Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Jan. 31, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SGU | |
Entity Registrant Name | STAR GAS PARTNERS LP | |
Entity Central Index Key | 1002590 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 57,282,352 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $28,106 | $48,999 | ||
Receivables, net of allowance of $8,390 and $9,220, respectively | 181,405 | 123,800 | ||
Inventories | 67,873 | 59,240 | ||
Fair asset value of derivative instruments | 3,897 | 2,342 | ||
Current deferred tax assets, net | 38,150 | 38,141 | ||
Prepaid expenses and other current assets | 27,999 | 23,943 | ||
Total current assets | 347,430 | 296,465 | ||
Property and equipment, net | 66,029 | 67,419 | ||
Goodwill | 209,331 | 209,331 | ||
Intangibles, net | 98,443 | 100,783 | ||
Deferred charges and other assets, net | 12,271 | 11,109 | ||
Total assets | 733,504 | 685,107 | ||
Current liabilities | ||||
Accounts payable | 41,616 | 21,644 | ||
Fair liability value of derivative instruments | 22,891 | 12,358 | ||
Accrued expenses and other current liabilities | 103,740 | 102,934 | ||
Unearned service contract revenue | 55,259 | 43,901 | ||
Customer credit balances | 66,732 | 72,595 | ||
Total current liabilities | 290,238 | 253,432 | ||
Long-term debt | 124,602 | [1] | 124,572 | [1] |
Long-term deferred tax liabilities, net | 25,650 | 25,181 | ||
Other long-term liabilities | 9,678 | 8,677 | ||
Partners' capital | ||||
Common unitholders | 306,731 | 296,968 | ||
General partner | -103 | -105 | ||
Accumulated other comprehensive loss, net of taxes | -23,292 | -23,618 | ||
Total partners' capital | 283,336 | 273,245 | ||
Total liabilities and partners' capital | $733,504 | $685,107 | ||
[1] | The 8.875% Senior Notes were originally issued in November 2010 in a private placement offering pursuant to Rule 144A and Regulation S under the Securities Act of 1933, and in February 2011, were exchanged for substantially identical public notes registered with the Securities and Exchange Commission. These public notes mature in December 2017 and accrue interest at an annual rate of 8.875% requiring semi-annual interest payments on June 1 and December 1 of each year. The discount on these notes was $0.4 million at December 31, 2014. Under the terms of the indenture, these notes permit restricted payments after passing particular financial tests. The Partnership can incur debt up to $100 million for acquisitions and can also pay restricted payments of $22.0 million without passing certain financial tests. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Receivables, allowance | $8,390 | $9,220 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Sales: | ||||
Product | $435,012 | $463,387 | ||
Installations and services | 64,205 | 57,223 | ||
Total sales | 499,217 | 520,610 | ||
Cost and expenses: | ||||
Cost of product | 309,249 | 358,577 | ||
Cost of installations and services | 60,683 | 53,443 | ||
(Increase) decrease in the fair value of derivative instruments | 8,290 | -5,458 | ||
Delivery and branch expenses | 78,834 | 68,400 | ||
Depreciation and amortization expenses | 6,158 | 4,359 | ||
General and administrative expenses | 6,056 | 5,406 | ||
Finance charge income | -826 | -1,004 | ||
Operating income | 30,773 | 36,887 | ||
Interest expense, net | -3,460 | -3,623 | ||
Amortization of debt issuance costs | -400 | -421 | ||
Income before income taxes | 26,913 | 32,843 | ||
Income tax expense | 11,359 | 13,555 | ||
Net income | 15,554 | 19,288 | ||
General Partner's interest in net income | 88 | 109 | ||
Limited Partners' interest in net income | $15,466 | $19,179 | ||
Basic and diluted income per Limited Partner Unit | $0.24 | [1] | $0.29 | [1] |
Weighted average number of Limited Partner units outstanding: | ||||
Basic and Diluted | 57,294 | 57,511 | ||
[1] | See Note 12 Earnings Per Limited Partner Unit. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net income | $15,554 | $19,288 | ||
Other comprehensive income: | ||||
Unrealized gain on pension plan obligation | 556 | [1] | 528 | [1] |
Tax effect of unrealized gain on pension plan | -230 | -216 | ||
Total other comprehensive income | 326 | 312 | ||
Total comprehensive income | $15,880 | $19,600 | ||
[1] | Amount is included within general and administrative expenses. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Partners' Capital (USD $) | Total | Common Stock | General Partner | Accumulated Other Comprehensive Income (Loss) | ||
In Thousands | ||||||
Beginning Balance at Sep. 30, 2014 | $273,245 | $296,968 | ($105) | ($23,618) | ||
Beginning Balance, unit at Sep. 30, 2014 | 57,405 | 326 | ||||
Net income | 15,554 | 15,466 | 88 | |||
Unrealized gain on pension plan obligation | 556 | [1] | 556 | |||
Tax effect of unrealized gain on pension plan | -230 | -230 | ||||
Distributions | -5,098 | -5,012 | -86 | |||
Retirement of units, shares | [2] | -123 | ||||
Retirement of units | [2] | -691 | -691 | |||
Ending Balance at Dec. 31, 2014 | $283,336 | $306,731 | ($103) | ($23,292) | ||
Ending Balance, Unit at Dec. 31, 2014 | 57,282 | 326 | ||||
[1] | Amount is included within general and administrative expenses. | |||||
[2] | See Note 3 - Common Unit Repurchase and Retirement. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows provided by (used in) operating activities: | ||
Net income | $15,554 | $19,288 |
Adjustment to reconcile net income to net cash provided by (used in) operating activities: | ||
(Increase) decrease in the fair value of derivative instruments | 8,290 | -5,458 |
Depreciation and amortization | 6,558 | 4,779 |
Provision for losses on accounts receivable | 236 | 796 |
Change in deferred taxes | 230 | 3,332 |
Changes in operating assets and liabilities: | ||
Increase in receivables | -58,241 | -107,604 |
Increase in inventories | -8,633 | -16,140 |
Increase in other assets | -5,565 | -1,977 |
Increase in accounts payable | 20,261 | 21,253 |
Decrease in customer credit balances | -5,862 | -20,119 |
Increase in other current and long-term liabilities | 13,752 | 8,711 |
Net cash used in operating activities | -13,420 | -93,139 |
Cash flows provided by (used in) investing activities: | ||
Capital expenditures | -1,772 | -2,992 |
Proceeds from sales of fixed assets | 88 | 71 |
Net cash used in investing activities | -1,684 | -2,921 |
Cash flows provided by (used in) financing activities: | ||
Revolving credit facility borrowings | 100,348 | |
Distributions | -5,098 | -4,811 |
Unit repurchases | -691 | -1,300 |
Net cash provided by (used in) financing activities | -5,789 | 94,237 |
Net decrease in cash and cash equivalents | -20,893 | -1,823 |
Cash and cash equivalents at beginning of period | 48,999 | 85,057 |
Cash and cash equivalents at end of period | $28,106 | $83,234 |
Partnership_Organization
Partnership Organization | 3 Months Ended | |||
Dec. 31, 2014 | ||||
Partnership Organization | 1) Partnership Organization | |||
Star Gas Partners, L.P. (“Star Gas Partners,” the “Partnership,” “we,” “us,” or “our”) is a full service provider specializing in the sale of home heating products and services to residential and commercial customers. The Partnership also services and sells heating and air conditioning equipment to its home heating oil and propane customers and to a lesser extent, provides these offerings to customers outside of our home heating oil and propane customer base. In certain of our marketing areas, we provide home security and plumbing services primarily to our home heating oil and propane customer base. We also sell diesel fuel, gasoline and home heating oil on a delivery only basis. All of these product and services are offered through our home heating oil and propane locations. The Partnership has one reportable segment for accounting purposes. We are the nation’s largest retail distributor of home heating oil, based upon sales volume, operating throughout the Northeast and Mid-Atlantic. | ||||
The Partnership is organized as follows: | ||||
• | The Partnership is a master limited partnership, which at December 31, 2014, had outstanding 57.3 million Common Units (NYSE: “SGU”), representing 99.43% limited partner interest in Star Gas Partners, and 0.3 million general partner units, representing 0.57% general partner interest in Star Gas Partners. The general partner of the Partnership 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”). | |||
• | The Partnership 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. The Partnership’s operations are conducted through Petro and its subsidiaries. Petro is a Northeast and Mid-Atlantic region retail distributor of home heating oil and propane that at December 31, 2014, served approximately 448,000 full-service residential and commercial home heating oil and propane customers. Petro also sold diesel fuel, gasoline and home heating oil to approximately 73,000 customers on a delivery only basis. In addition, Petro installed, maintained, and repaired heating and air conditioning equipment for its customers and provided ancillary home services, including home security and plumbing, to approximately 23,000 customers. | |||
• | Star Gas Finance Company (“SGFC”) is a 100% owned subsidiary of the Partnership. SGFC serves as the co-issuer, jointly and severally with the Partnership, of its $125 million principal amount of 8.875% Senior Notes outstanding at December 31, 2014, due 2017. SGFC and the Partnership are dependent on distributions, including inter-company interest payments from its subsidiaries, to service the debt issued by SGFC and the Partnership. The distributions from these subsidiaries are not guaranteed and are subject to certain loan restrictions. SGFC has nominal assets and conducts no business operations (See Note 8—Long-Term Debt and Bank Facility Borrowings). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies | 2) Summary of Significant Accounting Policies |
Basis of Presentation | |
The Consolidated Financial Statements include the accounts of Star Gas Partners, L.P. and its subsidiaries. All material inter-company items and transactions have been eliminated in consolidation. | |
The financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair statement of financial condition and results for the interim periods. Due to the seasonal nature of the Partnership’s business, the results of operations and cash flows for the three month period ended December 31, 2014, and December 31, 2013, are not necessarily indicative of the results to be expected for the full year. | |
These interim financial statements of the Partnership have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission and should be read in conjunction with the financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended September 30, 2014. | |
Comprehensive Income (Loss) | |
Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of the unrealized gain (loss) amortization on the Partnership’s pension plan obligation for its two frozen defined benefit pension plans and the corresponding tax effect. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles (“GAAP”) when it becomes effective. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2018, with early adoption prohibited. The standard permits the use of either the retrospective or cumulative effect transition method. The Partnership is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Partnership has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Common_Unit_Repurchase_and_Ret
Common Unit Repurchase and Retirement | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Common Unit Repurchase and Retirement | 3) Common Unit Repurchase and Retirement | ||||||||||||
In July 2012, the Board of Directors (“the Board”) of the general partner of the Partnership authorized the repurchase of up to 3.0 million of the Partnership’s Common Units (“Plan III”). In July 2013, the Board authorized the repurchase of an additional 1.9 million Common Units under Plan III. The authorized Common Unit repurchases may be made from time-to-time in the open market, in privately negotiated transactions or in such other manner deemed appropriate by management. There is no guarantee of the exact number of units that will be purchased under the program and the Partnership may discontinue purchases at any time. The program does not have a time limit. The Board may also approve additional purchases of units from time to time in private transactions. The Partnership’s repurchase activities take into account SEC safe harbor rules and guidance for issuer repurchases. All of the Common Units purchased in the repurchase program will be retired. | |||||||||||||
Under the Partnership’s second amended and restated credit agreement dated January 14, 2014, in order to repurchase Common Units we must maintain Availability (as defined in the second amended and restated credit facility agreement) of $45 million, 15.0% of the facility size of $300 million (assuming the non-seasonal aggregate commitment is outstanding) 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. The Partnership was in compliance with this covenant for all unit repurchases made during the three months ended December 31, 2014. | |||||||||||||
The following table shows repurchases under Plan III. | |||||||||||||
(in thousands, except per unit amounts) | Total Number of | Average Price | Maximum Number | ||||||||||
Period | Units Purchased | Paid per Unit | of Units that May | ||||||||||
(a) | (b) | Yet Be Purchased | |||||||||||
Plan III - Number of units authorized | 4,894 | ||||||||||||
Private transaction - Number of units authorized | 1,150 | ||||||||||||
6,044 | |||||||||||||
Plan III - Fiscal years 2012 to 2014 total ( c) | 3,619 | $ | 4.69 | 2,425 | |||||||||
Plan III - October 2014 | 122 | $ | 5.64 | 2,303 | |||||||||
Plan III - November 2014 | — | $ | — | 2,303 | |||||||||
Plan III - December 2014 | 1 | $ | 5.72 | 2,302 | |||||||||
Plan III - First quarter fiscal year 2015 total | 123 | $ | 5.64 | 2,302 | |||||||||
(a) | Units were repurchased as part of a publicly announced program, except as noted in a private transaction. | ||||||||||||
(b) | Amounts include repurchase costs. | ||||||||||||
(c) | Includes 1.45 million common units acquired in a private transaction. |
Derivatives_and_HedgingFair_Va
Derivatives and Hedging-Fair Value Measurements and Accounting for the Offsetting of Certain Contracts | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Derivatives and Hedging-Fair Value Measurements and Accounting for the Offsetting of Certain Contracts | 4) Derivatives and Hedging—Fair Value Measurements and Accounting for the Offsetting of Certain Contracts | ||||||||||||||||||||||||
The Partnership uses derivative instruments such as futures, options and swap agreements in order to mitigate exposure to market risk associated with the purchase of home heating oil for price-protected customers, physical inventory on hand, inventory in transit, priced purchase commitments and internal fuel usage. The Partnership has elected not to designate its derivative instruments as hedging derivatives, but rather as economic hedges whose change in fair value is recognized in its statement of operations in the line item (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. | |||||||||||||||||||||||||
To hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers as of December 31, 2014, the Partnership had bought 12.4 million gallons of swap contracts, 5.6 million gallons of call options, 7.7 million gallons of put options and 94.1 million net gallons of synthetic calls, all in future months to match anticipated sales. To hedge the inter-month differentials for its price-protected customers, its physical inventory on hand and inventory in transit, the Partnership, as of December 31, 2014, had bought 29.6 million gallons of future contracts and sold 55.1 million gallons of future contracts. To hedge a majority of its internal fuel usage for fiscal 2015, the Partnership as of December 31, 2014, had bought 2.9 million gallons of future swap contracts. | |||||||||||||||||||||||||
To hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers as of December 31, 2013, the Partnership held 1.6 million gallons of physical inventory and had bought 10.0 million gallons of swap contracts, 4.5 million gallons of call options, 6.9 million gallons of put options and 86.0 million net gallons of synthetic calls, all in future months to match anticipated sales. To hedge the inter-month differentials for its price-protected customers, its physical inventory on hand and inventory in transit, the Partnership, as of December 31, 2013, had bought 57.6 million gallons of future contracts, had sold 76.5 million gallons of future contracts and had sold 16.3 million gallons of future swap contracts. In addition to the previously described hedging instruments, the Partnership as of December 31, 2013, had bought corresponding long and short 38.6 million net gallons of swap contracts and bought 3.9 million gallons of spread contracts (simultaneous long and short positions) to lock-in the differential between high sulfur home heating oil and ultra low sulfur diesel, which is similar in composition to ultra low sulfur home heating oil. To hedge a majority of its internal fuel usage for fiscal 2014, the Partnership as of December 31, 2013, had bought 2.4 million gallons of future swap contracts. | |||||||||||||||||||||||||
The Partnership’s derivative instruments are with the following counterparties: Bank of America, N.A., Bank of Montreal, Cargill, Inc., Citibank, N.A., JPMorgan Chase Bank, N.A., Key Bank, N.A., Regions Financial Corporation, Societe Generale, and Wells Fargo Bank, N.A. The Partnership assesses counterparty credit risk and considers it to be low. We maintain master netting arrangements that allow for the non-conditional offsetting of amounts receivable and payable with counterparties to help manage our risks and record derivative positions on a net basis. The Partnership generally does not receive cash collateral from its counterparties and does not restrict the use of cash collateral it maintains at counterparties. At December 31, 2014, the aggregate cash posted as collateral in the normal course of business at counterparties was $2.3 million. Positions with counterparties who are also parties to our revolving credit facility are collateralized under that facility. As of December 31, 2014, $28.7 million of hedge positions and payable amounts were secured under the credit facility. | |||||||||||||||||||||||||
FASB ASC 820-10 Fair Value Measurements and Disclosures, established a three-tier fair value hierarchy, which classified the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Partnership’s Level 1 derivative assets and liabilities represent the fair value of commodity contracts used in its hedging activities that are identical and traded in active markets. The Partnership’s Level 2 derivative assets and liabilities represent the fair value of commodity contracts used in its hedging activities that are valued using either directly or indirectly observable inputs, whose nature, risk and class are similar. No significant transfers of assets or liabilities have been made into and out of the Level 1 or Level 2 tiers. All derivative instruments were non-trading positions and were either a Level 1 or Level 2 instrument. The Partnership had no Level 3 derivative instruments. The fair market value of our Level 1 and Level 2 derivative assets and liabilities are calculated by our counter-parties and are independently validated by the Partnership. The Partnership’s calculations are, for Level 1 derivative assets and liabilities, based on the published New York Mercantile Exchange (“NYMEX”) market prices for the commodity contracts open at the end of the period. For Level 2 derivative assets and liabilities the calculations performed by the Partnership are based on a combination of the NYMEX published market prices and other inputs, including such factors as present value, volatility and duration. | |||||||||||||||||||||||||
The Partnership had no assets or liabilities that are measured at fair value on a nonrecurring basis subsequent to their initial recognition. The Partnership’s financial assets and liabilities measured at fair value on a recurring basis are listed on the following table. | |||||||||||||||||||||||||
