Star (SGU) 10-Q 1 Aug 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	SGU
Entity Registrant Name	STAR GAS PARTNERS LP
Entity Central Index Key	1,002,590
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		57,187,832

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Current assets
Cash and cash equivalents	$ 171,156	$ 100,508
Receivables, net of allowance of $5,589 and $6,713, respectively	87,977	89,230
Inventories	42,451	55,671
Fair asset value of derivative instruments	4,260	935
Current deferred tax assets, net	37,460	37,832
Prepaid expenses and other current assets	24,183	25,135
Total current assets	367,487	309,311
Property and equipment, net	68,339	68,123
Goodwill	212,676	211,045
Intangibles, net	101,006	107,317
Deferred charges and other assets, net	12,521	11,236
Total assets	762,029	707,032
Current liabilities
Accounts payable	22,680	25,322
Fair liability value of derivative instruments	927	12,819
Current maturities of long-term debt	15,000	10,000
Accrued expenses and other current liabilities	122,932	107,745
Unearned service contract revenue	46,088	44,419
Customer credit balances	76,405	78,207
Total current liabilities	284,032	278,512
Long-term debt	80,000	90,000
Long-term deferred tax liabilities, net	35,253	21,524
Other long-term liabilities	25,492	27,110
Partners' capital
Common unitholders	358,928	312,713
General partner	(273)	(283)
Accumulated other comprehensive loss, net of taxes	(21,403)	(22,544)
Total partners' capital	337,252	289,886
Total liabilities and partners' capital	$ 762,029	$ 707,032

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Receivables, allowance	$ 5,589	$ 6,713

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Sales:
Product		$ 156,229	$ 184,891	$ 813,519	$ 1,325,907
Installations and services		61,965	60,713	185,755	181,223
Total sales		218,194	245,604	999,274	1,507,130
Cost and expenses:
Cost of product		103,568	133,053	473,534	905,117
Cost of installations and services		53,272	52,786	175,042	173,831
(Increase) decrease in fair value of derivative instruments		(11,283)	(5,415)	(20,071)	(9,756)
Delivery and branch expenses		64,052	64,575	218,755	249,516
Depreciation and amortization expenses		6,468	6,204	19,959	18,579
General and administrative expenses		6,017	6,173	17,525	19,090
Finance charge income		(945)	(1,699)	(2,480)	(4,042)
Operating income (loss)		(2,955)	(10,073)	117,010	154,795
Interest expense, net		(1,731)	(3,491)	(5,481)	(10,767)
Amortization of debt issuance costs		(307)	(406)	(934)	(1,209)
Income (loss) before income taxes		(4,993)	(13,970)	110,595	142,819
Income tax expense (benefit)		(1,755)	(5,611)	46,566	59,937
Net income (loss)		(3,238)	(8,359)	64,029	82,882
General Partner's interest in net income (loss)		(19)	(47)	362	469
Limited Partners' interest in net income (loss)		$ (3,219)	$ (8,312)	$ 63,667	$ 82,413
Basic and diluted income (loss) per Limited Partner Unit	[1]	$ (0.06)	$ (0.15)	$ 0.95	$ 1.21
Weighted average number of Limited Partner units outstanding:
Basic and Diluted		57,188	57,282	57,237	57,286
[1]	See Note 13 Earnings Per Limited Partner Unit.

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income (loss)		$ (3,238)	$ (8,359)	$ 64,029	$ 82,882
Other comprehensive income:
Unrealized gain on pension plan obligation	[1]	647	556	1,943	1,670
Tax effect of unrealized gain on pension plan		(267)	(230)	(802)	(689)
Total other comprehensive income		380	326	1,141	981
Total comprehensive income (loss)		$ (2,858)	$ (8,033)	$ 65,170	$ 83,863
[1]	This item is included in the computation of net periodic pension cost.

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL - 9 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands		Total		General Partner	Common Stock	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Sep. 30, 2015		$ 289,886		$ (283)	$ 312,713	$ (22,544)
Beginning Balance, unit at Sep. 30, 2015				326	57,282
Net income		64,029		$ 362	$ 63,667
Unrealized gain on pension plan obligation		1,943	[1]			1,943
Tax effect of unrealized gain on pension plan		(802)				(802)
Distributions		(17,097)		(352)	$ (16,745)
Retirement of units, shares	[2]				(95)
Retirement of units	[2]	(707)			$ (707)
Ending Balance at Jun. 30, 2016		$ 337,252		$ (273)	$ 358,928	$ (21,403)
Ending Balance, Unit at Jun. 30, 2016				326	57,187
[1]	This item is included in the computation of net periodic pension cost.
[2]	See Note 3 - Common Unit Repurchase and Retirement.

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows provided by (used in) operating activities:
Net income	$ 64,029	$ 82,882
Adjustment to reconcile net income to net cash provided by (used in) operating activities:
(Increase) decrease in fair value of derivative instruments	(20,071)	(9,756)
Depreciation and amortization	20,893	19,788
Provision for losses on accounts receivable	(140)	5,062
Change in deferred taxes	13,299	8,598
Changes in operating assets and liabilities:
(Increase) decrease in receivables	647	(17,730)
Decrease in inventories	13,402	12,691
Decrease in other assets	968	1,759
Decrease in accounts payable	(2,173)	(6,984)
Decrease in customer credit balances	(2,026)	(26,595)
Increase in other current and long-term liabilities	21,357	26,456
Net cash provided by operating activities	110,185	96,171
Cash flows provided by (used in) investing activities:
Capital expenditures	(7,230)	(5,227)
Proceeds from sales of fixed assets	303	212
Acquisitions	(8,829)	(1,069)
Net cash used in investing activities	(15,756)	(6,084)
Cash flows provided by (used in) financing activities:
Revolving credit facility borrowings		12,296
Revolving credit facility repayments		(12,296)
Repayment of term loan	(5,000)
Distributions	(17,097)	(15,747)
Unit repurchases	(707)	(691)
Customer retainage payments	(680)
Payments of debt issuance costs	(297)
Net cash used in financing activities	(23,781)	(16,438)
Net increase in cash and cash equivalents	70,648	73,649
Cash and cash equivalents at beginning of period	100,508	48,999
Cash and cash equivalents at end of period	$ 171,156	$ 122,648

Partnership Organization

Partnership Organization	9 Months Ended
	Jun. 30, 2016
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. These products 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. Including our propane locations, we serve customers in the more northern and eastern states within the Northeast, Central and Southeast U.S. regions. The Partnership is organized as follows: • The Partnership is a master limited partnership, which as of June 30, 2016, had outstanding 57.2 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., a Minnesota corporation (“SA”), that owns 100% of Petro Holdings, Inc., a Minnesota corporation (“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 primarily a Northeast, Central and Southeast region retail distributor of home heating oil and propane that as of June 30, 2016, served approximately 446,000 full-service residential and commercial home heating oil and propane customers. Petro also sold diesel fuel, gasoline and home heating oil to approximately 74,000 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 26,000 customers. • Petroleum Heat and Power Co., Inc., a Minnesota corporation (“PH&P”) is a 100% owned subsidiary of the Partnership. PH&P is the borrower and the Partnership is the guarantor of the third amended and restated credit agreement’s five-year senior secured term loan and the $300 million ($450 million during the heating season of December through April of each year) revolving credit facility, both due July 30, 2020 (See Note 9—Long-Term Debt and Bank Facility Borrowings).

