FormerXBC Inc XEBEQ

RE:Meanwhile

[jakethesnake2]

Flash Note from Aaron MacNeil
Flash Note
Equity Research April 13, 2022
Please see the final pages of this document for important disclosure information.
Clean Technology
Xebec Adsorption Inc.
(XBC-T) C$2.19
Xebec Receives Formal Award for Large Compression Order
Aaron MacNeil, CA
Aly Hemraj, CPA, CA (Associate)
Event
Xebec announced the formal contract award of a large compression order for a
carbon capture project.
Impact: NEUTRAL
Details: Xebec announced a contract that follows a previously announced
memorandum of understanding (MOU) from its Investor Day (full report), valued at
$143.2 million (US$113.5 million) for 51 carbon dioxide reciprocating compression
packages for Summit Carbon Solutions' proposed carbon capture and sequestration
project.
TD View: In our Xebec Investor Day note (full report), we incorporated this large
compression order into our 2022 and 2023 EBITDA estimates of $1.7 million and
$9.9 million, respectively, as we believed that with high conviction, this MOU would be
converted into an order and, therefore, we view this announcement as a confirmation
of our view. As a result, we are not making any changes to our estimates at this time.
Recommendation: HOLD
Risk: SPECULATIVE
12-Month Target Price: C$2.75
12-Month Dividend (Est.): C$0.00
12-Month Total Return: 25.6%
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XBC-T: Price
Company Profile
Xebec is a global provider of Pressure Swing Adsorption
technology, equipment that facilitates the separation and
purification of mixed gasses, including renewable natural
gas and hydrogen.
All figures in C$, unless otherwise