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Hudson Energy
- 6. WHO IS HUDSON ENERGY SERVICES…
- 11. THE ELECTRIC MARKET HUDSON SERVES…
- 13. FIXED, INDEXED, AND HYBRID PRODUCT OFFERINGS
- 19. Regional Offices Contact your Central Energy Solution Manager First For Assistance! TEXAS OFFICE 5100 N. O’Connor Blvd. Suite 300 Irving, TX 75039 Tel: 972-373-1600 Fax: 888-893-9882 ILLINOIS OFFICE 1415 W. 22 nd Street Tower Floor, Suite 1205 Oakbrook, IL 60523 Tel: 630-645-3879 Fax: 630-645-3879 NEW YORK OFFICE 4 Executive Blvd. Suite 300 Suffern, NY 10901 Tel: 845-228-3400 Fax: 845-228-3422
Editor's Notes
- Quick introduction of people from both teams
- ABE SLIDE - Hudson was originally founded by David and myself in 2002, David had prior experience working for a oil/natural gas marketer, and he sold their book of business - We started by offering natural gas service in New York and shortly thereafter added electricity products in 2003 (Transalta) - In 2003, we also added a call center based in Florida to better target residential customers - We significantly during this period and into 2005, but realized that we would be better off finding a financial partner and perhaps additional management depth in order to expand into new markets - Texas was a market that stood our and was particularly attractive to us - We began discussions with Lake Capital in 2005 and they invested in the Company in April 2006 - Later in the year, we added Deryl and his team and launched service in Texas - During 2007, we focused on establishing ourselves in the Texas market and building a significant book of fixed term contracts - We have since replicated our strategy in Texas by launching electric service in Illinois during 2008 - We’ve achieved several milestones along the way, most notable during the seven year period is that we have built the Company from scratch to [ $34 ] million in EBITDA this year and will top $1 billion in revenues next year
- ABE SLIDE - As you can see here, we operate in 4 states: NY, NJ, TX, and IL - We also have a call center in Florida that is primarily used to target residential customers - We view these markets as the most attractive markets for targeting small C&I and residential customers which have the highest margins - An interesting thing to note about each of these markets is that they also have different degrees of maturity - We view the Northeast market as more mature, while Texas is in a significant growth phase, and Illinois really just recently opened for competition
- ABE OR DERYL SLIDE - We see a significant opportunity in the existing markets where we operate - Each of these states has a very large market - KEMA estimates that the total size of our markets to be close to 500 TWh or $50 billion in revenues - As you can see on the right, we have recently been very successful in growing our business in comparison to our peers - With customers continuing to switch from the utility, we see additional growth opportunities in all these markets that will drive our future gross margin
- ABE SLIDE - This slide highlights our broad offering of electric and natural gas products - We off both indexed based and fixed term products out to 5 years - Another part of our sales strategy is to focus on ease-of-execution vs. our competitors - We do this by: 1) Focusing on simplified products, a straight-forward easy to understand offering - By simplifying the offering we reduce both sales and acquisition costs thus generating better margins 2) Better technology which will be highlighted in the next section - A simplified offering also has the benefit of being easier to manage from a risk management perspective
- Note: Fixed rate is not a budget rate. The bill will fluctuate with usage but the rate per Kwh or Therm will remain constant. Hybrid partially fixed and partially variable.