Evergy (EVRG) Evolves From Great Plains-Westar Energy Merger
Zacks Investment Research | Jun 07, 2018 09:07PM ET
The successful stock-for-stock merger between Westar Energy Inc and Great Plains Energy Incorporated has formed Evergy Inc. (NYSE:EVRG) , with equity value of $15 billion. The new entity commenced trade in the exchange from Jun 5, 2018, and became a member of the elite S&P 500 group on the same day by replacing Navient Corporation (NASDAQ:NAVI) .
Evergy will serve more than 1.6 million utility customers in Kansas and Missouri. Nearly 50% of the electricity supplied to its customers will come from clean sources. The company will operate through its subsidiaries — Westar Energy and Kansas City Power and Light Company.
Benefits of Merger to Customers
Customers of Westar Energy and Great Plains Energy will enjoy the benefits of customer bill credits over the first five years, post the closure of the merger. Customers in Missouri will receive $29-million bill credit and in Kansas, they will get bill credit worth $75 million.
Benefits for Shareholders
Evergy is planning a 60-million share repurchase of its common stock for the next two years, which is likely to stabilize the capital structure. Shareholders will benefit from solid returns and attractive dividend growth.
Focus on Renewables
The new utility will focus on renewable energy sources to meet household and businesses requirements. The company, which will be among the largest wind power operators in the United States, plans to add more renewable sources in its generation fleet in the long run.
Zacks Rank
Evergy carries a Zacks Rank #3(Hold). You can see Zacks Investment Research
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