Cleco CorporationCNL

Morningstar Rating

Stock Research and Analysis

by Ryan McLean

A favorable regulatory environment, combined with the recent doubling of its regulated rate base, sets Cleco apart from many of its peers. Although underlying growth has slowed lately, this Louisiana firm could see a significant uptick in earnings during Read more

Bulls Say

The Rodemacher 3 unit has nearly doubled the firm's regulated rate base.

A constructive regulatory environment, combined with a renewed focus on the firm's regulated utility, will contribute to stable earnings at Cleco.

Low debt gives Cleco a relatively strong financial position. Read more

Bears Say

Cleco is exposed to hurricanes and must seek regulatory approval for associated cost recovery.

Cleco's generation fleet is heavily weighted to fossil fuels, which could be a liability if carbon legislation passes.

The operating performance of Rodemacher is as yet unproven; should plant utilization rates fall short of expectations, earnings may suffer. Read more

Strategy

Cleco's focus will be on its regulated utility. The company will improve its fuel diversity by adding more low-cost, solid-fuel generating facilities to its regulated rate base. This will also help the Read more

Management

Michael Madison, who has more than 35 years of industry experience, became CEO of Cleco in 2005 after serving as COO. Madison's total compensation is modest by industry standards. Cleco scores well in terms of shareholder stewardship. We commend the Read more

Profile

Cleco is a holding company for Cleco Power and Midstream. Cleco Power is a regulated electric utility that produces and distributes electricity to 276,000 customers in central Read more

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