Suburban Propane Partners, L.P. Declares Quarterly Distribution of $0.325 per Common Unit

Rhea-AI Summary

Suburban Propane Partners (NYSE:SPH) declared a quarterly distribution of $0.325 per common unit for the three months ended December 27, 2025, an annualized rate of $1.30 per unit. The distribution is payable on February 10, 2026 to holders of record as of February 3, 2026. The company said 100% of distributions to foreign investors are effectively connected income and subject to federal withholding; brokers and nominees are responsible for withholding.

Positive

• Quarterly distribution of $0.325 per common unit
• Annualized yield implied: $1.30 per common unit
• Payment scheduled on February 10, 2026 to recorded holders

Negative

• 100% of distribution is in excess of cumulative net income
• Distributions to foreign investors subject to full federal withholding

News Market Reaction

-1.02%

1 alert

-1.02% News Effect

On the day this news was published, SPH declined 1.02%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Quarterly distribution: $0.325 per Common Unit Annualized distribution rate: $1.30 per Common Unit Record date: February 3, 2026 +5 more

8 metrics

Quarterly distribution $0.325 per Common Unit For three months ended December 27, 2025

Annualized distribution rate $1.30 per Common Unit Implied by current quarterly rate

Record date February 3, 2026 Common Unitholders of record for this distribution

Payment date February 10, 2026 Scheduled cash distribution payment

Taxable portion to foreign investors 100% of distributions Treated as effectively connected U.S. trade or business income

Distribution vs net income 100% in excess of cumulative net income Amount realized under section 1.1446(f)-4(c)(2)(iii)

Customers served Approximately 1 million Residential, commercial, governmental, industrial and agricultural customers

Operating footprint 750 locations in 42 states Nationwide distribution network

Market Reality Check

Price: $20.17 Vol: Volume 125,726 is close t...

normal vol

$20.17 Last Close

Volume Volume 125,726 is close to the 20-day average of 128,223, suggesting typical trading interest into this distribution announcement. normal

Technical Price at 19.64 is trading above the 200-day MA of 18.83, indicating a pre-existing upward bias ahead of this payout news.

Peers on Argus

SPH gained 1.45% with a distribution declaration, while several regulated gas an...

SPH gained 1.45% with a distribution declaration, while several regulated gas and related peers (e.g., NWN, OPAL, MDU) also showed modest gains; however, no peers appeared in the momentum scanner, so the move screens as company-specific rather than a coordinated sector rotation.

Historical Context

5 past events · Latest: Dec 22 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 22	Debt issuance completed	Neutral	-0.1%	Completion of $350M 6.500% senior notes due 2035 and redemption funding.
Dec 08	Debt offering priced	Neutral	-0.9%	Pricing of $350M 6.500% senior notes due 2035 via private placement.
Dec 08	Debt offering proposed	Neutral	-0.3%	Announcement of proposed $350M senior notes due 2035 for refinancing.
Dec 02	Community initiative	Positive	-2.5%	Results from 2025 SuburbanCares initiative highlighting volunteer engagement.
Nov 26	Annual report filed	Neutral	+0.4%	Form 10-K filed detailing operations, scale, and risk factors.

Pattern Detected

Recent news flow has centered on debt refinancing and corporate updates, with mostly small price moves and one notable divergence on community-impact news.

Recent Company History

Over the past few months, SPH has focused on balance sheet actions and disclosure. It announced and then completed $350,000,000 of 6.500% senior notes due 2035, using proceeds to redeem 5.875% notes due 2027, with limited immediate price impact. Other updates included its 2025 SuburbanCares community initiative and the availability of the 2025 Form 10-K, noting about 1 million customers and 750 locations across 42 states. Today’s cash distribution notice fits this pattern of steady, informational releases rather than transformative events.

Market Pulse Summary

This announcement details a quarterly distribution of $0.325 per Common Unit, or $1.30 on an annuali...

Analysis

This announcement details a quarterly distribution of $0.325 per Common Unit, or $1.30 on an annualized basis, payable on February 10, 2026 to holders of record on February 3, 2026. The partnership clarifies that 100% of distributions to foreign investors are treated as effectively connected U.S. income and fully subject to withholding, and that 100% of this payout exceeds cumulative net income. Investors may watch future filings and calls for coverage metrics, capital allocation priorities, and any changes to distribution policy.

Key Terms

treasury regulation section 1.1446-4(b), effectively connected with a united states trade or business, federal income tax withholding, 1.1446(f)-4(c)(2)(iii), +2 more

6 terms

treasury regulation section 1.1446-4(b) regulatory

"This press release serves as qualified notice to brokers and nominees as provided for under Treasury Regulation Section 1.1446-4(b)."

A U.S. Treasury regulation that explains when and how a purchaser of a partnership interest must withhold tax when the seller is a foreign person, implementing the withholding rules of Internal Revenue Code section 1446. It matters to investors because it can affect the cash a buyer must hold back at closing (similar to a cashier keeping part of a sale until taxes are cleared), which changes deal proceeds, tax reporting, and timing of when funds become available.

effectively connected with a united states trade or business regulatory

"100% of Suburban Propane Partners, LP's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business."

