Star Group L P's Business Segments

The company is a distributor and service provider of home heating oil and propane to residential and commercial customers in the Northeast and Mid-Atlantic regions of the United States. As of September 30, 2022, the company had approximately 415,900 full service residential and commercial customers, and 75,900 customers on a delivery-only basis. The company's market share in the retail distribution of home heating oil is in excess of 5.5%, making it the largest in the United States in terms of sales volume. The company also sells gasoline and diesel fuel to approximately 26,600 customers, and installs, maintains, and repairs heating and air conditioning equipment for both its heating oil and propane customer base and other customers. The company conducts its business through its operating subsidiary, Petro Holdings, Inc., using several local brand names such as Petro Home Services, Meenan, and Griffith Energy Services, Inc.

The company provides several pricing alternatives to its residential home heating oil customers, including a variable price (market-based) option and a price-protected option that sets either the maximum price or a fixed price that a customer will pay. Approximately 95% of the company's full-service residential and commercial home heating oil customers automatically receive deliveries based on prevailing weather conditions. In addition, approximately 32% of the company's residential customers take advantage of its "smart pay" budget payment plan. The company uses derivative instruments to mitigate its exposure to market risks associated with its price-protected offerings and the storing of its physical home heating oil inventory.

The company operates in several states, including Connecticut, Delaware, Maryland, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, and the District of Columbia. The retail home heating oil industry is mature, and total market demand is expected to decline in the foreseeable future due to conversions to natural gas, availability of other alternative energy sources, and the installation of more fuel-efficient heating systems. The company's ability to maintain its business or grow within the industry is dependent on the acquisition of other retail distributors, the success of its marketing programs, and the growth of its other service offerings.

Star Group L.P. is a leading energy and home service company that provides a wide range of energy-related products and services to homes and businesses across the United States. The company operates in three segments, which include:

1. Home Heating Oil and Propane Segment:

This segment is dedicated to providing home heating oil and propane to residential and commercial customers. It offers a range of products and services, such as automatic delivery, budget payment plans, 24/7 emergency service, and equipment installation and repair. The company also offers price protection plans and various payment options to help customers manage their energy bills.

2. HVAC Services Segment:

The HVAC services segment provides installation, maintenance, and repair services for heating, ventilation, and air conditioning systems. It offers a wide range of products, such as furnaces, boilers, air conditioning units, and heat pumps, and also provides indoor air quality solutions, such as air filtration systems, air cleaners, and humidifiers.

3. Other Services Segment:

The other services segment offers a variety of services to enhance energy efficiency, convenience, and comfort for customers. These services include:

- Plumbing: The company offers plumbing installation, repair, and maintenance services, including leak repair, drain cleaning, and water heater installation.
- Electrical: The company provides electrical services, including installations, repairs, and upgrades for electrical systems in homes and businesses.
- Energy Audits: The company offers energy audits to help customers identify energy-saving opportunities in their homes and businesses.
- Generators: The company provides sales, installation, and maintenance services for backup generators to ensure uninterrupted power supply during emergencies.
- Commercial Energy Services: The company offers energy management solutions to commercial customers, including energy procurement, sustainability consulting, and energy audits.

Star Group L.P. is committed to providing reliable energy products and services to its customers. The company's extensive range of products and services ensures that customers can choose the best solution to meet their energy needs.