This Clean Energy Stock Heads for a Record. What's Driving Nextpower Higher. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# This Clean Energy Stock Is on Pace for a Record Close. What's Powering It Higher.By [Mackenzie Tatananni]ShareResiz ...

Core Viewpoint - XPLR Infrastructure, LP (NYSE:XIFR) is experiencing a positive trend in its consensus price target, reflecting growing optimism about its long-term performance and cash flow generation capabilities [1][5]. Group 1: Price Target Trends - The average price target for XPLR has increased from $11.83 a year ago to $14 last month, indicating confidence in the company's future [1][5]. - CIBC has set a lower price target of $11.5, suggesting concerns about XPLR's short-term performance, particularly regarding the upcoming Q3 earnings report [2][5]. Group 2: Earnings Report and Analyst Sentiment - There are mixed signals regarding XPLR's upcoming Q3 earnings report, with analysts expressing optimism about long-term prospects but cautioning about potential short-term performance issues [2][3]. - The anticipation of the Q3 earnings report and the lower price target from CIBC indicate uncertainty about the company's immediate financial results [3]. Group 3: Market Trends and Future Success - Broader market trends in the clean energy sector and natural gas infrastructure are crucial for shaping analysts' expectations for XPLR's stock [4][5]. - The company's ability to adapt and capitalize on evolving industry trends will be key for its future success, making it important for investors to monitor news related to its projects and partnerships [4][5].

Industry Overview - The Zacks Utility-Electric Power industry presents an attractive investment opportunity due to stable cash flows and predictable regulated business models [1] - Domestic utilities benefit from long-term power purchase agreements, which protect revenues from economic volatility [1] - Rising electricity demand and capital investments are enhancing operational efficiency, leading to consistent earnings and reliable dividend payments [1] Shift to Clean Energy - The utility industry is transitioning to cleaner energy sources driven by increased power demand from AI data centers, industrial reshoring, and Electric Vehicle adoption [2] - Utilities are retiring fossil fuel assets, expanding renewable energy, and implementing low-emission technologies while ensuring grid reliability [2] - The sector is well-positioned for long-term value as decarbonization progresses, supported by strong capital-return programs [2] Company Focus: PPL Corporation and CMS Energy - PPL Corporation and CMS Energy are U.S.-regulated electric utility companies investing in grid infrastructure and renewable energy to meet rising demand [3] - PPL emphasizes infrastructure upgrades and clean energy investments, ensuring stable cash flows and dependable dividends [4] - CMS Energy focuses on modernizing the grid and expanding capacity to meet demand, with a clear commitment to clean energy and net zero operations by 2040 [5] Earnings Estimates - The Zacks Consensus Estimate for PPL's earnings per share in 2026 has improved by 7.6% year over year, with long-term earnings growth projected at 7.34% [7] - The Zacks Consensus Estimate for CMS' earnings per share in 2026 has improved by 7.28% year over year, with long-term earnings growth projected at 7.31% [10] Financial Metrics - CMS Energy has a higher Return on Equity (ROE) of 12.1% compared to PPL's 9.08%, outperforming the industry average of 10.7% [9][11] - PPL trades at a Price/Earnings Forward 12-month (P/E-F12M) ratio of 18.67, slightly above CMS's 18.59, both higher than the industry's 15.64 [12] Dividend and Capital Return - PPL Corporation has a dividend yield of 2.99%, while CMS Energy has a yield of 3.03%, both exceeding the S&P 500 composite yield of 1.35% [17] - Both companies have maintained a times interest earned (TIE) ratio above 1 for over a decade, indicating financial flexibility to meet near-term debt obligations [19] Long-Term Capital Investment Plans - CMS plans to invest $20 billion from 2025 to 2029, with $6.3 billion allocated for enhancing pipeline integrity and reducing methane emissions [20] - PPL expects to invest $20 billion from 2025 to 2028, focusing on strengthening the grid and expanding clean energy generation capacity [21] Conclusion - Both PPL and CMS are making significant investments to enhance operations and customer service [22] - CMS has a competitive edge over PPL due to its better ROE and more attractive valuation metrics [22]

Group 1 - CF Industries Holdings, Inc. declared a dividend of $0.50 per share on its common stock, payable on February 27, 2026, to stockholders of record as of February 13, 2026 [1] - The company will report its fourth quarter and full year 2025 results after market close on February 18, 2026, with a conference call scheduled for February 19, 2026, at 11:00 a.m. ET [2] - Investors can access the conference call via a toll-free number or through the company's website, with a replay available post-event [3] Group 2 - CF Industries aims to provide clean energy sustainably, focusing on safe operations, environmental stewardship, and disciplined management [4] - The company is working to decarbonize its ammonia production network, which is the largest globally, to support low-carbon hydrogen and nitrogen products [4] - CF Industries has a strong manufacturing presence in the U.S., Canada, and the U.K., along with a robust logistics network in North America to facilitate its clean energy transition strategy [4]

