Dominion Energy (D)

Yo también. Lo del premarket era un espejismo en el desierto.

Las he vendido a 80$ y a otra cosa.

No me importa quedarme en liquidez

Vendidas con plusvalias, pocas

Pues a mi tambien me han quitado una que tenia en la lista para este mes o el siguiente…

La verdad es que el dichoso Corona esta poniendo a los chicos de SSD en dificultades :wink:

Ya manejais alternativa? UGI?

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Cortada la cabeza a D…a cambio he ampliado IBE y he iniciado posición en PPL.

Warren Buffett cierra su primera operación en la pandemia con la inversión de 8.600 millones en Dominion

Al jefe le gusta.

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Tengo que mirarlo pero igual cambio de sector y tiro por farmas

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Al jefe le gusta lo que ha comprado de D (la parte midstream). No ha entrado en D.

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No hace falta.
Se rompió el espejismo, ya va por -8%.

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Mayores costes de transacción, mayores costes de mantenimiento, seguridad jurídica muy mejorable, poca liquidez, dificultad para diversificar, mercado menos eficiente, riesgo país, mayor tiempo dedicado, más dolores de cabeza… no lo veo

:joy:

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¡ Puff !..al menos de ésta sí he podido librarme gracias a mi manera (un tanto primitiva) de valorar una empresa.
En Junio hice mi actualización de utilities y en el caso de Dominion me salía que :cold_face:

  • Los ratios de la tranquilidad eran muy malos
  • Como la evolución de su FCF era bastante negativa año tras año, estaba recurriendo a un Payout del 175 % para seguir incrementando su yield a muy buen ritmo.
  • Tanto su ROA como su ROE eran de lo peor del sector
  • :poop: :poop: :poop:

Por cierto…PPL era igual de :poop:

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A mí la caída que ha tenido hoy me parece lógica pues ya sabemos como las gastan en Usa con los recortes de dividendo.

Lo que no entiendo es como en pre-market se ha llegado a pagar más de 96 USD por ella. Algún despistado que ha visto Buffet y Dominion en la misma noticia y se ha liado???

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Roger Conrad - Utility Forecaster

When the deal closes in Q4, Dominion will receive $4 billion in cash and will shed $5.7 billion in debt. The company also retains an unlevered 50 percent stake in Cove Point, which is fully contracted. And it will continue to operate regulated natural gas distribution utility units in the Carolinas and Utah.
The roughly 12 percent reduction in total debt will be positive for Dominion’s credit rating. So should a new earnings and revenue mix that will be more than 90 percent from regulated utilities. And unloading natural gas midstream assets eliminates future regulatory and legal headaches as Dominion pushes to be carbon neutral by 2050.

As for growth, management cites $55 billion in rate-based renewable energy capital spending opportunities over the next 15 years. That will come from expanding offshore and onshore wind, battery storage and solar generation, while retiring 4 gigawatts of coal and oil-fired generating capacity by 2025.

The midstream assets’ selling price of roughly 10 times annual EBITDA appears amicable for both sides. Nonetheless, there is some pain for Dominion shareholders. Mainly, the company will “re-base” its dividend from an annualized rate of $3.76 per share to $2.50, effective in Q4.

The dividend cut follows a reduction in projected 2020 earnings per share guidance from $4.25 to $4.60 to a new range of $3.37 to $3.63. That’s entirely due to lost earnings from the sale of the midstream assets, as management has encouragingly affirmed guidance for the regulated electricity and natural gas utilities despite COVID-19 fallout.

Dominion does plan to buy back $3 billion in stock. And selling the midstream operations will boost projected annual earnings growth to a range of 10 to 11 percent for 2021, with 6.5 percent a year thereafter. Management is targeting a payout ratio of 65 percent and an annual dividend growth rate of 6.5 percent starting in 2021, up from the previous guidance rate of 2.5 percent.

The change to the dividend policy will arguably make Dominion financially stronger, and therefore better able to capitalize on its huge opportunity in utility rate base investment. The question is does this stock with a reduced dividend still fit the objectives of conservative income investors?
At a growth rate of 6.5 percent, it will take more than six years for the reduced dividend to return to the old level. And it will take several years more to overtake the old rate if it had kept growing at the previous target of 2.5 percent annually.

Offsetting that is the fact the new dividend and its growth trajectory are arguably far more secure than the old payout policy. That’s primarily because the new plan is backed entirely by utility CAPEX already sanctioned by state regulators.

The initial market reaction to Dominion’s move has been negative, I suspect primarily because of the unexpected dividend cut. On the other hand, management’s action was voluntary rather than forced by financial circumstances. And in this environment, many institutional investors are likely to prefer the company as a higher quality growth stock, despite the lower yield.

Slimmed down Dominion is also suddenly a candidate for M&A, with Duke a potential partner. The two companies’ utility units are geographically contiguous, sharing regulators in both Carolinas. And by cancelling the ACP, they’re both now squarely focused on essentially the same rate-based investment opportunities for growth.

Duke has announced a five-year, $56 billion capital spending plan that’s heavy on renewable energy, battery storage and grid projects. That’s right down the line with preferences of consumers, businesses and politicians in its service territory, which also includes a large swath of western Florida.
Duke will take a non-cash charge of $2 to $2.5 billion against Q2 earnings, which it expects to report in mid-August. That’s mostly from ACP. But management is also generally holding to its 2020 guidance, including adjusted earnings per share on the “low end” of the previous $5.05 to $5.45 range.

The bottom line: Despite walking away from ACP, both Dominion and Duke remain solid portfolio holdings for conservative, income-focused investors. Negative reaction to today’s news is an opportunity to pick up shares, not a reason to run for the hills.

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M*

We are reducing our fair value estimate to $80 per share from $86 after Dominion Energy announced it was selling most of the assets in its gas transmission and storage segment and abandoning development of the Atlantic Coast Pipeline. The GT&S assets, excluding a 50% interest in Cove Point and investments in renewable natural gas projects, are planned to be sold to Berkshire Hathaway Energy for total consideration of $9.7 billion including the assumption of $5.7 billion of debt.

Dominion plans to cut its dividend to an annualized rate of $2.50 per share beginning in the fourth quarter, which would represent a payout ratio of 64% on our 2021 earnings per share estimate. We had projected a payout ratio over 80% on the previous dividend level and EPS estimate, and this had been a material concern. The payout is now in line with regulated utility peers.

We believe the market has overreacted to the news; Dominion shares are currently trading in the mid-$70s, down more than 10% from the previous closing price and below our new fair value estimate. We had estimated the loss of ACP would result in a $4 decrease in our fair value estimate, but the additional loss of potential growth in the GT&S segment reduced our estimate by an additional $2 per share.

We lowered our 2020 operating EPS estimate to $3.50 from $4.30 based on the announcement. Our new estimate is at the midpoint of Dominion’s latest EPS guidance range of $3.37-$3.63. The previous range was $4.25-$4.60.

Dominion plans to use $3 billion of cash from the GT&S sale for share repurchases in late 2020. The share repurchases will likely not have a significant impact on 2020 operating earnings, but we estimate the buyback and organic utility earnings growth will push 2021 EPS to $3.89, an 11% increase. Dominion believes it can increase earnings 6.5% annually from the 2021 base, and our estimates in 2022 and beyond are in line with this target.

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En cambio hay otros que lo tienen clarisimo

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Es que Don Amancio muchos de los problemas que ha comentado @Bass los tiene eliminados… Seguridad Juridica, Poca liquidez, Diversificacion, Riesgo Pais, tiempo, dolores de cabeza…

Despues de quitar estos te quedan menos problemas :grin: y entonces a lo mejor si merece la pena

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Correcto @Der_DGI_Prinz y no solo eso. Cuando uno tiene tal cantidad de millones en una sola empresa debe tener como prioridad económica número uno la diversificación del patrimonio. Y no solo comprando otras empresas, sino también otros activos.

Yo, además de una importante cantidad de inmuebles, tendría (y supongo que don Amancio tendrá) un buen montón de lingotes de oro a buen recaudo, así como buenos maletines de efectivo en varias monedas, cuentas corrientes personales en distintos países, obras de arte, etc.

Cuando uno tiene el dinero por castigo debe invertir no solo en el mejor activo existente (la bolsa) sino también en el segundo mejor activo existente, y en el tercero y en el cuarto.

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El cut lo justifican con que es parte de la transición a las renovables?

No creéis que pueda tener cierta parte positiva a largo plazo? Y la venta a berkshire también afectará a corto plazo a los statements, no tengo claro que peso ocupaba pero bueno.

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Yo la tengo con ganancias. No se que hacer. Que duro es tener reglas y luego dudas al aplicarlas :sweat_smile:

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Tras algunas dudas, yo la vendí justo a su precio de coste.
Lo estoy reinvirtiendo en UGI, ED, TSE:CU y mirando si entro en NFG.

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