(In thousands) | Fair Value Measurements at Reporting Date Using: | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging | Balance Sheet Location | Total | Quoted Prices in | Significant Other | |||||||||||||||||||||
Instruments Under FASB ASC 815-10 | Active Markets for | Observable Inputs | |||||||||||||||||||||||
Identical Assets Level 1 | Level 2 | ||||||||||||||||||||||||
Asset Derivatives at December 31, 2014 | |||||||||||||||||||||||||
Commodity contracts | Fair asset and fair liability value of derivative instruments | $ | 96,546 | $ | 20,505 | $ | 76,041 | ||||||||||||||||||
Commodity contracts | Long-term derivative assets included in the deferred charges and other assets, net balance | 1,276 | 473 | 803 | |||||||||||||||||||||
Commodity contract assets at December 31, 2014 | $ | 97,822 | $ | 20,978 | $ | 76,844 | |||||||||||||||||||
Liability Derivatives at December 31, 2014 | |||||||||||||||||||||||||
Commodity contracts | Fair liability and fair asset value of derivative instruments | $ | (115,539 | ) | $ | (16,608 | ) | $ | (98,931 | ) | |||||||||||||||
Commodity contracts | Long-term derivative liabilities included in the other long-term liabilities balance | (719 | ) | (66 | ) | (653 | ) | ||||||||||||||||||
Commodity contract liabilities at December 31, 2014 | $ | (116,258 | ) | $ | (16,674 | ) | $ | (99,584 | ) | ||||||||||||||||
Asset Derivatives at September 30, 2014 | |||||||||||||||||||||||||
Commodity contracts | Fair asset and fair liability value of derivative instruments | $ | 26,263 | $ | 2,328 | $ | 23,935 | ||||||||||||||||||
Commodity contract assets at September 30, 2014 | $ | 26,263 | $ | 2,328 | $ | 23,935 | |||||||||||||||||||
Liability Derivatives at September 30, 2014 | |||||||||||||||||||||||||
Commodity contracts | Fair liability and fair asset value of derivative instruments | $ | (36,279 | ) | $ | — | $ | (36,279 | ) | ||||||||||||||||
Commodity contract liabilities at September 30, 2014 | $ | (36,279 | ) | $ | — | $ | (36,279 | ) | |||||||||||||||||
The Partnership’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table. | |||||||||||||||||||||||||
(In thousands) | Gross Amounts Not Offset in the | ||||||||||||||||||||||||
Statement of Financial Position | |||||||||||||||||||||||||
Offsetting of Financial Assets (Liabilities) | Gross | Gross | Net Assets | Financial | Cash | Net Amount | |||||||||||||||||||
and Derivative Assets (Liabilities) | Assets | Liabilities | (Liabilities) | Instruments | Collateral | ||||||||||||||||||||
Recognized | Offset in the | Presented in | Received | ||||||||||||||||||||||
Statement | the | ||||||||||||||||||||||||
of Financial | Statement | ||||||||||||||||||||||||
Position | of Financial | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Fair asset value of derivative instruments | $ | 20,505 | $ | (16,608 | ) | $ | 3,897 | $ | — | $ | — | $ | 3,897 | ||||||||||||
Long-term derivative assets included in deferred charges and other assets, net | 936 | (288 | ) | 648 | — | — | 648 | ||||||||||||||||||
Fair liability value of derivative instruments | 76,041 | (98,932 | ) | (22,891 | ) | — | — | (22,891 | ) | ||||||||||||||||
Long-term derivative liabilities included in other long-term liabilities, net | 340 | (430 | ) | (90 | ) | (90 | ) | ||||||||||||||||||
Total at December 31, 2014 | $ | 97,822 | $ | (116,258 | ) | $ | (18,436 | ) | $ | — | $ | — | $ | (18,436 | ) | ||||||||||
Fair asset value of derivative instruments | $ | 2,342 | $ | — | $ | 2,342 | $ | — | $ | — | $ | 2,342 | |||||||||||||
Fair liability value of derivative instruments | 23,921 | (36,279 | ) | (12,358 | ) | — | — | (12,358 | ) | ||||||||||||||||
Total at September 30, 2014 | $ | 26,263 | $ | (36,279 | ) | $ | (10,016 | ) | $ | — | $ | — | $ | (10,016 | ) | ||||||||||
(In thousands) | The Effect of Derivative Instruments on the Statement of Operations | ||||||||||||||||||||||||
Amount of (Gain) or Loss Recognized | |||||||||||||||||||||||||
Derivatives Not Designated as | Location of (Gain) or Loss | Three Months Ended | Three Months Ended | ||||||||||||||||||||||
Hedging Instruments Under | Recognized in Income on Derivative | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
FASB ASC 815-10 | |||||||||||||||||||||||||
Closed Positions | |||||||||||||||||||||||||
Commodity contracts | Cost of product (a) | $ | (6,805 | ) | $ | 5,311 | |||||||||||||||||||
Commodity contracts | Cost of installations and service (a) | $ | 486 | $ | (8 | ) | |||||||||||||||||||
Commodity contracts | Delivery and branch expenses (a) | $ | 474 | $ | (39 | ) | |||||||||||||||||||
(a) Represents realized closed positions and includes the cost of options as they expire. | |||||||||||||||||||||||||
Open Positions | |||||||||||||||||||||||||
Commodity contracts | (Increase) / decrease in the fair value of derivative instruments | $ | 8,290 | $ | (5,458 | ) |
Inventories
Inventories | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories | 5) Inventories | ||||||||
The Partnership’s product inventories are stated at the lower of cost or market computed on the weighted average cost method. All other inventories, representing parts and equipment are stated at the lower of cost or market using the FIFO method. The components of inventory were as follows (in thousands): | |||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Product | $ | 48,338 | $ | 39,802 | |||||
Parts and equipment | 19,535 | 19,438 | |||||||
Total inventory | $ | 67,873 | $ | 59,240 | |||||
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment | 6) 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 (in thousands): | |||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Property and equipment | $ | 171,259 | $ | 170,307 | |||||
Less: accumulated depreciation | 105,230 | 102,888 | |||||||
Property and equipment, net | $ | 66,029 | $ | 67,419 | |||||
Intangibles_net
Intangibles, net | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Intangibles, net | 7) Intangibles, net | ||||||||||||||||||||||||
Intangibles, net | |||||||||||||||||||||||||
The gross carrying amount and accumulated amortization of intangible assets subject to amortization are as follows (in thousands): | |||||||||||||||||||||||||
December 31, 2014 | September 30, 2014 | ||||||||||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Customer lists | $ | 305,685 | $ | 227,226 | $ | 78,459 | $ | 304,699 | $ | 224,215 | $ | 80,484 | |||||||||||||
Trade names and other intangibles | 24,070 | 4,086 | 19,984 | 24,070 | 3,771 | 20,299 | |||||||||||||||||||
Total | $ | 329,755 | $ | 231,312 | $ | 98,443 | $ | 328,769 | $ | 227,986 | $ | 100,783 | |||||||||||||
Amortization expense for intangible assets was $3.3 million for the three months ended December 31, 2014, compared to $2.3 million for the three months ended December 31, 2013. |
LongTerm_Debt_and_Bank_Facilit
Long-Term Debt and Bank Facility Borrowings | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Long-Term Debt and Bank Facility Borrowings | 8) Long-Term Debt and Bank Facility Borrowings | ||||||||||||||||
The Partnership’s debt is as follows | December 31, 2014 | September 30, 2014 | |||||||||||||||
(in thousands): | Carrying | Fair Value (a) | Carrying | Fair Value (a) | |||||||||||||
Amount | Amount | ||||||||||||||||
8.875% Senior Notes (b) | $ | 124,602 | $ | 128,125 | $ | 124,572 | $ | 130,313 | |||||||||
Revolving Credit Facility Borrowings (c) | — | — | — | — | |||||||||||||
Total debt | $ | 124,602 | $ | 128,125 | $ | 124,572 | $ | 130,313 | |||||||||
Total long-term portion of debt | $ | 124,602 | $ | 128,125 | $ | 124,572 | $ | 130,313 | |||||||||
(a) | The Partnership’s fair value estimates of long-term debt are made at a specific point in time, based on Level 2 inputs. | ||||||||||||||||
(b) | The 8.875% Senior Notes were originally issued in November 2010 in a private placement offering pursuant to Rule 144A and Regulation S under the Securities Act of 1933, and in February 2011, were exchanged for substantially identical public notes registered with the Securities and Exchange Commission. These public notes mature in December 2017 and accrue interest at an annual rate of 8.875% requiring semi-annual interest payments on June 1 and December 1 of each year. The discount on these notes was $0.4 million at December 31, 2014. Under the terms of the indenture, these notes permit restricted payments after passing particular financial tests. The Partnership can incur debt up to $100 million for acquisitions and can also pay restricted payments of $22.0 million without passing certain financial tests. | ||||||||||||||||
(c) | In January 2014, the Partnership entered into a second amended and restated asset based revolving credit facility agreement with a bank syndicate comprised of fifteen participants, which replaced the then existing revolving credit facility. | ||||||||||||||||
The second amended and restated revolving credit facility provides the Partnership with the ability to borrow up to $300 million ($450 million during the heating season of December through April of each year) for working capital purposes (subject to certain borrowing base limitations and coverage ratios), including the issuance of up to $100 million in letters of credit, and extends the maturity date to June 2017, or January 2019 if the Partnership has met the conditions of the facility termination date as defined in the agreement and as discussed further below. The Partnership can increase the facility size by $100 million without the consent of the bank group. However, the bank group is not obligated to fund the $100 million increase. If the bank group elects not to fund the increase, the Partnership can add additional lenders to the group, with the consent of the Agent, which shall not be unreasonably withheld. Obligations under the second amended and restated credit facility are guaranteed by the Partnership and its subsidiaries and are secured by liens on substantially all of the Partnership’s assets including accounts receivable, inventory, general intangibles, real property, fixtures and equipment. | |||||||||||||||||
