Tag: Pilot Flying J

Berkshire Hathaway’s Pilot Appoints Gary Hoogeveen as President of Pilot Energy

Post author By David Mazor
Post date April 29, 2024
No Comments on Berkshire Hathaway’s Pilot Appoints Gary Hoogeveen as President of Pilot Energy

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Berkshire Hathaway’s Pilot, a key player in fuel supply and North America’s largest travel center network, has made a significant move by appointing Gary Hoogeveen as president of Pilot Energy. With over two decades of industry and business expertise, Hoogeveen most recently served as CEO of Berkshire’s Rocky Mountain Power.

Adam Wright, CEO of Pilot, expressed enthusiasm about Hoogeveen joining the team, citing his extensive leadership experience and valuable perspective. Wright emphasized the pivotal role of the energy sector in Pilot’s operations and its dedication to meeting customer needs amidst evolving energy landscapes.

In his new role, Hoogeveen will lead Pilot Energy’s integrated fuel supply chain, overseeing upstream infrastructure, asset management, business development, fuel procurement, and logistics. Moreover, he will drive innovation in electric and alternative energy solutions, aligning with Pilot’s vision of advancing the industry while optimizing traditional fuel supply.

Prior to joining Pilot, Hoogeveen served as CEO of Rocky Mountain Power and held various management positions within Berkshire Hathaway Energy since 2000. His academic background includes a Bachelor of Science in physics from the University of Northern Iowa and a Ph.D. in space physics from Rice University.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Pilot Flying J

Pilot Adding 10 New Travel Centers in 2024

Post author By David Mazor
Post date March 11, 2024
No Comments on Pilot Adding 10 New Travel Centers in 2024

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Pilot Travel Centers LLC, a subsidiary of Berkshire Hathaway, is gearing up for significant expansion and improvement in 2024. With plans to add 35 new travel centers and revamp over 75 existing locations, the company is committed to enhancing its services and presence across the United States.

The expansion efforts include the construction of 10 new travel centers, which will not only increase the company’s footprint in various states but also offer additional amenities and over 500 truck parking spaces. Furthermore, the addition of 25 dealer locations to the network will enable drivers to access more stops eligible for Pilot Travel Centers LLC’s loyalty perks and programs.

Allison Cornish, Senior Vice President of Store Modernization and Development at Pilot Travel Centers LLC, emphasized the company’s focus on community expansion and service enhancement. She highlighted the significant investments being made to ensure an exceptional experience for drivers at every stop along their journey.

In alignment with its New Horizons initiative, the company plans to renovate an additional 75 locations this year, bringing the total number of remodels to nearly 200 since the program’s launch in 2022. These renovations will include upgrades such as refreshed restrooms, expanded food and beverage options, and updated technology, aiming to provide a modern and comfortable environment for customers.

Moreover, Pilot Travel Centers LLC is enhancing its maintenance and tire services through its partnership with Southern Tire Mart. With plans to add more than 30 shops to its travel centers over the next year, the company aims to provide top-of-the-line services to its trucking customers, bringing the total number of locations to over 85 nationwide.

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Acquisitions Pilot Flying J

Berkshire Acquires Remaining 20 Percent of Pilot From Haslems

Post author By David Mazor
Post date January 16, 2024
No Comments on Berkshire Acquires Remaining 20 Percent of Pilot From Haslems

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Berkshire Hathaway now has another wholly-owned company, as it has completed its purchase of the remaining 20 percent share of the Pilot Corporation that the Haslems owned.

Recently, the two sides had settled their dispute over the valuation of the remaining 20 percent share of the Pilot Corporation that the Haslems owned.

The Haslem family had sued Berkshire contending that its change to pushdown accounting had hurt their valuation in regards to Berkshire’s buyout of the remaining 20 percent stake that the Haslems still owned of the travel center company. Berkshire counter sued contending that the Haslems had illegally engaged in a bribery scheme where top executives received payments in exchange for inflating earnings in a manner that would benefit Haslems on the price Berkshire would ultimately pay to the Haslems.

