|Bid||112.56 x 800|
|Ask||112.59 x 800|
|Day's Range||112.40 - 113.49|
|52 Week Range||100.49 - 127.22|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 29, 2018 - Nov 2, 2018|
|Forward Dividend & Yield||3.58 (3.11%)|
|1y Target Est||124.60|
In this article, we’ll take a look at these California utilities’ free cash flows. Notably, none of the three top California utilities have generated positive free cash flows in the last few years. Free cash flow is generally calculated as the difference between operating cash flow and capital expenditure. It’s a vital metric to use in measuring utilities’ performances, as free cash flows are used for dividend payments and expansions.
In this article, we’ll take a look at the valuations of California utility stocks. Sempra Energy (SRE), the largest of them all by market cap, is currently trading at a forward PE (price-to-earnings) ratio of above 19x. Sempra Energy is one of the fastest-growing utilities in the industry. Its five-year average historical valuation is around 20x.
At the end of Q2 2018, PG&E (PCG) had net debt of $18.7 billion, while Sempra Energy (SRE) had net debt of $25.8 billion. Sempra Energy’s debt has significantly increased in the last couple of quarters due in part to its Oncor acquisition. Edison International’s (EIX) debt was $14.5 billion as of June 30. Utilities generally have a large amount of debt on their books because of their heavy capex needs.
Sempra Energy (SRE) has outperformed peers in the state in terms of total returns in the last few years. In the last one year, it returned 2%, while broader utilities also (XLU) returned 2%. PG&E (PCG) returned -31%, while Edison International (EIX) returned -12% in the last year. PCG stock’s steep fall and dividend suspension drove its underperformance.
California utility PG&E (PCG) has been in a solid uptrend with a rise of over 15% in the last three months. California governor Jerry Brown signed legislation on September 21 to strengthen the state’s ability to prevent and recover from wildfires. PG&E’s downed power lines were responsible for starting some of the deadly wildfires last year.
On the back of Bruce Kamish's bearish technical note late August, we think that TELL could trade down on geopolitical risk and the absence of near-term catalysts. While Tellurian's business plan has a diversified three-prong approach (upstream, midstream and liquefaction) and a world-class management team lead by its founders, LNG veteran Charif Souiki and Martin Houston, we think that this ambitious strategy is still in its early innings and today is more of a "show me" story.
Sempra Energy (SRE) to divest its U.S. non-utility operating solar assets to Consolidated Edison for a purchase consideration of nearly $1.54 billion.
Consolidated Edison Inc. said late Thursday that one of its subsidiaries has agreed to buy a Sempra Energy subsidiary for $1.5 billion. The Sempra Energy unit owns renewable electric-production projects, including projects jointly owned Con Edison units and development rights for additional solar and energy-storage projects. The deal is expected to close at the end of the year, Con Edison said. Con Edison expects to fund the deal using a combination of $715 million of equity and $825 million of long-term, non-recourse debt, it said. Shares of Con Ed and Sempra were flat in the extended session Thursday and ended the regular session up 0.2% and 0.1%.
"This sale represents an important step forward in the portfolio-optimization plan we announced in June to support market growth opportunities," said Joseph A. Householder, president and chief operating officer of Sempra Energy. On June 28, Sempra Energy announced a multi-phase, portfolio-optimization initiative designed to sharpen the company's strategic focus and create value for all shareholders.
Sempra Energy (SRE) has a median target price of $124.40—compared to its current market price of $118.87, which indicates an upside potential of ~5% for the next 12 months. Morgan Stanley increased Sempra Energy’s target price from $120.0 to $121.0 last week.
In this part, we’ll discuss California utilities’ total returns. Sempra Energy (SRE) returned 3%, while utilities at large (XLU) returned 2% in the past year. In comparison, PG&E (PCG) and Edison International (EIX) returned -33% and -12%, respectively, during the same period. Total returns consider the dividend payments and stock appreciation in a particular period.
Sempra Energy (SRE) stock notably outperformed its peers in California as well as utilities (XLU) at large. On September 18, Sempra Energy announced a cooperation agreement with its activist shareholders Elliott Management and Bluescape Energy Partners, which collectively own 4.9% in Sempra Energy worth $1.6 billion.
NEW YORK/LONDON, Sept 18 (Reuters) - China set a 10 percent tariff on U.S. liquefied natural gas (LNG) imports, extending a trade dispute into energy and casting a shadow over U.S. export terminals that would propel the United States into the world's second-largest LNG seller. Beijing on Tuesday said it would tax U.S. products worth $60 billion effective Sept. 24 in retaliation for tariffs imposed by U.S. President Donald Trump in an escalating trade war.
In the struggle over the future of Sempra Energy between the company and Elliott Management Corp., we have reached the truce stage. Back in June, Elliott launched a public effort criticizing Sempra as an undervalued conglomerate that needed to overhaul its strategy and management. Sempra will cooperate in getting two new independent directors onto its board.
