Mark FennerPresident and CEOMFA Oil CompanyColumbia, Missouri

If you can take away only 1 thing from this presentation…

•DO NOT introduce a new tagline with an upcoming election!

Key MFA Oil Stats• Formed in 1929 as an energy cooperative• Markets in 16 states• $700 Million – FY16 Sales with no debt• 100+ million gallons of propane

• 7th largest propane retailer in the United States• 400 million gallons of refined fuels• 1 million gallons of lubricants• 72 Break Time convenience stores, 8 Jiffy Lubes, 18 Big

O Tires stores & 175 Petro-Card 24 locations

Facing Our Brutal Facts

The Stockdale Paradox• James Stockdale

US Navy Admiral

The Stockdale Paradox

“You must never confuse faith that you will prevail in the end—which you can never afford to lose—with the discipline to confront the most brutal facts of your current reality, whatever they might be.”

MFA Oil’s Brutal Facts

70% of our income over the last 15 years

The Hedgehog Concept

Helps an organization determine how to produce the best long-term results and then exercising the discipline to say no to opportunities that don’t fit.

What do you stand for/What are you passionate about

What can you uniquely contribute/What can you

be best at

What best drives your economic

engine

HEDGEHOG

Bulk Fuel, Propane & Lubricants

Jiffy Lube

Break Time

FY15 Operations

AgFuel Energy Systems

Big O Tires

WasteWater Logic

Woodfin Propane

NCRA Refinery

Biomass

Partnerships

Today

Break TimeAPM

Jiffy Lube

Bulk Fuel, Propane & Lubricants

Big O Tires

Strategic Commitment to Growth

• We created a Mergers & Acquisitions group• Added professional sales people and a new sales

leader• 385 new customer accounts in FY 16

• Adding a Coop energy contract management program

(in development)

M&A Overview

• 33 acquisitions in 5 years

• FY12 3• FY13 8• FY14 7• FY15 7• FY16 8

• Refined Fuels 96.1M gallons

• Propane 26.2 M gallons

M&A Overview – FY16

How have we done?

• Pre-tax earnings of $62 million in FY 15 and $35 million in FY 16

• We made more by doing less • Facing our brutal facts and focusing on our hedgehog• Eliminated Biomass and poor performing LLC’s

Bulk Fuel & Propane• In FY 12: -$457k on our own operations• In FY 16: $15 M on our own operations

Questions