WHIPPANY, N.J., April 26 /PRNewswire-FirstCall/ -- Suburban Propane
Partners, L.P. (NYSE:SPH), a marketer of propane gas, fuel oil and related
products and services nationwide, today announced that its Board of
Supervisors declared the thirteenth increase (since the Partnership's
recapitalization in 1999) in the Partnership's quarterly distribution from
$0.6875 to $0.70 per Common Unit for the three months ended March 31, 2007.
The distribution equates to $2.80 per Common Unit annualized, an increase
of $0.05 per Common Unit from the previous distribution rate, and is
payable on May 15, 2007 to Common Unitholders of record as of May 8, 2007.
The Partnership also announced its plan to make a voluntary
contribution of approximately $25.0 million to its defined benefit pension
plan in order to fully fund its accumulated benefit obligation. The
Partnership believes that this contribution will substantially reduce, if
not eliminate, future funding requirements. The Partnership expects to make
this voluntary contribution during its third quarter of fiscal 2007 from
cash on hand. As of March 31, 2007, the Partnership had more than $85.0
million of cash on hand and no amounts outstanding under its working
capital facility. The Partnership plans to issue its fiscal 2007 second
quarter earnings press release on May 10, 2007 and expects to report net
income that is in the range of 20% to 25% higher than the prior year second
quarter.
In announcing the increase in the distribution rate, Chief Executive
Officer Mark A. Alexander said, "With this increase, we are very pleased
that our distributions have grown 14% over the prior year second quarter.
Our disciplined approach toward steady distribution growth is in line with
our strategy of focusing on opportunities to deliver sustainable,
profitable growth in our core operating segments."
Mr. Alexander added, "The voluntary contribution to our pension plan to
fully fund our accumulated obligation further strengthens our financial
position and, we believe, will substantially reduce, if not eliminate, the
future financial burdens of the plan. We have taken positive steps over the
past several years to reduce the financial effects of the defined benefit
pension plan and this voluntary contribution will put the plan in a fully
funded position without the need to incur additional leverage."
Suburban Propane Partners, L.P. is a publicly traded Master Limited
Partnership listed on the New York Stock Exchange. Headquartered in
Whippany, New Jersey, Suburban has been in the customer service business
since 1928. The Partnership serves the energy needs of approximately
1,000,000 residential, commercial, industrial and agricultural customers
through more than 300 locations in 30 states.
SOURCE Suburban Propane Partners LP
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Related links:
http://suburbanpropane.com
http://www.prnewswire.com/comp/112074.html/
CONTACT:
Robert M. Plante, Vice President & Chief
Financial Officer of Suburban Propane Partners, +1-973-503-9252
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