We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Macquarie to Sell Solar & Wind Power Generation Businesses
Read MoreHide Full Article
Macquarie Infrastructure Company recently entered into definitive agreements to divest each of its portfolios of solar and wind power generation businesses. The company anticipates generating total gross proceeds of $215 million from these transactions.
Per one of the agreements, Macquarie will sell its 203MW (gross) portfolio of wind generation assets to DIF Infrastructure V — a fund of DIF. The other agreement will involve the company to divest its 142 MW portfolio of solar power generation facilities to Goldman Sachs Renewable Power LLC. Notably, both deals are subject to regulatory clearance and projected to close in stages through 2019.
Notably, the move is in sync with the company’s portfolio-restructuring program, which involves its goal of exiting its renewable power generation businesses. As a matter of fact, the proceeds from these divestments will help Macquarie to finance part of its growth investment in other businesses. Greentech Capital Advisors served as Macquarie’s financial advisor while Winston & Strawn LLP was its legal advisor.
Our Take
Macquarie is well poised to gain from healthy growth opportunities in Atlantic Aviation and MIC Hawaii segments in the quarters ahead. MIC Hawaii segment's revenues in the upcoming quarters will likely gain momentum on the back of implementation of new gas rates. Also, investments planned, primarily for the International-Matex Tank Terminals ("IMTT") segment, will be beneficial.
Further, the company’s growth investments are likely to strengthen performance of its segments. For 2019, growth capital expenditure is likely to be $275-$300 million, with a major chunk likely to be used for the IMTT segment. In addition, the company's healthy cash flow allows management to return higher value to shareholders. In 2018, it distributed dividends totaling $378.4 million.
Macquarie currently carries a Zacks Rank #2 (Buy). Over the past year, the company has returned 9.1%, outperforming the industry’s growth of 3.7%.
Other Key Picks
Some other top-ranked stocks in the same space are Carlisle Companies Incorporated (CSL - Free Report) , Federal Signal Corporation (FSS - Free Report) and United Technologies Corporation . While Carlisle sports a Zacks Rank #1 (Strong Buy), Federal Signal and United Technologies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carlisle surpassed estimates thrice in the trailing four quarters, the average being 15.00%.
Federal Signal exceeded estimates in each of the trailing four quarters, the average being 21.65%.
United Technologies surpassed estimates in each of the trailing four quarters, the average being 14.87%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Macquarie to Sell Solar & Wind Power Generation Businesses
Macquarie Infrastructure Company recently entered into definitive agreements to divest each of its portfolios of solar and wind power generation businesses. The company anticipates generating total gross proceeds of $215 million from these transactions.
Per one of the agreements, Macquarie will sell its 203MW (gross) portfolio of wind generation assets to DIF Infrastructure V — a fund of DIF. The other agreement will involve the company to divest its 142 MW portfolio of solar power generation facilities to Goldman Sachs Renewable Power LLC. Notably, both deals are subject to regulatory clearance and projected to close in stages through 2019.
Notably, the move is in sync with the company’s portfolio-restructuring program, which involves its goal of exiting its renewable power generation businesses. As a matter of fact, the proceeds from these divestments will help Macquarie to finance part of its growth investment in other businesses. Greentech Capital Advisors served as Macquarie’s financial advisor while Winston & Strawn LLP was its legal advisor.
Our Take
Macquarie is well poised to gain from healthy growth opportunities in Atlantic Aviation and MIC Hawaii segments in the quarters ahead. MIC Hawaii segment's revenues in the upcoming quarters will likely gain momentum on the back of implementation of new gas rates. Also, investments planned, primarily for the International-Matex Tank Terminals ("IMTT") segment, will be beneficial.
Further, the company’s growth investments are likely to strengthen performance of its segments. For 2019, growth capital expenditure is likely to be $275-$300 million, with a major chunk likely to be used for the IMTT segment. In addition, the company's healthy cash flow allows management to return higher value to shareholders. In 2018, it distributed dividends totaling $378.4 million.
Macquarie currently carries a Zacks Rank #2 (Buy). Over the past year, the company has returned 9.1%, outperforming the industry’s growth of 3.7%.
Other Key Picks
Some other top-ranked stocks in the same space are Carlisle Companies Incorporated (CSL - Free Report) , Federal Signal Corporation (FSS - Free Report) and United Technologies Corporation . While Carlisle sports a Zacks Rank #1 (Strong Buy), Federal Signal and United Technologies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carlisle surpassed estimates thrice in the trailing four quarters, the average being 15.00%.
Federal Signal exceeded estimates in each of the trailing four quarters, the average being 21.65%.
United Technologies surpassed estimates in each of the trailing four quarters, the average being 14.87%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>