LP Gas - May 2016 PDF
LP Gas - May 2016 PDF
LP Gas - May 2016 PDF
com
MAY 2016
Heres
BLUE
Propanes back in the national
spotlight, with plans now to
improve public perceptions
VOLUME 76 | NUMBER 5
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VO L U M E 76
NUMBER 5
MAY 2016
Features
28 |
PROPANE EXPO
RECAP | Nashville lives
up to the hype while
drawing a crowd.
30 |
A BLACK-TIE AFFAIR
he LP Gas Hall of Fame
welcomes four new
members as part of its ith
class of inductees, with a
celebration in Nashville.
37 |
DRIVING TOWARD
A DEAL
Several propane industry
representatives share best
practices in acquisitions at
a Propane Expo session.
46 |
DOG DAYS
OF SUMMER
New residential-based
marketing campaign
designed to endear the
public to propane.
28
Departments
6 | OPENING DELIVERY | Some
action items on LP Gas Hall of
Fame, Growth Summit
30
Manage
fueling with a
simple swipe
of a card
The PRO-Vend 2000
offers a superior system
for tracking and reporting
your leets propane fuel
usage.
72
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4 | LPGas May 2016
www.LPGasmagazine.com
Editorial
Editor in Chief:
Brian Richesson
216-706-3748
Fax: 216-706-3711
brichesson@northcoastmedia.net
Senior Editor:
Kevin Yanik
216-706-3724
Fax: 216-706-3711
kyanik@northcoastmedia.net
Associate Editor:
Megan Smalley
216-363-7930
Fax: 216-706-3711
msmalley@northcoastmedia.net
Digital Media Content Producer:
Allison Barwacz
216-706-3796
abarwacz@northcoastmedia.net
Art Director:
Kim Traum
ktraum@northcoastmedia.net
Production
Production Services Manager:
Chris Anderson
216-978-5341
canderson@northcoastmedia.net
Account Manager:
Ryan Gerard
216-363-7932
Fax: 216-706-3711
rgerard@northcoastmedia.net
Classified Representative:
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216-706-3767
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kvelasquez@northcoastmedia.net
Senior Audience Development
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Marketing Manager:
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216-363-7932
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Marketing & Sales Manager,
Buyers Guide:
Chloe Scoular
216-363-7929
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Digital Operations Manager:
Bethany Chambers
216-706-3771
bchambers@northcoastmedia.net
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jmalcmacher@northcoastmedia.net
Subscriptions/Back Issues/
Customer Service:
847-763-4942
Fax: 847-763-9694
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Publisher:
Brian Kanaba
216-706-3745
Fax: 216-706-3711
bkanaba@northcoastmedia.net
Jaime Alberti
Sales & Marketing,
Hilco Transport Inc.,
Wilmington, NC
Dale Delay
President,
Cost Management
Solutions,
Livingston, TX
Patrick Hyland
Director of Industry
Programs, Propane
Education & Research
Council, Cleveland, OH
Tom Jaenicke VP of
propane marketing
services, Warm Thoughts
Communications,
Charlevoix, MI
Proits went up when we started locking our tank Now were putting locks on all
our new tanks Brian Wanner, Silvertip Propane
The Fill Valve Lock has paid for itself with the lock, there are no discussions, no
arguments, just bills settled before delivery. Mike Green, Greens Propane
Greg Noll
Executive Vice
President,
PMAK
Topeka, KS
Larry Osgood
President,
Consulting
Solutions LLC,
Monument, CO
Jim Renaldo
Director, Sales &
Marketing, Renaldo
Sales & Service Inc.,
North Collins, NY
Mike Walters
Vice President, Safety
& Training, Superior
Energy Systems,
Columbia Station, OH
LP Gas does not verify any claims or other information appearing in any of the advertisements contained
in the publication, and cannot take any responsibility for any losses or other damages incurred by
readers in reliance on such content. LP Gas welcomes unsolicited articles, manuscripts, photographs,
illustrations and other materials but cannot be held responsible for their safekeeping or return.
