DURASEAL Double Block & Bleed Plug Valve 2003 - Franklin Valve & Supply •Company founded by •Repair Walter Randy Ray and his son Justin. center for DBB plug valves (General TwinSeal). 2005 - Franklin’s DuraSeal DBB Due to demand, the decision was made to design and cast a “Franklin” DBB plug valve. • Design & Patterned after GTS Series 800. •Interchangeability with the GTS Series 800. •DuraSeal initial offering: 2”-16” ANSI Class 150#. •Valve Systems & Controls signed on as the exclusive FV distributor. • 2006- Franklin Acquisition •Franklin Valve & Supply acquired by Valve Systems & Controls (Owned by John Brennan). •Company renamed Franklin Valve, LP. •VSC expands customer base throughout the United States, Indonesia, South America and Israel. •Chevron HI, BP, Ecopetrol, Magellan, Kinder Morgan, Pertomina, CITGO, Transmontaigne, Plaines among others. 2007 – VSC Acquisition • Curtis Wright purchases VSC. FV not part of the acquisition. 2009 – New Company Direction/Brand Re-launch •John Brennan hires Lenny Pereira as the new GM of Franklin Valve. product offering through 24”. •Launches 2”-12” Class 300# and 600# . •Established business model (stocking model), implements supplier quality metrics and upgrades drawings to AutoCAD. •Expands 150# 2010 – New Sales and Market Approach •Company founders resign •New facility at 7720 Bluff Point Rd (25,000 SF facility). •VP Sales hired, Todd Howard, to formulate and implemented sales and marketing strategy. •Establish price list and tiered discount schedule (multiplier), revamped web site and literature (another revamping underway). •Phased out representative network towards a limited stocking distribution & OEM network. •Company’s experienced 900%+ growth from ‘09-’12 •In the testing stages of adding the Franklin - 4 WAY Diverter valve – a complementing product line that is grossly underserviced in the measurement (prover) market globally. Q413/Q114 product launch. John Brennan CEO / Owner Since June 2006 Kelly Steranko Financial Controller October 2008 Lenny Pereira President August 2009 Greg Steranko Operations Manager 09/2012 Andre Solomon QA Manager 11/2005 Volley Seymore Shop Foreman 07/2005 Al Lira QC Inspector 01/2012 Valve Technician Todd Howard Vice President-Sales June 2010 Lisa Van Hoff Account Manager 11/2009 Matt Morgan William Simpson 06/2011 09/2011 Sedric Sanders Valve Technician 01/2007 Material Handler Jason Prince Material Handler 02/2012 Arthur Coyer Valve Technician 01/2012 Carlos Fuentes Valve Technician 02/2012 Casey Carter Valve Technician 02/2012 Marcus Carouthers Valve Technician 02/2012 Lemonte Eaton Valve Technician 03/2012 Ramone Keyes Valve Technician 08/2012 Brittani Collins Account Manager 09/2012 Leslie Manjack Accounting Clerk 01/2011 Christy Cantu Administrative Assistant 08/2012 DBB Consists of 5 Major Component Parts DESIGN & MATERIALS OF CONSTRUCTION •ASTM A216 Grade WCB Cast Carbon Steel Body, Bonnet, Lower Plate & Plug WCC & LCC Available • • •Body & Plug chrome or electroless nickel plated (ENP) •Ductile Cast Slips with vulcanized seal. Wide range of elastomer materials •17-4SS Investment Cast Packing •Graph oil type packing Gland •Full Ball Bearing Gear Operator DBB Provides Lower Cost, Less Maintenance, In-Line Repair , lower torque requirements and Better Performance for Critical Applications Standard DTR (as shown). Alternative DTR configurations such as Safety Block, Welded & DTR with Gauge are available upon request Generally, Multi-Turn Electric Actuation. Rotork, Limitorque & EIM Typically Specified Pressure Class & Size Range Class 150 2”-24” Class 300 2”-12” Class 600 2”-12” Applications Product Isolation Pipeline Pumping Stations Bulk Loading Terminals in Refineries Aviation & Naval Fueling Stations (Jet Fuel ) Crude Oil & Refined Product