-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 JPMTj4x2ka7l0Ybf8jwMmXlF5Lc7j9Gmx6YPeciq5lxBqDArHNIRTq5MD4xD63IX
 LtbGJpl648KfwGp320WQGw==

<SEC-DOCUMENT>0001157523-08-001038.txt : 20080207
<SEC-HEADER>0001157523-08-001038.hdr.sgml : 20080207
<ACCEPTANCE-DATETIME>20080207084535
ACCESSION NUMBER:		0001157523-08-001038
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080207
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080207
DATE AS OF CHANGE:		20080207

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STAR GAS PARTNERS LP
		CENTRAL INDEX KEY:			0001002590
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-RETAIL STORES, NEC [5990]
		IRS NUMBER:				061437793
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14129
		FILM NUMBER:		08583194

	BUSINESS ADDRESS:	
		STREET 1:		2187 ATLANTIC ST
		CITY:			STAMFORD
		STATE:			CT
		ZIP:			06902
		BUSINESS PHONE:		2033287300

	MAIL ADDRESS:	
		STREET 1:		2187 ATLANTIC STREET
		CITY:			STAMFORD
		STATE:			CT
		ZIP:			06902
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a5604455.htm
<DESCRIPTION>STAR GAS PARTNERS, L.P. 8-K
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2007 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 10pt; font-family: Times New Roman">
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>UNITED
      STATES</b></font><b><font style="font-family: Times New Roman; font-size: 12pt"><br style="font-size: 12pt; font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 12pt">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><b><font style="font-family: Times New Roman; font-size: 12pt">Washington,
      D.C. 20549</font></b><br><br><b><font style="font-family: Times New Roman; font-size: 12pt">FORM
      8-K</font></b><br><br><b><font style="font-family: Times New Roman; font-size: 12pt">CURRENT
      REPORT</font></b><br><br><b><font style="font-family: Times New Roman; font-size: 12pt">
      Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934</font></b><br><br><font style="font-family: Times New Roman; font-size: 10pt">Date
      of Report (Date of earliest event reported) February 7, 2008</font><br><br><b><font style="font-size: 12pt">STAR
      GAS PARTNERS, L.P.</font> </b><br><b><font style="font-family: Times New Roman; font-size: 10pt">(Exact
      name of registrant as specified in its charter)</font></b><br><br>
    </p>
    <table style="font-size: 10pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 33%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Delaware</b>
          </p>
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: center; width: 34%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>001-14129</b>
          </p>
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: center; width: 33%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>06-1437793</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 33%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(State or other jurisdiction</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>of incorporation)</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 34%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(Commission</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>File Number)</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 33%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(IRS Employer</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Identification No.)</b>
          </p>
        </td>
      </tr>
    </table>
    <table style="font-size: 10pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 50%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2187 Atlantic Street, Stamford, CT</b>
          </p>
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: center; width: 50%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>06902</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 50%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b><font style="font-family: Times New Roman; font-size: 10pt">(Address
            of principal executive offices)</font></b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 50%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b><font style="font-family: Times New Roman; font-size: 10pt">(Zip
            Code)</font></b>
          </p>
        </td>
      </tr>
    </table>
    <p style="text-align: center">
      <br>
      Registrant&#8217;s telephone number, including area code (203)&#160;328-7310<br><br><b>Not
      Applicable</b><br><b><font style="font-family: Times New Roman; font-size: 10pt">(Former
      name or former address, if changed since last report)</font></b>
    </p>
    <p>

    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="white-space: nowrap">
      ITEM 2.02.&#160;&#160;&#160;RESULTS OF OPERATIONS AND FINANCIAL CONDITION
    </p>
    <p>
      On February 7, 2008,&#160;Star Gas Partners, L.P., a Delaware&#160;partnership
      (the &quot;Partnership&quot;), issued a press release announcing its financial
      results for its fiscal first quarter ending December 31, 2007.&#160; A copy
      of the&#160;press release&#160;is furnished&#160;within this report as Exhibit 99.1.<br><br>The
      information in this report is being furnished, and is not deemed as
      &quot;filed&quot; 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.
    </p>
    <p>

    </p>
    <p style="white-space: nowrap">
      ITEM 7.01.&#160;&#160;REGULATION FD DISCLOSURE
    </p>
    <p>

