U.S. Geothermal: A Good Value

Feb.12.10 | About: US Geothermal (HTM)

U.S. Geothermal (NYSEMKT:HTM) is undervalued compared to its peers. The company develops and operates geothermal properties in the Western US.

Currently, it has two commercial geothermal projects with a combined capacity of 13.6 MW. HTM was awarded a $3.8 million grant under the US Recovery Act for its San Emidio project. The grant is to be used for advanced exploration technologies, which include innovative seismic and satellite imagery to better identify geothermal fractures.

HTM is waiting for final approval for a DOE loan guarantee for its Neal Hot Springs project. The guarantee would cover 80% of the project costs - about $120 million.

The company has a pipeline of 30 MW which depend on financing. Revenues should increase as projects come online and financing is secured.

Disclosure: None