The report, Engaging as Partners in Energy Efficiency: Multifamily Housing and Utilities, indicates that upgrades can generate energy cost savings of 15% to 30% in buildings with five or more residential units. The report also found that energy utilities play a critical role in unlocking these savings through the use of rebate programs and other financial incentives. Utilities’ contributions to energy efficiency programs are expected to increase from $4.3 billion in 2009 to as much as $12 billion annually by 2020.

Apartment buildings represent only a tiny fraction of the untapped opportunity available in the energy efficiency sector. An estimated $130 billion worth of energy-saving opportunities go unrealized in the U.S. each year, according to a 2009 McKinsey & Company report.

Much of this untapped opportunity exists in the commercial sector. Commercial buildings account for about 20% of energy use in the U.S. and are frequently eligible for utility rebate programs. As businesses nationwide seek to reign in their operating costs, many are requesting energy efficiency makeovers from companies such as Blue Earth, Inc. (OTC BB: BBLU).

BBLU provides lighting, refrigeration and HVAC retrofits for commercial buildings. The Company is growing through an M&A strategy in which it acquires companies with established customer bases in one technology area and then cross-sells its other technologies to those customers. BBLU’s most recent acquisition, Xnergy, has a blue-chip client base that includes Abbott Labs (NYSE: ABT), Pfizer (NYSE: PFE) and Boston Scientific (NYSE: BSX).

BBLU signed two agreements in late 2011 that should accelerate revenue growth this year. The Company will work with US Energy Affiliates to provide energy efficiency upgrades to gas stations and hotels in California. BBLU is also partnered with Gexpro and eCORE Technology on a $60 million program to retrofit more than 2,000 gas stations and convenience stores with energy-saving technology.

You can learn more about BBLU by watching an interview with its CEO, Dr. Johnny R. Thomas, from RedChip’s Small-Cap New York Conference. BBLU is also scheduled to present at our virtual conference, taking place February 15-16, 2012. Register today to reserve your spot.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

High energy prices and new, advanced drilling techniques are sparking a production boom in resource-rich areas such as the Permian Basin in the southwestern U.S. and the Bakken of North Dakota. While investors who want to play the oil boom may be tempted to claim a stake in industry giants such as Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM), a recent Wall Street Journal article, Frack Attack: How to Play the Next American Oil Boom, suggests that investors look beyond the majors to profit from the U.S. energy explosion: “Investors with an appetite for risk might want to drill deeper into the sector to find smaller companies sitting on U.S. oil-shale riches—which make tempting takeover targets, analysts say.”

One company that fits this description perfectly is Cross Border Resources, Inc. (OTC QX: XBOR), a Texas-based oil and gas company with $28 million in proven reserves. XBOR holds over 31,000 acres in the Permian Basin, one of America’s most prolific oil and gas regions, and is targeting various emerging plays including the Bone Spring and Wolfberry, and more conventional plays such as the Abo, Yeso and San Andres.

As a non-operator partnered with the most prominent names in the Permian Basin, including Cimarex (NYSE: XEC), Apache (NYSE: APA) and Concho Resources (NYSE: CXO), XBOR has easy access to rigs and frac crews, expediting production. Management expects production to reach 500 barrels of oil equivalent per day by the end of January, up from 320 barrels at the end of the third quarter. The Company recently updated investors on its 2nd Bone Spring operations and plans to update its other Permian Basin activity in the next several weeks.

The combination of growing reserves and increasing production, set amid a new American oil boom, makes XBOR a highly attractive takeover candidate. RedChip Research recently rated XBOR a Strong Buy with a 12-month price target of $5.00, a potential upside of more than 250%. You can learn more about the Company by watching our interview with Cross Border’s CEO, Will Gray, from our recent Small-Cap New York Conference.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

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The Times Square News Year’s ball is now energy-efficient, PC Mag reported Wednesday. When the famous sphere drops on New Year’s Eve, it will be lit with over 32,000 LED bulbs manufactured by Philips (NYSE: PHG). The new bulbs consume 80% less energy compared to traditional incandescent light bulbs, which the federal government will phase out starting January 1.

The upgrade of the classic New Year’s icon reflects the growing mainstream adoption of energy-efficient lighting technology. In addition to LED lights, homes and businesses are installing “smart” lighting controls such as dimming systems and building automation products to save on energy costs. The lighting controls market in North America & Europe is projected to reach $3.8 billion by 2015, according to Global Industry Analysts.

