Utilities Benefiting from Lower Natural Gas Prices
The ShinesRooms.com Provides Stock Research onNV Energy Inc. and Penn Virginia Resource Partners LP
New York City, New York -- While utilities have been under pressure to meet new environmental regulations, they are also looking to boost capital spending to upgrade their existing infrastructure. However, the industry is expected to benefit from lower natural gas prices. The key for utilities such as NV Energy Inc. (NVE) will be to focus on controlling costs and lower natural gas prices will certainly help. Lower natural gas prices have led to weakened demand for coal as more and more companies shift to natural gas from coal for power generation. This trend is expected to continue and is likely to pose a significant challenge to companies such as PVR Partners L.P. (PVR).
Access our free reports onNV Energy Inc. and Penn Virginia Resource Partners LP.Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at
Natural gas prices fell to record low levels last year thanks to the shale gas boom in the U.S. Although prices have since recovered from record low levels, they are still significantly low. This has prompted a number of utilities to shift from coal to natural gas for power generation. Declining natural gas prices have helped utilities control their costs. In addition, companies are able to meet stricter environmental regulations by shifting to natural gas as it is cleaner than coal.
Of course, this shift has meant weakened demand for coal in the U.S. Bill Shea, President and CEO of PVR Partners L.P., at the time of the release of the company’s fourth quarter results in February, said that the company’s overall results continue to be affected by weak coal demand in its Coal and Natural Resource Management Segment, and low commodity prices in the Midcontinent Midstream Segment. Shea believes that these factors will continue to impact the company’s business during 2013.Penn Virginia Resource Partners LPfree research is available today at
http://www.ShinesRooms.com/PVR040213.pdf
PVR Partners L.P. reported adjusted EBITDA of $67.8 million for the fourth quarter of 2012, up from $58.9 million reported for the same period in the previous year. The company’s adjusted EBITDA for 2012 was $239 million, compared to $242.9 million reported in 2011.
For 2013, the company expects adjusted EBITDA for its Eastern Midstream Segment to be between $190 million and $230 million. Adjusted EBITDA for the Midcontinent Midstream Segment is expected to be between $70 million and $80 million, while for the Coal and Natural Resource Management Segment, it is expected to be between $75 million and $85 million.
Back in February, NV Energy Inc. also reported its financial results for the fourth quarter. The company’s net income for the fourth quarter of 2012 stood at $17.2 million, or $0.07 per share, compared to a net loss of $25.2 million, or $0.11 per share reported for the same period in the previous year. Our free research report onNV Energy Inc.can be downloaded upon registration at
http://www.ShinesRooms.com/NVE040213.pdf
Michael Yackira, President and CEO of NV Energy Inc., said that in the year ahead, the company will enhance its customer-oriented programs, in particular NV Energize and other tools to empower customers to manage their energy usage. Yackira also said that the company will maintain its focus on controlling costs in 2013.
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