RE: NGP: CASE 2 Interesting thoughts.
I am not sure on your valuation ($160m) as the value isn't so much attributed to the plant but also to the infrastructure (i.e the various wells). I don't profess to be an expert on geothermal but isn't one of their other problems also the fact that the cooled liquid injected back into the ground is cooling the steam reservoirs and not allowing them to recover? Without adequate "steam" at a high temperature, the power generation will be diminished which will force NGP to buy the missing MW necessary to meet the production quotas? A power plant in the middle of nowhere that is unable to generate enough electricity is only worth the value of future cash streams generated. With the temperatures of their reservoirs dropping, future cash streams would follow suit.
I do feel for these guys and I remember when this stock was trading at $1.
Can anyone answer this question...why would they finance the plant at 14%? Was this their only source of capital?
I am back on SH but have forgotten my pw and email associated with it.