LP Gas, May 2010
Winter n Windfall in fa The past two heating seasons could be enough to jump start a sluggish acquisitions market and bring buyers and sellers together A C Q U I S I T I O N S ISTOCKPHOTO COM KTSIMAGE BY BRIAN RICHESSON Senior Edi tor B ack to back winter heating seasons including one memorable for record margins have left positive impacts on many retail propane operations The question now is Will the welcome results of consecutive profi table winter campaigns infl uence the acquisitions market this year and beyond The winter of 2008 09 produced record high margins due to a sharp drop in wholesale prices during peak heating season The winter of 2009 10 was known more for cold temperatures and record snowfall in certain regions of the country extending usage and increasing volumes Acquisitions are based on factors and one owners decision to sell his retail propane company might differ from the next But these past two winters or even one record season for that matter could be enough to spur more agreements between buyers and sellers during what many in the industry have called a downtime for acquisitions Or it could be enough to push some company owners undecided on whether they should sell to fi nally pull the trigger on the always emotional issue A lot of these companies may have two straight years of fairly good numbers says Daniel Dixon a fi nancial consultant for Propane Resources Thats why it may be time to 18 LPGas May 2010 www LPGasmagazine com
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