Independent power company Pattern Energy Group Inc. has announced financial rises for the first quarter of this year (Q1'14), as well as its plans to acquire the majority of the Panhandle 1 wind project in Texas.
According to Pattern Energy, it recorded an adjusted EBITDA of $37.2 million in the first quarter, up 8% from Q1'13. Meanwhile, the company's revenue rose 13% year-over-year to $49.5 million.
Pattern Energy sold 652,521 MWh of electricity in Q1'14 compared to 603,633 MWh sold in the same period in 2013. The company says the 8% increase was primarily due to higher winds and the commencement of commercial operations on the final 42 MW at its Ocotillo wind farm in July 2013.
Furthermore, Pattern Energy has agreed to acquire 179 MW of owned interest in the 218 MW Panhandle 1 wind project from Pattern Energy Group LP (Pattern Development) following its completion, expected in June 2014, for a total cash consideration of $125 million.
Panhandle 1 is being built in Carson County, Texas, and consists of 118 GE 1.85 MW wind turbines. The acquisition is subject to customary closing conditions and is expected to close following the commencement of commercial operations in June 2014. The balance of the project will be acquired from Pattern Development by two institutional tax equity investors.
‘The acquisition of Panhandle 1 will grow our assets under management by 14 percent, to 11 projects, and will immediately increase our cash available for distribution,’ says Mike Garland, president and CEO of Pattern Energy. ‘Panhandle is one of the best wind sites in the U.S. with a strong wind resource and excellent transmission capacity. In addition, when coupled with Panhandle 2, this acquisition will increase our economies of scale in the area."
In December, Pattern Energy agreed to acquire Panhandle 2, a 181.7 MW project adjacent to Panhandle 1. Panhandle 2 will reach commercial operation in the fourth quarter of this year. Together, the two wind power projects will total 400 MW in the Texas Panhandle region.