CHARLOTTE, N.C. - Following the extensive damage caused by Hurricane Helene, Duke Energy (NYSE:DUK) has successfully restored electrical service to more than 2.16 million customers in the Carolinas as of Friday afternoon. Despite these efforts, approximately 334,000 customers remain without power, with an equal split between Upstate South Carolina and the mountainous regions of North Carolina.
Since Thursday afternoon, the utility has reconnected about 85,000 outages. Restoration efforts are prioritized for those who can receive power, and individual restoration times will be communicated as they become available. However, some customers may not have power restored due to the complete loss or destruction of their properties.
Duke Energy is employing helicopters to transport power poles to the most affected areas and is using drones to inspect for additional damage that could impede restoration work. The company is also focusing on rebuilding the main electrical infrastructure in North Carolina, particularly in counties hit hardest by the hurricane's high winds and flooding.
In Upstate South Carolina, Duke Energy is concentrating on restoring power to critical facilities such as schools, medical institutions, and water and sewer systems. The company aims to restore service to nearly all customers in this region by Sunday.
Jason Hollifield, Duke Energy's storm director for the Carolinas, highlighted the community's resilience and assured that the company would support them throughout the recovery process.
Customers with damaged properties will need to have repairs made by an electrician and obtain local building inspection approval before service can be reestablished. Duke Energy is keeping customers informed through various communication channels and has set up a website for outage updates.
Duke Energy (NYSE: DUK), headquartered in Charlotte, is a major energy holding company in the United States. The company is actively transitioning to cleaner energy sources while aiming for net-zero methane and carbon emissions by 2030 and 2050, respectively.
This news is based on a press release statement.
In other recent news, Duke Energy has been the subject of various significant developments. BMO Capital has maintained its Outperform rating on Duke Energy, adjusting its third-quarter earnings estimate to $1.68, a decrease from the previous year's $1.94. This adjustment is mainly attributed to timing issues related to agility initiatives, favorable weather conditions, and costs associated with Hurricane Debby. For the fourth quarter of 2024, BMO Capital revised its earnings estimate for Duke Energy upward to $1.73 from $1.51, reflecting expected normalized weather conditions and other contributing factors.
Additionally, Duke Energy secured a $57 million grant from the U.S. Department of Energy for the reconstruction of a key power line in North Carolina, expected to create around 550 jobs and improve grid reliability. Moreover, the company successfully issued $1 billion in junior subordinated debentures as part of its capital management strategy.
Edward Jones reiterated its Buy rating on Duke Energy, highlighting the company's above-average dividend yield and substantial capital investment plans. Meanwhile, BMO Capital Markets raised the price target for Duke Energy from $120 to $126, following a recent settlement agreement involving Piedmont Natural Gas, a subsidiary of Duke Energy. Despite these positive strides, Mizuho Securities maintained a neutral stance due to concerns over industrial load forecasts and potential policy changes.
InvestingPro Insights
As Duke Energy (NYSE: DUK) continues its efforts to restore power in the aftermath of Hurricane Helene, investors may find valuable insights from recent financial data and expert analysis. According to InvestingPro, Duke Energy has demonstrated strong financial performance and stability in recent months.
The company's market capitalization stands at $88.36 billion, reflecting its significant presence in the electric utilities industry. Duke Energy's revenue for the last twelve months as of Q2 2024 reached $29.59 billion, with a notable revenue growth of 9.03% in the most recent quarter. This growth suggests that the company's operations remain robust despite challenges such as natural disasters.
InvestingPro Tips highlight Duke Energy's commitment to shareholder value. The company has maintained dividend payments for 54 consecutive years and has raised its dividend for 16 consecutive years. This consistency in dividend policy may be particularly appealing to income-focused investors during uncertain economic times.
Moreover, Duke Energy's stock has shown strong performance, with a 40.19% total return over the past year. This impressive gain, coupled with the fact that the stock is trading near its 52-week high, indicates investor confidence in the company's ability to navigate challenges and capitalize on opportunities in the energy sector.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips on Duke Energy, providing a comprehensive view of the company's financial health and market position.
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