All outstanding amounts owed under the second amended and restated credit facility become due and payable on the facility termination date of June 1, 2017. If the Partnership has repaid, prepaid or otherwise defeased at least $100 million of our 8.875% Senior Notes and Availability is equal to or greater than the aggregate amount required to repay the remaining outstanding 8.875% Senior Notes (“Payoff Amount”), then the facility termination date is January 14, 2019. However, after June 1, 2017, in the event that Availability is less than the Payoff Amount, the facility termination date shall be three days following such date. Notwithstanding this, all outstanding amounts are subject to acceleration upon the occurrence of events of default which the Partnership considers usual and customary for an agreement of this type, including failure to make payments under the second amended and restated credit facility, non-performance of covenants and obligations or insolvency or bankruptcy (as described in the second amended and restated credit facility). | |||||||||||||||||
The interest rate on the second amended and restated credit facility is LIBOR plus (i) 1.75% (if Availability, as defined in the agreement is greater than or equal to $150 million), or (ii) 2.00% (if Availability is greater than $75 million but less than $150 million), or (iii) 2.25% (if Availability is less than or equal to $75 million). The Commitment Fee on the unused portion of the facility is 0.30% per annum. | |||||||||||||||||
Under the second amended and restated credit facility, the Partnership is obligated to meet certain financial covenants, including the requirement to maintain at all times either Availability (borrowing base less amounts borrowed and letters of credit issued) of 12.5% of the facility size, or a fixed charge coverage ratio (as defined in the revolving credit facility agreement) of not less than 1.1, which is calculated based upon Adjusted EBITDA for the trailing twelve months. In order to make acquisitions, the Partnership must maintain Availability of $40 million on a historical pro forma and forward-looking basis. In addition, the Partnership must maintain Availability of $45 million, 15.0% of the facility size of $300 million (assuming the non-seasonal aggregate commitment is outstanding), on a historical and forward-looking basis, and a fixed charge coverage ratio of not less than 1.15 in order to pay any distributions to unitholders or repurchase Common Units. No inter-company dividends or distributions can be made (including those needed to pay interest or principle on our 8.875% Senior Notes), except to the Partnership or a wholly owned subsidiary of the Partnership, if the immediately preceding covenants have not been met. Certain restrictions are also imposed by the agreement, including restrictions on the Partnership’s ability to incur additional indebtedness, to pay distributions to unitholders, to pay inter-company dividends or distributions, make investments, grant liens, sell assets, make acquisitions and engage in certain other activities. | |||||||||||||||||
At December 31, 2014, no amount was outstanding under the revolving credit facility, $28.7 million of hedge positions were secured, and $55.3 million of letters of credit were issued. At September 30, 2014, no amount was outstanding under the revolving credit facility, $14.9 million of hedge positions were secured, and $52.8 million of letters of credit were issued. | |||||||||||||||||
At December 31, 2014, availability was $181.7 million and the Partnership was in compliance with the fixed charge coverage ratio. At September 30, 2014, availability was $149.6 million and the Partnership was in compliance with the fixed charge coverage ratio. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes | 9) Income Taxes | ||||||||
Since Star Gas Partners is organized as a master limited partnership, it is not subject to tax at its entity level for Federal and state income tax purposes. However, Star Gas Partners’ income is derived from its corporate subsidiaries, and these entities do incur Federal and state income taxes relating to their respective corporate subsidiaries, which are reflected in these financial statements. For the corporate subsidiaries of Star Gas Partners, a consolidated Federal income tax return is filed. | |||||||||
Income and losses of Star Gas Partners are allocated directly to the individual partners. Even though Star Gas Partners will generate non-qualifying Master Limited Partnership income through its corporate subsidiaries, cash received by Star Gas Partners from its corporate subsidiaries is generally included in the determination of qualified Master Limited Partnership income. All or a portion of such cash could be taxable as dividend income or as a capital gain to the individual partners. This could be the case even if Star Gas Partners used the cash received from its corporate subsidiaries for purposes such as the repurchase of Common Units rather than distributions to its individual partners. | |||||||||
The accompanying financial statements are reported on a fiscal year, however, Star Gas Partners and its corporate subsidiaries file Federal and state income tax returns on a calendar year. | |||||||||
The current and deferred income tax expenses for the three months ended December 31, 2014, and 2013 are as follows: | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Income before income taxes | $ | 26,913 | $ | 32,843 | |||||
Current tax expense | $ | 11,129 | $ | 10,223 | |||||
Deferred tax expense | 230 | 3,332 | |||||||
Total tax expense | $ | 11,359 | $ | 13,555 | |||||
As of January 1, 2015, Star Acquisitions, Inc., a wholly-owned subsidiary of the Partnership, had an estimated Federal net operating loss carry forward (“NOLs”) of approximately $6.1 million. The Federal NOLs, which will expire between 2018 and 2024, are generally available to offset any future taxable income but are also subject to annual limitations of between $1.0 million and $2.2 million. | |||||||||
FASB ASC 740-10-05-6 Income Taxes, Uncertain Tax Position, provides financial statement accounting guidance for uncertainty in income taxes and tax positions taken or expected to be taken in a tax return. At December 31, 2014, we had unrecognized income tax benefits totaling $0.9 million including related accrued interest and penalties of $0.03 million. These unrecognized tax benefits are primarily the result of state tax uncertainties. If recognized, these tax benefits would be recorded as a benefit to the effective tax rate. | |||||||||
We believe that the total liability for unrecognized tax benefits will not materially change during the next 12 months ending December 31, 2015. Our continuing practice is to recognize interest related to income tax matters as a component of income tax expense. We file U.S. Federal income tax returns and various state and local returns. A number of years may elapse before an uncertain tax position is audited and finally resolved. For our Federal income tax returns we have four tax years subject to examination. In our major state tax jurisdictions of New York, Connecticut, Pennsylvania and New Jersey, we have four, four, four and five tax years, respectively, that are subject to examination. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, based on our assessment of many factors including past experience and interpretation of tax law, we believe that our provision for income taxes reflect the most probable outcome. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. |
Supplemental_Disclosure_of_Cas
Supplemental Disclosure of Cash Flow Information | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Supplemental Disclosure of Cash Flow Information | 10) Supplemental Disclosure of Cash Flow Information | ||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Cash paid during the period for: | |||||||||
Income taxes, net | $ | 11,116 | $ | 6,740 | |||||
Interest | $ | 6,233 | $ | 6,208 | |||||
Non-cash investing activities: | |||||||||
Acquisition of NYC heating oil customer list | $ | 886 | $ | — | |||||
Non-cash financing activities: | |||||||||
Increase in interest expense—amortization of debt discount on 8.875% Senior Notes | $ | 30 | $ | 27 |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies | 11) Commitments and Contingencies |
At any given time the Partnership is a defendant in various legal proceedings and litigation arising in the ordinary course of business. The Partnership records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. The Partnership maintains insurance policies with insurers in amounts and with coverages and deductibles we believe are reasonable and prudent. However, the Partnership cannot assure that this insurance will be adequate to protect it from all material expenses related to potential future claims. In the opinion of management the Partnership is not a party to any litigation which, individually or in the aggregate, could reasonably be expected to have a material adverse effect on the Partnership’s results of operations, financial position or liquidity. |
Earnings_Per_Limited_Partner_U
Earnings Per Limited Partner Unit | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Limited Partner Unit | 12) Earnings Per Limited Partner Unit | ||||||||
Income per limited partner unit is computed in accordance with FASB 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 Partnership’s aggregate net income exceeds its aggregate distribution for such period, the Partnership 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 Partnership’s overall net income or other financial results. However, for periods in which the Partnership’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 Partnership’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 Partnership’s contractual participation rights are taken into account. | |||||||||
The following presents the net income allocation and per unit data using this method for the periods presented: | |||||||||
Basic and Diluted Earnings Per Limited Partner: | Three Months Ended | ||||||||
December 31, | |||||||||
(in thousands, except per unit data) | 2014 | 2013 | |||||||
Net income | $ | 15,554 | $ | 19,288 | |||||
Less General Partner’s interest in net income | 88 | 109 | |||||||
Net income available to limited partners | 15,466 | 19,179 | |||||||
