The IPO Board

[badknees29]

EnergySolutions IPO prices above range; a provider of nuclear services, including waste removal (23.00 ) EnergySolutions (ES) prices its IPO at $23, above its expected range of $19-21. The co is a provider of nuclear services to govt and commercial customers. Services includes engineering, operation of nuclear reactors, in-plant support services, spent nuclear fuel management, decontamination and decommissioning, logistics, processing and disposal. The co also owns strategic facilities that complement its services. Virtually every company that holds a nuclear license uses ES' services or facilities. Its govt customers include the Depts of Energy and Defense. Commercial customers include many of the largest operators of nuclear power plants in the US, such as Constellation Energy, Duke Energy, Entergy, Exelon and Florida Power & Light. The co has entered into long-term arrangements, called "life-of-plant" contracts, with 82 of the 104 operating nuclear reactors in the US. ES has agreed to process and dispose of substantially all low-level radioactive waste, or LLRW, and mixed low-level waste, or MLLW, and ultimately the waste materials from the decontamination and decommissioning, or D&D, of those plants. The co also manages 10 sites in the UK with 22 reactors for the UK Nuclear Decommissioning Authority... The co is profitable and pro forma revenue for the 9 mos ended Sep 30 were $1.38 bln... Briefing Note: Clearly there is a lot of interest here with crude prices so high and politicians talking about the need for more nuclear reactors. Also, there are few pure-play nuclear stocks. Most are on the uranium mining side, but that can be confusing and it's difficult to forecast results of mining operations. However, ES is a direct play on the operation of nuclear facilities. This is a 30 mln share deal led by Credit Suisse, JP Morgan, Morgan Stanley