Sprague Resources Lp's Business Segments
Sprague Resources Lp's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Revenue Share by Reportable Segment - Q2 FY2022
- Refined Products93%
- Natural Gas5.5%
- Materials Handling1%
- Other0.4%
Revenue by Reportable Segment - Q2 FY2022
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Refined Products | $ 1,189 | 93% |
| Natural Gas | $ 71 | 5.5% |
| Materials Handling | $ 13 | 1% |
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Revenue Share by Country - Q2 FY2022
- United States92.2%
- Canada7.8%
Revenue by Geographic Country - Q2 FY2022
| Country | Revenue (Millions) | % of Total |
|---|---|---|
| United States | $ 1,179 | 92.2% |
| Canada | $ 99 | 7.8% |
Revenue by Product & Service Category - Q2 FY2022
- Distillates62.6%
- Gasoline24.6%
- Heavy Fuel Oil and Asphalt5.9%
Revenue by Product & Service Category - Q2 FY2022
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| Distillates | $ 800 | 62.6% |
| Gasoline | $ 314 | 24.6% |
| Heavy Fuel Oil and Asphalt | $ 75 | 5.9% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
Description of Sprague Resources Lp
We are a Delaware limited partnership formed in June 2011 by Sprague Holdings
and our General Partner to engage in the purchase, storage, distribution and
sale of refined products and natural gas, and to provide storage and handling
services for a broad range of materials.
We are one of the largest independent wholesale distributors of refined products
in the Northeast United States based on aggregate terminal capacity. We own,
operate and/or control a network of 19 refined products and materials handling
terminals strategically located throughout the Northeast United States and in
Quebec, Canada that have a combined storage capacity of 14.1 million barrels
for refined products and other liquid materials, as well as 2.0 million square
feet of materials handling capacity. We also have an aggregate of 2.1 million
barrels of additional storage capacity attributable to 48 storage tanks not
currently in service. These tanks are not necessary for the operation of our
business at current levels. In the event that such additional capacity were
desired, additional time and capital would be required to bring any of such
storage tanks into service. Furthermore, we have access to approximately 60
third-party terminals in the Northeast United States through which we sell or
distribute refined products pursuant to rack, exchange and throughput agreements.
Refined Products
The refined products segment of Sprague Resources LP encompasses a wide variety of fuel and oil products, which can be categorized into several key groups:
1. Distillates:
- Heating Oil: Sprague offers both unbranded heating oil and its proprietary premium brand, HeatForce®. This product is typically used for residential and commercial heating.
- Diesel Fuel: The company provides unbranded diesel fuel as well as its premium brand, RoadForce®. Diesel fuel is essential for transportation, construction, and various industrial purposes.
- Kerosene: A versatile product commonly used for heating, cooking, and lighting, kerosene is part of Spragues refined product offerings.
- Jet Fuel: This specific fuel grade is supplied for aviation, catering to airlines and other aviation-related enterprises.
2. Gasoline:
- Sprague Sources and delivers various gasoline blends, catering to retail outlets and commercial users across its operational territories.
3. Residual Fuel Oil:
- Sprague also deals in residual fuel oil, which is utilized predominantly in industrial applications and power generation.
4. Asphalt:
- Asphalt products are offered for road construction and maintenance, reflecting Sprague’s involvement in infrastructure-related endeavors.
Natural Gas
Sprague Resources LP is a significant player in the natural gas market, providing natural gas and related delivery services primarily to customers in the Northeast and Mid-Atlantic regions of the United States. Key components of this segment include:
- Natural Gas Supply: The company supplies natural gas under various pricing structures, including fixed price and floating price contracts. These structured pricing contracts provide flexibility for both Sprague and its customers.
- Delivery Services: With a network of utility interconnections and pipeline management, Sprague effectively delivers natural gas to its clients, managing interactions with utilities on behalf of its customers.
- Commodity Price Risk Management: To mitigate price fluctuations and associated risks, Sprague utilizes various financial and derivative instruments, including over-the-counter products and exchange-traded commodities at platforms such as the Intercontinental Exchange (ICE) and the New York Mercantile Exchange (NYMEX).
- Supply Commitments: The company enters into various supply contracts and commitments for pipeline transportation capacity, leases for storage facilities, and other logistical arrangements. This strategic positioning aids in managing supply commitments and enhancing operational flexibility.
Materials Handling
The materials handling segment involves the transportation and management of raw materials and finished goods at Spragues waterfront terminals. This encompasses:
- Terminal Operations: Sprague operates a network of terminals where it offloads, stores, and prepares a wide range of products for delivery. This includes liquid products as well as bulk and break bulk materials.
- Heavy Lift Services: The company provides heavy lift and handling services, which cater to the logistical needs of clients involved in various industries.
- Diverse Handling Capabilities: Services include ship handling, crane operations, pile building, warehouse operations, scaling of products, and in some cases, transportation to final destinations.
- Low Capital Risk: Since the products involved are typically owned by the customers, Sprague faces minimal working capital, commercial, or inventory risks. The company’s contracts within this segment are predominantly long-term and fee-based, providing a stable revenue stream.
Conclusion
In summary, Sprague Resources LP offers a robust portfolio of refined products, natural gas services, and materials handling operations. The company leverages its extensive terminal network and strategic supply arrangements to facilitate the efficient delivery and management of energy and related services, ensuring a comprehensive solution for its diverse customer base.