Core Insights - Black Hills Corp. reported a net income of $24.9 million for Q3 2025, slightly up from $24.4 million in Q3 2024, with diluted EPS of $0.34 compared to $0.35 in the previous year [1][2] - Adjusted EPS for Q3 2025 was $0.45, benefiting from new rates and rider recovery, despite higher financing and depreciation costs [1][3] - The company reaffirmed its 2025 adjusted earnings guidance in the range of $4.00 to $4.20 per share, excluding merger-related costs [5][11] Financial Performance - Year-to-date GAAP EPS increased to $2.58 from $2.52 in 2024, while adjusted EPS rose to $2.68 from $2.52, driven by new rates and favorable weather [2][11] - Total revenue for Q3 2025 was $430.2 million, up from $401.6 million in Q3 2024, with operating income of $78.7 million compared to $75.8 million [18][26] - Operating expenses increased to $351.5 million in Q3 2025 from $325.8 million in Q3 2024, primarily due to higher fuel and maintenance costs [18][26] Strategic Initiatives - The company is advancing a $4.7 billion five-year capital plan focused on safety, reliability, and growth, including the completion of the 260-mile Ready Wyoming transmission expansion project by year-end 2025 [4][5] - Black Hills Corp. is preparing to file a new electric rate review in South Dakota and has secured a settlement for natural gas rates in Nebraska [3][5] - The planned merger with NorthWestern Energy is expected to close in the second half of 2026, enhancing the company's scale and growth opportunities [6][7] Operational Highlights - The Ready Wyoming project is expected to enhance system resiliency and support local economic growth, while the Lange II generation project in South Dakota will replace aging infrastructure [4][9] - The company is negotiating with partners to expand its data center load pipeline to over 3 GW, driven by demand from Microsoft and Meta [5][6] - Electric Utilities' operating income decreased due to milder weather and higher operating expenses, while Gas Utilities' operating income increased due to new rates and rider recovery [23][25][27]

Core Viewpoint - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Avista, Regions Financial, and Duke Energy recently announcing dividend hikes and offering yields up to 5% [1] Avista - Avista Corp. has increased its dividends for 22 consecutive years, with the latest hike on Feb. 12 raising the quarterly payout from $0.475 to $0.49 per share, resulting in an annual figure of $1.96 per share [3] - The company maintained the same dividend payout in its announcement on Aug. 6, with a current dividend yield of 5.03% [3] - Avista's annual revenue as of June 30 was $1.96 billion, and Q2 2025 revenues were reported at $411 million with an EPS of $0.17, both missing market expectations [4] Regions Financial - Regions Financial Corp. has raised its dividends for 12 consecutive years, with a recent increase on July 16 of 6% to $0.265 per share, equating to an annual figure of $1.06 per share [5] - The company maintained the same dividend payout in its announcement on Oct. 15, with a current dividend yield of 4.37% [5] - Regions Financial's annual revenue as of June 30 was $7.29 billion, and Q3 2025 revenues were reported at $1.94 billion with an EPS of $0.63, both exceeding market expectations [6] Duke Energy - Duke Energy Corp. has increased its dividends for 18 consecutive years, with the latest hike on July 15 raising the quarterly payout from $1.045 to $1.065 per share, resulting in an annual figure of $4.26 per share [8] - The company maintained the same dividend payout in its announcement on Oct. 14, with a current dividend yield of 3.34% [8]

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Black Hills, Genuine Parts, and Agree Realty recently announcing dividend hikes [1] Group 1: Black Hills - Black Hills Corp. operates as an electric and natural gas utility company in the U.S. [2] - The company has increased its dividends for 55 consecutive years, with the most recent hike on January 24, raising the quarterly payout from $0.65 to $0.676 per share, resulting in an annual figure of $2.70 per share [3] - As of June 30, Black Hills reported annual revenue of $2.24 billion, with Q2 2025 revenues of $439 million, which was below the consensus estimate of $448.40 million, while EPS of $0.38 exceeded the consensus of $0.37 [4] Group 2: Genuine Parts - Genuine Parts Co. is a global service provider of automotive and industrial replacement parts [4] - The company has raised its dividends for 69 consecutive years, with the latest increase on February 18, raising the quarterly payout by 3% to $1.03 per share, equating to an annual figure of $4.12 per share [5] - As of September 30, Genuine Parts reported annual revenue of $24.06 billion, with Q3 2025 revenues of $6.26 billion, surpassing the consensus estimate of $6.13 billion, while EPS of $1.98 fell short of the consensus of $2 [6] Group 3: Agree Realty - Agree Realty Corp. is a real estate investment trust that focuses on acquiring and developing properties net leased to leading omnichannel retail tenants [7]

