Ron Miller Oil & Gas Project Portfolio, 2 Mar 2015
- 1. Ron Miller Oil & Gas Project Portfolio KEY CUSTOMERS COMPLETED PROJECTS Domestic Propylene Market Assessment Team Michigan Pipeline Acquisition Led Mobils multi-discipline team from four refineries, two ethylene plants, and logistics & marketing to assess domestic market for refinery grade propylene (RGP), a petrochemical building block for consumer products Researched market to find Mobil was the largest domestic RGP producer, and processors were heavily-dependent on supply to maximize their facility throughput and revenue Improved margins on RGP product Identified potential annual savings up to $26 million Identified Michigan pipeline assets for sale that would complement existing Wolverine pipelines Expanded Wolverine Pipelines market by 50% with $84 million pipeline acquisition Total acquisition price (pipeline/terminals/stations): $250 million Convinced Wolverine President and Board of Directors of projects viability 100% project financed by Prudential Capital Negotiated 20-year Take-Or-Pay agreement with Marathon Ashland Petroleum as main shipper on newly-acquired pipeline Increased annual cash flow by $6.7 million per year
- 2. New Propellant Grade Propane Product For Joliet, Illinois Refinery Increased Revenue From Incentive Tariff Development Gas Processing Plant Margin Improvement From New De-Propanizer Increased Profits From Existing Assets Identified key customer service and price concerns via customer visits Analyzed Midwest refined product market to initiate incentive tariffs to attract incremental pipeline volume and annual revenue of $3.1 million Provided proof for testimony in Wolverines application for market-based rates to FERC, resulting in $600,000/year incremental revenues Initiated new refinery product (propellant grade propane) by gaining approval by refinery management, engineering, and operations Presented market research and business case to management to manufacture a higher purity/quality product Increased annual refinery revenue by $400,000 Used existing refinery and pipeline assets to generate additional revenue Increased utilization of Pegasus gas processing plant assets near Midland, Texas Developed business case for capital investment to produce incremental propane due to market needs Increased annual plant revenue by $420,000 Negotiated multi-year contract with propane buyer Increased utilization of existing rail car loading assets Grew annual revenue by $200,000 Sold propane and tank car loading services to PMI product to the Mexican market
- 3. New Sales of Refinery Grade Propylene At Paulsboro, New Jersey Refinery New Sales Of Refinery Grade Propylene At Joliet, Illinois Refinery Beaumont, Texas Refinery Grade Propylene Contract Renegotiation Lower Feedstock Costs For Petrochemical Plant Increased RGP supply with proprietary catalyst, ZSM-5 Researched market to identify critical nature of RGP supply to Sunoco Chemical Improved annual cash flow for Paulsboro refinery by $660,000 Renegotiated 10-year, $2.2 billion sales agreement Obtained a better sales price from generating increased competition with Chevron Chemical and Diamond Shamrock Improved annual cash flow for Beaumont refinery by $6.4 million Used industry market intelligence to identify cost-saving initiative Purchased off-spec propane suitable for Mobil Chemicals Houston Olefin Plants feedstock Reduced annual feedstock costs by $350,000 Identified RGPs alternative market to gasoline pool was more lucrative petrochemical industry Improved annual refinery margins by $2 million Coordinated project with refinery operations, engineering, and management to gain their consensus Used existing pipeline assets to deliver RGP to Equistar