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260- 10-45-60 | 1,930 | 2,665 | |||||||
Limited Partner’s interest in net incomeunder FASB ASC 260-10-45-60 | $ | 13,536 | $ | 16,514 | |||||
Per unit data: | |||||||||
Basic and diluted net income available to limited partners | $ | 0 .27 | $ | 0.33 | |||||
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260- 10-45-60 | 0 .03 | 0.04 | |||||||
Limited Partner’s interest in net income under FASB ASC 260- 10-45-60 | $ | 0.24 | $ | 0.29 | |||||
Weighted average number of Limited Partner units outstanding | 57,294 | 57,511 | |||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2014 | |
Subsequent Events | 13) Subsequent Events |
Quarterly Distribution Declared | |
In January 2015, we declared a quarterly distribution of $0.0875 per unit, or $0.35 per unit on an annualized basis, on all Common Units with respect to the first quarter of fiscal 2015, payable on February 10, 2015, to holders of record on January 30, 2015. In accordance with our Partnership Agreement, the amount of distributions in excess of the minimum quarterly distribution of $0.0675, are distributed 90% to Common Unit holders and 10% to the General Partner unit holders (until certain distribution levels are met), subject to the management incentive compensation plan. As a result, $5.0 million will be paid to the Common Unit holders, $0.1 million to the General Partner unit holders (including $0.06 million of incentive distribution as provided in our Partnership Agreement) and $0.06 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. | |
Acquisition | |
In January 2015, the Partnership purchased for cash the customer lists and assets of a propane dealership for approximately $1.1 million, including net working capital credits of $0.1 million. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2014 | |
Basis of Presentation | Basis of Presentation |
The Consolidated Financial Statements include the accounts of Star Gas Partners, L.P. and its subsidiaries. All material inter-company items and transactions have been eliminated in consolidation. | |
The financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair statement of financial condition and results for the interim periods. Due to the seasonal nature of the Partnership’s business, the results of operations and cash flows for the three month period ended December 31, 2014, and December 31, 2013, are not necessarily indicative of the results to be expected for the full year. | |
These interim financial statements of the Partnership have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission and should be read in conjunction with the financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended September 30, 2014. | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) |
Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of the unrealized gain (loss) amortization on the Partnership’s pension plan obligation for its two frozen defined benefit pension plans and the corresponding tax effect. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles (“GAAP”) when it becomes effective. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2018, with early adoption prohibited. The standard permits the use of either the retrospective or cumulative effect transition method. The Partnership is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Partnership has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Common_Unit_Repurchase_and_Ret1
Common Unit Repurchase and Retirement (Tables) | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Partnership's Repurchase Activities | The following table shows repurchases under Plan III. | ||||||||||||
(in thousands, except per unit amounts) | Total Number of | Average Price | Maximum Number | ||||||||||
Period | Units Purchased | Paid per Unit | of Units that May | ||||||||||
(a) | (b) | Yet Be Purchased | |||||||||||
Plan III - Number of units authorized | 4,894 | ||||||||||||
Private transaction - Number of units authorized | 1,150 | ||||||||||||
6,044 | |||||||||||||
Plan III - Fiscal years 2012 to 2014 total ( c) | 3,619 | $ | 4.69 | 2,425 | |||||||||
Plan III - October 2014 | 122 | $ | 5.64 | 2,303 | |||||||||
Plan III - November 2014 | — | $ | — | 2,303 | |||||||||
Plan III - December 2014 | 1 | $ | 5.72 | 2,302 | |||||||||
Plan III - First quarter fiscal year 2015 total | 123 | $ | 5.64 | 2,302 | |||||||||
(a) | Units were repurchased as part of a publicly announced program, except as noted in a private transaction. | ||||||||||||
(b) | Amounts include repurchase costs. | ||||||||||||
(c) | Includes 1.45 million common units acquired in a private transaction. |
Derivatives_and_HedgingFair_Va1
Derivatives and Hedging-Fair Value Measurements and Accounting for the Offsetting of Certain Contracts (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Partnership's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The Partnership had no assets or liabilities that are measured at fair value on a nonrecurring basis subsequent to their initial recognition. The Partnership’s financial assets and liabilities measured at fair value on a recurring basis are listed on the following table. | ||||||||||||||||||||||||
(In thousands) | Fair Value Measurements at Reporting Date Using: | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging | Balance Sheet Location | Total | Quoted Prices in | Significant Other | |||||||||||||||||||||
Instruments Under FASB ASC 815-10 | Active Markets for | Observable Inputs | |||||||||||||||||||||||
Identical Assets Level 1 | Level 2 | ||||||||||||||||||||||||
Asset Derivatives at December 31, 2014 | |||||||||||||||||||||||||
Commodity contracts | Fair asset and fair liability value of derivative instruments | $ | 96,546 | $ | 20,505 | $ | 76,041 | ||||||||||||||||||
Commodity contracts | Long-term derivative assets included in the deferred charges and other assets, net balance | 1,276 | 473 | 803 | |||||||||||||||||||||
Commodity contract assets at December 31, 2014 | $ | 97,822 | $ | 20,978 | $ | 76,844 | |||||||||||||||||||
Liability Derivatives at December 31, 2014 | |||||||||||||||||||||||||
Commodity contracts | Fair liability and fair asset value of derivative instruments | $ | (115,539 | ) | $ | (16,608 | ) | $ | (98,931 | ) | |||||||||||||||
Commodity contracts | Long-term derivative liabilities included in the other long-term liabilities balance | (719 | ) | (66 | ) | (653 | ) | ||||||||||||||||||
Commodity contract liabilities at December 31, 2014 | $ | (116,258 | ) | $ | (16,674 | ) | $ | (99,584 | ) | ||||||||||||||||
Asset Derivatives at September 30, 2014 | |||||||||||||||||||||||||
Commodity contracts | Fair asset and fair liability value of derivative instruments | $ | 26,263 | $ | 2,328 | $ | 23,935 | ||||||||||||||||||
Commodity contract assets at September 30, 2014 | $ | 26,263 | $ | 2,328 | $ | 23,935 | |||||||||||||||||||
Liability Derivatives at September 30, 2014 | |||||||||||||||||||||||||
Commodity contracts | Fair liability and fair asset value of derivative instruments | $ | (36,279 | ) | $ | — | $ | (36,279 | ) | ||||||||||||||||
Commodity contract liabilities at September 30, 2014 | $ | (36,279 | ) | $ | — | $ | (36,279 | ) | |||||||||||||||||
(In thousands) | The Effect of Derivative Instruments on the Statement of Operations | ||||||||||||||||||||||||
Amount of (Gain) or Loss Recognized | |||||||||||||||||||||||||
Derivatives Not Designated as | Location of (Gain) or Loss | Three Months Ended | Three Months Ended | ||||||||||||||||||||||
Hedging Instruments Under | Recognized in Income on Derivative | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
FASB ASC 815-10 | |||||||||||||||||||||||||
Closed Positions | |||||||||||||||||||||||||
Commodity contracts | Cost of product (a) | $ | (6,805 | ) | $ | 5,311 | |||||||||||||||||||
Commodity contracts | Cost of installations and service (a) | $ | 486 | $ | (8 | ) | |||||||||||||||||||
Commodity contracts | Delivery and branch expenses (a) | $ | 474 | $ | (39 | ) | |||||||||||||||||||
(a) Represents realized closed positions and includes the cost of options as they expire. | |||||||||||||||||||||||||
Open Positions | |||||||||||||||||||||||||
Commodity contracts | (Increase) / decrease in the fair value of derivative instruments | $ | 8,290 | $ | (5,458 | ) | |||||||||||||||||||
Partnership's Derivatives Assets (Liabilities) Offset by Counterparty | The Partnership’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table. | ||||||||||||||||||||||||
(In thousands) | Gross Amounts Not Offset in the | ||||||||||||||||||||||||
Statement of Financial Position | |||||||||||||||||||||||||
Offsetting of Financial Assets (Liabilities) | Gross | Gross | Net Assets | Financial | Cash | Net Amount | |||||||||||||||||||
and Derivative Assets (Liabilities) | Assets | Liabilities | (Liabilities) | Instruments | Collateral | ||||||||||||||||||||
Recognized | Offset in the | Presented in | Received | ||||||||||||||||||||||
Statement | the | ||||||||||||||||||||||||
of Financial | Statement | ||||||||||||||||||||||||
Position | of Financial | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Fair asset value of derivative instruments | $ | 20,505 | $ | (16,608 | ) | $ | 3,897 | $ | — | $ | — | $ | 3,897 | ||||||||||||
Long-term derivative assets included in deferred charges and other assets, net | 936 | (288 | ) | 648 | — | — | 648 | ||||||||||||||||||
Fair liability value of derivative instruments | 76,041 | (98,932 | ) | (22,891 | ) | — | — | (22,891 | ) | ||||||||||||||||
Long-term derivative liabilities included in other long-term liabilities, net | 340 | (430 | ) | (90 | ) | (90 | ) | ||||||||||||||||||
Total at December 31, 2014 | $ | 97,822 | $ | (116,258 | ) | $ | (18,436 | ) | $ | — | $ | — | $ | (18,436 | ) | ||||||||||
Fair asset value of derivative instruments | $ | 2,342 | $ | — | $ | 2,342 | $ | — | $ | — | $ | 2,342 | |||||||||||||
Fair liability value of derivative instruments | 23,921 | (36,279 | ) | (12,358 | ) | — | — | (12,358 | ) | ||||||||||||||||
Total at September 30, 2014 | $ | 26,263 | $ | (36,279 | ) | $ | (10,016 | ) | $ | — | $ | — | $ | (10,016 | ) | ||||||||||
