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NiSource Gains on Long-Term Infrastructure Investment Plans
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We recently updated research report on NiSource, Inc (NI - Free Report) , an energy holding company. Along with its subsidiaries, the company provides natural gas, electricity and other products and services in the U.S. We expect consistent investments to strengthen NiSource’s existing infrastructure and boost growth. Focus on clean energy is expected to drive performance. However, high debt levels are concern.
In a year’s time, shares of NiSource have inched up 0.3% against the industry’s decline of 5.5%.
What’s Driving NiSource?
NiSource has estimated long-term regulated infrastructure investments worth $30 billion. Out of its total planned expenditure, the company will invest nearly $20 billion to strengthen gas operations and will allocate $10 billion to boost electricity operations. The annual investment is expected to between $1.6 billion and $1.8 billion in 2019-2020 time frame.
NiSource has a 100% regulated utility business model. Its planned regulated investments will improve reliability and safety of its services as well as provide efficient natural gas services to an expanding customer base. The company has made considerable progress on regulatory initiatives across different states.
More than 75% of the company’s capital expenditure starts to provide return within the 12 months of investment. The expected benefits from ongoing investments will allow the company to deliver targeted earnings and dividend growth of 5-7% through 2020.
To lower carbon footprint and focus more on clean generation, the company is focusing to lower emission levels during electricity production. The company will retrofit emission control equipment in its existing coal plants, retire old coal plants and replace the coal fired units by renewable sources.
However, aging infrastructure, high debt levels and adverse weather conditions might deter growth.
Ameren Corporation (AEE - Free Report) , with a Zacks Rank #2, reported second-quarter 2018 earnings of 97 cents per share from continuing operations, which surpassed the Zacks Consensus Estimate of 79 cents by 22.8%.
Algonquin Power & Utilities (AQN - Free Report) , with a Zacks Rank #2, posted second quarter earnings of 11 cents, beating the Zacks Consensus Estimate of 9 cents by 22.2%.
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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NiSource Gains on Long-Term Infrastructure Investment Plans
We recently updated research report on NiSource, Inc (NI - Free Report) , an energy holding company. Along with its subsidiaries, the company provides natural gas, electricity and other products and services in the U.S. We expect consistent investments to strengthen NiSource’s existing infrastructure and boost growth. Focus on clean energy is expected to drive performance. However, high debt levels are concern.
In a year’s time, shares of NiSource have inched up 0.3% against the industry’s decline of 5.5%.
What’s Driving NiSource?
NiSource has estimated long-term regulated infrastructure investments worth $30 billion. Out of its total planned expenditure, the company will invest nearly $20 billion to strengthen gas operations and will allocate $10 billion to boost electricity operations. The annual investment is expected to between $1.6 billion and $1.8 billion in 2019-2020 time frame.
NiSource has a 100% regulated utility business model. Its planned regulated investments will improve reliability and safety of its services as well as provide efficient natural gas services to an expanding customer base. The company has made considerable progress on regulatory initiatives across different states.
More than 75% of the company’s capital expenditure starts to provide return within the 12 months of investment. The expected benefits from ongoing investments will allow the company to deliver targeted earnings and dividend growth of 5-7% through 2020.
To lower carbon footprint and focus more on clean generation, the company is focusing to lower emission levels during electricity production. The company will retrofit emission control equipment in its existing coal plants, retire old coal plants and replace the coal fired units by renewable sources.
However, aging infrastructure, high debt levels and adverse weather conditions might deter growth.
Zacks Rank & Utility Releases
NiSource carries a Zacks Rank #3 (Hold).
DTE Energy (DTE - Free Report) holding a Zacks Rank #2 (Buy) reported second-quarter 2018 operating earnings per share (EPS) of $1.36. The figure beat the Zacks Consensus Estimate of $1.11 by 22.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren Corporation (AEE - Free Report) , with a Zacks Rank #2, reported second-quarter 2018 earnings of 97 cents per share from continuing operations, which surpassed the Zacks Consensus Estimate of 79 cents by 22.8%.
Algonquin Power & Utilities (AQN - Free Report) , with a Zacks Rank #2, posted second quarter earnings of 11 cents, beating the Zacks Consensus Estimate of 9 cents by 22.2%.
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 >>