American Electric to sell Kentucky operations to Algonquin in $2.85B deal

  • American Electric Power (NASDAQ:AEP) agrees to sell its Kentucky operations to Liberty Utilities, the regulated utility business of Algonquin Power & Utilities (NYSE:AQN), for $2.846B including debt.
  • The Kentucky operations include Kentucky Power, a state rate-regulated electricity generation, distribution and transmission utility serving 228K active customer connections, and the Kentucky TransCo electricity transmission business.
  • AEP says it plans to use the proceeds from the sale to eliminate its forecast equity needs in 2022, as the company invests in regulated renewables, transmission and other projects.
  • Algonquin expects the deal will add more than $2B of regulated electricity generation, distribution and transmission rate base assets to its current portfolio, and shift its business mix to nearly 80% regulated operations.

  • AMD is still awaiting approval from China but has received antitrust clearance in the U.S. and Europe. Last month, AMD was said to have made progress in China with large third parties ready to bless the transaction.

    For this year the company from Columbus could earn a total revenue around 16.4 billion USD. This is according to the average of the analysts' estimates. This is slightly more than 2021's revenue of 14.92 billion USD.

    Historical revenues and results American Electric Power plus estimates 2021

    financiële analyse

    The analysts expect for 2021 a net profit of 2.35 billion USD. According to most of the analysts the company will have a profit per share for this book year of 4.69 USD. Based on this the price/earnings-ratio is 18.13.

    Huge dividend American Electric Power

    Per share the analysts expect a dividend of 2.99 USD per share. Thus the dividend yield equals 3.52 percent. The average dividend yield of the energy companies equals an attractive 2.96 percent.

    American Electric Power 's market capitalization is based on the number of outstanding shares around 42.02 billion USD. -3

    Historical stock prices American Electric Power past 10 years

    equity research americanelectricpower

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