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Capital Power Closes $667 Million Share Offering to Fund U.S. Acquisitions

Story Highlights

The latest update is out from Capital Power ( (TSE:CPX) ).

Capital Power Corporation has successfully closed a $667 million offering of common shares, which includes both a public offering and a private placement. The proceeds from this offering will be used to fund the acquisition of Hummel Station, LLC and Rolling Hills Generating, L.L.C., two significant natural gas facilities in the United States. This acquisition is expected to enhance Capital Power’s operational capacity and market positioning in the energy sector, although the completion of the acquisition is subject to regulatory approvals.

Spark’s Take on TSE:CPX Stock

According to Spark, TipRanks’ AI Analyst, TSE:CPX is a Outperform.

Capital Power scores a 75, driven by strong financial performance, strategic growth initiatives, and attractive valuation. The company benefits from robust revenue growth and profitability improvements, though the high leverage introduces risk. Technical indicators are mixed, indicating cautious market sentiment. The strategic acquisitions and high dividend yield present potential opportunities for investors, positioning the company well for future growth despite sector challenges.

To see Spark’s full report on TSE:CPX stock, click here.

More about Capital Power

Capital Power Corporation is a company operating in the energy sector, primarily focusing on the generation of electricity. The company is involved in the development, acquisition, and operation of power generation facilities across North America, with a particular emphasis on natural gas and renewable energy sources.

YTD Price Performance: -25.64%

Average Trading Volume: 1,028,657

Technical Sentiment Signal: Hold

Current Market Cap: C$6.51B

For a thorough assessment of CPX stock, go to TipRanks’ Stock Analysis page.

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