Utility Group earnings were $25.3 million, or $0.31 per share, in the third quarter of 2013, compared to $26.4 million, or $0.32 per share, in 2012. For the nine months, Utility Group net income was $104.6 million, or $1.27 per share, compared to $102.5 million, or $1.25 per share, for the same period in 2012.
Nonutility Group earnings were $17.5 million, or $0.21 per share, in the third quarter of 2013, compared to $15.6 million, excluding ProLiance, or $0.18 per share, in 2012. For the year-to-date period, Nonutility Group earnings, excluding ProLiance, were $19.9 million, or $0.24 per share, compared to $27.6 million, or $0.33 per share, in the prior year.
Through announced and completed financing transactions, the Utility Group continues to execute on its debt refinancing plans in order to lower on-going interest expense.
Company Release - 11/07/2013 17:00
EVANSVILLE, IN -- (Marketwired) -- 11/07/13 -- Vectren Corporation (NYSE: VVC) today reported net income for the quarter of $42.8 million, or $0.52 per share, compared to $41.7 million, excluding results of ProLiance Holdings, LLC (ProLiance), or $0.50 per share, during the third quarter of 2012. Excluding results of ProLiance, for the nine months ended September 30, 2013, net income was $124.3 million, or $1.51 per share, compared to $129.7 million or $1.58 per share in the prior year. Results excluding ProLiance reflect ProLiance's exit from the natural gas marketing business on June 18, 2013 by disposing of certain of the net assets, along with the long-term pipeline and storage commitments, of its gas marketing subsidiary, ProLiance Energy, LLC. For the three and nine months ended September 30, 2013, consolidated net income was $42.8 million, or $0.52 per share, and $86.8 million, or $1.05 per share, respectively, compared to $39.3 million, or $0.48 per share, and $116.2 million, or $1.42 per share for the three and nine months ended September 30, 2012, respectively.
Since I am retired the dividends I get from non-IRA accounts are used to live on: however, over the years I have accumulated stocks in both traditional IRA's, as well as, drips. I receive enough dividends in these accounts that i let them build each quarter and then invest in companies that I already own that look the most attractive.
I also have 8 grandchildren and originally started DRIPs for the older ones, but since have set up a minor gift account for each. I then buy a block of stock and have my broker (USAA) via a letter of instruction distribute shares to each account. The dividends are automatically reinvested by USAA. You can by the stocks on line but USAA does not allow you to do the transfers yourself. So far my grandchildren own COP, PSX, SE & CL. I believe that we are on the verge of a secular bull market that could last for a decade or more do to the lowering of commodity prices. Energy stocks will do very well.
Liquids are much easier to export than methane and it is being done today. PSX's and SE's JV DCP is the largest marketer of NGL's in the US. No surprise that PSX has projects underway to increase export where those liquids comand a higher price. A lot of the liquids that ECA is targeting is also crude oil.
The world is recovering after five years in the toilet. Commodity prices are abating. in the last 115 years there have been only 3 secular bull markets (1923 - 30), (1952 - 1968) and (1982 - 2000). All were accompanied by relatively low commodities. All the other periods in between were dominated by commodities and the market traded within a range. In the modern world oil is essential in any sustained economic period. There may be enough oil to keep the price from reaching $148 again: however, in an around $100 is most likely and E&P's can do very well at those levels.
Utilities will be around for a long time. I like ones that are very natural gas weighted. I own WEC (a really great run utility with expnding gas distribution), VVC (my local gas utility), MDU (more of a conglomerate with electric, gas, construction & oil and gas production) and SE ( a Canadian pipeline with a US MLP, a big Canadian distribution company, major Western Canada midstream and pipe and 1/2 of DCP midstream partners).
If you want a dividend, look at TIS (orchard paper) a regional maker of toil tissue, napkins and Kleenex. $.7% dividend and growing. There market is in the Oklahoma area within 700 miles of the plant. Check out their website and listen to the last earnings conference call. I bought 400 shares earlier this year.
Why would you say 2 for 1 when MDU split 4 times and each was a 3 for 2. If I remember, each split was when the stock hit the mid to upper $30's. The last split was 7 years ago, so I would think there are still board members who were involved in that decision.
It ran up to $35 due to the E&P business, which at the time was mostly gas. Investors at the top of the gas price boom were looking for anything and everything that even smelled like it was involved in natural gas production. When gas prices plummeted, MDU's stock went with it.
Refining is a cash cow and although it has it's ups and downs, does not require a lot of capital to run. They are using that cash flow to expand the other business, plus they are going to export a lot of product over time as demand in the US wanes. I could definitely see them selling the east and west coast refineries.
Oil sands crude is probably better shipped by rail. It does not move well in a pipeline because it is so heavy. Needs to be diluted with an oil product such as naphtha, which then needs to be removed. The naphtha also must be shipped top the oil sands area. It adds cost and additional operational issues.
Based on next years consensus estimate they would be paying out 65%. I thought that they might return to a penny per quarter as they did prior to 2009. This company is a bond substitute. My wife and I bought a bunch of shares after we moved to Indiana in 2009, when `the stock was low. Do not know the whole history, but there must have been some losers running it. They finally unloaded the wholesale gas operations. This company is really too small in this environment to stay independent. Would be a good fit for NI.
Emerson Increases Quarterly Cash Dividend
Press Release: Emerson – Tue, Nov 5, 2013 6:35 AM EST
ST. LOUIS--(BUSINESS WIRE)--
The board of directors of Emerson (NYSE: EMR) voted yesterday to increase the quarterly cash dividend from forty-one cents ($0.41) to forty-three cents ($0.43) per share of common stock payable December 10, 2013 to stockholders of record November 15, 2013.
According to the earnings conference call, it was completely filled on day one. CEO wishes it was even bigger.
They cannot spin it off. If they want to get rid of chemicals they would first have to offer their half to Chevron and I seriously doubt they would get what it is really worth. Also it is a good fit with their other businesses. It is no accident that refiners are in chemicals and that the original plants were on the same property. A product of refining, primarily naphtha is a feed stock. used to produce Olefins a large CPChem product.
Refining has always been an up an down business. Because of increasing investments in the 3 areas that you mentioned, refining will become a smaller part of the company. They may also shed a refinery or two. Based on the questions during the conference call, there may be more restructuring down the road to enhance shareholder value. The analysts had all kinds of suggestions. The company's reply was that they are always looking at all options.
Disagree. Price is too low. Market cap is only $2 billion and Floyd spent his first year acquiring mineral rights. nos it is all out drilling. At some point we get to cash flow neutral which will have significant upside ramifications. He won't sell until we approach $10 billion market cap and then get a 30% kicker. The key is that they have the property and now spending levels to get there relatively quickly..