Pattern Energy Group reported earnings of 54 cents per share in fourth-quarter 2019, beating the Zacks Consensus Estimate of 25 cents by 116%. The company had reported a loss of 15 cents per share in the year-ago quarter.
Fourth-quarter revenues amounted to $147 million, which beat the Zacks Consensus Estimate of $143 million by 2.8%. Total revenues were 30% higher than the prior-year figure, primarily due to increased electricity sales.
Pattern Energy sold 2,179,090 megawatt hours (MWh) of electricity on a proportional basis compared with 1,966,677 MWh in the year-ago quarter. The 11% improvement was primarily caused by volume increase resulting from acquisitions and less favorable wind conditions in 2018.
Total operating expenses amounted to $20 million, reflecting an increase of 42.9% from the year-ago level.
The company incurred interest expenses of $33 million compared with $28 million in the year-ago quarter.
During the fourth quarter, the company entered into a definitive merger agreement with Canada Pension Plan Investment Board. Through this merger agreement, the company will acquire Pattern Energy in an all-cash transaction for $26.75 per share.
As of Dec 31, 2019, the company had cash and cash equivalents of $156 million compared with $101 million in the corresponding period of 2018.
Its long-term debt was $2,887 million as of Dec 31, 2019, up from the Dec 31, 2018 level of $2,004 million.
The company’s cash flow from operating activities in 2019 was $167 million, down from $279 million recorded a year ago.
Pattern Energy, taking into consideration the expected closing of the merger agreement, did not provide a target range of cash available for distribution for 2020.
Currently, Pattern Energy has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
FirstEnergy Corporation FE reported fourth-quarter 2019 operating earnings of 55 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 14.6%.
Xcel Energy Inc. XEL posted fourth-quarter 2019 operating earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 5.6%.
WEC Energy Group WEC reported fourth-quarter 2019 adjusted earnings per share of 77 cents, which beat the Zacks Consensus Estimate of 72 cents by 6.9%.
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