Tue, Aug. 4, 8:05 PM
- The utilities (NYSEARCA:XLU) sector was Wall Street's biggest decliner today as natural gas was the surprise loser from Pres. Obama’s climate plan, with the White House apparently abandoning its previous enthusiasm for gas as a cleaner alternative to coal.
- Gas producers were "confused and disappointed" that the administration eliminated an earlier projection that natural gas would contribute much more electricity, instead increasing the role of renewables; also perplexed were utility companies, who have led a power transformation and spent hundreds of millions of dollars to switch generating plants from coal to shale gas.
- American Electric Power (NYSE:AEP) CEO Nicholas Akins says the U.S. does not have the luxury of being able to ditch nat gas, saying the only way to power big industrial processes is through large-scale, 24-hour generation close to consumers - “solar doesn’t provide that and wind doesn’t provide that."
- The final plan is considered a boon for companies such as SolarCity (NASDAQ:SCTY) and NextEra Energy (NYSE:NEE) that have invested billions in renewable generation, but Sanford Bernstein calls NRG Energy (NYSE:NRG) the biggest potential loser from the plan, saying profits in some scenarios could tumble by half because most of its electricity comes from coal plants that are in EPA’s cross-hairs.
- ETFs: XLE, XLU, VDE, ERX, OIH, KOL, UTG, IDU, VPU, ERY, FCG, DIG, GASL, DUG, BGR, IYE, GUT, BUI, FENY, FIF, PXJ, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, SDP
Mon, Aug. 3, 8:57 AM
- NextEra Energy (NYSE:NEE) reports better than expected Q2 earnings and revenues, and raises its long-term earnings forecast.
- NEE reaffirms its 2015 EPS guidance of $5.40-$5.70 vs $5.63 analyst consensus estimate, but says it now expects 2016 EPS of $5.85-$6.35, ahead of its previous forecast of $5.75-$6.25; it foresees EPS of $6.60-$7.10 in 2018.
- NEE says profit at its Florida Power & Light unit rose to $435M from $423M a year ago, while profit at NextEra Energy Resources grew to $273M from $81M a year ago.
- Meanwhile, NextEra Energy Partners (NYSE:NEP), which also released Q2 results, agrees to acquire privately-held NET Midstream in a $2.1B deal, which will add seven natural gas pipelines in Texas to its portfolio.
Mon, Aug. 3, 7:35 AM
Sun, Aug. 2, 5:30 PM
Mon, Jun. 29, 8:15 PM
- Cameron (NYSE:CAM) stands out as Barclays' Top Pick in the energy sector, as the firm highlights "resilient results expected from improved execution and manufacturing flexibility, while also being well positioned for the eventual recoveries in each of its end markets."
- Valero Energy (NYSE:VLO) remains Barclays' favorite name among refiners, due mostly to the new management’s emphasis on growing value for shareholders; Suncor (NYSE:SU) and Vermilion Energy (NYSE:VET) also rank among the firm's favorites.
- Among regulated utilities, NextEra Energy (NYSE:NEE) is one of the highest quality names, with 5%-7% targeted earnings growth generated from continued investment in its Florida Power & Light regulated entity.
- In precious metals, Royal Gold (NASDAQ:RGLD) is Top Pick; Barclays prefers gold royalty companies over gold producers as they have wider margins and limited exposure to rising operating and capital costs while their diversified portfolios limit political risk, and RGLD is the best of the group.
Mon, Jun. 29, 11:38 AM
- Coal stocks (KOL +0.3%) are rallying after the Supreme Court threw out the EPA’s first-ever rules requiring coal-fired power plants to cut emissions of mercury and other toxic air pollutants, saying the agency should have weighed the cost of compliance in deciding whether to regulate.
- The ruling means the EPA must go back to the drawing board, which possibly could push any new emissions rules past Pres. Obama’s time in office.
- Coal companies are enjoying hefty gains: WLT +28.2%, ACI +15.1%, BTU +11.2%, ANR +5.4%, CLD +5.2%, RNO +3.9%, WLB +1.9%, CNX +1.4%.
- Select utility names also are seeing some strength: AEP +1%, PCG +0.9%, D +0.6%, NEE +0.6%, EXC +0.3%.
Thu, Jun. 25, 5:23 PM
- Energy Future Holdings has canceled plans to auction its power distribution business and will try to resolve its $42B bankruptcy under one of two proposals backed by rival groups of creditors.
- NextEra Energy (NYSE:NEE) was said to have emerged as the front-runner in the now-canceled auction after making a cash offer worth ~$18B.
