Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SGU | |
Title of 12(b) Security | Common Unit | |
Security Exchange Name | NYSE | |
Entity Registrant Name | STAR GROUP, L.P. | |
Entity Central Index Key | 0001002590 | |
Entity Tax Identification Number | 06-1437793 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-14129 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 46,243,707 | |
Entity Address, Address Line One | 9 West Broad Street | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06902 | |
City Area Code | (203) | |
Local Phone Number | 328-7310 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 14,542 | $ 4,899 |
Receivables, net of allowance of $8,499 and $8,378, respectively | 205,038 | 120,245 |
Inventories | 80,261 | 64,788 |
Fair asset value of derivative instruments | 1,247 | |
Prepaid expenses and other current assets | 38,909 | 36,898 |
Total current assets | 339,997 | 226,830 |
Property and equipment, net | 96,512 | 98,239 |
Operating lease right-of-use assets | 103,492 | |
Goodwill | 244,574 | 244,574 |
Intangibles, net | 103,537 | 107,688 |
Restricted cash | 250 | 250 |
Captive insurance collateral | 62,703 | 58,490 |
Deferred charges and other assets, net | 18,083 | 16,635 |
Total assets | 969,148 | 752,706 |
Current liabilities | ||
Accounts payable | 47,302 | 33,973 |
Revolving credit facility borrowings | 112,688 | 24,000 |
Fair liability value of derivative instruments | 1,893 | 8,262 |
Current maturities of long-term debt | 9,750 | 9,000 |
Current portion of operating lease liabilities | 20,202 | |
Accrued expenses and other current liabilities | 132,837 | 120,839 |
Unearned service contract revenue | 70,087 | 61,213 |
Customer credit balances | 52,766 | 68,270 |
Total current liabilities | 447,525 | 325,557 |
Long-term debt | 119,525 | 120,447 |
Long-term operating lease liabilities | 88,707 | |
Deferred tax liabilities, net | 21,655 | 20,116 |
Other long-term liabilities | 20,838 | 25,746 |
Partners’ capital | ||
Common unitholders | 289,268 | 279,709 |
General partner | (1,991) | (1,968) |
Accumulated other comprehensive loss, net of taxes | (16,379) | (16,901) |
Total partners’ capital | 270,898 | 260,840 |
Total liabilities and partners’ capital | $ 969,148 | $ 752,706 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance | $ 8,499 | $ 8,378 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Sales: | |||
Total sales | $ 508,945 | $ 535,027 | |
Cost and expenses: | |||
(Increase) decrease in the fair value of derivative instruments | [1] | (6,417) | 31,039 |
Delivery and branch expenses | 96,726 | 102,673 | |
Depreciation and amortization expenses | 9,050 | 7,745 | |
General and administrative expenses | 6,506 | 7,815 | |
Finance charge income | (713) | (851) | |
Operating income | 42,451 | 6,063 | |
Interest expense, net | (2,679) | (2,516) | |
Amortization of debt issuance costs | (235) | (259) | |
Income before income taxes | 39,537 | 3,288 | |
Income tax expense | 11,782 | 973 | |
Net income | 27,755 | 2,315 | |
General Partner’s interest in net income | 192 | 15 | |
Limited Partners’ interest in net income | $ 27,563 | $ 2,300 | |
Basic and diluted income per Limited Partner Unit: | [2] | $ 0.49 | $ 0.04 |
Weighted average number of Limited Partner units outstanding: | |||
Basic and Diluted | 47,266 | 52,905 | |
Product | |||
Sales: | |||
Total sales | $ 432,688 | $ 458,707 | |
Installations and services | |||
Sales: | |||
Total sales | 76,257 | 76,320 | |
Cost of product | |||
Cost and expenses: | |||
Cost and expenses | 287,673 | 306,226 | |
Cost of installations and services | |||
Cost and expenses: | |||
Cost and expenses | $ 73,669 | $ 74,317 | |
[1] | Represents the change in value of unrealized open positions and expired options. | ||
[2] | See Note 16 - Earnings Per Limited Partner Unit. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 27,755 | $ 2,315 | |
Other comprehensive income: | |||
Unrealized gain on pension plan obligation | [1] | 455 | 454 |
Tax effect of unrealized gain on pension plan obligation | (125) | (124) | |
Unrealized gain (loss) on captive insurance collateral | (64) | 389 | |
Tax effect of unrealized gain (loss) on captive insurance collateral | 8 | (82) | |
Unrealized gain (loss) on interest rate hedges | 334 | (745) | |
Tax effect of unrealized gain (loss) on interest rate hedges | (86) | 197 | |
Total other comprehensive income | 522 | 89 | |
Total comprehensive income | $ 28,277 | $ 2,404 | |
[1] | This item is included in the computation of net periodic pension cost. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL - USD ($) shares in Thousands, $ in Thousands | Total | General Partner | Common Stock | Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance at Sep. 30, 2018 | $ 309,785 | $ (1,303) | $ 329,129 | $ (18,041) | ||
Beginning Balance, unit at Sep. 30, 2018 | 326 | 53,088 | ||||
Impact from adoption of ASU No. 2014-09 | 9,224 | $ 60 | $ 9,164 | |||
Net income | 2,315 | 15 | 2,300 | |||
Unrealized gain on pension plan obligation | 454 | [1] | 454 | |||
Tax effect of unrealized gain on pension plan obligation | (124) | (124) | ||||
Unrealized gain (loss) on captive insurance collateral | 389 | 389 | ||||
Tax effect of unrealized gain (loss) on captive insurance collateral | (82) | (82) | ||||
Unrealized gain (loss) on interest rate hedges | (745) | (745) | ||||
Tax effect of unrealized (gain) loss on interest rate hedges | 197 | 197 | ||||
Distributions | (6,413) | (188) | (6,225) | |||
Retirement of units | [2] | (5,735) | $ (5,735) | |||
Retirement of units, shares | [2] | (599) | ||||
Ending Balance at Dec. 31, 2018 | 309,265 | $ (1,416) | $ 328,633 | (17,952) | ||
Ending Balance, Unit at Dec. 31, 2018 | 326 | 52,489 | ||||
Beginning Balance at Sep. 30, 2019 | 260,840 | $ (1,968) | $ 279,709 | (16,901) | ||
Beginning Balance, unit at Sep. 30, 2019 | 326 | 47,685 | ||||
Net income | 27,755 | $ 192 | $ 27,563 | |||
Unrealized gain on pension plan obligation | 455 | [1] | 455 | |||
Tax effect of unrealized gain on pension plan obligation | (125) | (125) | ||||
Unrealized gain (loss) on captive insurance collateral | (64) | (64) | ||||
Tax effect of unrealized gain (loss) on captive insurance collateral | 8 | 8 | ||||
Unrealized gain (loss) on interest rate hedges | 334 | 334 | ||||
Tax effect of unrealized (gain) loss on interest rate hedges | (86) | (86) | ||||
Distributions | (6,155) | (215) | (5,940) | |||
Retirement of units | [2] | (12,064) | $ (12,064) | |||
Retirement of units, shares | [2] | (1,281) | ||||
Ending Balance at Dec. 31, 2019 | $ 270,898 | $ (1,991) | $ 289,268 | $ (16,379) | ||
Ending Balance, Unit at Dec. 31, 2019 | 326 | 46,404 | ||||
[1] | This item is included in the computation of net periodic pension cost. | |||||
[2] | See Note 4 – Common Unit Repurchase and Retirement. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows provided by (used in) operating activities: | |||
Net income | $ 27,755 | $ 2,315 | |
Adjustment to reconcile net income to net cash provided by (used in) operating activities: | |||
(Increase) decrease in the fair value of derivative instruments | [1] | (6,417) | 31,039 |
Depreciation and amortization | 9,285 | 8,004 | |
Provision for losses on accounts receivable | 1,010 | 1,529 | |
Change in deferred taxes | 1,336 | (616) | |
Changes in operating assets and liabilities: | |||
Increase in receivables | (85,745) | (95,743) | |
Increase in inventories | (15,427) | (20,187) | |
Increase in other assets | (2,394) | (3,235) | |
Increase in accounts payable | 14,375 | 8,206 | |
Decrease in customer credit balances | (15,898) | (14,120) | |
Increase in other current and long-term liabilities | 20,529 | 19,917 | |
Net cash used in operating activities | (51,591) | (62,891) | |
Cash flows provided by (used in) investing activities: | |||
Capital expenditures | (3,024) | (4,025) | |
Proceeds from sales of fixed assets | 63 | 644 | |
Purchase of investments | (4,206) | (4,456) | |
Acquisitions | (496) | (275) | |
Net cash used in investing activities | (7,663) | (8,112) | |
Cash flows provided by (used in) financing activities: | |||
Revolving credit facility borrowings | 90,202 | 92,500 | |
Revolving credit facility repayments | (39,014) | ||
Loan issuance | 130,000 | ||
Term loan repayments | (92,500) | ||
Distributions | (6,155) | (6,413) | |
Unit repurchases | (12,064) | (5,735) | |
Customer retainage payments | (299) | (57) | |
Payments of debt issue costs | (1,273) | (34) | |
Net cash provided by financing activities | 68,897 | 80,261 | |
Net increase in cash, cash equivalents, and restricted cash | 9,643 | 9,258 | |
Cash, cash equivalents, and restricted cash at beginning of period | 5,149 | 14,781 | |
Cash, cash equivalents, and restricted cash at end of period | $ 14,792 | $ 24,039 | |
[1] | Represents the change in value of unrealized open positions and expired options. |
Organization
Organization | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization | 1) Organization Star Group, L.P. (“Star,” the “Company,” “we,” “us,” or “our”) is a full service provider specializing in the sale of home heating and air conditioning products and services to residential and commercial home heating oil and propane customers. The Company has one reportable segment for accounting purposes. We also sell diesel fuel, gasoline and home heating oil on a delivery only basis, and in certain of our marketing areas, we provide plumbing services primarily to our home heating oil and propane customer base. We believe we are the nation’s largest retail distributor of home heating oil based upon sales volume. Including our propane locations, we serve customers in the more northern and eastern states within the Northeast, Central and Southeast U.S. regions. The Company is organized as follows: • Star is a limited partnership, which at December 31, 2019, had outstanding 46.4 million Common Units (NYSE: “SGU”), representing a 99.3% limited partner interest in Star, and 0.3 million general partner units, representing a 0.7% general partner interest in Star. Our general partner is Kestrel Heat, LLC, a Delaware limited liability company (“Kestrel Heat” or the “general partner”). The Board of Directors of Kestrel Heat (the “Board”) is appointed by its sole member, Kestrel Energy Partners, LLC, a Delaware limited liability company (“Kestrel”). Since November 1, 2017, Star elected to be treated as a corporation for Federal income tax purposes, so both Star and its subsidiaries (that were already taxable entities) are now subject to Federal and state corporate income taxes. As a result of this election, the Company issued its last Schedule K-1’s for the 2017 calendar year, and now issues Forms 1099-DIV to unitholders. • Star owns 100% of Star Acquisitions, Inc. (“SA”), a Minnesota corporation that owns 100% of Petro Holdings, Inc. (“Petro”). SA and its subsidiaries are subject to Federal and state corporate income taxes. Petro is primarily a Northeast, Central and Southeast U.S. region retail distributor of home heating oil and propane that at full service residential and commercial home heating oil and propane customers and 59,000 customers on a delivery only basis. We also sell gasoline and diesel fuel to approximately We install, maintain, and repair heating and air conditioning equipment and to a lesser extent provide these services outside our heating oil and propane customer base including approximately service contracts for natural gas and other heating systems • Petroleum Heat and Power Co., Inc. (“PH&P”) is a 100% owned subsidiary of Star. PH&P is the borrower and Star is the guarantor of the fifth amended and restated credit agreement’s $130 million 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 December 4, 2024. (See Note 11—Long-Term Debt and Bank Facility Borrowings) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2) Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements include the accounts of Star and its subsidiaries. All material intercompany 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 Company’s business, the results of operations and cash flows for the three-month period ended December 31, 2019 are not necessarily indicative of the results to be expected for the full year. These interim financial statements of the Company 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 (the “SEC”) and should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2019. 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 amortization on the Company’s pension plan obligation for its two frozen defined benefit pension plans, unrealized gain (loss) on available-for-sale investments, unrealized gain (loss) on interest rate hedge and the corresponding tax effects. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. At December 31, 2019, the $14.8 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $14.5 million of cash and cash equivalents and $0.3 million of restricted cash. At September 30, 2019, the $5.1 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $4.9 million of cash and cash equivalents and $0.3 million of restricted cash. Restricted cash represents deposits held by our captive insurance company that are required by state insurance regulations to remain in the captive insurance company as cash. Captive Insurance Collateral The captive insurance collateral is held by our captive insurance company in an irrevocable trust as collateral for certain workers’ compensation and automobile liability claims. The collateral is required by a third party insurance carrier that insures per claim amounts above a set deductible. Due to the expected timing of claim payments, the nature of the collateral agreement with the carrier, and our captive insurance company’s source of other operating cash, the collateral is not expected to be used to pay obligations within the next twelve months. At December 31, 2019, captive insurance collateral is comprised of $61.2 million of Level 1 debt securities measured at fair value and $1.5 million of mutual funds measured at net asset value. At September 30, 2019, the balance was comprised of $58.0 million of Level 1 debt securities measured at fair value and $0.5 million of mutual funds measured at net asset value. Unrealized gains and losses, net of related income taxes, are reported as accumulated other comprehensive gain (loss), except for losses from impairments which are determined to be other-than-temporary. Realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are included in the determination of net income and are included in Interest expense, net, at which time the average cost basis of these securities are adjusted to fair value. Weather Hedge Contract To partially mitigate the adverse effect of warm weather on cash flows, the Company has used weather hedge contracts for a number of years. Weather hedge contracts are recorded in accordance with the intrinsic value method defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-45-15 Derivatives and Hedging, Weather Derivatives (EITF 99-2). The premium paid is included in the caption “Prepaid expenses and other current assets” in the accompanying balance sheets and amortized over the life of the contract, with the intrinsic value method applied at each interim period. The Company entered into weather hedge contracts for fiscal years 2019, 2020 and 2021. Under these contracts, we are entitled to receive a payment if the total number of degree days within the hedge period is less than the prior ten year average. The “Payment Thresholds,” or strikes, are set at various levels. In addition, we will be obligated to make a payment capped at $5.0 million if degree days exceed the Payment Threshold which approximates the prior ten year average. The hedge period runs from November 1 through March 31, taken as a whole, for each respective fiscal year. For fiscal 2020 and 2021 the maximum that the Company can receive annually is $12.5 million and the maximum that the Company would be obligated to pay annually is $5.0 million. As of December 31, 2019, the Company recorded a charge of $3.0 million under this contract that increased delivery and branch expenses. As of December 31, 2018, the Company recorded a charge of $2.0 million under its contract and ultimately paid $2.1 million in April 2019 after the fiscal 2019 heating season. New England Teamsters and Trucking Industry Pension Fund (“the NETTI Fund”) Liability As of December 31, 2019, we had $0.2 million and $16.9 million balances 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 Company for long-term financing of a similar maturity, the fair value of the NETTI Fund withdrawal liability as of December 31, 2019 was $22.1 million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC Topic 842”). The update requires all leases with a term greater than twelve months to be recognized on the balance sheet by recording (i) a lease liability that represents a lessee’s obligation to make lease payments arising from a lease, measured at the present value of the remaining lease payments; and (2) a right-of-use (“ROU”) asset that represents the lessee’s right to use a specified asset for the lease term, measured in an amount equal to the lease liability adjusted for accrued lease payments. The standard also requires the disclosure of key information pertaining to leasing arrangements. A s of October 1, 2019, the Company adopted The adoption of ASC Topic 842 had a material impact to the Company’s Condensed Consolidated Balance Sheet, but did not impact the Condensed Consolidated Statement of Operations or Condensed Consolidated Statement of Partners’ Capital. The most significant changes to the Condensed Consolidated Balance Sheet relate to the recognition of the following as of October 1, 2019: “Operating lease right-of-use assets” in the amount of $104.7 million, “Current portion of operating lease liabilities” in the amount of $20.1 million and “Long-term operating lease liabilities” in the amount of $89.9 million. The adoption of ASC Topic 842 also had no impact on operating, investing, or financing cash flows in the Condensed Consolidated Statement of Cash Flows. However, ASC Topic has significantly affected the Company’s disclosures about noncash investing activities. Additionally, the Company’s lease-related disclosures have significantly increased as of and for the three months ended December 31, 2019 as compared to prior years. See Note 13 – Leases for further details on the adoption of ASC Topic 842. Recently Issued Accounting Pronouncements 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. The Company is evaluating the effect that ASU No. 2016-13 will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 230): Simplifying the Test for Goodwill Impairment. The update simplifies how an entity is required to test goodwill for impairment. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but not exceed the total amount of goodwill allocated to the reporting unit. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company has not determined the timing of adoption, but does not expect ASU 2017-04 to have a material impact on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-14 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2022, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-15 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3) Revenue Recognition The following disaggregates our revenue by major sources for the three months ended December 31, 2019 and December 31, 2018: Three Months Ended December 31, (in thousands) 2019 2018 Petroleum Products: Home heating oil and propane $ 343,346 $ 364,202 Other petroleum products 89,342 94,505 Total petroleum products 432,688 458,707 Installations and Services: Equipment installations 30,565 29,983 Equipment maintenance service contracts 27,908 28,319 Billable call services 17,784 18,018 Total installations and services 76,257 76,320 Total Sales $ 508,945 $ 535,027 Deferred Contract Costs We recognize an asset for incremental commission expenses paid to sales personnel in conjunction with obtaining new residential customer product and equipment maintenance service contracts. We defer these costs only when we have determined the commissions are, in fact, incremental and would not have been incurred absent the customer contract. Costs to obtain a contract are amortized and recorded ratably as delivery and branch expenses over the period representing the transfer of goods or services to which the assets relate. Costs to obtain new residential product and equipment maintenance service contracts are amortized as expense over the estimated customer relationship period of approximately five years. Deferred contract costs are classified as current or non-current within “Prepaid expenses and other current assets” and “Deferred charges and other assets, net,” respectively. At December 31, 2019 the amount of deferred contract costs included in “Prepaid expenses and other current assets” and “Deferred charges and other assets, net” was $3.5 million and $6.4 million, respectively. For the quarter ended December 31, 2019 we recognized expense of $1.0 million associated with the amortization of deferred contract costs within “Delivery and branch expenses” in the Condensed Consolidated Statement of Operations. Contract Liability Balances The Company has contract liabilities for advanced payments received from customers for future oil deliveries (primarily amounts received from customers on “smart pay” budget payment plans in advance of oil deliveries) and obligations to service customers with equipment maintenance service contracts. Contract liabilities are recognized straight-line over the service contract period, generally one year or less. As of December 31, 2019 and September 30, 2019 the Company had contract liabilities of $120.5 million and $127.0 million, respectively. During the quarter ended December 31, 2019 the Company recognized $71.5 million of revenue that was included in the September 30, 2019 contract liability balance. |
Common Unit Repurchase and Reti
Common Unit Repurchase and Retirement | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common Unit Repurchase and Retirement | 4) Common Unit Repurchase and Retirement In July 2012, the Board adopted a plan to repurchase certain of the Company’s Common Units that was amended in fiscal 2018 (the “Repurchase Plan”). Through August 2019, the Company had repurchased approximately 9.5 million Common Units under the Repurchase Plan. In August 2019, the Board authorized an increase of the number of Common Units that remained available for the Company to repurchase from 1.3 million to a total of 2.3 million, of which 1.0 million were available for repurchase in open market transactions and 1.3 million were available for repurchase in privately-negotiated transactions. During the first fiscal quarter of 2020, the Company repurchased approximately 0.7 million Common Units in open market transactions under the Repurchase Plan and 0.3 million Common Units remained available for repurchase at the end of the first fiscal quarter of 2020. There is no guarantee of the exact number of units that will be purchased under the Repurchase Plan and the Company may discontinue purchases at any time. The Repurchase Plan does not have a time limit. The Board may also approve additional purchases of units from time to time in private transactions. The Company’s repurchase activities take into account SEC safe harbor rules and guidance for issuer repurchases. All of the Common Units purchased in the Repurchase Plan will be retired. Under the Company’s fifth amended and restated credit agreement dated December 4, 2019, in order to repurchase Common Units we must maintain Availability (as defined in the fifth amended and restated credit agreement) of $45 million, 15.0% of the facility size of $300 million (assuming the non-seasonal aggregate commitment is outstanding) on a historical pro forma and forward-looking basis, and a fixed charge coverage ratio of not less than 1.15 measured as of the date of repurchase. The Company was in compliance with this covenant as of December 31, 2019. The following table shows repurchases under the Repurchase Plan. (in thousands, except per unit amounts) Period Total Number of Units Purchased Average Price Paid per Unit (a) Total Number of Units Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Units that May Yet Be Purchased Fiscal year 2012 to 2019 total 13,340 $ 8.08 10,896 956 October 2019 223 $ 9.44 223 733 November 2019 261 $ 9.39 261 472 December 2019 797 $ 9.42 166 306 (b) First quarter fiscal year 2020 total 1,281 $ 9.42 650 306 January 2020 160 $ 9.48 160 146 (c) (a) Amount includes repurchase costs. (b) First quarter of fiscal year 2020 Common Units repurchased include 0.6 million Common Units acquired in a private transaction. (c ) Of the total available for repurchase, less than 0.1 million are available for repurchase in open market transactions and 0.1 million are available for repurchase in privately-negotiated transactions. |
Captive Insurance Collateral
