DNNGY - Eversource Energy to sell stake in offshore wind lease area for $625M

2023-05-25 16:52:35 ET

Eversource Energy ( NYSE: ES ) said Thursday it agreed to sell its 50% interest in a currently uncommitted wind development lease area of ~175K acres off the Massachusetts coast to Ørsted ( OTCPK:DNNGY ) for $625M in cash; Ørsted currently owns the other 50% share of the joint venture, including the uncommitted lease area.

The company also entered into a binding letter of intent with Ørsted ( OTCPK:DNNGY ) to use part of the proceeds from the lease area sale to provide tax equity for the South Fork Wind project through a new tax equity ownership interest.

Eversource ( ES ) said it expects Q2 2023 results will include a related non-recurring after-tax impairment charge of $220M-$280M.

Eversource ( ES ) also confirmed it is advancing the sale of its existing 50% interest in three contracted offshore wind projects jointly owned with Ørsted ( OTCPK:DNNGY ) - South Fork Wind, Revolution Wind, and Sunrise Wind - and it anticipates an announcement by the end of June.

The company reaffirmed guidance for full-year adjusted earnings of $4.25-$4.43/share, in line with $4.36 analyst consensus estimate, and long-term EPS growth rate of "solidly in the upper half" of 5%-7% from a FY 2022 base of $4.09/share.

More on Eversource Energy:

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• Analysis: Eversource: Concerned About Regulatory Environment
• Stock price return: Down 16% YTD, down 23% in the past 12 months

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