Beijing announced on Tuesday it would tax thousands of U.S. products worth $60 billion (45.62 billion pounds) in retaliation for tariffs imposed by U.S. President Donald Trump as the trade war between them escalated. China became the world's second-largest importer of LNG last year, behind Japan and ahead of South Korea, driven by a push to convert to cleaner gas from coal generation energy. At the same time, the United States is poised to become a major exporter with the majority of LNG supply growth in coming years from new terminals being planned or built now.
Sempra Energy said Tuesday it has reached an agreement with activist shareholders Elliott Management and Bluescape Energy Partners LLC, which between them own a 4.9% stake in Sempra valued at $1.6 billion. The parties have agreed to appoint two new directors to Sempra's board that are mutually agreed on. Sempra will refocus its LNG Construction and Technology Committee into a new LNG and Business Development Committee, comprising its three current members and the two new directors. "The LNG and Business Development Committee's updated charter calls for it to work with management and the board in leading a comprehensive review of Sempra Energy's businesses," the company said in a statement. Sempra will update the market on the results of the strategic review and any planned actions in the first quarter of 2019. "Sempra Energy is committed to an open dialogue with our shareholders and to considering all investor perspectives on the company's existing strategy and longer-term opportunities to create shareholder value," Chief Executive Jeffrey Martin said in the statement. Shares were not yet active premarket, but have gained 11% in 2018, while the S&P 500 has gained 8%.
SAN DIEGO, Sept. 18, 2018 /PRNewswire/ -- Sempra Energy (SRE) today announced that it has entered into a cooperation agreement with affiliates of Elliott Management Corporation (Elliott) and Bluescape Energy Partners LLC (Bluescape). Funds affiliated with Elliott and Bluescape collectively own a 4.9-percent economic interest in Sempra Energy valued at $1.6 billion. As part of the agreement and the ongoing refreshment of the Sempra Energy board, the parties have worked cooperatively together to identify a discrete list of final board nominees and expect to work together for Sempra Energy to announce and appoint two new directors to Sempra Energy's board that are mutually agreed between the parties in the coming weeks.
SAN DIEGO , Sept. 14, 2018 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today announced that Lisa Glatch is joining the company in the newly created position of strategic initiatives officer for Sempra Energy. ...
Sempra Energy's (SRE) unit signs contract with Chevron for 50% of the initial storage capacity at the Topolobampo refined fuels marine terminal.
Company Also Recognized on 2018 Dow Jones Sustainability North America Index for 8th Consecutive Year SAN DIEGO , Sept. 14, 2018 /PRNewswire/ -- Sempra Energy (NYSE: SRE) has been named to the 2018 Dow ...
SAN DIEGO, Sept. 13, 2018 /PRNewswire/ -- Sempra Energy (SRE) today announced that its Mexican subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) (IENOVA.MX), has signed a long-term contract with Chevron Combustibles de México S. de R.L. de C.V. (Chevron) for 50 percent of the 1-million-barrel initial capacity of the Topolobampo refined fuels marine terminal in Sinaloa, Mexico. Under the agreement, subsidiaries of Chevron will have storage capacity of 500,000 barrels of refined fuels and the option to acquire up to 25 percent of the equity in the terminal after commercial operations begin.
LOS ANGELES, Sept. 13, 2018 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) today announced the company has joined the Hydrogen Council, a global initiative of leading energy, transport and industry companies with a united vision to foster the role of hydrogen technologies in the global energy transition. The announcement was made during the Global Climate Action Summit in San Francisco where SoCalGas representatives participated in the Council's annual meeting. The prime focus of the meeting was discussion and planning geared towards delivering on the Council's vision of utilizing hydrogen to avert 6 gigatonnes (Gt) of CO2 emissions, create a $2.5 trillion market and provide employment for more than 30 million people worldwide by mid-century. Over the last three years, SoCalGas has commissioned numerous hydrogen-related research and development projects. One of the company's first hydrogen projects was a partnership with the University of California, Irvine on power-to-gas (P2G) technology. P2G converts renewable electricity from solar or wind which would otherwise go to waste into hydrogen. This renewable hydrogen can then be blended with natural gas for use in everything from home appliances to power plants. Additionally, this hydrogen could also be used in fuel cell vehicles or converted to methane for use in a natural gas pipeline and storage system. Hydrogen from the P2G projects helps fuel the UC Irvine campus power plant.
Inc., a federal appeals court said. The U.S. Court of Appeals for the Third Circuit on Thursday barred NextEra from collecting the breakup fee, a decision that boosts recoveries for Elliott Management Corp. and other creditors of Oncor’s former owner, Energy Future Holdings Corp. Bankruptcy courts have discretion under chapter 11 rules to uphold or erase these fees, which can subtract money from a bankruptcy estate and its creditors when paid.
LOS ANGELES, Sept. 12, 2018 /PRNewswire/ -- Leaders in the renewable natural gas industry will gather in Los Angeles on October 2 to share the keys to successful biomethane development. Utilities Southern California Gas Co. (SoCalGas), Pacific Gas and Electric Company (PG&E), and the national nonprofit organization Energy Vision, will jointly host the free one-day conference, "The Power of Waste: Renewable Natural Gas (RNG) for California." The event will be held at SoCalGas' Energy Resource Center in Downey, California, on Tuesday, October 2, from 8:30 a.m. to 4:00 p.m.