Summary of Clearway Energy Conference Call Company Overview - **Company**: Clearway Energy, Inc. - **Industry**: Clean Energy, specifically focusing on renewable energy projects and power purchase agreements (PPAs) with major corporations like Google. Key Points and Arguments 1. Strong Outlook for 2026 - Clearway Energy is optimistic about its performance in 2026, following a successful execution year in 2025. The company feels confident in meeting its guidance for 2026 and has already commercialized most of its planned projects through 2027 and into 2028 [3][4]. 2. Partnership with Google - The recent announcement of a 1.2 GW PPA with Google is seen as a significant milestone, indicating a shift in the clean energy landscape. This partnership is expected to lead to more contracts with other hyperscalers and renewable energy companies [7][9]. - The contracts with Google are long-term and diverse in geography, which enhances Clearway's growth prospects and aligns with Google's clean energy goals [9][10]. 3. Growth Projections - Clearway aims for a sustainable growth rate of 8%+ over time, supported by a robust pipeline of projects and strong relationships with key customers [5][18]. - The company has set a target of achieving $3.10 in cash available for distribution (CAFD) per share by 2030, with a focus on constructing 2 GW of projects annually [20][21]. 4. Capital Allocation and Financial Metrics - Clearway maintains a capital allocation framework aiming for a leverage ratio of 4-4.5x and a CAFD yield of 10.5% or better. The company is focused on delivering predictable cash flows and high returns to shareholders [29][49]. - The company has successfully exceeded the 10.5% CAFD yield in recent projects, which is expected to continue as they capitalize on new opportunities [49]. 5. Technology and Resource Mix - Clearway is committed to a diverse energy portfolio, including renewable resources, gas, and battery storage. The company believes that a mix of these technologies will provide the most reliable and cost-effective energy solutions [54][56]. - The company sees a significant role for gas resources in complementing renewable energy, especially in providing reliability and firming capabilities [54][55]. 6. Future of Renewable Energy Post-2030 - Clearway anticipates that the renewable energy landscape will continue to grow even after the expiration of tax credits in 2030. The company expects to see a mix of renewable, gas, and battery resources remain essential for meeting energy demands [62][66]. - The company is preparing for a future where renewable projects will need to stand on their own economically, without tax incentives [63][66]. 7. Storage Opportunities - Clearway is optimistic about the potential for battery storage, which has proven to be reliable and effective in enhancing grid performance. The company is focused on developing domestic supply chains for battery production [70][73]. 8. Capital Raising Strategy - Clearway plans to maintain a disciplined approach to capital raising, balancing equity issuance with its growth objectives. The company aims to continue raising capital in a manner consistent with premium utilities [29][80]. Additional Important Insights - The company is focused on building large-scale projects and expects to see larger contracting announcements as it grows. This shift reflects the increasing scale of the clean energy market and Clearway's capabilities [75][76]. - Clearway's strategy includes developing projects in phases, allowing for incremental capital allocation and reporting on progress [77][78]. This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Clearway Energy's commitment to growth, innovation, and sustainable energy solutions.

Industry Overview - The Utility-Electric Power industry is focused on generating and delivering electricity to millions of customers in the U.S., with a strong shift towards cleaner fuel sources and reduced carbon emissions, supported by government initiatives [1] - The industry is investing in grid modernization and infrastructure improvements to enhance resilience against natural disasters like hurricanes, which helps in reducing outages and restoring power more quickly [1] Trends Impacting the Industry - Interest rates have decreased from a range of 5.25-5.50% to 3.75-4.00%, which is beneficial for utilities that rely on capital markets for financing infrastructure investments [4] - The share of U.S. electricity generation from renewables is projected to rise from 23% in 2025 to 28% in 2027, driven by growth in solar and wind capacity, aided by the Inflation Reduction Act [5] - Electricity consumption in the U.S. is expected to increase by 1% in 2026 and 3% in 2027, with prices for electricity also projected to rise across industrial, commercial, and residential sectors [6] Industry Performance - The Utility-Electric Power industry has outperformed the S&P 500 and its own sector over the past 12 months, gaining 24.2% compared to the sector's 21% and the S&P 500's 16.5% [10] - The industry's Zacks Rank is 87, placing it in the top 36% of over 244 Zacks industries, indicating positive near-term prospects [8][9] Valuation Metrics - The industry is currently trading at an EV/EBITDA multiple of 13.24X, compared to the S&P 500's 18.9X and the Utility sector's 12.48X, with historical trading ranges between 12.27X and 21.31X over the past five years [13] Investment Opportunities - NextEra Energy plans to invest over $74 billion through 2029 to modernize infrastructure and increase clean energy generation, with a long-term earnings growth forecast of 8.08% and a dividend yield of 2.67% [19][20] - Ameren Corporation expects to deploy over $26.3 billion in capital from 2025 to 2029, with a long-term earnings growth estimate of 8.52% and a dividend yield of 2.78% [23][24] - Alliant Energy anticipates long-term capital expenditures of $13.4 billion from 2026 to 2029, with a long-term earnings growth forecast of 7.15% and a dividend yield of 3.04% [27][28] - Pinnacle West Capital has a capital investment plan of $8 billion for 2026-2028, with a long-term earnings growth estimate of 3.56% and a dividend yield of 3.95% [31][32]

