10-Q

8

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-14129

STAR GROUP, L.P.

(Exact Name of Registrant as Specified in its Charter)

Delaware	06-1437793
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
9 West Broad Street Stamford, Connecticut	06902
(Address of principal executive office)

Registrant’s telephone number, including area code: (203) 328-7310

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Unit	SGU	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non- accelerated filer	☐	Smaller reporting company	☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

At January 31, 2020, the registrant had 46,243,707 Common Units outstanding.

STAR GROUP, L.P. AND SUBSIDIARIES

INDEX TO FORM 10-Q

	Page
Part I Financial Information
Item 1 - Condensed Consolidated Financial Statements	3
Condensed Consolidated Balance Sheets as of December 31, 2019 (unaudited) and September 30, 2019	3
Condensed Consolidated Statements of Operations (unaudited) for the three months ended December 31, 2019 and December 31, 2018	4
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) for the three months ended December 31, 2019 and December 31, 2018	5
Condensed Consolidated Statement of Partners’ Capital (unaudited) for the three months ended December 31, 2019 and December 31, 2018	6
Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended December 31, 2019 and December 31, 2018	7
Notes to Condensed Consolidated Financial Statements (unaudited)	8-21
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations	22-32
Item 3 - Quantitative and Qualitative Disclosures About Market Risk	33
Item 4 - Controls and Procedures	33
Part II Other Information:	34
Item 1 - Legal Proceedings	34
Item 1A - Risk Factors	34
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6 - Exhibits	35
Signatures	36

2

Part I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

STAR GROUP, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	December 31,			September 30,
	2019			2019
(in thousands)	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	14,542		$	4,899
Receivables, net of allowance of $8,499 and $8,378, respectively		205,038			120,245
Inventories		80,261			64,788
Fair asset value of derivative instruments		1,247			—
Prepaid expenses and other current assets		38,909			36,898
Total current assets		339,997			226,830
Property and equipment, net		96,512			98,239
Operating lease right-of-use assets		103,492			—
Goodwill		244,574			244,574
Intangibles, net		103,537			107,688
Restricted cash		250			250
Captive insurance collateral		62,703			58,490
Deferred charges and other assets, net		18,083			16,635
Total assets	$	969,148		$	752,706
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities
Accounts payable	$	47,302		$	33,973
Revolving credit facility borrowings		112,688			24,000
Fair liability value of derivative instruments		1,893			8,262
Current maturities of long-term debt		9,750			9,000
Current portion of operating lease liabilities		20,202			—
Accrued expenses and other current liabilities		132,837			120,839
Unearned service contract revenue		70,087			61,213
Customer credit balances		52,766			68,270
Total current liabilities		447,525			325,557
Long-term debt		119,525			120,447
Long-term operating lease liabilities		88,707			—
Deferred tax liabilities, net		21,655			20,116
Other long-term liabilities		20,838			25,746
Partners’ capital
Common unitholders		289,268			279,709
General partner		(1,991	)		(1,968	)
Accumulated other comprehensive loss, net of taxes		(16,379	)		(16,901	)
Total partners’ capital		270,898			260,840
Total liabilities and partners’ capital	$	969,148		$	752,706

See accompanying notes to condensed consolidated financial statements.

3

STAR GROUP, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended December 31,
(in thousands, except per unit data - unaudited)	2019			2018
Sales:
Product	$	432,688		$	458,707
Installations and services		76,257			76,320
Total sales		508,945			535,027
Cost and expenses:
Cost of product		287,673			306,226
Cost of installations and services		73,669			74,317
(Increase) decrease in the fair value of derivative instruments		(6,417	)		31,039
Delivery and branch expenses		96,726			102,673
Depreciation and amortization expenses		9,050			7,745
General and administrative expenses		6,506			7,815
Finance charge income		(713	)		(851	)
Operating income		42,451			6,063
Interest expense, net		(2,679	)		(2,516	)
Amortization of debt issuance costs		(235	)		(259	)
Income before income taxes		39,537			3,288
Income tax expense		11,782			973
Net income	$	27,755		$	2,315
General Partner’s interest in net income		192			15
Limited Partners’ interest in net income	$	27,563		$	2,300
Basic and diluted income per Limited Partner Unit (1):	$	0.49		$	0.04
Weighted average number of Limited Partner units outstanding:
Basic and Diluted		47,266			52,905

(1) See Note 16 - Earnings Per Limited Partner Unit.

See accompanying notes to condensed consolidated financial statements.

4

STAR GROUP, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended December 31,
(in thousands - unaudited)	2019			2018
Net income	$	27,755		$	2,315
Other comprehensive income:
Unrealized gain on pension plan obligation (1)		455			454
Tax effect of unrealized gain on pension plan obligation		(125	)		(124	)
Unrealized gain (loss) on captive insurance collateral		(64	)		389
Tax effect of unrealized gain (loss) on captive insurance collateral		8			(82	)
Unrealized gain (loss) on interest rate hedges		334			(745	)
Tax effect of unrealized gain (loss) on interest rate hedges		(86	)		197
Total other comprehensive income		522			89
Total comprehensive income	$	28,277		$	2,404

(1) This item is included in the computation of net periodic pension cost.    

See accompanying notes to condensed consolidated financial statements.

5

STAR GROUP, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF PARTNERS’ CAPITAL

	Three Months Ended December 31, 2019
	Number of Units											Accum. Other			Total
(in thousands - unaudited)	Common			General Partner		Common			General Partner			Comprehensive Income (Loss)			Partners’ Capital
Balance as of September 30, 2019		47,685			326	$	279,709		$	(1,968	)	$	(16,901	)	$	260,840
Net income		—			—		27,563			192			—			27,755
Unrealized gain on pension plan obligation		—			—		—			—			455			455
Tax effect of unrealized gain on pension plan obligation		—			—		—			—			(125	)		(125	)
Unrealized loss on captive insurance collateral		—			—		—			—			(64	)		(64	)
Tax effect of unrealized loss on captive insurance collateral		—			—		—			—			8			8
Unrealized gain on interest rate hedges		—			—		—			—			334			334
Tax effect of unrealized gain on interest rate hedges		—			—		—			—			(86	)		(86	)
Distributions		—			—		(5,940	)		(215	)		—			(6,155	)
Retirement of units (1)		(1,281	)		—		(12,064	)		—			—			(12,064	)
Balance as of December 31, 2019 (unaudited)		46,404			326	$	289,268		$	(1,991	)	$	(16,379	)	$	270,898
	Three Months Ended December 31, 2018
	Number of Units											Accum. Other			Total
(in thousands - unaudited)	Common			General Partner		Common			General Partner			Comprehensive Income (Loss)			Partners’ Capital
Balance as of September 30, 2018		53,088			326	$	329,129		$	(1,303	)	$	(18,041	)	$	309,785
Impact of adoption of ASU No. 2014-09		—			—		9,164			60			—			9,224
Net income		—			—		2,300			15			—			2,315
Unrealized gain on pension plan obligation		—			—		—			—			454			454
Tax effect of unrealized gain on pension plan obligation		—			—		—			—			(124	)		(124	)
Unrealized gain on captive insurance collateral		—			—		—			—			389			389
Tax effect of unrealized gain on captive insurance collateral		—			—		—			—			(82	)		(82	)
Unrealized loss on interest rate hedges		—			—		—			—			(745	)		(745	)
Tax effect of unrealized loss on interest rate hedges		—			—		—			—			197			197
Distributions		—			—		(6,225	)		(188	)		—			(6,413	)
Retirement of units (1)		(599	)		—		(5,735	)		—			—			(5,735	)
Balance as of December 31, 2018 (unaudited)		52,489			326	$	328,633		$	(1,416	)	$	(17,952	)	$	309,265

(1) See Note 4 – Common Unit Repurchase and Retirement.

See accompanying notes to condensed consolidated financial statements.

6

STAR GROUP, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended December 31,
(in thousands - unaudited)	2019			2018
Cash flows provided by (used in) operating activities:
Net income	$	27,755		$	2,315
Adjustment to reconcile net income to net cash provided by (used in)    operating activities:
(Increase) decrease in fair value of derivative instruments		(6,417	)		31,039
Depreciation and amortization		9,285			8,004
Provision for losses on accounts receivable		1,010			1,529
Change in deferred taxes		1,336			(616	)
Changes in operating assets and liabilities:
Increase in receivables		(85,745	)		(95,743	)
Increase in inventories		(15,427	)		(20,187	)
Increase in other assets		(2,394	)		(3,235	)
Increase in accounts payable		14,375			8,206
Decrease in customer credit balances		(15,898	)		(14,120	)
Increase in other current and long-term liabilities		20,529			19,917
Net cash used in operating activities		(51,591	)		(62,891	)
Cash flows provided by (used in) investing activities:
Capital expenditures		(3,024	)		(4,025	)
Proceeds from sales of fixed assets		63			644
Purchase of investments		(4,206	)		(4,456	)
Acquisitions		(496	)		(275	)
Net cash used in investing activities		(7,663	)		(8,112	)
Cash flows provided by (used in) financing activities:
Revolving credit facility borrowings		90,202			92,500
Revolving credit facility repayments		(39,014	)		—
Loan issuance		130,000			—
Term loan repayments		(92,500	)		—
Distributions		(6,155	)		(6,413	)
Unit repurchases		(12,064	)		(5,735	)
Customer retainage payments		(299	)		(57	)
Payments of debt issue costs		(1,273	)		(34	)
Net cash provided by financing activities		68,897			80,261
Net increase in cash, cash equivalents, and restricted cash		9,643			9,258
Cash, cash equivalents, and restricted cash at beginning of period		5,149			14,781
Cash, cash equivalents, and restricted cash at end of period	$	14,792		$	24,039

See accompanying notes to condensed consolidated financial statements.

7

STAR GROUP, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1) Organization

Star Group, L.P. (“Star,” the “Company,” “we,” “us,” or “our”) is a full service provider specializing in the sale of home heating and air conditioning products and services to residential and commercial home heating oil and propane customers. The Company has one reportable segment for accounting purposes.  We also sell diesel fuel, gasoline and home heating oil on a delivery only basis, and in certain of our marketing areas, we provide plumbing services primarily to our home heating oil and propane customer base. We believe we are the nation’s largest retail distributor of home heating oil based upon sales volume. Including our propane locations, we serve customers in the more northern and eastern states within the Northeast, Central and Southeast U.S. regions.

The Company is organized as follows:

• Star is a limited partnership, which at December 31, 2019, had outstanding 46.4 million Common Units (NYSE: “SGU”), representing a 99.3% limited partner interest in Star, and 0.3 million general partner units, representing a 0.7% general partner interest in Star. Our general partner is Kestrel Heat, LLC, a Delaware limited liability company (“Kestrel Heat” or the “general partner”). The Board of Directors of Kestrel Heat (the “Board”) is appointed by its sole member, Kestrel Energy Partners, LLC, a Delaware limited liability company (“Kestrel”).  Since November 1, 2017, Star elected to be treated as a corporation for Federal income tax purposes, so both Star and its subsidiaries (that were already taxable entities) are now subject to Federal and state corporate income taxes. As a result of this election, the Company issued its last Schedule K-1’s for the 2017 calendar year, and now issues Forms 1099-DIV to unitholders.

• Star owns 100% of Star Acquisitions, Inc. (“SA”), a Minnesota corporation that owns 100% of Petro Holdings, Inc. (“Petro”). SA and its subsidiaries are subject to Federal and state corporate income taxes. Star’s operations are conducted through Petro and its subsidiaries. Petro is primarily a Northeast, Central and Southeast U.S. region retail distributor of home heating oil and propane that at December 31, 2019 served approximately 454,000 full service residential and commercial home heating oil and propane customers and 59,000 customers on a delivery only basis. We also sell gasoline and diesel fuel to approximately 26,000 customers. We install, maintain, and repair heating and air conditioning equipment and to a lesser extent provide these services outside our heating oil and propane customer base including approximately 18,000 service contracts for natural gas and other heating systems.

• Petroleum Heat and Power Co., Inc. (“PH&P”) is a 100% owned subsidiary of Star. PH&P is the borrower and Star is the guarantor of the fifth amended and restated credit agreement’s $130 million five-year senior secured term loan and the $300 million ($450 million during the heating season of December through April of each year) revolving credit facility, both due December 4, 2024. (See Note 11—Long-Term Debt and Bank Facility Borrowings)

2) Summary of Significant Accounting Policies

Basis of Presentation

The Consolidated Financial Statements include the accounts of Star and its subsidiaries. All material intercompany items and transactions have been eliminated in consolidation.

The financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair statement of financial condition and results for the interim periods. Due to the seasonal nature of the Company’s business, the results of operations and cash flows for the three-month period ended December 31, 2019 are not necessarily indicative of the results to be expected for the full year.

These interim financial statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2019.

Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of Net income (loss) and Other comprehensive income (loss). Other comprehensive income (loss) consists of the unrealized gain amortization on the Company’s pension plan obligation for its two frozen defined benefit pension plans, unrealized gain (loss) on available-for-sale investments, unrealized gain (loss) on interest rate hedge and the corresponding tax effects.

8

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. At December 31, 2019, the $14.8 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $14.5 million of cash and cash equivalents and $0.3 million of restricted cash. At September 30, 2019, the $5.1 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $4.9 million of cash and cash equivalents and $0.3 million of restricted cash. Restricted cash represents deposits held by our captive insurance company that are required by state insurance regulations to remain in the captive insurance company as cash.

Captive Insurance Collateral

The captive insurance collateral is held by our captive insurance company in an irrevocable trust as collateral for certain workers’ compensation and automobile liability claims.  The collateral is required by a third party insurance carrier that insures per claim amounts above a set deductible. Due to the expected timing of claim payments, the nature of the collateral agreement with the carrier, and our captive insurance company’s source of other operating cash, the collateral is not expected to be used to pay obligations within the next twelve months.

At December 31, 2019, captive insurance collateral is comprised of $61.2 million of Level 1 debt securities measured at fair value and $1.5 million of mutual funds measured at net asset value.  At September 30, 2019, the balance was comprised of $58.0 million of Level 1 debt securities measured at fair value and $0.5 million of mutual funds measured at net asset value. Unrealized gains and losses, net of related income taxes, are reported as accumulated other comprehensive gain (loss), except for losses from impairments which are determined to be other-than-temporary. Realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are included in the determination of net income and are included in Interest expense, net, at which time the average cost basis of these securities are adjusted to fair value.

Weather Hedge Contract

To partially mitigate the adverse effect of warm weather on cash flows, the Company has used weather hedge contracts for a number of years. Weather hedge contracts are recorded in accordance with the intrinsic value method defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-45-15 Derivatives and Hedging, Weather Derivatives (EITF 99-2). The premium paid is included in the caption “Prepaid expenses and other current assets” in the accompanying balance sheets and amortized over the life of the contract, with the intrinsic value method applied at each interim period.

The Company entered into weather hedge contracts for fiscal years 2019, 2020 and 2021.  Under these contracts, we are entitled to receive a payment if the total number of degree days within the hedge period is less than the prior ten year average. The “Payment Thresholds,” or strikes, are set at various levels. In addition, we will be obligated to make a payment capped at $5.0 million if degree days exceed the Payment Threshold which approximates the prior ten year average. The hedge period runs from November 1 through March 31, taken as a whole, for each respective fiscal year.  For fiscal 2020 and 2021 the maximum that the Company can receive annually is $12.5 million and the maximum that the Company would be obligated to pay annually is $5.0 million.  As of December 31, 2019, the Company recorded a charge of $3.0 million under this contract that increased delivery and branch expenses. As of December 31, 2018, the Company recorded a charge of $2.0 million under its contract and ultimately paid $2.1 million in April 2019 after the fiscal 2019 heating season.

New England Teamsters and Trucking Industry Pension Fund (“the NETTI Fund”) Liability

As of December 31, 2019, we had $0.2 million and $16.9 million balances included in the captions “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, on our Condensed Consolidated Balance Sheet representing the remaining balance of the NETTI Fund withdrawal liability. Based on the borrowing rates currently available to the Company for long-term financing of a similar maturity, the fair value of the NETTI Fund withdrawal liability as of December 31, 2019 was $22.1 million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability.

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC Topic 842”).  The update requires all leases with a term greater than twelve months to be recognized on the balance sheet by recording (i) a lease liability that represents a lessee’s obligation to make lease payments arising from a lease, measured at the present value of the remaining lease payments; and (2) a right-of-use (“ROU”) asset that represents the lessee’s right to use a specified asset for the lease term, measured in an amount equal to the lease liability adjusted for accrued lease payments.  The standard also requires the disclosure of key information pertaining to leasing arrangements.  

9

As of October 1, 2019, the Company adopted ASC Topic 842 using the modified retrospective transition approach as of the effective date as permitted by the amendments in ASU 2018-11.  As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for periods before the date of adoption (i.e. October 1, 2019).  The Company has elected to adopt the package of transition practical expedients and, therefore, has not reassessed (1) whether existing or expired contracts contain a lease, (2) lease classification for existing or expired leases or (3) the accounting for initial direct costs that were previously capitalized.  We also elected a practical expedient to not separate non-lease components from the lease components and excluded short term leases from the calculation of right of use asset and operating lease liability.  For certain leases relating to vehicles and equipment we elected to apply portfolio approach guidance and accounted for leases with similar characteristics as a single lease. The Company did not elect the practical expedient to use hindsight for leases existing at the adoption date.

The adoption of ASC Topic 842 had a material impact to the Company’s Condensed Consolidated Balance Sheet, but did not impact the Condensed Consolidated Statement of Operations or Condensed Consolidated Statement of Partners’ Capital. The most significant changes to the Condensed Consolidated Balance Sheet relate to the recognition of the following as of October 1, 2019:  “Operating lease right-of-use assets” in the amount of $104.7 million, “Current portion of operating lease liabilities” in the amount of $20.1 million and “Long-term operating lease liabilities” in the amount of $89.9 million. The adoption of ASC Topic 842 also had no impact on operating, investing, or financing cash flows in the Condensed Consolidated Statement of Cash Flows. However, ASC Topic has significantly affected the Company’s disclosures about noncash investing activities. Additionally, the Company’s lease-related disclosures have significantly increased as of and for the three months ended December 31, 2019 as compared to prior years. See Note 13 – Leases for further details on the adoption of ASC Topic 842.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. The update broadens the information that an entity should consider in developing expected credit loss estimates, eliminates the probable initial recognition threshold, and allows for the immediate recognition of the full amount of expected credit losses. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021. The Company is evaluating the effect that ASU No. 2016-13 will have on its consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 230): Simplifying the Test for Goodwill Impairment. The update simplifies how an entity is required to test goodwill for impairment. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but not exceed the total amount of goodwill allocated to the reporting unit. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company has not determined the timing of adoption, but does not expect ASU 2017-04 to have a material impact on its consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-14 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2022, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-15 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption.

10

3) Revenue Recognition

The following disaggregates our revenue by major sources for the three months ended December 31, 2019 and December 31, 2018:

	Three Months Ended December 31,
(in thousands)	2019		2018
Petroleum Products:
Home heating oil and propane	$	343,346	$	364,202
Other petroleum products		89,342		94,505
Total petroleum products		432,688		458,707
Installations and Services:
Equipment installations		30,565		29,983
Equipment maintenance service contracts		27,908		28,319
Billable call services		17,784		18,018
Total installations and services		76,257		76,320
Total Sales	$	508,945	$	535,027

Deferred Contract Costs

 We recognize an asset for incremental commission expenses paid to sales personnel in conjunction with obtaining new residential customer product and equipment maintenance service contracts. We defer these costs only when we have determined the commissions are, in fact, incremental and would not have been incurred absent the customer contract. Costs to obtain a contract are amortized and recorded ratably as delivery and branch expenses over the period representing the transfer of goods or services to which the assets relate.  Costs to obtain new residential product and equipment maintenance service contracts are amortized as expense over the estimated customer relationship period of approximately five years.  Deferred contract costs are classified as current or non-current within “Prepaid expenses and other current assets” and “Deferred charges and other assets, net,” respectively.  At December 31, 2019 the amount of deferred contract costs included in “Prepaid expenses and other current assets” and “Deferred charges and other assets, net” was $3.5 million and $6.4 million, respectively.  For the quarter ended December 31, 2019 we recognized expense of $1.0 million associated with the amortization of deferred contract costs within “Delivery and branch expenses” in the Condensed Consolidated Statement of Operations.    

Contract Liability Balances

The Company has contract liabilities for advanced payments received from customers for future oil deliveries (primarily amounts received from customers on “smart pay” budget payment plans in advance of oil deliveries) and obligations to service customers with equipment maintenance service contracts.  Contract liabilities are recognized straight-line over the service contract period, generally one year or less.  As of December 31, 2019 and September 30, 2019 the Company had contract liabilities of $120.5 million and $127.0 million, respectively.  During the quarter ended December 31, 2019 the Company recognized $71.5 million of revenue that was included in the September 30, 2019 contract liability balance.During the quarter ended December 31, 2018 the Company recognized $67.1 million of revenue that was included in the September 30, 2018 contract liability balance.

4) Common Unit Repurchase and Retirement

In July 2012, the Board adopted a plan to repurchase certain of the Company’s Common Units that was amended in fiscal 2018 (the “Repurchase Plan”).  Through August 2019, the Company had repurchased approximately 9.5 million Common Units under the Repurchase Plan. In August 2019, the Board authorized an increase of the number of Common Units that remained available for the Company to repurchase from 1.3 million to a total of 2.3 million, of which 1.0 million were available for repurchase in open market transactions and 1.3 million were available for repurchase in privately-negotiated transactions.  During the first fiscal quarter of 2020, the Company repurchased approximately 0.7 million Common Units in open market transactions under the Repurchase Plan and 0.3 million Common Units remained available for repurchase at the end of the first fiscal quarter of 2020.  There is no guarantee of the exact number of units that will be purchased under the Repurchase Plan and the Company may discontinue purchases at any time. The Repurchase Plan does not have a time limit. The Board may also approve additional purchases of units from time to time in private transactions. The Company’s repurchase activities take into account SEC safe harbor rules and guidance for issuer repurchases. All of the Common Units purchased in the Repurchase Plan will be retired.

Under the Company’s fifth amended and restated credit agreement dated December 4, 2019, in order to repurchase Common Units we must maintain Availability (as defined in the fifth amended and restated credit agreement) of $45 million, 15.0% of the facility size of $300 million (assuming the non-seasonal aggregate commitment is outstanding) on a historical pro forma and forward-

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looking basis, and a fixed charge coverage ratio of not less than 1.15 measured as of the date of repurchase.  The Company was in compliance with this covenant as of December 31, 2019.

The following table shows repurchases under the Repurchase Plan.

(in thousands, except per unit amounts)
Period	Total Number of Units Purchased		Average Price Paid per Unit (a)		Total Number of Units Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Units that May Yet Be Purchased
Fiscal year 2012 to 2019 total		13,340	$	8.08		10,896		956
October 2019		223	$	9.44		223		733
November 2019		261	$	9.39		261		472
December 2019		797	$	9.42		166		306	(b)
First quarter fiscal year 2020 total		1,281	$	9.42		650		306
January 2020		160	$	9.48		160		146	(c)

(a) Amount includes repurchase costs.

(b) First quarter of fiscal year 2020 Common Units repurchased include 0.6 million Common Units acquired in a private transaction.

(c) Of the total available for repurchase, less than 0.1 million are available for repurchase in open market transactions and 0.1 million are available for repurchase in privately-negotiated transactions.

5) Captive Insurance Collateral

The Company considers all of its captive insurance collateral to be available-for-sale investments. Investments at December 31, 2019 consist of the following (in thousands):

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Fair Value
Cash and Receivables	$	1,502	$	—	$	—		$	1,502
U.S. Government Sponsored Agencies		32,397		144		(1	)		32,540
Corporate Debt Securities		23,787		753		—			24,540
Foreign Bonds and Notes		4,052		69		—			4,121
Total	$	61,738	$	966	$	(1	)	$	62,703

Investments at September 30, 2019 consist of the following (in thousands):

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Fair Value
Cash and Receivables	$	509	$	—	$	—		$	509
U.S. Government Sponsored Agencies		29,055		198		(3	)		29,250
Corporate Debt Securities		23,831		773		—			24,604
Foreign Bonds and Notes		4,066		61		—			4,127
Total	$	57,461	$	1,032	$	(3	)	$	58,490

Maturities of investments were as follows at December 31, 2019 (in thousands):

	Net Carrying Amount
Due within one year	$	9,946
Due after one year through five years		41,173
Due after five years through ten years		11,584
Total	$	62,703

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6) Derivatives and Hedging—Disclosures and Fair Value Measurements

The Company uses derivative instruments such as futures, options and swap agreements in order to mitigate exposure to market risk associated with the purchase of home heating oil for price-protected customers, physical inventory on hand, inventory in transit, priced purchase commitments and internal fuel usage. FASB ASC 815-10-05 Derivatives and Hedging, established accounting and reporting standards requiring that derivative instruments be recorded at fair value and included in the consolidated balance sheet as assets or liabilities, along with qualitative disclosures regarding the derivative activity. The Company has elected not to designate its commodity derivative instruments as hedging derivatives, but rather as economic hedges whose change in fair value is recognized in its statement of operations in the caption “(Increase) decrease in the fair value of derivative instruments.” Depending on the risk being economically hedged, realized gains and losses are recorded in cost of product, cost of installations and services, or delivery and branch expenses.

