WHIPPANY, N.J., Oct. 19 /PRNewswire-FirstCall/ -- Suburban Propane
Partners, L.P. (the "Partnership") (NYSE: SPH), a nationwide marketer of
propane gas, fuel oil and related products and services, today announced
the consummation of its previously announced agreement with the
Partnership's general partner, Suburban Energy Services Group LLC (the
"General Partner"), for the acquisition of the General Partner's incentive
distribution rights ("IDRs"), as well as its general partnership interests
in both the Partnership and its operating partnership, in exchange for
2,300,000 newly issued Common Units (the "Exchange Transaction"). As
previously announced, the Exchange Transaction was approved by the
requisite votes of the common unitholders of the Partnership at their 2006
Tri-Annual Meeting held on October 17, 2006 and then reconvened on October
19, 2006.
With the elimination of the General Partner's IDRs, 100% of all future
distribution increases will inure to the benefit of the Common Unitholders.
Pursuant to a Distribution, Release and Lockup Agreement by and among the
Partnership, its operating partnership, the General Partner and the members
of the General Partner, the Common Units received by the General Partner
will, in the next few days, be distributed to the members of the General
Partner in exchange for their membership interests in the General Partner.
Suburban Energy Services Group LLC will remain the general partner of both
the Partnership and its operating partnership with no economic interest in
future cash distributions (other than as a holder of 784 Common Units
received in the Exchange Transaction and not distributed to its members).
Also as previously announced, the Partnership's unitholders had
approved all but one of the other proposals on the agenda for the
Tri-Annual Meeting on October 17. At the Tri-Annual Meeting on October 17,
the Board of Supervisors exercised the authority granted to it by the
unitholders to adjourn the meeting until October 19, to give the
unitholders more time to vote on the last proposal, to amend the
Partnership Agreement to require a 66-2/3% vote for changes to the
procedure to nominate Supervisors. This last proposal was approved by the
unitholders when the Tri-Annual Meeting reconvened on October 19.
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 370 locations in 30 states.
This press release contains certain forward-looking statements relating
to future business expectations and financial condition and results of
operations of the Partnership, based on management's current good faith
expectations and beliefs concerning future developments. These
forward-looking statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those discussed
or implied in such forward-looking statements, including the following:
-- The impact of weather conditions on the demand for propane, fuel oil
and other refined fuels, natural gas and electricity;
-- Fluctuations in the unit cost of propane, fuel oil and other refined
fuels and natural gas, and the impact of price increases on customer
conservation;
-- The ability of the Partnership to compete with other suppliers of
propane, fuel oil and other energy sources;
-- The impact on the price and supply of propane, fuel oil and other
refined fuels from the political, military or economic instability of
the oil producing nations, global terrorism and other general economic
conditions;
-- The ability of the Partnership to acquire and maintain reliable
transportation for its propane, fuel oil and other refined fuels;
-- The ability of the Partnership to retain customers;
-- The impact of energy efficiency and technology advances on the demand
for propane and fuel oil;
-- The ability of management to continue to control expenses including the
results of our recent field realignment initiative;
-- The impact of changes in applicable statutes and government
regulations, or their interpretations, including those relating to the
environment and global warming and other regulatory developments on the
Partnership's business;
-- The impact of operating hazards that could adversely affect the
Partnership's operating results to the extent not covered by insurance;
-- The impact of legal proceedings on the Partnership's business; and
-- The Partnership's ability to integrate acquired businesses
successfully.
Some of these risks and uncertainties are discussed in more detail in
the Partnership's Annual Report on Form 10-K for its fiscal year ended
September 24, 2005, its Quarterly Report on Form 10-Q for the quarter ended
June 24, 2006 and other periodic reports filed with the Securities and
Exchange Commission. Readers are cautioned not to place undue reliance on
forward- looking statements, which reflect management's view only as of the
date made. The Partnership undertakes no obligation to update any
forward-looking statement.
SOURCE Suburban Propane Partners, L.P.
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Related links:
http://suburbanpropane.com
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CONTACT:
Robert M. Plante, Vice President & Chief
Financial Officer, Suburban Propane Partners, L.P.,
+1-973-503-9252
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