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]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score capitalizes on existing trends in stock prices and earnings [5] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in portfolio building [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential to utilize Style Scores for optimal stock selection [9] Stock Highlight: DTE Energy - DTE Energy, based in Detroit, is a diversified energy company with a Zacks Rank of 2 (Buy) and a VGM Score of B [11] - The company is projected to have a year-over-year earnings growth of 6% for the current fiscal year, supported by upward revisions from analysts [12] - DTE's earnings consensus estimate has increased by $0.02 to $7.24 per share, with an average earnings surprise of 11.8% [12]

Core Points - FirstEnergy Corp. is making significant progress towards becoming a premier electric company, as highlighted by CEO Brian X. Tierney during the 2025 Annual Meeting of Shareholders [1][6] - The company has redesigned its operating model to enhance accountability and decision-making closer to customers and regulators [2][3] - FirstEnergy's Energize365 capital investment program aims to improve the electric grid's performance, with a $4.5 billion investment in 2024, marking a 20% increase from 2023 [4] - The company has expanded its five-year investment target to $28 billion through 2029, including $5 billion planned for 2025 [5] - FirstEnergy emphasizes its commitment to delivering electricity that strengthens society and powers the economy [6] Preliminary Voting Results - Shareholders reelected 10 directors and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 [7] - An advisory vote on named executive officer compensation was approved by shareholders [7] - A proposal for a report on lobbying activities was not approved by shareholders, although FirstEnergy discloses such activities on its website [8] Company Overview - FirstEnergy serves over 6 million customers across six states and operates approximately 24,000 miles of transmission lines [9]

Since inception Class A shareholders have received a total of $14.31 per share and Preferred shareholders have received a total of $11.20 per share inclusive of this distribution, for a combined total of $25.50. The Company invests in a portfolio of high yielding Canadian Companies as follows: | Banks | Investment Management | Life Insurance | Utilities & Other | | --- | --- | --- | --- | | Bank of Montreal | AGF Management Ltd. | Great-West Lifeco Inc. | BCE Inc. | | | | Manulife Financial | | | Bank of No ...

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].

May 21, 2025 06:06 AM GMT Elia | Europe In-Line 1Q25 Trading Update Elia will report 1H25 results on 2nd June. See our recent notes on Elia: Elia: More to Run – Moving to Analyst Top Pick (6 May 2025) Elia: Equity Overhang Resolved, Back to Fundamentals (9 Apr 2025) Reaction to earnings Unchanged In-line Largely unchanged Impact to our thesis Financial results versus consensus Direction of next 12-month consensus EPS Key Takeaways Guidance by division: Elia provided FY25 divisional guidance for the first ti ...

Market Overview - Concerns about a potential bear market have eased, with the S&P 500 index rallying and currently up 1% for the year [1] Company Performance NRG Energy - NRG Energy is the top-performing stock on the S&P 500, up 76% this year, driven by the acquisition of natural gas generation facilities from LS Power, which will double its generating capacity [4] - The company reported Q1 earnings with revenue of $8.6 billion, a 16% year-over-year increase, and net income of $750 million, up 47% [5] - Shares trade at around 25 times trailing earnings, considered expensive for an energy stock, but may be a good long-term investment due to rising energy demands from AI [6] Palantir Technologies - Palantir Technologies is up 71% this year, benefiting from strong growth in its AI-driven data analytics business [7] - The company reported Q1 earnings with revenue of $883.9 million, a 39% year-over-year increase, and projects full-year revenue of around $3.9 billion [8] - Despite strong growth, the stock trades at 560 times trailing profits, raising concerns about potential overvaluation and the possibility of a correction [9] Uber Technologies - Uber Technologies has increased by 52% this year, with Q1 gross bookings rising by 14% and revenue totaling $11.5 billion [10][11] - The operating profit surged from $172 million a year ago to $1.2 billion, indicating strong financial performance [11] - The stock trades at 16 times trailing earnings, and despite its recent rise, it may still present investment opportunities due to its flexible business model and growth potential [12]

Core Viewpoint - Southwest Gas Holdings, Inc. is conducting a secondary public offering of 9,000,000 shares of Centuri Holdings, Inc. at a price of $17.50 per share, with an additional option for underwriters to purchase 1,350,000 shares [1][2] Group 1: Offering Details - The offering is expected to close on May 22, 2025, subject to customary closing conditions [1] - Icahn Partners and Icahn Partners Master Fund LP will purchase $50 million in shares of Centuri's common stock in a concurrent private placement at the same price per share as the public offering [2] - The shares are being offered under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission [4] Group 2: Underwriters and Management - J.P. Morgan, UBS Investment Bank, and Wells Fargo Securities are acting as joint lead book-running managers for the offering [3] - BofA Securities and Moelis & Company are serving as book-running managers, with additional co-managers including Baird, KeyBanc Capital Markets, and others [3] Group 3: Company Background - Southwest Gas Holdings, Inc. operates through its subsidiary Southwest Gas Corporation, providing natural gas services to over 2 million customers in Arizona, Nevada, and California [6] - Centuri Holdings, Inc. partners with regulated utilities to build and maintain energy networks across the U.S. and Canada [7]

Core Viewpoint - Southern Company has announced the pricing of $1.45 billion in Convertible Senior Notes, reflecting an increase of $200 million from the previously announced offering size, with an expected closing date of May 23, 2025 [1][4]. Group 1: Offering Details - The Convertible Notes have a 3.25% interest rate, payable semiannually, and will mature on June 15, 2028 [2][3]. - The initial conversion rate is set at 8.8077 shares per $1,000 principal amount, equating to a conversion price of approximately $113.54 per share, representing a 25% premium over the last reported sale price [2][3]. - An option for initial purchasers to buy an additional $200 million in Convertible Notes is available within 13 days of issuance [1]. Group 2: Use of Proceeds - Southern Company estimates net proceeds of approximately $1.44 billion, or $1.63 billion if the additional option is fully exercised, which will primarily be used to repurchase existing Convertible Notes and for general corporate purposes [4]. - Approximately $1.25 billion of the net proceeds will be allocated to repurchase about $781.6 million of Series 2023A Convertible Notes and $328.1 million of Series 2024A Convertible Notes [4]. Group 3: Repurchase Transactions - The company has entered into privately negotiated transactions to repurchase portions of the Existing Convertible Notes, with terms dependent on various market factors [5]. - There is an expectation that holders of the Existing Convertible Notes may engage in derivative transactions or stock trades to hedge their exposure related to these repurchase transactions [6][7].

Core Viewpoint - Southwest Gas Holdings, Inc. is initiating a secondary public offering of 9,000,000 shares of Centuri Holdings, Inc. common stock, with an option for underwriters to purchase an additional 1,350,000 shares [1][2] Group 1: Offering Details - The offering includes 9,000,000 existing shares of Centuri's common stock, with a potential additional purchase option for underwriters [1] - Icahn Partners and Icahn Partners Master Fund LP will concurrently purchase $50 million in shares from Southwest Gas Holdings at the offering price [2] - The shares are being offered under an effective shelf registration statement filed with the SEC, and a preliminary prospectus supplement will be available [3] Group 2: Company Background - Southwest Gas Holdings operates through its subsidiary, Southwest Gas Corporation, providing natural gas services to over 2 million customers in Arizona, Nevada, and California [5] - Centuri Holdings, Inc. is a utility infrastructure services company that collaborates with regulated utilities to maintain energy networks across the U.S. and Canada [6]