ESG Express "A Memorial Week" Gershuni

Research evidence excerpt

ESG Express "A Memorial Week" Gershuni

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Middle East tensions and concerns around supply routes, was highlighted as a key driver

of oil price volatility, with crude moving from ~US$65/bbl to above US$100/bbl.

However, the transmission into Brazil is indirect. As emphasized in the discussion, Brazil’s

vulnerability does not stem from crude availability, but from its dependence on imported

diesel, with flows currently dominated by Russia and supplemented by the US. (Full

Report)

X-Energy Inc - Initiate Buy at $40 PT: Integrated 4G Nuclear

On Tuesday, our team initiated X-Energy (XE) with a Buy, viewing the stock as attractive

exposure to the emerging 4G nuclear reactor industry. XE has unique advantages

positioning it at the forefront of 4G nuclear commercialization, a market our team

expects to result in only 2-4 players taking most of the U.S. market. XE is a highly

differentiated 4G nuclear reactor technology provider compared to other publicly listed

4G nuclear reactor peers, in our team's view, driven by: (Full Report)

Razor / Razor Blade business model: XE provides an integrated solution to

customers providing the system design upfront and fuel fabrication and plant

operational services over the life of the plant (+60yrs).

The U.S. Advanced Reactor Demonstration Program (ARDP) winner: In

2021, XE was one of two primary awardees under the ARDP a program to

commercialize 4G reactors.

Speed to market advantage: XE’s Seadrift project in Texas is currently expected

to be the second commercial 4G reactor in the U.S. In Mar-2025, XE’s Seadrift

project with Dow in Texas applied for a construction permit with the NRC and our

team anticipates approval by Mar-2027.

Strong customer pipeline: In 2024, AMZN invested ~$500mn in XE and

currently owns 24% of the outstanding shares.