What you need to know about Devon Energy’s Duke Energy stock stock update
Devon Energy is moving forward with its plans to build a $1.8 billion solar farm in the southwestern U.S., a move that could be one of the largest in the nation.
The utility has been working with solar manufacturer SunEdison to design a solar array that would power up to 1,400 homes in southeastern Kentucky, including more than 50,000 households.
SunEdision has already secured financing for a $300 million loan to build the plant.
The solar array would generate about 5 megawatts, enough to power up a 500-square-foot home.
The company has also signed a contract with the U.K. government to build and operate the facility.
The news comes as Duke Energy’s stock continues to rise.
Last week, the utility raised its target price on the stock from $25 to $30 a share, which is currently trading at $31.24.
The stock has risen from its $16 price target in April, according to data from Thomson Reuters.
In the fourth quarter, Duke Energy reported net income of $932 million, up from $724 million in the same quarter last year.
However, the stock has lost more than 80% of its value since the third quarter.
“The utility is now well on its way to achieving the first phase of its project in Kentucky, but the company’s capital needs remain extremely large and the investment needed to do so is far from complete,” according to the company.
The state’s legislature passed legislation last year that required Duke Energy to raise its $1 billion capital budget by more than $3 billion by 2020, which it has not yet done.
“Duke Energy has already achieved the first stage of its solar investment and has the necessary equipment in place to meet the needs of its customer base,” the company said in a statement.
“We continue to monitor progress and are confident that we will achieve the second stage of the project in the next several months.”
Duke Energy is expected to complete the project by 2020 and is currently looking at a second solar farm that will be larger than the first one, according.
“While Duke Energy has the resources and technology to deliver its project, its decision to delay the second phase until 2020 is not appropriate and does not align with the company and its customers’ investment in the project,” the utility said in its statement.
Duke Energy said it will hold its second round of meetings with the Kentucky legislature next month.
Duke has been planning the second solar project since 2016.
“This project will provide our customers with a cost-effective and secure solar energy solution that meets the unique needs of their communities, and will provide economic benefits to the state, as well as to the U!
Kentuckians who live in the area,” the state said in an announcement about the project.
Duke’s solar project in southeastern Tennessee is scheduled to start operations in 2022.