Partnership's Derivatives Assets (Liabilities) Offset by Counterparty | The Partnership’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table. | ||||||||||||||||||||||||
(In thousands) | Gross Amounts Not Offset in the | ||||||||||||||||||||||||
Statement of Financial Position | |||||||||||||||||||||||||
Offsetting of Financial Assets (Liabilities) | Gross | Gross | Net Assets | Financial | Cash | Net Amount | |||||||||||||||||||
and Derivative Assets (Liabilities) | Assets | Liabilities | (Liabilities) | Instruments | Collateral | ||||||||||||||||||||
Recognized | Offset in the | Presented in | Received | ||||||||||||||||||||||
Statement | the | ||||||||||||||||||||||||
of Financial | Statement | ||||||||||||||||||||||||
Position | of Financial | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Fair asset value of derivative instruments | $ | 20,505 | $ | (16,608 | ) | $ | 3,897 | $ | — | $ | — | $ | 3,897 | ||||||||||||
Long-term derivative assets included in deferred charges and other assets, net | 936 | (288 | ) | 648 | — | — | 648 | ||||||||||||||||||
Fair liability value of derivative instruments | 76,041 | (98,932 | ) | (22,891 | ) | — | — | (22,891 | ) | ||||||||||||||||
Long-term derivative liabilities included in other long-term liabilities, net | 340 | (430 | ) | (90 | ) | (90 | ) | ||||||||||||||||||
Total at December 31, 2014 | $ | 97,822 | $ | (116,258 | ) | $ | (18,436 | ) | $ | — | $ | — | $ | (18,436 | ) | ||||||||||
Fair asset value of derivative instruments | $ | 2,342 | $ | — | $ | 2,342 | $ | — | $ | — | $ | 2,342 | |||||||||||||
Fair liability value of derivative instruments | 23,921 | (36,279 | ) | (12,358 | ) | — | — | (12,358 | ) | ||||||||||||||||
Total at September 30, 2014 | $ | 26,263 | $ | (36,279 | ) | $ | (10,016 | ) | $ | — | $ | — | $ | (10,016 | ) | ||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Components of Inventory | The components of inventory were as follows (in thousands): | ||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Product | $ | 48,338 | $ | 39,802 | |||||
Parts and equipment | 19,535 | 19,438 | |||||||
Total inventory | $ | 67,873 | $ | 59,240 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment | Depreciation is computed over the estimated useful lives of the depreciable assets using the straight-line method (in thousands): | ||||||||
December 31, 2014 | September 30, 2014 | ||||||||
Property and equipment | $ | 171,259 | $ | 170,307 | |||||
Less: accumulated depreciation | 105,230 | 102,888 | |||||||
Property and equipment, net | $ | 66,029 | $ | 67,419 | |||||
Intangibles_net_Tables
Intangibles, net (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Gross Carrying Amount and Accumulated Amortization of Intangible Assets Subject to Amortization | The gross carrying amount and accumulated amortization of intangible assets subject to amortization are as follows (in thousands): | ||||||||||||||||||||||||
December 31, 2014 | September 30, 2014 | ||||||||||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Customer lists | $ | 305,685 | $ | 227,226 | $ | 78,459 | $ | 304,699 | $ | 224,215 | $ | 80,484 | |||||||||||||
Trade names and other intangibles | 24,070 | 4,086 | 19,984 | 24,070 | 3,771 | 20,299 | |||||||||||||||||||
Total | $ | 329,755 | $ | 231,312 | $ | 98,443 | $ | 328,769 | $ | 227,986 | $ | 100,783 | |||||||||||||
LongTerm_Debt_and_Bank_Facilit1
Long-Term Debt and Bank Facility Borrowings (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Partnership's Debt | |||||||||||||||||
The Partnership’s debt is as follows | December 31, 2014 | September 30, 2014 | |||||||||||||||
(in thousands): | Carrying | Fair Value (a) | Carrying | Fair Value (a) | |||||||||||||
Amount | Amount | ||||||||||||||||
8.875% Senior Notes (b) | $ | 124,602 | $ | 128,125 | $ | 124,572 | $ | 130,313 | |||||||||
Revolving Credit Facility Borrowings (c) | — | — | — | — | |||||||||||||
Total debt | $ | 124,602 | $ | 128,125 | $ | 124,572 | $ | 130,313 | |||||||||
Total long-term portion of debt | $ | 124,602 | $ | 128,125 | $ | 124,572 | $ | 130,313 | |||||||||
(a) | The Partnership’s fair value estimates of long-term debt are made at a specific point in time, based on Level 2 inputs. | ||||||||||||||||
(b) | The 8.875% Senior Notes were originally issued in November 2010 in a private placement offering pursuant to Rule 144A and Regulation S under the Securities Act of 1933, and in February 2011, were exchanged for substantially identical public notes registered with the Securities and Exchange Commission. These public notes mature in December 2017 and accrue interest at an annual rate of 8.875% requiring semi-annual interest payments on June 1 and December 1 of each year. The discount on these notes was $0.4 million at December 31, 2014. Under the terms of the indenture, these notes permit restricted payments after passing particular financial tests. The Partnership can incur debt up to $100 million for acquisitions and can also pay restricted payments of $22.0 million without passing certain financial tests. | ||||||||||||||||
(c) | In January 2014, the Partnership entered into a second amended and restated asset based revolving credit facility agreement with a bank syndicate comprised of fifteen participants, which replaced the then existing revolving credit facility. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Current and Deferred Income Tax Expenses | The current and deferred income tax expenses for the three months ended December 31, 2014, and 2013 are as follows: | ||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Income before income taxes | $ | 26,913 | $ | 32,843 | |||||
Current tax expense | $ | 11,129 | $ | 10,223 | |||||
Deferred tax expense | 230 | 3,332 | |||||||
Total tax expense | $ | 11,359 | $ | 13,555 | |||||
Supplemental_Disclosure_of_Cas1
Supplemental Disclosure of Cash Flow Information (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Cash paid during the period for: | |||||||||
Income taxes, net | $ | 11,116 | $ | 6,740 | |||||
Interest | $ | 6,233 | $ | 6,208 | |||||
Non-cash investing activities: | |||||||||
Acquisition of NYC heating oil customer list | $ | 886 | $ | — | |||||
Non-cash financing activities: | |||||||||
Increase in interest expense—amortization of debt discount on 8.875% Senior Notes | $ | 30 | $ | 27 |
Earnings_Per_Limited_Partner_U1
Earnings Per Limited Partner Unit (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Net Income Allocation and Per Unit Data | The following presents the net income allocation and per unit data using this method for the periods presented: | ||||||||
Basic and Diluted Earnings Per Limited Partner: | Three Months Ended | ||||||||
December 31, | |||||||||
(in thousands, except per unit data) | 2014 | 2013 | |||||||
Net income | $ | 15,554 | $ | 19,288 | |||||
Less General Partner’s interest in net income | 88 | 109 | |||||||
Net income available to limited partners | 15,466 | 19,179 | |||||||
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260- 10-45-60 | 1,930 | 2,665 | |||||||
Limited Partner’s interest in net incomeunder FASB ASC 260-10-45-60 | $ | 13,536 | $ | 16,514 | |||||
Per unit data: | |||||||||
Basic and diluted net income available to limited partners | $ | 0 .27 | $ | 0.33 | |||||
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260- 10-45-60 | 0 .03 | 0.04 | |||||||
Limited Partner’s interest in net income under FASB ASC 260- 10-45-60 | $ | 0.24 | $ | 0.29 | |||||
Weighted average number of Limited Partner units outstanding | 57,294 | 57,511 | |||||||
Partnership_Organization_Addit
Partnership Organization - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Limited Partners' Capital Account [Line Items] | |||
Percentage of limited partner interest | 99.43% | ||
Percentage of general partner interest | 0.57% | ||
8.875% Senior Notes | |||
Limited Partners' Capital Account [Line Items] | |||
Outstanding senior notes | 125 | ||
Interest on senior notes | 8.88% | 8.88% | |
Maturity of public notes due | 1-Dec-17 | ||
Star Acquisitions, Inc | |||
Limited Partners' Capital Account [Line Items] | |||
Ownership interest of partnership | 100.00% | ||
Petro Holdings, Inc | |||
Limited Partners' Capital Account [Line Items] | |||
Ownership interest of Star Acquisitions Inc. | 100.00% | ||
Number of full-service residential and commercial home heating oil and propane customers served | 448,000 | ||
Number of customers to whom only home heating oil, gasoline and diesel fuel were sold on a delivery only basis | 73,000 | ||
Number of customers to whom ancillary services were provided | 23,000 | ||
Star Gas Finance Company | |||
Limited Partners' Capital Account [Line Items] | |||
Ownership interest of partnership | 100.00% | ||
Common Stock | |||
Limited Partners' Capital Account [Line Items] | |||
Number of outstanding units | 57,282 | 57,405 | |
General Partner | |||
Limited Partners' Capital Account [Line Items] | |||
Number of outstanding units | 326 | 326 |
Common_Unit_Repurchase_and_Ret2
Common Unit Repurchase and Retirement - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Jan. 14, 2014 | Dec. 31, 2014 | Jul. 31, 2012 | Jul. 31, 2013 |
Capital Unit [Line Items] | ||||
Partnership's common units authorized for repurchase | 6,044 | |||
Second Amendment | ||||
Capital Unit [Line Items] | ||||
Availability required to repurchase common units | $45 | $45 | ||
Percentage of the maximum facility size on a historical proforma and forward-looking basis | 15.00% | 15.00% | ||
Non Seasonal maximum borrowing capacity under revolving credit facility | $300 | $300 | ||
Minimum fixed charge coverage ratio for distributions to unit holders or to repurchase common units | 115.00% | 115.00% | ||
Initial Common Units Authorized Plan III Common Units Repurchase Program | ||||
Capital Unit [Line Items] | ||||
Partnership's common units authorized for repurchase | 3,000 | |||
Additional Common Units Authorized Plan III Common Units Repurchase Program | ||||
Capital Unit [Line Items] | ||||
Partnership's common units authorized for repurchase | 1,900 |
Partnerships_Repurchase_Activi
Partnership's Repurchase Activities (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 36 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Nov. 30, 2014 | ||||
