Clearway Energy to Sell Thermal Business to KKR for $1.9B

New Jersey-based clean energy firm Clearway Energy (CWEN) has signed an agreement to sell its thermal business to asset management company KKR & Co. (KKR) for $1.9 billion. Following the announcement, shares of Clearway Energy rose 0.8% in the early trading session on Monday.

Clearway Energy’s portfolio includes contracted renewable and conventional generation and thermal infrastructure assets.

Clearway Community Energy, the company’s thermal business, includes thermal infrastructure assets that provide chilled water and/or hot water, steam and electricity to government offices, hospitals, universities and businesses across the U.S.

The President and CEO of Clearway Energy, Christopher Sotos, said, “This divestiture will provide Clearway with an unprecedented degree of financial flexibility and will eliminate any need to issue new equity to fund our committed investments, while also providing capital to fund future growth objectives and further enhance shareholder value.”

The sale is expected to be completed in the first half of next year. (See Insiders’ Hot Stocks on TipRanks)

On October 5, Evercore ISI analyst Michael Lonegan upgraded the rating on the stock to Buy from Hold and raised the price target from $25 to $36 (12% upside potential).

In a research note to investors, the analyst said, “The company is a top-ten wind and solar operator in the U.S. that is backed by a strong sponsor in Global Infrastructure Partners.”

Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average Clearway Energy price target of $35 implies nearly 9% upside potential. Shares have gained 10.6% over the past year.

According to TipRanks’ Smart Score rating system, Clearway Energy scores a 9 out of 10, suggesting that the stock is likely to outperform market averages.

Download TipRanks App

Related News:
Alteryx Enhances Enterprise Analytics for Cloud Data with Lore IO Acquisition
Gentex Corporation Posts Poor Q3 Results; Shares Plunge 6.8%
What Does Crocs’ Newly Added Risk Factor Tell Investors?

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts