Sprague Resources LP

NYSE:SRLP Stock Report

Market Cap: US$524.8m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Sprague Resources Management

Management criteria checks 2/4

Key information

Dave Glendon

Chief executive officer

US$1.5m

Total compensation

CEO salary percentage25.79%
CEO tenure11.3yrs
CEO ownership0.5%
Management average tenure7.5yrs
Board average tenure1.4yrs

Recent management updates

Recent updates

Seeking Alpha • Oct 17

Sprague Resources declares $0.4338 dividend

Sprague Resources (NYSE:SRLP) declares $0.4338/share quarterly dividend, in line with previous. Forward yield 8.75% Payable Oct. 31; for shareholders of record Oct. 27; ex-div Oct. 26. See SRLP Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Jul 25

Sprague Resources declares $0.4338 dividend

Sprague Resources (NYSE:SRLP) declares $0.4338/share quarterly dividend, in line with previous. Forward yield 9.07% Payable Aug. 10; for shareholders of record Aug. 5; ex-div Aug. 4. See SRLP Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • May 12

Sprague Resources: The Worst Is Still Coming

On the surface, it appears that Sprague Resources saw a strong start to 2022, with their adjusted EBITDA for the first quarter seeing a very impressive 45% increase year-on-year. Although when digging deeper, this is not the case, with these results being materially boosted by unrealized gains that provided no tangible benefits. They also saw a relatively large working capital draw that helped ease the pressure upon their very weak liquidity and strained credit facility, but obviously, this is merely temporary. Given the normal seasonality in their financial performance and the downbeat outlook for the remainder of 2022 from management, it seems that a cash burn is very likely. Following this grim outlook, it should not be surprising that I continue believing that my sell rating is appropriate.
Seeking Alpha • Mar 07

Sprague Resources: Liquidity Crisis Amplifying With A Terrible First Quarter Inbound, Time To Sell

Despite economic conditions improving, Sprague Resources was facing a liquidity crisis in late 2021. Whilst they saw a slight reprieve during the fourth quarter of 2021, they still saw negative operating cash flow during the full year. The market has moved back into a deep backwardation structure that threatens to see the cash burn continue into the first quarter of 2022. The balance available on their working capital credit facility is running low and thus without future lender support, they may even face issues remaining a going concern throughout 2022. The potential takeover seems to be anchoring their unit price but since this may not proceed, I believe that downgrading to a sell rating is now appropriate.
Seeking Alpha • Jan 02

Sprague Resources: Impending Liquidity Crisis, Distributions Could Be Suspended

The beaten-down Sprague Resources reduced their distributions by 35% in 2021 but the bigger issue right now is their impending liquidity crisis. Due to the oil and refined products markets being in a backwardation structure, it has seen their underlying operating cash flow turning deep into the negative. Their surface-level results were propped up by a massive working capital draw that stands to drain most of their working capital credit facility when it reverses. Since they have virtually no cash, unless their operating conditions improve significantly and quickly, this would lead to a liquidity crisis and likely see their distributions suspended. This is a very risky situation, but given their depressed unit price, it could rally if operating conditions improve, and thus, I still believe that my neutral rating is appropriate.
Seeking Alpha • Nov 30

Sprague Resources: 12.1% Yield But Risks Abound

Sprague Resources cut its distribution recently. The company reported its third quarter results that came in below expectations. We go over the current problems the company is facing and how it impacts the sustainability of the distribution.
Seeking Alpha • Oct 26

Sprague Resources: Distribution Cut Less Than Expected

Sprague Resources cut its distribution by 35%. This was below the low end of our estimated range. We go over what likely influenced this decision and what investors should be on the lookout for in the next 2 quarters.
Seeking Alpha • Oct 20

Double-Digit Dividends: 12.46%-Yielding Sprague Resources Looks Expensive

I’ve launched a new series focused on long and short opportunities in the double-digit dividend yield market and this is my sixth bearish idea. Sprague Resources plans to cut its quarterly distribution to fund growth capital projects and strengthen its balance sheet. The partnership’s forward EV/EBITDA multiple is between 9.9x and 11.3x and Hartree paid only $16.50 per unit in May. I think the unit price could be headed to $16.50 once the quarterly distribution gets cut.
Seeking Alpha • Aug 06

Sprague Resources: Distributions Cut As Warned, Brace For A Near Wipeout

Sprague Resources has announced that an impending distribution reduction, which I have been consistently warning, was a very real risk. They intend to transition to a more sustainable financial model that focuses on internally generated cash flow to pursue new growth investments. This will obviously push down their free cash flow significantly, which I estimate will entail at least a 50% reduction to their distributions. A significant issue pushing their hand is actually the financial distress caused by their credit facility borrowing base being repeatedly reduced and thus threatening their solvency. This could easily see a near wipeout for their distributions, and thus, until more is known, I believe that maintaining my neutral rating is appropriate.