As of December 31, 2019, to hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers, the Company held the following derivative instruments that settle in future months to match anticipated sales: 17.2 million gallons of swap contracts, 7.4 million gallons of call options, 7.2 million gallons of put options, and 85.8 million net gallons of synthetic call options. To hedge the inter-month differentials for its price-protected customers, its physical inventory on hand and inventory in transit, the Company, as of December 31, 2019, 18.2 million gallons of long future contracts, and 42.1 million gallons of short future contracts that settle in future months.  To hedge its internal fuel usage and other activities for fiscal 2020, the Company, as of December 31, 2019, had 4.0 million gallons of swap contracts and 0.2 million gallons of short swap contracts that settle in future months.

As of December 31, 2018, to hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers, the Company held the following derivative instruments that settle in future months to match anticipated sales: 14.0 million gallons of swap contracts, 7.9 million gallons of call options, 6.4 million gallons of put options, and 92.4 million net gallons of synthetic call options. To hedge the inter-month differentials for its price-protected customers, its physical inventory on hand and inventory in transit, the Company, as of December 31, 2018, had 18.3 million gallons of long future contracts, and 41.2 million gallons of short future contracts that settle in future months. To hedge its internal fuel usage and other related activities for fiscal 2019, the Company, as of December 31, 2018, had 4.3 million gallons of swap contracts and 2.0 million gallons of short swap contracts that settle in future months.

In August 2018, the Company entered into interest rate swap agreements in order to mitigate exposure to market risk associated with variable rate interest on $50.0 million, or 50%, of its long term debt.  The Company has designated its interest rate swap agreements as cash flow hedging derivatives.  To the extent these derivative instruments are effective and the standard’s documentation requirements have been met, changes in fair value are recognized in other comprehensive income until the underlying hedged item is recognized in earnings.  As of December 31, 2019, the notional value of the swap contracts was $43.8 million and the fair value of the swap contracts was $(1.6 million). As of September 30, 2019, the notional value of the swap contracts was $45.0 million and the fair value of the swap contracts was $(2.0) million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of the swap contracts.

The Company’s derivative instruments are with the following counterparties: Bank of America, N.A., Bank of Montreal, Cargill, Inc., Citibank, N.A., JPMorgan Chase Bank, N.A., Key Bank, N.A., Regions Financial Corporation, Toronto-Dominion Bank and Wells Fargo Bank, N.A. The Company assesses counterparty credit risk and considers it to be low. We maintain master netting arrangements that allow for the non-conditional offsetting of amounts receivable and payable with counterparties to help manage our risks and record derivative positions on a net basis. The Company generally does not receive cash collateral from its counterparties and does not restrict the use of cash collateral it maintains at counterparties. At December 31, 2019, the aggregate cash posted as collateral in the normal course of business at counterparties was $2.8 million and recorded in “Prepaid expense and other current assets.” Positions with counterparties who are also parties to our credit agreement are collateralized under that facility. As of December 31, 2019, $1.2 million of hedge positions and payable amounts were secured under the credit facility.

FASB ASC 820-10 Fair Value Measurements and Disclosures, established a three-tier fair value hierarchy, which classified the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s Level 1 derivative assets and liabilities represent the fair value of commodity contracts used in its hedging activities that are identical and traded in active markets. The Company’s Level 2 derivative assets and liabilities represent the fair value of commodity and interest rate contracts used in its hedging activities that are valued using either directly or indirectly observable inputs, whose nature, risk and class are similar. No significant transfers of assets or liabilities have been made into and out of the Level 1 or Level 2 tiers. All derivative instruments were non-trading positions and were either a Level 1 or Level 2 instrument. The Company had no Level 3 derivative instruments. The fair market value of our Level 1 and Level 2 derivative assets and liabilities are calculated by our counter-parties and are independently validated by the Company. The Company’s calculations are, for Level 1 derivative assets and liabilities, based on the published New York Mercantile Exchange (“NYMEX”) market prices for the commodity contracts open at the end of the period. For Level 2 derivative assets and liabilities the calculations performed by the

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Company are based on a combination of the NYMEX published market prices and other inputs, including such factors as present value, volatility and duration.

The Company had no assets or liabilities that are measured at fair value on a nonrecurring basis subsequent to their initial recognition. The Company’s financial assets and liabilities measured at fair value on a recurring basis are listed on the following table.

(In thousands)					Fair Value Measurements at Reporting Date Using:
Derivatives Not Designated    as Hedging Instruments					Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs
Under FASB ASC 815-10	Balance Sheet Location	Total			Level 1		Level 2
Asset Derivatives at December 31, 2019
Commodity contracts	Fair asset and liability value of derivative instruments	$	7,106		$	—	$	7,106
Commodity contracts	Long-term derivative assets included in the deferred charges and other assets, net and other long-term liabilities, net balances		895			—		895
Commodity contract assets at December 31, 2019		$	8,001		$	—	$	8,001
Liability Derivatives at December 31, 2019
Commodity contracts	Fair asset and liability value of derivative instruments	$	(7,752	)	$	—	$	(7,752	)
Commodity contracts	Long-term derivative liabilities  included in the deferred charges and other assets, net and other long-term liabilities, net balances		(1,025	)		—		(1,025	)
Commodity contract liabilities at December 31, 2019		$	(8,777	)	$	—	$	(8,777	)
Asset Derivatives at September 30, 2019
Commodity contracts	Fair liability value of derivative instruments	$	13,824		$	—	$	13,824
Commodity contracts	Long-term derivative assets included in the deferred charges and other assets, net balance and other long term liabilities, net		1,466			—		1,466
Commodity contract assets September 30, 2019		$	15,290		$	—	$	15,290
Liability Derivatives at September 30, 2019
Commodity contracts	Fair liability value of derivative instruments	$	(22,086	)	$	—	$	(22,086	)
Commodity contracts	Long-term derivative liabilities included in the deferred charges and other assets, net balance and other long term liabilities, net		(1,719	)		—		(1,719	)
Commodity contract liabilities September 30, 2019		$	(23,805	)	$	—	$	(23,805	)

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The Company’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table.

(In thousands)									Gross Amounts Not Offset in the Statement of Financial Position
Offsetting of Financial Assets (Liabilities)    and Derivative Assets (Liabilities)	Gross Assets Recognized		Gross Liabilities Offset in the Statement of Financial Position			Net Assets (Liabilities) Presentedin the Statement of Financial Position			Financial Instruments		Cash Collateral Received		Net Amount
Fair asset value of derivative instruments	$	2,815	$	(1,568	)	$	1,247		$	—	$	—	$	1,247
Long-term derivative assets included in    deferred charges and other assets, net		29		(27	)		2			—		—		2
Fair liability value of derivative instruments		4,291		(6,184	)		(1,893	)		—		—		(1,893	)
Long-term derivative liabilities included in    other long-term liabilities, net		866		(998	)		(132	)		—		—		(132	)
Total at December 31, 2019	$	8,001	$	(8,777	)	$	(776	)	$	—	$	—	$	(776	)
Fair asset value of derivative instruments	$	—	$	—		$	—		$	—	$	—	$	—
Long-term derivative assets included in    other long-term assets, net		16		(16	)		—			—		—		—
Fair liability value of derivative instruments		13,824		(22,086	)		(8,262	)		—		—		(8,262	)
Long-term derivative liabilities included in    other long-term liabilities, net		1,450		(1,703	)		(253	)		—		—		(253	)
Total at September 30, 2019	$	15,290	$	(23,805	)	$	(8,515	)	$	—	$	—	$	(8,515	)

(In thousands)
The Effect of Derivative Instruments on the Statement of Operations
		Amount of (Gain) or Loss Recognized
Derivatives Not Designated as Hedging Instruments Under FASB ASC 815-10	Location of (Gain) or Loss Recognized in Income on Derivative	Three Months Ended December 31, 2019			Three Months Ended December 31, 2018
Commodity contracts	Cost of product (a)	$	6,049		$	(6,152	)
Commodity contracts	Cost of installations and service (a)	$	(9	)	$	247
Commodity contracts	Delivery and branch expenses (a)	$	(29	)	$	166
Commodity contracts	(Increase) / decrease in the fair value of derivative instruments (b)	$	(6,417	)	$	31,039

(a) Represents realized closed positions and includes the cost of options as they expire.

(b) Represents the change in value of unrealized open positions and expired options.

7) Inventories

The Company’s product inventories are stated at the lower of cost and net realizable value computed on the weighted average cost method. All other inventories, representing parts and equipment are stated at the lower of cost and net realizable value using the FIFO method. The components of inventory were as follows (in thousands):

	December 31, 2019		September 30, 2019
Product	$	59,343	$	43,536
Parts and equipment		20,918		21,252
Total inventory	$	80,261	$	64,788

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8) Property and Equipment

Property and equipment are stated at cost. Depreciation is computed over the estimated useful lives of the depreciable assets using the straight-line method (in thousands):

	December 31, 2019		September 30, 2019
Property and equipment	$	232,423	$	230,690
Less: accumulated depreciation		135,911		132,451
Property and equipment, net	$	96,512	$	98,239

9) Business Combinations

During the first quarter of fiscal year 2020, the Company acquired the customer list and the assets of a heating oil dealer for an aggregate purchase price of approximately $0.5 million.

10) Intangibles, net

The gross carrying amount and accumulated amortization of intangible assets subject to amortization are as follows (in thousands):

	December 31, 2019						September 30, 2019
	Gross						Gross
	Carrying		Accum.				Carrying		Accum.
	Amount		Amortization		Net		Amount		Amortization		Net
Customer lists	$	383,388	$	301,933	$	81,455	$	382,373	$	297,221	$	85,152
Trade names and other intangibles		37,853		15,771		22,082		37,739		15,203		22,536
Total	$	421,241	$	317,704	$	103,537	$	420,112	$	312,424	$	107,688

Amortization expense for intangible assets was $5.3 million for the three months ended December 31, 2019, compared to $4.6 million for the three months ended December 31, 2018.

11) Long-Term Debt and Bank Facility Borrowings

The Company’s debt is as follows (in thousands):

	December 31,				September 30,
	2019				2019
	Carrying Amount		Fair Value (a)		Carrying Amount		Fair Value (a)
Revolving Credit Facility Borrowings	$	112,688	$	112,688	$	61,500	$	61,500
Senior Secured Term Loan (b)		129,275		130,000		91,947		92,500
Total debt	$	241,963	$	242,688	$	153,447	$	154,000
Total short-term portion of debt	$	122,438	$	122,438	$	33,000	$	33,000
Total long-term portion of debt	$	119,525	$	120,250	$	120,447	$	121,000

(a) The face amount of the Company’s variable rate long-term debt approximates fair value.

(b) Carrying amounts are net of unamortized debt issuance costs of $0.7 million as of December 31, 2019 and $0.6 million as of September 30, 2019.

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On December 4, 2019, the Company refinanced its five-year term loan and the revolving credit facility with the execution of the fifth amended and restated revolving credit facility agreement with a bank syndicate currently comprised of eleven participants, which enables the Company to borrow up to$300 million ($450 million during the heating season of December through April of each year) on a revolving credit facility for working capital purposes (subject to certain borrowing base limitations and coverage ratios), provides for a $130 million five-year senior secured term loan (the “Term Loan”), allows for the issuance of up to $25 million in letters of credit,and has a maturity date of December 4, 2024.

The Company can increase the revolving credit facility size by $200 million without the consent of the bank group. However, the bank group is not obligated to fund the $200 million increase. If the bank group elects not to fund the increase, the Company can add additional lenders to the group, with the consent of the Agent (as defined in the credit agreement), which shall not be unreasonably withheld. Obligations under the fifth amended and restated credit facility are guaranteed by the Company and its subsidiaries and are secured by liens on substantially all of the Company’s assets, including accounts receivable, inventory, general intangibles, real property, fixtures and equipment.

All amounts outstanding under the fifth amended and restated revolving credit facility become due and payable on the facility termination date of December 4, 2024. The Term Loan is repayable in quarterly payments of $3.25 million with the first payment due March 31, 2020, plus an annual payment equal to 25% of the annual Excess Cash Flow as defined in the credit agreement (an amount not to exceed $12 million annually), less certain voluntary prepayments made during the year, with final payment at maturity.

The interest rate on the fifth amended and restated revolving credit facility and the Term Loan is based on a margin over LIBOR or a base rate. At December 31, 2019, the effective interest rate on the Term Loan was approximately 5.6% and the effective interest rate on revolving credit facility borrowings was approximately 4.4%. At September 30, 2019, the effective interest rate on the term loan and revolving credit facility borrowings was approximately 5.9% and 4.6%, respectively.

The commitment fee on the unused portion of the revolving credit facility is 0.30% from December through April, and 0.20% from May through November.

The fifth amended and restated credit agreement requires the Company to meet certain financial covenants, including a Fixed Charge Coverage Ratio (as defined in the credit agreement) of not less than 1.1 as long as the Term Loan is outstanding or revolving credit facility availability is less than 12.5% of the facility size. In addition, as long as the Term Loan is outstanding, a senior secured leverage ratio cannot be more than 3.0 as calculated as of the quarters ending June or September, and no more than 4.5 as calculated as of the quarters ending December or March.

Certain restrictions are also imposed by the credit agreement, including restrictions on the Company’s ability to incur additional indebtedness, to pay distributions to unitholders, to pay certain inter-company dividends or distributions, repurchase units, make investments, grant liens, sell assets, make acquisitions and engage in certain other activities.

At December 31, 2019, $130.0 million of the Term Loan was outstanding, $112.7 million was outstanding under the revolving credit facility, $1.2 million of hedge positions were secured under the credit agreement, and $4.4 million of letters of credit were issued and outstanding. At September 30, 2019, $92.5 million of the Term Loan was outstanding, $61.5 million was outstanding under the revolving credit facility, $7.7 million of hedge positions were secured under the credit agreement, and $4.6 million of letters of credit were issued and outstanding.

At December 31, 2019, availability was $162.4 million, and the Company was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio. At September 30, 2019, availability was $126.1 million, and the Company was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio.

12) Income Taxes

 The accompanying financial statements are reported on a fiscal year, however, the Company and its corporate subsidiaries file Federal and State income tax returns on a calendar year.

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The current and deferred income tax expense (benefit) for the three months ended December 31, 2019, and 2018 are as follows:

	Three Months Ended
	December 31,
(in thousands)	2019		2018
Income before income taxes	$	39,537	$	3,288
Current income tax expense		10,446		1,589
Deferred income tax expense (benefit)		1,336		(616	)
Total income tax expense	$	11,782	$	973

At December 31, 2019, we did not have unrecognized income tax benefits.

Our continuing practice is to recognize interest and penalties related to income tax matters as a component of income tax expense. We file U.S. Federal income tax returns and various state and local returns. A number of years may elapse before an uncertain tax position is audited and finally resolved. For our Federal income tax returns we have four tax years subject to examination. In our major state tax jurisdictions of New York, Connecticut and Pennsylvania, we have four years that are subject to examination. In the state tax jurisdiction of New Jersey we have five tax years that are subject to examination. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, based on our assessment of many factors, including past experience and interpretation of tax law, we believe that our provision for income taxes reflect the most probable outcome. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events.

13) Leases

The Company has entered into certain operating leases for office space, vehicles and other equipment with lease terms between one to twenty years, expiring between 2020 and 2039. Some of the Company’s real estate property lease agreements have options to extend the leases for up to five years.

The Company determines if an arrangement is a lease at inception.  Lease liabilities are measured at the lease commencement date in an amount equal to the present value of the lease payments over the lease term.  Right-of-use (“ROU”) assets are recognized based on the amount of the lease liability adjusted for any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred.   Renewal options are included in the calculation of the ROU asset and lease liability when it is determined that they are reasonably certain of exercise.

Certain of our lease arrangements contain non-lease components such as common area maintenance.  We have elected to account for the lease component and its associated non-lease components as a single lease component.  Leases with an initial term of 12 months or less are not recognized on our balance sheet. The Company has leases that have variable payments, including lease payments where lease payment increases are based on the percentage change in the Consumer Price Index. For such leases payment at the lease commencement date is used to measure the ROU assets and operating lease liabilities. Changes in the index and other variable payments are expensed as incurred.  The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our operating leases is not readily determinable. The basis for an incremental borrowing rate was our Term Loan, market-based yield curves and comparable debt securities.

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A summary of total lease costs and other information for the three months ended December 31, 2019 is as follows:

	Three Months Ended
	December 31,
(in thousands)	2019
Lease cost:
Operating lease cost	$	6,599
Short-term lease cost		192
Variable lease cost		1,010
Total lease cost	$	7,801
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,381
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4,010
Weighted-average remaining lease term - operating leases		7.4
Weighted-average discount rate - operating leases		4.8	%

Maturities of operating lease liabilities as of December 31, 2019 are as follows:

	December 31,
(in thousands)	2019
Remaining nine months of fiscal year 2020	$	18,658
2021		22,141
2022		17,718
2023		14,396
2024		12,235
Thereafter		45,467
Total undiscounted lease payments		130,615
Less imputed interest		(21,706	)
Total lease liabilities	$	108,909

Maturities of operating lease liabilities presented undiscounted under ASC Topic 840 as prescribed by ASC Topic 842 as of September 30, 2019 are as follows:

	September 30,
(in thousands)	2019
2020	$	24,082
2021		20,875
2022		16,687
2023		13,344
2023		11,114
Thereafter		43,506
Total future minimum lease payments	$	129,608

14) Supplemental Disclosure of Cash Flow Information

	Three Months Ended
Cash paid during the period for:	December 31,
(in thousands)	2019		2018
Income taxes, net	$	4,750	$	3,811
Interest	$	3,126	$	2,441

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15) Commitments and Contingencies

On April 18, 2017, a civil action was filed in the United States District Court for the Eastern District of New York, entitled M. Norman Donnenfeld v. Petro, Inc., Civil Action Number 2:17-cv-2310-JFB-SIL, against Petro, Inc. By amended complaint filed on August 15, 2017, the Plaintiff alleges he did not receive expected contractual benefits under his protected price plan contract when oil prices fell and asserts various claims for relief including breach of contract, violation of the New York General Business Law and fraudulent inducement. The Plaintiff also seeks to have a class certified of similarly situated Petro customers who entered into protected price plan contracts and were denied the same contractual benefits. No class has yet been certified in this action. The Plaintiff seeks compensatory, punitive and other damages in unspecified amounts.  On September 15, 2017, Petro filed a motion to dismiss the amended complaint as time-barred and for failure to state a cause of action.  On September 12, 2018, the district court granted in part and denied in part Petro's motion to dismiss.  The district court dismissed the Plaintiff's claims for breach of the covenant of good faith and fair dealing and fraudulent inducement, but declined to dismiss the Plaintiff's remaining claims.  The district court granted the Plaintiff leave to amend to attempt to replead his fraudulent inducement claim.  On October 10, 2018, the Plaintiff filed a second amended complaint.  The second amended complaint attempts to replead a fraudulent inducement claim and is otherwise substantially similar or identical to the prior complaint.  On November 13, 2018, Petro moved to dismiss the fraudulent inducement and unjust enrichment claims in the second amended complaint.  On January 31, 2019, the court granted the motion and dismissed the fraudulent inducement and unjust enrichment claims with prejudice.  On February 22, 2019, counsel for Petro and the Plaintiff participated in a mediation which, after arms-length negotiations, resulted in a memorandum of understanding to settle the litigation, subject to the completion of confirmatory discovery, negotiation of a final settlement agreement and court approval.  In an order dated March 27, 2019, the district court stayed all discovery deadlines in light of the pending settlement.  On May 6, 2019, the Plaintiff filed an Unopposed Motion for Preliminary Approval of Class Action Settlement which remains pending before the court.  On October 4, 2019, upon consent of all parties, Judge Roslynn R. Mauskopf assigned the action to Magistrate Judge Steve I. Locke for final disposition.  On December 4, 2019, the court granted preliminary approval of the class action settlement.  The anticipated settlement is not an admission of liability or breach to any customers by Petro and the Company continues to believe the allegations lack merit.  If the settlement is not approved or finalized for any reason, the Company will continue to vigorously defend the action; in that case, we cannot assess the potential outcome or materiality of this matter.  

The Company’s operations are subject to the operating hazards and risks normally incidental to handling, storing and transporting and otherwise providing for use by consumers hazardous liquids such as home heating oil and propane. In the ordinary course of business, the Company is a defendant in various legal proceedings and litigation. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. We do not believe these matters, when considered individually or in the aggregate, could reasonably be expected to have a material adverse effect on the Company’s results of operations, financial position or liquidity.

The Company maintains insurance policies with insurers in amounts and with coverages and deductibles we believe are reasonable and prudent. However, the Company cannot assure that this insurance will be adequate to protect it from all material expenses related to current and potential future claims, legal proceedings and litigation, including the above mentioned action, as certain types of claims may be excluded from our insurance coverage. If we incur substantial liability and the damages are not covered by insurance, or are in excess of policy limits, or if we incur liability at a time when we are not able to obtain liability insurance, then our business, results of operations and financial condition could be materially adversely affected.

16) Earnings Per Limited Partner Unit

Income per limited partner unit is computed in accordance with FASB ASC 260-10-05 Earnings Per Share, Master Limited Partnerships (EITF 03-06), by dividing the limited partners’ interest in net income by the weighted average number of limited partner units outstanding. The pro forma nature of the allocation required by this standard provides that in any accounting period where the Company’s aggregate net income exceeds its aggregate distribution for such period, the Company is required to present net income per limited partner unit as if all of the earnings for the periods were distributed, regardless of whether those earnings would actually be distributed during a particular period from an economic or practical perspective. This allocation does not impact the Company’s overall net income or other financial results. However, for periods in which the Company’s aggregate net income exceeds its aggregate distributions for such period, it will have the impact of reducing the earnings per limited partner unit, as the calculation according to this standard result in a theoretical increased allocation of undistributed earnings to the General Partner. In accounting periods where aggregate net income does not exceed aggregate distributions for such period, this standard does not have any impact on the Company’s net income per limited partner unit calculation. A separate and independent calculation for each quarter and year-to-date period is performed, in which the Company’s contractual participation rights are taken into account.

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The following presents the net income allocation and per unit data using this method for the periods presented:

	Three Months Ended
Basic and Diluted Earnings Per Limited Partner:	December 31,
(in thousands, except per unit data)	2019		2018
Net income	$	27,755	$	2,315
Less General Partner’s interest in net income		192		15
Net income available to limited partners		27,563		2,300
Less dilutive impact of theoretical distribution of earnings    under FASB ASC 260-10-45-60		4,351		—
Limited Partner’s interest in net income under FASB ASC 260-10-45-60	$	23,212	$	2,300
Per unit data:
Basic and diluted net income available to limited partners	$	0.58	$	0.04
Less dilutive impact of theoretical distribution of earnings    under FASB ASC 260-10-45-60		0.09		—
Limited Partner’s interest in net income under FASB ASC    260-10-45-60	$	0.49	$	0.04
Weighted average number of Limited Partner units outstanding		47,266		52,905

17) Subsequent Events

Quarterly Distribution Declared

In January 2020, we declared a quarterly distribution of $0.125 per unit, or $0.50 per unit on an annualized basis, on all Common Units with respect to the first quarter of fiscal 2020, payable on February 4, 2020, to holders of record on January 27, 2020. The amount of distributions in excess of the minimum quarterly distribution of $0.0675 are distributed in accordance with our Partnership Agreement, subject to the management incentive compensation plan. As a result, $5.8 million will be paid to the Common Unit holders, $0.2 million to the General Partner unit holders (including $0.2 million of incentive distribution as provided in our Partnership Agreement) and $0.2 million to management pursuant to the management incentive compensation plan which provides for certain members of management to receive incentive distributions that would otherwise be payable to the General Partner.

