war may adversely affect the economy and the price and availability of the products that we sell and have a material adverse effect on our business, financial condition and results of operations.

Terrorist attacks, political unrest and war may adversely impact the price and availability of the products that we sell, our results of operations, our ability to raise debt or equity capital and our future growth. An act of terror could result in disruptions of crude oil supplies, markets and facilities, and the source of the products that we sell could be direct or indirect targets. Terrorist activity may also hinder our ability to transport our products if our normal means of transportation become damaged as a result of an attack. Instability in the financial markets as a result of terrorism could also affect our ability to raise capital. Terrorist activity could likely lead to increased volatility in the prices of our products.

Our hedging strategy may adversely affect our liquidity.

We purchase derivatives, futures contracts and swaps of diesel fuel primarily from members of our lending group and Cargill Inc. in order to mitigate exposure to market risk associated with our inventory and the purchase of home heating oil for price-protected customers. Future positions require an initial cash margin deposit and daily mark-to-market maintenance margin, whereas options are generally paid either upfront or when they expire. Any cash payment reduces our liquidity, as we must pay for the option before any sales are made to the customer. Mark-to-market exposure with our bank group reduces our borrowing base and as such can reduce the amount available to us under our credit agreement.

home heating oil for price-protected customers. Future positions require an initial cash margin deposit and daily mark-to-market maintenance margin, whereas options are generally paid either upfront or when they expire. Any cash payment reduces our liquidity, as we must pay for the option before any sales are made to the customer. Mark-to-market exposure with our bank group reduces our borrowing base and as such can reduce the amount available to us under our credit agreement.

A significant portion of our home heating oil volume is sold to price-protected customers (ceiling and fixed), and our gross margins could be adversely affected if we are not able to effectively hedge against fluctuations in the volume and cost of product sold to these customers.

A significant portion of our home heating oil volume is sold to ~~individual~~ customers under arrangements pre-establishing the ceiling sales price or a fixed price of home heating oil over a fixed period. When the customer makes a purchase commitment for the next period, we concurrently purchase option contracts, swaps and futures contracts for diesel fuel covering a substantial majority of the heating oil that we expect to sell to these price-protected customers. The price of heating oil is closely linked to the price of diesel fuel. The amount of home heating oil volume that we hedge per price-protected customer with diesel fuel derivatives is based upon the estimated fuel consumption per average customer, per month by location. If the actual usage exceeds the amount of the hedged volume on a monthly basis, we could be required to obtain additional volume at an unfavorable cost, which may reduce per gallon margins. In addition, should actual usage in any month be less than the hedged volume (including, for example, as a result of warm winters and early terminations by price protected customers), we may incur additional hedging costs which reduce our gross profit margins. Currently, we have elected not to designate our derivative instruments as hedging instruments under FASB ASC 815-10-05 Derivatives and Hedging, and the change in fair value of the derivative instruments is recognized in our statement of operations. Therefore, we experience volatility in earnings as these currently outstanding derivative contracts are marked-to-market and non-cash gains or losses are recorded in the statement of operations.

Our risk management policies cannot eliminate all commodity price risk or the impact of adverse market conditions which can adversely affect our financial condition, results of operations and cash available for distribution to our unitholders. In addition, any noncompliance with our risk management policies could result in significant financial losses.

While our hedging policies are designed to minimize commodity risk, some degree of exposure to unforeseen fluctuations in market conditions remains. For example, we change our hedged position daily in response to movements in our inventory. Any difference between the estimated future sales from inventory and actual sales will create a mismatch between the amount of inventory and the hedges against that inventory, and thus change the commodity risk position that we are trying to maintain. We monitor processes and procedures to reduce the risk of unauthorized trading and to maintain substantial balance between purchases and sales or future delivery obligations. We can provide no assurance, however, that these steps will detect and/or prevent all violations of such risk management policies and procedures, particularly if deception or other intentional misconduct is involved.

~~We rely on the continued solvency of our wholesale product suppliers and derivatives, insurance and weather hedge counterparties.~~ 15

IfWe ~~one~~rely ofon our wholesale product suppliers were to fail, our liquidity, results of operations and financial condition could be materially adversely impacted, as we may be required to purchase product from other sources which may be at higher prices than we were prepared to pay. If counterparties to the ~~derivative~~continued ~~instruments~~solvency ~~that we use to hedge the cost~~ of ~~home heating oil sold to price-protected customers, physical inventory and~~ our ~~vehicle~~wholesale ~~fuel~~product ~~costs were to fail, our liquidity, operating results~~ and ~~financial~~equipment ~~condition~~suppliers ~~could be materially adversely impacted, as we would be obligated to fulfill our operational requirement of purchasing, storing~~ and ~~selling home heating oil and vehicle fuel~~derivatives, ~~while losing the mitigating benefits of economic hedges with a failed counterparty. If one of our~~ insurance ~~carriers were to fail, our liquidity, results of operations~~ and ~~financial condition could be materially adversely impacted, as we would have to fund any catastrophic loss. If our~~ weather hedge counterparties ~~were to fail, we would lose the protection of our weather hedge contract~~.

If one of our wholesale product and equipment suppliers were to fail, our liquidity, results of operations and financial condition could be materially adversely impacted, as we may be required to purchase product from other sources which may be at higher prices than we were prepared to pay. If counterparties to the derivative instruments that we use to hedge the cost of home heating oil sold to price-protected customers, physical inventory and our vehicle fuel costs were to fail, our liquidity, operating results and financial condition could be materially adversely impacted, as we would be obligated to fulfill our operational requirement of purchasing, storing and selling home heating oil and vehicle fuel, while losing the mitigating benefits of economic hedges with a failed counterparty. If one of our insurance carriers were to fail, our liquidity, results of operations and financial condition could be materially adversely impacted, as we would have to fund any catastrophic loss. If our weather hedge counterparties were to fail, we would lose the protection of our weather hedge contract.

Risks Related to Customer Attrition, Competition, and Demand for Our Products

Our operating results will be adversely affected if we continue to experience significant net customer attrition in our home heating oil and propane customer base.

The following table depicts our gross customer gains, losses and net attrition from fiscal year ~~2020~~2021 to fiscal year ~~2024~~2025. Net customer attrition is the difference between gross customer losses and customers added through marketing efforts. Customers added through acquisitions are not included in the calculation of gross customer gains. However, additional customer gains that are obtained through marketing efforts or lost at newly acquired businesses are included in these calculations from the point of closing going forward. Customer attrition percentage calculations include customers added through acquisitions in the denominators of the calculations on a weighted average basis from the closing date.


	Fiscal Year Ended September 30,
	2025			2024			2023			2022			2021
Gross customer gains		8.8	%		9.8	%		12.0	%		11.9	%		10.7	%
Gross customer losses		13.5	%		14.0	%		15.6	%		15.6	%		14.6	%
Net attrition		(4.7	%)		(4.2	%)		(3.6	%)		(3.7	%)		(3.9	%)

calculations include customers added through acquisitions in the denominators of the calculations on a weighted average basis from the closing date.

	Fiscal Year Ended September 30,
	2024			2023			2022			2021			2020
Gross customer gains		9.8	%		12.0	%		11.9	%		10.7	%		12.2	%
Gross customer losses		14.0	%		15.6	%		15.6	%		14.6	%		15.6	%
Net attrition		(4.2	%)		(3.6	%)		(3.7	%)		(3.9	%)		(3.4	%)

The gain of a new customer does not fully compensate for the loss of an existing customer because of the expenses incurred during the first year to add a new customer. Typically, the per gallon margin realized from a new account added is less than the margin of a customer that switches to another provider. Customer losses are the result of various factors, including but not limited to, wholesale product price volatility, price competition, warmer than normal weather, customer relocations and home sales/foreclosures, credit worthiness, service disruptions, and conversions to natural gas and electricity.

Periods of high wholesale product costs due to energy market volatility and inflation have added to our difficulty in reducing net customer attrition. Warmer than normal weather has also contributed to an increase in attrition as customers perceive less need for a full-service provider like ourselves.

A substantial majority of the Company’s price-protected customers have agreements with us that are subject to annual renewal in the period between April and November of each fiscal year. If a significant number of these customers elect not to renew their price-protected agreements with us and do not continue as our customers under a variable price-plan, this will adversely impact our net customer attrition and, consequently, the Company’s near term profitability, liquidity and cash flow.

If we are not able to reduce the current level of net customer attrition or if such level should increase, attrition will have a material adverse effect on our business, operating results and cash available for distributions to unitholders. For additional information about customer attrition, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Customer Attrition.”

Because of the highly competitive nature of our business, we may not be able to retain existing customers or acquire new customers, which would have an adverse impact on our business, operating results and financial condition.

Our business is subject to substantial competition. Most of our operating locations compete with numerous distributors, primarily on the basis of price, reliability of service and responsiveness to customer service needs. Each operating location operates in its own competitive environment.

We compete with distributors offering a broad range of services and prices, from full-service distributors, such as ourselves, to those offering delivery only. As do many companies in our business, we provide home heating equipment repair service on a 24-hour-a-day, seven-day-a-week, 52 weeks a year basis. We believe that this tends to build customer loyalty. In some instances, homeowners have formed buying cooperatives that seek to purchase home heating oil from distributors at a price lower than individual customers are otherwise able to obtain. We also compete for retail customers with suppliers of alternative energy products, principally natural gas, propane (in the case of our home heating oil operations) and electricity. If we are unable to compete effectively, we may lose existing customers and/or fail to acquire new customers, which would have a material adverse effect on our business, operating results and financial condition.

Energy efficiency and new technology may reduce the demand for our products and adversely affect our operating results.

Increased conservation and technological advances, including installation of improved insulation and the development of more efficient furnaces and other heating devices, such as electric heat pumps, have adversely affected the demand for our products by retail customers. Future conservation measures or technological advances in heating, conservation, energy generation or other devices might reduce demand and adversely affect our operating results.

Our operating results will be adversely affected if we experience significant net customer attrition from conversions to alternative energy products, principally natural gas or electricity.

The following table depicts our estimated customer losses to natural gas and electricity conversions for the last five fiscal years. Losses to natural gas and electricity in our footprint for the home heating oil industry could be greater or less than our estimates.

	Fiscal Year Ended September 30,
	2024			2023			2022			2021			2020
	2025			2024			2023			2022			2021
Customer losses to natural gas conversion and electricity		(1.43	)%		(1.64	)%		(1.56	)%		(1.15	)%		(1.1	)%

In addition to our direct customer losses to natural gas and electricity competition, any conversion to natural gas or electricity by a heating oil consumer in our geographic footprint reduces the pool of available customers from which we can gain new heating oil customers, and could have a material adverse effect on our business, operating results and financial condition.

If we do not make acquisitions on economically acceptable terms, we will not be able to replace or grow our declining customer base.

Generally, home heating oil and propane are secondary energy choices for new housing construction, because natural gas is usually selected when the infrastructure exists. In certain areas in our operating footprint, state and local legislatures are mandating using electricity in new building construction, thus displacing heating systems using fossil fuels, such as heating oil and propane. As such, our industry is declining. Accordingly, our ability to maintain or grow our customer base will depend on our ability to make acquisitions on economically acceptable terms. We cannot ~~assure~~assume that we will be able to identify attractive acquisition candidates in the future or that we will be able to acquire businesses on economically acceptable terms. Adverse operating and financial results may limit our access to capital and adversely affect our ability to make acquisitions.

Our acquisition activities could result in operational difficulties, unrecoverable costs and other negative consequences, any of which may adversely impact our financial condition and results of operations.

Any acquisition may involve potential risks to us and ultimately to our unitholders, including an increase in our indebtedness, an increase in our working capital requirements, an inability to integrate the operations of the acquired business, an excess of customer loss from the acquired business, loss of key employees from the acquired business and the ~~assumption~~exposure ofto ~~additional~~post-closing liabilities, ~~including~~of ~~environmental~~the ~~liabilities~~seller or otherwise associated with the acquired business.

Since weather conditions may adversely affect the demand for home heating oil and propane, our business, operating results and financial condition are vulnerable to warm winters.

Weather conditions in regions in which we operate have a significant impact on the demand for home heating oil and propane because our customers depend on this product largely for space heating purposes. As a result, weather conditions may materially adversely impact our business, operating results and financial condition. During the peak-heating season of October through March, sales of home heating oil and propane historically have represented approximately 80% of our annual volume sold. Actual weather conditions can vary substantially from year to year or from month to month, significantly affecting our financial performance. Climate change may result in increased weather volatility. See “We face possible risks and costs associated with the effects of changes in climate and severe weather” in these Risk Factors. Warmer than normal temperatures in one or more regions in which we operate can significantly decrease the total volume we sell and the gross profit realized and, consequently, our results of operations.

To partially mitigate the adverse effect of warm weather on cash flows, we have used weather hedge contracts for a number of years. In general, such weather hedge contracts provide that we are entitled to receive a specific payment per heating degree-day shortfall, when the total number of heating degree-days in the hedge period is less than the ten year average. The “payment thresholds,” or "strikes," are set at various levels. The hedge period runs from November 1, through March 31, of a fiscal year taken as a whole. Although we have entered into weather hedges for fiscal ~~2025~~2026 and in prior years' periods, there can be no assurance that weather hedge contracts on historical terms and prices will continue to be available past fiscal ~~2025~~2026. There can be no assurance that our weather hedge contracts, if any, will fully or substantially offset the adverse effects of warmer weather on our business and operating results or that colder weather will result in enough profit to offset our hedging costs.

if any, will fully or substantially offset the adverse effects of warmer weather on our business and operating results or that colder weather will result in enough profit to offset our hedging costs.

Our operating results are subject to seasonal fluctuations.

Our operating results are subject to seasonal fluctuations since the demand for home heating oil and propane is greater during the first and second fiscal quarter of our fiscal year, which is the peak heating season. The seasonal nature of our business has resulted on average in the last five years in the sale of approximately 30% of our volume of home heating oil and propane in the first fiscal quarter and 50% of our volume in the second fiscal quarter of each fiscal year. As a result, we generally realize net income in our first and second fiscal quarters and net losses during our third and fourth fiscal quarters and we expect that the negative impact of seasonality on our third and fourth fiscal quarter operating results will continue. Thus, any material reduction in the profitability of the first and second quarters for any reason, including warmer than normal weather and wholesale product price volatility, generally cannot be made up by any significant profitability improvements in the results of the third and fourth quarters.

We face possible risks and costs associated with effects of changes in climate and severe weather.

We cannot predict changes in climate. The physical effects of changes in climate could have a material adverse effect on our business and operations. Since weather conditions may adversely affect the demand for home heating oil and propane, our business, operating results and financial condition are vulnerable to warm winters. To the extent that changes in climate impact weather patterns, our markets could experience severe weather. If the frequency or magnitude of severe weather conditions or natural disasters such as hurricanes, blizzards or earthquakes increase, as a result of changes in climate or for other reasons, our results of operations and our financial performance could be negatively impacted by the extent of damage to our facilities or to our customers’ residential homes and business structures, or of disruption to the supply or delivery of the products we sell.

Risks Related to Regulatory and Environmental Matters - See also Item 1 “Business – Government Regulations”

Federal, state and local legislation in response to climate change has the potential to adversely impact the Company’s operations and reduce demand for our products and services.

~~There~~In isthe ~~increasing~~recent ~~attention~~years, inthere ~~the~~has ~~United~~been ~~States~~increased ~~and~~governmental ~~worldwide~~regulation ~~concerning~~in ~~the~~response ~~issue~~to of climate change and concerning the effect of greenhouse gas (“GHG”) emissions, from the combustion of carbon-based fossil fuels. Our heating oil and propane products are widely considered to be fossil fuels that produce GHG emissions. ToThe ~~combat~~State ~~the cause~~ of ~~global~~New ~~warming domestically~~York, ~~President~~where ~~Biden~~a ~~identified~~majority ~~climate~~of ~~change~~our asoperations ~~one~~are oflocated, ~~his~~Massachusetts, ~~administration’s~~Rhode ~~top~~Island ~~priorities~~and Connecticut and ~~pledged~~certain tomunicipalities ~~seek~~in ~~measures~~our ~~that~~operating ~~would~~footprint ~~pave~~have ~~the~~adopted ~~path~~laws, ~~for~~regulations ~~the~~and ~~U.S.~~policies toaddressing ~~achieve~~climate ~~net~~change ~~zero~~and restricting GHG emissions byfrom ~~2050~~fossil fuel burning systems. OnCommencing ~~August~~July 161, ~~2022~~2025, ~~President~~we ~~Biden~~are ~~signed~~subject ~~the~~to ~~Inflation~~an ~~Reduction~~increase ~~Act~~from ~~which~~the ~~aims~~current level of 5% to ~~reduce~~now ~~GHG~~a ~~emissions~~level byof ~~offering~~10% ~~tax~~in ~~and~~the ~~other~~minimum ~~incentives~~percentage ~~desired~~of tobiodiesel ~~encourage~~that ~~homeowners~~is required to ~~switch~~be toblended ~~alternative~~with ~~sources~~home ofheating ~~energy~~oil ~~than~~sold ~~the~~for ~~ones~~heating wepurposes ~~sell. In~~in ~~addition,~~buildings located in the ~~State~~States of New York, and Connecticut (where a ~~majority~~significant portion of our ~~operations~~customers are located), ~~Massachusetts,~~and ~~Rhode~~an ~~Island~~increase ~~and~~from ~~Connecticut~~the ~~and~~current ~~certain~~level ~~municipalities~~of 10% to now a level of 20% in ~~our~~the ~~operating~~minimum ~~footprint~~percentage ~~have~~of ~~adopted~~biodiesel ~~laws~~that is required to be blended with home heating oil sold for heating purposes in buildings in Rhode Island. Depending upon the relationship of home heating oil and biodiesel, these regulations ~~and~~may ~~policies~~decrease ~~addressing~~or ~~climate~~increase ~~change~~our ~~and~~wholesale ~~restricting~~product ~~GHG~~costs ~~emissions~~in ~~from~~New ~~fossil~~York, ~~fuel~~Connecticut ~~burning~~or ~~systems~~Rhode Island. For additional information about climate change regulations affecting us, See Item 1 “Business – Government Regulations” for a summary of certain laws, regulations and policies adopted by states and municipalities in our operating footprint addressing climate change and/or restricting GHG emissions from fossil-fuel burning systems. The federal, state and local climate change regulatory landscape is highly complex and rapidly and continuously evolving. At this time, we cannot predict whether, when, which, or in what form climate change legislation provisions and GHG emission restrictions may be enacted and what the impact of any such legislation or standards may have on our business, financial conditions or operations in the future. These measures could have a negative impact on our business over time or in the future.

Our results of operations and financial condition may be adversely affected by environmental regulations, and regulatory costs.

Our business is subject to a wide range of federal, state and local laws and regulations related to environmental and other matters. Such laws and regulations have become increasingly stringent over time. We may experience increased costs due to stricter pollution control requirements or liabilities resulting from noncompliance with operating or other regulatory permits. New regulations, such as those relating to underground storage, transportation, and delivery of the products that we sell, might adversely impact operations or make them more costly. In addition, there are environmental risks inherently associated with home heating oil operations, such as the risks of accidental releases or spills. We have incurred and continue to incur costs to remediate soil and groundwater contamination at some of our locations. We cannot be sure that we have identified all such contamination, that we know the full extent of our obligations with respect to contamination of which we are aware, or that we will not become responsible for additional contamination not yet discovered. It is possible that material costs and liabilities will be incurred, including those relating to claims for damages to property and persons and the environment. For additional information about environmental and other regulations we are subject to, see Item 1 “Business-Governmental Regulations.”

transportation, and delivery of the products that we sell, might adversely impact operations or make them more costly. In addition, there are environmental risks inherently associated with home heating oil operations, such as the risks of accidental releases or spills. We have incurred and continue to incur costs to remediate soil and groundwater contamination at some of our locations. We cannot be sure that we have identified all such contamination, that we know the full extent of our obligations with respect to contamination of which we are aware, or that we will not become responsible for additional contamination not yet discovered. It is possible that material costs and liabilities will be incurred, including those relating to claims for damages to property and persons and the environment. For additional information about environmental and other regulations we are subject to, see Item 1 “Business-Governmental Regulations.”

Changes in tax laws or regulations may have a material adverse effect on our business, cash flow, financial condition or results of operations.

New income, sales, use or other tax laws, statutes, rules, regulations or ordinances could be enacted at any time, which could adversely affect our business operations and financial performance. Further, existing tax laws, statutes, rules, regulations or ordinances could be interpreted, changed, modified or applied adversely to us. Changes to existing tax laws or the enactment of future reform legislation could have a material impact on our financial condition, results of operations and ability to pay distributions to our unitholders.

Risks Related to Information Technology and Cybersecurity

We depend on the use of information technology systems that have been and may in the future be a target of cyber-attacks.

We rely on multiple information technology systems and networks that are maintained internally and by third-party vendors, and failure or breach of these systems could significantly impede operations. In addition, our systems and networks, as well as those of our vendors, banks and counterparties, may receive and store personal or proprietary information in connection with human resources operations, customer offerings, and other aspects of our business. A cyber-attack or material network breach in the security of these systems could include the exfiltration, or other unauthorized access or disclosure, of proprietary information or employee and customer information, as well as disrupt our operations or damage our information technology infrastructure or those of third parties.

For example, in July 2021, we detected a security incident that resulted in the encryption of certain of our information technology systems. Promptly upon discovery of the incident, we launched an investigation with the assistance of an outside cybersecurity firm, notified law enforcement, and took steps to address the incident and restore full operations. As a result of our investigation of the incident, we do not believe any personal information belonging to customers was involved. However, we believe that an unauthorized third party exfiltrated and/or accessed certain employee personal identifying information (“PII”) and/or protected health information (“PHI”) relating to employee health insurance plans and human resources information, residing on some of the affected systems. We were able to continue to serve our customers without interruption. We do not believe that this incident had a material adverse effect on our business, operations or financial results. However, we cannot be certain that that similar cyber-attacks will not occur in the future. Any future cyber-attacks or incidents may have a material adverse effect on our business, operations or financial results.

It is our view that cyber-attacks are increasing in their frequency, levels of persistence, and sophistication and intensity. Furthermore, because the techniques used to obtain unauthorized access to, or to disrupt, information technology systems change frequently, we may be unable to anticipate these techniques or implement security measures that would prevent them. We may also experience security breaches that may remain undetected for an extended period. In addition, the information technology controls or legacy third party providers of an acquired business may be inadequate to prevent a future cyber-attack, unauthorized access or other data security breaches. If another cyber-attack were to occur and cause interruptions in our operations, it could have a material adverse effect on our revenues and increase our operating and capital costs, which could reduce the amount of cash otherwise available for distribution. To the extent that a future cyber-attack, security breach or other such disruption results in a loss or damage to the Company’s data, or the disclosure of PII, PHI or other personal or proprietary information, including customer or employee information, it could cause significant damage to the Company’s reputation, affect relationships with its customers, vendors and employees, lead to claims against the Company, and ultimately harm our business. In addition, we may be required to incur additional costs to mitigate, remediate and protect against damage caused by cyber-attacks, security breaches or other such disruptions in the future. We have paid and may continue to pay significantly higher insurance premiums to maintain cyber insurance coverage, and even if we are able to maintain cyber insurance coverage, it may not be sufficient in amounts and scope to cover all harm sustained by the Company in any future cyber-attack or other data security incident. For more information on management's risk management, strategy, governance and impacts from cybersecurity incidents, see “Item 1C. Cybersecurity.”

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damage caused by cyber-attacks, security breaches or other such disruptions in the future. We have paid and may continue to pay significantly higher insurance premiums to maintain cyber insurance coverage, and even if we are able to maintain cyber insurance coverage, it may not be sufficient in amounts and scope to cover all harm sustained by the Company in any future cyber-attack or other data security incident. For more information on management's risk management, strategy, governance and impacts from cybersecurity incidents, see “Item 1C. Cybersecurity.”

Risks Related to Our Workforce

Our inability to identify, hire and retain qualified individuals for our workforce could slow our growth and adversely impact our ability to operate our business.

Our success depends in part upon our ability to attract, motivate and retain a sufficient number of qualified employees to meet the needs of our business. We have experienced and may continue to experience shortages of qualified individuals to fill available positions. We place a heavy emphasis on the qualification and training of our personnel and spend a significant amount of time and money on training our team members. Any inability to recruit and retain qualified individuals may result in higher turnover and increased labor costs, could compromise the quality of our service, and could have a material adverse effect on our business, financial condition and results of operations.

A substantial portion of our workforce is unionized, and we may face labor actions that could disrupt our operations or lead to higher labor costs and adversely affect our business.

As of September 30, ~~2024~~2025, approximately 3940% of our employees were covered under 6264 different collective bargaining agreements. As a result, we are usually involved in union negotiations with several local bargaining units at any given time. There can be no assurance that we will be able to negotiate the terms of any expired or expiring agreement on terms satisfactory to us. Although we consider our relations with our employees to be generally satisfactory, we may experience strikes, work stoppages or slowdowns in the future. If our unionized workers were to engage in a strike, work stoppage or other slowdown, we could experience a significant disruption of our operations, which could have a material adverse effect on our business, results of operations and financial condition. Moreover, our non-union employees may become subject to labor organizing efforts. If any of our current non-union facilities were to unionize, we could incur increased risk of work stoppages and potentially higher labor costs.

Our obligation to fund multi-employer pension plans to which we contribute may have an adverse impact on us.

We participate in a number of multi-employer pension plans for current and former union employees covered under collective bargaining agreements. The risks of participating in multi-employer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to current and former employees of other participating employers. Several factors could require us to make significantly higher future contributions to these plans, including the funding status of the plan, unfavorable investment performance, insolvency or withdrawal of participating employers, changes in demographics and increased benefits to participants. Several of these multi-employer plans to which we contribute are underfunded, meaning that the value of such plans’ assets are less than the actuarial value of the plans’ benefit obligations.

We may be subject to additional liabilities imposed by law as a result of our participation in multi-employer defined benefit pension plans. Various Federal laws impose certain liabilities upon an employer who is a contributor to a multi-employer pension plan if the employer withdraws from the plan or the plan is terminated or experiences a mass withdrawal, potentially including an allocable share of the unfunded vested benefits in the plan for all plan participants, not just our retirees. Accordingly, we could be assessed our share of unfunded liabilities should we terminate participation in these plans, or should there be a mass withdrawal from these plans, or if the plans become insolvent or otherwise terminate.

Risks Related to Ownership of Our Common Units

Conflicts of interest have arisen and could arise in the future.

Conflicts of interest have arisen and could arise in the future as a result of relationships between the general partner and its affiliates, on the one hand, and us or any of our limited partners, on the other hand. As a result of these conflicts, the general partner may favor its own interests and those of its affiliates over the interests of the unitholders. The nature of these conflicts is ongoing and includes the following considerations:

•

The general partner’s affiliates are not prohibited from engaging in other business or activities, including direct competition with us.

•

The general partner determines the amount and timing of asset purchases and sales, capital expenditures, distributions to unitholders, unit repurchases, and our capital structure, each of which can impact the amount of cash, if any, available for distribution to unitholders, and available to pay principal and interest on debt and the amount of incentive distributions payable in respect of the general partner units.

•

The general partner decides whether to retain its counsel or engage separate counsel to perform services for us.

•

Unitholders are deemed to have consented to some actions and conflicts of interest under the Partnership Agreement that might otherwise be deemed a breach of fiduciary or other duties under applicable state law.

•

Under the Partnership Agreement, the general partner is allowed to take into account the interests of parties in addition to the Company in resolving conflicts of interest, thereby limiting its fiduciary duty to the unitholders.

•

The general partner determines whether to issue additional units or other of our securities.

•

The general partner is not restricted from causing us to pay the general partner or its affiliates for any services rendered on terms that are fair and reasonable to us or entering into additional contractual arrangements with any of these entities on our behalf.

Cash distributions (if any) are not guaranteed and may fluctuate with performance and reserve requirements.

Distributions of available cash, if any, by us to unitholders will depend on the amount of cash generated, and distributions may fluctuate based on our performance. The actual amount of cash that is available for distribution will depend upon numerous factors, many of which are out of our control.

Our credit agreement imposes restrictions on our ability to pay distributions to unitholders, including the need to maintain certain covenants. (See the credit agreement at Note 13 of the Notes to the Consolidated Financial Statements—Long-Term Debt and Bank Facility Borrowings).

If we fail to maintain an effective system of internal controls, then we may not be able to accurately report our financial results or prevent fraud. As a result, current and potential unitholders could lose confidence in our financial reporting, which would harm our business and the trading price of our common units.

Effective internal controls are necessary for us to provide reliable financial reports, prevent fraud and operate successfully as a public company. We may experience difficulties in implementing effective internal controls as part of our integration of acquisitions from private companies, which are not subject to the internal control requirements imposed on public companies. If we are unable to maintain adequate controls over our financial processes and reporting in the future or if the businesses we acquire have ineffective internal controls, our operating results could be harmed or we may fail to meet our reporting obligations. Ineffective internal controls over financial reporting could cause our unitholders to lose confidence in our reported financial information, which would likely have a negative effect on the trading price of our common units.

Our unitholder rights plan may discourage potential acquirers of the Company.

In March 2023, we adopted a unitholder rights plan, which provides, among other things, that when specified events occur, our unitholders will be entitled to purchase additional common units. The unitholders rights plan will expire on March 24, 2028, unless further extended. The common unit purchase rights are triggered ten days after the date of a public announcement that a person or group acting in concert has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of our outstanding common units. The common unit purchase rights would cause significant dilution to a person or group that attempts to acquire the Company on terms that are not approved by the board of directors of the general partner. These provisions, either alone or in combination with each other, give our general partner a substantial ability to influence the outcome of a proposed acquisition of the Company. ~~These provisions would apply even if an acquisition or other significant corporate transaction was considered beneficial by some of our unitholders.~~

These provisions would apply even if an acquisition or other significant corporate transaction was considered beneficial by some of our unitholders.