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Jun. 30, 2016
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 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 nine month period ended June 30, 2016, 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, 2015. 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. Weather Hedge Contract To partially mitigate the adverse effect of warm weather on cash flows, the Partnership has used weather hedge contracts for a number of years. Weather hedge contracts are recorded in accordance with the intrinsic value method defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-45-15 Derivatives and Hedging, Weather Derivatives. The premium paid is included in the caption Prepaid Expenses and Other Current Assets in the accompanying balance sheets and amortized over the life of the contract, with the intrinsic value method applied at each interim period. For fiscal years 2016 and 2017 the Partnership has a weather hedge contract with Swiss Re under which the Partnership is entitled to receive a payment of $35,000 per heating degree-day shortfall, when the accumulated number of heating degree-days in the entire hedge period is less than approximately 92.5% of the ten year average, the Payment Threshold as defined in the contract. The hedge covers the five month period from November 1, through March 31, taken as a whole, and has a maximum payout of $12.5 million for each respective fiscal year. Based on the degree-day shortfall experienced during the most recent five month hedge period, the Partnership received $12.5 million from Swiss Re in April 2016. The amount is included as a reduction to delivery and branch expenses and was recorded as of December 31, 2015. New England Teamsters and Trucking Industry Pension Fund (the “NETTI Fund”) Liability As of June 30, 2016, we had $0.2 million and $17.5 million included in the captions Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities, respectively, on our condensed consolidated balance sheet representing the remaining balance of the NETTI Fund withdrawal liability. Based on the borrowing rates currently available to the Partnership for long-term financing of a similar maturity, the fair value of the NETTI Fund withdrawal liability as of June 30, 2016 was $18.4 million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. Recent Accounting Pronouncements In May 2014, the 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 the latest revenue recognition guidance in GAAP when it becomes effective. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2019, with early adoption permitted beginning in the first quarter of fiscal 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Partnership is evaluating the effect that ASU No. 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 timing of adoption. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. The update requires retrospective application and represents a change in accounting principle. The update is effective for our annual reporting period beginning in the first quarter of fiscal 2017, with early adoption permitted. The impact of ASU No. 2015-03 will be limited to the presentation of debt issuance cost on our balance sheet. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. The update changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2018, with early adoption permitted. The Partnership does not expect ASU No. 2015-11 to have a material impact on its consolidated financial statements and related disclosures. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which requires an acquiring entity to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquiring entity is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, the acquiring entity is to present separately on the face of its income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods as if the adjustment to the provisional amounts had been recognized as of the acquisition date. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2017. The Partnership does not expect ASU No. 2015-16 to have a material impact on its consolidated financial statements and related disclosures. In November 2015, FASB issued ASU No. 2015-17, Income Taxes - Balance Sheet Classification of Deferred Taxes, which eliminates the requirement for companies to present deferred tax assets and liabilities as current and non-current in a classified balance sheet. Instead, companies will be required to classify all deferred tax assets and liabilities as non-current. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2018, with early adoption permitted. The standard permits the use of either the prospective or retrospective transition method. The Partnership is evaluating the effect that ASU No. 2015-17 will have on its consolidated financial statements and related disclosures, but has not yet selected a transition method or determined the timing of adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases. The update requires all leases with a term greater than twelve months to be recognized on the balance sheet through a right-of-use asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2020, with early adoption permitted. The Partnership is evaluating the effect that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures, but has not yet selected a transition method or determined the timing of adoption. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. The update broadens the information that an entity should consider in developing expected credit loss estimates, eliminates the probable initial recognition threshold, and allows for the immediate recognition of the full amount of expected credit losses. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted in the first quarter of fiscal 2020. The Partnership is evaluating the effect that ASU No. 2016-13 will have on its consolidated financial statements and related disclosures, but has not yet determined the timing of adoption.

Common Unit Repurchase and Reti

Common Unit Repurchase and Retirement	9 Months Ended
	Jun. 30, 2016
Common Unit Repurchase and Retirement	3) Common Unit Repurchase and Retirement In July 2012, the Board 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 third amended and restated credit agreement dated July 30, 2015, in order to repurchase Common Units we must maintain Availability (as defined in the amended and restated credit agreement) of $45 million, 15.0% of the facility size of $300 million (assuming the non-seasonal aggregate commitment is in effect) 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 nine months ended June 30, 2016. The following table shows repurchases under Plan III. (in thousands, except per unit amounts) Total Number of (a) Average Price Paid per Unit (b) Maximum Number of Units that May 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 2015 total (c) 3,742 $ 4.72 2,302 Plan III - First quarter fiscal year 2016 total 3 $ 7.02 2,299 Plan III - Second quarter fiscal year 2016 total 92 $ 7.49 2,207 Plan III - Third quarter fiscal year 2016 total — $ — 2,207 Plan III - Nine months fiscal year 2016 total 95 $ 7.48 2,207 (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 1.4 million common units acquired in a private transaction.

Derivatives and Hedging-Disclos

Derivatives and Hedging-Disclosures and Fair Value Measurements	9 Months Ended
	Jun. 30, 2016
Derivatives and Hedging-Disclosures and Fair Value Measurements	4) Derivatives and Hedging—Disclosures and Fair Value Measurements FASB ASC 815-10-05 Derivatives and Hedging, established accounting and reporting standards requiring that derivative instruments be recorded at fair value and included in the consolidated balance sheet as assets or liabilities, along with qualitative disclosures regarding the derivative activity. 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. As of June 30, 2016, to hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers, the Partnership held the following derivative instruments that settle in future months to match anticipated sales: 6.6 million gallons of swap contracts, 4.5 million gallons of call options, 4.1 million gallons of put options, and 60.0 million net gallons of synthetic call options. To hedge the inter-month differentials for its price-protected customers, its physical inventory on hand and inventory in transit, the Partnership, as of June 30, 2016, had 1.1 million gallons of long swap contracts, 54.0 million gallons of long future contracts, and 70.1 million gallons of short future contracts that settle in future months. In addition to the above, to lock-in the differential between high sulfur home heating oil and ultra low sulfur diesel, the Partnership as of June 30, 2016, had 0.7 million gallons of spread contracts (simultaneous long and short positions). To hedge its internal fuel usage and other related activities for fiscal 2016, the Partnership, as of June 30, 2016, had 5.9 million gallons of swap contracts that settle in future months. As of June 30, 2015, to hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers, the Partnership held the following derivative instruments that settle in future months to match anticipated sales: 5.2 million gallons of swap contracts, 4.4 million gallons of call options, 2.7 million gallons of put options, and 60.2 million net gallons of synthetic call options. To hedge the inter-month differentials for its price-protected customers, its physical inventory on hand and inventory in transit, the Partnership, as of June 30, 2015, had 7.0 million gallons of long future contracts, and 21.8 million gallons of short future contracts that settle in future months. To hedge its internal fuel usage and other related activities for the remainder of fiscal 2015 and for fiscal 2016, the Partnership, as of June 30, 2015, had 3.0 million gallons of swap contracts that settle in future months. 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., Munich Re Trading LLC, 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 June 30, 2016, the aggregate cash posted as collateral in the normal course of business at counterparties was $3.1 million ($3.1 million recorded in prepaid expenses and other current assets). Positions with counterparties who are also parties to our credit agreement are collateralized under that facility. As of June 30, 2016, $0.1 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 Instruments Quoted Prices in Active Markets for Significant Other Observable Inputs Under FASB ASC 815-10 Balance Sheet Location Total Level 1 Level 2 Asset Derivatives at June 30, 2016 Commodity contracts Fair asset and fair liability value of derivative instruments $ 12,309 $ 2,533 $ 9,776 Commodity contracts Long-term derivative assets included in the deferred charges and other assets, net, and in the other long-term liabilities balances 1,411 447 964 Commodity contract assets at June 30, 2016 $ 13,720 $ 2,980 $ 10,740 Liability Derivatives at June 30, 2016 Commodity contracts Fair liability and fair asset value of derivative instruments $ — Commodity contracts Cash collateral (8,976 ) (3,258 ) (5,718 ) Commodity contracts Long-term derivative liabilities included in the other long-term liabilities, and the deferred charges and other assets, net, balances (535 ) (444 ) (91 ) Commodity contract liabilities at June 30, 2016 $ (9,511 ) $ (3,702 ) $ (5,809 ) Asset Derivatives at September 30, 2015 Commodity contracts Fair asset and fair liability value of derivative instruments $ 26,628 $ 930 $ 25,698 Commodity contracts Long-term derivative assets included in the other long-term liabilities balance 4,975 2,017 2,958 Commodity contract assets at September 30, 2015 $ 31,603 $ 2,947 $ 28,656 Liability Derivatives at September 30, 2015 Commodity contracts Fair liability and fair asset value of derivative instruments $ (41,270 ) $ — $ (41,270 ) Commodity contracts Cash collateral 2,758 2,758 — Commodity contracts Long-term derivative liabilities included in the other long-term liabilities balance (5,977 ) (2,038 ) (3,939 ) Commodity contract liabilities at September 30, 2015 $ (44,489 ) $ 720 $ (45,209 ) 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 Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities) Gross Gross Net Assets Financial Cash Net Fair asset value of derivative instruments $ 6,754 $ (2,494 ) $ 4,260 $ — $ — $ 4,260 Long-term derivative assets included in deferred charges and other assets, net 1,401 (523 ) 878 — — 878 Fair liability value of derivative instruments 5,555 (6,482 ) (927 ) — — (927 ) Long-term derivative liabilities included in other long-term liabilities, net 10 (12 ) (2 ) — (2 ) Total at June 30, 2016 $ 13,720 $ (9,511 ) $ 4,209 $ — $ — $ 4,209 Fair asset value of derivative instruments $ 935 $ — $ 935 $ — $ — $ 935 Fair liability value of derivative instruments 25,693 (38,512 ) (12,819 ) — — (12,819 ) Long-term derivative liabilities included in other long-term liabilities, net 4,975 (5,977 ) (1,002 ) (1,002 ) Total at September 30, 2015 $ 31,603 $ (44,489 ) $ (12,886 ) $ — $ — $ (12,886 ) (In thousands) The Effect of Derivative Instruments on the Statement of Operations Amount of (Gain) or Loss Recognized Derivatives Not Designated as Hedging Instruments Under Location of (Gain) or Loss Recognized in Income on Derivative Three Months Three Months Nine Months Nine Months Closed Positions Commodity contracts Cost of product (a) $ 8,177 $ 6,599 $ 16,978 $ 17,115 Commodity contracts Cost of installations and service (a) $ 72 $ 280 $ 848 $ 1,625 Commodity contracts Delivery and branch expenses (a) $ 150 $ 251 $ 1,029 $ 1,716 Closed Positions Commodity contracts (Increase) / decrease in the fair value of derivative instruments $ (11,283 ) $ (5,415 ) $ (20,071 ) $ (9,756 ) (a) Represents realized closed positions and includes the cost of options as they expire.

Inventories

Inventories	9 Months Ended
	Jun. 30, 2016
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): June 30, 2016 September 30, 2015 Product $ 22,154 $ 35,599 Parts and equipment 20,297 20,072 Total inventory $ 42,451 $ 55,671

Property and Equipment

Property and Equipment	9 Months Ended
	Jun. 30, 2016
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): June 30, 2016 September 30, 2015 Property and equipment $ 179,516 $ 179,631 Less: accumulated depreciation 111,177 111,508 Property and equipment, net $ 68,339 $ 68,123

Business Combination

Business Combination	9 Months Ended
	Jun. 30, 2016
Business Combination	7) Business Combination During fiscal 2016, the Partnership acquired a heating oil dealer, a motor fuel dealer, and a propane dealer for purchase prices aggregating approximately $8.8 million. The aggregate purchase price was allocated $5.2 million to intangible assets, $1.6 million to goodwill, $2.2 million to fixed assets, and reduced by $0.2 million for working capital credits. The acquired companies’ operating results are included in the Partnership’s consolidated financial statements starting on their respective acquisition date, and are not material to the Partnership’s financial condition, results of operations, or cash flows.

Goodwill and Intangibles, net

Goodwill and Intangibles, net	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangibles, net	8) Goodwill and Intangibles, net Goodwill A summary of changes in the Partnership’s goodwill is as follows (in thousands): Balance as of September 30, 2015 $ 211,045 Fiscal year 2016 business combinations 1,631 Balance as of June 30, 2016 $ 212,676 Intangibles, net The gross carrying amount and accumulated amortization of intangible assets subject to amortization are as follows (in thousands): June 30, 2016 September 30, 2015 Gross Gross Carrying Accum. Carrying Accum. Amount Amortization Net Amount Amortization Net Customer lists $ 326,878 $ 246,876 $ 80,002 $ 322,027 $ 236,438 $ 85,589 Trade names and other intangibles 27,093 6,089 21,004 26,774 5,046 21,728 Total $ 353,971 $ 252,965 $ 101,006 $ 348,801 $ 241,484 $ 107,317 Amortization expense for intangible assets was $11.5 million for the nine months ended June 30, 2016, compared to $10.0 million for the nine months ended June 30, 2015.