Captive Insurance Collateral | 3 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Captive Insurance Collateral | 5) Captive Insurance Collateral The Company considers all of its captive insurance collateral to be available-for-sale investments. Investments at December 31, 2019 consist of the following (in thousands): Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value Cash and Receivables $ 1,502 $ — $ — $ 1,502 U.S. Government Sponsored Agencies 32,397 144 (1 ) 32,540 Corporate Debt Securities 23,787 753 — 24,540 Foreign Bonds and Notes 4,052 69 — 4,121 Total $ 61,738 $ 966 $ (1 ) $ 62,703 Investments at September 30, 2019 consist of the following (in thousands): Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value Cash and Receivables $ 509 $ — $ — $ 509 U.S. Government Sponsored Agencies 29,055 198 (3 ) 29,250 Corporate Debt Securities 23,831 773 — 24,604 Foreign Bonds and Notes 4,066 61 — 4,127 Total $ 57,461 $ 1,032 $ (3 ) $ 58,490 Maturities of investments were as follows at December 31, 2019 (in thousands): Net Carrying Amount Due within one year $ 9,946 Due after one year through five years 41,173 Due after five years through ten years 11,584 Total $ 62,703 |
Derivatives and Hedging-Disclos
Derivatives and Hedging-Disclosures and Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging-Disclosures and Fair Value Measurements | 6) Derivatives and Hedging—Disclosures and Fair Value Measurements The Company 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. 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 Company has elected not to designate its commodity derivative instruments as hedging derivatives, but rather as economic hedges whose change in fair value is recognized in its statement of operations in the caption “(Increase) decrease in the fair value of derivative instruments.” Depending on the risk being economically hedged, realized gains and losses are recorded in cost of product, cost of installations and services, or delivery and branch expenses. As of December 31, 2019, to hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers, the Company held the following derivative instruments that settle in future months to match anticipated sales: 17.2 million gallons of swap contracts, 7.4 million gallons of call options, 7.2 million gallons of put options, and 85.8 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 Company, as of December 31, 2019, 18.2 million gallons of long future contracts, and 42.1 million gallons of short future contracts that settle in future months. To hedge its internal fuel usage and other activities for fiscal 2020, the Company, as of December 31, 2019, had 4.0 million gallons of swap contracts and 0.2 million gallons of short swap contracts that settle in future months. As of December 31, 2018, to hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers, the Company held the following derivative instruments that settle in future months to match anticipated sales: 14.0 million gallons of swap contracts, 7.9 million gallons of call options, 6.4 million gallons of put options, and 92.4 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 Company, as of December 31, 2018, had 18.3 million gallons of long future contracts, and 41.2 million gallons of short future contracts that settle in future months. To hedge its internal fuel usage and other related activities for fiscal 2019, the Company, as of December 31, 2018, had 4.3 million gallons of swap contracts and 2.0 million gallons of short swap contracts that settle in future months. In August 2018, the Company entered into interest rate swap agreements in order to mitigate exposure to market risk associated with variable rate interest on $50.0 million, or 50%, of its long term debt. The Company has designated its interest rate swap agreements as cash flow hedging derivatives. To the extent these derivative instruments are effective and the standard’s documentation requirements have been met, changes in fair value are recognized in other comprehensive income until the underlying hedged item is recognized in earnings. As of December 31, 2019, the notional value of the swap contracts was $43.8 million and the fair value of the swap contracts was $(1.6 million). As of September 30, 2019, the notional value of the swap contracts was $45.0 million and the fair value of the swap contracts was $(2.0) million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of the swap contracts. The Company’s derivative instruments are with the following counterparties: Bank of America, N.A., Bank of Montreal, Cargill, Inc., Citibank, N.A., JPMorgan Chase Bank, N.A., Key Bank, N.A., Regions Financial Corporation, Toronto-Dominion Bank and Wells Fargo Bank, N.A. The Company 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 Company generally does not receive cash collateral from its counterparties and does not restrict the use of cash collateral it maintains at counterparties. At December 31, 2019, the aggregate cash posted as collateral in the normal course of business at counterparties was $2.8 million and recorded in “Prepaid expense and other current assets.” Positions with counterparties who are also parties to our credit agreement are collateralized under that facility. As of December 31, 2019, $1.2 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 Company’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 Company’s Level 2 derivative assets and liabilities represent the fair value of commodity and interest rate 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 Company 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 Company. The Company’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 Company are based on a combination of the NYMEX published market prices and other inputs, including such factors as present value, volatility and duration. The Company had no assets or liabilities that are measured at fair value on a nonrecurring basis subsequent to their initial recognition. The Company’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 Identical Assets Significant Other Observable Inputs Under FASB ASC 815-10 Balance Sheet Location Total Level 1 Level 2 Asset Derivatives at December 31, 2019 Commodity contracts Fair asset and liability value of derivative instruments $ 7,106 $ — $ 7,106 Commodity contracts Long-term derivative assets included in the deferred charges and other assets, net and other long-term liabilities, net balances 895 — 895 Commodity contract assets at December 31, 2019 $ 8,001 $ — $ 8,001 Liability Derivatives at December 31, 2019 Commodity contracts Fair asset and liability value of derivative instruments $ (7,752 ) $ — $ (7,752 ) Commodity contracts Long-term derivative liabilities included in the deferred charges and other assets, net and other long-term liabilities, net balances (1,025 ) — (1,025 ) Commodity contract liabilities at December 31, 2019 $ (8,777 ) $ — $ (8,777 ) Asset Derivatives at September 30, 2019 Commodity contracts Fair liability value of derivative instruments $ 13,824 $ — $ 13,824 Commodity contracts Long-term derivative assets included in the deferred charges and other assets, net balance and other long term liabilities, net 1,466 — 1,466 Commodity contract assets September 30, 2019 $ 15,290 $ — $ 15,290 Liability Derivatives at September 30, 2019 Commodity contracts Fair liability value of derivative instruments $ (22,086 ) $ — $ (22,086 ) Commodity contracts Long-term derivative liabilities included in the deferred charges and other assets, net balance and other long term liabilities, net (1,719 ) — (1,719 ) Commodity contract liabilities September 30, 2019 $ (23,805 ) $ — $ (23,805 ) The Company’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table. (In thousands) Gross Amounts Not Offset in the Statement of Financial Position Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities) Gross Assets Recognized Gross Liabilities Offset in the Statement of Financial Position Net Assets (Liabilities) Presented Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Fair asset value of derivative instruments $ 2,815 $ (1,568 ) $ 1,247 $ — $ — $ 1,247 Long-term derivative assets included in deferred charges and other assets, net 29 (27 ) 2 — — 2 Fair liability value of derivative instruments 4,291 (6,184 ) (1,893 ) — — (1,893 ) Long-term derivative liabilities included in other long-term liabilities, net 866 (998 ) (132 ) — — (132 ) Total at December 31, 2019 $ 8,001 $ (8,777 ) $ (776 ) $ — $ — $ (776 ) Fair asset value of derivative instruments $ — $ — $ — $ — $ — $ — Long-term derivative assets included in other long-term assets, net 16 (16 ) — — — — Fair liability value of derivative instruments 13,824 (22,086 ) (8,262 ) — — (8,262 ) Long-term derivative liabilities included in other long-term liabilities, net 1,450 (1,703 ) (253 ) — — (253 ) Total at September 30, 2019 $ 15,290 $ (23,805 ) $ (8,515 ) $ — $ — $ (8,515 ) (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 FASB ASC 815-10 Location of (Gain) or Loss Recognized in Income on Derivative Three Months Ended December 31, 2019 Three Months Ended December 31, 2018 Commodity contracts Cost of product (a) $ 6,049 $ (6,152 ) Commodity contracts Cost of installations and service (a) $ (9 ) $ 247 Commodity contracts Delivery and branch expenses (a) $ (29 ) $ 166 Commodity contracts (Increase) / decrease in the fair value of derivative instruments (b) $ (6,417 ) $ 31,039 (a) Represents realized closed positions and includes the cost of options as they expire. (b) Represents the change in value of unrealized open positions and expired options. |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 7) Inventories The Company’s product inventories are stated at the lower of cost and net realizable value computed on the weighted average cost method. All other inventories, representing parts and equipment are stated at the lower of cost and net realizable value using the FIFO method. The components of inventory were as follows (in thousands): December 31, 2019 September 30, 2019 Product $ 59,343 $ 43,536 Parts and equipment 20,918 21,252 Total inventory $ 80,261 $ 64,788 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 8) Property and Equipment Property and equipment are stated at cost. Depreciation is computed over the estimated useful lives of the depreciable assets using the straight-line method (in thousands): December 31, 2019 September 30, 2019 Property and equipment $ 232,423 $ 230,690 Less: accumulated depreciation 135,911 132,451 Property and equipment, net $ 96,512 $ 98,239 |
Business Combinations
Business Combinations | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | 9) Business Combinations During the first quarter of fiscal year 2020, the Company acquired the customer list and the assets of a heating oil dealer for an aggregate purchase price of approximately $0.5 million. |
Intangibles, net
Intangibles, net | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangibles, net | 10) Intangibles, net The gross carrying amount and accumulated amortization of intangible assets subject to amortization are as follows (in thousands): December 31, 2019 September 30, 2019 Gross Gross Carrying Accum. Carrying Accum. Amount Amortization Net Amount Amortization Net Customer lists $ 383,388 $ 301,933 $ 81,455 $ 382,373 $ 297,221 $ 85,152 Trade names and other intangibles 37,853 15,771 22,082 37,739 15,203 22,536 Total $ 421,241 $ 317,704 $ 103,537 $ 420,112 $ 312,424 $ 107,688 Amortization expense for intangible assets was $5.3 million for the three months ended December 31, 2019, compared to $4.6 million for the three months ended December 31, 2018. |
Long-Term Debt and Bank Facilit
Long-Term Debt and Bank Facility Borrowings | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Bank Facility Borrowings | 11) Long-Term Debt and Bank Facility Borrowings The Company’s debt is as follows (in thousands): December 31, September 30, 2019 2019 Carrying Amount Fair Value (a) Carrying Amount Fair Value (a) Revolving Credit Facility Borrowings $ 112,688 $ 112,688 $ 61,500 $ 61,500 Senior Secured Term Loan (b) 129,275 130,000 91,947 92,500 Total debt $ 241,963 $ 242,688 $ 153,447 $ 154,000 Total short-term portion of debt $ 122,438 $ 122,438 $ 33,000 $ 33,000 Total long-term portion of debt $ 119,525 $ 120,250 $ 120,447 $ 121,000 (a) The face amount of the Company’s variable rate long-term debt approximates fair value. (b) Carrying amounts are net of unamortized debt issuance costs of $0.7 million as of December 31, 2019 and $0.6 million as of September 30, 2019. On December 4, 2019, the Company refinanced its five-year term loan and the revolving credit facility with the execution of the fifth amended and restated revolving credit facility agreement with a bank syndicate currently comprised of eleven participants, which enables the Company to borrow up to The Company can increase the revolving credit facility size by $200 million without the consent of the bank group. However, the bank group is not obligated to fund the $200 million increase. If the bank group elects not to fund the increase, the Company can add additional lenders to the group, with the consent of the Agent (as defined in the credit agreement), which shall not be unreasonably withheld. Obligations under the fifth amended and restated credit facility are guaranteed by the Company and its subsidiaries and are secured by liens on substantially all of the Company’s assets, including accounts receivable, inventory, general intangibles, real property, fixtures and equipment. All amounts outstanding under the fifth amended and restated revolving credit facility become due and payable on the facility termination date of December 4, 2024. The Term Loan is repayable in quarterly payments of $3.25 million with the first payment due March 31, 2020, plus an annual payment equal to 25% of the annual Excess Cash Flow as defined in the credit agreement (an amount not to exceed $12 million annually), less certain voluntary prepayments made during the year, with final payment at maturity . The interest rate on the fifth amended and restated revolving credit facility and the Term Loan is based on a margin over LIBOR or a base rate. At December 31, 2019, the effective interest rate on the Term Loan was approximately 5.6% and the effective interest rate on revolving credit facility borrowings was approximately 4.4%. At September 30, 2019, the effective interest rate on the term loan and revolving credit facility borrowings was approximately 5.9% and 4.6%, respectively. 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 fifth amended and restated credit agreement requires the Company 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 Term Loan is outstanding or revolving credit facility availability is less than 12.5% of the facility size. In addition, as long as the Term Loan is outstanding, a senior secured leverage ratio cannot be more than 3.0 as calculated as of the quarters ending June or September, and no more than 4.5 as calculated as of the quarters ending December or March. Certain restrictions are also imposed by the credit agreement, including restrictions on the Company’s ability to incur additional indebtedness, to pay distributions to unitholders, to pay certain inter-company dividends or distributions, repurchase units, make investments, grant liens, sell assets, make acquisitions and engage in certain other activities. At December 31, 2019, $130.0 million of the Term Loan was outstanding, $112.7 million was outstanding under the revolving credit facility, $1.2 million of hedge positions were secured under the credit agreement, and $4.4 million of letters of credit were issued and outstanding. At September 30, 2019, $92.5 million of the Term Loan was outstanding, $61.5 million was outstanding under the revolving credit facility, $7.7 million of hedge positions were secured under the credit agreement, and $4.6 million of letters of credit were issued and outstanding. At December 31, 2019, availability was $162.4 million, and the Company was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio. At September 30, 2019, availability was $126.1 million, and the Company was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12) Income Taxes The accompanying financial statements are reported on a fiscal year, however, the Company and its corporate subsidiaries file Federal and State income tax returns on a calendar year. The current and deferred income tax expense (benefit) for the three months ended December 31, 2019, and 2018 are as follows: Three Months Ended December 31, (in thousands) 2019 2018 Income before income taxes $ 39,537 $ 3,288 Current income tax expense 10,446 1,589 Deferred income tax expense (benefit) 1,336 (616 ) Total income tax expense $ 11,782 $ 973 At December 31, 2019, 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 and Pennsylvania, we have four years that are subject to examination. In the state tax jurisdiction of New Jersey we have five tax years 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. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 13) Leases The Company has entered into certain operating leases for office space, vehicles and other equipment with lease terms between one to twenty years, expiring between 2020 and 2039. Some of the Company’s real estate property lease agreements have options to extend the leases for up to five years. The Company determines if an arrangement is a lease at inception. Lease liabilities are measured at the lease commencement date in an amount equal to the present value of the lease payments over the lease term. Right-of-use (“ROU”) assets are recognized based on the amount of the lease liability adjusted for any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. Renewal options are included in the calculation of the ROU asset and lease liability when it is determined that they are reasonably certain of exercise. Certain of our lease arrangements contain non-lease components such as common area maintenance. We have elected to account for the lease component and its associated non-lease components as a single lease component. Leases with an initial term of 12 months or less are not recognized on our balance sheet. The Company has leases that have variable payments, including lease payments where lease payment increases are based on the percentage change in the Consumer Price Index. For such leases payment at the lease commencement date is used to measure the ROU assets and operating lease liabilities. Changes in the index and other variable payments are expensed as incurred. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our operating leases is not readily determinable. The basis for an incremental borrowing rate was our Term Loan, market-based yield curves and comparable debt securities. A summary of total lease costs and other information for the three months ended December 31, 2019 is as follows: Three Months Ended December 31, (in thousands) 2019 Lease cost: Operating lease cost $ 6,599 Short-term lease cost 192 Variable lease cost 1,010 Total lease cost $ 7,801 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 6,381 Right-of-use assets obtained in exchange for new operating lease liabilities $ 4,010 Weighted-average remaining lease term - operating leases 7.4 Weighted-average discount rate - operating leases 4.8 % Maturities of operating lease liabilities as of December 31, 2019 are as follows: December 31, (in thousands) 2019 Remaining nine months of fiscal year 2020 $ 18,658 2021 22,141 2022 17,718 2023 14,396 2024 12,235 Thereafter 45,467 Total undiscounted lease payments 130,615 Less imputed interest (21,706 ) Total lease liabilities $ 108,909 Maturities of operating lease liabilities presented undiscounted under ASC Topic 840 as prescribed by ASC Topic 842 as of September 30, 2019 are as follows: September 30, (in thousands) 2019 2020 $ 24,082 2021 20,875 2022 16,687 2023 13,344 2023 11,114 Thereafter 43,506 Total future minimum lease payments $ 129,608 |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 3 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | 14) Supplemental Disclosure of Cash Flow Information Three Months Ended Cash paid during the period for: December 31, (in thousands) 2019 2018 Income taxes, net $ 4,750 $ 3,811 Interest $ 3,126 $ 2,441 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15) Commitments and Contingencies On April 18, 2017, a civil action was filed in the United States District Court for the Eastern District of New York, entitled M. Norman Donnenfeld v. Petro, Inc., Civil Action Number 2:17-cv-2310-JFB-SIL, against Petro, Inc. By amended complaint filed on August 15, 2017, the Plaintiff alleges he did not receive expected contractual benefits under his protected price plan contract when oil prices fell and asserts various claims for relief including breach of contract, violation of the New York General Business Law and fraudulent inducement. The Plaintiff also seeks to have a class certified of similarly situated Petro customers who entered into protected price plan contracts and were denied the same contractual benefits. No class has yet been certified in this action. The Plaintiff seeks compensatory, punitive and other damages in unspecified amounts. On September 15, 2017, Petro filed a motion to dismiss the amended complaint as time-barred and for failure to state a cause of action. On September 12, 2018, the district court granted in part and denied in part Petro's motion to dismiss. The district court dismissed the Plaintiff's claims for breach of the covenant of good faith and fair dealing and fraudulent inducement, but declined to dismiss the Plaintiff's remaining claims. The district court granted the Plaintiff leave to amend to attempt to replead his fraudulent inducement claim. On October 10, 2018, the Plaintiff filed a second amended complaint. The second amended complaint attempts to replead a fraudulent inducement claim and is otherwise substantially similar or identical to the prior complaint. On November 13, 2018, Petro moved to dismiss the fraudulent inducement and unjust enrichment claims in the second amended complaint. On January 31, 2019, the court granted the motion and dismissed the fraudulent inducement and unjust enrichment claims with prejudice. On February 22, 2019, counsel for Petro and the Plaintiff participated in a mediation which, after arms-length negotiations, resulted in a memorandum of understanding to settle the litigation, subject to the completion of confirmatory discovery, negotiation of a final settlement agreement and court approval. In an order dated March 27, 2019, the district court stayed all discovery deadlines in light of the pending settlement. On May 6, 2019, the Plaintiff filed an Unopposed Motion for Preliminary Approval of Class Action Settlement which remains pending before the court. On October 4, 2019, upon consent of all parties, Judge Roslynn R. Mauskopf assigned the action to Magistrate Judge Steve I. Locke for final disposition. On December 4, 2019, the court granted preliminary approval of the class action settlement. The anticipated settlement is not an admission of liability or breach to any customers by Petro and the Company continues to believe the allegations lack merit. If the settlement is not approved or finalized for any reason, the Company will continue to vigorously defend the action; in that case, we cannot assess the potential outcome or materiality of this matter. The Company’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 Company is a defendant in various legal proceedings and litigation. The Company 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 Company’s results of operations, financial position or liquidity. The Company maintains insurance policies with insurers in amounts and with coverages and deductibles we believe are reasonable and prudent. However, the Company 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, including the above mentioned action, as certain types of claims may be excluded from our insurance coverage. If we 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 | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Limited Partner Unit | 16) 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 Company’s aggregate net income exceeds its aggregate distribution for such period, the Company is required to present net income per limited partner unit as if all of the earnings for the periods were distributed, regardless of whether those earnings would actually be distributed during a particular period from an economic or practical perspective. This allocation does not impact the Company’s overall net income or other financial results. However, for periods in which the Company’s aggregate net income exceeds its aggregate distributions for such period, it will have the impact of reducing the earnings per limited partner unit, as the calculation according to this standard 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 Company’s net income per limited partner unit calculation. A separate and independent calculation for each quarter and year-to-date period is performed, in which the Company’s contractual participation rights are taken into account. The following presents the net income allocation and per unit data using this method for the periods presented: Three Months Ended Basic and Diluted Earnings Per Limited Partner: December 31, (in thousands, except per unit data) 2019 2018 Net income $ 27,755 $ 2,315 Less General Partner’s interest in net income 192 15 Net income available to limited partners 27,563 2,300 Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 4,351 — Limited Partner’s interest in net income under FASB ASC 260-10-45-60 $ 23,212 $ 2,300 Per unit data: Basic and diluted net income available to limited partners $ 0.58 $ 0.04 Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 0.09 — Limited Partner’s interest in net income under FASB ASC 260-10-45-60 $ 0.49 $ 0.04 Weighted average number of Limited Partner units outstanding 47,266 52,905 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Quarterly Distribution Declared In January 2020, we declared a quarterly distribution of $0.125 per unit, or $0.50 per unit on an annualized basis, on all Common Units with respect to the first quarter of fiscal 2020, payable on February 4, 2020, to holders of record on January 27, 2020. The amount of distributions in excess of the minimum quarterly distribution of $0.0675 are distributed in accordance with our Partnership Agreement, subject to the management incentive compensation plan. As a result, $5.8 million will be paid to the Common Unit holders, $0.2 million to the General Partner unit holders (including $0.2 million of incentive distribution as provided in our Partnership Agreement) and $0.2 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. Common Units Repurchased and Retired 0.2 9.48 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of Star and its subsidiaries. All material intercompany 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 Company’s business, the results of operations and cash flows for the three-month period ended December 31, 2019 are not necessarily indicative of the results to be expected for the full year. These interim financial statements of the Company 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 (the “SEC”) and should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2019. |
