Ormat (ORA) 23 Feb 232022 Q4 Earnings call transcript

Good morning, everyone, and welcome to the Ormat Technologies' Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions].

I would now like to turn the conference over to Mr. Sam Cohen with Alpha IR. Please go ahead, sir.

operator. you, Thank today Ginzburg, call President Blachar, Executive Reporting. Chief Investor Hosting Financial are Officer; Assi and Planning Chief and Vice and Officer; Relations the ESG Doron Smadar of Lavi,

like beginning, contain Litigation defined and in looking, may relating projections to Before future statements These Act would remind information of that this forward-looking estimates, provided expectations, current Securities as events the Reform that XXXX. to about Private call during forecasts company's forward we future plans, those and results the and trends. forward-looking expectations management's certain operations; statements to materially projected generally future future objectives are of result current risks for relate from Actual a differ may estimates results and on as based uncertainties. and projections, or are

uncertainties, and please annual Form the risks such see Ormat factors XX-Q with described quarterly of discussion on that a report reports as Technologies' SEC. XX-K in Form and on filed risk are For

with measures in not last Because in prepared as website. posted the adjusted in reasons financial such company calculated release during GAAP. be and these management in should they issued is will on for the night in the slides the addition, financial to the statements was comparable not that measures press as non-GAAP directly forth well set Reconciliations most EBITDA. information present call, accordance GAAP In as the considered presenting GAAP, from such are measures isolation accordance with the

the over that's to company's be slide on the the presentation I accessed Before a may under presentation tab. investor remind relations found at call I call that ormat.com, link website the like this turn management, would to accompanying everyone on

call to Doron, I turn like said, to the now the call Doron over With yours. all of that Blachar. is would

And Sam. us Thank you everyone. joining good Thank today. for you, morning,

finish by our successfully operating which improving strong strategic portfolio with a our plan operational reflecting across expansion, growth XXXX marked top XXXX expanding segments. our in we all fourth quarter executed our performance. XX.X% line a was to The year and

segment Wister During including power hybrid Solar new CDX added our Tungsten of and Electricity portfolio, operating XX our geothermal to XXXX, our we X well megawatts and X plants as projects. solar as generating capacity Phase

In we XX PPAs, the our Also operating megawatts, storage. up megawatts we with to energy signed CAISO. purchase XXXX, in in storage agreements new power to in X-megawatt facility long-term improve for added geothermal for those covering of expected are both XXX addition, and facilities a agreements, segments. These new XXX PPAs economics megawatts

COVID-XX since have million demand we the a recovery, of start segment, the We Product the quarterly our experienced pandemic. a significant now products. our geothermal revenue growing In the $XXX.X for global delivering highest demonstrating backlog,

that toward our in XXXX, resulted expect of operation segment second portfolio plants new to half strategy, in which started power our we we As Electricity geothermal the expansion in has XXXX. benefit solar and look from

We of XX to is of segment storage XXX megawatt segment. the also are megawatts expect bring in which megawatts new in and capacity Electricity online, XXX the

operations. results, For during added improvements an On capacity add expected the at as $XXX which midpoint over seen and in by million new XXXX an the that to are is EBITDA. of Olkaria expect as years XXXX XXXX to Puna increase deliver XXXX, in partial growth the in million well $XX million million to additional $XX actual we adjusted $XXX add expected to assets EBITDA highest in approximately will added is supported XX% XXXX. between plan have potential to EBITDA, XXXX be annualized new of versus and we capacity we the This growth of basis, the between the in adjusted

the for ITC globally for benefits, for storage. supported geothermal energy tailwinds Inflation renewable Act by strong and PTC see Reduction including to continue We the

and boost benefits We reduce these coming capital needs year. will EPS the our expect our in

for growth We demand capacity significant fossil expansion experiencing and Electricity with driven supports and are to on our decarbonization end fuel remain global and geothermal efforts. EBITDA the segments, net with the top we storage prices income both track line energy addition, volatile and by further in the expansion. the XXXX, the XXX storage plans of potential which megawatts add by approximately In

provide on I Now our results. plans, operations call before the and will I to financial over review further to Assi updates turn the

Assi?

Thank you, Doron.

highlights XXXX million, overall for start our the of XX.X% my me The fourth excellent year-over-year. up to Total strong And million, an operating segments. all was year X.X% growth across review fourth for year-over-year, quarter reflecting X. in of Let X financial up finish was our $XXX.X on a marked XXXX. revenue quarter $XXX.X Slide revenue

each adjusted EBITDA EBITDA full X.X% of the segments. the fourth X in increased X.X% operating million revenue million of XXXX. increased to results of Across EBITDA year in in compared quarter in of adjusted was last Fourth million million $XXX the our Year-over-year, XXXX, $XXX.X the to increase increase adjusted $XXX.X an driven quarter compared year. by in $XXX.X our largely

expenses reduced in G&A due to legal were addition, costs. lower lower, In XXXX

In the same period diluted an share. the by versus the represents per increase increase the was year, respectively. X.X% year-over-year basis, The last to and share, last company's net On our stockholder $XX.X to net versus income lower driven full tax attributable assets respectively. This shareholders or or the of of was X% an $XX.X performance million period of was XXXX, rate. $X.XX diluted year, income and same attributable growth effective million per better earning $X.XX X.X% an year X.X% adjusted company and

net million share XX.X%. or The stockholders year. In year. were negatively of income in the the adjusted to or the per the -- share same diluted per And in power On share net diluted an million the income up stockholders last million related $XX.X after-tax by fourth EPS was $XX.X period noncash with diluted basis, net was write-off stockholder versus to diluted last share, per attributable same attributable to adjusted net XXXX, XX% Brawley attributable per to income $X.XX to $XX diluted the earning plant. the company income and period an an impacted quarter was company or $X.XX of adjusted comparison share, our $X.XX up

to the attributable income can adjusted continuous capacity The plant. or at well been XX lower generating historically megawatt, was has the plant believe plant stockholder electricity field issues. Brawley economically we the and for mainly adjusted generating power the lower write-off of costs at electricity has The than current due to lower-than-expected company's in revenue. that Brawley megawatt its Brawley X megawatts capacity. power higher-than-expected X than asset's of operating This resulted net levels We operate the

solar to the geothermal plans facility from utilizing adjacent additional will Brawley plus storage addition, existing get through In we add value our at project, the the interconnection assets to complex.

X.X% respectively. X. Moving the to to to in XXXX, break revenue at -- fourth segment-level We the and $XXX.X -- Puna year-end Slide Electricity million in year-end $XXX.X quarter down level. due X.X% higher and the million revenue segment to increased the

Heber XXXX. partially expect plant, of XXXX. start offset Revenue in and April our complete This facility increase X we Tungsten the and plant power driven commercial the start power was and XXXX, was in for plants Puna the shutdown in that X at operation we segment the due by Beowawe of generation growth CDX July revenue year, in at by of which including during acquired to July of increased of the operation higher QX to ongoing for the Dixie Mountain our electricity full XXXX rates repower commercial the

Zealand, due the and segment in full increased million our Nicaragua. In year our $XX.X primarily The revenue signed XX%, in recognition of to XX%, and was and Product quarter, fourth revenue segment, Product newly $XX.X respectively. million driven Indonesia XXXX from New of the in in the contracts growth

Energy Revenue as the million PJM. quarter as year -- growth by segment in higher fourth XXXX and X.X% well rates revenue in million XXXX $X.X the respectively. Storage full in driven at to and to quarter, the increased was $XX by XX.X% primarily in

the for to in XXXX. million compared received and in The Puna basis Slide and related XXX points, $XX quarter, decrease to was by The our XX.X% $X.X XX.X% X. insurance was fourth XXXX Moving driven operation XXXX XX in in million Electricity segment proceeds gross to and down respectively. margin

XX.X% in gross margin fourth the due contracts. quarter, points, signed to in margin on basis generated Product overall XXXX better XX.X% a In the XXX up and the and segment, X,XXX newly quarter respectively. significantly was increased basis points fourth and Margin

of normalization of by the segment, Texas Storage winter we in XXXX compared to of full Energy a driven occur quarter was fourth XX.X% reduction Hill XXXX. XXXX the not did XX.X%. In revenue Rabbit year margin compared XX% XX% at in XXXX, gross The high mainly in XXXX. storm which to was -- to margin due event, The

total of in The $XX.X and EBITDA. an the slide. generated in The X. Slide adjusted total million, the Energy segment EBITDA at adjusted appendix Looking are reported Electricity Product XX% provided consolidated of of of Reconciliation EBITDA XXXX. almost EBITDA generated representing X%. X% And Ormat Storage EBITDA segment adjusted

X. Looking at Slide

down Our approximately approximately ability shareholders. the while reinvest million net for billion. the cash illustrating equivalents XXXX, December of December Cash XX, compared months, equivalents to obligation and use capital was debt The break returning to its of and cash slide as business the cash XXXX. restricted end $XXX our cash $X.X to as and in the of $XXX was Ormat's XXXX, of XX million XX, in and serve debtor

at interest which of fixed XX, We appendix. average of rising represented competitively important global approximately of nature, note XXXX, debt The schedule the think X%. in that in the company costs. believe is debt remains continue stands will it And all we cost debt net to total its was as our financing deferred nearly positioning is Our Ormat billion, $X December Slide of liability payment XX, environment. on a rate of in help

Moving to XX. Slide

million approximately liquidity. have $XXX We of total

XX, approximately to Storage In detailed expected in mainly appendix. capital our assets project approximately million hour for planning storage is XX $XXX invest in XXX million Our development in Slide capital Energy is the compared assets, XXXX are expenditures, largest in for related the megawatt The increase million Bottleneck as the to $XXX storage to in segment. we approximately XXXX, under the $XX megawatt, total XXXX.

very as liquidity with and positioned as we well plan the strategic to to additional resource our execute IRA ample Overall, capital well Ormat a expect from growth cash receive capital is to benefit. perspective access from excellent

supporting each X U.S. be benefit. will between entitled operation in the funding the reach years XX% new of next that the that to in to XX% expect IRA We project will by commercial

of and Directors per approved as of Board stock our X, outstanding declared, holders of $X.XX dividend XXXX, XXXX, the company's XX, XX, shares share March payment to and a all quarterly authorized of a on March February On common XXXX. payable of issued

addition, quarterly in per expect each X to of share we dividend $X.XX the quarters. of next pay In a

to developments. recent some our overview. over Doron to would of my concludes discuss the turn call now That financial like I to

Assi. you, Thank

generation Phase Tungsten X facilities look to was well at Wister Heber shutdown growth for to at XX in positively Puna. Solar; XXXX partially Generating lower and offset Turning the supported as and at fire Slide CDX, capacity our portfolio. operating inclusion early by source. of the higher a the our as due was lower OREG heat availability The by at X generation following by of

megawatts see, X,XXX offset power by to We solar segment plants, megawatts megawatts As which well to capacity generating to adjustment geothermal in the XX new in updated our the changes reflecting the field added you generating slightly and Electricity XXXX. can performance. was in compared of capacity X,XXX will

global operated XX, and in at higher elevated Slide as received megawatts. the at XX our plant prices. quarter, a plant we Puna power the rates on noted XX XXXX, a oil between the level In energy result geothermal As of fourth

to amendments new megawatts. XX negotiating complex plans HELCO allow PPA continue would Puna signed a that with total currently our and of repower are to fixed-price its to the capacity to with the us we We increase

of generation its power the At well in is plant fields power generating our lower that of limited Olkaria megawatts. currently performance Kenya, plant XXX the the

a We are year. capacity performing the expect and increase to drilling currently during its campaign

respect to X. Heber With

due is in capacity. experiencing outage to And a XX fire As you early 'XX. than of at Heber X half it's know, partial operating megawatts, its less a

fire claim the interruption have all damages decided to not claim. property event, the business We insurance to we settled And power related rebuild and including plant. Heber the

through complex XXXX. of expected a completed second We project, quarter to which are is in the currently repowering Heber optimizing the be

XX. Slide to Turning

and which Our product in we raw of we million increases, margins. and which Ijen result a in million backlog pickup cost stands pricing slowdown equity is and includes power minority in the the at improving. Indonesia a The in recently hold should backlog higher material position demand plant see XX%. $XX And contract for $XXX signed better in drive

on Slide to our higher Moving update segment an strong quarter, at XX PJM. delivered Energy segment. Storage for supported another The rates by

as XXXX at rates the not that as remain energy Our XXXX storage level. revenue segment guidance PJM assume for elevated will

I of Nevada, capital Before for even U.S. decision to segment amount Both We will that economics the and of high-capacity Nevada the which for employ continued importance growth intermittent enabled improved drivers CPUC in in at to please than geothermal X energy. massive in geothermal both new XX This will of our the adapt California reduce the in move The Electricity in as the the economics. sign PPAs zero-emission recognition the in during new the to discuss our long-term and portfolio an known needs our geothermal source. into energy turn power, to California a improve the Ormat see Slide recognize a XXXX resulted growth, acceleration development to us and in translate storage anticipated. main demand long-term and further the increase U.S. for and discuss

discussed signed at our economics develop due impact capital assets in had to geothermal storage Also, the was and which XXXX, August significant a U.S. needs. the XX, ability to positive IRA, as previously, on on lower higher

of We capital the new geothermal claim transactions, over can tax continue to new equity enter XX% needs fund our which are and new PTC for power planning geothermal into plants plants. to our for

XX% value new we'll third potentially time, between of to enabling benefit. claim for higher the capture tax to have to to them us the ability first storage the and our For parties, sell XX% assets, ITC

and We the the tax our expect for will full our reduce years. that EPS ITC storage expense coming boost

enable This to the significantly expect we of cash cash our receive capital to benefits. XXXX, ITC approximately in and In us overall source $XXX reduce needs. to million related PTC

Moving XX Slides to XX. and

was some growth delays of geothermal projects robust permitting a PV we buildup from XXXX hybrid communicated, processes. and plan This mainly development. significant comprised As supports have year mainly Solar the in our despite buildup

grid. This new of assets and the in for electricity online generation on growth In for chain we our bring megawatts well end energy X.X XXX XXXX, expect the these hour operation of and plan some of We these XXX to capacity. adding delays between the remain XXXX headwinds, over in facilities. delays and track limited reach to and by end to our our Despite gigawatts new supply of of as process storage caused portfolio raw X materials XXX XXXX. dates between with portfolio and to increase the expect to by by X approximately total longer-than-expected XXX impacted our assets commercial accessibility XXXX, gigawatt megawatts as connecting was

Slides XX Solar XX and the and display the hybrid geothermal PV projects currently underway.

Dixie the with and the as operation half the Heber half first Zunil of XXXX; of track on are commercial as which We year. North Valley, we of all second of bring the well Valley, to in expect during X online

Moving to Slides XX and XX.

demonstrates growth of storage plan construction. segment. comes from Energy energy have that facilities the The our the XX Slide started third Storage layer

which to and XXX in will XXXX. megawatts, XXX are megawatt We of which additional by hours, add have XXX storage hours under X projects XXXX; that portfolio end the development XXX an is our megawatts, megawatt

turn our XX discussion guidance. Slide for XXXX to Please of a

to XX% midpoint million the to year-over-year million, between the by $XXX and XXXX. revenues compared of X% million, $XXX with $XXX increase $XXX between increase be million total an expect and and to segment's Electricity at We revenues

We expect million an between $XX Storage expected and revenues are $XXX $XX in Product to million. XX% increase segment, between million the Energy and approximately million. revenues be with And $XXX

by experienced the the and approximately be years, in increase million. to midpoint, EBITDA adjusted to million expect few growth between and we highest $XXX have We XX% last $XXX at the

adjusted approximately We to to attributable $XX expect be interests annual million. EBITDA minority

to and $XX as new the well partial of XXXX $XX basis, million potential Olkaria versus XXXX that in add added in expected between adjusted annualized are be will an million to operations. EBITDA additional Puna assets the On improvements as

our prepared Slide I remarks will XX. strong and momentum, against with a long-term significant end demonstrated our This goals. operating on continued financial was quarter, by progress

