alt ethanol2006 brakefield

Love’s Travel Stops & Country Stores, Inc.February 16, 2006 Presentation to: The Road to Renewables 06, Ethanol/Biodiesel Workshop and Expo : 

Love’s Travel Stops andamp; Country Stores, Inc. February 16, 2006 Presentation to: The Road to Renewables 06, Ethanol/Biodiesel Workshop and Expo

History of Love’s: 

History of Love’s Started with an abandoned filling station in 1964. Entered Convenience Store business in 1972. Entered Truck Stop business in 1981. At that time, mainly operating in a 5 state area (OK, KS, CO, NM andamp; TX).

History of Love’s(Continued): 

History of Love’s (Continued) During the ensuing 15 years, Love’s grew consistently - opening 2-5 stores per year. In 1998, Love’s began a long-term expansion plan to add 10-15 stores/year. At the end of 2005, Love’s was operating 103 truck stops.

Love’s Geography: 

Love’s Geography

Love’s in 2005: 

Love’s in 2005 Total Sales of $3.90 Billion Fuel Sales of 1.60 Billion Gallons Currently Operating in 31 States Privately Held / Privately Funded + 4500 Employees

Love’s 2005 Volume Breakdown: 

Love’s 2005 Volume Breakdown Total Company Volumes: Gasoline 250,000,000 Diesel 1,350,000,000 Total 1,600,000,000

Love’s 2005 Volume Breakdown: 

Love’s 2005 Volume Breakdown Major Markets: Oklahoma Texas Gasoline 73,000,000 47,000,000 Diesel 170,000,000 347,000,000 Total 243,000,000 394,000,000 % of Total 15% 25% Amount of Biodiesel required at 20% blend: 34,000,000 69,400,000

Biodiesel-Retailers Perspective: 

Biodiesel-Retailers Perspective Benefits: Margin enhancement with recent federal and state tax credit incentives Texas-up to a .04 cent/gallon state excise tax break Illinois-with blends of 11% or higher, the state sales tax is eliminated Biodiesel has low aromatics and little or no sulfur, it has a high cetane number and is a superior lubricant Decreases dependence on foreign oil At current price levels biodiesel can be competitive with regular diesel without much tax subsidies

Biodiesel-Retailers Perspective: 

Biodiesel-Retailers Perspective Concerns: Ratable and on-spec supply Estimated total production in ’05 = 130MM/gallons At 20% blends, Love’s volumes in OK, TX and NM would consume all production Customer perception Cold weather properties Future of tax incentives Engine manufactures warranties

Love’s-Biodiesel Plans in 2006: 

Love’s-Biodiesel Plans in 2006 Continue to market biodiesel at a few stores in states with highest margin enhancement Love’s began selling agri based B11 @ Ina, IL (store #318) on April 26, 2005 and Williamsville, IL (store #249) on May 15, 2005 Results: Generally positive Love’s began offering BioWillie diesel @ Midlothian, TX (store #216) on July 22, 2005 Offering dual products-regular LSD @ 3 fueling islands and B20 @ 3 fueling islands Results: Generally positive Bio sales are running about 35% of total sales

Slide11: 

Love’s-Biodiesel Plans in 2006 (Continued) Converted Anna, TX (store 299) to BioWillie on January 25, 2006 Pricing Experience Retail price of Bio andgt; Regular DSL – Vol suffered Retail price of Bio ≤ Regular DSL – Vol is steady (35%) Continue to become more educated on biodiesel Explore opportunities of production capabilities

Love’s Future Outlook on Biodiesel: 

Love’s Future Outlook on Biodiesel If the margin enhancement remain in place, Love’s will continue to expand our biodiesel offerings Factors that would influence our decision to move forward: Customer acceptance Margin erosion Supply availability Performance issues

Slide13: 

Store 216 Biodiesel Signage

Slide14: 

Store 216 Biodiesel Signage

Slide15: 

Store 299 Biodiesel Signage