QBM Consultants LLC and Partners JV LP (Partnership) is a master limited partnership engaged in the wholesale and commercial distribution of refined petroleum products, and provides ancillary services to companies domestically and internationally. The Company’s business is divided into two segments: Wholesale and Commercial. The Wholesale segment includes sales of gasoline, distillates and residual oil to resellers of transportation fuels, home heating oil retailers and wholesale distributors. The Commercial segment includes sales of unbranded gasoline, home heating oil, diesel, kerosene and residual oil to customers in the public sector and to large commercial and industrial customers, primarily either through a competitive bidding process or through contracts of various terms. This segment also purchases, custom blends, sells and delivers bunker fuel and diesel to cruise ships, bulk carriers and fishing fleets generally by barges. Partnership has three wholly owned operating subsidiaries, The Company’s operations and activities are managed by its general partner, QBM GP.
During the years 2008 through 2009 the Company owned, leased or maintained storage facilities at 9 refined petroleum product bulk terminals, each with the capacity of more than 50,000 barrels, including 6 located throughout the Northeast, which are supplied primarily by marine transport, pipeline, rail or truck and collectively have approximately 8 million barrels of storage capacity. Partnership also has throughput or exchange agreements at more than 30 bulk terminals and inland storage facilities. The Company purchases its refined petroleum products primarily from domestic and foreign refiners (wholesalers), traders and producers. During 2008, gasoline, distillates and residual oil accounted for approximately 52%, 42% and 6%, respectively, of the Company’s total volume sold. Distillates are further divided into home heating oil, diesel and kerosene. In 2008, sales of home heating oil, diesel and kerosene accounted for approximately 78%, 20% and 2%, respectively, of its total volume of distillates sold.
The Partnership sells Crude Oil, D2 Diesel Fuel, Jet Fuel, Mazut and Rebco. The Company sells grades of unbranded gasoline. It sells conventional gasoline and ethanol blended gasoline in the markets that require such products. The Company specially blends residual oil for users in accordance with their individual power plant specifications.
During 2008, the Company’s Wholesale sales accounted for approximately 4% of its total sales. The Company sold unbranded gasoline and diesel, including Diesel One, to approximately 50 wholesalers and retail gasoline station operators, vehicles, fleet and marine users, The Partnership has marketing arrangements with a supplier of unbranded gasoline in several regions.
The Company’s Commercial segment includes custom blended distillates and residual oil delivered by barges or from a terminal dock. In 2008, this segment accounted for approximately 96% of volume for all refined petroleum products sold. In 2009 QBM acquired its shares in more than two millions barrels of Kazakhstan crude oil. Its commercial customers include federal and state agencies, municipalities and industrial companies, many autonomous authorities, such as transportation authorities and water resource authorities, colleges and universities and a select group of small utilities. The Company’s commercial customers also include cruise ships, dry and wet bulk carriers, fishing fleets and other marine vessels. Partnership blends distillates and residual fuel to the customers' specifications at the terminal facility or on the barge and then deliver the resulting bunker fuel directly to the ship or barge. Unlike its Wholesale segment, in its Commercial segment, the Company generally arranges the delivery of the product to the customer's designated location. It typically hires third-party common carriers to deliver the product.
Crude oil and its byproducts such as fuel oil, gasoline, diesel D2 fuel, jet fuel, EN590, rebco, liquified petroleum gas, mazut and copper isotopes powder are physically marketed through QBM GP's commodity sales departments.
To support the activities of these departments, QBM GP companies holds ownership interests, both directly and indirectly, in several strategically located oil refining operations as well as a diversified portfolio of oil producing assets.
QBM GP companies' supplies are acquired in part through product produced from its oil pits, long-term contracts from key-producing countries, as well as by traditional short and medium-term purchase agreements. QBM GP and its subsidiaries deliver to a variety of customers, including the major and medium sized oil companies, Government purchasing agencies and industrial end-users.
Oil and Gas activities are handled primarily by QBM GP offices in Houston, West Bloomfield and Kazakhstan.