The matter was due to be fought out in two-day trial in early January in Delaware court, but a settlement ended all litigation.

On Tuesday, Berkshire Hathaway announced that “Pursuant to the terms of a settlement agreement reached with Pilot Corporation, Berkshire Hathaway Inc. has acquired Pilot Corporation’s remaining 20% interest in Pilot Travel Centers LLC effective today. Berkshire Hathaway now owns 100% of Pilot Travel Centers.”

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Pilot Flying J

Berkshire Settles Pilot Dispute With Haslems

Post author By David Mazor
Post date January 8, 2024
No Comments on Berkshire Settles Pilot Dispute With Haslems

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Berkshire Hathaway has settled its dispute with the Haslem family over the valuation of the remaining 20 percent share of the Pilot Corporation that the Haslems owned.

On Sunday, Berkshire Hathaway announced that “it has reached an agreement to fully settle the Delaware litigation, including all claims and counterclaims, between Pilot Corporation and Berkshire Hathaway Inc., Pilot Travel Centers LLC, and National Indemnity Company.”

The matter was due to be fought out in two-day trial this week in Delaware court, but the settlement has ended all litigation. No terms of the settlement have been released.

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Pilot Flying J

Berkshire Hathaway Breaks with Tradition, Appoints New Executives to Lead Pilot Company

Post author By David Mazor
Post date April 10, 2023

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In a surprise move, Berkshire Hathaway has broken with its longstanding tradition of only acquiring companies that provide management and has appointed new executives to lead Pilot Company.

The largest operator of travel centers in North America, Pilot Company has become a pillar of the transportation ecosystem, providing fuel and other services to millions of travelers each year.

The announcement came today that Adam Wright will be joining the company as Chief Executive Officer, and Joe Lillo will become Chief Financial Officer. Both executives are longtime Berkshire Hathaway employees, and they will officially take their positions on May 30, 2023. Shameek Konar and Kevin Wills, the current CEO and CFO, will be leaving their respective positions after supporting the transition.

After Berkshire Hathaway became the majority owner of Pilot Company on January 31, 2023, they identified Wright and Lillo as the best candidates to lead the company’s long-term growth and vision plans. Wright has over two decades of experience as a leader in the energy sector, and Lillo has been an integral part of the Berkshire Hathaway Energy family of businesses for more than 25 years.

Greg Abel, Vice Chair, Non-Insurance Operations for Berkshire Hathaway, commented on the appointment, saying, “Pilot Company has become one of the most future-forward companies in our industry. Adam’s energy expertise, leadership, and focus on customer satisfaction will help ensure Pilot Company remains a pillar of North America’s transportation ecosystem for decades to come. From the beginning of our journey together, Berkshire Hathaway recognized Pilot Company as a strong business that was well-positioned for the long term and was backed by an innovative and hardworking team. I am confident Adam and Joe have a solid platform from which to propel the company forward.”
It’s an honor to join the Pilot family and to lead such an influential company that has fueled millions of journeys over the past 65 years,” said Wright. “Pilot remains focused on meeting the unique needs of our pro drivers, fleets, guests, and Team Members while advancing a strong company strategy that positions us for the future.”

The Haslam family continues to be an integral part of the company with 20 percent ownership and James A. Haslam II, founder of Pilot Company, and James A. “Jimmy” Haslam III as members of the Board.

“I want to thank Shameek and Kevin for all that they have done for Pilot Company. They have been instrumental in leading our over 30,000 Team Members through several years of growth and innovation,” said Jimmy Haslam. “While we express our utmost gratitude to them, I also want to welcome Adam, Joe and their families to Pilot Company and to the Knoxville community.”

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Acquisitions

Pilot Company Is Now a Berkshire Hathaway Subsidiary

Post author By David Mazor
Post date February 15, 2023

Berkshire Hathaway has moved from a minority ownership stake to a majority ownership stake in Pilot Company, the largest operator of truck stops and rest stops in North America.

In January, Berkshire acquired its long-planned 80 percent equity position in Pilot from the Haslam family, and the family continues to have a 20 percent stake in the company.

