Core Viewpoint - Chesapeake Utilities Corporation is set to provide natural gas service for the new Sussex Technical High School campus, which is the largest school construction project in Delaware's history, with an estimated cost of approximately $249 million [1]. Group 1: Project Overview - The new Sussex Technical High School campus will feature a 400,000+ square foot, three-story academic facility, increasing student capacity from approximately 1,375 to 1,800 high school students and over 3,500 adult education students [1]. - Construction began in October 2024, with a planned opening date in September 2027 [1]. Group 2: Infrastructure Development - Chesapeake Utilities is constructing a nearly four-mile natural gas main extension to supply energy service to the new school [1]. - The natural gas infrastructure will support key building systems and ensure long-term reliability for the facility [1]. Group 3: Strategic Importance - The transition to natural gas reflects the Sussex County Vocational Technical School District's focus on performance, modernization, and reliability, aiming to reduce reliance on fuel oil and propane [1]. - The project is viewed as an investment in the region's future, emphasizing modern infrastructure and dependable energy solutions [1].

Core Insights - Wall Street is experiencing a "Great Rotation," with investors moving away from high-flying technology stocks towards smaller companies and defensive sectors due to factors like "AI capex fatigue," a resilient U.S. economy, and expectations of a less-dovish Federal Reserve [1][3][10] Investment Trends - The five largest U.S. cloud and AI infrastructure providers, including Microsoft, Alphabet, Amazon, Meta, and Oracle, are projected to spend between $660 billion and $690 billion in capital expenditures by 2026, nearly doubling the spending levels of 2025 [2] - Pure-play AI companies like OpenAI and Anthropic are experiencing strong revenue growth, but their combined revenues do not match the significant infrastructure investments made in them [2] Market Performance - Approximately 65% of S&P 500 stocks are outperforming the index, indicating a broadening market breadth not seen in years, suggesting leadership is expanding beyond just mega-cap tech [4][10] - The State Street SPDR Portfolio S&P 500 Value ETF (SPYV) has increased by about 1.1% over the past month, while the State Street SPDR S&P 500 ETF Trust (SPY) has declined by 1.8% during the same period [5] Sector-Specific ETFs - The State Street Consumer Staples Select Sector SPDR Fund (XLP) has gained about 10% over the past month and 9.6% over the past year, indicating strong performance in non-cyclical sectors [6] - The First Trust Utilities AlphaDEX Fund (FXU) has risen by 7.8% in the past month and 22.9% over the past year, benefiting from the demand for utilities amid the AI boom [7] - The Vanguard High Dividend Yield ETF (VYM) has added approximately 4.7% over the past month, with an annual yield of 2.24%, appealing to investors seeking income in a volatile market [8] Small-Cap Performance - Small-cap stocks have outperformed large-cap stocks this year, supported by a domestic focus, dollar strength, and an improving earnings outlook, with the S&P SmallCap 600 index expected to return to positive growth in 2025 [11]

Core Viewpoint - Eversource Energy reported a significant increase in fourth-quarter profit, driven by improved performance in its gas business and the absence of substantial one-time charges that impacted earnings in the previous year [1]. Financial Performance - Eversource's net income for the fourth quarter reached $421.3 million, or $1.12 per share, compared to $72.5 million, or 20 cents per share, in the same quarter last year [1]. - The natural gas segment earned $123.6 million, up from $103.4 million a year earlier [1]. Future Outlook - The company forecasts 2026 profit to be between $4.80 and $4.95 per share, with analysts estimating a full-year profit of $4.97 per share [1]. - Eversource expects its long-term earnings per share growth rate to remain in the range of 5% to 7% through 2030 [1]. Capital Investment - Eversource raised its five-year capital investment plan to $26.5 billion, an increase from the previous $24.2 billion, primarily due to higher spending on electric and natural gas distribution infrastructure [1]. - The company anticipates raising between $800 million and $1.1 billion in equity from 2026 to 2030, excluding routine issuances related to its dividend reinvestment and compensation programs [1].

