Seeking Alpha
 

American Electric Power Company Inc (AEP)

- NYSE
  • May. 28, 2014, 6:11 PM
    • American Electric Power (AEP), the biggest U.S. operator of coal-burning power plants, may decide later this year or early next whether it will follow Duke Energy by selling plants in the Midwest, CEO Nick Akins tells Bloomberg.
    • Without more earnings stability, such as long-term agreements with power buyers, Akins says AEP will look to sell the Generation Resources unit, which doesn’t get guaranteed returns like its regulated business.
    • The unit owns ~10K MW of power plant capacity, but Akins says his promise of 4%-6% annual growth in per-share profit for the company doesn’t hinge on those power plants.
    | Comment!
  • May. 23, 2014, 6:35 PM
    • Regional transmission organization PJM says its recent auction to procure power supplies for 2017-18 resulted in a clearing price for resources - which includes generation, annual demand response and energy efficiency - which rose to $120/MW-day for most of its deliverability area.
    • PJM, which coordinates the movement of wholesale electricity in all or parts of 13 states and D.C., says the auction continued an overall trend toward more gas-fired generation and increasing diversity of resources.
    • PPL, Exelon (EXC), American Electric Power (AEP), Duke Energy (DUK), Dominion Resources (D) and FirstEnergy (FE) are all up ~1% AH.
    • Earlier, Barclays downgraded the entire electric sector of the U.S. high-grade corporate bond market to underweight, saying it sees long-term challenges to electric utilities from solar energy which aren't yet priced in.
    • ETFs: XLU, LQD, IDU, VPU, CORP, CFT, UPW, FUTY, RYU, FXU, QLTA, SDP, IGHG, COBO, IGS, CBND, IGU, QLTB
    | 3 Comments
  • May. 23, 2014, 5:36 PM
    • Top gainers, as of 5:15 p.m.: IMPV +5.2%. REDF +3.9%. PPL +2.1%. EXC +2.1%. AEP +2.0%.
    • Top losers, as of 5:15 p.m.: DRTX -5.0%. MRVL -2.3%. END -1.9%. EJ -1.9%. DNDN -1.8%.
    | Comment!
  • May. 19, 2014, 12:38 PM
    • Following a winter of forced power outages, Ohio's Public Utilities Commission is urging federal regulators to audit power generators’ claimed capabilities.
    • Heavy winter use strained the capacity of regional transmission organizations and electric companies such as American Electric Power (AEP -2.7%) and led to, at times, 22% (40K MW) of forced outages for generating capacity vs. the average rate of 7%.
    • The Ohio group says the increased outage rates are proof that generating units are not being properly maintained to ensure that they work during peak demand.
    | 4 Comments
  • Apr. 25, 2014, 10:29 AM
    • American Electric Power (AEP +1.7%) shares hit all-time highs after reporting Q1 earnings surged 54% thanks to "the coldest temperatures in 35 years," which led to strong residential and commercial demand.
    • AEP says it saw improvement across residential and commercial customer classes, even if demand is adjusted for the weather.
    • Overall utility margins increased 13% to $1.5B on favorable rate decisions and lower temperatures.
    • Raised 2014 EPS guidance to $3.35-$3.55 vs. $3.35 analyst consensus estimate and prior guidance of $3.20-$3.40.
    | 4 Comments
  • Apr. 25, 2014, 6:59 AM
    • American Electric Power (AEP): Q1 EPS of $1.15 beats by $0.22.
    • Revenue of $4.6B (+20.1% Y/Y) beats by $560M.
    • Press Release
    | Comment!
  • Apr. 25, 2014, 12:05 AM
  • Apr. 24, 2014, 5:30 PM
  • Jan. 27, 2014, 10:08 AM
    • American Electric Power's (AEP +0.5%) net profit jumps to $346M from $21M a year earlier, with growth at many of its utility operations and benefits from rate decisions helping to outweigh the effect of customer losses after it sold its Ohio business.
    • In Q4 2012, higher expenses from storm restoration, warmer weather and lower grain exports dragged down AEP's utility ops.
    • Overall utility margins rose 4.4% to $2.19B in Q4 2013, helped by favorable rate decisions.
    • AEP affirmed its 2014 guidance for operating EPS of $3.20-3.40 vs consensus of $3.33. (PR) (Previous)
    | Comment!
