American Electric Power Company IncNYSE
Wed, Oct. 5, 7:05 PM
- Utilities shares (NYSEARCA:XLU) fell today for the ninth straight session, marking their longest losing streak since 2002 and deepening the recent slide in income producing investments as investors warily watch central banks and interest rates.
- The S&P Utilities sector has dropped 7.5% in the nine days, including a 0.3% fall today, trimming its YTD gain to 8.9%; during the period, AES -10%, EXC -8.8%, PPL -8.8%, PCG -8.2%, ED -8%, EIX -7.6%, SO -7.4%, NEE -7.4%, SRE -7.1%, AEP -6.8%, D -6.7%, DUK -6.5%.
- “Trees don’t grow to the sky,” says Fred Alger's Management's Brad Neuman, “It was almost like the market was waiting for an excuse” to send high-yielding stocks back toward their historical valuations, adding that such stocks could have further to fall.
- Even after the recent decline in share prices, utilities had a 12-month trailing P/E ratio of 21.4 as of Tuesday, vs. 19.8 for the S&P; at the beginning of the year, utilities had a lower ratio than the broader market.
Tue, Sep. 20, 12:23 PM
- PNM Resources (PNM +2%) is upgraded to Buy from Hold with a $37.50 price target, raised from $35, at Jefferies, which believes a final rate case decision from New Mexico regulators later this month will be more balanced than what is priced into the stock.
- A negative hearing examiner recommendation was issued in August, and the firm believes a final order will prove more favorable.
- Jefferies also downgrades American Electric Power (AEP -0.2%) to Hold from Buy.
Wed, Sep. 14, 8:37 AM
- American Electric Power (NYSE:AEP) agrees to sell four power plants totaling ~5,200 MWs for ~$2.17B to a newly formed joint venture of Blackstone (NYSE:BX) and ArcLight Capital Partners, confirming an earlier report.
- The sale includes plants in Cheshire, Waterford and Mount Sterling, Ohio, and Lawrenceburg, Ind.
- AEP, which had announced in January that it was exploring strategic alternatives for the power plants, is making the sale as part of a move away from wholesale power markets and toward its regulated utilities.
- AEP says it is evaluating options and will share details about its plans for investment of the proceeds from the sale at a Nov. 1 analyst day.
Tue, Sep. 13, 4:31 PM
- American Electric Power (NYSE:AEP) is near a deal to sell four Midwest power plants to Blackstone Group (NYSE:BX) and ArcLight Capital Partners for ~$2.1B, WSJ reports.
- The P-E firms would acquire the coal-fired Gavin Power Plant in Cheshire, Ohio, and three natural gas plants in Indiana and Ohio, according to the report.
- Slumping wholesale electricity prices, partly due to weak natural gas prices, have pressured some independent power generators such as the ones AEP is selling.
Wed, Aug. 17, 7:11 PM
- American Electric Power's (AEP +1.3%) Southwestern Electric Power Co. (SWEPCO) is looking to add more renewable energy to its mix, putting out a Request for Proposals to buy wind assets.
- The company wants bids on projects it can put into operation by the end of 2018, and is accepting plans for up to 100 megawatts (minimum nameplate rating of 80 megawatts) up until Sept. 15.
- Projects have to be interconnected to the Southwest Power Pool and located in Arkansas, Louisiana, Texas, Oklahoma, Kansas or Missouri.
- SWEPCO already has 469 megawatts of wind energy, it says, and it plans "significant increases in renewable energy, including wind and solar, and energy efficiency over the next 20 years."
Thu, Jul. 28, 7:03 AM
Wed, Jul. 27, 5:30 PM
- AB, ABMD, ACIW, ACOR, ADP, AEP, ALKS, ALLE, ALXN, AMT, APD, ARIA, AZN, BC, BCC, BCO, BCOR, BEN, BG, BGCP, BHI, BMS, BMY, BSX, BWA, BWEN, BZH, CAB, CBG, CBM, CELG, CFX, CIT, CL, CLF, CLFD, CME, CMS, COMM, COP, COR, CRR, CRS, CS, CSH, CVI, CVRR, CWT, DBD, DFT, DLX, DOW, DSX, EME, EPD, EQM, EQT, EXLS, F, FCFS, FCN, FI, FIG, FITB, FLY, FSS, GLOP, GNC, GOV, GPI, GPN, GRUB, GTLS, HCA, HEES, HOG, HP, HSY, HTH, IART, IDA, IGT, INCR, INGR, IP, IPGP, IRDM, ITC, ITG, IVC, IVZ, KEM, LAD, LAZ, LDOS, LEA, LKQ, LLL, LPG, MA, MCS, MD, MDP, MDWD, MINI, MITK, MJN, MKTX, MMC, MNRO, MPC, MPLX, MSCI, MTH, MTRN, MVIS, NAP, NEWM, NICE, NMR, NOV, NTCT, NYT, OAK, ODFL, ORI, OSK, PAG, PCG, PES, PF, PJC, PNR, POT, PRLB, PTEN, PX, RDN, RDS.A, RPM, RTN, SCG, SEE, SERV, SFE, SPB, SPGI, SQBG, SQNS, STNG, SXC, SXCP, TCK, TFX, TGI, THRM, TKR, TMO, TPX, TREE, TRI, TZOO, UAN, UBSI, UTHR, VC, VGR, VIVO, VNTV, WCC, WILN, WRLD, WST, WWE, YNDX, ZBH
Tue, Jul. 26, 3:14 PM
Tue, Jul. 26, 12:43 PM
- American Electric Power (AEP -0.4%) is upgraded to Buy from Neutral with a $73 price target, raised from $71, at Goldman Sachs, which believes the stock deserves to trade at a higher multiple even after historically trading at a discount to its regulated utility peers.
