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Most likely up due to gustav. if houston or new orleans evacuated, Fuel's mobile diesel fueling service would be in demand. projected landfall is from new orleans to brownsville at the moment. gustav is expected to intensify to a cat 3 to 4 huricane when it hits open water in the gulf. addl was up another 50% today... it ran to $1.20+ from 0.14 in 05' and $1.70+ in 06' from roofing contracts because of katrina.
Thanks, so this move up may be pretty shortlived? Merely a conversion taking place, not a newsworthy event or something. What do you think? TIA.
excerpt from post:
"Each share of Series C Preferred Stock is convertible into 1,000 shares of the Company's common stock at a price per share of $0.65 per share, which is greater than the $0.485 closing price of the Company's common stock on August 14, 2008."
This is a little old:
Form 8-K for SMF ENERGY CORP
--------------------------------------------------------------------------------
21-Aug-2008
Unregistered Sale of Equity Securities, Amendments to Articles of Inc. or Bylaws;
Item 3.02 Unregistered Sales of Equity Securities
SMF Energy Corporation (the "Company") and its subsidiaries, SMF Services, Inc. and H & W Petroleum Company, are borrowers under a Loan and Security Agreement (the "Loan Agreement") dated September 26, 2002. The primary lender under the Loan Agreement, as amended, is Wachovia Bank, N.A. (the "Bank"). By a letter dated August 15, 2008 (the "Consent Letter"), the Bank consented to (i) the issuance of additional shares of one or more new series of convertible preferred stock; (ii) the issuance of up to $1,000,000 in shares of the new series, including the exchange by the Company of no more than an aggregate of $250,000 in principal amount of the Company's August 15, 2007 Senior Secured Convertible Promissory Notes, together with some or all of the accrued but unpaid interest thereon, for shares of the new series.
Also on August 15, 2008, as permitted by the Consent Letter, the Company issued, in a private offering, $148,850 in equity securities (the "Offering"), consisting of 229 shares of Series C Convertible Preferred Stock, $0.01 par value, at a price of $650 per share (the "Series C Preferred Stock").
Each share of Series C Preferred Stock is convertible into 1,000 shares of the Company's common stock at a price per share of $0.65 per share, which is greater than the $0.485 closing price of the Company's common stock on August 14, 2008.
The Company has agreed to use its best efforts to register the shares of the Company's common stock into which the Series C Preferred Stock may be converted under the Securities Act of 1933, as amended (the "Act").
The offer and sale of the Series C Preferred Stock and the underlying shares of the Company's common stock into which the Series C Preferred Stock are convertible are exempt from registration under the Act as a private offering to "accredited investors" under Sections 4(2) and 4(6) of the Act and Regulation D promulgated thereunder.
The information provided in Item 5.03 of this Current Report on Form 8-K regarding the terms of conversion of the Series C Preferred Stock is incorporated by reference into this Item 3.02.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
The Company will file with the Secretary of State of Delaware a Certificate of Designation of Series C Convertible Preferred Stock (the "Certificate"). The Certificate authorizes the issuance of up to 2,000 shares of Series C Preferred Stock, which has such rights, qualifications, limitations and restrictions as are set forth in the Certificate and described below.
Ranking. The Series C Preferred Stock ranks senior to the common stock, $0.01 par value (the "Common Stock") of the Company and on a parity with the holders of any other series of preferred stock as to the payment of dividends and distribution of assets.
Liquidation Preference. Upon liquidation, dissolution or winding up of the Company, holders of Series C Preferred Stock are entitled to be paid out of the assets of the Company an amount per share of Series C Preferred Stock equal to the greater of: (i) the original issue price of the Series C Preferred Stock, plus all accumulated but unpaid dividends; or (ii) the fair market value of the Series C Preferred Stock on an as-converted to Common Stock basis, plus all accumulated but unpaid dividends.
--------------------------------------------------------------------------------
Voting. Each holder of Series C Preferred Stock is entitled to one vote per share at each meeting of stockholders of the Company with respect to any and all matters presented to the stockholders of the Company.
Dividends. Dividends will be paid on the Series C Preferred Stock when, as and if declared by the Board of Directors, but only out of funds that are legally available therefor, in quarterly cash dividends at the rate of eighteen percent (18%) per annum of the sum of the Series C Original Issue Price of $650 per share, provided, however, that if the Company reports in an SEC filing that it has achieved positive Earning Before Interest, Taxes, Depreciation and Amortization for two consecutive fiscal quarters, the quarterly cash dividend shall be changed from eighteen percent (18%) per annum to twelve percent (12%) per annum of the sum of the Series C Original Issue Price effective two weeks after notice of such change is transmitted to holders of the Series C Preferred Stock.
Conversion. Each share of Series C Preferred Stock is currently convertible, at the option of the holder, into 1,000 shares of Common Stock based on a conversion price equal to $0.65 per share of Common Stock (the "Series C Conversion Price"). The Series C Conversion Price is subject to adjustment for stock dividends, stock splits and other similar recapitalization events.
In addition, each share of Series C Preferred Stock shall automatically be converted into shares of Common Stock, based on the then-effective Series C Conversion Price, (A) if the closing price of the Common Stock as reported on the Nasdaq Capital Stock Market (or on such other public securities trading market, such as the OTC Bulletin Board, as then constitutes the primary trading market for the Common Stock) is equal to or greater than two times the Series C Conversion Price then in effect (the "Series C Automatic Conversion Price"), for a period of twenty (20) consecutive business days, or (B) at any time upon the affirmative election of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the outstanding shares of the Series C Preferred Stock, or (C) upon the earliest to occur of (x) the closing of a firmly underwritten public offering pursuant to an effective registration statement under the Securities Act covering the offer and sale of Common Stock for the account of the Company in which (i) the per share price is at least two times the Series C Automatic Conversion Price and (ii) the cash proceeds to the Company (before underwriting discounts, commissions and fees) are at least ten million dollars ($10,000,000).
The foregoing summary of the terms of the Certificate is subject to, and qualified in its entirety, by the Certificate of Designation of Series C Convertible Preferred Stock, which is attached to this Current Report on Form 8-K as Exhibit 3.1 and is incorporated herein by reference.
--------------------------------------------------------------------------------
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Description
3.1 Certificate of Designation of Series C Convertible Preferred Stock
10.1 Form of Securities Purchase Agreement
99.1 Consent Letter from Wachovia Bank, N.A.
Up 34% on volume, can't see news either... Interesting.
Thanks, I didn't realize the CEO was selling shares... Amazing, his co is in difficulties and he's selling? So much for leadership, imo.
Imo it was having a difficult time recovering prior to this, and the delisting is still on the agenda of the SEC. I believe this broke the proverbial straw. Fuel's history is indicative to this kind of activity, and even though it serves a niche, investors saw to much of it, and imo even if it gets a surge it will be shortlived. Whatever happens now will dictate whether the delisting takes effect, typically the companies have to keep at least a dollar or above for a period of 30 days and this hasn't happened.
The appeal process is something most of them do as a course of action, and only a small percentage recovers from this.
The next phase is to do a reverse split, but this typically causes a sell off, and then there is the otherside of this is the unknowns, investors don't like r/s's, and the companies sharecount is low enough that it should not have to propose one, and if it does, and it doesn't hold thats the last leg, and maybe to the BB or pinks, and having been on the Nas investors don't look for the company to ever be anymore than what its become. Its seldom to never to return back to a senior. Last but least is to return to the private sector, but then the company would have to buy the shareholders out. Fuel is to dependent on the market and I believe this is what causes to many of these companies to ultimately fail.
"Bubbles are Good For You !"
We can see this in the stocks price decline in the same period. Consistent selling throughout the month of May, and with it begins this downward slope.
"Bubbles are Good For You !"
Even with this guidance it hasn't been helping. I think what hurt us the most was that S-3 the Ceo filed. The stock price could not support it.
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=5968548
This prospectus relates to the proposed resale by the selling stockholders identified in this prospectus (each a “Selling Stockholder” and collectively, the “Selling Stockholders”) of 6,572,000 shares of common stock (the “Shares”) of SMF Energy Corporation. The Shares now offered for resale include 4,587,000 common shares issuable upon the conversion of the Series A Convertible Preferred Stock issued in a private placement in February 2008 (the “Series A Preferred Stock”) and 1,985,000 common shares issuable upon the conversion of the Series B Convertible Preferred Stock issued in a private placement in March 2008 (the “Series B Preferred Stock,” and together with the Series A Preferred Stock, the “Preferred Stock”).