Risks Related to Our Indebtedness

Our substantial debt and other financial obligations could impair our financial condition and our ability to obtain additional financing and have a material adverse effect on us if we fail to meet our financial and other obligations.

At September 30, ~~2024~~2025, we had outstanding under our seventh amended and restated revolving credit facility agreement a $~~210~~189.0 million term loan, no ~~less~~borrowings ~~than~~outstanding ~~$0.1 million~~ under the revolver portion of the agreement, $5.21 million of letters of credit, $141.23 million hedge positions were secured under the credit agreement and our availability was $~~166~~165.50 million. (See the credit agreement at Note 13 of the Notes to the Consolidated Financial Statements—Long-Term Debt and Bank Facility Borrowings). Our debt is often substantially higher during the heating season as we access our revolving credit facilities to finance accounts receivable and inventory balances. For example, our borrowings under the revolver peaked at $7975.64 million during the fiscal ~~2024~~2025 heating season. Our substantial indebtedness and other financial obligations could:

•

impair our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, unit repurchases, paying distributions or general partnership purposes;

•

have a material adverse effect on us if we fail to comply with financial and affirmative and restrictive covenants in our debt agreements and an event of default occurs that is not cured or waived;

•

expose us to interest rate risk because a significant portion of our borrowings are at variable rates of interest; and

•

limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate~~; and~~ .

If we are unable to meet our debt service obligations and other financial obligations, we could be forced to restructure or refinance our indebtedness and other financial transactions, seek additional equity capital or sell our assets. We might then be unable to obtain such financing or capital or sell our assets on satisfactory terms, if at all.

We are not required to accumulate cash for the purpose of meeting our future obligations to our lenders, which may limit the cash available to service the final payment due on the term loan outstanding under our credit agreement.

Subject to the limitations on restricted payments that are contained in our credit agreement, we are not required to accumulate cash for the purpose of meeting our future obligations to our lenders. As a result, we may be required to refinance the final payment of our term loan, which is expected to be $110.3 million. Our ability to refinance the term loan will depend upon our future results of operation and financial condition as well as developments in the capital markets. Our general partner will determine the future use of our cash resources and has broad discretion in determining such uses and in establishing reserves for such uses, which may include but are not limited to, providing for distributions of cash to our unitholders in accordance with the requirements of our Partnership Agreement, providing for future capital expenditures and other payments deemed by our general partner to be necessary or advisable, including to make acquisitions, and repurchasing common units. Depending on the timing and amount of our use of cash, this could significantly reduce the cash available to us in subsequent periods to make payments on borrowings under our credit agreement.

timing and amount of our use of cash, this could significantly reduce the cash available to us in subsequent periods to make payments on borrowings under our credit agreement.

Restrictive covenants in our credit agreement may reduce our operating flexibility.

Our credit agreement contains various covenants that limit our ability and the ability of our subsidiaries to, among other things, incur indebtedness, make distributions to our unitholders, purchase or redeem our outstanding equity interests, sell assets, and engage in other lines of business.

These restrictions could limit our ability to obtain future financings, make capital expenditures, withstand a future downturn in our business or the economy in general, conduct operations or otherwise take advantage of business opportunities that may arise. Our credit agreement also requires us to maintain specified financial ratios and satisfy other financial conditions. Our ability to meet those financial ratios and conditions can be affected by events ~~beyond our control, such as weather conditions and general economic conditions. Accordingly, we may be unable to meet those ratios and conditions.~~

beyond our control, such as weather conditions and general economic conditions. Accordingly, we may be unable to meet those ratios and conditions.

Any breach of any of these covenants, failure to meet any of these ratios or conditions, or occurrence of a change of control would result in a default under the terms of the credit agreement and cause the amounts borrowed to become immediately due and payable. If the lenders of our indebtedness or other financial obligations accelerate the repayment of borrowings or other amounts owed, we may not have sufficient assets to repay our indebtedness or other financial obligations. If we were unable to repay those amounts, the lenders could initiate a bankruptcy proceeding or liquidation proceeding or proceed against the collateral, if any.

General Risk Factors

International tariffs could materially and adversely affect our business and results of operations.

The Trump administration has announced certain changes, and has proposed additional changes, in trade policies, including the imposition of significant tariffs on imports from other countries. These actions have resulted in, and are expected to further result in, foreign governments taking retaliatory trade actions, which could increase our cost to operate. These cost increases may result in increases in the prices we charge our customers thereby reducing demand for our products and services. To the extent that we cannot pass along cost increases by increasing the retail sales prices of our products and services, our profit margins will suffer.

The imposition of certain tariffs, including the “reciprocal tariffs” announced by the Trump administration, have been introduced and paused on numerous occasions, pending negotiations with the relevant countries. As a result, there continues to be significant uncertainty regarding the extent and duration of applicable tariffs, and their impact on the global economy. Any resulting economic downturns or market volatility may result in increased customer conservation and attrition. In response to consumer spending, we may decide to offer a higher amount of discounts and incentives than we have historically, which may adversely impact our operating results.

We are subject to operating and litigation risks that could adversely affect our operating results whether or not covered by insurance.

Our operations are subject to all operating hazards and risks normally incidental to handling, storing, transporting and otherwise providing customers with our products such as natural disasters, adverse weather, accidents, fires, explosions, hazardous material releases, mechanical failures and other events beyond our control. If any of these events were to occur, we could incur substantial losses because of personal injury or loss of life, severe damage to and destruction of property and equipment, and pollution or other environmental damage resulting in curtailment or suspension of our related operations. As a result, we may be a defendant in legal proceedings and litigation arising in the ordinary course of business. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable.

As we self-insure workers’ compensation, automobile, general liability and medical claims up to pre-established limits, we establish reserves based upon expectations as to what our ultimate liability will be for claims based on our historical factors. Periodically, we evaluate on the potential for changes in loss estimates with the support of qualified actuaries.

Other than matters for which we self-insure, we maintain insurance policies with insurers in amounts and with coverage and deductibles that we believe are reasonable and prudent. However, there can be no assurance that the ultimate settlement of these claims will not differ materially from the assumptions used to calculate the reserves or that the insurance we maintain will be adequate to protect us from all material expenses related to potential future claims.

Recessionary economic conditions and rapid inflation could adversely affect our results of operations and financial condition.

Our business and results of operations may be adversely affected by changes in national or global economic conditions, including inflation, interest rates, availability of capital markets, consumer spending rates, unemployment rates, rising health care costs, energy availability and costs, the negative impacts caused by global conflicts, pandemics and public health crises, and the effects of governmental initiatives to manage economic conditions. Volatility in financial markets and deterioration of national and global economic conditions, including rapid increases in inflation, have impacted, and may again impact, our business and operations in a variety of ways. Uncertainty about economic conditions poses a risk as our customers may reduce or postpone spending in response to tighter credit, negative financial news and/or declines in income or asset values, which could have a material

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rapid increases in inflation, have impacted, and may again impact, our business and operations in a variety of ways. Uncertainty about economic conditions poses a risk as our customers may reduce or postpone spending in response to tighter credit, negative financial news and/or declines in income or asset values, which could have a material negative effect on the demand for our products and services and could lead to increased conservation, as we have seen certain of our customers seek lower cost providers. In addition, recessionary economic conditions could negatively impact the spending and financial viability of our customers. As a result, we could experience an increase in bad debts from financially distressed customers, which would have a negative effect on our liquidity, results of operations and financial condition.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 1C. CYBERSECURITY

Risk Management and Strategy

We have implemented aan ~~comprehensive~~ information security program to assess, identify, and manage material risks from cybersecurity threats. This program includes policies and procedures that guide the development, implementation, and maintenance of security measures and controls. We utilize industry-standard metrics to evaluate the criticality of software, data assets, and operational technology. ~~Our~~We believe that our cybersecurity efforts align with the Center for Internet Security (CIS) Controls and the National Institute of Standards and Technology (NIST) Cybersecurity Framework, ~~with~~and we conduct annual assessments to ensure compliance.

Given our reliance on third-party software, service providers, and applications to support various business functions and security measures, we regularly conduct security audits and vendor management reviews. These processes are intended to ensure that third-party systems and services comply with our cybersecurity program.

Periodic cyber risk assessments of our operational technology network help us identify risks, which we address using risk-based analysis and judgment. We also conduct internal and external testing of software, hardware, and defensive systems in our efforts to uncover potential vulnerabilities. Third-party security firms are employed for certain controls and technology operations, including vulnerability scans and penetration testing. Our approach to managing third-party cybersecurity threats includes pre-acquisition due diligence, contractual obligations, and ongoing performance monitoring.

We employ governance, risk, and compliance (GRC) information technology tools to manage cybersecurity risks and maintain business continuity and disaster recovery plans to prepare for potential disruptions. Our employees receive cybersecurity awareness training upon hiring, with additional training provided on a regular basis.

Governance

The Vice President of Information Technology (IT) and the Director of IT Security are responsible for overseeing our cybersecurity risk management program and assessing cybersecurity risks. This includes managing internal cybersecurity staff, consulting with external cybersecurity experts, and staying informed through governmental and private sources. They report regularly to executive management on cybersecurity threats, resources, and program updates.

Cybersecurity risk management isand strategy are integrated into our overall risk management processes. The program monitors the prevention, detection, assessment, mitigation, and remediation of cybersecurity risks and incidents. The Vice President of IT presents updates on IT projects, including cybersecurity policies and programs, to executive management at least quarterly.

The Board of Directors has overall oversight of key risks, with strategic oversight of cybersecurity risk management delegated to the Audit Committee. Annually, the Audit Committee reviews the Company’s enterprise risk management, which includes cybersecurity. In fiscal year 2024, the Audit Committee established an IT Audit Subcommittee to enhance focus on IT-related internal controls and cybersecurity. The Board and Audit Committee have appointed one of ~~its~~the ~~independent directors and~~ members of the Audit Committee to sit on the IT Subcommittee. This subcommittee ~~meets quarterly with key company leaders to review cybersecurity risks and audit findings and reports regularly to the Audit Committee.~~

2425

meets quarterly with key company leaders to review cybersecurity risks and audit findings and reports regularly to the Audit Committee.

Impacts from Cybersecurity Threats

Although we have experienced cybersecurity incidents, we do not believe they have, or are likely to have, a material impact on the business. However, we recognize that cybersecurity threats are constantly evolving, and future incidents remain a possibility. Despite our security measures and IT controls, we cannot guarantee that future cybersecurity incidents will be prevented. A successful attack could have significant consequences for the business. For more information on the risks associated with cybersecurity threats, see “Item 1A, Risk Factors - "Risk Related to Information Technology and Cybersecurity.”"

ITEM 2. PROPERTIES

We currently provide services to our customers in the United States in twelve states and the District of Columbia, ranging from Massachusetts to Maryland from 4142 principal operating locations and 8281 depots, 5357 of which are owned and 7066 of which are leased. As of September 30, ~~2024~~2025, we had a fleet of approximately 1,~~134~~169 truck and transport vehicles, the majority of which were owned; and, 1,~~195~~211 service and ~~384~~377 support vehicles, the majority of which were leased. Our obligations under our credit agreement are secured by liens and mortgages on substantially all of the Company’s and subsidiaries’ real and personal property.

ITEM 3. LEGAL PROCEEDINGS—LITIGATION

We are involved from time to time in litigation incidental to the conduct of our business, but we are not currently a party to any material lawsuit or proceeding.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

2526

PART II

ITEM 5. MARKET FOR REGISTRANT’S UNITS, ~~AND~~ RELATED UNITHOLDER MATTERS AND ISSUER PURCHASES OF UNITS

The common units, representing limited partner interests in Star, are listed and traded on the New York Stock Exchange, Inc. (“NYSE”) under the symbol “SGU.”

The following tables set forth the range of the daily high and low sales prices per common unit and the cash distributions declared on each unit for the periods indicated.

	SGU – Common Unit Price Range								Distributions Declared
	High				Low				per Unit
	Fiscal		Fiscal		Fiscal		Fiscal		Fiscal		Fiscal
	Year		Year		Year		Year		Year		Year
Quarter Ended	~~2024~~2025		~~2023~~2024		~~2024~~2025		~~2023~~2024		~~2024~~2025		~~2023~~2024
December 31,	$	1412.7693	$	1214.2076	$	1110.0684	$	811.1006	$	0.~~1625~~1725	$	0.~~1525~~1625
March 31,	$	1213.3475	$	1312.3334	$	911.9111	$	109.9891	$	0.~~1625~~1725	$	0.~~1525~~1625
June 30,	$	1113.8545	$	1511.2285	$	911.6431	$	129.3464	$	0.~~1725~~1850	$	0.~~1625~~1725
September 30,	$	12.6420	$	1412.0064	$	~~10.~~11.37	$	1110.3111	$	0.~~1725~~1850	$	0.~~1625~~1725

As of November 30, ~~2024~~2025, there were approximately ~~185~~176 holders of record of common units.

~~There~~The ~~is no established public trading market for the~~ Company’s 0.3 million general partner units are not publicly traded or publicly listed.

Distribution Provisions

We are required to make distributions in an amount equal to our Available Cash, as defined in our Partnership Agreement, no more than 45 days after the end of each fiscal quarter, to holders of record on the applicable record dates. Available Cash, as defined in our Partnership Agreement, generally means all cash on hand at the end of the relevant fiscal quarter less the amount of cash reserves established by the Board of Directors of our general partner in its reasonable discretion for future cash requirements. These reserves are established for the proper conduct of our business (including reserves for future capital expenditures) for minimum quarterly distributions during the next four quarters and to comply with applicable laws and the terms of any debt agreements or other agreement to which we are subject. The Board of Directors of our general partner reviews the level of Available Cash each quarter based upon information provided by management.

According to the terms of our Partnership Agreement, minimum quarterly distributions on the common units accrue at the rate of $0.0675 per quarter ($0.27 on an annual basis). The information concerning restrictions on distributions required by Item 5 of this Report is incorporated by reference to Note 4 to the Company’s Consolidated Financial Statements - Quarterly Distribution of Available Cash. The credit agreement imposes certain restrictions on our ability to pay distributions to unitholders. In order to pay any distributions to unitholders or repurchase Common Units, the Company must maintain Availability (as defined in the credit agreement) not less than the greater of (i) 15% of the Line Cap (lesser of the aggregate revolving ~~credit~~commitment ~~facility borrowings~~ and the borrowing base) which was $25.7 million at September 30, 2025 and (ii) $40 million, on a historical pro forma and forward-looking basis, and a fixed charge coverage ratio of not less than 1.15 after giving pro forma effect to such distributions as if such distributions were paid on the first day of the relevant period. (See Note 13 of the Notes to the Consolidated Financial Statements —Long-Term Debt and Bank Facility Borrowings).

On October 1716, ~~2024~~2025, we declared a quarterly distribution of $0.~~1725~~1850 per unit, or $0.6974 per unit on an annualized basis, on all Common Units with respect to the fourth quarter of fiscal ~~2024~~2025, paid on November 65, ~~2024~~2025, to holders of record on October 2827, ~~2024~~2025. The amount of distributions in excess of the minimum quarterly distribution of $0.0675, were distributed in accordance with our Partnership Agreement, subject to management incentive compensation plan. As a result, $6.01 million was paid to the Common Unit holders, $0.4 million to the general partner unit holders (including $0.34 million of incentive distribution as provided in our Partnership Agreement) and $0.34 million to management pursuant to the management incentive compensation plan which provides for certain members of management to receive incentive distributions that would otherwise be payable to the General Partner.

2627

Common Unit Repurchase Plans and Retirement

Note 5 to the Consolidated Financial Statements concerning the Company’s repurchase of Common Units during the fiscal year ended September 30, ~~2024~~2025 is incorporated into this Item 5 by reference.

ITEM 6. (RESERVED)

2728

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Statement Regarding Forward-Looking Disclosure

This Annual Report on Form 10-K (this “Report”) includes “forward-looking statements” which represent our expectations or beliefs concerning future events that involve risks and uncertainties, including the impact of geopolitical events on wholesale product cost volatility, tariff regimes, including newly imposed U.S. tariffs and any additional responsive non-U.S. tariffs or additional U.S. tariffs, the price and supply of the products that we sell, our ability to purchase sufficient quantities of product to meet our customer’s needs, rapid increases in levels of inflation, the consumption patterns of our customers, our ability to obtain satisfactory gross profit margins, the effect of weather conditions on our financial performance, our ability to obtain new customers and retain existing customers, our ability to make strategic acquisitions, the impact of litigation, natural gas conversions and electrification of heating systems, pandemic and future global health pandemics, recessionary economic conditions, future union relations and the outcome of current and future union negotiations, the impact of current and future governmental regulations, including ~~climate~~federal, ~~change~~state and municipal laws restricting greenhouse gases ("GHG") emissions and federal, state and local environmental, health, and safety regulations, the ability to attract and retain employees, customer credit worthiness, counterparty credit worthiness, marketing plans, cyber-attacks, global supply chain issues, labor shortages and new technology, including alternative methods for heating and cooling residences. All statements other than statements of historical facts included in this Report including, without limitation, the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “seek,” “estimate,” and similar expressions are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to, those set forth in this Report under the headings “Risk Factors,” “Business Strategy” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation.” Important factors that could cause actual results to differ materially from our expectations (“Cautionary Statements”) are disclosed in this Report. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. Unless otherwise required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this Report.

Liquid Product Price Volatility

Volatility, which is reflected in the wholesale price of liquid products, including home heating oil, propane and motor fuels, has a larger impact on our business when prices rise. Home heating oil consumers are sensitive to heating cost increases, and this often leads to customer conservation and increased gross customer losses. As a commodity, the price of home heating oil is generally impacted by many factors, including economic and geopolitical forces and is closely linked to the price of diesel fuel. The volatility in the wholesale cost of diesel fuel as measured by the New York Mercantile Exchange (“NYMEX”), for the fiscal years ending September 30, ~~2020~~2021, through ~~2024~~2025, on a quarterly basis, is illustrated in the following chart (price per gallon):

	Fiscal 2024 (a)				Fiscal 2023				Fiscal 2022				Fiscal 2021				Fiscal 2020
	Fiscal 2025 (a)				Fiscal 2024				Fiscal 2023				Fiscal 2022				Fiscal 2021
Quarter Ended	Low		High		Low		High		Low		High		Low		High		Low		High
December 31	$	2.5113	$	32.2240	$	2.7851	$	43.5522	$	2.0678	$	24.5955	$	12.0806	$	12.5159	$	1.8608	$	21.0551
March 31		2.5316		2.9662		2.6153		32.5596		2.3661		43.4455		12.4636		14.9744		01.9546		21.0697
June 30		21.2997		2.7754		2.2329		2.7377		32.2723		52.1473		13.7727		25.1614		01.6177		12.2216
September 30		2.0623		2.6351		2.3806		32.4863		32.1338		43.0148		13.9113		24.3401		1.0891		12.2834

On November 3028, ~~2024~~2025, the NYMEX ultra low sulfur diesel contract closed at $2.1933 per gallon.

Income Taxes

New Federal Income Tax Legislation

On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains several changes to corporate taxation including changes to depreciation deductions, deductions for interest expense and reinstated 100% bonus depreciation on fixed assets acquired and placed in service after January 19, 2025.

Book versus Tax Deductions

The amount of our cash flow generated in any given year depends upon a variety of factors including the amount of our cash income taxes. The ~~required~~amount of depreciation and amortization that we deduct for book (i.e., ~~which~~financial ~~will~~reporting) ~~increase~~purposes asdiffers from the amount that the Company can deduct for Federal tax purposes. The table below compares the estimated depreciation and amortization ~~decreases.~~for ~~The~~book purposes to the amount ofthat we expect to deduct for Federal tax purposes, based on currently owned assets. While we file our tax returns based on a calendar year, the amounts below are based on our September 30 fiscal year, and the tax amounts include any bonus depreciation available for fixed assets purchased and placed in service. However, this table only includes assets purchased to date, and does not include any forecast for future annual capital purchases.

depreciation and amortization that we deduct for book (i.e., financial reporting) purposes will differ from the amount that the Company can deduct for Federal tax purposes. The table below compares the estimated depreciation and amortization for book purposes to the amount that we expect to deduct for Federal tax purposes, based on currently owned assets. While we file our tax returns based on a calendar year, the amounts below are based on our September 30 fiscal year, and the tax amounts include any bonus depreciation available for fixed assets purchased. However, this table does not include any forecast of future annual capital purchases.

Estimated Depreciation and Amortization Expense

(in thousands) Fiscal Year	Book		Tax
2024	$	32,461	$	32,544
2025	$	36,420	$	56,078
2025		29,591		27,645
2026		33,763		32,718
2026		24,141		25,236
2027		30,679		30,361
2027		22,029		23,307
2028		27,203		28,486
2028		18,808		22,309
2029		24,759		25,331
2029		16,681		19,393
2030		21,025		22,237

Weather Hedge Contracts

Weather conditions have a significant impact on the demand for home heating oil and propane because certain customers depend on these products principally for space heating purposes. Actual weather conditions may vary substantially from year to year, significantly affecting the Company’s financial performance. To partially mitigate the adverse effect of warm weather on cash flow, we have used weather hedging contracts for a number of years with several providers.

The Company entered into weather hedge contracts for fiscal ~~years~~year ~~2023~~2025 and 2024. The hedge period runs from November 1 through March 31, taken as a whole. The “Payment Thresholds,” or strikes, are set at various levels and are referenced against degree days for the prior ten year average. Under these contracts, the maximum amount the Company ~~can~~could ~~receive~~have isreceived was $15.0 million for fiscal 2025 and $12.5 million ~~annually~~for fiscal 2024. For the contracts applicable to fiscal ~~2023~~2025, we were additionally obligated to make an annual payment capped at $5.0 million if degree days exceeded the Payment Threshold. This obligation ~~does~~did not exist under the contract applicable tofor fiscal ~~year~~ 2024.

The temperatures experienced during the hedge period through March 31, ~~2024~~2025 ~~and March 31, 2023~~ were ~~warmer~~colder than the strikes in the weather hedge contracts. As a result ~~for~~in fiscal ~~2024~~2025, we increased delivery and ~~2023~~branch expense by $3.1 million under those weather hedge contracts, and paid the ~~Company~~amount ~~reduced~~in ~~delivery~~full ~~and~~in ~~branch~~April ~~expenses~~2025. ~~for~~By comparison, the ~~gains~~temperatures ~~realized~~experienced ~~under~~during ~~those~~the ~~contracts~~hedge ofperiod $7through March 31, 2024 were warmer than the strikes in the weather hedge contract.5 ~~million~~In fiscal 2024, we reduced delivery and branch expenses by $127.5 million, ~~respectively.~~under ~~The~~those ~~amounts~~weather ~~were~~hedge contracts, and received the amount in full in April 2024 ~~and April 2023, respectively~~.

For fiscal ~~2025~~2026, the Company entered into weather hedge contracts with the similar hedge period described above. The maximum that the Company can receive is $15.0 million annually and we are ~~additionally~~ obligated to make an annual payment capped at $5.0 million if degree days exceed the Payment Threshold. ~~If we had this same amount of coverage in place during fiscal 2024 we would have received $7.5 million more in April 2024.~~

Tariffs

In April 2025, the U.S. government announced a baseline tariff of 10% on certain products imported from all countries and an additional individualized reciprocal tariff on some countries, including Canada and China. Current

uncertainties about tariffs and their effects on trading relationships may affect the cost and availability of the Company's assets, such as trucks, and potentially the products and services we sell as well as potentially contribute to inflation in the markets in which we operate. Although we are continuing to monitor the economic effects of such announcements, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain.

Increases in State Law Minimum Biofuel Blending Requirements

Commencing July 1, 2025, the minimum percentage of biodiesel that is required be blended with home heating oil sold for heating purposes in buildings located in the States of New York and Connecticut (where a significant portion of our customers are located) was increased from 5% to 10%. In Rhode Island, the minimum required biodiesel blend increased from 10% to 20%, also commencing July 1, 2025. Depending upon the relationship of home heating oil and biodiesel, these regulations may decrease or increase the cost of home heating oil for Star and our competition in New York, Connecticut or Rhode Island.

Per Gallon Gross Profit Margins

We believe home heating oil and propane margins should be evaluated on a cents per gallon basis (before the effects of increases or decreases in the fair value of derivative instruments), as we believe that such per gallon margins are best at showing profit trends in the underlying business, without the impact of non-cash changes in the market value of hedges before the settlement of the underlying transaction.

A significant portion of our home heating oil volume is sold to individual customers under an arrangement pre-establishing a ceiling price or fixed price for home heating oil over a set period of time, generally twelve to twenty-four months (“price-protected” customers). When these price-protected customers agree to purchase home heating oil from us for the next heating season, we purchase option contracts, swaps and futures contracts for a substantial majority of the heating oil that we expect to sell to these customers. The amount of home heating oil volume that we hedge per price-protected customer is based upon the estimated fuel consumption per average customer per month. In the event that the actual usage exceeds the amount of the hedged volume on a monthly basis, we may be required to obtain additional volume at unfavorable costs. In addition, should actual usage in any month be less than the hedged volume, our hedging costs and losses could be greater, thus reducing expected margins.

Derivatives

FASB ASC 815-10-05 Derivatives and Hedging requires that derivative instruments be recorded at fair value and included in the consolidated balance sheet as assets or liabilities. We follow hedge accounting for our interest rate swaps, but we have opted out of, and do not follow hedge accounting for our commodity derivative instruments as hedging instruments. Regarding our interest rate hedges, to the extent our interest rate derivative instruments designated as cash flow hedges are effective, as defined under this guidance, changes in fair value are recognized in other comprehensive income until the forecasted hedged item is recognized in earnings. As mentioned, we have elected not to designate our commodity derivative instruments as hedging instruments under this guidance and, as a result, the changes in fair value of the commodity derivative instruments are recognized in our statement of operations. Therefore, we experience volatility in earnings as outstanding derivative instruments are marked-to-market and non-cash gains and losses are recorded prior to the sale of the commodity to the customer. The volatility in any given period related to unrealized non-cash gains or losses on derivative instruments can be significant to our overall results. However, we ultimately expect those gains and losses to be offset by the cost of product when purchased.

Customer Attrition

We measure net customer attrition on an ongoing basis for our full service residential and commercial home heating oil and propane customers. Net customer attrition is the difference between gross customer losses and customers added through marketing efforts. Customers added through acquisitions are not included in the calculation of gross customer gains. However, additional customers that are obtained through marketing efforts or lost at newly acquired businesses are included in these calculations from the point of closing going forward. Customer attrition percentage calculations include customers added through acquisitions in the denominators of the calculations on a weighted average basis from the closing date. Gross customer losses are the result of a number of factors, including price competition, move-outs, credit losses, conversions to natural gas and service disruptions. When a customer moves out of an existing home, we count the “move out” as a loss, and if we are successful in signing up the new homeowner, the “move in” is treated as a gain. The impact of certain geopolitical forces on liquid product prices could increase future attrition due to higher losses from credit related issues.

factors, including price competition, move-outs, credit losses, conversions to natural gas and service disruptions. When a customer moves out of an existing home, we count the “move out” as a loss, and if we are successful in signing up the new homeowner, the “move in” is treated as a gain. Customers sourced by our buying group and association partners are included in our home heating oil and propane customer base. Therefore, any changes in the relationships with these partners could impact gross customer gains and losses going forward.

Customer gains and losses of home heating oil and propane customers

Fiscal Year Ended

2024

2023

2022

2025

2024

2023

Net

Gross Customer

Gains /

Gross Customer

Gains /

Gross Customer

Gains /

Gains

Losses

(Attrition)

Gains

Losses

(Attrition)

Gains

Losses

(Attrition)

First Quarter

1715,~~100~~300

1716,~~800~~700

(~~700~~1,400

)

2617,~~500~~100

1917,~~500~~800

~~7,000~~(700

)

1926,~~800~~500

1819,500

17,~~300~~000

Second Quarter

9,~~300~~900

14,~~400~~500

(54,~~100~~600

)

9,300

1814,~~100~~400

(85,~~800~~100

)

129,~~700~~300

1718,~~300~~100

(48,~~600~~800

)

Third Quarter

4,~~700~~600

11,~~000~~600

(67,~~300~~000

)

54,~~300~~700

1211,~~600~~000

(76,300

)

65,~~400~~300

1412,~~300~~600

(7,~~900~~300

)

Fourth Quarter

7,~~900~~000

1213,~~400~~600

(46,~~500~~600

)

87,900

1412,~~600~~400

(54,~~700~~500

)

118,~~400~~900

1514,~~800~~600

(45,~~400~~700

)

Total

3936,~~000~~800

5556,~~600~~400

(1619,600

)

5039,000

6455,~~800~~600

(1416,~~800~~600

)

50,~~300~~000

6564,~~900~~800

(1514,~~600~~800

)

Customer gains (attrition) as a percentage of home heating oil and propane customer base

	Fiscal Year Ended
	2024									2023									2022
	2025									2024									2023
	Gross Customer						Net			Gross Customer						Net			Gross Customer						Net
	Gains			Losses			Gains /(Attrition)			Gains			Losses			Gains /(Attrition)			Gains			Losses			Gains /(Attrition)
First Quarter		4.3.8	%		4.51	%		(0.23	)%		6.4.3	%		4.75	%		1(0.72	)%		46.74	%		4.47	%		01.37	%
Second Quarter		2.35	%		3.67	%		(1.32	)%		2.23	%		4.3.6	%		(2.1.3	)%		32.02	%		4.13	%		(12.1	)%
Third Quarter		10.29	%		2.85	%		(1.6	)%		1.32	%		32.18	%		(1.86	)%		1.53	%		3.41	%		(1.98	)%
Fourth Quarter		21.06	%		3.12	%		(1.16	)%		2.10	%		3.51	%		(1.41	)%		2.71	%		3.75	%		(1.04	)%
Total		98.8	%		1413.05	%		(4.27	)%		129.08	%		1514.60	%		(34.62	)%		1112.90	%		15.6	%		(3.76	)%

30For fiscal 2025, the Company lost 19,600 accounts (net), or 4.7%, of its home heating oil and propane customer base, compared to 16,600 accounts lost (net), or 4.2%, of its home heating oil and propane customer base, during fiscal 2024. Gross customer gains were 2,200 accounts less than the prior year’s comparable period and gross customer losses were 800 accounts higher due largely to an increase in credit losses.