www.LPGasmagazine.com
951-277-5180 800-422-2866
Fax: 951-277-5170
9168 Stellar Court, Corona, CA 92883
www.laigroup.com
sales@laigroup.com
brichesson@northcoastmedia.net
www.LPGasmagazine.com
PhotoDrop
Chelsea Summers,
5
6
Daryl Ingalsbe of
Independent Technologies (WESROC) explains
the National
Propane Gas Associations
scholarship fund, benefiting
children of member
company employees, on
the Propane Expo trade
show floor. They hold signs
showing scholarship winners
Kolbe Sheetz and Hannah
Myers.
www.LPGasmagazine.com
Go Out
on a
High Note
If you think its time to transition ownership, consider leaving on
a high note with Energy Distribution Partners. Because we take
an owners approach to the propane industry you can rest
assured that
Your business legacy will be preserved
Your customers will be well cared for
Your employees will be treated with fairness and respect
Your transaction will be structured to create a win-win
outcome
If you have a high-quality propane operation, well work with you
to structure a transaction that is music to your ears. Call Energy
Distribution Partners today for a conidential conversation.
EDPLP.NET
[NEWS
B R I E F S]
[ P R O PA N E M A S T E R L I M I T E D PA R T N E R S H I P CO M PA R I S O N ]
Fiscal Recent
Year Quarter Price
Current
Current Est. Tax
Company
End
End (4/15/16) Distribution Yield Deferral
AmeriGas (APU)
Sept. Dec. $42.67
$3.68
8.6% 75%
Ferrellgas (FGP)
July
Jan.
18.13
2.05
11.3
90
NGL Energy Partners (NGL) March Dec.
8.44
2.56
30.3
80
Suburban Propane (SPH)
Sept. Dec.
30.42
3.55
11.7
80
Average:
15.5%
Debt/
Capital
66%
97
64
59
72%
Total Units
Outstanding
(millions)
92.9
98.0
107.1
60.7
[ L A S T T W E LV E M O N T H S ]
Gross
Gross Gross Proit Gross Proit Retail Gallons Sold
Company
Revenue Proit
Margin
(Per employee)
(millions)
AmeriGas
$2,374 $1,423 60%
$167,418
1,139
Ferrellgas
1,267
646
51
178,208
569
NGL Energy Partners 1,093
236
22
75,991
164
Suburban Propane
1,054
687
65
188,338
456
Average:
49%
$152,489
Dollar igures in millions, except for per-unit data.
Revenue and gross proit data are based on total propane gallons sold.
Employee data is based on most recently completed iscal year.
NGLs revenue and gross proit data include the sale of distillates and
other natural gas liquids.
Percent
Change
-8%
-8
0
-10
-7%
Gross Proit
(Per gallon)
$1.19
0.80
0.16
1.51
$0.92
www.LPGasmagazine.com
MARCH
[NEWS
[ H E AT I N G D EG R E E - DAYS BY S TAT E ]
State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
D.C.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
March
218
1073
135
308
275
824
667
481
353
32
235
0
726
623
563
720
467
420
120
1011
473
729
784
875
195
480
818
625
329
871
581
Deviation
Deviation
From
Last 12
From
Norm
Months Norm
-128
2058
-796
-234
9400 -1839
-140
1879
-292
-124
2767
-757
-83
2168
-479
-86
6535
-906
-179
5060 -1041
-189
3763 -1003
-210
3180
-898
-46
410
-288
-123
2249
-649
0
0
0
-74
6120
-818
-207
5271
-1116
-208
4857 -1068
-180
6106
-989
-174
4227
-918
-176
3688
-952
-82
1294
-499
-60
7197
-855
-196
3935
-940
-162
5350 -1091
-167
5759 -1226
-246
7268
-1531
-111
1895
-681
-181
4288
-957
-155
6994
-1351
-202
5578
-978
-130
3301
-519
-147
6418 -1208
-182
4452 -1022
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyomina
United States
481
658
305
891
580
331
624
603
682
223
768
379
138
665
945
409
590
504
825
896
450
-119
-209
-157
-305
-220
-132
19
-206
-158
-131
-224
-126
-83
-129
-152
-199
-50
-194
-195
-98
-143
4276
4837
2889
7799
4823
3063
4835
4927
5017
2224
6604
3345
1492
5918
7125
3621
4941
4379
6655
7349
3726
PERCENT
RETURN
NOT
MEANINGFUL
-582
-1312
-655
-1694
-1180
-706
-336
-1013
-903
-586
-1282
-676
-515
-725
-1027
-882
-595
-944
-1175
-991
-822
B R I E F S]
[NEWS
B R I E F S]
Continued from page 11
heaters for the nonprofits current
homebuilding projects in Cypress, Calif.
