MILWAUKEE, Dec. 5, 2013 /PRNewswire/ -- The board of directors of Wisconsin Energy Corporation (NYSE: WEC) today approved capital investments totaling $711 million for 2014 to continue upgrading and modernizing its electric and natural gas infrastructure across the region. The board also reviewed a five-year capital budget that calls for investing between $3.2 billion and $3.5 billion over the period 2014 through 2018.
In addition, the directors authorized management to purchase – from 2014 through the end of 2017 – up to $300 million of the company's common stock through open market purchases or privately negotiated transactions. The directors also reviewed management's plan to maintain an appropriate capital structure by retiring up to $500 million of holding company obligations during the period 2014 through 2017.
"With the five-year construction plan that we presented today, we're placing a greater focus on the basic building blocks of our delivery business – pipes, poles, wires, transformers and substations – and on initiatives at our power plants that will lower our operating costs for customers," said Gale Klappa, chairman and chief executive officer. "I'm confident that this plan will allow us to deliver a high level of service quality and maintain our position as one of the most reliable energy companies in America," he added.
The company also reaffirmed that it expects 2013 earnings to be in a range of $2.43 to $2.48 a share.
BATESVILLE, Ind., Dec. 4, 2013 /PRNewswire/ -- The board of directors of Hillenbrand, Inc. (HI) has declared a regular quarterly cash dividend of $0.1975 per share on the company's common stock. On an annual basis, this is an increase of $0.01 per share to a total rate of $0.79 per share in fiscal year 2014. The dividend is payable Dec. 31, 2013, to shareholders of record at the close of business on Dec. 17, 2013.
Only a 1.3% increase. It is obvious they want to raise every year; however, as I mentioned in an earlier post, they are interested in saving cash for another takeover.
This is what is happening. They are paying down debt rapidly and per the last conference call are doing the following: 1. The last takeover is for the most part fully integrated into the company thus freeing the finance staff. 2. because of #1, there financial staff is now on the hunt for the next takeover candidate. This may take awhile; however, the cash on hand should start to accumulate for the next buy. With a market cap of less than $1.8 billion, they will slowly build themselves into a decent size manufacturing company.
Sentiment: Strong Buy
I do not know why your NG investment is getting panned, but I thought this little summary captured the essence of what PSX is all about. I have been a long time investor and now that I am retired spend more time analyzing companies plus all my holdings. I have been on PSX since the spin out and listen to all the conference calls and read the financial reports. This happens to be one of my favorite growth and income stocks.
KOG will only pay down the revolver debt. All oil companies use leverage. Even XOM has debt; however, in their case they have more cash than debt. The interest on debt is minimal compared to the cash flow. Also, reading down this string concerning depletion, that has been changing as new technology takes hold. The original oil fields in PA prior to 1850 extracted about 1% of the oil. New technology now recovers 50 - 70% in conventional fields. The % of recovered oil in shale is rising rapidly. Firthermore, spacing is tightening. We are barely in the first inning. Most of the anti's are short sellers, who are not going to effect the price buy posing on this site. The institutions dwarf what individuals own.
Most of the rights are owned by large independents such as COP, OXY, MRO, EOG, CLR, & HES. They are the companies that would benefit most from taking over small producers.
In order to export crude from the US, there is a law requiring a license. There is very little crude being exported and these are rare exceptions. Refined products are exported, especially diesel and other products that the US has little use for, but command high prices overseas. This keeps refineries running at full tilt and gives refiners better margins.
By Zacks Equity Research
U.S. energy giant, ConocoPhillips (COP) has completed the sale of its Algeria business unit to Indonesia’s state owned oil company – PT Pertamina. The sales consideration totaled $1.75 billion.
ConocoPhillips’ divestment of its Algerian unit will be value accretive for its shareholders as well as raise funds to concentrate on higher return assets. It will facilitate the company to focus on capital investments that will benefit production and cash margins and enhance returns on capital.
ConocoPhillips’ divestiture proceeds from 2012 through third-quarter 2013, were approximately $12.4 billion. The company would use these proceeds for general corporate purposes, and investments in its organic growth programs.