For fiscal 2024, the Company lost 16,600 accounts (net), or 4.2%, of its home heating oil and propane customer base, compared to 14,800 accounts lost (net), or 3.6%, of its home heating oil and propane customer base, during fiscal 2023. Gross customer gains were 11,000 accounts lower than the prior year’s comparable period primarily due to market conditions with regard to physical supply in the first quarter of fiscal 2023 that did not repeat in the current fiscal year and less customer move-ins. Gross customer losses were 9,200 accounts lower primarily due to reduction in the number of customer relocations and other factors.

~~For~~During fiscal ~~2023~~2025, ~~the~~we ~~Company~~estimate ~~lost~~that ~~14,800~~we ~~accounts~~lost (~~net), or 3~~1.63%,) of ~~its~~our home heating oil and propane ~~customer~~accounts ~~base, compared~~ to ~~15,600~~natural ~~accounts~~gas ~~lost~~and ~~(net),~~electricity orconversions 3versus (1.74%,) offor ~~its~~fiscal ~~home~~2024 ~~heating oil~~ and ~~propane~~(1.6%) ~~customer~~for ~~base, during~~ fiscal ~~2022~~2023. ~~Gross~~Losses ~~customer~~to ~~gains~~natural ~~were~~gas ~~300~~and ~~accounts~~electricity ~~lower~~in ~~than~~our ~~the~~footprint ~~prior~~for ~~year’s~~the ~~comparable~~heating ~~period,~~oil and ~~gross~~propane ~~customer~~industry ~~losses~~could ~~were~~be ~~1,100~~greater ~~accounts~~or ~~lower~~less ~~primarily~~than ~~due to reduction in~~ the ~~number~~Company’s ~~of customer relocations~~estimates.

During fiscal 2024, we estimate that we lost (1.4%) of our home heating oil and propane accounts to natural gas and electricity conversions versus (1.6%) for fiscal 2023 and (1.5%) for fiscal 2022. Losses to natural gas and electricity in our footprint for the heating oil and propane industry could be greater or less than the Company’s estimates.32

Acquisitions

The timing of acquisitions and the types of products sold by acquired companies impact year-over-year comparisons. ~~Subsequent~~During tofiscal ~~September 30~~2025, ~~2024~~ the Company acquired aone heating oil business and three propane businesses for approximately $080.75 million. During fiscal 2024, the Company acquired one propane business and four heating oil businesses for approximately $49.4 million. ~~During fiscal 2023, the Company acquired two heating oil businesses and one propane business for approximately $19.8 million.~~ The following tables detail the Company’s acquisition activity and the associated volume sold during the 12-month period prior to the date of acquisition.

(in thousands of gallons)
Fiscal 2025 Acquisitions
Acquisition Number	Month of Acquisition	Home Heating Oil and Propane		Motor Fuel and Other Petroleum Products		Total
1	October		709		1,126		1,835
			709		1,126		1,835
2	January		7,209		758		7,967
3	March		3,078		1,810		4,888
4	April		722		—		722
			11,718		3,694		15,412


(in thousands of gallons)
Fiscal 2024 Acquisitions
Acquisition Number	Month of Acquisition	Home Heating Oil and Propane		Motor Fuel and Other Petroleum Products		Total
1	November		1,210		222		1,432
2	November		885		369		1,254
3	February		1,473		1,097		2,570
4	February		1,936		—		1,936
5	September		17,752		—		17,752
			23,256		1,688		24,944

(in thousands of gallons)
Fiscal 2023 Acquisitions
Acquisition Number	Month of Acquisition	Home Heating Oil and Propane		Motor Fuel and Other Petroleum Products		Total
1	October		556		403		959
2	November		494		—		494
3	August		1,447		—		1,447
			2,497		403		2,900

Sale of Certain Assets

In October 2022 we sold certain assets, which included a customer list of approximately 6,500 customers, for $2.7 million (including a deferred purchase price of $0.5 million). The following table details sales generated from the assets sold:

(in thousands)	Year Ended September 30, 2022
Volume:
Home heating oil and propane		2,147
Motor fuel and other petroleum products		27
Sales:
Petroleum products	$	9,355
Installations and services		1,323
Total Sales	$	10,678

Consolidated Results of Operations

The following is a discussion of the consolidated results of operations of the Company and its subsidiaries and should be read in conjunction with the historical financial and operating data and Notes thereto included elsewhere in this Annual Report.

3233

Fiscal Year Ended September 30, ~~2024~~2025

Compared to Fiscal Year Ended September 30, ~~2023~~2024

Volume

For fiscal ~~2024~~2025, the retail volume of home heating oil and propane sold ~~decreased~~increased by 529.82 million gallons, or 211.25%, to ~~253~~282.46 million gallons, compared to ~~259~~253.24 million gallons for fiscal ~~2023~~2024. For those locations where we had existing operations during both periods, which we sometimes refer to as the “base business” (i.e., excluding acquisitions), temperatures (measured on a heating degree day basis) for fiscal ~~2024~~2025 were ~~less than 0~~8.12% ~~warmer~~colder than fiscal ~~2023~~2024 ~~and~~but 158.13% warmer than normal, as reported by NOAA. For fiscal ~~2024~~2025, net customer attrition for the base business was 4.27%. The impact of fuel conservation, along with any period-to-period differences in delivery scheduling, the timing of accounts added or lost during the fiscal years, equipment efficiency, and other volume variances not otherwise described, are included in the chart below under the heading “Other.” An analysis of the change in the retail volume of home heating oil and propane, which is based on management’s estimates, sampling, and other mathematical calculations and certain assumptions, is found below:

	Heating Oil
(in millions of gallons)	and Propane
Volume - Fiscal 2023		259.2
Net customer attrition		(12.1	)
Impact of warmer temperatures		—
Acquisitions		5.3
Sale of certain assets		(0.1	)
Other		1.1
Change		(5.8	)
Volume - Fiscal 2024		253.4
Net customer attrition		(13.2	)
Impact of colder temperatures		18.7
Acquisitions		25.1
Other		(1.4	)
Change		29.2
Volume - Fiscal 2025		282.6

The following chart sets forth the percentage by volume of total home heating oil and propane sold to residential variable-price customers, residential price-protected customers, and commercial/industrial/other customers for fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024:

	Twelve Months Ended
Customers	September 30,~~2024~~2025			September 30,~~2023~~2024
Residential Variable		4146.98	%		4244.12	%
Residential Price-Protected (Ceiling and Fixed Price)		4435.25	%		4438.96	%
Commercial/Industrial/Other		1317.97	%		1317.02	%
Total		100.0	%		100.0	%

Volume of motor fuel and other petroleum products sold decreased by 95.92 million gallons, or 74.10%, to ~~129~~123.19 million gallons for fiscal ~~2024~~2025, compared to ~~139~~129.01 million gallons for fiscal ~~2023~~2024.

Product Sales

For fiscal ~~2024~~2025, product sales decreased $~~201~~11.92 million, or 120.28%, to $1,~~448~~437.86 million, compared to $1,~~650~~448.78 million in fiscal ~~2023~~2024, due to a decrease in average selling prices ~~and~~that awas ~~decrease~~slightly offset by an increase in total volume sold of 36.93%. Selling prices decreased largely due to a decrease in wholesale product cost of $0.~~4602~~3199 per gallon, or 1512.25%, compared to fiscal 2024. Product volumes and wholesale product cost include heating oil, propane, motor fuels and other petroleum products.

Installations and Services Sales

For fiscal ~~2024~~2025, installation and service sales increased $1529.25 million, or 59.03%, to $~~317~~346.38 million, compared to $~~302~~317.13 million for fiscal ~~2023~~2024. Installation sales increased by $811.87 million, or 79.65%, and service sales increased by $617.48 million, or 39.42%. The increase was ~~partially~~ driven by $522.26 million of sales generated from recent acquisitions, and the remainder was driven by a concerted effort to expand these offerings to our customers as well as annual price increases.

Cost of Product

For fiscal ~~2024~~2025, cost of product decreased $~~223~~68.4 million, or 187.50%, to $~~980~~912.84 million, compared to $~~1,204~~980.28 million for fiscal ~~2023~~2024, due to a decrease in wholesale product cost of $0.~~4602~~3199 per gallon, or 1512.25%, ~~and~~slightly aoffset ~~decrease~~by an increase in total volume sold of 36.93%. Product volumes and wholesale product cost include heating oil, propane, motor fuels and other petroleum products.

Gross Profit—Product

The table below calculates our per gallon margins and reconciles product gross profit for home heating oil and propane and motor fuel and other petroleum products. We believe the change in home heating oil and propane margins should be evaluated before the effects of increases or decreases in the fair value of derivative instruments, as we believe that realized per gallon margins should not include the impact of non-cash changes in the market value of hedges before the settlement of the underlying transaction. On that basis, home heating oil and propane margins for fiscal ~~2024~~2025 increased by $0.~~1304~~0222 per gallon, or 81.43%, to $1.~~6800~~7022 per gallon, from $1.~~5496~~6800 per gallon during fiscal ~~2023~~2024. In the base business, home heating and propane margins for fiscal 2025 increased by $0.0512 per gallon, or 3.1% to $1.7312 per gallon. We cannot assume that the per gallon margins realized during fiscal ~~2024~~2025 are sustainable for future periods. Product sales and cost of product include home heating oil, propane, motor fuel, other petroleum products and liquidated damages billings.

Twelve Months Ended

September 30, 2024

September 30, 2023

September 30, 2025

September 30, 2024

Home Heating Oil and Propane

Amount(in millions)

PerGallon

Amount(in millions)

PerGallon

Volume

~~253~~282.46

~~259~~253.24

Sales

1,~~082~~119.08

43.~~2695~~9619

1,~~202~~082.20

4.~~6384~~2695

Cost

~~656~~638.27

2.~~5895~~2597

~~800~~656.62

32.~~0888~~5895

Gross Profit

~~425~~481.81

1.~~6800~~7022

~~401~~425.68

1.~~5496~~6800

Motor Fuel and Other Petroleum Products

Amount(in millions)

PerGallon

Amount(in millions)

PerGallon

Volume

~~129~~123.19

~~139~~129.01

Sales

~~366~~317.8

2.~~8406~~5642

~~448~~366.58

32.~~2266~~8406

Cost

~~324~~273.67

2.~~5136~~2083

~~403~~324.6

2.~~9034~~5136

Gross Profit

4244.21

0.~~3270~~3559

4442.92

0.~~3232~~3270

Total Product

Amount(in millions)

Sales

1,~~448~~437.86

1,~~650~~448.78

Cost

~~980~~912.84

~~1,204~~980.28

Gross Profit

~~468~~525.02

~~446~~468.50

For fiscal ~~2024~~2025, total product gross profit was $~~468~~525.02 million, which was $2157.52 million, or 412.82%, higher than fiscal ~~2023~~2024, due to an increase in home heating oil and propane ~~margins~~volume sold ($3349.20 million), ~~that~~an ~~was~~increase ~~partially offset by a decrease~~ in home heating oil and propane ~~volume~~margins ~~sold~~ ($96.03 million) and ~~decrease~~an increase in gross profit from other petroleum products ($21.79 million).

Cost of Installations and Services

Total installation costs for fiscal ~~2024~~2025 increased by $510.70 million or 69.09%, to $~~100~~110.9 million, compared to $95100.29 million of installation costs for fiscal ~~2023,~~2024. ~~primarily~~This increase was largely due to the higher installation ~~revenues~~sales offrom ~~$8.8~~recent ~~million~~acquisitions. Installation costs as a percentage of installation sales were 8182.71% for fiscal ~~2024~~2025 and 8381.07% for fiscal ~~2023~~2024. ~~Gross~~The gross profit from installations increased by $31.07 million ~~due to an increase in sales dollars and an improvement in the gross profit margin realized on installation sales~~.

Service expense ~~decreased~~increased by $015.27 million, or 08.16%, to $~~182~~198.52 million for fiscal ~~2024~~2025, representing 9493.27% of service sales, versus $182.75 million, or 9794.52% of service sales, for fiscal ~~2023~~2024. The ~~While~~increase was largely due to higher service ~~revenues~~sales ~~increased~~from byrecent $6acquisitions.4 ~~million~~In addition, a large proportion of our service ~~costs~~expenses ~~decreased~~are byincurred $0under fixed-fee prepaid service contract arrangements, therefore trends in service expenses may not directly correlate to trends in the related revenues.3 In ~~million~~fiscal ~~which~~2025, ~~led~~the demand for service was greater than fiscal 2024 due to ancolder ~~increase~~weather inconditions. The gross profit from service ofincreased by $62.71 million.

34We realized a combined gross profit from services and installations of $37.7 million for fiscal 2025 compared to a combined gross profit of $33.9 million for fiscal 2024, a $3.8 million increase in profitability.

million. In fiscal 2024, the company undertook certain steps to improve service performance which favorably impacted service costs when compared to fiscal 2023. In addition, a large proportion of our service expenses are incurred under fixed-fee prepaid service contract arrangements, therefore trends in service expenses may not directly correlate to trends in the related revenues especially given the warmer than normal weather conditions in fiscal 2024 and fiscal 2023. In both fiscal 2024 and 2023, the demand for service was less than expected due to the warmer than normal weather conditions.

We realized a combined gross profit from services and installations of $33.9 million for fiscal 2024 compared to a combined gross profit of $24.2 million for fiscal 2023, a $9.7 million increase in profitability.

(Increase) Decrease in the Fair Value of Derivative Instruments

During fiscal 2025, the change in the fair value of derivative instruments resulted in a $13.4 million credit as a decrease in the market value for unexpired hedges (a $1.0 million charge) was more than offset by a $14.4 million credit due to the expiration of certain hedged positions.

During fiscal 2024, the change in the fair value of derivative instruments resulted in a $19.0 million charge due to a decrease in the market value for unexpired hedges (a $14.6 million charge) and a $4.4 million charge due to the expiration of certain hedged positions.

During fiscal 2023, the change in the fair value of derivative instruments resulted in a $2.0 million charge as an increase in the market value for unexpired hedges (a $3.9 million credit) was more than offset by a $5.9 million charge due to the expiration of certain hedged positions.

Delivery and Branch Expenses

For fiscal ~~2024~~2025, delivery and branch expenses increased $1234.84 million to $~~366~~400.48 million, compared to $~~353~~366.64 million for fiscal ~~2023~~2024. ~~During~~The ~~fiscal~~temperatures experienced from November 2024 through March 2025 (the weather hedge period) were colder than the strike prices and, therefore, the ~~company~~Company recorded aan ~~benefit~~expense under ~~the~~those weather hedge contracts of $73.51 million. ~~compared~~This compares to athe ~~benefit~~prior-year ofperiod ~~$12.5~~which, ~~million~~due ~~during~~to ~~fiscal~~warmer ~~2023~~weather, ~~that~~the ~~accounts~~Company ~~for~~recorded a credit of $57.05 million ~~increase~~under inits ~~expense~~weather hedge contract. The increase was also driven by $623.41 million of expenses from recent acquisitions and a $10.47 million, orincrease ~~0.4% increases~~ in net base business expenses. InThe ~~the base business, a $6.0 million~~ increase in ~~insurance~~the ~~claim~~base ~~costs~~business ~~and~~expenses ~~premiums and $0.9 million of other net expense increases~~ was ~~partially~~driven ~~offset~~ by a $52.53 million, or 52.12%, ~~decrease~~increase in delivery expenses ~~driven~~due byto ~~the~~a 4.21 million gallon, or 1.6%, ~~decline~~increase in home heating oil and propane volume sold in the base business compared to the prior year and $2.6 million of other net expense increases that were partially offset by a $4.2 million decrease in insurance related costs.

Depreciation and Amortization Expenses

For fiscal ~~2024~~2025, depreciation and amortization expense ~~decreased~~increased $03.9 million, or 212.62%, to $3135.54 million, compared to $3231.45 million for fiscal ~~2023~~2024, primarily due to ~~intangible assets that fully amortized in the prior fiscal year~~acquisitions.

General and Administrative Expenses

For fiscal ~~2024~~2025, general and administrative expenses increased $2.61 million, or 107.24%, to $2830.45 million, compared to $2528.84 million for fiscal ~~2023~~2024, due to a $01.95 million increase in profit sharing expense, and a $0.96 million increase in salaries and benefits expenses ~~and a $0~~.~~8 million reduction in the gain on the sale of fixed assets.~~ The Company accrues approximately 6.0% of Adjusted EBITDA as defined in its profit sharing plan for distribution to its employees. This amount is payable when the Company achieves Adjusted EBITDA of at least 70% of the amount budgeted. The dollar amount of the profit sharing pool adjusts accordingly based on Adjusted EBITDA levels achieved.

Finance Charge Income

For fiscal ~~2024~~2025, finance charge income ~~decreased~~increased by $0.93 million, or 177.04%, to $4.69 million compared to $54.56 million for fiscal ~~2023~~2024, primarily due to ~~less~~higher ~~late~~ customer late payment charges ~~on reduced aged receivables that was partially driven by the reduction in sales~~.

Interest Expense, Net

For fiscal ~~2024~~2025, net interest expense ~~decreased~~increased by $32.97 million, or 2523.69%, to $1114.63 million compared to $1511.56 million for fiscal ~~2023~~2024. The year-over-year change was driven by aan ~~decrease~~increase in average borrowings of $5258.82 million from $~~211~~158.79 million for the fiscal ~~2023~~2024 to $~~158~~217.91 million for fiscal ~~2024~~2025 that was partially offset by ana ~~increase~~decrease in the weighted average interest rate from 67.53% for fiscal ~~2023~~2024 to 7.31% for fiscal ~~2024~~2025. To hedge against rising interest rates, the Company utilizes interest rate swaps. At September 30, 2025, approximately 39% of borrowings under Star's variable-rate long term debt were not subject to interest rate increases as a result of interest rate swaps.

rates, the Company utilizes interest rate swaps. At September 30, 2024, approximately 25% of borrowings under Star's variable-rate long term debt were not subject to interest rate increases as a result of interest rate swaps.

Amortization of Debt Issuance Costs

For fiscal ~~2024~~2025, amortization of debt issuance costs ~~decreased~~increased to $1.01 million from $1.10 million for fiscal ~~2023~~2024.

Other Income, Net

Other income, net for fiscal 2025 of $3.8 million represents the net gain on the sale of land and building at a New Jersey operating location with a carrying value of $1.0 million for net cash proceeds of $4.8 million.

Income Tax Expense

For fiscal ~~2024~~2025, the Company’s income tax expense ~~decreased~~increased by $016.71 million to $1329.34 million, from $1413.03 million for fiscal ~~2023~~2024. The ~~decrease~~increase was driven by a ~~decrease~~$54.3 million increase in income before income taxes and an increase in the effective income tax rate from 3027.45% for fiscal ~~2023~~2024 to 2728.56% for fiscal ~~2024~~2025 due primarily to aan ~~reduction~~increase in state taxes ~~and a decrease in valuation allowance that was partially offset by a $2~~.~~6 million increase in income before income taxes.~~

Net Income

For fiscal ~~2024~~2025, net income increased $338.3 million, or 10108.37%, to $3573.25 million, primarily due to a $1432.74 million ~~increase~~favorable change in ~~Adjusted~~the ~~EBITDA~~fair value of derivative instruments, a $324.98 million ~~decrease~~increase in ~~interest~~Adjusted ~~expense,~~EBITDA and a $03.98 million ~~decrease~~gain inon ~~depreciation~~the ~~and~~sale ~~amortization~~of ~~expenses~~land and a ~~decrease~~building inat ~~income~~a ~~tax~~New ~~expense~~Jersey ofoperating ~~$0.7~~location ~~million~~ that was partially offset by a $1716.01 million ~~unfavorable~~increase ~~change~~in income tax expense, a $3.9 million increase in ~~the~~depreciation ~~fair~~and ~~value~~amortization ofexpenses ~~derivative~~and ~~instruments~~a $2.7 million increase in interest expense.

Adjusted EBITDA

For fiscal ~~2024~~2025, Adjusted EBITDA increased by $1424.78 million, or 1522.2%, to $~~111~~136.64 million compared to fiscal ~~2023~~2024, asprimarily due to an $18.5 million increase in ~~home~~Adjusted ~~heating~~EBITDA ~~oil~~in ~~and~~the ~~propane~~base ~~per~~business ~~gallon~~and ~~margins,~~a an$16.9 million increase in ~~service~~Adjusted ~~and~~EBITDA ~~installation~~from ~~profitability~~recent ~~and~~acquisitions that was partially offset by a $10.6 million increase in expense related to the ~~additional~~Company's weather hedge contracts. The increase in Adjusted EBITDA ~~from~~in ~~acquisitions~~the ~~more~~base ~~than~~business ~~offset~~was adriven ~~reduction~~by an increase in home heating oil and propane ~~volume~~per ~~sold~~gallon inmargins, ~~the~~higher ~~base~~home ~~business~~heating oil and apropane ~~decrease~~volume insold ~~the~~due to colder weather ~~hedge~~and ~~benefit~~an ofimprovement ~~$5.0~~in ~~million~~service ~~year-over-year~~and installation profitability.

EBITDA and Adjusted EBITDA should not be considered as an alternative to net income (as an indicator of operating performance) or as an alternative to cash flow (as a measure of liquidity or ability to service debt obligations), but provide additional information for evaluating the Company’s ability to make the Minimum Quarterly Distribution.

3637

EBITDA and Adjusted EBITDA are calculated as follows:

	Twelve Months Ended September 30,
(in thousands)	~~2024~~2025			~~2023~~2024
Net income	$	3573,~~223~~495		$	3135,~~945~~223
Plus:
Income tax expense		1329,~~331~~407			13,~~984~~331
Amortization of debt issuance cost		~~988~~1,068			~~1,084~~988
Interest expense, net		1114,~~560~~323			1511,~~532~~560
Depreciation and amortization		3135,~~494~~352			3231,~~350~~494
EBITDA (a)		92153,~~596~~645			9492,~~895~~596
(Increase) / decrease in the fair value of derivative instruments		19(13,~~018~~390	)		119,~~977~~018
Adjusted EBITDA (a)		111,614			96,872
Other income, net		(3,822	)		—
Adjusted EBITDA (a)		136,433			111,614
Add / (subtract)
Income tax expense		(1329,~~331~~407	)		(13,~~984~~331	)
Interest expense, net		(1114,~~560~~323	)		(1511,~~532~~560	)
Provision for losses on accounts receivable		86,~~042~~879			98,~~761~~042
Decrease in receivables		11,271			15,566
(Increase) decrease in receivables		(14,011	)		11,271
Decrease in inventories		18,475			26,994
(Increase) decrease in inventories		(3,231	)		18,475
(Decrease) increase in customer credit balances		(15,546	)		17,585
Decrease in customer credit balances		(19,128	)		(15,546	)
Change in deferred taxes		(38,~~989~~527	)		(~~501~~3,989	)
Change in other operating assets and liabilities		~~6,002~~(789	)		~~(13~~6,~~103~~002	)
Net cash provided by operating activities	$	~~110~~70,~~978~~950		$	~~123~~110,~~658~~978
Net cash used in investing activities	$	(6199,~~185~~854	)	$	(2861,~~197~~185	)
Net cash provided by (used in) financing activities	$	22,351		$	(64,890	)
Net cash (used in) provided by financing activities	$	(63,748	)	$	22,351

(a)

EBITDA (Earnings from continuing operations before net interest expense, income taxes, depreciation and amortization) and Adjusted EBITDA (Earnings from continuing operations before net interest expense, income taxes, depreciation and amortization, (increase) decrease in the fair value of derivatives, other income (loss), net, multiemployer pension plan withdrawal charge, gain or loss on debt redemption, goodwill impairment, and other non-cash and non-operating charges) are non-GAAP financial measures that are used as supplemental financial measures by management and external users of our financial statements, such as investors, commercial banks and research analysts, to assess:

•

our compliance with certain financial covenants included in our debt agreements;

•

our financial performance without regard to financing methods, capital structure, income taxes or historical cost basis;

•

our operating performance and return on invested capital compared to those of other companies in the retail distribution of refined petroleum products, without regard to financing methods and capital structure;

•

our ability to generate cash sufficient to pay interest on our indebtedness and to make distributions to our partners; and

•

the viability of acquisitions and capital expenditure projects and the overall rates of return of alternative investment opportunities.

The method of calculating Adjusted EBITDA may not be consistent with that of other companies, and EBITDA and Adjusted EBITDA both have limitations as analytical tools and so should not be viewed in isolation and should be viewed in conjunction with measurements that are computed in accordance with GAAP. Some of the limitations of EBITDA and Adjusted EBITDA are:

•

EBITDA and Adjusted EBITDA do not reflect our cash used for capital expenditures;

•

Although depreciation and amortization are non-cash charges, the assets being depreciated or amortized often will have to be replaced and EBITDA and Adjusted EBITDA do not reflect the cash requirements for such replacements;

•

EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital requirements;

•

EBITDA and Adjusted EBITDA do not reflect the cash necessary to make payments of interest or principal on our indebtedness; and

•

EBITDA and Adjusted EBITDA do not reflect the cash required to pay taxes.

Fiscal Year Ended September 30, ~~2023~~2024

Compared to Fiscal Year Ended September 30, ~~2022~~2023

See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations within the Form 10-K for the fiscal year ended September 30, ~~2023~~2024 for the fiscal ~~2023~~2024 to fiscal ~~2022~~2023 comparative discussion.

DISCUSSION OF CASH FLOWS

We use the indirect method to prepare our Consolidated Statements of Cash Flows. Under this method, we reconcile net income to cash flows provided by operating activities by adjusting net income for those items that impact net income but do not result in actual cash receipts or payment during the period.

Operating Activities

Due to the seasonal nature of our business, cash is generally used in operations during the winter (our first and second fiscal quarters) as we require additional working capital to support the high volume of sales during this period, and cash is generally provided by operating activities during the spring and summer (our third and fourth quarters) when customer payments exceed the cost of deliveries.

During fiscal ~~2024~~2025, cash provided by operating activities decreased $1240.70 million to $~~111~~71.0 million, compared to $~~123~~111.70 million provided by operating activities during fiscal ~~2023~~2024, as a $17.3 ~~The~~million ~~decrease~~increase ~~was~~in ~~driven~~cash byflows from operations and a ~~decrease~~$5.5 inmillion ~~collection~~increase of cash from the timing of accounts payable payments was more than offset by an increase in net trade receivables on a comparable basis (including accounts receivable and customer credit balance accounts) ofthat drove a $3728.49 million ~~that~~reduction ~~was~~in ~~partially~~cash ~~offset~~provided by aoperating ~~$14~~activities. The 8.2% ~~million~~colder ~~increase~~weather inexperienced ~~cash~~throughout ~~flows~~fiscal 2025, additional volume from ~~operations~~acquisitions, ~~$5.2~~and ~~million~~a ~~less~~3.1% ~~payroll~~increase ~~taxes~~in ~~paid~~sales infor the ~~first~~fourth ~~fiscal~~ quarter of ~~2024~~fiscal ~~versus~~2025 ~~the~~drove ~~first~~an ~~fiscal~~increase ~~quarter~~in ofnet ~~2023~~trade receivables as compared to the ~~result~~prior ofyear. Days ~~deferring~~sales ~~payment~~outstanding increased slightly by 1.5 days to 37.9 days as of ~~certain~~September ~~payroll~~30, ~~tax~~2025 ~~withholdings~~compared into ~~first~~36.4 ~~quarter~~days as of ~~fiscal~~September ~~2021~~30, 2024. The timing of inventory purchases further drove a $21.7 million increased cash usage compared to the ~~first~~prior ~~fiscal~~year ~~quarter~~as we entered the 2025 heating season with a lower level of inventory than in fiscal ~~2023~~2024, as well as a $27.15 million ~~decrease~~reduction in cash required tofor ~~purchase~~collateral ~~product~~and ~~inventory~~settlement liabilities at derivative counterparties in the prior fiscal year that did not repeat in the current fiscal year, and $34.27 million of other net changes in working capital.

During fiscal ~~2023~~2024, cash provided by operating activities ~~increased~~decreased $8912.87 million to $~~123~~111.70 million, compared to $33123.97 million provided by operating activities during fiscal ~~2022~~2023. The ~~increase~~decrease was driven by ana ~~increase~~decrease in collection of trade receivables on a comparable basis (including accounts receivable and customer credit balance accounts) of $7037.84 million ~~and~~that awas ~~$48.1~~partially ~~million~~offset ~~decrease in cash required to purchase liquid product inventory on-hand at fiscal year end primarily driven~~ by a ~~reduction in cost of recent inventory purchases compared to the prior year. Further contributing to the increase was a~~ $14.~~0 million decrease in net cash paid for certain hedge positions and $~~2.5 million increase in collection of derivative settlement receivables on a comparative basis. The increase was partially offset by a $25.9 million unfavorable change in accounts payable due to the pricing and timing of inventory purchases, an $11.7 million decrease in cash flows from operations, $5.2 million ~~more~~less in payroll taxes paid in the first fiscal quarter of ~~2023~~2024 versus the first fiscal quarter of ~~2022~~2023 as the result of deferring payment of certain payroll tax withholdings in first quarter of fiscal 2021 to the first fiscal quarter of fiscal ~~2023, and $2.8 million of other net changes in working capital.~~

3839

2023, a $2.1 million decrease in cash required to purchase product inventory and $3.2 million of other net changes in working capital.

