Tuesday, April 24, 2018

USA, Nevada: U.S. Geothermal is Now Part of Ormat

Ormat Closes Acquisition of U.S. Geothermal (News Release)

Ormat Technologies, Inc. has announced that it has closed the previously announced acquisition of U.S. Geothermal, Inc. for a total consideration of approximately $110 million, comprising approximately $106 million funded in cash by the company to acquire the outstanding shares of common stock of U.S. Geothermal, Inc., and approximately $4 million, funded from available cash of U.S. Geothermal, Inc., to cash-settle outstanding in the money options to acquire outstanding shares of U.S. Geothermal, Inc.

As a result of the acquisition, Ormat now owns and operates U.S. Geothermal's three power plants at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho with a total net generating capacity of approximately 38 MW. In addition, Ormat now owns development assets held by U.S. Geothermal, which include a project at the Geysers, California; a second phase project at San Emidio, Nevada; a greenfield project in Crescent Valley, Nevada; and the El Ceibillo project located near Guatemala City, Guatemala.

The operating assets sell power under existing power purchase agreements at favorable price terms for the electricity, with an aggregated contract capacity of 55 MW. Ormat plans to improve the acquired operating assets and implement synergies and cost reductions which are expected to improve profitability of the operating projects by approximately 50% during 2019.

Ormat has put in place a comprehensive integration plan to assure continuous operation of U.S. Geothermal's assets. The company is pleased to retain a number of U.S. Geothermal employees and welcome them to Ormat.

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Ormat Technologies, Inc. will be exhibiting at the GRC Annual Meeting & Expo, 11-14 October, Reno, Nevada, USA.