Core Viewpoint - Avista Corporation (NYSE:AVA) is recognized as one of the best dividend stocks with a yield exceeding 4%, appealing to investors seeking reliable income sources [1]. Group 1: Company Overview - Avista Corporation is a regulated electric and natural gas utility based in Spokane, Washington, serving approximately 423,000 electric customers and 383,000 natural gas customers across Washington, Idaho, and Oregon [2]. - The company also owns Alaska Electric Light & Power (AEL&P), which provides electricity in Alaska [2]. Group 2: Operational Focus - Avista focuses on delivering reliable utility services, managing costs efficiently, and investing significantly in infrastructure and clean energy initiatives [3]. - The operations are closely regulated, with oversight from state and federal agencies, making regulatory approvals and effective resource management critical for executing major projects [3]. Group 3: Financial Performance - Avista has demonstrated consistent dividend growth, with a quarterly dividend of $0.49 per share, reflecting a 3.2% increase earlier this year [4]. - The company has extended its dividend growth streak to 23 years, contributing to its reputation as a reliable utility stock [4]. - As of October 12, the stock has a dividend yield of 5.29% [4].

Core Insights - Palm Valley Capital Fund reported a 2.35% appreciation in Q3 2025, underperforming the S&P SmallCap 600's 9.11% gain and the Morningstar Small Cap Total Return Index's 7.99% rise [1] - The Fund's cash equivalents increased from 73.5% to 74.1% during the quarter, reflecting a cautious investment strategy [1] - Small-cap stocks outperformed large caps due to expectations of Federal Reserve easing and reduced tariff concerns impacting corporate profits [1] Company Focus: Avista Corporation (NYSE:AVA) - Avista Corporation, a utility company, had a one-month return of 3.17% and a 52-week loss of 0.08%, with a market capitalization of $3.032 billion as of October 7, 2025 [2] - The Fund initiated a small position in Avista after a disappointing earnings report and stock price decline, believing the core utility business remains strong despite impairments in clean energy investments [3] - Avista is currently valued at 14 times expected earnings, 1.2 times tangible book value, and offers a 5.2% dividend yield, indicating an attractive investment opportunity [3] Hedge Fund Interest - Avista Corporation was held by 27 hedge fund portfolios at the end of Q2 2025, a decrease from 30 in the previous quarter, suggesting a decline in popularity among hedge funds [4] - While Avista is recognized for its potential, the company is viewed as less favorable compared to certain AI stocks that are believed to offer greater upside potential and lower downside risk [4]

Core Points - CenterPoint Energy, Inc. is a multi-state electric and natural gas delivery company serving approximately 7 million metered customers across Indiana, Minnesota, Ohio, and Texas [1] - The company is headquartered in Houston and is the only Texas-domiciled investor-owned utility [1] - As of June 30, 2025, CenterPoint Energy had approximately $44 billion in assets [1] - The company employs around 8,300 individuals and has been serving customers for over 150 years [1]

