Warmer than expected weather has hit utility earnings, and key regulatory approvals remain for the deal with Duke to close, in spite of progress.
Progress Energy investors should remain cautious. The value of the all-stock deal increased with Duke Energy's over 20% stock gain in 2011.
Amid falling earnings for both North Carolina-based utilities, management commentary and recent media reports still signal confidence that the merger will close ahead of a July 2012 termination date, with state regulatory approvals imminent. However, an approval by the Federal Energy Regulatory Commission, a roadblock that pushed the deal closure into 2012, remains a key risk, and for Progress Energy, there's still prospect its shares could fall if the utilities mega deal is cut off by the federal government.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV