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Risks
1. Commodity Price Fluctuations: Suburban Propane Partners is subject to risks associated with fluctuating commodity prices for the oil and natural gas that is used to make propane. If these prices increase, it could increase the cost of propane and reduce the company’s profits.
2. Competition: Suburban Propane Partners faces stiff competition from large national and regional suppliers and new businesses. This could lead to increased pricing pressure and possibly lower profits.
3. Weather Risk: Suburban Propane Partners is exposed to risks related to the weather. If there is an unusually cold winter, the demand for propane may increase, resulting in higher prices and higher profits. On the other hand, if there is an unusually warm winter, demand could decrease, resulting in lower prices and lower profits.
4. Regulatory Risk: Suburban Propane Partners must comply with the safety regulations of both the federal and state governments. If the company fails to meet these regulations, it could be subject to fines or other repercussions from the regulatory bodies.