Long-Term Debt and Bank Facilit

Long-Term Debt and Bank Facility Borrowings	9 Months Ended
	Jun. 30, 2016
Long-Term Debt and Bank Facility Borrowings	9) Long-Term Debt and Bank Facility Borrowings The Partnership’s debt is as follows (in thousands): June 30, September 30, 2016 2015 Carrying Carrying Amount Fair Value (a) Amount Fair Value (a) Revolving Credit Facility Borrowings $ — $ — $ — $ — Senior Secured Term Loan 95,000 95,000 100,000 100,000 Total debt $ 95,000 $ 95,000 $ 100,000 $ 100,000 Total short-term portion of debt $ 15,000 $ 15,000 $ 10,000 $ 10,000 Total long-term portion of debt $ 80,000 $ 80,000 $ 90,000 $ 90,000 (a) The face amount of the Partnership’s variable rate long-term debt approximates fair value. On July 30, 2015, the Partnership entered into a third amended and restated asset based credit agreement with a bank syndicate comprised of thirteen participants, which enables the Partnership to borrow up to $300 million ($450 million during the heating season of December through April of each year) on a revolving credit facility for working capital purposes (subject to certain borrowing base limitations and coverage ratios), provides for a $100 million five-year senior secured term loan (the “$100 million Term Loan”), allows for the issuance of up to $100 million in letters of credit, and has a maturity date of July 30, 2020. The Partnership can increase the revolving credit 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 third 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 amounts outstanding under the third amended and restated revolving credit facility become due and payable on the facility termination date of July 30, 2020. The $100 million Term Loan, whose balance at June 30, 2016, was $95.0 million, is repayable in quarterly payments of $2.5 million, plus an annual payment equal to 25% of the annual Excess Cash Flow as defined in the agreement (an amount not to exceed $15 million annually), less certain voluntary prepayments made during the year, with final payment at maturity. As of June 30, 2016 the Partnership expects to make approximately $5.0 million of additional term loan repayments due to anticipated Excess Cash Flow for the fiscal year ending September 30, 2016. The amount is included in the caption current maturities of long-term debt on our condensed consolidated balance sheet. The interest rate on the third amended and restated revolving credit facility and the term loan is based on a margin over LIBOR or a base rate. At June 30, 2016, the effective interest rate on the term loan was approximately 3.58%. The Commitment Fee on the unused portion of the revolving credit facility is 0.30% from December through April, and 0.20% from May through November. The third amended and restated credit agreement requires the Partnership to meet certain financial covenants, including a fixed charge coverage ratio (as defined in the credit agreement) of not less than 1.1 as long as the $100 million Term Loan is outstanding or revolving credit facility availability is less than 12.5% of the facility size. In addition, as long as the $100 million Term Loan is outstanding, a senior secured leverage ratio at any time cannot be more than 3.0 as calculated during the quarters ending June or September, and at any time no more than 4.5 as calculated during the quarters ending December or March. 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 certain inter-company dividends or distributions, make investments, grant liens, sell assets, make acquisitions and engage in certain other activities. At June 30, 2016, $95.0 million of the term loan was outstanding, no amount was outstanding under the revolving credit facility, $0.1 million of hedge positions were secured under the credit agreement, and $49.1 million of letters of credit were issued and outstanding. At September 30, 2015, $100.0 million of the term loan was outstanding, no amount was outstanding under the revolving credit facility, $15.3 million of hedge positions were secured under the credit agreement, and $54.8 million of letters of credit were issued and outstanding. At June 30, 2016, availability was $221.9 million, and the Partnership was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio. At September 30, 2015, availability was $176.0 million, and the Partnership was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2016
Income Taxes	10) 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, other types of capital transactions, or paying its own expenses rather than for distributions to its individual partners. The Bipartisan Budget Act of 2015 provides that any tax adjustments resulting from partnership audits will generally be determined, and any resulting tax, interest and penalties collected, at the partnership level for tax years beginning after December 31, 2017. 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 and nine months ended June 30, 2016, and 2015 are as follows: Three Months Ended Nine Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Income (loss) before income taxes $ (4,993 ) $ (13,970 ) $ 110,595 $ 142,819 Current tax expense (benefit) $ (6,759 ) $ (6,433 ) $ 33,268 $ 51,339 Deferred tax expense 5,004 822 13,298 8,598 Total tax expense (benefit) $ (1,755 ) $ (5,611 ) $ 46,566 $ 59,937 As of January 1, 2016, Star Acquisitions, Inc., a wholly-owned subsidiary of the Partnership, had an estimated Federal net operating loss carry forward (“NOLs”) of approximately $3.9 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. Due to a change in a state tax law enacted in December 2015, the Partnership increased its valuation allowance by $0.5 million. The balance of the valuation allowance at June 30, 2016 is $3.5 million. At June 30, 2016, we did not have unrecognized income tax benefits. Our continuing practice is to recognize interest and penalties 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 Cash

Supplemental Disclosure of Cash Flow Information	9 Months Ended
	Jun. 30, 2016
Supplemental Disclosure of Cash Flow Information	11) Supplemental Disclosure of Cash Flow Information Nine Months Ended June 30, (in thousands) 2016 2015 Cash paid during the period for: Income taxes, net $ 15,411 $ 28,746 Interest $ 5,082 $ 13,283 Non-cash investing activities: Acquisition of NYC heating oil customer list $ — $ 886 Non-cash operating activities: Increase in interest expense—amortization of debt discount on 8.875% Senior Notes and amortization of deferred charges on senior secured term loan $ 214 $ 91

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2016
Commitments and Contingencies	12) Commitments and Contingencies On February 18, 2016, a civil action was filed in the United States District Court, District of New Jersey, entitled M. Norman Donnenfeld v. Petro Home Services, Petro Holdings Inc. and Petro, Inc., The Partnership’s operations are subject to the operating hazards and risks normally incidental to handling, storing and transporting and otherwise providing for use by consumers hazardous liquids such as home heating oil and propane. In the ordinary course of business, the Partnership is a defendant in various legal proceedings and litigation. The Partnership records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. We do not believe these matters, when considered 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. 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 current and potential future claims, legal proceedings and litigation. Certain types of claims may be excluded from our insurance coverage. If we were to incur substantial liability and the damages are not covered by insurance or are in excess of policy limits, or if we incur liability at a time when we are not able to obtain liability insurance, then our business, results of operations and financial condition could be materially adversely affected.

Earnings Per Limited Partner Un

Earnings Per Limited Partner Unit	9 Months Ended
	Jun. 30, 2016
Earnings Per Limited Partner Unit	13) 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 result 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: Three Months Ended Nine Months Ended Basic and Diluted Earnings Per Limited Partner: June 30, June 30, (in thousands, except per unit data) 2016 2015 2016 2015 Net income (loss) $ (3,238 ) $ (8,359 ) $ 64,029 $ 82,882 Less General Partner’s interest in net income (loss) (19 ) (47 ) 362 469 Net income (loss) available to limited partners (3,219 ) (8,312 ) 63,667 82,413 Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 — — 9,313 13,128 Limited Partner’s interest in net income (loss) under FASB ASC 260-10-45-60 $ (3,219 ) $ (8,312 ) $ 54,354 $ 69,285 Per unit data: Basic and diluted net income (loss) available to limited partners $ (0.06 ) $ (0.15 ) $ 1.11 $ 1.44 Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 — — 0.16 0.23 Limited Partner’s interest in net income (loss) under FASB ASC 260-10-45-60 $ (0.06 ) $ (0.15 ) $ 0.95 $ 1.21 Weighted average number of Limited Partner units outstanding 57,188 57,282 57,237 57,286

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2016
Subsequent Events	14) Subsequent Events Quarterly Distribution Declared In July 2016, we declared a quarterly distribution of $0.1025 per unit, or $0.41 per unit on an annualized basis, on all Common Units with respect to the third quarter of fiscal 2016, payable on August 9, 2016, to holders of record on August 1, 2016. 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, $5.9 million will be paid to the Common Unit holders, $0.13 million to the General Partner unit holders (including $0.1 million of incentive distribution as provided in our Partnership Agreement) and $0.1 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 July 2016, the Partnership acquired the customer lists and assets of a propane dealership for approximately $1.0 million.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2016
Basis of Presentation	Basis of Presentation The Consolidated Financial Statements include the accounts of Star Gas Partners 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 nine month period ended June 30, 2016, 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, 2015.
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.
Weather Hedge Contract	Weather Hedge Contract To partially mitigate the adverse effect of warm weather on cash flows, the Partnership has used weather hedge contracts for a number of years. Weather hedge contracts are recorded in accordance with the intrinsic value method defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-45-15 Derivatives and Hedging, Weather Derivatives. The premium paid is included in the caption Prepaid Expenses and Other Current Assets in the accompanying balance sheets and amortized over the life of the contract, with the intrinsic value method applied at each interim period. For fiscal years 2016 and 2017 the Partnership has a weather hedge contract with Swiss Re under which the Partnership is entitled to receive a payment of $35,000 per heating degree-day shortfall, when the accumulated number of heating degree-days in the entire hedge period is less than approximately 92.5% of the ten year average, the Payment Threshold as defined in the contract. The hedge covers the five month period from November 1, through March 31, taken as a whole, and has a maximum payout of $12.5 million for each respective fiscal year. Based on the degree-day shortfall experienced during the most recent five month hedge period, the Partnership received $12.5 million from Swiss Re in April 2016. The amount is included as a reduction to delivery and branch expenses and was recorded as of December 31, 2015.
New England Teamsters and Trucking Industry Pension Fund (the "NETTI Fund") Liability	New England Teamsters and Trucking Industry Pension Fund (the “NETTI Fund”) Liability As of June 30, 2016, we had $0.2 million and $17.5 million included in the captions Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities, respectively, on our condensed consolidated balance sheet representing the remaining balance of the NETTI Fund withdrawal liability. Based on the borrowing rates currently available to the Partnership for long-term financing of a similar maturity, the fair value of the NETTI Fund withdrawal liability as of June 30, 2016 was $18.4 million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the 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 the latest revenue recognition guidance in GAAP when it becomes effective. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2019, with early adoption permitted beginning in the first quarter of fiscal 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Partnership is evaluating the effect that ASU No. 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 timing of adoption. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. The update requires retrospective application and represents a change in accounting principle. The update is effective for our annual reporting period beginning in the first quarter of fiscal 2017, with early adoption permitted. The impact of ASU No. 2015-03 will be limited to the presentation of debt issuance cost on our balance sheet. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. The update changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2018, with early adoption permitted. The Partnership does not expect ASU No. 2015-11 to have a material impact on its consolidated financial statements and related disclosures. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which requires an acquiring entity to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquiring entity is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, the acquiring entity is to present separately on the face of its income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods as if the adjustment to the provisional amounts had been recognized as of the acquisition date. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2017. The Partnership does not expect ASU No. 2015-16 to have a material impact on its consolidated financial statements and related disclosures. In November 2015, FASB issued ASU No. 2015-17, Income Taxes - Balance Sheet Classification of Deferred Taxes, which eliminates the requirement for companies to present deferred tax assets and liabilities as current and non-current in a classified balance sheet. Instead, companies will be required to classify all deferred tax assets and liabilities as non-current. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2018, with early adoption permitted. The standard permits the use of either the prospective or retrospective transition method. The Partnership is evaluating the effect that ASU No. 2015-17 will have on its consolidated financial statements and related disclosures, but has not yet selected a transition method or determined the timing of adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases. The update requires all leases with a term greater than twelve months to be recognized on the balance sheet through a right-of-use asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2020, with early adoption permitted. The Partnership is evaluating the effect that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures, but has not yet selected a transition method or determined the timing of adoption. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. The update broadens the information that an entity should consider in developing expected credit loss estimates, eliminates the probable initial recognition threshold, and allows for the immediate recognition of the full amount of expected credit losses. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted in the first quarter of fiscal 2020. The Partnership is evaluating the effect that ASU No. 2016-13 will have on its consolidated financial statements and related disclosures, but has not yet determined the timing of adoption.

