Energy

New Fortress Energy is a “mini-LNG” play.

The first IPO to brave the volatile 2019 market and the US government shutdown is New Fortress Energy (NASDAQ: NFE $17.00 – $19.00). New Fortress is another energy company focused on liquified natural gas (LNG) like market leader Cheniere Energy (NYSE: LNG $63.33). Natural gas has been growing rapidly as a fuel of choice for…

Keep Reading

IPO Market Update

If you are an active investor you have experienced the volatility in the markets over the past few months. In general, market effects are magnified in the IPO market for a number of reasons including smaller market capitalizations and less investor awareness of newly public companies. Our service is not aimed at “macro” elements and…

Keep Reading

Can Bloom Energy Fix the Grid?

Back in 2006 Bloom Energy (NYSE: BE $14-16) made waves after Kleiner Perkins led a $104M Series D VC round in the company. (Bloom has raised over $825M in capital). Bloom was heavily criticised and discounted as some kind of perpetual motion machine. Fifteen years ago fuel cells seemed inefficient and too small scale to be thought…

Keep Reading
Whirly lollipop on orange background.

SolarEdge IPO Scores a solid B

Summary: The SolarEdge IPO gets good marks for the banking team, company positioning and business strength but their market opportunity and technology advantages are less compelling given the proposed valuation of 2x the current revenue run rate. For example primary competitor Enphase Energy (ENPH) is trading at 1.4x. Finally we see more opportunity in some…

Keep Reading
Whirly lollipop on orange background.

North Atlantic Drilling a high yield play on Arctic Energy

This ~$125M deal is expected to price as soon as tonight, January 28th. North Atlantic Drilling (NADL) is one of the top names in offshore drilling rigs, especially in climates that are especially harsh. The company is well positioned and there is a long-term growth story based on expanding opportunities in Russia and the Arctic.…

Keep Reading
Whirly lollipop on orange background.

Helicopters Back on the Launch Pad With CHC (HELI)

We’ve got another helicopter serving deal on the table to consider. CHC Group (HELI) is a large global operator looking to get public again after a private equity buyout in 2008. The proposed deal value is $530M with JPM, Barclays and UBS leading the charge. In this case timing is everything – The two most…

Keep Reading
Whirly lollipop on orange background.

Play Expanding US Energy Activity – EP Energy, Cypress Energy and RSP Permian

There are three energy deals in marketing now that are solid but not interesting enough to warrant individual analysis. Of the three we prefer Cypress (CELP) even though it’s a small ($90M) deal being brought by a mid-market group of bankers. In a period of increased US energy activity we like the related service industry…

Keep Reading
Whirly lollipop on orange background.

Valero Energy Partners (VLP) Another Energy Distribution Yield Play

Valero (VLO) is on of the leading energy refiners in the world, has been around forever and is a stable, well run company. This deal is for an LP servicing arm, Valero Energy Partners (VLP). The highlight of the deal is a proposed yield of just over 4% at the $20 mid-point of the proposed…

Keep Reading
Whirly lollipop on orange background.

Dynagas LNG Partners LP DLNG

Dynagas LNG Partners LP (DLNG) is a Greek shipping company focused on LNG carriers. Company has three operating now with four additional planned for the next two years. Best way to think about the company is as an “expanding floating pipeline.” Some Key Points: Claims that current agreements are at slightly below market rates so…

Keep Reading
Whirly lollipop on orange background.

The Crafty Silver Spring IPO

TLDR – A reasonable value for Silver Spring (SSNI) is $21/share which compares well to the $17 mid-point of the filing range. It’s a high quality company with the deal being led by Goldman. SSNI has done a crafty job positioning their story to avoid having to show that their revenues were flat in 2012…

Keep Reading