This offering is not being underwritten. The offering price of the Shares that may be sold by Selling Stockholders may be the market price for our common stock prevailing at the time of sale on the Nasdaq Capital Market, a price related to the prevailing market price, a negotiated price or such other prices as the Selling Stockholders determine from time to time.
We will not receive any proceeds from the sale of the Shares by any of the Selling Stockholders.
Our common stock is listed on the Nasdaq Capital Market under the symbol “FUEL.” On May 28, 2008, the closing price of our common stock was $0.80 per share.
SMF Energy Corporation Announces Financial Guidance for Fiscal 2008 and 2009
Date : 07/09/2008 @ 10:19AM
Source : Business Wire
Stock : SMF Energy Corporation (FUEL)
Quote : 0.485 0.015 (3.19%) @ 8:00PM
SMF Energy Corporation Announces Financial Guidance for Fiscal 2008 and 2009
SMF ENERGY CORPORATION, (NASDAQ:FUEL), a leading provider of petroleum product distribution services, transportation logistics and emergency response services to the trucking, construction, utility, energy, chemical, manufacturing, telecommunication and government service industries, today announced financial performance guidance for its fourth quarter and fiscal year ended June 30, 2008, and for fiscal 2009, including the first quarter ending September 30, 2008.
The Company reported that recent growth in new customers of mobile fueling services to reduce their overall fueling costs in the face of historically high fuel prices is enhancing the turnaround of its financial performance which began with the completion of the Company’s new ERP system in December 2007.
The Company believes that the trend of improving financial performance, which began with the quarter ended March 31, 2008, when the Company’s net loss was reduced to $1.398 million and EBITDA was a positive $277,000, as compared to the prior quarter’s net loss of $1.986 million and negative EBITDA of $387,000, continued in the quarter ended June 30, 2008. The Company currently expects that it will report a net loss of approximately $300,000 for the fourth quarter, a $1.1 million improvement from the prior quarter, and EBITDA of $1.1 million, an improvement of more than $800,000 for the quarter. The Company’s fiscal 2008 results are subject to a year end audit.
While the Company has not historically provided guidance or published projections with respect to its future financial performance, the Company believes that the marked change in the Company’s anticipated financial performance warrants such disclosure at this time. Based on the current positive trends, the Company believes that it will report positive net earnings for the quarter ending September 30, 2008 and that it will generate between $5 million and $6 million of EBITDA in fiscal 2009. These projections do not include any potential contribution to earnings or EBITDA that may result from future acquisitions or from the conversion of debt or preferred stock to shares of the Company’s common stock.
The following schedule summarizes the Company’s reported and projected selected financial data for fiscal 2008 and 2009 and includes a reconciliation of EBITDA, a Non-GAAP measure, to net income: SMF Energy Corporation Summary of Reported and Projected Selected Financial Data Prepared: July 7, 2008 (In thousands of USD) Fiscal Year 2007 Q1 Q2 Q3 Q4 Fiscal Year 2008 Fiscal Year 2009 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Jun-08 Jun-09 As Reported As reported As reported As reported Projection Projection Projection (2) Net Income (Loss) $ (6,589) $ (3,019) $ (1,986) $ (1,398) $ (300) $ (6,703) $(600) to $400 EBITDA (1) $ 252 $ 196 $ (387) $ 277 $ 1,100 $ 1,186 $5,000 to $6,000 EBITDA (a non-GAAP measure) reconciliation: Net Income (Loss) $ (6,589) $ (3,019) $ (1,986) $ (1,398) $ (300) $ (6,703) $(600) to $400 Add back: Interest Expense 3,727 778 782 780 632 2,972 2,396 Depreciation and Amortization Cost of Sales 1,702 388 380 353 334 1,455 1,476 Selling General and Administration 921 282 304 311 314 1,211 1,248 Stock based compensation amortization expense 491 126 133 123 120 502 480 Loss on Extinguishment of Debt - 1,641 - 108 - 1,749 - EBITDA $ 252 $ 196 $ (387) $ 277 $ 1,100 $ 1,186 $5,000 to $6,000 Notes: (1) EBITDA is earnings before interest, taxes, depreciation and amortization, including amortization of stock based compensation. To the extent that loss on extinguishment of debt constitutes the recognition of previously deferred interest, it is treated as interest expense.
(2) Fiscal Year 2009 Projection excludes any potential acquisitions About SMF Energy Corporation (NASDAQ:FUEL) The Company is a leading provider of petroleum product distribution services, transportation logistics and emergency response services to the trucking, manufacturing, construction, shipping, utility, energy, chemical, telecommunication and government services industries. The Company provides its services and products through 26 locations in the ten states of Alabama, California, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas. The broad range of services the Company offers its customers includes commercial mobile and bulk fueling; the packaging, distribution and sale of lubricants; integrated out-sourced fuel management; transportation logistics and emergency response services. The Company’s fleet of custom specialized tank wagons, tractor-trailer transports, box trucks and customized flatbed vehicles delivers diesel fuel and gasoline to customers’ locations on a regularly scheduled or as needed basis, refueling vehicles and equipment, re-supplying fixed-site and temporary bulk storage tanks, and emergency power generation systems; and distributes a wide variety of specialized petroleum products, lubricants and chemicals to its customers. In addition, the Company’s fleet of special duty tractor-trailer units provides heavy haul transportation services over short and long distances to customers requiring the movement of over-sized or over-weight equipment and manufactured products. More information on the Company is available at www.mobilefueling.com.
Forward Looking Statements This press release includes “forward-looking statements” within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Because these statements depend on assumptions as to future events, they should not be relied on by shareholders or other persons in evaluating the Company. Among those assumptions are the absence of audit adjustments for fiscal 2008, continuing operational and financial improvements in fiscal 2009 and the absence of unforeseen reductions in demand for mobile fueling services or the Company’s other products and services. Although management believes that these and other assumptions reflected in such forward-looking statements are reasonable, actual results could differ materially from those projected. In addition, there are risks and uncertainties which could cause future events to differ from those anticipated by the Company, including but not limited to those cited in the “Risk Factors” section of the Company’s Form 10-K for the year ended June 30, 2007 and in the Form 10-Q for the quarter ended March 31, 2008.
"Bubbles are Good For You !"
SMF Energy Corporation Enters into Multi-Year Lubrication Marketers Agreement with Chevron
7/25/2008 FORT LAUDERDALE, Fla.
SMF ENERGY CORPORATION, (FUEL), a leading provider of specialized transportation and distribution services for petroleum products and chemicals, today announced that its wholly owned subsidiary, H & W Petroleum Company, Inc., has entered into a multi-year Lubrication Marketer Agreement with Chevron Products Company, a division of Chevron U.S.A. Inc., to market Chevron branded lubricants. The Company's similar agreement with Chevron U.S.A. for its Texaco brand of lubricants which was entered into in 2005 also remains in place.
Chevron Global Lubricants North America had previously announced that it was combining the Chevron and Texaco Commercial and Industrial (C & I) lubricant brands under the Chevron master brand name, with the exception of its consumer product offerings marketed under the Texaco Havoline(R) product line, which will continue to be marketed through its Texaco Xpress Lube(R) network and its other marketing channels. Richard E. Gathright, President and CEO commented, "As recently reported in Fortune Magazine, Chevron is the 6th largest company in the U.S. by revenue, with over $200B in sales. The consolidation of the Chevron and Texaco brands and product lines is an exciting development for the Company and specifically our Mid-Continent Division lubricant operations in Texas. The addition of the Chevron brand fills in some product gaps in the Texaco line, allowing us to provide our customers with the broadest possible commercial and industrial product line. Our customers will also benefit from Chevron's retention of all its prior Texaco formulations by re-branding them as Chevron, averting any potential product conversion issues for our customers. In addition, we are pleased to add the Chevron Delo(R) HDMO product line, which will complement our former Texaco, now Chevron, Ursa(R) Super Plus heavy duty offering, since the Delo(R) line of heavy duty motor oils is the market leader in brand recognition." Gathright continued, "Chevron is recognized as a market leader in the production and marketing of commercial, industrial and consumer lubricants. With this consolidation, Chevron will have a single branded product line that will allow us to provide a single source solution for our customers. We will be able to leverage the strength of both brands in specific applications and offer a more inclusive product line, while providing assurance of the historical Texaco product formulations to those customers who have come to rely on them in their applications. The addition of the Chevron product line to our Texaco portfolio will allow us to reach out to new bases of business that in the past would have required multiple vendors."