Houston, Texas-based ConocoPhillips is a major global exploration and production (E&P) company with operations and activities in 30 countries that include the U.S., Canada, UK/Norway, China, Australia, offshore Timor-Leste, Indonesia, Libya, Nigeria, Algeria, Russia and Qatar.
With leading positions in both natural gas and heavy crude oil in North America, as well as a legacy position in the North Sea and growing exposure to lucrative international regions, ConocoPhillips expects to replace reserves and sustain production growth over the long term. The company’s exploration initiatives toward liquids-rich plays are gaining momentum through the Eagle Ford, Bakken and North Barnett shale plays.
Again, ConocoPhillips completed the spin-off of its refining/sales business into a separate, independent and publicly traded company, Phillips 66 (PSX) in 2012. With this, ConocoPhillips shifted its complete focus to upstream operations and thus oil and gas prices play a major role in determining its performance.
We believe that any downtrend in the global economy will affect the supply-demand fundamentals of oil and gas, hurting the sales prices for crude oil and natural gas.
We have a Zacks Rank #3 (Hold) on ConocoPhillips.
Below is only the Summary - Article is too long.
Summary And Conclusion
While it is tough to declare Phillips 66 THE best play on the domestic shale revolution, the company should be considered as one of the best. There is probably no downstream company as nicely diversified across refining, chemicals and midstream as PSX. Dividend-growth investors should consider the long-term income prospects as the company drops-down assets to its PSXP MLP. With several midstream and chemicals expansion projects underway, the company is poised for impressive growth in the coming years. Normalized earnings should be around $6.50/share. With the current PE of 12, that's $78. Expect growth projects to lift both forward EPS and valuation in the coming years as the market comes to grips with PSX's earnings growth potential. Shareholders can expect dividend increases on a regular basis. Technically, the company may have formed a bullish cup-n-handle formation. But we need to see significantly higher volume to confirm a sustained breakout off the ~$65-66 handle.
PSX is a long-term BUY and HOLD.
Mkt Cap = $42 billion
P/E ("ttm") = 9.6
EPS ("ttm") = $7.37
Div (Yield) = $1.25 (2.10%)
What are the dead properties?? I have never heard this term mentioned before with Encana. Maybe you are referring to a spin off its mineral fee title land positions in southern Alberta to a new company through an IPO (in which Encana will retain significant ownership), It is about 5 million acres (2 million hectares) of Alberta lands and associated royalty interests, currently known as Encana's Clearwater region, I believe they got these rights from the Canadian Pacific Railroad.
Tasty is no longer regional. They are rolling it out everywhere. It will take some time but FLO has visions of Tasty being the premier national brand.
1929 was a prelude to a long bear market where commodity prices again spiked. Think about what started WWII. It was a lack of commodities and the Japanese inability to secure them. Even though the depression was in full swing commodity prices did not come down. Demand was low but supply was also low and E&P companies, miners, farmers, etc. stop producing when the cost is greater than the amount you can sell it for. The periods 1900 - 23, 1930 - 52 and 1968 - 82 were great commodity bull markets. During those periods the stock market was range bound and never able to break out. Commodity prices and stock averages are opposite each other. The last great commodity bull market started in the late 1990's and I believe lasted until recently. In 2000 the market was around 14000 or so and only recently did it break out to new highs. It finally broke the range. Interesting that recently commodity prices have come down or at least stabilized due to money pouring into commodity production since the late 1990's.
They also paid down debt faster than they had thought and are at the bottom of the debt range. Do not forget the purchase of some oil pipelines and the MLP. The MLP gives them tremendous financing flexibility as they build up their midstream and pipeline empire without having to water down the PSX stock. The chemical company is self financing and the demand for Olefins. The majority of olefins capacity is consumed in the production of polymers used for plastics (i.e. polyethylene and polypropylene). Finally, DCP is another great investment that is self financing. PSX is still in the early stages of empire building.
