News Release

Utility growth prospects: Quantifying long and short opportunities

EIR sheds light on renewable power adoption and utility valuations, identifying overvalued and undervalued players in the energy transition

byEnverus

CALGARY, Alberta (Jan. 30, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company, has released a report looking at state-level renewable power adoption and population growth to estimate utility-specific long-term growth rates. In the report, EIR calculates implied value and ranks utilities as overvalued or undervalued relative to their current market price.

“The substantial infrastructure investment needed for the energy transition will be advantageous for regulated utilities,” said Kevin Kang, associate at EIR. “Nevertheless, the distribution of growth opportunities will be uneven, with utilities in regions characterized by greater renewable energy adoption and rapidly expanding customer bases experiencing the most significant benefits.”

“There are some public utilities poised for above-average growth due to their exposure to North Carolina, South Carolina and Virginia, which are accelerating renewable development to hit targets and/or have growing populations,” said Kang.  

Key takeaways from the report:

  • Regulated utilities are poised to benefit from the significant investment in power generation and transmission required to support the energy transition. However, growth opportunities will not be equally distributed. Utilities in areas with higher renewables penetration and faster-growing customer bases will benefit the most.
  • Some utilities are undervalued with expected growth rates that exceed the implied growth rate priced into current valuations. If dividend growth expectations are updated to reflect long-term potential, share prices could appreciate by more than 60% for these companies.
  • Other utilities are overvalued based on expected long-term growth. Investors have focused on short-term growth prospects and have failed to account for weaker growth over the long term. Share prices could depreciate by almost 25% if dividend growth expectations revert to their long-term potential.

You must be an Enverus Intelligence® subscriber to access this report.

EIR’s analysis pulls from a variety of Enverus products, including Power & Renewable solutions within the Enverus PRISM® platform.

Members of the media should contact Jon Haubert to schedule an interview with one of Enverus’ expert analysts.

About Enverus Intelligence Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.

Media Contact: Jon Haubert | 303.396.5996
View all press releases at Enverus.com/newsroom

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