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 amortization on the Company’s pension plan obligation for its two frozen defined benefit pension plans, unrealized gain (loss) on available-for-sale investments, unrealized gain (loss) on interest rate hedge and the corresponding tax effects. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. At December 31, 2019, the $14.8 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $14.5 million of cash and cash equivalents and $0.3 million of restricted cash. At September 30, 2019, the $5.1 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $4.9 million of cash and cash equivalents and $0.3 million of restricted cash. Restricted cash represents deposits held by our captive insurance company that are required by state insurance regulations to remain in the captive insurance company as cash. |
Captive Insurance Collateral | Captive Insurance Collateral The captive insurance collateral is held by our captive insurance company in an irrevocable trust as collateral for certain workers’ compensation and automobile liability claims. The collateral is required by a third party insurance carrier that insures per claim amounts above a set deductible. Due to the expected timing of claim payments, the nature of the collateral agreement with the carrier, and our captive insurance company’s source of other operating cash, the collateral is not expected to be used to pay obligations within the next twelve months. At December 31, 2019, captive insurance collateral is comprised of $61.2 million of Level 1 debt securities measured at fair value and $1.5 million of mutual funds measured at net asset value. At September 30, 2019, the balance was comprised of $58.0 million of Level 1 debt securities measured at fair value and $0.5 million of mutual funds measured at net asset value. Unrealized gains and losses, net of related income taxes, are reported as accumulated other comprehensive gain (loss), except for losses from impairments which are determined to be other-than-temporary. Realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are included in the determination of net income and are included in Interest expense, net, at which time the average cost basis of these securities are adjusted to fair value. |
Weather Hedge Contract | Weather Hedge Contract To partially mitigate the adverse effect of warm weather on cash flows, the Company has used weather hedge contracts for a number of years. Weather hedge contracts are recorded in accordance with the intrinsic value method defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-45-15 Derivatives and Hedging, Weather Derivatives (EITF 99-2). The premium paid is included in the caption “Prepaid expenses and other current assets” in the accompanying balance sheets and amortized over the life of the contract, with the intrinsic value method applied at each interim period. The Company entered into weather hedge contracts for fiscal years 2019, 2020 and 2021. Under these contracts, we are entitled to receive a payment if the total number of degree days within the hedge period is less than the prior ten year average. The “Payment Thresholds,” or strikes, are set at various levels. In addition, we will be obligated to make a payment capped at $5.0 million if degree days exceed the Payment Threshold which approximates the prior ten year average. The hedge period runs from November 1 through March 31, taken as a whole, for each respective fiscal year. For fiscal 2020 and 2021 the maximum that the Company can receive annually is $12.5 million and the maximum that the Company would be obligated to pay annually is $5.0 million. As of December 31, 2019, the Company recorded a charge of $3.0 million under this contract that increased delivery and branch expenses. As of December 31, 2018, the Company recorded a charge of $2.0 million under its contract and ultimately paid $2.1 million in April 2019 after the fiscal 2019 heating season. |
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 December 31, 2019, we had $0.2 million and $16.9 million balances 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 Company for long-term financing of a similar maturity, the fair value of the NETTI Fund withdrawal liability as of December 31, 2019 was $22.1 million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC Topic 842”). The update requires all leases with a term greater than twelve months to be recognized on the balance sheet by recording (i) a lease liability that represents a lessee’s obligation to make lease payments arising from a lease, measured at the present value of the remaining lease payments; and (2) a right-of-use (“ROU”) asset that represents the lessee’s right to use a specified asset for the lease term, measured in an amount equal to the lease liability adjusted for accrued lease payments. The standard also requires the disclosure of key information pertaining to leasing arrangements. A s of October 1, 2019, the Company adopted The adoption of ASC Topic 842 had a material impact to the Company’s Condensed Consolidated Balance Sheet, but did not impact the Condensed Consolidated Statement of Operations or Condensed Consolidated Statement of Partners’ Capital. The most significant changes to the Condensed Consolidated Balance Sheet relate to the recognition of the following as of October 1, 2019: “Operating lease right-of-use assets” in the amount of $104.7 million, “Current portion of operating lease liabilities” in the amount of $20.1 million and “Long-term operating lease liabilities” in the amount of $89.9 million. The adoption of ASC Topic 842 also had no impact on operating, investing, or financing cash flows in the Condensed Consolidated Statement of Cash Flows. However, ASC Topic has significantly affected the Company’s disclosures about noncash investing activities. Additionally, the Company’s lease-related disclosures have significantly increased as of and for the three months ended December 31, 2019 as compared to prior years. See Note 13 – Leases for further details on the adoption of ASC Topic 842. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements 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. The Company is evaluating the effect that ASU No. 2016-13 will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 230): Simplifying the Test for Goodwill Impairment. The update simplifies how an entity is required to test goodwill for impairment. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but not exceed the total amount of goodwill allocated to the reporting unit. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company has not determined the timing of adoption, but does not expect ASU 2017-04 to have a material impact on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-14 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2022, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-15 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue by Major Sources | The following disaggregates our revenue by major sources for the three months ended December 31, 2019 and December 31, 2018: Three Months Ended December 31, (in thousands) 2019 2018 Petroleum Products: Home heating oil and propane $ 343,346 $ 364,202 Other petroleum products 89,342 94,505 Total petroleum products 432,688 458,707 Installations and Services: Equipment installations 30,565 29,983 Equipment maintenance service contracts 27,908 28,319 Billable call services 17,784 18,018 Total installations and services 76,257 76,320 Total Sales $ 508,945 $ 535,027 |
Common Unit Repurchase and Re_2
Common Unit Repurchase and Retirement (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Company's Repurchase Activities | The following table shows repurchases under the Repurchase Plan. (in thousands, except per unit amounts) Period Total Number of Units Purchased Average Price Paid per Unit (a) Total Number of Units Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Units that May Yet Be Purchased Fiscal year 2012 to 2019 total 13,340 $ 8.08 10,896 956 October 2019 223 $ 9.44 223 733 November 2019 261 $ 9.39 261 472 December 2019 797 $ 9.42 166 306 (b) First quarter fiscal year 2020 total 1,281 $ 9.42 650 306 January 2020 160 $ 9.48 160 146 (c) (a) Amount includes repurchase costs. (b) First quarter of fiscal year 2020 Common Units repurchased include 0.6 million Common Units acquired in a private transaction. (c ) Of the total available for repurchase, less than 0.1 million are available for repurchase in open market transactions and 0.1 million are available for repurchase in privately-negotiated transactions. |
Captive Insurance Collateral (T
Captive Insurance Collateral (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Captive Insurance Collateral to be Available-for-sale Investments | The Company considers all of its captive insurance collateral to be available-for-sale investments. Investments at December 31, 2019 consist of the following (in thousands): Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value Cash and Receivables $ 1,502 $ — $ — $ 1,502 U.S. Government Sponsored Agencies 32,397 144 (1 ) 32,540 Corporate Debt Securities 23,787 753 — 24,540 Foreign Bonds and Notes 4,052 69 — 4,121 Total $ 61,738 $ 966 $ (1 ) $ 62,703 Investments at September 30, 2019 consist of the following (in thousands): Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value Cash and Receivables $ 509 $ — $ — $ 509 U.S. Government Sponsored Agencies 29,055 198 (3 ) 29,250 Corporate Debt Securities 23,831 773 — 24,604 Foreign Bonds and Notes 4,066 61 — 4,127 Total $ 57,461 $ 1,032 $ (3 ) $ 58,490 |
Schedule of Maturities of Investments | Maturities of investments were as follows at December 31, 2019 (in thousands): Net Carrying Amount Due within one year $ 9,946 Due after one year through five years 41,173 Due after five years through ten years 11,584 Total $ 62,703 |
Derivatives and Hedging-Discl_2
Derivatives and Hedging-Disclosures and Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’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 Identical Assets Significant Other Observable Inputs Under FASB ASC 815-10 Balance Sheet Location Total Level 1 Level 2 Asset Derivatives at December 31, 2019 Commodity contracts Fair asset and liability value of derivative instruments $ 7,106 $ — $ 7,106 Commodity contracts Long-term derivative assets included in the deferred charges and other assets, net and other long-term liabilities, net balances 895 — 895 Commodity contract assets at December 31, 2019 $ 8,001 $ — $ 8,001 Liability Derivatives at December 31, 2019 Commodity contracts Fair asset and liability value of derivative instruments $ (7,752 ) $ — $ (7,752 ) Commodity contracts Long-term derivative liabilities included in the deferred charges and other assets, net and other long-term liabilities, net balances (1,025 ) — (1,025 ) Commodity contract liabilities at December 31, 2019 $ (8,777 ) $ — $ (8,777 ) Asset Derivatives at September 30, 2019 Commodity contracts Fair liability value of derivative instruments $ 13,824 $ — $ 13,824 Commodity contracts Long-term derivative assets included in the deferred charges and other assets, net balance and other long term liabilities, net 1,466 — 1,466 Commodity contract assets September 30, 2019 $ 15,290 $ — $ 15,290 Liability Derivatives at September 30, 2019 Commodity contracts Fair liability value of derivative instruments $ (22,086 ) $ — $ (22,086 ) Commodity contracts Long-term derivative liabilities included in the deferred charges and other assets, net balance and other long term liabilities, net (1,719 ) — (1,719 ) Commodity contract liabilities September 30, 2019 $ (23,805 ) $ — $ (23,805 ) |
