Colonial Pipeline Update/Status (Pilot Fly J)

Overview

• Ransomware attack on Colonial Pipeline- all pump stations offline
• DarkSide – Ransomware for hire company believed to be responsible for attack
• FireEye – Cybersecurity company believed to be responding
• Manual override seems unlikely, heavily dependent on digitized systems
• If not back in 2-3 days, 1 week+ of downtime expected as backups would assumed to be compromised, as well

Supply

• Current Outages/Shutdowns reported
  • All Colonial Pipeline terminals are down
    • Chattanooga
    • Fredericksburg
    • Charlotte
  • Bainbridge MO – no products

DSL:

• Expect contracts to be cut, mostly relying on Pilot Company Inventory, our assets and own tanker fleet
• Daily allocation contracts prioritization, “use it or lose it”
• Charlotte and Nashville are focus markets
• Focus on ability to supply from port cities

Logistics/Transportation

• Inventories look good at this time with no outage concerns
• Focus Markets – Nashville and Charlotte are areas of concern after 2-3 days

• Added tanker fleet drivers this weekend in Nashville/Charlotte markets
• Adding tanker floaters in Nashville and Charlotte markets