Halliburton (NYSE:HAL) announces it has been awarded the oilfield services component for the Saudi Aramco Khurais mega project.
Soleil initiated Pacific Ethanol (NASDAQ:PEIX) with a Buy and $34 target. They believe the company is still in the developmental stage of production and relies solely on its marketing division for revenues.
Soleil issues reports on two upcoming IPOs:
1) Aventine Renewable Energy (ticker will be AVR) is the third largest U.S. ethanol producer with 3.2% of the total production capacity and also acts as pooling agent for 10 companies with total capacity of 490mmgpy. Based on the mid-point of the $37-$41 filing range, they think the AVR transaction seems like a reasonable price with a long-term potential price of $50.
2) VeraSun Energy (ticker symbol will be VSE) is the second largest U.S. ethanol producer with 4.9% of the total nameplate volume. They note that the company currently operates 2 ethanol refineries with a total capacity of 230mmgpy and the proceeds of the offering will be used to fund expansion giving VSE a total nameplate capacity of 560mmgpy in '08. They are recommending participation in the IPO at the stated range of $18-$20 and would still consider the risk/reward attractive if pricing moved closer to $20-$21.