Corporate News Blog – Blackstone Announces Financial Closing of Tierra Mojada Project; Set to Assist Mexican Energy Revolution

LONDON, UK / ACCESSWIRE / June 27, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for The Blackstone Group L.P. (NYSE: BX), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=BX. Fisterra Energy, a company owned in majority by Blackstone Group announced on June 23, 2017, that it has achieved a financial closing for the Tierra Mojada combined-cycle gas turbine (CCGT) power plant in Guadalajara, Mexico. The 875-megawatt plant utilizes GE’s highly efficient H-class turbines and is a Greenfield CCGT power plant. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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The Announcement

Blackstone views this sale as a step to minimize the repercussions of reduced power tariffs in Mexico. According to the Company, the competitive wholesale power market in Mexico has incentivized new and efficient power generation, which ultimately reduces the price of power for consumers.

Tierra Mojada is a natural-gas fired plant that will sell exclusively into the new wholesale electricity market generated by Mexico’s energy reform. The majority of Tierra Mojada’s capacity will be sold under a long-term, 20-year Power Purchase Agreement with Comision Federal de Electricidad Calificados, which is the designated supplier of Mexico’s national utility.

The agreement was financed through with about $600 million of construction facilities and letters of credit provided by six different banks, where the project construction is expected to be complete by the end of 2019.

The Mexican Energy Reform

The Mexican Energy Reform started in 2013, in an attempt to reverse the country’s declining oil production, to increase the shares of renewables in the power sector, and to minimize the growth of carbon emissions. Mexico’s energy sector has viewed an upturn owing to the presence of Reforma Energetics. The reform stages a platform for minimal energy dominance of Petroleos Mexicanos in oil and gas and of the Comision Federal de Electricidad in the electricity sector, offering new dimensions for key industry players, investment, and technology.

As a result of the effort and the reform, the country’s total oil production is projected to surge around 2020, and then rise to 3.4 mb/D by 2040 from about 2.4 mb/D production in 2017. The increase in production can be credited to new offshore developments, deep water drilling, and steps to promote the nation as a major oil producer and exporter.

This power plant marks the third infrastructure project in Mexico and offers a stable economic growth in the years to come, according to the International Energy Agency. The Company views this agreement as a step to ensure lower prices and more reliability to the residents and businesses in the region.

Prior to the Announcement, on May 09, 2017, the Company agreed to sell its Ventika wind energy complex in Northern Mexico for about $375 million. IENova acquired 100% of Ventika I and II in Nuevo Leln state from Blackstone Energy Partners. IENova also assumed a debt of $477 million of long-term financing obtained by Ventika, which is noticeably the nation’s biggest wind complex with an installed capacity to generate 252 megawatts from 84 turbines.

Last Close Stock Review

At the closing bell, on Monday, June 26, 2017, Blackstone’s stock was slightly up 0.03%, ending the trading session at $33.15. A total volume of 2.90 million shares have exchanged hands. The Company’s stock price surged 12.03% in the last three months, 18.44% in the past six months, and 35.47% in the previous twelve months. Moreover, the stock rallied 22.64% since the start of the year. The stock is trading at a PE ratio of 16.44 and has a dividend yield of 10.50%. The stock currently has a market cap of $39.60 billion.

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