Kenneth Shriber is CEO of Petroleum Equity Group Ltd., which provides M&A advisory and financing services, as well as general consulting, to terminal operators, fuel jobbers and retail store chains. Reach him at (917) 882-2702 or [email protected]. Visit www.petroleumequitygroup.com.
The convenience-store industry’s appetite for consolidation is unprecedented, with much of the activity fueled by the tax-advantaged master limited partnership (MLP) structure. And this flood of activity follows five years of dynamic consolidation.
We love working with smaller fuel-distribution companies. They have unique personal dynamics. They bring many years of experience and knowledge to the table. For decades they have operated in their own sphere of influence, quietly and relatively immune to downward economic cycles. Yet once the owners of these companies decide to pursue a sale, something emotional (and perhaps physiological) happens.
With its supply abundance, significant price advantage and gasoline-like energy content to power readily available engine technology, how could compressed natural gas not become a dominant alternative to diesel fuel and gasoline?
Recently, I have given a lot of thought to a forward-looking reality of viable alternative transportation fuels sold at traditional U.S. retail gas outlets. To better understand the conclusions I reach in this column, it is important to be aware of what is possible today.
In June 2010, in this magazine, I wrote a column about the future of fuels retailing after the liquidation of the thousands of retail branded assets and businesses sold off by major and regional oil companies to local jobbers.