Weekly Update- Utility Sector

Utilities Weekly Update November 22, 2013

Jenna Ecker [email protected]

Ashley Boecker [email protected]

5D 3M 6M 1Y 5Y YTD

S&P 500 .75 8.79 8.58 28.17 101.12 23.25

XLU -1.85 3.02 0.34 11.56 27.86 8.3

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5D 3M 6M 1Y 5Y YTD

S&P500

XLU

Ticker Close Market Cap P/E (ttm) F P/E 52W Range EPS (ttm) Dividend Ex-Dividend Date

CNP $24.57 10.09B 30.48 18.05 18.79-25.65 0.77 0.83 November 13, 2013

DUK $71.13 49.92 20.76 15.47 61.04-75.46 3.41 3.12 November 13, 2013

NU $42.18 13.10 B 16.78 15.32 37.70-45.66 2.48 1.47 September 12, 2013

OKE $58.95 12.16B 43.17 29.74 39.39-59.51 1.37 1.52 October 31, 2013

SRE $89.49 21.55B 21.74 19.54 65.74-93.00 4.05 2.52 September 25, 2013

WEC $42.20 9.44B 18.05 16.21 36.16-45.00 2.31 1.53 November 12, 2013

XLU News

Looking Friday at week-over-week

shares outstanding changes, the

largest inflow was seen in the

Utilities Sector which added 10.2

million shares equaling a 7.6%

increase week over week. Among the

largest underlying components of

XLU, in trading Friday Duke Energy

(DUK) is up about 0.2%.




CenterPoint Energy (CNP)

Ticker Close Market Cap P/E (ttm) F P/E 52W Range EPS (ttm) Dividend Ex-Dividend Date CNP $24.57 10.09B 30.48 18.05 18.79-25.65 0.77 0.83 November 13, 2013

CenterPoint Energy owns a portfolio of energy-related businesses. Its regulated electric utility provides service in the Texas Gulf Coast that includes the city of Houston. The company has natural gas distribution systems in six states, including the cities of Houston and Minneapolis, and owns two interstate natural gas pipelines. CenterPoint's field services business gathers and processes natural gas in the midcontinent region and its natural gas marketing business has more than 11,000 commercial and industrial customers.

Technical Analysis

CNP shares have traded

between a low of $18.79 and

a high of $25.65 and are now

at $24.57, which is 26%

above that low price.

Catalysts

Planned and Potential Rate Cases

Midstream Investment Activity

Attractive and Balanced Portfolio

Advanced Meter Technology

Next Earnings date:

February 24, 2014

News

CNP, OGE and ArcLight Capital Partners, LLC

announced today that Enable Midstream

Partners, LP has filed a registration

statement related to the proposed IPO of

its common units representing limited

partner interests. The offering is expected

to occur in the first quarter of 2014.

Businesses:

Electric Transmission &

Distribution

Natural Gas Distribution

Interstate Pipelines

Field Services

Competitive Natural

Gas Sales and Services




Duke Energy (DUK)

Ticker Close Market Cap P/E (ttm) F P/E 52W Range EPS (ttm) Dividend Ex-Dividend Date DUK $71.13 49.92 20.76 15.47 61.04-75.46 3.41 3.12 November 13, 2013

Duke Energy provides electric and gas services in a sustainable way. They are the largest electric power holding company in the United States, supplying and delivering energy to approximately 7.2 million U.S. customers. They have approx. 57,700 megawatts of electric generating capacity in the Carolinas, the Midwest and Florida – and natural gas distribution services in Ohio and

Kentucky. Their commercial and international businesses own and operate diverse power generation assets in North America and Latin America, including a portfolio of renewable energy assets.

Technical Analysis Over the past week, the 200-d MA has remained constant while the 50d-MA has advanced 0.5%.

Catalysts

Increasing Renewable Investments

Economic Development

Pending Rate Cases

Continued Dividend Growth

Next Earnings date:

February 10, 2014

News

Beginning December 1, 2013 DUK Progress

Customers in North Carolina will pay less

for electricity. The decrease amounts to

$2.12 which is nearly 2 percent per month.

DUKE Carolinas, LLC, has filed a new

renewable energy program with the NCUC.

This is an experimental program designed

to give energy-intensive customers the

option of offsetting some or all of their

energy consumption from new load- with

renewable energy.

Subsidiaries:

Franchised Electric & Gas Services

Duke Energy Renewables

Telecommunications Duke Energy

Commercial Transmission

Commercial Power International Duke Energy Retail




Northeast Utilities (NU)

Ticker Close Market Cap P/E (ttm) F P/E 52W Range EPS (ttm) Dividend Ex-Dividend Date NU $42.18 13.10 B 16.78 15.32 37.70-45.66 2.48 1.47 September 12, 2013

Northeast Utilities operates New England’s largest utility system serving more than 3.6 million electric and natural gas customers in Connecticut, Massachusetts and New Hampshire. NU operates six subsidiaries: Connecticut Light & Power, NSTAR Electric & Gas, NU Transmission, Public Service of New Hampshire, Western Massachusetts Electric Co. and Yankee Gas Services Company. Their overall company vision can be summed up by three words: Energy, Growth, and Leadership.

