Core Insights - The U.S. Federal Reserve has lowered the interest rate benchmark by 25 basis points to a target range of 3.50-3.75%, marking the third reduction in 2025, aimed at supporting a cooling labor market [1][2] Interest Rate Impact on Utilities - Lower interest rates create a favorable environment for capital-intensive sectors like utilities, which require significant funding for infrastructure and operations [2] - The utility sector has an inverse correlation with interest rates; rate cuts reduce the cost of servicing debt, enhancing profit margins and cash flows for utility companies [3] - As interest rates fall, utility stocks become more attractive to income-focused investors, leading to increased demand for high-dividend sectors like utilities [4] Investment Case for Utilities - The combination of lower financing costs, stable cash flows, and rising electricity demand from AI data centers strengthens the investment case for utilities amid macroeconomic uncertainty [5] - Investing in diversified Utility ETFs is recommended over individual utility stocks to mitigate risks associated with regulatory changes and company-specific issues [6] Utility ETFs Overview - Utility ETFs provide a one-stop solution for investors, offering exposure to a broad range of companies in the utilities sector while ensuring superior liquidity and lower expense ratios compared to actively managed funds [7] Recommended Utility ETFs - **Fidelity MSCI Utilities Index ETF (FUTY)**: Net assets of $2.25 billion, exposure to 67 utility stocks, year-to-date gain of 17.1%, fees of 8 bps [9] - **State Street Utilities Select Sector SPDR ETF (XLU)**: AUM of $22.16 billion, exposure to 31 companies, year-to-date gain of 16.6%, fees of 8 bps [10][11] - **iShares U.S. Utilities ETF (IDU)**: Net assets of $1.78 billion, exposure to 44 companies, year-to-date gain of 15.7%, fees of 38 bps [12] - **Vanguard Utilities ETF (VPU)**: Net assets of $8.3 billion, exposure to 68 companies, year-to-date gain of 17.1%, fees of 9 bps [13] - **Invesco Dorsey Wright Utilities Momentum ETF (PUI)**: Market value of $51.5 million, exposure to 35 companies, year-to-date gain of 16.8%, fees of 81 bps [14][15]

With a market cap of $19.8 billion, NiSource Inc. (NI) operates as a regulated natural gas and electric utility through its Columbia Operations and NIPSCO Operations segments. The company delivers natural gas to approximately 2.4 million customers across several states using an extensive network of distribution and transmission pipelines. Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and NiSource fits this criterion perfectly. NiSource also generates, transmits, ...

For Immediate Release Chicago, IL – December 15, 2025 – Today, Zacks Equity Research Equity areAtmos Energy Corp. (ATO) , Brookfield Infrastructure Corp. (BIPC) and Spire Inc. (SR) .Industry: Utility - GasLink: https://www.zacks.com/commentary/2803777/3-gas-distribution-stocks-to-buy-from-a-challenging-industryNatural gas distribution companies offer services to transport natural gas from the region of production to millions of consumers across the United States. The utilities under the Zacks Utility Gas Di ...

Core Insights - MDU Resource Group, Inc. (MDU) has announced a public offering of $200 million in equity shares through a forward sale agreement structure with major financial institutions [1][8] - The company has granted underwriters a 30-day option to purchase an additional $30 million in common stock [2][8] - Proceeds from the offering will be used for general business purposes, including debt repayment, capital expenditures, and acquiring a 49% stake in the Badger Wind Farm project [3][4][8] Financial Impact - The public offering will provide MDU with a $200 million capital infusion, allowing the company to pursue investment plans without increasing its debt burden [4] - The increase in the number of shares outstanding will dilute earnings per share, adding to the existing 205.3 million shares outstanding as of Q3 2025 [5] Growth Expectations - MDU anticipates utility customer growth at a rate of 1-2% annually and expects a long-term EPS growth rate of 6-8% [6] - The company has raised its capital plan to $3.4 billion for 2026-2030, reflecting ongoing investments in energy infrastructure [6] Stock Performance - Over the past three months, MDU's shares have increased by 19.9%, outperforming the industry's growth of 9.5% [7]

Core Insights - Atmos Energy Corporation (NYSE:ATO) is recognized as one of the 14 best US stocks for long-term investment [1] - Mizuho analyst Gabriel Moreen raised the price target for Atmos Energy to $180 from $170, maintaining a Neutral rating, reflecting the company's strong fundamentals and performance [2] - In Q4 2025, Atmos Energy reported $3.6 billion in capital expenditures, with 87% allocated to safety and reliability, and announced a 15% increase in its quarterly dividend, marking 41 consecutive years of dividend growth [3] Company Overview - Atmos Energy is a Texas-based natural gas distribution company serving approximately 3.4 million customers in the South [4]