Blue Earth (OTC BB: BBLU) is well on its way to becoming an important player in this space. The Company performs energy efficiency upgrades on lighting controls as well as refrigeration, heating, ventilation and air conditioning systems. M&A is a key element in the Company’s growth strategy: BBLU acquires companies with established customer bases in one technology area, and then cross-sells its other technologies to those customers. The two acquisitions BBLU completed in 2011 (one of which has a $500 million project pipeline) provide the Company with a strong foundation on which to grow its business.

BBLU is quickly ramping up its deal activity heading into the new year. US Energy Affiliates recently signed an agreement with the Company to finance energy efficiency upgrades to gas stations and hotels in California, the latter marking BBLU’s entry into the lucrative hospitality sector. BBLU is also partnered with Gexpro and eCORE Technology on the eecoStation program, which is expected to help more than 2,000 gas stations and convenience stores in North America implement energy-saving technology. With energy efficiency technology hitting the mainstream, BBLU has the potential to generate strong revenue growth in 2012 as these programs gain traction.

You can gain more insight into BBLU’s growth potential by watching a video interview with the Company’s CEO, Dr. Johnny R. Thomas, from our recent Small-Cap New York Conference. BBLU also presented during our latest virtual conference; click the link to watch the presentation.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

In short, no. Simply put, the termination of the LOI has zero material impact on XBOR’s day-to-day operations. The Company was growing prior to the LOI and continues to grow. Management expects daily production to reach 500 barrels of oil equivalent in early 2012, up from 320 barrels at the end of the third quarter. The Company has $28 million in proved reserves and is strongly positioned to convert probable and possible reserves into producing assets in the year ahead.

It also doesn’t change the fact that XBOR is one of only two pure play public companies providing direct exposure to the Permian Basin. The region accounts for an estimated 20% of U.S. oil production and is in the middle of a massive oil boom driven by advances in drilling technology. As of November 2011, nearly half of all active land rigs in the U.S. were located in the Permian Basin—and Cross Border has a substantial footprint in this prolific region. The Company’s assets include two hot emerging plays (Bone Spring and the Wolfberry trend), as well as more conventional plays such as the Abo, Yeso and San Andres.

The termination of the LOI also has no effect on XBOR’s longstanding relationships with its working interest partners, which include industry heavyweights such as Cimarex (NYSE: XEC), Apache (NYSE: APA), Concho Resources (NYSE: CXO) and Mewbourne. As we’ve previously discussed, non-operators such as XBOR are a low-risk way for investors to play the onshore energy boom. These partnerships give XBOR ready access to rigs and frac crews, positioning the Company to drill more wells in a shorter period of time than its competitors.

These are just a few reasons why XBOR remains a strong oil and gas play and an attractive buyout target, and why RedChip rated XBOR a “Strong Buy” in its initial report on the Company. You can learn more about XBOR by watching our interview with Cross Border’s CEO, Will Gray, from our recent Small-Cap New York Conference.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

Commercial buildings accounted for 20% of U.S. energy use last year, and a growing number of companies are looking to offset rising energy costs by implementing energy efficiency upgrades. Green building activity grew 50% between 2008 and 2010, according to Green Outlook 2011: Green Trends Driving Growth by McGraw-Hill Construction. Nonresidential green construction activity is expected to triple between 2010 and 2015—which should bring an influx of customers for prominent energy efficiency service companies such as Johnson Controls (NYSE: JCI), Ameresco (NYSE: AMRC), Lime Energy (NASDAQ: LIME), and Orion Energy Systems (NYSE Amex: OESX), as well as newer players such as Blue Earth, Inc. (OTC BB: BBLU).

Investors should take note of BBLU in particular. The Nevada-based company is growing rapidly through a roll-up strategy, something its management team has plenty of experience with: BBLU’s founders completed 34 acquisitions in four years at their previous venture, growing the company from $29,000 to $350 million in revenues and increasing its market cap to $1.2 billion. BBLU’s most recent acquisition is Xnergy, a profitable energy services company whose clients include Abbott Labs (NYSE: ABT), Pfizer (NYSE: PFE) and Boston Scientific (NYSE: BSX).

