Winnie Texas Solar Plant Project Renewable Energy Company seeks 420MM for solar project in Winnie Texas 15 interest for 6 years 25 of company and 1st Lien on Property 1694 acres until lo

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Winnie Texas Solar Plant Project Renewable Energy Company seeks 420MM for solar project in Winnie Texas 15 interest for 6 years 25 of company and 1st Lien on Property 1694 acres until lo Powered By Docstoc
					Winnie, Texas Solar Plant Project:

Renewable Energy Company seeks 420MM for solar project in Winnie, Texas. 15%
interest for 6 years, 25% of company and 1st Lien on Property (1694 acres ) until loan
is paid off. In contract process with Energy of Texas. Loan is guaranteed through long
term power purchase/contract with Entergy of Texas Inc.

Contact: Barry Hanson, 281-773-8796, E-mail: wadeenergycorp@att.net




                           Executive Summary

Mission
Wade Energy Corp. mission is to be an innovative leader in renewable energy
projects, primarily in the Texas and Louisiana areas. Wade will develop projects
to established clean energy to customers in the Tx. & La.area. Wade Energy
Corp. offers our customer’s innovative services that offer value while saving them
time and money. We believe our first responsibility is to the customers who use
our services. Wade’s years of experience place it in a strong position and
enables it to be dependable, price fairly and offer a vast selection of innovative
energy services.


Background
The condition of the industry today is such that Wade Energy Corp. has been
able to target its diversified array of services to numerous segments within the
regional market place. Wade Energy has taken advantage of its local presence
and ownership to build a strong marketing program that has networked with
potential customers within the region.

Wade Energy feels it can out step the competition by aggressively marketing its
line of energy services offering the following:

          Offer a diverse, innovative and quality oriented line of commercial and
           residential services.
          Large diverse group of high quality vendors.
          Offer the best customer service and support in our industry.
          Value for each dollar spent.


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          Competitive pricing.
          Experienced field management personnel.
          Experienced and trained sales personnel.



The company started as Wade Energy Corp. in Sulphur, Louisiana. The owners
are Barry Hanson (70%), President and Kevin Boudreaux (30%), Vice President.




The legal form of Wade Energy Corp. is C-Corporation, located at:

Location #1                 21623 Park Valley
                            Katy, Texas 77450


Location #2                 1001 Henning Dr.
                            Sulphur, La. 70663

Sales History / Projections
Sales and profitability for the next three years:

                            Sales                     EBIT

       2013(EST)                $420,000,000          294,000,000

       2014(EST)                 960,000,000          672,000,000

       2015 (EST)                1,380,000,000        966,000,000

Controlled annual growth is projected to be 15% per year through 2018.

Currently, Wade Energy Corp. is at a point where the company is ready to
expand. Wade Energy Corp. has positioned itself internally to make this move. It
has in place a group of projects ready for development, sales personnel in place
and a portfolio of high quality development team.

Wade Energy Corp. is the cumulative result of over 22 years of sales and skilled
experience in the residential and commercial energy industry.




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Objectives
Revenue projected for fiscal year 2012 is $220,000,000 which is made up of
projects currently ready for development. With external financing in place the
potential for 2013 could easily exceed $480,000,000. Annual growth is projected
to be conservatively 15% per year through 2018. We feel that before the end of
the year 2012, Wade Energy Corp. will be in a suitable position for further
expansion, primarily in the Houston & La. area but also potentially in the Western
States surrounding Arizona. Our objective, at this time, is to propel the company
into a prominent market position establishing Wade Energy Corp. as an
innovative leader in Renewable Energy.




Capital Requirements
According to the opportunities and requirements for Wade Energy Corp.
described in this business plan, and based on what we feel are sound business
assumptions, our initial capital requirements are for the following:

Line Of Credit
    An alternative source of cash for fluctuations in Project Cash Flow
      requirements, which cause peaks and valleys in corporate cash positions.
      These fluctuations periodically cause inefficiencies in field operations and
      in turn the real potential for reductions in profitability.
    Allows the company to acquire Equipment and /or Inventory, which will
      allow the company to react quickly to potential new markets, not currently
      serviced by Wade Energy Corp.



Total Line Of Credit Requested:

Short term requirements on a Line of Credit for 2011 would be in the area of
$360,000,000.00 to $700,000,000.00. What Wade Energy ultimately desires is a
long term relationship with a strong financial institution. Once Wade Energy has
proven itself by performing at or better than the Planning Projections, the
financial entity must be willing to act as a partner, in assisting Wade Energy to
grow in a profitable manner. This may entail expanding the Line of Credit
upwards into a $750,000,000.00 to 1 billion range. If this longer term range is out
of consideration, this needs to be discussed before a financial relationship is
developed. We do foresee Long Term Financing requirements at the current
time.


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Management Team
Our management team consists of the following individuals:

In-House Management

       Barry Hanson - President
             (28 years experience in the Construction Industry)

       Kevin Boudreaux – Vice President
             (17 years experience in Energy Development/Management)

       Sales Manager – Barry Hanson at this time


       Field Superintendent – Barry Hanson at this time
              (30 years experience managing Construction Projects)

Outside Management Support

       To Be Determined - Accountant / CPA

       To Be Determined - Corporate Attorney



Product Strategy

Current Product
Overall our existing lines of Commercial energy services offer a high level of
quality, wide range of expertise, more versatility and a greater level of quick


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response than the competition. We support a full range of energy needs, from
buy out to ground up projects. Wade is in the contract process with Entergy
Texas for two projects. The first is a solar project in Winnie, Texas on 1700 acres
that is ready to start. The value of this project approx $ 420,000,000.00. The
second project is an natural gas powered peaker plant in the Woodlands just
north of Houston, Texas with a value of approx 360,000,000.00, Both projects
are in the contract process with takes approx. 45 days to complete. Wade needs
Twenty five million to secure the land for these two projects and securing a third
project in the Houston/Katy area, and to start the design/ permitting process.




