Back to top

Image: Bigstock

Southern Company Purchases Two Wind Projects in Texas

Read MoreHide Full Article

Southern Power, a subsidiary of electric utility holding firm Southern Company (SO - Free Report) reported that it has purchased two wind facilities in Texas, namely the 174-megawatt (MW) Salt Fork Wind Facility and the 126-MW Tyler Bluff Wind Facility.

Southern Power purchased these two wind facilities from EDF Renewable Energy. Following this deal, Southern Power now has more than 1000 MW of wind power, which has increased its wholesale renewable portfolio to more than 3,000 MW.

Salt Fork Wind Facility, which consists of 87 wind turbines manufactured by Vestas, is located in Texas. Tyler Bluff Wind Facility, which is also located in Texas, comprises 52 wind turbines manufactured by Siemens.

With the addition of these two facilities, Southern Power now has 35 solar, wind and biomass projects, including 11 solar projects in California. Since 2012, the parent – Southern Company – has acquired more than 4,000 MW of renewable energy projects.

Southern Company is one of the largest and best-managed electric utility holding companies in the U.S. The firm dominates the power business across the southeastern region.

Year to date, the Zacks categorized Utility Electric Power industry has registered an impressive growth of 5.7%. However, the Southern Company stock has underperformed the industry by registering growth of only 3.6%.

Currently, the utility carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.

Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) , Ocean Rig UDW LLC and McDermott International Inc. . Braskem and McDermott sport a Zacks Rank #1 (Strong Buy), whereas Ocean Rig carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.

Ocean Rig, on the other hand, delivered an average positive earnings surprise of 66.39% in the last four quarters.

In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Southern Company (The) (SO) - free report >>

Braskem S.A. (BAK) - free report >>

Published in