Syntroleum will look to explore its options for its gas-to-liquids business, which turns natural gas into either conventional oil or diesel fuel, as well as its renewable energy business, which produces various technologies for recycling fuel and refining byproducts.
Syntroleum joins Denver-based BioFuel Energy Corp. as another alternative fuel producer to hand an investment banking mandate to Piper Jaffray this year in hopes of a sale. On March 27, Denver-based BioFuel Energy, which transforms corn into biodeisel fuel at its two plants in Fairmont,
Minn., and Wood River, Neb., retained Piper Jaffray's Halverson to lead an auction process for the company's assets. The decision came just after BioFuel said it had defaulted on about $8.2 million in debt.
But unlike BioFuel, which had about $188 million in total debt and just $9 million in cash on hand when it hired Piper, Syntroleum appears healthy. The company had just $1.1 million in liabilities as of Dec. 31, and almost $16 million in cash and cash equivalents. It has no near-term debt payments.Investors were initially encouraged by the announcement, sending Syntroleum's shares up 2.3% Wednesday to a close of $7.55 per share. Shares, however, have come down since and closed at $7.29 per share Thursday. Syntroleum has a market capitalization of about $73 million. Written by Michael D. Brown
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV