Stephen B.Traicoff

Structured Finance and Energy Industry Expert

Steve Traicoff has over 25 years of energy-related experience focusing primarily in the areas of energy trading, risk management, and structured finance.  Steve has traded several energy commodities including refined products, petrochemicals, residual fuel, and feedstocks. He has also originated, structured, and closed large, complex physical and financial transactions in the natural gas and power industry sectors. Steve’s background also includes project financing, investment banking, and structured finance in the energy sector as well as energy-intensive industries such as refining, petrochemicals, pulp and paper, steel and primary metals.

Relevant Experience
Steve’s selected accomplishments include:  

  • For a  $7 Billion per year in sales global residual fuel oil marketing and trading affiliate of a ‘super major’ oil company, he has participated as an SME with a team of 20 Bearing Point professionals to analyze, determine, and re-design Business Processes and Key Performance Indicators (KPI’s) with the goal of increasing the Return on Capital Employed (ROCE) to 15 percent.
  • For the 10th largest U.S refinery (over 260 M Bbls per day crude runs), he exercised all commercial responsibility for $2 Billion /year sales of gasoline, diesel, and jet fuel production as well as over 11 MM Bbl/year residual fuel oil sales and 1.2 MM tons/year sales of petroleum coke. Responsibilities included heavy emphasis on planning all critical aspects of risk management, including management of basis spreads and refinery cash margins. Steve also managed all product exchanges, directed all product scheduling and inventory management, and found alternative higher valued markets for refinery products.
  • Engaged as a Subject Matter Expert (SME) by the chemical division of the US affiliate of a $120 Billion/yr sales Asian raw material and commodity trading company to advise upon the pending $600 Million merger of two US-based petrochemical liquid terminal companies, having a total storage capacity over 23 Million Bbls. Worked with client’s investment banker to create and critique financial models of both merging companies. Performed and Summarized Due Diligence activities for both parties and made negotiation recommendations regarding valuation, control of business processes, and environmental concerns. Made recommendations regarding proposed merger integration approach.
  • For a $1 Billion per year sales integrated industrial waste management and recycling company, he was engaged as an SME and was solely responsible for performing Business Due Diligence regarding the contemplated acquisition of a 690 M Bbls oil storage facility having access to truck, rail, and deep-water facilities. Also located on-site was a 2.5 M Bbl per day waste lube oil processing facility. Steve evaluated the facility from both the client’s strategic perspective as well as determining the likely economics of competitors’ bids. Steve assisted the team in assessing their strategic position regarding the contemplated acquisition as well as help formulate the bid price for the asset.
  • Engaged as an SME to work on the business and operational assessment of receiving, marketing, and delivering Ultra-Low Sulfur Diesel (ULSD) in a new upcoming EPA-proscribed regulatory environment for the Commodity Trading Group of a $70 Billion market cap financial firm that reportedly moves over  $20 Billion/yr (200 Million Bbls/yr) of physical refined products in the US. Directed the effort of the Bearing Point team to develop Process Flow documents and Reports, as well as validate and refine current processes of client and outside third parties, vendors, and counterparties. Developed financial impact analyses and report regarding the advent of the new regulations as well as building the scenario assessments.
  • For a pre-eminent energy merchant, he originated, structured, negotiated, and closed multi-year financial derivative and commodity (natural gas, oil, and power) transactions totaling over $300 MM in revenue and resulting in over $15 MM in pre-tax income.

  • Steve has over 14 years of direct commercial and trading experience regarding refined products, natural gas, petrochemicals, feedstocks, and electric power.

  • For a $ 5 Billion petrochemical company he managed and optimized residual fuel requirements for industrial facility that consumed over 150,000 MM Btu/day. At the same company, he increased sales of refinery and petrochemical byproducts from $50 MM/year to $150 MM/year after analysis of market and manufacturing capabilities he was also promoted six times within nine years and received two President’s Club Awards for outstanding commercial performance.

  • For a varied selection of clients that includes major insurers, industrials, shipping companies, and trading companies, Steve has been engaged as litigation support consultant and expert witness regarding commodity trading, risk management, and structured finance for several cases of federal court litigation, with potential judgments totaling over $1 Billion.

  • For a pre-eminent energy company that had invested over $4 Billion of investment capital worldwide in a 4 year period, he originated, structured, negotiated, and/or closed over $125 MM of equity and debt financing in new and existing enterprises. He also sourced debt and equity funding totaling over $50 MM for energy-intensive (chemical, refining, pulp and paper, steel) or energy-related projects and businesses.  While there he led a cross-functional team that included credit, trading, legal, tax, accounting, and syndication functions, resulting in four deal closures. Structured innovative financial support and guarantees, including insurance products.

  • Engaged by several large Asian clients that include utilities and investment banks regarding hedging strategies for oil, refined products, natural gas, power, and weather by U. S. oil producers, refiners, investment banks, energy-intensive industrials, air carriers, IPPs, power and gas utilities, and retail energy marketers.

  • For a large Asian electric utility with 55,000 MWhr generating capacity, Steve trained managers and professionals with regard to de-regulation, risk management, and commercial trading. Training modules include topics of Gas Supply, Power Marketing, Mark-to-Market Accounting, Power Transmission, Risk Management, and Power Asset Valuation.

  • Steve has acquired a strong technical, engineering, and operations background from his work with several large chemical, refining, and petrochemical companies. His technical background has a special emphasis on process engineering, computer process automation and quality control, and research and development.

The industries in which Steve has specific experience include Energy Commodity Trading, Oil and Gas, Refining and Petrochemicals, and the Process Industries. Clients include:

Chevron Texaco
Safeguard Scientific Trans-Global Solutions
Nomura Securities Korean Electric Power   Tokyo Electric
Tokyo Gas Mitsui USA Morgan Stanley
Safety-Kleen

Certification: SEC/NASD Series 7 and Series 63 (1997-2001)

Professional Background

Prior to joining BBA, Steve was an Independent Consultant for five years serving clients as an advisor regarding Energy Trading, Risk Management, and Structured Finance. Before becoming an Independent Consultant, he was a Director in the Energy Finance /Industrial Services Group of Enron Capital and Trade Resources Corp. in Houston, Tx. between 1994 to 1999. Prior to joining Enron, he spent 14 years with two affiliates of Atlantic Richfield: ARCO Chemical Co. and Lyondell Petrochemical in a variety of positions that included commercial trading, process engineering, process automation and control, and R&D. He holds a Bachelors of Science in Chemical Engineering from The Ohio State University.     

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