utility report card

Conrad’s Utility Investor Utility Report CardSecurity(Exchange: Ticker)

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AES Corp(NYSE: AES)

Buy<28 24.83 2.55 -8.05 8.25 0.16 41.6 B 4/28/2022 5/13/2022 5 76.7 Utility, RenewableEnergy

Q1 2022 Return: 6.54%. Dividend increase in December. Next earnings expected May 6. Moody's puts Ba1 rating on review for upgrade, would be last rater to boost company toinvestment grade, increase is likely by end of summer. Quality Grade B (No Change) Breakdown: 1. Payout well covered by contracted and regulated cash flow, mid-single digit increaseslikely next several years. 2. Revenue Reliability has improved with streamlining of portfolio, shift to renewable generation. Has 85% plus of earnings from regulated utilities and under long-term contract sales, average remaining contract life 14 years. Currency risk also limited with 85% US dollar revenues, 6% Euro and rests substantially hedged. Management guidance is by2025 half of revenue will be earned in US, more than 65% overall from renewable energy as transformation continues. Company has also achieved degree of ring-fencing from riskierassets, such as units in Argentina. 3. Regulatory Relations steady in all jurisdictions, diversification limits political risk. No major outstanding issues currently in key jurisdictions. Plan to exitcoal generation by end-2025 reduces environmental and legal risk. 4. Near-Term Refinancing risk is non-issue with no parent level debt maturities until 2024, has $2.695 bil at all unitsthrough end of 2023. Has attained parent level investment grade rating metrics and ratings from S&P and Fitch, Moody's likely this year with company on credit watch for upgrade. Cost oflong-term debt capital has risen last three month but still low with June 2049 bonds yielding 3.97% (3.26% three months ago) to maturity. 5. Operating Efficiency is strong with EBITDAmargin expected at 34.8% of revenue this year, up from 28.3% in 2021. Shares still at good price at 15.6 times expected next 12 months earnings.

AGL Energy(OTC: AGLXY, ASX:AGL)

Buy<6 6.28 2.05 -10.4 42.73 0.12 100 C 2/23/2022 4/6/2022 -35.5 36.6 Int'l Electricity

Q1 2022 Return 36.66%. Semi-annual dividend declared in February was lower by -48.4% from year ago payment but appears to be at bottom for cycle. Next earnings expected August 12.Wins regulators' approval to build 500 megawatt capacity battery storage facility at site of closing coal power plant. Management continues to push ahead with de-merger plan afterrejecting low ball takeover offers from a unit of Brookfield, more bids still possible. Quality Grade C (No change). Breakdown: 1. Payout varies with earnings, reduced rate paid last yearshould be low for cycle. Both de-merged pieces of company should have distributions. 2. Long-term Revenue Reliability ensured by leading market position in fossil fuel power generation,renewable energy, distributed solar (rooftop)/storage and retail energy, which now includes communications offerings. Split of company appears to move ahead for close this summer. 3.Regulatory Relations remain challenging as state governments in Australia remain in conflict with pro-fossil fuel federal government and pandemic. Could get big lift if Labor Party takescontrol of government in spring elections but outcome looks highly uncertain. 4. Near-Term Refinancing Risk is a non-issue with roughly $214 mil maturing debt through end of 2023. Costof debt capital is manageable but bonds of Sept 2025 now yield 4.09% to maturity (2.42% three months ago). 5. Operating Efficiency helped by cost cutting and scale, EBITDA margin forFY2022 is expected to be just 12% due to low wholesale power prices. Speculative bet that sum of parts is worth more than the whole following mid calendar year division of company.

Algonquin Power &Utilities(NYSE: AQN, TSX:AQN)

Buy<16 15.86 4.3 1.15 13.08 0.17 60.4 A 3/30/2022 4/14/2022 10 44.7 Utility/RenewableEnergy

Q1 2022 Return: 8.59%. Dividend increase in May, likely to be mid-single digit percentage. Next earnings expected May 6. S&P has affirmed BBB credit rating following management'slocking in of financing for acquisiton of Kentucky Power unit of American Electric Power, expects to close the deal in "mid-2022." Quality Grade A (no change). Breakdown: 1. Dividendswell covered by cash flow and earnings, annual growth likely in mid-to-upper single digits going forward, following management's target 7-9% compound annual earnings growth ratethrough 2026. 2. Revenue Reliability ensured by regulated utilities (70%), long-term contracted renewable energy (30%). Residential is 80% of regulated electricity, gas distribution andwater revenue, renewable energy plants advantaged in markets and 81% revenue contracted to creditworthy counterparties like utilities and government entities (13 year weightedaverage). Close of New York water system acquisition adds more steady revenue. 3. Regulatory Relations good in US and Canada. Key challenge is in Kentucky winning approval to buyAEP's unit in state. 4. Near-Term Refinancing Risk is low with $1.391 bil ($2.01 bil three months ago) of maturing debt by the end of 2023. Cost of debt capital has risen but still relativelylow with Feb 2050 bonds yielding 4.34% (3.44% three months ago) to maturity. 5. Operating Efficiency strong, expected EBITDA margin for full-year 2022 is strong at 47.4%.



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Allete(NYSE: ALE)

Buy<70 64.94 4 -2.3 -3.12 0.65 80.5 B 2/14/2022 3/1/2022 3.9 40.4 RegulatedElec/Gas

Q1 2022 Return: 1.93%. Dividend raised 3.2%. Next earnings expected May 6. Quality Grade B (No Change). Breakdown: 1. Payout ratio is conservative, growth fueled by 5-7% annualearnings growth target. 2. Revenue Reliability backed by regulated utilities and contracted wind farm business. New Energy Equity LLC will add distributed solar energy developer tobusiness. Utility sales by volume just 8% residential, 5% municipal and 23% to other power suppliers. Industrial is 46%. Primary industrial customers are taconite miners (69%), followed by14% paper companies and 17% pipelines/other industrial. Power is supplied under contract for largest customers with earliest expiring at end of 2023, payment depends on volume. 3.Regulatory relations stable in Minnesota. 4. Near-Term Refinancing risk is low with $75 mil in maturing debt through the end of 2023. Cost of long-term debt capital has risen but still lowwith bonds due July 2042 yielding 4.24% to maturity (3.28% at start of year). 5. Operating Efficiency steady, EBITDA margin expected to rise to 34.9% this year, was 27.7% last year.

Alliant Energy Corp(NYSE: LNT)

Hold 64.82 2.64 23.14 7.05 0.43 62.5 A 1/28/2022 2/15/2022 6.3 56.9 RegulatedElec/Gas

Q1 2022 Return: 2.34%. Dividend raised 6.2%. Next earnings expected May 6. Quality Grade A (No Change). Breakdown: 1. Dividend payout ratio is conservative, backed by regulatedutilities and contracted renewable energy, 16% interest in transmission company ATC, 5-7% annual growth is target. 2. Revenue Reliability backed by stability of FERC-regulatedtransmission investment, regulated electric utilities (84% total sales) revenue is 40% residential, 32% industrial, 28% commercial. Natural gas utility is 57% residential, 33% commercial. 3.Regulatory Relations strong in Wisconsin and Iowa. 4. Near-Term Refinancing Risk is manageable with $650 mil ($950 mil three months ago) of maturing debt through 2023. Cost of long-term debt capital is still low with bonds of April 2050 yielding 3.83% to maturity but much higher than the 3.08% of three months ago. 5. Operating Efficiency solid with EBITDA marginexpected at 43.3% in 2022.

Altagas Ltd(TSX: ALA, OTC:ATGFF)

Buy<22 23.87 3.47 46.22 15.64 0.27 56.5 B 3/15/2022 3/31/2022 -15.2 53.4 Gas Utility/EnergyTransport

Q1 2022 Return: 4.66%. Dividend increase in December. Next earnings expected April 29. Quality Grade B (no change). Breakdown: 1. Dividend is backed by stable revenue from naturalgas utilities (55% EBITDA) and contracted midstream assets in western Canada. Management affirms guidance for 5-7% annual growth through 2026. 2. Revenue Reliability secured byregulated utilities (57% EBITDA) and highly contracted/hedged Canadian midstream (43%). Propane export terminal Ridley Island volumes look well hedged with expansion ongoing. WGLunit has revenue decoupling from demand in DC, Maryland, Virginia meaning steady cash flow regardless of weather. Petrogas optimizes midstream assets while adding little risk. 3.Regulatory Relations steady at utilities. Mountain Valley Pipeline 92% completed but path through court challenges difficult and company has now largely written down investment. 4. Near-Term Refinancing Risk is modest with $901 mil maturing debt by end of 2023. Cost of debt capital is still low with bonds of Sept 2049 yielding 3.87% to maturity but up from 3.18% threemonths ago. 5. Operating Efficiency improves with streamlining, strong results for NGL exports with EBITDA margin now expected at 20.3% for 2022.

Altice USA(NYSE: ATUS)

Hold 11.99 N/A -63.93 -25.57 2.04 0 C 6/7/2018 6/6/2018 N/A 103.4 Communications

Q1 2022 Return: -22.87%. No dividend. Next earnings expected April 28. Extends network sharing arranging with T-Mobile US in wireless, bright spot in tough revenue picture. QualityGrade to C from B on elevated debt costs in tough bond market. Breakdown: 1. No Payout. 2. Revenue Reliability has taken a hit as Verizon offerings in wireless broadband and fiberappear to cut sales. 3. Regulatory relations face no immediate challenge despite operating in tough New York environment. 4. Refinancing Risk is elevated by bond market volatility ascompany still has about $770 mil in maturing debt through end of 2023. Bonds of January 2030 yield to maturity skyrockets to 7.66%, was 5.44% six months ago. 5. Operating Efficiencyaffected by revenue losses with EBITDA margin expected to drop to 41.4% this year from 43.5% in 2021.

Ameren Corp(NYSE: AEE)




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Q1 2022 Return: 6.00%. Dividend raised 7.3%. Next earnings May 5. Sells 30-year green bonds at low coupon interest rate of 3.9%. Quality Grade A (No Change). Breakdown: 1. Currentpayout ratio is conservative, projected growth is mid-single digit percentages. 2. Revenue Reliability backed by revenue decoupling at Illinois electricity and natural gas distribution units.Missouri electric revenue is 47% residential, industrial just 9%, commercial 39% with rest street lighting and public authority and secure. Transmission revenue is FERC regulated. 3.Regulatory Relations strong in Illinois and Missouri, stable at FERC, should benefit from new Illinois energy law. 4. Near-Term Refinancing Risk is low with $547 mil in maturing debt by endof 2023. Cost of long-term debt capital is still low with March 2051 bonds yielding 3.61% to maturity though was 2.96% three months ago. 5. Operating Efficiency steady with EBITDAmargin expected to rise to 43.6% in 2022.

America Movil(NYSE: AMX, MM:AMXL)

Buy<20 21.91 1.79 57.18 7.03 0.2 54.2 B 11/4/2021 11/15/2021 6.6 59.5 IntlCommunications

Q1 2022 Return: 0.19%. Semi-annual dividend increased 120% from a year ago. Next earnings expected April 27. Buys back 37.1 mil shares, plans major buyback over next 12 months inaddition to more than doubling dividend. Quality Grade B (No Change). Breakdown: 1. Payout ratio is conservative and covered by secure cash flow, sizeable increase appears wellcovered by earnings and cash flow. 2. Revenue Reliability underscored by dominant market positions in several countries. Company manages exchange rate volatility from owningcompanies in several countries well. 3. Regulatory Relations appear stable in key markets including Mexico. 4. Near-Term Refinancing manageable with $3.75 bil ($7.153 bil six monthsago) in maturing debt through 2023. Still has low cost of long-term debt capital with April 2049 bonds yielding 4.05% to maturity but higher than the 3.32% three months ago. 5. OperatingEfficiency improves with network upgrades, cost cutting. EBITDA margin expected to rise to 37.7% in 2022 from 34.3 in 2021.

American ElectricPower(NYSE: AEP)

Buy<85 102.99 3.03 23.89 14.41 0.78 65.8 A 2/9/2022 3/10/2022 5.6 61.7 RegulatedElec/Gas

Q1 2022 Return: 13.02%. Dividend increase in October. Next earnings expected April 22. Quality Grade A (No Change). Breakdown: 1. Dividend is well covered by earnings, managementhas raised guidance growth rate to 6-7%. 2. Revenue Reliability is ensured by mix of contracted renewable energy, power transmission (FERC), regulated electric utilities with generationand regulated distribution utilities. Residential sales are 45% of integrated utility sales, commercial and industrial 26% each. Rate base growth in most states appears locked in and robust.Key driver of growth is paln to add 16 gigawatts of renewable energy generating capacity by 16 gigawatts by 2030. 3. Regulatory Relations are solid in all states in including Ohio,recovering extraordinary energy costs from last year's Winter Storm Uri. 4. Near-Term Refinancing Risk is reduced with $3.7 bil of maturing debt through end of 2023, was $5.004 bil threemonths ago. April 2050 bonds yield 3.86% to maturity, up from 3.22% three months ago but still relatively low. 5. Operating Efficiency steady with EBITDA margin expected at 39.2% for2022.

American StatesWater(NYSE: AWR)

Hold 89.49 1.63 18.08 -8.69 0.37 57.3 A 2/14/2022 3/1/2022 9.8 47.8 Regulated Water

Q1 2022 Return: -13.59%. Dividend increase in July. Next earnings expected May 3. Quality Rating A (no change). Breakdown: 1. Payout ratio is low and earnings support mid-to-uppersingle digit annual dividend growth. 2. Revenue Reliability backed by California multi-year rate deal, 90% of water revenue is from"residential and commercial customers," unregulatedbusiness is providing water and wastewater service under contract to 8 US military bases. Electric utility unit in California revenue is decoupled from power demand. 3. Regulatory Relationsstable with next cost of capital rate case to be filed in 2023 for 2025-27 period in California. Geographic diversification outside of state reduces risk as well. 4. Near-Term Refinancing Riskis manageable with $175 mil debt maturities through 2023. Cost of debt capital is low with April 2041 bonds yield 4.35% to maturity, up from 3.53% three months ago. 5. OperatingEfficiency solid with EBITDA margin 36.5% expected in 2022.



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American TowerCorp(NYSE: AMT)

Hold 266.41 2.1 12.68 -0.06 1.4 52.6 A 4/12/2022 4/29/2022 18.3 85.2 Communications

Q1 2022 Return: -14.11%. Dividend raised 0.7% sequentially, three more boosts likely this year though could be less than previous years. Next earnings expected April 29. Sells $3.1 bil in5-year (3.65% coupon) and 10-year (4.05% coupon) debt to pay off credit facility, financing data center purchase permanently. Company is bidding for ownership stake in DeutscheTelekom's towers business, facing tough competition. Quality Grade B (no change). Breakdown: 1. Payout ratio conservative, cash flow growth supports low single digit annual rate ofincrease with boosts coming quarterly. 2. Revenue Reliability underscored by contract model, high demand, creditworthy customers, offset partly by exposure to multiple developingmarkets with currency risks. 3. Regulatory Relations vary with international focus but risk to any one jurisiction is still low. 4. Near-Term Refinancing Risk is still elevated but manageablewith $8.05 bil in maturing debt through end of 2023. Cost of long-term debt capital is still relatively low with yield to maturity on bonds due June 2050 4.3% but up from 3.48% three monthsago). 5. Operating Efficiency is steady though developing market expansion adds risk, operating margin expected at 31.5% in 2022, reduced from previous estimates as company absorbsdata centers business.

American WaterWorks(NYSE: AWK)

Buy<150 169.87 1.42 13.64 -1.71 0.6 57 A 2/7/2022 3/1/2022 9.8 60.3 Regulated Water

Q1 2022 Return: -12.03%. Dividend increase in April. Next earnings expected May 3. Quality Grade A (No Change). Breakdown: 1. Payout ratio modest, mid-to-upper single digit growthrate supported by expansion and CAPEX. Management guides to 7-10% annual dividend growth through 2026 backed by 7-9% annual earnings growth. 2. Revenue Reliability high fromregulated water business and company continues to add new customers and rate base with system upgrades and acquisitions. Has sold unregulated Homeowner Services Group. 3.Regulator Relations strong with no major issues in any jurisdiction, states approving municipal system acquisitions. Geographic diversification also a plus. 4. Near-Term Refinancing Risklow with $340 mil ($772 mil six months ago) in debt maturities through end of 2023. Cost of debt capital is still relatively low with bonds due May 2050 yielding 3.89% to maturity, was 3.20%three months ago. 5. Operating Efficiency is steady, EBITDA margin expected at 53.1% in 2022.

APA Group(OTC: APAJF, ASX:APA)

Buy<8 7.98 4.82 9.75 8.52 0.29 53.1 A 12/30/2021 3/17/2022 5.4 77.1 Int'l EnergyTransport

Q1 2022 Return: 8.79%. Next semi-annual dividend increase in June. Quality Grade A (No Change). Breakdown: 1. Payout ratio is conservative and supports consistent low to mid-singledigit percentage annual growth. 2. Revenue Reliability underscored by company's dominance and diversification, long-term contracts (average remaining life 12 years) with solidcounterparties. Company direct exposure to low LNG prices limited. Management says "almost all" revenue is linked to either Australian or US inflation rates. Primary driver of growth isAUD1.4 bil "organic development pipeline." 3. Regulatory Relations no major issues as Australian government allows acquisitions and expansion, state policies on CO2 not an immediatethreat to gas usage and federal government is supportive. 4. Near-Term Refinancing Risk is low with $382 mil in maturing debt by end of 2023. Cost of debt capital is still relatively low withMarch 2035 bonds yielding 3.97% to maturity (was 3.16% three months ago). 5. Operating Efficiency steady with EBITDA margin estimated at 66.8% for current fiscal year 2022 (end June30).

Artesian ResourcesCorp(NSDQ: ARTNA)

Buy<42 47.78 2.24 21.92 9.41 0.27 60.2 A 2/8/2022 2/23/2022 3.2 49.1 Regulated Water



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Q1 2022 Return 5.37%. Dividend increased semi-annually, next increase in April. Next earnings expected May 4. Quality Grade A (No Change). Breakdown: 1. Payout ratio modest,increases on a semi-annual basis at low to mid-single digit percentage rate. 2. Revenue Reliability high from regulated water business and company continues to add new customers andrate base with system upgrades. Residential and government 72.8% of revenue, industrial just 0.1%. Commercial 21%. 3. Regulatory Relations strong in Delaware, Maryland,Pennsylvania. Close of acquisition of wastewater operations of Middlesex in Delaware will lift earnings rest of year. 4. Near-Term Refinancing Risk a non-issue with no debt maturities until2028. Cost of debt capital is still relatively low with bonds due October 2049 yielding 4.47% to maturity, was 3.78% three months ago. 5. Operating Efficiency is steady, EBITDA margin44% for 2021 and expected roughly the same in 2022.

AT&T(NYSE: T)

Buy<30 24.14 4.6 -14.82 -8.18 0.28 56 B 4/13/2022 5/2/2022 1.1 52.6 Communications

Q1 2022 Return: -1.83%. Dividend cut by -46.6% in advance of spinoff/merger of Warner Media with Discovery (NSDQ: DISCA)in which investors will receive 0.24 shares of DISCA pershare of AT&T. Close on April 5. Next earnings April 21. Quality Grade B (No Change). Breakdown: 1. Reduced dividend is well covered with free cash flow, low single digit increases likelygoing forward. 2. Revenue Reliability has improved greatly with wireless and broadband business momentum continuing into 2022. 3. Regulatory Relations stable. 4. Near TermRefinancing Risk manageable despite $21.6 bil in maturing debt through end of 2023. Cost of long-term debt capital flat so far this year as yield to maturity on bonds due August 2058 if4.56% versus 4.39% three months ago. Reduction of spinoff uncertainty balances boosts resistance to bond market rout. 5. Operating Efficiency should improve with spinoff and asset sale,EBITDA margin expected at 31.4% in 2022.

AtlanticaSustainableInfrastructure(NSDQ: AY)

Buy<38 34.33 5.13 -5.43 1.87 0.44 82.6 A 3/11/2022 3/25/2022 7.7 75.6 RenewableEnergy

Q1 2022 Return: -0.70%. Dividend increased 1.2% sequentially from previous quarter, three more boosts this year appear likely. Next earnings expected May 6. Quality Grade A (Nochange). Breakdown: 1. Payout well covered tracking cash flow growth, management has targeted growth tracking guidance for 5-8% annual increases in cash available for distribution(CAFD). 2. Revenue Reliability ensured by long-term contracts (average remaining life 18 years), strong counterparties, US dollar pricing. Rising share price makes future drop downs fromAlgonquin (43.92% owner) more likely. Asset expansion is primary driver of growth, with $60 to $70 mil projects under construction. 3. Regulatory Relations strong in all jurisdictions. Solarfocus is attractive. Power line in Chile has rate escalator tied to inflation. 4. Refinancing risk is low with $396 mil ($408 mil six months ago) in maturing debt through end of 2023, projectdebt amortizes before contract expirations. Cost of long-term debt capital is low and stable with bonds of April 2043 yielding 3.92% to maturity (3.97% three months ago, 3.96% six monthsago), company able to offer green bonds to fund growth. 5. Operating Efficiency solid with EBITDA margin of 69.6% expected for 2022.

Atmos Energy Corp(NYSE: ATO)

Buy<110 121.71 2.24 27.08 16.33 0.68 49.5 A 2/17/2022 3/7/2022 8.9 49 RegulatedElec/Gas

Q1 2022 Return 14.70%. Dividend increase in November. Next earnings expected May 5. Quality Grade A (No Change). Breakdown: 1. Payout ratio is low, supports upper single digitincreases going forward with 6-8% annual earnings grwoth guidance through 2026. 2. Revenue Reliability secured by regulated utilities at 69% of cash flow, most protected by weatheradjustment. Industrial revenues are 4.1% of regulated utilities, commercial 25.8%. Regulated pipelines in Texas are 31% but focused on transporting and storing natural gas for distributionsystems in Texas and Louisiana, other utilities though also power companies. Securitizing higher natural gas costs resulting from Winter Storm Uri, 95% were in Texas. Primary driver ofgrowth is $13 to $14 bil in CAPEX next five years, mostly automatically recovered in rate base with regulator-approved riders. 3. Regulatory Relations strong in all states, Texas is alwayskey. Most states where company is operating have passed laws forbidding local authorities from restricting new distribution infrastructure expansion. 4. Near-Term Refinancing Risk ismanageable with securitization to permanently finance most of $2.4 bil maturing debt through end of 2023 at very low interest rates. Long-term cost of debt capital is still low with bonds dueSeptember 2049 yielding 3.8% to maturity, though up from 3.18% three months ago. 5. Operating Efficiency is steady with EBITDA margin expected at 41.6% for fiscal 2022 (end Sept 30).



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Avangrid(NYSE: AGR)

Buy<52 48.2 3.65 -2.28 -2.93 0.44 76.9 A 6/2/2022 7/1/2022 0.2 30.2 Utility/RenewableEnergy

Q1 2022 Return: -5.41%. Dividend no change since October 2018. Next earnings expected May 3. Quality Grade A (No Change). Breakdown: 1. Earnings cover dividend, increasesunlikely unless/until PNM merger closes, as CAPEX needs great to build offshore wind facilities. 2. Revenue Reliability anchored by utilities with cost of service rates. Has revenuedecoupling in Connecticut, Maine, Massachusetts and New York. Renewable energy unit is third largest US wind power producer (69% long-term contracted to utilities) with broad diversityof projects, earnings are affected by wind conditions. Offshore wind projects will provide big earnings lift when enter service, with first set for 2023 and is hitting "key milestones" saysmanagement. 3. Regulatory Relations are solid in the states with company dodging New York challenges, offshore wind prospects improve greatly under Biden administration. New Mexicowill overhaul regulation in 2023 under state's new energy law, likely to approve PNM merger at that time. Maine removes 100 basis point penalty to allowed ROE as result of greatlyimproved operating performance. 4. Near-Term Refinancing Risk is manageable with $716 mil of maturing debt through 2023, cost of debt capital is low with September 2049 bondsyielding 3.94% to maturity though up from 3.17% three months ago. 5. Operating Efficiency steady with EBITDA margin expected at 31.7% for full year 2022.

Avista Corp(NYSE: AVA)


Q1 2022 Return: 7.30%. Dividend raised 4.1%. Next earnings expected May 5. Company and other utilities in Oregon challenge state Department of Environmental Quality's "ClimateProtection Plan" in court for proposed restrictions on natural gas usage. Quality Grade A (no change). Breakdown: 1. Payout ratio is safe, long-term goal is 65-70% of recurring earnings,mid-single digit annual percentage growth is likely. 2. Revenue Reliability now backed by rate deals in all states, electric and natural gas revenues are decoupled from volume sales in allstates, company making progress toward earning allowed return on equity. Customer growth rate expected to roughly double from rate of past several years to 1-1.5% as driver forearnings. 3. Regulatory Relations stable though officials keep tight grip on allowed returns. New restrictions to gas service in Oregon are a risk. 4. Near-Term Refinancing Risk is low with$267 mil of debt maturities through 2023. Cost of debt capital rises but still low with bonds maturing in December 2051 yielding 4.09% to maturity, was 3.28% three months ago. 5.Operating Efficiency stable with EBITDA margin for 2022 expected to be 32.8%.

BCE(NYSE: BCE, TSX:BCE)

Buy<52 58.25 4.93 33.82 13.21 0.92 80 A 3/14/2022 4/15/2022 6.6 56.4 IntlCommunications

Q1 2021 Return: 7.95%. Dividend raised 5.1%. Next earnings expected May 7. Quality Grade A (No Change). Breakdown: 1. Dividend payout ratio is conservative and supports continuingmid-single digit increases. 2. Revenue Reliability high despite competition as company network is best in class, wireless and broadband see increased traffic, media operations pick upsteam. 5G uptake should be a strong driver of revenue next few years. 3. Regulatory Relations stable though Canadian government historically favors new entrants. 4. Near-TermRefinancing Risk is a non-issue with no maturing debt through 2022, $480 mil in 2023 (was $1.258 bil three months ago). Cost of long-term capital increased but still manageable withDecember 2054 bonds yielding 5.22% to maturity (4.16% three months ago). 5. Operating Efficiency steady with EBITDA margin 42.4% expected in 2022.

Black Hills Corp(NYSE: BKH)




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Q1 2022 Return: 9.98%. Dividend increase in October. Next earnings expected May 4. Quality Grade A (no change). Breakdown: 1. Payout ratio is conservative and backed by regulatedutility earnings, mid-single digit percentage growth appears likely going forward with management guiding to 5-7% annual earnings growth through 2026. 2. Revenue Reliability backed byreliance on regulated natural gas and electric utilities, contracted power sales. Mining attached to coal-fired power plants with company itself the main customer, eventual phaseout shouldbe relatively painless given regulatory support and rate base investment opportunity over next decade. Electric utility retail revenue is 35% residential, 40% commercial, 21% industrial, 4%municipal. Gas utilities don't have revenue decoupling but are 70% residential, industrial not key to margin. Costs held under control despite low temperatures and heating demand lastwinter. Primary growth driver is $3.2 bil in planned CAPEX through 2026. 3. Regulatory Relations good, no major current issues with company now recovering extraordinary costs fromWinter Storm Uri. 4. Near-Term Refinancing Risk is low with just $525 mil in maturing debt through 2023, cost of long-term debt capital is still low though October 2049 bonds now yield4.21% to maturity, was 3.47% three months ago. 5. Operating efficiency strong, EBITDA margin now expected at 42% for 2022.