The charts look great, I think its just a matter of time and this could double in day. The Ceo no doubt made the right decisions, and the market is responding to it. The stock is cheap, and he is keeping a lid on the sharecount.
Very nice volume here today, certainly looks like it wants to increase value :)
Thank you for this pick Makes...
been buying over the past couple of months. Nice to be in this as it finds it's increasing value!
Loofman
This will no doubt become the Industry standard, the dry cleaning products we are familiar with are terrible, and create all kinds of health risk to humans and the enviroment, and expensive to dispose of. I am not even sure how the plants dispose of this stuff?........We have a huge dry cleaning plant here in Milwaukee, just think of the cost savings to these businesses, and who knows maybe this can get passed on to the customer. Good Post.
<<Making money is what its all about and the Ceo must have realized the end wouldn't provide the means. Guess we will have to wait for some further updates to see what his future plans are?. Looks like Fuel becoming a distributor for this new product is one means of generating more revenue.......its one of kind.:))))>>
I hear what you're saying... we don't need "expensive" growth...imo. Did you see the post about Davig's on DrySolv? They're pretty excited... and FUEL just got 9 states to supply, incl CA..!
http://www.ensolv.com/products.htm
Press Release, March 21, 2008 - Boeing St. Louis (McDonald-Douglas) approved EnSolv 5408 Precision Solvent to their PS 12020 Rev. Y Aerospace Vapor Degreasing Specification. EnSolv 5408 is the only nPB degreasing solvent approved for commercial and/or military applications. http://www.ensolv.com/P_ensolv5408.htm
Container Specifications:
EnSolv-5408 is available in 1, 5, 30 and 55 gallon containers.
The weight of this product is approximately 11 pounds per gallon.
Press Release, February 5, 2008 - Boeing has issued PSDS 6-62 to supersede the previously released PSDS 6-59 allowing the use of EnSolv-5408 as an alternative vapor degreasing solvent to TCE and PERC. The updated PSDS 6-62 further permits the addition of EnSolv-Spec 490 stabilizer booster, which replenishes the proprietary stabilizer mixture within the EnSolv-5408 solvent, thus prolonging it's useful life in certain rigorous usage scenarios.
News Archive >
Press Release, May 30, 2007 - A final rule: N-Propyl Bromide (EnSolv) is acceptable as a substitute for ozone depleting compounds when used as a cleaning solvent in industrial equipment. The rule has been issued by the Significant New Alternatives Policy Program (SNAP) of the U.S. EPA. For more information, the final rule document can be found at the following link:
http://www.epa.gov/fedrgstr/EPA-AIR/2007/May/Day-30/a9707.pdf
Press Release, February 12, 2007 - Enviro Tech International, Inc., Melrose Park, IL, the manufacturer of EnSolv Precision Cleaning Solvents and Baron-Blakeslee Vapor Degreasing Equipment, has acquired the assets of FARR Manufacturing & Engineering Company, Bowling Green, KY and Williamstown, WV. The purchase was approved in Federal District Court on February 9, 2007.
FARR Manufacturing & Engineering Company located in Williamstown, WV will become the manufacturing center for the Baron Blakeslee Division of Enviro Tech International, Inc. The Bowling Green, KY location will become the Engineering & Technical Center for the Baron Blakeslee Division of Enviro Tech International, Inc. The Baron Blakeslee Division will continue to manufacture equipment formerly made under the FARR name. This includes vapor degreasing systems, solvent recovery systems, parts washers, aqueous cleaning systems, heat treating furnaces, industrial & laboratory ovens and textile fiber processing equipment.
Please stay tuned as the Baron Blakeslee website is updated to reflect the expanded product line acquired from the FARR Manufacturing & Engineering Company.
Press Release, February 3, 2006 - Enviro Tech has acquired the Baron Blakeslee Company. Baron Blakeslee is the most widely recognized, respected and enduring names in vapor degreasing & cleaning systems for over 75 years. This acquisition will allow Enviro Tech to provide the most reliable and affordable total package cleaning solutions with the best in vapor degreasing equipment, cleaning chemistry and technical support. Please take a few moments to visit the all new Baron Blakeslee website at www.baronblakeslee.com.
Please continue to revisit our web site for regular news updates, new product releases, to check on the status of new approvals and to read our quarterly newsletter.
Please stay tuned as the Baron Blakeslee website is updated to reflect the expanded product line acquired from the FARR Manufacturing & Engineering Company.
Initially I thought it was a good idea, but I had begun to question the real profitability of it?. If Fuel would have had enough cash to buy it outright then it would have been terrific.
The refinery requires quite a few employee's, and salaries that have to be covered, and then there is the dreaded S-8's till the company is generating enough revenue to support it, then there's the debt which would require cash and stock, and whatever other terms of agreements. Then the other issues are maintenance, and how much work and new components would be needed to perhaps bring it back into compliance?. From what I understood it had not been operating for a while. The refinery supported jobs in the area when it was in full operation, and this was great for the people of that area.
The Ceo apparently is looking toward other means of gaining real profitability without taking on debt. All in all over the weeks of questioning all this I think this may have been the right decision, something better may come down the road. Making money is what its all about and the Ceo must have realized the end wouldn't provide the means. Guess we will have to wait for some further updates to see what his future plans are?. Looks like Fuel becoming a distributor for this new product is one means of generating more revenue.......its one of kind.:))))
Looks like a good 1/4 to me. Pity about the refinery though...
SMF Energy Corporation Reports Results for the Third Quarter Ended March 31, 2008
Thursday 05/15/2008 10:21 PM ET - Businesswire
Related Companies
Symbol Last %Chg
FUEL 0.80 2.56%
As of 12:03 PM ET 5/19/08
SMF ENERGY CORPORATION, (NASDAQ: FUEL) (the "Company"), a leading provider of specialized transportation and distribution services for petroleum products and chemicals, today announced the results for the third quarter ended March 31, 2008.
Highlights for the fiscal 2008 third quarter vs. the comparable fiscal 2007 quarter:
-- Revenues were $64.2 million, a 24% increase from $51.8 million
-- Net loss decreased $1.2 million to $1.4 million from $2.6 million or 47%
-- Non-cash charges were $971,000, down from $1.4 million
-- Net margin per gallon increased to 17.8 cents from 14.3 cents
-- EBITDA, a non-GAAP measure, increased by $1.1 million to a positive $277,000 from a loss of $787,000
Highlights for the fiscal 2008 third quarter vs. the fiscal 2008 second quarter:
-- Revenues were $64.1 million up by 9%
-- Selling, General and Administrative expenses were lower by $343,000 or 9%
-- Net loss decreased by $588,000 to $1.4 million from $2.0 million or 30%
-- EBITDA improved by $664,000 from a negative $387,000 to positive a $277,000.
-- Improved balance sheet, lowering debt obligations by $3.8 million via the exchange of notes for preferred stock.
Richard E. Gathright, Chairman, Chief Executive Office and President, commented:
"We are pleased with the improvements in our operating results for the third quarter. We have reduced our net loss by $1.2 million from a year ago and $588,000 from our last quarter while generating a $1.1 million turnaround in the EBITDA stream over the same period last year and $664,000 since the second quarter of this year. We expect this positive performance trend to continue in our fourth quarter.
"We are now seeing the positive results from the ERP system and infrastructure investments we have made over the last two years. Although these investments negatively impacted our financial performance during that time, they are now allowing us to reduce our operating costs while providing our customers with enhanced services, including the timeliest billing and the most detailed reporting in the industry. As a result, in the third quarter of 2008 we improved the service we provided to our customers while our SG&A declined $632,000 from last year.
"We know that our over 4,000 fuel, lubricant and chemical customers are implementing every strategy available to them to deal with escalating operating costs as fuel prices have increased on average an estimated 59% during the last twelve months. Notwithstanding the impact of these higher fuel prices, which flow through to our refueling customers, more and more, new and old customers are recognizing the benefits of the logistics systems and services that we offer as an outsourced cost reduction solutions benefit. This recognition, and the investments in our ERP system and infrastructure, have enabled us to target and develop new business with higher overall net margins per gallon, contributing to our $397,000 gross profit increase during this quarter over last year."
