MAMMOTH COMPLEX ACQUISITION

9 Months Ended

Sep. 30, 2011

MAMMOTH COMPLEX ACQUISITION

NOTE 3 — MAMMOTH COMPLEX ACQUISITION

On August 2, 2010, the Company acquired the remaining 50% interest in Mammoth-Pacific, L.P. (“Mammoth Pacific”), which owns the Mammoth complex located near the city of Mammoth, California, for a purchase price of $72.5 million in cash. The Company acquired the remaining interest in Mammoth Pacific to increase its geothermal power plant operations in the United States.

Prior to the acquisition, the Company had a 50% interest in Mammoth Pacific that was accounted for under the equity method of accounting. Following the acquisition, the Company became the sole owner of the Mammoth complex, as well as the sole owner of rights to over 10,000 acres of undeveloped federal lands.

As a result of the acquisition of the remaining 50% interest in Mammoth Pacific, the financial statements of Mammoth Pacific have been consolidated with the Company’s financial statements effective August 2, 2010. The acquisition date fair value of the previously held 50% equity interest was $64.9 million, which takes into account a “control premium” of $7.6 million. In the three and nine-month periods ended September 30, 2010, the Company recognized a pre-tax gain of $36.9 million, which is equal to the difference between the acquisition date fair value of the previously held 50% equity interest in Mammoth Pacific and the acquisition date carrying value of such investment. The gain is included in “gain on acquisition of controlling interest” in the condensed consolidated statements of operations and comprehensive income (loss).

Revenues and net income of the Mammoth complex were $5,257,000 and $597,000 for the three months ended September 30, 2011, respectively. Revenues and net income of the Mammoth complex were $14,696,000 and $1,029,000 for the nine months ended September 30, 2011, respectively.

The following unaudited consolidated pro forma financial information for the three and nine-month periods ended September 30, 2010 assumes the Mammoth Pacific acquisition occurred as of January 1, 2010, after giving effect to certain adjustments, including the depreciation based on the adjustments to the fair market value of the property, plant and equipment acquired, and related income tax effects. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations that may occur in the future or that would have occurred had the acquisition of Mammoth Pacific been effected on the date indicated.

	Three Months  Ended September 30, 2010		Nine Months  Ended September 30, 2010
	(Dollars in thousands, except per share data)
Revenues	$	103,155	$	291,881
Income from continuing operations		8,710		5,273
Net income	$	8,697	$	9,532
Net loss attributable to noncontrolling interest		58		168
Net income attributable to the Company’s stockholders	$	8,755	$	9,700
Earnings per share attributable to the Company’s stockholders — basic and diluted:
Income from continuing operations	$	0.19	$	0.12
Income from discontinued operations		—		0.10
Net income	$	0.19	$	0.22