Investing Activities

Our capital expenditures for fiscal 2025 totaled $14.9 million, as we invested in our fleet and other equipment ($9.1 million), refurbished certain physical plants ($2.2 million), expanded our propane operations ($1.7 million) and invested in computer hardware and software ($1.9 million).

During fiscal 2025, $2.6 million of earnings were reinvested into an irrevocable trust to secure certain liabilities for our captive insurance company. The cash deposited into the trust is shown on our balance sheet as captive insurance collateral and, correspondingly, reduced cash on our balance sheet. We were not required to make any additional funding into the captive due in part to our historical and projected claims experience and the interest income generated in fiscal 2025.

During fiscal 2025, the Company acquired one heating oil business and three propane businesses for approximately $80.5 million in cash. The gross purchase price was allocated $38.7 million to intangible assets, $17.7 million to goodwill, $25.2 million to fixed assets, and reduced by $1.1 million in negative working capital.

During fiscal 2025, the Company acquired certain intangible and fixed assets for $7.7 million and sold certain assets for cash proceeds of $0.3 million. The Company also sold fixed assets for cash proceeds of $5.5 million, including $4.8 million of net cash proceeds from the sale of a New Jersey operating location.

Our capital expenditures for fiscal 2024 totaled $10.7 million, as we invested in our fleet and other equipment ($6.1 million), refurbished certain physical plants ($2.1 million), expanded our propane operations ($1.2 million) and invested in computer hardware and software ($1.3 million).

During fiscal 2024, $1.7 million of earnings were reinvested into an irrevocable trust to secure certain liabilities for our captive insurance company. The cash deposited into the trust is shown on our balance sheet as captive insurance collateral and, correspondingly, reduced cash on our balance sheet. We believe that investments into the irrevocable trust will lower our letter of credit fees, increase interest income on invested cash balances, and provide us with certain tax advantages attributable to a captive insurance company.

During fiscal 2024, the Company acquired one propane business and four heating oil businesses for approximately $49.4 million in cash. The gross purchase price was allocated $40.4 million to intangible assets, $13.7 million to goodwill, $4.9 million to fixed assets, and reduced by $9.6 million in negative working capital.

Our capital expenditures for fiscal 2023 totaled $9.0 million, as we invested in our fleet and other equipment ($5.5 million), refurbished certain physical plants ($1.4 million), expanded our propane operations ($1.0 million) and invested in computer hardware and software ($1.1 million).

During fiscal 2023, we deposited $1.6 million, and invested another $0.9 million, into an irrevocable trust to secure certain liabilities for our captive insurance company.

During fiscal 2023, the Company acquired one propane and two heating oil businesses for approximately $19.8 million in cash. The gross purchase price was allocated $10.4 million to intangible assets, $8.0 million to goodwill, $2.3 million to fixed assets, and reduced by $0.9 million in negative working capital.

Financing Activities

During fiscal 2025, we repaid $21.0 million of our term loan, borrowed $75.4 million under our revolving credit facility and subsequently repaid $75.4 million. We also repurchased 1.3 million Common Units for $15.6 million in connection with our unit repurchase plan, and paid distributions of $24.5 million to our Common Unit holders and $1.6 million to our General Partner unit holders (including $1.5 million of incentive distributions as provided in our Partnership Agreement).

During fiscal 2024, we refinanced our five-year term loan and the revolving credit facility with the execution of the seventh amended and restated revolving credit facility agreement. This amendment extended our bank facility to September 2029. The $210 million of proceeds from the new term loan were used to repay the $132.1 million outstanding balance of the term loan under the prior credit facility. Prior to amending the bank facility, we also repaid $16.4 million of our term loan, borrowed $79.6 million under our revolving credit facility and subsequently repaid $79.8 million. We also repurchased approximately 1.0 million Common Units for $11.1 million in connection with our unit repurchase plan, and paid distributions of $23.6 million to our Common Unit holders and $1.4 million to our General Partner unit holders (including $1.3 million of incentive distributions as provided in our Partnership Agreement).

During fiscal 2023, we repaid $16.5 million of our term loan, borrowed $125.6 million under our revolving credit facility and subsequently repaid $145.6 million. We also repurchased 0.5 million Common Units for $4.5 million in connection with our unit repurchase plan, and paid distributions of $22.5 million to our Common Unit holders and $1.2 million to our General Partner unit holders (including $1.16 million of incentive distributions as provided in our Partnership Agreement).

FINANCING AND SOURCES OF LIQUIDITY

Liquidity and Capital Resources Comparatives

Our primary uses of liquidity are to provide funds for our working capital, capital expenditures, distributions on our units, acquisitions and unit repurchases. Our ability to provide funds for such uses depends on our future performance, which will be subject to prevailing economic, financial, geopolitical and business conditions, ~~weather,~~tariff the ability to collect current and future accounts receivable, the ability to pass on the full impact of high product costs to customers, the effects of high net customer attrition, conservation, inflation and other factors.

Funding for capital requirements, at least in the near term, are expected to be funded by cash flows from operating activities, cash on hand as of September 30, 2024 ($117.3 million) or a combination thereof. We believe that these cash sources will also be sufficient to satisfy our capital requirements in the longer-term. However, if they are not sufficient, we anticipate that working capital will be financed by our revolving credit facility, as discussed below, and from subsequent seasonal reductions in inventory and accounts receivable. As of September 30, 2024, 40

39regimes, weather, the ability to collect current and future accounts receivable, the ability to pass on the full impact of high product costs to customers, the effects of high net customer attrition, conservation, inflation and other factors.

Funding for capital requirements, at least in the near term, are expected to be funded by cash flows from operating activities, cash on hand as of September 30, 2025 ($24.7 million) or a combination thereof. We believe that these cash sources will also be sufficient to satisfy our capital requirements in the longer-term. However, if they are not sufficient, we anticipate that working capital will be financed by our revolving credit facility, as discussed below, and from subsequent seasonal reductions in inventory and accounts receivable. As of September 30, 2025, we had accounts receivable of $95102.01 million of which $6367.56 million is due from residential customers and $3134.5 million is due from commercial customers. Our ability to borrow from our bank group is based in part on the aging of these accounts receivable. If these balances do not meet the eligibility tests as defined in our credit agreement, our ability to borrow will be reduced and our anticipated cash flow from operating activities will also be reduced. As of September 30, ~~2024~~2025, we had ~~less~~no ~~than $0.1 million~~ borrowings under our revolving credit facility, $~~210~~189.0 million outstanding under our term loan, $5.21 million in letters of credit outstanding and $141.23 million hedge positions were secured under the credit agreement.

As of September 30 2025 Availability as defined in the seventh amended and restated revolving credit facility agreement was $165.0 million and we were in compliance with the financial covenants. Under the terms of the credit agreement, if ~~we permit~~ Availability (as defined in the credit agreement) tois be less than the greater of (a) 12.5% of the Line Cap (lesser of the aggregate revolving ~~credit~~commitment ~~facility borrowings~~ and the borrowing base) which was $21.4 million at September 30, 2025 and (b) $35.0 million, we must maintain a fixed charge coverage ratio of 1.10. We are also required to maintain a senior secured leverage ratio that cannot be more than 3.0 as of June 30th or September 30th, and no more than 5.5 as of December 31st or March 31st. ~~As of September 30 2024 Availability as defined in the seventh amended and restated revolving credit facility agreement was $166.5 million and we were in compliance with the financial covenants.~~

Maintenance capital expenditures for fiscal ~~2025~~2026 are estimated to be approximately $12.89 million, excluding the capital requirements for leased fleet which we currently estimate to be $13.34 million. In addition, we plan to invest approximately $1.75 million in our propane operations. Distributions for fiscal ~~2025~~2026, at the current quarterly level of $0.~~1725~~1850 per unit, would result in aggregate payments of approximately $2324.94 million to Common Unit holders, $1.56 million to our General Partner (including $1.45 million of incentive distribution as provided for in our Partnership Agreement) and $1.45 million to management pursuant to the management incentive compensation plan which provides for certain members of management to receive incentive distributions that would otherwise be payable to the General Partner. Under the terms of our seventh amended and restated revolving credit facility agreement, our term loan is repayable in quarterly payments of $5.3 million. We are not required to make an additional term loan repayments ~~due~~as towe did not generate any Excess Cash Flow in fiscal ~~2024~~2025 due to amounts being reinvested back into the business (see Note 13 - Long-Term Debt and Bank Facility Borrowings). Further, subject to any additional liquidity issues or concerns resulting from wholesale price volatility, we intend to continue to repurchase Common Units pursuant to our unit repurchase plan, as amended from time to time, and seek attractive acquisition opportunities within the Availability constraints of our revolving credit facility and funding resources.

Contractual Obligations and Off-Balance Sheet Arrangements

We have no obligations arising out of a material variable interest held by us in an unconsolidated entity and, we have no off-balance sheet debt.

Long-term contractual obligations, except for our long-term debt and New England Teamsters and Trucking Industry Pension Fund withdrawal obligations and operating leases liabilities, are not recorded in our consolidated balance sheet. Non-cancelable purchase obligations are obligations we incur during the normal course of business, based on projected needs. The Company had no capital lease obligations as of September 30, ~~2024~~2025.

~~The table below summarizes the payment schedule of our contractual obligations at September 30, 2024 (in thousands):~~ 41

	Payments Due by Fiscal Year
	Total		2025		2026and 2027		2028and 2029		Thereafter
Debt obligations (a)	$	210,005	$	21,005	$	42,000	$	147,000	$	—
Operating lease obligations (b)		113,399		25,240		43,459		26,894		17,806
Purchase obligations and other (c)		57,274		12,418		10,594		6,074		28,188
Interest obligations (d)		48,470		13,074		26,294		9,102		—
	$	429,148	$	71,737	$	122,347	$	189,070	$	45,994

The table below summarizes the payment schedule of our contractual obligations at September 30, 2025 (in thousands):

Reflects payments due of debt existing as of September 30, 2024, considering the terms of our credit agreement. (See Note 13 - Long-Term Debt and Bank Facility Borrowings)


	Payments Due by Fiscal Year
	Total		2026		2027 and 2028		2029 and 2030		Thereafter
Debt obligations (a)	$	189,000	$	21,000	$	42,000	$	126,000	$	—
Operating lease obligations (b)		115,985		25,820		43,386		29,169		17,610
Purchase obligations and other (c)		55,194		12,654		11,384		6,044		25,112
Interest obligations (d)		46,084		13,924		23,058		9,102		—
	$	406,263	$	73,398	$	119,828	$	170,315	$	42,722

(a)

Reflects payments due of debt existing as of September 30, 2025, considering the terms of our credit agreement. (See Note 13 - Long-Term Debt and Bank Facility Borrowings)

(b)

Represents various operating leases for office space, trucks, vans and other equipment with third parties. Maturities of operating leases are presented undiscounted. (See Note 16 - Leases)

(c)

40Represents non-cancelable commitments as of September 30, 2025 for operations such as customer related invoice and statement processing, voice and data phone/computer services, real estate taxes on leased property and our undiscounted future payment obligations to the New England Teamsters and Trucking Industry Pension Fund.

(d)

Represents non-cancelable commitments as of September 30, 2024 for operations such as customer related invoice and statement processing, voice and data phone/computer services, real estate taxes on leased property and our undiscounted future payment obligations to the New England Teamsters and Trucking Industry Pension Fund.

Reflects interest obligations on our term loan due September 2029 and the unused commitment fee on the revolving credit facility.

Recent Accounting Pronouncements

Refer to Note 2 – Summary of Significant Accounting Policies for discussion regarding the impact of accounting standards that were recently issued but not yet effective, on our consolidated financial statements.

Critical Accounting Policy and Critical Accounting Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to establish accounting policies and make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the Consolidated Financial Statements. The Company evaluates its policies and estimates on an on-going basis. A change in any of these critical accounting policies and estimates could have a material effect on the results of operations. The Company’s Consolidated Financial Statements may differ based upon different estimates and assumptions. The Company’s critical accounting policies and estimates have been reviewed with the Audit Committee of the Board of Directors.

Our significant accounting policies are discussed in Note 2 of the Notes to the Consolidated Financial Statements. We believe the following are our critical accounting policies and estimates:

Critical Accounting Policy

Fair Values of Derivatives

FASB ASC 815-10-05, Derivatives and Hedging, requires that derivative instruments be recorded at fair value and included in the consolidated balance sheet as assets or liabilities. The Company has elected not to designate its commodity derivative instruments as hedging instruments under this guidance, and therefore the change in fair value of those derivative instruments are recognized in our statement of operations.

We have established the fair value of our derivative instruments using estimates determined by our counterparties and subsequently evaluated them internally using established index prices and other sources. These values are based upon, among other things, future prices, volatility, time-to-maturity value and credit risk. The estimate of fair value we report in our financial statements changes as these estimates are revised to reflect actual results, changes in market conditions, or other factors, many of which are beyond our control.

Critical Accounting Estimates

Self-Insurance Liabilities

We currently self-insure a portion of workers’ compensation, auto, general liability and medical claims. We establish and periodically evaluate self-insurance liabilities based upon expectations as to what our ultimate liability may be for outstanding claims using developmental factors based upon historical claim experience, including frequency, severity, demographic factors and other actuarial assumptions, supplemented with the support of a qualified third-party actuary. As of September 30, ~~2024~~2025, we had approximately $7678.78 million of self-insurance liabilities. The ultimate resolution of these claims could differ materially from the assumptions used to calculate the self-insurance liabilities, which could have a material adverse effect on results of operations.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to interest rate risk primarily through our credit agreement. We utilize these borrowings to meet our working capital needs.

At September 30, ~~2024~~2025, we had outstanding borrowings totaling $~~210~~189.0 million, of which $~~158~~114.05 million are subject to variable interest rates under our credit agreement. In the event that interest rates associated with this facility were to increase 100 basis points, the after tax impact on annual future cash flows would be a decrease of $10.18 million.

We regularly use derivative financial instruments to manage our exposure to market risk related to changes in the current and future market price of home heating oil. The value of market sensitive derivative instruments is subject to change as a result of movements in market prices. Sensitivity analysis is a technique used to evaluate the impact of hypothetical market value changes. Based on a hypothetical ten percent increase in the cost of product at September 30, ~~2024~~2025, the potential impact on our hedging activity would be to increase the fair market value of these outstanding derivatives by $710.17 million from $(140.15) million to a fair market value of $(710.0)2 million; and conversely a hypothetical ten percent decrease in the cost of product would decrease the fair market value of these outstanding derivatives by $58.0 million to a fair market value of $(198.15) million.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements and financial statement schedules referred to in the index contained on page F-1 of this Report are incorporated herein by reference.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

(a) Evaluation of disclosure controls and procedures.

Our general partner’s chief executive officer and our chief financial officer evaluated the effectiveness of the Company’s disclosure controls and procedures (as that term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended) as of September 30, ~~2024~~2025. Based on that evaluation, such chief executive officer and chief financial officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, ~~2024~~2025 at the reasonable level of assurance. For purposes of Rule 13a-15(e), the term disclosure controls and procedures means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78a et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including our chief executive officer and chief financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

(b) Management’s Report on Internal Control over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) under the Securities Exchange Act of 1934, as amended. Under the supervision of management and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation of internal control over financial reporting, our management concluded that our internal control over financial reporting was effective as of September 30, ~~2024~~2025.

The effectiveness of our internal control over financial reporting as of September 30, ~~2024~~2025 has been audited by our independent registered public accounting firm, as stated in their report which is included at Item 8 – Financial Statements and Supplementary Data.

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There were no changes in our internal control over financial reporting during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

(d) Other.

Our general partner and the Company believe that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are, or will be met, and that regardless of our evaluation of controls we cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Therefore, our controls system, no matter how well we believe it may be conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the Company's controls system are met, or will be met. Our disclosure controls and procedures are designed to provide such reasonable assurances of achieving our desired control objectives, and the chief executive officer and chief financial officer of our general partner have concluded, as of September 30, ~~2024~~2025, that our disclosure controls and procedures were effective in achieving that level of reasonable assurance.

ITEM 9B. OTHER INFORMATION

(a) N/A

(b) Trading Plans. During the quarter ended September 30, ~~2024~~2025, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Partnership Management

Our general partner is Kestrel Heat. The Board of Directors of Kestrel Heat is appointed by its sole member, Kestrel, which is a private investment partnership owned by Yorktown Energy Partners XII, L.P., Paul A. Vermylen Jr. and other investors.

Kestrel Heat, as our general partner, oversees our activities. Unitholders do not directly or indirectly participate in our management or operation or elect the directors of the general partner. The Board of Directors (sometimes referred to as the “Board”) of Kestrel Heat has adopted a set of Partnership Governance Guidelines in accordance with the requirements of the New York Stock Exchange. A copy of these Guidelines is available on our website at www.stargrouplp.com. As of November 30, 2025, Kestrel Heat owned 325,729 general partner units.

As of November 30, 2024, Kestrel Heat owned 325,729 general partner units. In November 2021, Kestrel Heat made an in-kind distribution of 500,000 common units, representing approximately 1% of the issued and outstanding common units, to Kestrel, which, in turn, made an in-kind distribution of such units, pro rata, to its members.

The general partner owes a fiduciary duty to the unitholders. However, our Partnership Agreement contains provisions that allow the general partner to take into account the interests of parties other than the limited partners in resolving conflict of interest, thereby limiting such fiduciary duty. Notwithstanding any limitation on obligations or duties, the general partner will be liable, as our general partner, for all our debts (to the extent not paid by us), except to the extent that indebtedness or other obligations incurred by us are made specifically non-recourse to the general partner.

The general partner does not directly employ any of the persons responsible for managing or operating Star.

Directors and Executive Officers of the General Partner

Directors are appointed for an indefinite term, subject to the discretion of Kestrel. The following table shows certain information for directors and executive officers of the general partner as of November 30, ~~2024~~2025:

Name	Age	Position
Paul A. Vermylen, Jr.	7778	Chairman, Director
Jeffrey M. Woosnam	5657	President, Chief Executive Officer and Director
Richard F. Ambury	6768	Chief Financial Officer, Executive Vice President, Treasurer and Secretary
Jeffrey S. Hammond	6263	Chief Operating Officer
Joseph R. McDonald	5556	Chief Customer Officer
Henry D. Babcock(1)	84	Director
C. Scott Baxter(1)	64	Director
C. Scott Baxter(1)	63	Director
David M. Bauer(1)	56	Director
David M. Bauer(1)	55	Director
Daniel P. Donovan	79	Director
Daniel P. Donovan	78	Director
Bryan H. Lawrence	83	Director
Bryan H. Lawrence	82	Director
William P. Nicoletti (1)	80	Director
William P. Nicoletti (1)	79	Director

(1) Audit Committee member

4446

Paul A. Vermylen, Jr. Mr. Vermylen has been the Chairman and a director of Kestrel Heat since April 28, 2006. Mr. Vermylen is a founder of Kestrel and has served as its President and as a manager since July 2005. Mr. Vermylen had been employed since 1971, serving in various capacities, including as a Vice President of Citibank N.A. and Vice President-Finance of Commonwealth Oil Refining Co. Inc. Mr. Vermylen served as Chief Financial Officer of Meenan Oil Co., L.P. (“Meenan”) from 1982 until 1992 and as President of Meenan until 2001, when we acquired Meenan. Since 2001, Mr. Vermylen has pursued private investment opportunities.

Mr. Vermylen is a graduate of Georgetown University and has an M.B.A. from Columbia University.

Mr. Vermylen’s substantial experience in the home heating oil industry and his leadership skills and experience as an executive officer of Meenan, among other factors, led the Board to conclude that he should serve as the Chairman and a director of Kestrel Heat.

Jeffrey M. Woosnam. Mr. Woosnam has been President, Chief Executive Officer and a director of Kestrel Heat since March 18, 2019. From May 2014 to March 2019, Mr. Woosnam served as Senior Vice President, Southern Operations. From April 2007 to May 2014, Mr. Woosnam served as Vice President, Southern Operations. From 2006 to 2007, he served as the Director of Operations for Petroleum Heat and Power Company, a subsidiary of the Company. From 1994 to 2006, he held several General Management positions for Petro, Inc. with increasing levels of responsibility.

Mr. Woosnam’s in-depth knowledge of the Company’s business and his substantial experience in the home heating oil industry, among other factors, led the Board to conclude that he should serve as a director of Kestrel Heat.

Richard F. Ambury. Mr. Ambury has been Executive Vice President of Kestrel Heat since May 1, 2010 and has been Chief Financial Officer, Treasurer and Secretary of Kestrel Heat since April 28, 2006. Mr. Ambury was Chief Financial Officer, Treasurer and Secretary of Star Group from May 2005 until April 28, 2006. From November 2001 to May 2005, Mr. Ambury was Vice President and Treasurer of Star Group. From March 1999 to November 2001, Mr. Ambury was Vice President of Star Gas Propane, L.P. From February 1996 to March 1999, Mr. Ambury served as Vice President—Finance of Star Gas Corporation, a predecessor general partner. Mr. Ambury was employed by Petroleum Heat and Power Co., Inc. from June 1983 through February 1996, where he served in various accounting/finance capacities. From 1979 to 1983, Mr. Ambury was employed by a predecessor firm of KPMG, a public accounting firm. Mr. Ambury has been a Certified Public Accountant since 1981.

Jeffrey S. Hammond. Mr. Hammond has been Chief Operating Officer of Kestrel Heat since March 18, 2019. From October 2013 to March 2019, he served as Senior Vice President, Northern Operations. From April 2007 to October 2013, Mr. Hammond served as Vice President, Northern Operations. From 2006 to 2007, he served as the Director of Operations for Petro Holdings, Inc., a subsidiary of the Company. From 2004 to 2006, Mr. Hammond served as Director of Planning and Logistics for Petro Holdings, Inc. From 2003 to 2004, he held a General Manager position for Petro Holdings, Inc. Prior to joining the Company in January 2003, Mr. Hammond worked for United Parcel Service for 19 years. While at UPS, he held various management positions in Operations and Industrial Engineering.

Joseph R. McDonald. Mr. McDonald has been Chief Customer Officer of Kestrel Heat since March 18, 2019. From May 2014 to March 2019, he served as Senior Vice President of Sales, Marketing & Retention. From May 2005 to May 2014, Mr. McDonald served as Vice President, Sales and Marketing. From October 2004 to May 2005, he served as the Director of Sales for Petro Holdings, Inc., a subsidiary of the Company. From January 2003 to October 2004, was a Regional Sales Manager for Petro Holdings, Inc.

4547

~~Henry D~~C. ~~Babcock~~Scott Baxter. Mr. ~~Babcock~~Baxter has been a director of Kestrel Heat since April 28, 2006. HeMr. ~~retired~~Baxter atis ~~the~~currently ~~end~~a Managing Partner of ~~2019~~Green asRiver ~~director~~Energy ~~and~~Partners ~~the~~where ~~former~~he ~~President~~advises ofclients ~~The~~on ~~Caumsett~~mergers ~~Foundation,~~and ~~Inc.~~acquisitions, adebt ~~non-profit~~restructurings ~~that~~and ~~supports~~occasionally ~~Caumsett~~provides ~~Historic~~expert ~~State~~witness ~~Park Preserve~~testimony. For the past 30 years, Mr. ~~Babcock~~Baxter ~~worked~~has ~~with~~gained ~~Train,~~significant ~~Babcock~~experience ~~Advisors~~and ~~LLC~~expertise in the energy, apower ~~private~~and ~~registered~~renewables sectors where he has been a primary investment banking advisor, ~~from~~in ~~1976,~~sourcing ~~becoming~~and aexecuting ~~Member~~over $300 billion in ~~1980~~corporate ~~until~~mergers ~~2010~~and ~~when~~acquisitions, hedebt ~~retired~~restructurings ~~but~~and ~~continued~~raising toboth ~~serve~~public asand aprivate ~~Consultant~~equity ~~until~~financings. ~~2021~~Mr. ~~Prior~~Baxter toalso ~~1976,~~has hesignificant ~~ran~~experience anadvising ~~affiliated~~independent ~~venture~~committees ~~capital~~of ~~company~~boards ~~active~~including inrendering ~~the~~over ~~U.S.~~40 ~~and~~independent ~~abroad.~~fairness ~~Mr.~~opinions ~~Babcock~~spanning ~~received~~the aupstream, BAdownstream, ~~from~~midstream, ~~Yale~~oil ~~University~~field ~~and~~services, anpower ~~M.B.A.~~and ~~from~~renewables ~~Columbia.~~industry Hesectors ~~served~~including infor ~~the~~many UMLPs.S Mr. ~~Army~~Baxter ~~for~~has ~~three~~also ~~years.~~testified many times as an expert witness.

Mr. ~~Babcock~~Baxter’s ~~significant~~previous energy-related investment banking experience inincludes ~~capital~~serving ~~markets,~~as ~~corporate~~Head ~~finance~~of ~~and~~the ~~venture~~Americas ~~capital,~~for ~~among~~J.P. ~~other~~Morgan’s ~~factors~~global energy group, ~~led~~Managing Director in the ~~Board~~global toenergy ~~conclude~~group ~~that~~at heCitigroup ~~should~~(Salomon ~~serve~~Brothers), serving as ahead ~~director~~ of ~~Kestrel~~the ~~Heat.~~energy group for Houlihan Lokey, along with additional positions at other investment banking firms.

~~C. Scott Baxter.~~ Mr. Baxter ~~has~~earned ~~been~~his aundergraduate ~~director~~degree ofin ~~Kestrel~~Economics ~~Heat~~from ~~since~~Weber ~~April~~State ~~28,~~University ~~2006.~~where ~~Mr.~~he ~~Baxter~~graduated iscum ~~currently a Managing Director and Independent Contractor with Berkeley Research Group (“BRG”)~~laude, ~~a global investment banking advisory~~ and ~~consulting~~he ~~firm,~~received ~~and~~his heMBA isdegree from the ~~Managing~~University ~~Partner~~ of ~~Green~~Chicago ~~River~~Graduate ~~Energy~~School ~~Partners,~~of ~~a boutique investment banking and restructuring advisory firm~~Business. Mr. Baxter ~~has~~also ~~over~~served 30as ~~years~~an ofadjunct ~~energy~~professor ~~investment~~of ~~banking~~finance ~~experience~~at ~~and~~Columbia ~~has~~University’s ~~been~~Graduate aSchool ~~primary~~of ~~advisor~~Business infrom ~~sourcing~~2002 ~~and~~to ~~executing~~2006; ~~over $300 billion in corporate M&A~~and, ~~restructuring~~he's ~~and~~served ~~equity~~on ~~financing transactions in~~ the ~~energy~~President’s ~~and~~National ~~power~~Advisory ~~industries.~~Council ~~Mr.~~for ~~Baxter~~Weber ~~also~~State ~~has~~University ~~significant~~since ~~experience~~1996. ~~advising~~Prior ~~independent~~to ~~committees~~business ~~of boards including rendering over 40 independent fairness opinions spanning the upstream~~school, ~~downstream, midstream, oil field services, power and renewables industry sectors including for many MLPs.~~ Mr. Baxter also worked for Peat Marwick Main & Co, and Price Waterhouse, both global accounting firms, and in the regional accounting office of Sears Roebuck & Co.

Mr. Baxter’s ~~previous~~significant ~~energy investment banking~~ experience ~~includes~~in ~~serving~~finance, accounting, as ~~Head~~an ofinvestor ~~the~~and ~~Americas~~as ~~for~~a ~~J.P.~~senior ~~Morgan’s~~investment ~~global~~banker ~~energy~~focused ~~group, Managing Director~~ in the ~~global~~ energy-related ~~group~~industries, atamong ~~Citigroup~~other ~~(Salomon Brothers)~~factors, ~~serving~~led asthe ~~head~~Board ofto ~~the~~conclude ~~energy~~that ~~group~~he ~~for~~should ~~Houlihan~~serve ~~Lokey,~~as ~~along~~an ~~with~~independent ~~additional~~director ~~positions~~of atKestrel ~~other~~Heat ~~investment~~and ~~banking~~serve ~~firms~~on the audit committee.

Mr. Baxter holds a B.S. degree in Economics from Weber State University where he graduated cum laude, and received an MBA degree from the University of Chicago Graduate School of Business. Mr. Baxter also served as an adjunct professor of finance at Columbia University’s Graduate School of Business from 2002 to 2006 and has been on the President’s National Advisory Council for Weber State University since 1996.

Mr. Baxter’s significant experience in finance, accounting, as an investor and as a senior investment banker focused in the energy industry, among other factors, led the Board to conclude that he should serve as a director of Kestrel Heat.

David M. Bauer. Mr. Bauer has served as the Chief Investment Officer of Lubar & Co. since 2005. Mr. Bauer’s work experience includes five years with Facilitator Capital Fund, a Wisconsin-based Small Business Investment Company, and 10 years with the accounting firm of Arthur Andersen, where he led the Wisconsin transaction advisory team assisting private equity funds and large corporations with their acquisitions and divestitures. He currently serves on the board of several private companies.

Mr. Bauer earned a M.B.A. degree from Marquette University in 2005 and a Bachelor of Science degree in Accounting from Marquette University in 1991. He is a Certified Public Accountant and a member of the Wisconsin Institute of CPAs and the American Institute of CPAs.

Mr. Bauer’s current and prior experience as Chief Investment Officer of Lubar & Co. and his significant experience in private equity, venture capital, finance and accounting, among other factors, led the Board to conclude that he should serve as a director of Kestrel Heat.

