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Maverik –Adventure’s First Stop to Acquire Kum & Go and Solar Transport from Krause Group

Salt Lake City, UT and Des Moines, IA –

April 21, 2023 – Maverik – Adventure’s First Stop, together with its parent company, FJ Management, today announced the acquisition of Kum & Go, a family-owned convenience store chain with over 400 locations across 13 states, from Krause Group. As part of the transaction, Maverik will also acquire Solar Transport, a tank truck carrier and logistic provider owned by the Krause Group. Financial terms were not disclosed.

The combination of Maverik and Kum & Go creates a best-in-class convenience store operator across the Midwest and Rocky Mountain regions with a differentiated value proposition across fuel, foodservice and inside store offerings.

Chuck Maggelet, President and Chief Adventure Guide of Maverik, said, “We have long admired the Kum & Go brand. Kyle and Tanner, and the generations before them, have built an exceptional business that pairs quality with convenience and puts people first. We are honored to carry their legacy forward as we build on Kum & Go’s strong operating and innovation capabilities and expand our adventurous convenience experience. We look forward to welcoming Kum & Go and Solar Transport associates and stores to Maverik – Adventure’s First Stop.

Kyle Krause, Krause Group President and CEO, said, “Kum & Go has always been driven by a desire to innovate, grow and serve our customers, our communities and our people. Maverik has built its business in the same way and is ideally positioned to lead the next chapter of growth for Kum & Go. We have much in common and I look forward to welcoming Chuck’s leadership, his team and Maverik to Des Moines, which will always be the home of the Krause Group and important to our future.”

Tanner Krause, President and CEO of Kum & Go, said, “This is the most momentous day in the 63-year history of our family business. My family has worked for four generations to create and build Kum & Go into a business that has done an incredible amount of good for our people, for Iowa and beyond. Serving as President for the past five years has been the fulfillment of my lifelong dream. I’ve had the pleasure of knowing Chuck Maggelet for years and hold a lot of respect for him as a person and a business leader. I’m confident the Maggelets and Maverik will be good stewards of Kum & Go’s people and culture for generations to come.”

The transaction is expected to close in the coming months and is subject to customary closing provisions.

Advisors BofA Securities and BMO Capital Markets Corp. served as financial advisors to FJ Management. Kirkland & Ellis LLP served as FJ Management’s legal advisor. J.P. Morgan Securities LLC served as financial advisor to Krause Group. Vedder Price served as Krause Group’s legal advisor.

About Maverik — Adventure’s First Stop Maverik — Adventure’s First Stop fuels adventures in nearly 400 locations and growing across 12 western states, making it the largest independent fuel marketer in the Intermountain West. Locations include Arizona, California, Colorado, Idaho, New Mexico, Nebraska, Nevada, Oregon, South Dakota, Utah, Washington, and Wyoming. Maverik is known for its premium BonFireTM food, made fresh in every Maverik, every day, and awesome values on fuel, drinks, and snacks. Maverik sells exclusive products in its BonFireTM fresh- made food menu and “Bean to Cup” coffee blends. For more information, visit maverik. com, Facebook, Instagram, Twitter, or YouTube. For perks, prizes, freebies, and more, join the Adventure Club mobile app. For more information, visit maverik.com.

About FJ Management

FJ Management Inc is a Utahbased private holding company that manages a diverse portfolio of petroleum, healthcare, and hospitality related assets under our guiding principles of Integrity, Mutual Respect, and Excellence. Founded in 1968 by O. Jay Call, the company continues to grow and prosper under the leadership and support of many. Crystal Maggelet took over as CEO in 2009, and today FJ Management ranks among the largest privately held companies in the United States.

About Krause Group Krause Group is the parent company to a diverse set of businesses that include convenience retail, logistics, Italian wineries and hospitality, real estate, agriculture, and soccer clubs. No matter the industry, the organization’s purpose is to enhance the way people experience the world while nurturing a family of brands to create opportunities to do good in the world. For more information, visit krausegroup.com.

About Kum & Go

Established in Hampton, Iowa in 1959, Kum & Go is a fourth-generation, family-owned convenience store chain providing a fresh perspective by meeting customers where they are and offering them the choices they deserve. For over 60 years, the company has been dedicated to sharing 10% of all profits back to the communities it serves. For more information, visit kumandgo.com.

About Solar Transport

Solar Transport is among the nation’s best tank truck carriers and logistics providers. For 60 years, the company has set the standard in how refined petroleum products are managed, transported and delivered. Helping customers become more productive and profitable energizes Solar Transport to ensure safe, efficient delivery of products on time, every time. For more information, visit solartransport.com.

EPA Issues Emergency Fuel Waiver for E15 Sales

EPA takes action to provide consumers relief at the pump by helping ensure an adequate fuel supply

April 28, 2023

Contact Information

EPA Press Office (press@epa.gov)

WASHINGTON – The U.S. Environmental Protection Agency today is issuing an emergency fuel waiver to allow E15 gasoline — gasoline blended with 15% ethanol — to be sold during the summer driving season.

