HFOTCO Pitch Deck: All 35 Slides + Teardown

See all 35 slides of the HFOTCO pitch deck — a 2018 deck — with a slide-by-slide teardown of what the deck does well and where it falls short.

The HFOTCO investor presentation, dated June 6, 2018, serves as a technical and financial deep dive into one of the largest fuel oil terminals in the United States. Operating as a subsidiary of the NYSE-listed SemGroup (SEMG), HFOTCO emphasizes its 'take-or-pay' revenue model, which accounts for 88% of its income, providing significant cash flow stability. The deck highlights a diversified, investment-grade customer base and a strategic shift toward becoming a Vacuum Gas Oil (VGO) hub. While the presentation is heavy on operational logistics and macro-market data from the EIA, it effectively…

Key takeaways

Introduction and Corporate Context

The HFOTCO (Houston Fuel Oil Terminal Company) investor presentation, dated June 6, 2018, is a professional corporate deck designed to showcase a specific midstream asset under the SemGroup umbrella. The deck is characterized by its industrial aesthetic, utilizing high-resolution photography of storage tanks, pipelines, and maritime logistics to ground the financial data in physical reality. As a 'SemGroup Business,' the presentation carries the branding of its parent company, including the NYSE ticker 'SEMG' on every slide footer, signaling to investors that this is a regulated, public-market-grade asset.

Slide 1: Title and Visual Identity

The cover slide establishes the scale of the operation. It features an aerial view of the Houston terminal, showing dozens of large-scale storage tanks situated along a deep-water channel with multiple tankers docked. The title 'HFOTCO Overview & Tour' suggests this deck was likely used for an analyst day or a site visit, where investors were given a physical walkthrough of the facilities. The date, June 6, 2018, places the presentation in a period of significant midstream infrastructure expansion in the U.S. Gulf Coast.

Slides 5 and 9: Leadership Introduction

Slides 5 and 9 serve as transition points to introduce the executive team. Slide 5 features Carlin Conner, CEO of SemGroup, while Slide 9 introduces Shaun Revere, CEO of HFOTCO. The use of full-page transition slides for individual executives is a common tactic in large corporate presentations to signify the importance of management expertise. However, these slides contain no biographical data or track record information, assuming the audience is already familiar with the leadership or that a verbal introduction will provide the necessary context.

Slide 13: Macro Market Positioning

Slide 13 provides the 'Why here?' for the business. Titled 'U.S. Refineries,' it utilizes data from the EIA (Energy Information Administration) to map out regional refinery capacity and complexity across the United States. The slide highlights the Gulf Coast as the dominant player in the industry, with 7.8 million barrels per day of capacity. By contrasting this with the Midwest (2.9 million) and the West Coast (2.0 million), HFOTCO positions its Houston location as the most strategic point in the domestic energy supply chain. The map also distinguishes between refineries with and without cokers, emphasizing the complexity of the regional infrastructure that HFOTCO supports.

Slide 17: Operational Transition

Slide 17 is a simple header slide titled 'HFOTCO Overview.' Like the executive slides, it uses a consistent visual motif of large-diameter white piping against a blue sky. This section marks the shift from macro-market data to specific asset-level details.

Slide 21: Product Handling Capabilities

This slide is critical for understanding the terminal's utility. It lists five primary product categories: Crude Oil, Residual Fuel Oil, Vacuum Gas Oil, Carbon Black, and Asphalt. Each category is linked via blue arrows to its end-use applications, such as jet fuels, power generation, tires, and road construction. This visual mapping demonstrates that HFOTCO is not just a 'fuel oil' company, despite its name, but a multi-commodity logistics hub. The inclusion of Carbon Black and Asphalt highlights the terminal's role in supporting industrial manufacturing and infrastructure, not just transportation fuels.

Slide 25: The Financial Moat

Slide 25, titled 'Solid Customer Base,' is arguably the most important slide for an investor. It breaks down the revenue and customer profile using three pie charts: Diversified, Long-Term, and Investment Grade. The data points are highly specific: 88% of revenue is generated by 'take-or-pay' contracts, and 75% of contracted capacity is with 'diversified investment grade counterparties.' The 'Long-Term' chart shows that 52% of customers have been with the company for over 18 years, with a weighted-average tenure of approximately 18 years. This slide effectively argues that HFOTCO is a low-risk, 'utility-like' investment with highly predictable cash flows and minimal counterparty credit risk.

Slide 29: Adaptation and Future-Proofing

Slide 29 addresses the 'Impacts to HFOTCO' regarding market shifts. It acknowledges that while heavy fuel oil is still produced, its value is changing. The company highlights its success in diversifying its 'heated portfolio,' specifically by becoming a 'VGO hub.' A key metric provided is that 'Fuel Oil and related components [have been] reduced by more than 30% since 2013.' This demonstrates management's ability to pivot the asset to handle lighter, higher-value, or more environmentally compliant products like Vacuum Gas Oil (VGO), which is used for low-sulfur fuel blends.

Slide 33: Appendix

The final slide in the provided set is a header for the 'Appendix.' In institutional decks, the appendix usually contains detailed GAAP to non-GAAP reconciliations, environmental safety records, and specific tankage capacities. Its presence indicates a high level of transparency and a readiness for deep-dive due diligence.

What Works in the HFOTCO Deck

The deck is exceptionally strong in demonstrating revenue stability . By highlighting the 88% take-or-pay contract structure and the 18-year average customer tenure, the company speaks directly to the primary concern of midstream investors: cash flow predictability. The use of EIA data to validate the geographic importance of the Gulf Coast provides a factual, third-party anchor for the company's value proposition. Furthermore, the product handling slide (Slide 21) does an excellent job of simplifying complex industrial processes into understandable end-use cases, making the business model accessible to generalist investors.

What is Missing from the HFOTCO Deck

The most notable omission in the provided slides is financial performance metrics . While the deck mentions revenue types, it does not list EBITDA, net income, or capital expenditure (CapEx) requirements. There are no charts showing historical revenue growth or margin expansion. Additionally, the deck lacks a competitor analysis . While it mentions the Gulf Coast is a major hub, it does not explain how HFOTCO compares to other major terminal operators in the Houston Ship Channel, such as Enterprise Products Partners or Kinder Morgan. Finally, there is no ESG (Environmental, Social, and Governance) slide, which, even in 2018, was becoming a standard requirement for institutional energy investors, particularly regarding spill prevention and emissions monitoring.

Founder Lessons: Copy These Strategies

Quantify Customer Loyalty: Don't just say you have 'great customers.' Use a metric like 'weighted-average tenure' (Slide 25) to prove it. · Visual Product Mapping: If your product is a technical 'middle-man' service, use a slide like Slide 21 to show exactly where your output goes in the real world. · Leverage Third-Party Data: Using EIA maps (Slide 13) gives your market claims instant credibility that internal company charts cannot match. · Highlight the Contract Model: If you have recurring revenue or fixed contracts, make that the centerpiece of your financial argument. Investors buy stability. · Show Evolution: Slide 29's mention of a 30% reduction in fuel oil since 2013 shows that the company is not stagnant; it is actively managing its portfolio to meet future market demands.