    </p>
    <p>
      ITEM 9.01.&#160; FINANCIAL STATEMENTS AND EXHIBITS
    </p>
    <p>
      Exhibit 99.1&#160; A copy of the Star Gas Partners, L.P. Press&#160;Release&#160;dated
      February 7, 2008.
    </p>
    <p>

    </p>
    <div style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt">SIGNATURES</font>
    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">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.</font>
    </p>
    <table style="font-size: 10pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 50%">
          &#160;
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            STAR GAS PARTNERS, L.P.
          </p>
        </td>
        <td style="width: 13%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            By: Kestrel Heat, LLC (General Partner)
          </p>
        </td>
        <td style="width: 13%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td colspan="3">

        </td>
        <td style="width: 13%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td colspan="3">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 13%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            By:
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left; width: 29%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Richard F. Ambury
          </p>
        </td>
        <td style="width: 13%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Name:
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 29%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Richard F. Ambury
          </p>
        </td>
        <td style="width: 13%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Title:
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 29%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Financial Officer
          </p>
        </td>
        <td style="width: 13%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td colspan="2">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 29%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Principal Financial Officer
          </p>
        </td>
        <td style="width: 13%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 29%">
          <p style="margin-top: 0px; margin-bottom: 0px">
            February 7, 2008
          </p>
        </td>
        <td style="width: 13%">