This action will provide Americans with relief at the pump from ongoing market supply issues created by Russia’s unprovoked war in Ukraine by increasing fuel supply and offering consumers more choices at the pump. The waiver will help protect Americans from fuel supply crises by reducing our reliance on imported fossil fuels, building U.S. energy independence, and supporting American agriculture and manufacturing. Current estimates indicate that on average, E15 is about 25 cents a gallon cheaper than E10.

“The Biden-Harris Administration is committed to protecting Americans from fuel supply challenges resulting from the ongoing war in Ukraine by ensuring consumers have more choices at the pump,” said Administrator Michael S. Regan. “Allowing E15 sales during the summer driving season will not only help increase fuel supply, but support American farmers, strengthen U.S. energy security, and provide relief to drivers across the country.”

The Clean Air Act allows the EPA Administrator, in consultation with DOE, to temporarily waive certain fuel requirements to address shortages. As a result of the ongoing war in Ukraine, Administrator Regan determined that extreme and unusual fuel supply circumstances exist and has granted a temporary waiver to help ensure that an adequate supply of gasoline is available. As required by law, EPA and DOE evaluated the situation and determined that granting the waiver was in the public interest.

Currently, in roughly two-thirds of the country, E15 cannot be sold from terminals starting on May 1 and at retail stations starting on June 1. EPA is providing relief by extending the 1-psi Reid Vapor Pressure (RVP) waiver that currently applies to E10 gasoline to E15, which will enable E15 sales throughout the summer driving season in these areas, if necessary. This action only extends the 1-psi waiver to E15 in parts of the country where it already exists for E10. E15 can already be sold year-round in parts of the country that have a Reformulated Gasoline (RFG) program.

Because the RVP of E10 and E15 gasoline used by consumers will be the same (both will be 1 psi higher than otherwise required by EPA or state regulations) EPA does not expect any impact on air quality from this limited action. EPA’s research has shown no significant impact on evaporative emissions when the 1-psi waiver is extended to E15. With no significant impacts on emissions from cars and trucks, we expect consumers can continue to use E15 without concern that its use in the summer will impact air quality.

EPA’s emergency fuel waiver will go into effect on May 1 when terminal operators would otherwise no longer be able to sell E15 in the affected regions of the country and will last through May 20 which is the statutory maximum of 20 days. EPA will continue to monitor the supply with industry and federal partners, and the Agency expects to issue new waivers effectively extending the emergency fuel waiver until such time as the extreme and unusual fuel supply circumstances due to the war in Ukraine are no longer present.

California to Ban New Diesel Truck Sales by 2036

All diesel trucks must be zero emissions by 2042. Source NACS May 01, 2023

ALEXANDRIA, Va.—California will ban the sales of new diesel commercial trucks by 2036, reports CNBC. The new regulations are part of the Advanced Clean Fleets rule, which was passed by the California Air Resources Board unanimously last Friday.

In addition, rules also would force companies that operate 50 or more trucks to gradually convert their fleets into electric or hydrogen models, reaching 100% zero-emissions by 2042, with these timelines also based on the type of truck.

“The earliest requirements would be for drayage trucks, which carry cargo to and from the ports of Los Angeles, Long Beach and Oakland. … All of them must be converted to electric models by 2035, and new sales beginning in 2024 must be zero emissions,” reports Bay City News.

California. New York, New Jersey, Washington, Oregon, Massachusetts, Vermont and Colorado have already adopted California’s Advanced Clean Trucks rule.

California also announced it aims to achieve 100% renewable energy by 2045. Last August, the California Air Resources Board passed a plan that requires all new passenger cars and light trucks sold in the state to be electric vehicles or plug-in electric hybrids by 2035. NACS, along with other stakeholders, filed a petition in a federal court in Washington, D.C., challenging the Environmental Protection Agency’s waiver that would allow California to implement the zeroemission vehicle mandate.

California independent gas station owners have told the Los Angeles Times that California’s zero-emission vehicle mandate will cause some of their businesses to close. According to NACS data, there are more than 5,000 single-store operators in the state of California.

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The board said that heavy-duty trucks represent nearly one-third of the state’s nitrogen oxide and more than onequarter of its fine-particle pollution from diesel fuel.

Supporters of the rule argue the regulations improve public health in marginalized communities, while opponents of the rule say that the requirements are expensive, as electric trucks are costlier than gas-powered big rigs. The trucking industry argues that 2042 deadline is not plausible due to lack of EV charging infrastructure and available space at ports.

California is allowed to have more stringent rules under the federal Clean Air Act, and the regulations could impact more states than

The state also approved a rule that would ban train engines that are more than 23 years old by 2030, which is a first-in-the-nation rule.

The Convenience Matters podcast episode “Where Do EVs Make the Most Sense?” examines the findings from a Fuels Institute study looking at life-cycle emissions for EVs and fuelpowered vehicles.