Navien donated six NPE-210S units to
Habitat for Humanity of Orange County
townhomes. The company adds 19 of
its employees volunteered with the
nonprofit to help with the cleanup of
some of the Cypress properties and to
provide lunch for all volunteers.
According to Navien, the townhomes
will soon house veterans and senior
citizens.
Chuck Kinnie
President
[NEWS
B R I E F S]
Continued from page 12
America. The company adds developing Alberta-based, value-added
infrastructure will increase the areas
propane demand, benefiting Albertas
oil and gas producers, as well as the
province by increasing regional economic activity.
If the project moves forward
beyond the study, Pembina says the
facility could consume about 35,000
barrels per day (bpd) of propane and
produce up to 800,000 metric tons
per year of polypropylene. The polypropylene would be transported in a
pellet form to markets across North
America and internationally.
With access to the largest supply
of propane in the Western Canadian
Sedimentary Basin, Pembina says it
is capable of facilitating this projects
development. Once the construction
of Pembinas remaining third fractionator is complete, the company says it
ONE EASY
TANK MOVER
www.LPGasmagazine.com
FOCUSED
ON PROPANE.
MORE THAN EVER.
Ferrellgas has made headlines recently by completing several non-propane
acquisitions. Its part of a larger strategy we have in place to diversify our
business. But weve been a propane company for nearly 80 years now, and
were more focused than ever on growing our core business. Thats why, if
youre thinking about selling your business, we want you to give us a call.
Weve purchased more than 235 family-owned propane businesses through
the years. People turn to us because were fair, honest, and more than happy
to work at the sellers speed. Put another way, we treat people how wed
want to be treated if roles were reversed.
ERIC KRUGER
NANCY COOP
VP of Propane Acquisitions
913-661-1540
510-418-7839
EricKruger@ferrellgas.com
NancyCoop@ferrellgas.com
J.D. BAIN
Business Development Executive-East
352-250-5675
J.D.Bain@ferrellgas.com
[NEWS
B R I E F S]
Continued from page 14
olefins mixture is transported by
Williams recently extended Boreal
Pipeline to its expanded Redwater
Olefinic Fractionator. Most of the
propane is expected to feed Williams
planned propane dehydrogenation
facility near Edmonton for the production of polymer-grade propylene.
www.cavagnagroup.com
[ PEOPLE]
Michigan Propane Gas
Association
SAVE MONEY
Dielectric
Protection
SAVE TIME
ENSURE SAFETY
Dick Lowe, who served the association as president in 1963 and 1964,
died at the age of 90. Lowe founded
Lowes Gas in 1948 in Dimondale,
Mich., behind the support of 23
customers. Lowes business grew
over the years, lasting four generations. He sold the business to a
family member in 1965, and it was
renamed Lowe Bros. & Dad Inc.
Lowe switched industries in the
latter half of his career to operate a
construction company in Florida. He
retired from a senior management
position with a construction company in Naples, Fla.
RegO
Cavagna North America Inc.
50 Napoleon Court, Somerset NJ 08873
Phone 732-469-2100 - Fax 732 469 3344
Cavagna West
1393 Dodson Way-A Riverside, CA 92507
Phone 732-469-2100 - Fax 732 469 3344
Info@cavagna.com
The manufacturer of valves, regulators and fittings began the year under
new leadership. Lou Rosen joined
the team as president and CEO in the
second half of 2015. In the past, Rosen
Continued on page 18
www.LPGasmagazine.com
[ PEOPLE]
Continued from page 16
worked in a variety
of leadership positions in energy and
manufacturing
companies, both
domestically and
abroad. At Eaton
Corp., Rosen served
as senior vice presiRosen
dent and general
manager, working with facilities around
the world. Rosen has also held leadership roles with Halliburton and General
Electrics Industrial
Systems business.
BASE
Engineering
Mark Straka
was appointed
as the new vice
president for BASE
Engineering USA
Straka
Corp. He will be
responsible for the
companys U.S. sales
and operations,
and assist with its
global expansion.
