US Geothermal distributes profits from Neal Hot Springs plant
U.S. Geothermal Inc. announces that Oregon USG Holdings LLC has made its first distribution of profits from the Neal Hot Springs project in Oregon. It distributed $4.6 million to U.S. Geothermal and $3.1 million to shareholder Enbridge.
U.S. Geothermal Inc. (NYSE MKT:HTM) (TSX:GTH) announced today that Oregon USG Holdings LLC has made its first distribution of profits from the Neal Hot Springs project. Oregon USG Holdings is owned 60% by U.S. Geothermal and 40% by a subsidiary of Enbridge Inc. Under the terms of the U.S. Department of Energy loan agreement, profits are distributed to the equity partners semi-annually (February and August) following Final Completion, which was achieved on August 1, 2013. U.S. Geothermal’s share of this first distribution is $4.6 million, out of a total distribution to the partners of $7.7 million, which represents profits generated from the project since initial operation began in November 2012.
“After years of effort by our team, we are now realizing significant cash flow from the Neal Hot Springs project,” said Dennis Gilles, Chief Executive Officer of U.S. Geothermal Inc. “And, while the amount of this first distribution represents profits generated over a longer time period than future anticipated semi-annual distributions, it is an important milestone, with the project operating both successfully and contributing predictable cash flow to the Company. This cash, in addition to the previously announced cash received with the resolution of the equity ownership percentage, places our company on a very solid footing to support our current growth activities.”
Source: Company release via Marketwatch/ Wall Street Journal