CEO Compensation Analysis

How has Dave Glendon's remuneration changed compared to Sprague Resources's earnings?
DateTotal CompensationSalaryCompany Earnings
Jun 30 2022n/an/a

-US$99m

Mar 31 2022n/an/a

-US$100m

Dec 31 2021US$1mUS$380k

-US$69m

Sep 30 2021n/an/a

-US$112m

Jun 30 2021n/an/a

US$11m

Mar 31 2021n/an/a

US$30m

Dec 31 2020US$1mUS$381k

US$26m

Sep 30 2020n/an/a

US$35m

Jun 30 2020n/an/a

US$18m

Mar 31 2020n/an/a

US$38m

Dec 31 2019US$898kUS$371k

US$25m

Sep 30 2019n/an/a

US$50m

Jun 30 2019n/an/a

US$39m

Mar 31 2019n/an/a

US$31m

Dec 31 2018US$860kUS$370k

US$72m

Sep 30 2018n/an/a

US$23m

Jun 30 2018n/an/a

US$28m

Mar 31 2018n/an/a

US$35m

Dec 31 2017US$1mUS$364k

US$26m

Sep 30 2017n/an/a

US$38m

Jun 30 2017n/an/a

US$44m

Mar 31 2017n/an/a

US$43m

Dec 31 2016US$1mUS$356k

US$8m

Sep 30 2016n/an/a

US$38m

Jun 30 2016n/an/a

US$56m

Mar 31 2016n/an/a

US$64m

Dec 31 2015US$2mUS$350k

US$78m

Compensation vs Market: Dave's total compensation ($USD1.48M) is below average for companies of similar size in the US market ($USD2.69M).

Compensation vs Earnings: Dave's compensation has increased whilst the company is unprofitable.

CEO

Dave Glendon (56 yo)

11.3yrs
Tenure
US$1,475,431
Compensation

Mr. David C. Glendon, also known as Dave, has been the Chief Executive Officer, Chief Operating Officer since January 01, 2019 and President of Sprague Resources GP LLC, General Partner of Sprague Resource...

Leadership Team

NamePositionTenureCompensationOwnership
David Glendon
President11.3yrsUS$1.48m0.47%
$ 2.5m
David Long
CFO & Principal Accounting Officer of Sprague Resources GP LLC3.8yrsUS$587.23k0.11%
$ 601.0k
Ben Hennelly
Chief Information Officer & VP of Sprague Resources GP LLC1.3yrsUS$473.58kno data
Steven Scammon
VP & Chief Risk Officer of Sprague Resources GP LLC11.3yrsUS$602.82k0.15%
$ 778.2k
Brian Weego
Vice President of Natural Gas - Sprague Resources GP LLC11.3yrsUS$621.52kno data
Thomas Carey
Vice President of Operation - Sprague Resources GP LLC2.3yrsno datano data
Paul Scoff
VP, General Counsel11.3yrsno data0.036%
$ 187.6k
Joseph Smith
Vice President of Corporate Development & IT - Sprague Resources GP LLC3.7yrsUS$1.09m0.16%
$ 846.9k
Barbara Arkwell
Managing Director of Human Resources of Sprague Resources GP LLCno datano datano data
7.5yrs
Average Tenure
58yo
Average Age

Experienced Management: SRLP's management team is seasoned and experienced (7.5 years average tenure).

Board Members

NamePositionTenureCompensationOwnership
David Glendon
President11.3yrsUS$1.48m0.47%
$ 2.5m
C. Harper
Independent Director of Sprague Resources GP LLC9yrsUS$137.50k0.10%
$ 532.3k
Scott Levy
Director of Sprague Resources GP LLC1.4yrsno data0.19%
$ 982.7k
John Shapiro
Independent Director of Sprague Resources GP LLC1.3yrsUS$117.50k0.011%
$ 55.3k
Beth Bowman
Independent Director of Sprague Resources GP LLC8yrsUS$137.50k0.068%
$ 354.4k
Stephen Semlitz
Director of Sprague Resources GP LLC1.4yrsno datano data
Stephen Hendel
Chairman of Sprague Resources GP LLC1.4yrsno datano data
Jonathan Merison
Director of Sprague Resources GP LLC1.4yrsno datano data
Jason Lemme
Director1.1yrsno datano data
1.4yrs
Average Tenure
62yo
Average Age

Experienced Board: SRLP's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/11/01 06:32
End of Day Share Price 2022/10/31 00:00
Earnings2022/06/30
Annual Earnings2021/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Sprague Resources LP is covered by 5 analysts. of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brian ZarahnBarclays
Michael GyureBrean Capital Historical (Janney Montgomery)
Robert BalsamoB. Riley Securities, Inc.