Transcript Presentation to the Board of Directors

Texas Natural Gas
Workshop
March 26, 2015
Confidential
Our Company
 2nd largest producer of LNG for
alternative fuel use in North America
 Company roots go back to 1995
 2 LNG production plants
 49 LNG delivery trailers
 Temporary and permanent fueling
equipment - with financing
 Technical, training and maintenance
services
 Renewable natural gas (biogas) available
 Privately owned
2
Confidential
Products & Services
Production
Distribution
Advisory
• Needle Mountain Arizona LNG Plant
• Midlothian Texas LNG Plant
• 3rd Party Supplies
• 49 cryogenic trailers
• 10 mobile fueling units
• LNG-powered delivery tractors
• Station design / permitting / construction
• Equipment maintenance
• Training
3
Confidential
Markets Served
Drilling Rigs
Heavy Duty Trucks
Hydraulic Fracturing Fleets
Industrial
Mining
Marine
4
Rail
Confidential
Customers
On-road
Off-road
5
Confidential
LNG in Asphalt/Paving Operations
 Market size in U.S. $80 billion
 94% of all roads in the U.S. are asphalt
 4,000 plants in the U.S. produce about 400 million tons of asphalt
per year
 50% of plants are permanent
‒ Most use pipeline natural gas/cheapest and cleanest option
 50% of plants are mobile
‒ Move every 30-120 days
‒ Can’t get pipeline natural gas
 Use 3,000 to 10,000 DGE/day per plant
 LNG advantage over used motor oil, diesel and propane
‒ Cheaper and burns more consistently, cleaner, and hotter
6
Confidential
Asphalt/Paving Example
•
•
•
•
•
•
•
•
First paving client, Skanska, started in
1999
One Skanska manager switched to Blue
Diamond Materials, which became a
customer in September 2011
Started talks with Vulcan Materials in
2011
Vulcan made the introduction to Security
Paving
Security Paving became a customer in
October 2011, starting with Bakersfield
location
In 2012, Security Paving won bid for
Newberry Springs location and started
that operation in August
Las Vegas Paving won bid in Needles and
signed contract in 2013
Currently in talks with other potential
customers
7
Confidential
LNG in E&P Operations
 Drilling Rigs
 866 oil rigs in the U.S.
 U.S. consumption over 2 million DGE per day
 10% penetration requires 4 liquefiers with 86,000 LNG gallons
per day production capacity
 Hydraulic Fracturing Fleets
 Typical consumption 10,000 DGE per day for one spread
 Estimated 2013 U.S. consumption 8 million DGE per day
 10% penetration requires 16 liquefiers with 86,000 LNG gallons
per day capacity
8
Confidential
E&P Example: Occidental Petroleum (OXY)




Customer since 2013
Natural gas drill rig operated by Ensign
Operation in Southern California
Customer procured own equipment
Example Savings for Drilling Projects
Item
Unit
Value
Diesel usage per rig
DGE/yr
680,000
Diesel price
$/DGE
$2.40
LNG price
$/DGE
$1.56
%
50%
Diesel displacement
Fuel savings
$/yr
286,000
Equipment rental
$/yr
$93,000
Net savings
$/yr
$193,000
9
Confidential
Industrial Site Set-Up
10
Confidential
Contact Information
Cem Hacioglu
President & CEO
[email protected]
(818) 450-3651 direct
(917) 699-4697 cell
Greg Roche
Vice President of Sales & Marketing
[email protected]
(818) 450-3669 direct
(818) 540-8960 cell
11
Confidential