Looking our significant of expect progress represent ahead our XXX a and capacity we which at towards over XXXX, gigawatts to end combined new XXXX. to the X.X segments, megawatts of by both storage Electricity target add

reduce will the IRA. the needs discussed XXXX. And from capacity As earlier, our benefits new in benefit capital will

in prices the structure, are beyond. and XXXX Ormat market, and result cost and PPA the combined success; our in We assets our seeing position we that tailwinds our will with advantages, strategy, in meaningful shareholder and strongly believe increased regulatory value the for

our prepared concludes This remarks.

please. the to Now call for I'd like open questions. Operator,

[Operator question from Instructions]. take morning Oppenheimer. this first our We'll Kaye Noah of

start Maybe the of the XXXX, at we tax PTC could compare IRA. commenced you're Can Obviously the had you matter, And reduction assume we as there pre-IRA? of beginning benefits? geothermal met construction, that those I $XXX from but with that the million benefits be just benefit million flowing cash so to and $XXX expecting how can P&L lapsed already then expense, much some color -- cash really projects from Any had tax treated post-IRA? housekeeping tax incremental that modeling is income sales through helpful. should statements be the provide a you on how in flow we would

you are that's There impact have geothermal. on to going us. to we the the transactions And had, elements rightfully equity as in also tax the say, IRA will we done past, I say, few a

We $XXX plan the transaction to U.S. expect in the do million XXXX tax X approximately equity from we $XXX new in that come to of million

of for combined them Heber be One the operations. will

be XX.X%. -- you remember X amount the that, say to X you is from by will Hebers. combine up when that will I PTC is because, look if it, you XX% probably it the before So lower ITC that, as XX%

probably to of that $XXX $XXX closer somewhere million. number instead have million, would been So

of the piece to year, will up third be as through tax income as we part showing equity be other The income. to sell, will party. those either And the will be PTCs able or that other

project. which item. These ITCs are should through the to storage line piece, flow around the million, $XX a related new tax And last is

the you large we Now it, to have addition and spending XXXX Montague in which project. when the much around bigger a in another see $XXX look million CapEx part in which and coming ITC look we're that of $XXX is the will COD as is at million XXXX in amount we because, project, we you see XXXX, from Bottleneck

so So share, tax the project. line receive XXXX, we a flow the of see because to will project a earning anywhere should on form XX% in through will XX% those per of item, in return. tax And from especially and in boost those Bottleneck the Montague we

that maybe funding on math And just the just CapEx. for 'XX mix on help with follow up Assi. helpful, simple Very to us expected to

$XXX benefit from additional project pencil need the million would you and this Maybe assume debt got project cash You've through We to plus projects. on out would raise that operations. talk you where debt. new expect to

the you the next the debt, year equity based rightfully say, be and Right requirement around on So debt project last a quote other so as form financing. funding include now, that that debt. will fully the transaction That's in will got. This best long-term maybe project -- debt will our we fall X% estimate, tax of secured.

bank at the depends to mood point. XX will look format, anywhere from the I on the of It we X-plus, market date. you XX debt and say, are the If in basis

if I Puna Okay, could and some improvements some rollover the with one including on guide sneak at one just benefits. 'XX, last in, Olkaria for

And to in on what's do what you get they incremental you those targets? Just rough improvement the capacity think capacity when timing those expect reach projects? for

Noah, Doron. it's

connecting items. that And campaign. Puna, we are the for the important In finished oil process production wells So of additional thank question. injection part an X drilling, are and finished rigs. we the we our These of you in

in following another to the second drill connect we see And year. the going to plan over impacting beginning -- of benefits to the expect and QX we increase forward. starting toward half there; we well an them somewhere additional QX, see expect that, the to of and We toward another,

impact QX So and toward we the another a larger do half. one expect starting second then

campaign Olkaria, We And that fields, we so timing bit well longer connect that an we drilling expect as do mainly actually, to plan -- there. second are these And happen the drill wells places, one expect to year. in we increase very a the well over finished increase we we of capacity middle that expect Olkaria, over so to other each see in the are a do well we days other over of the to connect there. drill half there. in takes than deep. gradual the The the in -- we see we increase to in

