Wholesale Propane Logistics Segment

Our wholesale propane distribution and logistics business includes the assets of Gas Supply Resources that we purchased from DCP Midstream on November 1, 2006. These assets include six owned rail and one owned pipeline terminal, one leased marine terminal, and use of several open-access pipeline terminals. Our terminals provide us with aggregate storage capacity of approximately 475 MBbls.

Due to our multiple propane supply sources, propane supply contractual arrangements, significant storage capabilities, and multiple terminal locations for wholesale propane delivery, we are generally able to provide our retail propane marketer customers with reliable deliveries of propane during periods of tight supply such as the winter months when their retail customers consume the most propane for heating of homes.  We believe these factors generally allow us to serve as the baseload provider of propane supply for many of our customers and, accordingly, we do not experience significant fluctuations in sales volumes from year to year.  We mitigate exposure to commodity risk because we are able to match the index-based prices of our propane purchase and sales agreements to lock in margins, creating fee-like earnings.

Gas Supply Resources