Common Units Repurchased and Retired

In accordance with the Repurchase Plan, from January 1, 2020 to January 31, 2020, the Company repurchased and retired 0.2 million Common Units at an average price paid of $9.48 per unit.

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ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Statement Regarding Forward-Looking Disclosure

This Quarterly Report on Form 10-Q (this “Report”) includes “forward-looking statements” which represent our expectations or beliefs concerning future events that involve risks and uncertainties, including those associated with the effect of weather conditions on our financial performance, the price and supply of the products that we sell, the consumption patterns of our customers, our ability to obtain satisfactory gross profit margins, our ability to obtain new customers and retain existing customers, our ability to make strategic acquisitions, the impact of litigation, our ability to contract for our current and future supply needs, natural gas conversions, future union relations and the outcome of current and future union negotiations, the impact of current and future governmental regulations, including climate change, environmental, health, and safety regulations, the ability to attract and retain employees, customer credit worthiness, counterparty credit worthiness, marketing plans, potential cyber-attacks, general economic conditions and new technology. All statements other than statements of historical facts included in this Report including, without limitation, the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “seek,” “estimate,” and similar expressions are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct and actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to, those set forth in this Report under the headings “Risk Factors” and “Business Strategy.” Important factors that could cause actual results to differ materially from our expectations (“Cautionary Statements”) are disclosed in this Report. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. Unless otherwise required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this Report.

Impact on Liquidity of Increases in Wholesale Product Cost

Our liquidity is adversely impacted in times of increasing wholesale product costs, as we must use more cash to fund our hedging requirements as well as the increased levels of accounts receivable and inventory. This may result in higher interest expense as a result of increased working capital borrowing to finance higher receivables and/or inventory balances. We may also incur higher bad debt expense and credit card processing costs as a result of higher selling prices as well as higher vehicle fuel costs due to the increase in energy costs.  In addition, our liquidity can be adversely impacted by sudden and sharp decreases in wholesale product costs, due to the increased margin requirements for futures contracts and collateral requirements for options and swaps that we use to manage market risks.

Liquid Product Price Volatility

Volatility, which is reflected in the wholesale price of liquid products, including home heating oil, propane and motor fuels, has a larger impact on our business when prices rise. Consumers are price sensitive to heating cost increases, which can lead to increased gross customer losses. As a commodity, the price of home heating oil is generally impacted by many factors, including economic and geopolitical forces, and is closely linked to the price of diesel fuel. The volatility in the wholesale cost of diesel fuel as measured by the New York Mercantile Exchange (“NYMEX”), for the fiscal years ending September 30, 2016, through 2020, on a quarterly basis, is illustrated in the following chart (price per gallon):

	Fiscal 2020 (a)				Fiscal 2019				Fiscal 2018				Fiscal 2017				Fiscal 2016
Quarter Ended	Low		High		Low		High		Low		High		Low		High		Low		High
December 31	$	1.86	$	2.05	$	1.66	$	2.44	$	1.74	$	2.08	$	1.39	$	1.70	$	1.08	$	1.61
March 31		—		—		1.70		2.04		1.84		2.14		1.49		1.70		0.87		1.26
June 30		—		—		1.78		2.12		1.96		2.29		1.37		1.65		1.08		1.57
September 30		—		—		1.75		2.08		2.05		2.35		1.45		1.86		1.26		1.53

(a) On January 31, 2020, the NYMEX ultra low sulfur diesel contract closed at $1.62 per gallon or $0.33 per gallon lower than the average of $1.95 in the first quarter of Fiscal 2020.

Execution of Fifth Amended and Restated Revolving Asset-based Credit Agreement

On December 4, 2019, the Company refinanced its credit facility and entered into the fifth amended and restated revolving credit facility agreement with a bank syndicate of eleven participants, which enables the Company to borrow up to $300 million ($450 million during the heating season of December through April of each year) on a revolving line of credit for working capital purposes (subject to certain borrowing base limitations and coverage ratios), provides for a $130 million five-year senior secured term loan,

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allows for the issuance of up to $25 million in letters of credit, and extends the maturity date of the previous agreement to December 4, 2024. Proceeds from the new term loan were used to repay the $90.0 million outstanding balance of the term loan and $40.0 million of the revolving credit facility borrowings under the old credit facility.  Availability as a result of the new credit agreement increased $40.0 million.

Consistent with the fourth amended and restated revolving credit facility, under the Company’s fifth amended and restated credit agreement, in order to repurchase Common Units we must maintain availability of $45 million, equivalent to 15.0% of the facility size of $300 million (assuming the non-seasonal aggregate commitment is outstanding) on a historical pro forma and forward-looking basis, and a fixed charge coverage ratio of not less than 1.15 measured as of the date of repurchase.

Income Taxes

Book versus Tax Deductions

The amount of cash flow generated in any given year depends upon a variety of factors including the amount of cash income taxes required, which will increase as depreciation and amortization decreases. The amount of depreciation and amortization that we deduct for book (i.e., financial reporting) purposes will differ from the amount that the Company can deduct for Federal tax purposes. The table below compares the estimated depreciation and amortization for book purposes to the amount that we expect to deduct for Federal tax purposes, based on currently owned assets. While we file our tax returns based on a calendar year, the amounts below are based on our September 30 fiscal year, and the tax amounts include any 100% bonus depreciation available for fixed assets purchased.  However, this table does not include any forecast of future annual capital purchases. 

Estimated Depreciation and Amortization Expense

(In thousands) Fiscal Year	Book		Tax
2020	$	31,759	$	27,619
2021		26,452		21,309
2022		22,889		19,600
2023		19,607		17,813
2024		15,823		16,771
2025		12,974		16,279

Weather Hedge Contracts

Weather conditions have a significant impact on the demand for home heating oil and propane because certain customers depend on these products principally for space heating purposes. Actual weather conditions may vary substantially from year to year, significantly affecting the Company’s financial performance. To partially mitigate the adverse effect of warm weather on cash flow, we have used weather hedging contracts for a number of years with several providers.

Under these contracts, we are entitled to a payment if the total number of degree days within the hedge period is less than the ten year average. The “Payment Thresholds,” or strikes, are set at various levels. Conversely, we are obligated to make a payment capped at $5.0 million if degree days exceed the ten-year average. The hedge period runs from November 1 through March 31, taken as a whole, for each respective fiscal year. For the first quarter of fiscal 2020 and 2019, we recorded a charge of $3.0 million and $2.0 million, respectively, for amounts payable under our weather hedge contracts, reflecting colder weather than the ten year average. While the weather hedge period (November 1-December 31, 2019) was colder and resulted in a charge of $3.0 million, warmer temperatures in January 2020 resulted in a complete reversal of this charge (under the guidelines of the weather hedge). For fiscal 2020 and 2021, the maximum that the Company can receive annually is $12.5 million and the maximum that the Company would be obligated to pay annually is $5.0 million.

Per Gallon Gross Profit Margins

We believe home heating oil and propane margins should be evaluated on a cents per gallon basis (before the effects of increases or decreases in the fair value of derivative instruments), as we believe that such per gallon margins are best at showing profit trends in the underlying business, without the impact of non-cash changes in the market value of hedges before the settlement of the underlying transaction.

A significant portion of our home heating oil volume is sold to individual customers under an arrangement pre-establishing a ceiling price or fixed price for home heating oil over a set period of time, generally twelve to twenty-four months (“price-protected” customers). When these price-protected customers agree to purchase home heating oil from us for the next heating season, we purchase option contracts, swaps and futures contracts for a substantial majority of the heating oil that we expect to sell to these customers. The amount of home heating oil volume that we hedge per price-protected customer is based upon the estimated fuel consumption per average customer per month. In the event that the actual usage exceeds the amount of the hedged volume on a

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monthly basis, we may be required to obtain additional volume at unfavorable costs. In addition, should actual usage in any month be less than the hedged volume, our hedging costs and losses could be greater, thus reducing expected margins.

Derivatives

FASB ASC 815-10-05 Derivatives and Hedging requires that derivative instruments be recorded at fair value and included in the consolidated balance sheet as assets or liabilities. To the extent our interest rate derivative instruments designated as cash flow hedges are effective, as defined under this guidance, changes in fair value are recognized in other comprehensive income until the forecasted hedged item is recognized in earnings. We have elected not to designate our commodity derivative instruments as hedging instruments under this guidance and, as a result, the changes in fair value of the derivative instruments are recognized in our statement of operations. Therefore, we experience volatility in earnings as outstanding derivative instruments are marked to market and non-cash gains and losses are recorded prior to the sale of the commodity to the customer. The volatility in any given period related to unrealized non-cash gains or losses on derivative instruments can be significant to our overall results. However, we ultimately expect those gains and losses to be offset by the cost of product when purchased.

Customer Attrition

We measure net customer attrition on an ongoing basis for our full service residential and commercial home heating oil and propane customers. Net customer attrition is the difference between gross customer losses and customers added through marketing efforts. Customers added through acquisitions are not included in the calculation of gross customer gains. However, additional customers that are obtained through marketing efforts or lost at newly acquired businesses are included in these calculations. Customer attrition percentage calculations include customers added through acquisitions in the denominators of the calculations on a weighted average basis. Gross customer losses are the result of a number of factors, including price competition, move-outs, credit losses, conversions to natural gas and service disruptions. When a customer moves out of an existing home, we count the “move out” as a loss, and if we are successful in signing up the new homeowner, the “move in” is treated as a gain. 

Customer gains and losses of home heating oil and propane customers

	Fiscal Year Ended
	2020						2019							2018
					Net						Net							Net
	Gross Customer				Gains /		Gross Customer				Gains /			Gross Customer				Gains /
	Gains		Losses		(Attrition)		Gains		Losses		(Attrition)			Gains		Losses		(Attrition)
First Quarter		23,900		23,100		800		26,200		25,400		800			24,700		19,900		4,800
Second Quarter		—		—		—		12,600		22,300		(9,700	)		14,100		18,900		(4,800	)
Third Quarter		—		—		—		7,100		15,900		(8,800	)		7,900		16,200		(8,300	)
Fourth Quarter		—		—		—		13,200		20,600		(7,400	)		13,100		19,400		(6,300	)
Total		23,900		23,100		800		59,100		84,200		(25,100	)		59,800		74,400		(14,600	)

Customer gains (attrition) as a percentage of home heating oil and propane customer base

	Fiscal Year Ended
	2020									2019									2018
							Net									Net									Net
	Gross Customer						Gains /			Gross Customer						Gains /			Gross Customer						Gains /
	Gains			Losses			(Attrition)			Gains			Losses			(Attrition)			Gains			Losses			(Attrition)
First Quarter		5.3	%		5.1	%		0.2	%		5.8	%		5.6	%		0.2	%		5.4	%		4.3	%		1.1	%
Second Quarter		—			—			—			2.8	%		5.0	%		(2.2	%)		3.0	%		4.1	%		(1.1	%)
Third Quarter		—			—			—			1.6	%		3.5	%		(1.9	%)		1.7	%		3.5	%		(1.8	%)
Fourth Quarter		—			—			—			2.7	%		4.2	%		(1.5	%)		2.9	%		4.3	%		(1.4	%)
Total		5.3	%		5.1	%		0.2	%		12.9	%		18.3	%		(5.4	%)		13.0	%		16.2	%		(3.2	%)

For the three months ended December 31, 2019, the Company gained 800accounts (net), or 0.2%, of its home heating oil and propane customer base, compared to 800 accounts gained (net), or 0.2%, of its home heating oil and propane customer base, during the three months ended December 31, 2018. Gross customer gains were 2,300 less than the prior year’s comparable period, and gross customer losses were also 2,300 accounts less.

During the three months ended December 31, 2019, we estimate that we lost 0.4% of our home heating oil and propane accounts to natural gas conversions versus 0.4% for the three months ended December 31, 2018 and 0.3% three months ended December 31, 2017.  Losses to natural gas in our footprint for the heating oil and propane industry could be greater or less than the Company’s estimates.

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Acquisitions

The timing of acquisitions and the types of products sold by the acquired companies will impact year-over-year comparisons.  During the three months ended December 31, 2019, the Company acquired a product dealer.  During fiscal 2019 the Company completed three acquisitions. The following tables detail the Company’s acquisition activity and the volumes sold by the acquired company during the 12-month period prior to the date of acquisition.

(in thousands of gallons)
Fiscal 2020 Acquisitions
Acquisition Number	Month of Acquisition	Home Heating Oil and Propane		Other Petroleum Products		Total
1	October		1,085		—		1,085
			1,085		—		1,085

(in thousands of gallons)
Fiscal 2019 Acquisitions
Acquisition Number	Month of Acquisition	Home Heating Oil and Propane		Other Petroleum Products		Total
1	November		130		—		130
2	January (a)		—		—		—
3	May		13,200		6,772		19,972
			13,330		6,772		20,102

(a) The business acquired in January 2019 did not sell any petroleum products. The subcontractor acquisition had revenue of approximately $11 million during the 12 month period prior to date of acquisition, and Star accounted for approximately 60% of its revenue (any such revenue is eliminated in consolidation, but the Company benefits from lower costs related to such revenue). 

Seasonality

The Company’s fiscal year ends on September 30. All references to quarters and years, respectively, in this document are to the fiscal quarters and fiscal years unless otherwise noted. The seasonal nature of our business has resulted, on average, during the last five years, in the sale of approximately 30% of the volume of home heating oil and propane in the first fiscal quarter and 50% of the volume in the second fiscal quarter, the peak heating season. Approximately 25% of the volume of motor fuel and other petroleum products is sold in each of the four fiscal quarters. We generally realize net income during the quarters ending December and March and net losses during the quarters ending June and September. In addition, sales volume typically fluctuates from year to year in response to variations in weather, wholesale energy prices and other factors.

Degree Day

A “degree day” is an industry measurement of temperature designed to evaluate energy demand and consumption. Degree days are based on how far the average daily temperature departs from 65°F. Each degree of temperature above 65°F is counted as one cooling degree day, and each degree of temperature below 65°F is counted as one heating degree day. Degree days are accumulated each day over the course of a year and can be compared to a monthly or a long-term (multi-year) average to see if a month or a year was warmer or cooler than usual. Degree days are officially observed by the National Weather Service.

Every ten years, the National Oceanic and Atmospheric Administration (“NOAA”) computes and publishes average meteorological quantities, including the average temperature for the last 30 years by geographical location, and the corresponding degree days. The latest and most widely used data covers the years from 1981 to 2010. Our calculations of “normal” weather are based on these published 30 year averages for heating degree days, weighted by volume for the locations where we have existing operations.

Consolidated Results of Operations

The following is a discussion of the consolidated results of operations of the Company and its subsidiaries and should be read in conjunction with the historical financial and operating data and Notes thereto included elsewhere in this Quarterly Report.

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Three Months Ended December 31, 2019

Compared to the Three Months Ended December 31, 2018

Volume

For the three months ended December 31, 2019, retail volume of home heating oil and propane sold decreased by 6.2 million gallons, or 5.5%, to 107.1 million gallons, compared to 113.3 million gallons for the three months ended December 31, 2018. For those locations where we had existing operations during both periods, which we sometimes refer to as the “base business” (i.e., excluding acquisitions), temperatures (measured on a heating degree day basis) for the three months ended December 31, 2019 were 2.4% warmer than the three months ended December 31, 2018. Temperatures during the three months ended December 31, 2019 were 2.3% warmer than normal, as reported by NOAA. For the twelve months ended December 31, 2019, net customer attrition for the base business was 5.4%. The impact of fuel conservation, along with any period-to-period differences in delivery scheduling, the timing of accounts added or lost during the fiscal years, equipment efficiency, and other volume variances not otherwise described, are included in the chart below under the heading “Other.” An analysis of the change in the retail volume of home heating oil and propane, which is based on management’s estimates, sampling, and other mathematical calculations and certain assumptions, is found below: 

(in millions of gallons)	Heating Oil and Propane
Volume - Three months ended December 31, 2018		113.3
Acquisitions		4.3
Impact of warmer temperatures		(1.9	)
Net customer attrition		(7.2	)
Other		(1.4	)
Change		(6.2	)
Volume - Three months ended December 31, 2019		107.1

The following chart sets forth the percentage by volume of total home heating oil sold to residential variable-price customers, residential price-protected customers and commercial/industrial/other customers for the three months ended December 31, 2019, compared to the three months ended December 31, 2018:

	Three Months Ended
Customers	December 31, 2019			December 31, 2018
Residential Variable		42.2	%		41.4	%
Residential Price-Protected (Ceiling and Fixed Price)		45.6	%		45.7	%
Commercial/Industrial		12.2	%		12.9	%
Total		100.0	%		100.0	%

Volume of other petroleum products sold decreased by 0.5 million gallons, or 1.2%, to 41.4 million gallons for the three months ended December 31, 2019, compared to 41.9 million gallons for the three months ended December 31, 2018.

Product Sales

For the three months ended December 31, 2019, product sales decreased by $26.0 million, or 5.7%, to $432.7 million, compared to $458.7 million for the three months ended December 31, 2018 due to the impact of lower home heating oil and propane volume and lower selling prices of motor fuel sales.

Installations and Services

For the three months ended December 31, 2019, installation and service revenue remained similar compared to the three months ended December 31, 2018 at $76.3 million. Service sales declined by $0.6 million as a decline in the base business of $3.8 million, largely due to net customer attrition, was partially offset by additional revenues from acquisitions of $3.2 million. Installation sales rose by $0.6 million as the additional revenue from acquisitions of $2.4 million was reduced by a decline in the base business of $1.8 million largely due to net customer attrition.

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Cost of Product

For the three months ended December 31, 2019, cost of product decreased $18.6 million, or 6.1%, to $287.7 million, compared to $306.2 million for the three months ended December 31, 2018, largely due to a decrease in total volume sold of 4.3%, and a $0.0358 per gallon, or 1.8%, decrease in wholesale product cost.

Gross Profit — Product

The table below calculates our per gallon margins and reconciles product gross profit for home heating oil and propane and other petroleum products. We believe the change in home heating oil and propane margins should be evaluated before the effects of increases or decreases in the fair value of derivative instruments, as we believe that realized per gallon margins should not include the impact of non-cash changes in the market value of hedges before the settlement of the underlying transaction. On that basis, home heating oil and propane margins for the three months ended December 31, 2019 increased by $0.0049 per gallon, or 0.4%, to $1.2564 per gallon, from $1.2515 per gallon during the three months ended December 31, 2018. The market conditions experienced during the three months ended December 31, 2018 created an opportunity for margin expansion and contributed to an increase in home heating oil and propane margins of $0.1322 per gallon versus the prior year’s comparable quarter. Similar market conditions did not exist during the three months ended December 31, 2019 which tempered per gallon margin expansion. Going forward, we cannot assume that the per gallon margins realized during the three months ending December 31, 2019 are sustainable.

Product sales and cost of product include home heating oil, propane, other petroleum products and liquidated damages billings.

	Three Months Ended
	December 31, 2019				December 31, 2018
Home Heating Oil and Propane	Amount (in millions)		Per Gallon		Amount (in millions)		Per Gallon
Volume		107.1				113.3
Sales	$	343.4	$	3.2048	$	364.2	$	3.2133
Cost	$	208.8	$	1.9484	$	222.4	$	1.9618
Gross Profit	$	134.6	$	1.2564	$	141.8	$	1.2515

Other Petroleum Products	Amount (in millions)		Per Gallon		Amount (in millions)		Per Gallon
Volume		41.4				41.9
Sales	$	89.3	$	2.1562	$	94.5	$	2.2536
Cost	$	78.9	$	1.9049	$	83.8	$	2.0000
Gross Profit	$	10.4	$	0.2513	$	10.7	$	0.2536

Total Product	Amount (in millions)		Amount (in millions)
Sales	$	432.7	$	458.7
Cost	$	287.7	$	306.2
Gross Profit	$	145.0	$	152.5

For the three months ended December 31, 2019, total product gross profit was $145.0 million, which was $7.5 million, or 4.9% less than the three months ended December 31, 2018, as a decrease in home heating oil and propane volume ($7.8 million) and a slight decrease in gross profit from other petroleum products ($0.2 million) was partially offset by an increase in home heating oil and propane margins ($0.5 million).

Cost of Installations and Services

Total installation costs for the three months ended December 31, 2019 decreased slightly to $24.8 million or 0.3%, compared to $24.9 million in installation costs for the three months ended December 31, 2018. Installation costs as a percentage of installation sales were 81.1% for the three months ended December 31, 2019 and 82.9% for the three months ended December 31, 2018.

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Service expense decreased by $0.6 million, or 1.2%, to $48.9 million for the three months ended December 31, 2019, representing 107.0% of service sales, versus $49.5 million, or 106.7% of service sales, for the three months ended December 31, 2018.We realized a combined gross profit from service and installation of $2.6 million for the three months ended December 31, 2019 compared to $2.0 million for the three months ended December 31, 2018. Management views the service and installation department on a combined basis because many overhead functions cannot be separated or precisely allocated to either service or installation billings.

(Increase) Decrease in the Fair Value of Derivative Instruments

During the three months ended December 31, 2019, the change in the fair value of derivative instruments resulted in a $6.4 million credit due to an increase in the market value for unexpired hedges ($2.5 million credit), and a $3.9 million credit due to the expiration of certain hedged positions.

During the three months ended December 31, 2018, the change in the fair value of derivative instruments resulted in a $31.0 million charge due to a decrease in the market value for unexpired hedges (a $26.6 million charge), and a $4.4 million charge due to the expiration of certain hedged positions.

Delivery and Branch Expenses

For the three months ended December 31, 2019, delivery and branch expenses decreased $6.0 million, or 5.8%, to $96.7 million, compared to $102.7 million for the three months ended December 31, 2018, as the additional costs from acquisitions of $3.9 million and an increase in the amount due under our weather hedge contract of $1.1 million was more than offset by an $11.0 million, or 10.9%, decrease in expenses within the base business.  The decrease in the base business was attributable to a $2.8 million, or 9.2%, decline in direct delivery costs due to lower volume, a $2.6 million decrease in expenses related to our concierge level of service program (which was greatly curtailed in January 2019), and other reductions in operating costs totaling $5.6 million, or 5.6%, as we continue to improve our operating efficiency. During the first quarter of fiscal 2020, we recorded a charge of $3.0 million under our weather hedge contract, or $1.1 million higher than the prior year’s comparable quarter, due to colder weather experienced during the weather hedge period. While the weather hedge period (November 1-December 31, 2019) was colder and resulted in a charge of $3.0 million, warmer temperatures in January 2020 resulted in a complete reversal of this charge (under the guidelines of the weather hedge). In addition, even as temperatures during November and December 2019 were colder than the corresponding months in 2018, temperatures for the entire first quarter were 2.4% warmer year-over-year due to October 2019 being over 30% warmer than October 2018.

Depreciation and Amortization Expenses

For the three months ended December 31, 2019, depreciation and amortization expense increased $1.4 million, or 16.9% to $9.1 million, compared to $7.7 million for the three months ended December 31, 2018, largely due to acquisitions.

General and Administrative Expenses

For the three months ended December 31, 2019, general and administrative expenses decreased by $1.3 million or 16.8%, to $6.5 million, from $7.8 million for the three months ended December 31, 2018, primarily due to lower legal and professional fees of $1.0 million, lower pension plan expense of $0.2 million, and other savings of $0.1 million.

Finance Charge Income

For the three months ended December 31, 2019, finance charge income decreased from $0.9 million at December 31, 2018 to $0.7 million at December 31, 2019, primarily due to lower customer late payment charges.

Interest Expense, Net

For the three months ended December 31, 2019, net interest expense increased by $0.2 million, or 6.5%, to $2.7 million compared to $2.5 million for the three months ended December 31, 2018. Interest expense rose by $0.3 million primarily due to an increase in average borrowings of $42.5million from $141.6million during the three months ended December 31, 2018 to $184.1million during the three months ended December 31, 2019 that was partially offset by a decrease in the weighted average interest rate from 5.6% during the three months ended December 31, 2018 to 5.1% during the three months ended December 31, 2019. The increase in average borrowings of $42.5million was largely used to fund acquisitions.  To hedge against rising interest rates, the Company entered into an interest rate swap in August 2018 that fixes the interest rate for $43.8 million, or 34%, of our long term debt as of December 31, 2019.  

28

Amortization of Debt Issuance Costs

For the three months ended December 31, 2019, amortization of debt issuance cost decreased from at $0.3 million at December 31, 2018 to $0.2 million at December 31, 2019.

