This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Syntroleum to Explore Possible Sale

NEW YORK ( The Deal) -- With its overall financial results bogged down by an unprofitable joint venture, alternative fuel and renewable energy company Syntroleum Corp. (SYNM) has enlisted Piper Jaffray & Co. (PJC - Get Report) to explore its options, including a sale.

While both the company and its adviser at Piper Jaffray, J. Thomas Halverson Jr., declined comment, Tulsa, Okla.-based Syntroleum said in a statement Wednesday that the Minneapolis investment bank would assist in reviewing options for its assets related to renewable energy and its natural gas-to-liquid refining businesses.

The review comes amid some troubling times for Syntroleum, which focuses on the production of synthetic fossil fuels as well as traditional crude oil refining. The company has posted a net loss in three of the last four years, including a $1.1 million loss in 2012.

Syntroleum, which trades on the Nasdaq as SYNM, struggled last year to stay above the minimum bid requirement of $1 per share. After Nasdaq threatened to delist the company several times, Syntroleum in April enacted a 1-for-10 reverse stock split to raise the price above $1 and avoid that fate.

Since the reverse stock split became effective on April 15, Syntroleum's share price has actually rebounded to more than $7 from $3.52 per share on April 15, the day the reverse stock split went into effect.

Despite the uptick in stock price, Syntroleum's 50-50 joint venture with Tyson Foods Inc., called Dynamic Fuels LLC, has hurt the former's profits, or lack thereof.

The joint venture, which runs a Geismar, La., biofuel plant, specializes in turning food and animal waste and other byproducts of the food production process into biodiesel fuel.

The enterprise, however, hasn't turned a profit in more than a year.

In fact, for the quarter ended March 31, the JV posted revenue of $6.7 million, or more than half of Syntroleum's $11.6 million in total revenue for the quarter. But the JV had a net loss of $830,000 for the period on top of the $11.8 million loss it sustained last year.

Both Tyson and Syntroleum each invested $5.7 million in cash and working capital loans into Dynamic Fuels in the first three months of this year to fund operations at the Geismar plant.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PJC $37.67 -2.66%
SYNM $3.35 -1.18%
AAPL $109.27 -1.00%
FB $88.26 0.12%
GOOG $600.70 -0.92%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs