Strategies for Controlling Your Fuel Costs in an Inflated and Uncertain Fuel Market

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A little about Angus Energy

19911991Founded

600+ Clients 1 Billion Gallons

60+ years ofTrading &

Industryexperience

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Founded in 1991 Over 60 years of combined trading & industry

experience Client base of over 600 oil jobbers,

wholesalers, municipalities, producers & end-users

Recognized industry leader and innovator RenaissanceRe Holdings ltd. (RNR) purchased

an equity interest in Angus Energy in 2008

Angus Energy Overview

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RenRe Overview

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Industry Involvement

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Residential Heating Companies

Commercial Property Owners / Managers

Publicly Traded Companies

Municipalities

Industrial Facilities

Gas Station Owners / Operators

Co-Ops / Condominiums

Trucking Fleets

Our Clients

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VOLATILITY

vä-lə-ti-lə-tē \ noun

Definitions:characterized by or subject to rapid or unexpected change;

a measure of instability

Synonyms:changeability; fickleness; instability; uncertainty;

unpredictability; unreliability; variability

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Price or Cost of ProductNo. 2 Heating Oil Future Weekly Close

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Price or Cost of ProductLow Sulfur Diesel Future Weekly Close

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Price or Cost of ProductNo. 2 Heating Oil Annual Price Range

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Price VolatilityNo. 2 Heating Oil Annual Price Range

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VOLATILITY• Rapid, upward movement in prices can quickly render a bank line of credit

inadequate• Increased prices require larger cash outlay to purchase product, impacting

cash position and credit line availability• Instances of inadequate hedging and margin compression are exacerbated

during periods of high volatility, often impacting profitability and stressing loan covenants

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What About This ComingYear?

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Value Of Program10,000 Gallon Customer – DELIVERY SCHEDULE

July 10,000 Gallons

August 10,000 Gallons

September 10,000 Gallons

October 10,000 Gallons

November 10,000 Gallons

December 10,000 Gallons

January 10,000 Gallons

February 10,000 Gallons

March 10,000 Gallons

April 10,000 Gallons

May 10,000 Gallons

June 10,000 Gallons

Season Lock-In Price Cap Price

2006 – 2007 $3.151 $3.151 + $0.15

2007 – 2008 $2.917 $2.917 + $0.19

2008 – 2009 $5.116 $5.116 + $0.29

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Value Of Programs2006 – 2007 Season

FIXED – $3.151 VARIABLE CAP- $3.151Premium – $0.15

JULY ’06 $3.151 x 10,000 = $31,510.00 $3.130 x 10,000 = $31,300.00 $3.130 x 10,000 = $31,300.00

AUGUST ’06 $3.151 x 10,000 = $31,510.00 $3.172 x 10,000 = $31,720.00 $3.151 x 10,000 = $31,510.00

SEPTEMBER ’06 $3.151 x 10,000 = $31,510.00 $2.683 x 10,000 = $26,830.00 $2.683 x 10,000 = $26,830.00

OCTOBER ’06 $3.151 x 10,000 = $31,510.00 $2.646 x 10,000 = $26,460.00 $2.646 x 10,000 = $26,460.00

NOVEMBER ’06 $3.151 x 10,000 = $31,510.00 $2.679 x 10,000 = $26,790.00 $2.679 x 10,000 = $26,790.00

DECEMBER ’06 $3.151 x 10,000 = $31,510.00 $2.704 x 10,000 = $27,040.00 $2.704 x 10,000 = $27,040.00

JANUARY ’07 $3.151 x 10,000 = $31,510.00 $2.491 x 10,000 = $24,910.00 $2.491 x 10,000 = $24,910.00

FEBRUARY ’07 $3.151 x 10,000 = $31,510.00 $2.656 x 10,000 = $26,560.00 $2.656 x 10,000 = $26,560.00

MARCH ’07 $3.151 x 10,000 = $31,510.00 $2.792 x 10,000 = $27,920.00 $2.792 x 10,000 = $27,920.00

APRIL ’07 $3.151 x 10,000 = $31,510.00 $2.946 x 10,000 = $29,460.00 $2.946 x 10,000 = $29,460.00

MAY ’07 $3.151 x 10,000 = $31,510.00 $2.925 x 10,000 = $29,250.00 $2.925 x 10,000 = $29,250.00

JUNE ‘07 $3.151 x 10,000 = $31,510.00 $3.016 x 10,000 = $30,160.00 $3.016 x 10,000 = $30,160.00

‘06 – ’07 Season $378,120.00 $338,400.00 $356,190.00

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Value Of Programs2006 – 2007 Season

FIXED VARIABLE CAP

‘06 – ’07 Season $378,120.00 $338,400.00 $356,190.00

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Value Of Programs2007 – 2008 Season

FIXED – $2.917 VARIABLE CAP- $2.917Premium – $0.19

JULY ’07 $2.917 x 10,000 = $29,170.00 $3.057 x 10,000 = $30,570.00 $2.917 x 10,000 = $29,170.00

AUGUST ’07 $2.917 x 10,000 = $29,170.00 $2.976 x 10,000 = $29,760.00 $2.917 x 10,000 = $29,170.00