Income Tax Expense

For the three months ended December 31, 2019, the Company’s income tax expense increased by $10.8 million to $11.8 million, from $1.0 million for the three months ended December 31, 2018, due to an increase in income before income taxes of $36.2 million that was primarily due to a $37.5 million non-cash favorable change in the fair market value of derivative instruments.  

Net Income

For the three months ended December 31, 2019, net income increased $25.4 million to $27.8 million primarily due to a favorable change in the fair value of derivative instruments of $37.5 million and an increase in the Adjusted EBITDA of $0.2 million, described below, partially offset by an increase in income tax expense of $10.8 million due to the increase in income before income tax.

Adjusted EBITDA

For the three months ended December 31, 2019, Adjusted EBITDA increased by $0.2 million, or 0.5%, to $45.1 million. While acquisitions provided $2.8 million of Adjusted EBITDA, Adjusted EBITDA in the base business decreased by $2.6 million as the impact of lower volume sold, due to net customer attrition, and slightly warmer weather and the increase in the amount due under the Company’s weather hedge of $1.1 million more than offset a slight increase in home heating oil and propane per gallon margins and lower operating expenses of $12.3 million. While the weather hedge period (November 1-December 31, 2019) was colder and resulted in a charge of $3.0 million, warmer temperatures in January 2020 resulted in a complete reversal of this charge (under the guidelines of the weather hedge). In addition, even as temperatures during November and December, 2019 were colder than the corresponding months in 2018, temperatures for the entire first quarter were 2.4% warmer year-over-year due to October 2019 being over 30% warmer than October 2018.

29

EBITDAand Adjusted EBITDAshould not be considered as an alternative to net income (as an indicator of operating performance) or as an alternative to cash flow (as a measure of liquidity or ability to service debt obligations), but provide additional information for evaluating our ability to make the Minimum Quarterly Distribution. EBITDAand Adjusted EBITDAare calculated as follows:

	Three Months Ended December 31,
(in thousands)	2019			2018
Net income	$	27,755		$	2,315
Plus:
Income tax expense		11,782			973
Amortization of debt issuance cost		235			259
Interest expense, net		2,679			2,516
Depreciation and amortization		9,050			7,745
EBITDA (a)		51,501			13,808
(Increase) / decrease in the fair value of derivative    instruments		(6,417	)		31,039
Adjusted EBITDA (a)		45,084			44,847
Add / (subtract)
Income tax expense		(11,782	)		(973	)
Interest expense, net		(2,679	)		(2,516	)
Provision for losses on accounts receivable		1,010			1,529
Increase in accounts receivables		(85,745	)		(95,743	)
Increase in inventories		(15,427	)		(20,187	)
Decrease in customer credit balances		(15,898	)		(14,120	)
Change in deferred taxes		1,336			(616	)
Change in other operating assets and liabilities		32,510			24,888
Net cash used in operating activities	$	(51,591	)	$	(62,891	)
Net cash used in investing activities	$	(7,663	)	$	(8,112	)
Net cash provided by financing activities	$	68,897		$	80,261

(a) EBITDA (Earnings from continuing operations before net interest expense, income taxes, depreciation and amortization) and Adjusted EBITDA (Earnings from continuing operations before net interest expense, income taxes, depreciation and amortization, (increase) decrease in the fair value of derivatives, net other income, multiemployer pension plan withdrawal charge, gain or loss on debt redemption, goodwill impairment, and other non-cash and non-operating charges) are non-GAAP financial measures that are used as supplemental financial measures by management and external users of our financial statements, such as investors, commercial banks and research analysts, to assess:

• our compliance with certain financial covenants included in our debt agreements;

• our financial performance without regard to financing methods, capital structure, income taxes or historical cost basis;

• our operating performance and return on invested capital compared to those of other companies in the retail distribution of refined petroleum products, without regard to financing methods and capital structure;

• our ability to generate cash sufficient to pay interest on our indebtedness and to make distributions to our partners; and

• the viability of acquisitions and capital expenditure projects and the overall rates of return of alternative investment opportunities.

The method of calculating Adjusted EBITDA may not be consistent with that of other companies, and EBITDA and Adjusted EBITDA both have limitations as analytical tools and so should not be viewed in isolation and should be viewed in conjunction with measurements that are computed in accordance with GAAP. Some of the limitations of EBITDA and Adjusted EBITDA are:

• EBITDA and Adjusted EBITDA do not reflect our cash used for capital expenditures.

• Although depreciation and amortization are non-cash charges, the assets being depreciated or amortized often will have to be replaced and EBITDA and Adjusted EBITDA do not reflect the cash requirements for such replacements;

• EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital requirements;

• EBITDA and Adjusted EBITDA do not reflect the cash necessary to make payments of interest or principal on our indebtedness; and

• EBITDA and Adjusted EBITDA do not reflect the cash required to pay taxes.

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DISCUSSION OF CASH FLOWS

We use the indirect method to prepare our Consolidated Statements of Cash Flows. Under this method, we reconcile net income to cash flows provided by operating activities by adjusting net income for those items that impact net income but do not result in actual cash receipts or payment during the period.

Operating Activities

Due to the seasonal nature of our business, cash is generally used in operations during the winter (our first and second fiscal quarters) as we require additional working capital to support the high volume of sales during this period, and cash is generally provided by operating activities during the spring and summer (our third and fourth fiscal quarters) when customer payments exceed the cost of deliveries.

During the three months ended December 31, 2019, cash used in operating activities decreased $11.3 million to $51.6 million, compared to $62.9 million of cash used in operating activities during the three months ended December 31, 2018.  The decrease was driven by an $8.2 million favorable change in accounts receivable (including customer credit balances) due to improved collections, a $6.2 million favorable change in accounts payable due primarily to the timing of inventory purchases, a $4.8 million favorable change in inventory due primarily to 1.7 million more gallons of liquid product on hand as of December 31, 2019 as compared to December 31, 2018, $1.8 million lower escheatment payments to state authorities, and $1.1 million of other changes in working capital, which were partially offset by an increase in income tax expense of $10.8 million primarily due to a favorable non cash change in the fair market value of derivative instruments of $37.5 million.

Investing Activities

Our capital expenditures for the three months ended December 31, 2019 totaled $3.0 million, as we invested in computer hardware and software ($1.0 million), refurbished certain physical plants ($0.8 million), expanded our propane operations ($0.4 million) and made additions to our fleet and other equipment ($0.8 million).

During the three months ended December 31, 2019, we deposited $3.9 million into an irrevocable trust to secure certain liabilities for our captive insurance company and another $0.3 million of earnings were reinvested into the irrevocable trust. The cash deposited into the trust is shown on our balance sheet as captive insurance collateral and, correspondingly, reduced cash on our balance sheet.  We believe that investments into the irrevocable trust will lower our letter of credit fees, increase interest income on invested cash balances, and provide us with certain tax advantages attributable to a captive insurance company.

During the three months ended December 31, 2019, the Company acquired the customer list and the assets of a heating oil dealer for an aggregate purchase price of approximately $0.5 million. 

Our capital expenditures for the three months ended December 31, 2018 totaled $4.0 million, as we invested in computer hardware and software ($2.0 million), refurbished certain physical plants ($0.4 million), expanded our propane operations ($1.0 million) and made additions to our fleet and other equipment ($0.6 million).

During the three months ended December 31, 2018, we deposited $4.2 million into an irrevocable trust to secure certain liabilities for our captive insurance company and another $0.3 million of earnings were reinvested into the irrevocable trust.

Financing Activities

During the three months ended December 31, 2019, we refinanced our five-year term loan and the revolving credit facility with the execution of the fifth amended and restated revolving credit facility agreement.  The $130 million of proceeds from the new term loan were used to repay the $90.0 million outstanding balance of the term loan, $39.0 million of the revolving credit facility borrowings under the old credit facility, and $1.0 million of debt issuance costs.  We also paid an additional $0.3 million of debt issuance costs, borrowed $90.2 million under our revolving credit facility to finance our working capital, repaid $2.5 million of our tem loan, repurchased 1.3 million Common Units for $12.1 million in connection with our unit repurchase plan, and paid distributions of $5.9 million to our Common Unit holders and $0.2 million to our General Partner unit holders (including $0.2 million of incentive distributions as provided in our Partnership Agreement).

During the three months ended December 31, 2018 we paid distributions of $6.2 million to our Common Unit holders and $0.2 million to our General Partner unit holders (including $0.17 million of incentive distributions as provided in our Partnership Agreement). We borrowed $92.5 million under our revolving credit to finance our working capital. We also repurchased 0.6 million common units for $5.7 million in connection with our unit repurchase plan.

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FINANCING AND SOURCES OF LIQUIDITY

Liquidity and Capital Resources Comparatives

Our primary uses of liquidity are to provide funds for our working capital, capital expenditures, distributions on our units, acquisitions and unit repurchases. Our ability to provide funds for such uses depends on our future performance, which will be subject to prevailing economic, financial, business and weather conditions, the ability to pass on the full impact of high product costs to customers, the effects of high net customer attrition, conservation and other factors. Capital requirements, at least in the near term, are expected to be provided by cash flows from operating activities, cash on hand as of December 31, 2019 ($14.5 million) or a combination thereof. To the extent future capital requirements exceed cash on hand plus cash flows from operating activities, we anticipate that working capital will be financed by our revolving credit facility, as discussed below, and reduced from subsequent seasonal reductions in inventory and accounts receivable. As of December 31, 2019, we had $112.7 million in borrowings under our revolving credit facility, $130.0 million under our term loan and $4.4 million in letters of credit outstanding.

Under the terms of our credit agreement, we must maintain at all times Availability (borrowing base less amounts borrowed and letters of credit issued) of 15% of the maximum facility size and a fixed charge coverage ratio of not less than 1.15. We must also maintain a senior secured leverage ratio that cannot be more than 3.0 as of June 30^th or September 30^th, and no more than 4.5 as of December 31^st or March 31^st. As of December 31, 2019, Availability, as defined in the credit agreement, was $162.4 million, and we were in compliance with the fixed charge coverage ratio and senior secured leverage ratio.  

Maintenance capital expenditures for the remainder of fiscal 2020 are estimated to be approximately $8.8 million to $9.8 million, excluding the capital requirements for leased fleet. In addition, we plan to invest approximately $0.8 million to $1.0 million in our propane operations. Distributions for the balance of fiscal 2020, at the current quarterly level of $0.1250 per unit, would result in an aggregate of approximately $17.4 million to Common Unit holders, $0.6 million to the General Partner (including $0.6 million of incentive distribution as provided for in our Partnership Agreement) and $0.6 million to management pursuant to the management incentive compensation plan which provides for certain members of management to receive incentive distributions that would otherwise be payable to the General Partner. Under the terms of our credit facility, our term loan is repayable in quarterly payments of $3.25 million with the first payment due March 31, 2020, and, depending on our fiscal 2020 results, we may be required to make an additional payment (See Note 11 - Long-Term Debt and Bank Facility Borrowings). In addition, we intend to continue to repurchase Common Units pursuant to our unit repurchase plan, as amended from time to time, and seek attractive acquisition opportunities within the Availability constraints of our revolving credit facility and funding resources.

Contractual Obligations and Off-Balance Sheet Arrangements

There has been no material change to Contractual Obligations and Off-Balance Sheet Arrangements since our September 30, 2019 Form 10-K disclosure and therefore, the table has not been included in this Form 10-Q.

Recent Accounting Pronouncements

Refer to Note 2 – Summary of Significant Accounting Policies for discussion regarding the impact of accounting standards that were recently adopted and issued but not yet effective, on our consolidated financial statements.

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Item 3.

Quantitative and Qualitative Disclosures About Market Risk

We are exposed to interest rate risk primarily through our bank credit facilities. We utilize these borrowings to meet our working capital needs.

At December 31, 2019, we had outstanding borrowings totaling $242.7 million, which are subject to variable interest rates under our credit agreement. In the event that interest rates associated with this facility were to increase 100 basis points, the after tax impact on annual future cash flows would be a decrease of $1.7 million.

We regularly use derivative financial instruments to manage our exposure to market risk related to changes in the current and future market price of home heating oil and vehicle fuels. The value of market sensitive derivative instruments is subject to change as a result of movements in market prices. Sensitivity analysis is a technique used to evaluate the impact of hypothetical market value changes. Based on a hypothetical ten percent increase in the cost of product at December 31, 2019, the potential impact on our hedging activity would be to increase the fair market value of these outstanding derivatives by $13.7 million to a fair market value of $12.9 million; and conversely a hypothetical ten percent decrease in the cost of product would decrease the fair market value of these outstanding derivatives by $8.7 million to a fair market value of $(9.5) million.

Item 4.

Controls and Procedures

a) Evaluation of disclosure controls and procedures

The General Partner’s chief executive officer and chief financial officer evaluated the effectiveness of the Company’s disclosure controls and procedures (as that term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended) as of December 31, 2019. Based on that evaluation, such chief executive officer and chief financial officer concluded that the Company’s disclosure controls and procedures were effective as of December 31, 2019 at the reasonable level of assurance. For purposes of Rule 13a-15(e), the term disclosure controls and procedures means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934, as amended (the “Act”) (15 U.S.C. 78a et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its chief executive officer and chief financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

b) Change in internal control over financial reporting

No changes in the Company’s internal control over financial reporting occurred during the Company’s most recent fiscal quarter that has materially affected or is reasonably likely to materially affect the Company’s internal control over financial reporting.

c) Other

The General Partner and the Company believe that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a Company have been detected. Therefore, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Our disclosure controls and procedures are designed to provide such reasonable assurances of achieving our desired control objectives, and the chief executive officer and chief financial officer of the General Partner have concluded, as of December 31, 2019, that our disclosure controls and procedures were effective in achieving that level of reasonable assurance.

33

PART II OTHER INFORMATION

Item 1.

Legal Proceedings

On April 18, 2017, a civil action was filed in the United States District Court for the Eastern District of New York, entitled M. Norman Donnenfeld v. Petro, Inc., Civil Action Number 2:17-cv-2310-JFB-SIL, against Petro, Inc. By amended complaint filed on August 15, 2017, the Plaintiff alleges he did not receive expected contractual benefits under his protected price plan contract when oil prices fell and asserts various claims for relief including breach of contract, violation of the New York General Business Law and fraudulent inducement. The Plaintiff also seeks to have a class certified of similarly situated Petro customers who entered into protected price plan contracts and were denied the same contractual benefits. No class has yet been certified in this action. The Plaintiff seeks compensatory, punitive and other damages in unspecified amounts.  On September 15, 2017, Petro filed a motion to dismiss the amended complaint as time-barred and for failure to state a cause of action.  On September 12, 2018, the district court granted in part and denied in part Petro's motion to dismiss.  The district court dismissed the Plaintiff's claims for breach of the covenant of good faith and fair dealing and fraudulent inducement, but declined to dismiss the Plaintiff's remaining claims.  The district court granted the Plaintiff leave to amend to attempt to replead his fraudulent inducement claim.  On October 10, 2018, the Plaintiff filed a second amended complaint.  The second amended complaint attempts to replead a fraudulent inducement claim and is otherwise substantially similar or identical to the prior complaint.  On November 13, 2018, Petro moved to dismiss the fraudulent inducement and unjust enrichment claims in the second amended complaint.  On January 31, 2019, the court granted the motion and dismissed the fraudulent inducement and unjust enrichment claims with prejudice.  On February 22, 2019, counsel for Petro and the Plaintiff participated in a mediation which, after arms-length negotiations, resulted in a memorandum of understanding to settle the litigation, subject to the completion of confirmatory discovery, negotiation of a final settlement agreement and court approval.  In an order dated March 27, 2019, the district court stayed all discovery deadlines in light of the pending settlement.  On May 6, 2019, the Plaintiff filed an Unopposed Motion for Preliminary Approval of Class Action Settlement which remains pending before the court.  On October 4, 2019, upon consent of all parties, Judge Roslynn R. Mauskopf assigned the action to Magistrate Judge Steve I. Locke for final disposition.  On December 4, 2019, the court granted preliminary approval of the class action settlement.  The anticipated settlement is not an admission of liability or breach to any customers by Petro and the Company continues to believe the allegations lack merit.  If the settlement is not approved or finalized for any reason, the Company will continue to vigorously defend the action; in that case, we cannot assess the potential outcome or materiality of this matter.  

Item 1A.

Risk Factors

In addition to the other information set forth in this Report, investors should carefully review and consider the information regarding certain factors, which could materially affect our business, results of operations, financial condition and cash flows set forth in Part I Item 1A. “Risk Factors” in our Fiscal 2019 Form 10-K. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Note 4 to the Condensed Consolidated Financial Statements concerning the Company’s repurchase of Common Units during the three months ended December 31, 2019 is incorporated into this Item 2 by reference.

34

Item 6.

Exhibits

(a) Exhibits Included Within:

10.24	Unit Purchase Agreement, dated as of December 6, 2019, between the Company and Cat Rock Capital Management, L.P.
31.1	Certification of Chief Executive Officer, Star Group, L.P., pursuant to Rule 13a-14(a)/15d-14(a).
31.2	Certification of Chief Financial Officer, Star Group, L.P., pursuant to Rule 13a-14(a)/15d-14(a).
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Star Group, L.P. Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Partners’ Capital, (v) the Condensed Consolidated Statements of Cash Flows and (vi) related notes.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.

35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf of the undersigned thereunto duly authorized:

Star Group, L.P.
(Registrant)
By:	Kestrel Heat LLC AS GENERAL PARTNER

Signature	Title	Date
/s/ Richard F. Ambury Richard F. Ambury	Executive Vice President, Chief Financial Officer, Treasurer and Secretary Kestrel Heat LLC (Principal Financial Officer)	February 3, 2020
Signature	Title	Date
/s/ Cory A. Czekanski Cory A. Czekanski	Vice President – Controller Kestrel Heat LLC (Principal Accounting Officer)	February 3, 2020

36

EX-10.24

Exhibit 10.24

UNIT PURCHASE AGREEMENT

THIS AGREEMENT dated as of the 6^th day of December, 2019, by and between Star Group, L.P., a Delaware limited partnership (hereinafter referred to as “Purchaser”), and Cat Rock Capital Management LP, a Delaware limited partnership (hereinafter referred to as “Seller”).

Statement of Facts:

A.Seller is the beneficial owner of common units of limited partnership interest of Purchaser (the “Common Units”).

B.Purchaser desires to purchase 631,104 Common Units (the “Units) from Seller and Seller desires to sell the Units to Purchaser under the terms and conditions set forth herein below.

NOW, THEREFORE, in consideration of the mutual promises set forth herein, the parties agree and stipulate as follows:

1.Purchase and Sale.  Purchaser shall purchase (the “Purchase”) the Units from Seller and Seller shall sell the Units to Purchaser for the price and upon the other terms set forth herein.

2.Purchase Price.  Purchaser shall pay Seller $9.40 per Unit for a total purchase price for the Units of $5,932,377.60 (the “Purchase Price”).

3.Closing.  Closing shall occur on the 9th day of December 2019 (the “Closing Date”), at the offices of Star Group, L.P., (9 West Broad Street Street-Suite 310, Stamford, CT 06902.

4.Delivery and Payment for Units. On the Closing Date, Purchaser shall wire the Purchase Price to Seller in accordance with written wire transfer instructions provided to Purchaser by Seller on or before the Closing Date. Upon receipt of the Purchase Price, Seller shall deliver the Units to Purchaser electronically through DTC in accordance with written instructions provided by Purchaser to Seller on or before the Closing Date.

5.Representations and Warranties of Seller.  Seller hereby represents and warrants to Purchaser as follows: (i) upon receipt of the Purchase Price as provided in this Agreement, Seller will deliver good and valid title to the Units, free and clear from all liens, claims and encumbrances of any nature whatsoever, other than any liens, claims and encumbrances created by Purchaser, (ii) the execution, delivery and performance of this Agreement has been duly authorized by all necessary action on the part of Seller and this Agreement has been duly executed and delivered on behalf of Seller, and (iii) Seller has the power and authority to execute, deliver and perform this Agreement.

6.Representations and Warranties of Purchaser.  Purchaser hereby represents and warrants to Seller as follows:

(a)Power; Due Authorization; Binding Agreement.  Purchaser is a limited partnership duly organized, validly existing and in good standing under the laws of its

jurisdiction of organization.  The execution, delivery and performance of this Agreement has been duly authorized by all necessary action on the part of Purchaser and Purchaser has the full power and authority to execute and deliver this Agreement, to perform its obligations under this Agreement and to consummate the transactions contemplated hereby.  This Agreement has been duly executed and delivered on behalf of Purchaser and constitutes a valid and binding agreement of Purchaser.

(b)No Conflicts.  The execution and delivery of this Agreement by Purchaser does not, and the performance of the terms of this Agreement by Purchaser will not, (i) contravene or conflict with any certificate of limited partnership, limited partnership agreement or any other similar organizational documents of Purchaser, (ii) require Purchaser to obtain the consent or approval of, or make any filing with or notification to, any governmental body, agency or official of any country or political subdivision of any country, including any federal, national, supranational, state, provincial, local or other government, governmental, regulatory or administrative authority, agency or commission or any court, tribunal, or judicial or arbitral body (“Governmental Authority”), other than any required filing under U.S. federal securities laws, (iii) require the consent or approval of any other person pursuant to any agreement, obligation or instrument binding on Purchaser or its properties and assets, (iv) conflict with or violate any law, rule, regulation, order, judgment or decree applicable to Purchaser or pursuant to which any of its assets are bound or (v) violate any other agreement to which Purchaser is a party.

(c)Material Non-Public Information.  To its knowledge, Purchaser has not provided any material non-public information regarding Purchaser to Seller that has not been disclosed to the public prior to the date hereof.

(d)Accredited Investor.  Purchaser is an “accredited investor” as that term is defined under Securities and Exchange Commission Regulation D.

(e)Acquisition of the Units for Own Account.  Purchaser is acquiring the Units for its own account and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act of 1933, as amended.

(f)Private, Negotiated Transaction.  Purchaser is aware and hereby acknowledges that the purchase and sale of the Units and the transactions contemplated by this Agreement are being made in a private, negotiated transaction between the parties.

(g)No Reliance.  Purchaser hereby acknowledges and agrees that Seller has not made any representation or warranty, express or implied, regarding any aspect of the transactions contemplated by this Agreement except as explicitly set forth in this Agreement, and Seller is not relying on any representation or warranty not contained in this Agreement.

7.Securities Law Representations, Warranties, Covenants, and Releases.  In connection with the Purchase, Seller hereby represents, warrants and agrees as follows:

(a)Purchaser has informed Seller that Purchaser possesses non-public information (the “Non-Public Information”) concerning Purchaser, including, without limitation, with respect to Purchaser’s results of operations and financial condition as of and for its first

2

fiscal quarter ending December 31, 2019, and Purchaser is precluded from disclosing such information to Seller (the “Non-Disclosure”);

(b)the Non-Public Information may be indicative of a value of the Units that is higher than the purchase price reflected in the Purchase;

(c)Seller is an experienced and sophisticated investor that would qualify as an “accredited investor” as defined in Rule 501 of Regulation D and Seller is knowledgeable in trading equity securities and understands the disadvantage to which Seller is subject on account of the disparity of information as between Purchaser and Seller;

(d)Seller is not relying on any representations, warranties or disclosure from Purchaser or any person acting on Purchaser’s behalf in connection with the Purchase;

(e)Seller acknowledges that Purchaser is relying on this Agreement in purchasing the Units and would not purchase the Units in the absence of this Agreement; and

(f)Seller hereby waives, releases and forever discharges Purchaser from and against any and all claims, demands, causes of action and liabilities whatsoever, whether known or unknown, both at law and at equity, that it may have against Purchaser on account of the Non-Disclosure, including, without limitation, under Federal and state securities laws, including Section 10(b) or Rule 10b-5 of the Securities Exchange Act of 1934, as amended.

8.Further Assurances.  Purchaser and Seller shall execute and deliver any further documents of whatsoever nature which may be reasonably necessary to effectuate and consummate the transaction set forth in this Agreement.

9.Survival.  The representations and warranties contained in this Agreement shall survive indefinitely.

10.Applicable Law.  This Agreement shall be subject to and governed by the laws of the State of New York without regard to conflicts of law principles other than Section 5-1401 of the New York General Obligations Law.

11.Binding Effect.  This Agreement shall bind the parties hereto, their legal representatives, their successors and assigns.

