LP Gas, February 2014

NEWS BRIEFS INDUSTRY NEWS NUMBERS T otal U S gallon sales of odorized propane as well as propane sold in the residential sector declined for the fifth straight year in 2012 according to the latest report from the American Petroleum Institute API APIs report titled 2012 Sales of Natural Gas Liquids and Liquefied Refinery Gases shows total retail propane gallon sales at 77 billion gallons a near 13 percent drop from the previous One analyst says he expects sales to rebound in the next report year 2012 was very warm all year round that had a real fundamental impact on sales says Mike Sloan principal at ICF International Thats the primary reason why we see the very large drop in sales in the API survey The overall decline started after 2007 when sales measured across the residential commercial agricultural internal combustion and industrial sectors of the industry amounted to 103 billion gallons Propane sales topped 12 billion gallons in 2000 Sloan says he expects sales to rebound significantly in the 2013 report an increase of about 950 million gallons compared to 2012 reflecting colder temperatures and high demand for crop drying In a state by state breakdown from the latest report California led the way in sales for the fifth straight year with 489 million gallons though its sales FMCSA extends medical certificate requirement The Federal Motor Carrier Safety Administration is extending a requirement by one year that interstate commercial drivers license holders retain paper copies of their medical examiners certificate and continue to make the document available for review upon request at roadsides by federal and state commercial motor vehicle inspectors The requirement is being extended through Jan 30 2015 Westmor opens bobtail manufacturing facility Westmor Industries opened a truck and trailer facility in Shawnee Kan The company will manufacture Blueline bobtails and refined fuel trucks there as well as in Morris Minn According to Westmor the Kansas facility is certified for truck rebuilds repairs and Department of Transportation testing New composite cylinder to hit North America Time Technoplast Ltd an India based LP gas composite cylinder manufacturer appointed Safe Cylinders Inc of Sarasota Fla as the exclusive marketing company for its cylinders in North America the Caribbean Bermuda the Bahamas and Mexico Safe Cylinders Inc announced Initially the company API report U S propane gallon sales continue to fall California retains top spot 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 1 15 14 Distribution Yield Deferral Capital millions AmeriGas APU Sept Sept 4225 336 80 75 62 928 Ferrellgas FGP July Oct 2372 200 84 90 114 791 NGL Energy Partners NGL March Sept 3485 205 59 80 41 667 Suburban Propane SPH Sept Sept 4608 350 76 80 52 603 Average 75 67 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 2885 1313 46 154493 1245 22 097 Ferrellgas 1647 564 34 155572 638 4 062 NGL Energy Partners 1232 177 14 89625 149 42 016 Suburban Propane 1357 751 55 191034 535 88 141 Average 37 147681 39 079 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 4IBSPO VJ o BOBMZTU 8FMMT BSHP 4FDVSJUJFT 8 LPGas February 2014 www LPGasmagazine com