- Goldman says accelerating core growth at AEP’s regulated segment warrants a higher multiple, while asset divestitures that reduce the scale and size of non-regulated business likely also will drive multiple re-rating higher.
- The firm notes that solid transmission growth has been driving 7% consolidated EPS growth along with 9% growth in core regulated segments; AEP’s free cash flow also is improving, while the company could drive higher profitability through the sale of parts of or the entire merchant generation business.
Mon, Jun. 27, 7:27 PM
- One of the biggest Brexit beneficiaries is the utilities sector, as the Dow Jones Utility Average and the SPDR Utilities Select Sector ETF both surged to new record highs as Treasury yields tumble to multiyear lows.
- The implied annual dividend yield for the Dow utilities is 3.08% and 3.18% for the utilities ETF, more than double the 10-year Treasury yield.
- J.P. Morgan equity strategists said today that they believe bond yields "are not going anywhere but lower,” and thus remain overweight on the utilities sector.
- At least six Dow utilities components posted record closes: NEE +3.3%, EIX +2.5%, AWK +2.4%, ED +1.9%, AEP +1.8%, PCG +0.8%.
- Among other major utilities in today's trade: SO +1.9%, DUK +1.9%, SCG +1.6%, ETR +1.1%, D +1%, AEE +1%, XEL +0.9%, SRE +0.9%, PEG +0.7%, FE +0.7%, EXC +0.6%.
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU
Mon, May 9, 11:58 AM
- Six energy companies announce the official launch of Grid Assurance, an independent company providing transmission sparing solutions for critical electric transmission equipment.
- The company is founded by affiliates of American Electric Power (NYSE:AEP), Berkshire Hathaway (BRK.A, BRK.B), Duke Energy (NYSE:DUK), Edison International (NYSE:EIX), Eversource Energy (NYSE:ES) and Great Plains Energy (NYSE:GXP) to enhance grid resiliency and give electric transmission owners faster access to long-lead time critical equipment necessary to recover from catastrophic events that could impact the U.S. electric grid.
- Michael Deggendorf, senior VP of Kansas City Power & Light, is named Grid Assurance CEO and will oversee the formation and operations of the company.
- Now read WSJ: Utilities seek to store and sell essential parts for disasters
Thu, Apr. 28, 10:33 AM
- FirstEnergy (FE -11.4%) and American Electric Power (AEP -2.5%) are sharply lower after the FERC decides to review income guarantee agreements, which means the deals are not valid unless the two companies apply for and receive federal approval.
- The federal ruling pre-empts the ruling by Ohio's public utilities commission, which had considered for nearly two years plans to raise rates to subsidize some older coal-fired and nuclear power plants before unanimously approving them last month.
- "The decision is a disappointing and unfortunate intrusion by FERC into Ohio’s ability to protect its retail customers from market volatility and plan for the state’s generation needs,” AEP says.
- Competing electric utility Dynegy (DYN +3.3%) praises the FERC decision, saying the proposals accepted by Ohio regulators were "exorbitantly priced."
- Now read FirstEnergy beats by $0.05 and American Electric Power misses by $0.03, misses on revenue
Thu, Apr. 28, 7:02 AM
- American Electric Power (NYSE:AEP): Q1 EPS of $1.02 misses by $0.03.
- Revenue of $4B (-14.9% Y/Y) misses by $470M.
- Shares -1.2% PM.
Wed, Apr. 27, 5:30 PM
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Tue, Apr. 26, 12:57 PM
- American Electric Power (NYSE:AEP) declares $0.56/share quarterly dividend, in line with previous.
- Forward yield 3.56%
- Payable June 10; for shareholders of record May 10; ex-div May 6.
Fri, Apr. 22, 10:57 AM
- The Ohio Supreme Court yesterday upheld a pricing structure for fees that competitors must pay to American Electric Power (AEP +0.6%), while rejecting part of another fee the company had imposed as part of its transition into a competitive power market.
- The court sided with a 2012 decision by Ohio's Public Utilities Commission to set the fee at $188.88/MW-day, which AEP argued was too low to recover its actual costs to provide capacity, or the cost of maintaining a generating plant.
- AEP says the reassessment probably will not significantly affect customers’ bills and will have “minimal” impact on the company’s finances.
- Now read American Electric Power: Stay wary of that valuation