next at to Justin go now Clare MKM. ROTH We'll

here, first such energy And will guidance And bonus before million million then to wanted $XXX -- I figure I see on you within if XXXX. community ask off treasury possible? be? to that So just $XXX getting expected that in is you benefit in need also tax any there the tax Are the exactly for is can do as guess, credit assumptions out fully not, the credit what adder? adders

adder include we that not For our buy are almost, a when of the assets that the those for batteries there order storage XXXX, And to and for is between these With in U.S. any anywhere qualify XX% to not to areas. why to are mentioned. cases, being you get XXXX numbers do XX%. also XX% because potential in said, the that's try these to that And are on in we some we we in storage. at expect options look looking XXXX, in

that mentioned we the right there take rightfully geothermal. not in the so, to actual PTC. now we On is we you [indiscernible] basic see being With of assuming $XX.X of if XX% as equipment the number U.S. guidance geothermal, looking because that said, similar at can the higher are are available

able is will U.S. is manufacturing? question is U.S. in the claim local the So the drilling construction Because we in be to the The

the things Xx So say for mean base. base I are the are will for we $X.XX, forward, the still for when air, XXXX -- base that's claiming and we The are we course but that the are in is a up the going example. the of waiting the question guidance. still the, in base, Many but guidance ask I

Xx are We claiming getting base. $XX.X we're the because

it. Got

you due of you just days? in in have could the to might need? terms chain some the batteries. but what And there if could seeing us vehicles, This chain? demand on heard update is And the helpful. are then supply improving supply that to terms for any availability part all more electric freely on the Do just batteries you be that in really pull be of these you're flowing that's we've projects forward batteries softening potential Okay. for storage,

Yes. Thank you.

the say different will presentation, project the I in batteries -- X that all listed have projects So we the them vendors. from secured of

So on issues the mainly things like issue them, chain supply delivery is and that.

seen can a last have We between have that in it's looking price, market market. to the EV the that of and have battery batteries said, we X I reduction projects the say we the due you've that of And at a mainly right what couple prices, weeks in a batteries. a in the small timing. once price X a for question reduction, weakening follows which of to bit are

the the We will end these XXXX forward. generation able are gigawatt of at release over be hour for the our going And targets to X for them plans part storage. of and

have we in projects So the storage.

are very a is interconnection projects. think the in have be hopefully, and permitting the and release block we that are to the is little the We're the We able we battery, to control. once bit. site batteries, I very, a And market softening we'll last secure happy And able advanced process. the

Great, one okay. more. And just maybe then

in you back that XX%? level get margin could revenues suggests is of in a above segment margins? that gross Product to to revenue, be or that assumed could And little a your million guidance, the quarterly level that $XX maybe XX% for guidance for XXXX. of that of kind bit range Your At

at And impact we margin. very So XXXX no and had QX there that good with already we margins that signed XXXX in are the is contract one being doubt a improved that will better. are an the

sub the around in chain to be be will can sub-XX%, XX%. be being, still the a XX% say, still to so XX%, I will our little XXXX, think the better, but always, between supply that this going somewhere going to an at point, it's it guidance, think we're like that maybe are issue We in might for we numbers. XX%. say, I sure bit making somewhere We are meet We

now Jeff next Cowen and Company. to go with We'll Osborne

my could project. couple A if on wondering update I was the ones on Bottleneck quick we of an side. get

third end think to I end talked happened. give of you the approval the the I the in that where 'XX, year. don't an so in QX presentation that then the think us you that getting investor can of of about quarter update by 'XX moved And I call on noticed CPUC versus is? had

Thanks. It's, at Yes. of Bottleneck CPUC, the the approval we got January. beginning

the by the is CPUC fully contract running So on we're it. approved and

QX to grid but mainly between you you slow-up to potential finish mainly batteries revenue. until can the of it's actually Moving QX of generate the construction issues 'XX, -- of supply when connection the 'XX it and process takes from you

in might we XXXX, finish construction then connection So expect into the do but to itself take us XXXX.

tax Ormat Is rate have you number on and handy? Noah's taxes that and a What Got for assume in should 'XX? the it. That's following we question helpful. X other just ITC. up around quick ones 'XX

