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UGI Corp. (UGI) Boosts RNG Assets by Investing in New Energy
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UGI Corporation (UGI - Free Report) announced that its unit UGI Energy Services, LLC, has expanded the renewable natural gas ("RNG") portfolio by making investment in New Energy One HoldCo LLC. New Energy is jointly developing the Idaho RNG project with Sevana Bioenergy, LLC.
The Idhao project is presently generating renewable electricity and is expected to produce several hundred million cubic feet of RNG each year from on-site dairy waste feedstock once it has expanded to reach full production in 2022. Initial RNG production is expected to commence in late 2021.
Long-Term Goal
UGI Corp.’s investment in New Energy is in sync with its objective of providing renewable and sustainable energy to customers, while reducing carbon emissions. To achieve this objective, earlier this year, Energy Services completed the acquisition of GHI Energy, LLC, a Houston-based company that markets renewable natural gas in California.
Acquisition of GHI Energy represents a growth opportunity for UGI Corp. in the renewable energy space and positions the company to make additional investments in this rapidly developing area of renewable energy solutions.
Investment Plans
UGI Corp. continues to make systematic capital investments to address the infrastructural need for various capital projects and carry out acquisitions in order to curb competition. These investments also increase the safety and reliability of natural gas production and storage facilities, modernize infrastructure, as well as allow it to efficiently serve the expanding customer base. Incidentally, the company added 12,000 new residential heating and commercial customers in fiscal 2020 compared with 14,000 customer additions in fiscal 2019.
After spending $706 million in fiscal 2019, UGI Corp. slashed capital expenditure to $665 million in fiscal 2020 in view of COVID-19 impacts. However, with return to normal level of activity and easing of COVID-19-related restrictions, it plans to invest $850 million in fiscal 2021.
PNM Resources, Portland General Electric and Pinnacle West Capital delivered an average earnings surprise of 9.3%, 98.1%, and 27.1% in the last four quarters, respectively.
The Zacks Consensus Estimate for 2020 earnings for PNM Resources, Portland General Electric, and Pinnacle West Capital has moved up 2.7%, 7.5%, and 5.6%, respectively, in the past 60 days.
Price Performance
In the past six months, its shares have outperformed the industry.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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UGI Corp. (UGI) Boosts RNG Assets by Investing in New Energy
UGI Corporation (UGI - Free Report) announced that its unit UGI Energy Services, LLC, has expanded the renewable natural gas ("RNG") portfolio by making investment in New Energy One HoldCo LLC. New Energy is jointly developing the Idaho RNG project with Sevana Bioenergy, LLC.
The Idhao project is presently generating renewable electricity and is expected to produce several hundred million cubic feet of RNG each year from on-site dairy waste feedstock once it has expanded to reach full production in 2022. Initial RNG production is expected to commence in late 2021.
Long-Term Goal
UGI Corp.’s investment in New Energy is in sync with its objective of providing renewable and sustainable energy to customers, while reducing carbon emissions. To achieve this objective, earlier this year, Energy Services completed the acquisition of GHI Energy, LLC, a Houston-based company that markets renewable natural gas in California.
Acquisition of GHI Energy represents a growth opportunity for UGI Corp. in the renewable energy space and positions the company to make additional investments in this rapidly developing area of renewable energy solutions.
Investment Plans
UGI Corp. continues to make systematic capital investments to address the infrastructural need for various capital projects and carry out acquisitions in order to curb competition. These investments also increase the safety and reliability of natural gas production and storage facilities, modernize infrastructure, as well as allow it to efficiently serve the expanding customer base. Incidentally, the company added 12,000 new residential heating and commercial customers in fiscal 2020 compared with 14,000 customer additions in fiscal 2019.
After spending $706 million in fiscal 2019, UGI Corp. slashed capital expenditure to $665 million in fiscal 2020 in view of COVID-19 impacts. However, with return to normal level of activity and easing of COVID-19-related restrictions, it plans to invest $850 million in fiscal 2021.
Zacks Rank and Key Picks
UGI Corp. currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include PNM Resources Inc. (PNM - Free Report) , Portland General Electric Company (POR - Free Report) and Pinnacle West Capital Corporation (PNW - Free Report) , each currently holding a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
PNM Resources, Portland General Electric and Pinnacle West Capital delivered an average earnings surprise of 9.3%, 98.1%, and 27.1% in the last four quarters, respectively.
The Zacks Consensus Estimate for 2020 earnings for PNM Resources, Portland General Electric, and Pinnacle West Capital has moved up 2.7%, 7.5%, and 5.6%, respectively, in the past 60 days.
Price Performance
In the past six months, its shares have outperformed the industry.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>