Wed, Aug. 17, 9:18 AM
- Southern (NYSE:SO) trades lower after pricing its 32.5M share offering at gross proceeds of $1.6B or about $49.23 per share.
- Funds are earmarked to help pay for the acquisition of a 50% stake in one of Kinder Morgan's natural gas pipelines.
- Previously: Southern commences 32.5M-share offering for ~$1.6B (Aug. 16)
- SO -1.43% premarket to $50.22.
Tue, Aug. 16, 4:42 PM
- Southern Co. (NYSE:SO) -1.5% AH after announcing an 32.5M-share public offering of common stock for ~$1.6B of expected gross proceeds, implying an offering price of ~$49.24/share.
- SO says the proceeds from the offering will be used to fund part of the pending purchase of a 50% equity interest in Southern Natural Gas and for other general corporate purposes.
Wed, Jul. 6, 3:22 PM
- SunPower (SPWR +3.4%) is higher after announcing a deal to sell a controlling equity interest in the 102 MW Henrietta Solar Project in southern California to Southern Co. (SO +0.2%) for an undisclosed amount.
- SPWR began construction on the project in May 2015 and is expecting to complete work by the end of the year.
- PG&E (PCG +0.6%) will purchase the electricity and associated renewable energy credits generated by the facility under a 20-year power purchase agreement.
- The project will integrate several unique innovations such as robotic cleaners for the solar panels that use 75% less water than traditional cleaning methods and can help improve system performance by up to 15%.
- SPWR also enjoys a boost from a UBS upgrade to Buy from Neutral, which says the stock's recent pullback is overdone.
Mon, May 16, 1:09 PM
- Kemper County Energy Facility in Mississippi, once envisioned as a showcase for clean coal technology, instead remains a costly mess for Southern Co. (SO -0.2%), which now faces an SEC investigation, a lawsuit from unhappy customers and a price tag that has more than doubled to $6.6B, WSJ reports.
- The SEC is looking into SO’s financial controls and disclosures for Kemper amid claims by a former project manager that it misled the public about how long construction would last.
- On Friday, SO’s credit rating also was downgraded by Moody’s, because of its purchase of a gas utility as well as cost overruns for the Kemper project and new nuclear reactors it is building in Georgia.
- Kemper has been producing electricity since 2014, but by burning natural gas instead of coal while work continues on the plant’s two coal gasifiers; SO said last week that it completed repairs to refractory material in one gasifier and is making progress on another.
- Now read Southern expects Kemper plant finally to convert coal to gas this summer
Thu, May 5, 4:37 PM
- Southern Co. (NYSE:SO) -1.7% AH after announcing a public offering of 18.3M common shares, through which it expects to raise ~$900M in gross proceeds.
- SO says it plans to use the proceeds to fund part of the purchase price for the pending acquisition of AGL Resources (NYSE:GAS) and related transaction costs and for other general corporate purposes.
- Earlier today, SO and AGL announced a merger settlement with all parties in New Jersey, and said the only remaining regulatory approvals required to close the deal are the New Jersey Board of Public Utilities and the Illinois Commerce Commission.
Wed, Feb. 24, 6:12 PM
- PowerSecure International (NYSE:POWR) +77.8% AH after agreeing to be acquired by Southern Co. (NYSE:SO) for $18.75/share in cash, a 90% premium to today's closing price.
- SO says it expects the ~$431M deal to expand its ability to provide customized energy products to customers.
- SO has been expanding through acquisitions, including its ~$12B deal for AGL Resources, which is expected to close in H2 of this year.
Wed, Feb. 3, 2:29 PM
- Southern Co. (SO -1.8%), up throughout the morning despite mixed Q4 results and news of continued cost overruns at its Kemper County clean coal plant, has turned sharply lower after delivering below consensus earnings guidance during its conference call.
- SO now sees Q1 EPS of $0.53 vs. $0.59 analyst consensus estimate and FY 2016 EPS of $2.76-$2.88 vs. $2.94 consensus.
- SO also forecasts $7.3B in capital spending for 2016, $5.2B for 2017, and $5.5B for 2018.
- Investor presentation
Tue, Jan. 12, 3:02 PM
- Morgan Stanley upgrades the regulated utilities industry to In-Line from Cautious, believing the market will better differentiate high-growth names from others in 2016 and that the valuation gap between undervalued public companies and overvalued private companies will begin to close.
- The firm names Dynegy (DYN -2.7%) its top overall pick in the space, but also remains Overweight on NRG Energy (NRG -2.7%) and Calpine (CPN -4.5%), while maintaining its Underweight rating on Consolidated Edison (ED -1.5%), Southern Co. (SO -0.9%) and Public Service Enterprise (PEG -0.5%).
- Stanley also downgrades Laclede (LG -1.9%) and Pinnacle West (PNW -2.4%) to Underweight from Equal Weight.