Company's Derivatives Assets (Liabilities) Offset by Counterparty | The Company’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table. (In thousands) Gross Amounts Not Offset in the Statement of Financial Position Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities) Gross Assets Recognized Gross Liabilities Offset in the Statement of Financial Position Net Assets (Liabilities) Presented Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Fair asset value of derivative instruments $ 2,815 $ (1,568 ) $ 1,247 $ — $ — $ 1,247 Long-term derivative assets included in deferred charges and other assets, net 29 (27 ) 2 — — 2 Fair liability value of derivative instruments 4,291 (6,184 ) (1,893 ) — — (1,893 ) Long-term derivative liabilities included in other long-term liabilities, net 866 (998 ) (132 ) — — (132 ) Total at December 31, 2019 $ 8,001 $ (8,777 ) $ (776 ) $ — $ — $ (776 ) Fair asset value of derivative instruments $ — $ — $ — $ — $ — $ — Long-term derivative assets included in other long-term assets, net 16 (16 ) — — — — Fair liability value of derivative instruments 13,824 (22,086 ) (8,262 ) — — (8,262 ) Long-term derivative liabilities included in other long-term liabilities, net 1,450 (1,703 ) (253 ) — — (253 ) Total at September 30, 2019 $ 15,290 $ (23,805 ) $ (8,515 ) $ — $ — $ (8,515 ) |
Company's Derivatives Assets (Liabilities) Offset by Counterparty | The Company’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table. (In thousands) Gross Amounts Not Offset in the Statement of Financial Position Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities) Gross Assets Recognized Gross Liabilities Offset in the Statement of Financial Position Net Assets (Liabilities) Presented Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Fair asset value of derivative instruments $ 2,815 $ (1,568 ) $ 1,247 $ — $ — $ 1,247 Long-term derivative assets included in deferred charges and other assets, net 29 (27 ) 2 — — 2 Fair liability value of derivative instruments 4,291 (6,184 ) (1,893 ) — — (1,893 ) Long-term derivative liabilities included in other long-term liabilities, net 866 (998 ) (132 ) — — (132 ) Total at December 31, 2019 $ 8,001 $ (8,777 ) $ (776 ) $ — $ — $ (776 ) Fair asset value of derivative instruments $ — $ — $ — $ — $ — $ — Long-term derivative assets included in other long-term assets, net 16 (16 ) — — — — Fair liability value of derivative instruments 13,824 (22,086 ) (8,262 ) — — (8,262 ) Long-term derivative liabilities included in other long-term liabilities, net 1,450 (1,703 ) (253 ) — — (253 ) Total at September 30, 2019 $ 15,290 $ (23,805 ) $ (8,515 ) $ — $ — $ (8,515 ) |
Company'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 FASB ASC 815-10 Location of (Gain) or Loss Recognized in Income on Derivative Three Months Ended December 31, 2019 Three Months Ended December 31, 2018 Commodity contracts Cost of product (a) $ 6,049 $ (6,152 ) Commodity contracts Cost of installations and service (a) $ (9 ) $ 247 Commodity contracts Delivery and branch expenses (a) $ (29 ) $ 166 Commodity contracts (Increase) / decrease in the fair value of derivative instruments (b) $ (6,417 ) $ 31,039 (a) Represents realized closed positions and includes the cost of options as they expire. (b) Represents the change in value of unrealized open positions and expired options. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventory were as follows (in thousands): December 31, 2019 September 30, 2019 Product $ 59,343 $ 43,536 Parts and equipment 20,918 21,252 Total inventory $ 80,261 $ 64,788 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment are stated at cost. Depreciation is computed over the estimated useful lives of the depreciable assets using the straight-line method (in thousands): December 31, 2019 September 30, 2019 Property and equipment $ 232,423 $ 230,690 Less: accumulated depreciation 135,911 132,451 Property and equipment, net $ 96,512 $ 98,239 |
Intangibles, net (Tables)
Intangibles, net (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Subject to Amortization | The gross carrying amount and accumulated amortization of intangible assets subject to amortization are as follows (in thousands): December 31, 2019 September 30, 2019 Gross Gross Carrying Accum. Carrying Accum. Amount Amortization Net Amount Amortization Net Customer lists $ 383,388 $ 301,933 $ 81,455 $ 382,373 $ 297,221 $ 85,152 Trade names and other intangibles 37,853 15,771 22,082 37,739 15,203 22,536 Total $ 421,241 $ 317,704 $ 103,537 $ 420,112 $ 312,424 $ 107,688 |
Long-Term Debt and Bank Facil_2
Long-Term Debt and Bank Facility Borrowings (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Company's Debt | The Company’s debt is as follows (in thousands): December 31, September 30, 2019 2019 Carrying Amount Fair Value (a) Carrying Amount Fair Value (a) Revolving Credit Facility Borrowings $ 112,688 $ 112,688 $ 61,500 $ 61,500 Senior Secured Term Loan (b) 129,275 130,000 91,947 92,500 Total debt $ 241,963 $ 242,688 $ 153,447 $ 154,000 Total short-term portion of debt $ 122,438 $ 122,438 $ 33,000 $ 33,000 Total long-term portion of debt $ 119,525 $ 120,250 $ 120,447 $ 121,000 (a) The face amount of the Company’s variable rate long-term debt approximates fair value. (b) Carrying amounts are net of unamortized debt issuance costs of $0.7 million as of December 31, 2019 and $0.6 million as of September 30, 2019. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Current and Deferred Income Tax Expense (Benefit) | The current and deferred income tax expense (benefit) for the three months ended December 31, 2019, and 2018 are as follows: Three Months Ended December 31, (in thousands) 2019 2018 Income before income taxes $ 39,537 $ 3,288 Current income tax expense 10,446 1,589 Deferred income tax expense (benefit) 1,336 (616 ) Total income tax expense $ 11,782 $ 973 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Total Lease Costs and Other Information | A summary of total lease costs and other information for the three months ended December 31, 2019 is as follows: Three Months Ended December 31, (in thousands) 2019 Lease cost: Operating lease cost $ 6,599 Short-term lease cost 192 Variable lease cost 1,010 Total lease cost $ 7,801 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 6,381 Right-of-use assets obtained in exchange for new operating lease liabilities $ 4,010 Weighted-average remaining lease term - operating leases 7.4 Weighted-average discount rate - operating leases 4.8 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of December 31, 2019 are as follows: December 31, (in thousands) 2019 Remaining nine months of fiscal year 2020 $ 18,658 2021 22,141 2022 17,718 2023 14,396 2024 12,235 Thereafter 45,467 Total undiscounted lease payments 130,615 Less imputed interest (21,706 ) Total lease liabilities $ 108,909 |
Schedule of Maturities of Operating Lease Liabilities Presented Undiscounted Under ASC Topic 840 | Maturities of operating lease liabilities presented undiscounted under ASC Topic 840 as prescribed by ASC Topic 842 as of September 30, 2019 are as follows: September 30, (in thousands) 2019 2020 $ 24,082 2021 20,875 2022 16,687 2023 13,344 2023 11,114 Thereafter 43,506 Total future minimum lease payments $ 129,608 |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Disclosure of Cash Flow Information | Three Months Ended Cash paid during the period for: December 31, (in thousands) 2019 2018 Income taxes, net $ 4,750 $ 3,811 Interest $ 3,126 $ 2,441 |
Earnings Per Limited Partner _2
Earnings Per Limited Partner Unit (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
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 Basic and Diluted Earnings Per Limited Partner: December 31, (in thousands, except per unit data) 2019 2018 Net income $ 27,755 $ 2,315 Less General Partner’s interest in net income 192 15 Net income available to limited partners 27,563 2,300 Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 4,351 — Limited Partner’s interest in net income under FASB ASC 260-10-45-60 $ 23,212 $ 2,300 Per unit data: Basic and diluted net income available to limited partners $ 0.58 $ 0.04 Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 0.09 — Limited Partner’s interest in net income under FASB ASC 260-10-45-60 $ 0.49 $ 0.04 Weighted average number of Limited Partner units outstanding 47,266 52,905 |
Organization - Additional Infor
Organization - Additional Information (Detail) shares in Thousands | Dec. 04, 2019USD ($) | Dec. 31, 2019SegmentCustomerContractshares | Sep. 30, 2019shares | Dec. 31, 2018shares | Sep. 30, 2018shares | Jul. 02, 2018USD ($) |
Limited Partners' Capital Account [Line Items] | ||||||
Number of reportable segments | Segment | 1 | |||||
Fifth Amendment | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Non Seasonal maximum borrowing capacity under revolving credit facility | $ | $ 300,000,000 | $ 300,000,000 | ||||
Maximum borrowing capacity (heating season December to April) under revolving credit facility | $ | $ 450,000,000 | |||||
Due date of debt | Dec. 4, 2024 | |||||
Fifth Amendment | Term Loan | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Outstanding term loan | $ | $ 130,000,000 | |||||
Senior secured term loan maturity period | 5 years | |||||
Petro Holdings, Inc | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Ownership interest of Star Acquisitions Inc. | 100.00% | |||||
Number of residential and commercial home heating oil and propane customers served | Customer | 454,000 | |||||
Number of customers to whom only home heating oil, gasoline and diesel were sells on a delivery only basis | Customer | 59,000 | |||||
Number of service contracts heating oil and propane for natural gas and other heating systems | Contract | 18,000 | |||||
Number of customers to whom sell gasoline and diesel fuel | Customer | 26,000 | |||||
Star Group L.P. | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Percentage of limited partner interest | 99.30% | |||||
Percentage of general partner interest | 0.70% | |||||
Star Acquisitions, Inc | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Ownership interest of partnership | 100.00% | |||||
Petroleum Heat and Power Co., Inc. | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Ownership interest of partnership | 100.00% | |||||
Common Stock | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Number of outstanding units | shares | 46,404 | 47,685 | 52,489 | 53,088 | ||
General Partner | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Number of outstanding units | shares | 326 | 326 | 326 | 326 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Cash, cash equivalents, and restricted cash | $ 14,792,000 | $ 24,039,000 | $ 5,149,000 | $ 14,781,000 | ||||
Cash and cash equivalents | 14,542,000 | 4,899,000 | ||||||
Restricted cash | 250,000 | 250,000 | ||||||
Captive insurance collateral, debt securities | 62,703,000 | 58,490,000 | ||||||
Additional payment obligated to pay if degree days exceed ten year average | 5,000,000 | |||||||
Accrued expenses and other current liabilities | 132,837,000 | 120,839,000 | ||||||
Other long-term liabilities | 20,838,000 | 25,746,000 | ||||||
Operating lease right-of-use assets | 103,492,000 | |||||||
Current portion of operating lease liabilities | 20,202,000 | |||||||
Long-term operating lease liabilities | 88,707,000 | |||||||
ASC Topic 842 | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Operating lease right-of-use assets | $ 104,700,000 | |||||||
Current portion of operating lease liabilities | 20,100,000 | |||||||
Long-term operating lease liabilities | $ 89,900,000 | |||||||
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 | 16,900,000 | |||||||
Financial Products Corporation | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Charge on weather hedge contract | $ 2,000,000 | |||||||
Subsidiaries of Swiss Re | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Payments of derivative hedging contract | $ 2,100,000 | |||||||
