AGL Resources Inc

According to the EIA, 18.7 gigawatts of new natural gas capacity will come into service in the next three years in the Mid-Atlantic, Florida, and Texas.

Duke Energy (DUK) estimates that its regulatory return on equity could meet or exceed its 2015 levels of nearly 10% in all its operational states.

Higher temperatures during 1Q16 marred Southern Company’s (SO) top line, which was partially offset by lower operating and maintenance expenses.

Southern Company (SO), one of the biggest utilities in North America, is set to report its 1Q16 earnings on April 27, 2016.

After a lackluster performance in 2015, utilities have started off better this year. Conservative investors have turned back to safe-haven utilities after considering the volatility in global markets.

With AGL Resources’ (GAS) acquisition, Southern Company’s regulated revenues are expected to increase.

As of September 30, 2015, Southern Company had a total debt of $27 billion, against equity of $20.6 billion.

Southern Company (SO) is set to report its quarterly earnings for the period ended December 31, 2015, on February 3, 2016.

After its acquisition of AGL Resources, SO is expected to serve nine-million customers collectively, making it the second-largest utility by customer base.

Southern Company is planning to spend approximately $13 billion in the next two years as part of its expansion strategy.

Despite a near-zero demand growth in the electric business, Southern Company (SO) has maintained fair growth in its cash flow from operations.

Southern Company has a strong dividend payment history, and it has reported more than 67 years of consecutive quarterly payments of dividends.

Except for the energy sector and the material sector, all the component sectors of SPY rose on the release of the FOMC statement about its rate hike decision.

Dominion Resources engages in all stages of the energy value chain, including power generation, transmission, and distribution.

Duke Energy carries out its operations in three business segments. The segments are regulated utilities, international energy, and commercial power.

CenterPoint Energy is ahead of most of its ETFs based on PBV ratio. The PBV ratios of CenterPoint Energy, RYU, FXU, and SPHD are 1.8x, 1.5x, 1.4x, and 2.2x, respectively.

Southern Company (SO) is one of the leading utility companies (XLU) in the US. The company has a history of stable performance.

In 1Q15, Southern Company’s (SO) stock fell 10% mainly due to concerns that the Fed will increase the interest rates. The stock also fell by 6.10% in 2Q15.

On August 24, 2015, Southern Company (SO) agreed to acquire AGL Resources (GAS) for $8 billion in cash. The deal is valued at $12 billion.

The shale gas boom since the mid-2000s made natural gas a formidable competing fuel for coal. It accounted for over half of the electricity generation in the US.

The top five holdings of the iShares Select Dividend ETF (DVY) represent 13% of its total portfolio.

The MAE clause lays out the conditions under which Southern Company (SO) can back out of its deal with AGL Resources (AGL). For example, an unusually warm winter or cool summer that depresses demand is not an MAE.

Be careful with the disproportionate effect clause in the AGL-Southern merger agreement. If a terrorist organization blows up an AGL gas pipeline, that would be an MAE.

In the merger deal between AGL Resources (GAS) and The Southern Company (SO), the MAE clause lays out the circumstances under which Southern can back out of its deal with AGL Resources.

The Southern Company (SO) is a utility holding company that holds all the outstanding stock of Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power Company.

With the merger between AGL Resources (GAS) and Southern Company (SO), you’re getting about an 8.8% annualized yield. That’s probably a reflection of the turmoil in the equity markets.

AGL Resources (GAS) could sue Southern Company and demand specific performance. In other words, GAS could have a judge force SO to do the deal.

There have been several precedents similar to the AGL Resources deal. In this transaction, Southern Company is paying about 2.7x trailing 12-month revenues and 10x trailing 12-month EBITDA.

If a bidder happens to come in and top the Southern Company bid, AGL Resources will owe Southern Company a breakup fee of $201 million.

AGL Resources (GAS) is an energy company that’s primarily involved in the distribution of natural gas. It launched two joint ventures last fall.

By purchasing AGL Resources (GAS), Southern will get access to some important pipelines, especially some that come from the Marcellus Shale region.

For our analysis of midstream movers, we’ve selected only midstream companies with market capitalizations of over $1 billion and 30-day average daily volumes over 500,000 shares.

Spectra Energy is a Texas-based midstream energy company that deals in natural gas gathering and processing, transmission and storage, and distribution.

In 2013, revenues increased by ~18% after spiking up by ~68% in 2012—the most remarkable improvement in the company’s segment results came from the residential sales in which sales nearly doubled in 2012.

As of December 31, 2013, CLNE served ~779 fleet customers operating ~35,240 natural gas vehicles—it also owns and operates 471 natural gas fueling stations.

Natural gas consumption has increased by only 16% from 2004–2013. According to the U.S. Energy Information Administration (or EIA) Annual Energy Outlook 2014, natural gas consumption will grow 23% from 2012–2040—25.6 trillion cubic feet (or Tcf) in 2012 to 31.6 Tcf in 2040.

While the main advantages of natural gas as a transportation fuel would be the low cost and clean-burning qualities—environmental concerns are leading the way to switching to eco-friendly cars—the increasing distribution infrastructure could actually accelerate this trend.