Truth to Power - Episode 12

On this week’s episode of #TruthtoPower, IntelStor's Founder & CEO, Philip Totaro deconstructs the recent #renewableenergy asset sales offerings by bp and EDF, including the profitability of those asset portfolios and what they offer to an acquirer.

BP sold off their onshore wind energy asset portfolio to LS Power in the USA. Since 2008, the projects have generated more than $5.5 billion in revenue, including just over $1 billion in Production Tax Credit revenue. All assets have broken even already except Fowler Ridge Phase 2.

The real attraction for LS Power is the net profit to the planned end of asset life, which totals more than $2.6 billion, or just over $1.4 million per installed megawatt.

EDF will offer up their asset portfolio throughout the Americas, hoping to raise at least 2 billion Euros. They have generated $3.3 billion in total revenue including just under $600 million in PTC revenue for the US based assets. 92% of the portfolio revenue is in the USA with the rest in Canada and Brazil.

The portfolio will generate a total net profit to the planned end of asset life of more than $2.6 billion, or over $1.8 million per installed megawatt. Given many of these factors, their 2 billion Euro asking price seems quite fairly valued for investors, according to #IntelStor analysis.

Have a listen today, and get in touch with your best questions about BP, EDF, or any other asset owner around the world.

This show examines data driven insights for the energy sector, with a focus on renewables. To subscribe to IntelStor Research Notes and get early access to our latest content as well as these Truth to Power weekly editorials, visit https://lnkd.in/grfixJn