Daniel P. Donovan. Mr. Donovan has been a director of Kestrel Heat since April 28, 2006. Mr. Donovan served as President and Chief Executive Officer on an interim basis from December 23, 2018 to March 18, 2019, served as consultant from March 18, 2019 to April 30, 2019, and served as Chief Executive Officer of Kestrel Heat from May 31, 2007 to September 30, 2013 and had been President from April 28, 2006 to September 30, 2013. From April 28, 2006 to May 30, 2007 Mr. Donovan was also the Chief Operating Officer of Kestrel Heat. Mr. Donovan was the President and Chief Operating Officer of a predecessor general partner, Star Gas LLC (“Star Gas”), from March 2005 until April 28, 2006. From May 2004 to March 2005 he was President and Chief Operating Officer of the Company’s heating oil segment. Mr. Donovan held various management positions with Meenan Oil Co. LP, from January 1980 to May 2004, including Vice President and General Manager from 1998 to 2004. Mr. Donovan worked for Mobil Oil Corp. from 1971 to 1980. His last position with Mobil was President and General Manager of its heating oil subsidiary in New York City and Long Island. Mr. Donovan is a graduate of St. Francis College in Brooklyn, New York and received an M.B.A. from Iona College.

Mr. Donovan’s in-depth knowledge of the Company’s business, having been its president and chief executive officer, and his substantial experience in the home heating oil industry, among other factors, led the Board to conclude that he should serve as a director of Kestrel Heat.

Bryan H. Lawrence. Mr. Lawrence has been a director of Kestrel Heat since April 28, 2006 and a manager of Kestrel since July 2005. Mr. Lawrence is a founder and senior manager of Yorktown Partners LLC, the manager of the Yorktown group of investment partnerships, which make investments in companies engaged in the energy industry. The Yorktown partnerships were formerly affiliated with the investment firm of Dillon, Read & Co. Inc., where Mr. Lawrence was employed beginning in 1966, serving as a Managing Director until the merger of Dillon Read with SBC Warburg in September 1997. Mr. Lawrence also serves as a director of Hallador Petroleum Company, Ramaco Resources, Inc., Riley Exploration Permian, Inc. (each a United States publicly traded company), and certain non-public companies in the energy industry in which Yorktown partnerships hold equity interests. Mr. Lawrence is a graduate of Hamilton College and received an M.B.A. from Columbia University.

Mr. Lawrence’s significant financial and investment experience, and experience as a founder of Yorktown Partners LLC, among other factors, led the Board to conclude that he should serve as a director of Kestrel Heat.

William P. Nicoletti. Mr. Nicoletti has been a director of Kestrel Heat since April 28, 2006. Mr. Nicoletti was the non-executive chairman of the board of Star Gas from March 2005 until April 28, 2006. Mr. Nicoletti was a director of Star Gas from March 1999 until April 28, 2006 and was a director of Star Gas Corporation from November 1995 until March 1999. From February 1, 2009, until he retired on February 15, 2023, he was a Managing Director of Parkman Whaling LLC, a Houston, Texas based energy investment banking firm. Mr. Nicoletti was formerly a senior officer and head of Energy Investment Banking for investment banks in New York City. Mr. Nicoletti is a graduate of Seton Hall University and received an M.B.A. from Columbia University.

Mr. Nicoletti’s current and prior leadership experience in the energy investment banking industry and his significant experience in finance, accounting and corporate governance matters, among other factors, led the Board to conclude that he should serve as a director of Kestrel Heat.

Meetings of Directors

During fiscal ~~2024~~2025, the Board of Directors of Kestrel Heat met ~~five~~four times. All directors attended each meeting~~, except Mr~~. ~~Nicoletti did not attend the Board meeting held on July 18, 2024.~~

Committees of the Board of Directors

Kestrel Heat’s Board of Directors has one standing committee, the Audit Committee. Its members are appointed by the Board of Directors until their respective successors are elected. The NYSE corporate governance standards do not require limited partnerships to have a Nominating or Compensation Committee.

Audit Committee

William P. Nicoletti, ~~Henry D. Babcock,~~ David M. Bauer and C. Scott Baxter have been appointed to serve on the Audit Committee, which has adopted an Audit Committee Charter. Mr. Nicoletti serves as chairman of the Audit Committee. A copy of this charter is available on the Company’s website at www.stargrouplp.com. The Audit Committee reviews the external financial reporting of the Company, selects and engages the Company’s independent registered public accountants and approves all non-audit engagements of the independent registered public accountants.

Members of the Audit Committee may not be employees of Kestrel Heat or its affiliated companies and must otherwise meet the New York Stock Exchange and SEC independence requirements for service on the Audit Committee. The Board of Directors has determined that Messrs. Nicoletti, ~~Babcock,~~ Bauer and Baxter are independent directors in that they do not have any material relationships with the Company (either directly, or as a partner, shareholder or officer of an organization that has a relationship with the Company) and they otherwise meet the independence requirements of the NYSE and the SEC. The Company’s Board of Directors has also determined that at least one member of the Audit Committee, Mr. Nicoletti, meets the SEC criteria of an “audit committee financial expert.” Please see Mr. Nicoletti’s biography under “Directors and Officers of the General Partner” for his relevant experience regarding his qualifications as an “audit committee financial expert.”

~~During fiscal 2024, the Audit Committee of Kestrel Heat, LLC met six times. All committee members attended each meeting.~~ 49

During fiscal 2025, the Audit Committee of Kestrel Heat, LLC met five times. All committee members attended each meeting.

Reimbursement of Expenses of the General Partner

The general partner does not receive any management fee or other compensation for its management of the Company. The general partner is reimbursed for all expenses incurred on behalf of the Company, including the cost of compensation that are properly allocable to the Company. The Partnership Agreement provides that the general partner shall determine the expenses that are allocable to the Company in any reasonable manner determined by the general partner in its sole discretion. In addition, the general partner and its affiliates may provide services to the Company for which a reasonable fee would be charged as determined by the general partner. There were no reimbursements of the General Partner in fiscal year ~~2024~~2025.

Adoption of Code of Business Conduct and Ethics

We have adopted a written Code of Business Conduct and Ethics that applies to our officers and employees and our directors. A copy of the Code of Business Conduct and Ethics is available on our website at ~~www~~https://investors.stargrouplp.com/static-files/b43b1bb1-cb28-4bff-a86e-9e40cf1d3fdc.

We intend to post amendments to or waivers of our Code of Business Conduct and Ethics (to the extent applicable to any executive officer or director) on our website.

Section 16(a) Beneficial Ownership Reporting Compliance

Based on copies of reports furnished to us, we believe that during fiscal year ~~2024~~2025, all reporting persons complied with the Section 16(a) filing requirements applicable to them.

Non-Management Directors and Interested Party Communications

The non-management directors on the Board of Directors of the general partner are Messrs. ~~Babcock,~~ Bauer, Baxter, Donovan, Lawrence, Nicoletti and Vermylen. The non-management directors have selected Mr. Vermylen, the Chairman of the Board, to serve as lead director to chair executive sessions of the non-management directors. Interested parties who wish to contact the non-management directors as a group may do so by contacting Paul A. Vermylen, Jr. c/o Star Group, L.P., 9 West Broad Street, Suite 310, Stamford, CT 06902.

48Insider Trading Policy

We have adopted an Insider Trading Policy (the “Policy”) and related procedures governing the purchase, sale and other dispositions of the Company’s securities by the Company’s officers, directors and employees that we believe are reasonably designed to promote compliance with insider trading laws, rules and regulations and NYSE listing standards. A copy of the Policy is incorporated by reference as Exhibit 19 to this Report.

ITEM 11. EXECUTIVE COMPENSATION

Compensation Discussion and Analysis

Our Third Amended and Restated Agreement of Limited Partnership, provides that our general partner, Kestrel Heat, shall conduct, direct and manage all activities of the Company. The limited liability company agreement of the general partner provides that the business of the general partner shall be managed by a Board of Directors. The responsibility of the Board is to supervise and direct the management of the Company in the interest and for the benefit of our unitholders. Among the Board’s responsibilities is to regularly evaluate the performance and to approve the compensation of the Chief Executive Officer and, with the advice of the Chief Executive Officer, regularly evaluate the performance and approve the compensation of key executives.

As a limited partnership that is listed on the New York Stock Exchange, we are not required to have a Compensation Committee. Since the Chairman of the general partner and the majority of the Board are not employees, the Board determined that it has adequate independence to act in the capacity of a Compensation Committee to establish and review the compensation of our executive officers and directors. The Board is comprised of Paul A. Vermylen Jr. (Chairman), Jeffrey M. Woosnam (President and Chief Executive Officer), Daniel P. Donovan, Henry D. Babcock, David M. Bauer, C. Scott Baxter, Bryan H. Lawrence, and William P. Nicoletti.

Throughout this Report, each person who served as chief executive officer (“CEO”) during fiscal 2024, each person who served as chief financial officer (“CFO”) during fiscal 2024 and the two other most highly compensated executive officers serving at September 30, 2024 (there being no other executive officers) are referred to as the “named executive officers” and are included in the Executive Compensation Table. 50

employees, the Board determined that it has adequate independence to act in the capacity of a Compensation Committee to establish and review the compensation of our executive officers and directors. The Board is comprised of Paul A. Vermylen Jr. (Chairman), Jeffrey M. Woosnam (President and Chief Executive Officer), Daniel P. Donovan, David M. Bauer, C. Scott Baxter, Bryan H. Lawrence, and William P. Nicoletti.

Throughout this Report, each person who served as chief executive officer (“CEO”) during fiscal 2025, each person who served as chief financial officer (“CFO”) during fiscal 2025 and the two other most highly compensated executive officers serving at September 30, 2025 (there being no other executive officers) are referred to as the “named executive officers” and are included in the Executive Compensation Table.

In this Compensation Discussion and Analysis, we address the compensation paid or awarded to Messrs. Woosnam, Ambury, Hammond and McDonald. We refer to these executive officers as our “named executive officers.”

Compensation decisions for the above named executive officers were made by the Board of Directors of the Company.

Compensation Philosophy and Policies

The primary objectives of our compensation program, including compensation of the named executive officers, are to attract and retain highly qualified officers, employees and directors and to reward individual contributions to our success. The Board of Directors considers the following policies in determining the compensation of the named executive officers:

•

compensation should be related to the performance of the individual executive and the performance measured against both financial and non-financial achievements;

•

compensation levels should be competitive to ensure that we will be able to attract, motivate and retain highly qualified executive officers; and

•

compensation should be related to improving unitholder value over time.

Compensation Methodology

The elements of our compensation program for named executive officers are intended to provide a total incentive package designed to drive performance and reward contributions in support of business strategies at the Company. Subject to the terms of employment agreements that have been entered into with certain named executive officers, all compensation determinations are discretionary and subject to the decision-making authority of the Board of Directors. We do not use benchmarking as a fixed criterion to determine compensation. Rather, after subjectively setting compensation based on the policies discussed above under “Compensation Philosophy and Policies”, we reviewed the compensation paid to officers holding similar positions at our peer group companies and certain information for privately held companies to obtain a general understanding of the reasonableness of base salaries and other compensation payable to our named executive officers. Our peer group of public companies was comprised of the following companies: Atmos Energy Corporation, ~~Crestwood Equity Partners L.P., Ferrellgas Partners, L.P.,~~ Global Partners, L.P., New Jersey Resources Corporation, ~~NuStar Energy L.P.,~~ Suburban Propane Partners, L.P. and Sunoco L.P. We chose these companies because they are engaged in the distribution of energy products like us.

Elements of Executive Compensation

For the fiscal year ended September 30, ~~2024~~2025, the principal components of compensation for the named executive officers were:

•

base salary;

•

annual discretionary profit sharing allocation;

•

the management incentive compensation plan; and

•

retirement and health benefits.

Under our compensation structure, the mix of base salary, discretionary profit sharing allocation and long-term compensation provided to each executive officer varies depending on their position. The base salary for each executive officer is the only fixed component of compensation. All other compensation, including annual discretionary profit sharing allocation and long-term incentive compensation, is variable in nature.

The majority of the Company’s compensation allocation is weighted towards base salary and annual discretionary profit sharing allocation. In addition, during fiscal ~~2024~~2025, an aggregate of $~~558~~625,~~867~~733 was paid to the named executive officers under the terms of the management incentive compensation plan and represented a small portion of the executive compensation that was paid to these officers. If we are successful in increasing the overall level of distributions payable to unitholders, the amounts payable to the named executive officers under the management incentive compensation plan should increase.

We believe that together all of our compensation components provide a balanced mix of fixed compensation and compensation that is contingent upon each executive officer’s individual performance and our overall performance. A goal of the compensation program is to provide executive officers with a reasonable level of security through base salary and benefits, while rewarding them through incentive compensation to achieve business objectives and create unitholder value over time. We believe that each of our compensation components is important in achieving this goal. Base salaries provide executives with a base level of monthly income and security. Annual discretionary profit sharing allocations and long-term incentive awards provide an incentive to our executives to achieve business objectives that increase our financial performance, which creates unitholder value through continuity of, and increases in, distributions and increases in the market value of the units. In addition, we want to ensure that our compensation programs are appropriately designed to encourage executive officer retention, which we believe is accomplished through all of our compensation elements.

Base Salary

The Board of Directors establishes base salaries for the named executive officers based on a number of factors, including:

•

the historical salaries for services rendered to the Company and responsibilities of the named executive officer;

•

the salaries of equivalent executive officers at our peer group companies and other data for our industry; and

•

the prevailing levels of compensation and cost of living in the location in which the named executive officer works.

In determining the initial base compensation payable to individual named executive officers when they are first hired by Star, our starting point is the historical compensation levels that we have paid to officers performing similar functions over the past few years. We also consider the level of experience and accomplishments of individual candidates and general labor market conditions, including the availability of candidates to fill a particular position. When we make adjustments to the base salaries of existing named executive officers, we review the individual’s performance, the value each named executive officer brings to us and general labor market conditions.

Elements of individual performance considered, among others, without any specific weight given to each element, include business-related accomplishments during the year, difficulty and scope of responsibilities, effective leadership, experience, expected future contributions to the Company and difficulty of replacement. While base salary provides a base level of compensation intended to be competitive with the external market, the base salary for each named executive officer is determined on a subjective basis after consideration of these factors and is not based on target percentiles or other formal criteria. Although we believe that base salaries for our named executive officers are generally competitive with the external market, we do not use benchmarking as a fixed criterion to determine base compensation. Rather, after subjectively setting base salaries based on the above factors, we review the compensation paid to officers holding similar positions at our peer group companies to obtain a general understanding of the reasonableness of base salaries and other compensation payable to our named executive officers. We also take into account geographic differences for similar positions in the New York Metropolitan area. While cost of living is considered in determining annual increases, we do not typically provide full cost of living adjustments as salary increases are constrained by budgetary restrictions and the ability to fund the Company’s current cash needs such as interest expense, maintenance capital, income taxes and distributions.

officers. We also take into account geographic differences for similar positions in the New York Metropolitan area. While cost of living is considered in determining annual increases, we do not typically provide full cost of living adjustments as salary increases are constrained by budgetary restrictions and the ability to fund the Company’s current cash needs.

Profit Sharing Allocations

We maintain a profit sharing pool for certain employees, including named executive officers, which is equal to approximately 6% of our earnings before income taxes, depreciation and amortization, excluding items affecting comparability (“adjusted EBITDA”) for the given fiscal year. The annual discretionary profit sharing allocations paid to the named executive officers are payable from this pool. The size of the pool fluctuates based upon upward or downwards changes in adjusted EBITDA and the size of an individual award to a named executive officer fluctuates based on the size of the profit sharing pool and the number of participants in the plan. Depending upon the size of the profit sharing pool, and the number of participants in the plan, the amount paid to the named executive officers could be more or less.

There are no set formulas for determining the amount payable to our named executive officers from the profit sharing plan. Factors considered by our CEO and the Board in determining the level of profit sharing allocations generally include, without assigning a particular weight to any factor:

•

whether or not we achieved certain budgeted goals for the year and any material shortfalls or superior performances relative to expectations. Under the plan, no profit sharing was payable with respect to fiscal ~~2024~~2025 unless we achieved actual adjusted EBITDA for fiscal ~~2024~~2025 of at least 70% of the amount of budgeted adjusted EBITDA for fiscal ~~2024~~2025;

•

the level of difficulty associated with achieving such objectives based on the opportunities and challenges encountered during the year; and

•

significant transactions or accomplishments for the period not included in the goals for the year.

Our CEO takes these factors into consideration as well as the relative contributions of each of the named executive officers to the year’s performance in developing his recommendations for profit sharing amounts. Based on such assessment, our CEO submits recommendations to the Board of Directors for the annual profit sharing amounts to be paid to our named executive officers (other than the CEO), for the Board’s review and approval. Similarly, the Chairman assesses the CEO’s contribution toward meeting the Company’s goals based upon the above factors, and recommends to the Board of Directors a profit sharing allocation for the CEO it believes to be commensurate with such contribution.

The Board of Directors retains the ultimate discretion to determine whether the named executive officers will receive annual profit sharing allocations based upon the factors discussed above. The Company is entitled to recover or “clawback” profit sharing allocations paid to our named executive officers in the event of any accounting restatement arising from a material non-compliance with the financial reporting requirements under the Securities Act of 1934, as amended, in accordance with the Company’s Incentive Compensation Recovery Policy dated as of October 19, 2023 (the “Clawback Policy”). At no time during or after the Company’s fiscal year ended September 30, ~~2024~~2025 was the Company required to prepare any accounting restatement that would have entitled the Company to recovery of profit sharing allocations under the Company’s Clawback Policy. ~~The~~A ~~Company’s~~copy ~~Clawback~~of the Policy is ~~filed~~incorporated asby anreference as Exhibit 97 to this Report.

Management Incentive Compensation Plan

In fiscal 2007, following our recapitalization, the Board of Directors adopted the Management Incentive Compensation Plan (the “Plan”) for certain named employees at the time. Effective as of July 19, 2012, the Board of Directors adopted certain amendments (the “Plan Amendments”) to the Plan. Under the Plan Amendments, the number and identity of the Plan participants and their participation interests in the Plan have been frozen at the current levels. In addition, under the Plan Amendments, the plan benefits (to the extent vested) may be transferred upon the death of a participant to his or her heirs. Under the Plan, certain current and former employees who ~~participate shall be entitled to receive a pro rata share (as determined in the manner described below) of an amount in cash equal to:~~

participate shall be entitled to receive a pro rata share (as determined in the manner described below) of an amount in cash equal to:

•

50% of the distributions (“Incentive Distributions”) of Available Cash in excess of the minimum quarterly distribution of $0.0675 per unit otherwise distributable to Kestrel Heat pursuant to the Partnership Agreement on account of its general partner units; and

•

50% of the cash proceeds (the “Gains Interest”) which Kestrel Heat shall receive from any sale of its general partner units (as defined in the Partnership Agreement), less expenses and applicable taxes.

We believe that the Plan provides a long-term incentive to its participants because it encourages Star’s management to increase available cash for distributions in order to trigger the incentive distributions that are only payable if distributions from available cash exceed certain target distribution levels, with higher amounts of incentive distributions triggered by higher levels of distributions. Such increases are not sustainable on a consistent basis without long-term improvements in our operations.

The pro rata share payable to the named executive officers under the Plan is based on the number of participation points as described under “Fiscal ~~2024~~2025 Compensation Decisions—Management Incentive Compensation Plan.” The amount paid in Incentive Distributions is governed by the Partnership Agreement and Available Cash (as defined in our Partnership Agreement) is distributed to the holders of our common units and general partner units in the following manner:

First, 100% to all common units, pro rata, until there has been distributed to each common unit an amount equal to the minimum quarterly distribution of $0.0675 for that quarter;

Second, 100% to all common units, pro rata, until there has been distributed to each common unit an amount equal to any arrearages in the payment of the minimum quarterly distribution for prior quarters;

Third, 100% to all general partner units, pro rata, until there has been distributed to each general partner unit an amount equal to the minimum quarterly distribution;

Fourth, 90% to all common units, pro rata, and 10% to all general partner units, pro rata, until each common unit has received the first target distribution of $0.1125; and

Finally, 80% to all common units, pro rata, and 20% to all general partner units, pro rata.

Available Cash, as defined in our Partnership Agreement, generally means all cash on hand at the end of the relevant fiscal quarter less the amount of cash reserves established by the Board of Directors of our general partner in its reasonable discretion for future cash requirements. These reserves are established for the proper conduct of our business, including acquisitions, the payment of debt principal and interest and for distributions during the next four quarters and to comply with applicable law and the terms of any debt agreements or other agreements to which we are subject. The Board of Directors of our general partner reviews the level of Available Cash each quarter based upon information provided by management.

To fund the benefits under the Plan, Kestrel Heat has agreed to permanently and irrevocably forego receipt of the amount of Incentive Distributions that are payable to plan participants. For accounting purposes, amounts payable to management under this Plan will be treated as compensation and will reduce both EBITDA and net income but not adjusted EBITDA. Kestrel Heat has also agreed to contribute to the Company, as a contribution to capital, an amount equal to the Gains Interest payable to participants in the Plan by the Company. The Company is not required to reimburse Kestrel Heat for amounts payable pursuant to the Plan.

The Plan is administered by our Chief Financial Officer under the direction of the Board or by such other officer as the Board may from time to time direct. In general, no payments will be made under the Plan if we are not distributing cash under the Incentive Distributions described above.

We distributed $1,322,059 in Incentive Distributions under the Plan during fiscal 2024, including payments to former employees and their heirs of approximately $679,063 and the named executive officers of approximately $558,867. With regard to the Gains Interest, Kestrel Heat has not given any indication that it will sell its general partner units within the next 12 months. Thus the Plan’s value attributable to the Gains Interest currently cannot be determined. 54

We distributed $1,480,229 in Incentive Distributions under the Plan during fiscal 2025, including payments to former employees and their heirs of approximately $760,299 and the named executive officers of approximately $625,733. With regard to the Gains Interest, Kestrel Heat has not given any indication that it will sell its general partner units within the next 12 months. Thus the Plan’s value attributable to the Gains Interest currently cannot be determined.

Retirement and Health Benefits

We offer a health and welfare and retirement program to all eligible employees. The named executive officers are generally eligible for the same programs on the same basis as other employees of Star. We maintain a tax-qualified 401(k) retirement plan that provides eligible employees with an opportunity to save for retirement on a tax advantaged basis. Under the 401(k) plan, subject to IRS limitations, each participant can contribute from 0% to 60% of compensation.

We make a 4% (or a maximum of 5.5% for participants who had 10 or more years of service at the time our defined benefit plans were frozen and who have reached the age 55) core contribution of a participant’s compensation and generally can match 2/3 (up to 3.0%) of a participant’s contributions, subject to IRS limitations.

In addition, as of September 30, ~~2024~~2025, we have one frozen defined benefit pension plan that was maintained for all eligible employees, including certain executive officers. The present value of accumulated benefits under this frozen defined benefit pension plan for certain executive officers is provided in the table labeled “Pension Plans Pursuant to Which Named Executive Officers Have an Accumulated Benefit But Are Not Currently Accruing Benefits.”

53Fiscal 2025 Compensation Decisions

~~Fiscal~~For ~~2024~~fiscal ~~Compensation~~2025, ~~Decisions~~the foregoing elements of compensation were applied as follows:

For fiscal 2024, the foregoing elements of compensation were applied as follows:

Base Salary

The following table sets forth each named executive officer’s base salary as of October 1, ~~2024~~2025 and the percentage increase in base salary over October 1, ~~2023~~2024. The current base salaries for our named executive officers were determined based upon the factors discussed under the caption “Base Salary.” The average percentage increase in base salary for executives in our peer group was approximately 67.59%.

Name	Salary		Percentage ChangeFrom Prior Year
Jeffrey M. Woosnam	$	~~494~~511,~~000~~290		43.05	%
Richard F. Ambury	$	~~490~~508,~~955~~155		43.05	%
Jeffrey S. Hammond	$	~~369~~381,~~065~~985		43.05	%
Joseph R. McDonald	$	~~369~~381,~~065~~985		43.05	%

Annual Discretionary Profit Sharing Allocation

Based on the annual performance reviews for our CEO and named executive officers, the Board approved annual profit sharing allocations as reflected in the “Summary Compensation Table” and notes thereto. For fiscal ~~2024~~2025, the profit sharing amounts reflected in the Summary Compensation Table are 15over 18% higher than fiscal ~~2023~~2024 for Messrs. Woosnam, Ambury, Hammond and McDonald.

One of our primary performance measures is Adjusted EBITDA, as defined under the Profit Sharing Plan. For fiscal ~~2024~~2025, Adjusted EBITDA (as calculated under the Profit Sharing Plan) increased by $1425.64 million, or ~~15.5~~23%, to $~~109~~134.26 million compared to fiscal ~~2023~~2024. For our peers that are on a fiscal year similar to Star Group, the average percentage increase in Adjusted EBITDA was 818.60%, and the average total compensation increased by 1726.1%.

Another performance measure is acquisitions. During fiscal ~~2024~~2025, the Company acquired ~~four~~one heating oil ~~businesses~~business and ~~one~~three propane ~~business~~businesses with an aggregate purchase price of $4980.45 million that are expected to generate approximately 2311.37 million gallons of home heating oil and propane volumes annually. ~~Messrs.~~The ~~Woosnam,~~Board ~~Ambury, Hammond and McDonald were instrumental in the successful integration of these transactions.~~

~~In addition, the Company extended its banking facility which provided availability for recent and future acquisitions at the same pricing under the previous facility.~~55

concluded that Messrs. Woosnam, Ambury, Hammond and McDonald were instrumental in the successful integration of these transactions.

Management Incentive Compensation Plan

In 2012, under the Plan Amendments adopted by the Board, the number and identity of the Plan participants and their participation points were frozen at the current levels in order to more closely align the interests of Plan participants and unitholders and to give Plan participants a continuing personal interest in our success. The number of participation points that were previously awarded to the named executive officers was based on the length of service and level of responsibility of the named executive and our desire to retain the named executive.

54In fiscal 2025, $625,733 was paid to the named executive officers under the Plan as indicated in the following chart:

In fiscal 2024, $558,867 was paid to the named executive officers under the Plan as indicated in the following chart:


Name	Points		Percentage			Management Incentive Payments
Jeffrey M. Woosnam		60		5.5	%		80,740
Richard F. Ambury		235		21.4	%		316,231
Jeffrey S. Hammond		50		4.5	%		67,283
Joseph R. McDonald		120		10.9	%		161,479
Other Plan Participants (a)		635		57.7	%		854,496
Total		1,100		100	%	$	1,480,229

(a)

Name	Points		Percentage			ManagementIncentivePayments
Jeffrey M. Woosnam		60		5.5	%		72,112
Richard F. Ambury		235		21.4	%		282,438
Jeffrey S. Hammond		50		4.5	%		60,093
Joseph R. McDonald		120		10.9	%		144,224
Other Plan Participants (a)		635		57.7	%		763,192
Total		1,100		100	%	$	1,322,059

Includes 300 points (27.3%) that were awarded to Mr. Donovan prior to his retirement as the Company’s President and Chief Executive Officer effective September 30, 2013.

Retirement and Health Benefits

The named executive officers participate in our retirement and health benefit plans.

Employment Contracts and Severance Agreements

Agreement with Richard F. Ambury

We entered into an employment agreement with Mr. Ambury effective as of April 28, 2008. Mr. Ambury will serve as Chief Financial Officer and Treasurer on an at-will basis. The employment agreement provides for one year’s salary as severance if Mr. Ambury’s employment is terminated without cause or by Mr. Ambury for good reason.

Agreement with Jeffrey M. Woosnam

We entered into an employment agreement with Mr. Woosnam effective as of June 19, 2019. Mr. Woosnam will serve as President and Chief Executive Officer of Kestrel Heat on an at-will basis. The employment agreement provides for one year’s salary as severance if Mr. Woosnam’s employment is terminated without cause or by Mr. Woosnam for good reason.

Change in Control Agreements

Change in control arrangements are included in the employment agreement for Mr. Woosnam, Chief Executive Officer and we have entered into a Change in Control Agreement with Mr. Ambury, Chief Financial Officer. Under the terms of each agreement, if either of these executive officers is terminated within 180 days following a change in control (as defined in the agreement), he will be entitled to a payment equal to two times his base annual salary in the year of such termination plus two times the average amount paid as a bonus and/or as profit sharing during the three years preceding the year of such termination. The term change in control means the present equity owners of Kestrel Heat and their affiliates collectively cease to beneficially own equity interests having the voting power to elect at least a majority of the members of the Board of Directors or other governing board of the general partner or any successor entity. If a change in control were to have occurred and their employment was terminated as of the date of this Report, Mr. Woosnam would have received a payment of $2,224,330 and Mr. Ambury would have received a payment of $1,962,735.

5556

general partner or any successor entity. If a change in control were to have occurred and their employment was terminated as of the date of this Report, Mr. Woosnam would have received a payment of $2,343,617 and Mr. Ambury would have received a payment of $2,065,825.

Pay Ratio Disclosure

As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(u) of Regulation S-K, we are providing the following information about the ratio of the annual total compensation, calculated in accordance with the requirements of Item 402(c)(2)(x) of Regulation S-K of our CEO, Jeffrey M. Woosnam and the annual total compensation of our median employee. For fiscal ~~2024~~2025, our last completed fiscal year, our CEO’s total compensation was $1,~~255~~402,~~821~~604 versus our median employee compensation of $7579,~~577~~789. This reflects a CEO pay ratio of 1718:1. We identified our median compensation employee by examining total compensation paid for fiscal year ~~2024~~2025 to all individuals, excluding Mr. Woosnam, who were employed by us on September 30, ~~2024~~2025, the last day of our fiscal year based on payroll records. No assumptions, adjustments or estimates were made in respect of total compensation, except that we annualized the compensation of any employee that was not employed with us for all of fiscal year ~~2024~~2025, excluding seasonal and temporary employees.