The following table portrays the positive trend and progress the
Company has achieved in the sequential quarters:
For the three months ended
---------------------------------
March 31, June 30, September 30,
2007 2007 2007
--------- -------- --------------
Net loss $(2,618) $(1,614) $(3,019)
========= ======== ==============
EBITDA (1) $ (787) $ 127 $ 196
========= ======== ==============
Selling, general and administrative
expenses $ 4,077 $ 3,950 $ 3,803
========= ======== ==============
Net margin per gallon (2) $ 0.14 $ 0.17 $ 0.19
========= ======== ==============
Gallons sold 20,407 19,678 18,695
========= ======== ==============
For the three months ended
-----------------------------------
December 31, March 31,
2007 2008
------------ ---------
Net loss $(1,986) $(1,398)
============ =========
EBITDA (1) $ (387) $ 277
============ =========
Selling, general and administrative
expenses $ 3,788 $ 3,445
============ =========
Net margin per gallon (2) $ 0.16 $ 0.18
============ =========
Gallons sold 18,050 18,102
============ =========
(1) We define EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and loss on extinguishment of debt, a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. EBITDA is commonly defined as earnings or loss before interest, taxes, depreciation and amortization. We believe that EBITDA, as we define it, provides useful information to investors because it excludes transactions not related to the core cash operating business activities. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations. All companies do not calculate EBITDA in the same manner, so EBITDA as presented by us may not be comparable to EBITDA presented by other companies.
The following table reconciles EBITDA to the net loss for each of the
five quarterly periods presented above:
For the three months ended
---------------------------------
March 31, June 30, September 30,
2007 2007 2007
--------- -------- --------------
Net loss $(2,618) $(1,614) $(3,019)
Add back:
Interest expense, net of
interest income
1,023 919 778
Depreciation and amortization
expense:
Cost of sales 436 386 388
Selling, general and
administrative expenses
219 249 282
Stock-based compensation
amortization expense
153 187 126
Loss on extinguishment of debt - - 1,641
--------- -------- --------------
EBITDA $ (787) $ 127 $ 196
========= ======== ==============
For the three months ended
----------------------------------
December 31, March 31,
2007 2008
------------ ---------
Net loss $(1,986) $(1,398)
Add back:
Interest expense, net of
interest income
782 780
Depreciation and amortization
expense:
Cost of sales 380 353
Selling, general and
administrative expenses
304 311
Stock-based compensation
amortization expense
133 123
Loss on extinguishment of debt - 108
------------ ---------
EBITDA $ (387) $ 277
============ =========
(2) Net margin per gallon is calculated by adding gross profit to the cost of sales depreciation and amortization and dividing that sum by the number of gallons sold.
The following tables present comparative financial data for the
periods noted:
SELECTED INCOME STATEMENT AND FINANCIAL DATA
(Unaudited)
(All amounts in thousands of dollars, except per share, and net margin
per gallon)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------ -------------------
2008 2007 2008 2007
--------- -------- --------- ---------
Total revenues $64,162 $51,817 $178,653 $172,243
Total cost of sales 61,287 49,339 170,031 162,533
--------- -------- --------- ---------
Gross profit 2,875 2,478 8,622 9,710
Selling, general and
administrative expenses 3,445 4,077 11,036 11,886
--------- -------- --------- ---------
Operating loss (570) (1,599) (2,414) (2,176)
Interest expense (780) (1,023) (2,340) (2,808)
Other income 60 4 100 9
Loss on extinguishment of
promissory notes (108) - (1,749) -
--------- -------- --------- ---------
Net loss $(1,398) $(2,618) $ (6,403) $ (4,975)
========= ======== ========= =========
Basic and diluted net loss per
share computation:
Net loss $(1,398) $(2,618) $ (6,403) $ (4,975)
Less: Preferred stock
dividends (56) - (56) -
--------- -------- --------- ---------
Net loss attributable to
common stockholders $(1,454) $(2,618) $ (6,459) $ (4,975)
========= ======== ========= =========
Basic and diluted net loss per
share attributable to common
stockholders $ (0.10) $ (0.23) $ (0.45) $ (0.46)
========= ======== ========= =========
Basic and diluted weighted
average common shares
outstanding 14,556 11,600 14,438 10,867
========= ======== ========= =========
EBITDA (non-GAAP measure) $ 277 $ (787) $ 86 $ 125
========= ======== ========= =========
Gallons sold 18,102 20,407 54,847 65,204
========= ======== ========= =========
Net margin $ 3,229 $ 2,915 $ 9,743 $ 11,026
========= ======== ========= =========
Net margin per gallon $ 0.18 $ 0.14 $ 0.18 $ 0.17
========= ======== ========= =========
(1) Net margin per gallon is calculated by adding gross profit to the cost of sales depreciation and amortization and dividing that sum by the number of gallons sold.
RECONCILIATION OF NET LOSS TO EBITDA
for the nine month comparative periods ending on March 31, 2008 and
2007
(Unaudited, non-GAAP measure)
(All amounts in thousands of dollars)
Nine Months Ended
March 31,
------------------
2008 2007
-------- --------
Net loss $(6,403) $(4,975)
Add back:
Interest expense 2,340 2,808
Depreciation and amortization expense:
Cost of sales 1,121 1,316
Selling, general and administrative expenses 897 672
Stock-based compensation amortization expense 382 304
Loss on extinguishment of debt 1,749 -
-------- --------
EBITDA $ 86 $ 125
======== ========
CONDENSED CONSOLIDATED BALANCE SHEET
(All amounts in thousands of dollars)
(Unaudited)
March 31, June 30,
2008 2007
----------- --------
ASSETS
Current assets $27,079 $29,183
Property, plant and equipment, net 10,478 10,017
Other assets, net 3,337 4,725
----------- --------
$40,894 $43,925
=========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 28,056 29,015
Long-term debt, net and other liabilities 9,250 10,796
Stockholders' equity 3,588 4,114
----------- --------
$40,894 $43,925
=========== ========
On March 14, 2008, the Company announced that it signed a non-binding letter of intent to combine with Lazarus Energy, LLC, the owner of a petroleum refinery in Nixon, Texas, and that a definitive agreement for the transaction was expected to be finalized on or before May 31, 2008. By its terms, the letter of intent will terminate if the definitive agreement is not signed by that date. The Company does not expect to enter into a definitive agreement with Lazarus or its parent by the deadline or to extend the letter of intent beyond that date.
CONFERENCE CALL
Management will host a conference call on Friday, May 16, 2008, at 2:00 P.M. ET, to further discuss the results of the Company's third quarter ended March 31, 2008. Interested parties can listen to the call live on the Internet through the Company's Web site at www.mobilefueling.com or by dialing 888-713-4216 (domestic) or 617-213-4868 (international), using Pass Code 41143968. Listeners should dial in to the call at least 5-10 minutes prior to the start of the call or should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/ key.process?key=PWM4QB6W8. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection. In addition, the Web cast is also available through Thomson's investor portals. Individual investors can listen to the call at www.earnings.com, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com). A telephone replay of the conference call will be available from May 16, 2008, at 4:00 p.m. ET until midnight ET on May 23, 2008, by dialing 888-286-8010 (domestic) or 617-801-6888 (international), using Pass Code 67604621. A web archive will be available for 30 days at www.mobilefueling.com.
The refinery is off the table. May be for good reasons considering the purchase amount, and the employee's salaries that would cost to operate it, and who knows what else.
SMF Energy Corporation Expands Exclusive Distribution Agreement for ''Green'' Alternative Dry Cleaning Solvents into 9 States
Friday 05/16/2008 12:06 PM ET - Businesswire
Related Companies
Symbol Last %Chg
FUEL 0.76 -2.56%
As of 11:03 AM ET 5/19/08
SMF Energy Corporation, (NASDAQ:FUEL) (the "Company"), a leading provider of specialized transportation and distribution services for petroleum products and chemicals, today announced that it has entered into an agreement with Enviro Tech International, Inc., the manufacturer of DrySolv(TM), to be the exclusive distributor and sales agent of its patented environmentally friendly "Green" dry cleaning solvent, soap, and spotting chemicals in the states of Arizona, California, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Texas.
