1. Frontier Oil Corporation is an independent petroleum refiner and marketer operating two refineries in Wyoming and Kansas.
2. The company focuses solely on refining and wholesale marketing of gasoline, distillate, and other refined products to avoid volatility from other parts of the energy business.
3. Frontier aims to protect profits by buying cheaper feedstock, serving as a reliable supplier to customers who cannot obtain products elsewhere, and benefiting from high barriers to entry in the refining industry.
Zero Policy = maximize profits; Clients (Refineries and petrochemical Facilit...Vincent Wedelich, PE MBA
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Zero Policy = maximize profits; Clients (Refineries and petrochemical Facilit...Vincent Wedelich, PE MBA
Clients (Refineries and petrochemical Facilities) will maximize profits if they develop a zero policy.
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Royal Dutch Shell plc - Enhanced disclosures webcastShell plc
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Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
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RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
2. Company Overview
• NYSE Ticker “FTO”
• Independent Refiner
• Wholesale Marketer
• Two Refineries
– Cheyenne, WY 46,000 barrels per day;
Acquired in 1991
– El Dorado, KS 110,000 barrels per day;
Acquired in 1999
3. Value Chain Profit Model
Refining Retail MarketingExploration and
Production
4. Number of U.S. Refineries
0
50
100
150
200
250
300
350
198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004
NumberofUSRefineries
More than 170 plant closures
6. There are Three Dimensions to Best Value
Best Product
• Product features that
deliver results
Best Total Cost
• Low price
• High reliability
• Hassle-free basic service
Best Total Solution
• Expert advice
• Responsibility for results
• Tailored basic service
Treacy Model
X
Customer Intimacy
7. Treacy Customer Intimacy
Never the Product Innovator,
but a Quick Follower
Tailored Basic Service
But Still Some Service Glitches
Superb Understanding of
Customer’s Business
Products Without the latest
Features
Expertise in Areas of
Customer needs
Sales Reps That Make
Things Happen
A Little More Expensive,
But Worth It
8. Strategic Control
Value Capture/
Profit Model
Scope
Customer Selection
and Value Proposition
Organizational
Systems
How can I align
all elements of my
organization – people
processes, structure,
infrastructure, and
leadership?
What high value customer
opportunity am I targeting
with what unique and
differentiated customer
proposition?
What profit model
will I harness to
capture value from
this customer?
How will I “build in”
sustainability by
Business Design?
What scope of
activities and
assets are
required?
Business Design
9. 1. Serve the market only as a wholesaler.
2. Eliminates the competition with your customer. (i.e. Exxon, BP, etc.)
3. Sell to customers that can’t buy elsewhere. (i.e. Costco, King Soopers)
4. Always have product available for your customers, even if you buy
additional barrels in the market.
Customer
Selection and
Value Proposition
Customer Selection and
Value Proposition
10. 1. Profit is largely a function of commodity price.
2. Profit from the value chain profit model by staying focused.
3. Make projections based on 5-years averages.
4. Maintain adequate liquidity to meet minimum capital expenditures for down
years that don’t meet profit expectations.
Value Capture/
Profit Model
Value Capture / Profit Model
11. Income Statements
(In thousand dollars except per share)
2004 2003 2002 2001
Revenue 2,861,716$ 2,170,503$ 1,813,750$ 1,888,401$
Costs and Expenses 2,652,242 2,061,178 1,740,908 1,681,720
Gross Margin 209,474 109,325 72,842 206,681
Selling and General Expenses 33,717 19,890 17,248 17,571
Merger Termination & Legal Costs - 8,739 - -
EBITDA 175,757 80,696 55,594 189,110
Depreciation 32,208 28,832 27,332 25,010
Impairment loss on asset - - 363 -
Operating Income 143,549 51,864 27,899 164,100
Interest Expense, Net 20,914 27,637 25,811 28,374
Redemption Costs 14,943
Gain on involuntary conversion of assets 4,411 - - -
Merger Financing Costs, Net - 18,039 - -
Provision for Income Taxes 42,339 2,956 1,060 28,703
Net Income 69,764$ 3,232$ 1,028$ 107,653$
Diluted EPS 2.55$ 0.12$ 0.04$ 4.00$
12. Capitalization
(1)
9 1/8% Sr. Notes were redeemed on December 22, 2003.
(2)
The 11 3/4 % Sr. Notes were redeemed on November 15, 2004, and replaced with $150
million of 6 5/8% Sr. Notes due 2011.
12/31/2004 12/31/2003 12/31/2002
Cash $124.4 $64.5 $112.4
Revolving Credit Facility 0.0 45.6 0.0
9-1/8% Senior Notes
(1)
0.0 0.0 39.5
11-3/4% Senior Notes
(2)
0.0 168.7 168.4
6-5/8% Senior Notes
(2)
150.0 0.0 0.0
Total Long TermDebt 150.0 168.7 207.9
Equity (Book) 240.1 169.3 168.3
Total Book Capitalization 390.1 383.6 376.2
Net Debt 25.6 149.8 95.5
Debt/Capitalization 38% 56% 55%
Net Debt/Capitalization 10% 47% 36%
13. 1. Protect profits by buying cheaper feedstock.
2. Valero can process heavy/sour crude as well, but they don’t sell
a significant number of barrels in our markets.
3. Customers buy from me because I am reliable source of product.
4. No new refineries have been built since 1976 proving barriers to entry
are very high.
Strategic
Control
Strategic Control
14. Light/Heavy Crude Oil Spread
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
5-yr average (2000-2004) 5-yr High 5-yr Low 2005*
*Estimates for 1st
quarter 2005
15. WTI/WTS Crude Oil Spread
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
Jan Feb Mar Apr Ma Jun Jul Au Se Oct Nov De
2005* 5-yr average (2000-2004) 5-yr High 4-yr Low
*Estimates for 1st
quarter 2005
16. 1. We are an independent refiner and wholesale marketer….nothing else!!
2. We sell gasoline, distillate, asphalt and a few other byproducts.
3. Strategic partners for crude supply arrangements and product off-take
agreements can help reduce volatility.
Scope
Scope
17. 1. Management must stay focused and disciplined on the strategy.
2. Evaluate acquisitions carefully with strict return on capital thresholds
3. Make sure acquisition target fits strategically with exisiting assets and
4. Create a culture and reward system that drives employees to returns,
bonuses are paid based on overall corporate performance.
Organizational
Systems: Viability
and implementation
Organizational Systems
18. Revenue Market Value Market Value
($ in B) ($ in B) Revenue
Holly 2.3$ 1.1$ 47.8%
Frontier Oil 2.9$ 1.1$ 38.3%
Valero 54.6$ 19.1$ 35.0%
Premcor 15.3$ 5.3$ 34.6%
Sunoco 25.5$ 7.2$ 28.2%
Tesoro 12.3$ 2.6$ 21.1%
Giant 2.5$ 0.3$ 13.6%
Industry Value Migration
19. Time (years)
Profit
Extend and defend
existing core businesses
Horizon 2
Build emerging
businesses
Horizon 3
Create viable
options
Horizon 1
The Three Horizons
20. Frontier Return on Capital Employed
(1)
(1)
EBITDA/Beginning of Year Capital.
28.1%
39.6%
21.5%
14.6%
55.0%
0%
10%
20%
30%
40%
50%
60%
2000 2001 2002 2003 2004
5-yr avg.
31.8%
21. Strategy for the Future
Reduce/Refinance existing senior notes
Increase quarterly dividend
• Repurchase Company stock / Pay special
dividends
• Seek accretive high return acquisition
• Explore Canadian crude supply
partnerships
• Consider being acquired instead of being
an acquirer