WEC Energy to acquire majority stake in Texas solar project

MILWAUKEE – WEC Energy Group (NYSE: WEC Energy Group) has reached an agreement to purchase a 90% ownership interest in the Delilah I Solar Center, a 300-MW solar project located approximately 140 miles northeast of Dallas, Texas at. The project, developed by Invenergy, is expected to begin commercial operations at the end of June.

The Delilah I project will provide renewable energy to a global automotive manufacturer under a long-term power purchase agreement. WEC Energy Group's majority stake investment is expected to be $459 million.

Gale Klappa, executive chairman of WEC Energy Group, said the acquisition is in line with the company's commitment to investing in clean, reliable and affordable energy and will help a major automaker achieve its clean energy goals.

The Delilah I Solar Center is part of the larger Samson & Delilah Solar Portfolio, which is considered one of the largest solar facilities being built in the United States. The company also has a significant interest in Samson I, another phase of the same project.

The investment qualifies for production tax credits under the Inflation Reduction Act and is pending regulatory approval. WEC Energy Group has a substantial portfolio in the renewable energy sector, including stakes in 11 planned or existing solar and wind projects with a total capacity of more than 2 GW, all of which are supported by long-term offtake agreements.

Headquartered in Milwaukee, WEC Energy Group is a premier energy company serving approximately 4.7 million customers through its primary utilities in Wisconsin, Illinois, Michigan and Minnesota. The company has assets of more than $43 billion and approximately 7,000 employees.

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The information in this article is based on press release statements. Forward-looking statements contained in press releases are subject to various risks and uncertainties, and actual results may differ materially from those projected.

Investment Professional Insights

As WEC Energy Group (NYSE: WEC) expands its footprint in renewable energy with the acquisition of a significant stake in Delilah I Solar Center, investors may find the following real-time data and InvestingPro tips valuable in assessing the company's financial health and investment potential.

InvestingPro Data shows that WEC Energy Group currently has a market capitalization of US$25.72 billion and a price-to-earnings ratio of 19.38, reflecting investors' confidence in the company's profit potential. The company's commitment to investing in renewable energy could play a role in maintaining that confidence. WEC's gross profit margin for the trailing 12 months ended 4Q23 was 40.56%, demonstrating the company's ability to maintain operating profitability.

One of InvestingPro Tips highlights that WEC has raised its dividend for 20 consecutive years and maintained dividend payments for 54 consecutive years, which is particularly attractive to income-focused investors. Additionally, with a dividend yield of 4.1% as of early 2024, the company is a potentially attractive option for those looking for a stable income stream.

Investors should note that the company has been profitable over the last 12 months, and analysts predict it will remain profitable this year, although 4 analysts have cut earnings for the period ahead. This suggests that WEC Energy Group's overall financial outlook remains positive despite the downward revision.

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For those interested in exploring further, there are additional InvestingPro tips available on the platform at: https://www.investing.com/pro/WEC.To enhance your investment strategy with these insights, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

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