Core Viewpoint - Southwest Gas Holdings, Inc. successfully closed a secondary public offering of Centuri Holdings, Inc. common stock, raising significant capital for debt repayment [1][3]. Group 1: Offering Details - The company sold 10,350,000 shares of Centuri's common stock at a public offering price of $17.50 per share, including the underwriters' full exercise of their option to purchase an additional 1,350,000 shares [1]. - Icahn Partners LP and Icahn Partners Master Fund LP purchased 2,857,142 shares of Centuri's common stock in a concurrent private placement at the same price per share as the public offering [2]. - The net proceeds from the offering were approximately $175 million, while the concurrent private placement generated about $50 million [3]. Group 2: Use of Proceeds - The proceeds from both the offering and the private placement will be utilized for the repayment of outstanding indebtedness [3]. Group 3: Ownership Structure - After the completion of the offering and private placement, Southwest Gas Holdings retains approximately 65.9% ownership of Centuri's outstanding common stock [3]. Group 4: Underwriters - J.P. Morgan, UBS Investment Bank, and Wells Fargo Securities served as joint lead book-running managers for the offering, with additional support from BofA Securities and Moelis & Company [4]. Group 5: Company Background - Southwest Gas Holdings operates through its subsidiary, Southwest Gas Corporation, which focuses on the distribution and transportation of natural gas across Arizona, Nevada, and California [7]. - Centuri Holdings, Inc. provides utility infrastructure services, partnering with regulated utilities to maintain energy networks in the U.S. and Canada [8].

Financial Data and Key Metrics Changes - The company reported a stabilization of typical residential combined bills since January 2024, with expectations for a decrease in 2026 [30] - The general rate case proposal for 2027 through 2030 includes the smallest percentage increase request in a decade, attributed to $2.5 billion saved in operating and capital costs over the past three years [30] Business Line Data and Key Metrics Changes - The company achieved zero major wildfires caused by its equipment for the second consecutive year in 2024, indicating effective wildfire protection measures [21] - Over 900 miles of power lines have been buried in high-risk areas, reducing ignition risk by nearly 98% [21] - The company installed over 630 AI-enabled wildfire cameras for real-time condition awareness [22] Market Data and Key Metrics Changes - The company added nearly 14,000 new customers in 2024, representing a 30% increase over the previous year [26] - The clean energy portfolio includes 98% greenhouse gas-free power for electric retail customers [23] Company Strategy and Development Direction - The company aims for capital investments of approximately $63 billion from 2024 to 2028, with a goal to limit annual growth in customer costs to 2-4% [25] - The strategy includes reducing non-fuel operating and maintenance costs by at least 2% each year, which has been met or surpassed for three consecutive years [25] Management's Comments on Operating Environment and Future Outlook - Management emphasized a commitment to safety, reliability, and affordability in energy services, aiming to build trust with customers and communities [17][19] - The company is focused on serving people, the planet, and California's prosperity, with ongoing efforts to improve service at lower costs [28] Other Important Information - The board of directors is currently set at 14 members, as required by CPUC regulations, which allows for a diversity of experience and skills [32] - The company is committed to inclusion and belonging as core values, enhancing company strength and responsiveness to customer needs [34] Q&A Session Summary Question: What is PG and E doing to help customers navigate bill increases? - The company is stabilizing bills and expects them to decrease in 2026, with a proposal for the smallest general rate case percentage increase in a decade [30] Question: Why is the PG and E board currently set at 14 members? - The board size is determined by CPUC regulations, which require between twelve and fifteen directors to ensure diverse oversight [32] Question: Why is inclusion and belonging a core value for PG and E? - Inclusion and belonging are integral to the company’s operations, making it stronger and more responsive to diverse customer needs [34]

