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Ameren's Arm Set to Acquire 400 MW Wind Farm in Missouri
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Ameren Corporation’s (AEE - Free Report) subsidiary, Ameren Missouri, recently announced that it has signed an agreement for acquiring a 400-megawatt (MW) wind farm in northeast Missouri. Notably, Ameren Missouri will purchase the farm following its construction.
The transaction seems to be in line with the company’s goal to reduce carbon emissions up to 80% by 2050.
Details of the Agreement
The wind farm will consist of 175 technologically-advanced wind turbines and electricity generated from these turbines will be sufficient enough to power an estimated 120,000 homes by 2020. Post construction, the wind farm will become the largest wind energy provider in Missouri.
The transaction still remains subjected to a number of regulatory conditions, while the financial terms of the deal were kept under wraps.
Benefits of the Buyout
Ameren Missouri’s 20-year outlook plan pledges to expand clean energy in Missouri and possibly neighboring states with an investment of $1 billion in new wind generation projects. This venture is expected to produce at least 700 MW of new wind-generated energy by 2020. Impressively, Ameren’s latest buyout of the wind farm will enable the company to meet 50% of this planned capacity.
Moreover, the company’s Mark Twain Transmission Project, which got the regulatory go-ahead this January, will aid the wind farm to distribute energy more seamlessly in Missouri with the former’s expanded transmission capacity. Indeed, energy from the new wind farm, together with the new transmission lines of the Mark Twain project, will enable Ameren to deliver greater energy reliability, economic growth and better access to clean energy sources to the residents of Missouri.
Our View
Wind energy is one of the fastest growing forms of electricity generation from clean energy in the United States and thereby, plays a pivotal role in the country’s rapid expansion of low-carbon electricity generation. The U.S. wind power industry had a strong finish to 2017, with 7,017 MW of new wind capacity installed in the country, representing $11 billion in new private investment, as per a report published by the American Wind Energy Association (AWEA).
Moreover, the pipeline of wind farms under construction or in advanced development totals 28,668 MW as of 2017 end, reflecting a 34% increase compared to 2016 end. Going forward the wind industry’s powerful growth is poised to continue in 2018 as well, delivering jobs and private investment to rural areas and factory towns and resulting in an overall economic growth.
Such valued growth prospects of the wind industry must have encouraged Ameren Corp. to invest in the latest wind farm.
Missouri, being the national transportation hub for rail, river, road, and air shipments in the United States, has energy consumption per capita at the national median. Naturally, energy demand is high in the state that offers solid opportunities to electricity providers, like Ameren, to expand its footprint in there.
Coming to its operational performance, the company witnessed a solid 48% year-over-year increase, driven by higher Ameren Missouri electric service rates and retail sales. Considering its latest expansion plans for wind energy in the state of Missouri, we may expect the company to deliver similar bottom-line growth in the coming days.
Price Movement
Ameren’s stocks gained 1.0% in a year, compared with the broader industry’s decline of 6.3%. The company’s modernized approach and focus on increasing customer reliability might have led to the outperformance.
Zacks Rank & Key Picks
Ameren carries a Zacks Rank #2 (Buy).
A few top-ranked stocks from the same space are NRG Energy, Inc. (NRG - Free Report) , TerraForm Power, Inc. and Atlantic Power Corporation . While NRG Energy and TerraForm Power sport a Zacks Rank #1 (Strong Buy), Atlantic Power Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NRG Energy posted an average positive earnings surprise of 507.93% over the past four quarters. The Zacks Consensus Estimate for 2018 earnings was up by $1.61 to $3.29 over the past 90 days.
TerraForm Power has an average positive earnings surprise of 114.71% for the past four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 60 cents in the past 90 days.
Atlantic Power posted an average positive earnings surprise of 7.24% in the past four quarters. The Zacks Consensus Estimate for loss was narrowed by 18 cents for 2018 over the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Ameren's Arm Set to Acquire 400 MW Wind Farm in Missouri
Ameren Corporation’s (AEE - Free Report) subsidiary, Ameren Missouri, recently announced that it has signed an agreement for acquiring a 400-megawatt (MW) wind farm in northeast Missouri. Notably, Ameren Missouri will purchase the farm following its construction.
The transaction seems to be in line with the company’s goal to reduce carbon emissions up to 80% by 2050.
Details of the Agreement
The wind farm will consist of 175 technologically-advanced wind turbines and electricity generated from these turbines will be sufficient enough to power an estimated 120,000 homes by 2020. Post construction, the wind farm will become the largest wind energy provider in Missouri.
The transaction still remains subjected to a number of regulatory conditions, while the financial terms of the deal were kept under wraps.
Benefits of the Buyout
Ameren Missouri’s 20-year outlook plan pledges to expand clean energy in Missouri and possibly neighboring states with an investment of $1 billion in new wind generation projects. This venture is expected to produce at least 700 MW of new wind-generated energy by 2020. Impressively, Ameren’s latest buyout of the wind farm will enable the company to meet 50% of this planned capacity.
Moreover, the company’s Mark Twain Transmission Project, which got the regulatory go-ahead this January, will aid the wind farm to distribute energy more seamlessly in Missouri with the former’s expanded transmission capacity. Indeed, energy from the new wind farm, together with the new transmission lines of the Mark Twain project, will enable Ameren to deliver greater energy reliability, economic growth and better access to clean energy sources to the residents of Missouri.
Our View
Wind energy is one of the fastest growing forms of electricity generation from clean energy in the United States and thereby, plays a pivotal role in the country’s rapid expansion of low-carbon electricity generation. The U.S. wind power industry had a strong finish to 2017, with 7,017 MW of new wind capacity installed in the country, representing $11 billion in new private investment, as per a report published by the American Wind Energy Association (AWEA).
Moreover, the pipeline of wind farms under construction or in advanced development totals 28,668 MW as of 2017 end, reflecting a 34% increase compared to 2016 end. Going forward the wind industry’s powerful growth is poised to continue in 2018 as well, delivering jobs and private investment to rural areas and factory towns and resulting in an overall economic growth.
Such valued growth prospects of the wind industry must have encouraged Ameren Corp. to invest in the latest wind farm.
Missouri, being the national transportation hub for rail, river, road, and air shipments in the United States, has energy consumption per capita at the national median. Naturally, energy demand is high in the state that offers solid opportunities to electricity providers, like Ameren, to expand its footprint in there.
Coming to its operational performance, the company witnessed a solid 48% year-over-year increase, driven by higher Ameren Missouri electric service rates and retail sales. Considering its latest expansion plans for wind energy in the state of Missouri, we may expect the company to deliver similar bottom-line growth in the coming days.
Price Movement
Ameren’s stocks gained 1.0% in a year, compared with the broader industry’s decline of 6.3%. The company’s modernized approach and focus on increasing customer reliability might have led to the outperformance.
Zacks Rank & Key Picks
Ameren carries a Zacks Rank #2 (Buy).
A few top-ranked stocks from the same space are NRG Energy, Inc. (NRG - Free Report) , TerraForm Power, Inc. and Atlantic Power Corporation . While NRG Energy and TerraForm Power sport a Zacks Rank #1 (Strong Buy), Atlantic Power Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NRG Energy posted an average positive earnings surprise of 507.93% over the past four quarters. The Zacks Consensus Estimate for 2018 earnings was up by $1.61 to $3.29 over the past 90 days.
TerraForm Power has an average positive earnings surprise of 114.71% for the past four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 60 cents in the past 90 days.
Atlantic Power posted an average positive earnings surprise of 7.24% in the past four quarters. The Zacks Consensus Estimate for loss was narrowed by 18 cents for 2018 over the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>