Definitely agree with all you said. i listened to the conference call and I think the fact that they mentioned that last years acquisition has pretty much been digested and that their financial folks have been looking for additional takeover candidates. This is great model of buying industrials, especially bolt on's with cash flow. i also own Emerson Electric and they have been doing this for years. Emerson talked a lot about input costs (commodity prices) coming down over the last year, which is very positive not only for these kinds of companies, but the economy as a whole. Three times in the 20th Century 1923, 1952 and 1982, commodity prices fell or stopped increasing and 3 great secular bull markets kicked off. The last form 1982 - 2000 was the longest and greatest. The dow went up over 16X.
I was looking at the spread a little while ago and saw the stock starting to move. Looks like some traders saw the same thing. There has been some talk on CNBC yesterday about the spreads and refining.
The spread is now almost $20. This is big as the Gulf Coast refineries have been exporting diesel and refining leftovers. Huge opportunity to increase cash flow. This is part of the up and down in the refining business; however, the extra cash flow allows for increase CAPEX, especially in the midstream area and buy backs. Debt is already at the low end of their target range. The last boom in refining earlier this year allowed them to pay down debt. Maybe they will find some small takeover opportunities for cash. PSX is a money making machine.
When you think about it the company is only selling at about 27X current earnings and 22.5X next years average analyst's estimate. The growth rate is 21 - 22% this year and into next. Does not look expensive form PE perspective. Do not see another double in the near future, but good solid growth. The great pipeline could also surprise us somewhere along the line. I also like and hold REGN.
Subtract WTI close in future price form Brent future. Today Brent is $111.04 and WTI is $94.14. Therefore, WTI is selling for $16.90 less than Brent.
Award recognizes most reliable electric utilities nationwide
MILWAUKEE, Nov. 21, 2013 /PRNewswire/ -- We Energies has received the 2013 ReliabilityOne™ national award for superior reliability of its electric system.
The national award is based on the company's performance for the year 2012, and is given annually by PA Consulting Group to utilities that have excelled in delivering the most reliable electric service to their customers.
"We're honored to be named the most reliable utility in America. This national award is a testament to the skill and professionalism of our employees who dedicate themselves to outstanding customer care every day," said Gale Klappa, chairman, president and chief executive officer of We Energies.
All utilities operating electric delivery networks in North America are eligible for the ReliabilityOne Award. The selection is based primarily on statistics that measure the frequency and duration of customer outages. After initial recipients are identified, each potential winner undergoes an on-site certification -- an independent review of the processes and systems used to collect, analyze and report a company's reliability results.
At last night's ceremony in New York, We Energies also received – for the ninth time in the past 12 years -- the ReliabilityOne Award for outstanding electric reliability performance in the Midwest. There are five regional awards -- Northeast, Mid-Atlantic, Midwest, Plains and West.
We Energies has made significant investments in recent years to strengthen the reliability of its network by rebuilding hundreds of miles of distribution lines, and building and upgrading substations and other infrastructure. The company's forestry management also has been recognized for responsible tree trimming practices to keep branches from coming into contact with power lines.
November 14, 2013 9:00 AM
Airgas, Inc. (ARG) today announced that the Prologis International Centre South in Minooka, IL will be the site for its new air separation unit (ASU) in the Chicago area.
Construction of the facility, located in Grundy County near the junction of I-80 and I-55, is scheduled to begin in February 2014 and be finished by July 2015.
The ASU will produce more than 450 tons per day of oxygen, nitrogen and argon, with production expected to begin in summer 2015.
“The market for atmospheric gases in the Midwest is expected to be strong for years to come,” said Michael Molinini, Airgas President and Chief Executive Officer. “Increasing our production capabilities in the Chicago area will enhance our gas supply chain and ensure long-term reliability of supply for merchant gas customers in the region.”
The Company first announced its plans to build a new ASU in the Chicago area in September 2012.
“We worked closely with representatives of the state of Illinois and the village of Minooka in determining the best location for our new ASU,” said Tom Thoman, Airgas Division President – Gases Production. “We are excited to be a part of the Minooka community.”
Airgas qualified for tax credits under Illinois’ Economic Development for a Growing Economy program, or EDGE, administered by the Illinois Department of Commerce and Economic Opportunity.