NextEra selling Marcus Hook gas facility to Starwood

NextEra Energy (NYSE: NEE) competitive power subsidiary NextEra Energy Resources, LLC has agreed to sell its Marcus Hook natural gas generating facilities in Pennsylvania to Starwood Energy Group Global, LLC, an energy infrastructure investment firm.

The total consideration to be paid is $760m, including estimated working capital at closing, NextEra said July 29.

The transaction includes the 790-MW combined-cycle Marcus Hook Energy Center and the 50-MW simple-cycle Marcus Hook 50 Energy Center. Both of these facilities are natural gas-fired plants located primarily in Marcus Hook, Pa. The parties applied July 29 with the Federal Energy Regulatory Commission for approval of this deal.

Upon closing, NextEra Energy Resources expects the sale to result in net proceeds of approximately $255m after repayment of the existing project related financing. The impact of the disposition of assets at the time of closing will be excluded from adjusted earnings.

The transaction is expected to close in the fourth quarter of 2016, pending the receipt of necessary regulatory approvals and satisfaction of other customary closing conditions.

Barclays is serving as financial advisor to NextEra Energy Resources, and Simpson Thacher & Bartlett is legal counsel. Morrison & Foerster LLP is serving as Starwood Energy’s legal counsel.

“This transaction is part of our ongoing strategy to further optimize our power generation assets, while recycling capital into our growing long-term contracted asset portfolio,” said Armando Pimentel, president and CEO of NextEra Energy Resources.

“We are pleased to have entered into this transaction. This is a quality asset with a strong operating history in a very attractive location,” added Himanshu Saxena, senior managing director and co-head, Starwood Energy Group.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.