In 2017, Berkshire took a 38.6% stake in Pilot, which has 800 locations under the Pilot and Flying J brands.

Pilot is currently in the midst of its three-year $1 billion New Horizons project that is its most significant investment in store modernization to date. It will fully remodel more than 400 Pilot and Flying J travel centers and make additional upgrades at several more locations across the country.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Pilot Flying J

Pilot Company and Kodiak Robotics Partner to Bring Self-Driving Truck Services to Pilot and Flying J Travel Centers

Post author By David Mazor
Post date August 25, 2022

Pilot Company, the largest operator of travel centers in North America, announced today a strategic partnership with Kodiak Robotics, Inc., a leading self-driving trucking company. Through this partnership, Pilot Company and Kodiak are collaborating to develop autonomous truck services at Pilot and Flying J travel centers.

Pilot Company and Kodiak are in the process of creating an autonomous truckport in the Atlanta area to evaluate potential service offerings and explore scalable solutions. These services will include spaces to pick-up and drop-off autonomous trucking loads; conduct inspections; maintain and refuel trucks; and the ability to transfer data for processing, such as feature development and mapping. To strengthen the ability to work together to develop a solution that works best for its customers, Pilot Company has made a strategic investment in Kodiak and will join the company’s Board of Directors.

“Pilot Company is committed to providing best in class service to its customers today and going forward,” said John Tully, Vice President of Strategy and Business Development at Pilot Company. “In making this strategic investment, we understand that our customers have a need for real solutions that help address the growing demand to move goods and Kodiak is a strong leader in the autonomous trucking space. As we explore the future of autonomous trucks and how we can best support these customers, we will continue to be the travel center network that the trucking industry and professional drivers can count on for the services and care they need.”

Combining Pilot Company’s nationwide network of travel centers and services with Kodiak’s technology will play a crucial role in the deployment of autonomous trucks. Kodiak will lend its expertise as Pilot Company looks to integrate autonomous truck services into its operations. The partnership will further define service and maintenance requirements, operational necessities, facilities planning, and more to meet the needs of autonomous trucks.

“Pilot Company’s industry-leading network of highway-adjacent travel centers provides unprecedented geographic reach for the launch and scale of Kodiak’s fast-growing network of autonomous trucking lanes,” said Don Burnette, Founder and CEO of Kodiak Robotics. “Their customer first approach, with a focus on technology, scale, and infrastructure, makes Pilot Company an ideal partner to support the service and maintenance of self-driving trucks nationwide. We are honored to have Pilot Company as an investor, strategic partner, and supporter of our continued commercial footprint growth.”

Kodiak entered a hyper-growth phase in 2022, significantly expanding its service footprint and partner network. In July, the company announced a partnership with 10 Roads Express, a provider of time sensitive surface transportation for the U.S. Postal Service, expanding the company’s service to Florida. Earlier this year, Kodiak announced a new route between Dallas and Oklahoma City with CEVA Logistics and a route between Dallas and Atlanta with U.S. Xpress. The company has been delivering freight commercially since 2019 and currently has six routes that run regularly between Dallas and Houston, Austin, San Antonio, Atlanta, Oklahoma City and Jacksonville, Florida.

Berkshire Hathaway and Pilot

In 2017, Berkshire Hathaway made a $2.76 billion investment in Pilot, obtaining an initial 38.6 percent stake in the company, and Berkshire will become the majority owner in 2023.

Tags Pilot Flying J

Pilot Flying J

Pilot Company and GM Partner on Network of EV Charging Stalls

Post author By David Mazor
Post date July 14, 2022

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Berkshire Hathaway-backed Pilot Company and automaker General Motors are collaborating on a national DC fast charging network that will be installed, operated and maintained by EVgo through their eXtend offering.

The network of 2,000 charging stalls will be co-branded “Pilot Flying J” and “Ultium Charge 360”, and will be powered by EVgo eXtend and open to all EV brands at up to 500 Pilot and Flying J travel centers.

GM customers will receive special benefits like exclusive reservations, discounts on charging, a streamlined charging process through Plug and Charge and integration into GM’s vehicle brand apps providing real-time charger availability and help with route planning.

