PHOENIX - Centuri Holdings, Inc. (NYSE: CTRI), a strategic utility infrastructure services company, announced that Bill Fehrman will step down as President and CEO to assume the CEO position at American Electric Power (Nasdaq: NASDAQ:AEP). Fehrman will continue his leadership role at Centuri until July 31, 2024, and remain on Centuri's Board of Directors during the transition to a new permanent CEO.
Centuri’s Board of Directors has appointed Paul Caudill, who has held leadership roles within the energy sector, including CEO of NV Energy and a senior advisor to Centuri, as the interim President and CEO. Karen Haller, Chair of Centuri's Board, expressed confidence in the company's strategic direction and its position for growth, which she attributed to the team's focus on safety and recurring maintenance work for established customers.
Haller praised Caudill's extensive experience in the energy and utility industry and his alignment with Fehrman's focus on operational excellence and disciplined growth. Caudill, with over forty years in the power and energy industry, is expected to continue driving the company's long-term growth strategy.
Fehrman, reflecting on his tenure, expressed pride in the strategy he helped implement at Centuri and confidence in the company's future execution. He also acknowledged Caudill's partnership and expertise as vital to the development of Centuri's strategy.
Caudill, in his statement, reiterated the company's success factors, including operational excellence and strong customer relationships in the regulated utilities industry. He looks forward to working with the Board and management team to build on the company's history of growth.
Centuri has initiated the process to identify a permanent CEO. The company, which partners with regulated utilities in the United States and Canada, aims to build and maintain the energy network that powers millions of homes and businesses.
In other recent news, American Electric Power (AEP) has seen several significant developments. The utility company announced the appointment of William J. "Bill" Fehrman as its new president and CEO. Fehrman, an experienced figure in the utility sector, will succeed Benjamin G.S. Fowke III, who will remain on the AEP Board as a senior advisor.
In financial news, AEP issued $1 billion in junior subordinated debentures, consisting of two series, $400 million of 7.050% Series A and $600 million of 6.950% Series B, both due in 2054. The transaction was conducted through an underwriting agreement with a syndicate led by several major financial institutions.
AEP also sold its Distribution Resources business to Basalt Infrastructure Partners, a move expected to yield approximately $315 million after taxes and fees. Simultaneously, the company decided to retain its Retail business, AEP Energy, citing its alignment with the company's strategic vision and potential for growth.
Analyst activity surrounding AEP has been mixed. Ladenburg Thalmann upgraded AEP's stock from Sell to Neutral, while UBS Securities downgraded it from Neutral to Sell. BMO Capital Markets projects AEP's earnings per share (EPS) to be $5.59 for 2024, $5.97 for 2025, and $6.35 for 2026, aligning with AEP's reaffirmed 2024 operating earnings guidance of $5.53 to $5.73 per share. These are some of the recent developments in AEP's business landscape.
InvestingPro Insights
As American Electric Power (AEP) welcomes Bill Fehrman as its new CEO, it's worth noting some key financial metrics and insights that may be of interest to investors following this leadership change. According to recent data from InvestingPro, AEP has a market capitalization of $46.0 billion and a P/E ratio that stands at 16.13, indicating a potentially attractive valuation when paired with near-term earnings growth. The company's P/E ratio has slightly adjusted to 16.0 over the last twelve months as of Q1 2024.
InvestingPro Tips highlight that AEP operates with a significant debt burden, yet it has managed to raise its dividend for 14 consecutive years, showcasing a commitment to shareholder returns. Furthermore, the company has maintained dividend payments for an impressive 54 consecutive years, with a current dividend yield of 4.05% as of mid-2024, reflecting a dividend growth of 6.02% over the last twelve months. These figures underscore AEP's stability and reliability as a dividend-paying stock.
For investors interested in further analysis and additional InvestingPro Tips, such as the three analysts who have revised their earnings upwards for the upcoming period, they can explore more at https://www.investing.com/pro/AEP. Moreover, there are 8 additional InvestingPro Tips available for AEP, which can provide deeper insights into the company's financial health and future prospects.
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