Core Viewpoint - NorthWestern Corporation has updated its five-year capital plan to $3.21 billion, reflecting a 17% increase, and initiated 2026 earnings guidance, indicating growth prospects despite various challenges. Financial Performance - For the fourth quarter, NorthWestern reported adjusted EPS of $1.17, up from $1.13 in the same quarter of 2024, with improved margins attributed to new rates and regulatory execution, offset by mild weather and increased operating costs [3] - The company reported full-year 2025 GAAP diluted EPS of $2.94 and non-GAAP diluted EPS of $3.58, with a 1.5% increase in quarterly dividend to $0.67 per share [5][8] - CFO noted that 2025 non-GAAP results showed 5.3% growth over 2024, despite headwinds such as merger-related costs and warm weather [4] Capital Plan and Investments - The five-year capital plan has been increased to $3.21 billion, including a $300 million South Dakota natural gas project, with expectations for equity financing beyond 2026 on a 50/50 debt-to-equity basis [1][7] - Management indicated that the base capital plan remains self-funded, but incremental investments in South Dakota will likely require additional equity [8] Merger and Regulatory Developments - NorthWestern has filed for an all-stock "merger of equals" with Black Hills, with shareholder votes scheduled for April 2, 2026, and expects the deal to close in the second half of 2026 [6][10] - Joint merger approval requests have been filed in multiple states, with hearings expected in the second quarter of 2026 [11] Large-load and Data Center Initiatives - The company is actively pursuing large-load and data center opportunities in Montana and South Dakota, with progress on letters of intent and development agreements [12][19] - NorthWestern plans to file a Montana large-load tariff in conjunction with signed electric service agreements to ensure fair cost distribution among large-load customers [13] Colstrip Ownership and Cost Recovery - NorthWestern has increased its ownership in Colstrip through acquisitions, enhancing its strategic influence and ability to serve large-load customers [15] - The company has filed for cost recovery measures related to its acquisitions, expecting to offset significant incremental operating costs [16]

Market Overview - U.S. stocks experienced a decline, with the Nasdaq Composite dropping over 350 points on Thursday. The Dow decreased by 1.21% to 49,515.62, the NASDAQ fell by 1.55% to 22,709.08, and the S&P 500 dropped by 1.18% to 6,859.69 [1] Sector Performance - Utilities shares increased by 2.4% on Thursday, while information technology stocks fell by 1.5% [1] Company Performance - American Electric Power Company, Inc. (NASDAQ:AEP) saw its shares rise approximately 5% after reporting positive fourth-quarter results. Adjusted earnings were $1.19 per share, down from $1.24 a year ago but above the Street estimate of $1.15. Revenue reached $5.314 billion, surpassing the analyst consensus of $4.887 billion [2] Commodity Market - In commodity trading, oil prices fell by 1.6% to $63.60, gold decreased by 0.1% to $5,097.40, silver dropped by 1.4% to $82.745, and copper fell by 0.4% to $5.9445 [3] European Market Performance - European shares showed mixed results, with the eurozone's STOXX 600 rising by 0.16%, Spain's IBEX 35 Index falling by 0.63%, London's FTSE 100 slipping by 0.15%, Germany's DAX gaining by 0.98%, and France's CAC 40 rising by 1.04% [4] Asia Pacific Market Performance - Asian markets closed mixed, with Japan's Nikkei down by 0.02%, Hong Kong's Hang Seng Index down by 0.86%, China's Shanghai Composite up by 0.05%, and India's BSE Sensex down by 0.66% [5] Economic Indicators - U.S. initial jobless claims decreased by 5,000 to 227,000 in the first week of February, compared to market estimates of 222,000. Additionally, U.S. natural-gas stocks dipped by 249 billion cubic feet, compared to market estimates of a 257 bcf decline [6]