Blackrock Utilities,Infrastructure &Power Opportunities(NYSE: BUI)

Buy<26 24.47 5.93 2.16 -7.89 0.12 203.3 B 4/13/2022 4/29/2022 0 N/A Closed-End Fund

Q1 2022 Return: -3.18%. Management policy is to hold monthly dividend level at rate paid since August 2014. Shares have traded at a premium to net asset value historically as fund hasheld dividend and asset value in tough environments. Quality Grade B (no change). Breakdown: 1. Fund's current yield has consistently been roughly twice average dividend yield of top 10holdings, distribution increases unlikely but management has many levers to pull to maintain payout and motivated to do so. 2. Revenue reliability is underscored by high quality ofportfolios, Top 10 holdings as of end of 2021 (last available information) are all investment grade with safe and growing dividends, renewable energy is still a focus but management hasadded other areas. 3. Regulatory Relations good for holdings. 4. Refinancing Risk is low as fund uses little or no leverage, policy enabled it to avoid forced sales in 2020 market meltdown,should offer protection from future declines. 5. Operating Efficiency good as fund has low expense ratio of 1.1%.

Boralex(TSX: BLX, OTC:BRLXF)

Buy<35 33.34 1.55 4.38 32.75 0.17 28.9 A 2/25/2022 3/15/2022 2.1 76.3 RenewableEnergy

Q1 2022 Return: 18.97%. No change in dividend since November 2018 increase (4.8%). Next earnings expected May 5. Quality Grade A (No change). Breakdown: 1. Payout ratio isconservative, expansion spending likely to limit dividend growth next several years. 2. Revenue Reliability backed by long-term contracts with mostly government and other investmentgrade entities, well-run wind and hydro facilities, 97% government and utilities. Primary driver of growth is asset expansion, has 1.1 GW of asseets in operation and another 1.5 GW invarious stages of development, added 973 MW of solar and wind to the "preliminary phase of our project pipeline" in 2021. 3. Regulatory relations are good as carbon free power is popularin Canada and Europe, opportunity to grow in France as government wants to double onshore wind capacity and quadruple solar energy by 2028. 4. Near-Term Refinancing Risk isreduced with $350 mil ($642 mil six months ago) in maturing debt through end of 2023. Bonds due June 2027 yield 3.16% to maturity (2.38% three months ago) as cost of debt capital risesthough still affordable, mostly project finance tied to returns on individual assets. 5. Operating Efficiency improves with growth in scale of business, EBITDA margin now expected at 73.3%for 2022.

BP(NYSE: BP, LSE: BP)

Buy<30 30.47 4.23 29.12 3.74 0.33 26.6 B 2/17/2022 3/25/2022 -19.2 43.6 Super MajorOil/Gas



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Q1 2022 Return: 11.63%. Dividend increase in August. Next earnings May 3. Should be able to overcome financial blow from withdrawing from Russian projects (sale of 19.75% of Rosneft)with rising energy prices and increased investment in renewable energy, EV charging ($1.3 bil in UK). Plans to sell shut down North Sea oilfield, said "close to selling" Algerian oil assets toEni SpA after forming venture with company to develop Angolan assets. Quality Grade B (no change). Breakdown: 1. Management sets 4% annual dividend growth target that can besustained at $60 per barrel Brent crude oil. 2. Revenue Reliability still depends on oil prices but diversification into renewable energy should reduce volatility going forward as new facilitiesenter service. Management has set 7-9% annual EBITDA growth target, says "over 40%" of CAPEX to be spent on "low carbon" businesses as primary driver of growth. 3. RegulatoryRelations improve with renewable energy push, climate related litigation doesn't appear to be a major threat now. Withdrawing from Russia removes sanctions risk though could becomplicated. 4. Near-Term Refinancing Risk is greatly reduced with $6.95 bil in maturing debt through end of 2023, was $17.794 bil three months ago. Cost of long-term debt capital is stilllow but has increased with bonds of March 2050 yielding 4.2% to maturity, up from 3.33% three months ago. 5. Operating Efficiency rising with cost cutting, EBITDA margin of 19.2%expected in 2022.

BrookfieldRenewable EnergyPartners(NYSE: BEP, TSX:BEP-U)

Buy<40 40.06 3.2 -3.52 18.49 0.32 78.1 A 2/25/2022 3/31/2022 -2.4 47.3 RenewableEnergy

Q1 2022 Return: 15.65%. BEPC C-Corp shares 19.79%. Dividend raised 5.4%. Next earnings expected May 6. Venture with unit of Advantage Energy in Canada would scale up carboncapture and storage, makes CAD300 mil investment. Quality Grade A (No Change). Breakdown: 1. Payout ratio is well covered by distributable cash flow, supports 5-8% annual growthrate. 2. Revenue Reliability ensured by contracted generation (95% of cash flow), geographic diversification, weather has quarter-to-quarter impact but less so as portfolio has grown.Number of projects and geographic diversification adds complexity, currency and political risk but also scale that has reduced weather-related volatility in cash flow. Hydro is still 66% ofgeneration and low cost, wind 27% and solar 7%. Distributed generation has different economics but company has demonstrated ability to manage them. Asset expansion is primary driverof growth with company adding major ventures in energy storage recently to mix. Acquisitions increasingly driven by parent Brookfield Asset Management. 3. Regulatory Relations are solidin all jurisdictions, diversification a strength. India may be a long-term challenge but more than offset by growth potential so far. 4. Near-Term Refinancing Risks are manageable with $1.21bil ($1.59 bil three months ago) of debt maturing through end of 2023. Cost of capital is low but has risen with bonds maturing in December 2053 yielding 4.18% to maturity, was 3.51%three months ago. Support of parent Brookfield Asset Management (24.99% owner) is a plus, but company now has BBB+ credit rating on its own from S&P and Fitch with stable outlooks.Can also issue low cost green bonds. 5. Operating Efficiency strong with EBITDA margin of 66.7% in 2021.

BT Group(OTC: BTGOF, LSE:BT)

Hold 2.45 1.27 18.28 4.48 2.31 21 D 12/30/2021 2/7/2022 -45.6 66.2 IntlCommunications

Q1 2022 Return: 5.04%. Next semi-annual dividend declaration in May. Next earnings May 12. Pauses plan to replace landline phones to cut costs after regulators push back in UK. QualityGrade D (no change). Breakdown: 1. Dividend re-established at rate that's sustainable next few years though CAPEX and competitive threats to business will restrain growth. 2. RevenueReliability threatened by competition, UK regulation still ties company's hands to some extent. 5G uptake should be a growth driver next few years. 3. Regulatory Relations challenging inUK. 4. Near-Term Refinancing Risk stays elevated with $3.06 bil in maturing debt still through 2023. Cost of long-term debt capital rises with August 2080 bonds yielding 3.05% to maturity(2.52% three months ago) but still quite low. Altice UK holds 18% of stock, Deutsche Telekom 12.05%. 5. Operating Efficiency depends on cost cutting, EBITDA margin for 12 monthsending March 31, 2022 expected 36.3%.

California WaterService(NYSE: CWT)

Hold 58.69 1.7 4 -13.11 0.25 51 A 2/4/2022 2/18/2022 7.3 48.4 Regulated Water



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Q1 2022 Return: -17.16%. Dividend raised 8.7%. Next earnings expected April 29. New Mexico unit to acquire water utility in Valencia County, will add 380 residential customers and 100undeveloped lots as continues to expand outside of California. Quality Grade B (No change). Breakdown: 1. Payout ratio is conservative, supports mid-to-upper single digit percentageannual growth rate. 2. Revenue Reliability boosted by rate agreement in California (93.8% of revenue). Hawaii is 3.8%, Washington 1.8%, New Mexico 0.6%. Water revenue is decoupledfrom demand in California. Electric utility revenue is decoupled from power sales. CAPEX and customer growth particularly with acquisitions is primary driver of growth. 3. RegulatoryRelations are amicable in all jurisdictions. Cost of capital filing in California is a potential challenge as ratepayer advocate wants cut in allowed ROE to 7.81% versus company request for10.35%. 4. Near-Term Refinancing Risk is a non-issue with $13.64 mil in debt maturing through the end of 2023. Cost of debt capital is low with December 2040 bonds yielding 3.94% tomaturity though up from 3.27% three months ago. 5. Operating Efficiency remains steady, EBITDA margin for 2022 expected at 31.5%.

Canadian Utilities(TSX: CU, OTC:CDUAF)

Hold 30.95 4.48 19.66 11.16 0.44 104.8 A 2/2/2022 3/1/2022 4.8 58.4 Int'l Electricity

Q1 2022 Return: 6.84%. Dividend raised 1%. Next earnings expected April 29. Fitch rates company A- with stable outlook, cites "well-run regulated utilities operating in favorable regulatoryenvironments of Alberta (Canada) and Australia." Quality Grade A (no change). Breakdown: 1. Dividend payout ratio is conservative, supported by regulated utility operations, growth likelyto remain in low single digit percentages. 2. Revenue Reliability is strong from regulated utilities (95% earnings). Contracted generation is other 5%. Top 20 customers are 85% investmentgrade, total revenue exposure to below investment grade and non-rated customers is 28%. Stronger economy in Alberta energy patch service territory appears to be taking shape. Primarydriver of growth is CAD3.3 bil in planned utliity CAPEX through 2024. 3. Regulatory Relations are stable with no major current issues. 4. Refinancing Risk is manageable with $672.5 mil($788 mil six months ago) in maturing debt through end of 2023. Cost of long-term debt capital is still low with bonds of September 2063 yielding 3.98% to maturity though up from 3.44%three months ago. 5. Operating Effiiciency solid with EBITDA margin expected at 52.3% for 2022.

CEMIG(NYSE: CIG, BZ:CMIG4)

Buy<2.50 3.21 1.6 80.24 47.26 0.03 51.7 C 4/1/2022 N/A 7.6 36.9 Int'l Electricity

Q1 2022 Return: 32.51%. Dividends irregular and depend on profitability in a given year, 2022 so far appears to be higher than in 2021. Next earnings May 13. Q4 EBITDA increased 5.9%as results for 2021 largely match guidance. Operating expenses are -15% lower than "regulatory standards" for year. Plans 1.5 gigawatts of new generation next five years. Quality Grade C(No Change). Breakdown: 1. Dividend varies with earnings, continuing recovery in 2022 points toward higher payments in 2022. 2. Revenue Reliability boosted by efficiency efforts, buildoutof distribution infrastructure and renewable energy to offset loss of large hydro concessions in recent years. 3. Regulatory Relations appear to have stabilized relatively amicably for utility,though privatization seems unlikely. Rate review at energy distribution unit slated for next year and will be a test. 4. Near-Term Refinancing Risk is reduced with $432 mil ($913 mil threemonths ago) in maturing debt through end of 2023. June 2026 bonds yield 5.05% to maturity, elevated but has actually lower than where it started the year as perceived credit risk hasdropped with deleveraging. 5. Operating Efficiency steady with EBITDA margin expected at 19.1% this year.

CenterPoint Energy(NYSE: CNP)

Buy<28 32.49 2.09 43.43 18.2 0.17 49.6 A 2/16/2022 3/10/2022 -16.2 64.4 RegulatedElec/Gas



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Q1 2022 Return: 10.39%. Raises dividend 6.3%. Next earnings expected May 6. Completes sale of Energy Transfer LP units at 20% premium to value when Enable sale was announced inFebruary 2021. Management says proceeds will be sued to reduce debt. Fitch affirms credit rating, Moody's raises "credit thresholds." Timing limits upside to energy cycle but also reducesuncertainty and risk. Quality Grade A (No change). Breakdown: 1. Payout ratio is conservative and well backed by earnings at regulated electric and gas transmission and distributionutilities, with 6-8% annual earnings and dividend growth targeted. 2. Revenue Reliability is strong with $19.2 bil in planned utility CAPEX through 2026 as primary growth driver. Regulatedelectric and natural gas utility revenue is volume sensitive but generally weighted toward residential customers and revenue is more than 90% from regulated transmission and distribution.Company also continues to target 1-2% annual reductions in operating costs through 2030. Regulatory Relations stable in Texas, regulators grant full securitization of $1.1 bil inextraordinary natural gas purchase costs during 2021 Winter Storm Uri. 4. Near-Term Refinancing Risk is sharply reduced with $1.813 bil in maturing debt through end of 2023 ($3.938 bilthree months ago) and Energy Transfer sale allowing further reductions. Cost of debt capital still low with Sept 2049 bonds yielding 3.99% to maturity, though up from 3.33% three monthsago. 5. Operating Efficiency increases with cost cutting, EBITDA margin is expected at 35.8% for 2022.