Frequently asked questions

What is the primary revenue model for HFOTCO?
HFOTCO relies heavily on a take-or-pay contract model. According to slide 25, approximately 88% of its revenue is generated through these fixed contracts, which require customers to pay for capacity regardless of whether they use it. The remaining 12% comes from predictable ancillary services such as heating and throughput fees, creating a highly stable and defensive cash flow profile suitable for midstream energy investors.
Who are the key leaders mentioned in the presentation?
The presentation introduces two primary executives: Carlin Conner, who serves as the CEO of the parent company SemGroup (Slide 5), and Shaun Revere, who is the CEO of HFOTCO (Slide 9). This structure indicates a clear hierarchy where the terminal operations are managed by a dedicated specialist while remaining integrated into the broader corporate strategy of the NYSE-listed parent entity, SemGroup.
How does HFOTCO fit into the broader U.S. refining landscape?
HFOTCO is located in the Gulf Coast region, which is the most critical refining hub in the United States. Slide 13 shows that the Gulf Coast has a capacity of 7.8 million barrels per day, dwarfing other regions like the Midwest (2.9 million) and the West Coast (2.0 million). By operating in this high-density complex, HFOTCO serves as a vital logistics link for major oil companies and refiners.
What products does the terminal handle?
As detailed on slide 21, the terminal handles a diverse array of petroleum products. These include Crude Oil (for motor and jet fuels), Residual Fuel Oil (for power generation and bunker fuel), Vacuum Gas Oil (for intermediate refinery feed), Carbon Black (for tires, plastics, and ink), and Asphalt (for road construction). This diversity allows the terminal to remain relevant across multiple industrial and transportation sectors.
How has the company adapted to changing environmental or market demands?
Slide 29 highlights that HFOTCO has proactively diversified its 'heated portfolio.' Since 2013, it has reduced its reliance on traditional fuel oil and related components by more than 30%. It has transitioned into a hub for Vacuum Gas Oil (VGO), which is a critical component for producing low-sulfur fuel blends, aligning the business with tighter maritime and environmental regulations regarding sulfur emissions.
Cover slide of the HFOTCO (Houston Fuel Oil Terminal Company) pitch deck — 2018
HFOTCO (Houston Fuel Oil Terminal Company) pitch deck, slide 1 (2018)

HFOTCO (Houston Fuel Oil Terminal Company) pitch deck: the facts

Company
HFOTCO (Houston Fuel Oil Terminal Company)
Year
2018
Stage
Subsidiary of Publicly Traded Entity (SemGroup)
Slides
35
Sector
Midstream Energy Infrastructure
Deck type
Investor Presentation / Asset Overview
Outcome
SemGroup (parent) was later acquired by Energy Transfer LP in 2019
Headquarters
Houston, Texas, USA

HFOTCO (Houston Fuel Oil Terminal Company) pitch deck PDF

The full HFOTCO (Houston Fuel Oil Terminal Company) deck is embedded on this page and can be read slide by slide in the browser — no download or account required. Each slide is covered in the breakdown above.

What the Houston Fuel Oil Terminal Company (HFOTCO) pitch deck was used for

This is a 35‑slide investor tour presentation created in 2018 by SemGroup for HFOTCO, its Houston Fuel Oil Terminal Company subsidiary, following SemGroup’s 2017 acquisition of HFOTCO from Alinda Capital Partners. The deck positions HFOTCO as a strategic Gulf Coast crude and residual fuel terminal with deepwater docks, extensive storage capacity, and long‑term take‑or‑pay contracts, aimed at institutional investors and lenders. It is tied to SemGroup’s broader midstream growth strategy in Canada, the Mid‑Continent, and the Gulf Coast, and supports financing of the HFOTCO acquisition and related capital projects. By 2019, HFOTCO and SemGroup were sold to Energy Transfer, so this deck reflects the stand‑alone subsidiary story prior to that later consolidation.

Business model: HFOTCO operates a large crude and residual fuel oil storage and blending terminal on the Houston Ship Channel, providing refinery-facing, take-or-pay terminalling, storage, and marine export services.

Lead investor
SemGroup Corporation (NYSE: SEMG) as the acquiring and financing entity for HFOTCO.
Investors
Investment funds managed by Alinda Capital Partners were the seller and prior owner of HFOTCO. SemGroup Corporation acte, Energy Transfer later acquired SemGroup, including HFOTCO, as part of a separate corporate‑level transaction.
Headquarters
Houston, Texas, USA.
Industry
Midstream energy infrastructure / petroleum storage and terminalling.