Dec. 18, 2015, 11:29 AM
- Canadian Solar (CSIQ +2.6%) is once more partnering with utility Southern Co. (NYSE:SO), this time to build a 200MW solar plant in Kern County, CA. Southern is acquiring 51% of the project's equity; Canadian will maintain a 49% stake.
- Canadian will contribute to the project via its Recurrent Energy unit, which it bought from Sharp for $265M earlier this year. Recurrent has lined up $480M in project financing from five banks.
- In August, Canadian sold to Southern a 51% stake in a 200MW Fresno County, CA project. In November, it sold a 51% stake in a 157MW Texas project.
Jun. 24, 2015, 3:19 PM
- Chicago Bridge & Iron (CBI -1.9%) is maintained with an Underperform rating and $30 price target by Macquarie, which sees news on nuclear flow continuing to be negative with the likelihood of further project delays.
- The firm notes that milestone activities related to Southern's (NYSE:SO) Vogtle nuclear plant have continued to slip, with only 23.7% of construction completed as of April; CBI CFO Michael Taff has said cost overruns would be borne by partner Westinghouse, but Macquarie thinks that is unlikely and CBI will be held partially responsible.
- While some delays may be related to reactor design amendments, the project schedule also is impacted by "required repair work on... legacy modules from Lake Charles," which the firm says "further confirms that CBI will be held partially responsible."
Jun. 10, 2015, 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%.
Feb. 13, 2015, 2:57 PM
- Southern Co. (SO -1.8%) says it is reviewing its options after the Mississippi Supreme Court yesterday threw out a key part of a financing plan for the Kemper County clean-coal power project, the second setback this month for the over-budget plant.
- The court ordered SO to return $281M to customers it said had been improperly charged to pay for the plant, and told regulators to reconsider how to pay for the $6.2B project, the most expensive coal plant in history.
- SO already has taken more than $1B in charges for Kemper, which is meant to turn low-grade coal into a gas that would be burned to make electricity; the project is about two years behind schedule but scheduled to be finished next year.
Feb. 4, 2015, 2:18 PM
- Southern Co. (SO -2%) drops sharply after management says during its earnings call that it sees Q1 2015 EPS of $0.55 and full-year 2015 EPS of $2.76-$2.88, below consensus estimates of $0.59 and $2.87, respectively.
- SO reported earlier that its Q4 earnings matched analysts' projections while its revenues easily beat them, as it enjoyed positive retail revenue effects at its traditional operating companies that were offset by an 11% increase in maintenance and operating expenses to $3.46B.
- Q4 residential energy kilowatt-hour sales and commercial energy sales fell slightly, but industrial energy sales and total energy sales rose.
- Unadjusted results included a $43M loss related to the delayed clean coal plant project in Kemper County, Miss., whose costs had grown to $6.13B through November.
- CEO Tom Fanning says the company will hold off on pushing for a new nuclear power project until it resolves issues in the delayed nuclear expansion of Plant Vogtle in Georgia.
Jan. 30, 2015, 10:35 AM
- Southern Co. (SO -1.7%) says the firms building its new nuclear power plant in Georgia estimate the project will be delayed 18 months, potentially costing it $720M in new charges.
- Westinghouse Electric and Chicago Bridge & Iron (CBI -12.2%) expect the first reactor at Plant Vogtle will be complete in mid-2019, and the second reactor will come online in mid-2020, SO says in an SEC filing; SO already has been in litigation with the two companies over previous delays and cost increases.
- SO does not tally its total costs in the filing but says each month of a delay would cost $40M in new capital and financing charges; if the project stretched an additional 18 months, the total could grow to $720M.
- Deutsche Bank comments that the further delay to be particularly negative for CBI shares and potentially remain an overhang over the near term, given that it may take more than a year to resolve the dispute.
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
Sep. 18, 2014, 12:53 PM
- Banks, insurers, brokerages and anything else starved for yield continue to gain following yesterday's FOMC news. Among the gainers are Bank of America (BAC +1.9%) - which breaks above $17 for the first time since April - Citigroup (C +2.7%), Wells Fargo (WFC +1.1%), PNC (PNC +1.1%), Fifth Third (FITB +1.7%), SunTrust (STI +1.2%), Schwab (SCHW +2.3%), Prudential (PRU +2.5%), and Lincoln National (LNC +2.4%).
- The XLF +1.2%, KBE +1.5%, and KRE +2%.
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, RYF, KRS, FINZ
- Lit up bright red is the utility sector (XLU -1%), led by Southern Company (SO -1.1%), Dominion Resources (D -1.2%), Duke Energy (DUK -1.4%), and Pinnacle West (PNW -1.9%).
- Utility ETFs: XLU, IDU, VPU, UPW, RYU, FUTY, PUI, FXU, SDP, PSCU
The Southern Co. operates a holding company, which constructs, acquires, owns, and manages generation assets and sells electricity in the wholesale market. It operates its business through Alabama Power Co., Georgia Power Co., Gulf Power Co., Mississippi Power Co.,. Alabama Power is engaged in... More
Industry: Electric Utilities
Country: United States