Summary of Asia Credit Trader Conference Call Industry Overview - The report focuses on the Asia credit market, particularly the high-yield (HY) and investment-grade (IG) sectors, amidst evolving macroeconomic conditions and trade tariff developments [2][7][11]. Key Points and Arguments 1. **Market Performance**: Risk assets started the week strongly, recovering from earlier spread widening in April. Asia HY outperformed, but the rally lost momentum as valuations approached this year's tight levels [2][7]. 2. **Tariff Outlook**: The outlook for tariffs has improved, with expectations that direct impacts on Asia credit will be limited. However, sectoral tariffs could significantly affect specific companies and industries [5][11]. 3. **US Economic Indicators**: The US labor market is a critical indicator for recession risks. The probability of a US recession is currently estimated at 35%, down from 45% previously, indicating a somewhat firmer growth outlook [3][11]. 4. **China's Economic Policy**: China is not expected to rush into easing monetary policy. The focus remains on the global macro backdrop rather than domestic policy changes [6][15]. 5. **Investment Strategy**: A market-neutral stance focusing on carry is recommended, as yields on Asia credit remain attractive. Preference is given to short-dated BBB, 7-10 year A, and BB corporates [6][9][10]. 6. **Credit Spread Forecasts**: The Global Credit Strategy team has revised USD and EUR credit spread forecasts tighter, indicating a shift towards carry-driven excess returns. Default forecasts for the US HY market have been lowered to 3% [8][12]. 7. **Sector Preferences**: For Asia IG, there is a preference for front-end BBB and 7-10 year A securities, particularly in China and India. In Asia HY, BB-rated corporates are favored, especially in India and Indonesia [9][10][25]. Additional Important Insights - **Technical Support**: Despite the lack of clear catalysts for a large selloff, technical factors are expected to maintain solid demand for Asia credit [11][15]. - **Hedging Strategies**: Recommendations include using Indonesia 5-year Sovereign CDS and a long/short strategy on Japan corporate CDS for hedging purposes [6][16]. - **Market Sentiment**: The sentiment remains cautious, with market participants likely to adopt a wait-and-see approach due to elevated US recession risks and the potential for further tariff developments [11][15]. Conclusion The Asia credit market is navigating a complex landscape influenced by macroeconomic indicators, trade tariffs, and sector-specific dynamics. A focus on carry and strategic positioning in credit securities is advised to capitalize on the current yield environment while managing risks associated with potential economic downturns.

Investment Rating - The report assigns an "Overweight" rating to Severn Trent (SVT.L) with a price target of 3,200p, compared to the closing price of 2,700p on May 19, 2025 [5]. Core Insights - The FY25 results exceeded expectations, with a 12% increase in adjusted EPS compared to consensus, and a 3% increase in adjusted EBIT [8]. - The implied FY26 EPS guidance suggests a small upside of approximately 2% above street estimates, indicating operational alignment with consensus [2][8]. - Severn Trent is guiding for at least £25 million in post-tax real ODI rewards for FY26, reflecting confidence in continued operational performance in the new regulatory period [3][8]. - A longer-term adjusted EPS guidance indicates a potential doubling of EPS from FY25 to FY28, with FY28 EPS expected to be around 224p per share, which is approximately 4% below consensus [4][8]. Financial Performance - The FY25 results showed adjusted EBITDA of £1,059 million, beating the Bloomberg consensus of £1,034 million by 2% [9]. - Adjusted EBIT for FY25 was reported at £590 million, exceeding the consensus estimate of £574 million by 3% [9]. - Adjusted EPS for FY25 was 112 GBp per share, surpassing the consensus of 100 GBp by 12% [9]. - Net debt as of March 2025 is estimated at £8.5 billion, slightly above the consensus of £8.2 billion [9].

Financial Data and Key Metrics Changes - In 2024, the company delivered GAAP earnings per share of $3.44 and ongoing earnings per share of $3.50, marking the twentieth consecutive year of meeting or exceeding initial earnings guidance [19][20] - The company reaffirmed its 2025 earnings guidance range of $3.75 to $3.85 per share, with long-term earnings per share growth expectations of 6% to 8% and dividend growth of 4% to 6% [20] Business Line Data and Key Metrics Changes - The company invested over $7.5 billion in 2024 to modernize electric and natural gas systems, alongside updating its five-year capital plan [20] - The resource plans include proposals for 15,000 to 29,000 megawatts of new efficient, clean generation, with a focus on wind, solar, and battery storage [36][37] Market Data and Key Metrics Changes - The U.S. electricity demand growth rate through 2030 has tripled, with expectations to sell 30% more electricity in 2030 than in 2024 [14] - The company has received requests for nearly 9,000 megawatts of new daily demand from data center companies, equivalent to powering over 8 million homes each year [14] Company Strategy and Development Direction - The company is strategically positioned to capitalize on the growing demand for electricity driven by new technologies and the transition to cleaner energy sources [4][13] - A $45 billion investment plan over the next five years aims to modernize, strengthen, and expand the grid to support economic growth and the clean energy transition [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the unprecedented growth opportunities in the energy sector, emphasizing the importance of evolving and pushing to new heights [27][30] - The company is focused on enhancing customer experience, affordability, reliability, and advancing clean energy policy goals [19][21] Other Important Information - The company has been recognized as one of Ethisphere's world's most ethical companies for six consecutive years and has received accolades for its commitment to diversity and inclusion [29] - In 2024, the corporate economic development team closed on 24 projects resulting in over $5 billion in capital investment and the creation of more than 3,000 jobs [23] Q&A Session Summary Question: Can you provide an update on your recent resource plan? - The company plans to add between 15,000 and 29,000 megawatts of new generation resources, including 720 megawatts of firm dispatchable generation in the Upper Midwest [35][36] Question: What impact will data centers have on future load growth? - The company is experiencing significant interest from data centers, with nearly 9,000 megawatts of backlog and expects to serve about 25% of that demand [39][40] Question: What impact do recently announced tariffs have on your capital investment plans? - The company has been agile in managing its supply chain and expects tariffs to represent about 1% to 2% of its total capital bill over the next five years, which is considered manageable [42][45]

