BP's Tatics in Cape Vincent Ny

Thursday, July 25, 2013

BP Withdraws Wind Assets From Auction

In an unexpected about face, BP has canceled the auction of its interest in 16 North American wind farms, a 2,600 MW portfolio valued by some at $1.5 billion.  BP’s intent to spin off its wind assets was first announced in April of 2013.  The decision to divest was attributed to a number of reasons, including an attempt to raise cash to meet liabilities associated with the 2010 Macondo oil spill in the Gulf of Mexico, a refocusing of BP’s business on conventional power and perhaps as part of a strategy to reduce exposure to the US following the political backlash from the Macondo spill.  Three months later BP has canceled the sale.
The announcement of the asset sale seemed to be well timed and the proposed sale seemed to command a lot of attention from prospective buyers.  Low interest rates, high demand for assets with stable cash flows and a shortage of contracted wind power projects have created what is conventionally regarded as a seller’s market for operating assets.  Other independent power producers have exploited market conditions. Indeed, one week ago the market devoured NRG Energy’s $468 Million yieldco IPO, driving the target share price from $19--$21 per share up to an opening price of $27 per share. Continue reading....[JD Supra Law news]

5 comments:

Anonymous said...

Not good news for local leaseholders. They may hold what they have and abandon what they can't sell. The CVWF may be worthless at this point. An albatross.

Anonymous said...

It is over. Say good by. Call Marion and say " what about my money"???

Anonymous said...

Hey, 10:55, don't spoil their fun! The world looks better through their rose colored glasses.

Anonymous said...

I once had an old rust bucket I tried to sell for $200. I never got an offer, it just sat there devouring itself while I looked for a sucker. I finally towed it away to the junk pile. That experience provides a suggestion to BP and Cape Wind. Hey, Dudley just tow this 'development asset' off to the dung heap and say sayonara to Chandler and Trieste.

Anonymous said...

Yup!