SEPTEMBER ’07 $2.917 x 10,000 = $29,170.00 $3.199 x 10,000 = $31,990.00 $2.917 x 10,000 = $29,170.00

OCTOBER ’07 $2.917 x 10,000 = $29,170.00 $3.308 x 10,000 = $33,080.00 $2.917 x 10,000 = $29,170.00

NOVEMBER ’07 $2.917 x 10,000 = $29,170.00 $3.657 x 10,000 = $36,570.00 $2.917 x 10,000 = $29,170.00

DECEMBER ’07 $2.917 x 10,000 = $29,170.00 $3.577 x 10,000 = $35,770.00 $2.917 x 10,000 = $29,170.00

JANUARY ’08 $2.917 x 10,000 = $29,170.00 $3.532 x 10,000 = $35,320.00 $2.917 x 10,000 = $29,170.00

FEBRUARY ’08 $2.917 x 10,000 = $29,170.00 $3.714 x 10,000 = $37,140.00 $2.917 x 10,000 = $29,170.00

MARCH ’08 $2.917 x 10,000 = $29,170.00 $4.194 x 10,000 = $41,940.00 $2.917 x 10,000 = $29,170.00

APRIL ’08 $2.917 x 10,000 = $29,170.00 $4.385 x 10,000 = $43,850.00 $2.917 x 10,000 = $29,170.00

MAY ’08 $2.917 x 10,000 = $29,170.00 $4.823 x 10,000 = $48,230.00 $2.917 x 10,000 = $29,170.00

JUNE ’08 $2.917 x 10,000 = $29,170.00 $4.931 x 10,000 = $49,310.00 $2.917 x 10,000 = $29,170.00

‘07 – ’08 Season $350,040.00 $453,530.00 $372,840.00

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Value Of Programs2007 – 2008 Season

FIXED VARIABLE CAP

‘06 – ’07 Season $378,120.00 $338,400.00 $356,190.00

‘07 – ’08 Season $350,040.00 $453,530.00 $372,840.00

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Value Of Programs2008 – 2009 Season

FIXED – $5.116 VARIABLE CAP- $5.116Premium – $0.29

JULY ’08 $5.116 x 10,000 = $ 51,160.00 $4.855 x 10,000 = $48,550.00 $4.855 x 10,000 = $48,550.00

AUGUST ’08 $5.116 x 10,000 = $ 51,160.00 $4.230 x 10,000 = $42,300.00 $4.230 x 10,000 = $42,300.00

SEPTEMBER ’08 $5.116 x 10,000 = $ 51,160.00 $3.992 x 10,000 = $39,920.00 $3.992 x 10,000 = $39,920.00

OCTOBER ’08 $5.116 x 10,000 = $ 51,160.00 $3.234 x 10,000 = $32,340.00 $3.234 x 10,000 = $32,340.00

NOVEMBER ’08 $5.116 x 10,000 = $ 51,160.00 $2.772 x 10,000 = $27,720.00 $2.772 x 10,000 = $27,720.00

DECEMBER ’08 $5.116 x 10,000 = $ 51,160.00 $2.287 x 10,000 = $22,870.00 $2.287 x 10,000 = $22,870.00

JANUARY ’09 $5.116 x 10,000 = $ 51,160.00 $2.346 x 10,000 = $23,460.00 $2.346 x 10,000 = $23,460.00

FEBRUARY ’09 $5.116 x 10,000 = $ 51,160.00 $2.142 x 10,000 = $21,420.00 $2.142 x 10,000 = $21,420.00

MARCH ’09 $5.116 x 10,000 = $ 51,160.00 $2.146 x 10,000 = $21,460.00 $2.146 x 10,000 = $21,460.00

APRIL ’09 $5.116 x 10,000 = $ 51,160.00 $2.236 x 10,000 = $22,360.00 $2.236 x 10,000 = $22,360.00

MAY ’09 $5.116 x 10,000 = $ 51,160.00 $2.372 x 10,000 = $23,720.00 $2.372 x 10,000 = $23,720.00

JUNE ’09 $5.116 x 10,000 = $ 51,160.00 $2.671 x 10,000 = $26,710.00 $2.671 x 10,000 = $26,710.00

‘08 – ’09 Season $613,920.00 $352,830.00 $387,630.00

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Value Of Programs2008 – 2009 Season

FIXED VARIABLE CAP

‘06 – ’07 Season $378,120.00 $338,400.00 $356,190.00

‘07 – ’08 Season $350,040.00 $453,530.00 $372,840.00

‘08 – ’09 Season $613,920.00 $352,830.00 $387,630.00

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Value Of ProgramsSummary 2006 - 2009

FIXED VARIABLE CAP

‘06 – ’07 Season $378,120.00 $338,400.00 $356,190.00

‘07 – ’08 Season $350,040.00 $453,530.00 $372,840.00

‘08 – ’09 Season $613,920.00 $352,830.00 $387,630.00

Seasons Totaled $1,342,080.00 $1,144,760.00 $1,116,660.00

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