In addition, the
company hired
Damon Boyer as
Boyer
senior sales executive of truck mobility solutions. He will
help to promote the ProControl 3 truck
automation platform to oil and gas
businesses.
SMALL INVESTMENT.
HUGE ROI.
GET YOUR RESIDENTIAL
OPPORTUNITY INSIGHTS TODAY.
Invest a few minutes and well give you insights into your local market
that can help boost your sales and marketing efforts. Register at
ResidentialMarketGrowth.com to download your own Residential
Opportunity Insights report; its full of data about your local
consumers and builders that you can act on right now to grow your
residential gallons. We even give you all the customizable marketing
materials youll need to get started immediately. A small investment
of time. A big return. Register at ResidentialMarketGrowth.com today.
YOUR HOMEOWNERS
DESERVE BETTER
HOT WATER.
BUILDING IN VALUE WITH
40-GALLON
MODELS PROVIDE
$150
SAME AMOUNT
OF HOT WATER
UP TO
UP TO
In annual energy costs compared with
electric or heating oil water heaters.
5% INCREASE
12 SQUARE FEET
20% SAVINGS
SAVINGS
In annual energy costs compared with
electric storage tank water heaters.
THE
CO2
SPACE
HEATING
WATER
HEATING
COOKTOPS
AND OVENS
CLOTHES
DRYING
FIREPLACES
STANDBY
POWER
50% FEWER
CO2 emissions compared with
electric water heaters.
For information:
Call 1-XXX-XXX-XXXX
Visit marketerwebsiteURL.com
Learn more about the new NAECA standards and which type of propane water heater
is right for your homes at PropaneWaterHeating.com.
Or visit PropaneWaterHeating.com
Include information about appliance
or construction rebates or incentives
available in your area.
| KEN ALBRECHT
LEARN MORE
Maximize Opportunity
In Residential
Drive Sales
With Autogas
Go Green With
Commercial Mowers
Residential Plus
Available to those who
have already participated
in an MTST session
FOCUS ON
SPONSORED BY
Retailer, landscaper
partner on project
The propane-fueled Ford F-750 chassis built as a bobtail was on display in the
Roush CleanTech booth at the Propane Expo in Nashville, Tenn.
[NEWS BRIEFS]
www.LPGasmagazine.com
Alabama Department of
[IN
T H E K N O W: P R O PA N E E X P O ]
Q
A
Mark your calendars: Nashville will play host to the Propane Expo again next year before the event returns to Atlanta for two years.
22 | LPGas May 2016
www.LPGasmagazine.com
Steve Abbate
Managing Director/Principal
860.592.0089
sabbate@cetane.net
Doug Woosnam
Managing Director
610.866.2885
dwoosnam@cetane.net
Joshua Wolf
Managing Director
713.494.4699
jwolf@cetane.net
[ E V E N T S]
ITS ARRIVED
dhawk@npga.org or 941-347-7596.
BLUELINE
QX BOBTAIL
Westmor-ind.com
(800) 992-8981
ITS SAFER!
Our lightweight composite LPG cylinders have the best safety record in the industry and will not
BLEVE. Trusted by over 10 million businesses and families worldwide. Proven to withstand harsh
environmental conditions. Higher burst pressure than steel cylinders. Approved for use in all 50
states and over 70 other countries. Contact us to learn how we can help you grow your business.
E-mail: better@vikingcylinders.com
vikingcylinders.com/safe
Viking Cylinders is a registered
trademark of Hexagon Ragasco AS.
75 T H A N N I V E R S A R Y
Advertising
[ S T R AT E G I E S ]
[ O U T- O F -T H E - B OX
ADV E R TISI N G]
www.LPGasmagazine.com
Thinking about
selling your business?
Youre in good company with us.
As the countrys leading provider of home heating oil, Star Gas Partners, L.P. understands and
respects everything that youve done to build your business. A decision to sell to us ensures that
your companys legacy, identity and reputation will be preserved and protected in the community.
We also understand the complexity of acquisitions and how critical it is for you to be able to work
through the transition process seamlessly, while still running your business.
Star Gas Partners, L.P. is actively searching for heating oil and propane companies to add to our local
family. If you are considering selling yours, call us today for a discreet and confidential consultation.
