Susser to Offer Natural Gas at the Pump
CORPUS CHRISTI, Texas – Susser Holdings Corp. plans to begin testing natural gas at the pump in the next six months, company CEO Sam Susser said during an interview with Jim Crameron CNBC's "Mad Money" last night.
"We are looking to partner with a couple of major oil producers in the Permian and Eagle Ford shales, which are big markets for us," Susser said in the interview. "…If there's an appetite for it, we will grow that and continue to distribute natural gas."
Susser also noted during the interview that Susser Holdings Corp. will likely keep its main focus on its core markets; Texas, Oklahoma, New Mexico and Louisiana, as opposed to opening new convenience stores in the east or west coasts of the country. "They have fabulous demographics," Susser said of the four states in which it operates during the television interview. "…If you took our footprint and expanded it across the eastern seaboard, our territory is as big as Boston to New Orleans. A large territory with major population centers and huge growth."
Cramer also placed a specific focus on the recently spun off Susser Petroleum Partners. The television host focused on the company's expected 7-percent yielding dividend, more than three times that of the average stock. According to Susser, fuel distribution is a "stable business," and Susser Petroleum Partners hopes to increase the dividend in the future.
When asked about why Susser Petroleum Partners is the first c-store-related business to spin off its fuels distribution business into a master limited partnership (MLP), Susser responded that he believed competitors were looking into the idea and thought similar MLPs could hit the market in the near future.
Susser Petroleum was spun off from Susser Holdings Corp. on Sept. 25. Susser Holdings Corp. retains a 50.1 percent interest in the new company.
Susser Holdings Corp. had 552 convenience stores as of Sept. 30.