BBLU is also partnering with Gexpro and eCORE Technology on a program that will help more than 2,000 gas stations and convenience stores in North America implement energy-saving technology. The program could generate $60 million in revenues over the next two years. To learn why BBLU is poised to become a major player in the energy efficiency space, view the Company’s presentation from our latest virtual conference.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

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Blue Earth, Inc. (OTCBB: BBLU), a provider of energy efficiency services and technology, has signed an agreement with Gexpro and eCORE Technology to create a program that will help more than 2,000 independently owned retail gas stations and convenience stores in North America implement energy-saving technology. The new program, eecoStation, is expected to generate $60 million in revenue over the next two years, making this agreement a game-changer for BBLU. The Company’s subsidiary, Castrovilla, will coordinate and install the energy efficiency measures (which will include lighting and refrigeration improvements), while BBLU will provide financing for the program.

The Company has strong partners in both Gexpro, which will supply the equipment for the program, and eCORE Technology, which will lend marketing and sales support. Gexpro, an industry giant with a well-established national presence, began over a century ago as a division of General Electric (NYSE: GE) and was acquired in 2006 by Rexel (Paris: RXL.PA), the world’s largest electrical distributor.

Meanwhile, eCORE Technology has established close relationships with independent gas station and convenience store owners nationwide. This extensive customer base will provide an excellent starting point from which to build eecoStation’s sales.

As we discussed in a previous post on the subject, numerous businesses are concerned about rising energy prices and are seeking to cut their operating costs. According to a 2010 study by the Lawrence Berkeley National Laboratory, U.S. spending on energy efficiency services is expected to increase from $18 billion in 2008 to $37 billion by 2020 under a low-growth scenario, or $80 billion under a high-growth scenario. The surging demand for energy efficiency services provides an ideal backdrop for the eecoStation rollout.

BBLU has grown rapidly in 2011, executing a roll-up strategy that began with the acquisition of Castrovilla in January and continued with the recent acquisition of Xnergy, an energy services company that produced $18 million in  revenues for fiscal 2010 and currently has a $500 million project pipeline.

BBLU’s founders have proven success executing large roll-up strategies. In a previous venture they acquired 34 companies in approximately 4 years; growing revenues from $29,000 to more than $350 million. With its skilled management team spearheading the Company’s strategic expansion plan, and a potential $60 million project underway, BBLU is well positioned to capitalize on the vast potential in the energy efficiency market.

Investors interested in BBLU will have at least two opportunities in the next month to learn more about the Company and speak one-on-one with its management: Blue Earth is scheduled to present at our virtual conference today at 1 p.m. EDT and then again at our 2011 Small-Cap New York Conference on November 9^th. Register today to reserve your spot for both events.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv

A non-operator, or non-op, in the oil and gas industry holds a working interest in a well, but relies on a Joint Operating Agreement with an operator for the actual production of that well. This means the non-op participates in their share of the profits on the well and must also contribute their portion of expenses for the production. One example of a highly successful non-op is Northern Oil & Gas (NYSE Amex: NOG), which saw a packed breakout session at OGIS.

There are several key benefits to being a non-op:

One benefit, evidenced by established producers pursuing non-op strategies in new areas, is access to expertise. According to the October 6^th edition of ProspectCentre, Stone Energy (NYSE: SGY), a $900M producer with onshore and offshore experience, is “expanding its non-op portfolio as a way of gaining intelligence and expertise in new basins.” Another established producer doing the same is Rex Energy (NASDAQ: REXX).

Another key benefit of the non-op model is access to equipment and frac crews. With the boom in onshore drilling, a result of technology advances we’ve discussed previously, non-ops gain a strong advantage over smaller operators by teaming up with major industry producers. By working with major producers, such as Cimarex Energy (NYSE: XEC), Apache (NYSE: APA), and others, non-ops gain timely access to needed rigs and frac crews, expediting production.

One company utilizing these benefits to its advantage is Cross Border Resources (OTCQX: XBOR). With over 31,000 net acres in the Permian Basin of west Texas and eastern New Mexico, XBOR is well positioned to leverage a non-op model. XBOR recently reported a significant increase in its proved PV-10 value, and the Company is projecting exiting the year at 500 BOE/day in net production. For an independent take on the PV-10 valuation and XBOR’s prospects in the months ahead you should read EnerCom’s recent write-up.