        </td>
      </tr>
    </table>
    <p>

    </p>
  </body>
</html>
<!--<!DOCTYPE html
     PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
     "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">-->
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5604455ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2007 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Star Gas
      Partners, L.P. Reports Fiscal 2008 First Quarter Results</b></font>
    </p>
    <p>
      STAMFORD, Conn.--(BUSINESS WIRE)--Star Gas Partners, L.P. (the
      &#8220;Partnership&#8221; or &#8220;Star&#8221;) (NYSE: SGU), a home energy distributor and
      services provider specializing in heating oil, today announced financial
      results for its fiscal 2008 first quarter, the three-month period ended
      December 31, 2007.
    </p>
    <p>
      For the fiscal 2008 first quarter, Star reported a 37.5 percent increase
      in total revenues to $453.9 million, compared to total revenues of
      $330.2 million in the year ago period, due to an increase in home
      heating oil volume of 14.0 percent and higher selling prices. Selling
      prices rose in response to a 37.6 percent increase in wholesale product
      cost.
    </p>
    <p>
      Home heating oil volume for the fiscal 2008 first quarter increased 13.9
      million gallons to 113.2 million gallons due to colder temperatures, as
      the volume lost through net customer attrition was offset by the
      acquisitions completed in fiscal 2007. Temperatures in Star&#8217;s geographic
      areas of operations for the fiscal 2008 first quarter were 15.8 percent
      colder than the fiscal 2007 first quarter and 6.0 percent warmer than
      normal, as reported by the National Oceanic Atmospheric Administration.
      For the fiscal 2008 first quarter, Star lost approximately 1,400 more
      accounts than in the fiscal 2007 first quarter.
    </p>
    <p>
      Home heating oil per gallon margins for the fiscal 2008 first quarter
      declined by 2.4 cents per gallon, versus the corresponding fiscal 2007
      period, when measured before the impact of change in the fair value of
      derivative instruments. The decline in home heating oil margins was
      largely due to customers&#8217; reluctance to accept a 52 cent per gallon
      spike in the price of home heating oil, when compared to the price in
      the prior year quarter.
    </p>
    <p>
      Total operating expenses (delivery, branch, general and administrative
      expenses) increased by $11.6 million, or 22.7 percent, to $62.8 million
      for the fiscal 2008 first quarter, as compared to $51.2 million for the
      prior year&#8217;s quarter. During the three months ended December 31, 2006,
      the Partnership recorded a $7.2 million credit under its weather
      insurance contract, which reduced insurance expense, a component of
      operating expenses. The balance of the change, $4.4 million or 8.6
      percent, is largely due to the 14.0 percent increase in home heating oil
      volume.
    </p>
    <p>
      For the fiscal 2008 first quarter, net income was $25.1 million, a $20.4
      million improvement versus the fiscal 2007 first quarter, as a favorable
      change in the fair value of derivative instruments of $24.1 million, an
      increase in product gross profit (product sales less cost of product) of
      $7.6 million, and an increase in service profitability of $1.0 million,
      was reduced by lower weather insurance benefits of $7.2 million, the
      volume-related increase in operating costs of $4.3 million and an
      increase in income tax expense of $0.7 million.
    </p>
    <p>
      For the fiscal 2008 first quarter, Adjusted EBITDA decreased $3.0
      million to $19.3 million, as compared to $22.3 million for the three
      months ended December 31, 2006, primarily due to the impact of the 2.4
      cent decline in home heating oil margins ($2.7 million), as the
      additional volume sold during the fiscal 2008 first quarter due to
      colder temperatures and acquisitions offset the $7.2 million weather
      insurance benefit recorded in the fiscal 2007 first quarter.
    </p>
    <p>
      Management believes the presentation of Adjusted EBITDA is relevant and
      useful because it allows investors to view the Partnership&#8217;s performance
      in a manner similar to the method management uses, adjusted for non-cash
      items (such as changes in the fair value of derivative instruments and
      losses in redemption of debt) and the use of Adjusted EBITDA makes it
      easier to compare the Partnership&#8217;s results with other companies that
      have different financing and capital structures. In addition, certain of
      Star&#8217;s financial covenants are calculated using Adjusted EBITDA.
    </p>
    <p>
      Star Gas Partners Chief Executive Officer, Dan Donovan, stated, &#8220;Given
      the warmer than normal temperatures during the quarter, especially in
      October, and record price levels exacerbated by the extreme volatility
      in the heating oil market, we are pleased with the performance of our
      operations. For the first time in four years, we were completely staffed
      at our local operations and our employees performed well in servicing
      our customer base.&#8221;
    </p>
    <p>
      <u><b>REMINDER</b></u>: Star Gas management will host a conference call
      and webcast today at 11:00 a.m. (ET). Conference call dial-in is
      800/603-3143 or 706/634-8769 (international callers). A webcast is also
      available at http://www.star-gas.com/MediaList.cfm and at www.vcall.com.
    </p>
    <p>
      Star Gas Partners, L.P., is the nation's largest retail distributor of
      home heating oil. Additional information is available by obtaining the
      Partnership&#8217;s SEC filings and by visiting Star&#8217;s website at
      www.star-gas.com.
    </p>
    <p>
      <b>Forward Looking Information</b>
    </p>
    <p>
      This news release includes &#8220;forward-looking statements&#8221; which represent
      our expectations or beliefs concerning future events that involve risks
      and uncertainties, including those associated with the effect of weather
      conditions on our financial performance, the price and supply of home
      heating oil, the consumption patterns of our customers, our ability to
      obtain satisfactory gross profit margins, our ability to obtain new
      accounts and retain existing accounts, our ability to effect strategic
      acquisitions, the impact of litigation, the continuing residual impact
      of the business process redesign project and our ability to address
      issues related to that project, our ability to contract for our current
      and future supply needs, natural gas conversions, future union relations
      and outcome of current and future union negotiations, the impact of
      future environmental, health, and safety regulations, the ability to
      attract and retain employees, customer credit worthiness, counter party
      credit worthiness, and marketing plans. All statements other than
      statements of historical facts included in this news release are
      forward-looking statements. Although we believe that the expectations
      reflected in such forward-looking statements are reasonable, we can give
      no assurance that such expectations will prove to have been correct and
      actual results may differ materially from those projected as a result of
      certain risks and uncertainties. These risks and uncertainties include,
      but are not limited to, those set forth under the heading &#8220;Risk Factors&#8221;
      and &#8220;Business Initiatives and Strategy&#8221; in the Partnership&#8217;s Annual
      Report on Form 10-K for the fiscal year ended September&#160;30, 2007.
      Without limiting the foregoing, the words &#8220;believe,&#8221; &#8220;anticipate,&#8221;
      &#8220;plan,&#8221; &#8220;expect,&#8221; &#8220;seek,&#8221; &#8220;estimate&#8221; and similar expressions are
      intended to identify forward-looking statements. Important factors that
      could cause actual results to differ materially from our expectations
      (&#8220;Cautionary Statements&#8221;) are disclosed in this news release and in the
      Partnership&#8217;s Annual Report on Form 10-K and Quarterly Report on Form
      10-Q. All subsequent written and oral forward-looking statements
      attributable to the Partnership or persons acting on its behalf are
      expressly qualified in their entirety by the Cautionary Statements.
      Unless otherwise required by law, we undertake no obligation to update
      or revise any forward-looking statements, whether as a result of new
      information, future events or otherwise after the date of this news
      release.
    </p>
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="10">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>STAR GAS PARTNERS, L.P. AND SUBSIDIARIES</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="10">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>CONDENSED CONSOLIDATED BALANCE SHEETS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="3">
          <b>December 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="3">
          <b>September 30,</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b><u>(in thousands)</u></b>
          </p>
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: center" colspan="3">
          <b>2007</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: center" colspan="3">
          <b>2007</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="3">
          <b>(unaudited)</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <b>ASSETS</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <b>Current assets</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          5,950
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          112,886
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Receivables, net of allowance of $8,380 and $7,645, respectively
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          185,780
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          78,923
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          103,133
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          85,968
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Fair asset value of derivative instruments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          28,978
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          14,510
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Prepaid expenses and other current assets
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          37,656
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          28,216
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 25.0px; padding-bottom: 2.0px; text-align: left">
          Total current assets
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          361,497
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          320,503
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          40,564
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          41,721
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Long-term portion of accounts receivables
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          1,116
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          1,362
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Goodwill
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          181,496
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          181,496
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Intangibles, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          43,488
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          48,468
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" colspan="2">
          Deferred charges and other assets, net
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          8,020
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          8,554
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          Total assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          636,181
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          602,104
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <b>LIABILITIES AND PARTNERS&#8217; CAPITAL</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <b>Current liabilities</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Accounts payable
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          23,500
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          18,797
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Working capital facility borrowings
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          19,654
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Fair liability value of derivative instruments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          837
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          5,312
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Accrued expenses and other current liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          69,975
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          65,444
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Unearned service contract revenue
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          44,867
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          37,219
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Customer credit balances
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          48,163
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          71,109
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 25.0px; padding-bottom: 2.0px; text-align: left">
          Total current liabilities
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          206,996
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          197,881
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Long-term debt
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          173,895
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          173,941
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Other long-term liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          13,617
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          13,951
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <b>Partners&#8217; capital</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Common unitholders
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          257,885
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          232,895
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          General partner
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (22
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (129
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Accumulated other comprehensive loss
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          (16,190
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          (16,435
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 25.0px; padding-bottom: 2.0px; text-align: left">
          Total partners&#8217; capital
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          241,673
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          216,331
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          Total liabilities and partners&#8217; capital
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          636,181
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          602,104
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    <table style="font-size: 8pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="10">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>STAR GAS PARTNERS, L.P. AND SUBSIDIARIES</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="10">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="10">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" colspan="7">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Three Months Ended </b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>December 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b><u>(in thousands, except per unit data - unaudited)</u></b>
          </p>
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: center" colspan="3">
          <b>2007</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: center" colspan="3">
          <b>2006</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Sales:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Product
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          401,040
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          280,402
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Installations and service
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          52,904
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          49,842
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Total sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          453,944
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          330,244
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Cost and expenses:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Cost of product
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          319,258
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          206,236
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Cost of installations and service
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          52,574
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          50,474
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          (Increase) decrease in the fair value of derivative instruments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (17,753
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          6,315
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Delivery and branch expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          57,952
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          46,494
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Depreciation and amortization expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          7,008
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          7,372
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          General and administrative expenses
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          4,846
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          4,688
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Operating income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          30,059
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          8,665
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (5,059
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (5,108
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Interest income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          1,452