Market Overview - Major stock indices experienced significant declines, with the Dow down 496.77 points (1.0%) at 49,624.63, the Nasdaq down 341.43 points (1.5%) at 22,725.04, and the S&P 500 down 68.04 points (1.0%) at 6,873.43 [1] Technology Sector - The sell-off was partly driven by a steep drop in Cisco Systems (CSCO), which fell by 10.7% despite reporting better-than-expected fiscal second-quarter results, as the company provided disappointing guidance for the current quarter [2] - The NYSE Arca Networking Index declined by 3.0% due to Cisco's performance [2] Transportation and Other Sectors - Transportation stocks saw a substantial decline, with the Dow Jones Transportation Average down by 5.1% [3] - Gold stocks weakened significantly, reflected by a 3.9% slump in the NYSE Arca Gold Bugs Index, attributed to a sharp decline in gold prices [3] - Financial, biotechnology, and oil service stocks also faced considerable weakness, while telecom and utilities stocks showed resilience against the downward trend [3] Economic Indicators - The Labor Department reported that initial jobless claims decreased to 227,000, down by 5,000 from the previous week's revised level of 232,000, which was less than economists' expectations of a drop to 220,000 [4][5] - Existing home sales pulled back more than expected in January, as reported by the National Association of Realtors [5] Inflation Outlook - Forecasts suggest that the core Consumer Price Index (CPI) could ease to around 2.5%, marking a near five-year low, which could influence market dynamics if inflation aligns with or falls below expectations [6] - A softer inflation print could maintain rate cuts and potentially restore upward momentum in risk assets [6] International Markets - In Asia-Pacific trading, South Korea's Kospi rose by 3.1%, while Hong Kong's Hang Seng Index fell by 0.9%, and Japan's Nikkei 225 Index closed marginally lower [6] - European markets showed mixed results, with the U.K.'s FTSE 100 Index down by 0.6%, while Germany's DAX Index rose by 0.1% and France's CAC 40 Index increased by 0.5% [7] Bond Market - Treasuries moved back to the upside, with the yield on the benchmark ten-year note down by 4.7 basis points at 4.125% [7]

Financial Data and Key Metrics Changes - For 2025, the company reported adjusted operating earnings per share of $2.77, exceeding expectations and continuing a track record of exceeding the midpoint of guidance each year as a standalone utility [6][17] - The company achieved a 7.4% annual earnings growth rate and 8% rate base growth since 2021, demonstrating its ability to navigate changes and execute consistently [6][13] - The company reported GAAP earnings of $2.73 per share for the full year and $0.58 for the fourth quarter, with non-GAAP earnings of $2.77 and $0.59 respectively, reflecting strong year-over-year growth [17][18] Business Line Data and Key Metrics Changes - The company maintained top quartile reliability metrics across its utilities, ranking first, second, fourth, and seventh among peers based on 2024 benchmarking data [7][8] - The company plans to invest $41.3 billion in capital over the next four years, with over 70% of the increase driven by transmission investments [10][24] - The company expects to achieve annualized earnings growth of 5%-7% through 2029, with a projected rate base growth of approximately 8% [13][34] Market Data and Key Metrics Changes - The company anticipates load growth exceeding 3% through 2029, supported by a large load pipeline and an increasing number of signed Transmission Security Agreements [11][12] - The company reported that its average customer bill as a percentage of median income has remained relatively flat since 2021, growing only 10 basis points while maintaining top quartile reliability [31][32] Company Strategy and Development Direction - The company is focused on executing its capital plan efficiently, maintaining industry-leading operational performance, and driving affordability through disciplined cost management [40][41] - The company is actively partnering with federal, RTO, and state leaders to address high supply prices and emerging reliability risks, advocating for policies that support energy security and affordability [15][33] - The company emphasizes a customer-focused approach and aims to capture meaningful opportunities for sustainable growth while maintaining a strong balance sheet [16][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to lead the energy transformation and meet unprecedented demand, highlighting the importance of continuous improvement and targeted investments [5][6] - The management acknowledged the challenges posed by high supply prices but remains optimistic about the national focus on advancing policies to incentivize new generation and improve affordability [15][16] - The company is committed to maintaining a strong balance sheet while funding its capital needs and achieving a balanced funding strategy [37][38] Other Important Information - The company executed a $60 million customer relief fund to support low and moderate-income customers facing higher supply costs [14] - The company has made significant progress on the regulatory front, achieving key milestones in rate cases and filings [10][21] Q&A Session Questions and Answers Question: Could you comment on the rate-based growth and financing lag? - Management noted that actual rate base growth has been about 8% and earnings growth at 7.4%, indicating a continuation of this track record [46] Question: How is the regulatory strategy for 2026 being approached? - Management is in constant conversations with stakeholders and is considering the best approach for rate cases in Pennsylvania and Maryland, focusing on affordability and reliability [49] Question: What is the company's stance on supply challenges and the RBA process? - Management supports the development of a reliability backstop option and emphasizes the need for utility-generated power to lower customer costs and improve reliability [53][54] Question: How are legislative conversations progressing regarding affordability? - Management is actively engaging with legislators across jurisdictions to find collaborative solutions to the affordability dilemma [68][69]

