Daily Brief Utilities: Altus Power , Calpine Corp, Cms Energy Corp, DTE Energy Company, EDP – Energias de Portugal SA, Oge Energy Corp, Pattern Energy Group, Xcel Energy Inc and more

• Altus Power is a leading independent developer, owner, and operator of commercial-scale solar generation and energy storage assets in the U.S., capitalizing on the accelerating corporate and public sector demand for clean energy.
• The company exhibits a strong growth trajectory, evidenced by a 3-year revenue CAGR of nearly 40%. However, this growth is capital-intensive, resulting in consistently negative free cash flow and volatile net income.
• Strategic partnerships with Blackstone and CBRE provide significant competitive advantages, offering access to capital and a vast portfolio of potential customer sites. The company is currently undergoing a strategic review to maximize shareholder value, which could result in a change of ownership.

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• Calpine Corporation is the largest generator of electricity from natural gas and geothermal resources in the United States, with a fleet of 79 energy facilities representing over 27,000 megawatts of generation capacity.
• The company is positioned for a strategic combination with Constellation Energy, which entered into a definitive agreement to acquire Calpine in January 2025. This transaction will create the nation’s largest producer of clean and reliable energy.
• Calpine is strategically focused on capitalizing on the growing demand for reliable power, driven by the expansion of data centers and broader electrification, while also investing in decarbonization technologies.

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• CMS Energy represents a classic regulated utility investment, offering stable, predictable cash flows from its electric and natural gas operations in Michigan, which serve as the foundation for consistent dividend growth.
• Significant long-term growth is driven by a dual-engine strategy: substantial capital investment in grid modernization and a leading role in Michigan’s clean energy transition, targeting 100% clean energy by 2040.
• Emerging opportunities in serving large-scale, energy-intensive data centers provide a potential upside to load growth forecasts, complementing the company’s established strategic initiatives.

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• DTE Energy is well-positioned to deliver stable, regulated earnings growth, driven by a substantial multi-year capital investment plan focused on grid modernization and clean energy transition.
• The company’s constructive relationship with regulators and its large, stable customer base in Michigan provide a predictable operating environment, underpinning its long-term 6-8% EPS growth target.
• While the company carries a significant debt load and faces risks associated with the phase-out of certain tax credits, its consistent dividend history and strategic investments in growth areas like data center power supply offer a balanced risk-reward profile for investors.

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• EDP is a major European utility aggressively expanding its renewable energy portfolio, positioning itself to capitalize on the global energy transition. Its strategic plan focuses on significant investments in wind and solar, particularly in North America and Europe.
• The company’s financial strategy relies on a combination of operating cash flow, significant asset rotation, and manageable debt to fund its ambitious growth. While this supports expansion, it also exposes the company to execution and market risks.
• A balanced risk profile is supported by a large base of regulated and long-term contracted assets, providing a degree of earnings stability. However, the company faces headwinds from volatile wholesale power prices, rising interest rates, and regulatory risks in its key markets.

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• OGE Energy Corp. reported a strong third-quarter performance with consolidated earnings of $1.14 per share.
• The electric company, part of OGE Energy, contributed $1.20 per share, while the holding company incurred a loss of $0.06 per share.
• The company’s results were driven by operational excellence, customer focus, and positive regulatory outcomes.

• Privatization by CPPIB: Pattern Energy Group (PEGI) was an independent power producer that was taken private in a transaction that closed in March 2020. The Canada Pension Plan Investment Board (CPPIB) acquired the company for $26.75 per share in an all-cash deal, valuing the enterprise at approximately $6.1 billion, including debt. Consequently, PEGI shares are no longer traded on public exchanges.
• Integrated Renewable Energy Platform: Concurrent with the acquisition, CPPIB and Riverstone Holdings combined Pattern Energy’s operating assets with Pattern Development’s project pipeline. This created a vertically integrated renewable energy company, positioning the new private entity to capture growth from both developing and operating wind, solar, and transmission projects across North America and Japan.
• Strong Growth Trajectory Under Private Ownership: Since the 2020 privatization, Pattern Energy has continued to expand its portfolio, developing 5.6 GW of new projects. The company is advancing a significant development pipeline of over 25 GW, including the landmark SunZia Wind and Transmission project in the U.S. New institutional investors, APG and Australian Retirement Trust, have recently joined CPPIB, signaling strong backing for its future growth.

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• Xcel Energy’s third quarter 2025 earnings results and accompanying strategic outlook offer a mixed picture with both positive developments and challenges.
• On the financial front, Xcel Energy reported a GAAP earnings per share of $0.88, with ongoing earnings of $1.24 per share after excluding a nonrecurring charge of $0.36 per share related to a settlement for the Marshall wildfire.
• This nuanced adjustment in financial reporting is crucial for investors to comprehend the real operational performance of the company.