World Energy

Daily Update

2012-02-22T15:16:37Z

The price of gas fell significantly yesterday, but moved up near the end of the day to only close down 6 cents at $2.626/MMBtu. With the spring coming and milder temperatures expected, futures prices are expected to remain stagnant for the coming days and possibly drop further in the future. Currently gas is trading down 2.5 cents at $2.59/MMBtu.

Lawmakers in OH are considering a bill that would allow blast furnace generated power to count as renewable energy. This amendment would allow World Energy customer AK Steel to sell renewable energy credits to OH utilities when they build of a $310 million power plant fueled by use the gases from its blast furnace. On the question of whether blast furnace gases are renewable; according to Senator Coley, “Blast furnaces are as natural as wind and sun in Ohio.” We may need confirmation from the Dublin office on the truth to this statement.

Want to learn more? Review our Technical, Fundamental, and Regulatory Analysis here: http://www.worldenergy.com/tag/market-edge/

Is Profitable Growth the New Cleantech Bust?

2012-02-21T14:29:00Z

Glad to see some analysis from BostInno that refutes Wired’s sensational “cleantech bust” assertion.

To me, the problem with the cleantech sector is the name itself, and that people seem to think that since it says “tech,” the sector can have an adoption curve that resembles web-based contagion. It staggers me that Facebook has more than 1 of every 10 people in the world using it, and, against that phenomenon, the measured growth and progress in alternative energy or energy management can look disappointing. The thing that people miss about the “cleantech” space is that nearly everything that generates revenue in it is attached to a building or a grid or a pipeline, which makes implementation of our solutions constrained by physical forces.

As a publicly-traded company in the cleantech space, our company, World Energy Solutions (NASDAQ: XWES) has been growing at a 20% CAGR – profit even more rapidly. We’ve recently made 3 acquisitions and have emerged as a leader in our space. Wouldn’t call that a bust.

Fundamental Analysis

2012-02-16T17:06:09Z

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The EIA reported a 127 Bcf withdrawal in natural gas storage for the week ending 2/10/2012, below analysts’ predictions of a withdrawal in the 80 to 135 Bcf range. Working gas in storage was 2,761 Bcf as of Friday, 817 Bcf higher than last year’s 1,944 Bcf stock and 765 Bcf above the 5-year average of 1,996 Bcf.

The natural gas contract was last seen trading at $2.468/MMBtu, 4.3 cents above yesterday’s close.

Want to learn more? Review our Daily Pricing Updates as well as Technical and Regulatory Analysis here: http://www.worldenergy.com/tag/market-edge/

MEC Annual Ohio Energy Management Conference

2012-02-16T14:52:53Z

February 21-22 in Columbus, OH
Tony Barnhart speaking in the “Savvy Buyer … Electricity Procurement and Risk Management Best Practices” at 3:15pm on 2/21

World Energy Solutions to Present at Jefferies 2012 Global Clean Technology Conference

2012-02-22T07:18:49Z

Worcester, MA – February 16, 2012 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it will be presenting at the Jefferies 2012 Global Clean Technology Conference in New York City.

Jim Parslow, Chief Financial Officer of World Energy Solutions, will deliver the Company presentation to conference attendees on Wednesday, February 22 at 4:00 p.m. The presentation will also be webcast at www.wsw.com/webcast/jeff67/xwes/.

Mr. Parslow will be joined at the conference by the Company’s VP of Corporate Communications, Dan Mees.

“World Energy’s financial performance, highlighted by eight consecutive quarters of positive adjusted EBITDA, three recent acquisitions, and a stock that has outperformed many cleantech peers over the last year, has raised our profile considerably in the investment community,” said Jim Parslow, CFO, World Energy Solutions. “Presenting at the Jefferies Global Cleantech Conference builds on these achievements, providing us an exciting opportunity to highlight our growing investment potential and leadership in energy management.”

The Jefferies Global Clean Technology Conference will highlight keynote speakers, panel discussions and presentations from over 100 leading public and private companies across the clean technology spectrum. It brings together industry leaders to help investors identify near- and long-term investment opportunities and to discuss clean technology trends globally.

The conference is by invitation only. An agenda is available at:

www.jefferies.com/pdfs/confs/022212/2012_CleanTechConference_Agenda.pdf

For more information about World Energy Solutions, please visit the Company’s investor page: www.worldenergy.com/investors/.

About World Energy Solutions, Inc.
World Energy Solutions, Inc. (NASDAQ: XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $20 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $1 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the ground-breaking Regional Greenhouse Gas Initiative’s (RGGI) cap and trade program for CO₂ emissions. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to the following: our revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; and there are factors outside our control that affect transaction volume in the electricity market. Additional risk factors are identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.