DrySolv(TM) is a non-hazardous, non-chlorinated, non-flammable and environmentally friendly direct alternative cleaner to Perchloroethylene (PERC) and other hazardous or flammable solvents predominately used in the dry cleaning business today. The use of DrySolv(TM) enhances employee safety, produces non-hazardous waste, reduces operating costs, and delivers exceptional cleaning performance when compared to the traditional use of PERC and related cleaning processes. SMF has acted as a non-exclusive distributor of DrySolv(TM) and related products in the states of Texas, Florida, Georgia and North Carolina since October 2007.
Richard E. Gathright, President and CEO, stated,"We are truly excited about becoming the exclusive distributor of this unique and proprietary product in a total of nine states, particularly California, which is a leader in environmental legislation and consumes an estimated 40% of all dry cleaning solvents in the United States. We are confident that the dry cleaning industry is ready for an alternative to the hazardous chemicals commonly used today, especially in light of the increasing environmental and regulatory requirements that could lead to a drastic reduction, or even the elimination, of these hazardous products over the next few years."
Gathright continued, "The dry cleaning establishment count in the US is estimated at approximately 33,000 locations. Based on studies conducted over the last ten years by multiple federal and state agencies, including the Census Bureau, EPA and CARB, of this number, roughly 82%, or 27,000 locations, use PERC, widely acknowledged to be a hazardous substance, in one or more machines on a daily basis. It is estimated that each of these establishments purchases between 5 and 55 gallons per month of cleaning solvent(s) and related products, depending on machine size, age, volume (thru put) and location. The territory covered by our expanded and exclusive agreement with Enviro Tech includes more than 10,000 of these establishments nationwide, or roughly 37% of the machines convertible from PERC to the DrySolv(TM) solvent, soap and spotting chemicals. This translates to a market potential of approximately 2,500,000 gallons on an annualized basis."
Gathright concluded,"We believe in the bright future for this product and the contribution it can make to our revenues and profits. Our implementations in Texas and Florida, to date, have generated great enthusiasm with facility owners/operators about these products and their potential to reduce overall operating costs, improve the workplace and benefit the environment. With this new agreement, we are dramatically accelerating our marketing efforts to take advantage of this significant opportunity."
About SMF Energy Corporation (NASDAQ:FUEL)
Davig's Drycleaners on DrySolv...
http://davigscleaners.com/favorite.htm
SMF Energy Corporation Expands Exclusive Distribution Agreement for ''Green'' Alternative Dry Cleaning Solvents into 9 States
May 16, 2008 SMF Energy Corporation, a leading provider of specialized transportation and distribution services for petroleum products and chemicals, today announced that it has entered into an agreement with Enviro Tech International, Inc., the manufacturer of DrySolv(TM), to be the exclusive distributor and sales agent of its patented environmentally friendly "Green" dry cleaning solvent, soap, and spotting chemicals in the states of Arizona, California, Florida, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Texas. DrySolv(TM) is a non-hazardous, non-chlorinated, non-flammable and environmentally friendly direct alternative cleaner to Perchloroethylene (PERC) and other hazardous or flammable solvents predominately used in the dry cleaning business today. The use of DrySolv(TM) enhances employee safety, produces non-hazardous waste, reduces operating costs, and delivers exceptional cleaning performance when compared to the traditional use of PERC and related cleaning processes. SMF has acted as a non-exclusive distributor of DrySolv(TM) and related products in the states of Texas, Florida, Georgia and North Carolina since October 2007. Richard E. Gathright, President and CEO, stated,"We are truly excited about becoming the exclusive distributor of this unique and proprietary product in a total of nine states, particularly California, which is a leader in environmental legislation and consumes an estimated 40% of all dry cleaning solvents in the United States. We are confident that the dry cleaning industry is ready for an alternative to the hazardous chemicals commonly used today, especially in light of the increasing environmental and regulatory requirements that could lead to a drastic reduction, or even the elimination, of these hazardous products over the next few years." Gathright continued, "The dry cleaning establishment count in the US is estimated at approximately 33,000 locations. Based on studies conducted over the last ten years by multiple federal and state agencies, including the Census Bureau, EPA and CARB, of this number, roughly 82%, or 27,000 locations, use PERC, widely acknowledged to be a hazardous substance, in one or more machines on a daily basis. It is estimated that each of these establishments purchases between 5 and 55 gallons per month of cleaning solvent(s) and related products, depending on machine size, age, volume (thru put) and location. The territory covered by our expanded and exclusive agreement with Enviro Tech includes more than 10,000 of these establishments nationwide, or roughly 37% of the machines convertible from PERC to the DrySolv(TM) solvent, soap and spotting chemicals. This translates to a market potential of approximately 2,500,000 gallons on an annualized basis." Gathright concluded,"We believe in the bright future for this product and the contribution it can make to our revenues and profits. Our implementations in Texas and Florida, to date, have generated great enthusiasm with facility owners/operators about these products and their potential to reduce overall operating costs, improve the workplace and benefit the environment. With this new agreement, we are dramatically accelerating our marketing efforts to take advantage of this significant opportunity."
Oil nears $123 on $200 oil prediction, supply concerns
Tuesday May 6, 5:32 pm ET
By John Wilen, AP Business Writer
Oil prices rise to record near $123 a barrel on prediction of $200 oil, supply concerns
NEW YORK (AP) -- Oil futures blasted to a new record near $123 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.
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A new Goldman Sachs prediction that oil prices could rise to $150 to $200 within two years seemed to motivate much of Tuesday's buying, although a falling dollar and increasing concerns about declining crude production in Mexico and Russia contributed, analysts say.
The Energy Department raised its oil and gasoline price forecasts, but also predicted that high prices will cut demand more than previously thought.
Light, sweet crude for June delivery jumped to a new record of $122.73 a barrel before retreating to settle up $1.87 at a record $121.84 on the New York Mercantile Exchange.
Oil prices have nearly doubled from about $62 a barrel a year ago, which Goldman sees as a sign that the world is in the midst of a "super spike" in oil prices. Analyst Arjun Murti said in a research note released Monday that prices would ultimately force demand to fall sharply.
Not everyone shares Goldman's view. Tim Evans, an analyst at Citigroup Inc., countered Goldman's analysis with a note predicting that crude prices could as easily fall to $40 a barrel as rise to $200 over the next two years because supplies are, as Evans put it, comfortable.
James Cordier, president of Tampa, Fla., trading firms Liberty Trading Group and OptionSellers.com, said Goldman's prediction isn't necessarily new: "We've heard numbers like these out of Goldman Sachs, especially over the last 12 months."
Indeed, it's not the first time Murti has espoused a super spike theory; in an April 2005 note, he predicted the oil market was in the early stages of an unprecedented rally that would send prices from a then-record of about $57 a barrel to $105.
But some investors respond to such predictions by buying, Cordier said.
Meanwhile, in a monthly report, the Energy Department's Energy Information Administration predicted oil prices will average $110 a barrel this year, up $9 from last month's forecast. The EIA also said high prices will cut U.S. demand for petroleum products by 330,000 barrels a day this year; last month, the EIA predicted U.S. petroleum consumption would fall by 210,000 barrels a day.
But strong demand for oil from countries such as China, India, Russia, Brazil and in the Middle East will support high prices and keep global oil demand growing by about 1.2 million barrels a day this year, unchanged from last month's forecast, the EIA said.
A falling dollar on Tuesday also gave traders reason to buy. Investors often buy commodities such as oil as a hedge against inflation when the dollar falls, and a weaker greenback makes oil cheaper to investors overseas. Many analysts feel the dollar's protracted decline is the real reason oil prices have nearly doubled since last year.
Cordier said investors are also increasingly concerned about falling oil production in Russia and Mexico, which are major oil producers. And prices are still supported by concerns about supply disruptions in Nigeria, where production at a Royal Dutch Shell PLC facility was cut after a weekend attack, and in Iraq, where Kurdish rebels warned they could launch suicide attacks against American interests to punish the U.S. for sharing intelligence with Turkey after Turkey bombed rebel bases in Iraq on Friday.
At the pump, meanwhile, the national average price of a gallon of regular gas slipped 0.1 cent overnight to $3.61, according to AAA and the Oil Price Information Service. Analysts are split over how high gas will go; while prices have slipped lower since May 1, leading some analysts to say gas is close to peaking, others predict the fuel will follow oil's upward surge.
