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High leverage ~5-6x Debt/EBITDA typical for MLP; 20% rate rise adds ~$15-20M annual interest expense given ~$500M floating-rate debt exposure

Significant sensitivity; ~60-70% of debt estimated floating-rate; 20% rate increase (~100-120bps) compresses distributable cash flow by roughly 8-12%

High intensity; OPEC+ supply decisions and Russia-Ukraine conflict drive price volatility.

Strait of Hormuz (distillate imports) and Saint Lawrence Seaway / Northeast US port infrastructure for Canadian crude and refined product flows

Minimal sovereign currency devaluation exposure; operations concentrated in USD-denominated US Northeast and Canadian markets with limited direct FX revenue risk

Primarily US Northeast and Eastern Canada; CAD/USD cross-rate is primary FX risk, representing an estimated 10-15% of throughput volume

High intensity; commodities: Crude Oil, Natural Gas, Coal, Refined Petroleum Products, Uranium, Steel (equipment); geopolitical: OPEC+ supply decisions and Russia-Ukraine conflict drive price volatility.

Dependency on major refined product suppliers (ExxonMobil, Citgo, Irving Oil) with no single vendor confirmed >30%, but regional terminal access creates moderate substitution risk

Physical asset-based petroleum distributor and terminaling MLP; minimal cloud infrastructure dependency; operations run on industrial SCADA/ERP, not hyperscaler-dependent

Secondary logistics and supply chain coordination; cloud termination would disrupt back-office ERP/TMS but core terminal operations would continue within 30 days

Low API coupling risk; uses standard ERP (SAP/Oracle-type) and logistics software; no proprietary API ecosystem lock-in identified

Low Howey risk; LP units are securities but revenue model is fee-for-service terminaling and commodity distribution, not an investment contract in regulatory gray zone

High

Low GDPR/CCPA exposure; B2B petroleum distribution with minimal consumer PII; Canadian operations carry modest PIPEDA compliance obligations

Moderate; regional terminal dominance in select Northeast US markets could attract scrutiny, but national market share too small for federal antitrust action

High burden; regimes: EPA, FERC, DOE, CFTC, OSHA, SEC; Accelerating emissions mandates and methane rules threaten capex economics.

Predominantly transactional (~80%) via commodity sales and throughput fees; multi-year storage and terminaling contracts provide ~15-20% recurring base

Primary vectors: refined product resale margin, terminaling/throughput fees, and storage rental; fee-based segment growing as % of EBITDA mix

Cost-plus and market-indexed pricing on commodity sales; terminaling fees set by contract; vulnerable to margin compression if crack spreads narrow or competition increases

Moderate-low; commodity resale margins are thin and market-driven; terminaling fees offer modest pricing power in captive regional markets

Gross margins thin on product sales (~2-4%); terminaling/fee segment margins ~30-40%; blended EBITDA margin approximately 3-5% of total revenue

Low free-rider leakage; physical infrastructure access is gated; customers must contract for terminal capacity; no meaningful free-rider dynamic

Largely headcount-linear for terminal operations; growth via acquisition of physical assets requires proportional operational staff; limited software-driven scalability

High marginal cost; growth requires physical terminal acquisition or construction; not sublinear — each new asset adds capex, opex, and proportional headcount

Not applicable; Sprague operates as an MLP with company-owned terminals, not a franchise model

At 10x scale, CAC remains asset-acquisition driven; unit economics depend on terminal utilization rates (target >85%) and throughput fee spread over fixed asset costs

Weak network effects; geographic terminal density creates modest route optimization advantages, but no demand-side network effect typical of platforms

Low AI displacement risk; core value is physical terminal infrastructure and logistics execution; AI can optimize dispatch/routing but cannot replace asset base

Moderate-high resilience; heating oil and distillates are essential energy products; volume declines ~5-10% in recession but demand floor remains high in Northeast US

Commercial and industrial energy buyers (manufacturers, municipalities, utilities) in US Northeast comprising estimated 50-60% of volume

Wholesale distributors, home heating oil dealers, and marine/bunker fuel customers; concentration risk if top 10 customers represent >40% of revenue

["11-0000 Management Occupations", "13-0000 Business and Financial Operations Occupations", "15-0000 Computer and Mathematical Occupations", "17-0000 Architecture and Engineering Occupations", "19-0000 Life, Physical, and Social Science Occupations", "23-0000 Legal Occupations", "41-0000 Sales and Related Occupations", "43-0000 Office and Administrative Support Occupations", "47-0000 Construction and Extraction Occupations", "49-0000 Installation, Maintenance, and Repair Occupations", "53-0000 Transportation and Material Moving Occupations"]

0.33 (HIL — ~33% of characteristic roles agent-automatable)

Capital predominantly maintenance and bolt-on terminal acquisition; limited reallocation toward future-state infrastructure; legacy asset-heavy model persists

1572032

SRLP