Round: HFOTCO functioned as a subsidiary asset acquired from private equity infrastructure funds by a publicly traded midstream company and later integrated into a larger public midstream platform.

Year: Initial acquisition agreement announced in 2017, closing in July 2017, with final payment funded in April 2018.

Use of funds as presented: SemGroup’s HFOTCO acquisition financing—via revolving credit facility borrowings, common equity issuance, and assumption of HFOTCO debt—was used to purchase HFOTCO’s terminal assets from Alinda Capital Partners and support subsequent deep‑water dock and export infrastructure expansion on the Houston Ship Channel.

What happened after the Houston Fuel Oil Terminal Company (HFOTCO) deck

HFOTCO transitioned from private equity ownership under Alinda Capital Partners to being a key Gulf Coast terminal within SemGroup following a two‑step acquisition completed in 2017–2018, and was later integrated into Energy Transfer through SemGroup’s sale in 2019.

What the Houston Fuel Oil Terminal Company (HFOTCO) deck got right

What could have been stronger

How an investor would read this deck

What draws attention

Risks that stand out

Questions this deck invites

What founders can take from the Houston Fuel Oil Terminal Company (HFOTCO) deck

Houston Fuel Oil Terminal Company (HFOTCO) pitch deck: common questions

What is HFOTCO and how is it related to SemGroup?

HFOTCO (Houston Fuel Oil Terminal Company) is a large crude and residual fuel oil storage and blending terminal located on the Houston Ship Channel, providing storage, blending, and transportation via pipeline, ship, barge, rail, and truck. It became a business unit of SemGroup Corporation after SemGroup acquired HFOTCO from investment funds managed by Alinda Capital Partners in July 2017.

What transaction did this HFOTCO deck relate to?

SemGroup announced a binding agreement to acquire HFOTCO from funds managed by Alinda Capital Partners in June 2017, with an initial payment of $1.5 billion (including equity issuance, cash from SemGroup’s revolver, and assumption of HFOTCO debt) and a second $600 million cash payment due by the end of 2018. The acquisition closed on July 17, 2017. SemGroup funded the final payment related to the HFOTCO acquisition in April 2018 with revolving credit facility borrowings and cash on hand.

How large is HFOTCO’s terminal and what key assets does it have?

According to SemGroup disclosures, HFOTCO is one of the largest oil terminals in the U.S., with more than 18 million barrels of crude oil storage capacity, five deep‑water ship docks, and seven barge docks on the Houston Ship Channel. The site includes more than 140 tanks ranging from 10,000 to 400,000 barrels and roughly 330 acres of waterfront property.

How was the HFOTCO acquisition financed?

SemGroup used its corporate revolving credit facility, issuance of common shares to Alinda, and the assumption of HFOTCO’s existing term loan B and other debt to finance the HFOTCO acquisition, with a $301 million initial cash payment at closing, 12.4 million shares issued at $32.30 per share, and assumption of approximately $761–785 million of HFOTCO net debt. A second cash payment of about $600 million was funded in April 2018 from revolver borrowings and cash on hand.

What happened to HFOTCO after this 2018 investor tour deck?

In December 2019, Energy Transfer completed its acquisition of SemGroup, including SemGroup’s Houston Fuel Oil Terminal (HFOTCO), in a transaction valued at about $5 billion including assumed debt. Energy Transfer highlighted HFOTCO’s more than 18 million barrels of storage and deep‑water dock infrastructure as strengthening its crude oil transportation, terminalling, and export capabilities on the Houston Ship Channel.

Sources

Funding and outcome facts on this page were researched on 2026-08-22 from the pages below.