Additionally, our initial research report on XBOR will provide you a solid understanding of why the stock presents enormous upside potential. The full report is available at no cost; click here to download. Also, be sure to watch XBOR’s presentation at our upcoming virtual conference on October 20^th at 11:15am EDT. You can register for the conference by clicking here.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

The Lawrence Berkeley National Laboratory projects that U.S. spending on energy efficiency services will increase from $18 billion in 2008 to as much as $80 billion by 2020, and Forbes contributor William Pentland recently described the industry as “the sweet spot in cleantech investing.”

What is the driver behind this growth in energy efficiency services, and why will it continue? Simply put, companies are concerned about rising energy prices and are looking to cut costs.

According to a Deloitte white paper, Every Company is an Energy Company, energy use accounts for 5% to 20% of a typical company’s expenses. In a recent global survey of over 4,000 corporate executives, facility managers, and other decision-makers conducted by Johnson Controls (NYSE: JCI), respondents cited “energy cost savings” as the primary driver behind their organizations’ energy efficiency decisions. Over 80% of respondents expected energy prices to go up in the coming year.

The desire to boost the bottom line can provide a powerful incentive for businesses, schools, hospitals, and other organizations to implement energy-saving technology such as lighting retrofits and heating, ventilation and air conditioning (HVAC) system upgrades. While these and other energy efficiency initiatives require upfront investments, government incentives and utility rebate programs can defray a portion of the implementation cost, and the energy savings generated by efficiency upgrades often pay for themselves very quickly. With these considerations, energy efficiency is more accessible and more necessary than ever for businesses and other organizations.

One way for investors to profit from the growing demand for energy efficiency services is through shares of Blue Earth, Inc. (OTCBB: BBLU), a company employing a mergers and acquisition strategy to acquire, license, develop, market, install and monitor cleantech-related, innovative technologies and energy management systems. These technologies and systems are designed to enable BBLU’s customers, both commercial and residential, to reduce their energy consumption, lower their generating and maintenance costs and realize environmental benefits.

An important element of the Company’s M&A strategy is to acquire companies with established customer bases in each of its key categories: refrigeration, lighting and HVAC. Each of these customer bases presents BBLU the opportunity to cross-sell retrofits in the other categories. As an example, if a customer was originally a refrigeration customer, BBLU would be in an ideal position to offer energy management services for lighting and HVAC.

In January 2011, BBLU acquired substantially all the assets of Humitech and Castrovilla, which together manufactures, sells and installs commercial refrigeration and other energy efficiency products to a base of approximately 5,400 businesses in northern California. Additionally, Castrovilla currently has contracts with over a dozen municipal utilities throughout its operating region to provide ratepayer-funded rebate offerings and turnkey program administration and implementation.

More recently, in September 2011, BBLU acquired Xnergy, a California-based energy services company that has been rated the #1 Alternative Energy Provider by the San Diego Business Journal. Operating throughout the West Coast, Xnergy has a strong history of providing a broad range of comprehensive energy solutions to major customers, including Biogen Idec (NASDAQ: BIIB), Cox Communications, and LG Philips LCD America (NYSE: LPL). With $18 million in 2010 sales and a $500 million pipeline of projects for industrial, commercial and public sector clients, Xnergy is a strong addition to the BBLU portfolio of companies.

Under the guidance of Johnny Thomas, CEO, and John Francis, VP of Corporate Development, we believe BBLU presents a tremendous opportunity for investors. This is not the first M&A roll-up strategy successfully implemented by these veteran corporate operators. Prior to BBLU, Mr. Thomas and Mr. Francis together spearheaded such a strategy, acquiring 34 companies in approximately four years, growing revenues from $29,000 to more than $350 million, and increasing the market valuation of the company to $1.2 billion.

An experienced management team capitalizing on a fragmented market in a high-growth industry is a recipe for strong capital gains. To learn more about this exciting company, watch our video profile of BBLU and view the Company’s recent presentation at the August RedChip Virtual Conference.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

In a recent write-up in Barron’s, a Morgan Keegan analyst stated, “The Permian Basin machine continues to churn out high-margin oily growth.” This growth is quite evident when you look at the 400% jump in the number of rigs operating in the region over the past two years.

As we discussed in a previous post, this impressive boom in the Permian is being driven by several advancements in technology, specifically horizontal drilling, 3D seismic, and hydraulic fracturing.