Delivery and branch expenses | Financial Products Corporation | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Charge on weather hedge contract | 3,000,000 | |||||||
Scenario Forecast | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Derivative maximum payout | $ 5,000,000 | $ 5,000,000 | ||||||
Significant Other Observable Inputs Level 2 | New England Teamsters & Trucking Industry Pension Fund | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Multiemployer plan discounted withdrawal liability | 22,100,000 | |||||||
Captive Insurance Collateral | Level 1 | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Captive insurance collateral, debt securities | 61,200,000 | 58,000,000 | ||||||
Captive Insurance Collateral | Mutual Funds | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Captive insurance collateral, net asset value | $ 1,500,000 | $ 500,000 | ||||||
Maximum | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Cash equivalents, highly liquid investments maturity | 3 months | |||||||
Maximum | Scenario Forecast | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Derivative maximum receivable | $ 12,500,000 | $ 12,500,000 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregation of Revenue by Major Sources (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total sales | $ 508,945 | $ 535,027 |
Home heating oil and propane | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | 343,346 | 364,202 |
Other petroleum products | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | 89,342 | 94,505 |
Petroleum products | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | 432,688 | 458,707 |
Equipment installations | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | 30,565 | 29,983 |
Equipment maintenance service contracts | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | 27,908 | 28,319 |
Billable call services | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | 17,784 | 18,018 |
Installations and services | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales | $ 76,257 | $ 76,320 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Revenue Recognition [Line Items] | |||
Contract costs, amortization period | 5 years | ||
Contract liabilities | $ 120.5 | $ 127 | |
Contract with customer liability, revenue recognized | $ 71.5 | $ 67.1 | |
Maximum | |||
Revenue Recognition [Line Items] | |||
Contract liabilities recognition service contract period | 1 year | ||
Delivery and Branch Expenses | |||
Revenue Recognition [Line Items] | |||
Amortization of deferred contract costs | $ 1 | ||
Prepaid Expense and Other Current Assets | |||
Revenue Recognition [Line Items] | |||
Deferred contract costs,current | 3.5 | ||
Deferred Charges and Other Assets, Net | |||
Revenue Recognition [Line Items] | |||
Deferred contract costs,non current | $ 6.4 |
Common Unit Repurchase and Re_3
Common Unit Repurchase and Retirement - Additional Information (Detail) - USD ($) shares in Thousands | Jul. 02, 2018 | Dec. 31, 2019 | Nov. 30, 2019 | Oct. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jul. 31, 2019 | Dec. 04, 2019 | Aug. 31, 2019 | ||
Capital Unit [Line Items] | |||||||||||
Company's common units authorized for repurchase | 1,300 | 2,300 | |||||||||
Fifth 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 | $ 300,000,000 | |||||||||
Minimum fixed charge coverage ratio for distributions to unit holders or to repurchase common units | 115.00% | ||||||||||
Repurchase Plan | |||||||||||
Capital Unit [Line Items] | |||||||||||
Company's common units repurchased and retired | 797 | 261 | 223 | 1,281 | 13,340 | 9,500 | |||||
Total Common Units remain available for repurchase | 306 | [1] | 472 | 733 | 306 | [1] | 956 | ||||
Common Stock Available for Repurchase Under Privately Negotiated Transactions | |||||||||||
Capital Unit [Line Items] | |||||||||||
Company's common units authorized for repurchase | 1,300 | ||||||||||
Common Stock Available for Repurchase Under Open Market Transactions | |||||||||||
Capital Unit [Line Items] | |||||||||||
Company's common units authorized for repurchase | 1,000 | ||||||||||
Common Stock Repurchase Under Open Market Transactions | |||||||||||
Capital Unit [Line Items] | |||||||||||
Company's common units repurchased and retired | 700 | ||||||||||
[1] | First quarter of fiscal year 2020 Common Units repurchased include 0.6 million Common Units acquired in a private transaction. |
Common Unit Repurchase and Re_4
Common Unit Repurchase and Retirement - Company's Repurchase Activities (Detail) - $ / shares shares in Thousands | 1 Months Ended | 3 Months Ended | 84 Months Ended | 85 Months Ended | ||||||
Jan. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | Oct. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jul. 31, 2019 | ||||
Repurchase Plan | ||||||||||
Capital Unit [Line Items] | ||||||||||
Total Number of Units Purchased | 797 | 261 | 223 | 1,281 | 13,340 | 9,500 | ||||
Average Price Paid per Unit | [1] | $ 9.42 | $ 9.39 | $ 9.44 | $ 9.42 | $ 8.08 | ||||
Maximum Number of Units that May Yet Be Purchased | 306 | [2] | 472 | 733 | 306 | [2] | 956 | |||
Publicly Announced Plans or Programs As Part of Repurchase Plan | ||||||||||
Capital Unit [Line Items] | ||||||||||
Total Number of Units Purchased | 166 | 261 | 223 | 650 | 10,896 | |||||
Subsequent Event | Repurchase Plan | ||||||||||
Capital Unit [Line Items] | ||||||||||
Total Number of Units Purchased | 160 | |||||||||
Average Price Paid per Unit | [1] | $ 9.48 | ||||||||
Maximum Number of Units that May Yet Be Purchased | [3] | 146 | ||||||||
Subsequent Event | Publicly Announced Plans or Programs As Part of Repurchase Plan | ||||||||||
Capital Unit [Line Items] | ||||||||||
Total Number of Units Purchased | 160 | |||||||||
[1] | Amount includes repurchase costs. | |||||||||
[2] | First quarter of fiscal year 2020 Common Units repurchased include 0.6 million Common Units acquired in a private transaction. | |||||||||
[3] | Of the total available for repurchase, less than 0.1 million are available for repurchase in open market transactions and 0.1 million are available for repurchase in privately-negotiated transactions. |
Common Unit Repurchase and Re_5
Common Unit Repurchase and Retirement - Company's Repurchase Activities (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | |||
Dec. 31, 2019 | Jan. 31, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | |
Capital Unit [Line Items] | ||||
Company's common units authorized for repurchase | 2.3 | 1.3 | ||
Private Transaction | ||||
Capital Unit [Line Items] | ||||
Company's common units repurchased | 0.6 | |||
Common Stock Available for Repurchase Under Open Market Transactions | ||||
Capital Unit [Line Items] | ||||
Company's common units authorized for repurchase | 1 | |||
Common Stock Available for Repurchase Under Open Market Transactions | Maximum | Subsequent Event | ||||
Capital Unit [Line Items] | ||||
Company's common units authorized for repurchase | 0.1 | |||
Common Stock Available for Repurchase Under Privately Negotiated Transactions | ||||
Capital Unit [Line Items] | ||||
Company's common units authorized for repurchase | 1.3 | |||
Common Stock Available for Repurchase Under Privately Negotiated Transactions | Subsequent Event | ||||
Capital Unit [Line Items] | ||||
Company's common units authorized for repurchase | 0.1 |
Captive Insurance Collateral -
Captive Insurance Collateral - Schedule of Captive Insurance Collateral to be Available-for-sale Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 61,738 | $ 57,461 |
Gross Unrealized Gain | 966 | 1,032 |
Gross Unrealized (Loss) | (1) | (3) |
Fair Value | 62,703 | 58,490 |
Cash and Receivables | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,502 | 509 |
Fair Value | 1,502 | 509 |
U.S. Government Sponsored Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 32,397 | 29,055 |
Gross Unrealized Gain | 144 | 198 |
Gross Unrealized (Loss) | (1) | (3) |
Fair Value | 32,540 | 29,250 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 23,787 | 23,831 |
Gross Unrealized Gain | 753 | 773 |
Fair Value | 24,540 | 24,604 |
Foreign Bonds and Notes | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 4,052 | 4,066 |
Gross Unrealized Gain | 69 | 61 |
Fair Value | $ 4,121 | $ 4,127 |
Captive Insurance Collateral _2
Captive Insurance Collateral - Schedule of Maturities of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Due within one year | $ 9,946 | |
Due after one year through five years | 41,173 | |
Due after five years through ten years | 11,584 | |
Total | $ 62,703 | $ 58,490 |
Derivatives and Hedging-Discl_3
Derivatives and Hedging-Disclosures and Fair Value Measurements - Additional Information (Detail) gal in Millions, $ in Millions | 3 Months Ended | |||
Dec. 31, 2019USD ($)gal | Dec. 31, 2018gal | Sep. 30, 2019USD ($) | Aug. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Hedging positions and payable amounts secured under credit facility | $ | $ 1.2 | $ 7.7 | ||
Prepaid expense and other current assets | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Aggregated cash posted as collateral in normal course of business | $ | 2.8 | |||
Interest rate swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | $ | 43.8 | 45 | $ 50 | |
Percentage of market risk exposure of long term debt | 50.00% | |||
Fair Value | $ | $ (1.6) | $ (2) | ||
Call Option | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative activity volume | 7.4 | 7.9 | ||
Call Option | Synthetic calls | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative activity volume | 85.8 | 92.4 | ||
Put Option | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative activity volume | 7.2 | 6.4 | ||
Swap Contracts Bought | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative activity volume | 17.2 | 14 | ||
Swap Contracts Bought | Short | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative activity volume | 2 | |||
Future Contracts | Long | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative activity volume | 18.2 | 18.3 | ||
Future Contracts | Short | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative activity volume | 42.1 | 41.2 | ||
Hedge its Internal Fuel Usage and Other Related Activities Short Swap Contracts Bought | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative activity volume | 0.2 | |||
Hedge its Internal Fuel Usage and Other Related Activities Swap Contracts Bought | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative activity volume | 4 | 4.3 |
Derivatives and Hedging-Discl_4
Derivatives and Hedging-Disclosures and Fair Value Measurements - Company'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 | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | $ 8,001 | $ 15,290 |
Derivative Liabilities, commodity contracts | (8,777) | (23,805) |
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 | 7,106 | |
Derivative Liabilities, commodity contracts | (7,752) | |
Deferred charges and other assets, net and other long-term liabilities, net balances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 895 | |
Derivative Liabilities, commodity contracts | (1,025) | |
Fair liability and fair asset value of derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 13,824 | |
Derivative Liabilities, commodity contracts | (22,086) | |
Deferred charges and other assets, net balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 1,466 | |
Derivative Liabilities, commodity contracts | (1,719) | |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 8,001 | 15,290 |
Derivative Liabilities, commodity contracts | (8,777) | (23,805) |
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 | 7,106 | |
Derivative Liabilities, commodity contracts | (7,752) | |
Significant Other Observable Inputs Level 2 | Deferred charges and other assets, net and other long-term liabilities, net balances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 895 | |
Derivative Liabilities, commodity contracts | $ (1,025) | |
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 Assets, commodity contracts | 13,824 | |
Derivative Liabilities, commodity contracts | (22,086) | |
Significant Other Observable Inputs Level 2 | Deferred charges and other assets, net balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, commodity contracts | 1,466 | |
Derivative Liabilities, commodity contracts | $ (1,719) |
Derivatives and Hedging-Discl_5
Derivatives and Hedging-Disclosures and Fair Value Measurements - Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Net Assets (Liabilities) Presented in the Statement of Financial Position | $ 1,247 | |
Net Assets (Liabilities) Presented in the Statement of Financial Position | (1,893) | $ (8,262) |
Subject to an enforceable master netting arrangement | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Gross Assets Recognized | 8,001 | 15,290 |
