Aspen Aerogels, Inc. (ASPN), Enbridge Inc. (ENB.TO), GasLog Ltd. (GLOG), Hi-Crush Partners, LP (HCLP),
TransGlobe Energy Corp. (TGL.TO)
Aspen Aerogels, Inc. (ASPN)
Lofty Ambitions for Innovative Energy Insulation Product
8 July 2014 ¦ 16 pages ir.citi.com
We are initiating coverage of Aspen Aerogels with a Neutral rating as the potential
upside in its market share gains is offset by risks in its single-product business
model and capital expansion plans. Aspen Aerogels is the niche manufacturer of
an innovative aerogel energy insulation material offering superior performance to
conventional applications. This single-product-line company has the high-quality
problem of being capacity constrained in a fragmented $2.8 billion market where it
has just 3% share today. Aspen is an early-stage company that just reached break-
even EBITDA profitability, but its products have experienced wide acceptance and
are used by 24 of the 25 largest refiners in the world.
Enbridge Inc. (ENB.TO)
REINSTATING coverage with a NEUTRAL rating; improved positioning and financial flexibility
A. M. Kuske 09 July 2014 sendspace.com
ENB, EEP, ENF and MEP announced several actions. We view the management changes, Line 3 Replacement cost update, EEP's drop to MEP and ENB's equity issuance as being largely inconsequential to our investment thesis. We believe the restructuring of EEP's incentive distribution rights is notable with ENB looking to re-establish "EEP as a strong sponsored vehicle and an effective source of funding for its own growth and for future drop downs".
GasLog Ltd. (GLOG)
The Pie is Big Enough for Everyone to Get a Piece
8 July 2014 ¦ 9 pages ir.citi.com
GasLog shares were under pressure Monday, likely due to concerns that a
transaction announced between Teekay LNG Partners and BG Group would impact
the growth potential of GasLog. We firmly believe this is not the case, as the growth
of LNG shipping is much larger than the four vessel deal announced Monday.
Importantly, the deal does not cover the four Tri-Fuel Diesel Electric (TFDE) carriers
currently in BG’s fleet, but rather focuses on newbuilds. These vessels remain a
sale/lease back opportunity for GasLog. In addition, while the deal shows that
GasLog does not have a monopoly on BG’s business, this was never our assumption
and diversification of risk is rational and expected (BG does business with Dynagas
too). Ultimately, the growth potential is big enough for several independents and we
see no impact to our long-run estimates, thus we reiterate our Buy.
Hi-Crush Partners, LP (HCLP)
The Logistical Choice
08 July 2014 sendspace.com
HCLP greater control over costs and with pricing growing faster than costs, our TP goes to $65.
TransGlobe Energy Corp. (TGL.TO)
Production Impacted; New Pumps in Sight
08 July 2014 sendspace.com
Recommendation: We maintain our Neutral rating and target price of C$9. |
