Mark Fenner President and CEO MFA Oil Company Columbia, Missouri
Mark FennerPresident and CEOMFA Oil CompanyColumbia, Missouri
If you can take away only 1 thing from this presentation…
•DO NOT introduce a new tagline with an upcoming election!
Key MFA Oil Stats• Formed in 1929 as an energy cooperative• Markets in 16 states• $700 Million – FY16 Sales with no debt• 100+ million gallons of propane
• 7th largest propane retailer in the United States• 400 million gallons of refined fuels• 1 million gallons of lubricants• 72 Break Time convenience stores, 8 Jiffy Lubes, 18 Big
O Tires stores & 175 Petro-Card 24 locations
Facing Our Brutal Facts
The Stockdale Paradox• James Stockdale
US Navy Admiral
The Stockdale Paradox
“You must never confuse faith that you will prevail in the end—which you can never afford to lose—with the discipline to confront the most brutal facts of your current reality, whatever they might be.”
MFA Oil’s Brutal Facts
70% of our income over the last 15 years
The Hedgehog Concept
Helps an organization determine how to produce the best long-term results and then exercising the discipline to say no to opportunities that don’t fit.
What do you stand for/What are you passionate about
What can you uniquely contribute/What can you
be best at
What best drives your economic
engine
HEDGEHOG
Bulk Fuel, Propane & Lubricants
Jiffy Lube
Break Time
FY15 Operations
AgFuel Energy Systems
Big O Tires
WasteWater Logic
Woodfin Propane
NCRA Refinery
Biomass
Partnerships
Today
Break TimeAPM
Jiffy Lube
Bulk Fuel, Propane & Lubricants
Big O Tires
Strategic Commitment to Growth
• We created a Mergers & Acquisitions group• Added professional sales people and a new sales
leader• 385 new customer accounts in FY 16
• Adding a Coop energy contract management program
(in development)
M&A Overview
• 33 acquisitions in 5 years
• FY12 3• FY13 8• FY14 7• FY15 7• FY16 8
• Refined Fuels 96.1M gallons
• Propane 26.2 M gallons
M&A Overview – FY16
How have we done?
• Pre-tax earnings of $62 million in FY 15 and $35 million in FY 16
• We made more by doing less • Facing our brutal facts and focusing on our hedgehog• Eliminated Biomass and poor performing LLC’s
Bulk Fuel & Propane• In FY 12: -$457k on our own operations• In FY 16: $15 M on our own operations
Questions