Common Unit Repurchase and Re23

Common Unit Repurchase and Retirement (Tables)	9 Months Ended
	Jun. 30, 2016
Partnership's Repurchase Activities	The following table shows repurchases under Plan III. (in thousands, except per unit amounts) Total Number of (a) Average Price Paid per Unit (b) Maximum Number of Units that May 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 2015 total (c) 3,742 $ 4.72 2,302 Plan III - First quarter fiscal year 2016 total 3 $ 7.02 2,299 Plan III - Second quarter fiscal year 2016 total 92 $ 7.49 2,207 Plan III - Third quarter fiscal year 2016 total — $ — 2,207 Plan III - Nine months fiscal year 2016 total 95 $ 7.48 2,207 (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 1.4 million common units acquired in a private transaction.

Derivatives and Hedging-Discl24

Derivatives and Hedging-Disclosures and Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2016
Partnership's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	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 Instruments Quoted Prices in Active Markets for Significant Other Observable Inputs Under FASB ASC 815-10 Balance Sheet Location Total Level 1 Level 2 Asset Derivatives at June 30, 2016 Commodity contracts Fair asset and fair liability value of derivative instruments $ 12,309 $ 2,533 $ 9,776 Commodity contracts Long-term derivative assets included in the deferred charges and other assets, net, and in the other long-term liabilities balances 1,411 447 964 Commodity contract assets at June 30, 2016 $ 13,720 $ 2,980 $ 10,740 Liability Derivatives at June 30, 2016 Commodity contracts Fair liability and fair asset value of derivative instruments $ — Commodity contracts Cash collateral (8,976 ) (3,258 ) (5,718 ) Commodity contracts Long-term derivative liabilities included in the other long-term liabilities, and the deferred charges and other assets, net, balances (535 ) (444 ) (91 ) Commodity contract liabilities at June 30, 2016 $ (9,511 ) $ (3,702 ) $ (5,809 ) Asset Derivatives at September 30, 2015 Commodity contracts Fair asset and fair liability value of derivative instruments $ 26,628 $ 930 $ 25,698 Commodity contracts Long-term derivative assets included in the other long-term liabilities balance 4,975 2,017 2,958 Commodity contract assets at September 30, 2015 $ 31,603 $ 2,947 $ 28,656 Liability Derivatives at September 30, 2015 Commodity contracts Fair liability and fair asset value of derivative instruments $ (41,270 ) $ — $ (41,270 ) Commodity contracts Cash collateral 2,758 2,758 — Commodity contracts Long-term derivative liabilities included in the other long-term liabilities balance (5,977 ) (2,038 ) (3,939 ) Commodity contract liabilities at September 30, 2015 $ (44,489 ) $ 720 $ (45,209 )
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 Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities) Gross Gross Net Assets Financial Cash Net Fair asset value of derivative instruments $ 6,754 $ (2,494 ) $ 4,260 $ — $ — $ 4,260 Long-term derivative assets included in deferred charges and other assets, net 1,401 (523 ) 878 — — 878 Fair liability value of derivative instruments 5,555 (6,482 ) (927 ) — — (927 ) Long-term derivative liabilities included in other long-term liabilities, net 10 (12 ) (2 ) — (2 ) Total at June 30, 2016 $ 13,720 $ (9,511 ) $ 4,209 $ — $ — $ 4,209 Fair asset value of derivative instruments $ 935 $ — $ 935 $ — $ — $ 935 Fair liability value of derivative instruments 25,693 (38,512 ) (12,819 ) — — (12,819 ) Long-term derivative liabilities included in other long-term liabilities, net 4,975 (5,977 ) (1,002 ) (1,002 ) Total at September 30, 2015 $ 31,603 $ (44,489 ) $ (12,886 ) $ — $ — $ (12,886 )
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 Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities) Gross Gross Net Assets Financial Cash Net Fair asset value of derivative instruments $ 6,754 $ (2,494 ) $ 4,260 $ — $ — $ 4,260 Long-term derivative assets included in deferred charges and other assets, net 1,401 (523 ) 878 — — 878 Fair liability value of derivative instruments 5,555 (6,482 ) (927 ) — — (927 ) Long-term derivative liabilities included in other long-term liabilities, net 10 (12 ) (2 ) — (2 ) Total at June 30, 2016 $ 13,720 $ (9,511 ) $ 4,209 $ — $ — $ 4,209 Fair asset value of derivative instruments $ 935 $ — $ 935 $ — $ — $ 935 Fair liability value of derivative instruments 25,693 (38,512 ) (12,819 ) — — (12,819 ) Long-term derivative liabilities included in other long-term liabilities, net 4,975 (5,977 ) (1,002 ) (1,002 ) Total at September 30, 2015 $ 31,603 $ (44,489 ) $ (12,886 ) $ — $ — $ (12,886 )
Partnership's Effect on Derivative Instruments on the Statement of Operations	(In thousands) The Effect of Derivative Instruments on the Statement of Operations Amount of (Gain) or Loss Recognized Derivatives Not Designated as Hedging Instruments Under Location of (Gain) or Loss Recognized in Income on Derivative Three Months Three Months Nine Months Nine Months Closed Positions Commodity contracts Cost of product (a) $ 8,177 $ 6,599 $ 16,978 $ 17,115 Commodity contracts Cost of installations and service (a) $ 72 $ 280 $ 848 $ 1,625 Commodity contracts Delivery and branch expenses (a) $ 150 $ 251 $ 1,029 $ 1,716 Closed Positions Commodity contracts (Increase) / decrease in the fair value of derivative instruments $ (11,283 ) $ (5,415 ) $ (20,071 ) $ (9,756 ) (a) Represents realized closed positions and includes the cost of options as they expire.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2016
Components of Inventory	The components of inventory were as follows (in thousands): June 30, 2016 September 30, 2015 Product $ 22,154 $ 35,599 Parts and equipment 20,297 20,072 Total inventory $ 42,451 $ 55,671