Indemnification Agreements

We have entered into an indemnification agreement with each of our directors and senior executives. These agreements provide for us to, among other things, indemnify such persons against certain liabilities that may arise by reason of their status or service as directors or officers, to advance their expenses incurred as a result of a proceeding as to which they may be indemnified and to cover such person under any directors’ and officers’ liability insurance policy we choose, in our discretion, to maintain. These indemnification agreements are intended to provide indemnification rights to the fullest extent permitted under applicable indemnification rights statutes in the State of Delaware and are in addition to any other rights such person may have under our Partnership Agreement and the limited liability company agreement of our general partner, and applicable law. We believe these indemnification agreements enhance our ability to attract and retain knowledgeable and experienced executives and independent, non-management directors.

Board of Directors Report

The Board of Directors of the general partner of the Company does not have a separate compensation committee. Executive compensation is determined by the Board of Directors.

The Board of Directors reviewed and discussed with the Company’s management the Compensation Discussion and Analysis contained in this annual report on Form 10-K. Based on that review and discussion, the Board of Directors recommends that the Compensation Discussion and Analysis be included in the Company’s annual report on Form 10-K for the year ended September 30, ~~2024~~2025.

Paul A. Vermylen, Jr.

Jeffrey M. Woosnam

Henry D. Babcock

David M. Bauer

C. Scott Baxter

Daniel P. Donovan

Bryan H. Lawrence

William P. Nicoletti

5657

Executive Compensation Table

The following table sets forth the annual salary compensation, bonus and all other compensation awards earned and accrued by the named executive officers in the fiscal year.

	Summary Compensation Table
Name andPrincipal Position	FiscalYear	Salary		Bonus		UnitAwards		OptionAwards		Non-EquityIncentivePlanComp.(1)		Change inPensionValue andNonqualifiedDeferredComp.Earnings (2)		All OtherComp.(3)		Total
Jeffrey M. Woosnam	~~2024~~2025	$	~~484~~502,~~410~~645		—		—		—	$	~~648~~768,~~945~~310	$	—	$	~~122~~131,~~466~~649	$	1,~~255~~402,~~821~~604
President and Chief	~~2023~~2024	$	~~466~~484,~~000~~410		—		—		—	$	~~564~~648,~~300~~945	$	—	$	~~112~~122,~~205~~466	$	1,~~142~~255,~~505~~821
Executive Officer	~~2022~~2023	$	~~448~~466,~~500~~000		—		—		—	$	~~641~~564,~~250~~300	$	—	$	~~103~~112,~~353~~205	$	1,~~193~~142,~~103~~505
Richard F. Ambury	~~2024~~2025	$	~~481~~499,~~505~~555		—		—		—	$	~~514~~611,~~832~~760	$	~~18,386~~—	$	~~331~~366,~~938~~031	$	1,~~346~~477,~~661~~346
Chief Financial Officer,	~~2023~~2024	$	~~464~~481,~~073~~505		—		—		—	$	~~447~~514,~~680~~832	$	—18,386	$	~~360~~331,~~539~~938	$	1,~~272~~346,~~292~~661
Treasurer and Executive	~~2022~~2023	$	~~450~~464,~~530~~073		—		—		—	$	~~508~~447,~~725~~680	$	—	$	~~271~~360,~~226~~539	$	1,~~230~~272,~~481~~292
Vice President
Jeffrey S. Hammond	~~2024~~2025	$	~~361~~375,~~965~~525		—		—		—	$	~~481~~571,~~080~~620	$	—	$	~~110~~118,~~445~~807	$	~~953~~1,~~490~~065,952
Chief Operating	~~2023~~2024	$	~~348~~361,~~040~~965		—		—		—	$	~~418~~481,~~330~~080	$	—	$	~~101~~110,~~107~~445	$	~~867~~953,~~477~~490
Officer	~~2022~~2023	$	~~335~~348,~~445~~040		—		—		—	$	~~475~~418,~~380~~330	$	—	$	93101,~~524~~107	$	~~904~~867,~~349~~477
Joseph R. McDonald	~~2024~~2025	$	~~361~~375,~~965~~525		—		—		—	$	~~481~~571,~~080~~620	$	—	$	~~193~~211,~~941~~618	$	1,~~036~~158,~~986~~763
Chief Customer	~~2023~~2024	$	~~348~~361,~~040~~965		—		—		—	$	~~418~~481,~~330~~080	$	—	$	~~175~~193,~~665~~941	$	~~942~~1,~~035~~036,986
Officer	~~2022~~2023	$	~~335~~348,~~445~~040		—		—		—	$	~~475~~418,~~380~~330	$	—	$	~~159~~175,~~499~~665	$	~~970~~942,~~324~~035

(1)

Payable pursuant to the Company’s profit sharing pool, which is described under “Compensation Discussion and Analysis – Profit Sharing Allocation.”

(2)

We have one frozen defined benefit pension plan that we sometimes refer to in this Report as the Petro defined benefit pension plan, where participants are not accruing additional benefits. Mr. Ambury also participated in a tax-qualified supplemental employee retirement plan (the "SERP") which, prior to being frozen in 1997, represented contributions to an employee plan to compensate for a reduction in certain benefits prior to 1997. In June 2023, Mr. Ambury received a $64,059 lump sum distribution under the SERP in connection with ~~this~~his withdrawal from the SERP. Mr. Ambury is not entitled to receive any further benefits under the SERP. The change in all the named executive’s pension values are non-cash, and reflect normal adjustments resulting from changes in discount rates and government mandated mortality tables. For fiscal 2025, Mr. Ambury's pension value decreased $14,933.

(3)

All other compensation is subdivided as follows:

Name	ManagementIncentiveCompensation Plan		Company Match andCore Contribution to401(K) Plan		Car Allowance or MonetaryValue for Personal Use ofCompany Owned Vehicle		Total
Jeffrey M. Woosnam	$	7280,~~112~~740	$	2021,~~553~~088	$	29,~~801~~821	$	~~122~~131,~~466~~649
Richard F. Ambury	$	~~282~~316,~~438~~231	$	2021,~~700~~000	$	28,800	$	~~331~~366,~~938~~031
Jeffrey S. Hammond	$	6067,~~093~~283	$	2021,~~471~~223	$	2930,~~881~~301	$	~~110~~118,~~445~~807
Joseph R. McDonald	$	~~144~~161,~~224~~479	$	1920,~~709~~444	$	3029,~~008~~695	$	~~193~~211,~~941~~618

5758

Grants of Plan-Based Awards

Estimated Future PayoutsEquity Incentive Plan Awards (1)

Estimated Future PayoutsUnder Equity Incentive Plan

All OtherStocksAwards:Number ofShares of

All OtherOptionAwards:Number ofSecurities

Exercise orBase Price ofOption

Grant DateFair Valueof Stockand

Name

GrantDate (1)

Threshold($)

Target($) (2)

Maximum($)

Threshold(#)

Target(#)

Maximum(#)

Stock orUnits (#)

UnderlyingOptions (#)

Awards($/Sh)

OptionAwards

Jeffrey M.

Woosnam

7/21/09

—

~~648~~768,~~945~~310

—

Richard F.

Ambury

7/21/09

—

~~514~~611,~~832~~760

—

Jeffrey S.

Hammond

7/21/09

—

~~481~~571,~~080~~620

—

Joseph R.

McDonald

7/21/09

—

~~481~~571,~~080~~620

—

(1)

On July 21, 2009, the Board of Directors authorized the continuance of the annual profit sharing plan, subject to its power to terminate the plan at any time. Profit sharing allocations are described under “Compensation Philosophy and Policies—Profit Sharing Allocations.”

(2)

The annual profit sharing plan does not provide for thresholds or maximums; the amounts listed represent the actual awards to the named executive officers for fiscal ~~2024~~2025.

Outstanding Equity Awards at Fiscal Year-End

None.

Option Exercises and Stock Vested

None.

Pension Plans Pursuant to Which Named Executive Officers Have an Accumulated Benefit But Are Not Currently Accruing Benefits

Name

Plan Name

Number of YearsCredited Service

Present Value ofAccumulated Benefit

Payments During LastFiscal Year

Richard F. Ambury (1)

Retirement Plan

~~259~~244,~~412~~479

—

(1)

The named executive officer has accumulated benefits in the tax-qualified Petro defined benefit pension plan that was frozen in 1997. Mr. Ambury also participated in a tax-qualified supplemental employee retirement plan which, prior to being frozen in 1997, represented contributions to an employee plan to compensate for a reduction in certain benefits prior to 1997. No other named executives were participants in any of these plans. Each year, the named executive officer’s accumulated benefits are actuarially calculated generally based on the credited years of service and each employee’s compensation at the time the plan was frozen. The present value of these amounts are the present value of a single life annuity generally payable at later or normal retirement age, adjusted for changes in discount rates and government mandated mortality tables. See Note 14—Employee Benefit Plans, to Star’s Consolidated Financial Statements, for the material assumptions applied in quantifying the present value of the accumulated benefits of the frozen plan.

Nonqualified Defined Contribution and Other Nonqualified Deferred Compensation Plans

None.

5859

Potential Payments Upon Termination

If Mr. Woosnam’s employment is terminated for reasons other than for cause or if Mr. Woosnam terminates his employment for good reason, he will be entitled to receive one-year’s salary as severance, except in the case of a termination following a change in control which is discussed above under “Change in Control Agreements.” For 12 months following the termination of his employment, Mr. Woosnam is prohibited from competing with the Company or from becoming involved either as an employee, as a consultant or in any other capacity, in the sale of heating oil or propane on a retail basis.

If Mr. Ambury’s employment is terminated for reasons other than cause or if Mr. Ambury terminates his employment for a good reason, he will be entitled to receive a severance payment of one year’s salary except in the case of a termination following a change in control which is discussed above under “Change in Control Agreements.” For 12 months following the termination of his employment, Mr. Ambury is prohibited from competing with the Company or from becoming involved either as an employee, as a consultant or in any other capacity, in the sale of heating oil or propane on a retail basis.

The amounts shown in the table below assume that the triggering event for each named executive officer’s termination or change in control payment was effective as of the date of this Report based upon their historical compensation arrangements as of such date. The actual amounts to be paid out can only be determined at the time of such named executive officer’s termination of employment or Star’s change of control.

The employment agreements of the foregoing officers also require that they not reveal confidential information of the Company within 12 months following the termination of their employment.

Name	Potential PaymentsUpon Termination		Potential PaymentsFollowinga Change of Control
Jeffrey M. Woosnam	$	~~494~~511,~~000~~290	$	2,~~224~~343,~~330~~617
Richard F. Ambury	$	~~490~~508,~~955~~155	$	12,~~962~~065,~~735~~825

5960

Compensation of Directors

	Director Compensation Table - Fiscal Year 2024
	Director Compensation Table - Fiscal Year 2025
Name	FeesEarnedor Paidin Cash		UnitAwards		OptionAwards		Non-EquityIncentivePlanCompensation		Change inPensionValue andNonqualifiedDeferredCompensationEarnings (2)		All OtherCompensation(3)		Total
Paul A. Vermylen, Jr. (1)	$	~~129~~132,~~500~~633		—		—		—	$	~~6,337~~—	$	69,527	$	~~205~~202,~~364~~160
Daniel P. Donovan (4)	$	7374,~~283~~279		—		—		—	$	~~25,050~~—	$	~~423~~466,~~670~~810	$	~~522~~541,~~003~~089
Henry D. Babcock (5)	$	95,463		—		—		—	$	—	$	—	$	95,463
Henry D. Babcock (8)	$	31,433		—		—		—	$	—	$	—	$	31,433
David M. Bauer (5)	$	95,~~463~~488		—		—		—	$	—	$	—	$	95,~~463~~488
C. Scott Baxter (5)	$	95,~~463~~488		—		—		—	$	—	$	—	$	95,~~463~~488
Bryan H. Lawrence (6)	$	—		—		—		—	$	—	$	—	$	—
William P. Nicoletti (7)	$	~~107~~109,~~142~~175		—		—		—	$	—	$	—	$	~~107~~109,~~142~~175

(1)

Mr. Vermylen is non-executive Chairman of the Board.

(2)

Mr. Vermylen and Mr. Donovan participate in our frozen defined benefit pension plan. Participants are currently not accruing additional benefits under the frozen plan. The change in the pension value reflects normal non-cash adjustments resulting from changes in discount rates and government mandated mortality tables. For fiscal year 2025, Mr. Vermylen and Mr. Donovan's pension value decreased $36,160 and $37,405, respectively.

(3)

Mr. Vermylen and Mr. Donovan reached the frozen defined benefit pension plan full retirement age in fiscal year 2012 and 2011, respectively, and started receiving pension payments.

(4)

The amount included for Mr. Donovan in all other compensation represents $~~360~~403,~~559~~699 for amounts paid to him under the management incentive compensation plan, and $63,111 for pension payments.

(5)

Mr. ~~Babcock, Mr.~~ Bauer and Mr. Baxter are Audit Committee members.

(6)

Mr. Lawrence has chosen not to receive any fees as a director of the general partner of Star.

(7)

Mr. Nicoletti is Chairman of the Audit Committee.

(8)

~~Each non-management director receives an annual fee of $67,300 plus $1,500 for each regular and telephonic meeting attended~~Mr. ~~The~~Babcock ~~Chairman~~retired offrom the ~~Audit~~Board ~~Committee receives an annual fee~~ of ~~$27,000~~Directors ~~while~~and ~~other Audit Committee members receive an annual fee of $13,500. Each member of~~ the Audit Committee ~~receives~~effective ~~$1,500~~January ~~for every regular and telephonic meeting attended. The non-executive Chairman of the Board receives an annual fee of $124~~15,~~800.~~ 2025.

~~ITEM~~Each 12non-management director receives an annual fee of $69,650 plus $1,500 for each regular and telephonic meeting attended. ~~SECURITY~~ ~~OWNERSHIP~~The OFChairman ~~CERTAIN~~of ~~BENEFICIAL~~the ~~OWNERS~~Audit ~~AND~~Committee ~~MANAGEMENT~~receives an annual fee of $27,950 while other Audit Committee members receive an annual fee of $14,000. Each member of the Audit Committee receives $1,500 for every regular and telephonic meeting attended. The non-executive Chairman of the Board receives an annual fee of $129,200.

~~The following table shows the beneficial ownership as of November 30, 2024 of common units and general partner units by:~~ 61

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS

The following table shows the beneficial ownership as of November 30, 2025 of common units and general partner units by:

(1)

Kestrel and certain beneficial owners;

(2)

each of the named executive officers and directors of Kestrel Heat;

(3)

all directors and executive officers of Kestrel Heat as a group; and

(4)

each person the Company knows to hold 5% or more of the Company’s units.

Except as indicated, the address of each person is c/o Star Group, L.P. at 9 West Broad, Street, Suite 310, Stamford, Connecticut 06902.

	Common Units					General Partner Units
Name	Number		Percentage			Number		Percentage
Kestrel (a)		—	*				325,729		100.00	%
Paul A. Vermylen, Jr. (b)		1,345,960		34.8908	%
Henry D. Babcock (c)		104,121	*
William P. Nicoletti		35,506	*
Bryan H. Lawrence		1,263,863		3.6683	%
C. Scott Baxter		—15,000	*
David M. Bauer (d)		1,254,662		3.63	%
David M. Bauer (c)		1,295,985		3.93	%
Daniel P. Donovan		25,000	*
Richard F. Ambury (e)		43,390	*
Richard F. Ambury (d)		43,390	*
Jeffrey M. Woosnam		15,000	*
Joseph R. McDonald		6,500	*
Jeffrey S. Hammond		5,000	*
All officers and directors and Kestrel Heat, LLC as a group (12 persons)		4,099,002		11.85	%		325,729		100.00	%
All officers and directors and Kestrel Heat, LLC as a group (11 persons)		4,051,204		12.29	%		325,729		100.00	%
Bandera Partners, LLC, et al. (f)		3,656,670		10.58	%
Hartree Partners, LP (e)		3,400,907		10.31	%
Hartree Partners, LP (g)		3,123,253		9.03	%
Bandera Partners, LLC, et al. (f)		2,956,670		8.97	%
Stephen M. Lessing (h)		2,020,000		5.84	%
Stephen M. Lessing (g)		2,020,000		6.13	%

(a)

Includes 325,729 general partner units owned by Kestrel Heat. In November 2021, Kestrel Heat made an in-kind distribution of 500,000 common units, representing approximately 1% of the issued and outstanding common units, to Kestrel, which, in turn, made an in-kind distribution of such units, pro rata, to its members.

(b)

Includes 218,515 Common Units held by The Robin C. Vermylen 2016 Irrevocable Trust, with respect to which Mr. Vermylen is a trustee of the trust and a beneficiary of the trust; and 852,614 Common Units held by The Paul A. Vermylen, Jr. 2015 Irrevocable Trust, with respect to which Mr. Vermylen’s spouse is a beneficiary of the trust and Mr. Vermylen is the settlor of the trust.

(c)

Includes 94,121 Common Units owned by White Hill Trust, with respect to which Mr. Babcock’s stepson and son-in-law are the trustees and Mr. Babcock’s wife is the primary beneficiary.

All Common Units are owned by Lubar Equity Fund, LLC. Mr. Bauer owns a minority interest in Lubar Equity Fund, LLC and is Chief Investment Officer of Lubar & Co. Incorporated, the sole manager of Lubar Equity Fund, LLC. While Mr. Bauer serves on the investment committee of Lubar & Co., Inc., he does not have sole or shared voting or investment power within the meaning of Rule 13d-3 of the Securities and Exchange Act of 1934 with respect to the Common Units held by Lubar Equity Fund, LLC and disclaims beneficial ownership of such securities except to the extent of his pecuniary interest therein.

(d)

Common Units are owned by the Richard F. Ambury 2013 Revocable Living Trust, with respect to which Mr. Ambury is the trustee.

(e)

According to a Schedule ~~13G/A~~13F ~~jointly~~ filed by ~~Bandera~~Hartree Partners, ~~LLC,~~LP ~~Gregory Bylinsky and Jefferson Gramm~~ with the SEC on ~~February~~November 13, ~~2024~~2025. Includes 206,483 common units directly owned by Mr. Gramm and 4,827 common units directly owned by Mr. Bylinsky. Bandera Partners, LLC is the investment manager of Bandera Master Fund L.P. which directly owns the remaining 3,445,360 common units reported on the Form 13F dated November 12, 2024.

(f)

According to a Schedule ~~13F~~13G jointly filed by ~~Hartree~~Bandera Partners, LPLLC, Gregory Bylinsky and Jefferson Gramm with the SEC on November 13, ~~2024~~2025. Includes 206,483 common units directly owned by Mr. Gramm and 4,827 common units directly owned by Mr. Bylinsky. Bandera Partners, LLC is the investment manager of Bandera Master Fund L.P. which directly owns the remaining 2,745,360 common units reported on the Form 13F dated November 12, 2025.

(g)

According to a Schedule 13G/A filed by Stephen M. Lessing with the SEC on June 25, 2024.

* Amount represents less than 1%.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Star has a written conflict of interest policy and procedure that requires all officers, directors and employees to report to senior corporate management or the board of directors, all personal, financial or family interest in transactions that involve the individual and the Star. In addition, our Governance Guidelines provide that any monetary arrangement between a director and his or her affiliates (including any member of a director’s immediate family) and the Company or any of its affiliates for goods or services shall be subject to approval by the full Board of Directors.

monetary arrangement between a director and his or her affiliates (including any member of a director’s immediate family) and the Company or any of its affiliates for goods or services shall be subject to approval by the full Board of Directors.

The general partner does not receive any management fee or other compensation for its management of Star. The general partner is reimbursed for all expenses incurred on behalf of the Star, including the cost of compensation, that are properly allocable to Star. Our Partnership Agreement provides that the general partner shall determine the expenses that are allocable to Star in any reasonable manner determined by the general partner in its sole discretion. In addition, the general partner and its affiliates may provide services to the Star for which a reasonable fee would be charged as determined by the general partner.

Kestrel has the ability to elect the Board of Directors of Kestrel Heat, including Messrs. Vermylen, Bauer and Lawrence. Messrs. Vermylen, Bauer and Lawrence are also members of the board of managers of Kestrel and, either directly or through affiliated entities, own equity interests in Kestrel. Kestrel owns all of the issued and outstanding membership interests of Kestrel Heat.

Policies Regarding Transactions with Related Persons

Our Code of Business Conduct and Ethics, Partnership Governance Guidelines and Partnership Agreement set forth policies and procedures with respect to transactions with persons affiliated with the Company and the resolution of conflicts of interest, which taken together provide the Company with a framework for the review and approval of “transactions” with “related persons” as such terms are defined in Item 404 of Regulation S-K.

In connection with the Company’s acquisition of assets that currently form part of the Company’s Pennsylvania operations, the Company (through one of its wholly-owned subsidiaries) entered into an agreement to lease certain real estate from the seller of such assets in August 1994. The seller of such assets and the original lessor of the real estate was an entity in which Douglas Woosnam, the father of Jeffrey Woosnam, our president and chief executive officer, held a direct, material interest. Since August 1994, the original lease agreement has been amended and extended multiple times. Further, the original lessor assigned the lease to Douglas Woosnam. The last such amendment and extension occurred in June 2024. Pursuant to the terms of that amendment, the lease was extended for an additional period commencing September 13, 2026 and ending September 12, 2036. The total rent for the ten-year period commencing September 13, 2026 is $2,186,095.20, payable in 120 monthly payments escalating from $17,239.63 per month in the first year of the extension to $20,673.58 per month in the last year of the extended lease period. The lease amendment also increases the financial responsibility of the landlord should storage tanks on the property need a new repairs from 50 percent of the costs in the first year of the extension to full financial responsibility by the last year of the extension. The lease and all amendments were negotiated at arms’ length and the rent payable on a per square foot basis is comparable to the per square foot rental rates of similar commercial property in Southampton, Pennsylvania. The Company is responsible for taxes, insurance, utilities and maintenance of the premises. For the fiscal year ended September 30, ~~2024~~2025, we paid $200,850 in the aggregate to the lessor under the lease agreement.

Other than the lease agreement discussed above, for the years ended September 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, Star had no related party transactions or agreements pursuant to Item 404 of Regulation S-K.

Our Code of Business Conduct and Ethics applies to our directors, officers, employees and their affiliates. It deals with conflicts of interest (e.g., transactions with the Company), confidential information, use of Star assets, business dealings, and other similar topics. The Code requires officers, directors and employees to avoid even the appearance of a conflict of interest and to report potential conflicts of interest to the Company’s Vice President - Controller or Director of Internal Audit.

Our Partnership Governance Guidelines provide that any monetary arrangement between a director and his or her affiliates (including any member of a director’s immediate family) and the Company or any of its affiliates for goods or services shall be subject to approval by the full Board of Directors. Although the Partnership Governance Guidelines by their terms only apply to directors the Board intends to apply this requirement to officers and employees and their affiliates.

To the extent that the Board determines that it would be in the best interests of the Company to enter into a transaction with a related person, the Board intends to utilize the procedures set forth in the Partnership Agreement for the review and approval of potential conflicts of interest. Our Partnership Agreement provides that whenever a potential conflict of interest exists or arises between the general partner or any of its Affiliates (including its directors, executive officers and controlling members), on the one hand, and the Company or any partner, on the other hand, any resolution or course of action in respect of such conflict of interest shall be permitted and deemed approved by all partners, and shall not constitute a breach of the Partnership Agreement, of any agreement contemplated therein, or of any duty stated or implied by law or equity, if the resolution or course of action is, or by operation of the Partnership Agreement is deemed to be, fair and reasonable to the Company.

Any conflict of interest and any resolution of such conflict of interest shall be conclusively deemed fair and reasonable to the Company if such conflict of interest or resolution is (i) approved by a committee of independent directors (the “Conflicts Committee”), (ii) on terms no less favorable to the Company than those generally being provided to or available from unrelated third parties or (iii) fair to the Company, taking into account the totality of the relationships between the parties involved (including other transactions that may be particularly favorable or advantageous to the Company).

The general partner (including the Conflicts Committee) is authorized in connection with its determination of what is “fair and reasonable” to the Company and in connection with its resolution of any conflict of interest to consider:

(a)

the relative interests of any party to such conflict, agreement, transaction or situation and the benefits and burdens relating to such interest;

(b)

any customary or accepted industry practices and any customary or historical dealings with a particular person;

(c)

any applicable generally accepted accounting practices or principles; and

(d)

such additional factors as the general partner (including the Conflicts Committee) determines in its sole discretion to be relevant, reasonable or appropriate under the circumstances.

Director Independence

Section 303A of the New York Stock Exchange listed company manual provides that limited partnerships are ~~not~~exempt ~~required~~from tothe requirement that all NYSE listed companies have a majority of independent directors. It is the policy of the Board of Directors that the Board shall at all times have at least three independent directors or such higher number as may be necessary to comply with the applicable federal securities law requirements. For the purposes of this policy, “independent director” has the meaning set forth in Section 10A(m) of the Securities Exchange Act of 1934, as amended, any applicable stock exchange rules and the rules and regulations promulgated in the Partnership governance guidelines available on its website www.stargrouplp.com. The Board of Directors has determined that Messrs. Nicoletti, ~~Babcock,~~ Bauer and Baxter are independent directors.

6364

ITEM 14. PRINCIPAL ~~ACCOUNTING~~ACCOUNTANT FEES AND SERVICES

Our independent accounting firm is KPMG LLP. The following table represents the aggregate fees for professional audit services rendered by KPMG LLP including fees for the audit of our annual financial statements for the fiscal years ~~2024~~2025 and ~~2023~~2024, and for fees billed and accrued for other services rendered by KPMG LLP (in thousands).

	2024		2023
	2025		2024
Audit Fees (1)	$	2,~~065~~176	$	12,~~938~~065
Tax Fees (2)		~~422~~521		~~403~~422
Total Fees	$	2,~~487~~697	$	2,~~341~~487

(1)

Audit fees were for professional services rendered in connection with audits and quarterly reviews of the consolidated financial statements of the Company.

(2)

Tax fees related to services for tax consulting and tax compliance.

Audit Committee: Pre-Approval Policies and Procedures. At its regularly scheduled and special meetings, the Audit Committee of the Board of Directors considers and pre-approves any audit and non-audit services to be performed by the Company’s independent accountants. The Audit Committee has delegated to its chairman, an independent member of the Company’s Board of Directors, the authority to grant pre-approvals of non-audit services provided that the service(s) shall be reported to the Audit Committee at its next regularly scheduled meeting.

6465

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Financial Statements—See “Index to Consolidated Financial Statements and Financial Statement Schedule” set forth on page F-1.

Financial Statement Schedule—See “Index to Consolidated Financial Statements and Financial Statement Schedule” set forth on page F-1.

Exhibits—See “Index to Exhibits” set forth on the following page.

ITEM 16. FORM 10-K SUMMARY

None.

INDEX TO EXHIBITS

ExhibitNumber			Description
3.1			Amended and Restated Certificate of Limited Partnership (Incorporated by reference to an exhibit to the Registrant’s Quarterly Report on Form 10-Q filed with the Commission on May 9, 2006.)
3.2			Certificate of Amendment to Amended and Restated Certificate of Limited Partnership (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on October 27, 2017.)
3.3			Third Amended and Restated Agreement of Limited Partnership (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on November 6, 2017.)
10.1			Amended and Restated Management Incentive Compensation Plan† (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on July 20, 2012.)
10.2			Form of Indemnification Agreement for Officers and Directors (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on July 21, 2006.)
10.3			Form of Amendment No. 1 to Indemnification Agreement (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on October 23, 2006.)
10.4			Modification of Profit Sharing Plan† (Incorporated by reference to an exhibit to the Registrant’s Annual Report on Form 10-K filed with the Commission on December 10, 2014.)
10.5			Change in Control Agreement dated December 4, 2007 between Star Gas Partners, L.P. and Richard F. Ambury† (Incorporated by reference to an exhibit to the Registrant’s Annual Report on Form 10-K filed with the Commission on December 7, 2007.)
10.6			Employment Agreement dated April 28, 2008 between Star Gas Partners, L.P. and Richard Ambury† (Incorporated by reference to an exhibit to the Registrant’s Annual Report on Form 10-K filed with the Commission on December 10, 2008.)
10.7			Letter Agreement, dated as of June 19, 2019, between the Company and Jeffrey M. Woosnam regarding employment (Incorporated by reference to an exhibit to Registrant’s Current Report on Form 8-K dated June 21, 2019.)
10.8			Seventh Amended and Restated Credit Agreement, dated as of September 27, 2024 (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K dated September 27, 2024.)
10.9			Seventh Amended and Restated Pledge and Security Agreement, dated as of September 27, 2024 (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K dated September 27, 2024.)
14			Code of Business Conduct and Ethics (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K dated November 14, 2014.)
21*			Subsidiaries of the Registrant (Filed herewith.)
31.1*			Certification of Chief Executive Officer, Star Group, L.P., pursuant to Rule 13a-14(a)/15d-14(a)
31.2*			Certification of Chief Financial Officer, Star Group, L.P., pursuant to Rule 13a-14(a)/15d-14(a)

32.1*		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
97*	Star Group L.P. Incentive Compensation Recovery Policy (Filed herewith.)
101.INS*		Inline XBRL Instance Document
101.SCH*		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

INDEX TO EXHIBITS


Exhibit Number			Description

3.1			Amended and Restated Certificate of Limited Partnership (Incorporated by reference to an exhibit to the Registrant’s Quarterly Report on Form 10-Q filed with the Commission on May 9, 2006.)

