The Navitas Companies, Navitas Utilities Corporation and Navitas Assets, LLC, have been formed to make strategic investments in energy assets. The primary focus of both companies has been in the development, acquisition and operation of downstream, pipeline distribution operations. The combined strategies of these entities are furthermore defined by a concentration on systems in rural areas or systems involving shorter runs of piping which connect to limited, local industrial or municipal customer bases. Examples of this strategy include local natural gas distribution companies, (LDC’s), and pipelines serving railroad fueling points, airports, or small local fuel markets.
The focus on small, out of the way operations is key to the combined company strategies. In many cases these operations lack the ability to form economies of scale. Many times they are undercapitalized. In some instances they are deemed as non-core to a larger entity. In almost every case, they are facing substantial compliance projects which threaten their viability. As a result of these issues, the acquisition process is less complex, and the potential for improvement is greater.
The Navitas Companies are structured to be flexible in approaching a potential investment. Investments in the actual assets are made by Navitas Assets, LLC, (NALLC). NALLC will consider owning all or part of an acquisition, and can act by itself or in concert with other asset-holding entities. NALLC operations are typically subject to regulation and is most often a rate holding entity.
Navitas Utilities Corporation, (NUC) was formed to develop energy projects and to physically operate energy assets. It operates as a non-regulated entity. NUC is a separate, core operations group with the capability to locate and acquire assets for NALLC. NUC also is able to design, construct, and maintain pipelines, and can conduct related commercial operations. Within NUC, the necessary economies of scale can be established for geographically widespread, small systems. NUC also actively seeks to function as a contract operator for third party owners of similar systems, and to facilitate this activity has obtained a minority owned business status in the State of California.
The Navitas Companies are privately held, and managed by individuals possessing extensive experience in all facets of the energy industry. In its short history, the company has been successful in locating and acquiring a number of LDC operations and at the current time operates in excess of 600 miles of natural gas distribution pipelines.