Gross Liabilities Offset in the Statement of Financial Position | (8,777) | (23,805) |
Net Assets (Liabilities) Presented in the Statement of Financial Position | (776) | (8,515) |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount | (776) | (8,515) |
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 | 2,815 | |
Gross Liabilities Offset in the Statement of Financial Position | (1,568) | |
Net Assets (Liabilities) Presented in the Statement of Financial Position | 1,247 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount | 1,247 | |
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 | 29 | |
Gross Liabilities Offset in the Statement of Financial Position | (27) | |
Net Assets (Liabilities) Presented in the Statement of Financial Position | 2 | |
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount | 2 | |
Subject to an enforceable master netting arrangement | Other long-term assets, net | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Gross Assets Recognized | 16 | |
Gross Liabilities Offset in the Statement of Financial Position | (16) | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
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 | 4,291 | 13,824 |
Gross Liabilities Offset in the Statement of Financial Position | (6,184) | (22,086) |
Net Assets (Liabilities) Presented in the Statement of Financial Position | (1,893) | (8,262) |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount | (1,893) | (8,262) |
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 | 866 | 1,450 |
Gross Liabilities Offset in the Statement of Financial Position | (998) | (1,703) |
Net Assets (Liabilities) Presented in the Statement of Financial Position | (132) | (253) |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount | $ (132) | $ (253) |
Derivatives and Hedging-Discl_6
Derivatives and Hedging-Disclosures and Fair Value Measurements - Effect of Derivative Instruments on Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) or Loss Unrealized, commodity contracts | [1] | $ (6,417) | $ 31,039 |
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Cost of product | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) or Loss Recognized, commodity contracts | [2] | 6,049 | (6,152) |
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Cost of installations and service | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) or Loss Recognized, commodity contracts | [2] | (9) | 247 |
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Delivery and branch expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) or Loss Recognized, commodity contracts | [2] | $ (29) | $ 166 |
[1] | Represents the change in value of unrealized open positions and expired options. | ||
[2] | Represents realized closed positions and includes the cost of options as they expire. |
Inventories - Components of Inv
Inventories - Components of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Product | $ 59,343 | $ 43,536 |
Parts and equipment | 20,918 | 21,252 |
Total inventory | $ 80,261 | $ 64,788 |
Property and Equipment - Compon
Property and Equipment - Component of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Property Plant And Equipment [Abstract] | ||
Property and equipment | $ 232,423 | $ 230,690 |
Less: accumulated depreciation | 135,911 | 132,451 |
Property and equipment, net | $ 96,512 | $ 98,239 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Acquired Business | |
Business Acquisition [Line Items] | |
Aggregate purchase price partnership acquired | $ 0.5 |
Intangibles, net - Intangible A
Intangibles, net - Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 421,241 | $ 420,112 |
Accum. Amortization | 317,704 | 312,424 |
Net | 103,537 | 107,688 |
Customer Lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 383,388 | 382,373 |
Accum. Amortization | 301,933 | 297,221 |
Net | 81,455 | 85,152 |
Trade Names And Other Intangibles | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37,853 | 37,739 |
Accum. Amortization | 15,771 | 15,203 |
Net | $ 22,082 | $ 22,536 |
Intangibles, net - Additional I
Intangibles, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense for intangible assets | $ 5.3 | $ 4.6 |
Long-Term Debt and Bank Facil_3
Long-Term Debt and Bank Facility Borrowings - Company's Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||
Long-term debt, carrying Amount | $ 241,963 | $ 153,447 | |
Current maturities of long-term debt, carrying Amount | 122,438 | 33,000 | |
Long-term debt | 119,525 | 120,447 | |
Long-term debt, fair value | [1] | 242,688 | 154,000 |
Current maturities of long-term debt, fair value | [1] | 122,438 | 33,000 |
Long-term portion of debt, fair value | [1] | 120,250 | 121,000 |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility borrowings, carrying Amount | 112,688 | 61,500 | |
Credit facility borrowings, fair value | [1] | 112,688 | 61,500 |
Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying Amount | [2] | 129,275 | 91,947 |
Long-term debt, fair value | [1],[2] | $ 130,000 | $ 92,500 |
[1] | The face amount of the Company’s variable rate long-term debt approximates fair value. | ||
[2] | Carrying amounts are net of unamortized debt issuance costs of $0.7 million as of December 31, 2019 and $0.6 million as of September 30, 2019. |
Long-Term Debt and Bank Facil_4
Long-Term Debt and Bank Facility Borrowings - Company's Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 0.7 | $ 0.6 |
Long-Term Debt and Bank Facil_5
Long-Term Debt and Bank Facility Borrowings - Additional Information (Detail) - USD ($) | Dec. 04, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jul. 02, 2018 | |
Debt Instrument [Line Items] | |||||
Hedging positions and payable amounts secured under credit facility | $ 1,200,000 | $ 7,700,000 | |||
Letters of credit issued and outstanding | 4,400,000 | 4,600,000 | |||
Long-term debt, fair value | [1] | 242,688,000 | 154,000,000 | ||
Revolving credit facility outstanding | 112,688,000 | 24,000,000 | |||
Availability in compliance with the fixed charge coverage ratio | $ 162,400,000 | $ 126,100,000 | |||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, effective interest rate | 5.60% | 5.90% | |||
Long-term debt, fair value | [1],[2] | $ 130,000,000 | $ 92,500,000 | ||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, effective interest rate | 4.40% | 4.60% | |||
Revolving credit facility outstanding | $ 112,700,000 | $ 61,500,000 | |||
Fifth Amendment | |||||
Debt Instrument [Line Items] | |||||
Non Seasonal maximum borrowing capacity under revolving credit facility | $ 300,000,000 | $ 300,000,000 | |||
Maximum borrowing capacity (heating season December to April) under revolving credit facility | 450,000,000 | ||||
Issuance of line of credit for working capital purposes | $ 25,000,000 | ||||
Senior secured term loan maturity date | Dec. 4, 2024 | ||||
Facility size that can be increased without consulting bank group | $ 200,000,000 | ||||
Term loan annual payment percentage | 25.00% | ||||
Commitment fee on the unused portion of the facility from December through April | 0.30% | ||||
Commitment fee on the unused portion of the facility from May through November | 0.20% | ||||
Minimum fixed charge coverage ratio | 1.10% | ||||
Availability percentage to maximum facility size | 12.50% | ||||
Fifth Amendment | Maximum | |||||
Debt Instrument [Line Items] | |||||
Senior secured leverage ratio during quarters ending June or September | 3.00% | ||||
Senior secured leverage ratio during quarters ending December or March | 4.50% | ||||
Fifth Amendment | Quarterly | |||||
Debt Instrument [Line Items] | |||||
Term loan periodic payment | $ 3,250,000 | ||||
Fifth Amendment | Annually | Maximum | |||||
Debt Instrument [Line Items] | |||||
Term loan periodic payment | 12,000,000 | ||||
Fifth Amendment | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Outstanding term loan | $ 130,000,000 | ||||
Senior secured term loan maturity period | 5 years | ||||
[1] | The face amount of the Company’s variable rate long-term debt approximates fair value. | ||||
[2] | Carrying amounts are net of unamortized debt issuance costs of $0.7 million as of December 31, 2019 and $0.6 million as of September 30, 2019. |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Income Tax Assets And Liabilities | ||
Income before income taxes | $ 39,537 | $ 3,288 |
Current income tax expense | 10,446 | 1,589 |
Deferred income tax expense (benefit) | 1,336 | (616) |
Total income tax expense | $ 11,782 | $ 973 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Line Items] | |
Unrecognized income tax benefits | $ 0 |
Federal | |
Income Tax Disclosure [Abstract] | |
Number of years for examination | 4 years |
New York | |
Income Tax Disclosure [Abstract] | |
Number of years for examination | 4 years |
Connecticut | |
Income Tax Disclosure [Abstract] | |
Number of years for examination | 4 years |
Pennsylvania | |
Income Tax Disclosure [Abstract] | |
Number of years for examination | 4 years |
New Jersey | |
Income Tax Disclosure [Abstract] | |
Number of years for examination | 5 years |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Lessee Lease Description [Line Items] | |
Operating lease expiration year | 2020 |
Operating lease, term of contract | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Operating lease expiration year | 2039 |
Operating lease, term of contract | 20 years |
Operating lease, option to extend, term | 5 years |
Leases - Summary of Total Lease
Leases - Summary of Total Lease Costs and Other Information (Detail) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Lease cost: | |
Operating lease cost | $ 6,599 |
Short-term lease cost | 192 |
Variable lease cost | 1,010 |
Total lease cost | 7,801 |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | 6,381 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 4,010 |
Weighted-average remaining lease term - operating leases | 7 years 4 months 24 days |
Weighted-average discount rate - operating leases | 4.80% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Remaining nine months of fiscal year 2020 | $ 18,658 |
2021 | 22,141 |
2022 | 17,718 |
2023 | 14,396 |
2024 | 12,235 |
Thereafter | 45,467 |
Total undiscounted lease payments | 130,615 |
Less imputed interest | (21,706) |
Total lease liabilities | $ 108,909 |
Leases - Schedule of Maturiti_2
Leases - Schedule of Maturities of Operating Lease Liabilities Presented Undiscounted Under ASC Topic 840 (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 24,082 |
2021 | 20,875 |
2022 | 16,687 |
2023 | 13,344 |
2023 | 11,114 |
Thereafter | 43,506 |
Total future minimum lease payments | $ 129,608 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information - Schedule of Supplemental Disclosure of Cash Flow Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid during the period for: | ||
Income taxes, net | $ 4,750 | $ 3,811 |
Interest | $ 3,126 | $ 2,441 |
Earnings Per Limited Partner _3
Earnings Per Limited Partner Unit - Net Income Allocation and Per Unit Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Basic and Diluted Earnings Per Limited Partner: | |||
Net income | $ 27,755 | $ 2,315 | |
Less General Partner’s interest in net income | 192 | 15 | |
Net income available to limited partners | 27,563 | 2,300 | |
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 | 4,351 | ||
Limited Partner’s interest in net income under FASB ASC 260-10-45-60 | $ 23,212 | $ 2,300 | |
Per unit data: | |||
Basic and diluted net income available to limited partners | $ 0.58 | $ 0.04 | |
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60 | 0.09 | ||
Limited Partner’s interest in net income under FASB ASC 260-10-45-60 | [1] | $ 0.49 | $ 0.04 |
Weighted average number of Limited Partner units outstanding | 47,266 | 52,905 | |
[1] | See Note 16 - Earnings Per Limited Partner Unit. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended |
Jan. 31, 2020USD ($)$ / sharesshares | |
Plan III Common Units Repurchase Program | |
Subsequent Event [Line Items] | |
Company's common units repurchased and retired | shares | 0.2 |
Average price paid per unit | $ / shares | $ 9.48 |
Dividend Declared | |
Subsequent Event [Line Items] | |
Distribution declared | $ / shares | 0.125 |
Partners capital projected distribution amount on annualized basis | $ / shares | 0.50 |
Minimum dividend distribution per unit | $ / shares | $ 0.0675 |
Amount to paid to common unit holders | $ | $ 5.8 |
Amount to paid to the General Partner | $ | 0.2 |
Incentive distribution to the General Partner | $ | 0.2 |
Incentive distributions to management | $ | $ 0.2 |
Dividend payable date | Feb. 4, 2020 |
Dividend record date | Jan. 27, 2020 |