MILWAUKEE - WEC Energy Group (NYSE: NYSE:WEC) has reached an agreement to purchase a 90% ownership interest in the Delilah I Solar Energy Center, a 300-megawatt solar project situated roughly 140 miles northeast of Dallas, Texas. The project, developed by Invenergy, is expected to commence commercial operations by the end of June.
The Delilah I project will supply renewable energy to a global automaker under a long-term power purchase agreement. WEC Energy Group's investment for the majority stake is projected at $459 million.
According to Gale Klappa, executive chairman of WEC Energy Group, this acquisition is aligned with the company's commitment to investing in clean, reliable, and affordable energy, aiding a major automaker in achieving their clean energy objectives.
The Delilah I Solar Energy Center is a component of the larger Samson & Delilah solar portfolio, which is recognized as one of the largest solar facilities under construction in the United States. The company also owns a significant interest in Samson I, another phase of the same project.
This investment qualifies for production tax credits under the Inflation Reduction Act and is pending regulatory approvals. WEC Energy Group has a substantial portfolio of investments in renewable energy, including planned or existing stakes in 11 solar and wind projects, totaling over 2 gigawatts of capacity, all backed by long-term off-take agreements.
WEC Energy Group, headquartered in Milwaukee, is a top energy company providing services to approximately 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota through its principal utilities. The company's assets exceed $43 billion, with a workforce of around 7,000 employees.
The information in this article is based on a press release statement. The forward-looking statements included in the press release are subject to various risks and uncertainties, and actual results could differ materially from those projected.
InvestingPro Insights
As WEC Energy Group (NYSE: WEC) expands its footprint in the renewable energy sector with the acquisition of a significant stake in the Delilah I Solar Energy Center, investors may find the following real-time data and InvestingPro Tips valuable for assessing the company's financial health and investment potential.
InvestingPro Data indicates that WEC Energy Group currently has a Market Cap of $25.72 billion and a P/E Ratio of 19.38, reflecting investor confidence in the company's earnings potential. The company's commitment to renewable energy investments could play a role in sustaining this confidence. WEC's Gross Profit Margin for the last twelve months as of Q4 2023 stood at 40.56%, showcasing the company's ability to maintain profitability in its operations.
One of the InvestingPro Tips highlights that WEC has consistently raised its dividend for 20 consecutive years and has maintained dividend payments for 54 consecutive years, which could be particularly appealing to income-focused investors. Moreover, with a Dividend Yield of 4.1% as of the beginning of 2024, the company stands out as a potentially attractive option for those seeking steady income streams.
Investors should note that while 4 analysts have revised their earnings downwards for the upcoming period, the company has been profitable over the last twelve months, and analysts predict it will remain profitable this year. This suggests that despite the downward revisions, WEC Energy Group's overall financial outlook remains positive.
For those interested in exploring further, there are additional InvestingPro Tips available on the platform, which can be accessed at: https://www.investing.com/pro/WEC. To enhance your investing strategy with these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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