Kenon Holdings Ltd. (NYSE: KEN)

Kenon Holdings Ltd. is a holding company primarily focused on Orient Power Corporation (OPC) which is listed on the Tel Aviv Stock Exchange and operates as a global independent power producer with significant electricity generation capacity in Israel and the United States. OPC owns approximately 80% of OPC Israel which manages power generation assets in Israel and holds approximately 71% of CPV Group which operates power generation facilities in the United States. The company's strategy centers on developing, operating, and acquiring power generation assets that utilize natural gas, renewable energy, and energy storage technologies.

Kenon Holdings Ltd. derives all of its revenue from OPC's electricity generation and sales operations. The company produces electricity from a balanced portfolio that includes natural gas-fired combined cycle power plants, simple cycle peaking facilities, and renewable energy sources such as solar and wind farms. Revenue is generated through multiple channels including long-term power purchase agreements with private and commercial customers in Israel, participation in wholesale electricity markets managed by regional transmission organizations in the United States, and retail electricity sales to commercial and industrial customers. Additional income is derived from capacity payments, ancillary services, and renewable energy credits where applicable.

The company operates through the following segments: Israel, U. S. Energy Transition, and U. S. Renewable Energies.

• Israel: Through OPC Israel this segment operates the Rotem (466 MW), Hadera (144 MW), Zomet (396 MW), and Gat (75 MW) natural gas power plants which collectively provide approximately 1081 MW of installed capacity as of December 2025. The segment develops major projects including the planned Hadera 2 (850 MW) natural gas power plant and the Ramat Bekka solar-storage initiative targeting approximately 550 MW of solar capacity with 3850 MWh of energy storage. Additional activities involve distributed energy resources, including generation facilities on customer premises, and virtual electricity supply services.

• U. S. Energy Transition: Through CPV Group this segment operates a portfolio of natural gas power plants including the Fairview (1050 MW), Towantic (805 MW), Maryland (745 MW), Shore (725 MW), and Valley (720 MW) facilities representing approximately 4245 MW of combined capacity. Recent strategic actions include achieving full ownership of the Shore plant in early 2026 through the acquisition of the remaining 11% interest and pursuing similar ownership increases for the Maryland plant where an agreement was signed to acquire the remaining interests with completion expected in mid-2026. The segment focuses on enhancing operational efficiency and flexibility of its generating assets.

• U. S. Renewable Energies: Through CPV Group this segment operates renewable energy projects such as the Keenan wind project (152 MW), the Mountain Wind portfolio comprising four wind farms with 82 MW capacity, the Maple Hill solar facility (126 MW), the Stagecoach solar project (102 MW), and the Backbone solar installation (179 MW). The segment also develops natural gas projects with carbon capture potential including the Texas-based Basin Ranch project which targets 1350 MW of capacity and is advancing through construction with commercial operation expected in 2029. Additional business activities involve the development of a retail electricity platform serving commercial and industrial customers in multiple states.

In Israel OPC operates in a competitive landscape that includes the Israel Electric Corporation (IEC), Dorad Energy, Dalia Power Energies, and Enlight Renewable Energy. The company maintains advantages through its early entry into the independent power market, diversified generation portfolio spanning natural gas and renewable technologies, and established relationships with a variety of customers. In the United States CPV Group participates in PJM, NYISO, and ISO-NE markets characterized by active competition among independent power producers, utilities, and other energy companies. The company believes its competitive position is supported by its operational expertise in managing complex power plants, access to capital markets for project financing, and focus on assets that align with evolving energy transition trends.

OPC serves a diverse customer base across its operating regions. In Israel the company provides electricity to private commercial and industrial consumers, academic institutions, and utility companies through long-term power purchase agreements with specific customers including Infinya which purchases steam and electricity for its manufacturing operations and various retail chains that power their store operations. The company also supplies capacity and energy to the system operator Noga. In the United States OPC sells electricity and capacity to wholesale markets managed by PJM, NYISO, and ISO-NE where transactions occur with grid operators, utilities, and other market participants. Additionally through CPV Retail Energy OPC delivers power directly to commercial and industrial customers in states including Pennsylvania, Texas, Maryland, and Georgia under contractual agreements that typically range from one to five years with renewal options.