SMF Adds San Antonio to its Territory

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SMF Energy Corp., formerly Streicher Mobile Fueling, on Thursday said it reached agreement with Chevron Products Co. to expand its Texaco lubricant marketing area to include the metropolitan San Antonio market as well as those counties abutting the I-10 corridor between San Antonio and Houston in Texas.

Wayne Wetzel, SMFs senior vice president, lubricants, said the San Antonio area consistsprimarily of commercial markets. We currently do mobile fueling in that area, so weve actually been selling some lubricants into the market from our location over in Temple, and weve been looking to expand, Wetzel told Lube Report. Temple is about 35 miles north of Austin, or 110 to 115 miles from San Antonio, and thats a little too far to move lubricants.

He said Fort Lauderdale, Fla.-based SMF has two small locations near San Antonio, one to store mobile fueling trucks,andanotherfacility for its solvents business that operates underSMF’sH & W Petroleum subsidiary. We hope to take those smaller locations and pour them all into one large one, Wetzel said. So we are looking at a facility right now in San Antonio, and were just waiting to get it fixed up to move into.

Wetzel said that in terms of lubricants, SMF primarily distributes Texacos Ursa brand heavy duty truck engine oils and off road construction oils, along with some hydraulic oils. Thats going to be the biggest thing for us, he said. Were not so much in the automotive end as of yet, but we are starting to take a look into that marketplace.

SMF President and Chief Executive Officer Rich Gathright said San Antonio is especially appealing from a logistical standpoint, because it is a major crossroads with three major Interstates (I-10, I-35 and I-37) meeting and funneling traffic to all other major metropolitan areas of Texas, including Dallas, Houston and El Paso. San Antonio is also a major logistics hub for the international distribution of products through its foreign trade zone located at the old Kelly Air Force Base.

This addition will also fuel the expansion of our sales efforts to potential industrial, commercial and retail operations located along the I-10 corridor between Houston and San Antonio while lowering our distribution costs through improved logistics management, said Gathright. Numerous large third party logistics providers, manufacturers and distributors have a presence in the zone, most with petroleum product supply requirements that we will be prepared to provide. The addition of San Antonio complements our other operations in Dallas, Houston, Beaumont, Lufkin, Longview, Waxahachie and Temple.

In 2005, SMF grew extensively through acquisitions. In February 2005 it acquired the assets and business operations of Shank C&E Investments LLC, a Houston-based provider of commercial mobile and bulk fueling services, petroleum lubricants packaging and distribution, and heavy haul transportation services. In addition to Houston, it extended its presence in the Dallas/Fort Worth, Austin and San Antonio markets.

In October 2005, it acquired H & W Petroleum Co. Inc., a Houston-based marketer and distributor of lubricants, commercial fuels and petroleum products. Also acquired was Harkrider Distributing Co. Inc., a marketer and distributor of dry cleaning solvents, chemicals and petroleum products. Harkrider was related to H & W through common shareholder ownership. That acquisition enabled SMF to expand its marketingof branded and unbranded lubricants, fuels and other petroleum products in Texas, along with dry cleaning solvents and chemicals. It extended SMFs presence into more Texas markets, along with the Baton Rouge/New Orleans market in Louisiana.

SMF operates in 26 locations in 10 states, offering packaging, distribution and sale of lubricants; commercial mobile and bulk fueling; integrated out-sourced fuel management; transportation logistics and emergency response services.

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