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Jun. 30, 2016
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): June 30, 2016 September 30, 2015 Property and equipment $ 179,516 $ 179,631 Less: accumulated depreciation 111,177 111,508 Property and equipment, net $ 68,339 $ 68,123

Goodwill and Intangibles, net (

Goodwill and Intangibles, net (Tables)	9 Months Ended
	Jun. 30, 2016
Summary of Changes in the Partnership's Goodwill	A summary of changes in the Partnership’s goodwill is as follows (in thousands): Balance as of September 30, 2015 $ 211,045 Fiscal year 2016 business combinations 1,631 Balance as of June 30, 2016 $ 212,676
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): June 30, 2016 September 30, 2015 Gross Gross Carrying Accum. Carrying Accum. Amount Amortization Net Amount Amortization Net Customer lists $ 326,878 $ 246,876 $ 80,002 $ 322,027 $ 236,438 $ 85,589 Trade names and other intangibles 27,093 6,089 21,004 26,774 5,046 21,728 Total $ 353,971 $ 252,965 $ 101,006 $ 348,801 $ 241,484 $ 107,317

Long-Term Debt and Bank Facil28

Long-Term Debt and Bank Facility Borrowings (Tables)	9 Months Ended
	Jun. 30, 2016
Partnership's Debt	The Partnership’s debt is as follows (in thousands): June 30, September 30, 2016 2015 Carrying Carrying Amount Fair Value (a) Amount Fair Value (a) Revolving Credit Facility Borrowings $ — $ — $ — $ — Senior Secured Term Loan 95,000 95,000 100,000 100,000 Total debt $ 95,000 $ 95,000 $ 100,000 $ 100,000 Total short-term portion of debt $ 15,000 $ 15,000 $ 10,000 $ 10,000 Total long-term portion of debt $ 80,000 $ 80,000 $ 90,000 $ 90,000 (a) The face amount of the Partnership’s variable rate long-term debt approximates fair value.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Jun. 30, 2016
Current and Deferred Income Tax Expenses	The current and deferred income tax expenses for the three and nine months ended June 30, 2016, and 2015 are as follows: Three Months Ended Nine Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Income (loss) before income taxes $ (4,993 ) $ (13,970 ) $ 110,595 $ 142,819 Current tax expense (benefit) $ (6,759 ) $ (6,433 ) $ 33,268 $ 51,339 Deferred tax expense 5,004 822 13,298 8,598 Total tax expense (benefit) $ (1,755 ) $ (5,611 ) $ 46,566 $ 59,937

Supplemental Disclosure of Ca30

Supplemental Disclosure of Cash Flow Information (Tables)	9 Months Ended
	Jun. 30, 2016
Supplemental Disclosure of Cash Flow Information	Nine Months Ended June 30, (in thousands) 2016 2015 Cash paid during the period for: Income taxes, net $ 15,411 $ 28,746 Interest $ 5,082 $ 13,283 Non-cash investing activities: Acquisition of NYC heating oil customer list $ — $ 886 Non-cash operating activities: Increase in interest expense—amortization of debt discount on 8.875% Senior Notes and amortization of deferred charges on senior secured term loan $ 214 $ 91

Earnings Per Limited Partner 31

Earnings Per Limited Partner Unit (Tables)	9 Months Ended
	Jun. 30, 2016
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: Three Months Ended Nine Months Ended Basic and Diluted Earnings Per Limited Partner: June 30, June 30, (in thousands, except per unit data) 2016 2015 2016 2015 Net income (loss) $ (3,238 ) $ (8,359 ) $ 64,029 $ 82,882 Less General Partner’s interest in net income (loss) (19 ) (47 ) 362 469 Net income (loss) available to limited partners (3,219 ) (8,312 ) 63,667 82,413 Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 — — 9,313 13,128 Limited Partner’s interest in net income (loss) under FASB ASC 260-10-45-60 $ (3,219 ) $ (8,312 ) $ 54,354 $ 69,285 Per unit data: Basic and diluted net income (loss) available to limited partners $ (0.06 ) $ (0.15 ) $ 1.11 $ 1.44 Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 — — 0.16 0.23 Limited Partner’s interest in net income (loss) under FASB ASC 260-10-45-60 $ (0.06 ) $ (0.15 ) $ 0.95 $ 1.21 Weighted average number of Limited Partner units outstanding 57,188 57,282 57,237 57,286

Partnership Organization - Addi

Partnership Organization - Additional Information (Detail) shares in Thousands	Jul. 30, 2015USD ($)	Jun. 30, 2016Customershares	Sep. 30, 2015shares
Limited Partners' Capital Account [Line Items]
Percentage of limited partner interest		99.43%
Percentage of general partner interest		0.57%
Common Stock
Limited Partners' Capital Account [Line Items]
Number of outstanding units | shares		57,187	57,282
Third Amendment
Limited Partners' Capital Account [Line Items]
Non Seasonal maximum borrowing capacity under revolving credit facility | $	$ 300,000,000
Maximum borrowing capacity (heating season December to April) under revolving credit facility | $	$ 450,000,000
Due date of debt	Jul. 30, 2020
Third Amendment | $100 million Term Loan
Limited Partners' Capital Account [Line Items]
Senior secured term loan maturity period	5 years
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		446,000
Number of customers to whom only home heating oil, gasoline and diesel fuel were sold on a delivery only basis		74,000
Number of customers to whom ancillary services were provided		26,000
Petroleum Heat and Power Co., Inc.
Limited Partners' Capital Account [Line Items]
Ownership interest of partnership		100.00%
General Partner
Limited Partners' Capital Account [Line Items]
Number of outstanding units | shares		326	326

Summary of Significant Accoun33

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	Apr. 29, 2016	Jun. 30, 2016	Sep. 30, 2015
Schedule Of Significant Accounting Policies [Line Items]
Accrued expenses and other current liabilities		$ 122,932,000	$ 107,745,000
Other long-term liabilities		25,492,000	$ 27,110,000
New England Teamsters & Trucking Industry Pension Fund
Schedule Of Significant Accounting Policies [Line Items]
Accrued expenses and other current liabilities		200,000
Other long-term liabilities		17,500,000
New England Teamsters & Trucking Industry Pension Fund | Significant Other Observable Inputs Level 2
Schedule Of Significant Accounting Policies [Line Items]
Multiemployer plan discounted withdrawal liability		18,400,000
Subsidiaries of Swiss Re
Schedule Of Significant Accounting Policies [Line Items]
Weather hedge contract, payment entitled to be received per heating degree-day shortfall		$ 35,000
Percentage in heating degree days less than ten year average that is covered		92.50%
Derivative maximum payout		$ 12,500,000
Receipt of cash from weather hedge contract	$ 12,500,000

Common Unit Repurchase Plans an

Common Unit Repurchase Plans and Retirement - Additional Information (Detail) - USD ($) shares in Thousands	Jul. 30, 2015	Jun. 30, 2016	Jul. 31, 2013	Jul. 31, 2012
Capital Unit [Line Items]
Partnership's common units authorized for repurchase		6,044
Third Amendment
Capital Unit [Line Items]
Availability required to repurchase common units	$ 45,000,000
Percentage of the maximum facility size on a historical proforma and forward-looking basis	15.00%
Non Seasonal maximum borrowing capacity under revolving credit facility	$ 300,000,000
Minimum fixed charge coverage ratio for distributions to unit holders or to repurchase common units	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

Partnership's Repurchase Activi

Partnership's Repurchase Activities (Detail) - $ / shares shares in Thousands		3 Months Ended		9 Months Ended	48 Months Ended
		Dec. 31, 2015	Mar. 31, 2015	Jun. 30, 2016	Sep. 30, 2015
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	1,400
Plan III Common Units Repurchase Program
Capital Unit [Line Items]
Partnership's common units authorized for repurchase				4,894
Total Number of Units Purchased	[1]	3	92	95	3,742	[2]
Average Price Paid per Unit	[3]	$ 7.02	$ 7.49	$ 7.48	$ 4.72	[2]
Maximum Number of Units that May Yet Be Purchased		2,299	2,207	2,207	2,302	[2]
[1]	Units were repurchased as part of a publicly announced program, except as noted in a private transaction.
[2]	Includes 1.4 million common units acquired in a private transaction.
[3]	Amounts include repurchase costs.

