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Algonquin walks away from Kentucky Power deal. What’s next for the stock?

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Algonquin walks away from Kentucky Power deal. What’s next for the stock?


Algonquin Energy and Utilities Corp. AQN-T terminated its deal to accumulate Kentucky Energy Co. on Monday in a broadly anticipated transfer, eradicating vital strain on the stability sheet of the Canadian firm because it grapples with larger borrowing prices and an unclear outlook.

Algonquin’s share worth rose in early buying and selling however ended the day down nearly 1.5 per cent to $11.37 in Toronto.

“In mild of the evolving macro surroundings, our board of administrators and administration crew have decided that persevering with with the transaction shouldn’t be in the most effective curiosity of the corporate,” Arun Banskota, Algonquin’s chief govt officer, stated in a press release.

The US$2.6-billion deal to accumulate Kentucky Energy from American Electrical Energy Co. Inc. AEP-Q was introduced in October, 2021, when borrowing prices have been low and Algonquin – a big renewable-energy producer and controlled electrical energy supplier – was using a wave of investor confidence that supported debt and share issuance obligatory for bigger acquisitions.

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However rising rates of interest and weaker monetary efficiency have weighed on Algonquin for a lot of the previous yr.

The share worth sank in mid-November after Algonquin reported a third-quarter revenue that was considerably beneath analysts’ expectations and down 27 per cent from the identical interval in 2021. By Dec. 29, the inventory traded as little as $8.70 in Toronto, down greater than 40 per cent over the prior six weeks.

In January, Algonquin lower its dividend by 40 per cent and introduced that it could promote US$1-billion price of property to enhance its stability sheet and shield its credit standing.

Although it remained dedicated to the Kentucky Energy acquisition as lately as mid-January, analysts and buyers believed that strolling away from the deal earlier than the April 26 deadline – notably if Algonquin might keep away from a break price – can be higher for the share worth.

As a part of the termination settlement, mutually agreed with American Electrical Energy, Algonquin won’t pay the US$65-million break price that was connected to the unique deal.

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“Primarily based on our conversations, this transfer is welcomed and was anticipated by the market,” Robert Hope, an analyst at Financial institution of Nova Scotia, stated in a be aware.

Mr. Hope expects the inventory can rise to US$9.25 in New York inside the subsequent 12 months. The shares fell 1.5 per cent in New York to US$8.50 on Monday.

John Heinzl: Algonquin should restore its funds – and buyers’ belief

Algonquin’s stability sheet is stronger now that the corporate not must difficulty debt to finance the deal. Additionally, it doesn’t face the unattractive prospect of being compelled into fast asset gross sales.

Now, although, buyers should work out what the corporate will appear like with out Kentucky Energy.

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Sean Steuart, an analyst at TD Securities, stated that eradicating Kentucky Energy from his revenue estimates for Algonquin in 2023 and 2024 had no impact, provided that even Algonquin’s administration had instructed there can be minimal affect on earnings within the first yr of possession.

What’s extra, analysts anticipate the inventory’s valuation will proceed to lag friends due to Algonquin’s unclear revenue trajectory.

Mr. Steuart famous that Algonquin’s price-to-earnings ratio, based mostly on estimated 2024 earnings, was 15.1 on Monday morning after its spectacular rebound this yr, or a modest low cost to the 16.5-times P/E ratio amongst North American utilities.

Mr. Hope argued that the inventory’s valuation can enhance if Algonquin focuses its technique on normal price base development inside its utilities operations and contracted renewables tasks.

“We consider that larger-scale [deals] and additional worldwide investments are off the desk for a while,” Mr. Hope stated in his be aware.

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Ancora Holdings Group, an activist investor that holds Algonquin shares, issued a launch after markets closed encouraging the corporate to observe by with its plan to shed property.

“Algonquin ought to promptly execute these asset gross sales with a purpose to refocus Algonquin’s portfolio,” Ancora stated in its assertion, with a purpose to “regain investor confidence and restore the corporate’s buying and selling a number of.”



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Kentucky

Predicting Kentucky guard Koby Brea’s stats for the 2024-25 season

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Predicting Kentucky guard Koby Brea’s stats for the 2024-25 season


Kentucky basketball is currently preparing for Big Blue Madness with some intense practices leading up to the event. Among Kentucky’s top players heading into the season is Koby Brea, a transfer guard from Dayton. As one of the best shooters in the nation, Brea will be a major part of Kentucky’s offense.

Mark Pope has raved about him numerous times about his incredible shooting ability, saying, “By the numbers, Koby Brea is the most efficient mid-to-high major player in college basketball in the last decade.” That’s very high praise, but the 6-foot-7 guard has backed that up. Last season at Dayton, he was extremely efficient, shooting 51.2% overall and 49.8% from three-point range.

