LP Gas, April 2017

DOT halts 10 year cylinder requalification enforcement during petition review PROPANE MASTER LIMITED PARTNERSHIP COMPARISON Fiscal Recent Total Units Year Quarter Price Current Current Est Tax Debt Outstanding Company End End 3 24 17 Distribution Yield Deferral Capital millions AmeriGas APU Sept Dec 4544 376 83 75 70 930 Ferrellgas FGP July Jan 606 040 66 90 154 972 NGL Energy Partners NGL March Dec 2180 156 72 80 62 1189 Suburban Propane SPH Sept Dec 2655 355 134 80 64 611 Average 89 88 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 2083 1377 66 161998 1076 6 122 Ferrellgas 789 436 55 111450 565 1 055 NGL Energy Partners 960 219 23 68565 168 3 016 Suburban Propane 922 623 68 182194 424 7 147 Average 53 131052 3 085 Source FactSet partnership reports and Wells Fargo Securities LLC Dollar figures in millions except for per unit data Revenue and gross profit data are based on total propane gallons sold Employee data is based on most recently completed fiscal year NGLs revenue and gross profit data include the sale of distillates and other natural gas liquids Sharon Lui analyst Wells Fargo Securities LLC NEWS BRIEFS INDUSTRY NEWS NUMBERS T he Department of Transportations DOT Pipeline and Hazardous Materials Safety Administration PHMSA formally accepted the National Propane Gas Associations NPGA petition to change a recent rulemaking and return the cylinder requalification period to 12 years for DOT specification cylinders NPGA reports The agencys action only initiates the rulemaking process and is not a final rule according to NPGA The next step in the process is publication of the rulemaking in the Federal Register PHMSA also gave formal notice that it will allow a 12 or 10 year requalification period for volumetric expansion testing while the agency reviews the petition The PHMSA rule had reduced the requalification period for DOT cylinders following volumetric expansion testing from 12 years to 10 years effective Jan 23 In other regulatory news DOTs inspector general released a research study that prevents the Federal Motor Carrier Safety Administration FMCSA from implementing additional regulations on hours of service requirements NPGA reports In 2013 FMCSA initiated two restrictions on the 34 hour restart rule limiting its use to once per week and requiring that it include two consecutive rest breaks from 1 5 a m within the 34 hours Lobbyists urged Congress to stop FMCSA in the aftermath of the restrictions In response Congress mandated that FMCSA conduct a study of the potential safety benefits of the regulations LPG ThompsonGas adds retailer in western US ThompsonGas acquired the assets of Propane Northwest a retailer based in Portland Oregon which services parts of Oregon and Washington The acquisition is ThompsonGas first in the western United States Paul Bansen and Don Hutt owners of Propane Northwest founded the company in 1999 after working for 15 years at a major marketer in the propane industry Ferrellgas acquires California retailer Ferrellgas Partners LP acquired Valley Center Propane an independent propane retailer based in Valley Center California Valley Center Propane has provided propane to communities in north San Diego County for more than 28 years according to the companys website CHS announces deal with transport company CHS Inc purchased Western Co op Transport Association a bulk liquid transport company based in Montevideo Minnesota Western Co op Transports dispatch and routing operations will move to the CHS dispatch office in Rosemount Minnesota The Montevideo facility will remain in operation as a CHS owned fleet service center CHS says 12 LPGas April 2017 www LPGasmagazine com