GXP

Great Plains Energy, Inc.

Energy, Event Driven/Special Sit, Utilities


Presented:03/14/2018
Price:$30.27
Cap:$6.53B
Current Price:$31.99
Cap:$6.90B

Presented

Date03/14/2018
Price$30.27
Market Cap$6.53B
Ent Value$9.97B
P/E RatioN/A
Book Value$23.02
Div Yield3.63%
Shares O/S215.66M
Ave Daily Vol1,446,555
Short Int3.04%

Current

Price$31.99
Market Cap$6.90B
Great Plains Energy, Inc. is a holding company, which provides electricity. The company operates through its subsidiaries Kansas City Power & Light Co. and KCP&L Greater Missouri Operations Co., which provides electricity to customers primarily in the states of Missouri and Kansas. Great Plains Energy was founded in 2001 and is headquartered in Kansas, MO.

Publicly traded companies mentioned herein: Great Plains Energy Inc (GXP), Westar Energy Inc (WR)

Highlights

Great Plains Energy (owner of KCP&L; GXP) is set to combine with Westar Energy (WR) to become a leading utility in Kansas and Missouri. The 100% stock-for-stock deal had to be recut following regulatory scrutiny in early 2017. The Kansas Commission blocked the deal, and with the benefit of hindsight the presenter said, “It’s the best thing that could have happened”. The presenter is long GXP at this time, but said a position in WR is fine as well, as the stocks are “trading on top of one another” due to the high probability of the deal closing in Q2 2018. With 60MM shares set to be bought back, the 6% - 8% EPS CAGR appears to be “easily achievable”, and the risk/reward favors bulls with WR trading at $49 and GXP at ~$30.

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