Tokyo Gas, Japan’s biggest distributor of the fuel, plans to invest in US downstream assets to lift earnings and reinforce the last leg of its energy supply chain. https://t.co/O5ySwcKWkg ...

Photographer: Toru Hanai/Bloomberg Tokyo Gas Co., Japan’s biggest distributor of the fuel, plans to invest in US downstream assets to lift earnings and reinforce the last leg of its energy supply chain. The company is looking to deploy capital in assets like liquefaction plants, export terminals and the energy services sector, said Tokyo Gas President Shinichi Sasayama. “We’ve already made investments in midstream, downstream areas such as marketing and trading, and we intend to raise profitability,” he ...

Core Insights - Spire Inc. has approved a quarterly dividend increase of 5.1%, raising it from 78.5 cents to 82.5 cents, resulting in an annual dividend of $3.30 per share, payable on January 5, 2026 [1][10] Dividend History and Growth - Spire has raised its dividend five times in the last five years, with an annualized dividend growth rate of 4.67% over this period [2] - The company has consistently paid dividends since 1946 and has increased its annual dividend rate for the past 23 years [3] Financial Outlook and Investments - For fiscal 2025, Spire's capital spending is projected to be $875 million, an increase from the previous estimate of $840 million, with significant allocations to various regions [4] - Over the next decade, Spire plans to invest approximately $7.4 billion, supporting a 7-8% annual rate-base growth [4] Customer Base Expansion - Spire is experiencing growth in its natural gas customer base, both organically and through acquisitions, including an agreement to acquire Piedmont Natural Gas' Tennessee local distribution company, expected to add over 200,000 customers [5] Technological Advancements - The company is investing in smart meters, having installed over 350,000 advanced meters in fiscal 2024, benefiting a total of 850,000 customers [6] Industry Context - Domestic-focused, rate-regulated gas distribution utilities, like Spire, are stable performers, allowing for dividend hikes and share buybacks, with other utilities also raising their dividend rates in 2025 [7] - Current dividend yields for comparable companies are 1.96% for Atmos Energy, 2.69% for National Fuel Gas Company, and 4.34% for UGI Corporation, all higher than the S&P 500 composite's yield of 1.51% [8] Stock Performance - In the past year, Spire's shares have risen by 32.9%, outperforming its industry's growth of 10.3% [11]

Core Insights - ONE Gas, Inc. reported a strong third quarter performance with operating income of $65.4 million, up from $59.5 million in the same quarter of 2024, reflecting disciplined execution of strategy and operational efficiency [2][11] - The company narrowed its 2025 financial guidance, expecting net income in the range of $262 million to $266 million and diluted earnings per share between $4.34 and $4.40 [10][13] - A quarterly dividend of $0.67 per share was declared, payable on December 1, 2025, indicating a commitment to returning value to shareholders [11] Financial Performance - For the third quarter of 2025, total revenues reached $379.1 million, compared to $340.4 million in the third quarter of 2024, driven by increased natural gas sales and new rates [11][23] - Year-to-date operating income for 2025 was $317.7 million, up from $274.6 million in 2024, highlighting consistent growth [4][11] - Net income for the third quarter was $26.5 million, or $0.44 per diluted share, compared to $19.3 million, or $0.34 per diluted share, in the prior year [11][23] Capital Expenditures - Capital expenditures and asset removal costs for the third quarter of 2025 totaled $207.6 million, slightly higher than $197.7 million in the same period last year, primarily for system integrity and service extension [3][11] - Year-to-date capital expenditures were $575.4 million, compared to $571.7 million in the same period of 2024, indicating ongoing investment in infrastructure [5][11] Regulatory Activities - Texas Gas Service filed a rate case in June 2025, requesting a $41.1 million revenue increase, with new rates expected to take effect in the first quarter of 2026 [6] - Kansas Gas Service and Oklahoma Natural Gas also filed for rate increases in 2025, reflecting ongoing regulatory adjustments to support operational costs [8][9] Customer Growth - The average number of customers served by ONE Gas increased to 2.3 million, with notable growth in residential sales in Oklahoma and Texas contributing to revenue increases [11][18] - Natural gas sales volumes for the third quarter were 12.3 Bcf, up from 11.7 Bcf in the same quarter of 2024, indicating a positive trend in demand [11][31]

Core Points - Unitil Corporation has completed the acquisition of Maine Natural Gas Company from Avangrid Enterprises, with the purchase price totaling $86.0 million plus approximately $7.1 million for estimated working capital [1][3] - Maine Natural serves around 6,300 residential and commercial natural gas customers in the Greater Portland region and Augusta, with a distribution system of approximately 230 miles [2] - Following this acquisition, Unitil will serve approximately 213,300 customers across Maine, New Hampshire, and Massachusetts [2] Financial Details - The estimated rate base of Maine Natural was approximately $69.0 million as of December 31, 2024 [2] - Unitil financed the acquisition primarily through a term loan from Scotiabank [3] Strategic Importance - The acquisition is seen as highly complementary to Unitil's existing natural gas distribution operations in Maine, enhancing their service capabilities [3] - Unitil emphasizes its commitment to providing safe, clean, reliable, and affordable energy to its customers through locally managed operations [3][5]

