Orbital Energy Group (NASDAQ:OEG) Stock Attempts To Rebound After The News
Shares of Orbital Energy Group (NASDAQ:OEG) saw a bit of rebound on Thursday after the recent fall.
Market Stats
On Thursday, OEG stock jumped 2.73% at $2.6300 with more than 2.50 million shares, compared to its average volume of 2.23 million shares. The stock has moved within a range of $2.4400 – 2.6593 after opening the trade at $2.5900.
Acquisition of Front Line Power Construction LLC
Orbital Energy Group (NASDAQ:OEG) announced on November 17, 2021, that it has acquired 100% of Front Line Power Construction, which is a full-service electrical infrastructure service company based in Houston. This transaction is vital as it is accretive to earnings and cash flow, while adding considerable scale to Orbital energy. Combined revenue of both companies is expected to be $300 million in 2022.
Around 90% of Front Line Power Construction’s revenues fall under multi-year agreements electric utility and telecommunication customers. It generates a lucrative recurring revenue base and exposure to big secular growth markets. They have vast expertise in installing and maintaining electrical distribution systems and substation infrastructure throughout Texas. They also serve investor owned utilities, electric cooperatives, telecommunications, and industry customers.
There are to be no organizational changes as such; in fact the senior management team, including CEO & Founder, Kurt Johnson, will remain with Front Line Power Construction. Jim O’Neil, Orbital Energy Group’s Chief Executive Officer and Vice-Chairman, looks forward to profitably build revenues both organically and through synergistic acquisitions in the upcoming years. He is emphasizes that the acquisition of Front Line Power Construction supports the transition of Orbital Energy Group, into a full-service energy infrastructure services platform.
Key Quote
“Front Line Power is the ideal acquisition to serve as our electric power infrastructure platform and to profitably build revenues both organically and through synergistic acquisitions going forward. Further, it enhances OEG’s transformation into a full-service energy infrastructure services platform,” stated Jim O’Neil, OEG’s Chief Executive Officer and Vice-Chairman. “FLP’s remarkable growth is a testament to its ability to proactively provide customers with a comprehensive range of solutions in a market that has significant momentum driven by aging infrastructure, a transition to renewable generation, and in a state, Texas, that has experienced significant population growth.”
Traders Corner
OEG stock is trading below the 20-Day and 50-Day Moving averages of $2.69 and $2.88 respectively. Moreover, the stock is trading below the 200-Day moving average of $4.23. The stock is down 10% in the past month.
