Tue, Sep. 1, 12:49 PM
- NextEra Energy (NEE -2.7%) and Hawaiian Electric (HE -2.7%) pledge 50 new commitments as part of their proposal to merge that they say would accelerate Hawaii’s goal of getting all of its power from renewable resources.
- The companies say the commitments, filed with the Hawaii Public Utilities Commission, strengthen the benefits the merger will produce for customers, saving them nearly $465B plus ~$500M in economic benefits to the state in the first five years after the merger closes; NEE also says it will maintain HE’s charitable donations and keep the utility locally managed.
- NEE has faced rising state opposition to its $2.63B takeover of HE; Hawaii's governor has said he was against the deal because it failed to align with the state’s goal of 100% renewable power, and the state's consumer advocate has said the deal is not in the public interest.
Mon, Jun. 29, 11:38 AM
- Coal stocks (KOL +0.3%) are rallying after the Supreme Court threw out the EPA’s first-ever rules requiring coal-fired power plants to cut emissions of mercury and other toxic air pollutants, saying the agency should have weighed the cost of compliance in deciding whether to regulate.
- The ruling means the EPA must go back to the drawing board, which possibly could push any new emissions rules past Pres. Obama’s time in office.
- Coal companies are enjoying hefty gains: WLT +28.2%, ACI +15.1%, BTU +11.2%, ANR +5.4%, CLD +5.2%, RNO +3.9%, WLB +1.9%, CNX +1.4%.
- Select utility names also are seeing some strength: AEP +1%, PCG +0.9%, D +0.6%, NEE +0.6%, EXC +0.3%.
Thu, Jun. 18, 3:28 PM
- NRG Yield (NYLD -1.6%) has agreed to acquire a 25% interest in the massive new Desert Sunlight Solar Farm in southern California from GE for $285M plus $287M in project debt.
- NYLD says the acquisition provides a total ownership of 137.5 MW of operating solar capacity, and it expects the deal to increase the annual run-rate EBITDA by ~$45M and cash available for distribution by ~$22M by 2016.
- The deal puts NRG in a partnership with NextEra Energy (NEE +1.5%) and Japan’s Sumitomo, who are respective 50% and 25% owners of Desert Sunlight.
Wed, Jun. 10, 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%.
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
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%. | May 30, 2013, 11:17 AM | 5 Comments
Mar. 12, 2013, 2:29 PMNextEra Energy (NEE -2%) shares slide after the company's just-released 8-K says adjusted 2013 adjusted EPS should come in at $4.70-$5 vs. $4.95 analyst consensus and expects 2014 adjusted EPS of $5.05-$5.45 vs. $5.33 analyst consensus. Says it may issue $1.5B in stock in 2014. | Mar. 12, 2013, 2:29 PM | 1 Comment
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