Centrica(LSE: CNA, OTC:CPYYY)

Hold 4.2 N/A 36.87 6.2 N/A 0 D 10/8/2020 N/A N/A 60.9 Int'l Electricity

Q1 2022 Return: 8.31%. No semi-annual dividends paid since 2019, likely to restore some payment this year though management has not set any earnings guidance for fiscal year endingin June. Next semi-annual earnings July 28. Exiting gas purchase contracts with Russia will raise costs. Company is still challenged to sell remaining oil and gas production operations,though sale of Norway operations appears to be on track. Quality Grade D (no change). Breakdown: 1. Dividend likely to be less than pre-pandemic level when resumes as managementfocuses on maintaining investment grade credit ratings in face of negative outlooks from Moody's. Management has said reinstating payout during UK energy crisis is "not a good look." 2.Revenue Reliability is at risk to multiple factors in current environment, demise of rivals enables company to gain retail customers in near-term. Will take time to prove stability of businessmodel after asset sales are concluded, proceeds are uncertain. 3. Regulatory Relations highly uncertain in UK with ongoing energy price spikes but company appears to have navigatedenvironment so far. 4. Near-Term Refinancing Risk is reduced with $370 mil of maturing debt through 2023 ($692 mil three months ago). Cost of debt is modest with September 2045bonds yielding 4.69% to maturity though up from 3.90% three months ago. 5. Operating Efficiency likely to be challenged as company goes "asset lite," calendar year 2021 EBITDA marginwent negative but is expected to rebound to 8.9% this year, down from 21.6% in 2020.

CharterCommunications(NSDQ: CHTR)

Hold 557.6 N/A -9.36 -8.66 N/A 0 A N/A N/A N/A 83.7 Communications

Q1 2022 Return: -16.33%. No dividend. Next earnings expected April 29. Sells $3.5 bil in bonds, with 2033 notes at 4.4%, 2053 bonds at 5.25% and 2063 notes at 5.5%, demonstratingability to access low cost debt capital during a bond market meltdown. Moody's rates credit just below investment grade at Ba1 with stable outlook. Quality Grade A (No change).Breakdown: 1. No payout. 2. Revenue Reliability is solid with business heavily focused on fees, enterprise sales and wireless expansion continues, offsets loss of basic cable customers. 3.Regulatory Relations stable. 4. Near-Term Refinancing Risk is manageable with $5.152 bil in debt maturities through 2023. Still has modest cost of long-term debt capital with yield tomaturity of bonds due October 2055 at 5.55% to maturity, though up from 4.52% three months ago. Credit ratings still on verge of investment grade, though outlook is now stable fromMoody's and S&P rather than positive. 5. Operating Efficiency is strong with EBITDA margin expected at 40.5% for 2022.

Chesapeake UtilitiesCorp(NYSE: CPK)




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Q1 2022 Return: -5.19%. Dividend increase in May. Next earnings expected May 4. Opens compressed natural gas fueling station in Savannah, GA in partnership with Southern Companygas unit. Quality Grade A (no change). Breakdown: 1. Payout ratio low and supports consistent upper single digit annual increases. 2. Revenue Reliability strong despite diverse operations.Propane, gas and electricity delivery are in two segments, Mid-Atlantic and Florida. Industrial sales are 34% of Florida gas utility revenue. Propane revenue is 35% metered: 25% residentialand 10% commercial, rest is bulk. Weather is key factor for earnings always but target midstream and electricity investment have reduced seasonality of results. Asset expansion is primarydriver of growth with $750 mil CAPEX planned through 2025 to fuel guidance 9.1-9.5% annual earnings growth. 3. Regulatory Relations solid with no major current issues. 4. Near-TermRefinancing Risk is manageable with $220 mil in maturing debt through end of 2023. Bonds of October 2023 post sharp gains, now yield 3.21% to maturity (4.75% three months ago). 5.Operating Efficiency is strong across diversified business lines with EBITDA margin expected at 33.1% in 2022.

Chevron Corp(NYSE: CVX)

Buy<125 169.93 3.34 73.12 37.35 1.42 49.8 A 2/15/2022 3/10/2022 6.1 19.9 Super MajorOil/Gas

Q1 2022 Return: 39.97%. Dividend increased 6%. Next earnings expected April 29. Lack of exposure to Russian oil and gas is a plus in current environment. Company also may be able tounlock Venezuelan energy assets as US government looks for heavy oil supplies. Labor strike at California refinery is not expected to meaningfully affect profitability. Management alsolikely to resist effort by climate activists to oust CEO as company is managing current crisis well and acquisition of Noble Energy looks especially prescient now. Quality Grade A (nochange). Breakdown: 1. Payout supported by cash flow at $40 per barrel oil, by balance sheet at lower prices. Mid to upper single digit percentage dividend increases likely to besupplemented with $5-$10 bil annual stock buybacks going forward. 2. Revenue Reliability helped by completion of major multi-year projects, cost cutting, exposure to downstreambusiness and now the shift up in the energy price cycle. Company is also investing heavily in hydrogen, carbon capture and low carbon fuels (Renewable Energy Group acquisition) tomatch next phase of energy transition, provide stable revenues. Targets 10% annual operating cash flow growth through 2026, 10% expense reduction over five years. 3. RegulatoryRelations and legal risk are elevated as oil and gas prices spike higher but management appears to be navigating so far, would benefit greatly if Venezuelan sanctions are eased. 4. Near-Term Refinancing Risk is low for company size with $8.988 bil ($11.034 bil three months ago) in maturing debt through 2023. Cost of long term debt capital remains low with May 2050bonds yielding 3.35% to maturity, though up from 2.93% three months ago. 5. Operating Efficiency improves with cost cutting though energy prices greatly affect results, 2022 EBITDAmargin expected at 26%.

China Gas Holdings(OTC: CGHLY, HongKong: 384)

Hold 31.9 1.77 -68.42 -35.22 0.32 29.3 B 1/5/2022 2/14/2022 17.4 45.9 Int'l EnergyDistribution

Q1 2022 Return: -36.87%. Next increase in semi-annual dividends in June. Next semi-annual earnings expected June 28. Surging natural gas costs and potential pandemic shutdowns arerisks and may reduce prospective dividend increases this year though customer growth remains a powerful driver of growth. Quality Grade B (no change). Breakdown: 1. Payout looks safewith robust customer growth rate fueling increases for foreseeable future. 2. Revenue Reliability is backed by a regulated franchise in major Chinese cities and mid-teens annual customergrowth, though depends on regulators to allow pass through of higher natural gas costs. 3. Regulatory Relations challenged this year with government a heavy owner and promoting use ofnatural gas heat over coal, but also concerned with economic fallout from passing through full impact of higher gas costs. 4. Refinancing Risk is a non-issue with Chinese governmentsupport, debt maturities through 2023 only $51 mil ($318 mil three months ago). Cost of debt capital is modest and basically unchanged this year with bonds of March 2025 yielding 3.17%to maturity (3.10% three months ago. Chinese credit agencies rate company AAA with stable outlook. 5. Operating Efficiency strong though pressured by gas prices with EBITDA marginprojected at 17.2% for 12 months ending March 31, 2022, 17.8% for FY2023.

China Mobile(NYSE: CHL, HK:941)

Delisted N/A N/A N/A N/A 30.25 60 B 11/3/2021 N/A 149 5.6 IntlCommunications



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Q1 2022 Return: 15.71%. Semi-annual dividend for payment June 15 increased by 38.1% from year earlier. Next earnings expected April 20. Operating revenue is higher by 10.4% in 2021,net income up 11% excluding asset writedown in first half of year. Wireless average revenue per user is up 3% as company has 15 mil net adds. Data traffic up 35% over year ago. Alsoadds 14% more wireline broadband users. Quality Grade B (No Change). Breakdown: 1. Payout is well covered, has room for increases now that CAPEX for 5G has likely peaked, thoughlikely less than recent increase going forward. 2. Revenue Reliability strong despite competition and still appears to be getting big lift in average revenue per user from 5-G rollout, as wellas advanced applications and data usage. 3. Regulatory Relations good, state support has increased with US frictions. 4. Near-Term Refinancing Risk not a concern due to Chinesegovernment backing and A+ credit rating from S&P (stable outlook). 5. Operating Efficiency best in class, EBITDA margin now estimated at 35.7% for 2022. Shares are among a list of 57Chinese that the US government has restricted from US investors but American Depositary Receipts (5 ordinary shares) are still worth roughly $32 based on Hong Kong dollar exchangerate.

China Unicom(NYSE: CHU, HK:762)

Delisted N/A 3.81 N/A N/A 0.26 46 B 5/19/2021 6/28/2021 46.3 10.5 IntlCommunications

Q1 2022 Return: -0.26%. Dividend declared for payment in June is -41.5% below year ago payout but last 12 months total dividends are up 31.7% from previous year and companyappears to have gone to twice annual dividend plan. Next earnings expected April 21. Adds 4.4 mil 5G users in February, at 164.9 mil as of end of month. Company's 2021 net profitadvances 14.2%, business revenue up 7.9% as 5G growth is primary driver. Quality Grade B (no change). Breakdown: 1. Payout ratio is manageable, future dividend boosts likely to be atmid-single digit percentage rate. 2. Revenue Reliability is improving with 5G rollout despite competition with industry leader China Mobile. 3. Regulatory Relations good though governmentwants lower rates. 4. Near-Term Refinancing risk manageable with $471 mil in maturing debt by end of 2023, was $1.535 bil three months ago. 5. Operating Efficiency improves with costcutting, EBITDA margin 28.9% expected for 2022. Shares are among a list of 57 Chinese that the US government has restricted from US investors. ADRs worth roughly $5.16 per at currentHong Kong dollar exchange rate and 10 ordinary shares per ADR.

Chunghwa Telecom(NYSE: CHT, TT:2412)

Hold 44.29 2.71 17.03 6.21 1.55 94.5 B 8/24/2021 10/5/2021 -0.3 9 IntlCommunications

Q1 2022 Return: 5.31%. Annual dividend increased 7% from a year ago. Next earnings expected May 4. Upgrading 5G network in Taiwan with Nokia alliance, plans to double "private"networks business. Sells NT$3.5 bil low cost "sustainability" notes, five years at 0.69% coupon rate, upsized from initial offering of NT$3 bil and demonstrates company's ability to accessvery low cost capital. Quality Grade B (No Change). Breakdown: 1. Annual dividend follows cash flow and earnings, current rate conservative. 2. Revenue Reliability enhanced by dominantposition in Taiwanese market though competition is strong, 5G uptake is emerging as driver of growth. 3. Regulatory Relations are positive, government remains the largest shareholder at35.29%. 4. Near-Term Refinancing Risk is non issue with no debt maturities before 2025, partial ownership of company by government entity, AA (stable outlook) credit rating from S&P. 5.Operating Efficiency is solid with EBITDA margin expected at 39.9% for 2022.

Clearway Energy(NYSE: CWEN)

Buy<35 35.09 3.95 27.13 4.71 0.35 28.8 B 2/28/2022 3/15/2022 5.2 71.5 RenewableEnergy



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Q1 2022 Return: 2.30%. Dividend raised 2% with March payment, three more boosts likely this year. Next earnings expected May 6. Quality Grade B (No Change). Breakdown: 1. Currentdividend level is supported by contracted cash flows, management intends to grow payout at "upper end" of 5-8% a year guidance next several years. 2. Revenue Reliability backed bycontracted and regulated cash flows, almost all counterparties are regulated utilities, earliest contracts expiration is 2023 but odds of renewing wind and solar are very strong. Primary driverof growth is asset expansion, primarily drop downs of assets from parent Global Infrastructure Partners though also some third party acquisitions. 3. Regulatory relations good, Texas plantupgrades should reduce exposure to future winter storms. 4. Near-Term Refinancing Risks are manageable with $2.489 bil in maturing debt to end of 2023. Cost of longer-term debt capitalis modest with June 2035 bonds yielding 5.58% (4.92% three months ago) to maturity, credit ratings at BB and Ba2 from S&P and Moody's respectively with stable outlooks. GlobalInfrastructure Partners is financially strong and committed sponsor. Company has $1.35 bil in expected net proceeds from sale of Thermal Energy business to KKR, expected close by endof Q2 and available for CAPEX or debt refinance. 5. Operating Efficiency solid with EBITDA margin expected at 87.2% in 2022 versus 73% in 2021.

CLP Holdings(OTC: CLPHY, HK: 2)

Buy<11 9.81 5.9 6.35 -0.24 0.15 92.2 B 3/11/2022 3/31/2022 3.4 31.6 Int'l Electricity

Q1 2022 Return: -2.34%. Dividend declared for payment in March was flat with year earlier. Next earnings May 16. Quality Grade B (No Change). Breakdown: 1. Payout ratio and financialpolicies are conservative, supported by regulated Hong Kong utility business and generally low risk, high growth power business abroad. Low single digit percentage increases appear likelynext few years. 2. Revenue Reliability is strong with Hong Kong operations steady in large part due to rate structure. Australia results crimped near term by reduced demand and wholesalepower prices but may be bottoming. China and India growth plans are robust. Hong Kong utility CAPEX is a primary growth driver under multi-year rate and investment plan. 3. RegulatoryRelations good and allow long-term planning, no major challenges in Australia or Hong Kong. Management continues to keep company out of political trouble. 4. Near-Term RefinancingRisks reduced and manageable with $1.033 bil ($1.605 bil three months ago) in maturing debt through 2023. Cost of debt capital is still very low with July 2044 bonds yielding just 2.83% tomaturity, same as three months ago and flat with 15 months ago as well. 5. Operating Efficiency steady with EBITDA margin expected at 28.3% in 2022.

CMS Energy Corp(NYSE: CMS)


Q1 2022 Return: 8.23%. Dividend raised 5.8%. Next earnings expected April 29. S&P affirms BBB+ credit rating with stable outlook despite "less than favorable regulatory outcomes inrecent electricity rate case proceedings." Management announces 20% reduction in CO2 emissions from gas system by 2030, "net zero" by 2050 including customers and suppliers. QualityGrade A (No change). Breakdown: 1. Payout ratio is conservative and fully backed by regulated electric and gas utility revenue. 2. Revenue Reliability backed by regulated utilities in statethat's historically provided strong regulatory support. Residential is 45% electric revenue, commercial 34% and industrial 15%, not dependent on a single customer or group. 10% of load isjust cost of service for customers using another provider, further reducing exposure to industry. Gas is 60% residential revenue, just 14% commercial and 4% industrial. Contract poweroperations sell to utility. Utility CAPEX ($14.3 bil over five years) is primary driver for expected 6-8% annual earnings growth. 3. Regulatory relations historically very strong in Michigan, andpolitically with both Democrats and Republicans. Recent rate decisions likely a one-time factor but would be a concern if decided similarly going forward. 4. Near-Term Refinancing Risk islow with $625 mil in maturing debt through end of 2023, cost of long-term debt capital is still low with August 2064 bonds yielding 3.99% to maturity, though up from 3.38% three monthsago. 5. Operating Efficiency consistent and strong with EBITDA margin expected at 34.9% in 2022 despite less than expected rate increase this year.

CogentCommunicationsHoldings(NSDQ: CCOI)

Hold 68.56 4.99 3.2 0.55 0.86 147.8 C 3/8/2022 3/25/2022 14.1 142 Communications



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Q1 2022 Return: -8.16%. Dividend raised 3% sequentially from previous quarter, three more increases likely this year. Next earnings expected April 28. Quality Grade C (no change).Breakdown: 1. Payout policy is aggressive, management committed to it but is challenged to support current rate of mid-teens percentage annual growth. 2. Revenue Reliability has beensteady with core business selling bandwidth to corporate customers in large multi-tenant office buildings and "net-centric" users, who purchase bandwidth in "carrier-neutral" data centers."Off net" business has been in declining trend. Revenue is exposed to foreign currency, especially the Euro and Canadian dollar. Corporate business (59% of revenue) decline by -7.4% in2021 is worrisome for future business momentum, though offset last year by cost cutting. 3. Regulatory Relations steady with no major outstanding issues. 4. Near-term Refinancing Risk isa non-issue with no maturing debt until 2024. Cost of debt capital has risen sharply with bonds due June 2024 yielding 4.13% to maturity, up from 2.27% three months ago. 5. OperatingEfficiency is rising as company increases scale with EBITDA margin expected at 39.5% for 2022.

Comcast Corp(NSDQ: CMCSA)

Buy<55 47.42 2.28 -11.02 -4.72 0.27 35.1 A 4/5/2022 4/27/2022 9.4 52.3 Communications

Q1 2022 Return: -6.48%. Dividend raised 8%. Next earnings April 28. Quality Grade A (No Change). Breakdown: 1. Payout ratio is conservative and affords upper single digits percentageboosts in dividends every year. 2. Revenue Reliability backed by broadband network and growth of streaming service, recovery of theme parks has been solid since pandemic pressuresbegan to fade. Growth in revenue and cash flow is consistently at least upper single digit percentages from these businesses. 3. Regulatory Relations are solid in US and Europe with nomajor current issues. 4. Near-Term Refinancing Risk manageable with $9.38 bil in maturing debt by end of 2023, low and stable cost of long-term debt capital with bonds of Oct 2058yielding 3.91% to maturity, though up from 3.37% three months ago. 5. Operating Efficiency steady with EBITDA margin expected at 30.4% for 2022.

ConsolidatedCommunications(NSDQ: CNSL)

Hold 6.1 N/A -8.27 -19.31 N/A 0 D 4/25/2019 N/A N/A 72 Communications

Q1 2022 Return: -21.12%. No dividend. Next earnings expected April 29. Searchlight Capital is reportedly considering takeover offer for 65.37% of company it doesn't already own. Couldlikely be successful with upper single digit price. Quality Grade D (No Change). Breakdown: 1. Shrinking revenue, CAPEX needs for broadband and high debt make restoring dividendunlikely. 2. Revenue Reliability still shrinking as legacy business declines faster and competition erodes business and broadband sales, management strategy of building out fiberbroadband to keep customers still a work in progress. 3. Regulatory Relations benign. 4. Near-Term Refinancing Risk is a non-factor for now with no maturing debt until 2027. Yield tomaturity for bonds of October 2028 has skyrocketed to a distressed 8.05%, up from 5.31% three months ago). 5. Operating Efficiency falls to competition, EBITDA margin now expected at36.1% for 2022, previous guidance was 38.7%.

Consolidated Edison(NYSE: ED)

Hold 97.91 3.23 35.59 15.4 0.79 72.9 B 2/15/2022 3/15/2022 2.6 55.5 RegulatedElec/Gas

Q1 2022 Return: 11.90%. Dividend raised 1.9%. Next earnings expected May 6. Fitch affirms BBB+ credit rating, outlook to stable from negative, cites improvement in post-pandemicbalance sheet and recent rate settlement. Quality Grade to A from B on improved regulatory relations and establishment of long-term growth guidance. Breakdown: 1. Payout ratio ismodest with low-single digit growth well funded. 2. Revenue Reliability high with company focus on rate base investment, may sell contracted renewable energy unit to fund utilityCAPEX,primary driver of growth ($4.6 bil expected in 2022) with 5-7% annual earnings boosts expected through 2026. 3. Regulatory Relations appear to have improved in New York underGovernor Hochul. Recent rate deal a major plus. 4. Near-Term Refinancing Risk is low with $650 mil now due through 2023. Cost of debt capital is still low with November 2059 bondsyielding 4.06% to maturity but up from 3.5% three months ago. 5. Operating Efficiency solid with EBITDA margin 36.8% expected in 2022.

Consolidated Water(NSDQ: CWCO)

Buy<14 11.48 2.96 -7.99 10.7 0.09 147.8 C 3/31/2022 4/29/2022 0 1.7 Int'l Water



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Q1 2022 Return: 4.75%. No change in dividend since January 2018. Next earnings expected May 17. Company reports 10.2% boost in 2021 bulk revenue, 7.3% higher service revenue.PERC Water unit boosts recurring revenue with five-year wastewater plant contract in southern California, though timing of contract revenue is always uneven. Return of tourism adds tobusiness momentum in 2022. Quality Grade C (No change). Breakdown: 1. Payout supported by diverse operations but increases unlikely next few years. 2. Revenue Reliability affected bystorm impacts and flow of tourism, though most business is local retail. Local economies are vulnerable to a long-term drop in tourism. Water services unit in US diversifies revenuestreams, also a potential beneficiary of stepped up spending on water infrastructure per Biden Administration proposals. 3. Regulatory Relations stable across range of jurisdictions. 4.Refinancing Risk is a non-issue. 5. Operating Efficiency is steady, EBITDA margin projection 20.8% for 2022.

ConstellationEnergy Corp(NYSE: CEG)

Buy<55 64.02 0.88 N/A N/A 0.14 20 B 2/24/2022 3/10/2022 N/A 41.4 NuclearPower/Retail

Q1 2022 Return: 34.25%. Management has promised 10% annual increases to dividend established for payment in March. Next earnings expected May 26. Debt restructuring planapproved, should cut costs. Consolidates brand names of energy retail unit. Management says it has enough nuclear fuel for multiple years and supports limits on Russian nuclear fuelimports. Quality Grade C (No change). Breakdown: 1. Payout supported by stable cash flows from retail and nuclear generation business with 10% annual growth anticipated as costs comeout of business. 2. Revenue Reliability should remain strong as nuclear generation margins are supported by government subsidy, strong plant performance and price hedging. 3.Regulatory Relations stable with US government and a growing number of states supporting nuclear power for environmental benefits and diversification from fossil fuels. 4. RefinancingRisk is a non-issue with $41.9 mil in maturities though end of 2023, bonds of June 2042 yield modest 4.99% to maturity. 5. Operating Efficiency is steady, EBITDA margin projection 18.3%in 2022 after better than expected 20.3% in 2021.

Contact Energy Ltd(NZ: CEN, OTC:COENF)

Buy<5.50 5.29 4.58 N/A N/A 0.18 145.3 B 3/10/2022 3/30/2022 0.7 22.6 Int'l Electricity

Q1 2022 Return: 4.03%. Semi-annual dividend for payment in March is flat versus a year ago. Next semi-annual earnings August 16. Quality Grade B (no change). Breakdown: 1. Semi-annual dividend likely to remain at current level due to CAPEX needs for geothermal generation expansion over the next couple years. 2. Revenue Reliability is strong with regulated NewZealand franchise, though affected by weather and especially hydro conditions. 3. Regulatory Relations are stable with no major current issues, country supports push into renewableenergy. Increase in electricity lines charge granted by New Zealand regulators is a good sign. 4. Refinancing Risk is manageable with $69.6 mil in maturing debt through end of 2023, stillhas low cost of debt capital with bonds of November 2051 yielding 3.6% to maturity, though up from 3.27% three months ago. 5. Operating Efficiency improves with EBITDA marginexpected at 24.6% for current fiscal year (end June 30, 2022).

Crown CastleInternational(NYSE: CCI)

Buy<180 198.02 2.97 16.08 2.55 1.47 79.9 A 3/14/2022 3/31/2022 8.8 76.6 Communications

Q1 2022 Return: -10.86%. Dividend increase in October. Next earnings expected April 21. Quality Grade A (no change). Breakdown: 1. Payout ratio is conservative and supported by stableand rising cash flow, management guides to 7-8% annual growth rate next few years. 2. Revenue Reliability is solid as communications infrastructure assets are in high demand, companymoving to 5G technology and able to land long-term arrangements with leading service providers. Bulk of revenue is now recurring rather than tied to capital spending cycle of largest USservice providers. 3. Regulatory Relations good, US focus is a plus. 4. Refinancing Risk is greatly reduced with $851 mil ($2.112 bil three months ago) in debt maturities through end of2023. Still has low long-term cost of debt capital with bonds maturing in July 2050 yielding 4.26% to maturity, though up from 3.6% three months ago. 5. Operating Efficiency improves withscale, Operating income margin expected at 35.1% this year, up from prior forecast of 33.3%.



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Deutsche Telekom(OTC: DTEGY, GR:DTE)

Buy<22 18.6 3.6 -2.65 4.75 0.7 76.6 B 4/8/2022 4/19/2022 -3.8 63.9 IntlCommunications

Q1 2022 Return: 0.59%. Annual dividend increased 6.7%. Next earnings May 13. Completes sale of Dutch unit for EUR5.1 bil, proceeds to help fund CAPEX elsewhere. Company shutsdown activities in Russia, should not have much earnings impact. Starts selling process for wireless towers unit, expected proceeds $20 bil. Quality Grade B (No Change). Breakdown: 1.Annual dividend is conservative and well covered with wireless and broadband network cash flows, mid-to-upper single digit growth rate likely next few years. 2. Revenue Reliability solid asUS and German units grow, T-Mobile US appears to have integrated former Sprint assets efficiently. Company plans to boost T-Mobile US ownership above 50% from current 46.74%.Management guides to 14% free cash flow growth in 2022, 10% yearly free cash flow increases through 2024. 3. Regulatory Relations are solid in US and Europe, lack of Russia exposurea plus. 4. Near-Term Refinancing Risks are manageable with $7.514 bil in maturing debt through end of 2023. Company still has low long-term cost of debt capital with January 2050 bondsyielding 4.01% to maturity, though up from 3.44% three months ago. 5. Operating Efficiency strong with EBITDA margin expected at 34.2% for 2022.

Dish Network Corp(NSDQ: DISH)

SELL 32.34 N/A -14.56 -5.93 1 0 D 12/12/2012 12/28/2012 N/A 59 Communications

Q1 2022 Return: -2.44%. No dividend. Next earnings expected April 29. Quality Grade D (No Change). Breakdown: 1. No payout. 2. Revenue Reliability eroding to competition in satellitetelevision industry, infrastructure lite cloud focus of 5G will hold down deployment costs but may limit upside to company itself. Wireless business has also been losing ground tocompetition (-5.6% customer loss in 2021), may lose more as Verizon ramps up prepaid offerings following TracFone acquisition. 3. Regulatory Relations likely to be increasinglycontentious going forward as company struggles to claw back subsidy from previous wireless auction thrown out by Federal Communications Commission and now contested in courts, alsopressured to fill out spectrum acquired in auction as deadline for usage looms. Management has said it's six months behind deploying 5G network in troubling sign. 4. Near-TermRefinancing Risk elevated with $3.5 bil in maturing debt by end of 2023, faces debt mountain of $12.75 bil (was $10 bil three months ago) in 2024-26. Yield to maturity on July 2026 bondsjumps to distressed 7.88%, was 6.6% three months ago, 4.6% six months ago. 5. Operating Efficiency hit by competition, EBITDA margin expected to drop to 18.4% in 2022 from 22.5% in2021.

Dominion Energy(NYSE: D)

Buy<85 88.38 3.02 19.87 11.1 0.67 69.2 A 3/3/2022 3/20/2022 -9.3 58.7 RegulatedElec/Gas

Q1 2022 Return: 9.01%. Dividend raised 6%. Next earnings expected May 4. Virginia Attorney General says 2.6 gigawatt offshore wind project posts "significant risks" for consumers andthat economic benefits have been exaggerated but acknowledges project approved by legislature and can't block. Fitch affirms BBB+ credit rating with stable outlook, cites "stable earningsprofile," upgrades North Carolina gas unit, cuts Ohio unit outlook to negative from stable. Quality Grade A (No Change). Breakdown: 1. Dividend policy conservative, fully backed byearnings from regulated utilities. Management targets 65% payout ratio and 6.5% annual earnings and dividend growth rate backed entirely by utility CAPEX. 2. Revenue Reliability backedby utility resilience. Industrial is only 6% of Virginia load (47% operating earnings), data centers are 30% of commercial load and with demand growing rapidly, 40% electricity rate base hasriders with true-ups for under or over recovery. Gas distribution in Carolinas 13% of earnings, South Carolina electric utility 11% (former SCANA). Gas utilities revenue mostly decoupledfrom demand. Cove Point LNG is fully contracted on take-or-pay basis for 19 years with creditworthy customers, now has minority stake in asset and may monetize the rest over time asvalue grows with US pledge to boost LNG exports to Europe. Utility CAPEX is primary driver of growth with $26 bil on renewable energy next five years, $72 bil total through 2035. 3.Regulatory Relations in all states appear amicable. Virginia AG appears to oppose green energy plans but so long as company sticks to budget returns should be protected. 4. Near-TermRefinancing Risk is manageable with $5.56 bil of maturing debt through end of 2023. Cost of long-term debt capital is still low with June 2065 bonds yielding 4.15% to maturity, though upfrom 3.35% three months ago. 5. Operating Efficiency strong though tested by construction program, EBITDA margin tops expectations at 47.5% in 2021, expected to rise to 49.1% in 2022.