Source: World Energy Solutions, Inc.

Jefferies 2012 Global Clean Technology Conference

2012-02-21T16:59:21Z

February 22-23 in New York City, NY
Jim Parslow, CFO, will deliver the Company presentation on Wednesday, February 22 at 11:30am. The presentation will also be webcast at www.wsw.com/webcast/jeff67/xwes/.

WSPP EC/OC

2012-02-15T20:23:37Z

February 26-28 in Carlsbad, CA

Q4 2011 & FY 2011 Earnings Conference Call

2012-02-21T17:05:11Z

March 8, 2012 @ 10am ET
Dial 1 (800) 774-6070 and enter passcode 7674892#

Technical Analysis

2012-02-15T19:40:16Z

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Natural Gas
Since our last report posted on January 24th, Natural Gas prices have at least momentarily stopped crashing, and begun to consolidate right around the level of the last long term low set back in August of 2009. While it is common for prices to pause at such an extremely oversold and tested bottom, in itself it does not provide any measure of confidence that the blood letting will not continue. In fact the technical indicators like the MACD, which still displays negative momentum, suggest more downside may be in the cards. Adding to this dreary prognosis are fundamentals that look to keep the NG market so awash in supply that records are and most likely will continue to be set for all-time highs in inventory. For example, the unusually warm winter temps have slowed inventory withdrawals to a level 33% below normal with the promise of more light withdrawals to come. In fact the projected level of inventories at winter’s end is certain to set an all time high at nearly 90% above average. And just to top this picture of an historic glut off, NG production from now till the fall will only add to the inventory problems such that prices are expected to have little room to move up in the traditional fall off-take for next winter.

If that isn’t enough to entice those looking to procure NG in long term contracts at these historically low prices perhaps NOAA’s weather prediction that warmer than normal temps will continue till at least early March! But there is one caveat that may shorten the window of opportunity to secure these historically low prices. Many of the companies in the NG producing and exploring businesses are reaching the point where prices are so low they simply cannot afford to keep operations going … so they are preparing to cut their operations which will give may give a bit of support to NG prices.

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Electricity
Since our last report of January 24th, the PJM Index tumbled down to the lowest level ever recorded for the Jan-Feb period in the eight years PJM data has been collected for charts. Not surprisingly the generators have seen their earnings reduced by the twin pincers of greatly lessened demand and higher prices for most generation fuels. Unfortunately the cause of their dilemma, the unusually warm winter temperatures, is expected to continue at least till the beginning of March. With spring only a few weeks away we can begin to close the books on an exceptionally warm & dry winter in almost the entirety of PJM regions. But unlike NG, demand can quickly turn around. Perhaps PJM can take some solace from NOAA’s three month prediction that calls for normal temps in the mid-Atlantic, Upper Mid-West and Northeast regions while temps are predicted to be warmer than normal for the southern half of the continental US.

Want to learn more? Review our Daily Pricing Updates as well as Fundamental and Regulatory Analysis here: http://www.worldenergy.com/tag/market-edge/

Energy Efficiency: Utility Programs Getting More “Boots on the Ground” for Business Customers

2012-02-14T20:30:22Z

Earlier today, we announced World Energy has been selected by NSTAR to provide efficiency services to businesses as part of its Direct Install program. This is an important development for NSTAR, small C&I customers in the NSTAR territory and, of course, World Energy.

NSTAR, and in fact all the utilities who offer these kinds of programs, face challenges in meeting their state-mandated efficiency goals and building program success. They are not equipped to do it on their own and need expert ESCOs with “boots on the ground” to help them get the job done. By adding World Energy to the ranks of their small business contractors, they are adding a public company that is well-financed, experienced in delivering energy efficiency projects to C&I customers and motivated to establish itself as a quality vendor.

For NSTAR’s C&I customers, they face a complicated energy environment, escalating energy costs and little ability to differentiate one “energy saving” sales pitch from another. They also may find deciphering the utility programs and paperwork a bit daunting. The addition of World Energy as a small business contractor gives them an energy efficiency resource that can help them navigate the complexities of the utility programs and execute efficiency projects that will save them time, disruption and money.

For World Energy, this is a great opportunity to spotlight our efficiency knowledge and program delivery skills. But it’s also greater than that – it’s an opportunity to showcase our core competencies to C&I customers as a comprehensive energy services company that is focused on helping small to mid-market companies reduce their total energy investment from both a cost and a consumption perspective.

We are excited to be part of the effort to make New England businesses more energy efficient and more competitive. Along the way, we’ll look to share with you our insights and learnings, as well as those of our customers.