S O U T H E A S T E R N CO N V E N T I O N
Continued from page 28
| KEVIN YANIK
A view of the trade show floor from above at Nashvilles Music City Center.
www.LPGasmagazine.com
ISTOCK.COM/JACOBH
S O U T H E A S T E R N CO N V E N T I O N
L P G A S H A L L O F FA M E
A black-tie affair
Four new members
inducted, featured as
part of fifth class during
celebration in Nashville
www.LPGasmagazine.com
L P G A S H A L L O F FA M E
L P G A S H A L L O F FA M E
Continued from page 31
Loves work in Mississippi was noticed by the National
LP-Gas Association, which named him the State Director
of the Year in the mid-1980s. The award recognized Loves
achievement in supporting the national associations market
promotion program for member companies. He served on the
national associations board dating back to 1977, chaired its
executive committee and was elected president in 1990.
My dad died too young, too soon, but he lived his life well,
says Rob Love, president of Lampton-Love, who accepted the
hall of fame honor on behalf of his father. My dad and the
guys in the business back then were all real friends, and thats
something my generation doesnt see today.
Daryl McClendon
McClendon helped facilitate the establishment of the Propane Education & Research Council (PERC) arguably his
most significant contribution to the industry. He was one of
the charter councilors and served as PERCs second chairman from 1999 to 2001, helping to set up the organization
for success.
During McClendons chairmanship, the council launched
many firsts, according to PERC President and CEO Roy Willis. This included the first market research initiative, the propane branding effort that led
to the Propane Exceptional
Energy theme, the first consumer education advertising
program and the Partnership
with States program that expanded the reach and frequency of the councils advertising campaign to bring the
propane message to end users.
McClendon also played a
key role on the councils consumer education advisory
committee. In addition, he
2016 Hall of Famer Daryl
was heavily involved in the
McClendon left his mark at
a number of the industrys
National Propane Gas Astop companies, brands and
sociation (NPGA), serving as
organizations.
committee chairs and in the
officer roles. He was president
of the board for the 1995-96 term. He also directed a task
force that led to the creation of the Gas Check program.
Im joining a class of 28 people that Ive admired and the
class of 2016 that Im inducted in is one that Im proud to be
in, McClendon says.
L P G A S H A L L O F FA M E
Eight of the 28 members of the LP Gas Hall of Fame were present at the 2016 ceremony. From left
are Jim Bertelsmeyer, Bill Byrne, Daryl McClendon, Bob Nicholson, Dan Myers, Bob Myers, Glenn
Miller and Gene Bissell.
From left: This Suburban Propane group includes Tom and Sally
Ross and Sam and Pennie Hodges.
www.LPGasmagazine.com
L P G A S H A L L O F FA M E
Pat Hyland, former editor in chief of LP Gas (first at left), joins the magazines
current staff for a photo. Next to Hyland, from left, are Brian Kanaba, Kevin
Stoltman, Megan Smalley, Ryan Bockmuller, Brian Richesson and Kevin Yanik.
www.LPGasmagazine.com
L P G A S H A L L O F FA M E
201
7N
om
ina Now A
tion cce
s th ptin
rou g
gh S
ept
. 30
, 20
16
M E R G E R S A N D ACQ U I S I T I O N S
msmalley@northcoastmedia.net
Abbate
ISTOCK.COM/TOMAZL
www.LPGasmagazine.com
M E R G E R S A N D ACQ U I S I T I O N S
Continued from page 37
acquisition advisory company, Cetane
Associates, has started to assist buySteven Abbate: moderator, managing director of Cetane Associates
ers and sellers in the propane industry.
Joe Armentano: CEO of Paraco Gas Co.
The National Propane Gas Association
Daniel Dixon: group director of business development for AmeriGas
learned about Abbates sessions in the
David Montgomery: vice president of operations for Crystal Flash
heating oil business and asked him to
Tim Osterman: vice president, business development for NGL Energy Partners
present a similar panel for the propane
John Ryan: vice president of business development for Star Gas Partners
industry at the 2016 Southeastern Convention & International Propane Expo
in Nashville, Tenn.
through different stages of an acquisiFor the Propane Expo, Cetane Asso- tion, starting with the valuation process I think anyone can get
ciates created a panel of five representa- through closing the deal.
