CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In our natural gas segment we purchase natural gas from natural gas producers and trading companies and sell and distribute natural gas to approximately 15,000 commercial and industrial customer locations across 13 states in the Northeast and Mid-Atlantic United States and Canada.

Our other operations segment primarily includes the marketing and distribution of coal conducted in our Portland, Maine terminal, and commercial trucking activity conducted by our Canadian subsidiary.

How Management Evaluates Our Results of Operations

Our management uses a variety of financial and operational measurements to analyze our performance. These measurements include: (1) adjusted EBITDA and adjusted gross margin, (2) operating expenses, (3) selling, general and administrative (or SG&A) expenses and (4) heating degree days.

EBITDA, adjusted EBITDA and adjusted gross margin used in this Quarterly Report are non-GAAP financial measures.

EBITDA and adjusted EBITDA are used as supplemental financial measures by external users of our financial statements, such as investors, trade suppliers, research analysts and commercial banks to assess:

•The financial performance of our assets, operations and return on capital without regard to financing methods, capital structure or historical cost basis;

•The ability of our assets to generate sufficient revenue, that when rendered to cash, will be available to pay interest on our indebtedness and make distributions to our equity holders;

•Repeatable operating performance that is not distorted by non-recurring items or market volatility; and

•The viability of acquisitions and capital expenditure projects.

We recognize that the usefulness of EBITDA and adjusted EBITDA as evaluative tools may have certain limitations, including:

•EBITDA and adjusted EBITDA do not include depreciation and amortization expense. Because capital assets, depreciation and amortization expense is a necessary element of our costs and ability to generate profits, any measure that excludes depreciation and amortization expense may have material limitations;

•EBITDA and adjusted EBITDA do not reflect capital expenditures or future requirements for capital expenditures or contractual commitments;

•EBITDA and adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and

•EBITDA and adjusted EBITDA do not allow us to analyze the effect of certain recurring and non-recurring items that materially affect our net income or loss.

Adjusted gross margin is used as a supplemental financial measure by management to describe our operations and economic performance to investors, trade suppliers, research analysts and commercial banks to assess:

•The economic results of our operations;

•The market value of our inventory and natural gas transportation contracts for financial reporting to our lenders, as well as for borrowing base purposes; and

•Repeatable operating performance that is not distorted by non-recurring items or market volatility.

Adjusted gross margin is not prepared in accordance with GAAP and should not be considered as an alternative to net income or operating income or any other measure of financial performance presented in accordance with GAAP.

Selling, General and Administrative Expenses

Trends and Factors that Impact our Business

Cost of products sold (exclusive of depreciation and amortization)

Reconciliation to Adjusted Gross Margin, EBITDA and Adjusted EBITDA

(in thousands) Reconciliation of Operating Income to Adjusted Gross Margin: Operating income

Operating costs and expenses not allocated to operating segments: Operating expenses

Change in unrealized value on natural gas transportation contracts (2)

Change in unrealized value on natural gas transportation contracts (2)

Gain on sale of fixed assets not in the ordinary course of business including gain on insurance recoveries

Selling, General and Administrative Expenses. SG&A expenses increased $3.5 million, or 14%, compared to the same period last year largely driven by an increase of $1.6 million in legal expenses, $0.7 million in sales commissions, $0.5 million in incentive compensation expense, $0.2 million in insurance related costs, and $0.2 million in employee related costs.

Depreciation and Amortization. Depreciation and amortization was approximately flat as increased depreciation expense was offset by decreased amortization expense.

As further described in Note 14 to the condensed consolidated financial statements, subsequent to the three months ended March 31, 2022, the Partnership amended the Credit Agreement to modify certain terms of the credit facility outlined below.

At March 31, 2022, the revolving credit facilities under the Credit Agreement contained, among other items, the following:

•An uncommitted U.S. dollar revolving working capital facility of up to $200.0 million, subject to borrowing base limits and the sole discretion of the lenders, to be used for working capital loans and letters of credit;

•A multicurrency revolving working capital facility of up to $85.0 million, subject to borrowing base limits, to be used for working capital loans and letters of credit;

•A revolving acquisition facility of up to $450.0 million, subject to covenants, to be used for loans and letters of credit to fund capital expenditures and acquisitions and other general corporate purposes; and

At March 31, 2022, for loans denominated in Canadian dollars, the alternate rate is the Prime Rate which is the higher of (a) the Canadian Prime Rate as in effect from time to time and (b) the one-month Eurocurrency Rate for U.S. dollars as in effect from time to time plus 1.00%.

We have no off-balance sheet arrangements.

The following table summarizes expansion and maintenance capital expenditures for the periods indicated:

Critical Accounting Policies and Estimates

For information on recent accounting pronouncements impacting our business, see "Recent Accounting Pronouncements" included under Note 1 - Description of Business and Summary of Significant Accounting Policies to our Condensed Consolidated Financial Statements.

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