•No auxiliary charges
•No hidden demand charges or additional fuel costs
•No exposure to peak prices or additional distribution charges for supporting utilities off-lease growth
•Field gas tolled through the generation plant is treated as a lease operating expense, much like field gas used for compression
•Producer’s power price will not fluctuate based on changing commodity environments
•The power price is stabilized for the length of the producers application
•The distribution system is financed, designed, built and maintained by Kojote, but owned by the producer
•The distribution system becomes an asset that can be sold along with the field,
•The electricity supply agreement can be transferred to new owner of the field using the same pricing structure
Kojote Power – Privately Held Limited Liability Corporation
Kojote partners have over 75 years experience in either O&G , power generation, or both
Project – Each project is developed as a stand alone entity with ownership rights belonging Kojote, but with the distribution system owned by the Client . This allows Kojote to be an inside the fence independent power producer. Kojote will work with the client on the power solution that bests fits the Clients needs. The solution may be a single type of generation or a mixture of various types of generation. The goal is to keep the lowest fixed price of power while satisfying our clients needs.
•In West Texas the cost of power varies based on local utility supplier (co-op or investor owned utility) and time of year
•A typical well pad served by a co-op is currently being billed at 7.8Cents per kW-hr energy for required electric generation
•All in costs range from 9 -12 cents when adding zonal charges and T&D tariffs
•Summer peak pricing can add a further 3-5 cents to all in price, especially during the summer months.
•Kojote Power has used $0.070 per kW-hr for the basis of its’ economic model
•Assumes the cost of generation using field fuel gas and offering a tolling agreement to the producer.
•Kojote protects the clients from escalating power costs by providing a fixed cost , no peak,
no distribution, no demand charges, no escalating fuel charge.
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