involved with acquisitions,
tives from AmeriGas, Crystal Flash,
but you have to figure out
NGL Energy Partners, Paraco Gas and The valuation process
Star Gas Partners to share best prac- The first step for any potential acquisi- strategically what you want to
tices on buying and selling propane tion requires a buyer to evaluate a seller
businesses.
and its assets. A few key value drivers for accomplish. Growing through
Id call it a powerhouse of a panel, a buyer to evaluate include the percentacquisitions is certainly harder
says Tom Jaenicke, vice president of age of company-owned tanks, supply
propane marketing services for Warm and distribution capabilities, customer than growing organically
Thoughts Communications, who intro- demographics and diversification of the
since you need to transition
duced the panelists in the session.
business.
Although the acquisitions topic
The biggest value driver tends to be a business to your own
might seem intimidating at
the percentage of companya glance, dozens of propane
owned tanks for any market, practices, but it can be done if
retailers showed up to the sesAbbate says. More tanks
you do it slowly.
sion, filling nearly two conferleads to higher value, but
David Montgomery,
ence rooms. Both prospective
theres other things to look
Crystal Flash
buyers and sellers listened to
for, as well.
the five panelists insights on
In some markets, Abbate
how to close a deal.
says, there are many retailers
Paraco Gas is a little more selective
I thought it went fantaswith diversified businesses, in purchasing diversified propane busiMontgomery
tic, says David Montgomery,
offering propane
nesses. Joe Armentano, CEO
vice president of operations at
along with other
of Paraco Gas, says the comCrystal Flash and one of the five pan- fuels and services. Retailers
pany only buys a propane reelists. All the information from other on his panel have different
tailer with multiple businesses
panelists was solid and I could agree approaches to valuing diversiif those other businesses boost
with their perspectives.
fied sellers.
the sale of propane.
Montgomery admits he was uneasy
John Ryan, vice president
Our No. 1 goal is to sell
about participating in the disof business develpropane, our No. 2 goal is to
cussion, unsure how the conopment for Star Gas
sell propane and our No. 3 goal
Armentano
versation would go. He lightPartners, comes
is to sell propane, Armentano
ened up to the session a few
from a diversified business says. We look at diversified businesses
minutes in, wanting to help
that offers alternative home to see how those services will help us sell
session attendees.
services. For his company, propane, be it HVAC or dual fuels.
I made peace with the fact
having a diversified business
When trying to put a total value on a
that this session served as a
is usually a good thing.
business, panelists suggested looking at
way to give prospective sellers
When we see a seller with a sellers average and normalized busiRyan
comfort on acquisitions, he
multiple profit centers, we ness volumes.
says. It helped them learn what buyers view it as positive, as long as that busiNo one should base valuation off a
are really looking for.
ness is within our core competencies, superstar year of gallon sales, says Tim
Continued on page 40
The session walked attendees he says.
www.LPGasmagazine.com
M E R G E R S A N D ACQ U I S I T I O N S
Continued from page 38
evaluate their potential buyOsterman, vice president of
ers during this process.
business development for
The seller needs to considNGL Energy Partners. The
er what the buyer plans to do
law of averages has to take
with them, he says. Consider
hold in valuations.
how that buyer will take care
Daniel Dixon, group diof your customers and what
Osterman
rector of business developthat buyers reputation is.
ment for AmeriGas, agrees.
He often looks at a sellers last
The waiting game
three to five years to get an
Making a deal to sell ones
average value, and he seldom
business involves many emolooks at a companys future
tions, Montgomery says, and
expected sales.
the due-diligence process
You can look at what
can be especially tough on
might happen to a company
the seller.
Dixon
if youre purchasing 10 years
A seller might have lived
down the road, but a lot of
in this business their whole
variables might affect that, he adds. life and now youre talking about takConsider the natural gas expansion up ing over their baby, he says. With the
in Michigan right now that was not due-diligence process, youre going to
even anticipated five years ago.
invade their personal space, and thats
As a buyer evaluates potential sell- kind of a big deal when you start quesers, Abbate adds that sellers should also tioning why they did certain things
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M E R G E R S A N D ACQ U I S I T I O N S
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M E R G E R S A N D ACQ U I S I T I O N S
Continued from page 42
2015-16 transactions
Heres a look at the movement LP Gas
kept tabs on over the last year, with
acquiring companies in bold:
AmeriGas Propane
Nine acquisitions (undisclosed)
APP Propane
PC Propane & Gas Montesano,
Wash.