The Pilot and Flying J travel centers plan to feature numerous fast charging stalls provided by EVgo, including high power fast chargers capable of offering up to 350 kW1. EVgo, which is also working with GM to add more than 3,250 fast chargers in American cities and suburbs by the end of 2025, was chosen as a strategic collaborator due to its expertise in building, operating and maintaining DC fast charging infrastructure. Many of these sites will feature canopies to help protect customers from the elements while charging, as well as pull-through capability allowing convenient charging for electric pickup trucks and SUVs pulling trailers.

“We are committed to an all-electric, zero-emissions future, and ensuring that the right charging infrastructure is in place is a key piece of the puzzle,” said Mary Barra, GM Chair and Chief Executive Officer. “With travel centers across North America, Pilot Company is an ideal collaborator to reach a broad audience of EV drivers.”

“GM and Pilot Company designed this program to combine private investments alongside intended government grant and utility programs to help reduce range anxiety and significantly close the gap in long-distance EV charger demand,” said Shameek Konar, Pilot Company Chief Executive Officer. “Our travel centers are well-equipped to accommodate EV charging with 24/7 amenities and convenient proximity to major roadways across the country. We look forward to collaborating with GM and the U.S. Department of Transportation to make convenient coast-to-coast EV travel a reality through our national network of travel centers.”

Third-party research shows that widespread access to highway charging, particularly in underserved urban and rural areas, is a significant barrier to mass EV adoption.

“EVgo, GM and Pilot Company share a commitment to building an electric fueling network that increases access and makes the shift to electrification as frictionless as possible for all. We look forward to this collaboration and ensuring the EVgo network provides nationwide coverage, including critical corridors for road trips,” said Cathy Zoi, CEO at EVgo. “Through EVgo eXtend, we are demonstrating yet another innovative pathway to help America electrify — and showcasing why EVgo’s technology and industry leadership make us the partner of choice to site hosts, automakers and drivers alike as we work together to deliver a cleaner future of transportation.”

This collaboration is targeting the installation of charging stalls at 50-mile intervals across the U.S.

For GM, this development is one more step of its nearly $750 million investment in EV charging infrastructure, including:
• Enabling access to more than 100,000 charge points in the U.S. and Canada through its Ultium Charge 360 ecosystem
• Collaborating with EVgo to build out a network of 3,250 charging stalls in major metro areas by 2025
• Installing up to 40,000 chargers in local dealer communities through GM’s Dealer Community Charging Program, focusing on underserved rural and urban areas

This project builds on Pilot Company’s recently announced “New Horizons” initiative to invest $1 billion to fully upgrade its travel centers with more premium amenities and offerings that aren’t typically available at current EV charging locations. Guests will have access to free Wi-Fi at most locations, expanded seating and lounge areas, updated and modernized restrooms, on-site restaurants including Pilot’s signature fresh hot and cold deli, premium coffee, and shopping for travel essentials and souvenirs while their vehicles are charging. Pilot and Flying J travel centers are open 24/7, ensuring that team members are always onsite to provide consistently high service to guests.

Beyond this program, GM and Pilot Company will continue working with key stakeholders to use new and existing public-private programs to accelerate the development of more public EV charging infrastructure.

Berkshire Hathaway and Pilot

In 2017, Berkshire Hathaway made a $2.76 billion investment in Pilot, obtaining an initial 38.6 percent stake in the company, and Berkshire will become the majority owner in 2023.

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Commentary Pilot Flying J

Commentary: Government Needs to Intervene as Pilot Flying J’s CEO Warns Union Pacific Embargo Would Have “Disastrous” Consequences

Post author By David Mazor
Post date June 13, 2022

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With all the supply chain issues in the news this past year, one that has flown largely under the radar are mandatory Union Pacific railcar reductions (and a threatened embargo) of Pilot Flying J tank cars carrying urea for Diesel Emissions Fluid (DEF) and ethanol for automobiles.