- Unsecured creditors backed by Hunt Consolidated are trying to round up enough senior debtholders to push through a ~$19B reorganization plan and have offered to buy power-line company Oncor and settle many of the bankruptcy’s most contentious disputes.
Thu, Jun. 18, 3:28 PM
- NRG Yield (NYLD -1.6%) has agreed to acquire a 25% interest in the massive new Desert Sunlight Solar Farm in southern California from GE for $285M plus $287M in project debt.
- NYLD says the acquisition provides a total ownership of 137.5 MW of operating solar capacity, and it expects the deal to increase the annual run-rate EBITDA by ~$45M and cash available for distribution by ~$22M by 2016.
- The deal puts NRG in a partnership with NextEra Energy (NEE +1.5%) and Japan’s Sumitomo, who are respective 50% and 25% owners of Desert Sunlight.
Thu, Jun. 11, 9:52 AM
- NextEra Energy (NEE +0.3%) has emerged as the frontrunner in an auction for bankrupt Energy Future Holdings' Oncor Electric, Bloomberg reports.
- Energy Future could name NEE the stalking horse bidder for its 80% stake in Oncor, which is the biggest owner and operator of power lines in Texas, in the next few weeks, according to the report.
- Oncor is considered the crown jewel of Energy Future, which filed for Chapter 11 last April after taking on too much debt in a $48B leveraged buyout, because Texas is adding electricity customers and state regulators support power line investments.
- Separately, Hawaiian Electric (NYSE:HE) shareholders approve the company's merger with NEE.
Wed, Jun. 10, 9:57 AM
- PJM Interconnection, the largest U.S. electricity grid, wins approval from U.S. regulators for a plan to increase reliability at power plants and avoid a repeat of the shutdowns and price spikes during the unseasonably cold winter of 2014.
- Under the plan, which takes effect in 2018 after a capacity auction this year, generators that promise to be available during peak demand periods will receive higher payouts than other plants and will be penalized for failing to meet the commitments; the auction, planned for May, was delayed after FERC declined PJM’s initial proposal and asked for more information.
- The largest generators in PJM are trading higher at the open: NRG +4.2%, AEP +1.4%, EXC +3.1%, PEG +1.1%, DYN +7.2%.
- Also: TLN +4%, NEE +1.2%, PCG +0.7%, EE +1.5%, SO +0.5%, D +0.2%, DUK +0.9%, XLU +0.9%.
Thu, May 28, 1:37 PM
- The Global X YieldCo Index ETF (NASDAQ:YLCO) will provide access to reliable and growing dividend income for investors through YieldCos.
- "YieldCos are an emerging asset class that meets many of the key investment characteristics investors are looking for, such as high current income, low volatility and the opportunity for dividend growth," said Jay Jacobs, Research Analyst at Global X Funds in a press release.
- While YLCO is the first YieldCo ETF available to U.S. investors, some of its top holdings, like Terraform Power (NASDAQ:TERP) and NextEra Energy (NYSE:NEE) can also be found in existing energy funds.
Fri, May 22, 12:31 PM
Thu, May 21, 9:30 AM
- Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
- New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
- The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), salesforce.com (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
Mon, May 11, 12:19 PM
- Electric utility stocks look more attractive after a 10%-plus decline since late January, with total annual return potential of 8%-9% in the next few years, according to a Barron's weekend analysis.
- "The relative attraction of utilities has increased in an environment of slower economic growth, when earnings growth is being suppressed by a stronger dollar and energy prices,” Bernstein utilities analyst Hugh Wynne, favoring two California utilities, PG&E (NYSE:PCG) and Edison International (NYSE:EIX), because of above-average growth and a favorable regulatory environment.
- "Utilities and the overall market may provide the same total return, but one offers a lower-risk package,” says Credit Suisse utility analyst Dan Eggers, who is partial to American Electric Power (NYSE:AEP), NextEra Energy (NYSE:NEE) and PG&E.
- Also discussed: SO, ED, DUK, D.
Wed, May 6, 11:53 AM
- Duke Energy (NYSE:DUK) acquires a 7.5% ownership stake in the proposed $3B Sabal Trail natural gas pipeline that will traverse Georgia, Alabama and Florida.
- DUK plans to invest ~$225M in the 500-mile underground pipeline that will have the capacity to deliver 1.1B cf/day of natural gas per day to the southeast U.S. market.
- DUK gained its ownership share from Spectra Energy (NYSE:SE), which will own 59.5% of the project, the other partner, NextEra Energy (NYSE:NEE), owns 33%.
- The pipeline, scheduled to begin service in 2017, requires federal and other regulatory approvals.
Wed, Apr. 29, 7:37 AM
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