Z Energy
| Company type | Subsidiary |
|---|---|
| Industry | Fuel distribution |
| Predecessor | Shell New Zealand, Chevron New Zealand (Caltex NZ) |
| Founded | 2011 |
| Headquarters | Auckland , New Zealand |
Area served | New Zealand |
Key people | Mike Bennetts (CEO) |
| Products | Fuel, lubricants, chemicals, mobile refuelling services |
| Owner | Ampol |
| Parent | Ampol |
Z Energy is a fuel distributor based in New Zealand, managing branded service stations and holding former assets previously owned by Shell New Zealand and Chevron New Zealand. Since May 2022, it has operated as a subsidiary of the Australian oil company Ampol.
In April 2010, Shell withdrew from the New Zealand fuel sector, transferring its operations to Infratil and the New Zealand Superannuation Fund. These assets were rebranded as Z Energy in 2011. Later, in June 2016, Z Energy expanded by acquiring Caltex, the New Zealand branch of Chevron.
The company operates service stations under both Z Energy and Caltex New Zealand brands. As of April 2023, Z Energy manages 289 sites across the country, including 60 within Auckland, while Caltex operates 203 locations nationwide, with 39 situated in Auckland.
Background
In 2010, Shell exited the fuel distribution market in New Zealand by selling its assets—including a 17.1% shareholding in Refining NZ—to Infratil and the New Zealand Superannuation Fund for $891 million. The exploration and production division based in Taranaki was not part of this transaction. Z Energy’s main competitors include BP, Mobil NZ (a subsidiary of ExxonMobil), and independent operators such as Gull New Zealand. The company grew its footprint by acquiring Chevron’s New Zealand subsidiary, Caltex, in June 2016.
Founding
Following Shell NZ’s exit in 2010, its holding company was renamed Greenstone Energy while retaining the Shell brand at retail locations. After conducting a survey involving 17,000 customers, the company adopted the name Z Energy Limited in 2011 and launched the Z brand across its service stations. This rebranding effort involved an investment of about NZ$60 million, significantly higher than the previous annual licensing cost of NZ$10 million paid for the Shell brand. The company focused on enhancing customer experience through improved forecourt services and food options.
Although five additional stations were added after rebranding, Z Energy’s petrol market share dropped from 31.6% in 2011 to 29.0% by 2013. Following changes in ownership structure, Z Energy boosted domestic employment by relocating IT, finance, and call center functions back to New Zealand from overseas outsourcing arrangements.
Acquisition
In 2010, Infratil and the New Zealand Superannuation Fund jointly invested $420 million in equity to purchase Shell’s 17.1% stake in NZ Refining along with control over Z Energy. The balance of the acquisition price was funded through borrowing, resulting in an ungeared balance sheet for Z Energy at that time.
Subsequent to its initial public offering (IPO), Z Energy acquired the NZ Refining stake for $100 million, effectively lowering Infratil and the Superannuation Fund’s net investment for full ownership of Z Energy to $320 million.
In 2011, Z Energy rebranded a total of 226 former Shell service stations under its own identity. That same year, a controversial advertising campaign triggered public criticism, leading CEO Mike Bennetts to issue an apology and replace it with a new campaign featuring diverse actors.
By March 2013, Z Energy had raised $430 million through retail bond issuances, marking an increase from zero debt at the time of acquisition.
Prior to the IPO
The majority of Z Energy’s service stations are managed off the company’s balance sheet: 152 locations are leased from external parties, five are independently owned, and the firm retains freehold ownership of 56 sites. During the 2012–13 period, Z Energy executed a sale and leaseback arrangement involving 47 stations, which generated $87 million in cash inflows.
In April 2013, the company conducted a revaluation of its remaining property, plant, and equipment, resulting in a 54% increase ($170 million) that raised the total asset value to $481 million.
Between the acquisition phase and the initial public offering, Z Energy disbursed $224 million in dividends to Infratil and the New Zealand Super Fund, including a $70 million dividend distributed immediately prior to the IPO.
Initial Public Offering
Z Energy initiated its IPO in July 2013 with shares priced at $3.50 each, establishing a market valuation of $1.4 billion—approximately 4.5 times higher than the original investment made by Infratil and NZ Super Fund three years earlier.