Financial Data and Key Metrics Changes - For 2025, the company reported adjusted operating earnings per share of $2.77, exceeding expectations and continuing a track record of exceeding the midpoint of guidance each year as a standalone utility [6][17] - The company achieved a 7.4% annual earnings growth rate and 8% rate base growth through 2025, demonstrating its ability to navigate changes and execute consistently [7][13] - The company reported GAAP earnings of $2.73 per share for the full year and $0.58 for the fourth quarter, reflecting strong year-over-year growth [17] Business Line Data and Key Metrics Changes - The company maintained top quartile reliability metrics across its utilities, ranking first, second, fourth, and seventh among peers based on 2024 benchmarking data [7] - The company plans to invest $41.3 billion in capital over the next four years, with over 70% of the increase driven by transmission investments [10][24] Market Data and Key Metrics Changes - Anticipated load growth in the company's jurisdictions is expected to exceed 3% through 2029, supported by a large load pipeline and increasing signed transmission security agreements [11][12] - The company has seen robust demand in its jurisdictions, with a focus on addressing high supply prices and emerging reliability risks [15][32] Company Strategy and Development Direction - The company is focused on executing its capital plan efficiently while maintaining industry-leading operational performance to benefit customers [40] - The company emphasizes affordability and has implemented a $60 million customer relief fund to support low and moderate-income customers facing higher supply costs [14] - The company is actively engaging with federal, RTO, and state leaders to address supply challenges and improve affordability [15][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to lead the energy transformation and meet unprecedented demand, highlighting a culture of continuous improvement and innovation [5][16] - The company expects to initiate operating earnings guidance of $2.81-$2.91 per share for 2026, reflecting a commitment to disciplined cost management and operational excellence [13][19] Other Important Information - The company has achieved significant progress on the regulatory front, including final settlements for key rate cases and the filing of ComEd's second multi-year grid plan [10][21] - The company plans to maintain a balanced funding strategy, targeting credit metrics of 14% over the planning period to provide financial flexibility [38] Q&A Session Summary Question: Comments on rate-based growth and financing lag - Management noted that the company has achieved actual rate base growth of about 8% and earnings growth of 7.4%, indicating a continuation of this track record [46][51] Question: Regulatory strategy for 2026 in Pennsylvania - Management is in constant conversations with stakeholders and is considering the best approach for regulatory filings in Pennsylvania while prioritizing affordability and reliability [49][50] Question: Supply challenges and RBA process at PJM - Management emphasized the importance of engaging with regulators and supporting the development of reliability backstop options to improve supply and lower customer costs [54][55] Question: Legislative conversations on affordability - Management confirmed active engagement in legislative discussions across multiple jurisdictions to address affordability and support low-income customers [70] Question: Incremental financing costs and capital opportunities - Management confirmed a commitment to maintaining a 40% equity funding strategy for incremental capital opportunities while managing financing costs [90]

