Mon, Mar. 16, 3:58 PM
- NextEra Energy (NEE +2.4%) is upgraded to Buy from Hold with a $113 price target at Deutsche Bank, as the stock is off ~10% from its late January peak and is now at a solid entry point.
- While NEE remains positioned selectively in a difficult macro environment for utilities with looming Fed rate hikes, the sharp six-week pullback presents the opportunity to buy a high quality consistent EPS grower at a more reasonable valuation, the firm says.
- NEE offers ~8% EPS and distribution per share growth over the past 10 years, plus a well articulated plan with multiple contingencies in place, to support 5%-7% EPS and DPS growth over the next four years, Deutsche Bank says.
Dec. 3, 2014, 5:13 PM
- NextEra Energy (NYSE:NEE) and Hawaiian Electric (NYSE:HE) agree to merge in a deal valued at $4.3B including the assumption of $1.7B in HE debt.
- HE also plans to spin off its ASB Hawaii banking subsidiary to HEI shareholders and establish it as an independent publicly traded company.
- NEE says the deal expands its regulated holdings and further balances its earnings mix, and is expected to be neutral to EPS for NEE shareholders in the first full year post-close and accretive thereafter.
- The total value to HEI shareholders is estimated at $3.5B, or ~$33.50/share.
- HE +11.4% AH.
Nov. 12, 2014, 2:14 PM
- Utility stocks, among the year’s top performing sectors in the market, are sharply lower today - a bad sign, says Weeden & Co. head researcher Michael Purves, who believes now is the time to reduce or hedge utility holdings such as the Utilities Select Sector SPDR Fund (XLU -1.9%).
- Ultra-low bond yields have made utility stock payouts look good by comparison., but valuations have been moving up; Purves says the rally has put XLU’s P/E ratio for the next 12 months at 17.4x, near a 10-year high.
- Investors ought to “start to take profits, given the run was getting long in the teeth,” Purves writes.
- The top 10 XLU holdings are all lower today: DUK -2.5%, NEE -1.7%, D -1.9%, SO -1.4%, EXC -2.8%, AEP -2%, SRE -1.7%, PPL -1.8%, PCG -1%, PEG -2.8%.
- Other ETFs: IDU, VPU, UPW, RYU, FUTY, FXU, PUI, SDP
Oct. 8, 2014, 12:39 PM
- EQT Corp. (EQT -1.4%) and NextEra Energy (NEE +1.6%) say their pipeline joint venture has landed firm commitments for nearly all the listed capacity in its proposed Mountain Valley Pipeline, allowing the project to move forward.
- The 300-mile pipeline will tie into the Equitrans system in West Virginia and carry natural gas from the Marcellus and Utica shale fields into Virginia, serving the mid-Atlantic and southeastern U.S. markets.
- The companies say commitments were secured through 20-year deals to equal the proposed 2B cf/day of capacity, and they are extending the binding open season until Oct. 10 because of continued interest from shippers.
Jun. 25, 2014, 2:27 PM
- NextEra Energy (NEE +0.6%) subsidiary Florida Power & Light says it is partnering with PetroQuest Energy (PQ +7.2%) on a new venture to develop up to 38 natural gas production wells in Oklahoma.
- PQ will oversee and operate the wells, while FPL will receive a portion of the natural gas produced from each well for its use.
- FPL is asking Florida's Public Service Commission to approve guidelines for future natural gas production projects to allow it to invest in natural gas production "at the source rather than paying full market prices," adding that it projects customer savings of up to $107M over the life of the first project.
Jun. 3, 2014, 12:45 PM
- EPA chief Gina McCarthy says she expects for significant changes in proposed state emission goals before a final rule is issued next year if the individual states show they can’t meet the targets.
- McCarthy says the agency made changes when developing its rules on mercury pollution in 2012 after utilities complained, and says she "wouldn’t be surprised if we made significant” revisions to the carbon proposal.
- McCarthy notes "confusion" around the targeted 30% emission cuts, saying it’s not a goal of the plan but an estimate of what the EPA thinks can be achieved.
