Anyone looking for bragging rights to IPO shares will have to look to the conventional energy market. Last week Valero Energy (VLO: NYSE) filed to raise as much as $300 million in a new master limited partnership it is forming called Valero Energy Partners, a logistics-based business. The partnership is to own oil and refined petroleum pipelines and terminals in the Midwest and the Gulf Coast. Valero has a handful of ethanol plants and a wind-farm as well as the Diamond Green Diesel joint venture with Darling International (DAR: NYSE).
A stake in any of these deals means predictable earnings and cash flows, something alternative energy companies have been slow to deliver. SolarCity is still operating in the red and Hannon Armstrong reported a whopping $5.7 million loss on $3.4 million in sales just in the June 2013 quarter alone. Perhaps a stake in one of these cash generating gas companies on the current IPO calendar can help investors wait out ramp to profitability in the alternative energy plays.