Financial Data and Key Metrics Changes - Southern Company reported strong financial results for FY 2024, with significant investments in infrastructure and a commitment to delivering clean, safe, reliable, and affordable energy [44][45] - The company approved an 8¢ per share increase in its annual common stock dividend, marking the 78th consecutive year of dividend payments equal to or greater than the previous year [53] Business Line Data and Key Metrics Changes - The regulated electric utilities invested nearly $4 billion in transmission and distribution infrastructure across Alabama, Georgia, and Mississippi [46] - Southern Power expanded its operational footprint to 15 states with the commercial operation of its 30th solar site [46] Market Data and Key Metrics Changes - The economic development pipeline from large electricity load customers represents over 50 gigawatts of potential incremental load by the mid-2030s, driven by robust economic development in the Southeastern service territory [47] - Average annual sales growth is projected at approximately 8% from 2025 through 2029, an increase of 2% from prior long-term sales growth expectations [48] Company Strategy and Development Direction - Southern Company is focused on sustainability and innovation, exploring solutions such as carbon capture, advanced nuclear technologies, renewable natural gas, and energy storage [49] - The company aims to enhance its grid resilience and efficiency through investments in advanced technologies and distributed energy resources [75][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet future energy demands while maintaining affordability for customers [49][81] - The company is prepared for challenges posed by climate-related events and is committed to improving customer experience through energy efficiency programs [70][72] Other Important Information - Southern Company faced significant challenges during FY 2024, including responding to Hurricane Helene, which required rebuilding sections of the power grid [51] - The company emphasized its commitment to transparency and sound governance in response to shareholder proposals regarding fossil fuel investments and civil liberties [22][34] Q&A Session Summary Question: How are members of the board of directors selected for nomination? - Stockholders may nominate a person for election as a director if they own at least 3% of outstanding shares for three years [56] Question: Why do we give shares to executives and directors? - The compensation structure aligns executive interests with stockholders, and equity compensation has a minimal dilutive effect [58][59] Question: Will Southern Company include scope three emissions in its decarbonization goals? - Southern Company does not have direct control over scope three emissions but is working on reducing them through various initiatives [60][62] Question: How is Southern Company addressing data center demand for additional power generation? - The company projects 8% annual load growth and has commitments for over 10 gigawatts from data centers and industrial projects [64][66] Question: What is the company's approach to energy efficiency for older houses? - Southern Company emphasizes energy efficiency programs to help customers reduce their energy bills and improve system efficiency [70][72] Question: What is the outlook for distributed energy resources and grid enhancements? - The company is investing in advanced grid technologies and has a robust portfolio of customer programs to improve system efficiency [75][76] Question: What potential impacts might be from tariffs? - Southern Company does not expect a material impact from tariffs due to its strong vendor relationships and existing project contingencies [78]

Distribution Announcement - Prime Dividend Corp. declares a monthly distribution of $0.06533 for each Class A share and $0.06083 for each Preferred share, payable on June 10, 2025, to shareholders on record as of May 30, 2025 [1][2]. Dividend Policy - The monthly dividend for Class A shares is determined by a 10.00% annualized rate based on the volume weighted average market price (VWAP) over the last 5 trading days of the preceding month, resulting in a dividend of $0.06533 per share based on a VWAP of $7.84 [2]. Historical Returns - Since inception, Class A shareholders have received a total of $14.31 per share, while Preferred shareholders have received $11.20 per share, leading to a combined total of $25.50 [3]. Investment Portfolio - The Company invests in a portfolio of high-yielding Canadian companies across various sectors, including: - **Banks**: Bank of Montreal, Bank of Nova Scotia, CIBC, National Bank of Canada, Royal Bank of Canada, Toronto-Dominion Bank - **Investment Management**: AGF Management Ltd., CI Financial Corp., IGM Financial Inc. - **Life Insurance**: Great-West Lifeco Inc., Manulife Financial Corporation, Sun Life Financial Inc. - **Utilities & Other**: BCE Inc., TransAlta Corp., TC Energy Corp., Power Financial Corp., TMX Group Inc. [3].

