LP Gas, June 2015

NEWS BRIEFS INDUSTRY NEWS NUMBERS T he Office of Energy Policy and Systems Analysis EPSA within the U S Department of Energy DOE released the first installment of its Quadrennial Energy Review a report that provides a multi year roadmap for U S energy policy According to EPSA Exports are competing with other propane markets in the U S the report was developed to identify the threats risks and opportunities for U S energy and climate security as well as to enable the federal government to translate policy goals into actions and proposed investments The Quadrennial Energy Review focuses on a number of energy sources including propane which is referenced periodically throughout the 300 plus page report The report focuses largely on energy transmission storage and distribution characterizing U S energy infrastructure and exploring the trends affecting infrastructure choices In the report EPSA encourages DOE to continue to monitor propane storage use and exports DOE is also advised to ensure adequate support for the Energy Information Administrations EIA data collection and analysis relative to domestic propane storage and use as well as propane exports In addition EPSA provides some background of the changing U S propane Meritum Energy Holdings launches Two former JP Energy Partners executives founded Meritum Energy Holdings to acquire own and operate propane and natural gas liquids NGL related assets Christopher Hill president and CEO and Rob Chalmers executive vice president and CFO founded Meritum Chalmers spent the previous four and a half years at JP Energy Partners with Hill building its NGL segment and developing Pinnacle Propane a company that sold 60 million gallons of propane in 2014 We are well capitalized and look forward to developing the partnership Chalmers says of Meritum APP Propane acquires propane assets APP Propane based in Tacoma Wash acquired the primary propane assets of PC Propane Gas based in Montesano Wash The acquisition provides APP Propane with hundreds of additional customers APP Propane serves homeowners building contractors commercial and industrial customers in western Washington and northwest Oregon UGI Corp to complete acquisition of Totalgaz UGI Corp AmeriGas parent company planned Department of Energy includes propane in report outlining U S energy policy 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 5 18 15 Distribution Yield Deferral Capital millions AmeriGas APU Sept March 4855 368 76 75 66 929 Ferrellgas FGP July Jan 2451 200 82 90 111 827 NGL Energy Partners NGL March Dec 2909 250 86 80 62 1048 Suburban Propane SPH Sept March 4313 355 82 80 53 605 Average 81 73 LAST TWELVE MONTHS Gross Gross Gross Proft Gross Proft Retail Gallons Sold Percent Gross Proft Company Revenue Proft Margin Per employee millions Change Per gallon AmeriGas 2890 1295 45 154132 1215 5 102 Ferrellgas 2014 689 34 190248 619 7 077 NGL Energy Partners 2046 202 10 80879 163 4 014 Suburban Propane 1293 734 57 193292 493 9 149 Average 36 154638 4 085 Sharon Lui analyst Wells Fargo Securities LLC Source FactSet partnership reports and Wells Fargo Securities LLC Dollar fgures in millions except for per unit data Revenue and gross proft data are based on total propane gallons sold Employee data is based on most recently completed fscal year NGLs revenue and gross proft data include the sale of distillates and other natural gas liquids 8 LPGas June 2015 www LPGasmagazine com