Ormat To Acquire Geothermal And Solar Assets For $271M

Renewable geothermal energy technology company Ormat Technologies Inc ORA has entered into a purchase agreement with Enel Green Power North America (EGPNA), a subsidiary of Enel SpA, to acquire a 150 MW portfolio for $271 million.

The portfolio includes two contracted operating geothermal power plants and one triple hybrid geothermal, solar PV (20MW nameplate) and solar thermal power plant.

The total generation capacity of the above assets is about 43 MW, two Solar assets with a total nameplate capacity of 40 MW, and two greenfield development assets.

The deal is expected to support Ormat’s strategic portfolio expansion goals.

These acquired assets have collectively generated an annual revenue of approximately $35.0 million and an EBITDA of about $24.0 million for the years 2020-2022.

The acquisition is expected to close by the first quarter of 2024.

“We are confident that this accretive acquisition, which carries approximately an 8x EV/EBITDA multiple (inclusive of the future planned enhancement and optimization but excluding the Cove Fort expansion), will support both our short and long-term growth plans, further leveraging our unique core capabilities to maximize the efficiency and output from these power plants’ energy sources, strengthening our financial position, and delivering meaningful value to our investors,” said CEO Doron Blachar.

ORA held $275.1 million in cash and equivalents as of June 30, 2023.

Price Action: ORA shares are trading lower by 0.07% at $66.42 on the last check Monday.