Four energy-related IPOs on deck this week include: China Sunergy (CSUN) a Chinese manufacturer of solar cell products; Continental Resources (CLR), a natural gas and oil exploration company with operations in the Rocky Mountain, Mid-Continent and Gulf Coast regions of the United States; EnerNOC (ENOC) is a provider of demand response solutions to manage energy consumption; and Pinnacle Gas Resources (PINN), an independent energy company engaged in the acquisition, exploration and development of domestic onshore natural gas reserves.
All quotations are from the companies' most recent S-1 filings with links provided.
We are a leading manufacturer of solar cell products in China as measured by production capacity. We manufacture our solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. We sell our solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble our solar cells into solar modules and solar power systems for use in various markets.
Offering: 8.5 million shares at $8.00 - $10.00 per shares. Net proceeds of approximately $66.6 million will be used to expand the company's solar cell manufacturing facilities and to purchase or prepay for raw materials.
Lead Underwriters: Merrill Lynch, Jefferies
Financial Highlights:
Our total net revenues increased by $135.8 million, from $13.7 million in 2005 to $149.5 million in 2006...Our cost of revenues increased by $111.1 million, from $11.8 million in 2005 to $122.9 million in 2006... our gross profit in 2006 increased by $24.6 million to $26.6 million, from $2.0 million in 2005. Our gross margin increased from 14.2% to 17.8% during the same periods...We turned a net loss of $0.3 million in 2005 into a net income $11.8 million in 2006. In 2006, our net margin was 7.9%.
We are an independent oil and natural gas exploration and production company with operations in the Rocky Mountain, Mid-Continent and Gulf Coast regions of the United States. We focus our exploration activities in large new or developing plays that provide us the opportunity to acquire undeveloped acreage positions for future drilling operations. We have been successful in targeting large repeatable resource plays where horizontal drilling, advanced fracture stimulation and enhanced recovery technologies provide the means to economically develop and produce oil and natural gas reserves from unconventional formations. As a result of these efforts, we have grown substantially through the drillbit, adding 96.2 MMBoe of proved oil and natural gas reserves through extensions and discoveries from January 1, 2001 through December 31, 2006 compared to 5.1 MMBoe added through proved reserve purchases during that same period.
Offering: 29.5 million shares at $16.00 - $18.00 per share. Net proceeds of approximately $139.6 million will be used to repay a portion of the company's outstanding debt.
Lead Underwriters: J.P. Morgan, Merrill Lynch
Financial Highlights:
Oil and natural gas sales for the year ended December 31, 2006 were $468.6 million, a 30% increase over sales of $361.8 million for the comparable period of 2005... Production expense increased $10.1 million or 19% during the year ended December 31, 2006 to $62.9 million from $52.8 million during the year ended December 31, 2005...Production taxes increased $6.3 million during the year ended December 31, 2006 to $22.3 million from $16.0 million during 2005...Exploration expenses increased $14.5 million in 2006 to $19.7 million due primarily to an increase in dry hole expense of $11.9 million and an increase in seismic expenses of $2.0 million.
EnerNOC is a leading developer and provider of clean and intelligent power solutions. We use our Network Operations Center, or NOC, to remotely manage and reduce electricity consumption across a network of commercial, institutional and industrial customer sites to enable a more information-based and responsive, or intelligent, electric power grid. Our customers are electric power grid operators and utilities, as well as commercial, institutional and industrial end-users of electricity. In order to avoid service disruptions, such as brownouts and blackouts, during periods of peak electricity demand, grid operators and utilities have traditionally increased supply-side capacity by building additional power plants and transmission lines.
As an alternative, we offer demand response solutions, whereby we monitor electricity consumption and alert our end-use customers to reduce their usage during these same peak periods. This helps optimize the balance of electric supply and demand and creates a significantly lower cost and more environmentally sound, or clean, alternative to building additional power plants and transmission lines. Grid operators and utilities pay us a stream of recurring revenues for managing this demand response capacity.
Offering: 3.8 million shares at $21.00 - $23.00 per share. Net proceeds of approximately $68.4 million will be used to fund business expansion to finance research and development, to fund cash consideration for future acquisitions and for other general corporate purposes.
Lead Underwriters:Credit Suisse, Morgan Stanley
Financial Highlights:
For the year ended December 31, 2006, we had revenues of $26.1 million compared to $9.8 million for the year ended December 31, 2005, an increase of $16.3 million, or 166%...Our gross profit was $9.3 million for the year ended December 31, 2006 compared to $5.6 million for the year ended December 31, 2005, an increase of $3.6 million, or 64%. Our gross margin for the year ended December 31, 2006 was 35% compared to 57% for the year ended December 31, 2005...Selling and marketing expenses were $5.9 million for the year ended December 31, 2006 compared to $2.2 million for the year ended December 31, 2005, an increase of $3.7 million, or 166%...Research and development expenses were $1.0 million for the year ended December 31, 2006 compared to $1.0 million for the year ended December 31, 2005.
We are an independent energy company engaged in the acquisition, exploration and development of domestic onshore natural gas reserves. We currently focus our efforts on the development of coalbed methane, or CBM, properties located in the Rocky Mountain region, and we are a substantial holder of CBM acreage in the Powder River Basin. We have assembled a large, predominantly undeveloped CBM leasehold position, which we believe positions us for significant long-term growth in production and proved reserves. In addition, we own over 94% of the rights to develop conventional and unconventional oil and gas in zones below our existing CBM reserves. Substantially all our undeveloped acreage as of December 31, 2006 was located on the northern end of the Powder River Basin in northeastern Wyoming and southern Montana.
Offering: 3.8 million shares at $10.00 - $12.00 per share. Net proceeds of approximately $37.7 million will be used to pay down debt, for capital expenditures and infrastructure development.
Lead Underwriters: Friedman Billings, A.G. Edwards
Financial Highlights:
Revenue from gas sales decreased $1.9 million in 2006 to $12.2 million, a 14% decrease compared to 2005... Lease operating expenses increased $1.2 million in 2006 to $3.0 million, a 68% increase compared to 2005...Net loss attributable to stockholders for the year ended December 31, 2006 was $17.2 million, or $0.87 per diluted share, on total revenue of $19.9 million.
