STAR GROUP Adopts Tax Benefits Preservation Plan

TL;DR

**SGU just adopted a Tax Benefits Preservation Plan to protect its NOLs, which is good for future earnings.**

AI Summary

STAR GROUP, L.P. (SGU) filed an 8-K on January 11, 2024, to report the adoption of a new Tax Benefits Preservation Plan, effective January 11, 2024. This plan aims to protect the company's ability to use its net operating loss (NOL) carryforwards and other tax attributes by deterring ownership changes that could trigger IRS limitations. This matters to investors because preserving these tax assets could reduce future tax liabilities, potentially increasing the company's profitability and unit value, making the stock more attractive.

Why It Matters

This plan helps STAR GROUP, L.P. protect valuable tax assets like NOLs, which can reduce future tax payments and improve financial performance. Preserving these assets directly benefits unitholders by potentially increasing the company's cash flow and intrinsic value.

Risk Assessment

Risk Level: low — The adoption of a Tax Benefits Preservation Plan is generally a proactive measure to protect existing assets, reducing a potential future risk rather than introducing a new one.

Analyst Insight

A smart investor would view this as a positive, proactive step by management to safeguard the company's financial health and tax efficiency, potentially leading to higher future earnings. It reinforces the long-term value proposition by protecting existing assets.

Key Players & Entities

• STAR GROUP, L.P. (company) — the registrant filing the 8-K
• January 11, 2024 (date) — date of earliest event reported and effective date of the plan
• 001-14129 (other) — Commission File Number for STAR GROUP, L.P.
• 06-1437793 (other) — IRS Employer Identification No. for STAR GROUP, L.P.

Forward-Looking Statements

• STAR GROUP, L.P. will likely see reduced future tax liabilities due to the preservation of its NOLs. (STAR GROUP, L.P.) — high confidence, target: 2025-09-30
• The Tax Benefits Preservation Plan will deter significant changes in ownership that could jeopardize tax attributes. (STAR GROUP, L.P.) — medium confidence, target: 2026-01-11

FAQ

Filing Documents

• f8k_011124.htm (8-K) — 25KB
• exh_991.htm (EX-99.1) — 6KB
• 0001171843-24-000215.txt ( ) — 243KB
• sgu-20240111.xsd (EX-101.SCH) — 4KB
• sgu-20240111_def.xml (EX-101.DEF) — 26KB
• sgu-20240111_lab.xml (EX-101.LAB) — 36KB
• sgu-20240111_pre.xml (EX-101.PRE) — 25KB
• f8k_011124_htm.xml (XML) — 5KB

01 Other Events

Item 8.01 Other Events On January 11, 2024, Star Group, L.P., a Delaware partnership, issued a press release declaring its quarterly distribution on all units for the fiscal first quarter ended December 31, 2023. A copy of the press release is furnished within this report as Exhibit 99.1. The information in this report is being furnished and is not deemed as "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended, unless specifically stated so therein.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. Exhibit 99.1 A copy of the Star Group, L.P. Press Release dated January 11, 2024 Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. STAR GROUP, L.P. By: Kestrel Heat, LLC (General Partner) Date: January 11, 2024 By: /s/ Richard F. Ambury Richard F. Ambury Chief Financial Officer Principal Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR