Financial Wire

Exelon Seen Offsetting PECO Rate Case Withdrawal Impact Over Time, RBC Says

-- Exelon (EXC) will eventually be able to offset the negative impact on revenue of the withdrawal of rate cases by its Pennsylvania-based energy utility subsidiary PECO, RBC Capital Markets said.

The subsidiary withdrew its electric and gas rate cases with the Pennsylvania Public Utility Commission, which were requests for a $429 million electric revenue increase and an $81 million gas increase, the brokerage said in a Friday note.

They estimate that PECO will miss about $130 million to $200 million in incremental revenue, translating to a negative impact of about $0.09 to $0.14 on earnings per share in 2027.

Exelon will be able to mitigate the drag through new rate hike requests, managing operations and maintenance costs, and an accelerated capital plan company-wide.

The investment firm noted that Exelon maintained its 2026 adjusted EPS guidance of $2.81 to $2.91 and expressed confidence in its ability to achieve the high end of its annual EPS growth target of 5% to 7% through 2029.

BC maintained its sector-perform rating on the stock and lowered its price target to $48 from $51.

Price: $47.18, Change: $+0.15, Percent Change: +0.33%

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Wingstop Likely to Miss First-Quarter Same-Store Sales Views Amid Macro Pressures, RBC Says

Wingstop's (WING) fiscal first-quarter same-store sales are expected to miss Wall Street's estimates amid a tough macro environment, prompting the company to lower its full-year outlook for the metric, RBC Capital Markets said in a note e-mailed Monday.The brokerage projects the restaurant chain's first-quarter same-store sales to drop 6.8%, while the Street is looking for a 5.2% decline, according to RBC."We model (a first-quarter same-store sales) miss as macro pressures continued to weigh on (Wingstop's) core consumer and weather was likely (more than a 100-basis-point) headwind in the quarter," RBC analyst Logan Reich said in a note to clients.The company is scheduled to report results April 29."Given elevated macro uncertainty and (Wingstop) over-indexing to lower-income consumers, we anticipate a modest guide down from the (company's) flat (to low-single-digit full-year same-store sales) outlook," Reich said. "However, given best-in-class franchisee returns on capital, we don't believe there's elevated potential for a unit growth guide down, despite recently challenged (same-store sales) growth.RBC reduced its 2026 and 2027 same-store sales projections for Wingstop."(Full-year) comps were always expected to be back-half weighted, but a potential (high-single-digit) decline in (the first quarter) on an easier compare implies material contribution from the loyalty program launch at the end of (the second quarter) and faster prep times translating to faster all-in delivery speed are required," the analyst said.The brokerage lowered its price target on the Wingstop stock to $275 from $340, with an outperform rating.The company's shares were down 1.2% in Monday afternoon trade, bringing its year-to-date losses to 19%.Wingstop's customer base leans heavily toward lower-income demographics that are more sensitive to increases in gas prices, making the brand more vulnerable to macroeconomic shifts, according to the note.Energy prices have surged following the US-Israel war with Iran that started at the end of February amid the closure of the Strait of Hormuz, the world's most important chokepoint for crude flows.Price: $192.79, Change: $-3.56, Percent Change: -1.81%

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CMS Energy Keeps Quarterly Dividend at $0.57 a Share, Payable May 29 to Shareholders of Record as of May 8

Price: $78.00, Change: $+0.25, Percent Change: +0.32%

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Jadestone Secures Gas Sales Agreement for Vietnam Fields, Eyes 2028 Production

Jadestone Energy said Monday that it signed a gas sales deal for its Vietnam fields, targeting output of 80 million standard cubic feet per day with production expected to begin in late 2028.The agreement covers gas supply from the Nam Du and U Minh discoveries offshore southwest Vietnam, the company said.The deal aligns with the development plan approved on March 18, 2026, with first production targeted in late 2028, it added.Under the deal, gas will be sold to PV Gas, a unit of state-owned Petrovietnam, under defined supply and pricing terms, Jadestone said.The contract sets a daily supply level of 80 MMscf/d, with flexibility up to 110% and a take-or-pay clause covering 90% of volumes, the company added.Pricing is linked to historical Vietnam gas import levels, with annual escalation built into the agreement, ensuring predictable revenue over time, Jadestone said.The fields hold about 32 million barrels of oil equivalent in proven and probable reserves, supporting long-term production potential, the company noted.Jadestone also sees upside from nearby prospects, estimating up to 1.5 trillion cubic feet of additional gas that could extend plateau output and enhance project value, the company said.Chief Executive Officer T. Mitch Little said the agreement marks a key milestone for Jadestone, enabling progress toward project execution, with a focus on contract awards, while supporting Vietnam's energy security, economic growth, and long-term emissions goals.