Core Viewpoint - The merger between Black Hills Corp. and NorthWestern Energy Group is expected to create a premier regional regulated electric and natural gas utility company, enhancing scale, financial strength, and long-term value for stakeholders [1][2]. Transaction Overview - The merger is an all-stock, tax-free transaction with a pro forma market capitalization of approximately $7.8 billion and a combined enterprise value of $15.4 billion [1]. - NorthWestern shareholders will receive a fixed exchange ratio of 0.98 shares of Black Hills for each share of NorthWestern, implying a 4% premium [3]. Strategic and Financial Rationale - The combined company will serve approximately 2.1 million customers across eight states, with a total rate base of approximately $11.4 billion [4][7]. - The merger is expected to support a long-term EPS growth rate of 5% to 7%, greater than the standalone growth rates of both companies [7]. - The combined investment plans from 2025 to 2029 exceed $7 billion, focusing on critical infrastructure to meet rising energy demand [7]. Leadership and Governance - The leadership team will include executives from both companies, with Brian Bird serving as CEO and a board comprising six directors from Black Hills and five from NorthWestern [9][10]. - The combined company will be headquartered in Rapid City, South Dakota, maintaining a strong operational presence across its service territory [11]. Community and Environmental Commitment - The merger aims to advance a clean energy future through investments in renewable energy and infrastructure modernization [8]. - Both companies are committed to maintaining strong community support and corporate citizenship across their service areas [8].

Core Viewpoint - CenterPoint Energy is actively monitoring a low-pressure system designated as Invest 93L, which is currently moving along the Florida Panhandle, with minimal expected impact on its Greater Houston service area [1][2][4]. Weather Monitoring and Preparedness - Current weather models indicate a low likelihood of the system developing into a tropical depression or storm, with only scattered thunderstorms expected in the Greater Houston area [2][6]. - CenterPoint's meteorology team is prepared to take further action if the disturbance strengthens or changes track [3][4]. Resiliency Initiatives - Following Hurricane Beryl, CenterPoint launched the Greater Houston Resiliency Initiative (GHRI), implementing significant improvements across its 12-county service area [5]. - Key actions include the installation of over 100 weather monitoring stations, the replacement of more than 26,000 storm-resilient poles, and the undergrounding of over 400 miles of power lines to enhance overall resiliency [7][8]. Customer Communication and Safety - CenterPoint encourages customers to sign up for the Power Alert Service to receive timely updates on outages and restoration efforts [9]. - The company emphasizes the importance of having a safety plan and provides storm-related safety tips in multiple languages [10][11]. Company Overview - CenterPoint Energy, Inc. serves approximately 7 million metered customers across multiple states and has approximately $44 billion in assets as of March 31, 2025 [12].

Core Insights - Black Hills Corp. reported financial results for Q1 2025, showing operating income of $205 million, net income available for common stock of $134.3 million, and earnings per share (EPS) of $1.87, consistent with Q1 2024 [1][12][21] - The company reaffirmed its full-year earnings guidance, projecting a growth rate of 5% for 2025, with a long-term EPS growth target of 4% to 6% [2][4] Financial Performance - Revenue for Q1 2025 was $805.2 million, up from $726.4 million in Q1 2024, driven by new rates and increased demand [1][13] - Operating expenses increased to $600.2 million from $533.1 million, primarily due to higher fuel and purchased power costs [1][13] - Interest expense rose to $51.3 million from $44 million, reflecting higher interest rates [21] Regulatory and Growth Initiatives - The company implemented new electric rates in Colorado, resulting in an additional $17.5 million in annual revenue [7][8] - Black Hills is advancing regulatory reviews for gas rates in Nebraska and Kansas, seeking $35 million in new annual revenues in Nebraska [6][9] - The Ready Wyoming transmission expansion project, a 260-mile initiative, is on track for completion by year-end 2025, enhancing long-term cost stability and system resiliency [3][11] Operational Highlights - Wyoming Electric set new peak loads, reflecting a nearly 10% increase over 2024, driven by data center and blockchain growth [6][11] - The company is pursuing the addition of 350 megawatts of renewable generation resources in Colorado as part of its Clean Energy Plan [11][21] - Black Hills' gas utilities saw an operating income increase of $20.7 million, attributed to new rates and favorable winter weather [21][25] Future Outlook - The company expects to serve 500 megawatts of data center demand by the end of its five-year plan, with a projected earnings contribution of over 10% by 2028 [4][6] - Black Hills anticipates continued growth in its utility rate base and organic growth opportunities in its service territories [4][6] - The board approved a quarterly dividend of $0.676 per share, marking 55 consecutive years of increases [11][21]