CHS 2011 Annual Report Download - page 15

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14 2011 CHS
REVIEW OF OPERATIONS
facilities, added storage, enhanced ethanol blending, and
streamlined loading technology systems. Just after fi scal
 ended, CHS announced plans for new refi ned fuels
and propane truck loading racks at Laurel, bringing to
 million the total investments planned. As they come
on line over the next three years, these projects will help
address customers’ growing diesel demand and solidify
the CHS system reputation for dependability. During the
year, innovative contracting strategies also were tested
and incorporated to help customers respond to increas-
ing price volatility and mitigate price and inventory risk.
Helping customers grow was the impetus behind other
projects as well. The Laurel refi nery brought its new ben-
zene reduction unit on line in fi scal  and implemented
processes to improve the output ratio of diesel to gasoline.
E orts continue to monitor and reduce greenhouse gas
emissions. CHS also expanded refi ned fuel storage capac-
ity on the Gulf Coast and ensured access to pipelines and
export facilities.
Overall, the ability to manage today’s challenges and
prepare for tomorrow’s market growth opportunities
helped CHS achieve excellent fi nancial performance in
fi scal , while providing reliable supplies of lubricants,
propane, renewable fuels and refi ned fuels — particu-
larly the highly regarded Cenex Ruby Fieldmaster® and
Cenex Roadmaster XL® premium diesel fuels. Refi ned
fuels completed the year with near-record results, due
to both new market penetration and historically high
industry margins. Eligible member-owners will share
in those fi scal  energy earnings through patronage
distributed during fi scal .
CHS retail operations continue to expand, providing more
opportunities to reach new customers with Cenex brand
energy products, as well as other o erings that suit spe-
cifi c customer needs while maximizing revenue and CHS
Planned loading rack
upgrades and other
e ciencies will help
shorten waiting times
at the CHS Pipeline
Terminal at Minot, N.D.
ENERGY
Growing your energy business
• Investing in dependable fuel distribution
• Building a strong Cenex® brand
• Positioning for renewable fuels success
Fiscal  unfolded with yet another round of energy
market challenges: di cult weather, supply concerns,
price and margin volatility, and domestic and global com-
petitive pressures. Through it all, CHS focused on making
daily and long-term decisions and o ering innovative
strategies to help our customers grow.
Topping the list were announced investments in refi ned
fuels distribution infrastructure at terminals along the
northern tier region served by the CHS Laurel, Mont.,
refi nery, including improved and expanded truck loading