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UGI Corporation (UGI) Hits Fresh High: Is There Still Room to Run?
ZACKS· 2025-06-25 14:15
Core Viewpoint - UGI shares have shown strong performance, reaching a new 52-week high and significantly outperforming the broader utilities sector and gas distribution industry [1][2]. Financial Performance - UGI has consistently beaten earnings estimates, with the latest EPS reported at $2.21 against a consensus of $1.8 [2]. - For the current fiscal year, UGI is projected to earn $3.13 per share on revenues of $7.81 billion, reflecting a 2.29% increase in EPS and an 8.36% increase in revenues [3]. - The next fiscal year forecasts an EPS of $3.23 on revenues of $8.81 billion, indicating year-over-year changes of 3.19% and 12.76%, respectively [3]. Valuation Metrics - UGI's current trading metrics show a P/E ratio of 11.7X for the current fiscal year, below the industry average of 16.3X [7]. - The trailing cash flow basis shows UGI trading at 5.6X compared to the peer group's average of 8.1X [7]. - UGI has a PEG ratio of 2.24, positioning it favorably among value stocks [7]. Investment Style Scores - UGI holds a Value Score of A, with Growth and Momentum Scores of B, resulting in a combined VGM Score of A [6]. - The Zacks Rank for UGI is 2 (Buy), supported by rising earnings estimates, indicating potential for further gains [8].
ATO or OGS: Which Utility Stock Is a Safer Choice for Investors?
ZACKS· 2025-06-24 13:25
Key Takeaways ATO and OGS have strong 2025 EPS estimates, which have risen 0.6% and 0.7%, respectively, in the past 60 days. Atmos Energy has a lower debt-to-capital ratio and stronger current ratio than the industry and OGS. ATO stock rose 11.7% over six months, outperforming both the industry's 2% and OGS's 5.2% gains.Natural gas distribution pipelines are essential for transporting natural gas via small-diameter pipelines from intrastate and interstate transmission networks to end users. The U.S. natur ...
SoCalGas Donates $75,000 to Pasadena Chamber Foundation to Support Altadena Small Business Recovery Following Eaton Fire
Prnewswire· 2025-06-24 12:55
Core Points - Southern California Gas Co. (SoCalGas) has made a $75,000 donation to support small businesses in Altadena affected by the Eaton Fire [1][2] - The funds will assist local businesses in covering essential expenses such as relocation, equipment replacement, and operational restart costs [2][3] - The Pasadena Chamber of Commerce Foundation (PCCF) will manage the grant applications and distribution based on need and potential impact [3][4] Company Contributions - SoCalGas previously contributed $400,000 to the YMCA of Metropolitan Los Angeles to aid in the response to the Eaton Fire, providing various support services to displaced families and first responders [4] - The company emphasizes its commitment to the local economy and the resilience of small businesses during recovery efforts [4][5] Community Impact - The Eaton Fire has significantly impacted Altadena's small business community, necessitating collaborative efforts for recovery [4] - SoCalGas aims to provide meaningful support through its partnership with the Pasadena and Altadena Chambers [4][5] - The Pasadena Chamber of Commerce Foundation focuses on workforce development, disaster recovery, and support for local businesses [6][9]
Why Southwest Gas Stock Deserves a Spot in Your Portfolio for Now
ZACKS· 2025-06-23 14:41
Key Takeaways SWX's EPS estimate for 2025 rose 5.1% to $3.72, with long-term growth projected at 9.9%. Southwest Gas plans $4.3B in capital investments from 2025-2029 to support expansion and upgrades. SWX added 40,000 new meter sets in 12 months, with 1.4% annual customer growth expected through 2029.Southwest Gas (SWX) focuses on consistent investments to strengthen its infrastructure, which has played a critical role in expanding the company's operations. Southwest Gas is also gaining from consistent c ...
SoCalGas Joins Forces with Labor Community Services to Help Address Hunger at 33rd Annual "Stamp Out" Hunger Food Drive
Prnewswire· 2025-06-20 20:00
Media assets hereLOS ANGELES, June 20, 2025 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) once again joins forces with Labor Community Services (LCS) to support the 33rd Annual National Association of Letter Carriers' (NALC) "Stamp Out Hunger" Food Drive. This year, SoCalGas will bring 100 volunteers to help sort over 1 million pounds of food donations collected across Los Angeles County. SoCalGas will also present a $25,000 donation to LCS to purchase additional needed food items, supporting thous ...
