We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UGI Corp Arm Buys GHI Energy, Expands Clean Energy Business
Read MoreHide Full Article
UGI Corporation’s (UGI - Free Report) subsidiary, UGI Energy Services, LLC, has completed the acquisition of a Houston-based renewable natural gas company, GHI Energy, LLC ("GHI").The acquired entity being one of the leading renewable natural gas (RNG) marketers in California is primarily focused on providing RNG to vehicle fleets by coordinating supply from a portfolio of sources across the country.
Rationale Behind the Acquisition
This investment in GHI is in line with the company’s strategy to reduce its greenhouse gas emissions. Also, its unit’s expertise in energy commodity marketing and its strong customer base will provide a platform to expand GHI’s marketing, supply & logistics as well aschannelize its capabilities into other parts of the country.
Moreover, this deal will position UGI Corp as a leading provider of energy solutions, meeting the environmental and social needs of many communities that it serves.
Capital Investment Plans
UGI Corp has been investing heavily in addressing the infrastructural need of various capital projects as well ascompleting many acquisitions to curb competition. Further, this will boost the safety and reliability of its natural gas production and storage facilities. The company also puts money on replacing aging infrastructure tomodernize the system. Notably, in 2019, it acquired Columbia Midstream Group, LLC (“CMG”) and AmeriGas Partners, L.P.
However, considering the COVID-19 impact, UGI Corp slashed its capital expenditure guidance to $730 million from $850 million for fiscal 2020. Also, the company is pushing some of its capital projects to fiscal 2021 forcoping with the pandemic-related unprecedented challenges.
Conclusion
With increasing awareness to trim toxic emissions globally, companies are adopting clean energy sources to provide an environmentally-friendly resource to its end users. Adhering to this policy, UGI Corp and its subsidiaries are set on a mission to produce clean, affordable and reliable energy.
Apart from UGI Corp, companies like Chesapeake Utilities Corporation (CPK - Free Report) are undertaking initiatives to reduce toxic emissions. Notably, Chesapeake Utilities recently entered into a partnership with CleanBay Renewables Inc. to bring more renewable natural gas to its Delmarva operations.
Zacks Rank & Price Performance
Currently, the stock carries a Zacks Rank #4 (Sell).
Shares of the company have lost 30.2% in the past six months compared with the industry’s decline of 30.8%.
The Zacks Consensus Estimate for Atmos Energy’s fiscal 2020 earnings has moved 0.21% north over the past 60 days. It’s long-term (three-five years) earnings are expected to grow at 7.20%.
The long-term earnings growth rate for Southwest Gas is pegged at 6%. The Zacks Consensus Estimate for 2020 earnings has remained unchanged over the past 60 days.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
UGI Corp Arm Buys GHI Energy, Expands Clean Energy Business
UGI Corporation’s (UGI - Free Report) subsidiary, UGI Energy Services, LLC, has completed the acquisition of a Houston-based renewable natural gas company, GHI Energy, LLC ("GHI").The acquired entity being one of the leading renewable natural gas (RNG) marketers in California is primarily focused on providing RNG to vehicle fleets by coordinating supply from a portfolio of sources across the country.
Rationale Behind the Acquisition
This investment in GHI is in line with the company’s strategy to reduce its greenhouse gas emissions. Also, its unit’s expertise in energy commodity marketing and its strong customer base will provide a platform to expand GHI’s marketing, supply & logistics as well aschannelize its capabilities into other parts of the country.
Moreover, this deal will position UGI Corp as a leading provider of energy solutions, meeting the environmental and social needs of many communities that it serves.
Capital Investment Plans
UGI Corp has been investing heavily in addressing the infrastructural need of various capital projects as well ascompleting many acquisitions to curb competition. Further, this will boost the safety and reliability of its natural gas production and storage facilities. The company also puts money on replacing aging infrastructure tomodernize the system. Notably, in 2019, it acquired Columbia Midstream Group, LLC (“CMG”) and AmeriGas Partners, L.P.
However, considering the COVID-19 impact, UGI Corp slashed its capital expenditure guidance to $730 million from $850 million for fiscal 2020. Also, the company is pushing some of its capital projects to fiscal 2021 forcoping with the pandemic-related unprecedented challenges.
Conclusion
With increasing awareness to trim toxic emissions globally, companies are adopting clean energy sources to provide an environmentally-friendly resource to its end users. Adhering to this policy, UGI Corp and its subsidiaries are set on a mission to produce clean, affordable and reliable energy.
Apart from UGI Corp, companies like Chesapeake Utilities Corporation (CPK - Free Report) are undertaking initiatives to reduce toxic emissions. Notably, Chesapeake Utilities recently entered into a partnership with CleanBay Renewables Inc. to bring more renewable natural gas to its Delmarva operations.
Zacks Rank & Price Performance
Currently, the stock carries a Zacks Rank #4 (Sell).
Shares of the company have lost 30.2% in the past six months compared with the industry’s decline of 30.8%.
Key Picks
A few better-ranked stocks are Atmos Energy Corporation (ATO - Free Report) and Southwest Gas Corporation (SWX - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Atmos Energy’s fiscal 2020 earnings has moved 0.21% north over the past 60 days. It’s long-term (three-five years) earnings are expected to grow at 7.20%.
The long-term earnings growth rate for Southwest Gas is pegged at 6%. The Zacks Consensus Estimate for 2020 earnings has remained unchanged over the past 60 days.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>