DTE Energy(NYSE: DTE)




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Q1 2022 Return: 11.34%. Dividend increase in October. Next earnings expected April 27. Chairman to retire and be replaced by CEO, ensuring continuity. Quality Grade A (no change).Breakdown: 1. Payout ratio conservative and backed by regulated utility cash flow. 2. Revenue Reliability is strong, electric utility sales 23.4% industrial and highly exposed to auto industrybut proved resilient in pandemic. Energy trading and unregulated power operations are generally low risk and heaviliy contracted. Management guiding to 5-7% annual operating earningsgrowth next five years, utility CAPEX as primary driver. 3. Regulatory Relations historically strong in Michigan, though recent rate case results were less than optimal and would be troublingif repeated in future cases. 4. Near-Term Refinancing risks manageable with $2.952 bil in maturing debt through 2023, cost of debt capital is still low with yield to maturity on March 2050bonds 3.55%, though up from 3.02% three months ago. 5. Operating Efficiency steady with EBITDA margin of 23.4% expected in 2022.

Duke Energy Corp(NYSE: DUK)


Q1 2022 Return: 7.38%. Dividend increase in July. Next earnings expected May 10. Sells $900 mil in low cost "sustainable" bonds, 10-year at coupon rate of 3.4%, 30-year at 4%. S&Paffirms BBB+ credit rating with stable outlook. Quality Grade A (No Change). Breakdown: 1. Payout ratio is modest and well covered as company is almost entirely regulated now except forsome contracted renewable generation and some long haul pipeline investment. 2. Revenue Reliability solid in US regulated utilities, renewable energy investment, pipelines. Industrialcustomers are 32% of demand in Indiana, 23% in Ohio. Florida unit least exposed to cyclical pressures. Has minimum demand charges in place for industrial and commercial users inCarolinas. Management is guiding to 5-7% annual earnings grwoth, with utility CAPEX the primary driver. 3. Regulatory Relations strong, North Carolina energy law a plus. Ongoing ratecase to pass through fuel costs in state is a test though meaningful disallowances appear very unlikely. South Carolina push for more renewables likely to spur earnings growth as well. 4.Near-Term Refinancing Risk is reduced further to $5.433 bil ($6.616 bil three months ago) in maturing debt through end of 2023. Cost of long-term debt capital is still low with April 2050bonds yielding 3.66% to maturity, though up from 3.19% three months ago. 5. Operating Efficiency strong, EBITDA margin expected at 46.5% for 2022.

E.ON(OTC: EONGY, GR:EOAN)

Buy<14 11.29 3.74 -0.89 -15.75 0.57 68.1 A 5/20/2021 5/28/2021 16.8 66 Intl Energy

Q1 2022 Return: -16.86%. Annual dividend raised 4.3%. Next earnings May 11. Utility has no long-term gas purchase contracts with Russia, plans to import green hydrogen "at scale" asreplacement fuel. Issues EUR1.5 bil in green bonds, 3-year notes priced to yield 0.919%, 9-year notes at 1.646%. Management expects lower 2022 earnings on combined impact ofRussian sanctions' impact ownership stake in Nord Stream 1 gas pipeline and phase out of nuclear power in Germany, guidance range is EUR0.88 to EUR0.96 per share. 2021 sales up27%, earnings up 4.6 fold mostly on non-recurring items. Plans EUR27 bil CAPEX on energy transition through 2026. Quality Grade A (no change). Breakdown: 1. Payout ratio supportedby regulated utility operations, UK retail business offers some risk but results improving and should get a lift as rivals are forced out of business during country's energy crisis. Managementsets guidance of 5% average annual dividend growth through 2026. 2. Revenue Reliability solid with focus on regulated businesses, steady returns for German and Swedish powerdistribution grids, learning to live with UK tariff caps. Grid business is insulated from demand pressures, though subject to changes in regulated returns. EBITDA guidance is EUR7.6 toEUR7.8 bil for 2022, net income EUR2.3 to EUR2.5 bil. 3. Regulatory Relations steady in countries where company operates, Russian sanctions impact on energy prices is a test. 4.Refinancing Risks manageable with $5.946 bil in maturing debt to end of 2023. Low cost of long-term debt capital is nearly unchanged this year with July 2039 bonds yielding 2.5% tomaturity versus 2.48% three months ago. 5. Operating Efficiency improving with company's focus on regulated businesses but impacted by volatile energy prices, failure of energymarketers in recent months with EBITDA margin of 11.6% now expected for calendar 2021.

Edison International(NYSE: EIX)




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Q1 2022 Return: 3.74%. Dividend increase in December. Next earnings expected April 27. Thermal energy storage pilot appears to be a success after two year evaluation, would help utilitymanage demand for refrigeration, third highest category of energy use in state. Latest example of plug and play grid strategy at utility. Quality Grade A (no change). Breakdown: 1. Dividendpayout ratio is conservative, increases are following management guidance for 5-7% annual core earnings growth. 2. Revenue Reliability anchored by revenue decoupling from electricityvolume sales in California, mnanaement guides to 7-9% annual rate base growth through 2025, spending is divided between wildfire damage control and facilitating grid for state transitionto 100% renewable energy and storage. 3. Regulatory Relations solid in California, support for wildfire insurance and success of grid hardening investment are key to keeping it that way.Management says spending on "covered conductors" and other measures has reduced wildfire risk by 65-70% since 2018. 4. Near-Term Refinancing Risk is manageable with $5.605 bil inmaturing debt to end of 2023. Cost of debt capital is still low with February 2050 bonds yielding 4.03% to maturity, though was 3.42% three months ago. 5. Operating Efficiency is steadywith EBITDA margin expected at 36.6% for 2022, up from 35.4% year.

Electricite de France(OTC: ECIFF, FP:EDF)

Hold 9.1 6.95 N/A -15.62 0.28 45 C 5/18/2022 6/13/2022 3.9 52.5 Intl Energy

Q1 2022 Return: -15.90%. Semi-annual dividend declared for June is up 39.5% from year earlier payment. Next earnings May 4. Speculation growing that French government may buy in19.91% of company it doesn't already own through entities, S&P says would not result in ratings boost as company already enjoys support of French state. Construction of Hinkley Point Cnuclear plant in UK announces a further six-month delay in startup to June 2026, cost rises GBP500 mil to GBP20 bil, though UK government remains supportive. Company also takes 20%ownership interest in Sizewell C nuclear plant project as UK wants 25% of country's power from nuclear by 2050 (currently 16%). Quality Grade C (no change). Breakdown: 1. Payoutfollows profitability, with management keeping conservative due to CAPEX needs and French government ownership (68.07% French Republic, 12.02% BPI France SA). Managementsticks to plan despite expected EUR16 bil hit to EBITDA in 2022 from weaker French nuclear performance. 2. Revenue Reliability depends on running nuclear power fleet efficiently.Competition and regulation pressure margins. Operating issues with operating plants and building costs for new construction are increasingly expensive. 3. Regulatory Relations generallysteady in France as company builds more renewable energy and outlook for nuclear improves, UK is also supportive but rising costs put both to the test this year. 4. Near-Term RefinancingRisk is reduced with $5.687 bil ($8.402 bil three months ago) in maturing debt through end of 2023. Cost of debt capital is still low with bonds maturing January 2114 yielding 4.07%, thoughup from 3.32% three months ago. 5. Operating Efficiency depends on nuclear plant performance to large extent, 2022 EBITDA margin expected to drop to 15.5% this year from 19.4% in2021 and 27% in 2020.

Emera(OTC: EMRAF, TSX:EMA)

Buy<45 51.3 4.07 19.04 7.6 0.66 64.9 A 1/31/2022 2/15/2022 5.7 61.9 Intl Energy

Q1 2022 Return: 16.74%. Dividend increase in October. Next earnings expected May 12. Sells its 52% stake in Dominica Electricity Services Ltd to government of Dominica, deal appearsto be on amicable terms and will allow company to focus on key US and Canada utility CAPEX. Quality Grade A (no change). Breakdown: 1. Payout ratio is conservative and fully backedby regulated utilities with cost of service rates. Has 4-5% annual dividend growth target through 2024. 2. Revenue Reliability can be impacted by volatility of demand and exchange ratevolatility. Florida utility is most important source of earnings (46%), Nova Scotia is 25%, gas utilities and infrastructure (20%) is steady with Maritime Link powerline earning return oninvestment, though gas utility earnings affected by volumes. Florida electric unit is highly residential and customer growth is robust (2% in 2021). Management targets CAD9.4 bil in CAPEXthrough 2024 with 70% targeted to Florida units as primary driver of growth. 3. Regulatory Relations strong in US and Canada. Final resolution of Maritime Link costs is a big plus. 4. Near-Term Refinancing Risk manageable with $1.5 bil in maturing debt through 2023. Cost of long-term debt capital is still low with June 2050 bonds yielding 3.78%, though up from 3.11% threemonths ago. 5. Operating Efficiency steady with EBITDA margin expected at 41.5% for 2022.

Enbridge(NYSE: ENB, TSX:ENB)

Buy<45 46.71 5.79 34.6 16.98 0.86 64.3 A 2/14/2022 3/1/2022 8.7 54.6 Energy Pipelines



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Q1 2022 Return: 19.67%. Dividend increase in December. Next earnings expected May 6. Alberta government grants company rights to develop carbon sequestration hub west ofEdmonton, co-developed and co-owned with First Nations partners in Canada, which should ease permitting and construction. Quality Grade A (no change). Breakdown: 1. Payout backedby conservative assumptions, dividend is likely to grow at low to mid-single digit rate next few years under management's 5-7% annual distributable cash flow growth guidance through2024. 2. Revenue Reliability protected by capacity constraints in Canada with liquids pipelines 53% of assets, downstream focus of US natural gas pipeline systems (utilities are principalcustomers) and reliable sales from regulated natural gas utilities (42% assets) and contracts on renewable power generation (5%). Asset diversification is also a plus as is primary relianceon fee-based revenue. Asset expansion is primary driver of growth, acquisitions more important now given constraints on new construction. 3. Regulatory Relations good in Canada, stablein US as management increasingly focuses on less controversial expansion projects. Line 5 pipeline looks like to keep operating as company makes plans to reroute, though Michigan stillwant to shut it down with court ruling. 4. Near-Term Refinancing risks reduced with $8.364 bil ($10.214 bil three months ago) in maturing debt through end of 2023, still a low cost of long-term debt capital with bonds due July 2080 yielding 6.66% to maturity, though was 6.23% three months ago. 5. Operating Efficiency protected by diversification, EBITDA margin expected at31.1% in 2022, up from 25.4% in 2021.

ENEL(OTC: ENLAY, Italy:ENEL)

Buy<12 6.82 3.38 -30.28 -10.5 0.21 69.5 B 7/18/2022 8/10/2022 10.3 63.2 Intl Energy

Q1 2022 Return: -13.77%. Semi-annual dividends declared for payment in 2022 are 6.2% higher than in 2021. Next earnings May 4. Unit in Italy wins European Union funding agreement tobuild and operate largest factory in Europe for producing high performance bifacial photovolatic modules, expanding current capacity of 200 megawatts annually to 3 gigawatts. Furtherintegration of company's power generation and development in renewable energy. CEO says company will exit Russia in "a matter of months," unit is less than 1% of overall grossoperating profit so impact on profitability minimal. Management announces final 2021 results largely affirming preliminary figures released earlier, including 7% lift in EBITDA, 8% higher netincome, 27.5% boost in investments from 2020. Quality Grade B (no change). Breakdown: 1. Dividend payout is conservative and backed by contracted power sales and regulated utilities,boosted beyond 2021 by asset growth in renewable energy, mid to upper single digit percentage increases next few years. 2. Revenue Reliability anchored by contracted renewable energyin Europe, the Americas and elsewhere under power sales agreements, regulated utilities. Management has limited impact of currency devaluation on earnings with natural and financialhedges. Renewable power is advantaged globally, company also hedges commodity price exposure. Buildout of renewable energy generation is primary growth driver globally, thoughcompany also has big investment in grid. 3. Regulatory Relations no major issues despite presence in many countries as company navigates challenges well, including ongoing Europeanpower crisis, leftward shift in Chilean politics, Argentine economic turmoil. 4. Near-Term Refinancing risk elevated but appears manageable with $11.096 bil in maturing debt by end of2023. Cost of long-term debt capital is still low with May 2047 bonds yielding 4.21% to maturity, though was 3.58% three months ago. 5. Operating Efficiency solid with EBITDA marginexpected at 23.7% in 2022, up from 22% in 2021.

