GREY:XEBEQ - Post by User
Post by
savyinvestor333on Oct 06, 2021 10:16am
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Post# 33973165
Well here it is. TD Flash Note
Well here it is. TD Flash NoteXebec Adsorption Inc. (XBC-T) C$2.63 RNG Order Update Aaron MacNeil, CA Aly Hemraj, CPA, CA (Associate) Event Xebec provided an update on a large RNG order.
Impact: NEUTRAL
Details: Xebec announced that it has signed 'task orders' for an 18-unit BGX Biostream order that was announced on July 6, 2021 (full report), ultimately firming up contractual obligations to an existing order. The press release discloses that the order is for Brightmark RNG Holdings LLC, which is a joint venture between Brightmark and Chevron. The 18 units will be spread across 10 dairy RNG projects in Iowa, Wisconsin, Michigan and South Dakota.
TD View: The key disclosure from this press release is the counterparty, in our view, with Chevron highlighting in a September 2021 investor event that it intends to increase its RNG production by 10x between now and 2025. To the extent that Xebec is successful with this initial order, it could represent a larger, longer-term opportunity that includes both equipment sales and aftermarket support. As the project was previously disclosed, it is already factored into our forecast. As a result, we are not making any changes to our estimates at this time.