Blossman Gas
Southern Propane Jacksonville, Fla.
Cavagna Group
Bigas, an Italian company
specializing in fuel system
technologies for LP gas and
compressed natural gas engines
CHS Inc.
Merger with Elburn Cooperative
Sycamore, Ill.
Eastern Propane
Patriot Fuels Inc. Canaan, N.H.
Ferrellgas
Bridger Logistics LLC Dallas
Gasco Energy Supply LLC Eldon,
Mo.
Herring Gas
Prentiss Butane Prentiss, Miss.
Southwest Gas Magnolia, Miss.
iRely LLC
AutoFueling Systems, a cardlock
software company
R.W. Earhart
Franz Petroleum Products
Bascom, Deshler and Holgate, Ohio
Shipley Energy
Smart Click Energy Boston-based
software company
Suburban Propane
Propane USA Margate, Fla.
ThompsonGas
Beckett Gas Co. Cameron, Mo.
Como Oil & Propane Duluth,
Minn.
ValvTect Petroleum
Energy Additives Inc., a fuel
additives company in Battle Creek,
Mich.
Westmor Industries
Advanced Tank Systems, a
commercial truck tank body
distributor in Colmar, Pa.
Westport Innovations
Merger with Fuel Systems Solutions
Inc. to create an alternative fuel
company
www.LPGasmagazine.com
Reliability: PACCAR PX-7 or PX-9 engines with ratings to meet all of your powertrain requirements
Durability: A robust body built for longer-lasting propane service up to 30 years or more
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Designed to do the job: Custom built and specified to maximize propane delivery efficiency
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CO N S U M E R E D U C AT I O N
DOG DAYS O
New residential-based
marketing campaign
designed to endear the
public to propane
BY BRIAN RICHESSON | EDITOR IN CHIEF
brichesson@northcoastmedia.net
www.LPGasmagazine.com
CO N S U M E R E D U C AT I O N
OF SUMMER
www.LPGasmagazine.com
CO N S U M E R E D U C AT I O N
Continued from page 46
price of propane rose above a predetermined threshold.
Led by PERCs newly selected, Dallasbased branding agency, The Richards
Group, the consumer education campaign will target the hard-hit residential
market, working to improve the publics
perceptions of propane, highlighting the
many uses for the fuel in and around the
home, and ultimately growing gallons
for the industry.
Im excited to get back out there and
see the consumer response to our message, says Roy Willis, PERCs president
and CEO.
www.LPGasmagazine.com
CO N S U M E R E D U C AT I O N
Continued from page 48
a voice to convey Blues thoughts about
his days on the job with a propane man
and hired a director for the shoots.
We needed to make sure we had a
great voice for Blue, Walters says. His
mouth never moves, but you can hear
his thoughts. He has a great sense of
humor and brings a lot of charm to the
character.
www.LPGasmagazine.com
See us at WPGA in
RENO
BOOTH 433
CO N S U M E R E D U C AT I O N
Continued from page 50
favorable to propane. The results told PERC that it needed to
increase the emotional connection between consumers and
propane.
The campaigns goal in the first year is to increase the
familiarity and favorability of propane, says Dennis Vegas,
PERCs chief marketing officer, who was hired last year to help
launch the campaign. We have a ways to go to changing consumer behavior. Weve got to be able to make people feel good
about propane and know what the benefits are. Its going to
take some time to cultivate that relationship.
The campaign will build messages around propane-fueled
appliances used inside and outside the home. It will target consumers ages 35 to 65 who have limited or no access to natural
gas, and it will use television, radio, digital and print methods
to reach that audience.
Weve got to find ways to tap into the interests of consumers and how they want to use propane, and then talk to them
through those mediums, Vegas says.
Research has also told PERC that homeowners in propane
country value their way of life, the land on which they live
and their independence. To that end, campaign messaging will
highlight how propane, as a surprisingly modern fuel, delivers
energy when and where consumers need it and fuels their way
of life. Those concepts are tied together under a new Proudly
Propane banner.
We thought about it in the context of the people who have
been using propane for many years and the people who take
pride in delivering it, Vegas says of the banner. We saw it as
a rallying cry for both the marketer and consumer about the
independent way of life that they can feel proud of.
