Portland General Electric Company ( POR ) announced that it
intends to make equity offerings of up to 11.1 million shares with
an option to sell 1.665 million shares to the underwriters to cover
The proposed equity sale will be carried out under the shelf
registration statement filed with the Securities and Exchange
Commission that came into effect on Nov 18, 2010
Portland General plans to utilize the net proceeds from the
stock offering to reduce its debts. The balance will be used for
financing capital expenses and for general corporate purposes.
Of late, the company has taken up some big-time projects to
accelerate its future prospects. Recently, Portland General
disclosed its $1.0 billion investment plan to construct a new
gas-fired power plant in Central Oregon and a wind farm in
Portland General has also entered into a non-binding deal with
the Bonneville Power Administration to purchase 1,500 megawatt (MW)
of transmission capacity.
We believe the company's series of growth-centric projects will
involve substantial capital expenditures, which require the raising
of funds. The equity offering is a step in that direction. Portland
General at present retains a Zacks Rank #3 (Hold).
The last stock sale was concluded in Mar 2009 when the company
sold off 2.4775 million shares of its common stock at $14.10 per
share. Portland General received gross proceeds of roughly $175.9
million from that transaction which were utilized to repay all
outstanding short-term debts with the remaining left for financing
capital expenses as well as for general corporate purposes.
Utilities which are currently doing well include ALLETE
Inc. ( ALE
), DTE Energy Company ( DTE ) and
Dynegy Inc. ( DYN ). All these stocks
carry a Zacks Rank #2 (Buy).
Based in Portland, Ore., Portland General, an integrated
electric utility, engages in the generation, purchase,
transmission, distribution, and retail sale of electricity in the
state.ALLETE INC (ALE): Free Stock Analysis ReportDTE ENERGY CO (DTE): Free Stock Analysis ReportDYNEGY INC-NEW (DYN): Free Stock Analysis
ReportPORTLAND GEN EL (POR): Free Stock Analysis
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