3.2			Certificate of Amendment to Amended and Restated Certificate of Limited Partnership (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on October 27, 2017.)

3.3			Third Amended and Restated Agreement of Limited Partnership (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on November 6, 2017.)

3.4			Amendment No. 1 to Third Amended and Restated Agreement of Limited Partnership of Star Group, L.P. (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K filed with the Commission on March 24, 2023).

4.1			Unit Purchase Rights Agreement dated as of March 24, 2023 by and between the Registrant and Computershare Trust Company, N.A., as rights agent (which includes the form of Rights Certificate as Exhibit A thereto) (Incorporated by reference as an exhibit to the Registrant's Form 8-A filed with the Commission on March 24, 2023.)

10.1			Amended and Restated Management Incentive Compensation Plan† (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on July 20, 2012.)

10.2			Form of Indemnification Agreement for Officers and Directors (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on July 21, 2006.)

10.3			Form of Amendment No. 1 to Indemnification Agreement (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K with the Commission on October 23, 2006.)

10.4			Modification of Profit Sharing Plan† (Incorporated by reference to an exhibit to the Registrant’s Annual Report on Form 10-K filed with the Commission on December 10, 2014.)

10.5			Change in Control Agreement dated December 4, 2007 between Star Gas Partners, L.P. and Richard F. Ambury† (Incorporated by reference to an exhibit to the Registrant’s Annual Report on Form 10-K filed with the Commission on December 7, 2007.)

10.6			Employment Agreement dated April 28, 2008 between Star Gas Partners, L.P. and Richard Ambury† (Incorporated by reference to an exhibit to the Registrant’s Annual Report on Form 10-K filed with the Commission on December 10, 2008.)

10.7			Letter Agreement, dated as of June 19, 2019, between the Company and Jeffrey M. Woosnam regarding employment (Incorporated by reference to an exhibit to Registrant’s Current Report on Form 8-K dated June 21, 2019.)

10.8			Seventh Amended and Restated Credit Agreement, dated as of September 27, 2024 (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K dated September 27, 2024.)

10.9			Seventh Amended and Restated Pledge and Security Agreement, dated as of September 27, 2024 (Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K dated September 27, 2024.)


10.10		First Amendment to Seventh Amended and Restated Credit Agreement and Seventh Amended and Restated Pledge and Security Agreement, dated as of April 2, 2025 (Incorporated by reference to an exhibit to the Registrant’s Quarterly Report on Form 10-Q dated May 7, 2025.)

10.11		Unit Purchase Agreement, dated as of May 30, 2025, between the Company and Bandera Master Fund, L.P (Incorporated by reference to an exhibit to the Registrant’s Quarterly Report on Form 10-Q dated August 6, 2025.)

19		Insider Trading Policy (Incorporated by reference to an exhibit to the Registrant’s Form 10-K/A dated February 25, 2025.)

21*		Subsidiaries of the Registrant (Filed herewith.)

31.1*		Certification of Chief Executive Officer, Star Group, L.P., pursuant to Rule 13a-14(a)/15d-14(a)

31.2*		Certification of Chief Financial Officer, Star Group, L.P., pursuant to Rule 13a-14(a)/15d-14(a)

32.1*		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

97*		Star Group L.P. Incentive Compensation Recovery Policy (Incorporated by reference to an exhibit to the Registrant’s Form 10-K dated December 4, 2024.)

101.INS*		Inline XBRL Instance Document

101.SCH*		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

* Filed Herewith

† Employee compensation plan.

6768

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the general partner has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized this ~~4th~~8th day of December, ~~2024~~2025:


STAR GROUP, L.P.

By:		KESTREL HEAT, LLC (General Partner)
By:		/s/ Jeffrey M. Woosnam
		Jeffrey M. Woosnam
		President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons in the capacities and on the date indicated:

Signature	Title	Date
/s/ Jeffrey M. Woosnam	President and Chief Executive Officer and Director Kestrel Heat, LLC	December 48, ~~2024~~2025
Jeffrey M. Woosnam
/s/ Richard F. Ambury	Chief Financial Officer, Executive Vice President, Treasurer and Secretary (Principal	December 48, ~~2024~~2025
Richard F. Ambury	Financial Officer) Kestrel Heat, LLC
/s/ Cory A. Czekanski	Vice President—Controller (Principal Accounting Officer) Kestrel Heat, LLC	December 48, ~~2024~~2025
Cory A. Czekanski
/s/ Paul A. Vermylen, Jr.	Non-Executive Chairman of the Board and Director Kestrel Heat, LLC	December 48, ~~2024~~2025
Paul A. Vermylen, Jr.
/s/ Henry D. Babcock	Director Kestrel Heat, LLC	December 4, 2024
/s/ C. Scott Baxter	Director Kestrel Heat, LLC	December 8, 2025
Henry D. Babcock
/s/ C. Scott Baxter	Director Kestrel Heat, LLC	December 4, 2024
C. Scott Baxter
/s/ David M. Bauer	Director Kestrel Heat, LLC	December 48, ~~2024~~2025
David M. Bauer
/s/ Daniel P. Donovan	Director Kestrel Heat, LLC	December 48, ~~2024~~2025
Daniel P. Donovan
/s/ Bryan H. Lawrence	Director Kestrel Heat, LLC	December 48, ~~2024~~2025
Bryan H. Lawrence
/s/ William P. Nicoletti	Director Kestrel Heat, LLC	December 48, ~~2024~~2025
William P. Nicoletti

6869

STAR GROUP, L.P. AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

AND FINANCIAL STATEMENT SCHEDULE

		Page
Part II Financial Information:
	Item 8—Financial Statements
	Report of Independent Registered Public Accounting Firm (KPMG LLP, Stamford, CT, Auditor Firm ID: 185)	F-2 – F-3
	Report of Independent Registered Public Accounting Firm (KPMG LLP, New York, NY, Auditor Firm ID: 185)	F-2 – F-3
	Consolidated Balance Sheets as of September 30, 2024 and September 30, 2023	F-4
	Consolidated Balance Sheets as of September 30, 2025 and September 30, 2024	F-4
	Consolidated Statements of Operations for the years ended September 30, 2024, September 30, 2023 and September 30, 2022	F-5
	Consolidated Statements of Operations for the years ended September 30, 2025, September 30, 2024 and September 30, 2023	F-5
	Consolidated Statements of Comprehensive Income for the years ended September 30, 2024, September 30, 2023 and September 30, 2022	F-6
	Consolidated Statements of Comprehensive Income for the years ended September 30, 2025, September 30, 2024 and September 30, 2023	F-6
	Consolidated Statements of Partners’ Capital for the years ended September 30, 2024, September 30, 2023 and September 30, 2022	F-7
	Consolidated Statements of Partners’ Capital for the years ended September 30, 2025, September 30, 2024 and September 30, 2023	F-7
	Consolidated Statements of Cash Flows for the years ended September 30, 2024, September 30, 2023 and September 30, 2022	F-8
	Consolidated Statements of Cash Flows for the years ended September 30, 2025, September 30, 2024 and September 30, 2023	F-8
	Notes to Consolidated Financial Statements	F-9 – F-3638
	Schedules for the years ended September 30, 2024, September 30, 2023 and September 30, 2022
	Schedules for the years ended September 30, 2025, September 30, 2024 and September 30, 2023
	I. Condensed Financial Information of Registrant	F-3739– F-3941
	II. Valuation and Qualifying Accounts	F-4042
	All other schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements or the notes therein.

F-1

Report of Independent Registered Public Accounting Firm

To the Unitholders of Star Group, L.P. and Board of Directors of Kestrel Heat, LLC

Star Group, L.P.:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated balance sheets of Star Group, L.P. and subsidiaries (the Company) as of September 30, ~~2024~~2025 and ~~2023~~2024, the related consolidated statements of operations, comprehensive income, partners’ capital, and cash flows for each of the years in the three-year period ended September 30, ~~2024~~2025, and the related notes and financial statement schedules I ~~and~~to II (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of September 30, ~~2024~~2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of September 30, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the years in the three-year period ended September 30, ~~2024~~2025, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, ~~2024~~2025 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audit of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and

F-2

that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Evaluation of self-insurance liabilities

As discussed in note 2 to the consolidated financial statements, the Company self-insures for a number of risks, including a portion of workers’ compensation, auto, general liability, and medical liability. Self-insurance liabilities are established and periodically evaluated, based upon expectations as to what the ultimate liability may be for outstanding claims using developmental factors based upon historical claim experience, including frequency, severity, demographic factors and other actuarial assumptions, with support from a qualified third-party actuary. The balance of ~~the~~ self-insurance liabilities, as of September 30, ~~2024~~2025 amounted to $7678.78 million as shown in note 12 to the consolidated financial statements. We identified the evaluation of the self-insurance liabilities for workers’ compensation, auto, and general liability claims as a critical audit matter. Specialized skill and knowledge were necessary to evaluate the actuarial models and key assumptions used to determine the liabilities. Additionally, the evaluation of key assumptions used to estimate the liabilities required complex auditor judgment due to the degree of measurement uncertainty. The key assumptions used include paid and incurred loss development factors, expected loss rates and the selection of the estimated ultimate losses among the estimates derived from the actuarial models. The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s self-insurance process, including controls related to review of the actuarial models and the development and selection of the key assumptions used in the actuarial calculations. We involved our actuarial professionals with specialized knowledge who assisted in:

•

Assessing the actuarial models used by the Company for consistency with generally accepted actuarial standards.

•

Evaluating the key assumptions underlying the Company’s actuarial estimates by developing an independent expectation of the self-insurance liabilities and comparing the expectation to the amounts recorded by the Company.

•

Evaluating the Company’s ability to estimate self-insurance liabilities by comparing its historical estimates with actual incurred losses and paid losses.

/s/ KPMG LLP

We have served as the Company’s auditor since 1995.

~~Stamford~~New York, ~~ConnecticutDecember~~New 4YorkDecember 8, ~~2024~~2025

F-3

STAR GROUP, L.P. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	September 30,
(in thousands)	~~2024~~2025			~~2023~~2024
ASSETS
Current assets
Cash and cash equivalents	$	~~117~~24,~~335~~683		$	45117,~~191~~335
Receivables, net of allowance of $6,434 and $8,375, respectively		94,981			114,079
Receivables, net of allowance of $7,196 and $6,434, respectively		102,119			94,981
Inventories		4147,~~587~~022			5641,~~463~~587
Fair asset value of derivative instruments		—790			~~10,660~~—
Prepaid expenses and other current assets		2732,~~566~~667			2827,~~308~~566
Total current assets		~~281~~207,~~469~~281			~~254~~281,~~701~~469
Property and equipment, net		~~104~~128,~~534~~605			~~105~~104,~~404~~534
Operating lease right-of-use assets		9193,~~141~~264			9091,~~643~~141
Goodwill		~~275~~293,~~829~~350			~~262~~275,~~103~~829
Intangibles, net		98124,~~712~~892			7698,~~306~~712
Restricted cash		250			250
Captive insurance collateral		7478,~~851~~189			7074,~~717~~851
Deferred charges and other assets, net		1211,~~825~~500			1512,~~354~~825
Total assets	$	~~939~~937,~~611~~331		$	~~875~~939,~~478~~611
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities
Accounts payable	$	3133,~~547~~667		$	3531,~~609~~547
Revolving credit facility borrowings		5—			~~240~~5
Fair liability value of derivative instruments		131,~~971~~398			~~118~~13,971
Current maturities of long-term debt		21,000			2021,~~500~~000
Current portion of operating lease liabilities		19,~~832~~934			1819,~~085~~832
Accrued expenses and other current liabilities		~~116~~119,~~317~~497			~~115~~116,~~606~~317
Unearned service contract revenue		66,~~424~~927			6366,~~215~~424
Customer credit balances		~~104~~86,~~700~~810			~~111~~104,~~508~~700
Total current liabilities		~~373~~349,~~796~~233			~~364~~373,~~881~~796
Long-term debt		~~187~~167,~~811~~118			~~127~~187,~~327~~811
Long-term operating lease liabilities		7577,~~916~~206			7775,~~600~~916
Deferred tax liabilities, net		2130,~~922~~823			2521,~~771~~922
Other long-term liabilities		16,~~273~~171			16,~~175~~273
Partners’ capital
Common unitholders		~~282~~314,~~058~~733			~~281~~282,~~862~~058
General partner		(56,~~714~~605	)		(45,~~615~~714	)
Accumulated other comprehensive loss, net of taxes		(1211,~~451~~348	)		(1312,~~523~~451	)
Total partners’ capital		~~263~~296,~~893~~780			263,~~724~~893
Total liabilities and partners’ capital	$	~~939~~937,~~611~~331		$	~~875~~939,~~478~~611

See accompanying notes to consolidated financial statements.

F-4

STAR GROUP, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	Years Ended September 30,
(in thousands, except per unit data)	~~2024~~2025			~~2023~~2024			~~2022~~2023
Sales:
Product	$	1,~~448~~437,~~792~~601		$	1,~~650~~448,~~741~~792		$	1,~~698~~650,~~281~~741
Installations and services		~~317~~346,~~307~~817			~~302~~317,~~121~~307			~~308~~302,~~277~~121
Total sales		1,~~766~~784,~~099~~418			1,~~952~~766,~~862~~099			21,~~006~~952,~~558~~862
Cost and expenses:
Cost of product		~~980~~912,~~831~~391			1980,~~204,184~~831			1,~~239~~204,~~605~~184
Cost of installations and services		~~283~~309,~~444~~161			~~277~~283,~~927~~444			~~282~~277,~~723~~927
(Increase) decrease in the fair value of derivative instruments		19(13,~~018~~390	)		119,~~977~~018			171,~~286~~977
Delivery and branch expenses		~~366~~400,~~381~~830			~~353~~366,~~614~~381			353,~~517~~614
Depreciation and amortization expenses		3135,~~494~~352			3231,~~350~~494			32,~~598~~350
General and administrative expenses		2830,~~405~~518			2528,~~780~~405			2425,~~882~~780
Finance charge income		(4,~~576~~915	)		(54,~~515~~576	)		(45,~~506~~515	)
Operating income		61114,~~102~~471			6261,~~545~~102			6062,~~453~~545
Interest expense, net		(1114,~~560~~323	)		(1511,~~532~~560	)		(1015,~~472~~532	)
Amortization of debt issuance costs		(~~988~~1,068	)		(~~1,084~~988	)		(~~955~~1,084	)
Income before income taxes		48,554			45,929			49,026
Other income, net (1)		3,822			—			—
Income tax expense		13,331			13,984			13,738
Income before income taxes		102,902			48,554			45,929
Net income	$	35,223		$	31,945		$	35,288
Income tax expense		29,407			13,331			13,984
General Partner’s interest in net income		311			288			281
Net income	$	73,495		$	35,223		$	31,945
Limited Partners’ interest in net income	$	34,912		$	31,657		$	35,007
General Partner’s interest in net income		677			311			288
Basic and diluted income per Limited Partner Unit (1):	$	0.90		$	0.81		$	0.85
Limited Partners’ interest in net income	$	72,818		$	34,912		$	31,657
Basic and diluted income per Limited Partner Unit (2):	$	1.82		$	0.90		$	0.81
Weighted average number of Limited Partner units outstanding:
Basic and Diluted		3534,~~273~~276			35,~~694~~273			3735,~~384~~694

(1)

See Note 2 – Summary of Significant Accounting Policies - Other Income, Net.

(2)

See Note 19 - Earnings Per Limited Partner Units.

See accompanying notes to consolidated financial statements.

F-5

STAR GROUP, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Years Ended September 30,
(in thousands)	~~2024~~2025			~~2023~~2024			~~2022~~2023
Net income	$	3573,~~223~~495		$	3135,~~945~~223		$	3531,~~288~~945
Other comprehensive income (loss):
Unrealized gain (loss) on pension plan obligation		1,291			1,463			(436	)
Unrealized gain on pension plan obligation		1,468			1,291			1,463
Tax effect of unrealized gain (loss) on pension plan obligation		(262	)		(405	)		129
Tax effect of unrealized gain on pension plan obligation		(388	)		(262	)		(405	)
Unrealized gain (loss) on captive insurance collateral		1,849			1,671			(4,952	)
Unrealized gain on captive insurance collateral		328			1,849			1,671
Tax effect of unrealized gain (loss) on captive insurance collateral		(390	)		(352	)		1,043
Tax effect of unrealized gain on captive insurance collateral		(69	)		(390	)		(352	)
Unrealized gain (loss) on interest rate hedge		(1,928	)		(399	)		3,607
Unrealized loss on interest rate hedge		(319	)		(1,928	)		(399	)
Tax effect of unrealized gain (loss) on interest rate hedge		512			105			(959	)
Tax effect of unrealized loss on interest rate hedge		83			512			105
Total other comprehensive income (loss)		1,072			2,083			(1,568	)
Total other comprehensive income		1,103			1,072			2,083
Total comprehensive income	$	3674,~~295~~598		$	3436,~~028~~295		$	3334,~~720~~028

See accompanying notes to consolidated financial statements.

F-6

STAR GROUP, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

Years Ended September 30, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023

	Number of Units
(in thousands)	Common			GeneralPartner		Common			GeneralPartner			Accum. OtherComprehensiveIncome (Loss)			TotalPartners’Capital
Balance as of September 30, 2021		39,046			326	$	295,063		$	(2,821	)	$	(14,038	)	$	278,204
Net income							35,007			281			—			35,288
Unrealized loss on pension plan obligation							—			—			(436	)		(436	)
Tax effect of unrealized loss on pension plan obligation							—			—			129			129
Unrealized loss on captive insurance collateral							—			—			(4,952	)		(4,952	)
Tax effect of unrealized loss on captive insurance collateral							—			—			1,043			1,043
Unrealized gain on interest rate hedge							—			—			3,607			3,607
Tax effect of unrealized gain on interest rate hedge							—			—			(959	)		(959	)
Distributions							(22,076	)		(1,116	)		—			(23,192	)
Retirement of units		(2,954	)				(30,817	)		—			—			(30,817	)
Balance as of September 30, 2022		36,092			326	$	277,177		$	(3,656	)	$	(15,606	)	$	257,915
Net income							31,657			288			—			31,945
Unrealized gain on pension plan obligation							—			—			1,463			1,463
Tax effect of unrealized gain on pension plan obligation							—			—			(405	)		(405	)
Unrealized gain on captive insurance collateral							—			—			1,671			1,671
Tax effect of unrealized gain on captive insurance collateral							—			—			(352	)		(352	)
Unrealized loss on interest rate hedge							—			—			(399	)		(399	)
Tax effect of unrealized loss on interest rate hedge							—			—			105			105
Distributions							(22,497	)		(1,247	)		—			(23,744	)
Retirement of units		(489	)				(4,475	)		—			—			(4,475	)
Balance as of September 30, 2023		35,603			326	$	281,862		$	(4,615	)	$	(13,523	)	$	263,724
Net income							34,912			311			—			35,223
Unrealized gain on pension plan obligation							—			—			1,291			1,291
Tax effect of unrealized gain on pension plan obligation							—			—			(262	)		(262	)
Unrealized gain on captive insurance collateral							—			—			1,849			1,849
Tax effect of unrealized gain on captive insurance collateral							—			—			(390	)		(390	)
Unrealized loss on interest rate hedge							—			—			(1,928	)		(1,928	)
Tax effect of unrealized loss on interest rate hedge							—			—			512			512
Distributions							(23,628	)		(1,410	)		—			(25,038	)
Retirement of units		(1,016	)				(11,088	)		—			—			(11,088	)
Balance as of September 30, 2024		34,587			326	$	282,058		$	(5,714	)	$	(12,451	)	$	263,893
Net income							72,818			677			—			73,495
Unrealized gain on pension plan obligation							—			—			1,468			1,468
Tax effect of unrealized gain on pension plan obligation							—			—			(388	)		(388	)
Unrealized gain on captive insurance collateral							—			—			328			328
Tax effect of unrealized gain on captive insurance collateral							—			—			(69	)		(69	)
Unrealized loss on interest rate hedge							—			—			(319	)		(319	)
Tax effect of unrealized loss on interest rate hedge							—			—			83			83
Distributions							(24,548	)		(1,568	)		—			(26,116	)
Retirement of units		(1,309	)				(15,595	)		—			—			(15,595	)
Balance as of September 30, 2025		33,278			326	$	314,733		$	(6,605	)	$	(11,348	)	$	296,780

See accompanying notes to consolidated financial statements.

F-7

STAR GROUP, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Years Ended September 30,
(in thousands)	~~2024~~2025			~~2023~~2024			~~2022~~2023
Cash flows provided by (used in) operating activities:
Net income	$	3573,~~223~~495		$	3135,~~945~~223		$	3531,~~288~~945
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Increase) decrease in fair value of derivative instruments		19(13,~~018~~390	)		119,~~977~~018			171,~~286~~977
Depreciation and amortization		3236,~~482~~420			3332,~~434~~482			33,~~553~~434
Provision for losses on accounts receivable		86,~~042~~879			98,~~761~~042			59,~~411~~761
Change in deferred taxes		(38,~~989~~527	)		(~~501~~3,989	)		(~~3,181~~501	)
Other income, net (1)		(3,822	)		—			—
Changes in operating assets and liabilities net of amounts related to acquisitions:
Decrease (increase) in receivables		11,271			15,566			(43,463	)
(Increase) decrease in receivables		(14,011	)		11,271			15,566
Decrease (increase) in inventories		18,475			26,994			(21,105	)
(Increase) decrease in inventories		(3,231	)		18,475			26,994
Decrease (increase) in other assets		8,786			13,873			(7,161	)
(Increase) decrease in other assets		(5,264	)		8,786			13,873
(Decrease) increase in accounts payable		(3,926	)		(13,824	)		12,036
Increase (decrease) in accounts payable		1,591			(3,926	)		(13,824	)
(Decrease) increase in customer credit balances		(1519,~~546~~128	)		17(15,~~585~~546	)		517,~~804~~585
Increase (decrease) in other current and long-term liabilities		12,~~142~~884			~~(13~~1,~~152~~142	)		(~~561~~13,152	)
Net cash provided by operating activities		~~110~~70,~~978~~950			~~123~~110,~~658~~978			33123,~~907~~658
Cash flows provided by (used in) investing activities:
Capital expenditures		(1014,~~653~~920	)		(910,~~012~~653	)		(189,~~701~~012	)
Proceeds from sales of fixed assets		~~515~~5,525			~~958~~515			~~815~~958
Proceeds from sale of certain assets		—282			~~2,202~~—			~~184~~2,202
Purchase of investments		(12,~~668~~598	)		(21,~~545~~668	)		(12,~~803~~545	)
Acquisitions		(4988,~~379~~143	)		(1949,~~800~~379	)		(1319,~~121~~800	)
Net cash used in investing activities		(6199,~~185~~854	)		(2861,~~197~~185	)		(3228,~~626~~197	)
Cash flows provided by (used in) financing activities:
Revolving credit facility borrowings		7975,~~596~~359			~~125~~79,~~601~~596			~~200~~125,~~177~~601
Revolving credit facility repayments		(7975,~~831~~364	)		(~~145~~79,~~637~~831	)		(~~188~~145,~~519~~637	)
Proceeds from term loan		~~210,000~~—			—210,000			~~165,000~~—
Loan repayments		(~~148~~21,~~500~~000	)		(16148,500	)		(~~110~~16,500	)
Distributions		(2526,~~038~~116	)		(2325,~~744~~038	)		(23,~~192~~744	)
Unit repurchases		(1115,~~088~~595	)		(411,~~475~~088	)		(304,~~817~~475	)
Customer retainage payments		(~~719~~791	)		(57719	)		(~~1,039~~57	)
Payments of debt issuance costs		(~~2,069~~241	)		(782,069	)		(~~2,538~~78	)
Net cash provided by (used in) financing activities		22,351			(64,890	)		8,572
Net cash (used in) provided by financing activities		(63,748	)		22,351			(64,890	)
Net increase (decrease) in cash, cash equivalents and restricted cash		72(92,~~144~~652	)		3072,~~571~~144			930,~~853~~571
Cash, cash equivalents and restricted cash at beginning of period		45117,~~441~~585			1445,~~870~~441			514,~~017~~870
Cash, cash equivalents and restricted cash at end of period	$	~~117~~24,~~585~~933		$	45117,~~441~~585		$	1445,~~870~~441

(1)

See Note 2 – Summary of Significant Accounting Policies - Other Income, Net.

See accompanying notes to consolidated financial statements.

F-8

STAR GROUP, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1) Organization

Star Group, L.P. (“Star” the “Company,” “we,” “us,” or “our”) is a full service provider specializing in the sale of home heating and air conditioning products and services to residential and commercial home heating oil and propane customers. The Company has one reportable segment for accounting purposes. We also sell diesel fuel, gasoline and home heating oil on a delivery only basis. We believe we are the nation’s largest retail distributor of home heating oil based upon sales volume. Including our propane locations, we serve customers in the more northern and eastern states within the Northeast, Central and Southeast U.S. regions.

The Company is organized as follows:

•

Star is a limited partnership, which at September 30, ~~2024~~2025, had outstanding 3433.63 million Common Units (NYSE: “SGU”), representing a 99.10% limited partner interest in Star, and 0.3 million general partner units, representing a 01.90% general partner interest in Star. Our general partner is Kestrel Heat, LLC, a Delaware limited liability company (“Kestrel Heat” or the “general partner”). The Board of Directors of Kestrel Heat (the “Board”) is appointed by its sole member, Kestrel Energy Partners, LLC, a Delaware limited liability company (“Kestrel”).

•

Star owns 100% of Star Acquisitions, Inc. (“SA”), a Minnesota corporation, that owns 100% of Petro Holdings, Inc. (“Petro”). SA and its subsidiaries are subject to Federal and state corporate income taxes. Star’s operations are conducted through Petro and its subsidiaries. Petro is primarily a Northeast and Mid-Atlantic U.S. region retail distributor of home heating oil and propane that at September 30, ~~2024~~2025 served approximately ~~404~~406,~~600~~400 full service residential and commercial home heating oil and propane customers and 6163,~~700~~200 customers on a delivery only basis. We also sell gasoline and diesel fuel to approximately 2627,~~800~~700 customers. We install, maintain, and repair heating and air conditioning equipment and ~~to a lesser extent~~ provide these services outside our heating oil and propane customer base including approximately 20,~~800~~200 service contracts for natural gas and other heating systems.

•

2) Summary of Significant Accounting Policies

Basis of Presentation

The Consolidated Financial Statements include the accounts of Star Group, L.P. and its subsidiaries. All material intercompany items and transactions have been eliminated in consolidation.

Comprehensive Income

Comprehensive income is comprised of Net income and Other comprehensive income ~~(loss)~~. Other comprehensive income (loss) consists of the unrealized gain ~~(loss)~~ amortization on the Company’s pension plan obligation for its frozen defined benefit pension plan, unrealized gain ~~(loss)~~ on available-for-sale investments, unrealized ~~gain (~~loss) on interest rate hedges and the corresponding tax effects.

Use of Estimates

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

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Revenue Recognition

Refer to Note 3 – Revenue Recognition for revenue recognition accounting policies. Sales of petroleum products are recognized at the time of delivery to the customer and sales of heating and air conditioning equipment are recognized upon completion of installation. Revenue from repairs, maintenance and other services are recognized upon completion of the service. Payments received from customers for equipment service contracts are deferred and amortized into income over the terms of the respective service contracts, on a straight-line basis, which generally do not exceed one year. To the extent that the Company anticipates that future costs for fulfilling its contractual obligations under its service maintenance contracts will exceed the amount of deferred revenue currently attributable to these contracts, the Company recognizes a loss in current period earnings equal to the amount that anticipated future costs exceed related deferred revenues.

Cost of Product

Cost of product includes the cost of home heating oil, diesel, propane, kerosene, gasoline, throughput costs, barging costs, option costs, and realized gains/losses on closed derivative positions for product sales.

Cost of Installations and Services

Cost of installations and services includes equipment and material costs, wages and benefits for equipment technicians, dispatchers and other support personnel, subcontractor expenses, commissions and vehicle related costs.

Delivery and Branch Expenses

Delivery and branch expenses include wages and benefits and department related costs for drivers, dispatchers, garage mechanics, customer service, sales and marketing, compliance, credit and branch accounting, information technology, vehicle and property rental costs, insurance, weather hedge contract costs and recoveries, and operational management and support.

General and Administrative Expenses

General and administrative expenses include property rental costs, wages and benefits (including profit sharing) and department related costs for human resources, finance and corporate accounting, internal audit, administrative support and supply.

Allocation of Net Income

Net income for partners’ capital and statement of operations is allocated to the general partner and the limited partners in accordance with their respective ownership percentages, after giving effect to cash distributions paid to the general partner in excess of its ownership interest, if any.

Net Income per Limited Partner Unit

Income per limited partner unit is computed in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 260-10-05 Earnings Per Share, Master Limited Partnerships (EITF 03-06), by dividing the limited partners’ interest in net income by the weighted average number of limited partner units outstanding. The pro forma nature of the allocation required by this standard provides that in any accounting period where the Company’s aggregate net income exceeds its aggregate distribution for such period, the Company is required to present net income per limited partner unit as if all of the earnings for the periods were distributed, regardless of whether those earnings would actually be distributed during a particular period from an economic or practical perspective. This allocation does not impact the Company’s overall net income or other financial results. However, for periods in which the Company’s aggregate net income exceeds its aggregate distributions for such period, it will have the impact of reducing the earnings per limited partner unit, as the calculation according to this standard results in a theoretical increased allocation of undistributed earnings to the general partner. In accounting periods where aggregate net income does not exceed aggregate distributions for such period, this standard does not have any impact on the Company’s net income per limited partner unit calculation. A separate and independent calculation for each quarter and year-to-date period is performed, in which the Company’s contractual participation rights are taken into account.