Technical Analysis

NU may find its initial

support at its 200d MA of

42.50 and further support at

its 50d MA of $41.89.

Catalysts

Transmission Projects (NEEWS)

Massive Distribution Expansion

Constant Dividend Growth

Next Earnings date:

February 17, 2014

News

Northeast Utilities is up o.1% since reporting

quarterly results 3 weeks ago. Consensus

expected earnings of $0.73 on sales of $1.8

billion. The company actually reported EPS of

$0.69 on sales of $1.9 billion, missing EPS

estimates by $0.04 and beating revenue

estimates by $120.0 million.

Subsidiaries:

Connecticut Light and

Power

NSTAR Electric & Gas

Public Service of New

Hampshire

Western Massachusetts

Electric Company

Yankee Gas




ONEOK (OKE)

Ticker Close Market Cap P/E (ttm) F P/E 52W Range EPS (ttm) Dividend Ex-Dividend Date OKE $58.95 12.16B 43.17 29.74 39.39-59.51 1.37 1.52 October 31, 2013

Originally founded in 1906 as an intrastate natural gas pipeline business in Oklahoma, today ONEOK is one of the nation's premier energy companies involved in the natural gas and natural gas liquids businesses. Its business segments provide safe, reliable energy and services to their diverse customers. By following a strategy that blends the performance and profitability of all of the segments, ONEOK's balanced business mix enables it to deliver sustainable earnings growth for shareholders. ONEOK’s success is driven by employees who strive to better not only their company but also the communities in which they live.

Technical Analysis

Over the past week, the 200d

MA has gone up 0.5% while

the 50d MA has advanced

1.1%. It is currently 50%

above its YTD low.

Catalysts

Organic Growth Projects

Increasing demand for NGL’s

New entity ONE Gas

Next Earnings date:

February 24, 2014

News

Shares of OKE surged 2.47% on Friday and hit

a new 52 week high of $59.03. A total of 1.35

million shares were traded, which is above

the daily average volume of 1.25 million. OKE

has outperformed the S&P 500 for the past

three months.

Subsidiaries:

Oklahoma Natural Gas

Kansas Gas Service

Texas Gas Service




Sempra Energy (SRE)

Ticker Close Market Cap P/E (ttm) F P/E 52W Range EPS (ttm) Dividend Ex-Dividend Date SRE $89.49 21.55B 21.74 19.54 65.74-93.00 4.05 2.52 September 25, 2013

Sempra Energy SRE was founded in 1998 and is headquartered in San Diego, California. It serves one of the largest utility customer bases in the U.S., distributing natural gas and electricity to customers in Southern California. Its SoCalGas and San Diego Gas and Electric divisions distribute gas to more than 20 million customers. The firm's non-California affiliates own and operate merchant power plants, operate LNG facilities, and manage gas pipelines in the U.S. and Latin America, as well as gas and electric utilities.

Technical Analysis

SRE’s is trading 34% above its 52

week low. In the last 5 trading

sessions, the 50d MA has

climbed 0.3% while the 200d MA

has risen 0.2%.

Catalysts

Focus on renewable and alternative energy

Growth through emerging markets

Investment in Infrastructure

Next Earnings date:

February 24, 2014

News

Sempra is one of today’s biggest movers, down

1.6% to $87.92. Sempra has potential upside of

8.1% based on their current price.

SDG&E is issuing free appliance safety checks to

all their customers before winter arrives and is

highly recommending safety precautions to

customers before they dig.

Subsidiaries:

San Diego Gas & Electric

Southern California Gas

Co.

Sempra U.S. Gas &

Power

Sempra International

LNG




Wisconsin Energy (CNP)

Ticker Close Market Cap P/E (ttm) F P/E 52W Range EPS (ttm) Dividend Ex-Dividend Date WEC $42.20 9.44B 18.05 16.21 36.16-45.00 2.31 1.53 November 12, 2013

Wisconsin Energy Corporation, through its subsidiaries, generates and distributes electric energy, as well as distributes natural gas. The company operates in two segments, Utility Energy and NonUtility Energy. It generates electricity from coal, natural gas, wind, biomass, and hydro sources. The company provides electric utility services to customers in the mining, paper, foundry, food products, and machinery production industries, as well as to the large retail chains, municipally owned systems, rural cooperatives, and municipal joint action agencies; and gas utility services to the paper, food products, and fabricated metal products industries.

Technical Analysis

Over the last five market

days, the 200d MA has

remained constant while

the 50d MA has advanced

0.3%.

Catalysts

Stable EPS growth

Increasing dividend growth and payout

ratio

Infrastructure investment to maintain

the highest level of reliability

Renewable standards portfolio growth

Next Earnings date:

February 6, 2014

News

Today WEC crossed their pivot point

support at $41.70. Should the shares

continue to fall, the support pivots of

$41.51 and $40.99 will be of interest.

We Energies has received the 2013

Reliability One national award for superior

reliability of its electric system.

Subsidiaries:

We Energies

W.E. Power, LLC

WISPARK, LLC

Economy & Finance

Weekly Update- Utility Sector