Gold is stronger amid the pullback in the dollar and dented global sentiment. The weaker dollar supports dollar-denominated commodities like gold.
Hybrid utility stocks are currently offering very attractive potential upsides compared to utilities at large.
Exelon (EXC) stock has shown tremendous momentum in the last few weeks. Since its recent low on May 11, 2017, EXC stock has managed to rise more than 10% while the Utilities Select Sector SPDR (XLU) rose 5%.
Hybrid utility FirstEnergy (FE) is presently trading at one of the highest dividend yields of 4.9%.
Public Service Enterprise Group (PEG) paid the most dividends to shareholders in the last three years.
Exelon’s (EXC) leverage ratio is about 3.8x. The industry average stands around 3.5x–4.0x.
Due to heavy infrastructure requirements, utilities (XLU) generally carry large amounts of debt on their books.
With a $34 billion market capitalization, Exelon (EXC) is the largest competitive utility.
Hybrid utilities derive a relatively high portion of their earnings from competitive operations.
Hybrid utilities are among the handful of utilities that are trading at attractive valuations compared to utilities (XLU) at large.
Exelon (EXC) seems to have a relatively clean generation mix compared to peers.
Exelon (EXC) has outperformed peers in terms of total returns in the last 12 months.
US utilities including giants like Duke Energy (DUK) and Southern Company (SO) have done fairly well in the last few months compared to broader markets.
On June 21, 2017, natural gas (BOIL) (FCG) July 2017 futures settled at a premium of $0.03 to July 2018 futures. On June 14, 2017, the premium was ~$0.05.
The EIA reported that natural gas inventories rose by 78 Bcf (billion cubic feet) to 2,709 Bcf in the week ending June 9, 2017.
In the week ending June 16, 2017, the natural gas rig count was 186. The natural gas rig count rose by one compared to the previous week.
On June 21, 2017, natural gas (UGAZ) (UNG) July futures settled at $2.89 per MMBtu—the lowest closing price since March 8, 2017.
US distillate inventories rose by 1.1 MMbbls to 152.5 MMbbls on June 9–16, 2017. US distillate inventories rose for the fourth consecutive week.
The EIA reported that US gasoline inventories fell by 0.6 MMbbls to 241.9 MMbbls on June 9–16, 2017. Inventories rose 1.8% from the same period in 2016.
The EIA released its weekly petroleum status on June 21, 2017. US crude oil output rose by 20,000 bpd to 9,330,000 bpd on June 9–16, 2017.