Does Ormat Technologies’ (ORA) Google-Backed Geothermal Deal Reframe Its Long-Term Cash Flow Durability?
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Ormat Technologies has secured a major 150MW geothermal power deal with NV Energy to supply Google’s Nevada operations from 2028-2030. This long-term, portfolio-style contract provides significant future revenue visibility, supporting Ormat’s investment case for stable, contracted cash flows. However, concerns remain about the company’s high capital expenditure needs, leverage, and potential margin pressures. Analysts hold widely varying fair value estimates for the stock, reflecting differing views on these risks versus the benefits of its long-duration contracts.
