FirstEnergy plummeted as much as 45% over the past two days after it was tied to an investigation that revealed a $60 million bribery scheme and led to the arrest of Ohio House Speaker Larry Householder.
Full Answer
Should FirstEnergy have hiked its dividend?
The initial FirstEnergy news release was about preparing customers for summer heat, not particularly unusual for a utility. The second was about the company maintaining the dividend at its current level (not bad news, though a dividend hike would have been better).
Is FirstEnergy a good investment?
Analyst Report: FirstEnergy Corp. FirstEnergy is one of the largest investor-owned utilities in the United States with 10 regulated distribution companies across six mid-Atlantic and Midwestern states. FirstEnergy also owns and operates one of the nation's largest electric transmission systems with 24,000 miles of lines.
Is FirstEnergy Corporation dealing with a serious problem?
But it is very clear that FirstEnergy is dealing with a potentially serious and lengthy problem. Risk-averse investors might want to stay on the sidelines until there's more clarity. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service.
What happened to the oil market?
That sell-off carried over into the oil market, with the U.S. oil benchmark, WTI, falling more than 7%, crossing below the $30-a-barrel threshold. That market wash-out sent most stocks tumbling on the day, with several energy stocks plunging more than 10%.
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Will FirstEnergy stock go up?
FirstEnergy Corp (NYSE:FE) The 16 analysts offering 12-month price forecasts for FirstEnergy Corp have a median target of 46.50, with a high estimate of 51.00 and a low estimate of 40.00. The median estimate represents a +18.28% increase from the last price of 39.32.
What happened to First Energy Corp?
Bankruptcy of FirstEnergy Solutions The Company filed its eighth amended bankruptcy plan on October 14, 2019. In 2020, it emerged from bankruptcy, becoming Energy Harbor Corp.
Should I sell FirstEnergy stock?
8 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for FirstEnergy in the last twelve months. There are currently 4 hold ratings and 4 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "moderate buy" FirstEnergy stock.
Is Ohio Edison and FirstEnergy the same company?
was formed in 1997 through the merger of Ohio Edison Company and Centerior Energy Corporation. Through this merger, FirstEnergy became the holding company for Ohio Edison and its Pennsylvania Power Company subsidiary, as well as The Cleveland Electric Illuminating Company and The Toledo Edison Company.
What is the FirstEnergy scandal?
The Ohio nuclear bribery scandal (2020) is a political scandal in Ohio involving allegations that electric utility company FirstEnergy paid roughly $60 million to Generation Now, a 501(c)(4) organization purportedly controlled by Speaker of the Ohio House of Representatives Larry Householder, in exchange for passing a ...
Is FirstEnergy Now Energy Harbor?
Still, FirstEnergy and FirstEnergy Solutions, which is now called Energy Harbor, have not provided a full disclosure of how much money it pumped into Ohio politics via dark money groups. DeWine beat Cordray in November 2018. Householder won the speaker's post in January 2019.
Is FirstEnergy a good company?
Is FirstEnergy a good company to work for? FirstEnergy has an overall rating of 3.8 out of 5, based on over 455 reviews left anonymously by employees. 68% of employees would recommend working at FirstEnergy to a friend and 59% have a positive outlook for the business.
Is Fe a good buy now?
Out of 7 analysts, 2 (28.57%) are recommending FE as a Strong Buy, 2 (28.57%) are recommending FE as a Buy, 3 (42.86%) are recommending FE as a Hold, 0 (0%) are recommending FE as a Sell, and 0 (0%) are recommending FE as a Strong Sell.
Who bought FirstEnergy?
FirstEnergy entered into an agreement to issue $1 billion in common stock to Blackstone Infrastructure Partners, Blackstone's (NYSE: BX) dedicated-infrastructure group, at a price of $39.08 per share.
Why is my Ohio Edison bill so high?
Siburkis told 21 News that the reason for these drastic increases was FirstEnergy resuming indoor meter readings starting in August. At the start of the COVID-19 pandemic in March of 2020, FirstEnergy had suspended all indoor meter readings for the safety of its employees, as well as the general public.
Is Potomac Edison part of FirstEnergy?
While FirstEnergy does not directly serve electric distribution customers in Virginia, it owns and operates the electric transmission system in the region previously served by its affiliate, The Potomac Edison Company (a former subsidiary of Allegheny Power).
What happened
Shares of electric utility FirstEnergy ( FE -0.34% ) fell a dramatic 17.5% at the open of trading on Wednesday. The company put out three news releases on Tuesday. But the shortest one (amounting to a couple of sentences), released after the market had closed for the day, was the reason for the sharp price drop today.
So what
The initial FirstEnergy news release was about preparing customers for summer heat, not particularly unusual for a utility. The second was about the company maintaining the dividend at its current level (not bad news, though a dividend hike would have been better).
Now what
Shareholders need to revisit their FirstEnergy positions. The actual risks here are uncertain at this point. But it is very clear that FirstEnergy is dealing with a potentially serious and lengthy problem. Risk-averse investors might want to stay on the sidelines until there's more clarity.
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How many MW does FirstEnergy own?
The company owns 13,162 MW of unregulated generation. That spin-off company became FirstEnergy Solutions, which filed for bankruptcy on March 31, 2018. FirstEnergy has claimed that it had nothing to do with the controversy surrounding HB 6 since those generating units were no longer owned by FirstEnergy.
When did Energy Harbor go bankrupt?
Although Energy Harbor (the new name for FirstEnergy Solutions) announced that it had emerged from bankruptcy in February 2020, groups have raised questions about the relationship between Energy Harbor and FirstEnergy.
How much money did FirstEnergy spend on the Ohio nuclear power plant?
Of the $170 million per year brought in from the new surcharge, $150 million of that would go FirstEnergy Solutions to bail out its two Ohio nuclear power plants – Davis-Besse near Toledo and Perry northeast of Cleveland.
When will Ohio start charging electric surcharges?
The bill, signed by Gov. Mike DeWine, authorized a surcharge on the bills of all of Ohio’s electricity customers from 2021 to 2027. All Ohio electricity customers -- residential, commercial, and industrial – would be liable for the surcharge even if they weren’t customers of FirstEnergy.
Why did Oneok cut its spending?
ONEOK already reduced its 2020 spending plan because customers won't need some of its new expansion projects as soon as initially expected.
Why is the global economy grinding to a halt?
The global economy appears to be grinding to a halt as governments limit travel to slow the spread of the COVID-19 outbreak. It's unclear how much of an impact this will have on oil demand at a time when several nations are opening the floodgates of supply.
Is oil falling?
Crude oil prices continue to fall amid shocks to both demand and supply . Not only has the COVID-19 outbreak affected worldwide travel, but the collapse of OPEC's market support agreement also has several nations pledging to flood the market with oil. Because of that, analysts believe that oil could have much further to fall.
JCP&L Welcomes Amy Overman as New External Affairs Consultant
Jersey Central Power and Light (JCP&L), a subsidiary of FirstEnergy Corp. (NYSE: FE), has named Amy Overman to the role of external affairs consultant to serve as a liaison with elected officials and support local community involvement activities.
Mon Power Completes Improvements to Enhance Service Reliability
Mon Power, a subsidiary of FirstEnergy Corp. (NYSE: FE), has completed several improvements to its distribution system that are designed to reduce service interruptions for 2,883 customers.
FirstEnergy Receives Industry Recognition for Outage Restoration Efforts
For the 16th consecutive year, FirstEnergy Corp. (NYSE: FE) has earned recognition for its emergency response efforts from the Edison Electric Institute (EEI), a leading electric industry organization.
