Although Exelon could be forgiven for swearing off future deals after enduring a painfully drawn-out approval process for its acquisition of Pepco, the management team has expressed an appetite for another merger. If the company completed due diligence on an alternative acquisition, a follow-up deal could come sooner than you might expect.
Our favorite electric utilities should be able to accelerate their earnings and dividend growth rates, thanks to growing adoption of renewable energy and utilization of gas-fired power plants. And unlike previous periods of growth, the latest boomlet doesn't involve taking on significant operating risk.
SolarCity Corp continues to lose more money with each incremental sale. Meanwhile, electric utilities can leverage their low cost of capital, existing customer relationships and ability to recover capital expenditures in rate base to spur adoption of renewable energy.
We highlight some of the key investment themes that stood out after three days of presentations and talking to management teams at the Edison Electric Institute's annual financial conference, one of the premier events for utility analysts and industry insiders.
After the first day of presentations and meetings at the Edison Electric Conference's 50th Annual Financial Conference, one theme stands out: increasing adoption of solar power doesn't sound the death knell for regulated electric utilities. In fact, this would-be disruptor creates a huge growth opportunity for incumbent power producers.
Up until midyear, investors couldn’t get enough of yieldcos—a new generation of spin-off that offers a similar investment proposition to some master limited partnership (MLP), minus the tax advantages. We explain why investor sentiment toward yieldcos has soured.
The Dow Jones Utilities Average has been under pressure since late January 2015, when concerns about the Federal Reserve raising interest rates gave investors a reason to take profits and put the brakes on a rally that had pushed the index to a record high.
Although utility stocks caught a bid in early July, recent weakness in the broader market has hit the sector, leaving the index at roughly the same level as a year ago.
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