Investments for the Future

June 20, 2023

Written By Adam Buckallew

Much has changed in the nearly 100 years since MFA Oil Company’s founding, but the need for a dependable energy supplier remains as vital as ever for the cooperative’s farmer-owners.

MFA Oil understands the importance of investing in infrastructure to ensure the success of its member-owners. The cooperative is committed to building and maintaining the infrastructure members rely on, from fuel and propane delivery to its extensive network of Petro-Card 24 fueling stations. These investments not only improve the efficiency and reliability of the co-op’s operations but also provide tangible benefits to MFA Oil members.

Kenny Steeves, senior vice president of MFA Oil operations, said the cooperative is continually working to ensure the needs of members and customers are met by balancing demand with sufficient supply infrastructure.

“As a farmer-owner cooperative, we are always looking for ways to add value for our members,” Steeves said. “That means we are providing timely deliveries, dependable supply, eliminating environmental risk for our communities and neighbors, and providing a safe work environment for our employees.”

Petro-Card 24 Growth

The company continues to expand its network of Petro-Card 24 locations. The company has built or upgraded 13 locations since 2019. All new or revamped locations have been equipped with large-volume tanks to allow for deliveries from fuel transport trucks, which frees MFA Oil drivers to focus on customer deliveries rather than refilling Petro-Card 24 stations.

Steeves said new Petro-Card 24 locations and sites that have received upgrades are determined by how much value they would bring to the membership.

“We have more than 180 Petro-Card 24 locations, and we continue to evaluate potential sites that would further enhance the value of the network to our member-owners,” he said.

Beyond tank upgrades, the company recently installed digital price signs at 15 Petro-Card 24 stations with plans to install another 18 within the near future.

Environmental and Operational Upgrades

When company fuel tanks begin to show signs of leak risks, they become a priority target for replacement. Such was the case in Garnett, Kan., where the bulk plant was rebuilt in 2022. MFA Oil acquired the Garnett plant when it purchased Lybarger Oil in 2015.

“We have a duty to do what’s right for our customers, our employees and the community,” said Tom Procter, MFA Oil director of safety and maintenance. “Before our equipment becomes aged to the point where it can compromise safety or product quality, we make changes.”

The new, state-of-the-art equipment the cooperative installed helps drivers refuel their delivery trucks more quickly, and, in turn, get fuel to customers faster.

MFA Oil has invested in larger, double-walled tanks at 22 locations throughout its eight-state trade territory in recent years. The upgraded tanks have a built-in secondary containment compartment that is vacuum sealed. The backup containment built into the tanks protects against leaks and eliminates the need for a concrete containment area around the tanks. Additionally, the outer wall of a double-wall tank protects the inner layer from snow, rain, sleet and other weather conditions that cause rust. With proper maintenance, double-walled tanks can last up to 50 years.

The company is also investing in new propane and refined fuel storage sites in Indiana, Kentucky and Tennessee. The new storage locations will allow drivers to refill their trucks at strategically placed sites, lowering the number of miles they must drive, reducing stress on drivers and their trucks and improving logistics.

Beyond tank and storage improvements, MFA Oil is working to upgrade its offices at six locations. The company has built or acquired new offices in Deering, Mo.; Gower, Mo.; and Paragould, Ark. Construction is underway or soon to begin on new offices in Butler, Mo.; Kirksville, Mo.; and Pryor, Okla.

“Adding strategic storage sites and rebuilding our aging infrastructure is integral to our plan to ensure we best serve the needs of members and customers,” Steeves said. “We continue to evaluate these types of projects on an annual basis.”