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Utilities Prepare as Hurricane Delta Nears the U.S. Gulf Coast
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Hurricane Delta is moving toward the U.S. Gulf Coast with regained strength, after ravaging Mexico’s Yucatan Peninsula on Oct 7. Notably, the tropical storm hit the Mexican coast as a Category 2 storm but as predicted by the National Hurricane Center, the storm might intensify into a Category 3 hurricane before making its landfall on the U.S. coast.
The hurricane with its devastating storm and damaging winds are expected to hit Louisiana over the weekend while tropical storm warnings are already issued for both the states of Texas and Louisiana. No doubt, Utilities are bracing up for a severe impact.
Hurricane Delta & Utilities
Catastrophic storms are usually accompanied by wind gusts, thereby snapping and toppling electricity poles, wires and the nearby trees. Consequently, utilities’ operations come to a halt while the resultant loss flares up costs for restoration. Such catastrophic storms also tend to damage natural gas pipelines.
In fact the advent of Hurricane Delta brings back the memory of Hurricane Laura, which made landfall on Aug 27 near the Texas-Louisiana border as a Category 4 storm and left a trail of destruction in its wake.
With Louisiana and its Utilities still recovering from the ill effects of Laura, another catastrophic storm like Hurricane Delta with predicted wind speed of 125 miles per hour can be expected to have a significant impact on the performance of utility providers. The state may witness widespread power outage and the flash flooding anticipated after the storm may also delay restoration work.
Utilities to Watch
Knowing how much rampage a hurricane like Delta can cause, especially adding to the structural ravages of hurricane Laura, utilities in the Gulf Coast region are undertaking measures beforehand. Below we mentioned three such utilities, which also boast solid prospects and a favorable Zacks Rank.
Entergy Corp.’s (ETR - Free Report) subsidiary in Louisiana is continuing to monitor and plan in apprehension of Hurricane Delta’s potential impact. While the path and intensity of Delta could change, the company is preparing for the enhanced risks of severe thunderstorms, strong winds, heavy rains, high tides and coastal flooding in portions of Louisiana, associated with the catastrophe. The company’s storm team is well-equipped to restore power and gas services safely and quickly to customers should outages occur.
The company has a solid long-term earnings growth rate of 5.4% and a Zacks Rank #3 (Hold), currently.
American Electric Power’s (AEP - Free Report) business unit Southwestern Electric Power Company (SWEPCO) requested 900 additional line and field personnel to respond to potential power outages, apart from advising its customers to prepare an emergency outage kit.
CenterPoint Energy (CNP - Free Report) urged its customers to keep important pre- and post-storm natural gas safety tips in mind to stay safe. Although the company did not specify the number of workers it will deploy for the restoration work in the aftermath of Delta, we expect it to bring in additional company crew from other states to help handle emergencies and restore natural gas services as it did during Hurricane Laura.
The company has a strong long-term earnings growth rate of 5% and is Zacks #3 Ranked.
Will Utilities Survive?
Hurricane Delta, initially projected to hit the Mexican coast as a Category 4 storm, may have subsided to a less deadly storm but is sufficient enough to inflict rampant structural damages. Notably, Delta will be the record 10th hurricane to hit the U.S. coast this year. Such back-to-back tropical storms can altogether leave a dent on Utilities’ 2020 balance sheet.
Per Chuck Watson, a disaster modeller with Enki Research, hurricane Delta is anticipated to induce massive losses and destruction worth $3 billion in Louisiana alone. No doubt, utilities to be affected by the catastrophic storm will bear a major brunt of these damages. This might add to the woes of utility providers in the storm ravaged regions, which were already witnessing sales decline due to reduced electricity consumption in the industrial sector following the coronavirus-led lockdown.
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Utilities Prepare as Hurricane Delta Nears the U.S. Gulf Coast
Hurricane Delta is moving toward the U.S. Gulf Coast with regained strength, after ravaging Mexico’s Yucatan Peninsula on Oct 7. Notably, the tropical storm hit the Mexican coast as a Category 2 storm but as predicted by the National Hurricane Center, the storm might intensify into a Category 3 hurricane before making its landfall on the U.S. coast.
The hurricane with its devastating storm and damaging winds are expected to hit Louisiana over the weekend while tropical storm warnings are already issued for both the states of Texas and Louisiana. No doubt, Utilities are bracing up for a severe impact.
Hurricane Delta & Utilities
Catastrophic storms are usually accompanied by wind gusts, thereby snapping and toppling electricity poles, wires and the nearby trees. Consequently, utilities’ operations come to a halt while the resultant loss flares up costs for restoration. Such catastrophic storms also tend to damage natural gas pipelines.
In fact the advent of Hurricane Delta brings back the memory of Hurricane Laura, which made landfall on Aug 27 near the Texas-Louisiana border as a Category 4 storm and left a trail of destruction in its wake.
With Louisiana and its Utilities still recovering from the ill effects of Laura, another catastrophic storm like Hurricane Delta with predicted wind speed of 125 miles per hour can be expected to have a significant impact on the performance of utility providers. The state may witness widespread power outage and the flash flooding anticipated after the storm may also delay restoration work.
Utilities to Watch
Knowing how much rampage a hurricane like Delta can cause, especially adding to the structural ravages of hurricane Laura, utilities in the Gulf Coast region are undertaking measures beforehand. Below we mentioned three such utilities, which also boast solid prospects and a favorable Zacks Rank.
Entergy Corp.’s (ETR - Free Report) subsidiary in Louisiana is continuing to monitor and plan in apprehension of Hurricane Delta’s potential impact. While the path and intensity of Delta could change, the company is preparing for the enhanced risks of severe thunderstorms, strong winds, heavy rains, high tides and coastal flooding in portions of Louisiana, associated with the catastrophe. The company’s storm team is well-equipped to restore power and gas services safely and quickly to customers should outages occur.
The company has a solid long-term earnings growth rate of 5.4% and a Zacks Rank #3 (Hold), currently.
American Electric Power’s (AEP - Free Report) business unit Southwestern Electric Power Company (SWEPCO) requested 900 additional line and field personnel to respond to potential power outages, apart from advising its customers to prepare an emergency outage kit.
The company has a sturdy long-term earnings growth rate of 5.6% and a Zacks Rank of 3, presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CenterPoint Energy (CNP - Free Report) urged its customers to keep important pre- and post-storm natural gas safety tips in mind to stay safe. Although the company did not specify the number of workers it will deploy for the restoration work in the aftermath of Delta, we expect it to bring in additional company crew from other states to help handle emergencies and restore natural gas services as it did during Hurricane Laura.
The company has a strong long-term earnings growth rate of 5% and is Zacks #3 Ranked.
Will Utilities Survive?
Hurricane Delta, initially projected to hit the Mexican coast as a Category 4 storm, may have subsided to a less deadly storm but is sufficient enough to inflict rampant structural damages. Notably, Delta will be the record 10th hurricane to hit the U.S. coast this year. Such back-to-back tropical storms can altogether leave a dent on Utilities’ 2020 balance sheet.
Per Chuck Watson, a disaster modeller with Enki Research, hurricane Delta is anticipated to induce massive losses and destruction worth $3 billion in Louisiana alone. No doubt, utilities to be affected by the catastrophic storm will bear a major brunt of these damages. This might add to the woes of utility providers in the storm ravaged regions, which were already witnessing sales decline due to reduced electricity consumption in the industrial sector following the coronavirus-led lockdown.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>