Latest news with #Allete
Reuters
4 days ago
- Business
- Reuters
Allete quarterly profit drops on higher operating, interest expense
Aug 7 (Reuters) - U.S. utility Allete (ALE.N), opens new tab posted a fall in second-quarter profit on Thursday, weighed down by lower industrial margins along with higher operating and interest expenses. Higher-for-longer interest rates can weigh on utilities as it makes investing in the construction and maintenance of critical infrastructure such as electrical grids more expensive. The company reported interest expenses of $23.1 million in the reported quarter, up almost 15% from a year ago, while total operating expenses were up 5% at $342.3 million. The quarterly results "were impacted primarily by lower industrial margins as a result of lower sales to taconite customers at Minnesota Power which are expected to continue through 2025," said CFO Jeff Scissons. "Minnesota Power would be filing a rate case to account for reduced revenue, increased depreciation from capital investments and inflationary pressures," he added. U.S. utilities have been constantly looking to raise customer power bills to upgrade infrastructure, as the country's electrical grids face extreme weather and growing demand from industry electrification and data center expansions. Regulated utilities use rate case proceedings to determine the amount that customers need to pay for electricity, natural gas, private water and steam services. Minnesota Power, a utility division of Allete, also said earlier this month it plans to build the 200-megawatt Longspur Wind project in North Dakota as part of its EnergyForward transition toward a carbon-free energy future. Allete's regulated operations segment fell 31% to $23 million. The company's net income fell 3% to $31.9 million, or 55 cents per share, in the quarter ended June 30.
Yahoo
17-07-2025
- Business
- Yahoo
Judge recommends state regulators reject sale of Minnesota Power to BlackRock
Judge recommends state regulators reject sale of Minnesota Power to BlackRock originally appeared on Bring Me The News. A judge has recommended that state regulators reject the proposed $6.2 billion sale of Allete, the Duluth-based parent company of Minnesota Power, to two private investors. In the filings released Tuesday, Judge Megan J. McKenzie cited reports and analysis suggesting the proposed sale to Canada Pension Investment Board and BlackRock's Global Infrastructure Partners could bring about new risks for Minnesota Power and its customers, as well increase electric rates. 'Weighing against these possible benefits, there are foreseeable risks of harm to the energy transition, Allete's long-term financial health, and ratepayers. On balance, the risks of the deal, as proposed, outweigh the possible benefits,'McKenzie wrote in the filings. The proposed sale between the utilities provider and the investment groups was announced last year. Earlier this month, Allete announced that it reached an agreement with the Minnesota Department of Commerce to back the sale, after pledging to a one-year rate freeze and committing to green energy projects. The Citizens Utility Board of Minnesota, a nonprofit advocacy group, applauded the judge's recommendation, saying many Minnesota Power customers already struggle to afford their electric bills. 'At a time when the separation between the 'haves' and the 'have-nots' is growing more apparent, this deal puts the interests of Allete's shareholders ahead of Minnesota Power customers,' Citizens Utility Board of Minnesota executive director Annie Levenson-Falk said in a statement. The Sierra Club, the Minnesota Attorney General's Office, and CURE, an environmental nonprofit, have also voiced their opposition to the sale. The final decision on the outcome of the sale now lies with the Minnesota Public Utilities Commission. Minnesota Power services about 150,000 residential and commercial customers in northeastern Minnesota. This story was originally reported by Bring Me The News on Jul 16, 2025, where it first appeared. Solve the daily Crossword
Yahoo
16-07-2025
- Business
- Yahoo
Law judge calls for Minnesota PUC to reject $6.2B Allete private equity deal
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Dive Brief: The $6.2 billion deal under which the Canada Pension Plan Investment Board and Blackrock's Global Infrastructure Partners would buy Allete, a Duluth, Minnesota-based utility company, should be rejected, an administrative law judge said Tuesday. The deal poses foreseeable risks to Minnesota's energy transition, Allete's long-term financial health and ratepayers, ALJ Megan McKenzie said in a recommended decision filed with the Minnesota Public Utilities Commission. 'On balance, the risks of the deal, as proposed, outweigh the possible benefits.' McKenzie said. Allete — parent to Minnesota Power and Superior Water, Light and Power — strongly disagreed with the non-binding recommendation, saying it failed to fully consider the benefits of a July 11 settlement agreement with the Minnesota Department of Commerce. 'The ALJ report mischaracterizes the parties, their agreements and plans, and the benefits and risks of the acquisition,' Allete said Tuesday. Dive Insight: The proposed Allete transaction, announced in May 2024, has cleared all required regulatory hurdles, except for approval by the Minnesota PUC. However, ALJ McKenzie agreed with entities opposing the deal — the Minnesota Office of the Attorney General, a consortium of Minnesota Power's large industrial customers, the Citizens Utility Board of Minnesota, the Sierra Club and CURE, an advocacy group — that it doesn't meet Minnesota's public interest standard. Allete and its buyers failed to adequately support key arguments for completing the deal, such as improving the utility company's access to capital and expertise, according to McKenzie. 'Petitioners have not shown that the acquisition will improve Allete's access to capital or even whether Allete needs improved access,' McKenzie said. Also, access to CPP Investments' and GIP's expertise appears to have limited value because of assurances that they intend to keep Allete's existing management, staff and business plan, she said. Further, the private equity model offered by CPP Investments and GIP isn't in the public interest, McKenzie said, pointing to the experience of Upper Peninsula Power Co., a utility in Michigan with similarities to Minnesota Power that was bought by private equity firms in 2014 and 2021. After a series of post-transaction rate increases, UPPCO's rates were 9 cents/kWh higher than the average rate for other investor-owned utilities in Michigan at the end of last year, according to McKenzie. In her recommended decision, McKenzie cited Federal Energy Regulatory Commission Chairman Mark Christie's warnings that asset managers such as Blackrock could hurt ratepayers by trying to maximize profits from the utilities they buy. 