Ormat Technologies, Inc. completed the acquisition of Two Contracted Geothermal Assets in Nevada from TG Geothermal Portfolio, LLC.
July 13, 2021
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Ormat Technologies, Inc. (NYSE:ORA) agreed to acquire two contracted geothermal assets in Nevada from TG Geothermal Portfolio, LLC for approximately $380 million on May 21, 2021. Ormat will pay $171 million for 100% of the equity interests in a portfolio and will assume debt and associated lease obligations of approximately $206 million book value as of March 31, 2021. The purchase price is subject to a customary post-closing working capital adjustment based on the levels of net working capital of certain of the two contracted geothermal assets as of the closing of the transaction. Assets include, Two operating geothermal power plants in Nevada comprise of 56 Mega Watt Dixie Valley geothermal power plant, one of the largest geothermal power plants in Nevada, 11.5 Mega Watt Beowawe geothermal power plant. Rights to Coyote Canyon, a greenfield development asset adjacent to Dixie Valley with high resource potential. And an underutilized transmission line, capable of handling between 300MW and 400MW of 230KV electricity, connecting Dixie Valley to California. The two operating power plants sell electricity under PPAs. Ormat expects these assets to generate $55 million in revenue and approximately $37 million in EBITDA in 2022. The transaction is subject to customary conditions including regulatory, anti trust, receipt of certain third party consents. The purchase agreement may be terminated in certain circumstances, including if the Transaction has not been consummated by August 20, 2021. The deal is expected to close in the second half of 2021. Norton Rose Fulbright LLP served as a legal advisor and Citi acted as a Financial Advisor for Ormat Technologies.
Ormat Technologies, Inc. (NYSE:ORA) completed the acquisition of Two Contracted Geothermal Assets in Nevada from TG Geothermal Portfolio, LLC on July 14, 2021.
Ormat Technologies, Inc. is a geothermal company that is engaged in geothermal and recovered energy generation (REG). The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter, a power generation unit that converts low, medium and high-temperature heat into electricity. It owns or has installed for utilities and developers worldwide, totaling approximately 3,200 megawatts (MW) of gross capacity. Its segments include Electricity Segment, Product Segment and Energy Storage Segment. Electricity segment develops, builds, owns, and operates geothermal and solar Photovoltaic (PV). Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation. Energy Storage segment owns and operates a grid connected In Front of the Meter (IFM) Battery Energy Storage System (BESS) facilities. Its portfolio includes 1,385 MW with 1,215 MW geothermal and solar generation.