Brea will be a massive part of Mark Pope’s offensive system, adding in that he’s also the perfect fit for it as an efficient shooter. The ball-handling and spacing of the offense will allow Brea to get plenty of open looks, and with his terrific shooting percentage, there’s no question about his numbers this season. He’ll get to show off that ability in a system that is perfect for players like him.

Let’s take a look at what his stats may look like this season.

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Just like Jaxson Robinson, Brea will have plenty of opportunity to shine in Kentucky’s offense. The 6-foot-7 guard will likely even have more scoring opportunities just given how impressive of a shooter that is. Factor in the spacing, which will help get him open to shoot from deep, there will be plenty of shooting attempts up for grabs for Brea.

Brea will not only have plenty of opportunities to shoot, but he will also have plenty of scorers around him to pass it to, which will lead to more assist numbers in the long run. With the talent around him compared to his time at Dayton, there’s no reason to believe his assists won’t take a giant leap.

The 6-foot-7 guard should not need to get many rebounds this season with the big men ready to do the dirty work. Especially on the offensive end, Brea shouldn’t see many opportunities to get a rebound given his high-prioritized role as an efficient shooter.

Brea should be one of the players that fans are most excited to see this season, especially with how exciting Pope’s offense is and how it caters to shooters like him.



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Wind gusts, rain from Tropical Storm Helene could affect weekend events across Kentucky

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Wind gusts, rain from Tropical Storm Helene could affect weekend events across Kentucky


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Remnants of Tropical Storm Helene rolling through Louisville and broader Kentucky regions could affect some weekend plans to jam out at Louder Than Life or partake in fall festivities.

We’re keeping an eye on events around Louisville happening this weekend that could be impacted by severe weather. Here’s what we know so far.

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The status of Paristown Art Fest is unknown, but according to press release from the Fund for the Arts, their celebration of the arts scheduled for Saturday is being postponed.

“Celebration of the Arts will now be a part of Paristown’s Spring into Derby Art Fest, in Christy’s Garden from 10 a.m. – 4 p.m. on April 19,” Fund for the Arts spokesperson Tory Parker stated. “Paristown will then welcome Juicebox Heroes, who perform that night at 7 p.m.”

Gate openings for Friday have currently been delayed. A specific time when festivalgoers will be allowed in has not yet been released. Check back for updates.

Yes. Several districts have shut down in anticipation of severe weather Friday.

All Jefferson County Public Schools high school games have been canceled for Friday, spokesperson Mark Hebert said. There has not yet been an announcement from the Archdiocese of Louisville on the state of games to be played Friday for schools under their purview.

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Check your school’s website and communication channels to stay updated on whether events are happening.



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Troy commit Jack James sets Kentucky high school football all-time touchdown record

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Troy commit Jack James sets Kentucky high school football all-time touchdown record


Heading into Thursday night’s contest against Allen Count-Scottsville, Paducah Tilghman quarterback Jack James was on a mission.

The Troy commitment was focused on setting a new Kentucky High School Athletic Association (KHSAA) all-time passing touchdown record and the senior just needed three scoring passes to make it happen.

According to Paducah Sun News’ sports editor Jared Jensen, James threw five touchdown passes and led the Blue Tornadoes to a 42-16 victory and passed Caldwell County’s Elijah Sindelar (2011-2014) to set a new KHSAA all-time touchdown passing record with now 147. Sindelar’s previous record was 144 passing touchdowns.

The Allen Count-Scottsville/Paducah Tilghman game was moved up to Thursday night because of the threat of torrential rain from Hurricane Helene impending for Friday night.

Last season, James led Paducah Tilghman to a 13-1 record and finished completing 255-of-375 passes for 4,019 yards, 56 touchdowns and just six interceptions. James also ran in six touchdowns.

Among the other offers James has on the table are from Charlotte, Eastern Kentucky, Kentucky, Massachusetts, Miami (OH), Old Dominion and Tulane.

Follow SBLive Kentucky throughout the 2024 high school football season for Live Updates, the most up to date Schedules & Scores and complete coverage from the preseason through the state championships!

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Be sure to Bookmark High School on SI for all of the latest high school football news.

SBLIVE SPORTS LAUNCHES HIGH SCHOOL ON SI

High School On SI will serve as the premier destination for high school sports fans, delivering unparalleled coverage of high school athletics nationwide through in-depth stories, recruiting coverage, rankings, highlights and much more. The launch of a dedicated high school experience expands Sports Illustrated’s reach to even more local communities as fans can now truly follow athletes from “preps to the pros” on a single platform, bringing them closer to the action than ever before. For more information, visit si.com/high-school.

To get live updates on your phone – as well as follow your favorite teams and top games – you can download the SBLive Sports app: Download iPhone App| Download Android App

— Andy Villamarzo | villamarzo@scorebooklive.com | @sbliveky

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