I When benefits because definitely tax we say expect rate much you that look ICC at will lower us. should will there impact be XXXX, large a extremely

is For our tax around less XX% XX%, say at rate can I that. XXXX, maybe than will assume, assume can normal -- if you you

X.X%... take XX%. So Or off

No, no -- somewhere XX%. between XX% to

was on then Or resource. there it. XX% XX, salinity think, And I had I to okay, years? XX to is the else missed Brawley originally that, to XX%, last a got XXXX, that to the I might going one back had but XX-megawatt like just facility. X. now have the that that Is and site has for going it's is sand and issues Then on something that, went it and all there? due then North

the issues. on same It's No, there. nothing new mainly going

that, in technologies can the what that in we I Brawley order it. to But points how facility We've actually solve this it you once storage build years, the North generating various has higher think a will invest with utilized say idea be do finalized, bring there we take the capacity, discussions to are to and on the a has. at And interconnection benefit the be larger interconnection project. would that it. Over of is but the advanced geothermal. don't we that to we into update in is we Brawley that different time, a had by the facility structures stage, will on different back CCA in not this -- to North through and, And going exactly

from next America. our Dumoulin-Smith of Julien now take of Bank We question

Listen.

have there is of about a impacts a can issues. exactly some going elaborate issues shift 'XX think moving way been you a with specific if will, in mean, into Heber obviously to more the kind some of little on totality, looking respect described each to it that of But of some contemplated up, to earlier, of operational as the of you this rate made that good much had value ask, run it's don't how the a 'XX, about we're know in assets, here, a but if fair previously of kind be bit? the is think there or I you some across way to whether in I discrete the geothermal issues terms? at Just in in question maybe EBITDA you of 'XX? Brawley, in totality, to

questions. Julien, great

CODs year. Olkaria look And assets' decided take in you from on to of XXXX. say, now track this will storage XXXX Puna, the drilling year perform moved during closer at know, segment campaigns in also our look to as to So a many I we which and very, the

you like million $XX North base the rate additional which -- So the these should following run rate to mentioned is geothermal, year. on a million of rightfully items, so and $XX Heber addition Valley in the EBITDA in to X on

on and would if everything, gone been things right. XXXX So everything right have you're have time, in would

of will say EBITDA XXXX higher, almost long-term we but in, million, of are coming for and XXXX, put will we can, make $XX add been including those it record we guidance million a it million seeing will at us, also pickup we or that $XX marathon $XX And not we January it $XX probably EBITDA the all early for with for which in want are look when company that us right, And I a runners. million growth. assets. we geothermal so have want to growth operation from we to will a XXXX, if at as April, difference. storage assets of line as Our on it -- in does top assets something in would start

think maybe in you I but XXXX think a over bit we value we gave the I of good last So needed, $XX lot what that guidance company. of for say, done for are million X what years. when on little And very this, top to $XX that patience numbers is I million will have the more combine a there's there's

in... this I if that, a clarify line time question. projects the i.e., service you're to in just here $XX incremental And just hopefully, sorry is contemplated just fair shift million 'XX, $XX can. right? versus in for And is were it's to That million announcing Indeed. in previously that that

look annual at Yes. contribute that online base supposed when XXXX, add of mostly million additional It's start in of you they adjusted million on will They to amount it, start assets were will to XXXX. in XXXX, of $XX XXXX. an $XX some EBITDA. operation on They end will in top but

reaching the your really of resolved Right. It's through operational well as assets in 'XX the the as some year the here. for issues fully catch-up of of getting some

Yes.

Exactly.

then talk continue here months little couple a run the you expectations in on the this of about the is adding largely years Can pretty much. to about obviously mean next to super belabor too new impressive just you will? I Or think been year. here incredible that recovery Obviously if on that consumed It's rate, this developments Sorry. this adding seemingly trajectory Product And bit looking you and re-acceleration, to quick: momentum? to over more pretty How do backlog to side, backlog? a few contemplated the and don't backlog last be 'XX.

