On Apr 19, 2013, shares of
Dominion Resources Inc.
) hit a 52-week high of $61.09. Dominion Resources registered a
positive earnings surprise in the last quarter, with an earnings
beat of 1.47%.
The company completed several growth projects in 2012 and is on
course to complete a few more in 2013. In July 2012, Virginia
City Hybrid Energy Center began commercial operations. The
company started construction of the $1.1 billion, 1,329-megawatt
(MW) Warren County three-on-one combined cycle plant which is
expected to come online in the latter half of 2014.
In Dec 2012, Dominion Resources entered into a $1.5 billion
midstream joint venture with Caiman Energy II LLC. This joint
venture will provide midstream services to natural gas producers
operating in the Utica shale in Ohio and portions of
Pennsylvania. Contribution from these projects will allow
Dominion to meet its annual earnings growth target of 5% to 6%.
The company expects to continue its strong performance in 2013.
The drivers include earnings from its newly completed growth
projects at Dominion Energy, sales growth at Virginia Power and
higher rider related revenues.
We expect long-term earnings growth of 4.63%. The Zacks Consensus
Estimates for 2013 and 2014 are $3.40 and $3.58, respectively.
This reflects projected year-over-year growth of 11.52% in 2013
and 5.37% in 2014.
The company has consistently paid dividends to its shareholders
and has raised its quarterly dividend six times in as many years.
The incremental dividend reflects the strength and successful
execution of the company's business strategy. The current annual
dividend is $2.25 per share for 2013, up 6.6% from $2.11 per
share paid in 2012.
Dominion Resources currently carries a Zacks Rank #3 (Hold).
Other electric utilities like
Brookfield Infrastructure Partners L.P.
Huaneng Power International, Inc.
Empresa Nacional de Electricidad S.A.
) are performing well and currently have a Zacks Rank #1( Strong
Richmond, Va. based Dominion Resources Inc. was founded in
1909. The company together with its subsidiaries engages in
producing and transporting energy in the U.S. With approximately
15,500 employees, the company's market capitalization is $35.20
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