Financial Data and Key Metrics Changes - For 2025, the company reported adjusted operating earnings per share of $2.77, exceeding expectations and continuing a track record of exceeding guidance [6][18] - The company achieved a 7.4% annual earnings growth rate and 8% rate base growth since 2021, demonstrating its ability to navigate changes effectively [6][13] - The full-year GAAP earnings were $2.73 per share, with quarterly earnings of $0.58 on a GAAP basis and $0.59 on a non-GAAP basis [18] Business Line Data and Key Metrics Changes - The company maintained top quartile reliability metrics across its utilities, ranking first, second, fourth, and seventh among peers based on 2024 benchmarking data [6][10] - The company plans to invest $41.3 billion in capital over the next four years, with over 70% of the increase driven by transmission investments [10][24] Market Data and Key Metrics Changes - Anticipated load growth in the company's jurisdictions is expected to exceed 3% through 2029, indicating robust demand [11] - The company has a large load pipeline supported by an increasing number of signed transmission security agreements [12] Company Strategy and Development Direction - The company aims to lead the energy transformation by focusing on affordability and delivering investments that benefit customers [5][10] - The strategic focus includes maintaining a strong balance sheet while funding investments in a disciplined manner [13][40] - The company is actively engaging with federal, RTO, and state leaders to address high supply prices and emerging reliability risks [15][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet unprecedented demand and navigate industry changes [5][6] - The company anticipates annualized earnings growth of 5%-7% through 2029, with a focus on maintaining operational excellence and affordability [13][34] - Management highlighted the importance of collaboration with stakeholders to address affordability and reliability challenges [16][68] Other Important Information - The company executed a $60 million customer relief fund to support low and moderate-income customers facing higher supply costs [14] - The company has committed to keeping O&M costs relatively flat from 2024 to 2026, demonstrating a focus on cost management [30][31] Q&A Session Questions and Answers Question: Could you comment on the rate-based growth and financing lag? - Management noted that actual rate base growth has been about 8% and earnings growth at 7.4%, indicating a continuation of this track record [45][46] Question: What is the regulatory strategy for 2026 in Pennsylvania? - Management stated that they are in constant conversations with stakeholders and are considering the best approach for regulatory filings in Pennsylvania and Maryland [48][49] Question: How is the company addressing supply challenges? - Management emphasized the need for utility-generated power to lower customer costs and improve reliability, supporting the development of a reliability backstop option [52][54] Question: What is the outlook for rate base growth and EPS growth? - Management indicated that while rate base growth is consistent, they aim to provide defensible numbers that account for financing costs while striving to exceed expectations [83][85]

Core Insights - Duke Energy is utilizing artificial intelligence (AI) to enhance customer safety by detecting scams targeting energy customers [1] - The AI technology scans various digital platforms to identify and flag fraudulent schemes for removal [1] Group 1: AI Implementation - The AI scans websites, social media, and paid ads for open-source social engineering threats, helping to protect customers from scams [1] - Recent examples include the removal of a paid search ad impersonating Duke Energy with a fake customer service number [1] Group 2: Industry Collaboration - Duke Energy participated in the 10th annual Utility Scam Awareness Day alongside Piedmont Natural Gas and the Better Business Bureau to educate customers on verifying and reporting scams [1] - The company reported a significant increase in scam reports in 2025, particularly in February when customers often seek bill assistance [1] Group 3: Customer Protection Measures - Customers are encouraged to report suspected scams using Duke Energy's Scam Reporting Tool and verify information through official channels [1] - Red flags for scams include demands for immediate payment, threats of service cutoff, and requests for prepaid cards or cryptocurrency, which Duke Energy does not accept [1] Group 4: Company Overview - Duke Energy is a major energy holding company serving 8.6 million customers across several states and owning 55,100 megawatts of energy capacity [1] - The company is focused on an ambitious energy transition, investing in electric grid upgrades and cleaner energy sources [1]