DOW JONES NEWSWIRES
Constellation Energy Group Inc. (CEG) said it has sold its stake
in a California geothermal facility to Ormat Technologies Inc.
(ORA) for $73.5 million.
The two companies shared an interest in Mammoth-Pacific LP,
which owns and operates three geothermal plants at the 29 megawatt
facility, via a 50/50 split. With the sale, Ormat will take over
Constellations 14.5 MW share.
The power company said it would have the proceeds from the sale
available to redeploy for strategic priorities.
Last week, Constellation reported its quarterly earnings soared
after prior-year divestiture losses, but revenue was down 14% and
adjusted profit disappointed analysts' expectations. It had
previously warned of falling power prices
Neither Constellation nor Ormat shares were active after hours,
having closed the day up 0.1% at $31.63 and up 3.6% at $28.81,
respectively. Both have seen their stock values decline in 2010,
underperforming the wider market.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com