We are a Delaware limited partnership formed in June 2011 by Sprague Holdings
and our General Partner to engage in the purchase, storage, distribution and
sale of refined products and natural gas, and to provide storage and handling
services for a broad range of materials.
We are one of the largest independent wholesale distributors of refined products
in the Northeast United States based on aggregate terminal capacity. We own,
operate and/or control a network of 19 refined products and materials handling
terminals strategically located throughout the Northeast United States and in
Quebec, Canada that have a combined storage capacity of 14.1 million barrels
for refined products and other liquid materials, as well as 2.0 million square
feet of materials handling capacity. We also have an aggregate of 2.1 million
barrels of additional storage capacity attributable to 48 storage tanks not
currently in service. These tanks are not necessary for the operation of our
business at current levels. In the event that such additional capacity were
desired, additional time and capital would be required to bring any of such
storage tanks into service. Furthermore, we have access to approximately 60
third-party terminals in the Northeast United States through which we sell or
distribute refined products pursuant to rack, exchange and throughput agreements.
We operate under four business segments: refined products, natural gas, materials
handling and other operations.
In our refined products segment we purchase a variety of refined products, such
as heating oil, diesel fuel, residual fuel oil, kerosene, jet fuel, gasoline
and asphalt (primarily from refining companies, trading organizations and producers),
and sell them to our customers. We have wholesale customers who resell the refined
products we sell to them and commercial customers who consume the refined products
directly. Our wholesale customers consist of more than 1,100 home heating oil
retailers and diesel fuel and gasoline resellers. Our commercial customers include
federal and state agencies, municipalities, regional transit authorities, large
industrial companies, real estate management companies, hospitals, educational
institutions and asphalt paving companies.
In our natural gas segment we purchase, sell and distribute natural gas to approximately
15,000 commercial and industrial customer locations across 13 states in the
Northeast and Mid-Atlantic United States. We purchase the natural gas from natural
gas producers and trading companies.
Our materials handling segment is a fee-based business and is generally conducted
under multi-year agreements. We offload, store and/or prepare for delivery a
variety of customer owned products, including asphalt, crude oil, clay slurry,
salt, gypsum, crude oil, residual fuel, coal, petroleum coke, caustic soda,
tallow, pulp and heavy equipment.
We take title to the products we sell in our refined products and natural gas
segments. In order to manage our exposure to commodity price fluctuations, we
use derivatives and forward contracts to maintain a position that is substantially
balanced between product purchases and product sales. We do not take title to
any of the products in our materials handling segment.
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