A tax status describing when income earned by a foreign person or entity is treated as tied to active business operations inside the United States. If income is 'effectively connected' to a U.S. trade or business, it is usually taxed like domestic business income rather than as passive foreign-sourced income; think of it as income earned by someone who has a real storefront or employees inside the U.S. rather than just selling from afar. Investors care because this classification changes tax rates, reporting requirements, and after-tax returns on U.S.-linked activities.

federal income tax withholding regulatory

"distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate"

Federal income tax withholding is the portion of an employee’s wages that an employer automatically sends to the government to cover that person’s expected federal income tax bill. Think of it like an automatic savings pot taken from each paycheck so the worker doesn’t face a large one-time tax payment; for investors, withholding affects disposable income, cash flow planning, and the timing of tax liabilities tied to salary, dividends, or retirement distributions.

1.1446(f)-4(c)(2)(iii) regulatory

"Regarding the amount realized pursuant to 1.1446(f)-4(c)(2)(iii), 100% of the distribution is in excess of cumulative net income."

A citation to a specific U.S. Treasury regulation that implements withholding rules under Internal Revenue Code section 1446(f), which governs tax withholding when a foreign person sells or transfers an interest in a partnership. For investors, it matters because the rule explains who must collect and hold back tax at the point of sale—like a cashier taking a tax portion at checkout—affecting net proceeds, settlement paperwork and whether buyers or sellers need documented tax clearances.

withholding agents regulatory

"Brokers and nominees are treated as withholding agents responsible for withholding distributions"

A withholding agent is an entity (often an employer, broker, or payer) that is legally required to hold back and remit taxes or other required amounts from payments made to a recipient, such as wages, dividends, interest, or contractor fees. For investors, this matters because withheld amounts affect the cash they receive, determine tax reporting and potential refunds, and influence net returns in cross-border or taxable transactions — like a cashier keeping part of a payment to cover a bill.

master limited partnership financial

"Suburban Propane is a publicly traded master limited partnership listed on the New York Stock Exchange."

A master limited partnership is a type of business structure that combines features of a corporation and a partnership, allowing it to raise money from investors while passing profits directly to them. Think of it as a shared ownership group that offers regular income, making it attractive to investors seeking steady cash flow. This structure is often used by companies involved in natural resources or energy, where consistent revenue is common.

AI-generated analysis. Not financial advice.

WHIPPANY, N.J., Jan. 22, 2026 /PRNewswire/ -- Suburban Propane Partners, L.P. (NYSE:SPH), today announced that its Board of Supervisors declared a quarterly distribution of $0.325 per Common Unit for the three months ended December 27, 2025. This quarterly distribution rate equates to an annualized rate of $1.30 per Common Unit. The distribution is payable on February 10, 2026 to Common Unitholders of record as of February 3, 2026.

This press release serves as qualified notice to brokers and nominees as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Suburban Propane Partners, LP's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Suburban Propane Partners, LP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate without exception. Regarding the amount realized pursuant to 1.1446(f)-4(c)(2)(iii), 100% of the distribution is in excess of cumulative net income. Brokers and nominees are treated as withholding agents responsible for withholding distributions received by them on behalf of foreign investors.

About Suburban Propane Partners, L.P.
Suburban Propane Partners, L.P. ("Suburban Propane") is a publicly traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban Propane has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas ("RNG"), fuel oil and related products and services, as well as a marketer of natural gas and electricity and producer of and investor in low carbon fuel alternatives, servicing the energy needs of approximately 1 million residential, commercial, governmental, industrial and agricultural customers through approximately 750 locations across 42 states.

Suburban Propane is supported by three core pillars: (1) Suburban Commitment – showcasing Suburban Propane's almost 100-year legacy, an ongoing commitment to the highest standards for dependability, flexibility, and reliability that underscores Suburban Propane's commitment to excellence in customer service; (2) SuburbanCares – highlighting continued dedication to giving back to local communities across  Suburban Propane's national footprint; and (3) Go Green with Suburban Propane - promoting the clean burning and versatile nature of propane and renewable propane as a bridge to a green energy future and investing in the next generation of innovative, renewable energy alternatives.  For additional information on Suburban Propane, please visit www.suburbanpropane.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/suburban-propane-partners-lp-declares-quarterly-distribution-of-0-325-per-common-unit-302667468.html

SOURCE Suburban Propane Partners, L.P.

FAQ

What distribution did Suburban Propane Partners (SPH) declare on Jan 22, 2026?

Suburban Propane declared a $0.325 quarterly distribution per common unit, annualized to $1.30.

When is the SPH distribution payable and what is the record date?

The distribution is payable February 10, 2026 to holders of record as of February 3, 2026.

How are SPH distributions to foreign investors taxed for the Feb 2026 payment?

The company said 100% of distributions to foreign investors are effectively connected income and are subject to federal withholding at the highest rate.

Does the Jan 22, 2026 distribution reflect net income for SPH?

The company stated 100% of the distribution is in excess of cumulative net income.

Do brokers need to take action for SPH distributions to foreign holders?

Yes; brokers and nominees are treated as withholding agents responsible for withholding on behalf of foreign investors.

What is the annualized per-unit rate implied by SPH's quarterly distribution?

The quarterly rate of $0.325 implies an annualized rate of $1.30 per common unit.