Middle River Power (MRP) announced on Oct. 6, 2026, that it has closed on the acquisition of Panoche Energy Center, a fully contracted 427-megawatt natural gas generation facility located in Firebaugh, California. The asset was purchased from an Ares Infrastructure Equity fund, a division of Ares Management Corporation.

Strengthening Flexible Capacity Amid Rising Demand

According to the announcement, the acquisition strengthens MRP's flexible capacity portfolio at a time when demand for dispatchable resources is accelerating across the Western Interconnection.

The company said the deal builds on its growing portfolio of flexible, reliable, and cleaner generation assets, following earlier additions this year of the 240 MW Midway-Sunset facility and the 250 MW Brush facility.

Hybridization Strategy Planned for Panoche

MRP said it expects to apply its hybridization strategy to Panoche, pairing efficient thermal capacity with storage to meet rising demand across multiple sectors, including utilities, data centers, and industrial offtakers.

"This fully contracted facility adds to our growing footprint across the West, following the additions of the Midway-Sunset facility in Kern County, California, and the Brush facility in Morgan County, Colorado, earlier this year," said Mark Kubow, Chief Executive Officer at Middle River Power.

"We expect to deploy our strategy of hybridizing critical capacity resources so we can continue delivering reliable, affordable, and cleaner energy well into the future, for customers throughout the region."

Kubow said the company continues to add to its portfolio of flexible, reliable, and clean generation assets across the West with the acquisition of Panoche from Ares.

Ares Reflects on Two Decades of Ownership

Ares, which supported the asset since its development twenty years ago, described the transaction as a compelling next chapter for the facility. Keith Derman, Head of Ares Infrastructure Equity, said the firm was pleased to have worked closely with MRP throughout the process to facilitate a smooth transition.

"We believe that Panoche will continue to provide reliable, efficient, and flexible capacity to the California grid," Derman said.

About the Companies Involved

Middle River Power is an independent power producer and asset management company focused on finding creative solutions that accelerate the energy transition. The company's strategy combines new technologies and resources with under-utilized legacy generation assets, delivering cleaner, more reliable, and cost-efficient resources faster than standalone development.

MRP specializes in repositioning existing, safe, critical resources with co-located and hybrid development projects. In 2025, MRP was acquired by Partners Group, one of the largest firms in the global private markets industry, acting on behalf of its clients.

Ares Management Corporation, listed on the New York Stock Exchange under the ticker ARES, is a global alternative investment manager offering primary and secondary investment solutions across the credit, real estate, private equity, and infrastructure asset classes.

As of June 30, 2026, Ares reported more than USD 671 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific, and the Middle East.

Western Demand Context

The acquisition comes as demand for dispatchable resources accelerates across the Western Interconnection, according to the announcement. With Panoche now in its portfolio alongside Midway-Sunset and Brush, MRP has added more than 900 megawatts of capacity across the West this year through its three acquisitions.

The company indicated the Panoche deal represents the latest step in an expansion strategy centered on hybridizing critical capacity resources to serve customers throughout the region.

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