We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pattern Energy to Acquire Stake in Broadview Wind Farm
Read MoreHide Full Article
Pattern Energy Group Inc. has inked a deal to acquire an interest in the 324-megawatt (MW) Broadview Wind power facility, along with the 35-mile 345-kV Western Interconnect transmission line, from Pattern Energy Group LP, also known as Pattern Development. Pattern Development has already closed financing and commenced the construction of Broadview, located near Clovis, NM.
The Broadview facility will consist of 2.3 MW wind turbines. It will have the capacity to generate 324 MW of energy, which is enough to meet the energy requirement of 180,000 California homes.
Details of the Transaction
Under the deal, Pattern Energy will purchase an 84% initial cash flow interest in Broadview and a 99% ownership interest in the Western Interconnect transmission line. The transaction is estimated to cost $269 million and Pattern Energy will fund the transaction at the commencement of commercial operations, slated for early 2017. The company will utilize currently available corporate liquidity and up to $160 million of long-term project holding commitments from debt financing facilities for the deal.
Addition of the Broadview facility will boost the company’s current owned capacity by 12%. Theproject is expected to generate nearly $28 million in annual cash for distribution, based on a five-year average run rate.
The company has inked two 20-year power purchase agreements ("PPAs") with Southern California Edison, a unit of Edison International (EIX - Free Report) , for sale of 100% of Broadview’s output up to a total of 297 MW.
Other Ventures
The rising demand for clean and carbon-free products has widened the scope for renewable energy ventures. This January, Pattern Energy completed the construction of the 150 MW Amazon Wind Farm Fowler Ridge in Benton County, IN.
With the addition of the Broadview facility, Pattern Energy’s portfolio will comprise 17 operational wind facilities with a total owned capacity of 2,554 MW in the U.S.
Peers’ Initiatives
Increasing awareness of the drawbacks of fossil fuels is spurring the demand for renewable sources of power generation. Per a U.S. Energy Information Administration report ("EIA"), total renewables used in the electric power sector is expected to increase 13.0% in 2016 and 3.3% in 2017. With the exception of hydropower, the total amount of energy generated from renewable sources is projected to grow 14.5% in 2016 and 8.9% in 2017.
The EIA report also predicted wind capacity to increase 10% in both 2016 and 2017. In 2017, wind generation will account for almost 6% of the total electricity generation. To tap this potential, NextEra Energy, Inc. (NEE - Free Report) expects to bring on line nearly 2,400–3,800 MW of new wind projects over the 2017–2018 timeframe.
Pattern Energy currently carries a Zacks Rank #3 (Hold).
A Key Pick in the Sector
A better-ranked stock in the same space is Black Hills Corporation (BKH - Free Report) , sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Pattern Energy to Acquire Stake in Broadview Wind Farm
Pattern Energy Group Inc. has inked a deal to acquire an interest in the 324-megawatt (MW) Broadview Wind power facility, along with the 35-mile 345-kV Western Interconnect transmission line, from Pattern Energy Group LP, also known as Pattern Development. Pattern Development has already closed financing and commenced the construction of Broadview, located near Clovis, NM.
The Broadview facility will consist of 2.3 MW wind turbines. It will have the capacity to generate 324 MW of energy, which is enough to meet the energy requirement of 180,000 California homes.
Details of the Transaction
Under the deal, Pattern Energy will purchase an 84% initial cash flow interest in Broadview and a 99% ownership interest in the Western Interconnect transmission line. The transaction is estimated to cost $269 million and Pattern Energy will fund the transaction at the commencement of commercial operations, slated for early 2017. The company will utilize currently available corporate liquidity and up to $160 million of long-term project holding commitments from debt financing facilities for the deal.
PATTERN ENERGY Price and Consensus
PATTERN ENERGY Price and Consensus | PATTERN ENERGY Quote
Benefits of the Project
Addition of the Broadview facility will boost the company’s current owned capacity by 12%. Theproject is expected to generate nearly $28 million in annual cash for distribution, based on a five-year average run rate.
The company has inked two 20-year power purchase agreements ("PPAs") with Southern California Edison, a unit of Edison International (EIX - Free Report) , for sale of 100% of Broadview’s output up to a total of 297 MW.
Other Ventures
The rising demand for clean and carbon-free products has widened the scope for renewable energy ventures. This January, Pattern Energy completed the construction of the 150 MW Amazon Wind Farm Fowler Ridge in Benton County, IN.
With the addition of the Broadview facility, Pattern Energy’s portfolio will comprise 17 operational wind facilities with a total owned capacity of 2,554 MW in the U.S.
Peers’ Initiatives
Increasing awareness of the drawbacks of fossil fuels is spurring the demand for renewable sources of power generation. Per a U.S. Energy Information Administration report ("EIA"), total renewables used in the electric power sector is expected to increase 13.0% in 2016 and 3.3% in 2017. With the exception of hydropower, the total amount of energy generated from renewable sources is projected to grow 14.5% in 2016 and 8.9% in 2017.
The EIA report also predicted wind capacity to increase 10% in both 2016 and 2017. In 2017, wind generation will account for almost 6% of the total electricity generation. To tap this potential, NextEra Energy, Inc. (NEE - Free Report) expects to bring on line nearly 2,400–3,800 MW of new wind projects over the 2017–2018 timeframe.
Pattern Energy currently carries a Zacks Rank #3 (Hold).
A Key Pick in the Sector
A better-ranked stock in the same space is Black Hills Corporation (BKH - Free Report) , sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>