Core Insights - The article discusses the best American stocks for long-term investment, emphasizing the shift in investor strategies towards diversification and away from traditional portfolios [1][2] Long-term Investment Trends - A significant portion of investors, approximately 60%, believe that long-term discipline is essential in today's market, with 70% expressing greater patience for investment growth compared to their initial investing experiences [2] - The trend towards dividend investing aligns with long-term strategies, as 80.9% of S&P 500 companies pay dividends, with an average yield of 1.93% among Dow Jones Industrial Average constituents [3] Methodology for Stock Selection - The article outlines a methodology for selecting US companies that provide regular dividends, focusing on those with over 9% revenue growth over five years and positive analyst sentiment, resulting in a list of 14 hedge fund-favored companies [6][7] Company Highlights - **Atmos Energy Corporation (NYSE:ATO)**: - Holds 32 hedge fund positions and has a 5-year revenue growth of 9.92% - Recently increased its quarterly dividend by 15%, marking 41 consecutive years of dividend growth, with capital expenditures of $3.6 billion in FY25, primarily for safety and reliability [8][10][11] - **CF Industries Holdings, Inc. (NYSE:CF)**: - Holds 41 hedge fund positions and boasts a 5-year revenue growth of 15.96% - Focused on decarbonizing production with low-carbon ammonia, reporting a trailing twelve-month operating cash flow of $2.63 billion and free cash flow of $1.7 billion [12][13][14] - **Diamondback Energy, Inc. (NASDAQ:FANG)**: - Holds 42 hedge fund positions with a remarkable 5-year revenue growth of 36.06% - Benefits from low-cost production in the Permian Basin, generating 15% higher free cash flow per share despite a 14% decline in oil prices, and is nearing its $1.5 billion net debt target [15][17][18]

Core Insights - Atmos Energy Corporation (NYSE: ATO) is recognized as a high-quality dividend stock suitable for long-term investors [1] - Morgan Stanley has raised its price target for Atmos Energy to $182 from $181, maintaining an Overweight rating, while noting that utilities have underperformed compared to the broader S&P in October [2] - Atmos Energy announced a 15% increase in its quarterly dividend to $1.00 per share, marking its 41st consecutive year of dividend increases and 168th consecutive quarterly payout [3] Financial Performance - For fiscal 2025, Atmos Energy reported capital spending of $3.6 billion, with approximately 87% allocated to safety and reliability initiatives [4] - The company has about $4.9 billion in available liquidity and $1.8 billion in financing to support ongoing operations [4] Company Overview - Atmos Energy is one of the major regulated natural gas utilities in the United States, focusing on essential services and maintaining a stable customer base that supports its steady business profile in the regulated utilities sector [5]

Core Insights - Sempra Energy (SRE) is enhancing operational reliability and customer service through strategic investments while expanding its renewable energy portfolio [1][4] Group 1: Growth Catalysts - The company plans to invest $13 billion by 2025, focusing on transmission and distribution upgrades to meet rising electricity demand, particularly from AI data centers [2] - Capital investments are expected to increase by approximately 30% from 2026 to 2029, supporting a projected rate base growth of about 10% annually through 2025-2029 [2] - Sempra Infrastructure is advancing natural gas liquefaction export projects, with significant construction progress on ECA LNG Phase 1 and Port Arthur LNG Phase 1 as of September 2025 [3] Group 2: Renewable Energy Initiatives - Sempra Energy is actively growing its renewable energy portfolio to leverage economic and ESG incentives in the utility-scale renewable energy market [4] - As of December 31, 2024, Sempra Infrastructure had 1,044 megawatts (MW) of fully contracted capacity from operating wind and solar facilities, with an additional 2,318 MW of residential and commercial rooftop solar capacity in SDG&E's service area [4] Group 3: Stock Performance - Over the past six months, Sempra Energy shares have increased by 20.4%, outperforming the industry's growth of 17.1% [7]

Core Insights - Telefonica, S.A. (TEF) has extended its partnership with Nokia for five years to modernize its radio access network in Germany, supporting accelerated 5G rollout and sustainable digitalization goals [1][11] - The agreement includes the deployment of Nokia's energy-efficient AirScale RAN portfolio, enhancing coverage and network reliability [2][11] - The initiative aims to advance network automation through AI-driven orchestration, leveraging Nokia's MantaRay NM platform [4][11] Network Modernization and 5G Expansion - Nokia will provide advanced solutions including Habrok Massive MIMO radios, multi-band remote radio heads, and small cells to improve indoor performance and overall network reliability [2][3] - The rollout will utilize Nokia's Interleaved Passive Active Antenna (IPAA+) to streamline site deployment and accelerate 5G expansion [3] Strategic Partnerships and Contracts - Telefonica has signed long-term contracts, including a 16-year agreement with DIGI in Spain, enhancing infrastructure quality and ensuring stable revenue [6] - The company is also collaborating with Vodafone and has entered renewable energy agreements in Chile and Mexico [6] Financial Outlook - For 2025, Telefonica anticipates organic growth in revenues, EBITDA, and EBITDAaL - CapEx, aiming to keep CapEx below 12.5% of sales and maintain free cash flow at 2024 levels [9] Market Position and Performance - Telefonica's 5G network in Spain covers nearly 94% of the population, with the miMovistar portfolio gaining traction [5] - The company is experiencing growth in its B2B segment in Germany, supported by steady ARPU and low churn in O2 contracts [7]

Key Takeaways SR's fiscal 2026 EPS estimate implies y/y growth of 14.64%, with revenues expected to grow 1.85% y/y.The company plans $11.2B in 10-year capital investments to support 5-7% long-term EPS growth.SR has a stronger debt profile than its sector, supported by a 2.6 times interest earned ratio coverage.Spire, Inc. (SR) is focused on strategic investments to enhance operational reliability and better serve its customers. The company is leveraging new technologies to advance its operations, improve se ...