'Consistent with the strategies of private equity investors generally, the partners plan to become deeply involved in Allete's governance,' McKenzie said. CPP Investments and GIP expect to earn a return by buying Allete that 'significantly exceeds' the returns produced by publicly traded utilities, according to McKenzie. 'Petitioners are most likely to make up the difference between a plausible regulated return and the targeted return through financial engineering,' she said. After the deal was announced, S&P Global Ratings lowered Allete's outlook to 'negative' from 'stable' over concerns the transaction could lead to higher leverage and weaker financial measures at the company, McKenzie noted. Under private owners, Allete will no longer be required to make financial filings at the U.S. Securities and Exchange Commission, which could significantly reduce information available to the Minnesota PUC and ratepayers about the company, according to McKenzie. Despite the ALJ recommended decision, Allete expects the Minnesota PUC will approve the transaction this year, noting it is supported by the Minnesota Chamber of Commerce, the International Brotherhood of Electrical Workers Local 31, the Laborers' International Union of Minnesota & North Dakota and other organizations. Under the agreement with the Minnesota Department of Commerce, Minnesota Power would freeze its base rates for a year and reduce its return on equity from 9.78% to 9.65% until a future rate case, providing immediate ratepayer benefits, according to Allete. Also, CPP Investments and GIP agreed to fund Allete's five-year capital plan, ensuring that the company will have access to the capital needed to advance its transmission and renewable energy goals, Allete said. Besides its utility subsidiaries, Allete owns Allete Clean Energy, a renewable energy company, BNI Energy, a coal company, and New Energy Equity, a solar developer. It has an 8% stake in American Transmission Co. Recommended Reading Allete agrees to $6.2B sale to Canadian pension fund, New York private equity firm Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
25-06-2025
- Business
- Forbes
Allete Shares Enter Oversold Territory
In trading on Wednesday, shares of Allete entered into oversold territory, changing hands as low as $63.555 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. 10 Oversold Energy Stocks » In the case of Allete, the RSI reading has hit 29.7 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 51.1, the RSI of WTI Crude Oil is at 47.5, the RSI of Henry Hub Natural Gas is presently 41.4, and the 3-2-1 Crack Spread RSI is 45.6. A bullish investor could look at ALE's 29.7 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Looking at a chart of one year performance (below), ALE's low point in its 52 week range is $61.51 per share, with $66.40 as the 52 week high point — that compares with a last trade of $63.65. Allete shares are currently trading down about 0.3% on the day. ALE Can your brain be trained to become a chart-predicting wizard? Click here to find out
Yahoo
28-04-2025
- Automotive
- Yahoo
Why Agree Realty, LCI Industries, And Allete Are Winners For Passive Income
Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. Agree Realty, LCI Industries, and Allete have rewarded shareholders for years and recently announced dividend increases. These companies currently offer dividend yields of up to nearly 6%. Agree Realty Agree Realty (NYSE:ADC) is a real estate investment trust that acquires and develops properties net leased to industry-leading, omnichannel retail tenants. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Can you guess how many retire with a $5,000,000 nest egg? . Agree Realty has increased its dividends consecutively for the last 12 years. In its most recent dividend announcement on April 10, it raised the monthly payout from $0.253 to $0.256 per share, equal to an annual figure of $3.072 per share. The dividend yield on the stock currently stands at 3.88%. Agree Realty's annual revenue as of Dec. 31 stood at $617.10 million. According to its Q1 2025 earnings release on April 22, the company posted revenues of $169.16 million and AFFO of $1.06. Both figures came in above the consensus estimates. If you invested $10,000 in Agree Realty stock 10 years ago, how much would you have now? Check out this article by Benzinga to learn more. Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. LCI Industries LCI Industries (NYSE:LCII) manufactures and supplies engineered components for the manufacturers of recreational vehicles and adjacent industries in the U.S. and internationally. LCI Industries has increased dividends every year for the last nine years. According to its most recent dividend hike announcement on Nov. 14, 2024, the company's board raised the quarterly payout from $1.05 to $1.15 per share, equal to an annual figure of $4.60 per share. More recently, in its dividend announcement on Feb. 19, the company maintained the payout at the same level. The current dividend yield on the stock is 5.83%. The company's annual revenue as of Dec. 31 stood at $3.74 billion. In its Q4 2024 earnings release on Feb. 11, it posted revenues of $803.14 million and EPS of $0.37, both above the consensus Allete (NYSE:ALE) operates as an energy company in two segments, Regulated Operations and Allete Clean Energy. It generates electricity from coal-fired, biomass co-fired/natural gas, hydro, wind, and solar. The company has raised its dividends every year for the last 14 years. As per its most recent dividend hike announcement on Jan. 30, its board increased the quarterly payout by 3.5% to $0.73, equaling an annual figure of $2.92 per share. The current dividend yield is 4.48%. ALLETE's annual revenue as of Dec. 31 stood at $1.53 billion. In its most recent earnings report on Feb. 13, the company posted Q4 2024 revenues of $364.80 million and EPS of $0.87. Both figures missed consensus estimates. Agree Realty, LCI Industries, and Allete are good choices for investors seeking reliable passive income. Their dividend yields of up to nearly 6% and long history of consistent hikes make them attractive to income-focused investors. Check out this article by Benzinga for three more stocks offering high dividend yields. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Why Agree Realty, LCI Industries, And Allete Are Winners For Passive Income originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
