Mon, Sep. 19, 11:48 AM
- NextEra Energy (NEE +0.7%) has sweetened its offer for Energy Future Holdings' Oncor transmission business by $300M, raising the cash component of its deal to $4.4B from $4.1B, helping satisfy creditor concerns about the sale that will be the key to getting Energy Future out of bankruptcy.
- NEE also agrees to make other changes to the proposed Oncor buyout that would allow Energy Future creditors to receive $450M more from the sale than previously planned.
- Fidelity, a former opponent of a deal, now agrees to support the Energy Future bankruptcy plan, which is premised on the sale of Oncor to NEE.
Fri, Sep. 16, 11:23 AM
- The Senate Finance Committee and the House Ways and Means Committee have launched a formal investigation into whether solar energy companies improperly received billions of dollars in tax incentives from the Obama administration.
- The committees sent letters to three companies in the residential solar industry - SolarCity (NASDAQ:SCTY), Sunrun (NASDAQ:RUN) and Sungevity - and four solar utility firms - SunEdison (OTCPK:SUNEQ), Abengoa (NASDAQ:ABGB), NextEra Energy (NYSE:NEE) and NRG Energy (NYSE:NRG).
- At issue is a Treasury Department policy that gives solar firms a 30% investment tax credit on the cost of acquiring a system, but solar energy developers do not always have the income to use the credits or the funds to buy and install solar energy systems, so they routinely enlist big investors and transfer the tax benefits.
Mon, Aug. 29, 8:58 AM
- NextEra Energy (NYSE:NEE) says it reached agreement with global financial institutions related to its bid to acquire Energy Future's Oncor Electric Delivery utility in Texas.
- As part of the agreement, NEE says it will fund $9.5B, primarily for the repayment of nearly all Energy Future Intermediate Holding Co. debt; NEE previously agreed to buy all of the equity of reorganized Energy Future and some of its direct and indirect subsidiaries, including Energy Future's 80% indirect interest in Oncor.
- The transaction is subject to approval of the merger agreement and Energy Future’s reorganization plan from the bankruptcy court and the Public Utility Commission of Texas.
Fri, Aug. 5, 10:58 AM
- Energy Future Holdings is pressing a bankruptcy judge for approval to sell its stake in the Oncor transmission business to NextEra Energy (NEE -1.2%), Dow Jones reports.
- In court filings this week, Energy Future seeks court permission to commit to the proposed $18.4B deal with NEE and said secured creditors and most unsecured creditors of the parent and Oncor holding company can expect payment in full if the NEE sale goes through.
- NEE must apply for permission from the Texas Public Utility Commission, which killed Energy Future's original Oncor sale transaction earlier this year with Hunt Consolidated.
Wed, Aug. 3, 7:56 AM
- NextEra Energy (NYSE:NEE) -1.8% premarket after agreeing to sell $1.5B of equity units to Goldman Sachs, Credit Suisse and Mizuho Securities.
- NEE says it expects to use the proceeds to finance the potential acquisition of Energy Future Holdings, to fund investments in energy and power projects, and for other general corporate purposes, including the repayment of debt.
Fri, Jul. 29, 2:02 PM
Fri, Jul. 29, 8:09 AM
- NextEra Energy (NYSE:NEE) agrees to sell its Marcus Hook gas generating assets in Pennsylvania to Starwood Energy Group Global for $760M.
- NEE says it expects to book ~$255M in proceeds after repayment of existing project related financing.
- The transaction includes the 790 MW combined-cycle Marcus Hook Energy Center and the 50 MW simple-cycle Marcus Hook 50 Energy Center.
- It's a busy day for NEE, which also agreed to buy Texas utility Oncor in a deal valued at ~$18.4B.
Fri, Jul. 29, 7:15 AM
- NextEra Energy (NYSE:NEE) agrees to acquire Energy Future’s stake in Oncor Electric Delivery, in a deal that values the Texas utility at ~$18.4B.
- The agreement is part of an overall reorganization plan designed to allow Energy Future to emerge from bankruptcy, and the value from the deal will go to pay off creditors.
- Energy Future can still accept other bids before bankruptcy court approval of its deal with NEE; if it does, Energy Future must pay NEE a $275M termination fee.
- The news comes less than two weeks after NEE’s $2.6B deal to buy Hawaiian Electric Industries fell apart.
Wed, Jul. 27, 7:42 AM
Tue, Jul. 26, 5:30 PM
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Mon, Jul. 18, 6:17 AM
- Due to a Hawaiian regulatory order dismissing the companies' merger application, NextEra Energy (NYSE:NEE) and Hawaiian Electric (NYSE:HE) have announced the termination of their plans to combine, effective immediately.
- Under the merger agreement's conditions, NextEra will pay Hawaiian Electric a $90M break-up fee and up to $5M for reimbursement of expenses associated with the transaction.
Sat, Jul. 16, 11:17 PM
- Hawaii's Public Utilities Commission voted late Friday to reject NextEra Energy's (NYSE:NEE) bid to purchase Hawaiian Electric (NYSE:HE) in a potentially fatal blow to the deal.
- The regulator said NEE failed to prove its plans for HE would be in the public interest, highlighting concerns about benefits to utility customers, a loss of local control of the utility and NEE’s commitment to deploying solar rooftop systems.
- NEE, the biggest owner of renewable power projects in the U.S., and HE, which serves 95% of Hawaii’s population, say they are reviewing the decision.
- The ruling may allow NEE to concentrate on its pursuit of Energy Future's Oncor Electric Delivery.
Thu, Jul. 14, 3:02 PM
- "Buffett has been clear that he likes infrastructure plays in general and he likes utilities," says Bloomberg's Kit Konolige. "They have stable cash flows and they pay dividends. He would appear to believe they are not going away anytime soon.”
- According to Bloomberg, Berkshire Hathaway (BRK.A, BRK.B) has joined NextEra Energy (NYSE:NEE) as a top contender for Energy Future's Oncor Electric Delivery, with valuations in the $18B area.
- The process is fluid, say Bloomberg's sources, and the leading bidders have switched places several times.
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, Jun. 27, 5:38 PM
- NextEra Energy (NYSE:NEE) has offered to buy Energy Future Holdings' Oncor power utility and is closest to reaching a deal among at least seven companies that have expressed interest, Bloomberg reports.
- Berkshire Hathaway (BRK.A, BRK.B) and Edison International (NYSE:EIX) are among the others that have expressed interest in buying Oncor, which could be valued at $17B-$18B, according to the report.
- NEE reportedly has proposed to buy Oncor with a combination of cash and debt, and its offer has exceeded a failed proposal from Hunt Consolidated in which investors would have had to raise more than $12B and cancel billions in debt.
Tue, May 24, 6:45 PM
- NextEra Energy’s (NYSE:NEE) proposed $4.3B takeover of Hawaiian Electric Industries (NYSE:HE) looks increasingly less likely, as the company gets a new chance to buy the largest power distributor in Texas, Bloomberg reports.
- Analysts say this month’s collapse of a deal for the Oncor Electric unit of Energy Future Holdings may prompt NEE, North America’s largest generator of wind and solar power, to dump the Hawaii deal for a second pass at Oncor.
- Oncor’s power system is “a great strategic fit” for NEE, which can afford to walk away from "the uphill battle in Hawaii,” says Guggenheim Securities analyst Shahriar Pourreza; opponents have questioned NEE’s commitment to Hawaii’s goal of 100% renewable power by 2045 and dislike ceding control to the Florida-based company.
- NEE has said it could exit the HE deal after June 3 by paying ~$95M.