On Aug 7, 2014, we issued an updated report on
). This Zacks Rank #2 (Buy) stock reported positive earnings
surprises in the trailing 4 quarters with an average beat of
The company reported strong financial results for the second
quarter of 2014 with both the top and the bottom line beating the
Zacks Consensus Estimate. The upside came from weather-related
electricity sales, along with customer growth and rate base
SCANA's nuclear expansion project is a catalyst for future
earnings growth. Given SCANA's financing plan, construction budget
and schedule, we expect it to fund its nuclear expansion project.
Management projects 2014 earnings in the range of $3.45-$3.65 per
share and expects to achieve the target based on industrial
expansion and continued customer growth. As the company's capital
expenditure escalates with new nuclear projects and its investments
are recognized in the rate base, the regulated earnings power is
expected to improve.
SCANA is well positioned in a positive regulatory environment,
and has a low-risk business with outstanding customer growth and
operational efficiency. These in turn are favorable for stable cash
flow generation and growth. Another positive for shareholders is
SCANA's utility business mix. Most of the company's total earnings
come from the regulated electricity and natural gas utilities
Columbia, SC-based SCANA's operations include generation,
transmission, distribution and sale of electricity to retail and
wholesale customers within the state. The company also purchases,
sells and transports natural gas to retail customers; provides
energy-related risk management services; and acquires, owns and
provides financing for nuclear fuel, fossil fuel and emission
Other Stocks to Consider
Other stocks worth considering in the energy sector include
Sunoco Logistics Partners L.P. (
), CNOOC Ltd. (
) and Western Gas Equity Partners, LP (
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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SCANA CORP (SCG): Free Stock Analysis Report
WESTERN GAS EP (WGP): Free Stock Analysis
CNOOC LTD ADR (CEO): Free Stock Analysis Report
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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