HFOTCO (Houston Fuel Oil Terminal Company) pitch deck slides

HFOTCO (Houston Fuel Oil Terminal Company) pitch deck slide 1 of 35
HFOTCO (Houston Fuel Oil Terminal Company) pitch deck — slide 1 of 35
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HFOTCO (Houston Fuel Oil Terminal Company) pitch deck — slide 2 of 35
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HFOTCO (Houston Fuel Oil Terminal Company) pitch deck — slide 3 of 35
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HFOTCO (Houston Fuel Oil Terminal Company) pitch deck — slide 4 of 35
HFOTCO (Houston Fuel Oil Terminal Company) pitch deck slide 5 of 35
HFOTCO (Houston Fuel Oil Terminal Company) pitch deck — slide 5 of 35
HFOTCO (Houston Fuel Oil Terminal Company) pitch deck slide 6 of 35
HFOTCO (Houston Fuel Oil Terminal Company) pitch deck — slide 6 of 35

What each slide of the HFOTCO (Houston Fuel Oil Terminal Company) pitch deck says

Slide 1

| 22 =e a) aot 4 A7 J. ; June 6, 2018 ASN 2 é HFOTCO Overview & Tour A SemGroup® Business

Slide 2

Non-GAAP Financial Measures SemGroup's non-GAAP measures, Adjusted EBITDA and Total Segment Profit, are not GAAP measures and are not intended to be used in lieu of GAAP presentation of net income (loss) and operating income, respectively, which are the most closely associated GAAP measures. Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for selected items that SemGroup believes impact the comparability of financial results between reporting periods. In addition to non-cash items, we have selected items for adjustment to EBITDA which management feels decrease the comparability of our results among periods. These items are identified as th…

Slide 3

Forward-Looking Information Certain matters contained in this Presentation include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this presentation including the prospects of our industry, our anticipated financial performance, our anticipated annual dividend growth rate, management's plans and objectives for future operations, planned capital exp…

Slide 4

Highly Experienced Executive Management Carlin Conner Chief Executive Officer Chief Financial Officer Timothy Sullivan Vice President — Corporate Planning & Strategic Initiatives Shaun Revere Chief Executive Officer Blake Trahan Vice President - Marketing & Sales Mickey Franco Director, Terminal Services Joined SemGroup in April 2014 and has over 25 years of experience in the terminal industry Previously served as managing director of Oiltanking GmbH, an independent global storage provider based in Germany Helped build Oiltanking's Houston Ship Channel Position and led the MLP, h was eventually sold to Enterprise Products Partners Joined SemGroup in November 2009 and has 30 years of experie…

Slide 6

Key Areas of Operation and Growth CANADA Unmatched H,S gas processing platform in liquids-rich Western Canadian Sedimentary Basin. South Dakota Nebraska MID-CONTINENT Crude, NGL and gas processing assets in the DJ and Anadarko Basins. GULF COAST Strategic position on Houston Ship Channel with product storage, refinery connectivity and deepwater marine access. NYSE: SEMG semgroupcorp.com @Sflnfimr

Slide 8

Driving Shareholder Value Stable and growing cash flows with 60% take-or-pay Dividend growth rate of 5% with ample coverage Significant long-term upside in Canada and U.S. Gulf Coast Simplified Portfolio T, e Clear Path to Long-Term Growth NYSE: SEMG B semgroupcorp.com gSemeup'

Slide 11

Crude Oil Characteristics Crude oils are blends of hydrocarbon molecules ¢ Classified and valued dependent on density, sulfur content and acidity Density commonly measured in API gravity (relative density of crude to water) * API gravity greater than 10 is lighter, floats on water * API gravity less than 10 is heavier, sinks in water Sulfur content determines if crude is sweet or sour ¢ Sweet = Sulfur content less than 0.7% * Sour = Sulfur content greater than 0.7% Acidity is measure by Total Acid Number (TAN) * High acid crudes are those with TAN greater than 0.7 * Acid crudes are corrosive to refinery equipment Require greater investment to process significant volumes or higher TAN levels…

Slide text above is read directly from the HFOTCO (Houston Fuel Oil Terminal Company) deck PDF embedded on this page.

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