Strategic Acquisition Opportunity
Rural Propane Distribution & Growth Platform
Contact: Jennifer A.
Propane Co. represents a unique acquisition opportunity in a growing rural propane market. The business features established operations, proven customer base, and substantial owned assets, positioning it as an ideal platform for expansion through consolidation and operational excellence.
Established customer base with clear expansion opportunities through strategic acquisitions
Experienced leadership combining enterprise expertise with entrepreneurial drive
$5.2M in fully-owned operating assets plus $2.5M real estate value
The acquisition involves both the operating business (Propane Co. INC) and associated real estate assets (RE LLC). The seller is open to creative financing structures including seller financing with flexible payment terms. This presents an opportunity for strategic investors and financial partners to structure the transaction in ways that optimize capital efficiency and align with their investment objectives.
We are seeking input on optimal financing structures that create value for all parties.
Strategic Enterprise Leadership
Don brings decades of real-world operational expertise, currently managing quality and data systems across eight manufacturing facilities for a global HVAC enterprise. His non-credentialed expertise demonstrates proven ability to drive operational excellence at scale.
Core Competencies:
20+ Years Comprehensive Financial Leadership
Jennifer brings diverse financial expertise spanning SMB to enterprise environments. Currently serves as Accounting Manager for a mid-sized multi-location business with 10+ company-owned locations and 30+ franchisees.
Core Competencies:
Extensive experience starting and building propane companies. His strategic leadership has driven Propane Co. to its current strong market position with proven track record in the industry.
Brings extensive propane industry experience combined with exceptional sales execution. Has driven impressive sales growth for this fast-growing company through strategic marketing initiatives.
The combination of Don's enterprise operational expertise, Jennifer's comprehensive financial leadership, and the existing operations team's proven propane industry success creates an ideal leadership structure for aggressive growth and professional management.
| Period | Total Income | Cost of Goods Sold | Gross Profit | Total Expenses | Net Income |
|---|---|---|---|---|---|
| Q1 2024 | $174,856 | $93,568 | $81,288 | $247,322 | -$165,534 |
| Q2 2024 | $318,790 | $148,556 | $170,234 | $245,184 | $73,050 |
| Q3 2024 | $195,005 | $86,613 | $108,392 | $258,910 | -$150,518 |
| Q4 2024 | $390,540 | $178,884 | $211,656 | $424,642 | -$33,986 |
| Full Year 2024 | $1,079,191 | $507,621 | $571,570 | $1,176,058 | -$604,798 |
The 2024 financial results reflect the seasonal nature of the propane business, with stronger performance in Q2 and Q4 (heating seasons) and losses during transition quarters. Total revenue of $1.08M demonstrates the existing customer base, while the net loss is attributed to growth-phase operations and seasonal working capital requirements.
| Period | Total Income | Cost of Goods Sold | Gross Profit | Total Expenses | Net Income |
|---|---|---|---|---|---|
| January 2025 | $364,882 | $141,968 | $222,915 | $120,392 | $102,523 |
| February 2025 | $312,441 | $88,495 | $223,947 | $121,908 | $102,039 |
| March 2025 | $265,152 | $17,672 | $247,480 | $108,084 | $139,396 |
| April 2025 | $161,146 | $38,137 | $123,010 | $100,665 | $22,344 |
| May 2025 | $149,583 | $774 | $148,809 | $91,592 | $57,217 |
| June 2025 | $125,151 | $145,003 | -$19,853 | $101,222 | -$121,075 |
| YTD 2025 (6 months) | $1,378,356 | $432,048 | $946,307 | $643,863 | $302,444 |
The first half of 2025 shows significant operational improvement with positive net income of $302,444 on revenue of $1.38M, demonstrating the business's strong trajectory under improved management and operational efficiency.
Propane Co. owns substantial operating assets with zero debt, providing strong collateral and operational capacity
Customer-deployed propane tanks generating monthly recurring revenue through equipment rentals and propane sales
Bulk storage infrastructure and backup power generation ensuring supply chain resilience and operational continuity
Modern fleet of delivery vehicles enabling efficient route operations and customer service across the service area
All operating assets are fully owned and paid for, with zero equipment debt. This provides:
These owned assets provide the operational foundation for aggressive growth. The customer tank inventory generates recurring revenue while the delivery fleet and storage infrastructure support efficient operations and expansion capacity. Under professional management, we will optimize asset utilization, implement preventive maintenance programs, and leverage this asset base for working capital facilities and acquisition financing.
