To our Valued and Loyal Customers,

 

I would like to apologize for the delay in this letter as I know that many of you are wondering where we stand today with our propane supply.

As we move into the weekend and are still struggling to contain ample inventory to service our customers, we have decided that it is in the best interest of the company and our customers to keep all of our trucks parked over the next few days. This has been a very difficult decision as we are not servicing our customers to the standard that you hold us at and that we hold ourselves at. We felt that this was the only way that we could fully re-stock our inventory to ensure that we are being consistent with our deliveries and that we can service all customers on all platforms equally and fairly.

We do currently have 2-4 trucks making runs to Conway, Kansas. Our transport drivers are driving around the clock to ensure that our propane needs are met. Our allocations have also helped us for waiting times but it does not give us the ample inventory we need to keep moving. Our goal is to have stock replenished by Sunday evening, 11/10. Once our inventories meet our demands, we will go right to filling transport storage tanks in the country. If our plan works, we will be able to do multiple day deliveries and hopefully not face any further disruptions.

To give a little insight, on an average year, our propane marketers are delivering 190 transport loads of propane per day. This year, they are shipping nearly 300 transport loads per day as the demand is so much higher this year. The cold spring, late planting and a less than ideal growing season has produced a corn crop that is higher in moisture and in need of large amounts of propane for drying. To add on to the demand, we are experiencing temperatures that are 15-20 degrees below normal. There has been an emergency declaration signed and it is affecting the following states: Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin.

I will continue to keep you updated and informed on this situation until it is resolved. Being upfront and honest with your is our main priority as we navigate through this dilemma.

I cannot continue to express how sincerely sorry I am for the headaches that this has caused all of our customers. We understand that you are all very frustrated and we are feeling these frustrations, too. We appreciate each and every one of our customers and their continued support and your understanding as we make this very difficult decision to park our trucks.

 

Best,

Brian Dreessen

General Manager