SGR Energy, Inc.

The Fastest-growing Heavy Fuels Company in the United States


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SGR Energy: Disrupting a Traditional Industry

SGR Energy is a rapidly growing heavy fuels blending and distribution company that has developed a proprietary, and protected blending technology platform to cost-effectively incorporate cleaner burning fuels and blendstocks for commercial and industrial burning.

The Company is operated by a 25-year veteran of the fuel oil industry. He has previously been involved in the initial and growth stages of two other fuel oil companies and has utilized his direct and well-established relationships with customers and suppliers in growing the Company to its current level. 

Where SGR has a significant, and sustainable competitive advantage is in our proprietary fuel blending program. We believe this creative solution will be disruptive to the heavy fuels industry once we are able to scale our business to deliver on the current backlog of contracts.

Since 2011, SGR Energy has experienced explosive growth by blending the highest quality environmentally-friendly fuel oil in the world. At the end of 2016, after five years of being in business, SGR had traded over 1 Million barrels of fuel. Our 2016 revenue was just under $20MM, and in just the first two months of 2017 we have already exceeded our 2016 revenues. 

SGR Energy is the fastest-growing heavy fuels company in the United States, and most likely, the world.

We secure feedstocks from refineries, blend them to a customer’s specification at a land-based terminal, and ship product via waterway to customers.

Though not a green product, we supply the lowest-cost, clean-burning option out there. We buy residual oil from refineries and blend it with alternative feedstocks that we buy, and then sell this custom blended fuel to power plants and the shipping industry. Our service is a double win for the environment, as we maximize use of resources and provide our global trading partners with a cleaner-burning, low sulfur fuel.

About 5 billion barrels of fuel oil are traded per year. However, the costs associated with new environmental regulations and standards jeopardize profits in this lucrative market.

We are able to provide fuels that meet the new standards, and as a result, SGR will deliver around 3 million barrels to Central American customers in 2017, and plans to begin delivering even larger shipments to Asia later in the year.

SGR started with one million dollars of seed investor money in 2011. Our founder, Tom San Miguel, returned that seed money to the investors plus forty percent, 15 months later. SGR Energy has rapidly grown revenue to close to $20 million in 2016, and in January 2017 alone we sold 148,000 barrels of fuel to our customers in the U.S. and the Caribbean bringing in over $10 million. 2017 will be a banner year for the company.

Our unique service platform and methodologies, highly-credentialed team, and vast industry and project experience, enable us to expertly complete trades with exceptional results.

SGR Energy competes in dynamic, fast-growing, and global markets – for fuel blending and energy trading. No. 6 Fuel Oil is an $18 billion business.

We blend fuels and manufacture a 1% sulfur, #6 Fuel Oil that is ready for commercial and industrial burning. In other words, we provide a cleaner-burning fuel that can be produced at a large scale, using technology wholly owned by SGR.

What is #6 fuel oil?

The simple explanation is that it is literally the bottom of the barrel. After refineries take everything (gasoline, diesel, lubricants, asphalt, and liquid petroleum gases) out of the crude oil, what’s left is a thick black residual oil. That material is then blended with middle distillates – and in some cases, petrochemicals – to a uniform specification.

SGR Energy contracts third-party inspection companies that certify to seventeen different specifications ensuring that our fuel meets our customer’s requirements and is free of contaminants.

No. 6 Fuel Oil has several major uses, however our company primarily focuses on power generation utilities and the bunker fuel used aboard ships. The power generation market is where we can leverage the highest margins.  

Other companies aimed at producing industrial fuels that are clean burning have encountered cost and scaling issues, and have thus far managed to offer a much less desirable product.

In contrast, our proprietary blending technology (which includes the ingredients that we use and understanding how different additives work together, as well as our own method for adding blends in at particular times and in specific quantities) allows us to provide high-quality fuels and blendstocks to our customers at a fair price.

SGR Energy, in addition to No. 6 Fuel Oil, is able to deliver these products:

What truly sets SGR apart?

In all our work, we subscribe to the simple credo of saying what we will do and doing what we say. We hold ourselves, our suppliers, and our customers to extraordinarily high standards of performance, ethics, and accountability.