"You're going to see new highs for gas prices, probably for the weekend," said Cordier, who predicts an average price of $4 a gallon in the coming weeks.
In its report, the EIA said gas prices will peak at a monthly average of about $3.73 a gallon in June, about 13 cents higher than its previous forecast.
In other Nymex trading Tuesday, June gasoline futures rose 5.26 cents to settle at $3.1055 a gallon after earlier setting a new trading record of $3.126. June heating oil futures rose 4.7 cents to settle at $3.3535 a gallon after rising to their own trading record of $3.3712, and June natural gas futures fell 2.8 cents to settle at $11.15 per 1,000 cubic feet.
In London, June Brent crude futures rose $2.18 to settle at $120.31 a barrel on the ICE Futures exchange.
AP Oil passes $120, gas prices slip more than a cent
Monday May 5, 11:36 am ET
By John Wilen, AP Business Writer
Oil surges past $120 on supply concerns; Gas prices have slid more than a cent since Friday
NEW YORK (AP) -- Oil futures surged to a new record over $120 a barrel Monday as supply threats emerged overseas and the dollar weakened against the euro. Retail gas prices, meanwhile, fell more than a cent over the weekend, offering further evidence that prices may have peaked for the year.
Light, sweet crude for June delivery rose to a new trading record of $120.21 a barrel on the New York Mercantile Exchange Monday before retreating slightly to trade up $3.52 at $119.84.
"The (oil) market is bolstered by news out of Iraq, where Turkish forces have once again been involved in cross-border raids against ... insurgents, and Nigeria, where rebels attacked three oil wells and pipelines feeding (an) export terminal over the weekend," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Conn., in a research note.
Kurdish rebels on Monday warned they could launch suicide attacks against American interests to punish the U.S. for sharing intelligence with Turkey after Turkey bombed rebel bases in Iraq on Friday. Oil traders worry that any conflict in the oil-rich Middle East will cut oil shipments out of Iraq.
In Nigeria, a Royal Dutch Shell PLC spokesman said attackers hit an oil facility belonging to Shell's joint venture in southern Nigeria and that some oil production has been shut down. Nigeria is a major U.S. crude supplier.
Also pushing oil prices higher were concerns about Iran after Supreme Leader Ayatollah Ali Khamenei said Sunday his country will not bend to international pressure and give up its nuclear program. Iran is the second largest producer in the Organization of Petroleum Exporting Countries.
Amid the supply worries, the dollar weakened, giving investors even more reason to buy crude. Many investors buy commodities such as oil as a hedge against inflation when the greenback falls. Also, a weaker dollar makes oil cheaper for overseas investors. Analysts blame the dollar's protracted decline for oil's rise to records near $120 this spring.
At the pump, meanwhile, the average national price of a gallon of regular gas slipped to $3.611 a gallon on Monday, down 1.1 cents from Friday, according to AAA and the Oil Price Information Service. Prices peaked at a record $3.623 a gallon on Thursday.
Associated Press Writers Yahya Barzanji in Iraq, George Jahn in Vienna and Gillian Wong in Singapore contributed to this report.
We should be getting a PR anyday now on an update.
FUEL's Nixon refinery pr really caught my attention also... Watching to get in.
Gas prices rise further above $3.50, while oil nears $120
Tuesday April 22, 10:45 pm ET
By John Wilen, AP Business Writer
Gas prices push further above $3.50 a gallon, while oil nears $120 on weaker dollar
NEW YORK (AP) -- Gas and oil prices pushed further into record high territory Tuesday, with retail gas reaching a national average of $3.51 for the first time and crude nearing $120 as the dollar fell to a new low against the euro.
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At the pump, the national average price of a gallon of regular gas rose 0.8 cent Tuesday to $3.511, according to a survey of stations by AAA and the Oil Price Information Service. Prices for diesel -- used to transport most food, industrial and commercial goods -- also rose overnight to a new record of $4.204 a gallon.
Gas prices are nearly 66 cents higher than last year, when they peaked at a then-record of $3.23 in late May, and have prompted many analysts to raise their estimates of where gas is going to go.
"I wouldn't rule out the possibility that we could get to $4," said Antoine Halff, an analyst at Newedge USA LLC.
Other analysts are less certain. Fred Rozell, retail pricing director at the Oil Price Information Service, thinks gas prices will rise only another 10 cents to 20 cents nationally. That would mean they would peak near $4.15 a gallon in California, where prices are typically highest, and around $3.50 in New Jersey, where they're typically lowest.
Gas prices are rising for many reasons, including oil's record run. Light, sweet crude for May delivery rose to a new trading record of $119.90 before retreating to settle up $1.89 at a record $119.37 a barrel on the New York Mercantile Exchange. The contract expired after the Nymex closed, which contributed to its spike higher as investors scrambled to square bets. June crude futures, which now become the focus of trading, rose $1.44 to settle at $118.07 a barrel, nearly $2 shy of the $120 level.
On Capitol Hill, some lawmakers attempted to escalate scrutiny of oil and gas companies.
"People deserve a more scrupulous cop on the beat in these markets," said Rep. Jay Inslee, D-Wash., who along with Sen. Maria Cantwell, D-Wash., called for the Justice Department to investigate possible market manipulation.
Meantime, Sen. Dianne Feinstein, D-Calif., praised the Bush administration's proposal to increase the average fuel economy for new cars and trucks to 31.6 miles per gallon by 2015.
Soaring gasoline prices show "that we have to move much more aggressively toward improving fuel efficiency and help bring relief to American consumers," she said in a statement.
Many investors see commodities such as oil as a hedge against inflation and a falling dollar. Also, a weaker greenback makes oil cheaper for investors overseas.
The dollar fell Tuesday after the National Association of Realtors said sales of existing homes dropped in March while the median home price declined, raising prospects that the Federal Reserve will cut interest rates further this year to try to shore up the ailing economy. Fed interest rate cuts tend to further weaken the dollar.
Oil also rose on concerns about supply constraints overseas. A Royal Dutch Shell PLC joint venture declared what's known as force majeure on April and May oil delivery contracts from a 400,000-barrel-a-day Nigerian oil field due to a pipeline attack last week. The move protects the company from litigation if it fails to deliver on contractual obligations to buyers.
In Mexico, oil production slipped 7.8 percent in the first quarter to 2.91 million barrels a day as output at the country's oil fields waned, state oil company Petroleos Mexicanos said. In Scotland, workers at Ineos PLC's 196,000 barrel-a-day Grangemouth refinery and petrochemical plant threatened to strike over changes to an employee pension plan.
While gas prices are following oil futures higher, they're also rising because supplies are falling. Refiners are in the process of switching over from making winter grade gasoline to the more-expensive, less-polluting, form of the fuel they're required to sell in summer. That's pushing supplies down as producers try to sell off all of their winter gas.
Gasoline supplies are also being hurt by low profit margins. Refiners have to buy the crude they turn into fuel, but falling demand for gasoline has hurt their ability to raise gas prices as much as they would like. While the average profit margin on gasoline hovers above $10, analysts say margins have gone negative in some parts of the country in recent weeks. In those cases, refiners were actually losing money on every gallon of gas they made. Many refiners have reacting by producing less gas.
"Very high crude prices can constrain gasoline supplies as it hurts the margins," Halff said.
In other Nymex trading Tuesday, May gasoline futures rose 3.73 cents to settle at $3.0164 a gallon after earlier rising to a trading record of $3.025, while May heating oil futures rose 0.55 cent to settle at $3.3169 a gallon after earlier rising to their own trading record of $3.35. May natural gas futures fell 12.6 cents to settle at $10.607 per 1,000 cubic feet.
In London, June Brent crude rose $1.52 to settle at $115.95 a barrel on the ICE Futures exchange.
Associated Press writers Pablo Gorondi in Budapest and Gillian Wong in Singapore contributed to this report.
Gas prices push closer to $3.50 a gallon, oil passes $116
Friday April 18, 2:28 pm ET
By John Wilen, AP Business Writer
Gas prices push closer to $3.50 a gallon, while oil passes $116 on Nigeria attack
NEW YORK (AP) -- Retail gas prices set new records Friday on their seemingly relentless march toward $3.50 a gallon, and diesel prices pushed further above $4 a gallon. Crude futures, meanwhile, surged to a new record over $116 a barrel.