Partnership's Repurchase Acti36

Partnership's Repurchase Activities (Parenthetical) (Detail) - shares shares in Thousands	Jun. 30, 2016	Sep. 30, 2015
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	1,400

Derivatives and Hedging-Discl37

Derivatives and Hedging-Disclosures and Fair Value Measurements - Additional Information (Detail) gal in Millions, $ in Millions	9 Months Ended
	Jun. 30, 2016USD ($)gal	Jun. 30, 2015gal	Sep. 30, 2015USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Aggregated cash posted as collateral in normal course of business | $	$ 3.1
Hedging positions and payable amounts secured under credit facility | $	0.1		$ 15.3
Prepaid expenses and other current assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Aggregated cash posted as collateral in normal course of business | $	$ 3.1
Call Option
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	4.5	4.4
Put Option
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	4.1	2.7
Synthetic calls | Call Option
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	60	60.2
Inventory
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	6.6	5.2
Swap Contracts | Long
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	1.1
Future Contracts | Long
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	54	7
Future Contracts | Short
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	70.1	21.8
Spread Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	0.7
Hedge its Internal Fuel Usage and Other Related Activities Swap Contracts Bought
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	5.9	3

Partnership's 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 ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	$ 13,720	$ 31,603
Derivative Liabilities, commodity contracts	(9,511)	(44,489)
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	12,309	26,628
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		(41,270)
Cash Collateral
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liabilities, commodity contracts	8,976	2,758
Other long-term liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts		4,975
Derivative Liabilities, commodity contracts		(5,977)
Deferred Charges and Other Assets, Net, and Other Long-Term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	1,411
Derivative Liabilities, commodity contracts	(535)
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	2,980	2,947
Derivative Liabilities, commodity contracts	(3,702)	720
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	2,533	930
Quoted Prices in Active Markets for Identical Assets Level 1 | Cash Collateral
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liabilities, commodity contracts	3,258	2,758
Quoted Prices in Active Markets for Identical Assets Level 1 | Other long-term liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts		2,017
Derivative Liabilities, commodity contracts		(2,038)
Quoted Prices in Active Markets for Identical Assets Level 1 | Deferred Charges and Other Assets, Net, and Other Long-Term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	447
Derivative Liabilities, commodity contracts	(444)
Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	10,740	28,656
Derivative Liabilities, commodity contracts	(5,809)	(45,209)
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	9,776	25,698
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		(41,270)
Significant Other Observable Inputs Level 2 | Cash Collateral
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liabilities, commodity contracts	5,718
Significant Other Observable Inputs Level 2 | Other long-term liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts		2,958
Derivative Liabilities, commodity contracts		$ (3,939)
Significant Other Observable Inputs Level 2 | Deferred Charges and Other Assets, Net, and Other Long-Term Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	964
Derivative Liabilities, commodity contracts	$ (91)

Offsetting of Financial Assets

Offsetting of Financial Assets (Liabilities) and Derivative Assets (liabilities) (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Net Assets (Liabilities) Presented in the Statement of Financial Position	$ 4,260	$ 935
Net Assets (Liabilities) Presented in the Statement of Financial Position	(927)	(12,819)
Subject to an enforceable master netting arrangement
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Gross Assets Recognized	13,720	31,603
Gross Liabilities Offset in the Statement of Financial Position	(9,511)	(44,489)
Net Assets (Liabilities) Presented in the Statement of Financial Position	4,209	(12,886)
Financial Instruments	0	0
Cash Collateral Received	0	0
Net Amount	4,209	(12,886)
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	6,754	935
Gross Liabilities Offset in the Statement of Financial Position	(2,494)
Net Assets (Liabilities) Presented in the Statement of Financial Position	4,260	935
Financial Instruments	0	0
Cash Collateral Received	0	0
Net Amount	4,260	935
Subject to an enforceable master netting arrangement | Deferred charges and other assets, net
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Gross Assets Recognized	1,401
Gross Liabilities Offset in the Statement of Financial Position	(523)
Net Assets (Liabilities) Presented in the Statement of Financial Position	878
Financial Instruments	0
Cash Collateral Received	0
Net Amount	878
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	5,555	25,693
Gross Liabilities Offset in the Statement of Financial Position	(6,482)	(38,512)
Net Assets (Liabilities) Presented in the Statement of Financial Position	(927)	(12,819)
Financial Instruments	0	0
Cash Collateral Received	0	0
Net Amount	(927)	(12,819)
Subject to an enforceable master netting arrangement | Other long-term liabilities
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Gross Assets Recognized	10	4,975
Gross Liabilities Offset in the Statement of Financial Position	(12)	(5,977)
Net Assets (Liabilities) Presented in the Statement of Financial Position	(2)	(1,002)
Financial Instruments	0	0
Cash Collateral Received	0	0
Net Amount	$ (2)	$ (1,002)

Effect of Derivative Instrument

Effect of Derivative Instruments on Statement of Operations (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) or Loss Unrealized, commodity contracts		$ (11,283)	$ (5,415)	$ (20,071)	$ (9,756)
Closed Positions
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) or Loss Unrealized, commodity contracts		(11,283)	(5,415)	(20,071)	(9,756)
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Cost of product | Closed Positions
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) or Loss Recognized, commodity contracts	[1]	8,177	6,599	16,978	17,115
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Cost of installations and service | Closed Positions
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) or Loss Recognized, commodity contracts	[1]	72	280	848	1,625
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Delivery and branch expenses | Closed Positions
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) or Loss Recognized, commodity contracts	[1]	$ 150	$ 251	$ 1,029	$ 1,716
[1]	Represents realized closed positions and includes the cost of options as they expire.