With many of the larger operators in the region having global operations, it’s difficult for investors to gain direct exposure to the Permian and its profit potential. One of only two pure play public companies in the region providing investors that exposure is Cross Border Resources (OTCQX: XBOR).

XBOR is a low-risk way for investors to participate in the Permian opportunity thanks to its non-operated business model. Rather than own 100% interest in particular wells, XBOR partners with major operators in the oil and gas industry, including Cimarex (NYSE: XEC), Apache (NYSE: APA), Mewbourne, Devon Energy (NYSE: DVN), and Concho Resources (NYSE: CXO). By employing this approach to production XBOR not only reduces costs, but more importantly, they gain access to the limited number of rigs and “frac crews” in the area. This puts XBOR in a position to drill more wells in a shorter period of time. Additionally, the extensive experience of the major producers XBOR is partnered with gives the Company a strong edge over other small upstart operators attempting to enter the Permian.

XBOR is currently producing around 250+ BOE/d on approximately 138 gross well bores and is expected to reach 500 BOE/d by the end of 2011. A strong drilling program with its major operating partners is driving the second half production acceleration. Additionally, XBOR is projecting fiscal year 2011 EBITDA of $3 million, a number which could move up significantly if production surges from certain new wells, such as the Leo 3 Fed Com #1H, which had a 24-hour initial production rate of 1,101 BO.

For those just learning of XBOR, a brief introduction to the Company is available by viewing a recent podcast. A more thorough introduction from the Company’s CEO, Will Gray, is available via his presentation at the recent RedChip Virtual Conference. Additionally, RedChip Research just published its initial report on XBOR, which is now available for download at no cost. The report provides a detailed substantiation as to why investors who buy the stock at these levels can reap a potential return of over 200%.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

Just like any oil-producing region, the Permian Basin has gone through many booms and busts over the years. That said, the current boom that is getting underway is a bit different than those of the past. Historically, booms and busts in the oil industry have been tied directly to the price of oil – when oil prices soar, producers can pull oil from areas that may not be economically viable in times of more reasonable or even depressed pricing.

Today’s boom in the Basin, while partly a product of pricing, is primarily being driven by technology; specifically developments in horizontal drilling techniques and advances in hydraulic fracturing methods that were learned as producers capitalized on more challenging natural gas shale plays. For example, Chevron (NYSE: CVX) is using techniques it learned in the tight gas fields in the Piceance Basin of Colorado. With natural gas prices depressed and oil prices near record levels, the major producers are quickly implementing these advanced methodologies to maximize the production of their oil assets while minimizing the expenses involved.

One company that is well-positioned to profit from this new boom in the Permian Basin is Cross Border Resources (OTCBB: XBOR). The Company currently owns approximately 31,000 net acres in the Permian Basin, with assets targeting various emerging resource plays including the 1^st and 2^nd Bone Spring as well as the Wolfberry trend, and more conventional plays such as the Abo, Yeso, and San Andres. In addition to these highly-coveted resource assets, XBOR holds an additional 268,000 net mineral acres in western New Mexico.

Utilizing a non-operated business model, XBOR is focused on partnering with proven operators, including Cimarex (NYSE: XEC), Apache (NYSE: APA), Mewbourne, Devon Energy (NYSE: DVN), and Concho Resources (NYSE: CXO). This non-operating approach allows XBOR to reap substantial cost-savings while partnering with the best and brightest in the Basin.

XBOR is a pure-play Permian Basin oil and gas company that is publicly traded. This provides investors with a unique opportunity to profit from the aggressive revival in the region. Recent acquisitions in the Basin, with production and acreage similar to XBOR, have been given production multiples in the range of $130,000 to $150,000 per BOE/d. We believe the Company will be a premium buyout target as it ramps up production levels within the next 18-24 months.

XBOR is already producing over 200 BOE/d (net) and has recently closed the necessary funding to begin their anticipated capital expenditure program in the current fiscal year.  If XBOR were to achieve a production level of 500 BOE/d (net), based on the median range ($140,000 per BOE/d) of other recent acquisitions in the Basin, XBOR could fetch a price of $70,000,000, or $4.34 per share. While this represents a 100% upside from current prices, we believe the Company will ramp production to even greater levels before allowing itself to get picked up by one of the major operators in the region.

The Permian Basin has been making money for oil and gas investors for nearly a century. Don’t miss this opportunity to participate in the newest boom in the region.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may maintain positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.