Sat, Jan. 24, 8:25 AM
- In a low-yield world, the newly launched iBillionaire High Dividend Index - which tracks the trading moves of 25 investing-savvy billionaire investors such as Stanley Druckenmiller, James Dinan and Nelson Peltz - actually lives up to its name with a dividend yield of 5.34%.
- At 24%, the index has a high allocation of energy shares, including OXY, TRP, CNP, COP, BP, ATLS, CVI, WMB, APL, RIG and ARP.
- Also worth noting is that the index contains some high-yielding mortgage REITs, an area most investors hate right now but where billionaires seem to find value; examples are NRF, AGNC and CIM.
- No mutual fund or ETF tracks this index, but it offers a fishing pond of income investment ideas to research further.
- The top 20 holdings: TLM, CVC, GM, TIME, AEE, D, STAY, KMI, TROX, EXC, STNG, PPL, IRM, PFE, KKR, KAR, F, MIC, LO, ABBV.
Wed, Jan. 14, 5:56 PM
- The settlement, which still requires the approval of the BPU's commissioners, would provide $62M in bill credits for Atlantic City Electric customers, an energy efficiency program, and commitments to improve the utility's reliability performance.
- The proposed merger requires approvals of regulators in Delaware, Maryland and D.C.; the FERC and Virginia regulators already have approved it.
Mon, Jan. 12, 3:39 PM
- Exelon (NYSE:EXC) praises the findings in last week's report from Illinois officials that examined the potential impacts if three of its financially troubled nuclear plants in the state were to shut down, saying the report supports its assertions about the need for state action to avoid plant closures.
- EXC notes the report said that closing the three Illinois nuclear plants at greatest risk of early retirement would cost $1.8B/year in lost economic activity and more than 7,800 job losses, and that wholesale electricity costs in the northern Illinois region served by ComEd would rise by up to 9.9%, or $437M, in the first year.
- But the company's critics say the report generally supports the idea that Illinois can weather nuclear plant closures, and that EXC is not in crisis or deserving of government bailouts.
- Illinois is the top U.S. producer of nuclear energy, with six nuclear plants housing 11 reactors run by EXC.
Sat, Jan. 10, 8:25 AM
- Kinder Morgan (NYSE:KMI) tops Credit Suisse's list of its nine favorite energy and utility stocks to own for 2015, believing KMI’s recent MLP acquisitions will lower the company’s cost of capital and open the door for double-digit dividend growth and additional potential acquisitions.
- Noble Corp. (NYSE:NE) is the top pick among offshore drillers, despite the fact that analysts don’t believe the inflection point in the drilling down-cycle is coming until at least 2016; fulfilling the firm's $30 price target would mean nearly 90% upside.
- Also recommended: SUNE, EXC, RDS.A, RDS.B, TSO, DVN, PDCE, SLB.
- SandRidge Energy (NYSE:SD) is one of Credit Suisse's five energy and utility stocks to avoid despite an upbeat quarterly report, believing the risk associated with SD’s extremely high leverage likely will lead to significant capex cuts, thus limiting production growth and cash flows.
- The firm also would avoid CVRR, SFY, YGE and SO.
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. 29, 2014, 8:04 AM
Oct. 28, 2014, 5:30 PM
- ACCO, ADP, AIT, ALKS, ALLY, AMED, ARW, AUO, AVX, BAH, BDC, CCJ, CFR, CKSW, CMC, COT, CTCM, DXYN, ETN, EVER, EXC, GHM, GRMN, GT, H, HES, HSY, IACI, ISSI, JLL, LFUS, MHFI, MRGE, MTH, NVMI, OMG, PAG, PB, PSX, PSXP, PX, RES, RL, ROL, RYAM, SEE, SKYW, SO, SODA, SPW, SPWR, STM, TEL, TFX, UAM, UBSI, VLY, WEC, WLP, WM, XRAY
Oct. 21, 2014, 12:47 PM
Oct. 8, 2014, 4:57 PM
- Pepco (NYSE:POM) is one step closer to its $6.8B merger with Exelon (NYSE:EXC) after winning approval from the Virginia State Corporation Commission.
- The deal required approval by state regulators because Pepco and Delmarva Power utilities previously served distribution customers in Virginia and still own a small amount of transmission infrastructure in the state.
- The proposed merger still needs approval from the FERC and state regulators in Delaware, Maryland, New Jersey and D.C.
Sep. 29, 2014, 12:43 PM
- General Electric (GE -0.8%) wins an order worth more than $500M to provide power generating equipment to Exelon (EXC +0.7%), including four of GE's highest efficiency gas turbines.