Energy Transfer LP(NYSE: ET)

Buy<15 11.23 6.23 52.22 23.68 0.18 33.8 C 2/7/2022 2/18/2022 -19.7 55.8 Energy Pipelines

Q1 2022 Return: 38.09%. Dividend raised 14.8%. Next earnings expected May 6. Centerpoint Energy has now sold all shares of company, eliminating all overhang from acquisition of theformer Enable Midstream. Reaches 20-year LNG sales agreement with China's ENN NG and ENN Energy, will sell from Lake Charles LNG project starting in early 2026. Quality Grade C(no change). Breakdown: 1. Current level of dividend is well backed by free cash flow, now raising again with debt reduction targets met (debt to EBITDA 3.07 times), expect double-digitgrowth next few years. 2. Revenue Reliability depends on ability of shippers to make good on capacity based contracts, company weathered 2020 and higher oil prices help in 2021. EnableMidstream acquisition adds valuable scale, opportunities to boost revenue and cut costs. Company has adapted to current modest volumes environment, would benefit greatly fromincreases. Asset expansion is also a driver of growth as Mariner East comes on stream this year. Sale of Canadian unit streamlines operations. 3. Regulatory Relations a mixed bag withsome states blocking/impeding construction efforts, Texas is supportive. Dakota Access Pipeline looks set to remain open. Fines levied so far for environmental reasons are not material. 4.Refinancing Risk is reduced again as company pays off $6.3 bil in 2021, still has $5.287 bil in maturing debt through end of 2023. Cost of long-term debt capital is still generally low withMay 2050 bonds yielding 4.86% to maturity, though up from 4.25% three months ago. 5. Operating Efficiency improves with cost cutting, EBITDA margin expected at 16.2% for 2022 looksconservative.



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Enersis Americas(NYSE: ENIA)

Buy<7.50 5.51 1.3 -35.08 -0.9 0.04 45.9 B 1/20/2022 2/11/2022 -17.4 29.7 Intl Electricity

Q1 2022 Return: 10.52%. Next semi-annual dividend in April, likely to be lower than in 2021. Next earnings expected May 3. Quality Grade B (no change). Breakdown: 1. Semi-annualpayout set conservatively and in line with earnings. Decrease possible this year as management may decide to hold in more cash. 2. Revenue Reliability improving from cost cutting andinvestment, currency volatility in South America always a risk but country diversification is a plus. Primary driver of earnings is buildout of renewable energy generating capacity, has 2.7gigawatts under construction, 69% of 15.9 GW total capacity is now renewables. 3. Regulatory Risk is complex with presence in multiple countries. Brazil is most important at 51% ofEBITDA, Colombia 30%, Peru 11%, Central America 5%. Argentina (3%) is a concern but company has navigated challenges well in the past. 4. Near-Term Refinancing risk is manageablewith $601 mil in maturing debt through end of 2023. Cost of long-term debt capital is modest for developing world company and is flat since beginning of the year with bonds of October2029 yielding 5.22% to maturity, was 5.39% three months ago. Parent Enel SpA is ultimate financial backstop for company owning 81.61% of shares. 5. Operating Efficiency at risk toemerging market economies but EBITDA margin expected to be solid at 28.1% in 2022.

Enersis Chile(NYSE: ENIC)

Buy<3 1.47 0.35 -60.02 -21.14 0.01 258.5 C 1/20/2022 2/11/2022 -69 55.7 Intl Energy

Q1 2022 Return: -12.36%. Next semi-annual dividend in May, likely to be lower than last year as management holds in cash. Next earnings May 3. May sell ownership stake in powertransmission unit to capture strong valuation. Quality Grade C (No change). Breakdown: 1. Semi-annual payout is conservative and follows earnings. 2. Revenue Reliability backed byregulated Chile franchise, power generation is now 48% contracted to regulated customers under average contract life of 11 years. Renewable energy buildout is primary growth driver,connects 900 megawatts of projects in 2021 and has "advanced" 1.4 gigawatts of additional projects. Mining companies are major customers. 3. Regulatory Risk is highly uncertain withpolitical left ascendant in Chile, but there is support for aggressive renewable energy investment. High natural gas costs are a risk with country in historic drought and limiting hydropoweroutput. 4. Near-Term Refinancing risk is low with $1.894 bil in debt maturities through 2023, cost of long-term debt capital continues to rise though still manageable with bonds of February2037 now yielding 6.2% to maturity, up from 5.23% three months ago. Enel SpA is ultimate backstop for credit owning 64.1% of shares. 5. Operating Efficiency challenged by Chileandrought but EBITDA margin still expected to improve to 25.8% this year.

Engie(OTC: ENGIY, FP:ENGI)

Buy<16 12.55 6.08 -11.19 -16.72 0.97 57.4 C 4/25/2022 5/4/2022 -9.4 49.5 Intl Energy

Q1 2022 Return: -10.75%. Annual dividend of 85 Euro cents declared for 2022 is 60.4% higher than year ago rate, up 6.3% from cancelled 80 Euro cents for 2020. Next earnings May 17.Completes $800 mil financing for contracted 665 megawatts capacity North America solar and wind projects. Quality Grade C (no change). Breakdown: 1. Dividend set conservatively withmanagement prioritizing debt reduction and renewables investment, recent much larger increases basically restore pre-pandemic rate. 2. Revenue Reliability improves with growth ofcontracted renewable energy, contract business weathers exchange rate volatility in developing world, focus on renewables reduces cyclical exposure of overall earnings. Russianexposure is primarily on natural gas purchases but company also has EUR987 mil of credit risk if Nord Stream 2 pipeline project becomes insolvent. Asset expansion is primary growthdriver, with management setting 2022 EBITDA guidance range of EUR10.7 to EUR11.1 bil. 3. Regulatory Relations stable in wide range of jurisdictions, France is still the most importantand support during power crisis is encouraging. Russian sactions 4. Near-Term Refinancing risks manageable with $5.257 bil ($6.298 bil three months ago) in maturing debt through end of2023, still a low long-term debt capital with October 2060 bonds yielding 3.09% to maturity, though up from 2.45% three months ago. 5. Operating Efficiency tied mostly to ability to bring onnew projects, EBITDA margin expected to rise to 18% this year.

Eni(NYSE: E, IM: ENI)

Buy<30 30 4.35 30.34 2.63 0.94 83.7 B 5/23/2022 6/8/2022 -6.8 42.5 Super MajorOil/Gas



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Q1 2022 Return: 5.79%. Semi-annual dividend declared for payment in May is 79.2% higher than paid a year ago. Next earnings April 29. Chemicals unit increases stake in "green" firmNovamont to 35% from 25%. Boosts resource base at major offshore Angolan field. Russian exposure is buying natural gas, management says it won't make purchases in Rubles,demonstrating lack of exposure to country. Quality Grade B (No Change). Breakdown: 1. Current semi-annual payout is well supported at $40 per barrel oil, at least upper single digitpercentage increases likely going forward even as management financial policy will drive net debt to zero by 2024. Launching EUR1.1 bil share buyback as well. 2. Revenue Reliabilityhelped by downstream and renewable energy investment partly offsetting volatile commodity prices, production interruptions in politically volatile places. Natural gas is primary driver ofgrowth, plans 60% of output to be gas by 2030, 90% by 2040. Plans EUR7 bil yearly CAPEX through 2025, will boost renewable energy development as well. 3. Regulatory Relations arealways a concern given volatile environments where company operates, especially Libya and Nigeria, risk to overall company is offset by geographic diversification. 4. Near-TermRefinancing Risk is elevated but manageable with $6.237 bil in maturing debt by end of 2023. Cost of debt capital remains low with Oct 2040 bonds yielding 4.49% to maturity, though upfrom 3.69% three months ago. 5. Operating Efficiency helped by cost cutting, EBITDA margin expected at 21.6% for 2022, may be conservative.

Entergy Corp(NYSE: ETR)


Q1 2022 Return: 4.54%. Dividend increase in October. Next earnings April 27. Completes sale of bonds securitizing extraordinary storm costs in Texas, Moody's rates Aaa with stableoutlook. Arkansas utility to ask for 7.5% rate hike to cover higher fuel costs. Quality Grade A (No Change). Breakdown: 1. Payout supported conservatively by regulated electric utilityoperations that are now substantially all of ongoing earnings. Management guides to dividend growth of 5-7% a year going forward. 2. Revenue Reliability strong with utility operationsinvesting in energy transition in four states. Residential utility revenue is 40.2% of retail sales with government 2.6%. Key economic exposure is 29% revenues from industrial but energyand chemicals related customers have been resilient. Key driver of growth is utility CAPEX, service territory continues to see strong customer growth (1% a year) and industrial sales growth(up 8.9% in 2021). 3. Regulatory Relations are strong, approval to securitize $5 bil storm costs is a test but seems to progress well. 4. Near-Term Refinancing risk is manageable with$3.414 bil in maturing debt to end 2023, cost of long-term debt capital is still low with bonds due March 2051 yielding 3.63% to maturity, though up from 3.16% three months ago. 5.Operating Efficiency now reflects strong utility operations, EBITDA margin expected 36% in 2022.

Enterprise ProductsPartners LP(NYSE: EPD)

Buy<33 26.4 7.05 23.36 15.04 0.47 58.8 A 4/28/2022 5/12/2022 1.7 53.2 Energy Pipelines

Q1 2022 Return: 19.65%. Dividend raised 3.3%. Next earnings expected May 3. Fitch affirms BBB+ credit rating with stable outlook, cites well integrated operations with only 5% ofoperating margin affected by commodity price volatility. Quality Grade A (no change). Breakdown: 1. Management has shifted back to a policy of modest dividend growth that's sustainableeven under very conservative assumptions, ramps up ongoing stock buyback to $2 bil total. 2. Revenue Reliability backed by investment grade counterparties and fact that assets aremostly well away from the wellhead. Key growth driver is asset expansion, now closed Navitas Midstream acquisition positions partnership to capitalize on increased LNG and NGL exportsby boosting gas gathering treating and processing infrastructure in Permian Basin of West Texas. 3. Regulatory Relations good with no major issues at present. 4. Near-Term RefinancingRisk is reduced again with $1.25 bil in maturing debt through end of 2023, was $2.65 bil three months ago, $4.15 bil six months ago. Still low cost of long-term debt capital with bonds dueOct 2054 yielding 4.31% to maturity, though up from 3.73% three months ago. 5. Operating Efficiency strong as assets are managed well, EBITDA margin expected at 19.5% for 2022though likely to rise with Navitas acquisition synergies.

Essential Utilities(NYSE: WTRG)

Buy<50 51.47 2.08 16.12 -0.78 0.27 64.4 A 5/12/2022 6/1/2022 7 54.1 Regulated Water



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Q1 2022 Return: -4.27%. Dividend increase in July. Next earnings May 9. Quality Grade A (No Change). Breakdown: 1. Payout ratio low, supports upper single digit dividend increases nextfew years even if some acquisitions are delayed/derailed. Management guides to 5-7% compound annual earnings growth through 2024. 2. Revenue Reliability solid as managementcontinues to successfully integrate acquisitions. Regulated water revenue is 3.4% industrial and 16.4% commercial with rest residential, gas also heavily residential with industrial providinglittle margin. Wastewater service revenue (11.8% of water) is likely much less economically sensitive. Primary driver of growth is acquisitions, with deals representing 235,000 of potentialnew customers awaiting regulatory approval. Company also expects 6-7% compound annual water rate base and 8-10% natural gas distribution rate base growth annually through 2024. 3.Regulator Relations good, approval of DELCORA water system acquisition in courts is biggest ongoing test. Pennsylvania state administrative law judge issues opinion that return on equityshould be cut to 8.9%, company is contesting. 4. Near-Term Refinancing Risk is managable with $1.097 bil in maturing debt through end of 2023, cost of debt low with bonds of April 2050yielding 3.91% to maturity, though up from 3.31% six months ago. 5. Operating Efficiency strong, EBITDA margin expected at 50% in 2022, up from 48% in 2021.

Evergy Inc(NYSE: EVRG)

Buy<60 71.11 3.22 20.81 6.22 0.57 64.5 A 3/4/2022 3/21/2022 7 54.9 Regulated Electric

Q1 2022 Return: 0.44%. Dividend increase in November. Next earnings expected May 6. Sells 10-year bonds at better than expected coupon yield of 3.75%. Quality Grade A (No change).Breakdown: 1. Payout ratio is conservative and supported by regulated utility operations. Management guides to 6-8% annual earnings growth through 2026, commensurate dividendincreases. 2. Revenue Reliability secured by solid utility operations, wind power investment is a key earnings driver. Residential customers are 37% of revenue, commercial 35% andindustrial just 12%. Transmission is also secure at 6%. Key driver of growth is $10.7 bil in planned utility CAPEX through 2026, along with cost cutting. Replacing coal with wind is primaryfocus. 3. Regulatory Relations good in Kansas and Missouri with no immediate issues. Legislation in both states supports rate base growth by replacing coal fired power plants withrenewables and natural gas. Missouri rate case for 2023 will be next key test. Regulators wary of 4.15% stake from activist investor Elliott Management, as well as any talk of M&A. 4. Near-Term Refinancing risk is low with $960 mil maturing debt through end of 2023, cost of debt capital is still low with April 2050 bonds yielding 3.79% to maturity, though was 3.15% threemonths ago. 5. Operating Efficiency improves with cost reduction, EBITDA margin expected at 43% in 2022.

