When it comes to work, Ergon (named after the Greek word for work) has it covered. Ergo, Ergon operates in six major business segments: asphalt and emulsions; information technology (embedded computing); oil and gas (exploration and production, retail and wholesale sales); real estate; refining and marketing; and transportation and terminaling. In addition to providing a range of petroleum products and services, the company manufactures and markets computer technology services and sells road maintenance systems, including emulsions and special coatings. Ergon also provides truck, rail, and marine transport services and sells residential and commercial real estate properties.
Ergon's oil and gas units includes subsidiaries Ergon Exploration, which operates primarily in Louisiana and Texas, and Lampton-Love, which supplies liquefied petroleum gas (LPG) to more than 80,000 customers in the South.
The company relies on its diverse operations to give it the ability to ride out downturns in a particular segment while using economies of scale and its complementary activities (exploration and production, refining, storage, marketing, transportation, etc.) to give it greater operating efficiencies.
Responding to the growth in output of natural gas liquids in the Appalachian Basin (Marcellus and Utica Shale plays), in 2012 the company announced plans to expand capacity at its refinery in Newell, West Virginia, and at terminals in Magnolia and Marietta, Ohio. Ergon's midstream operations (Magnolia Marine Transport, Ergon Trucking, Ergon - West Virginia, and Ergon Oil Purchasing) also plan to expand their logistical capabilities to increase their ability to gather and ship liquids throughout the eastern US.
Ergon Asphalt and Emulsions, a growth segment for the company, is a leading innovator in the asphalt industry. It delivers high-performance, polymer-modified binders to asphalt suppliers throughout the inland waterways system via Ergon unit Magnolia Marine Transport. The segment's Crafco unit opened a new plant in Wuxi, China in 2012. It expanded in 2011 by acquiring the Pennsylvania-based Corrosion Engineering division of Henkel. The acquisition adds Henkel's diverse lineup of chemical-resistant products (including linings, coatings, mortars, and polymer concretes) that are used in applications such as chemicals processing, power generation, metals processing, and pulp and paper manufacturing.
Ergon's crude oil refineries produce gasoline and distillates, naphthenic, and paraffinic oils. Ergon is a world leader in the production of naphthenic oils, an essential ingredient in coolants and greases. To raise cash, in 2011 Eron sold its 54% stake in Lion Oil (owners of the 80,000 barrels per day refinery in El Dorado, Arkansas) to Delek US Holdings for an undisclosed price.
It expanded its oil operations in Europe in 2010, signing a distribution deal with a German company. The company's refining and marketing segment is also engaged in oil purchasing and ethanol production.
Ergon was founded in 1954 by its current chairman, Leslie Lampton. – less