LP Gas, April 2014

NEWS BRIEFS INDUSTRY NEWS NUMBERS A verage expenditures for U S households heating primarily with propane were expected to be 54 percent higher this past winter compared to the previous one according to the U S Energy Information Administration EIA EIA meanwhile says expenditures for homes using natural gas were to be 10 percent higher heating oil 7 percent higher and electricity Natural gas heating oil and electricity werent impacted as much 5 percent higher According to EIA persistently cold weather east of the Rocky Mountains drove up demand for all heating fuels depleted inventories and put upward pressure on prices Propane prices experienced an especially high spike during several weeks in January and February EIA adds EIAs current estimates for winter heating expenditures were significantly higher than its pre winter forecasts from a short term energy outlook in October 2013 In addition between the beginning of October and the end of February U S average heating degree days were 13 percent higher than last winter and 10 percent above the 10 year average according to EIA The Northeast was 13 percent colder than last winter the Midwest and South were both 19 percent colder and the West was 5 percent warmer The Blossman Gas makes another acquisition Blossman Gas purchased Palmetto Gas a business based in Ridgeland S C Palmetto Gas 2800 customers will be integrated into the Blossman customer base according to a press release Blossman also acquired Ankey Propane Plus an Ocala Fla business earlier in the year Crystal Flash acquires Michigan retailer Crystal Flash announced its acquisition of Owens Propane Service Inc and Owens Petroleum Inc in Albion Mich The acquisition is the seventh in the past two years for Crystal Flash which now has more than 230 employees in 16 locations across Michigan According to Crystal Flash the deal adds two new locations as well as two Pacific Pride fuel stations to the company Owens has about 400 commercial fuel customers and 800 residential home heating customers in Michigan and northern Indiana Bosselman Energy pushes into Kansas Nebraska based Bosselman Energy acquired Schreiners Propane in WaKeeney Kan its third acquisition in Kansas since October The Hays Daily News in Kansas reported Schreiners Propane sells about 17 million Propane heated homes feeling brunt of winters fuel expenditure increases Continued on page 10 PROPANE MASTER LIMITED PARTNERSHIP COMPARISON Fiscal Recent Total Units Year Quarter Price Current Current Est Tax Debt Outstanding Company End End 3 14 14 Distribution Yield Deferral Capital millions AmeriGas APU Sept Dec 4215 336 80 75 61 929 Ferrellgas FGP July Jan 2329 200 86 90 114 792 NGL Energy Partners NGL March Dec 3659 213 58 80 50 748 Suburban Propane SPH Sept Dec 4306 350 81 80 52 603 Average 76 69 LAST TWELVE MONTHS Gross Gross Gross Profit Gross Profit Retail Gallons Sold Percent Gross Profit Company Revenue Profit Margin Per employee millions Change Per gallon AmeriGas 3058 1354 44 159241 1269 11 098 Ferrellgas 1647 606 37 167368 663 9 063 NGL Energy Partners 1524 200 13 101476 158 29 016 Suburban Propane 1403 747 53 189967 539 48 139 Average 37 154513 24 079 Source FactSet partnership reports and Wells Fargo Securities LLC t PMMBS öHVSFT JO NJMMJPOT FYDFQU GPS QFS VOJU EBUB t 3FWFOVF BOE HSPTT QSPöU EBUB BSF CBTFE PO UPUBM QSPQBOF HBMMPOT TPME t NQMPZFF EBUB JT CBTFE PO NPTU SFDFOUMZ DPNQMFUFE öTDBM ZFBS t T SFWFOVF BOE HSPTT QSPöU EBUB JODMVEF UIF TBMF PG EJTUJMMBUFT BOE PUIFS OBUVSBM HBT MJRVJET Sharon Lui analyst Wells Fargo Securities LLC 8 LPGas April 2014 www LPGasmagazine com