Core Insights - U.S. rare earth and critical miner stocks experienced a rally due to renewed discussions in Washington about expanding federal support for domestic supply chains, boosting investor sentiment across the sector [1][10] - The U.S. government signed a non-binding deal through the Commerce Department's CHIPS Act program to provide approximately $1.6 billion in funding and loans to USA Rare Earth, Inc. (USAR), which resulted in a 7.9% increase in USAR's shares [2][10] - The reliance of the U.S. on foreign suppliers for critical minerals poses a vulnerability, prompting policymakers to consider incentives to strengthen domestic mining and processing capabilities [3][4] Industry Developments - Investors are optimistic about potential expanded tax credits, direct funding, and regulatory support that could enhance project economics and shorten development timelines for U.S. producers [4][11] - Geopolitical tensions and supply chain disruptions have underscored the strategic importance of securing reliable domestic access to key raw materials, essential for both industrial growth and defense readiness [5][11] - Long-term trends related to clean energy, electrification, and advanced technologies continue to support the investment case for critical minerals, indicating that policy signals from Washington can significantly influence the sector [6][11] Company Highlights - Coeur Mining, Inc. (CDE) is a gold and silver miner with exposure to critical minerals, showing an expected earnings growth rate of 355.6% for the current year, with a Zacks Rank of 1 [7] - Idaho Strategic Resources, Inc. (IDR) focuses on rare earths and other critical minerals, with an expected earnings growth rate of 6% for the current year and a Zacks Rank of 2 [8] - IperionX Limited (IPX) specializes in rare earth and critical mineral production, with an expected earnings growth rate of 95% for the current year, also holding a Zacks Rank of 2 [9]

Core Insights - Dragonfly Energy Holdings Corp. has launched its first solar panel product line under the Battle Born brand, marking its expansion into solar generation [3][4] - The new solar panels are designed to optimize power extraction from limited space and maintain consistent output in shaded or variable-light conditions [4][5] Product Details - The Battle Born solar panel lineup includes four initial models, with the Elite Series rigid solar panels achieving high module efficiencies of up to 23 percent [4][8] - The Elite Series incorporates ShadeGuard™ anti-shading technology to enhance energy production under partial shading and inconsistent light conditions [5] - The panels are built with durable materials, including anodized aluminum frames and tempered glass, suitable for demanding environments [6] Market Positioning - The launch aims to provide customers with expanded options that align with their expectations for power systems, focusing on maximizing power output and reliability [9] - The product line is available for immediate sale through Battle Born Batteries and authorized distribution partners [9]

Core Insights - The offshore wind industry has committed to invest €9.5 billion ($11.3 billion) in its supply chain by 2030 to enhance capacity in the North Sea, aiming to transform it into a major clean energy reservoir [1] - Leaders from nine European nations signed a declaration to accelerate offshore wind technology, with plans to mobilize €1 trillion in capital, create 91,000 jobs, and reduce power production costs by 30% by 2040 [1] - The goal is to jointly develop 100 gigawatts of offshore wind capacity by 2050, aligning with the bloc's climate-neutrality target [3] Investment and Infrastructure - Grid operator Tennet Germany and the UK's National Grid Plc will build a 3.8 gigawatt interconnector to link offshore wind parks to both countries' coasts, expected to be operational by the end of the 2030s [4] - The investment pact is seen as a means to secure value creation in Europe and ensure future-proof jobs in the offshore sector [5] Policy and Regulatory Framework - The UK has increased support for offshore wind technology, while Germany's recent zero-subsidy tender faced no bidders, indicating a need for adjustments in tender design and investment frameworks [5][6] - The North Sea summit is part of a broader initiative to install 300 gigawatts of capacity in response to the energy crisis caused by geopolitical tensions [7] Environmental Considerations - The North Sea has historically contributed over 9% of global greenhouse gas emissions from oil and gas extraction, and transitioning to renewable energy could help mitigate this impact [9] - There is a call for closer cooperation among countries to protect conservation areas while developing offshore wind infrastructure [9][10]

Core Viewpoint - Quanta Services, Inc. (NYSE:PWR) is highlighted as a strong investment opportunity in the clean energy sector, particularly due to its robust positioning amid increasing power demand and favorable market conditions [2][3][4]. Group 1: Market Outlook - Wolfe Research has a positive outlook for the clean energy sector entering 2026, citing improved fundamentals after a volatile 2025 [2]. - The firm emphasizes a shift in investor focus towards quality cash flows rather than speculative investments, following a strong rally in the second half of the previous year [3]. - Quanta Services is identified as a preferred investment choice alongside Mastec, benefiting from increased corporate spending on data centers [3]. Group 2: Company Performance and Positioning - Seaport Research upgraded Quanta Services from 'Neutral' to 'Buy' with a price target of $503, marking it as the top large-cap pick for 2026 [4]. - The company is expected to benefit from a tight U.S. skilled-labor market, growth in the Electric Division, and synergies from acquisitions [4]. - Quanta Services provides infrastructure solutions across electric power, renewable energy, and underground markets, supporting utility and energy customers with various services [5].