Capital Unit [Line Items] | |||||||||
Partnership's common units authorized for repurchase | 6,044 | 6,044 | |||||||
Private Transaction | |||||||||
Capital Unit [Line Items] | |||||||||
Partnership's common units authorized for repurchase | 1,150 | 1,150 | 1,450 | ||||||
Plan III Common Units Repurchase Program | |||||||||
Capital Unit [Line Items] | |||||||||
Partnership's common units authorized for repurchase | 4,894 | 4,894 | |||||||
Total Number of Units Purchased | 1 | [1] | 122 | [1] | 123 | [1] | 3,619 | [1],[2] | |
Average Price Paid per Unit | $5.72 | [3] | $5.64 | [3] | $5.64 | [3] | $4.69 | [2],[3] | |
Maximum Number of Units that May Yet Be Purchased | 2,302 | 2,303 | 2,302 | 2,425 | [2] | 2,303 | |||
[1] | Units were repurchased as part of a publicly announced program, except as noted in a private transaction. | ||||||||
[2] | Includes 1.45 million common units acquired in a private transaction. | ||||||||
[3] | Amounts include repurchase costs. |
Partnerships_Repurchase_Activi1
Partnership's Repurchase Activities (Parenthetical) (Detail) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Capital Unit [Line Items] | ||
Partnership's common units authorized for repurchase | 6,044 | |
Private Transaction | ||
Capital Unit [Line Items] | ||
Partnership's common units authorized for repurchase | 1,150 | 1,450 |
Derivatives_and_HedgingDisclos
Derivatives and Hedging-Disclosures and Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
gal | gal | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Aggregated cash posted as collateral in normal course of business | 2.3 | ||
Hedging positions and payable amounts secured under credit facility | 28.7 | $14.90 | |
Call Option | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 5,600,000 | 4,500,000 | |
Put Option | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 7,700,000 | 6,900,000 | |
Inventory | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 1,600,000 | ||
Swap Contracts Bought | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 12,400,000 | 10,000,000 | |
Synthetic calls | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 94,100,000 | 86,000,000 | |
Futures Contracts Sold | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 55,100,000 | 76,500,000 | |
Corresponding Long And Short Swap Contracts Bought | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 38,600,000 | ||
Hedge a Majority of its Internal Fuel Usage Swap Contracts Bought | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 2,900,000 | 2,400,000 | |
Futures Contracts Bought | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 29,600,000 | 57,600,000 | |
Swap Contracts Sold | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 16,300,000 | ||
Spread Contracts Bought | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative activity volume | 3,900,000 |
Partnerships_Financial_Assets_
Partnership's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10, Commodity Contract, USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | $97,822 | $26,263 |
Derivative Liabilities, commodity contracts | -116,258 | -36,279 |
Fair asset and fair liability value of derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 96,546 | 26,263 |
Fair liability and fair asset value of derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, commodity contracts | -115,539 | -36,279 |
Long-term derivative assets included in the deferred charges and other assets, net balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 1,276 | |
Long-term derivative liabilities included in other long-term liabilities balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, commodity contracts | -719 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 20,978 | 2,328 |
Derivative Liabilities, commodity contracts | -16,674 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Fair asset and fair liability value of derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 20,505 | 2,328 |
Quoted Prices in Active Markets for Identical Assets Level 1 | Fair liability and fair asset value of derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, commodity contracts | -16,608 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Long-term derivative assets included in the deferred charges and other assets, net balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 473 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Long-term derivative liabilities included in other long-term liabilities balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, commodity contracts | -66 | |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 76,844 | 23,935 |
Derivative Liabilities, commodity contracts | -99,584 | -36,279 |
Significant Other Observable Inputs Level 2 | Fair asset and fair liability value of derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 76,041 | 23,935 |
Significant Other Observable Inputs Level 2 | Fair liability and fair asset value of derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, commodity contracts | -98,931 | -36,279 |
Significant Other Observable Inputs Level 2 | Long-term derivative assets included in the deferred charges and other assets, net balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 803 | |
Significant Other Observable Inputs Level 2 | Long-term derivative liabilities included in other long-term liabilities balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, commodity contracts | ($653) |
Offsetting_of_Financial_Assets
Offsetting of Financial Assets (Liabilities) and Derivative Assets (liabilities) (Detail) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Net Assets (Liabilities) Presented in the Statement of Financial Position | $3,897 | $2,342 |
Net Assets (Liabilities) Presented in the Statement of Financial Position | -22,891 | -12,358 |
Subject to an enforceable master netting arrangement | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Gross Assets Recognized | 97,822 | 26,263 |
Gross Liabilities Offset in the Statement of Financial Position | -116,258 | -36,279 |
Net Assets (Liabilities) Presented in the Statement of Financial Position | -18,436 | -10,016 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | -18,436 | -10,016 |
Subject to an enforceable master netting arrangement | Fair liability and fair asset value of derivative instruments | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Gross Assets Recognized | 76,041 | 23,921 |
Gross Liabilities Offset in the Statement of Financial Position | -98,932 | -36,279 |
Net Assets (Liabilities) Presented in the Statement of Financial Position | -22,891 | -12,358 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | -22,891 | -12,358 |
Subject to an enforceable master netting arrangement | Fair asset and fair liability value of derivative instruments | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Gross Assets Recognized | 20,505 | 2,342 |
Gross Liabilities Offset in the Statement of Financial Position | -16,608 | |
Net Assets (Liabilities) Presented in the Statement of Financial Position | 3,897 | 2,342 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 3,897 | 2,342 |
Subject to an enforceable master netting arrangement | Long-term derivative liabilities included in other long-term liabilities balance | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Gross Assets Recognized | 340 | |
Gross Liabilities Offset in the Statement of Financial Position | -430 | |
Net Assets (Liabilities) Presented in the Statement of Financial Position | -90 | |
Financial Instruments | 0 | |
Cash Collateral Received | 0 | |
Net Amount | -90 | |
Subject to an enforceable master netting arrangement | Long-term derivative assets included in the deferred charges and other assets, net balance | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Gross Assets Recognized | 936 | |
Gross Liabilities Offset in the Statement of Financial Position | -288 | |
Net Assets (Liabilities) Presented in the Statement of Financial Position | 648 | |
Financial Instruments | 0 | |
Cash Collateral Received | 0 | |
Net Amount | $648 |
Effect_of_Derivative_Instrumen
Effect of Derivative Instruments on Statement of Operations (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of (Gain) or Loss Unrealized, commodity contracts | $8,290 | ($5,458) | ||
Open Position | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of (Gain) or Loss Unrealized, commodity contracts | 8,290 | -5,458 | ||
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Cost of product | Closed Positions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of (Gain) or Loss Recognized, commodity contracts | -6,805 | [1] | 5,311 | [1] |
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Cost of installations and service | Closed Positions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of (Gain) or Loss Recognized, commodity contracts | 486 | [1] | -8 | [1] |
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Delivery and branch expenses | Closed Positions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of (Gain) or Loss Recognized, commodity contracts | $474 | [1] | ($39) | [1] |
[1] | Represents realized closed positions and includes the cost of options as they expire. |
Components_of_Inventory_Detail
Components of Inventory (Detail) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Product | $48,338 | $39,802 |
Parts and equipment | 19,535 | 19,438 |
Total inventory | $67,873 | $59,240 |
Component_of_Property_and_Equi
Component of Property and Equipment and their Estimated Useful Lives (Detail) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $171,259 | $170,307 |
Less accumulated depreciation | 105,230 | 102,888 |
Property and equipment, net | $66,029 | $67,419 |
Intangible_Assets_Subject_to_A
Intangible Assets Subject to Amortization (Detail) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $329,755 | $328,769 |
Accum. Amortization | 231,312 | 227,986 |
Net | 98,443 | 100,783 |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 305,685 | 304,699 |
Accum. Amortization | 227,226 | 224,215 |
Net | 78,459 | 80,484 |
Trade Names And Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 24,070 | 24,070 |
