Brookfield Renewable Partners L.P. (NYSE:BEP) is a key player in the evolution of the energy industry as a protagonist in the development of renewable energy resources. The stock has been consolidating in a wide range above the $30 per share area over the past year, but that consolidation follows a steep rally that took the stock up as much as 250% over the preceding 3-year period.
To make matters more interesting, the company recently announced the acquisition of clean power developer Urban Grid and its high-quality pipeline of projects comprising approximately 13,000 megawatts of utility-scale solar and 7,000 megawatts of energy storage capacity for $650 million. The addition of Urban Grid’s projects approximately triples Brookfield Renewable’s U.S. development pipeline to approximately 31,000 megawatts of capacity, making it one of the largest renewable developers in the country.
Brookfield Renewable Partners L.P. (NYSE:BEP) Brookfield Renewable Partners LP engages in owning a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China.
The company operates through following segments: Hydroelectric, Wind, Solar, Energy Transition, and Corporate. The Energy Transition segment distributes generation, pumped storage, cogeneration, and biomass.
As noted above, BEP just announced the acquisition of clean power developer Urban Grid and its high-quality pipeline of projects comprising approximately 13,000 megawatts of utility-scale solar and 7,000 megawatts of energy storage capacity for $650 million. The addition of Urban Grid’s projects approximately triples Brookfield Renewable’s U.S. development pipeline to approximately 31,000 megawatts of capacity, making it one of the largest renewable developers in the country.
According to the release, Urban Grid, which will continue under the Urban Grid brand name as an independent power producer (IPP), boasts a strong development platform and a robust pipeline of advanced-stage renewable projects across key markets in the U.S. including the mid-Atlantic, Midwest and Southeast. It has nearly 2,000 megawatts of under construction or ready-to-build solar projects, with an additional 4,000 megawatts of de-risked advanced stage buildout opportunities.
Founded in 2010, Urban Grid has established a reputation for expertise in taking utility-scale solar and energy storage projects through the full development process, from site acquisition through to interconnection, permitting, and commercialization. Working with Urban Grid’s team of dedicated professionals, Brookfield Renewable will leverage its deep operating and commercial capabilities to optimize the value of Urban Grid’s development pipeline.
“The joining together of our outstanding teams and adding Urban Grid’s high-quality pipeline of clean energy projects presents an exceptional opportunity for Brookfield Renewable to further establish itself as the leading renewable energy provider in the country,” said Mitch Davidson, Chief Executive Officer of Brookfield Renewable’s U.S. business. “Urban Grid’s team not only deepens our development capabilities, but it also provides strategic access to key U.S. markets, serving as the perfect catalyst to accelerate Brookfield Renewable’s growth.”
We’ve witnessed -2% piled on for shareholders of the listing during the trailing week. The situation may be worth watching. BEP is a stock with a past that has featured a litany of sudden rips to the upside. What’s more, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 99% over the long run average.
At this time, carrying a capital value in the market of 8.9B$, BEP has a significant war chest ($1.2B) of cash on the books, which is balanced by about $4B in total current liabilities. BEP is pulling in trailing 12-month revenues of $4.9B. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 4%. As more color becomes clear on the name, we will review the situation and update our take.