Market Analysis
Wade Energy is ideally positioned, at the current time, to benefit from the
extraordinary growth of the Houston area. Houston is ranked in the top 20
metropolitan areas for growth in retail, warehouse and office construction. Wade
has put in place a Sales and Marketing Manager and is just beginning to
recognize the favorable impacts of the programs he is implementing. The large
backlog of signed projects going into 2011 is indicative of the Sales Programs
ongoing efforts.


Customer Profile
Wade Energy regional target market includes Entergy, Reliant, Centerpoint
customers encompassing the Houston, Beaumont, Winnie, Woodlands segments
at this time. The typical customer of our products is someone who is a
purchasing agent, company owner.



Risk
The top business risks that Wade Energy Corp. faces as it begins to expand in
the Regional market are:

          Wade Energy’s loss of market share due to fierce competition in many
           of our target market segments.
          Be involved in a catastrophic liability occurrence.
       .
          Wade minimizes it’s risk by going into contract with power companies
           that are expanding and/or searching for outside sources of power.


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Marketing Plan
Wade Energy Corp. marketing strategy is to enhance promote and support the
fact that our products and services are:

    Systematic solutions to the commercial customers’ day-to-day challenges.
    Innovative
    Reliable
    Offer high value for dollar spent.
    Offer consistent quality.
    Offer fast turnaround time.
    Offering of a versatile and diverse service mix through a wide range of
     high quality vendors.
    We stand behind our work.
    We are the best in the renewable energy business.



The overall marketing plan for our service is based on the following
fundamentals:

Target the Energy Companies:
    New Power Requirements
    Renewable Power Requirements
    Future Power Requirements
    Existing Power Improvements

Responses from current and potential customers indicate that our services are
enjoying an excellent reputation and we fully intend to continue this trend.
Inquiries from prospective customers suggest that there is considerable demand
for our services.



Sales Strategy
Wade has in place a Sales Manager and results are beginning to have an
extremely positive impact on the backlog numbers. We have a backlog of
$700,000,000 plus going into 2011 and have the potential to sign $350,000,000
in additional contracts.




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In addition to the Sales Manager position, Wade has budgeted $7,000 – 12,000
FY2011 to advertising and expanding recognition of the Wade Energy name and
skill sets. Wade Energy will place advertisements in trade publications, attend
regional / national trade shows, implement direct mail program with telephone
follow up and network within local and regional business functions.

We will track, wherever possible, the incremental revenue generated from our
advertising, promotion and publicity efforts. We anticipate at least $350,000,000
FY2011 of sales will be generated directly from our promotions.
The average client of the company has been and will continue to be the owner/
purchasing agent.

The competition in the Houston area is fragmented and normally attempts to
appeal to their steady client base. This company’s current market approach is to
make a concerted effort to maintain the relationships already established with the
current client base, and expand into new market segments as well. The addition
of our Sales / Marketing Manager is allowing us to move forward in this direction.

We will attempt to expand our market base from the current 1-3 project’s
developed to 5-8 project’s developed by mid-2013. Going into 2015 the Sales
Manger’s goals will be to expand project’s developed to approximately twelve.


Financial Plan
Sort Term Cash Flow
      In place and operational we have a short term (12 Week) Cash Flow
      matrix. This format allows us to forecast short term issues and control
      cash requirements. With the large projects we are currently engaged in,
      we will encounter peaks and valleys in cash requirements. We must have
      the tools in place to predict these cash requirements so we are not under
      pressure to make the wrong (non-profitable) decision on any given project.

Annual Cash Flow Matrix
     We have an Annual Cash Flow based on the $700,000,000 for project
     development. The Annual Cash Flow shows Wade Energy has the ability
     to be out of any financial debt situation and operating in a positive cash
     situation by June – July 2017.

Annual Profit Plan
     In place is an Annual Profit Plan based on the current cost structure of
     Wade Energy. From the Profit Plan we have the ability to determine the
     actual overhead factor of Wade Energy. With the correct Overhead Factor,
     profitable pricing of Projects has a much higher probability of success.




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Financial LOC Exit / Payback
From our Cash Flow projections and Profit Plan, the profits and positive cash
flow generated by Wade Energy Corp. in 2012 will allow Wade to achieve its
revenue and profit goals making funds available to repay and be out of a Line of
Credit if necessary by June – July of 2016. Funds for repayment of the
outstanding Line of Credit will be generated from the revenue stream from the
first two projects with a six year pay-back. As for long-term loans the profit
generated by our current and future marketing efforts will allow Wade Energy
Corp. to anticipate and meet its current and future obligations.




Conclusion
Wade Energy Corp. enjoys an established record of being the innovative, quick,
dependable on site Leader for our customers and our marketing area. Our
customer’s expressions of satisfaction and encouragement are numerous, and
we intend to continue our growth primarily in the Houston, Texas market place.

Wade Energy Corp will demonstrated its ability to operate effectively and
profitably in areas outside the Houston area. We will be available, as the situation
arises, to take advantage of profitable situations, as we have done in the past, in
the surrounding states of Louisiana, New Mexico, Utah and Arizona.




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