Suburban Propane Partners, L.P. (NYSE:SPH) Q4 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 09:00 am ET
Certainly. [Operator Instructions] And first from the line of Jeremy Tonet with J.P. Morgan. Please go ahead.
Hey, good morning. This is Charlie on for Jeremy. As we kind of moving in November, I was wondering if you could talk maybe a little bit about some of the activity you're seeing across your footprint as we kind of move closer towards the heart of heating season?
Michael A. Stivala
Well, certainly the first couple of weeks here in November, we've seen some significant weather come into good parts of the country. I think I saw, if you looked at the map yesterday, it seemed as though there was more purple throughout the United States than anything else, which is always a good sign of very cold temperatures, but similar to last year, you just -- you don't know. This is a little early to start building expectations for what that means for the whole heating season. Certainly it's creating a lot of good demand early on here, but we still have a lot of heating season to go and from our perspective, we are extremely well prepared to meet the demand and as well as to be there for our customers in the most extreme circumstances that may or may not arise as the heating season progresses.
Okay. And then in your prepared remarks, you noted a couple of new opportunities that were outside of your radius. Can you talk a little bit more about that?
Michael A. Stivala
Yes. We have -- we've done -- we talked about this for a couple of years now. We've had an initiative of new greenfield expansion activities where we look outside of our territories. We typically say that one of our locations can have a delivery radius of upwards of 50 miles to 75 miles from their location, but we have parts of the map in areas in the West Coast, in the Southeast, the Mid-Atlantic, I mean, virtually every territory that we have in the country is working on some form of market expansion activity. And really what it means is if we're not -- if we don't have a significant presence because we're not physically located in a market that we believe is a good propane market that has demonstrated potential growth opportunities just for propane in generally -- in general and we're not strong or we're not physically present in that market, we go in and penetrate with some marketing, we build up a bit of a following in terms of customer base, and as we get to a certain critical mass, we start looking for property to house a location and depending on how fast we can ramp up the customer base, that location can become a standalone location with a full staff or it could be a satellite of one of our other locations that are relatively close by.
And so those are a lot -- a lot cleaner and cheaper ways of expanding our reach without paying the multiples of an acquisition. Not