STAR GROUP, L.P. Business Summary

Star Group, L.P. (SGU) is the largest retail distributor of home heating oil in the United States, operating as a master limited partnership (MLP) primarily within the Northeast and Mid-Atlantic regions. The company generates revenue through a dual-stream model: the high-volume sale of home heating products, including heating oil, propane, and diesel, and a higher-margin service segment focused on HVAC installation, maintenance, and repair. Its business is divided into residential and commercial segments, with a significant portion of income derived from recurring service contracts that enhance customer retention and mitigate the seasonality of fuel deliveries. Star Group competes directly with national players like Suburban Propane Partners (SPH) and regional utilities such as RGC Resources (RGCO) and Northwest Natural (NWN), maintaining a competitive edge through a dense hub-and-spoke distribution network and a strategy of aggressive "tuck-in" acquisitions of local independent dealers. Founded in 1995 as Star Gas Partners, the company is led by a deeply tenured executive team consisting of home-grown talent. President and CEO Jeffrey M. Woosnam, a 30-year veteran of the firm, has overseen operations since 2019, supported by Executive VP and CFO Richard F. Ambury, who has served as finance chief since 2006. The leadership team is rounded out by COO Jeffrey S. Hammond and Chief Customer Officer Joseph R. McDonald, both of whom joined the company in 2003. Governance is provided by the general partner, Kestrel Heat, LLC, which is controlled by Kestrel Energy Partners—a private equity vehicle formed by Chairman Paul Vermylen and Yorktown Energy Partners. Notable institutional investors include Bandera Partners LLC, Hartree Partners LP, and Lubar & Co., with Yorktown founder Bryan Lawrence serving as a key long-term director on the board.