DULUTH, Minn. - ALLETE Clean Energy, part of ALLETE Inc. (NYSE:ALE), has finalized the sale of the Whitetail wind project to energy company Invenergy, it was announced today. The Whitetail project, located in southwestern Wisconsin, is expected to be constructed by Invenergy and then sold to a consortium of utilities including We Energies, Wisconsin Public Service Corp. (WPS), and Madison Gas and Electric Co. (MGE).
The Whitetail wind project, which ALLETE Clean Energy acquired in 2021, spans approximately 5,938 acres in Grant County's Clifton and Wingville townships. Designed to house up to 21 turbines, the project will have an estimated capacity of 70 megawatts, sufficient to power tens of thousands of homes upon completion.
Nicole Johnson, President of ALLETE Clean Energy and Vice President of ALLETE, emphasized the project's role in delivering cost-effective clean energy and contributing to a sustainable Midwest energy grid. Invenergy will take over the development and construction of the Whitetail project and will also provide operations and maintenance services throughout its operational lifespan.
This transaction follows ALLETE Clean Energy's sale of the adjacent Red Barn wind project to WPS and MGE in 2023. ALLETE Clean Energy is active in acquiring, developing, and operating renewable energy projects, currently owning and operating over 1,200 megawatts of wind energy generation across seven states.
ALLETE Inc., headquartered in Duluth, Minnesota, has a diversified portfolio within the energy sector, including electric utilities Minnesota Power and Superior Water, Light and Power of Wisconsin. It also has interests in BNI Energy and New Energy Equity, as well as an 8% stake in the American Transmission Co.
The sale of the Whitetail wind project is part of ALLETE Clean Energy's broader strategy to support carbon-reduction initiatives through the development and transfer of renewable energy assets. This information is based on a press release statement.
In other recent news, ALLETE, Inc., a Minnesota-based energy company, has maintained its quarterly dividend at 70.5 cents per share, translating to an annualized payout of $2.82 per share. This consistent dividend payout is a testament to the company's financial strategy and its commitment to providing predictable returns to its investors. In addition to this, ALLETE has been acquired by an investment partnership led by the Canada Pension Plan Investment Board and Global Infrastructure Partners in a transaction valued at $6.2 billion. The acquisition, which includes a cash payment of $67 for each outstanding common share, is expected to be finalized by mid-2025.
ALLETE's current management will continue to lead the company, and its headquarters will remain in Duluth, Minnesota. The company's "Sustainability-in-Action" strategy, focusing on renewable energy sources and carbon emission reduction, remains unaltered. These recent developments signify a noticeable shift in the utilities sector towards sustainable energy solutions. Investors are encouraged to consider these recent developments and the company's latest financial disclosures when making investment decisions.
InvestingPro Insights
ALLETE Inc. (NYSE:ALE) continues to demonstrate its commitment to renewable energy and shareholder value, as evidenced by the recent sale of its Whitetail wind project. This strategic move aligns with the company's broader focus on supporting carbon-reduction initiatives while maintaining a strong financial position.
According to InvestingPro data, ALLETE boasts a market capitalization of $3.71 billion, reflecting its significant presence in the energy sector. The company's dividend yield stands at an attractive 4.39%, which is particularly noteworthy given its track record of dividend growth. An InvestingPro Tip highlights that ALLETE has raised its dividend for 14 consecutive years, showcasing its commitment to returning value to shareholders.
Despite a challenging environment that saw revenue decline by 19.51% over the last twelve months, ALLETE has maintained profitability. The company's P/E ratio of 24.82 (adjusted for the last twelve months) suggests that investors are willing to pay a premium for its shares, possibly due to its strong position in the renewable energy market and consistent dividend payments.
Another InvestingPro Tip reveals that ALLETE has maintained dividend payments for an impressive 54 consecutive years. This long-term commitment to dividends, coupled with the company's strategic moves in the renewable energy space, may explain why the stock is trading near its 52-week high, as noted by another InvestingPro Tip.
For investors seeking a deeper understanding of ALLETE's financial health and growth prospects, InvestingPro offers additional tips and insights. In fact, there are 9 more InvestingPro Tips available for ALLETE, providing a comprehensive view of the company's strengths and potential challenges in the evolving energy landscape.
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