Infrastructure & Energy (IEA) Stock Climbs On Contracts

Infrastructure & Energy Alternatives IEA Stock News

Infrastructure & Energy Alternatives Inc (NASDAQ: IEA) is rocketing in the market this morning, trading on gains of more than 46% early on. The gains come after the company announced new contracts that will drive about $150 million in revenue through the doors. Here’s what’s going on:

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IEA Announces $150 Million In New Projects

Infrastructure and Energy Alternatives issued a press release this morning, informing investors about two new contract awards. In the release, the company said that the contracts surrounded wind energy projects that are valued at about $150 million.

The first of the projects will take place in Willacy County, Texas. This project surrounds the construction of the Las Majadas Wind Farm. IEA said that the project is expected to result in a 272-megawatt wind energy farm and will provide energy for about 77,000 homes in Teas.

This clean energy approach is equivalent to cutting about 280,000 metric tons of CO2 emissions annually. The energy generated at the project will be generated through 125 Vestas turbines and will be delivered directly into the Texas electrical grid. IEA said that it expects the project to begin shortly with it reaching full operation by October of 2020.

The second project announced by Infrastructure & Energy Alternatives will take place in Scurry County, Texas, about 260 miles west of dalas. This project will result in a 242-megawat wind energy farm dubbed the Coyote Wind Farm and is expected to power up to 65,500 homes. IEA said that construction of this project is expected to be finished by September of 2020.

The lead developer on both projects will be EDF Renewables, a market leading independent power producer and service provider with 30 years within the industry.

In a statement, JP Roehm, CEO at IEA, had the following to offer:

Both of these projects exemplify the robust demand for clean energy, including wind projects, that we are seeing in 2019.

The shift to renewable energy across North America is an enduring movement that will drive large and important construction projects for many years to come.

This News Is Significant

There are a couple of reasons that this news is significant. First and foremost, even after nearly 50% gains today, the market cap at Infrastructure & Energy Alternatives sits at just over $60 million. So, the two contracts combined will drive more than double the company’s market cap in revenue.

Moreover, The project helps to solidify the strong position held by IEA within a growing industry. IN fact, in the United States, wind power capacity grew by 8% in 2018 and continues to see growing demand.

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