The price of crude oil was pushed higher after a militant group in Nigeria said it had sabotaged a major oil pipeline operated by a Royal Dutch Shell PLC joint venture and promised further attacks on the country's petroleum industry.
A spokeswoman for Shell confirmed that the pipeline was leaking, and said the damage appeared to have been caused by explosives. Nigeria is a major supplier of oil to the U.S.
The escalation in crude prices threatened to further boost gasoline costs.
At the pump, the national average price of regular gas rose 2.7 cents overnight to a record $3.445 a gallon, according to a survey of stations by AAA and the Oil Price Information Service. Diesel fuel added 2.2 cents to a record national average of $4.168 a gallon.
The spike in the cost of fuel is hurting consumers already feeling the effects of a slowing economy, a sluggish job market and falling home values. Soaring prices of diesel, which runs most of the world's trucks, trains, ships and heavy equipment, is a major factor pushing food prices higher.
Some analysts expect gas prices to peak near $3.80 a gallon; the Energy Department, in a recent forecast, said prices could average $4 a gallon nationally at times.
"I would say that energy prices are having the most profound effect on the economy in recent memory," said Phil Flynn, an analyst at Alaron Trading Corp., in Chicago, in a research note.
Oil, meanwhile, pushed to new records.
Light, sweet crude for May delivery rose to a new record of $116.31 on Friday before retreating to trade up $1.19 at $116.05 a barrel on the New York Mercantile Exchange.
Attacks since early 2006 on Nigerian oil infrastructure by the Movement for the Emancipation of the Niger Delta have cut nearly one-quarter of the country's normal petroleum output, boosting oil prices.
Oil's gains on Friday were limited by the dollar, which strengthened against the euro, sending oil prices lower earlier in the day. A stronger dollar makes commodities such as oil less attractive to investors as a hedge against inflation, and it makes oil more expensive to investors overseas. Analysts believe the weaker dollar is the primary reason oil has soared well past $100 a barrel this year.
Analysts expect the Federal Reserve to cut interest rates several more times this year -- moves that tend to further weaken the dollar -- and reason that those cuts will help propel oil to new records.
Oil is not the only factor driving gas prices, which are also rising because refiners are switching from producing winter grade gasoline to the more expensive, but less polluting, version of the fuel they're required to sell during summer. When they do that each spring, they tend to draw supplies down to low levels as they try to sell off all their winter fuel.
Short supplies of alkylate, a blending component key to the creation of summer-grade gas, also have pushed prices higher. Contributing to the price spike, refiners have been cutting back on their production of gasoline, which has a low profit margin. Refiners have to buy the crude they process into gasoline, and soft demand for gas has prevented them from boosting pump prices fast enough to keep up with soaring crude futures.
"The refining margins were poor last month and, as a result, we've seen these voluntary ... or discretionary refining run cuts," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Ill.
Ritterbusch estimates that the average difference between what refiners pay for oil and receive for the gasoline they make from it stands somewhere between $13 and $15 a barrel. But in some areas, this difference has actually gone negative at times in recent weeks, meaning that refiners "were losing money on each barrel of gasoline produced," Ritterbusch said.
In other Nymex trading Friday, May heating oil futures rose 2.03 cents to $3.2877 a gallon while May gasoline futures rose 1.11 cent to $2.9689 a gallon. May natural gas futures rose 19.2 cents to $10.575 per 1,000 cubic feet.
In London, Brent crude futures rose 96 cents to $113.39 a barrel on the ICE Futures exchange.
Associated Press writers Pablo Gorondi in Budapest and Gillian Wong in Singapore contributed to this report.
AP
Gas Prices Hit New Record, Oil Jumps
Wednesday April 9, 11:31 am ET
By John Wilen, AP Business Writer
Gas Prices Hit New Record As Energy Futures Jump Higher on Falling Supplies
NEW YORK (AP) -- The upward trend in energy prices showed no sign of abating Wednesday as gasoline set yet another record at the pump and crude oil approached its own milestone in the futures market.
The national average price of a gallon of regular unleaded gas rose 1.2 cents to a record $3.343 a gallon, according to a survey of gas stations by AAA and the Oil Price Information Service. With the peak of summer driving still to come and gas also following crude higher, the fuel may well reach the retail price of $4 a gallon that the Energy Department has been forecasting.
But prices that are 55 cents higher than a year ago are hurting demand for gasoline, which fell last week by nearly 2 percent from year-earlier levels, the department's Energy Information Administration said in its weekly inventory report. It's not yet known if demand will continue to drop, and if so, if that will affect prices.
The EIA report, closely watched by the futures market, also said crude oil supplies fell by a surprising 3.2 million barrels last week; analysts surveyed by Dow Jones Newswires, on average, had expected an increase of 2.4 million barrels.
That sent light, sweet crude for May delivery up $2.51 to $111.01 on the New York Mercantile Exchange after earlier rising as high as $111.42. Oil prices are within striking distance of a trading record of $111.80 set last month.
The EIA also said gasoline and distillate supplies, which include diesel fuel and heating oil, fell more than expected last week. May gasoline futures jumped 4.31 cents to $2.7935 a gallon on the Nymex -- a price move that could also affect what consumers are paying at the pump.
May heating oil futures rose 6.96 cents to $3.1798 a gallon after earlier rising to a trading record of $3.1926 a gallon.
In other trading, May natural gas futures rose 36.5 cents to $10.062 per 1,000 cubic feet.
In London, May Brent crude futures rose $1.94 to $108.28 a barrel on the ICE Futures exchange.
SMF Energy Corporation Confirms Compliance with Nasdaq Capital Market Listing Requirements
Wednesday April 9, 9:25 am ET
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--SMF Energy Corporation (NASDAQ:FUEL - News) (the “Company”), a leading provider of petroleum product distribution services, transportation logistics and emergency response services to the trucking, construction, utility, energy, chemical, manufacturing, telecommunication and government service industries, announced today that it believes that it has regained compliance with the stockholders’ equity requirement of Nasdaq Marketplace Rule 4310(c)(3) (the “Rule”).
The Company previously received a February 19, 2008 letter from Nasdaq stating that the Company did not comply with the Rule. Since that time, however, as previously reported, the Company has issued 4,587 shares of its Series A Convertible Preferred Stock for approximately $2.52 million in cash and debt and 1,985 shares of its Series B Convertible Preferred Stock for approximately $1.75 million in debt, increasing stockholders’ equity by approximately $4.31 million.
On April 8, 2008, Nasdaq’s Listing Qualifications Department informed the Company that, based on its determination that the Company had provided a definitive plan evidencing its ability to achieve and sustain compliance with the Rule, Nasdaq was granting the Company an extension of time to regain compliance with the Rule. Nasdaq conditioned the extension on the Company filing a Form 8-K with the Securities and Exchange Commission on or before April 15, 2008, stating its belief that it had regained compliance with the Rule, which Form 8-K was filed today.
Nasdaq will continue to monitor the Company’s ongoing compliance with the stockholders’ equity requirement. If the Company’s Form 10-Q for the period ended March 31, 2008, does not confirm its compliance with the Rule when it is filed, the Company may be subject to delisting. However, based on the transactions recently reported and the Company’s improving financial performance in its third quarter, the Company is confident that its Form 10-Q for the period ended March 31, 2008 will reflect the required stockholders’ equity.
About SMF Energy Corporation (NASDAQ:FUEL - News)
The Company is a leading provider of petroleum product distribution services, transportation logistics and emergency response services to the trucking, manufacturing, construction, shipping, utility, energy, chemical, telecommunication and government services industries. The Company provides its services and products through 26 locations in the ten states of Alabama, California, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas. The broad range of services the Company offers its customers includes commercial mobile and bulk fueling; the packaging, distribution and sale of lubricants; integrated out-sourced fuel management; transportation logistics and emergency response services. The Company’s fleet of custom specialized tank wagons, tractor-trailer transports, box trucks and customized flatbed vehicles delivers diesel fuel and gasoline to customers’ locations on a regularly scheduled or as needed basis, refueling vehicles and equipment, re-supplying fixed-site and temporary bulk storage tanks, and emergency power generation systems; and distributes a wide variety of specialized petroleum products, lubricants and chemicals to our customers. In addition, the Company’s fleet of special duty tractor-trailer units provides heavy haul transportation services over short and long distances to customers requiring the movement of over-sized or over-weight equipment and manufactured products. More information on the Company is available at www.mobilefueling.com.