- Coal names are broadly lower: WLT -4.4%, ACI -3.7%, ANR -2%, ARLP -1.9%, CNX -1.3%, CLD -0.3%, BTU -0.2%.
- Big utilities are mostly higher: EXC +1.6%, AEP +1%, NRG +0.7%, D +0.5%, XEL +0.4%, SO +0.3%, PEG +0.2%, NEE +0.1%, DUK -0.2%
- ETFs: XLE, XLU, TAN, ERX, KOL, IDU, VDE, OIH, ERY, FCG, VPU, DIG, KWT, GASL, DUG, IYE, GASX, PXJ, RYE, FENY, UPW, RYU, FUTY, FXN, FXU, DDG, SDP
Oct. 31, 2013, 4:33 PM
- First Solar (FSLR) attributes its blowout Q3 in part to initial revenue recognition for its 550MW Desert Sunlight solar project (California), and from the sale of its 50MW ABW project (Canada).
- Also helping: Gross margin rose 170 bps Q/Q and 30 bps Y/Y to 28.8%. First Solar has hiked its full-year gross margin guidance range to 24%-26% from 22%-23%.
- Nonetheless, 2013 operating cash flow guidance has been lowered to $700M-$900M from $800M-$1B. Capex guidance has been lowered to $300M-$350M from $350M-$400M.
- Along with its Q3 results, First Solar announces it's selling its 250MW Silver State South project (Nevada, previous) to a NextEra Energy (NEE) unit. Terms are undisclosed.
- Expected future module shipments are now at 2.7GW, up from 2.2GW at the end of Q2 and 2.6GW at the end of 2012. 860MW of incremental bookings were achieved in Q3, partly offset by ~300MW of shipments.
- Expects future systems/module revenue is at $7.8B, up from $7.6B at the end of Q2 and down from $8B at the end of 2012. Potential opportunities stand at 7.7GW, down 300MW Q/Q.
- FSLR remains halted, shares resume trading at 4:35PM ET. SPWR +2% AH. SCTY +3.1%.
- Q3 results, PR, slides
Oct. 16, 2013, 8:35 AM
- First Solar (FSLR) +1.9% premarket agrees to construct a 250 MW solar power plant in Riverside County, Calif., for a subsidiary of NextEra Energy (NEE).
- The McCoy Solar Energy Project is located near the 550 MW Desert Sunlight Solar Farm, jointly owned by a subsidiary of NEE, GE Energy and Sumitomo, currently under construction by FSLR.
- Construction on the new project is expected to begin in late 2014, with completion in late 2016.
Sep. 20, 2013, 8:26 AM| Comment!
Jul. 5, 2013, 10:58 AM
May 30, 2013, 11:17 AMUtilities are getting a bit of a reprieve after taking a beating over the past few days. Option implied volatility has been increasing as investors rotate out of high dividend yield positions in the wake of a rise in treasury yields: AEE +1.7%, D +0.3%, DTE +1.9%, EIX +0.6%, ETR +1.3%, EXC +0.7%, FE +0.9%, NEE +1.7%, PEG +0.8%, PPL +0.5%, SRE +1.3%, TE +0.5%, AEP +0.8%, DUK +0.6%, ED NU +1.6%, PCG +1.2%, SO +0.4%, XEL +1.3%. | 5 Comments
Mar. 12, 2013, 2:29 PM
Feb. 28, 2012, 2:56 PMPetroquest Energy's (PQ +4%) Q4 earnings rose 16% while revenues fell 12%, but both topped Wall Street estimates amid lower expenses for lease operating and interest, and a tax benefit. Sterne Agee believes news that PQ's JV with Next Era (NEE) will be expedited and that development plans at La Cantera are on track will be well received by investors. | Comment!
Jan. 17, 2012, 10:46 AMThe continuing decline in natural gas (off 6.9% today) and resultant fall in electricity prices is shelving alternative energy projects from NextEra (NEE), Exelon (EXC), and CMS, but Michael Morris of American Electric Power (AEP) warns about becoming too dependent on gas. "The way to make $4 gas, $8 gas is for everyone to go out and build ... natural-gas plants." | 5 Comments
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