12.Counterparts and Facsimiles.  This Agreement may be executed by facsimile and/or electronic signature and/or in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document.

13.Entire Agreement.  This Agreement constitutes the entire Agreement among the parties with respect to the subject matter hereof and supersedes all other prior and contemporaneous agreements or representations and understandings.

14.Severability.  If any provision of this Agreement or the application of any such provision to any person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall

3

not affect any other provision hereof and all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the essential economic or legal substance of the transactions contemplated hereby is not affected.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

15.Modification.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties.

16.Waiver.  No waiver of any of the provisions of this Agreement shall be deemed, or will constitute, a waiver of any other provision, whether or not similar, nor will any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the day and year first above written.

PURCHASER:

STAR GROUP, L.P.

By Kestrel Heat, LLC, general partner

By: /s/ Richard F. Ambury

Name:Richard F. Ambury

Title:  Chief Financial Officer

SELLER:

CAT ROCK CAPITAL MANAGEMENT, LP

By: /s/ Andrew Flinn

Name:Andrew Flinn

Title: Chief Financial Officer

5

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Jeffrey M. Woosnam, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Star Group, L.P. (“Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information and;

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 3, 2020

/s/ Jeffrey M. Woosnam

Jeffrey M. Woosnam

President and Chief Executive Officer

Star Group, L.P.

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Richard F. Ambury, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Star Group, L.P. (“Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrants’ other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(c) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information and;

(d) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 3, 2020

/s/ Richard F. Ambury

Richard F. Ambury

Chief Financial Officer

Star Group, L.P.

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Star Group, L.P. (the “Company”) on Form 10-Q for the quarterly period ended December 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey M. Woosnam, President and Chief Executive Officer of the Company, certify to my knowledge pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, following due inquiry, I believe that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Star Group, L.P. and will be retained by Star Group, L.P. and furnished to the Securities and Exchange Commission or its staff upon request.

	STAR GROUP, L.P.
	By:	KESTREL HEAT, LLC (General Partner)
Date: February 3, 2020
	By:	/s/ Jeffrey M. Woosnam
		Jeffrey M. Woosnam
		President and Chief Executive Officer
		Star Group, L.P.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Star Group, L.P. (the “Company”) on Form 10-Q for the quarterly period ended December 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard F. Ambury, Chief Financial Officer of the Company, certify to my knowledge pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, following due inquiry, I believe that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Star Group, L.P. and will be retained by Star Group, L.P. and furnished to the Securities and Exchange Commission or its staff upon request.

	STAR GROUP, L.P.
	By:	KESTREL HEAT, LLC (General Partner)
		/s/ Richard F. Ambury
Date: February 3, 2020	By:	Richard F. Ambury
		Chief Financial Officer
		Star Group, L.P.

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Captive Insurance Collateral - Schedule of Maturities of Investments (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Investments Debt And Equity Securities [Abstract]
Due within one year	$ 9,946
Due after one year through five years	41,173
Due after five years through ten years	11,584
Total	$ 62,703	$ 58,490

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Common Unit Repurchase and Retirement - Additional Information (Detail) - USD ($) shares in Thousands		1 Months Ended				3 Months Ended		84 Months Ended	85 Months Ended
	Jul. 02, 2018	Dec. 31, 2019		Nov. 30, 2019	Oct. 31, 2019	Dec. 31, 2019		Sep. 30, 2019	Jul. 31, 2019	Dec. 04, 2019	Aug. 31, 2019
Capital Unit [Line Items]
Company's common units authorized for repurchase									1,300		2,300
Fifth Amendment
Capital Unit [Line Items]
Availability required to repurchase common units	$ 45,000,000
Percentage of the maximum facility size on a historical proforma and forward-looking basis	15.00%
Non Seasonal maximum borrowing capacity under revolving credit facility	$ 300,000,000									$ 300,000,000
Minimum fixed charge coverage ratio for distributions to unit holders or to repurchase common units	115.00%
Repurchase Plan
Capital Unit [Line Items]
Company's common units repurchased and retired		797		261	223	1,281		13,340	9,500
Total Common Units remain available for repurchase		306	[1]	472	733	306	[1]	956
Common Stock Available for Repurchase Under Privately Negotiated Transactions
Capital Unit [Line Items]
Company's common units authorized for repurchase											1,300
Common Stock Available for Repurchase Under Open Market Transactions
Capital Unit [Line Items]
Company's common units authorized for repurchase											1,000
Common Stock Repurchase Under Open Market Transactions
Capital Unit [Line Items]
Company's common units repurchased and retired						700

[1] First quarter of fiscal year 2020 Common Units repurchased include 0.6 million Common Units acquired in a private transaction.

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Leases - Additional Information (Detail)	3 Months Ended
	Dec. 31, 2019
Minimum
Lessee Lease Description [Line Items]
Operating lease expiration year	2020
Operating lease, term of contract	1 year
Maximum
Lessee Lease Description [Line Items]
Operating lease expiration year	2039
Operating lease, term of contract	20 years
Operating lease, option to extend, term	5 years

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Supplemental Disclosure of Cash Flow Information - Schedule of Supplemental Disclosure of Cash Flow Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash paid during the period for:
Income taxes, net	$ 4,750	$ 3,811
Interest	$ 3,126	$ 2,441

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Earnings Per Limited Partner Unit

3 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Limited Partner Unit

16) Earnings Per Limited Partner Unit

Income per limited partner unit is computed in accordance with FASB ASC 260-10-05 Earnings Per Share, Master Limited Partnerships (EITF 03-06), by dividing the limited partners’ interest in net income by the weighted average number of limited partner units outstanding. The pro forma nature of the allocation required by this standard provides that in any accounting period where the Company’s aggregate net income exceeds its aggregate distribution for such period, the Company is required to present net income per limited partner unit as if all of the earnings for the periods were distributed, regardless of whether those earnings would actually be distributed during a particular period from an economic or practical perspective. This allocation does not impact the Company’s overall net income or other financial results. However, for periods in which the Company’s aggregate net income exceeds its aggregate distributions for such period, it will have the impact of reducing the earnings per limited partner unit, as the calculation according to this standard result in a theoretical increased allocation of undistributed earnings to the General Partner. In accounting periods where aggregate net income does not exceed aggregate distributions for such period, this standard does not have any impact on the Company’s net income per limited partner unit calculation. A separate and independent calculation for each quarter and year-to-date period is performed, in which the Company’s contractual participation rights are taken into account.

The following presents the net income allocation and per unit data using this method for the periods presented:

	Three Months Ended
Basic and Diluted Earnings Per Limited Partner:	December 31,
(in thousands, except per unit data)	2019		2018
Net income	$	27,755	$	2,315
Less General Partner’s interest in net income		192		15
Net income available to limited partners		27,563		2,300
Less dilutive impact of theoretical distribution of earnings    under FASB ASC 260-10-45-60		4,351		—
Limited Partner’s interest in net income under FASB ASC 260-10-45-60	$	23,212	$	2,300
Per unit data:
Basic and diluted net income available to limited partners	$	0.58	$	0.04
Less dilutive impact of theoretical distribution of earnings    under FASB ASC 260-10-45-60		0.09		—
Limited Partner’s interest in net income under FASB ASC    260-10-45-60	$	0.49	$	0.04
Weighted average number of Limited Partner units outstanding		47,266		52,905

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Common Unit Repurchase and Retirement (Tables)

3 Months Ended

Dec. 31, 2019

Equity [Abstract]

Company's Repurchase Activities

The following table shows repurchases under the Repurchase Plan.

(in thousands, except per unit amounts)
Period	Total Number of Units Purchased		Average Price Paid per Unit (a)		Total Number of Units Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Units that May Yet Be Purchased
Fiscal year 2012 to 2019 total		13,340	$	8.08		10,896		956
October 2019		223	$	9.44		223		733
November 2019		261	$	9.39		261		472
December 2019		797	$	9.42		166		306	(b)
First quarter fiscal year 2020 total		1,281	$	9.42		650		306
January 2020		160	$	9.48		160		146	(c)

(a) Amount includes repurchase costs.

(b) First quarter of fiscal year 2020 Common Units repurchased include 0.6 million Common Units acquired in a private transaction.

(c) Of the total available for repurchase, less than 0.1 million are available for repurchase in open market transactions and 0.1 million are available for repurchase in privately-negotiated transactions.

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Common Unit Repurchase and Retirement

3 Months Ended

Dec. 31, 2019

Equity [Abstract]

Common Unit Repurchase and Retirement

4) Common Unit Repurchase and Retirement

In July 2012, the Board adopted a plan to repurchase certain of the Company’s Common Units that was amended in fiscal 2018 (the “Repurchase Plan”).  Through August 2019, the Company had repurchased approximately 9.5 million Common Units under the Repurchase Plan. In August 2019, the Board authorized an increase of the number of Common Units that remained available for the Company to repurchase from 1.3 million to a total of 2.3 million, of which 1.0 million were available for repurchase in open market transactions and 1.3 million were available for repurchase in privately-negotiated transactions.  During the first fiscal quarter of 2020, the Company repurchased approximately 0.7 million Common Units in open market transactions under the Repurchase Plan and 0.3 million Common Units remained available for repurchase at the end of the first fiscal quarter of 2020.  There is no guarantee of the exact number of units that will be purchased under the Repurchase Plan and the Company may discontinue purchases at any time. The Repurchase Plan does not have a time limit. The Board may also approve additional purchases of units from time to time in private transactions. The Company’s repurchase activities take into account SEC safe harbor rules and guidance for issuer repurchases. All of the Common Units purchased in the Repurchase Plan will be retired.

Under the Company’s fifth amended and restated credit agreement dated December 4, 2019, in order to repurchase Common Units we must maintain Availability (as defined in the fifth amended and restated credit agreement) of $45 million, 15.0% of the facility size of $300 million (assuming the non-seasonal aggregate commitment is outstanding) on a historical pro forma and forward-looking basis, and a fixed charge coverage ratio of not less than 1.15 measured as of the date of repurchase.  The Company was in compliance with this covenant as of December 31, 2019.

The following table shows repurchases under the Repurchase Plan.

(in thousands, except per unit amounts)
Period	Total Number of Units Purchased		Average Price Paid per Unit (a)		Total Number of Units Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Units that May Yet Be Purchased
Fiscal year 2012 to 2019 total		13,340	$	8.08		10,896		956
October 2019		223	$	9.44		223		733
November 2019		261	$	9.39		261		472
December 2019		797	$	9.42		166		306	(b)
First quarter fiscal year 2020 total		1,281	$	9.42		650		306
January 2020		160	$	9.48		160		146	(c)

(a) Amount includes repurchase costs.

(b) First quarter of fiscal year 2020 Common Units repurchased include 0.6 million Common Units acquired in a private transaction.

(c) Of the total available for repurchase, less than 0.1 million are available for repurchase in open market transactions and 0.1 million are available for repurchase in privately-negotiated transactions.

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Property and Equipment

3 Months Ended

Dec. 31, 2019

Property Plant And Equipment [Abstract]

Property and Equipment

8) Property and Equipment

Property and equipment are stated at cost. Depreciation is computed over the estimated useful lives of the depreciable assets using the straight-line method (in thousands):

	December 31, 2019		September 30, 2019
Property and equipment	$	232,423	$	230,690
Less: accumulated depreciation		135,911		132,451
Property and equipment, net	$	96,512	$	98,239

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Income Taxes

3 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

12) Income Taxes

 The accompanying financial statements are reported on a fiscal year, however, the Company and its corporate subsidiaries file Federal and State income tax returns on a calendar year.

The current and deferred income tax expense (benefit) for the three months ended December 31, 2019, and 2018 are as follows:

	Three Months Ended
	December 31,
(in thousands)	2019		2018
Income before income taxes	$	39,537	$	3,288
Current income tax expense		10,446		1,589
Deferred income tax expense (benefit)		1,336		(616	)
Total income tax expense	$	11,782	$	973

At December 31, 2019, we did not have unrecognized income tax benefits.

Our continuing practice is to recognize interest and penalties related to income tax matters as a component of income tax expense. We file U.S. Federal income tax returns and various state and local returns. A number of years may elapse before an uncertain tax position is audited and finally resolved. For our Federal income tax returns we have four tax years subject to examination. In our major state tax jurisdictions of New York, Connecticut and Pennsylvania, we have four years that are subject to examination. In the state tax jurisdiction of New Jersey we have five tax years that are subject to examination. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, based on our assessment of many factors, including past experience and interpretation of tax law, we believe that our provision for income taxes reflect the most probable outcome. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events.

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Supplemental Disclosure of Cash Flow Information (Tables)

3 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Elements [Abstract]

Schedule of Supplemental Disclosure of Cash Flow Information

	Three Months Ended
Cash paid during the period for:	December 31,
(in thousands)	2019		2018
Income taxes, net	$	4,750	$	3,811
Interest	$	3,126	$	2,441

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Intangibles, net (Tables)

3 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets Subject to Amortization

The gross carrying amount and accumulated amortization of intangible assets subject to amortization are as follows (in thousands):

	December 31, 2019						September 30, 2019
	Gross						Gross
	Carrying		Accum.				Carrying		Accum.
	Amount		Amortization		Net		Amount		Amortization		Net
Customer lists	$	383,388	$	301,933	$	81,455	$	382,373	$	297,221	$	85,152
Trade names and other intangibles		37,853		15,771		22,082		37,739		15,203		22,536
Total	$	421,241	$	317,704	$	103,537	$	420,112	$	312,424	$	107,688

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Cash flows provided by (used in) operating activities:
Net income		$ 27,755	$ 2,315
Adjustment to reconcile net income to net cash provided by (used in) operating activities:
(Increase) decrease in the fair value of derivative instruments	[1]	(6,417)	31,039
Depreciation and amortization		9,285	8,004
Provision for losses on accounts receivable		1,010	1,529
Change in deferred taxes		1,336	(616)
Changes in operating assets and liabilities:
Increase in receivables		(85,745)	(95,743)
Increase in inventories		(15,427)	(20,187)
Increase in other assets		(2,394)	(3,235)
Increase in accounts payable		14,375	8,206
Decrease in customer credit balances		(15,898)	(14,120)
Increase in other current and long-term liabilities		20,529	19,917
Net cash used in operating activities		(51,591)	(62,891)
Cash flows provided by (used in) investing activities:
Capital expenditures		(3,024)	(4,025)
Proceeds from sales of fixed assets		63	644
Purchase of investments		(4,206)	(4,456)
Acquisitions		(496)	(275)
Net cash used in investing activities		(7,663)	(8,112)
Cash flows provided by (used in) financing activities:
Revolving credit facility borrowings		90,202	92,500
Revolving credit facility repayments		(39,014)
Loan issuance		130,000
Term loan repayments		(92,500)
Distributions		(6,155)	(6,413)
Unit repurchases		(12,064)	(5,735)
Customer retainage payments		(299)	(57)
Payments of debt issue costs		(1,273)	(34)
Net cash provided by financing activities		68,897	80,261
Net increase in cash, cash equivalents, and restricted cash		9,643	9,258
Cash, cash equivalents, and restricted cash at beginning of period		5,149	14,781
Cash, cash equivalents, and restricted cash at end of period		$ 14,792	$ 24,039

[1] Represents the change in value of unrealized open positions and expired options.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Statement Of Financial Position [Abstract]
Receivables, allowance	$ 8,499	$ 8,378

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Business Combinations - Additional Information (Detail) $ in Millions	3 Months Ended
	Dec. 31, 2019 USD ($)
Acquired Business
Business Acquisition [Line Items]
Aggregate purchase price partnership acquired	$ 0.5

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Long-Term Debt and Bank Facility Borrowings - Company's Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
Term Loan
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ 0.7	$ 0.6

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Long-Term Debt and Bank Facility Borrowings

3 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt and Bank Facility Borrowings

11) Long-Term Debt and Bank Facility Borrowings

The Company’s debt is as follows (in thousands):

	December 31,				September 30,
	2019				2019
	Carrying Amount		Fair Value (a)		Carrying Amount		Fair Value (a)
Revolving Credit Facility Borrowings	$	112,688	$	112,688	$	61,500	$	61,500
Senior Secured Term Loan (b)		129,275		130,000		91,947		92,500
Total debt	$	241,963	$	242,688	$	153,447	$	154,000
Total short-term portion of debt	$	122,438	$	122,438	$	33,000	$	33,000
Total long-term portion of debt	$	119,525	$	120,250	$	120,447	$	121,000

(a) The face amount of the Company’s variable rate long-term debt approximates fair value.

(b) Carrying amounts are net of unamortized debt issuance costs of $0.7 million as of December 31, 2019 and $0.6 million as of September 30, 2019.

On December 4, 2019, the Company refinanced its five-year term loan and the revolving credit facility with the execution of the fifth amended and restated revolving credit facility agreement with a bank syndicate currently comprised of eleven participants, which enables the Company to borrow up to$300 million ($450 million during the heating season of December through April of each year) on a revolving credit facility for working capital purposes (subject to certain borrowing base limitations and coverage ratios), provides for a $130 million five-year senior secured term loan (the “Term Loan”), allows for the issuance of up to $25 million in letters of credit, and has a maturity date of December 4, 2024.

The Company can increase the revolving credit facility size by $200 million without the consent of the bank group. However, the bank group is not obligated to fund the $200 million increase. If the bank group elects not to fund the increase, the Company can add additional lenders to the group, with the consent of the Agent (as defined in the credit agreement), which shall not be unreasonably withheld. Obligations under the fifth amended and restated credit facility are guaranteed by the Company and its subsidiaries and are secured by liens on substantially all of the Company’s assets, including accounts receivable, inventory, general intangibles, real property, fixtures and equipment.

All amounts outstanding under the fifth amended and restated revolving credit facility become due and payable on the facility termination date of December 4, 2024. The Term Loan is repayable in quarterly payments of $3.25 million with the first payment due March 31, 2020, plus an annual payment equal to 25% of the annual Excess Cash Flow as defined in the credit agreement (an amount not to exceed $12 million annually), less certain voluntary prepayments made during the year, with final payment at maturity.

The interest rate on the fifth amended and restated revolving credit facility and the Term Loan is based on a margin over LIBOR or a base rate. At December 31, 2019, the effective interest rate on the Term Loan was approximately 5.6% and the effective interest rate on revolving credit facility borrowings was approximately 4.4%. At September 30, 2019, the effective interest rate on the term loan and revolving credit facility borrowings was approximately 5.9% and 4.6%, respectively.

The commitment fee on the unused portion of the revolving credit facility is 0.30% from December through April, and 0.20% from May through November.

The fifth amended and restated credit agreement requires the Company to meet certain financial covenants, including a Fixed Charge Coverage Ratio (as defined in the credit agreement) of not less than 1.1 as long as the Term Loan is outstanding or revolving credit facility availability is less than 12.5% of the facility size. In addition, as long as the Term Loan is outstanding, a senior secured leverage ratio cannot be more than 3.0 as calculated as of the quarters ending June or September, and no more than 4.5 as calculated as of the quarters ending December or March.

Certain restrictions are also imposed by the credit agreement, including restrictions on the Company’s ability to incur additional indebtedness, to pay distributions to unitholders, to pay certain inter-company dividends or distributions, repurchase units, make investments, grant liens, sell assets, make acquisitions and engage in certain other activities.

At December 31, 2019, $130.0 million of the Term Loan was outstanding, $112.7 million was outstanding under the revolving credit facility, $1.2 million of hedge positions were secured under the credit agreement, and $4.4 million of letters of credit were issued and outstanding. At September 30, 2019, $92.5 million of the Term Loan was outstanding, $61.5 million was outstanding under the revolving credit facility, $7.7 million of hedge positions were secured under the credit agreement, and $4.6 million of letters of credit were issued and outstanding.

At December 31, 2019, availability was $162.4 million, and the Company was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio. At September 30, 2019, availability was $126.1 million, and the Company was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio.

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Revenue Recognition

3 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue Recognition

3) Revenue Recognition

The following disaggregates our revenue by major sources for the three months ended December 31, 2019 and December 31, 2018:

	Three Months Ended December 31,
(in thousands)	2019		2018
Petroleum Products:
Home heating oil and propane	$	343,346	$	364,202
Other petroleum products		89,342		94,505
Total petroleum products		432,688		458,707
Installations and Services:
Equipment installations		30,565		29,983
Equipment maintenance service contracts		27,908		28,319
Billable call services		17,784		18,018
Total installations and services		76,257		76,320
Total Sales	$	508,945	$	535,027

Deferred Contract Costs

 We recognize an asset for incremental commission expenses paid to sales personnel in conjunction with obtaining new residential customer product and equipment maintenance service contracts. We defer these costs only when we have determined the commissions are, in fact, incremental and would not have been incurred absent the customer contract. Costs to obtain a contract are amortized and recorded ratably as delivery and branch expenses over the period representing the transfer of goods or services to which the assets relate.  Costs to obtain new residential product and equipment maintenance service contracts are amortized as expense over the estimated customer relationship period of approximately five years.  Deferred contract costs are classified as current or non-current within “Prepaid expenses and other current assets” and “Deferred charges and other assets, net,” respectively.  At December 31, 2019 the amount of deferred contract costs included in “Prepaid expenses and other current assets” and “Deferred charges and other assets, net” was $3.5 million and $6.4 million, respectively.  For the quarter ended December 31, 2019 we recognized expense of $1.0 million associated with the amortization of deferred contract costs within “Delivery and branch expenses” in the Condensed Consolidated Statement of Operations.    

Contract Liability Balances

The Company has contract liabilities for advanced payments received from customers for future oil deliveries (primarily amounts received from customers on “smart pay” budget payment plans in advance of oil deliveries) and obligations to service customers with equipment maintenance service contracts.  Contract liabilities are recognized straight-line over the service contract period, generally one year or less.  As of December 31, 2019 and September 30, 2019 the Company had contract liabilities of $120.5 million and $127.0 million, respectively.  During the quarter ended December 31, 2019 the Company recognized $71.5 million of revenue that was included in the September 30, 2019 contract liability balance.During the quarter ended December 31, 2018 the Company recognized $67.1 million of revenue that was included in the September 30, 2018 contract liability balance.

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Inventories

3 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Inventories

7) Inventories

The Company’s product inventories are stated at the lower of cost and net realizable value computed on the weighted average cost method. All other inventories, representing parts and equipment are stated at the lower of cost and net realizable value using the FIFO method. The components of inventory were as follows (in thousands):

	December 31, 2019		September 30, 2019
Product	$	59,343	$	43,536
Parts and equipment		20,918		21,252
Total inventory	$	80,261	$	64,788

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CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL - USD ($) shares in Thousands, $ in Thousands		Total		General Partner	Common Stock	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Sep. 30, 2018		$ 309,785		$ (1,303)	$ 329,129	$ (18,041)
Beginning Balance, unit at Sep. 30, 2018				326	53,088
Impact from adoption of ASU No. 2014-09		9,224		$ 60	$ 9,164
Net income		2,315		15	2,300
Unrealized gain on pension plan obligation		454	[1]			454
Tax effect of unrealized gain on pension plan obligation		(124)				(124)
Unrealized gain (loss) on captive insurance collateral		389				389
Tax effect of unrealized gain (loss) on captive insurance collateral		(82)				(82)
Unrealized gain (loss) on interest rate hedges		(745)				(745)
Tax effect of unrealized (gain) loss on interest rate hedges		197				197
Distributions		(6,413)		(188)	(6,225)
Retirement of units	[2]	(5,735)			$ (5,735)
Retirement of units, shares	[2]				(599)
Ending Balance at Dec. 31, 2018		309,265		$ (1,416)	$ 328,633	(17,952)
Ending Balance, Unit at Dec. 31, 2018				326	52,489
Beginning Balance at Sep. 30, 2019		260,840		$ (1,968)	$ 279,709	(16,901)
Beginning Balance, unit at Sep. 30, 2019				326	47,685
Net income		27,755		$ 192	$ 27,563
Unrealized gain on pension plan obligation		455	[1]			455
Tax effect of unrealized gain on pension plan obligation		(125)				(125)
Unrealized gain (loss) on captive insurance collateral		(64)				(64)
Tax effect of unrealized gain (loss) on captive insurance collateral		8				8
Unrealized gain (loss) on interest rate hedges		334				334
Tax effect of unrealized (gain) loss on interest rate hedges		(86)				(86)
Distributions		(6,155)		(215)	(5,940)
Retirement of units	[2]	(12,064)			$ (12,064)
Retirement of units, shares	[2]				(1,281)
Ending Balance at Dec. 31, 2019		$ 270,898		$ (1,991)	$ 289,268	$ (16,379)
Ending Balance, Unit at Dec. 31, 2019				326	46,404

[1] This item is included in the computation of net periodic pension cost.