Metering Stations Measurement API 6FA Firesafe RP 591-Destructive Certified via API 6D joint certification. PED/CE Certified in 9/07, recertified 10/10 Facility ISO 9001 October 2010 API 6D Monogram August 2010 API 622-Emissions Recertified October 2010 European Market CRN Ontario & Alberta Certificates Available on FV Web Site TESTING CERTIFICATES Franklin provides MTR’s and related documentation upon customer request INSPECTION REPORTS FROM VENDORS & INTERNAL REPORT EXAMPLES 100% Component Incoming Inspection to Print Franklin Privately held company Focused on 1 Brand: DuraSeal Designed & patterned-General Twin Seal C 800 Industry leader and proven design Full interchangeability with the General Twin Seal C800 All sizes and pressure classes: one design 70% Components LCC Sourced India Foundry Poured & Machined Full Traceability 30% Domestic Content All internal components of Gear Operator FV builds all gear operators Qualify under the “Buy American Act” 100% Incoming Inspection Assembly and hydrostatic testing conducted in Houston, TX. Body chroming, plug ENP & slip seal vulcanization performed in Texas Industry Leader in Serviceability Price, quality, lead time & responsiveness Size Range & Pressure Class 2”– 24” ANSI 150 2”– 12” ANSI 300 2”-12” ANSI 600 Owned by Cameron Quality valve 3 Different Designs. Zero Interchangeability. C 800 Series design limited Lighter weight and less robust in bonnet and gear housing than C 800 2”-6” Class 150 2”-4” Class 300 & 600 Performance Issues: 8”-24” Class 150 6” Class 300 “TruSeal” Series 200 design 28”-36” Class 150 8”-30” Class 300 6”-24” Class 600 After Cameron acquisition, C800 Series ‘value engineered’ to the 8800 series 1 of 54 Brands Market share leader General Twin Seal Non-existent serviceability Long lead times Continual strategy shifts on how to service the market (reps/distributors). Size Range & Pressure Class 2”- 36” ANSI 150 2”-30” ANSI 300 2”-24” ANSI 600 2” – 10” ANSI 900 Some sizes in ANSI 1500 OmniSeal Formally Array Turco Valve Supply DAN-EX Brand LCC import 100% LCC manufacturing, assembly and testing Zero domestic content Marketed as a cheap alternative to the Twin Seal, DuraSeal and Danex. Repeated quality issues Limited knowledge and service levels to support the product line Europe & Middle East focused Size and Pressure Class 2”–36” ANSI 150 2”-30 “ANSI 300 2”-24” ANSI 600 Quality product Target Market: 100% commodity valve Former sole Array distributor Obtained Array intellectual property and rebranded ‘OmniSeal’ Western Valve Strong Domestic content Manf. in California Good technical support Negatives Rocky Mtn. Region Western US Latin America High cost Long lead times Zero interchangeability with the GTS Focus on airport jet fuel terminals. Not looking to expand footprint Size and Pressure Class 2”-20” ANSI 150 2”-16” ANSI 300 2”-8” ANSI 600, ANSI 900 3Z (Korea), Control Seal (Netherlands) & Econ (Spain) other competitors European & ME market focused ITSI TEPPCO/ Enterprise FMC Systems Welker Flow Measurement Centurion Pipeline Oxy Kinder Morgan Shell Pipeline Plaines BP Valero Wood Group NuStar Angus Measurement ExxonMobil Intercontinental Petrobras Tesoro Buckeye MRC Energy Transfer Williams CITGO Noble FMC Measurement Oil Tanking U.S. Oil Semcrude Sunoco Husky Energy Deeprock Energy Murphy Oil PTpertomina PEMEX TransMontaigne Energy Services U.S. Department of Defense (DoD) Ecopetrol Vopak Lisa Van Hoff-Account Manger lvanhoff@franklinvalve.com Office: 281-453-7412 Cell: 713-289-4027 Brittani Collins-Account Manager bcollins@franklinvalve.com Office: 281-453-7409 Cell: 832-381-6729 Greg Steranko-Operations Manager gsteranko@franklinvalve.com Office: 281-453-7406 Cell: 713- 689- 9019 sales@franklinvalve.com Lenny, Todd, Greg, Brittani & Lisa all receive email message