Cleco Corp. (CNL, Financial) filed Quarterly Report for the period ended 2010-06-30.
Cleco Corp. has a market cap of $1.76 billion; its shares were traded at around $29.02 with a P/E ratio of 13.6 and P/S ratio of 2.1. The dividend yield of Cleco Corp. stocks is 3.4%.CNL is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Kenneth Fisher of Fisher Asset Management, LLC, John Keeley of Keeley Fund Management, Steven Cohen of SAC Capital Advisors.
Cleco Power applied for a grant in August 2009 under the DOE s small-grant process, which caps awards at $20.0 million. In October 2009, the DOE notified Cleco Power that it had been selected to receive a $20.0 million grant to implement smart-grid technology for all of its customers. On May 3, 2010, Cleco Power accepted the terms of the $20.0 million grant from the DOE. Cleco Power estimates the project will cost $73.0 million, with the DOE grant providing $20.0 million toward the project and Cleco Power providing the remaining $53.0 million. The grant program is a part of the American Recovery and Reinvestment Act of 2009, an economic stimulus package passed by Congress in February 2009. Smart-grid technology includes the installation of “smart electric meters” that enable two-way communication capabilities between a home or business and a utility company. In April 2010, Cleco Power received board approval for the project conditioned upon approval by the LPSC. Cleco Power filed an application with the LPSC in June 2010, and requested expedited approval of the project prior to the end of 2010. In July 2010, Cleco Power received from the LPSC, a Notice of Assignment and Notice of Status Conference scheduled for October 25, 2010. Upon approval from the LPSC, Cleco Power expects to complete the project by the first quarter of 2013. If Cleco Power does not receive LPSC approval, the project will be re-evaluated at that time.
In January 2009, Cleco Power filed an application with the LPSC to improve its blackstart process by purchasing a 33-MW gas turbine to be sited at Teche Power Station and designated as Teche Unit 4. The purpose of the project is to allow Cleco Power to return its generation system to service more efficiently than is currently possible in the event of a total system shutdown. The LDEQ issued an air permit in November 2009 and the LPSC application was approved in December 2009. Cleco Power estimates the project will cost $31.0 million, which includes the necessary upgrades to allow the purchased unit to also function as a generation resource suitable for peaking capacity. At June 30, 2010, Cleco Power had spent $11.3 million on the project and expects to incur an additional $14.6 million by the end of 2010. The project is expected to be completed in the second quarter of 2011.
Federal and state income taxes increased $10.4 million, or 150.2%, during the second quarter of 2010 compared to the second quarter of 2009 primarily due to an increase in pre-tax income, excluding equity AFUDC. Federal and state income taxes increased $14.3 million due to the change in pre-tax income and $1.1 million due to a valuation allowance on the deferred tax asset for a capital loss carryforward. These increases were partially offset by $1.7 million to record tax expense at the annual projected effective tax rate, $1.8 million for state flow-through benefits, and $1.5 million for miscellaneous items. The effective income tax rate is different than the federal statutory rate due to permanent tax deductions, a valuation allowance on the deferred tax asset for a capital loss carryforward, and state tax expense.
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Cleco Corp. has a market cap of $1.76 billion; its shares were traded at around $29.02 with a P/E ratio of 13.6 and P/S ratio of 2.1. The dividend yield of Cleco Corp. stocks is 3.4%.CNL is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Kenneth Fisher of Fisher Asset Management, LLC, John Keeley of Keeley Fund Management, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
In September 2008, Cleco Power entered into an agreement with two other utilities to upgrade interconnected transmission systems in south Louisiana. The project received LPSC and SPP approval in February 2009. The joint project includes expanding and upgrading the electric transmission infrastructure in south central Louisiana in an area know as the “Acadiana Load Pocket.” The estimated cost of the project is $250.0 million. Cleco Power s portion of the cost is approximately $150.0 million, including AFUDC. At June 30, 2010, Cleco Power had spent $26.4 million on the project and expects to incur an additional $44.5 million by the end of 2010. Upgrading the interconnected transmission system is expected to increase capacity, reduce transmission constraints, and improve electric service for customers served by all three utilities. The project is expected to be completed in 2012.Cleco Power applied for a grant in August 2009 under the DOE s small-grant process, which caps awards at $20.0 million. In October 2009, the DOE notified Cleco Power that it had been selected to receive a $20.0 million grant to implement smart-grid technology for all of its customers. On May 3, 2010, Cleco Power accepted the terms of the $20.0 million grant from the DOE. Cleco Power estimates the project will cost $73.0 million, with the DOE grant providing $20.0 million toward the project and Cleco Power providing the remaining $53.0 million. The grant program is a part of the American Recovery and Reinvestment Act of 2009, an economic stimulus package passed by Congress in February 2009. Smart-grid technology includes the installation of “smart electric meters” that enable two-way communication capabilities between a home or business and a utility company. In April 2010, Cleco Power received board approval for the project conditioned upon approval by the LPSC. Cleco Power filed an application with the LPSC in June 2010, and requested expedited approval of the project prior to the end of 2010. In July 2010, Cleco Power received from the LPSC, a Notice of Assignment and Notice of Status Conference scheduled for October 25, 2010. Upon approval from the LPSC, Cleco Power expects to complete the project by the first quarter of 2013. If Cleco Power does not receive LPSC approval, the project will be re-evaluated at that time.
In January 2009, Cleco Power filed an application with the LPSC to improve its blackstart process by purchasing a 33-MW gas turbine to be sited at Teche Power Station and designated as Teche Unit 4. The purpose of the project is to allow Cleco Power to return its generation system to service more efficiently than is currently possible in the event of a total system shutdown. The LDEQ issued an air permit in November 2009 and the LPSC application was approved in December 2009. Cleco Power estimates the project will cost $31.0 million, which includes the necessary upgrades to allow the purchased unit to also function as a generation resource suitable for peaking capacity. At June 30, 2010, Cleco Power had spent $11.3 million on the project and expects to incur an additional $14.6 million by the end of 2010. The project is expected to be completed in the second quarter of 2011.
Federal and state income taxes increased $10.4 million, or 150.2%, during the second quarter of 2010 compared to the second quarter of 2009 primarily due to an increase in pre-tax income, excluding equity AFUDC. Federal and state income taxes increased $14.3 million due to the change in pre-tax income and $1.1 million due to a valuation allowance on the deferred tax asset for a capital loss carryforward. These increases were partially offset by $1.7 million to record tax expense at the annual projected effective tax rate, $1.8 million for state flow-through benefits, and $1.5 million for miscellaneous items. The effective income tax rate is different than the federal statutory rate due to permanent tax deductions, a valuation allowance on the deferred tax asset for a capital loss carryforward, and state tax expense.
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