It's one of the most relaxed, friendly - and efficient - crude oil marketing offices in Calgary. And that's no accident.
Four experienced founding partners were determined to put their personal stamp on Navitas Energy Group Ltd. when they set up shop two Septembers ago. They decorated their office with a stunning collection of sports memoribilia, then rolled up their sleeves and applied themselves to setting the highest standard of customer service they could muster.
Among other indicators, their balance sheet tells them they're heading down the right track: Revenue has steadily increased and the company's core of satisfied clients continues to grow.
In addition, they have recently signed a facility management agreement with Petrofund Energy Trust to add value to an underutilized pipeline asset in Manitoba. "This is a great opportunity for us to showcase our ability and enhance upstream assets deriving additional value for our customers" noted Scott Holmes.
| Clockwise, from top left, Gord Hedge, Michael Turner, Michael Campbell and Scott Holmes of Navitas Energy Group Ltd. |
Needless to add, the partners are well pleased. So Holmes, Gord Hedge, Michael Campbell and Michael Turner are preparing to host their second Customer Appreciation party, in sincere gratitude to the people who made it happen: their valued clients.
"It's only been two years," acknowledges Hedge, a 40-year veteran of the crude oil marketing business who happens to be one of the most savvy players in the business. "But major producers and major pipeline operators have stood up and taken notice of us."
Be that as it may, Navitas doesn't cater to the mega'-producers. Instead, this closely knit team of professionals has carved out a niche market with the small to mid-sized crude oil producer in mind.
"Nobody in the crude oil marketing industry has done things quite the way we do," explains Campbell.
He and his colleagues describe Navitas Energy as unique. Navitas is what's known as an open shop. When client-producers seek to find a buyer for their crude oil, the Navitas team scours the open market to find and broker the best possible deal.
"It just makes sense," chimes in Holmes. "The more money we make for our customers translates to more money for us. We don't get paid unless we're making money for our clients."
Most other players in the same business do things a bit differently, buying crude oil outright from producers and then selling it on the open market. In short, they take all the risk and hold on to whatever profits may accrue.
"But we share the risk with the producer," Holmes elaborates.
In short, Navitas takes the place of a full-time marketing representative for producer'-customers, a luxury most small or mid-sized companies can't afford.
In effect, these clients outsource their sales and marketing needs to Navitas. This gives them the opportunity to turn over their assets to some of the best sales pros in the business, allowing themselves the time to focus on their primary task, i.e. extracting one more barrel of oil from the Western Canadian Sedimentary Basin.
Navitas prides itself on giving the most bang for a client's buck, specializing in the exploitation of market volatility and improving wellhead netbacks, while reducing a customer's exposure to fluctuating commodity prices and stream differentials.
Working on the "in-trust" concept, Navitas offers financial security by having all sales transactions flow through a "lock-box" trust.
"Then the trust pays the producer, concluding the transaction," says Holmes.
"We don't get our share until every one has paid."
When Holmes, Hedge, Campbell and Turner - former colleagues at a much larger company - drafted their original business plan, they agreed on the direction they wished to follow, ably summed up by Michael Campbell: "We wanted the company to become a niche player. We had already learned that it's impossible to properly service your customers when they number 100 or more," he begins.
"We wanted to attract about 20 clients and we were determined to provide them with the level and quality of service they have a right to expect," Campbell stresses.
This conscientious, committed group is satisfied to service the needs of a small core group of producers. There's an underlying sense of pride, too, in the fact the partners began the business from scratch, without external financial backing. Many of their industry colleagues were skeptical about Navitas's chances for success.
But a certain anniversary celebration, set for this month, is the partners' opportunity to tell the world: Navitas Energy Group will continue to be a unique player in Calgary's crude oil marketing business.
For more information, see the Navitas website: www.navitasenergy.com.






