Sprague Resources (NYSE:SRLP)
In order to account for Sprague unitholders who are not connected to Hartree Partners, Sprague Resources (NYSE:SRLP) said on Wednesday that it has altered its merger proposal with Global commodities and energy company Hartree Partners.
The new proposal moves the deadline by which the merger cannot close without Hartree’s approval from July 31 to November 28 and changes the deadline by which either party may terminate the merger agreement from December 2 to March 2, 2023.
Sprague (SRLP) also declared that regardless of whether the acquisition closes before the end of Q3, it will provide a cash dividend to unitholders. The partnership anticipates the merger to be completed in Q4. Sprague Resources (SRLP) has been experiencing liquidity difficulty and reduced its payouts by 35% in 2021.
Summary of the Q2 Results
Compared to Q2 2021, when net sales were $657.7 million, Q2 2022 saw net sales of $1,278.3 million. In line with GAAP, Q2 2022’s net loss was $45.3 million, down from Q2 2021’s net loss of $45.6 million, as per released financials.
The adjusted gross margin* increased to $51.1 million in the second quarter of 2022 from the $38.8 million reported in the second quarter of 2021. Adjusted EBITDA* increased from EBITDA of $3.0 million in Q2 2021 to $7.0 million in Q2 2022.
Back in July, the Sprague Resources GP LLC Board of Directors declared a cash dividend of $0.4338 per unit for the three months ending June 30. Unitholders who had their records up to the close of business on August 5, 2022, will receive the distribution on August 10, 2022.
The procurement, storage, distribution, and sale of natural gas and refined petroleum products are the core business activities of Sprague Resources LP, a master limited partnership. For a variety of goods, It also offers storage and handling services.
Featured Image- Megapixl @Tussik13
Author Jowi Kwasu 