F-10

Cash Equivalents, Receivables, Revolving Credit Facility Borrowings, and Accounts Payable

The carrying amount of cash equivalents, receivables, revolving credit facility borrowings, and accounts payable approximates fair value because of the short maturity of these instruments.

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. At September 30, ~~2024~~2025, the $~~117~~24.69 million of cash, cash equivalents, and restricted cash on the consolidated statement of cash flows is comprised of $~~117~~24.37 million of cash and cash equivalents and $0.3 million of restricted cash. At September 30, ~~2023~~2024, the $45117.46 million of cash, cash equivalents, and restricted cash on the consolidated statement of cash flows is comprised of $45117.23 million of cash and cash equivalents and $0.3 million of restricted cash. Restricted cash represents deposits held by our captive insurance company that are required by state insurance regulations to remain in the captive insurance company as cash.

Receivables and Allowance for Doubtful Accounts

Accounts receivables from customers are recorded at the invoiced amounts. Finance charges may be applied to trade receivables that are more than 30 days past due, and are recorded as finance charge income.

The allowance for doubtful accounts is the Company’s estimate of the amount of trade receivables that may not be collectible. The allowance is determined at an aggregate level by grouping accounts based on certain account criteria and its receivable aging. The allowance is based on both quantitative and qualitative factors, including historical loss experience, historical collection patterns, overdue status, aging trends, current and future economic conditions. The Company has an established process to periodically review current and past due trade receivable balances to determine the adequacy of the allowance. No single statistic or measurement determines the adequacy of the allowance. The total allowance reflects management’s estimate of losses inherent in its trade receivables at the balance sheet date. Different assumptions or changes in economic conditions could result in material changes to the allowance for doubtful accounts.

Inventories

Liquid product inventories are stated at the lower of cost and net realizable value computed on the weighted average cost method. All other inventories, representing parts and equipment are stated at the lower of cost or net realizable value using the FIFO method.

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed over the estimated useful lives of the depreciable assets using the straight-line method. Land improvement useful lives are between ten and twenty years, buildings and leasehold improvements useful lives are between five and thirty years, fleet and other equipment useful lives are between one to fifteen years, tanks and equipment lives are between three to ten years, furniture, fixtures and office equipment useful lives are between five to ten years.

Operating Lease Right-of-Use Assets and Related Lease Liabilities

The Company determines if an arrangement is a lease at inception. Lease liabilities are measured at the lease commencement date in an amount equal to the present value of the minimum lease payments over the lease term. Right-of-use (“ROU”) assets are recognized based on the amount of the lease liability adjusted for any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. Renewal options are included in the calculation of the ROU asset and lease liability when it is determined that they are reasonably certain of exercise.

Certain of our lease arrangements contain non-lease components such as common area maintenance. We have elected to account for the lease component and its associated non-lease components as a single lease component for properties and vehicles. Leases with an initial term of 12 months or less are not recognized on our balance sheet. The Company has leases that have variable payments, including lease payments where lease payment increases are based on the percentage change in the Consumer Price Index. For such leases, payment at the lease commencement date is used to

F-11

measure the ROU assets and operating lease liabilities. Changes in the index and other variable payments are expensed as incurred. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our operating leases is not readily determinable. The basis for an incremental borrowing rate is our term loan, market-based yield curves and comparable debt securities.

Captive Insurance Collateral

The captive insurance collateral is held by our captive insurance company in an irrevocable trust as collateral for certain workers’ compensation and automobile liability claims. The collateral is required by a third party insurance carrier that insures per claim amounts above a set deductible. If we did not deposit cash into the trust, the third party carrier would require that we issue an equal amount of letters of credit, which would reduce our availability under the credit agreement. Due to the expected timing of claim payments, the nature of the collateral agreement with the carrier, and our captive insurance company’s source of other operating cash, such as future premiums and earnings on investments, the collateral is not expected to be used to pay obligations within the next twelve months.

Unrealized gains and losses, net of related income taxes, are reported as accumulated other comprehensive gain (loss), except for losses from impairments ~~which~~that are determined to be other-than-temporary. Realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are included in the determination of net income and are included in Interest expense, net, at which time the average cost basis of these securities are adjusted to fair value.

Goodwill and Intangible Assets

Goodwill and intangible assets include goodwill, customer lists, trade names and covenants not to compete.

Goodwill is the excess of cost over the fair value of net assets in the acquisition of a company. Goodwill and intangible assets with indefinite useful lives are not amortized, but instead are annually tested for impairment. The Company has one reporting unit and performs a qualitative, and when necessary quantitative, impairment test on its goodwill annually on August 31st or more frequently if events or circumstances indicate that the value of goodwill might be impaired. We performed qualitative assessments (commonly referred to as Step 0) to evaluate whether it is more-likely-than-not (a likelihood that is more than 50%) that goodwill has been impaired, as a basis to determine whether it is necessary to perform the two-step quantitative impairment test. This qualitative assessment includes a review of factors such as our reporting unit’s market value compared to its carrying value, our short-term and long-term unit price performance, our planned overall business strategy compared to recent financial results, as well as macroeconomic conditions, industry and market considerations, cost factors, and other relevant Company-specific events. Goodwill impairment if any, needs to be determined if the net book value of a reporting unit exceeds its estimated fair value. If goodwill is determined to be impaired, the amount of impairment is measured based on the excess of the net book value of the goodwill over the implied fair value of the goodwill. The Company performed its annual goodwill impairment valuation in each of the periods ended August 31, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, and it was determined based on each year’s analysis that there was no goodwill impairment.

Intangible assets with finite useful lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment whenever changes in circumstances indicate that the assets may be impaired. The assessment for impairment requires estimates of future cash flows related to the intangible asset. To the extent the carrying value of the assets exceeds its future undiscounted cash flows, an impairment loss is recorded based on the fair value of the asset.

We use amortization methods and determine asset values based on our best estimates using reasonable and supportable assumptions and projections. Key assumptions used to determine the value of these intangibles include projections of future customer attrition or growth rates, product margin increases, operating expenses, our cost of capital, and corporate income tax rates. For significant acquisitions we may engage a third party valuation firm to assist in the valuation of intangible assets of that acquisition. We assess the useful lives of intangible assets based on the estimated period over which we will receive benefit from such intangible assets such as historical evidence regarding customer churn rate. In some cases, the estimated useful lives are based on contractual terms. Customer lists are the names and addresses of an acquired company’s customers. Based on historical retention experience, these lists are amortized on a straight-line basis over seven to ten years.

F-12

Trade names are the names of acquired companies. Based on the economic benefit expected and historical retention experience of customers, trade names are amortized on a straight-line basis over three to twenty years.

Business Combinations

We use the acquisition method of accounting. The acquisition method of accounting requires us to use significant estimates and assumptions, including fair value estimates, as of the business combination date, and to refine those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which the amounts recognized for a business combination may be adjusted). Each acquired company’s operating results are included in our consolidated financial statements starting on the date of acquisition. The purchase price is equivalent to the fair value of consideration transferred. Tangible and identifiable intangible assets acquired and liabilities assumed as of the date of acquisition are recorded at the acquisition date fair value. The separately identifiable intangible assets generally are comprised of customer lists, trade names and covenants not to compete. Goodwill is recognized for the excess of the purchase price over the net fair value of assets acquired and liabilities assumed.

Costs that are incurred to complete the business combination such as legal and other professional fees are not considered part of consideration transferred and are charged to general and administrative expense as they are incurred. For any given acquisition, certain contingent consideration may be identified. Estimates of the fair value of liability or asset classified contingent consideration are included under the acquisition method as part of the assets acquired or liabilities assumed. At each reporting date, these estimates are remeasured to fair value, with changes recognized in earnings.

Impairment of Long-lived Assets

The Company reviews intangible assets and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company determines whether the carrying values of such assets are recoverable over their remaining estimated lives through undiscounted future cash flow analysis. If such a review should indicate that the carrying amount of the assets is not recoverable, the Company will reduce the carrying amount of such assets to fair value.

Finance Charge Income

Finance charge income represents late customer payment charges and financing income from extended payment plans associated with installations.

Other Income, Net

Other income, net represents the net gain on the sale of land and a building at a New Jersey operating location, in July 2025, with a carrying value of $1.0 million for net cash proceeds of $4.8 million.

Deferred Charges

Deferred charges represent the costs associated with the issuance of the term loan and revolving credit facility and are amortized over the life of the facility.

Advertising

Advertising costs are expensed as they are incurred. Advertising expenses were $1517.03 million, $1315.50 million, and $13.05 million, in ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively and are recorded in delivery and branch expenses.

Customer Credit Balances

Customer credit balances represent payments received in advance from customers, primarily pursuant to a balanced payment plan (whereby customers pay on a fixed monthly basis), and the payments made have exceeded the charges for liquid product and other services.

F-13

Environmental Costs

Costs associated with managing hazardous substances and pollution are expensed on a current basis. Accruals are made for costs associated with the remediation of environmental pollution when it becomes probable that a liability has been incurred and the amount can be reasonably estimated. Liabilities are recorded in accrued expenses and other current liabilities.

F-13

Self-Insurance Liability

The Company self-insures a number of risks, including a portion of workers’ compensation, auto, general liability and medical liability. Self-insurance liabilities are established and periodically evaluated, based upon expectations as to what the ultimate liability may be for outstanding claims using developmental factors based upon historical claim experience, including frequency, severity, demographic factors and other actuarial assumptions, with support from a qualified third-party actuary and external consultants. Liabilities are recorded in accrued expenses and other current liabilities.

Income Taxes

At a special meeting held October 25, 2017, unitholders voted in favor of proposals to have the Company be treated as a corporation effective November 1, 2017, instead of a partnership, for federal income tax purposes (commonly referred to as a “check-the-box” election) along with amendments to our Partnership Agreement to effect such changes in income tax classification. For corporate subsidiaries of the Company, a consolidated Federal income tax return is filed.

The accompanying financial statements are reported on a fiscal year, however, the Company and its Corporate subsidiaries file Federal and State income tax returns on a calendar year.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of assets and liabilities and their respective tax bases and operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized if, based on the weight of available evidence including historical tax losses, it is more likely than not that some or all of deferred tax assets will not be realized.

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

Our continuing practice is to recognize interest and penalties related to income tax matters as a component of income tax expense.

Sales, Use and Value Added Taxes

Taxes are assessed by various governmental authorities on many different types of transactions. Sales reported for product, installations and services exclude taxes.

Derivatives and Hedging

Derivative instruments are recorded at fair value and included in the consolidated balance sheet as assets or liabilities. The Company has elected not to designate its commodity derivative instruments as hedging instruments but rather as economic hedges whose changes in fair value of the derivative instruments are recognized in our statement of operations in the caption (Increase) decrease in the fair value of derivative instruments. Depending on the risk being economically hedged, realized gains and losses are recorded in cost of product, cost of installations and services, or delivery and branch expenses.

The Company has designated its interest rate swap agreements as cash flow hedging derivatives. To the extent these derivative instruments are effective and the accounting standard’s documentation requirements have been met, changes in fair value are recognized in other comprehensive income (loss) until the underlying hedged item is recognized in earnings.

Fair Value Valuation Approach

The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between

F-14

~~observable~~Fair ~~and~~Value ~~unobservable~~Valuation ~~inputs, which are categorized in one of the following levels (see Note 7 to the consolidated financial statements):~~ Approach

•

Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

•

Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

•

Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

Weather Hedge Contract

To partially mitigate the effect of weather on cash flows, the Company has used weather hedge contracts for a number of years. Weather hedge contracts are recorded in accordance with the intrinsic value method defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-45-15 Derivatives and Hedging, Weather Derivatives (EITF 99-2). The premium paid is included in the caption prepaid expenses and other current assets in the accompanying balance sheets and amortized over the life of the contract, with the intrinsic value method applied at each interim period.

The Company entered into weather hedge contracts for fiscal years ~~2022~~2025, ~~2023~~2024 and ~~2024~~2023. The hedge period runs from November 1 through March 31, taken as a whole. The “Payment Thresholds,” or strikes, are set at various levels and are referenced against degree days for the prior ten year average. Under these contracts, the maximum amount the Company ~~can~~could ~~receive~~have isreceived was $15.0 million for fiscal 2025 and $12.5 million ~~annually~~for fiscal 2024 and 2023. For the contracts applicable to fiscal ~~2022~~2025 and 2023, we were additionally obligated to make an annual payment capped at $5.0 million if degree days exceeded the Payment Threshold. This obligation ~~does~~did not exist under the contract applicable tofor fiscal ~~year~~ 2024.

The temperatures experienced during the hedge period through March 31, ~~2024~~2025 were colder than the strikes in the weather hedge contracts. As a result for fiscal 2025, we increased delivery and branch expense by $3.1 million under those contracts, and paid the amount in full in April 2025. By comparison, the temperatures experienced during the hedge period through March 31, ~~2023~~2024 and March 31, ~~2022~~2023 were warmer than the strikes in the weather hedge contracts. As aIn ~~result for~~ fiscal 2024, ~~2023,~~ and ~~2022~~2023, ~~the~~we ~~Company~~ reduced delivery and branch expenses for the gains realized under those contracts of $7.5 million, and $12.5 million ~~and $1.1 million~~ respectively. The amounts were received in full in April 2024, ~~April 2023~~ and April ~~2022~~2023, respectively.

Pension plan

The Company has one frozen defined benefit pension plan (“the Plan”). The Company has no post-retirement benefit plans. The Company estimates the rate of return on plan assets and the discount rate used to estimate the present value of future benefit obligations in determining its annual pension and other postretirement benefit cost. The Company believes that the assumptions utilized in recording its obligations under its plan are reasonable based on its experience and market conditions.

Recently Adopted Accounting Pronouncements

In October 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires accounting for contract assets and liabilities from contracts with customers in a business combination to be accounted for in accordance with ASC No. 606. The Company adopted the standard effective October 1, 2023. The adoption did not have a material impact on its consolidated financial statements and related disclosures.

Recently Issued Accounting Pronouncements

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily

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through enhanced disclosures about significant segment expenses. The disclosure requirements included in ASU No. 2023-07 are required for all public entities, including entities with a single reportable segment. ~~The~~We ~~standard~~have isadopted ~~effective~~this standard for our fiscal ~~years~~year ~~beginning~~2025 ~~after~~annual ~~December~~financial ~~15,~~statements ~~2023. Early~~and ~~adoption~~interim isfinancial ~~permitted.~~statements ~~The~~thereafter ~~guidance~~and ishave ~~required to be~~ applied onthis astandard ~~retrospective~~retrospectively ~~basis. The~~for ~~Company~~all isprior ~~currently~~periods ~~evaluating~~presented ~~the~~in ~~impact of~~ the ~~standard~~financial onstatements. ~~its~~(See ~~consolidated~~Note ~~financial~~20 ~~statement~~– ~~disclosures~~Segment Reporting).

InRecently ~~December~~Issued ~~2023,~~Accounting ~~the~~Pronouncements FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to income tax disclosures, which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The standard is effective for fiscal years beginning after December 15, 2024. Adoption is either with a prospective method or a fully retrospective method of transition. Early adoption is permitted. The Company has not determined the timing of adoption and is currently evaluating the impact of the new standard on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to income tax disclosures, which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The standard is effective for fiscal years beginning after December 15, 2024. Adoption is either with a prospective method or a fully retrospective method of transition. Early adoption is permitted. The Company will adopt the standard beginning fiscal 2026 and is currently evaluating the impact of the new standard on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring disclosure in the notes to the financial statements for specified information about certain costs and expenses. The standard is effective for fiscal years beginning after December 15, 2026, with early adoption and retrospective application permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for all entities to simplify the estimation of expected credit losses on current accounts receivable and current contract assets arising from revenue contracts under Topic 606. The standard is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the guidance on capitalizing costs for internal-use software by eliminating predefined development stages and introducing a principles-based approach focused on probable completion and use. The standard is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.

3) Revenue Recognition

The following disaggregates our revenue by major sources for the years ended September 30, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023:

	Years Ended September 30,
(in thousands)	~~2024~~2025		~~2023~~2024		~~2022~~2023
Petroleum Products:
Home heating oil and propane	$	1,~~081~~119,~~985~~777	$	1,~~202~~081,~~194~~985	$	1,~~170~~202,~~552~~194
Motor fuel and other petroleum products		~~366~~317,~~807~~824		~~448~~366,~~547~~807		~~527~~448,~~729~~547
Total petroleum products		1,~~448~~437,~~792~~601		1,~~650~~448,~~741~~792		1,~~698~~650,~~281~~741
Installations and Services:
Equipment installations		~~123~~135,~~493~~149		~~114~~123,~~756~~493		~~121~~114,~~023~~756
Equipment maintenance service contracts		~~129~~136,~~478~~042		~~126~~129,~~887~~478		~~121~~126,~~623~~887
Billable call services		6475,~~336~~626		6064,~~478~~336		6560,~~631~~478
Total installations and services		~~317~~346,~~307~~817		~~302~~317,~~121~~307		~~308~~302,~~277~~121
Total Sales	$	1,~~766~~784,~~099~~418	$	1,~~952~~766,~~862~~099	$	21,~~006~~952,~~558~~862

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Performance Obligations

Petroleum product revenues consist of home heating oil and propane as well as diesel fuel and gasoline. Revenues from petroleum products are recognized at the time of delivery to the customer when control is passed from the Company to the customer. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring control of the petroleum products. Approximately 9593% of our full service residential and commercial home heating oil and propane customers automatically receive deliveries based on prevailing weather conditions. We offer several pricing alternatives to our residential home heating oil customers, including a variable price (market based) option and a price-protected option, the latter of which either sets the maximum price or a fixed price that a customer will pay.

Equipment maintenance service contracts primarily cover heating, air conditioning, and natural gas equipment. We generally do not sell equipment maintenance service contracts to heating oil customers that do not take delivery of product from us. The service contract period of our equipment maintenance service contracts is generally one year or less. Revenues from equipment maintenance service contracts are recognized into income over the terms of the respective service contracts, on a straight-line basis. Our obligation to perform service is consistent through the duration of the contracts, and the straight-line basis of recognition is a faithful depiction of the transfer of our services. To the extent that the Company anticipates that future costs for fulfilling its contractual obligations under its equipment service contracts will exceed the amount of deferred revenue currently attributable to these contracts, the Company recognizes a loss in current period earnings equal to the amount that anticipated future costs exceed related deferred revenues.

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Revenue from billable call services (repairs, maintenance and other services) and equipment installations (heating, air conditioning, and natural gas equipment) are recognized at the time that the work is performed.

Our standard payment terms are generally 30 days. Sales reported for product, installations and services exclude taxes assessed by various governmental authorities.

Contract Costs

We have elected to recognize incremental costs of obtaining a contract, other than new residential product and equipment maintenance service contracts, as an expense when incurred when the amortization period of the asset that we otherwise would have recognized is one year or less. We recognize an asset for incremental commission expenses paid to sales personnel in conjunction with obtaining new residential customer product and equipment maintenance service contracts. We defer these costs only when we have determined the commissions are, in fact, incremental and would not have been incurred absent the customer contract. Costs to obtain a contract are amortized and recorded ratably as delivery and branch expenses over the period representing the transfer of goods or services to which the assets relate. Costs to obtain new residential product and equipment maintenance service contracts are amortized as expense over the estimated customer relationship period of approximately five years. Deferred contract costs are classified as current or non-current within “Prepaid expenses and other current assets” and “Deferred charges and other assets, net,” respectively. At September 30, ~~2024~~2025 the amount of deferred contract costs included in “Prepaid expenses and other current assets” and “Deferred charges and other assets, net” was $2.98 million and $4.52 million, respectively. At September 30, ~~2023~~2024 the amount of deferred contract costs included in “Prepaid expenses and other current assets” and “Deferred charges and other assets, net” was $32.39 million and $5.4.5 million, respectively. For the years ended September 30, ~~2024~~2025 and September 30, ~~2023~~2024 we recognized expense of $3.63 million and $3.86 million, respectively, associated with the amortization of deferred contract costs within delivery and branch expenses in the Consolidated Statement of Operations. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the petroleum products and services related to the cost, less the expected costs related directly to providing those petroleum products and services that have not yet been recognized as expenses. There have been no impairment charges recognized for the twelve months ended September 30, ~~2024~~2025, September 30, ~~2023~~2024 and September 30, ~~2022~~2023.

Allocation of Transaction Price to Separate Performance Obligations

Our contracts with customers often include distinct performance obligations to transfer products and perform equipment maintenance services to a customer that are accounted for separately. Judgment is required to determine the stand-alone selling price for each distinct performance obligation for the purpose of allocating the transaction price to separate performance obligations. We determine the stand-alone selling price using information that may include market conditions and other observable inputs and typically have more than one stand-alone selling price for petroleum products ~~and equipment maintenance services due to the stratification of those products and services by geography and customer characteristics.~~

Contract Liability Balances

The Company has contract liabilities for advanced payments received from customers for future oil deliveries (primarily amounts received from customers on “smart pay” budget payment plans in advance of oil deliveries) and obligations to service customers with equipment maintenance service contracts. Approximately 31% of our residential customers take advantage of our “smart pay” budget payment plan under which their estimated annual oil and propane deliveries and service contract billings are paid for in a series of equal monthly installments. Our “smart pay” budget payment plans are annual and generally begin outside of the heating season. We generally have received advanced amounts from customers on “smart pay” budget payment plans prior to the heating season, which are reduced as oil deliveries are made. For customers that are not on “smart pay” budget payment plans, we generally receive the full contract amount for equipment service contracts with customers at the outset of the contracts. Contract liabilities are recognized straight-line over the service contract period, generally one-year or less. As of September 30, 2024 and September 30, 2023 the Company had contract liabilities of $167.2 million and $170.3 million, respectively. During the year ended September 30, 2024 the Company recognized $156.8 million of revenue that was included in the September 30, 2023 contract liability balance. During the year ended September 30, 2023 the Company recognized $139.9 million of revenue that was included in the September 30, 2022 contract liability balance.

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and equipment maintenance services due to the stratification of those products and services by geography and customer characteristics.

Contract Liability Balances

The Company has contract liabilities for advanced payments received from customers for future home heating oil and propane deliveries (primarily amounts received from customers on “smart pay” budget payment plans in advance of oil deliveries) and obligations to service customers with equipment maintenance service contracts. Approximately 25% of our residential home heating oil and propane customers take advantage of our “smart pay” budget payment plan under which their estimated annual oil and propane deliveries and service contract billings are paid for in a series of equal monthly installments. Our “smart pay” budget payment plans are annual and generally begin outside of the heating season. We generally have received advanced amounts from customers on “smart pay” budget payment plans prior to the heating season, which are reduced as oil deliveries are made. For customers that are not on “smart pay” budget payment plans, we generally receive the full contract amount for equipment service contracts with customers at the outset of the contracts. Contract liabilities are recognized straight-line over the service contract period, generally one-year or less. As of September 30, 2025 and September 30, 2024 the Company had contract liabilities of $149.7 million and $167.2 million, respectively. During the year ended September 30, 2025 the Company recognized $154.7 million of revenue that was included in the September 30, 2024 contract liability balance. During the year ended September 30, 2024 the Company recognized $156.8 million of revenue that was included in the September 30, 2023 contract liability balance.

Receivables and Allowance for Doubtful Accounts

Changes in the allowance for credit losses are as follows:

(in thousands)	Credit Loss Allowance
Balance at September 30, 2023	$	8,375
Current period provision		8,042
Write-offs, net and other		(9,983	)
Balance as of September 30, 2024	$	6,434
Current period provision		6,879
Write-offs, net and other		(6,117	)
Balance as of September 30, 2025	$	7,196

4) Quarterly Distribution of Available Cash

The Company’s Partnership Agreement provides that beginning October 1, 2008, the minimum quarterly distributions on the common units will start accruing at the rate of $0.0675 per quarter ($0.27 on an annual basis). In general, the Company intends to distribute to its partners on a quarterly basis, all of its available cash, if any, in the manner described below. “Available cash” generally means, for any of its fiscal quarters, all cash on hand at the end of that quarter, less the amount of cash reserves that are necessary or appropriate in the reasonable discretion of the general partners to:

•

provide for the proper conduct of the Company’s business including acquisitions and debt payments;

•

comply with applicable law, any of its debt instruments or other agreements; or

•

provide funds for distributions to the common unitholders during the next four quarters, in some circumstances.

Available cash will generally be distributed as follows:

•

first, 100% to the common units, pro rata, until the Company distributes to each common unit the minimum quarterly distribution of $0.0675;

•

second, 100% to the common units, pro rata, until the Company distributes to each common unit any arrearages in payment of the minimum quarterly distribution on the common units for prior quarters;

•

third, 100% to the general partner units, pro rata, until the Company distributes to each general partner unit the minimum quarterly distribution of $0.0675;

•

fourth, 90% to the common units, pro rata, and 10% to the general partner units, pro rata (subject to the Management Incentive Plan), until the Company distributes to each common unit the first target distribution of $0.1125; and

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•

thereafter, 80% to the common units, pro rata, and 20% to the general partner units, pro rata.

The company is obligated to meet certain financial covenants under the credit agreement. The Company must maintain excess availability of not less than the greater of ~~$40~~(i) ~~million and~~ 15% of the Line Cap (lesser of the aggregate revolving ~~credit~~commitment ~~facility borrowings~~ and the borrowing base) which was $25.7 million at September 30, 2025 and (ii) $40 million on a historical pro forma and forward-looking basis, and a fixed charge coverage ratio of 1.15 measured as of the date of distribution in order to make any distributions to unitholders. (See Note 13—Long-Term Debt and Bank Facility Borrowings)

For fiscal ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, cash distributions declared per common unit were $0.~~670~~715, $0.~~630~~670, and $0.~~590~~630, respectively.

For fiscal ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, $1.35 million, $1.23 million, and $1.02 million, respectively, of incentive distributions were paid to the general partner, exclusive of amounts paid subject to the Management Incentive Plan.

5) Common Unit Repurchase Plans and Retirement

In July 2012, the Board adopted a plan to repurchase certain of the Company’s Common Units (the “Repurchase Plan”). Through May 2023, the Company had repurchased approximately 20.5 million Common Units under the Repurchase Plan. In May 2023, the Board authorized an increase of the number of Common Units that remained available for the Company to repurchase from 1.1 million to a total of 2.6 million, of which, 2.3 million were available for repurchase in open market transactions and 0.3 million were available for repurchase in privately-negotiated transactions. There is no guarantee of the number of units that will be purchased under the Repurchase Plan and the Company may discontinue purchases at any time. The Repurchase Plan does not have a time limit. The Board may also approve additional purchases of units from time to time in private transactions. The Company’s repurchase activities take into account SEC safe harbor rules and guidance for issuer repurchases. All of the Common Units purchased under the Repurchase Plan will be retired.

F Under the credit agreement dated September 27, 2024, in order to repurchase Common Units we must maintain Availability (as defined in the credit agreement) of not less than the greater of (i) 15% of the Line Cap (lesser of the aggregate revolving commitment and the borrowing base) which was $25.7 million at September 30, 2025 and (ii) $40 million on a historical pro forma and forward-18looking basis, and a fixed charge coverage ratio of not less than 1.15 measured as of the date of repurchase or distribution. (See Note 13—Long-Term Debt and Bank Facility Borrowings). The following table shows repurchases under the Repurchase Plan.

guarantee of the number of units that will be purchased under the Repurchase Plan and the Company may discontinue purchases at any time. The Repurchase Plan does not have a time limit. The Board may also approve additional purchases of units from time to time in private transactions. The Company’s repurchase activities take into account SEC safe harbor rules and guidance for issuer repurchases. All of the Common Units purchased under the Repurchase Plan will be retired.


(in thousands, except per unit amounts)
Period	Total Number of Units Purchased		Average Price Paid per Unit (a)		Total Number of Units Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Units that May Yet Be Purchased
Fiscal year 2012 to 2024 total		26,438	$	8.90		21,550		1,552
First quarter fiscal year 2025 total		13	$	11.20		13		1,539
Second quarter fiscal year 2025 total		6	$	11.24		6		1,533
Third quarter fiscal year 2025 total		817	$	12.01		117		1,416	(b)
July 2025		144	$	11.87		144		1,272
August 2025		172	$	11.74		172		1,100
September 2025		157	$	11.73		157		943
Fourth quarter fiscal year 2025 total		473	$	11.78		473		943
Fiscal year 2025 total		1,309	$	11.92		609		943
October 2025		234	$	11.87		234		709	(c)
November 2025		67	$	11.83		67		642	(d)

(a)

Under the credit agreement dated September 27, 2024, in order to repurchase Common Units we must maintain Availability (as defined in the credit agreement) of not less than the greater of (i) 15% of the Line Cap (lesser of the revolving credit facility borrowings and the borrowing base) and (ii) $40 million on a historical pro forma and forward-looking basis, and a fixed charge coverage ratio of not less than 1.15 measured as of the date of repurchase or distribution. (See Note 13—Long-Term Debt and Bank Facility Borrowings). The following table shows repurchases under the Repurchase Plan.

(in thousands, except per unit amounts)
Period	Total Numberof UnitsPurchased		Average PricePaid per Unit(a)		Total Numberof UnitsPurchased asPart ofPubliclyAnnouncedPlans orPrograms		Maximum Numberof Units that MayYet Be Purchased
Fiscal year 2012 to 2023 total		25,422	$	8.82		20,534		2,568
First quarter fiscal year 2024 total		13	$	11.27		13		2,555
Second quarter fiscal year 2024 total		218	$	10.92		218		2,337
Third quarter fiscal year 2024 total		598	$	10.86		598		1,739

Filing Compare · STAR GROUP, L.P.