Business Context and Reporting Period
Company: Star Gas Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: April 3, 2006
Reporting Period: Three months ended March 31, 2006
The filing discloses results of operations and financial condition related to a rights offering, specifically detailing retail home heating oil sales volumes for the first quarter of fiscal 2006.
Key Financial Metrics
The filing provides operational volume data but does not disclose specific revenue, profit, cash flow, margin, debt, or liquidity figures.
- Retail Home Heating Oil Volume (Q1 2006): 183.3 million gallons
- Retail Home Heating Oil Volume (Q1 2005): 245.0 million gallons
- Volume Decline: 61.7 million gallons (25.2% decrease)
Material Changes Versus Prior Period
There was a significant year-over-year decline in retail home heating oil volume sold.
- Volume Trend: Sales dropped 25.2% compared to the same period in 2005.
- Primary Drivers: Management attributes the decline to net customer attrition, conservation efforts, and warmer temperatures.
- Weather Impact: Temperatures were estimated to be approximately 15% warmer in the three months ended March 31, 2006, compared to the prior year period.
Guidance, Outlook, and Management Commentary
Management expects home heating oil volumes for the remainder of fiscal 2006 to be substantially less than the comparable period in fiscal 2005.
- Outlook Factors: Continued net customer attrition, conservation, and delivery scheduling are cited as reasons for the expected lower volumes.
- Regulatory Action: The Partnership filed Amendment No. 2 to its Registration Statement on Form S-3 regarding a previously announced rights offering to common unitholders.
Investor Verification Checklist
- Verify the full text of Amendment No. 2 to the Form S-3 Registration Statement for details on the rights offering.
- Confirm the impact of the 25.2% volume decline on the Partnership's overall revenue and distributable cash flow in subsequent financial reports.
- Monitor customer attrition rates and conservation trends for the remainder of fiscal 2006.
- Review weather forecasts and historical temperature data to assess the sustainability of the volume outlook.