PERC foresees the campaign working in concert with new
construction and housing data from Metrostudy, providing
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CO N S U M E R E D U C AT I O N
Continued from page 52
at proudlypropane.com. Project leaders will be able to track
the progress of the websites and ads, and make adjustments as
needed, Walters adds.
www.LPGasmagazine.com
CO N S U M E R E D U C AT I O N
Continued from page 54
rate of four-tenths, expected to generate about $36 million in 2016 revenue,
was lowered from five-tenths after the
restriction hit. The council has yet to
decide whether the rate should remain at
four-tenths beyond this year or increase
to the maximum level.
We have some tough choices to
Safety
Management
Hire the Safety Leader Jay Johnston for
Speaking
Consulting
Coaching
www.TheSafetyLeader.com
952-935-5350
56 | LPGas May 2016
CO N S U M E R E D U C AT I O N
Wilson is one of many industry
members who has contributed to the development and launch of the campaign.
Much of the industrys work started
in July 2015 when the council formed a
consumer awareness task force to help
lay the groundwork for a new campaign,
naming Scott Brockelmeyer of Ferrellgas
as the chairman. Brockelmeyer worked
closely with The Richards Group as details of the campaign came together.
PERCs process to form a new campaign hasnt been without criticism.
Some industry members believe the
council has taken too much time after
the restriction ended to launch a program. PERC, however, has defended
that process, citing patience and a push
to involve industry leaders in the effort.
As much as we need to move quickly,
we need to make sure were doing this
the right way, PERC Chairman Tom
Van Buren of Ferrell North America told
the council in February. LPG
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No payment, no service
The natural gas utility shut off gas to
the home due to Carl Jones failure to
pay for service.
The company applied a lock to the
gas service to prevent anyone from
getting around the cutoff of gas service. This lock was no match for Jones,
however, as he was able to intentionally break it with a wrench and restore
gas service to his home. It also appears
Jones left a gas line open in the home
and hid the utility-supplied gas meter
to his home to cover up his actions.
With the gas left on to the home, an
explosion occurred in the early-morn60 | LPGas May 2016
ISTOCK.COM/PRICELESSPHOTO
50/50
Individual improvement
the most profitable part of our business, but it remains beneficial to the
company and the homeowner.
Companies have different policies
and procedures regarding tank maintenance, but the majority of us perform
these tasks during the summer months
our offseason.
Propane tank maintenance is such
an important part of our industry and
is easily overlooked on a yearly basis,
mostly due to winter weather or available manpower during the summer
months. Swapping out tanks with
expired date codes and increasing or
decreasing tank storage related to usage
can be difficult to perform during the
five to seven months in the winter. A
slower winter, with a smaller amount
of snow and frost, allows for these projects to start much earlier this year.
I started in this industry at 16 years
old, washing dirty propane tanks in
Marshall Excelsior Co. designed its mini quadport relief valve manifold to allow for the service
and exchange of tank vapor relief valves while
tank systems are fully operational. The relief
valve, which is distributed by Bergquist Inc.,
can be used in all large ASME tanks equipped with
standard 2-inch FNPT vapor relief valve openings.
According to Bergquist, the relief valve includes all of
the same features of Marshall Excelsiors flanged versions,
but it costs less and does not require costly tank modifications. The valve uses high-flow 1-inch MNPT external
relief valves. It is available in brass for LP gas service or aluminum for NH3
service. The manifolds and relief valves come with Viton or NBR seals for high
performance in LP gas or NH3 uses. Additionally, the relief valve manifold
has an extra relief valve excluded from the flow rating to allow for service or
exchange of any relief valve without evacuating the tank.
For more information, visit www.marshallexcelsior.com.
Medium-duty trucks
Kenworth Truck Co.s Kenworth T370
medium-duty trucks provide for excellent turning radius, according to the
company. Kenworth T370s come with
a PACCAR PX-9 engine rated at 350
horsepower and matched with Allison
3000RDS six-speed automatic transmissions. The locking differentials on
64 | LPGas May 2016
CLASSIFIED ADVERTISING
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CONTACT SALES EXECUTIVE KELLI VELASQUEZ FOR RATES TODAY!
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66 | LPGas May 2016
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