This is Why Evolve Transition Infrastructure Is Climbing


Evolve Transition Infrastructure LP (NYSEAMERICAN: SNMP) hits the market this morning, but if you search for SEC filings or press releases, you won’t find any.

Still, there is a good reason for the profits.

According to a press release from Northwest Advanced Bio-Fuels, there is a great chance the company will see increased demand, which will lead to increased sales. Here is what is going on:

A new deal could boost sales for Evolve Transition Infrastructure LP

As mentioned above, Evolve Transition Infrastructure LP is climbing for no reason. However, there is a good reason for moving.

In a press release, Northwest Advanced Bio-Fuels, a developer of bio-jet renewable fuel refineries, has signed a letter of intent for a strategic long-term investment in sustainable jet fuels.

The investment is valued at $ 600 million and will flow into the company from Stonepeak.

What does this have to do with Evolve Transition Infrastructure LP?

According to the MoU, SP Holdings will be involved in the fundraising. This is important as SP {Holdings is the only general partner of Evolve Transition Infrastructure.

Given the large investment, SP Holdings is likely to push Northwest Advanced Bio-Fuels to use the company’s services. Note that Evolve is a limited partnership focused on acquiring, developing, and owning infrastructure that is critical to transitioning energy supplies to low-carbon sources.

Given that Northwest Advanced Bio-Fuels is focused on sustainable aviation fuel (SAF), what is needed is the services Evolve provides, and with SP Holdings involved in the deal, the company is likely to receive the first right of refusal, setting the stage for sales growth.

A quick press in the making

While this may set the stage for significant long-term gains, the short-term here is also impressive as we may see the start of a brief press.

Not only is share trading associated with relatively high short interest rates, there are also fewer than 9 million SNMP shares in the public float. This means that the stock supply is mostly low.

As a result, demand will rise as short sellers begin to cover their positions, and with stock supply this tight, rising demand could make the stock scream well beyond what we’ve seen in the pre-market this morning.

Final thoughts

The bottom line here is simple. With the funding and those involved in making it available to Northwest Advanced Bio-Fuels, we can expect Evolve Transition Infrastructure to have a new, loyal customer to look forward to.

This, combined with strong short interest and a low float, leads to dramatic increases in the value of the stock, making SNMP a closely watchable company.