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.
NextEra Buys Stake in Oncor, Sells Interest in Energy Center
Read MoreHide Full Article
NextEra Energy, Inc. (NEE - Free Report) has made two major announcements last week related to the purchase and sale of certain assets.
Oncor Deal
A newly formed affiliate of NextEra Energy has inked a deal to acquire an 80% controlling stake in Energy Future Holdings Corp.’s ("EFH") unit, Texas-based Oncor Electric Delivery Company. The transaction is worth $18.4 billion.
Under the terms of the deal, NextEra Energy plans to utilize $9.5 billion, primarily for the repayment of EFH’s debt. NextEra Energy will use a combination of cash, including debt, convertible equity and proceeds from asset sales, as well as NextEra common stock to pay certain creditors.
The transaction will allow EFH to reduce debt levels and recover from bankruptcy.
The move was in sync with NextEra Energy’s focus in increasing its regulated generation mix. The company expects Oncor to enable it to achieve the targeted annual earnings growth rate of 6–8% through 2018, off a 2014 base.
The transaction is anticipated to close by the first quarter of 2017, subject to regulatory approvals.
A NextEra Energy Resources (“NEER”) affiliate has inked a deal to sell its ownership interest in Marcus Hook Energy Center, PA to a unit of Connecticut-based Starwood Energy Group Global, LLC for a consideration of $760 million. NextEra Energy Resources expects the sale to result in net proceeds of nearly $255 million after repayment of the existing project related financing.
The deal includes the 790-megawatt (MW) and 50-MW natural-gas fueled power plants in Marcus Hook Energy Center.
Through this sale, NextEra Energy aims to optimize its generation assets and channel these proceeds into its long-term regulated asset portfolio.
These announcements came on the heels of NextEra Energy’s failure to get a regulatory approval for the proposed purchase of Hawaiian Electric Industries Inc. (HE - Free Report) .
Last Earnings Results
NextEra Energy recently reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%. Reported earnings were also up 7.1% year over year on the back of higher earnings from NEER.
In the second quarter, NextEra Energy’s operating revenues were $3,817 million, lagging the Zacks Consensus Estimate of $4,459 million by 14.4%.Reported revenues also fell 12.4% from $4,358 million a year ago. (Read more: NextEra Energy Beats on Q2 Earnings, Maintains View)
Zacks Rank& Key Picks
NextEra Energy carries a Zacks Rank #4 (Sell). A couple of better-ranked peers are Alliant Energy Corporation (LNT - Free Report) and DTE Energy Company (DTE - Free Report) , both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
NextEra Buys Stake in Oncor, Sells Interest in Energy Center
NextEra Energy, Inc. (NEE - Free Report) has made two major announcements last week related to the purchase and sale of certain assets.
Oncor Deal
A newly formed affiliate of NextEra Energy has inked a deal to acquire an 80% controlling stake in Energy Future Holdings Corp.’s ("EFH") unit, Texas-based Oncor Electric Delivery Company. The transaction is worth $18.4 billion.
Under the terms of the deal, NextEra Energy plans to utilize $9.5 billion, primarily for the repayment of EFH’s debt. NextEra Energy will use a combination of cash, including debt, convertible equity and proceeds from asset sales, as well as NextEra common stock to pay certain creditors.
The transaction will allow EFH to reduce debt levels and recover from bankruptcy.
The move was in sync with NextEra Energy’s focus in increasing its regulated generation mix. The company expects Oncor to enable it to achieve the targeted annual earnings growth rate of 6–8% through 2018, off a 2014 base.
The transaction is anticipated to close by the first quarter of 2017, subject to regulatory approvals.
NEXTERA ENERGY Price
NEXTERA ENERGY Price | NEXTERA ENERGY Quote
Asset Sale
A NextEra Energy Resources (“NEER”) affiliate has inked a deal to sell its ownership interest in Marcus Hook Energy Center, PA to a unit of Connecticut-based Starwood Energy Group Global, LLC for a consideration of $760 million. NextEra Energy Resources expects the sale to result in net proceeds of nearly $255 million after repayment of the existing project related financing.
The deal includes the 790-megawatt (MW) and 50-MW natural-gas fueled power plants in Marcus Hook Energy Center.
Through this sale, NextEra Energy aims to optimize its generation assets and channel these proceeds into its long-term regulated asset portfolio.
These announcements came on the heels of NextEra Energy’s failure to get a regulatory approval for the proposed purchase of Hawaiian Electric Industries Inc. (HE - Free Report) .
Last Earnings Results
NextEra Energy recently reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%. Reported earnings were also up 7.1% year over year on the back of higher earnings from NEER.
In the second quarter, NextEra Energy’s operating revenues were $3,817 million, lagging the Zacks Consensus Estimate of $4,459 million by 14.4%.Reported revenues also fell 12.4% from $4,358 million a year ago. (Read more: NextEra Energy Beats on Q2 Earnings, Maintains View)
Zacks Rank& Key Picks
NextEra Energy carries a Zacks Rank #4 (Sell). A couple of better-ranked peers are Alliant Energy Corporation (LNT - Free Report) and DTE Energy Company (DTE - Free Report) , both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>