4 Safe-Haven Utility Stocks to Buy Amid Ongoing Geopolitical Tensions
ZACKS· 2025-06-18 13:25
Market Overview - Volatility has returned to Wall Street due to escalating tensions between Iran and Israel, with the U.S. gradually getting involved [2][5] - The Dow declined by 0.7%, while the S&P 500 and Nasdaq fell by 0.8% and 0.9%, respectively [5] - Recent geopolitical tensions have unsettled markets, which could remain volatile for an extended period [9] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility sector, including Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), MDU Resources Group, Inc. (MDU), and NiSource Inc. (NI) [3][11] - These stocks are characterized by low beta (greater than 0 but less than 1), high dividend yields, and favorable Zacks Ranks [4][11] Company Profiles Atmos Energy Corporation (ATO) - Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states [10] - Expected earnings growth rate of 6% for the current year, with a Zacks Consensus Estimate improvement of 0.6% over the last 60 days [12] - Current dividend yield is 2.27% and beta is 0.71 [12] Fortis, Inc. (FTS) - Operates in the electric and gas utility business, primarily in Canada, the U.S., and the Caribbean [13] - Expected earnings growth rate of 3.4% for the current year, with a Zacks Consensus Estimate improvement of 3.3% over the last 60 days [14] - Current dividend yield is 3.70% and beta is 0.49 [14] MDU Resources Group, Inc. (MDU) - Provides value-added natural resource products and regulated energy delivery services [15] - Expected earnings growth rate of 5.6% for the current year, with a Zacks Consensus Estimate improvement of 1.1% over the last 60 days [15] - Current dividend yield is 3.18% and beta is 0.72 [15] NiSource Inc. (NI) - Delivers natural gas and electricity to approximately 3.7 million customers across six states [16] - Expected earnings growth rate of 7.4% for the current year, with a Zacks Consensus Estimate improvement of 0.5% over the last 60 days [17] - Current dividend yield is 2.83% and beta is 0.54 [17]
Why Chesapeake Utilities (CPK) is a Great Dividend Stock Right Now
ZACKS· 2025-06-13 16:51
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that mea ...
Here's Why You Should Include UGI Stock in Your Portfolio Right Away
ZACKS· 2025-06-13 13:26
Core Viewpoint - UGI Corporation's planned investments are expected to enhance its aging infrastructure and improve overall performance, making it a strong investment option in the utility sector due to growth opportunities and a solid return on equity (ROE) [1] Group 1: Growth Projections - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 3.3% to $3.13 [2] - The Zacks Consensus Estimate for fiscal 2025 sales is projected at $7.81 billion, reflecting a year-over-year increase of 8.4% [2] - UGI's long-term earnings growth rate is estimated at 5.2%, with a trailing four-quarter average earnings surprise of 75.7% [2] Group 2: Financial Health - UGI's current ratio stands at 1.23, surpassing the industry average of 0.63, indicating sufficient short-term assets to cover liabilities [3] - The company's ROE is 16.21%, significantly higher than the industry average of 9.24%, demonstrating effective utilization of funds [4] - UGI's total debt to capital ratio is 58.34%, better than the sector's average of 59.23%, and the time-to-interest earned ratio is 2.5, indicating strong ability to meet interest obligations [5] Group 3: Dividend Performance - UGI has a long history of paying dividends for 141 years, with a current quarterly dividend of 37.5 cents per share, leading to an annualized dividend of $1.50 [6] - The compound annual growth rate (CAGR) for UGI's 10-year dividend is 6% for fiscal 2014-2024, and the current dividend yield is 4.1%, above the industry's average of 3.28% [6] Group 4: Strategic Investments - UGI plans to invest $800-$900 million in fiscal 2025 and up to $4.1 billion by 2027 to modernize its infrastructure [8][10] - These investments aim to enhance safety and reliability in natural gas production and storage, as well as replace aging infrastructure to efficiently serve an expanding customer base [9] - UGI has added over 6,600 residential heating and commercial customers year to date [9]
Why Is Southwest Gas (SWX) Up 6.3% Since Last Earnings Report?
ZACKS· 2025-06-11 16:36
It has been about a month since the last earnings report for Southwest Gas (SWX) . Shares have added about 6.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Southwest Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It ...
ONE Gas to Benefit From Regulated Operations & Strategic Investments
ZACKS· 2025-06-10 13:35
Key Takeaways OGS invested $703.2M in 2024 and plans $750M in 2025 to expand and upgrade its natural gas infrastructure. Revenue growth is supported by new rates in key states and the proximity of supply assets to gas reserves. Residential customers make up 92% of OGS' clientele, guaranteeing profit visibility.ONE Gas, Inc. (OGS) continues to benefit from its strategic capital expenditures for pipeline integrity and extension of services to new areas. The company is expected to benefit from 100% regulated ...