Category Archives: Utilities

The Drivers of Large Cap Stock Performance in 2021

Estimated Returns by Sectors, Industry Groups and Industries Large cap stocks, as measured by the Lark Research Large Cap index (the “Index”) which currently mirrors the S&P 500, turned in another impressive performance in 2021.  The Index posted a price … Continue reading

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SJI 21Q3 Update

SJI reported a 21Q3 GAAP net loss of $25.8 million or $0.23 per share, wider than 20Q3’s net loss of $10.3 million or $0.10.  On an economic earnings basis, which adjusts for fluctuations in the fair market value of derivatives … Continue reading

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PSEG’s 2021 Investor Day

Public Service Enterprise Group held its 2021 Investor Day on Sept. 27, 2021.  At the meeting, management offered the following guidance:

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So. Jersey Industries: High Dividend Yield With Moderate Upside Price Potential

SJI’s utility businesses – South Jersey Gas Company (SJG) and Elizabethtown Gas Company (ETG) – are its core growth engines.  Representing 70%-80% of consolidated profits, they have grown by pursuing regulatory-approved infrastructure investment programs and gaining customers from new construction … Continue reading

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American Water Works 21Q2 Update

2021 Second Quarter Results in Line with Expectations. Maintaining Neutral Rating. AWK reported 21Q2 EPS of $1.14, up 17.5% from 20Q2.  Operating revenues increased  7.3% to $999 million.  Operating income rose 5.4% to $330 million.  Operating margin eased 60 bp … Continue reading

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PSEG: A Possible Rocky Transition to T&D

It has been a year since PSEG announced a strategic review to explore divesting its fossil fuel generating assets.  Since then, management has said that it is pleased with the interest shown by potential buyers in its 6,750+ MW portfolio … Continue reading

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2021 Market Outlook – Part 2: S&P 500 Sector Analysis

2020 was of course dominated by the impact of the pandemic on the economy and specifically on the revenues and profits of each of the S&P 500 constituents.  There was a sharp stock market sell-off in March-April, followed by a … Continue reading

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NJR Adjusts to Meet Its Challenges and Opportunities

Under new CEO Steve Westhoven, the business portfolio of New Jersey Resources (NJR) has evolved as it typically does in response to changes in its operating environment.  Its regulated utility operations, New Jersey Natural Gas (NJNG) and its Midstream segment, … Continue reading

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American Water Works (AWK) 2019 Update

American Water Works Company (AWK) has delivered superior operating, financial and stock price performance over the past eight years. Its 2018 performance did not match the eight year average in either absolute or relative terms. However, management is confident in … Continue reading

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SJI Outlines Its Vision

SJI’s stock has underperformed peers due in part to disappointing guidance for 2018 given at its recent analyst meeting. However, if management is able to deliver on its 2019 guidance, the stock should have reasonable upside, especially since it is trading at a discount to its peer group. Continue reading

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