The Class 1 freight railroad is trying to reduce the number of cars in its system by 2-3% due to congestion that has caused service problems, and Pilot Flying J is warning that an embargo of its tank cars could be “disastrous” for the long-haul trucking industry.

Union Pacific offers the sole service to a number of urea manufacturers that make the key ingredient in DEF, and DEF is required in all diesel trucks manufactured after 2010.

“A single railcar carries 21,500 gallons of DEF on average,” noted Pilot Flying J CEO Shameek Konar in his testimony before the Surface transportation Board in late April. “A single truck takes in 7 gallons of DEF every time they fill. . . .That implies a single railcar is providing 7,000 trucks of DEF fill.” He went on to note every missed railcar “reduces trucking potential mileage by 5 million miles.”

While Union Pacific maintains that it is trying to reduce the number of railcars in its system to reduce congestion, Konar feels that Pilot is being incorrectly penalized based on data that looked at increases in shipments between January 2022 and March 2022 that inaccurately reflect an increase in Pilot shipments, noting that it has not increased the number of railcars it is adding to UP’s system. Instead it has just become the shipper of record for a number of companies that previously shipped the railcars in their own names.

“The total number of cars has stayed the same,” Konar testified.

Konar noted that unless Pilot agreed to UP’s 26% to 50% mandated reduction in shipments, they have been threatened with shipping embargos. He added that he was unaware of any other company being asked to reduce their shipping that dramatically.

Pilot Flying J operates one the largest DEF supply networks in the country, and accounts for approximately 20 percent of the US’s over the road diesel supply and 30 percent of the DEF supply. It supplies 300 million gallons of DEF to truckers on an annual basis.

Konar said that UP’s actions come during a time when diesel inventories are already running 10-15% below the historic lows over the past five years, and that the railcar reductions “will likely sideline trucks and reduce trucking capacity.”

He also added that a 50 percent reduction would also raise fuel prices and cause DEF to run out at some locations.

As for the cuts’ impact on automobiles, Konar also warned that UP’s cutting ethanol railcar shipments by 50 percent for the ethanol needed to blend with gasoline to raise octane that originates at its plant in Nebraska and is shipped by UP to markets in Arizona and Nevada will “substantially reduce the amount of gasoline available in these markets.”

Konar believes that the railroad’s actions are “flawed, disproportionate and unprecedented.” He added that “the current situation is untenable for us.”

With record CPI inflation numbers reported just this past week, if there is any area that calls for the direct intervention of the heads of the Department of Transportation and the Department of Commerce this would be it.

Both the Commerce secretary Gina Raimondo and the Transportation secretary Pete Buttigieg need to directly focus on this issue before a trucking bottleneck sends inflation far higher.

Berkshire Hathaway and Pilot

In 2017, Berkshire Hathaway made a $2.76 billion investment in Pilot, obtaining an initial 38.6 percent stake in the company, and Berkshire will become the majority owner in 2023.

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Acquisitions Pilot Flying J

Berkshire’s Pilot Corporation Acquisition Will Not Include Its Convenience Stores

Post author By David Mazor
Post date September 29, 2021

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Berkshire Hathaway’s acquisition of the majority ownership of the Pilot Corporation, which is scheduled to be completed by 2024, will not include 40 of Pilot’s convenience stores. The stores have been sold to Casey’s General Stores, Inc. for $220 million in an all-cash transaction.

Pilot’s convenience stores are owned and operated independently from its travel center and energy businesses and were not included in the Berkshire Hathaway transaction.

In 2017, Berkshire took a 38.6% stake in Pilot, the largest operator of truck stops and rest stops in North America. The company has 750 locations under the Pilot and Flying J brands.

Berkshire is purchasing its equity position from the Haslam family, and Jimmy Haslam, the son of the company’s founder Jim Haslam, will remain in charge when the acquisition is completed. Pilot is currently ranked No. 10 on Forbes’ list of America’s Largest Private Companies.

The 40 Pilot stores will extend Casey’s presence in Tennessee and Kentucky with well-established locations primarily in the attractive Knoxville, Tennessee, market.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Tags Pilot Flying J