Susser, Chevron Enter Into New Branded Marketer Agreement
Deal requires purchase of 5 million gallons of Chevron fuel during each year through 2014
CORPUS CHRISTI, Texas -- Susser Petroleum Co. LLC, an indirect wholly owned subsidiary of Susser Holdings Corp., and Chevron Products Co. recently entered into a new branded marketer agreement that replaces the parties' prior agreement for purchases of Chevron-branded gasoline and diesel fuel, according to a filing with the U.S. Securities & Exchange Commission (SEC).
The deal was effective September 1, 2011.
During fiscal 2010, Susser Petroleum Co. purchased from Chevron approximately 15% of the motor fuel sold in the company's wholesale and retail operations.
The agreement, which expires August 31, 2014, requires Susser Petroleum to purchase no less than 5,000,000 gallons of Chevron-branded fuel during each year of the agreement term. Chevron's obligation to sell any particular fuel product to Susser Petroleum from any of the 31 terminals covered by the agreement is subject to a volumetric cap based upon Susser Petroleum's average product purchases at such terminal over the prior 12-month period and the average monthly deliveries of such product from the applicable terminal group to Chevron's total customer base during the preceding 10 years.
The agreement permits the use the Chevron brand and insignia at the company's wholesale dealer and retail convenience store locations to which Susser Petroleum supplies Chevron-branded fuel, grants Chevron a customary right of first refusal on dispositions of Susser Petroleum assets used to supply Chevron-branded fuel, requires Susser Petroleum to indemnify Chevron against liabilities arising in connection with performance under the agreement and contains, among other things, customary provisions in respect of fuel pricing, payment and delivery.
Susser Petroleum may terminate the agreement at any time by delivering written notice to Chevron. Chevron may terminate the agreement by delivering reasonable advance written notice following Susser Petroleum's breach of the agreement or certain Susser Petroleum events of violation, dishonor or default, the filing said
Corpus Christi, Texas-based Susser Holdings is a third-generation, family-led business with approximately 1,100 company-operated or contracted locations. The company operates more than 535 convenience stores in Texas, New Mexico and Oklahoma under the Stripes banner. Restaurant service is available in more than 320 of its stores, primarily under the proprietary Laredo Taco Co. brand. Following the Community Fuels deal, the company also now supplies branded motor fuel to approximately 560 independent dealers through its wholesale fuel division.