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RENO, Nev. - Ormat Technologies, Inc. (NYSE: ORA), a $4.9 billion market cap renewable energy company, has completed its acquisition of the Blue Mountain geothermal power plant from Cyrq Energy for $88 million, the company announced Wednesday. According to InvestingPro data, the company is currently trading above its Fair Value, with a P/E ratio of 38.8x.
The 20-megawatt (MW) facility, located in Nevada, currently operates under a power purchase agreement with NV Energy that expires at the end of 2029. The plant was originally constructed using Ormat’s technology.
As part of its growth strategy, Ormat plans to upgrade the power plant to increase capacity by approximately 3.5MW. The company also intends to add a 13MW solar facility to support the plant’s auxiliary systems, pending permit and power purchase agreement approvals.
The acquisition, funded through bank debt, increases Ormat’s electricity segment generating portfolio to 1,268MW.
"The acquisition of the Blue Mountain geothermal power plant enhances our portfolio and reinforces our commitment to sustainable base-load energy solutions," said Doron Blachar, Chief Executive Officer of Ormat Technologies, in a press release statement.
Ormat Technologies is a vertically integrated geothermal company with operations spanning six continents. The company’s current generating portfolio totals 1,558MW, which includes 1,268MW of geothermal and solar generation capacity globally and 290MW of energy storage capacity in the United States.
The transaction aligns with Ormat’s strategy to expand its generation capacity through both organic growth and acquisitions of existing facilities.
In other recent news, Ormat Technologies reported its first-quarter 2025 earnings, revealing a better-than-expected performance. The company achieved earnings per share of $0.66, surpassing the forecast of $0.5963, while revenue reached $229.8 million, slightly above the anticipated $228.54 million. Barclays upgraded Ormat Technologies’ stock rating from Equalweight to Overweight, citing increasing demand for geothermal energy as a key factor. Additionally, Ormat entered into a $62 million Hybrid Tax Equity partnership with Morgan Stanley Renewables Inc., involving its energy storage and solar projects, which are expected to be operational by the end of 2025.
Ormat Technologies also expanded its executive team, appointing Aron Willis as Executive Vice President, Electricity Segment, and Daniel Moelk as Senior Vice President, Resources, Drilling, & EGS. The company aims to drive growth in its electricity segment and enhance its Enhanced Geothermal System initiatives. CEO Doron Blachar expressed confidence in the new appointees’ ability to support innovation and growth. Furthermore, Ormat Technologies is engaged in discussions with data center customers to supply geothermal power, with several long-term power purchase agreements expected to reprice at the end of the decade. These developments reflect Ormat’s strategic efforts to expand its energy storage capabilities and leverage financial mechanisms to support growth objectives.
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