- EXC says it is planning to build two combined-cycle gas turbine units in Texas, each adding ~1K MW of capacity to their respective sites, utilizing GE technology that will make them among the cleanest, most efficient CCGTs in Texas and the U.S.
- GE says the H-class turbine being sold to EXC converts ~61% of gas to electricity, and allows for more than $8M/year in fuel savings per gas turbine compared to the older F-class technology.
Aug. 25, 2014, 8:44 AM
- Calpine (NYSE:CPN) agrees to purchase the 809 mw, combined-cycle Fore River Generation Station power plant and related plant inventory from Exelon (NYSE:EXC) for $530M, or ~$655/kw.
- CPN says the natural gas-fired plant located in the Boston suburbs will expand its footprint in the New England competitive wholesale power market.
Aug. 9, 2014, 8:25 AM
- Investors who had flocked to utility stocks now may be wondering what went wrong, after the sector was the S&P's worst performer in July.
- Fears of rising interest rates have recently sent dividend-paying stocks and high-yield junk bonds tumbling; utility stocks also have been hurt by the power sector's growing exposure to volatile natural gas prices, which have dropped ~19% since mid-June.
- Some analysts think dividend growth among utilities could slow or even stop, with power demand falling and utilities being forced to spend record amounts on replacing and upgrading aging plants and meeting stricter emission standards; Exelon (NYSE:EXC) and FirstEnergy (NYSE:FE) are big utilities that have cut dividends this year.
- Utilities that auction the power they generate - and are most exposed to moves in gas prices - have fallen the most; NRG and EXC have lost 20% and 13%, respectively, since the end of June.
- Regulated utilities such as Southern Co. (NYSE:SO) and Duke Energy (NYSE:DUK), whose rate changes are more closely controlled, haven't been hit as hard.
- ETFs: XLU, IDU, VPU, NLR, JXI, NUCL, UPW, RYU, DBU, IPU, FUTY, FXU, SDP, UTLT
Jul. 31, 2014, 7:02 AM
Jul. 30, 2014, 5:30 PM
- AAWW, ABMD, ACIW, ACOR, ADP, AGI, ALKS, ALU, AMRC, APA, ASEI, ATK, AVP, AYR, AZN, BDX, BG, BGCP, BKCC, BLL, BUD, BWA, BZH, CCJ, CDW, CEVA, CHTR, CI, CL, CME, CNSL, COMM, COP, COT, CRCM, CRR, CTCM, CVI, CVRR, DDD, DISCA, DLPH, DTV, ENDP, EPD, EXC, FCH, FCN, FIG, FLY, FRM, GEL, GG, GIL, GLOP, GMT, GNRC, GTLS, H, HGG, HL, HP, HST, IDA, IMN, INCY, IRDM, IRM, ITT, IVZ, K, KMT, LKQ, LLL, LM, MA, MCK, MD, MDP, MNTA, MOD, MOS, MPC, MPLX, MSCI, MTOR, MWIV, NGD, NI, NJR, NWL, OAK, OCN, ODFL, OXY, PCG, PCRX, PES, PNR, PNW, PPL, PRFT, PWR, Q, RFP, RYL, SBH, SC, SCG, SFY, SHOO, SNAK, SNMX, STC, STRA, STRZA, SUP, SWC, TE, TEVA, TKR, TRP, TWC, UAN, UPL, USAK, VG, VICL, VNTV, VRX, WLT, WWE, XEL, XOM, XRAY
Jul. 30, 2014, 9:19 AM
- Exelon (NYSE:EXC) agrees to acquire the retail electricity arm of Integrys Energy (NYSE:TEG) for $60M, in an attempt to grow its competitive retail energy supply business.
- Integrys Energy Services, which supplies electricity for 720K Chicago residents, will become part of EXC's Constellation business unit, which would now serve ~2.5M residential and business customers across the U.S.
- In addition to the $60M, EXC will pay adjusted net working capital at the time of closing; Integrys Energy Services had adjusted working capital of ~$183M as of May 31.
- The transaction does not include TEG's energy assets, which are primarily solar.
Jul. 29, 2014, 11:57 AM
- Exelon (EXC -1%) says it will provide equity financing for 21 MW of Bloom Energy fuel cell projects at 75 commercial facilities in California, Connecticut, New Jersey and New York, in a deal that shows the growing interest in fuel cell generators.
- The power buyers include new and repeat blue-chip customers, such as AT&T, which will use the fuel cells to power operations at nine sites.
- EXC and Bloom plan to complete the installations in phases over the next year; when completed, the fuel cells will produce enough clean electricity to power the equivalent of more than 11K homes each year.
- Terms of the transaction are not disclosed.
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