Resistance is Futile...Just Ask the Stocks I Play...
............:)))))))))))
This is breaking nicely and Steadily. If we can capture highers highs and higher lows and do this incremently the hope is we can keep the grounds we take.
Where we want to see this trading at is over $2.00 a share, $3.00 would be better, not just for the shareholders but the company. We need to get into this area to satisfy not only the Naz requirements, but to get this moving into a price range its more deserving of. This will also give us a margin for price fluctuation...........we have a low amount of shares right now,,,,,,,,,14.5 million is not only low but perfect.
Yeah, we can expect some volatility, some just can't help themselves.........at this level and with the pending news plus with oil prices no doubt heading higher, and with so many companies missing their numbers and suffering with huge losses........this is the place to be imo. With these few shares and the pps the market could buy this up in a day.
Well, the curve is definitely headed in the right direction based on the chart.
Don you think the share count is accurate and will be held at this level?
Loof
With the purchase of this refinery this should not only return to its old high of just under $5.00 but should surpass it, the company only has 14.5mn shares. Then there are 3 others we may obtain. The Ceo is doing exactly what he said he would do but surpassed my imaginings.........this is a nice little package gift wrapped for the shareholders.
I hope so cause Tessi May likes the smell of gas. She dun told me likes makin sum gravy and if the gravy is good, I ought to buy some FUEL to heat it up. So I dun did it and now she's given me some real good lovin.
jmo,
Loofman
We may close higher today, we need to break thru 1.10.......the chart sure looks good imo.
Lots of good things to come from Fuel this is only getting better.....this stock is a good buy right here. I bet by summer we will see this moving into the 52 week range and move much higher.
This company is gonna have the entire package, and with oil and gas in ever increasing demand, and with $4.00 a gallon price almost guaranteed by summer this is a terrific move, and in addition to this they can even provide the gas for themselves, not without cost, but maybe at the wholesale level at least to provide their fleet with thats moving the product.
Very nice...I'll watch closely...
Monkish
Please leave a footprint with a boardmark if your interested in the company its a way of guaging who may be on board.
Thanks
Jer
The Ceo is executing terrifically. He has been delivering on his promises since the end of December in a way I could have never guessed, and this is coming together like a pair of gloves........this is now a ground floor opportunity of getting into not only gas delivery, but the refineries when this is needed most. Just look what this company will own.
This is turning into a gem.......This is what I have wanted to own but all are out of my price range. There is nothing out there quite like this operation.
Looks good Gravy...
We should see a nice reaction to this...
Monkish
March 18, 2008 - 2:25 PM EDT
SMF Energy Corporation Announces Intent to Merge and Consolidate with Refinery Company
SMF Energy Corporation, (NASDAQ:FUEL) (“SMF” or the “Company”), a leading provider of petroleum product distribution services, transportation logistics and emergency response services to the trucking, construction, utility, energy, chemical, manufacturing, telecommunication and government service industries, today announced that it has entered into a non-binding letter of intent with Houston-based Lazarus Energy Holdings LLC (“Lazarus Holdings”) to acquire Lazarus Energy, LLC (“Lazarus Energy” and jointly with Lazarus Holdings, “Lazarus”), which owns the Nixon Refinery located 50 miles east of San Antonio, Texas and 70 miles southeast of Austin, Texas.
Lazarus has been working to renovate and bring back into production the Nixon Refinery after purchasing it in 2006. Built in 1981 to environmental specifications meeting today’s requirements and idled since 1993, the Nixon Refinery is expected to re-commence operations by June 2008, with an initial crude oil processing capacity of 15,000 barrels per day, and a projected increase in daily thruput capacity to 20,000 barrels by early 2009.
The Nixon Refinery will process light, sweet crude oil into an initial estimated 220 million gallons per year of petroleum products, with the annual rate expected to increase to 300 million gallons. Those products will include diesel and jet fuel, as well as naphtha and atmospheric tower bottoms, both of which are highly valued by other refiners as feedstock for producing gasoline. The Nixon Refinery is surrounded by high quality local crude production and benefits from direct pipeline access to crude. It has 265,000 barrels of storage on its 56-acre site and is expected to realize a positive transportation differential to the San Antonio market for its finished products, together with access to a number of other refineries for feedstock production.
While some of the products produced by the Nixon Refinery will be delivered by SMF to new and existing SMF customers in the San Antonio, Austin and surrounding markets, SMF will also benefit from the Nixon Refinery production in the rest of its ten (10) state distribution system via the exchange of the Nixon products with other regional refiners. The combined operations are expected to provide SMF with increased supply alternatives, improved supply procurement and credit economics, and to enhance the earning opportunities of the Nixon Refinery. SMF will also provide its enterprise resource management systems, including back office, accounting and reporting systems, to support the combined SMF and Lazarus Energy manufacturing, supply, distribution and marketing operations.
Lazarus Holdings also owns three (3) other idled refineries which are located at Longview, Texas, Mermentau, Louisiana and Church Point, Louisiana. Under the proposed agreement with Lazarus Holdings, SMF will have an option to acquire these additional three (3) refineries which have an aggregate estimated crude capacity of 60,000 barrels per day and annual refined product production of 800 million to 900 million gallons. Upon completion of the acquisition, Lazarus Energy will become a wholly-owned subsidiary of SMF; the owners of Lazarus Holdings will become the majority shareholders of SMF; and the operating management and personnel of Lazarus will become employees of SMF’s refinery unit. It is anticipated that the definitive merger agreement, which will set forth the terms, conditions and valuation of the merger and related options, including the relative ownership of SMF’s existing shareholders and the owners of Lazarus Holdings, will be finalized on or before May 31, 2008.
Lazarus Holdings was founded by Jonathan Carroll. In 1991, Mr. Carroll partnered with Apollo Management, L.P., one of the world’s largest private equity investment companies, to acquire Direct Gas Supply (“DGS”), a natural gas marketing concern, from British Petroleum. In 1995, Mr. Carroll sold DGS, which had grown from $30 million to nearly $400 million in revenue, to ENSERCH (now part of TXU Corp.). Mr. Carroll then served as President of Enserch Energy Services, a company formed by the merger of ENSERCH, DGS and Sunrise Energy Services, which resulted in an integrated marketing, trading and structured finance unit with nearly $2 billion in revenue. The co-owners of Lazarus Holdings include several senior partners and members of Ares Management LLC and Apollo Management, L.P.
Richard E. Gathright, SMF Chairman, CEO and President of SMF Energy, commented, “The combination of SMF and Lazarus will create an integrated company from refining through distribution. As a result, we will benefit from strong economies of scale, cost efficiencies, increased credit availabilities and the full utilization of the SMF management resources platform we have developed over the last three years. The benefits of our combination with Lazarus include our expected ability to exchange refinery production for products in markets such as Florida where we historically experience tight supplies, and our ability to capture value from the use of our truck fleet to deliver new Nixon Refinery supply into the tightly supplied San Antonio and Austin markets.”
SMF Energy To Buy Lazarus Energy LLC For Undisclosed Terms
50 minutes ago - Dow Jones News
DOW JONES NEWSWIRES
SMF Energy Corp. (FUEL) agreed to purchase Lazarus Energy LLC, which owns the Nixon Refinery in Texas, from Houston-based Lazarus Energy Holdings LLC.
Financial terms of the agreement weren't disclosed.
SMF Energy, a Fort Lauderdale, Fla., petroleum product distribution service provider, will also have the option to buy three additional refineries from Lazarus Holdings, which have an aggregate estimated crude capacity of 60,000 barrels per day.
The Nixon Refinery has an initial crude oil processing capacity of 15,000 barrels per day, with a projected increase in daily thruput capacity to 20,000 barrels by early 2009, the company said.
In recent months, SMF Energy has received Nasdaq delisting notices for failing to comply with capital market listing and minimum bid price rules.
SMF Energy shares were recently trading up 4 cents, or 4.7%, at 90 cents.
-Monica M. Clark; 201-938-5400; AskNewswires@dowjones.com > Dow Jones Newswires
03-18-08 1448ET
Copyright (c) 2008 Dow Jones & Company, Inc.
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