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Genie Energy Announces The Purchase Of Partner's Interest In Orbit Energy For Roughly $1.7M

NEWARK, N.J., Oct. 9, 2020 /PRNewswire/ -- Genie Energy Ltd., (NYSE:GNE, GNEPRA)))), a global provider of energy services, announced that it has purchased the outstanding 24% interest in its

· 10/09/2020 16:32

NEWARK, N.J., Oct. 9, 2020 /PRNewswire/ -- Genie Energy Ltd., (NYSE:GNE, GNEPRA))))), a global provider of energy services, announced that it has purchased the outstanding 24% interest in its retail energy supply joint venture operating in the United Kingdom (U.K.) from its former joint venture partner.  The venture, which operates under the trade name Orbit Energy, provides electricity and natural gas service to over 100,000 residential meters in the U.K.'s deregulated retail energy market. The purchase price was approximately $1.7 million.  Net of repayment of outstanding loans, Genie paid approximately $1.4 million.

Genie Energy is a leading provider of electricity and natural gas to homes and small businesses in the Eastern U.S. Genie also operates an E&P company with an active exploratory program in Northern Israel.

Following the transaction, Orbit Energy's operating company is a wholly owned subsidiary of Genie Energy.  Genie will consolidate Orbit's results in its financial reporting under the Genie Retail Energy International (GREI) Segment. 

"Since its launch two years ago, our Orbit Energy initiative has validated our approach to the retail energy supply business in the United Kingdom and proven the potential for long term growth in this exciting market," said Michael Stein, Genie Energy's Chief Executive Officer.  "With the purchase of the outstanding interest in Orbit, we continue to expand our international portfolio of rapidly growing retail energy suppliers."

Gail Parker, CEO of Orbit Energy, added, "Genie's investment provides a streamlined management structure that will help us to respond nimbly as we continue to execute on our growth strategy.  We will continue to provide the outstanding service and value that our customers here in the UK expect."