Fourth Quarter 2016 Update
January 4, 2017
Enclosed please find the following: Fourth Quarter 2016 dividend check(s), Investor Statement(s) and two Compressed Natural Gas (CNG) industry articles.
Fort Pierce CNG Station Update: Our Construction & Operating Partner, Jeff Greene of Wise Gas, is reporting to us:
“We have our final permit in hand and have confirmed with our general contractor that construction will be wrapping up this month and the equipment will undergo its initial testing. We expect the local utility, Florida Power and Light (FPL), to run the power lines necessary for the equipment. The underground 4″ natural gas line extension has been completed for some time and will provide us with almost 50psi of inlet pressure allowing the equipment to operate at optimum efficiency… Our tentative completion date is February 10, 2017 subject to all of the above being completed and no weather or inspection issues complicating the timeline.”
In the meantime, our Company’s New Accounts Representative continues to work with prospective CNG truck fleet clients. Many of the prospective clients are looking to use both stations for trips to South Florida including Miami.
Pompano Beach CNG Station Update: The Pompano Beach location is also undergoing some landscaping and lighting improvements this new quarter and with the continued fueling by Hallandale Beach Sanitation and AT&T, the station is operating at levels equivalent to the highest of its history. It is our expectation that when Ft Pierce is completed, we will see even greater usage at the station and expanding to a second dispenser will allow for the light duty vehicles to stay out of the traffic pattern of the large trucks that utilize the primary dispenser.
CNG Industry Update: Gasoline and diesel prices have risen this last quarter and they are expected to rise even more in 2017. Oil pricing has been topping over $55 per barrel and is expected to continue. This new pricing will put diesel at $2.75 per gallon while CNG will remain at steady at $2.49 per gallon (the price at our stations).
We are greatly encouraged by the growth of the CNG industry; as two major auto companies have joined Ford in producing CNG pickup trucks. Chevrolet and GMC announced plans to introduce heavy-duty pickups and full size vans powered by 6.0 liter V8 CNG engines. Their new truck production lines will be manufacturing these vehicles in the first quarter of 2017.
Should you have any questions please call me directly at 949-878-8045.
Julio G. Macedo