Accum. Amortization | 4,086 | 3,771 |
Net | $19,984 | $20,299 |
Intangibles_net_Additional_Inf
Intangibles, net - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Other Intangible Assets [Line Items] | ||
Amortization expense for intangible assets | $3.30 | $2.30 |
Partnerships_Debt_Detail
Partnership's Debt (Detail) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
8.875% Senior Notes, Carrying Amount | $124,602 | [1] | $124,572 | [1] |
Revolving Credit Facility Borrowings, Carrying Amount | 0 | [2] | 0 | [2] |
Total debt, Carrying Amount | 124,602 | 124,572 | ||
Total long-term portion of debt, Carrying Amount | 124,602 | 124,572 | ||
8.875% Senior Notes, Fair Value | 128,125 | [1],[3] | 130,313 | [1],[3] |
Revolving Credit Facility Borrowings, Fair Value | 0 | [2],[3] | 0 | [2],[3] |
Total debt, Fair Value | 128,125 | [3] | 130,313 | [3] |
8.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
8.875% Senior Notes, Fair Value | $128,125 | [3] | $130,313 | [3] |
[1] | The 8.875% Senior Notes were originally issued in November 2010 in a private placement offering pursuant to Rule 144A and Regulation S under the Securities Act of 1933, and in February 2011, were exchanged for substantially identical public notes registered with the Securities and Exchange Commission. These public notes mature in December 2017 and accrue interest at an annual rate of 8.875% requiring semi-annual interest payments on June 1 and December 1 of each year. The discount on these notes was $0.4 million at December 31, 2014. Under the terms of the indenture, these notes permit restricted payments after passing particular financial tests. The Partnership can incur debt up to $100 million for acquisitions and can also pay restricted payments of $22.0 million without passing certain financial tests. | |||
[2] | In January 2014, the Partnership entered into a second amended and restated asset based revolving credit facility agreement with a bank syndicate comprised of fifteen participants, which replaced the then existing revolving credit facility. | |||
[3] | The Partnership's fair value estimates of long-term debt are made at a specific point in time, based on Level 2 inputs. |
Partnerships_Debt_Parenthetica
Partnership's Debt (Parenthetical) (Detail) (8.875% Senior Notes, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
8.875% Senior Notes | |
Debt Instrument [Line Items] | |
Senior notes issuance date | 1-Nov-10 |
Interest accrued by public notes for each year | 8.88% |
Discount on notes | $0.40 |
Maximum debt allowed for acquisitions | 100 |
Restricted payments without passing certain financial tests | $22 |
Maturity of public notes due | 1-Dec-17 |
Interest payment frequency | Semi-annual interest payments on June 1 and December 1 of each year |
LongTerm_Debt_and_Bank_Facilit2
Long-Term Debt and Bank Facility Borrowings - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
Jan. 14, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | |||
Hedging positions and payable amounts secured under credit facility | $28,700,000 | $14,900,000 | |
Letters of credit issued | 55,300,000 | 52,800,000 | |
Availability in compliance with the fixed charge coverage ratio | 181,700,000 | 149,600,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility outstanding | 0 | 0 | |
Second Amendment | |||
Debt Instrument [Line Items] | |||
Non Seasonal maximum borrowing capacity under revolving credit facility | 300,000,000 | 300,000,000 | |
Maximum borrowing capacity (heating season December to April) under revolving credit facility | 450,000,000 | ||
Issuance of line of credit for working capital purposes | 100,000,000 | ||
Alternate revolving credit facility expiry | 14-Jan-19 | ||
Revolving credit facility expiry | 1-Jun-17 | ||
Additional revolving credit | 100,000,000 | ||
Facility size that can be increased without consulting bank group | 100,000,000 | ||
Line of credit facility description | All outstanding amounts owed under the second amended and restated credit facility become due and payable on the facility termination date of June 1, 2017. If the Partnership has repaid, prepaid or otherwise defeased at least $100 million of our 8.875% Senior Notes and Availability is equal to or greater than the aggregate amount required to repay the remaining outstanding 8.875% Senior Notes (bPayoff Amountb), then the facility termination date is January 14, 2019. | ||
Description of variable rate | The interest rate on the second amended and restated credit facility is LIBOR plus (i) 1.75% (if Availability, as defined in the agreement is greater than or equal to $150 million), or (ii) 2.00% (if Availability is greater than $75 million but less than $150 million), or (iii) 2.25% (if Availability is less than or equal to $75 million). The Commitment Fee on the unused portion of the facility is 0.30% per annum. | ||
Condition one, additional interest rate based on LIBOR | 1.75% | ||
Condition two, additional interest rate based on LIBOR | 2.00% | ||
Condition three, additional interest rate based on LIBOR | 2.25% | ||
Minimum availability, condition one | 150,000,000 | ||
Maximum availability, condition two | 150,000,000 | ||
Minimum availability, condition two | 75,000,000 | ||
Maximum availability, condition three | 75,000,000 | ||
Commitment fee on the unused portion of the facility | 0.30% | ||
Availability percentage to maximum facility size | 12.50% | ||
Minimum fixed charge coverage ratio | 110.00% | ||
Availability required to make acquisition | 40,000,000 | ||
Availability required to pay distributions | 45,000,000 | 45,000,000 | |
Percentage of the maximum facility size on a historical proforma and forward-looking basis | 15.00% | 15.00% | |
Minimum fixed charge coverage ratio for distributions to unit holders or to repurchase common units | 115.00% | 115.00% | |
8.875% Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest accrued by public notes for each year | 8.88% | ||
8.875% Senior Notes | Second Amendment | |||
Debt Instrument [Line Items] | |||
Amount required to repaid, prepaid or defeased | $100,000,000 | ||
Interest accrued by public notes for each year | 8.88% |
Current_and_Deferred_Income_Ta
Current and Deferred Income Tax Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Income Tax Assets And Liabilities | ||
Income before income taxes | $26,913 | $32,843 |
Current tax expense | 11,129 | 10,223 |
Deferred tax expense | 230 | 3,332 |
Total tax expense | $11,359 | $13,555 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 | Jan. 01, 2015 |
Income Tax Disclosure [Abstract] | ||
Unrecognized income tax benefit, if recognized, would benefit effective tax rate | 0.9 | |
Unrecognized income tax benefit related accrued interest and penalties | 0.03 | |
Subsequent Event | ||
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | 6.1 | |
Federal | ||
Income Tax Disclosure [Abstract] | ||
Number of years for examination | Four | |
New York | ||
Income Tax Disclosure [Abstract] | ||
Number of years for examination | Four | |
Connecticut | ||
Income Tax Disclosure [Abstract] | ||
Number of years for examination | Four | |
Pennsylvania | ||
Income Tax Disclosure [Abstract] | ||
Number of years for examination | Four | |
New Jersey | ||
Income Tax Disclosure [Abstract] | ||
Number of years for examination | Five | |
Minimum | Subsequent Event | ||
Income Tax Disclosure [Abstract] | ||
Annual limitation of federal NOLs | 1 | |
Expiration date of net operating loss carryforward | 31-Dec-18 | |
Maximum | Subsequent Event | ||
Income Tax Disclosure [Abstract] | ||
Annual limitation of federal NOLs | $2.20 | |
Expiration date of net operating loss carryforward | 31-Dec-24 |
Supplemental_Disclosure_of_Cas2
Supplemental Disclosure of Cash Flow Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Non-cash investing activities: | ||
Acquisition of NYC heating oil customer list | $886 | |
Non-cash financing activities: | ||
Increase in interest expense-amortization of debt discount on 8.875% Senior Notes | 30 | 27 |
Income taxes, net | 11,116 | 6,740 |
Interest | $6,233 | $6,208 |
Supplemental_Disclosure_of_Cas3
Supplemental Disclosure of Cash Flow Information (Parenthetical) (Detail) (8.875% Senior Notes) | Dec. 31, 2014 | Dec. 31, 2013 |
8.875% Senior Notes | ||
Cash paid during the period for: | ||
Interest on senior notes | 8.88% | 8.88% |
Net_Income_Allocation_and_Per_
Net Income Allocation and Per Unit Data (Detail) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Basic and Diluted Earnings Per Limited Partner: | ||||
Net income | $15,554 | $19,288 | ||
Less General Partner's interest in net income | 88 | 109 | ||
Net income available to limited partners | 15,466 | 19,179 | ||
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260- 10-45-60 | 1,930 | 2,665 | ||
Limited Partner's interest in net income under FASB ASC 260-10-45-60 | $13,536 | $16,514 | ||
Per unit data: | ||||
Basic and diluted net income available to limited partners | 0.27 | 0.33 | ||
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260- 10-45-60 | 0.03 | 0.04 | ||
Limited Partner's interest in net income under FASB ASC 260- 10-45-60 | $0.24 | [1] | $0.29 | [1] |
Weighted average number of Limited Partner units outstanding | 57,294 | 57,511 | ||
[1] | See Note 12 Earnings Per Limited Partner Unit. |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 1 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 |
Subsequent Event [Line Items] | |
Payment to acquire propane dealership | $1.10 |
Net working capital credits acquired | 0.1 |
Dividend Declared | |
Subsequent Event [Line Items] | |
Distribution declared | $0.09 |
Partners capital projected distribution amount on annualized basis | $0.35 |
Minimum dividend distribution per unit | $0.07 |
Percentage of distributions to common unit holders in excess of minimum quarterly distribution | 90.00% |
Percentage of distributions to general unit holders in excess of minimum quarterly distribution | 10.00% |
Amount to paid to common unit holders | 5 |
Amount to paid to the General Partner | 0.1 |
Incentive distribution to the General Partner | 0.06 |
Incentive distributions to management | $0.06 |
Dividend payable date | 10-Feb-15 |
Dividend record date | 30-Jan-15 |