We encourage our customers, suppliers, and each other to focus and act on what is doable and good, and to approach challenges and difficulties with a pro-active, problem-solving mindset.

Over the last three years, SGR Energy has experienced significant growth by focusing on our core business of blending the highest-quality fuels and providing a reliable supply to our customers.  

We remain focused on technological and product innovation in our fuels and processes to enhance and differentiate our company from other suppliers. Our commitment and innovative spirit leads to new market opportunities and strengthened customer relations.

The foundation of our operating structure is a powerful entrepreneurial culture, which builds ownership and inspires pride in our employees. We believe in our culture, backed by a “pay for performance” compensation structure, which makes us the company we are today.

What are the Keys to SGR’s Success?

  • SGR's commitment to uniform process, approach, and methodology in our blending process. This commitment allows us to scale at a rapid rate without compromising fuel quality.
  • Cost Efficiency. By utilizing our proprietary blending process, SGR Energy can cost effectively incorporate high-margin blendstocks in our fuel while improving the fuel quality.
  • Access to Industry leading professionals. SGR Energy has identified several market-making professionals to join our team. We will utilize a pay-for-performance structure to lure this top talent.
  • Secured International Contracts. SGR Energy will execute on secured international contracts and supply fuel to Central America and China.

By the end of 2016, after five years of being in business, SGR will have traded over 1 Million barrels of fuel.  Our 2016 revenue was just under $20MM, and in January 2017 we brought in over $10MM in revenue. 2017 looks to be a spectacularly successful year with the likelihood of revenues running into the hundreds of millions!

Interested in being part of the future SGR Energy? Please request access to the Business Plan page of this profile!

Tom San Miguel is the Founder and CEO of SGR Energy, Inc. Tom is a native Houstonian, a proven leader and executive in the Fuel Oil (FO) industry with over 25 years of experience in senior petroleum management, marketing, and field operations. In 1990, Tom was the first employee of NMM Enterprises, Inc., a Gulf Coast Fuel Oil trading company, and worked his way up to be the Chief Operations Officer. The CEO and Founder of NMM, David Kramer, was one of the first key employees for a now billion-dollar worldwide marketing, blending, and storage company of Fuel Oils, refinery feedstocks, and bunker fuels. Tom was responsible for over 600,000 BBLS per year of total storage capacity as well as NMM’s 21 full-time employees.

Tom attributes his success in the industry to his large network of business relationships and his commitment to integrity and leadership through accountability. Tom has served on several boards and a variety of organizations throughout Tyler and Houston, Texas. He has served as a board member for the Hispanic Business Alliance, Hispanic Leadership Council, Meals on Wheels Ministries, Friends of Scouting, Hispanic Education Alliance, and is an active member at Stonebridge Church. He is a dedicated husband to wife Tiffany and father to children Nicole, Courtney, Cole, Megan, Kramer, Landry, and Ryker. In his spare time, he enjoys golf, hunting, and Longhorn sports.

Andrea Reich is the Vice President of Operations for SGR Energy, Inc. Andrea is a native Houstonian, but her career has also taken her to other major cities across the U.S., such as Seattle, Washington; Jacksonville, Florida; and Aspen, Colorado. Andrea has brought over 23 years of experience in Management, Marketing, Customer Service and Sales experience and knowledge to SGR Energy, Inc. Throughout her vast array of business experience, Andrea’s career industries have ranged from Health and Fitness to Commercial & Residential Construction, to the Oil and Gas industry.

Andrea volunteers for many organizations such as The American Red Cross, The American Heart Association, Habitat for Humanity, and most recently, Big Brothers & Big Sisters. She is a participatory member of Victory Christian Church. Andrea is also actively associated with the NNA as well as the IPAA. In her spare time, she enjoys cooking, traveling, and spending time with her family and friends. Andrea credits her success in business to her consistent dedication to leadership, high moral standards, and her many life-long professional and personal relationships.

Ken Piddington is the CIO for SGR Energy, Inc. Ken is an experienced business leader and technology strategist and executive advisor for Fortune 1000 companies. Ken is the former CIO of Global Partners LP, a Fortune 500 midstream logistics and energy marketing company, where he was responsible for leading and implementing the technology strategy during a period of unprecedented growth. He has extensive merger & acquisition experience and is recognized as an industry thought leader.

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