Emerge Energy Services primary goal is to increase unitholder value by generating predictable cash flows, while also increasing our quarterly distributions over time. We plan to achieve our goal by executing the following strategies:
- Seek contractual cash flow stability. Our sand segment achieves visibility into future cash flows through long-term, fixed-volume and take-or-pay contracts with dependable counterparties. The FP&D segment also structures contracts and transactions to capture stable margins over time.
- Capitalize on organic growth opportunities. Emerge Energy Services has a long-standing track record of advancement through organic growth. The FP&D segment has acquired processing units, built and sold two renewable fuels businesses, built a transmix processing unit and expanded terminal capacity in order to meet the needs of its customers. The Sand segment has also expanded tremendously through organic growth, beginning with the construction of two processing plants in Kosse, TX, in 2009 and 2010, followed by the development of the New Auburn, WI, facility in response to customer requests in 2011. Spurred by additional demand, we recently completed our largest mine and plant operation in Barron County, WI, which began operations in late 2012.
- Pursue opportunistic acquisitions. We intend to actively pursue acquisitions in current areas of operation, new geographic areas or complementary business lines.
- Access new and adjacent markets. We intend to actively pursue expansion in the high-margin finished frac sand, product processing and biodiesel production businesses, and will also pursue the expansion of our geographic footprint in the FP&D terminal business.
- Maintain financial strength and flexibility. A strong financial foundation gives us the ability to execute our business plan and to seek and complete acquisitions expeditiously.
- Make health, safety and the environment a top priority. We are committed to protecting the environment, people and assets in our operational areas.
- Maintain proactive, ongoing relationships with other industry participants. We maintain proactive working relationships with customers, vendors and other interested parties. This enhances our understanding of future product demand and allows us to create value while minimizing our capital commitment.