[2] See Note 4 – Common Unit Repurchase and Retirement.

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Current assets
Cash and cash equivalents	$ 14,542	$ 4,899
Receivables, net of allowance of $8,499 and $8,378, respectively	205,038	120,245
Inventories	80,261	64,788
Fair asset value of derivative instruments	1,247
Prepaid expenses and other current assets	38,909	36,898
Total current assets	339,997	226,830
Property and equipment, net	96,512	98,239
Operating lease right-of-use assets	103,492
Goodwill	244,574	244,574
Intangibles, net	103,537	107,688
Restricted cash	250	250
Captive insurance collateral	62,703	58,490
Deferred charges and other assets, net	18,083	16,635
Total assets	969,148	752,706
Current liabilities
Accounts payable	47,302	33,973
Revolving credit facility borrowings	112,688	24,000
Fair liability value of derivative instruments	1,893	8,262
Current maturities of long-term debt	9,750	9,000
Current portion of operating lease liabilities	20,202
Accrued expenses and other current liabilities	132,837	120,839
Unearned service contract revenue	70,087	61,213
Customer credit balances	52,766	68,270
Total current liabilities	447,525	325,557
Long-term debt	119,525	120,447
Long-term operating lease liabilities	88,707
Deferred tax liabilities, net	21,655	20,116
Other long-term liabilities	20,838	25,746
Partners’ capital
Common unitholders	289,268	279,709
General partner	(1,991)	(1,968)
Accumulated other comprehensive loss, net of taxes	(16,379)	(16,901)
Total partners’ capital	270,898	260,840
Total liabilities and partners’ capital	$ 969,148	$ 752,706

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Earnings Per Limited Partner Unit (Tables)

3 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Income Allocation and Per Unit Data

The following presents the net income allocation and per unit data using this method for the periods presented:

	Three Months Ended
Basic and Diluted Earnings Per Limited Partner:	December 31,
(in thousands, except per unit data)	2019		2018
Net income	$	27,755	$	2,315
Less General Partner’s interest in net income		192		15
Net income available to limited partners		27,563		2,300
Less dilutive impact of theoretical distribution of earnings    under FASB ASC 260-10-45-60		4,351		—
Limited Partner’s interest in net income under FASB ASC 260-10-45-60	$	23,212	$	2,300
Per unit data:
Basic and diluted net income available to limited partners	$	0.58	$	0.04
Less dilutive impact of theoretical distribution of earnings    under FASB ASC 260-10-45-60		0.09		—
Limited Partner’s interest in net income under FASB ASC    260-10-45-60	$	0.49	$	0.04
Weighted average number of Limited Partner units outstanding		47,266		52,905

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Long-Term Debt and Bank Facility Borrowings (Tables)

3 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Company's Debt

The Company’s debt is as follows (in thousands):

	December 31,				September 30,
	2019				2019
	Carrying Amount		Fair Value (a)		Carrying Amount		Fair Value (a)
Revolving Credit Facility Borrowings	$	112,688	$	112,688	$	61,500	$	61,500
Senior Secured Term Loan (b)		129,275		130,000		91,947		92,500
Total debt	$	241,963	$	242,688	$	153,447	$	154,000
Total short-term portion of debt	$	122,438	$	122,438	$	33,000	$	33,000
Total long-term portion of debt	$	119,525	$	120,250	$	120,447	$	121,000

(a) The face amount of the Company’s variable rate long-term debt approximates fair value.

(b) Carrying amounts are net of unamortized debt issuance costs of $0.7 million as of December 31, 2019 and $0.6 million as of September 30, 2019.

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Property and Equipment - Component of Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Property Plant And Equipment [Abstract]
Property and equipment	$ 232,423	$ 230,690
Less: accumulated depreciation	135,911	132,451
Property and equipment, net	$ 96,512	$ 98,239

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Long-Term Debt and Bank Facility Borrowings - Company's Debt (Detail) - USD ($) $ in Thousands		Dec. 31, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Long-term debt, carrying Amount		$ 241,963	$ 153,447
Current maturities of long-term debt, carrying Amount		122,438	33,000
Long-term debt		119,525	120,447
Long-term debt, fair value	[1]	242,688	154,000
Current maturities of long-term debt, fair value	[1]	122,438	33,000
Long-term portion of debt, fair value	[1]	120,250	121,000
Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility borrowings, carrying Amount		112,688	61,500
Credit facility borrowings, fair value	[1]	112,688	61,500
Term Loan
Debt Instrument [Line Items]
Long-term debt, carrying Amount	[2]	129,275	91,947
Long-term debt, fair value	[1],[2]	$ 130,000	$ 92,500

[1] The face amount of the Company’s variable rate long-term debt approximates fair value.

[2] Carrying amounts are net of unamortized debt issuance costs of $0.7 million as of December 31, 2019 and $0.6 million as of September 30, 2019.

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Derivatives and Hedging-Disclosures and Fair Value Measurements - Additional Information (Detail) gal in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2019 USD ($) gal	Dec. 31, 2018 gal	Sep. 30, 2019 USD ($)	Aug. 31, 2018 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedging positions and payable amounts secured under credit facility | $	$ 1.2		$ 7.7
Prepaid expense and other current assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Aggregated cash posted as collateral in normal course of business | $	2.8
Interest rate swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value | $	43.8		45.0	$ 50.0
Percentage of market risk exposure of long term debt				50.00%
Fair Value | $	$ (1.6)		$ (2.0)
Call Option
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	7.4	7.9
Call Option | Synthetic calls
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	85.8	92.4
Put Option
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	7.2	6.4
Swap Contracts Bought
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	17.2	14.0
Swap Contracts Bought | Short
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume		2.0
Future Contracts | Long
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	18.2	18.3
Future Contracts | Short
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	42.1	41.2
Hedge its Internal Fuel Usage and Other Related Activities Short Swap Contracts Bought
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	0.2
Hedge its Internal Fuel Usage and Other Related Activities Swap Contracts Bought
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative activity volume	4.0	4.3

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Common Unit Repurchase and Retirement - Company's Repurchase Activities (Detail) - $ / shares shares in Thousands		1 Months Ended					3 Months Ended		84 Months Ended	85 Months Ended
		Jan. 31, 2020	Dec. 31, 2019		Nov. 30, 2019	Oct. 31, 2019	Dec. 31, 2019		Sep. 30, 2019	Jul. 31, 2019
Repurchase Plan
Capital Unit [Line Items]
Total Number of Units Purchased			797		261	223	1,281		13,340	9,500
Average Price Paid per Unit	[1]		$ 9.42		$ 9.39	$ 9.44	$ 9.42		$ 8.08
Maximum Number of Units that May Yet Be Purchased			306	[2]	472	733	306	[2]	956
Publicly Announced Plans or Programs As Part of Repurchase Plan
Capital Unit [Line Items]
Total Number of Units Purchased			166		261	223	650		10,896
Subsequent Event | Repurchase Plan
Capital Unit [Line Items]
Total Number of Units Purchased		160
Average Price Paid per Unit	[1]	$ 9.48
Maximum Number of Units that May Yet Be Purchased	[3]	146
Subsequent Event | Publicly Announced Plans or Programs As Part of Repurchase Plan
Capital Unit [Line Items]
Total Number of Units Purchased		160

[1] Amount includes repurchase costs.

[2] First quarter of fiscal year 2020 Common Units repurchased include 0.6 million Common Units acquired in a private transaction.

[3] Of the total available for repurchase, less than 0.1 million are available for repurchase in open market transactions and 0.1 million are available for repurchase in privately-negotiated transactions.

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Income Taxes - Additional Information (Detail)	3 Months Ended
	Dec. 31, 2019 USD ($)
Income Tax Disclosure [Line Items]
Unrecognized income tax benefits	$ 0
Federal
Income Tax Disclosure [Abstract]
Number of years for examination	4 years
New York
Income Tax Disclosure [Abstract]
Number of years for examination	4 years
Connecticut
Income Tax Disclosure [Abstract]
Number of years for examination	4 years
Pennsylvania
Income Tax Disclosure [Abstract]
Number of years for examination	4 years
New Jersey
Income Tax Disclosure [Abstract]
Number of years for examination	5 years

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Leases - Schedule of Maturities of Operating Lease Liabilities Presented Undiscounted Under ASC Topic 840 (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Leases [Abstract]
2020	$ 24,082
2021	20,875
2022	16,687
2023	13,344
2023	11,114
Thereafter	43,506
Total future minimum lease payments	$ 129,608

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Commitments and Contingencies

3 Months Ended

Dec. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

15) Commitments and Contingencies

On April 18, 2017, a civil action was filed in the United States District Court for the Eastern District of New York, entitled M. Norman Donnenfeld v. Petro, Inc., Civil Action Number 2:17-cv-2310-JFB-SIL, against Petro, Inc. By amended complaint filed on August 15, 2017, the Plaintiff alleges he did not receive expected contractual benefits under his protected price plan contract when oil prices fell and asserts various claims for relief including breach of contract, violation of the New York General Business Law and fraudulent inducement. The Plaintiff also seeks to have a class certified of similarly situated Petro customers who entered into protected price plan contracts and were denied the same contractual benefits. No class has yet been certified in this action. The Plaintiff seeks compensatory, punitive and other damages in unspecified amounts.  On September 15, 2017, Petro filed a motion to dismiss the amended complaint as time-barred and for failure to state a cause of action.  On September 12, 2018, the district court granted in part and denied in part Petro's motion to dismiss.  The district court dismissed the Plaintiff's claims for breach of the covenant of good faith and fair dealing and fraudulent inducement, but declined to dismiss the Plaintiff's remaining claims.  The district court granted the Plaintiff leave to amend to attempt to replead his fraudulent inducement claim.  On October 10, 2018, the Plaintiff filed a second amended complaint.  The second amended complaint attempts to replead a fraudulent inducement claim and is otherwise substantially similar or identical to the prior complaint.  On November 13, 2018, Petro moved to dismiss the fraudulent inducement and unjust enrichment claims in the second amended complaint.  On January 31, 2019, the court granted the motion and dismissed the fraudulent inducement and unjust enrichment claims with prejudice.  On February 22, 2019, counsel for Petro and the Plaintiff participated in a mediation which, after arms-length negotiations, resulted in a memorandum of understanding to settle the litigation, subject to the completion of confirmatory discovery, negotiation of a final settlement agreement and court approval.  In an order dated March 27, 2019, the district court stayed all discovery deadlines in light of the pending settlement.  On May 6, 2019, the Plaintiff filed an Unopposed Motion for Preliminary Approval of Class Action Settlement which remains pending before the court.  On October 4, 2019, upon consent of all parties, Judge Roslynn R. Mauskopf assigned the action to Magistrate Judge Steve I. Locke for final disposition.  On December 4, 2019, the court granted preliminary approval of the class action settlement.  The anticipated settlement is not an admission of liability or breach to any customers by Petro and the Company continues to believe the allegations lack merit.  If the settlement is not approved or finalized for any reason, the Company will continue to vigorously defend the action; in that case, we cannot assess the potential outcome or materiality of this matter.  

The Company’s operations are subject to the operating hazards and risks normally incidental to handling, storing and transporting and otherwise providing for use by consumers hazardous liquids such as home heating oil and propane. In the ordinary course of business, the Company is a defendant in various legal proceedings and litigation. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. We do not believe these matters, when considered individually or in the aggregate, could reasonably be expected to have a material adverse effect on the Company’s results of operations, financial position or liquidity.

The Company maintains insurance policies with insurers in amounts and with coverages and deductibles we believe are reasonable and prudent. However, the Company cannot assure that this insurance will be adequate to protect it from all material expenses related to current and potential future claims, legal proceedings and litigation, including the above mentioned action, as certain types of claims may be excluded from our insurance coverage. If we incur substantial liability and the damages are not covered by insurance, or are in excess of policy limits, or if we incur liability at a time when we are not able to obtain liability insurance, then our business, results of operations and financial condition could be materially adversely affected.

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Revenue Recognition (Tables)

3 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Summary of Disaggregation of Revenue by Major Sources

The following disaggregates our revenue by major sources for the three months ended December 31, 2019 and December 31, 2018:

	Three Months Ended December 31,
(in thousands)	2019		2018
Petroleum Products:
Home heating oil and propane	$	343,346	$	364,202
Other petroleum products		89,342		94,505
Total petroleum products		432,688		458,707
Installations and Services:
Equipment installations		30,565		29,983
Equipment maintenance service contracts		27,908		28,319
Billable call services		17,784		18,018
Total installations and services		76,257		76,320
Total Sales	$	508,945	$	535,027

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Apr. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2021	Sep. 30, 2020	Oct. 01, 2019	Sep. 30, 2019	Sep. 30, 2018
Schedule Of Significant Accounting Policies [Line Items]
Cash, cash equivalents, and restricted cash		$ 14,792,000	$ 24,039,000				$ 5,149,000	$ 14,781,000
Cash and cash equivalents		14,542,000					4,899,000
Restricted cash		250,000					250,000
Captive insurance collateral, debt securities		62,703,000					58,490,000
Additional payment obligated to pay if degree days exceed ten year average		5,000,000
Accrued expenses and other current liabilities		132,837,000					120,839,000
Other long-term liabilities		20,838,000					25,746,000
Operating lease right-of-use assets		103,492,000
Current portion of operating lease liabilities		20,202,000
Long-term operating lease liabilities		88,707,000
ASC Topic 842
Schedule Of Significant Accounting Policies [Line Items]
Operating lease right-of-use assets						$ 104,700,000
Current portion of operating lease liabilities						20,100,000
Long-term operating lease liabilities						$ 89,900,000
New England Teamsters & Trucking Industry Pension Fund
Schedule Of Significant Accounting Policies [Line Items]
Accrued expenses and other current liabilities		200,000
Other long-term liabilities		16,900,000
Financial Products Corporation
Schedule Of Significant Accounting Policies [Line Items]
Charge on weather hedge contract			$ 2,000,000
Subsidiaries of Swiss Re
Schedule Of Significant Accounting Policies [Line Items]
Payments of derivative hedging contract	$ 2,100,000
Delivery and branch expenses | Financial Products Corporation
Schedule Of Significant Accounting Policies [Line Items]
Charge on weather hedge contract		3,000,000
Scenario Forecast
Schedule Of Significant Accounting Policies [Line Items]
Derivative maximum payout				$ 5,000,000	$ 5,000,000
Significant Other Observable Inputs Level 2 | New England Teamsters & Trucking Industry Pension Fund
Schedule Of Significant Accounting Policies [Line Items]
Multiemployer plan discounted withdrawal liability		22,100,000
Captive Insurance Collateral | Level 1
Schedule Of Significant Accounting Policies [Line Items]
Captive insurance collateral, debt securities		61,200,000					58,000,000
Captive Insurance Collateral | Mutual Funds
Schedule Of Significant Accounting Policies [Line Items]
Captive insurance collateral, net asset value		$ 1,500,000					$ 500,000
Maximum
Schedule Of Significant Accounting Policies [Line Items]
Cash equivalents, highly liquid investments maturity		3 months
Maximum | Scenario Forecast
Schedule Of Significant Accounting Policies [Line Items]
Derivative maximum receivable				$ 12,500,000	$ 12,500,000

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Sales:
Total sales		$ 508,945	$ 535,027
Cost and expenses:
(Increase) decrease in the fair value of derivative instruments	[1]	(6,417)	31,039
Delivery and branch expenses		96,726	102,673
Depreciation and amortization expenses		9,050	7,745
General and administrative expenses		6,506	7,815
Finance charge income		(713)	(851)
Operating income		42,451	6,063
Interest expense, net		(2,679)	(2,516)
Amortization of debt issuance costs		(235)	(259)
Income before income taxes		39,537	3,288
Income tax expense		11,782	973
Net income		27,755	2,315
General Partner’s interest in net income		192	15
Limited Partners’ interest in net income		$ 27,563	$ 2,300
Basic and diluted income per Limited Partner Unit:	[2]	$ 0.49	$ 0.04
Weighted average number of Limited Partner units outstanding:
Basic and Diluted		47,266	52,905
Product
Sales:
Total sales		$ 432,688	$ 458,707
Installations and services
Sales:
Total sales		76,257	76,320
Cost of product
Cost and expenses:
Cost and expenses		287,673	306,226
Cost of installations and services
Cost and expenses:
Cost and expenses		$ 73,669	$ 74,317

[1] Represents the change in value of unrealized open positions and expired options.

[2] See Note 16 - Earnings Per Limited Partner Unit.

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Organization

3 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Organization

1) Organization

Star Group, L.P. (“Star,” the “Company,” “we,” “us,” or “our”) is a full service provider specializing in the sale of home heating and air conditioning products and services to residential and commercial home heating oil and propane customers. The Company has one reportable segment for accounting purposes.  We also sell diesel fuel, gasoline and home heating oil on a delivery only basis, and in certain of our marketing areas, we provide plumbing services primarily to our home heating oil and propane customer base. We believe we are the nation’s largest retail distributor of home heating oil based upon sales volume. Including our propane locations, we serve customers in the more northern and eastern states within the Northeast, Central and Southeast U.S. regions.

The Company is organized as follows:

• Star is a limited partnership, which at December 31, 2019, had outstanding 46.4 million Common Units (NYSE: “SGU”), representing a 99.3% limited partner interest in Star, and 0.3 million general partner units, representing a 0.7% general partner interest in Star. Our general partner is Kestrel Heat, LLC, a Delaware limited liability company (“Kestrel Heat” or the “general partner”). The Board of Directors of Kestrel Heat (the “Board”) is appointed by its sole member, Kestrel Energy Partners, LLC, a Delaware limited liability company (“Kestrel”).  Since November 1, 2017, Star elected to be treated as a corporation for Federal income tax purposes, so both Star and its subsidiaries (that were already taxable entities) are now subject to Federal and state corporate income taxes. As a result of this election, the Company issued its last Schedule K-1’s for the 2017 calendar year, and now issues Forms 1099-DIV to unitholders.

• Star owns 100% of Star Acquisitions, Inc. (“SA”), a Minnesota corporation that owns 100% of Petro Holdings, Inc. (“Petro”). SA and its subsidiaries are subject to Federal and state corporate income taxes. Star’s operations are conducted through Petro and its subsidiaries. Petro is primarily a Northeast, Central and Southeast U.S. region retail distributor of home heating oil and propane that at December 31, 2019 served approximately 454,000 full service residential and commercial home heating oil and propane customers and 59,000 customers on a delivery only basis. We also sell gasoline and diesel fuel to approximately 26,000 customers. We install, maintain, and repair heating and air conditioning equipment and to a lesser extent provide these services outside our heating oil and propane customer base including approximately 18,000 service contracts for natural gas and other heating systems.

• Petroleum Heat and Power Co., Inc. (“PH&P”) is a 100% owned subsidiary of Star. PH&P is the borrower and Star is the guarantor of the fifth amended and restated credit agreement’s $130 million five-year senior secured term loan and the $300 million ($450 million during the heating season of December through April of each year) revolving credit facility, both due December 4, 2024. (See Note 11—Long-Term Debt and Bank Facility Borrowings)

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Leases (Tables)

3 Months Ended

Dec. 31, 2019

Leases [Abstract]

Summary of Total Lease Costs and Other Information

A summary of total lease costs and other information for the three months ended December 31, 2019 is as follows:

	Three Months Ended
	December 31,
(in thousands)	2019
Lease cost:
Operating lease cost	$	6,599
Short-term lease cost		192
Variable lease cost		1,010
Total lease cost	$	7,801
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,381
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4,010
Weighted-average remaining lease term - operating leases		7.4
Weighted-average discount rate - operating leases		4.8	%

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of December 31, 2019 are as follows:

	December 31,
(in thousands)	2019
Remaining nine months of fiscal year 2020	$	18,658
2021		22,141
2022		17,718
2023		14,396
2024		12,235
Thereafter		45,467
Total undiscounted lease payments		130,615
Less imputed interest		(21,706	)
Total lease liabilities	$	108,909

Schedule of Maturities of Operating Lease Liabilities Presented Undiscounted Under ASC Topic 840

Maturities of operating lease liabilities presented undiscounted under ASC Topic 840 as prescribed by ASC Topic 842 as of September 30, 2019 are as follows:

	September 30,
(in thousands)	2019
2020	$	24,082
2021		20,875
2022		16,687
2023		13,344
2023		11,114
Thereafter		43,506
Total future minimum lease payments	$	129,608

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Property and Equipment (Tables)

3 Months Ended

Dec. 31, 2019

Property Plant And Equipment [Abstract]

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed over the estimated useful lives of the depreciable assets using the straight-line method (in thousands):

	December 31, 2019		September 30, 2019
Property and equipment	$	232,423	$	230,690
Less: accumulated depreciation		135,911		132,451
Property and equipment, net	$	96,512	$	98,239

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Captive Insurance Collateral

3 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

Captive Insurance Collateral

5) Captive Insurance Collateral

The Company considers all of its captive insurance collateral to be available-for-sale investments. Investments at December 31, 2019 consist of the following (in thousands):

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Fair Value
Cash and Receivables	$	1,502	$	—	$	—		$	1,502
U.S. Government Sponsored Agencies		32,397		144		(1	)		32,540
Corporate Debt Securities		23,787		753		—			24,540
Foreign Bonds and Notes		4,052		69		—			4,121
Total	$	61,738	$	966	$	(1	)	$	62,703

Investments at September 30, 2019 consist of the following (in thousands):

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Fair Value
Cash and Receivables	$	509	$	—	$	—		$	509
U.S. Government Sponsored Agencies		29,055		198		(3	)		29,250
Corporate Debt Securities		23,831		773		—			24,604
Foreign Bonds and Notes		4,066		61		—			4,127
Total	$	57,461	$	1,032	$	(3	)	$	58,490

Maturities of investments were as follows at December 31, 2019 (in thousands):

	Net Carrying Amount
Due within one year	$	9,946
Due after one year through five years		41,173
Due after five years through ten years		11,584
Total	$	62,703

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Business Combinations

3 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Combinations

9) Business Combinations

During the first quarter of fiscal year 2020, the Company acquired the customer list and the assets of a heating oil dealer for an aggregate purchase price of approximately $0.5 million.

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Derivatives and Hedging-Disclosures and Fair Value Measurements - Effect of Derivative Instruments on Statement of Operations (Detail) - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) or Loss Unrealized, commodity contracts	[1]	$ (6,417)	$ 31,039
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Cost of product
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) or Loss Recognized, commodity contracts	[2]	6,049	(6,152)
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Cost of installations and service
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) or Loss Recognized, commodity contracts	[2]	(9)	247
Fair Value, Measurements, Recurring | Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 | Commodity Contract | Delivery and branch expenses
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (Gain) or Loss Recognized, commodity contracts	[2]	$ (29)	$ 166

[1] Represents the change in value of unrealized open positions and expired options.

[2] Represents realized closed positions and includes the cost of options as they expire.

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Intangibles, net - Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 421,241	$ 420,112
Accum. Amortization	317,704	312,424
Net	103,537	107,688
Customer Lists
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	383,388	382,373
Accum. Amortization	301,933	297,221
Net	81,455	85,152
Trade Names And Other Intangibles
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	37,853	37,739
Accum. Amortization	15,771	15,203
Net	$ 22,082	$ 22,536

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Long-Term Debt and Bank Facility Borrowings - Additional Information (Detail) - USD ($)		Dec. 04, 2019	Dec. 31, 2019	Sep. 30, 2019	Jul. 02, 2018
Debt Instrument [Line Items]
Hedging positions and payable amounts secured under credit facility			$ 1,200,000	$ 7,700,000
Letters of credit issued and outstanding			4,400,000	4,600,000
Long-term debt, fair value	[1]		242,688,000	154,000,000
Revolving credit facility outstanding			112,688,000	24,000,000
Availability in compliance with the fixed charge coverage ratio			$ 162,400,000	$ 126,100,000
Term Loan
Debt Instrument [Line Items]
Debt instrument, effective interest rate			5.60%	5.90%
Long-term debt, fair value	[1],[2]		$ 130,000,000	$ 92,500,000
Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, effective interest rate			4.40%	4.60%
Revolving credit facility outstanding			$ 112,700,000	$ 61,500,000
Fifth Amendment
Debt Instrument [Line Items]
Non Seasonal maximum borrowing capacity under revolving credit facility		$ 300,000,000			$ 300,000,000
Maximum borrowing capacity (heating season December to April) under revolving credit facility		450,000,000
Issuance of line of credit for working capital purposes		$ 25,000,000
Senior secured term loan maturity date		Dec. 04, 2024
Facility size that can be increased without consulting bank group		$ 200,000,000
Term loan annual payment percentage		25.00%
Commitment fee on the unused portion of the facility from December through April		0.30%
Commitment fee on the unused portion of the facility from May through November		0.20%
Minimum fixed charge coverage ratio		1.10%
Availability percentage to maximum facility size		12.50%
Fifth Amendment | Maximum
Debt Instrument [Line Items]
Senior secured leverage ratio during quarters ending June or September		3.00%
Senior secured leverage ratio during quarters ending December or March		4.50%
Fifth Amendment | Quarterly
Debt Instrument [Line Items]
Term loan periodic payment		$ 3,250,000
Fifth Amendment | Annually | Maximum
Debt Instrument [Line Items]
Term loan periodic payment		12,000,000
Fifth Amendment | Term Loan
Debt Instrument [Line Items]
Outstanding term loan		$ 130,000,000
Senior secured term loan maturity period		5 years

[1] The face amount of the Company’s variable rate long-term debt approximates fair value.