Julien. -- We thanks,

as we So on only backlog, the we not globally. change but in said, Product in U.S. the see a demand the

very wake backlog It's something definitely better today there say we huge. will be multiple expect indications competing not of expect our are we the is is do little the very, the the that a opportunities assuming on win there New is that We in and them, to but up might you we potential And again. potential backlog customers And from measure quarter, the by to continue. Turkey largest do some that backlog some increase. expect seen the time that we our in part big, which economy we've of Turkey, today, to Zealand, hope we would so can Turkey, but a projects it bit big over

-- Okay, but then excellent. here. level And maybe that, related the product to

we're Just as run accelerate. to in new further rate? articulate you acceleration it, , that terms you're of to to continue Or year, this new level it possible, think being like not sounds going we're It a that but that ready call see you've got yet. going do for to is this

answer the I question. than better you couldn't

All right, leave We'll it enough. there. fair

next Ryan Citi. go We Levine Instructions]. [Operator now at to

I'm power exposure. start hoping off to market with the

quantify markets. of your materiality on forwards some to the and that go-forward to other duration the you change movement You PJM outlook? hedging And the are highlighted of in 'XX any you your Can looking basis? of a profiles some

Thanks.

I'll market. are have have that contracts agreement, from have the we'll any with we hedging are XXXX, tolling merchant, contracts. we start hedging we RA but we today And doing not -- -- are storage the Bottleneck In On our within in with contracts any a the of not California. most apart

that's playing market. in they very, merchant $XX. are in were natural above to $XX, gas demand. prices are They quite $XX, so so a PJM lot but of pricing, the Today, merchant is prices range high. gas the are market, up, going weather it's depends the the very PJM related a again PJM pricing the go big the -- it will up. of if were in lot gas the natural price and so XXXX PJM, a decline in We a

merchant a this So is play.

let me thing. Ryan, one add

in PJM. now We revenue million a what $X be in Coast expect XX higher XXXX, East in see pickup $X have prices will If we a in million. to we roughly storage to we megawatt towards saw operation the the by in

And will see another $XX, $X million roughly prices started to pickup the weekend, million And $XX, back So consideration example. very $X million. prices one we that into I in we will then say slightly fact generated that this should over then revenue. thing December $X already is of there very lower. if for slow, a we volatile. be to are the taking are

good there. of like believe over return still we So that in And megawatt at assets overall, very these we even we per our areas. to be have investments on our $XX, some $XX a

with pieces and And great. $XXX your moving in policy from million Okay, time then power the that are federal of could thinking policy incremental with of of some implementation your lines be reevaluated movements terms in dividend offsets basis? on of the capital and policy go-forward And dividend something light of that you curves. gets some pieces? How a of moving about in these these

quarter Board when policy the So year is work and we plan. dividend reevaluated and do every every management between our the the

in assets a as view as invest assets of increase discussed, capital such the and big geothermal the much We business. globally is and the and demand there in in can storage However, growing U.S. and that large go is we dividend. to for to as see the not the we the company upside

many, many where putting in for We many have that the is increase many, XXXX we're for years. highest EBITDA highest in the a XX% growth this which is had And focus years, on. EBITDA, in we

then And question for last Okay. me.

there per-megawatt any on given you terms the costs some CapEx seeing are basis, In a movement evolving? components of outlook of the

did raw bit. year costs, prices drilling oil up Drilling or years the in for X basically, due -- the and industry. Over did the last went boom a up, so, to go materials costs

went little bit high. more. pricing going down are they very a Now Shipment

so reality all and think -- actually this that balances. all we vertically do integrated are is Now a is company since they the everything are in that, I going we And down, costs required go the we up facility or the are area. by is down facility, build but same manage it's general to to a might able between And these. to build X%, in

questions for comments. have things Mr. Blachar, it appears any no gentlemen, I'll Thank further to you back closing hand you. morning. this we And

you. invest very them. the on thank plan Okay, strong more confident EBITDA, to XXXX us. joining at and we'll for give that our I'm you, you that, year. EBITDA; and increase making and Thank passes, a portfolio. to adjusted XX% And the we're everyone, a have XXXX continuing looking able year with growth as insight build revenue and And we was more be and in

much. very you thank So

And gentlemen, Technologies' and ladies Ormat joining fourth for great and earnings like year a will conclude Good much I us day. to all you Thank all and wish you. full Again, quarter bye. you XXXX that thank call. so