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Charles Fishman (Morningstar, D)

May 16, 2018|

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This segment of the financial exchanges brought to you in part by Dhabi is northern Italian state cast obvious as nine locations throughout the East Coast with five locations in the Boston area including. Braintree at the South Shore plaza and also opening its first West Coast location in Irvine California this summer. It obvious you can enjoy seasonal cocktails handmade pastas perfectly cooked Brandt beef stakes as well as fresh seafood salads expertly prepared. Using the finest ingredients of w.s it's all about the guest. Johnny's on the line now is Charles Fishman for Morningstar. You're talking about dominion energy Charles thanks for joining us. Yeah thanks a lot shark yours you guys always let me talk about some boring utility though it or something incredible when you look like dog walking and and especially baked goods and all lose that early on there. Well we can change we'll get back on the talk baked goods next week but let's let's talk dominion energy here utilities as a whole have taken a aid greeting this year was dominion down about 20%. Do you view that as a good buying opportunity on this one. You bet and you know we're looking at something that's Northrop 5% yield now well basically what a conservative utility. They're still caught their USEC caught the downdraft with a lot of other utilities and some. Unusual rulings out of the Federal Energy Regulatory Commission that we think it was a pretty good chance being reversed but even if it doesn't. You know the dividend is intact and solid. This company has about to burst of five cash flows coming in that you you can pretty much count on that imminent. Looking at Doug dominion where they largely operate out of and where is is there any growth that's happening with them from may customer base perspective. A customer base on the U totally excited as low. What you know I mean you typically see you. One to 2% customer growth and then there on the continent because they're based in Richmond Virginia you most of their utility coverages were Kenya. But they're quote is coming in. And then they just went and operation just. What a month ago. The only LNG export facility on the East Coast called COLT point. And it sit and they got one year contracts was some great international energy companies that are investment grade. You know and and now other starting construction on a pipeline that are. Or about half of a prepare the main partner. Two other big utilities in their own selves from the Marcellus Shale in the North Carolina. Provide gas so utilities can. Retired coal plants and build their plans which remote wonder. Looking at a company like this obviously part of the reason why they struggled this year as the rising rate environment that we are in. How much of an impact does that have going forward I mean at a certain point if you can get you know like a 6% yield on this thing looks pretty attractive even if rates keep going up. Well that's correct and I remember when you compare to like the ten year. We understand your certainly safer I mean ten years right now around 3% but it's it's obviously a risk free investment but with. I heard utility. Yield. It's growing. We are expecting a 10% increase in the dividend next your that they. Basically. Given us some guidance effort and I suspect that it'll go in line earnings growth probably around our that'll probably less than expected. Very good Charles thanks for the time Dave we really appreciate it. Or Charles Fishman from the morning's start talking about dominion energy the ticker on that when if you wanna look him up on your own is deep.