Duke Energy Corporation
) announced that it has acquired energy company Outland Energy
Services. The terms of the deal weren't disclosed.
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Canby-based Outland Energy Services maintains and monitors wind
turbines. The company has about 125 full-time employees.
Duke Energy's acquisition of the fringe wind player is in line
with the company's strategy of lowering costs of its renewable
energy portfolio. Going forward, Outland will be integrated into
Duke Energy's Energy Renewables business. Outland will service
Duke's own equipment thereby lowering the power company's overall
Based in Charlotte, North Carolina, Duke Energy is a diversified
energy company with more than $100 billion in total assets. Its
regulated utility operations serve approximately 7.1 million
electric customers located in six states in the Southeast and
Midwest. Its commercial power and international business segments
own and operate diverse power generation assets in North America
and Latin America, including a growing portfolio of renewable
energy assets in the U.S.
The acquisition of Progress Energy in July 2012 made Duke Energy
the largest U.S. utility in terms of market capitalization.
) was the largest U.S. utility.
Duke Energy Corporation's U.S. electricity and gas operations
generate a relatively stable and growing earnings stream. Looking
ahead, the company's outlook is supported by its strong balance
sheet and ongoing capital expansion projects which add visibility
to the story.
However, valuation continues to be restrained by a number of
factors, including the present unfavorable macro backdrop,
predominantly fossil-fuel based generation assets, tepid demand
for electricity, foreign currency exchange volatility, pending
regulatory cases and the aftermath of Hurricane Sandy.
New Jersey was the hardest hit by Sandy while Duke Energy has
about 65% of customers in this state. Other hard-hit states
include Connecticut, West Virginia, New York and Rhode Island.
The biggest utilities in the path of the storm included units of
Consolidated Edison Inc.
Dominion Resources, Inc.
Public Service Enterprise Group Inc.
Duke Energy presently retains a short-term Zacks #3 Rank (Hold)
that corresponds with our long-term Neutral recommendation on the