[2] Carrying amounts are net of unamortized debt issuance costs of $0.7 million as of December 31, 2019 and $0.6 million as of September 30, 2019.

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Leases - Summary of Total Lease Costs and Other Information (Detail) $ in Thousands	3 Months Ended
	Dec. 31, 2019 USD ($)
Lease cost:
Operating lease cost	$ 6,599
Short-term lease cost	192
Variable lease cost	1,010
Total lease cost	7,801
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	6,381
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 4,010
Weighted-average remaining lease term - operating leases	7 years 4 months 24 days
Weighted-average discount rate - operating leases	4.80%

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Earnings Per Limited Partner Unit - Net Income Allocation and Per Unit Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Basic and Diluted Earnings Per Limited Partner:
Net income		$ 27,755	$ 2,315
Less General Partner’s interest in net income		192	15
Net income available to limited partners		27,563	2,300
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60		4,351
Limited Partner’s interest in net income under FASB ASC 260-10-45-60		$ 23,212	$ 2,300
Per unit data:
Basic and diluted net income available to limited partners		$ 0.58	$ 0.04
Less dilutive impact of theoretical distribution of earnings under FASB ASC 260-10-45-60		0.09
Limited Partner’s interest in net income under FASB ASC 260-10-45-60	[1]	$ 0.49	$ 0.04
Weighted average number of Limited Partner units outstanding		47,266	52,905

[1] See Note 16 - Earnings Per Limited Partner Unit.

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Derivatives and Hedging-Disclosures and Fair Value Measurements - Offsetting of Financial Assets (Liabilities) and Derivative Assets (Liabilities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Net Assets (Liabilities) Presented in the Statement of Financial Position	$ 1,247
Net Assets (Liabilities) Presented in the Statement of Financial Position	(1,893)	$ (8,262)
Subject to an enforceable master netting arrangement
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Gross Assets Recognized	8,001	15,290
Gross Liabilities Offset in the Statement of Financial Position	(8,777)	(23,805)
Net Assets (Liabilities) Presented in the Statement of Financial Position	(776)	(8,515)
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received		0
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount	(776)	(8,515)
Subject to an enforceable master netting arrangement | Fair asset and fair liability value of derivative instruments
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Gross Assets Recognized	2,815
Gross Liabilities Offset in the Statement of Financial Position	(1,568)
Net Assets (Liabilities) Presented in the Statement of Financial Position	1,247
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received		0
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount	1,247
Subject to an enforceable master netting arrangement | Deferred charges and other assets, net
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Gross Assets Recognized	29
Gross Liabilities Offset in the Statement of Financial Position	(27)
Net Assets (Liabilities) Presented in the Statement of Financial Position	2
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount	2
Subject to an enforceable master netting arrangement | Other long-term assets, net
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Gross Assets Recognized		16
Gross Liabilities Offset in the Statement of Financial Position		(16)
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received		0
Subject to an enforceable master netting arrangement | Fair liability and fair asset value of derivative instruments
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Gross Assets Recognized	4,291	13,824
Gross Liabilities Offset in the Statement of Financial Position	(6,184)	(22,086)
Net Assets (Liabilities) Presented in the Statement of Financial Position	(1,893)	(8,262)
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received		0
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount	(1,893)	(8,262)
Subject to an enforceable master netting arrangement | Other long-term liabilities
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Gross Assets Recognized	866	1,450
Gross Liabilities Offset in the Statement of Financial Position	(998)	(1,703)
Net Assets (Liabilities) Presented in the Statement of Financial Position	(132)	(253)
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments		0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received		0
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount	$ (132)	$ (253)

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Captive Insurance Collateral - Schedule of Captive Insurance Collateral to be Available-for-sale Investments (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 61,738	$ 57,461
Gross Unrealized Gain	966	1,032
Gross Unrealized (Loss)	(1)	(3)
Fair Value	62,703	58,490
Cash and Receivables
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	1,502	509
Fair Value	1,502	509
U.S. Government Sponsored Agencies
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	32,397	29,055
Gross Unrealized Gain	144	198
Gross Unrealized (Loss)	(1)	(3)
Fair Value	32,540	29,250
Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	23,787	23,831
Gross Unrealized Gain	753	773
Fair Value	24,540	24,604
Foreign Bonds and Notes
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	4,052	4,066
Gross Unrealized Gain	69	61
Fair Value	$ 4,121	$ 4,127

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Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Revenue Recognition [Line Items]
Contract costs, amortization period	5 years
Contract liabilities	$ 120.5		$ 127.0
Contract with customer liability, revenue recognized	$ 71.5	$ 67.1
Maximum
Revenue Recognition [Line Items]
Contract liabilities recognition service contract period	1 year
Delivery and Branch Expenses
Revenue Recognition [Line Items]
Amortization of deferred contract costs	$ 1.0
Prepaid Expense and Other Current Assets
Revenue Recognition [Line Items]
Deferred contract costs,current	3.5
Deferred Charges and Other Assets, Net
Revenue Recognition [Line Items]
Deferred contract costs,non current	$ 6.4

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Leases

3 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

13) Leases

The Company has entered into certain operating leases for office space, vehicles and other equipment with lease terms between one to twenty years, expiring between 2020 and 2039. Some of the Company’s real estate property lease agreements have options to extend the leases for up to five years.

The Company determines if an arrangement is a lease at inception.  Lease liabilities are measured at the lease commencement date in an amount equal to the present value of the lease payments over the lease term.  Right-of-use (“ROU”) assets are recognized based on the amount of the lease liability adjusted for any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred.   Renewal options are included in the calculation of the ROU asset and lease liability when it is determined that they are reasonably certain of exercise.

Certain of our lease arrangements contain non-lease components such as common area maintenance.  We have elected to account for the lease component and its associated non-lease components as a single lease component.  Leases with an initial term of 12 months or less are not recognized on our balance sheet. The Company has leases that have variable payments, including lease payments where lease payment increases are based on the percentage change in the Consumer Price Index. For such leases payment at the lease commencement date is used to measure the ROU assets and operating lease liabilities. Changes in the index and other variable payments are expensed as incurred.  The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our operating leases is not readily determinable. The basis for an incremental borrowing rate was our Term Loan, market-based yield curves and comparable debt securities.

A summary of total lease costs and other information for the three months ended December 31, 2019 is as follows:

	Three Months Ended
	December 31,
(in thousands)	2019
Lease cost:
Operating lease cost	$	6,599
Short-term lease cost		192
Variable lease cost		1,010
Total lease cost	$	7,801
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,381
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4,010
Weighted-average remaining lease term - operating leases		7.4
Weighted-average discount rate - operating leases		4.8	%

Maturities of operating lease liabilities as of December 31, 2019 are as follows:

	December 31,
(in thousands)	2019
Remaining nine months of fiscal year 2020	$	18,658
2021		22,141
2022		17,718
2023		14,396
2024		12,235
Thereafter		45,467
Total undiscounted lease payments		130,615
Less imputed interest		(21,706	)
Total lease liabilities	$	108,909

Maturities of operating lease liabilities presented undiscounted under ASC Topic 840 as prescribed by ASC Topic 842 as of September 30, 2019 are as follows:

	September 30,
(in thousands)	2019
2020	$	24,082
2021		20,875
2022		16,687
2023		13,344
2023		11,114
Thereafter		43,506
Total future minimum lease payments	$	129,608

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Subsequent Events

3 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

17) Subsequent Events

Quarterly Distribution Declared

In January 2020, we declared a quarterly distribution of $0.125 per unit, or $0.50 per unit on an annualized basis, on all Common Units with respect to the first quarter of fiscal 2020, payable on February 4, 2020, to holders of record on January 27, 2020. The amount of distributions in excess of the minimum quarterly distribution of $0.0675 are distributed in accordance with our Partnership Agreement, subject to the management incentive compensation plan. As a result, $5.8 million will be paid to the Common Unit holders, $0.2 million to the General Partner unit holders (including $0.2 million of incentive distribution as provided in our Partnership Agreement) and $0.2 million to management pursuant to the management incentive compensation plan which provides for certain members of management to receive incentive distributions that would otherwise be payable to the General Partner.

Common Units Repurchased and Retired

In accordance with the Repurchase Plan, from January 1, 2020 to January 31, 2020, the Company repurchased and retired 0.2 million Common Units at an average price paid of $9.48 per unit.

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Captive Insurance Collateral (Tables)

3 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

Schedule of Captive Insurance Collateral to be Available-for-sale Investments

The Company considers all of its captive insurance collateral to be available-for-sale investments. Investments at December 31, 2019 consist of the following (in thousands):

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Fair Value
Cash and Receivables	$	1,502	$	—	$	—		$	1,502
U.S. Government Sponsored Agencies		32,397		144		(1	)		32,540
Corporate Debt Securities		23,787		753		—			24,540
Foreign Bonds and Notes		4,052		69		—			4,121
Total	$	61,738	$	966	$	(1	)	$	62,703

Investments at September 30, 2019 consist of the following (in thousands):

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Fair Value
Cash and Receivables	$	509	$	—	$	—		$	509
U.S. Government Sponsored Agencies		29,055		198		(3	)		29,250
Corporate Debt Securities		23,831		773		—			24,604
Foreign Bonds and Notes		4,066		61		—			4,127
Total	$	57,461	$	1,032	$	(3	)	$	58,490

Schedule of Maturities of Investments

Maturities of investments were as follows at December 31, 2019 (in thousands):

	Net Carrying Amount
Due within one year	$	9,946
Due after one year through five years		41,173
Due after five years through ten years		11,584
Total	$	62,703

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Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Leases [Abstract]
Remaining nine months of fiscal year 2020	$ 18,658
2021	22,141
2022	17,718
2023	14,396
2024	12,235
Thereafter	45,467
Total undiscounted lease payments	130,615
Less imputed interest	(21,706)
Total lease liabilities	$ 108,909

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Subsequent Events - Additional Information (Detail) - Subsequent Event $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended
	Jan. 31, 2020 USD ($) $ / shares shares
Plan III Common Units Repurchase Program
Subsequent Event [Line Items]
Company's common units repurchased and retired | shares	0.2
Average price paid per unit | $ / shares	$ 9.48
Dividend Declared
Subsequent Event [Line Items]
Distribution declared | $ / shares	0.125
Partners capital projected distribution amount on annualized basis | $ / shares	0.50
Minimum dividend distribution per unit | $ / shares	$ 0.0675
Amount to paid to common unit holders | $	$ 5.8
Amount to paid to the General Partner | $	0.2
Incentive distribution to the General Partner | $	0.2
Incentive distributions to management | $	$ 0.2
Dividend payable date	Feb. 04, 2020
Dividend record date	Jan. 27, 2020

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Common Unit Repurchase and Retirement - Company's Repurchase Activities (Parenthetical) (Detail) - shares shares in Millions	3 Months Ended
	Dec. 31, 2019	Jan. 31, 2020	Aug. 31, 2019	Jul. 31, 2019
Capital Unit [Line Items]
Company's common units authorized for repurchase			2.3	1.3
Private Transaction
Capital Unit [Line Items]
Company's common units repurchased	0.6
Common Stock Available for Repurchase Under Open Market Transactions
Capital Unit [Line Items]
Company's common units authorized for repurchase			1.0
Common Stock Available for Repurchase Under Open Market Transactions | Maximum | Subsequent Event
Capital Unit [Line Items]
Company's common units authorized for repurchase		0.1
Common Stock Available for Repurchase Under Privately Negotiated Transactions
Capital Unit [Line Items]
Company's common units authorized for repurchase			1.3
Common Stock Available for Repurchase Under Privately Negotiated Transactions | Subsequent Event
Capital Unit [Line Items]
Company's common units authorized for repurchase		0.1

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Revenue Recognition - Summary of Disaggregation of Revenue by Major Sources (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Total sales	$ 508,945	$ 535,027
Home heating oil and propane
Disaggregation Of Revenue [Line Items]
Total sales	343,346	364,202
Other petroleum products
Disaggregation Of Revenue [Line Items]
Total sales	89,342	94,505
Petroleum products
Disaggregation Of Revenue [Line Items]
Total sales	432,688	458,707
Equipment installations
Disaggregation Of Revenue [Line Items]
Total sales	30,565	29,983
Equipment maintenance service contracts
Disaggregation Of Revenue [Line Items]
Total sales	27,908	28,319
Billable call services
Disaggregation Of Revenue [Line Items]
Total sales	17,784	18,018
Installations and services
Disaggregation Of Revenue [Line Items]
Total sales	$ 76,257	$ 76,320

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Derivatives and Hedging-Disclosures and Fair Value Measurements - Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 - Commodity Contract - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	$ 8,001	$ 15,290
Derivative Liabilities, commodity contracts	(8,777)	(23,805)
Fair asset and fair liability value of derivative instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	7,106
Derivative Liabilities, commodity contracts	(7,752)
Deferred charges and other assets, net and other long-term liabilities, net balances
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	895
Derivative Liabilities, commodity contracts	(1,025)
Fair liability and fair asset value of derivative instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts		13,824
Derivative Liabilities, commodity contracts		(22,086)
Deferred charges and other assets, net balance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts		1,466
Derivative Liabilities, commodity contracts		(1,719)
Significant Other Observable Inputs Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	8,001	15,290
Derivative Liabilities, commodity contracts	(8,777)	(23,805)
Significant Other Observable Inputs Level 2 | Fair asset and fair liability value of derivative instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	7,106
Derivative Liabilities, commodity contracts	(7,752)
Significant Other Observable Inputs Level 2 | Deferred charges and other assets, net and other long-term liabilities, net balances
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts	895
Derivative Liabilities, commodity contracts	$ (1,025)
Significant Other Observable Inputs Level 2 | Fair liability and fair asset value of derivative instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts		13,824
Derivative Liabilities, commodity contracts		(22,086)
Significant Other Observable Inputs Level 2 | Deferred charges and other assets, net balance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, commodity contracts		1,466
Derivative Liabilities, commodity contracts		$ (1,719)

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Derivatives and Hedging-Disclosures and Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis are listed on the following table.

(In thousands)					Fair Value Measurements at Reporting Date Using:
Derivatives Not Designated    as Hedging Instruments					Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs
Under FASB ASC 815-10	Balance Sheet Location	Total			Level 1		Level 2
Asset Derivatives at December 31, 2019
Commodity contracts	Fair asset and liability value of derivative instruments	$	7,106		$	—	$	7,106
Commodity contracts	Long-term derivative assets included in the deferred charges and other assets, net and other long-term liabilities, net balances		895			—		895
Commodity contract assets at December 31, 2019		$	8,001		$	—	$	8,001
Liability Derivatives at December 31, 2019
Commodity contracts	Fair asset and liability value of derivative instruments	$	(7,752	)	$	—	$	(7,752	)
Commodity contracts	Long-term derivative liabilities  included in the deferred charges and other assets, net and other long-term liabilities, net balances		(1,025	)		—		(1,025	)
Commodity contract liabilities at December 31, 2019		$	(8,777	)	$	—	$	(8,777	)
Asset Derivatives at September 30, 2019
Commodity contracts	Fair liability value of derivative instruments	$	13,824		$	—	$	13,824
Commodity contracts	Long-term derivative assets included in the deferred charges and other assets, net balance and other long term liabilities, net		1,466			—		1,466
Commodity contract assets September 30, 2019		$	15,290		$	—	$	15,290
Liability Derivatives at September 30, 2019
Commodity contracts	Fair liability value of derivative instruments	$	(22,086	)	$	—	$	(22,086	)
Commodity contracts	Long-term derivative liabilities included in the deferred charges and other assets, net balance and other long term liabilities, net		(1,719	)		—		(1,719	)
Commodity contract liabilities September 30, 2019		$	(23,805	)	$	—	$	(23,805	)

Company's Derivatives Assets (Liabilities) Offset by Counterparty

The Company’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table.

(In thousands)									Gross Amounts Not Offset in the Statement of Financial Position
Offsetting of Financial Assets (Liabilities)    and Derivative Assets (Liabilities)	Gross Assets Recognized		Gross Liabilities Offset in the Statement of Financial Position			Net Assets (Liabilities) Presentedin the Statement of Financial Position			Financial Instruments		Cash Collateral Received		Net Amount
Fair asset value of derivative instruments	$	2,815	$	(1,568	)	$	1,247		$	—	$	—	$	1,247
Long-term derivative assets included in    deferred charges and other assets, net		29		(27	)		2			—		—		2
Fair liability value of derivative instruments		4,291		(6,184	)		(1,893	)		—		—		(1,893	)
Long-term derivative liabilities included in    other long-term liabilities, net		866		(998	)		(132	)		—		—		(132	)
Total at December 31, 2019	$	8,001	$	(8,777	)	$	(776	)	$	—	$	—	$	(776	)
Fair asset value of derivative instruments	$	—	$	—		$	—		$	—	$	—	$	—
Long-term derivative assets included in    other long-term assets, net		16		(16	)		—			—		—		—
Fair liability value of derivative instruments		13,824		(22,086	)		(8,262	)		—		—		(8,262	)
Long-term derivative liabilities included in    other long-term liabilities, net		1,450		(1,703	)		(253	)		—		—		(253	)
Total at September 30, 2019	$	15,290	$	(23,805	)	$	(8,515	)	$	—	$	—	$	(8,515	)

Company's Derivatives Assets (Liabilities) Offset by Counterparty

The Company’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table.

(In thousands)									Gross Amounts Not Offset in the Statement of Financial Position
Offsetting of Financial Assets (Liabilities)    and Derivative Assets (Liabilities)	Gross Assets Recognized		Gross Liabilities Offset in the Statement of Financial Position			Net Assets (Liabilities) Presentedin the Statement of Financial Position			Financial Instruments		Cash Collateral Received		Net Amount
Fair asset value of derivative instruments	$	2,815	$	(1,568	)	$	1,247		$	—	$	—	$	1,247
Long-term derivative assets included in    deferred charges and other assets, net		29		(27	)		2			—		—		2
Fair liability value of derivative instruments		4,291		(6,184	)		(1,893	)		—		—		(1,893	)
Long-term derivative liabilities included in    other long-term liabilities, net		866		(998	)		(132	)		—		—		(132	)
Total at December 31, 2019	$	8,001	$	(8,777	)	$	(776	)	$	—	$	—	$	(776	)
Fair asset value of derivative instruments	$	—	$	—		$	—		$	—	$	—	$	—
Long-term derivative assets included in    other long-term assets, net		16		(16	)		—			—		—		—
Fair liability value of derivative instruments		13,824		(22,086	)		(8,262	)		—		—		(8,262	)
Long-term derivative liabilities included in    other long-term liabilities, net		1,450		(1,703	)		(253	)		—		—		(253	)
Total at September 30, 2019	$	15,290	$	(23,805	)	$	(8,515	)	$	—	$	—	$	(8,515	)

Company's Effect on Derivative Instruments on the Statement of Operations

(In thousands)
The Effect of Derivative Instruments on the Statement of Operations
		Amount of (Gain) or Loss Recognized
Derivatives Not Designated as Hedging Instruments Under FASB ASC 815-10	Location of (Gain) or Loss Recognized in Income on Derivative	Three Months Ended December 31, 2019			Three Months Ended December 31, 2018
Commodity contracts	Cost of product (a)	$	6,049		$	(6,152	)
Commodity contracts	Cost of installations and service (a)	$	(9	)	$	247
Commodity contracts	Delivery and branch expenses (a)	$	(29	)	$	166
Commodity contracts	(Increase) / decrease in the fair value of derivative instruments (b)	$	(6,417	)	$	31,039

(a) Represents realized closed positions and includes the cost of options as they expire.

(b) Represents the change in value of unrealized open positions and expired options.

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Supplemental Disclosure of Cash Flow Information

3 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosure of Cash Flow Information

14) Supplemental Disclosure of Cash Flow Information

	Three Months Ended
Cash paid during the period for:	December 31,
(in thousands)	2019		2018
Income taxes, net	$	4,750	$	3,811
Interest	$	3,126	$	2,441

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Consolidated Financial Statements include the accounts of Star and its subsidiaries. All material intercompany items and transactions have been eliminated in consolidation.

The financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair statement of financial condition and results for the interim periods. Due to the seasonal nature of the Company’s business, the results of operations and cash flows for the three-month period ended December 31, 2019 are not necessarily indicative of the results to be expected for the full year.

These interim financial statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2019.

Comprehensive Income (Loss)

Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of Net income (loss) and Other comprehensive income (loss). Other comprehensive income (loss) consists of the unrealized gain amortization on the Company’s pension plan obligation for its two frozen defined benefit pension plans, unrealized gain (loss) on available-for-sale investments, unrealized gain (loss) on interest rate hedge and the corresponding tax effects.

Cash, Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. At December 31, 2019, the $14.8 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $14.5 million of cash and cash equivalents and $0.3 million of restricted cash. At September 30, 2019, the $5.1 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $4.9 million of cash and cash equivalents and $0.3 million of restricted cash. Restricted cash represents deposits held by our captive insurance company that are required by state insurance regulations to remain in the captive insurance company as cash.

Captive Insurance Collateral

Captive Insurance Collateral

The captive insurance collateral is held by our captive insurance company in an irrevocable trust as collateral for certain workers’ compensation and automobile liability claims.  The collateral is required by a third party insurance carrier that insures per claim amounts above a set deductible. Due to the expected timing of claim payments, the nature of the collateral agreement with the carrier, and our captive insurance company’s source of other operating cash, the collateral is not expected to be used to pay obligations within the next twelve months.

At December 31, 2019, captive insurance collateral is comprised of $61.2 million of Level 1 debt securities measured at fair value and $1.5 million of mutual funds measured at net asset value.  At September 30, 2019, the balance was comprised of $58.0 million of Level 1 debt securities measured at fair value and $0.5 million of mutual funds measured at net asset value. Unrealized gains and losses, net of related income taxes, are reported as accumulated other comprehensive gain (loss), except for losses from impairments which are determined to be other-than-temporary. Realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are included in the determination of net income and are included in Interest expense, net, at which time the average cost basis of these securities are adjusted to fair value.

Weather Hedge Contract

Weather Hedge Contract

To partially mitigate the adverse effect of warm weather on cash flows, the Company has used weather hedge contracts for a number of years. Weather hedge contracts are recorded in accordance with the intrinsic value method defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-45-15 Derivatives and Hedging, Weather Derivatives (EITF 99-2). The premium paid is included in the caption “Prepaid expenses and other current assets” in the accompanying balance sheets and amortized over the life of the contract, with the intrinsic value method applied at each interim period.

The Company entered into weather hedge contracts for fiscal years 2019, 2020 and 2021.  Under these contracts, we are entitled to receive a payment if the total number of degree days within the hedge period is less than the prior ten year average. The “Payment Thresholds,” or strikes, are set at various levels. In addition, we will be obligated to make a payment capped at $5.0 million if degree days exceed the Payment Threshold which approximates the prior ten year average. The hedge period runs from November 1 through March 31, taken as a whole, for each respective fiscal year.  For fiscal 2020 and 2021 the maximum that the Company can receive annually is $12.5 million and the maximum that the Company would be obligated to pay annually is $5.0 million.  As of December 31, 2019, the Company recorded a charge of $3.0 million under this contract that increased delivery and branch expenses. As of December 31, 2018, the Company recorded a charge of $2.0 million under its contract and ultimately paid $2.1 million in April 2019 after the fiscal 2019 heating season.

