In a strategic move, Avangrid (NYSE:AGR), Inc. has agreed to sell its offshore lease and certain assets to Virginia Electric and Power Company, a subsidiary of Dominion Energy (NYSE:D), Inc., for approximately $158 million. Announced today, the transaction involves a 40,000-acre federal offshore lease known as OCS-A 0559.
The deal is expected to be finalized in the fourth quarter of 2024, subject to the fulfillment of standard closing conditions. These include the approval for the offshore lease assignment by the U.S. Bureau of Ocean Energy Management and the consent of the City of Virginia Beach.
Despite this sale, Avangrid will maintain ownership of a significant 83,443-acre federal offshore lease, OCS-A 0508, also referred to as Kitty Hawk South. Additionally, the rights to the "Kitty Hawk" name will remain with Avangrid.
The financial details of the agreement were signed off by Justin Lagasse, Senior Vice President – Chief Financial Officer and Controller of Avangrid, on the date of the report, reinforcing the company's commitment to this significant corporate adjustment. The information for this article is based on a press release statement.
In other recent news, Avangrid, a sustainable energy company, has secured full federal approval for its New England Wind 1 offshore project. This approval finalizes the permitting process for the 791-megawatt venture, which is set to begin construction in 2025. Avangrid also secured two green loan agreements totaling $1.2 billion for Eligible Green Projects. These recent developments align with the company's commitment to sustainable energy and transportation advancements.
Avangrid reported mixed Q1 results, with adjusted earnings per share of $0.88 surpassing analyst estimates but falling short on revenue expectations. The company has also seen leadership changes, with Avangrid Networks CEO Catherine Stempien announcing her resignation effective July 2024, with no successor named yet.
Avangrid has shown support for Array Technologies' new manufacturing facility in Albuquerque, New Mexico, following a $30 million contract with the company to supply solar trackers for the True North solar project in Texas. The company has also acquired a mobile transformer from Hitachi (OTC:HTHIY) Energy, designed to swiftly restore power at Avangrid's renewable energy sites across the United States. These are among the recent developments that continue to shape the trajectory of Avangrid's operations in the sustainable energy sector.
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