On Nov 11, 2014, the shares of PPL Corporation (PPL) touched a 52-week high of $36.81. The share price however finally closed at $36.57, down 0.6% from the previous day’s closing.
Systematic investment in growth ventures, focus on environmental issues, strategic asset spin-offs and divestments, strong financial position and regular dividend payouts have collectively helped PPL Corp. to hit the 52-week high mark. These positives will likely act as important drivers for the company going forward.
In the first nine months of 2014, PPL Corp. invested $2.88 billion in property, plant and equipment expenditure and plans to spend a total of $4.19 billion in 2014. The company aims to construct a transmission line, covering around 725 miles. The proposed project will enable PPL Corp. to provide reliable services to its customers. The company has already energized a 230-kilovolt section of the line through the Delaware water gap and built newly designed blades on its Unit 1 turbine at the Susquehanna facility.
PPL Corp. is pursuing a number of initiatives to reduce carbon emissions during power generation. The company is developing a natural gas combined-cycle unit, Cane Run Unit 7, with a generation capacity of 640 megawatts (MW). In addition, the company is expanding its hydroelectric generation capacity. These initiatives will help PPL Corp. to meet environmental regulations.
PPL Corp. is currently streamlining its operations and focusing on projects which are in line with its long-term growth strategy. The company is on track with the divesture of both its competitive energy business and the 633-MW hydroelectric facilities.
PPL Corp. maintains a stable liquidity position backed by strong cash generating capacity. The company had a cash balance of $1.19 billion as of Sep 30, 2014 and an operating cash flow of $2.63 billion in the first nine months of 2014. A favorable financial profile supports the company’s strategic capital spending program.
In addition, PPL Corp. is dedicated to maximizing shareholder value through regular dividend payments. During the first nine months of 2014, the company paid around $0.72 billion as dividends.
PPL Corp. currently has a Zacks Rank #2 (Buy). Other stocks in the same industry worth considering include PG&E Corporation (PCG), Consolidated Edison, Inc. (ED) and TECO Energy, Inc. (TE). PG&E Corporation carries a Zacks Rank #1 (Strong Buy) while Consolidated Edison and TECO Energy hold a Zacks Rank #2 (Buy).
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