New England Teamsters and Trucking Industry Pension Fund ("the NETTI Fund") Liability

New England Teamsters and Trucking Industry Pension Fund (“the NETTI Fund”) Liability

As of December 31, 2019, we had $0.2 million and $16.9 million balances included in the captions “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, on our Condensed Consolidated Balance Sheet representing the remaining balance of the NETTI Fund withdrawal liability. Based on the borrowing rates currently available to the Company for long-term financing of a similar maturity, the fair value of the NETTI Fund withdrawal liability as of December 31, 2019 was $22.1 million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC Topic 842”).  The update requires all leases with a term greater than twelve months to be recognized on the balance sheet by recording (i) a lease liability that represents a lessee’s obligation to make lease payments arising from a lease, measured at the present value of the remaining lease payments; and (2) a right-of-use (“ROU”) asset that represents the lessee’s right to use a specified asset for the lease term, measured in an amount equal to the lease liability adjusted for accrued lease payments.  The standard also requires the disclosure of key information pertaining to leasing arrangements.  

As of October 1, 2019, the Company adopted ASC Topic 842 using the modified retrospective transition approach as of the effective date as permitted by the amendments in ASU 2018-11.  As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for periods before the date of adoption (i.e. October 1, 2019).  The Company has elected to adopt the package of transition practical expedients and, therefore, has not reassessed (1) whether existing or expired contracts contain a lease, (2) lease classification for existing or expired leases or (3) the accounting for initial direct costs that were previously capitalized.  We also elected a practical expedient to not separate non-lease components from the lease components and excluded short term leases from the calculation of right of use asset and operating lease liability.  For certain leases relating to vehicles and equipment we elected to apply portfolio approach guidance and accounted for leases with similar characteristics as a single lease. The Company did not elect the practical expedient to use hindsight for leases existing at the adoption date.

The adoption of ASC Topic 842 had a material impact to the Company’s Condensed Consolidated Balance Sheet, but did not impact the Condensed Consolidated Statement of Operations or Condensed Consolidated Statement of Partners’ Capital. The most significant changes to the Condensed Consolidated Balance Sheet relate to the recognition of the following as of October 1, 2019:  “Operating lease right-of-use assets” in the amount of $104.7 million, “Current portion of operating lease liabilities” in the amount of $20.1 million and “Long-term operating lease liabilities” in the amount of $89.9 million. The adoption of ASC Topic 842 also had no impact on operating, investing, or financing cash flows in the Condensed Consolidated Statement of Cash Flows. However, ASC Topic has significantly affected the Company’s disclosures about noncash investing activities. Additionally, the Company’s lease-related disclosures have significantly increased as of and for the three months ended December 31, 2019 as compared to prior years. See Note 13 – Leases for further details on the adoption of ASC Topic 842.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. The update broadens the information that an entity should consider in developing expected credit loss estimates, eliminates the probable initial recognition threshold, and allows for the immediate recognition of the full amount of expected credit losses. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021. The Company is evaluating the effect that ASU No. 2016-13 will have on its consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 230): Simplifying the Test for Goodwill Impairment. The update simplifies how an entity is required to test goodwill for impairment. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but not exceed the total amount of goodwill allocated to the reporting unit. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company has not determined the timing of adoption, but does not expect ASU 2017-04 to have a material impact on its consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-14 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2022, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-15 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption.

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Summary of Significant Accounting Policies

3 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2) Summary of Significant Accounting Policies

Basis of Presentation

The Consolidated Financial Statements include the accounts of Star and its subsidiaries. All material intercompany items and transactions have been eliminated in consolidation.

The financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair statement of financial condition and results for the interim periods. Due to the seasonal nature of the Company’s business, the results of operations and cash flows for the three-month period ended December 31, 2019 are not necessarily indicative of the results to be expected for the full year.

These interim financial statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2019.

Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of Net income (loss) and Other comprehensive income (loss). Other comprehensive income (loss) consists of the unrealized gain amortization on the Company’s pension plan obligation for its two frozen defined benefit pension plans, unrealized gain (loss) on available-for-sale investments, unrealized gain (loss) on interest rate hedge and the corresponding tax effects.

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. At December 31, 2019, the $14.8 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $14.5 million of cash and cash equivalents and $0.3 million of restricted cash. At September 30, 2019, the $5.1 million of cash, cash equivalents, and restricted cash on the Condensed Consolidated Statements of Cash Flows is composed of $4.9 million of cash and cash equivalents and $0.3 million of restricted cash. Restricted cash represents deposits held by our captive insurance company that are required by state insurance regulations to remain in the captive insurance company as cash.

Captive Insurance Collateral

The captive insurance collateral is held by our captive insurance company in an irrevocable trust as collateral for certain workers’ compensation and automobile liability claims.  The collateral is required by a third party insurance carrier that insures per claim amounts above a set deductible. Due to the expected timing of claim payments, the nature of the collateral agreement with the carrier, and our captive insurance company’s source of other operating cash, the collateral is not expected to be used to pay obligations within the next twelve months.

At December 31, 2019, captive insurance collateral is comprised of $61.2 million of Level 1 debt securities measured at fair value and $1.5 million of mutual funds measured at net asset value.  At September 30, 2019, the balance was comprised of $58.0 million of Level 1 debt securities measured at fair value and $0.5 million of mutual funds measured at net asset value. Unrealized gains and losses, net of related income taxes, are reported as accumulated other comprehensive gain (loss), except for losses from impairments which are determined to be other-than-temporary. Realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are included in the determination of net income and are included in Interest expense, net, at which time the average cost basis of these securities are adjusted to fair value.

Weather Hedge Contract

To partially mitigate the adverse effect of warm weather on cash flows, the Company has used weather hedge contracts for a number of years. Weather hedge contracts are recorded in accordance with the intrinsic value method defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815-45-15 Derivatives and Hedging, Weather Derivatives (EITF 99-2). The premium paid is included in the caption “Prepaid expenses and other current assets” in the accompanying balance sheets and amortized over the life of the contract, with the intrinsic value method applied at each interim period.

The Company entered into weather hedge contracts for fiscal years 2019, 2020 and 2021.  Under these contracts, we are entitled to receive a payment if the total number of degree days within the hedge period is less than the prior ten year average. The “Payment Thresholds,” or strikes, are set at various levels. In addition, we will be obligated to make a payment capped at $5.0 million if degree days exceed the Payment Threshold which approximates the prior ten year average. The hedge period runs from November 1 through March 31, taken as a whole, for each respective fiscal year.  For fiscal 2020 and 2021 the maximum that the Company can receive annually is $12.5 million and the maximum that the Company would be obligated to pay annually is $5.0 million.  As of December 31, 2019, the Company recorded a charge of $3.0 million under this contract that increased delivery and branch expenses. As of December 31, 2018, the Company recorded a charge of $2.0 million under its contract and ultimately paid $2.1 million in April 2019 after the fiscal 2019 heating season.

New England Teamsters and Trucking Industry Pension Fund (“the NETTI Fund”) Liability

As of December 31, 2019, we had $0.2 million and $16.9 million balances included in the captions “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, on our Condensed Consolidated Balance Sheet representing the remaining balance of the NETTI Fund withdrawal liability. Based on the borrowing rates currently available to the Company for long-term financing of a similar maturity, the fair value of the NETTI Fund withdrawal liability as of December 31, 2019 was $22.1 million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of this liability.

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC Topic 842”).  The update requires all leases with a term greater than twelve months to be recognized on the balance sheet by recording (i) a lease liability that represents a lessee’s obligation to make lease payments arising from a lease, measured at the present value of the remaining lease payments; and (2) a right-of-use (“ROU”) asset that represents the lessee’s right to use a specified asset for the lease term, measured in an amount equal to the lease liability adjusted for accrued lease payments.  The standard also requires the disclosure of key information pertaining to leasing arrangements.  

As of October 1, 2019, the Company adopted ASC Topic 842 using the modified retrospective transition approach as of the effective date as permitted by the amendments in ASU 2018-11.  As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for periods before the date of adoption (i.e. October 1, 2019).  The Company has elected to adopt the package of transition practical expedients and, therefore, has not reassessed (1) whether existing or expired contracts contain a lease, (2) lease classification for existing or expired leases or (3) the accounting for initial direct costs that were previously capitalized.  We also elected a practical expedient to not separate non-lease components from the lease components and excluded short term leases from the calculation of right of use asset and operating lease liability.  For certain leases relating to vehicles and equipment we elected to apply portfolio approach guidance and accounted for leases with similar characteristics as a single lease. The Company did not elect the practical expedient to use hindsight for leases existing at the adoption date.

The adoption of ASC Topic 842 had a material impact to the Company’s Condensed Consolidated Balance Sheet, but did not impact the Condensed Consolidated Statement of Operations or Condensed Consolidated Statement of Partners’ Capital. The most significant changes to the Condensed Consolidated Balance Sheet relate to the recognition of the following as of October 1, 2019:  “Operating lease right-of-use assets” in the amount of $104.7 million, “Current portion of operating lease liabilities” in the amount of $20.1 million and “Long-term operating lease liabilities” in the amount of $89.9 million. The adoption of ASC Topic 842 also had no impact on operating, investing, or financing cash flows in the Condensed Consolidated Statement of Cash Flows. However, ASC Topic has significantly affected the Company’s disclosures about noncash investing activities. Additionally, the Company’s lease-related disclosures have significantly increased as of and for the three months ended December 31, 2019 as compared to prior years. See Note 13 – Leases for further details on the adoption of ASC Topic 842.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. The update broadens the information that an entity should consider in developing expected credit loss estimates, eliminates the probable initial recognition threshold, and allows for the immediate recognition of the full amount of expected credit losses. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021. The Company is evaluating the effect that ASU No. 2016-13 will have on its consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 230): Simplifying the Test for Goodwill Impairment. The update simplifies how an entity is required to test goodwill for impairment. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but not exceed the total amount of goodwill allocated to the reporting unit. This new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company has not determined the timing of adoption, but does not expect ASU 2017-04 to have a material impact on its consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-14 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance is effective for our annual reporting period beginning in the first quarter of fiscal 2022, with early adoption permitted. The Company is evaluating the effect that ASU No. 2018-15 will have on its consolidated financial statements and related disclosures, and has not determined the timing of adoption.

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Income Taxes (Tables)

3 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Current and Deferred Income Tax Expense (Benefit)

The current and deferred income tax expense (benefit) for the three months ended December 31, 2019, and 2018 are as follows:

	Three Months Ended
	December 31,
(in thousands)	2019		2018
Income before income taxes	$	39,537	$	3,288
Current income tax expense		10,446		1,589
Deferred income tax expense (benefit)		1,336		(616	)
Total income tax expense	$	11,782	$	973

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Inventories (Tables)

3 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Components of Inventory

The components of inventory were as follows (in thousands):

	December 31, 2019		September 30, 2019
Product	$	59,343	$	43,536
Parts and equipment		20,918		21,252
Total inventory	$	80,261	$	64,788

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Organization - Additional Information (Detail) shares in Thousands		3 Months Ended
	Dec. 04, 2019 USD ($)	Dec. 31, 2019 Segment Customer Contract shares	Sep. 30, 2019 shares	Dec. 31, 2018 shares	Sep. 30, 2018 shares	Jul. 02, 2018 USD ($)
Limited Partners' Capital Account [Line Items]
Number of reportable segments | Segment		1
Fifth Amendment
Limited Partners' Capital Account [Line Items]
Non Seasonal maximum borrowing capacity under revolving credit facility | $	$ 300,000,000					$ 300,000,000
Maximum borrowing capacity (heating season December to April) under revolving credit facility | $	$ 450,000,000
Due date of debt	Dec. 04, 2024
Fifth Amendment | Term Loan
Limited Partners' Capital Account [Line Items]
Outstanding term loan | $	$ 130,000,000
Senior secured term loan maturity period	5 years
Petro Holdings, Inc
Limited Partners' Capital Account [Line Items]
Ownership interest of Star Acquisitions Inc.		100.00%
Number of residential and commercial home heating oil and propane customers served | Customer		454,000
Number of customers to whom only home heating oil, gasoline and diesel were sells on a delivery only basis | Customer		59,000
Number of service contracts heating oil and propane for natural gas and other heating systems | Contract		18,000
Number of customers to whom sell gasoline and diesel fuel | Customer		26,000
Star Group L.P.
Limited Partners' Capital Account [Line Items]
Percentage of limited partner interest		99.30%
Percentage of general partner interest		0.70%
Star Acquisitions, Inc
Limited Partners' Capital Account [Line Items]
Ownership interest of partnership		100.00%
Petroleum Heat and Power Co., Inc.
Limited Partners' Capital Account [Line Items]
Ownership interest of partnership		100.00%
Common Stock
Limited Partners' Capital Account [Line Items]
Number of outstanding units | shares		46,404	47,685	52,489	53,088
General Partner
Limited Partners' Capital Account [Line Items]
Number of outstanding units | shares		326	326	326	326

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income		$ 27,755	$ 2,315
Other comprehensive income:
Unrealized gain on pension plan obligation	[1]	455	454
Tax effect of unrealized gain on pension plan obligation		(125)	(124)
Unrealized gain (loss) on captive insurance collateral		(64)	389
Tax effect of unrealized gain (loss) on captive insurance collateral		8	(82)
Unrealized gain (loss) on interest rate hedges		334	(745)
Tax effect of unrealized gain (loss) on interest rate hedges		(86)	197
Total other comprehensive income		522	89
Total comprehensive income		$ 28,277	$ 2,404

[1] This item is included in the computation of net periodic pension cost.

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Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2019	Jan. 31, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Trading Symbol	SGU
Title of 12(b) Security	Common Unit
Security Exchange Name	NYSE
Entity Registrant Name	STAR GROUP, L.P.
Entity Central Index Key	0001002590
Entity Tax Identification Number	06-1437793
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-14129
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		46,243,707
Entity Address, Address Line One	9 West Broad Street
Entity Address, City or Town	Stamford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06902
City Area Code	(203)
Local Phone Number	328-7310

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Derivatives and Hedging-Disclosures and Fair Value Measurements

3 Months Ended

Dec. 31, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Hedging-Disclosures and Fair Value Measurements

6) Derivatives and Hedging—Disclosures and Fair Value Measurements

The Company uses derivative instruments such as futures, options and swap agreements in order to mitigate exposure to market risk associated with the purchase of home heating oil for price-protected customers, physical inventory on hand, inventory in transit, priced purchase commitments and internal fuel usage. FASB ASC 815-10-05 Derivatives and Hedging, established accounting and reporting standards requiring that derivative instruments be recorded at fair value and included in the consolidated balance sheet as assets or liabilities, along with qualitative disclosures regarding the derivative activity. The Company has elected not to designate its commodity derivative instruments as hedging derivatives, but rather as economic hedges whose change in fair value is recognized in its statement of operations in the caption “(Increase) decrease in the fair value of derivative instruments.” Depending on the risk being economically hedged, realized gains and losses are recorded in cost of product, cost of installations and services, or delivery and branch expenses.

As of December 31, 2019, to hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers, the Company held the following derivative instruments that settle in future months to match anticipated sales: 17.2 million gallons of swap contracts, 7.4 million gallons of call options, 7.2 million gallons of put options, and 85.8 million net gallons of synthetic call options. To hedge the inter-month differentials for its price-protected customers, its physical inventory on hand and inventory in transit, the Company, as of December 31, 2019, 18.2 million gallons of long future contracts, and 42.1 million gallons of short future contracts that settle in future months.  To hedge its internal fuel usage and other activities for fiscal 2020, the Company, as of December 31, 2019, had 4.0 million gallons of swap contracts and 0.2 million gallons of short swap contracts that settle in future months.

As of December 31, 2018, to hedge a substantial majority of the purchase price associated with heating oil gallons anticipated to be sold to its price-protected customers, the Company held the following derivative instruments that settle in future months to match anticipated sales: 14.0 million gallons of swap contracts, 7.9 million gallons of call options, 6.4 million gallons of put options, and 92.4 million net gallons of synthetic call options. To hedge the inter-month differentials for its price-protected customers, its physical inventory on hand and inventory in transit, the Company, as of December 31, 2018, had 18.3 million gallons of long future contracts, and 41.2 million gallons of short future contracts that settle in future months. To hedge its internal fuel usage and other related activities for fiscal 2019, the Company, as of December 31, 2018, had 4.3 million gallons of swap contracts and 2.0 million gallons of short swap contracts that settle in future months.

In August 2018, the Company entered into interest rate swap agreements in order to mitigate exposure to market risk associated with variable rate interest on $50.0 million, or 50%, of its long term debt.  The Company has designated its interest rate swap agreements as cash flow hedging derivatives.  To the extent these derivative instruments are effective and the standard’s documentation requirements have been met, changes in fair value are recognized in other comprehensive income until the underlying hedged item is recognized in earnings.  As of December 31, 2019, the notional value of the swap contracts was $43.8 million and the fair value of the swap contracts was $(1.6 million). As of September 30, 2019, the notional value of the swap contracts was $45.0 million and the fair value of the swap contracts was $(2.0) million. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of the swap contracts.

The Company’s derivative instruments are with the following counterparties: Bank of America, N.A., Bank of Montreal, Cargill, Inc., Citibank, N.A., JPMorgan Chase Bank, N.A., Key Bank, N.A., Regions Financial Corporation, Toronto-Dominion Bank and Wells Fargo Bank, N.A. The Company assesses counterparty credit risk and considers it to be low. We maintain master netting arrangements that allow for the non-conditional offsetting of amounts receivable and payable with counterparties to help manage our risks and record derivative positions on a net basis. The Company generally does not receive cash collateral from its counterparties and does not restrict the use of cash collateral it maintains at counterparties. At December 31, 2019, the aggregate cash posted as collateral in the normal course of business at counterparties was $2.8 million and recorded in “Prepaid expense and other current assets.” Positions with counterparties who are also parties to our credit agreement are collateralized under that facility. As of December 31, 2019, $1.2 million of hedge positions and payable amounts were secured under the credit facility.

FASB ASC 820-10 Fair Value Measurements and Disclosures, established a three-tier fair value hierarchy, which classified the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s Level 1 derivative assets and liabilities represent the fair value of commodity contracts used in its hedging activities that are identical and traded in active markets. The Company’s Level 2 derivative assets and liabilities represent the fair value of commodity and interest rate contracts used in its hedging activities that are valued using either directly or indirectly observable inputs, whose nature, risk and class are similar. No significant transfers of assets or liabilities have been made into and out of the Level 1 or Level 2 tiers. All derivative instruments were non-trading positions and were either a Level 1 or Level 2 instrument. The Company had no Level 3 derivative instruments. The fair market value of our Level 1 and Level 2 derivative assets and liabilities are calculated by our counter-parties and are independently validated by the Company. The Company’s calculations are, for Level 1 derivative assets and liabilities, based on the published New York Mercantile Exchange (“NYMEX”) market prices for the commodity contracts open at the end of the period. For Level 2 derivative assets and liabilities the calculations performed by the Company are based on a combination of the NYMEX published market prices and other inputs, including such factors as present value, volatility and duration.

The Company had no assets or liabilities that are measured at fair value on a nonrecurring basis subsequent to their initial recognition. The Company’s financial assets and liabilities measured at fair value on a recurring basis are listed on the following table.

(In thousands)					Fair Value Measurements at Reporting Date Using:
Derivatives Not Designated    as Hedging Instruments					Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs
Under FASB ASC 815-10	Balance Sheet Location	Total			Level 1		Level 2
Asset Derivatives at December 31, 2019
Commodity contracts	Fair asset and liability value of derivative instruments	$	7,106		$	—	$	7,106
Commodity contracts	Long-term derivative assets included in the deferred charges and other assets, net and other long-term liabilities, net balances		895			—		895
Commodity contract assets at December 31, 2019		$	8,001		$	—	$	8,001
Liability Derivatives at December 31, 2019
Commodity contracts	Fair asset and liability value of derivative instruments	$	(7,752	)	$	—	$	(7,752	)
Commodity contracts	Long-term derivative liabilities  included in the deferred charges and other assets, net and other long-term liabilities, net balances		(1,025	)		—		(1,025	)
Commodity contract liabilities at December 31, 2019		$	(8,777	)	$	—	$	(8,777	)
Asset Derivatives at September 30, 2019
Commodity contracts	Fair liability value of derivative instruments	$	13,824		$	—	$	13,824
Commodity contracts	Long-term derivative assets included in the deferred charges and other assets, net balance and other long term liabilities, net		1,466			—		1,466
Commodity contract assets September 30, 2019		$	15,290		$	—	$	15,290
Liability Derivatives at September 30, 2019
Commodity contracts	Fair liability value of derivative instruments	$	(22,086	)	$	—	$	(22,086	)
Commodity contracts	Long-term derivative liabilities included in the deferred charges and other assets, net balance and other long term liabilities, net		(1,719	)		—		(1,719	)
Commodity contract liabilities September 30, 2019		$	(23,805	)	$	—	$	(23,805	)

The Company’s derivative assets (liabilities) offset by counterparty and subject to an enforceable master netting arrangement are listed on the following table.

(In thousands)									Gross Amounts Not Offset in the Statement of Financial Position
Offsetting of Financial Assets (Liabilities)    and Derivative Assets (Liabilities)	Gross Assets Recognized		Gross Liabilities Offset in the Statement of Financial Position			Net Assets (Liabilities) Presentedin the Statement of Financial Position			Financial Instruments		Cash Collateral Received		Net Amount
Fair asset value of derivative instruments	$	2,815	$	(1,568	)	$	1,247		$	—	$	—	$	1,247
Long-term derivative assets included in    deferred charges and other assets, net		29		(27	)		2			—		—		2
Fair liability value of derivative instruments		4,291		(6,184	)		(1,893	)		—		—		(1,893	)
Long-term derivative liabilities included in    other long-term liabilities, net		866		(998	)		(132	)		—		—		(132	)
Total at December 31, 2019	$	8,001	$	(8,777	)	$	(776	)	$	—	$	—	$	(776	)
Fair asset value of derivative instruments	$	—	$	—		$	—		$	—	$	—	$	—
Long-term derivative assets included in    other long-term assets, net		16		(16	)		—			—		—		—
Fair liability value of derivative instruments		13,824		(22,086	)		(8,262	)		—		—		(8,262	)
Long-term derivative liabilities included in    other long-term liabilities, net		1,450		(1,703	)		(253	)		—		—		(253	)
Total at September 30, 2019	$	15,290	$	(23,805	)	$	(8,515	)	$	—	$	—	$	(8,515	)

(In thousands)
The Effect of Derivative Instruments on the Statement of Operations
		Amount of (Gain) or Loss Recognized
Derivatives Not Designated as Hedging Instruments Under FASB ASC 815-10	Location of (Gain) or Loss Recognized in Income on Derivative	Three Months Ended December 31, 2019			Three Months Ended December 31, 2018
Commodity contracts	Cost of product (a)	$	6,049		$	(6,152	)
Commodity contracts	Cost of installations and service (a)	$	(9	)	$	247
Commodity contracts	Delivery and branch expenses (a)	$	(29	)	$	166
Commodity contracts	(Increase) / decrease in the fair value of derivative instruments (b)	$	(6,417	)	$	31,039

(a) Represents realized closed positions and includes the cost of options as they expire.

(b) Represents the change in value of unrealized open positions and expired options.

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Intangibles, net

3 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Intangibles, net

10) Intangibles, net

The gross carrying amount and accumulated amortization of intangible assets subject to amortization are as follows (in thousands):

	December 31, 2019						September 30, 2019
	Gross						Gross
	Carrying		Accum.				Carrying		Accum.
	Amount		Amortization		Net		Amount		Amortization		Net
Customer lists	$	383,388	$	301,933	$	81,455	$	382,373	$	297,221	$	85,152
Trade names and other intangibles		37,853		15,771		22,082		37,739		15,203		22,536
Total	$	421,241	$	317,704	$	103,537	$	420,112	$	312,424	$	107,688

Amortization expense for intangible assets was $5.3 million for the three months ended December 31, 2019, compared to $4.6 million for the three months ended December 31, 2018.

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Income Taxes - Current and Deferred Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deferred Income Tax Assets And Liabilities
Income before income taxes	$ 39,537	$ 3,288
Current income tax expense	10,446	1,589
Deferred income tax expense (benefit)	1,336	(616)
Total income tax expense	$ 11,782	$ 973

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Inventories - Components of Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Inventory Disclosure [Abstract]
Product	$ 59,343	$ 43,536
Parts and equipment	20,918	21,252
Total inventory	$ 80,261	$ 64,788

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Intangibles, net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense for intangible assets	$ 5.3	$ 4.6