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          1,794
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" colspan="2">
          Amortization of debt issuance costs
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          (570
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          (570
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Income before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          25,882
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          4,781
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" colspan="2">
          Income tax expense
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          785
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          65
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          Net income
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          25,097
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          4,716
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 25.0px; padding-bottom: 2.0px; text-align: left">
          General Partner&#8217;s interest in net income
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          107
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          20
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left" colspan="2">
          Limited Partners&#8217; interest in net income
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          24,990
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          4,696
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="3">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left" colspan="2">
          Basic and Diluted income per Limited Partner Unit
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          0.33
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          0.06
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          Weighted average number of Limited Partner units outstanding:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          Basic and Diluted
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          75,774
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          75,774
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    <p>
      <b><u>SUPPLEMENTAL INFORMATION</u></b>
    </p>
    <p>
      Earnings (loss) before interest, taxes, depreciation and amortization
      from continuing operations (EBITDA).
    </p>
    <p>
      The Partnership uses EBITDA and adjusted EBITDA as measures of liquidity
      and they are being included because the Partnership believes that they
      provide investors and industry analysts with additional information to
      evaluate the Partnership's ability to pay quarterly distributions.
      EBITDA and adjusted EBITDA are not recognized terms under generally
      accepted accounting principles (&quot;GAAP&quot;) and should not be considered as
      an alternative to net income/(loss) or net cash provided by/(used in)
      operating activities determined in accordance with GAAP. Because EBITDA
      and adjusted EBITDA as determined by the Partnership excludes some, but
      not all of the items that affect net income/(loss), it may not be
      comparable to EBITDA and adjusted EBITDA or similarly titled measures
      used by other companies. The following tables set forth (i) the
      calculation of EBITDA and adjusted EBITDA and (ii) a reconciliation of
      EBITDA and adjusted EBITDA, as so calculated, to cash provided by/(used
      in) operating activities.
    </p>
    <table style="font-size: 8pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="9">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>STAR GAS PARTNERS, L.P. AND SUBSIDIARIES</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="9">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>RECONCILIATION OF EBITDA AND ADJUSTED EBITDA</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="9">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="7">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Three Months Ended</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>December 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b><u>(in thousands)</u></b>
          </p>
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: center" colspan="3">
          <b>2007</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: center" colspan="3">
          <b>2006</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Income from continuing operations
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          25,097
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          4,716
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Plus:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Income tax expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          785
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          65
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Amortization of debt issuance cost
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          570
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          570
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Interest expense, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          3,607
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          3,314
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          7,008
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          7,372
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          EBITDA from continuing operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          37,067
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          16,037
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          (Increase) / decrease in the fair value of derivative instruments
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          (17,753
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          6,315
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Adjusted EBITDA (a)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          19,314
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          22,352
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b><u>Add / (subtract)</u></b>
          </p>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Income tax expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (785
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (65
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Interest expense, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (3,607
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (3,314
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Provision for losses on accounts receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          1,710
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          1,952
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Increase in weather insurance contract
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right">
          (7,200
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Change in operating assets and liabilities
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          (142,324
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: right">
          (34,610
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: solid black 1.0pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          Net cash provided by (used in) operating activities
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          (125,692
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          (20,885
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          Home heating oil gallons sold
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          113,154
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom: double black 2.25pt; text-align: right">
          99,281
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    <p>
      (a) Adjusted EBITDA is calculated as earnings from continuing operations
      before net interest expense, income taxes, depreciation and
      amortization, (increase) decrease in the fair value of derivatives, loss
      on debt redemption, goodwill impairment, and other non-cash and
      non-operating charges. Management believes the presentation of this
      measure is relevant and useful because it allows investors to view the
      Partnership&#8217;s performance in a manner similar to the method management
      uses, and makes it easier to compare its results with other companies
      that have different financing and capital structures. In addition, this
      measure is consistent with the manner in which the Partnership&#8217;s debt
      covenants in its material debt agreements are calculated and investors
      measure its overall performance and liquidity, including its ability to
      pay quarterly equity distributions, service its long-term debt and other
      fixed obligations and fund its capital expenditures and working capital
      requirements. This method of calculating Adjusted EBITDA may not be
      consistent with that of other companies and should be viewed in
      conjunction with measurements that are computed in accordance with GAAP.
    </p>
    <p>
      CONTACT:<br>Star Gas Partners<br>Investor Relations<br>203-328-7310<br>or<br>Jaffoni
      &amp; Collins Incorporated<br>Robert Rinderman / Steven Hecht,
      212-835-8500<br>SGU@jcir.com
    </p>
    <p>

    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