  • Jan. 27, 2014, 7:01 AM
    • American Electric Power Company Inc (AEP): Q4 EPS of $0.60 beats by $0.03.
    • Revenue of $3.8B (+5.6% Y/Y) beats by $270M.
    • Press Release
    | Comment!
  • Jan. 27, 2014, 12:05 AM
  • Jan. 26, 2014, 5:30 PM
  • Jan. 3, 2014, 2:33 PM
    • Credit Suisse suggests investors own utilities boasting good visibility to growth through capital expenditure programs, supportive regulation where the risk of cuts in return on equity is lower, and rate case stay-out protections that lower potential for regulatory intervention; to that end, its favorite utilities into the new year are CMS Energy (CMS), American Electric Power (AEP), NextEra Energy (NEE), Northeast Utilities (NU) and Dominion Resources (D).
    • Elsewhere in the sector, CS cuts EPS estimates for Entergy (ETR) after the utility received an order in Arkansas pointing to a 9.3% ROE vs. 10.4% requested, which will sustain questions about ETR's ability to execute on its growth strategy; the firm also lowers its EPS outlook for Con Ed (ED) after reaching a broad settlement on electric, gas and steam cases with a 9.2% ROE on electric and 9.3% for steam and gas.
    | 2 Comments
  • Dec. 23, 2013, 10:47 AM
    • "Subsidies and falling technology costs are making distributed solar power cost-competitive [and] as more people switch to solar, utilities sell less electricity to those customers [causing the] utilities [to] spread their high fixed costs ... over fewer kilowatt-hours, making solar power even more competitive and pushing more people to adopt it," WSJ's Liam Denning notes, describing what is dubbed "the death-spiral thesis" for traditional utilities.
    • Denning says it's the merchant generators (like NRG) that have the most to worry about: "For regulated utilities, the idea that solar panels will enable everyone to leave the grid, making such networks redundant, is overstated."
    • Although the threat may seem distant for now, Denning says it's worth taking seriously if you're an investor. "The gyres may look exceedingly wide, but that spiral is taking shape," he says.
    • Some individual names: Southern Company (SO), Edison International (EIX), Duke Energy (DUK -0.1%), FirstEnergy (FE -0.7%), XCel Energy (XEL +0.2%), American Electric Power (AEP -0.2%), Dominion (D -0.2%), Exelon (EXC +0.5%).
    • ETFs: XLU, IDU, VPU, RYU, PUI, UPW, FXU, SDP, PSCU, FUTY, UTLT
    | 48 Comments
  • Dec. 11, 2013, 3:08 PM
    • Deutsche Bank is out with some commentary on the utilities going into year-end.
    • Analyst Jonathan Arnold says that with the group "set to finish the year last among sectors for the second straight year, it is surely tempting to argue for a rebound in 2014."
    • Nevertheless, Arnold thinks that "with the Fed exit still [upcoming] and a continuing overhang from challenging power business fundamentals, investors have plenty of reason to proceed with caution."
    • Rundown: ETR cut to Hold from Buy, price target cut to $64 from $70; DUK reiterated at Buy, price target hiked to $76 from $74; PCG reiterated at Buy, price target cut to $46 from $48.50; CPN reiterated at Buy, price target cut to $23 from $24; AEP reiterated at Hold, price target raised to $50 from $48; D reiterated at Hold, price target raised to $66 from $64; DTE reiterated at Hold, price target lifted to $72 from $71; NU reiterated at Hold, price target lifted slightly.
    | Comment!
  • Nov. 18, 2013, 12:08 PM
    • American Electric Power (AEP +0.9%) gets an upgrade to Overweight from Equal-Weight at Morgan Stanley.
    • "We believe the company delivered on its promise to provide investor clarity over the next several years and highlighted that its transition to more of a regulated utility is progressing well," analyst Stephen Byrd says, hiking his price target to $52 from $44.
    • Earlier this month at the Edison Electric Institute Financial Conference, AEP updated its guidance for EPS and capital budgeting.
    | Comment!
AEP vs. ETF Alternatives
Company Description
American Electric Power Co Inc is a public utility holding company, through its subsidiaries, provides electric service, consisting of generation, transmission and distribution, on an integrated basis to its retail customers.
Sector: Utilities
Country: United States