| Growth Scenario | 2026 Customers | 2027 Customers | 2028 Customers |
|---|---|---|---|
| Half Pace (0.5x) | 1,800 | 2,200 | 2,600 |
| Current Pace (1.0x) | 2,200 | 3,000 | 3,800 |
| Fast Growth (1.5x) | 2,600 | 3,800 | 5,000 |
| Double Pace (2.0x) | 3,000 | 4,600 | 6,200 |
| Growth Scenario | 2026 Revenue | 2027 Revenue | 2028 Revenue | 2026 Net Income | 2027 Net Income | 2028 Net Income |
|---|---|---|---|---|---|---|
| Current Pace | $5,132,278 | $7,413,290 | $9,694,303 | $1,129,101 | $1,630,924 | $2,132,747 |
| Half Pace | $4,562,025 | $5,702,531 | $6,843,037 | $1,003,645 | $1,254,557 | $1,505,468 |
| Accelerated | $5,702,531 | $9,124,050 | $12,545,568 | $1,254,557 | $2,007,291 | $2,760,025 |
Our growth strategy includes acquiring and consolidating smaller propane companies in the area, integrating them into our larger, more efficient operation. This consolidation approach will:
We have developed robust supply chain capabilities to address the region's historically net-short propane supply. Our strategy includes diversified sourcing through expanded rail capacity and flexible supply arrangements from distribution hubs beyond the immediate region. We are capitalizing on recent infrastructure investments, including the CHS Yuma terminal, while maintaining sufficient storage and optimized delivery routes to ensure competitive service and manage risk during peak winter heating season.
We are strategically positioned to capitalize on stable to lower propane prices expected in 2025, helping retain and grow our customer base in rural communities without natural gas access. The broader propane market, including renewable propane, is projected to grow steadily through 2033, with increased demand in traditional residential heating and emerging sectors like agriculture and transportation. We are actively pursuing acquisition and consolidation opportunities in the area, following the successful model of larger players expanding into rural regions.
Our operations focus on efficient management of both company and customer storage assets. We are upgrading customer tanks for higher capacity to improve delivery efficiency and weather supply disruptions or unexpected demand spikes. We routinely evaluate storage plant locations and sizes while implementing digital tools for inventory management and route optimization to streamline operations and reduce costs.
We maintain strict adherence to propane container ownership, refilling, and delivery regulations in the area, emphasizing regulatory compliance and customer education to avoid penalties. We are positioned to capitalize on the industry push toward renewable alternatives and cleaner-burning fuels, pursuing tax incentives available for incorporating sustainable practices and renewable propane into our offerings.
The absence of new natural gas pipelines ensures off-grid and rural propane customers remain a stable market segment for the foreseeable future.
Investment in logistics, scalable sourcing, and technology-enabled planning positions us to secure reliable margins and expand market share.
Propane remains vital for heating rural homes, commercial operations, and agricultural processes in the region as energy markets diversify.
As a forward-looking propane company, we are focused on:
This comprehensive approach ensures resilience and sustainable growth in an evolving energy landscape.
Operating Business (INC): $4.7M - $6.7M
Real Estate (RE LLC): $2.5M (pending appraisal)
Operating Assets: $5.2M (fully owned, zero debt)
Strong 2025 trajectory, established customer base, clear acquisition consolidation strategy, and professional management upgrade
$5.2M fully-owned operating assets plus $2.5M real estate provide strong collateral and balance sheet foundation
Seller financing available, multiple structuring options, opportunity for creative financing solutions
We are actively seeking input from experienced investors and financial advisors on optimal transaction structuring. Key considerations include:
Your expertise in structuring this transaction is welcome and valued.
Complete financial, legal, and operational due diligence on Propane Co. and associated real estate assets. Full financial statements, customer data, asset documentation, and operational records available for qualified buyers.
Work with financial advisors and strategic partners to develop optimal transaction structure. Open to creative financing solutions that create value for all parties.
Negotiate and document seller financing terms, equity arrangements, and partnership structures based on optimal financing recommendations.
Execute coordinated closing sequence and implement management transition plan. Begin operational improvements and pursue identified acquisition targets.
We are targeting a 90-120 day timeline from Letter of Intent to closing, allowing adequate time for due diligence, financing arrangements, and coordinated transaction execution.
Propane Co. - Strategic Acquisition
Disclaimer:
This presentation contains forward-looking statements and projections regarding future financial performance, growth targets, customer acquisition, and business operations. These statements are based on current assumptions, market research, and management estimates. Actual results may vary materially from these projections due to market conditions, competitive factors, operational challenges, regulatory changes, and other risks inherent in business operations. Historical financial performance does not guarantee future results. All valuations and financial projections are estimates subject to completion of due diligence and final negotiation. Prospective investors should conduct their own independent analysis and consult with financial, legal, and tax advisors before making any investment decisions.