Algonquin Power Completes Sale of Its Renewable Energy Business

Core Viewpoint - Algonquin Power & Utilities Corporation has completed the sale of its non-regulated renewable energy business for up to $2.5 billion, aiming to focus on its regulated utility operations [1][3]. Group 1: Details of the Renewable Business - The renewable business consists of wind and solar assets across the U.S. and Canada, with 44 operating assets generating over 3,000 megawatts (MW) and an 8,000 MW pipeline of projects in development [2]. - Approximately 2,700 MW of the assets are located in the U.S., while 300 MW are in Canada [2]. Group 2: Focus on Regulated Business - The net proceeds from the sale will be used to reduce existing debt and strengthen the company's balance sheet [3]. - This transaction, along with the recent sale of a 42.2% stake in Atlantica Sustainable Infrastructure, is part of the company's strategy to become a simpler, pure-play regulated utility, enhancing its focus on energy transition [3]. Group 3: Stock Price Performance - In the past month, Algonquin Power's shares have decreased by 6.7%, slightly underperforming the industry average decline of 6.6% [5]. Group 4: Zacks Rank and Comparisons - Algonquin Power currently holds a Zacks Rank of 4 (Sell), while competitors NiSource and IDACORP have better rankings at 2 (Buy) [6]. - NiSource's long-term earnings growth rate is projected at 7.45%, with a 2025 EPS estimate indicating a 7.3% year-over-year increase [7]. - IDACORP's long-term earnings growth rate is estimated at 8.31%, with a 2025 EPS estimate showing an 8.3% year-over-year increase [7].