The refined petroleum marketing and distribution industry in the United States primarily consists of the marketing and distribution of gasoline, distillate fuel oil (mainly diesel), lubricating oil and residual fuel oil and the provision of value-added logistics services. Independent fuel distributors purchase products from refiners or other distributors and then resell them to fixed retail outlets, end users or other distributors. According to U.S. Department of Energy 2006 data, the domestic refined petroleum marketing and distribution industry is approximately $360 billion in aggregate annual revenue.

According to the U.S. Energy Information Administration, from 1980 to 2006, U.S. consumption of distillate fuel oil, which is used to produce diesel fuel, increased from 2.9 million barrels per day to 4.2 million barrels per day. Continuing economic growth and global industrialization is expected to drive the demand for diesel fuel, since it is the primary fuel used in trucking, railroads and various commercial and industrial applications.

Domestic consumption of distillate fuel oil is expected to reach 4.5 million barrels per day in 2010 and 4.9 million barrels per day in 2015. The U.S. economy is the largest consumer of petroleum-based products in the world. Given its heavy reliance on these products, demand is relatively insulated from price movements.

According to Petroleum Trends International, Inc., lubricant demand in the United States reached an estimated 2.8 billion gallons, valued at $15.7 billion in 2006. The largest segment is the industrial lubricants market, at an estimated 1.3 billion gallons, followed by consumer automotive at 831 million gallons and commercial automotive at 635 million gallons.

The Company is one of the largest independent distributors of diesel fuel in the United States. The Company also provides customers with gasoline. The Company supplies diesel fuel and gasoline to customers in the drilling, exploration and production, railroad, trucking, marine and mining sectors.

Developed in 2004, Best Buy, a proprietary procurement application, is the core tool the Company uses to source and manage millions of gallons of fuel on a daily basis. Customer fuel orders are transmitted through Best Buy, which uses a proprietary algorithm to calculate up to 20 supply and route alternatives for each order. For each alternative, the system calculates the cost per gallon of delivering the product, including freight costs.

With its acquisition of Pecos and Canyon in September 2006, the Company became one of the largest distributors of commercial and industrial lubricants in the United States. The Company supplies lubricants to customers in the drilling, exploration and production, marine, automotive and trucking sectors.

The Company offers a wide range of commercial and industrial lubricants and services to its customers, including dispensing equipment and equipment installation and repair. In addition, the Company is the largest distributor of Graco dispensing equipment in the United States. The Company also owns and operates a lubricant blending facility on the West Coast, which has become more strategic as companies look for tailored lubricant products to best maintain their equipment.

The Company provides value-added energy logistics services that include fuel management and inventory control, fixed and contractual fuel pricing, equipment leasing programs for storage and dispensing of products and on-line access to fuel and equipment reports.

Gross profit was $139.6 million for the nine months ended March 31, 2007 compared to $45.5 million for the nine months ended March 31, 2006, an increase of $94.0 million or 206.4%.

Depreciation and amortization was $13.9 million for the nine months ended March 31, 2007 compared to $5.0 million for the nine months ended March 31, 2006, an increase of $8.9 million or 176.2%.

Interest expense was $14.6 million for the nine months ended March 31, 2007 compared to $4.5 million for the nine months ended March 31, 2006, an increase of $10.1 million or 223.1%.

Net income increased to $14.6 million for the nine months ended March 31, 2007 from the $6.7 million earned for the nine months ended March 31, 2006, an increase of $7.9 million or 117.9%.