NextEra Energy, Inc.NYSE
Mon, Nov. 28, 8:44 AM
- The Herzfeld Caribbean Basin Fund (NASDAQ:CUBA) is higher by 16.3% in premarket action after the dictator's passing over the weekend. Premarket volume of about 167K shares is already six times the normal full-day average.
- For now, the fund invests in companies likely to benefit from a more open Cuban economy.
- Among the holdings: Mastec (NYSE:MTZ), Royal Caribbean (NYSE:RCL), Carnival Corp. (NYSE:CCL), Nextera Energy (NYSE:NEE), Norwegian Cruise (NASDAQ:NCLH), Copa Holdings (NYSE:CPA).
Thu, Nov. 17, 6:25 PM
- A U.S. appeals court rules that Energy Future Holdings must pay hundreds of millions of dollars for early redemption of notes during its bankruptcy, jeopardizing the power company's planned exit from bankruptcy.
- The ruling overturns a bankruptcy judge’s ruling that Energy Future noteholders could not collect $431M for lost interest when their bonds were refinanced after the company filed for bankruptcy.
- The court said the bankruptcy judge erred when ruling that a technicality of the law prevented noteholders from collecting “make-whole” payments.
- It is not clear how the ruling that boosts Energy Future’s debt by hundreds of millions of dollars will affect NextEra Energy's (NYSE:NEE) proposal to buy its Oncor electricity transmission business for ~$18.4B.
Tue, Nov. 1, 4:55 PM
- NextEra Energy (NYSE:NEE) -1.5% AH after announcing a 12M-share public offering, with an underwriters option to purchase up to an additional 1.8M common shares.
- NEE says it plans to use the proceedings to help fund its purchase of Texas Transmission Holdings, which owns a ~20% indirect interest of Oncor Energy Delivery.
Tue, Nov. 1, 9:26 AM
- Crown Castle International (NYSE:CCI) has a deal to acquire FPL FiberNet and some other related units of NextEra Energy (NYSE:NEE), for $1.5B.
- The all-cash payment gets CCI rights to some 11,500 route miles of fiber (installed and under construction) in South Florida and Texas, with about 6,000 of that in metro areas. All told CCI will have ownership or rights afterward to about 28,500 route miles of fiber.
- CCI sees the deal as immediately accretive to its adjusted funds from operations on closing, which it expects in the first half of 2017.
- In the first year, Crown Castle expects the deal to contribute about $105M-$110M to gross margin, along with $15M-$20M in general/administrative expenses.
- The deal also has about $5M in annual cash flows that won't contribute to gross margin as it's associated with a lease to be accounted for as financing.
Mon, Oct. 31, 9:18 AM
- NextEra Energy (NYSE:NEE) agrees to acquire Texas Transmissions Holdings and take over its ~20% indirect interest of Oncor Electric Delivery for ~$2.4B, as well as the remaining interest in Oncor owned by Oncor Management Investment for another $27M.
- Combined with July's purchase of Energy Future Holding's 80% interest in Oncor, the biggest power provider in Texas, in a deal valued then at $18.4B, two transactions that would give NEE complete ownership of the Oncor Electric Delivery electricity transmission business.
- NEE also says Q3 earnings fell 14% Y/Y amid higher expenses and as earnings growth in its Florida power business was offset by declines in its clean energy business.
Mon, Oct. 31, 7:38 AM
Sun, Oct. 30, 5:30 PM
Wed, Oct. 26, 1:22 PM
- Nuclear power will come to an end in the U.S. if the industry fails to obtain more government support, Carlyle Group predicts.
- U.S. nuclear reactors need more subsidies to keep running, such as a federal carbon tax that would reward them for their zero-emissions power, according to Bob Mancini, co-head of Carlyle's power unit.
- Mancini points to measures approved in New York as an example of the kind of help nuclear power plant owners will need to survive; in August, NY state regulators cleared ~$500M/year in subsidies as part of a clean energy plan to reduce greenhouse gas emissions.
- Relevant tickers include EXC, ETR, DUK, D, NEE, SO, PCG, ED, EIX, AEP, PPL, DTE, FE, NRG, PNM, POR, SCG, WR, XEL, LNT, GE, URA, NLR
Mon, Oct. 17, 12:58 PM
- NextEra Energy Partners (NEP +0.9%) is upgraded to Buy from Neutral with a $31 price target at UBS, which notes that shares have sharply underperformed peers and its NextEra Energy (NEE +0.2%) parent since the Sept. 8 equity offering.
- While UBS appreciates that liquidity in tandem with the offering may explain the move in part, it thinks the pressure is inappropriate.
- Trading just above its distributable cash flow of ~$25/share (when discounted at 6%), the premium is similar to other peers despite its premium portfolio, best-in-sector sponsor and conservative financing.
Fri, Oct. 14, 3:03 PM
Wed, Oct. 12, 8:34 AM
- The amount of electricity generated by U.S. nuclear reactors hit its lowest seasonal level since 2006, held down by malfunctions and closures tied to Hurricane Matthew as well as routine maintenance.
- The outages mean natural gas use by generators likely will rise as grid operators rush to replace lost supplies at a time of unseasonably warm temperatures, which could boost power prices.
- Among the plants shuttered was Dominion's (NYSE:D) Surry 2 nuclear power plant in Virginia, which closed due to a system error, and NextEra Energy's (NYSE:NEE) St. Lucie 2 reactor in Florida, which went offline as a safety measure ahead of the hurricane.
- The closures come as 23 nuclear units, accounting for ~23% of total U.S. capacity, are scheduled to close to replace spent fuel rods in the three months through November.
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP
Thu, Oct. 6, 5:19 PM
- NextEra Energy's (NYSE:NEE) Florida Power & Light unit, which serves roughly half of the state's population, says that as many as 1.2M customers could lose power from Hurricane Matthew as it swirls along Florida's east coastline.
- FPL says it has spent more than $2B since 2006 to make its grid more resilient to storms and to shorten the time it takes to bring power back online, but this storm is "breaking a little bit of new ground. Some of this is unknown," University of Florida energy expert Ted Kury tells CNBC.
- While Kury does not expect the state's utilities to face serious threats to their power generation or transmission systems, he foresees problems with the distribution system; while some power lines in inland areas are underground, they remain above ground in many parts of coastal Florida.
- FPL operates two nuclear power plants in Florida: The Turkey Point Power Plant in Miami-Dade County is located just outside the storm's path, but the St. Lucie Power Plant is within the area that could experience hurricane-force winds and storm surge.
- Florida has no oil refineries, and the storm is not expected to affect the refinery-dense Gulf of Mexico.
Thu, Oct. 6, 3:16 AM
- Millions of Americans are heading for higher ground as Hurricane Matthew barrels toward the Florida and South Carolina coasts and the death toll from the monster storm climbed to at least 26.
- Florida Gov. Rick Scott said 1,500 National Guard members had been activated and he asked President Obama to declare a federal emergency in 26 counties.
- Related stocks: CB, ALL, PGR, TRV, GNRC, NEE, CCL, RCL, DIS, SEAS
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.
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.