The prospectus forecasted total dividends amounting to 6 cents per litre of fuel sold during 2013–14, combining both pre-IPO dividend payments and those expected after listing.
The offering raised $840 million through a combination of newly issued shares and sales from existing shareholders; all proceeds were allocated to Infratil and NZ Super Fund. After the IPO, Z Energy acquired a 17.1% interest in NZ Refining for $100 million from these shareholders.
Post-IPO, Z Energy had 400 million shares outstanding with a market capitalization of $1.4 billion. Infratil and NZ Super Fund collectively maintained a 40% ownership stake.
Fuel sales were projected at 2,476 million litres for the 2013–14 fiscal year—a 7% reduction compared to volumes recorded in 2010–11 despite the addition of five new service stations.
Profit margins were anticipated to rise by 1.2 cents per litre during 2013–14. The company expected dividends totaling $88 million for that year (equivalent to 3.5 cents per litre), combined with the earlier $70 million dividend payment—amounting to approximately 6 cents per litre returned to shareholders.
Acquisition of Chevron New Zealand
In April 2015, Z Energy declared its intention to acquire Chevron’s New Zealand subsidiary. The transaction, valued at NZ$785 million and finalized on 2 June 2015, included Caltex lubricants and engine oils. The deal required regulatory approval from both the Overseas Investments Office (OIO) and the Commerce Commission. CEO Mike Bennetts confirmed that the Caltex and Challenge! brands would continue operating under their existing names to capitalize on their strong brand equity. This acquisition expanded Z Energy’s market share in New Zealand to 49%. The Commerce Commission granted approval in April 2016, with the transaction completing on 1 June 2016.
On 30 September 2015, founding investors Infratil and the New Zealand Superannuation Fund (NZSF) announced plans to reduce their holdings in Z Energy. Infratil intended to divest its entire position, while NZSF planned to decrease its ownership from 20% down to 10.75%. The public offering commenced on 2 October 2015 with share prices ranging between NZ$6.00 and $6.20, collectively raising approximately NZ$840 million for both investors. Infratil achieved a fourfold return on its original investment.
Additional sell-downs took place in 2016: Infratil disposed of its remaining shares for NZ$479.2 million, while NZSF sold roughly 8.5% of its residual stake at NZ$8.01 per share. This resulted in NZSF realizing total profits of NZ$1.09 billion on an initial investment of NZ$209.8 million.
Ampol acquisition
In August 2021, the Australian fuel corporation Ampol initiated a takeover offer valued at NZ$2 billion for Z Energy, which was finalized by May 2022.
Starting in April 2025, U-Go commenced the purchase of former Z Energy and Caltex locations across New Zealand, following a pilot program conducted two years earlier in Australia, with sites in Auckland and Manly.
Holdings
Z Energy controls three subsidiaries: Harbour City Properties Investments Limited (focused on property investment), along with Z Energy ESPP Trustee Limited and Z Energy LTI Trustee Limited (both serving trustee roles).
The company operates 210 branded fuel stations and caters to sectors including commercial, aviation, marine, chemical, and bitumen clients. Additionally, it produces surfactant chemicals and manages coastal oil tankers, storage terminals, and mobile refueling services.
New Zealand Oil Services Limited
Z Energy owns half of this partnership with BP, created in 1999 by Mobil, BP Oil, and Shell NZ; Mobil withdrew from the venture in 2000.
The New Zealand Refining Company
Holding a 15% stake in The New Zealand Refining Company, Z Energy has board seats that provide considerable influence. With shares priced at $2.60, the fair value of this investment was $125 million (compared to $84 million at $1.75 per share in 2014).
Loyalty New Zealand Limited
Established in 1996, Loyalty New Zealand runs Flybuys, distributing 2.4 million cards that reach 74% of households nationwide. This joint venture, comprising 25% ownership by Z Energy alongside New World, State, and Bank of New Zealand, manages the program.
Caltex brand presence in New Zealand
Z Energy operates the Caltex brand under a licensing agreement with Chevron International, inherited from Chevron New Zealand’s acquisition in June 2016. This licensing contract was extended in March 2022 to maintain Caltex branding for an additional five years.