Core Themes - Utilities stocks are performing well in 2025, with the Utilities Select Sector SPDR Fund (XLU) up approximately 9.3% and nearing its all-time high, offering a total return of about 12% including a dividend yield of 2.76% [1][2] - Utilities are considered defensive stocks due to the constant demand for power, regardless of economic conditions, and a regulatory framework that supports both consumers and companies [2][16] - The demand for utilities is expected to remain strong even if the economy improves, making utilities stocks a viable option for a diversified portfolio [3][16] Constellation Energy - Constellation Energy's stock forecast indicates a 12-month price target of $285.79, with a current price of $292.40, reflecting a moderate buy rating based on 15 analyst ratings [4] - The company reported revenue of $6.79 billion, exceeding analyst expectations by 24.7%, although earnings per share of $2.14 fell short of the $2.22 forecast [5] - The stock has increased by 18% since the earnings report, driven by the announcement of long-term agreements to deliver nuclear power for data centers [6][7] NRG Energy - NRG Energy's stock forecast shows a 12-month price target of $140.75, with a current price of $159.63, indicating a moderate buy rating based on 8 analyst ratings [9] - The company is benefiting from data center growth and has a diverse power portfolio, including coal, oil, solar, and battery storage [9][10] - NRG's stock has risen over 77% as of May 20, 2025, and offers a dividend yield of 1.1%, although it is currently considered overbought [11] Exelon - Exelon's stock forecast suggests a 12-month price target of $47.30, with a current price of $44.26, and a hold rating based on 10 analyst ratings [12] - The stock has declined about 6% in May due to a $173 million settlement related to misleading investors about bribery accusations, overshadowing a strong earnings report [13][14] - Despite lower year-to-date gains compared to peers, Exelon offers the highest dividend yield at 3.6% and may be well-positioned for growth in the upcoming quarters [14][16] Overall Market Outlook - The utilities sector is expected to outperform in a volatile market, with companies like Constellation Energy, NRG Energy, and Exelon providing compelling investment opportunities [16] - The sector is benefiting from structural demand and may serve as both a defensive play and a source of meaningful returns in the near future [16]

Investment Rating - The report assigns an "Overweight" rating to SSE, indicating that the stock's total return is expected to exceed the average total return of the analyst's industry coverage universe over the next 12-18 months [5]. Core Insights - SSE's FY25 results were solid, with a headline EPS of 161p, which was broadly in line with consensus expectations of 159p [7][8]. - The company has reduced its 5-year capex plan from £20.5 billion to £17.5 billion, which is seen positively as it alleviates market concerns regarding balance sheet gearing and funding for network growth capex [3][7]. - The target for renewable capacity by FY27 has been lowered from 9GW to approximately 7GW, which reflects a cautious approach to capital allocation [3][12]. - The market may interpret the capex reduction as a positive signal regarding the upcoming UK Electricity Transmission regulatory review [3][12]. - SSE's share price has shown a recovery of 12% year-to-date, outperforming the FTSE 100 and the Utilities Sector [3]. Financial Performance Summary - For FY25, SSE reported EBIT of £2.4 billion, with adjusted headline numbers excluding a £250 million non-cash impairment in the Southern European Renewables pipeline [8][12]. - The company indicated a dividend per share (DPS) of 64.2p, which aligns with expectations and represents a 7% year-on-year growth [8][12]. - The FY27 EPS guidance was reiterated at 175-200p, which is expected to be supported by regulated inflation-linked contracts [13][12]. Future Guidance - The report notes that SSE did not provide explicit EPS guidance for FY26, but estimates suggest operating profit of £2.3-2.4 billion and EPS of 156-159p, which is marginally below consensus expectations [9][12]. - The company anticipates 40% growth in renewable volumes by FY27, implying a total of 18.6 TWh [13]. - SSE's balance sheet at the end of FY25 showed net debt of £10.2 billion, in line with consensus, and a net debt to EBITDA ratio of 3.2x [12].

Investment Rating - The report assigns an "Overweight" rating to Elia, indicating a positive outlook for the stock [6]. Core Insights - Elia's FY25 guidance includes a net profit range of €490-540 million, which aligns closely with the consensus estimate of €526 million [8][3]. - The company provided divisional guidance for the first time, which is expected to validate consensus expectations [8][3]. - The 2025 capital expenditure (capex) outlook has been slightly revised down in both Belgium and Germany, with Belgium's capex expected at €1.5 billion (previously €1.7 billion) and Germany's at €3.6 billion (previously €3.8 billion) [2]. Summary by Sections Financial Performance - Elia's net profit guidance for 50 Hertz is set at €380-420 million, compared to a consensus of €405 million [3]. - ETB's net profit is expected to be in the range of €255-285 million, against a consensus of €257 million [3]. - The non-regulated segment is projected to incur a loss of €35-45 million, with a positive contribution from Nemo Link Interconnector of approximately €25 million [3]. Capital Expenditure - The revised capex for Belgium is €1.5 billion and for Germany is €3.6 billion, reflecting project delays [2]. Market Position - Elia's current market capitalization is approximately €10.073 billion, with a price target set at €120.00 [6].