RENO, Nev., Aug. 2 /PRNewswire-FirstCall/ -- Ormat
Technologies, Inc. (NYSE: ORA) is pleased to announce that its
wholly owned subsidiary, Ormat Nevada Inc., signed today an
agreement to acquire Constellation Energy's 50% stake in the
partnership that owns the geothermal power plants at the Mammoth
complex for a purchase price of $72.5
million. Following the acquisition, which also closed today,
Ormat will become the sole owner of the land, power plants, and
associated equipment comprising the Mammoth complex, including the
rights to over 10,000 acres of undeveloped federal lands.
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The Mammoth complex is located near Mammoth Lakes, California and includes three
plants, which were completed in 1985 and 1990 and have a generating
capacity of approximately 29 MW.
"The Mammoth complex has many strong assets, including an
experienced operating team running the facility and a high quality
geothermal reservoir. As the sole owner of the complex, we plan to
move quickly to expand the facility with a goal to double
generation capacity," said Dita Bronicki, the Chief Executive
Officer of Ormat. "Mammoth offers the same development
opportunities that we have exploited in our Steamboat complex, and
expect to dramatically increase the capacity of the existing plant
through modernization of the equipment and the addition of new
equipment with very little resource risk."
Mammoth Pacific, LP, was previously accounted for under the
equity method and will be consolidated in our consolidated
financial statements following the acquisition. As a result of the
acquisition we will record in the third quarter of 2010, a gain
equal to the difference between the book value of the investment in
Mammoth Pacific, LP and the fair value of such investment at the
acquisition date. Based on a preliminary analysis the pre-tax gain
will be approximately $40 million.
The actual amount of the gain will not be known until we complete
the purchase price allocation, including the allocation between the
current power plants and the planed expansion of the complex.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated
company primarily engaged in the geothermal and recovered energy
power business. The Company designs, develops, owns and operates
geothermal and recovered energy-based power plants around the
world. Additionally, the Company designs, manufactures and sells
geothermal and recovered energy power units and other
power-generating equipment, and provides related services. The
Company has more than four decades of experience in the development
of environmentally-sound power, primarily in geothermal and
recovered-energy generation. Ormat products and systems are covered
by 75 U.S. patents. Ormat has engineered and built power plants,
that it currently owns or has supplied to utilities and developers
worldwide, totaling approximately 1300 MW of gross capacity.
Ormat's current generating portfolio includes the following
geothermal and recovered energy-based power plants: in the United States - Brady, Brawley, Heber, Mammoth, Ormesa, Puna, Steamboat, OREG
1, OREG 2 and Peetz; in Guatemala
- Zunil and Amatitlan; in Kenya –
Olkaria III; and, in Nicaragua -
Momotombo.
Ormat's Safe Harbor Statement
Information provided in this press release may contain
statements relating to current expectations, estimates, forecasts
and projections about future events that are "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally relate to
Ormat's plans, objectives and expectations for future operations
and are based upon its management's current estimates and
projections of future results or trends. Actual future results may
differ materially from those projected as a result of certain risks
and uncertainties. For a discussion of such risks and
uncertainties, see "Risk Factors" as described in Ormat
Technologies, Inc.'s Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March
8, 2010.
These forward-looking statements are made only as of the date
hereof, and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
Ormat Technologies
Contact:
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Investor Relations
Contact:
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Dita Bronicki
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Marybeth Csaby/Rob
Fink
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CEO
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KCSA Strategic
Communications
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775-356-9029
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212-896-1236 (Marybeth)
/212-896-1206 (Rob)
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dbronicki@ormat.com
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mcsaby@kcsa,com/rfink@kcsa.com
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SOURCE Ormat Technologies, Inc.
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