Components of Inventory (Detail

Components of Inventory (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Inventory [Line Items]
Product	$ 22,154	$ 35,599
Parts and equipment	20,297	20,072
Total inventory	$ 42,451	$ 55,671

Component of Property and Equip

Component of Property and Equipment and their Estimated Useful Lives (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Property and equipment	$ 179,516	$ 179,631
Less: accumulated depreciation	111,177	111,508
Property and equipment, net	$ 68,339	$ 68,123

Business Combinations - Additio

Business Combinations - Additional Information (Detail) $ in Thousands	9 Months Ended
	Jun. 30, 2016USD ($)PartnershipUnit	Sep. 30, 2015USD ($)
Business Acquisition [Line Items]
Number of dealers acquired | PartnershipUnit	3
Goodwill	$ 212,676	$ 211,045
Heating Oil Dealer, Motor Fuel Dealer and Propane Dealer
Business Acquisition [Line Items]
Aggregate purchase prices partnership acquired	8,800
Aggregate purchase price allocation, intangible assets	5,200
Goodwill	1,600
Aggregate purchase price allocation, fixed assets	2,200
Gross purchase price reduced by working capital credits	$ 200

Summary of Changes in the Partn

Summary of Changes in the Partnership's Goodwill (Detail) $ in Thousands	9 Months Ended
	Jun. 30, 2016USD ($)
Goodwill [Line Items]
Balance on beginning	$ 211,045
Fiscal year business combinations	1,631
Balance on ending	$ 212,676

Intangible Assets Subject to Am

Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 353,971	$ 348,801
Accum. Amortization	252,965	241,484
Net	101,006	107,317
Customer Lists
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	326,878	322,027
Accum. Amortization	246,876	236,438
Net	80,002	85,589
Trade Names And Other Intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	27,093	26,774
Accum. Amortization	6,089	5,046
Net	$ 21,004	$ 21,728

Goodwill and Intangibles, net -

Goodwill and Intangibles, net - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense for intangible assets	$ 11.5	$ 10

Partnership's Debt (Detail)

Partnership's Debt (Detail) - USD ($) $ in Thousands		Jun. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Long-term debt, carrying Amount		$ 95,000	$ 100,000
Current maturities of long-term debt, carrying Amount		15,000	10,000
Long-term portion of debt, Carrying Amount		80,000	90,000
Long-term debt, fair value	[1]	95,000	100,000
Current maturities of long-term debt, fair value	[1]	15,000	10,000
Long-term portion of debt, fair value	[1]	80,000	90,000
$100 million Term Loan
Debt Instrument [Line Items]
Long-term debt, carrying Amount		95,000	100,000
Long-term debt, fair value	[1]	$ 95,000	$ 100,000
[1]	The face amount of the Partnership's variable rate long-term debt approximates fair value.

Long-Term Debt and Bank Facil48

Long-Term Debt and Bank Facility Borrowings - Additional Information (Detail) - USD ($)	Jul. 30, 2015	Jun. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Long-term debt, carrying Amount		$ 95,000,000	$ 100,000,000
Current maturities of long-term debt		15,000,000	10,000,000
Hedging positions and payable amounts secured under credit facility		100,000	15,300,000
Letters of credit issued and outstanding		49,100,000	54,800,000
Availability in compliance with the fixed charge coverage ratio		221,900,000	176,000,000
$100 million Term Loan
Debt Instrument [Line Items]
Long-term debt, carrying Amount		95,000,000	100,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility outstanding		$ 0	$ 0
Third Amendment
Debt Instrument [Line Items]
Non Seasonal maximum borrowing capacity under revolving credit facility	$ 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
Revolving credit facility expiry	Jul. 30, 2020
Additional revolving credit	$ 100,000,000
Facility size that can be increased without consulting bank group	$ 100,000,000
Term loan annual payment percentage	25.00%
Debt instrument, effective interest rate		3.58%
Minimum fixed charge coverage ratio	110.00%
Availability percentage to maximum facility size	12.50%
Third Amendment | $100 million Term Loan
Debt Instrument [Line Items]
Outstanding senior notes	$ 100,000,000
Senior secured term loan maturity period	5 years
Third Amendment | $100 million Term Loan
Debt Instrument [Line Items]
Long-term debt, carrying Amount		$ 95,000,000
Current maturities of long-term debt		$ 5,000,000
Third Amendment | Quarterly
Debt Instrument [Line Items]
Term loan periodic payment	$ 2,500,000
Third Amendment | December through April
Debt Instrument [Line Items]
Commitment fee on the unused portion of the facility	0.30%
Third Amendment | May through November
Debt Instrument [Line Items]
Commitment fee on the unused portion of the facility	0.20%
Third Amendment | Maximum | Annually
Debt Instrument [Line Items]
Term loan periodic payment	$ 15,000,000
Third Amendment | Maximum | Quarters ending June or September
Debt Instrument [Line Items]
Senior secured leverage ratio	300.00%
Third Amendment | Maximum | Quarters ending December or March
Debt Instrument [Line Items]
Senior secured leverage ratio	450.00%

Current and Deferred Income Tax

Current and Deferred Income Tax Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Deferred Income Tax Assets And Liabilities
Income (loss) before income taxes	$ (4,993)	$ (13,970)	$ 110,595	$ 142,819
Current tax expense (benefit)	(6,759)	(6,433)	33,268	51,339
Deferred tax expense	5,004	822	13,298	8,598
Total tax expense (benefit)	$ (1,755)	$ (5,611)	$ 46,566	$ 59,937

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	Jan. 01, 2016	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Net operating loss carryforward	$ 3,900,000
Increase in valuation allowance		$ 500,000
Valuation allowance		3,500,000
Unrecognized income tax benefits		$ 0
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
Income Tax Disclosure [Abstract]
Annual limitation of federal NOLs	$ 1,000,000
Expiration date of net operating loss carryforward	Dec. 31, 2018
Maximum
Income Tax Disclosure [Abstract]
Annual limitation of federal NOLs	$ 2,200,000
Expiration date of net operating loss carryforward	Dec. 31, 2024

Supplemental Disclosure of Ca51

Supplemental Disclosure of Cash Flow Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash paid during the period for:
Income taxes, net	$ 15,411	$ 28,746
Interest	5,082	13,283
Non-cash investing activities:
Acquisition of NYC heating oil customer list		886
Non-cash operating activities:
Increase in interest expense-amortization of debt discount on 8.875% Senior Notes and amortization of deferred charges on senior secured term loan	$ 214	$ 91

Supplemental Disclosure of Ca52

Supplemental Disclosure of Cash Flow Information (Parenthetical) (Detail)	Jun. 30, 2016	Jun. 30, 2015
8.875% Senior Notes
Supplemental Cash Flow Information [Abstract]
Interest on senior notes	8.875%	8.875%

Net Income Allocation and Per U

Net Income Allocation and Per Unit Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Basic and Diluted Earnings Per Limited Partner:
Net income (loss)		$ (3,238)	$ (8,359)	$ 64,029	$ 82,882
Less General Partner's interest in net income (loss)		(19)	(47)	362	469
Net income (loss) available to limited partners		(3,219)	(8,312)	63,667	82,413
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60				9,313	13,128
Limited Partner's interest in net income (loss) under FASB ASC 260-10-45-60		$ (3,219)	$ (8,312)	$ 54,354	$ 69,285
Per unit data:
Basic and diluted net income (loss) available to limited partners		$ (0.06)	$ (0.15)	$ 1.11	$ 1.44
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60				0.16	0.23
Limited Partner's interest in net income (loss) under FASB ASC 260-10-45-60	[1]	$ (0.06)	$ (0.15)	$ 0.95	$ 1.21
Weighted average number of Limited Partner units outstanding		57,188	57,282	57,237	57,286
[1]	See Note 13 Earnings Per Limited Partner Unit.

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	Jul. 31, 2016	Jun. 30, 2016	Jun. 30, 2015
Subsequent Event [Line Items]
Payment to acquire customer lists and propane dealership		$ 8,829	$ 1,069
Subsequent Event
Subsequent Event [Line Items]
Payment to acquire customer lists and propane dealership	$ 1,000
Subsequent Event | Dividend Declared
Subsequent Event [Line Items]
Distribution declared	$ 0.1025
Partners capital projected distribution amount on annualized basis	0.41
Minimum dividend distribution per unit	$ 0.0675
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	$ 5,900
Amount to paid to the General Partner	130
Incentive distribution to the General Partner	100
Incentive distributions to management	$ 100
Dividend payable date	Aug. 9, 2016
Dividend record date	Aug. 1, 2016