Core Insights - CenterPoint Energy has agreed to sell its natural gas local distribution business in Ohio to National Fuel Gas for $2.62 billion [1] Company Summary - CenterPoint Energy is divesting its natural gas distribution operations in Ohio, indicating a strategic shift in its business focus [1] - National Fuel Gas is acquiring the Ohio distribution business, which may enhance its market presence and operational scale in the region [1] Financial Summary - The sale is valued at $2.62 billion, reflecting a significant transaction in the energy sector [1]

Core Viewpoint - Investors in the Utility - Gas Distribution sector should consider Spire (SR) and Atmos Energy (ATO) as potential investment opportunities, with a focus on their valuation metrics to determine which stock offers better value [1] Valuation Metrics - Both Spire and Atmos Energy currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3] - Key valuation metrics for Spire include a forward P/E ratio of 16.62 and a PEG ratio of 2.44, while Atmos Energy has a forward P/E of 22.54 and a PEG ratio of 3.08 [5] - Spire's P/B ratio stands at 1.53, compared to Atmos Energy's P/B ratio of 2.11, contributing to Spire's Value grade of B and Atmos Energy's Value grade of D [6]

Consumer Sentiment - U.S. consumer sentiment remained low in October, with a preliminary reading of 55, down 0.1 points from September's 55.1, but higher than the consensus estimate of 54.1 [4][11] - Consumers' one-year inflation expectations decreased to 4.6% in October from 4.7% in the previous month, while long-term inflation expectations remained unchanged at 3.7% [5][6] Market Conditions - The ongoing government shutdown has led to market volatility, with all three major indexes ending in negative territory for the week [7][11] - Investors are seeking stability in low-beta, defensive stocks amid concerns about inflation and the labor market [2][11] Recommended Stocks - **Atmos Energy Corporation (ATO)**: Expected earnings growth rate of 7.5%, Zacks Rank 2, beta of 0.74, and a dividend yield of 1.97% [9][8] - **CenterPoint Energy, Inc. (CNP)**: Expected earnings growth rate of 8.6%, Zacks Rank 2, beta of 0.57, and a dividend yield of 2.24% [13][12] - **Consolidated Water Co. Ltd. (CWCO)**: Expected earnings growth rate of 0.9%, Zacks Rank 2, beta of 0.53, and a dividend yield of 1.67% [15][14] - **Northwest Natural Holding Company (NWN)**: Expected earnings growth rate of 25.3%, Zacks Rank 2, beta of 0.57, and a dividend yield of 4.39% [17][16]

Core Insights - The Bengaluru Airport City Limited (BACL) has signed an agreement with GAIL Gas Ltd to develop a city gas distribution facility at Bengaluru Airport City, which includes a Compressed Natural Gas (CNG) station and associated infrastructure, Piped Natural Gas (PNG) installations, and other clean energy solutions [7][6][5] - The project aims to facilitate CNG infrastructure for various vehicles, enhancing Bengaluru Airport City's position as a model for integrating sustainable energy solutions into urban and commercial areas [2][7] - The development is expected to significantly contribute to India's clean energy transition and promote environmentally friendly natural gas adoption [5][6] Company Overview - GAIL Gas Limited, a subsidiary of GAIL (India) Limited, is authorized by the Petroleum and Natural Gas Regulatory Board to implement city gas distribution projects in Bengaluru Urban and Rural Districts [6][7] - GAIL Gas is involved in supplying PNG to domestic households, industries, and commercial customers, as well as CNG to vehicles through its stations across the districts [7] Industry Impact - The establishment of the CNG station is anticipated to benefit thousands of vehicles, providing convenient access to CNG refueling for commuters traveling to and from Kempegowda International Airport [6][7] - The project aligns with international sustainability standards and enhances the attractiveness of Bengaluru Airport City as a smart, green business destination [2][7]

Group 1 - Aktsiaselts Infortar's subsidiary AS Elenger Grupp has secured a EUR 170 million syndicated term loan facility to refinance existing long-term debt and invest in gas distribution networks [1] - The financing will enhance investment capacity, improve service quality, and strengthen supply security for over 400,000 customers, linking gas infrastructure to climate goals [2] - The transaction does not impact Infortar's debt servicing capacity and has no material effect on the company's economic activities [6] Group 2 - Infortar operates in seven countries, focusing on maritime transport, energy, and real estate, with a 68.47% stake in Tallink Grupp and a 100% stake in Elenger Grupp [7] - The company has a diverse portfolio, including approximately 141,000 m² of real estate and employs 6,866 people across 110 companies [7]