Superior Plus (SPB) Investor Presentation summary

Strategic positioning and market overview

• Holds a top-three position in North American retail propane distribution, serving about 750,000 customers from over 500 locations with a $1.3B market cap and $3.4B enterprise value.

• Largest provider of compressed natural gas (CNG) in North America, with a vertically integrated model from midstream to end customers.

• Propane and CNG markets are stable and fragmented, with Superior Plus holding 6% of the propane market and 44% of the CNG market by volume.

• Propane business generates $235M in adjusted EBITDA in the US and $98M in Canada, with a strong focus on residential and commercial segments.

• CNG segment delivered $148M in adjusted EBITDA in 2024, supported by a fleet of 842 mobile storage units and 20 hubs.

Growth strategy and operational initiatives

• Superior Delivers transformation targets $70M incremental adjusted EBITDA by 2027, with $35M from cost-to-serve improvements and $30M from customer growth.

• Data-driven route optimization has reduced delivery cost-to-serve by about 50% in pilot examples.

• Focus on increasing customer lifetime value through retention and margin improvements, with examples showing significant value growth over time.

• CNG business is positioned for strong growth in wellsite and industrial markets, with dual-fuel and electric fleets expected to increase market share.

• Expansion into utility resiliency and renewable natural gas (RNG) markets offers additional growth, with utility and RNG segments projected to grow at 15-20% CAGR through 2030.

Financial performance and outlook

• H1 2025 adjusted EBITDA rose 5.4% year-over-year to $294M, with all segments contributing to growth.

• Adjusted net earnings per share increased 48.3% and free cash flow per share rose 80% in H1 2025, driven by higher EBITDA and lower capex.

• 2025 adjusted EBITDA is expected to grow by about 8% to $490M, with $20M contribution from Superior Delivers.

• Financial targets for 2027 include adjusted EBITDA of ~$570M, FCF of ~$240M, and adjusted EPS of ~$1.10, with a leverage ratio reduction to below 3.0x.

• Capital allocation priorities for 2025-2027 include $400M in share repurchases, $275M in debt reduction, and $500M in capex, with a dividend yield of ~2.3%.