Xcel Energy Inc.
) announced that it will make equity offerings of a gross value
of $400.0 million on an at-the-market basis. The company has
filed a prospectus regarding this proposed equity sale. The
shares offering will be presided by certain financial
Xcel Energy has a diversified portfolio of utility sources and
has been occasionally involved in equity sale. The company's last
equity sale was made in 2010 when it offered 21.85 million shares
at a price of $20.85 bringing the total value to $456.0
The equity offerings is a part of the company's capital
investment plan for the period 2013 to 2017 to finance
maturities, reduce debt, fund construction projects and
acquisitions, inject equity in ancillary businesses and for
general corporate purposes. The plan includes allocation of
$10,150.0 million from operating cash flow, $2,045.0 million from
new debt, and $400.0 million from equity as well as dividend
Xcel Energy's CapX2020 transmission projects and investments
in wind programs are expected to drive growth in the near term.
Moreover, a successful ruling in the Wisconsin electric and
natural gas rate cases would further propel the company's top
line, going forward. Its dividend yield of 3.69% is higher than
the industry average of 2.62% which would also help retain
investor confidence in the stock.
However, several pending rate cases associated with Xcel
Energy's Colorado, Texas, North Dakota and New Mexico businesses
could be an overhang on the company's operations. Currently, Xcel
Energy carries a Zacks Rank #3 (Hold).
Other partnerships which have offered units to the public for
the purpose of financing debt include
Buckeye Partners L.P.
NuStar Energy L.P.
Markwest Energy Partners L.P.
), issued units to fund its capital expenses related to the
pipeline building programs and for general partnership
Based in Minneapolis, MN, Xcel Energy, along with its
subsidiaries engages in the generation, purchase, transmission,
distribution and sale of electricity in the United States.
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