Eversource Energy(NYSE: ES)

Buy<90 92.53 2.76 9.15 4.02 0.64 66.1 A 3/2/2022 3/31/2022 6 57.3 RegulatedElec/Gas

Q1 2022 Return: -2.37%. Dividend raised 5.8%. Next earnings expected May 10. Quality Grade A (No Change). Breakdown: 1. Payout ratio conservative, supports mid-single digit annualgrowth, offshore wind projects increasingly likely to accelerate growth. Management guides to 5-7% annual earnings and commensurate dividend growth. 2. Revenue Reliability solid.Transmission revenue tied to investment not volumes. Electricity and gas distribution revenue is decoupled from volume sales in Connecticut, Massachusetts, has other mechanisms inNew Hampshire. Water revenue also protected by multiple riders. Offshore wind projects now appear likely to start delivering growth by 2023, on time and on budget so far. 3. RegulatoryRelations are good in all jurisdictions. 4. Near-Term Refinancing risk is manageable with $2.41 bil debt maturities through 2023, still low cost of debt capital with January 2050 bondsyielding 3.9% to maturity, was 3.32% three months ago. 5. Operating Efficiency driven by efficiencies in regulated utility business, EBITDA margin expected at 36.1% in 2022 up from34.9% in 2021.

Exelon Corp(NSDQ: EXC)

Buy<45 50.13 2.69 61.61 25.13 0.34 54.6 A 2/24/2022 3/10/2022 2 55.6 Wholesale Power

Q1 2022 Return: 16.44%. Combined dividend of company and Constellation is up slightly from pre-split payout, next increase likely in early 2023. Next earnings expected May 5. QualityGrade A (no change). Breakdown: 1. Payout ratio is conservative and supported by utility earnings, management guides to annual earnings and dividend growth rate of 6-8% through 2025.2. Revenue Reliability long-term trend is continued improvement as regulated utility now expected to have 8.1% average annual rate base growth fueled 65% by tracker mechanisms.Utilities are purely distribution, Illinois and Maryland have revenue decoupling for electricity and gas. Pennsylvania, Delaware and New Jersey affected by volumes. Primary driver of growthis $29 bil of target rate base investment through 2025. 3. Regulatory Relations good with company boosting return on equity with multiple rate cases. 4. Near-Term Refinancing Risk ismanageable with $4.56 bil in maturing debt through end of 2023, stil has a low cost of long-term debt capital with June 2050 bonds yielding 3.57% to maturity, though up from 3.02% threemonths ago. 5. Operating Efficiency solid, EBITDA margin expected at 37.9% for 2022.



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ExxonMobil Corp(NYSE: XOM)

Buy<85 86.84 4.05 63.7 27.48 0.88 64.6 A 2/9/2022 3/10/2022 2.2 23.1 Super MajorOil/Gas

Q1 2022 Return: 36.41%. Dividend increase in October. Next earnings April 29. May sell interests in Bakken shale valued upwards of $5 bil. Quality Grade A (No Change). Breakdown: 1.Payout security increases greatly at $50 plus oil, dividend growth and stock buybacks likely to step up next few years with $10 bil now underway. 2. Revenue Reliability tied to commodityprices and demand for refined products as company sticks with oil and gas, prepares for price surge by mid-decade. Exiting Russian ventures would likely trigger writeoff of $4.1 bil, butonly a 1-2% hit to earnings says CFO. Management boosts annual cost savings target by 50% to $9 bil per year, plans $20-$25 bil in annual CAPEX as primary driver of growth through2027. 3. Regulatory challenges appear manageable, despite company being caught on wrong end of Russia sanctions. Will spend $15 bil over next six years to cut emissions at all facilitiesand plans big hydrogen and carbon capture investment. 4. Near-Term Refinancing risk is very low for company size with $5.522 bil in maturing debt through end of 2023. Cost of long-termdebt capital is still very low with bonds of March 2050 yielding 3.62% to maturity, though was 3.2% three months ago. 5. Operating Efficiency improves with cost cutting, EBITDA margin21.3% expected this year, up from 15.7% in 2021.

Ferrellgas PartnersLP(OTC: FGPR)

Buy<15 16 N/A 10.5 6.67 N/A 0 C 12/7/2018 N/A N/A 112.2 PropaneDistribution

Q1 2022 Return: 16.20%. No dividend. Next earnings expected June 14. Blue Rhino brand expenads to another four cities with focus on supplying home grilling, now has operations in 17US cities with home delivery service. Quality Grade C (no change). Breakdown: 1. No distribution, debt maintenance will take precedence for now but partnership is again generatingpositive distributable cash flow. 2. Revenue Reliability affected by weather, potentially by sales to commercial customers. Most recent results show management is successfully buildingscale while cutting costs. Primary driver is customer growth. 3. Regulatory Relations stable with no outstanding issues as company is out of bankruptcy. 4. Near-Term Refinancing Risk lowas has no outstanding maturities until 2025. Bonds maturing in April 2026 yield elevated 6.97% to maturity, was 6.5% three months ago. 5. Operating Efficiency depends on cost cutting butaffected by weather, EBITDA margin 18.5% for most recent 12 months.

First Solar(NSDQ: FSLR)

Hold 77.61 N/A -4.41 -8.35 N/A 0 C N/A N/A N/A 6.3 Utility Technology

Q1 2022 Return: -3.92%. No dividend. Next earnings expected April 29. In talks with SunPower to develop panel just for rooftop use, could be profitable business line for company as itincreases production capacity. Quality Grade C (no change). Breakdown: 1. No dividend. 2. Revenue Reliability supported by US government protection from tough global competition withnew investigation into Asian competitors launched, supply chain disruptions are a continuing risk as is a potential relaxation of trade rules and tariff walls. Company sees robust ordergrowth as expands production capacity but competition hits margins. 3. Regulatory Relations appear supportive globally, with company well placed to take advantage of US/China tradetensions, would be very vulnerable to a rollback. 4. Near-Term Refinancing risk is a non-issue now with no maturing debt before 2026. 5. Operating Efficiency subject to competitiveconditions, EBITDA margin now expected at just 8.2% this year, down from 25.9% in 2021.

FirstEnergy Corp(NYSE: FE)

Buy<40 47.47 3.29 41.2 15.72 0.39 60 B 5/5/2022 6/1/2022 2.2 73.6 RegulatedElec/Gas



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Q1 2022 Return: 11.21%. No dividend increase since March 2020. Next earnings expected April 22. Sale of 20% stake in power transmission system for $2.4 bil in proceeds will restorebalance sheet strength. Quality Grade B (No Change). Breakdown: 1. Payout ratio is conservative, increase likely this year with management guiding to 6-8% annual earnings growth nextfew years. 2. Revenue Reliability backed by transmission rates set by return on investment. Revenue no longer decoupled from power demand in Ohio but change may benefit utility ineconomic recovery as industrial demand (37.7% total volume sales, 12.5% revenue) is heavy in state. Rate base is mostly residential across all states. 3. Regulatory Relations appearstable with major issues in Ohio bribery case now apparently settled. 4. Near-Term Refinancing Risk is reduced again with $842 mil ($1.706 bil three months ago) in maturing debt through2023. Cost of debt capital is still low with March 2050 bonds yielding 4.31% to maturity, though up from 3.65% three months ago. 5. Operating Efficiency steady, EBITDA margin expectedat 34.3% this year, up from 30.7% in 2021.

Fortis(NYSE: FTS, TSX:FTS)


Q1 2022 Return: 3.42%. Dividend increased 5.9%. Next dividend increase in September. Next earnings May 4. Quality Grade A (no change). Breakdown: 1. Payout is conservative and wellcovered by regulated revenue from utilities and power transmission assets (93% revenue from transmission and distribution of electicity and natural gas), transmission earns a return oninvestment and not hit by volumes. Management guidance is 6% annual earnings and dividend growth through 2026. 2. Revenue Reliability is strong with diversification of assets, multiplesystem investment opportunities. Currency volatility must be managed with about 63% of business in US, 34% Canada and the rest in the Caribbean. Regulated utility in Arizona is affectedby system volumes, resilient so far to pandemic pressures. Alberta natural gas unit has riders that insulate earnings from volume changes (80% fixed). Primary driver of growth is utilityCAPEX of CAD20 bil through 2026. 3. Regulatory Relations are solid in both the US and Canada, including Federal Energy Regulatory Commission setting transmission returns. 4. Near-Term Refinancing risk is manageable with $1.429 bil in maturing debt through end of 2023. Still has a low cost of long-term capital with April 2055 bonds yielding 3.68% to maturity, thoughwas 3.24% three months ago. 5. Operating Efficiency improves by cost controls at all operations, EBITDA margin expected at 44.9% for 2022, up from 41.5% in 2021.

Fortum(OTC: FOJCF, FH:FORTUM)

Hold 18.42 6.88 N/A N/A 1.14 54.6 D 3/29/2022 4/6/2022 0.7 55.8 Int'l Electricity

Q1 2022 Return: -37.58%. Annual dividend raised 1.8%. Next earnings May 12. Selling Oslo district heating business for $1.15 bil to build cash. Permit process to extent license fo Loviisanuclear facility to 2050 will take a year says management. Wins 200 megawatt capacity deal in India solar auction. S&P puts credit rating on watch negative, cites Uniper unit's exposure toRussia at 20% of 2021 comparable operating profit. Quality Grade to D from C on worsening situation in Russia and growing risk of big hit to earnings as well as credit rating. Breakdown: 1.Annual dividend coverage is thin, commodity price exposure high and capital needs are great. Dividend cut risk is elevated for next year. 2. Revenue Reliability risk is mainly exposure toelectricity pricing, Uniper assets and Russian exposure. Electricity generation is 75% of EBITDA with rest district heating and waste. Fitch estimates 30-35% of EBITDA is contracted orincentivized, reducing risk. Rest is heavily impacted by volumes. Hedging activity reduces immediate exposure as Fortum protects most expected output. 3. Regulatory Relations complexas company deals in many countries, Russia sanctions following Ukraine invasion force company to withdraw from country at potentially high cost. 4. Near Term Refinancing needs are stillelevated with $11.53 bil in maturing debt through end of 2023. Cost of debt capital is still low but has jumped with June 2043 bonds yielding 3.62% to maturity (1.54% three months ago). 5.Operating Efficiency will depend on strong power plant performance and navigating volatile wholesale electricity prices, EBITDA margin now expected at just 4.1% this year.

FrontierCommunicationsCorp(NSDQ: FYBR)

SELL 28.79 N/A N/A -4.03 N/A 0 F N/A N/A N/A 63.4 Communications



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Q1 2022 Return: -6.17%. No dividend. Next earnings expected April 29. Quality Grade F (No Change). Breakdown: 1. No payout as post-bankruptcy company has large CAPEX needs tobuild fiber broadband network needed to offset rapidly falling revenue from legacy business. 2. Revenue Reliability sliding as "legacy" business continues to contract, especially withconsumers but also businesses as competitors are much larger and stronger. Fiber network sales also fell in 2021 in worrisome sign that broadband is falling to competition as well. 3.Regulatory Relations likely to remain testy with regulators scrutinizing service concerns. 4. Near Term Refinancing risk appears low for now with just $25.8 mil in debt maturities by end of2023 but interest expense rose 7.1% last year nonetheless. Bonds of November 2031 yield 6.91% to maturity, up from 5.97% three months ago. 5. Operating Efficiency is still a racebetween cost cutting and falling revenue, EBITDA margin now expected at 35.3% in 2022, was negative last year.

FuelCell Energy(NSDQ: FCEL)

SELL 5.39 N/A -57.46 5.69 N/A 0 F N/A N/A N/A 12.2 Utility Technology

Q1 2022 Return: 10.77%. No dividend. Next earnings expected June 10. Management targets $300 mil in annual revenue by 2025, $1 bil by 2030, plans $40-$50 mil CAPEX this year.Quality Grade F (No Change). Breakdown: 1. No payout. 2. Revenue Reliability remains erratic, may improve as a result of management efforts to build more recurring revenue streamswith contracted services, as well as utility-scale power purchase agreements to grow generation portfolio. Rising backlog last year a good sign as are relationships with super major oils likeChevron in hydrogen investment, though most numbers go in wrong direction in FYQ1 (end Jan 31). 3. Regulatory Relations good as governments support fuel cells and other clean energyalternatives in many jurisdictions, but survival does depend on government support for clean energy to continue growing rapidly. Appears to have special support from Connecticutpoliticians. 4. Near-Term Refinancing has been reduced by recent efforts with only perpetuities now. 5. Operating Efficiency improves with scale and focus on recurring revenue, key is tonot run out of money. EBITDA margin -45% for 12 months ending Jan 31, expected at -39.7% for fiscal year ending October 31, 2022.

Hannon ArmstrongInfrastructureCapital(NYSE: HASI)

Buy<50 42.81 3.5 -18.63 -11.95 0.38 79.8 B 4/1/2022 4/11/2022 2.5 61.4 RenewableEnergy BDC

Q1 2022 Return: -10.71%. Dividend raised 7.1%. Next earnings expected May 4. Quality Grade B (no change). Breakdown: 1. Payout safely supported by stable business model that'srapidly building scale. Management has increased guidance dividend growth rate to 5-8% for period through 2024 (was 3-5%). 2. Revenue Reliability backed by contracts with investmentgrade counterparties, 62% behind the meter with investment grade entities, 38% grid connected with utilities as customers under power purchase agreements. Only 0.3% of portfolio wasimpaired in pandemic year, proof of resilience of business model. Financial stakes in contracted Clearway and Engie renewables projects produce steady revenue and ultimately a lucrativeopportunity to recycle capital. Key driver of growth is asset expansion with company closing on $1.7 bil of investment in 2021, guidance for annual distributable earnings growth is 10-13%through 2024, was 7-10%. Company appears to be increasing margins as it adds scale and financial power. 3. Regulatory environment very favorable for energy efficiency and renewableson state, local and federal level. Appeal of projects grows with higher energy prices. 4. Near-Term Refinancing risk is low with $167 mil ($363 mil six months ago) in maturing debt throughend of 2023. Company has cut debt to equity to 1.6 times from 1.8 times a year ago. Yield to maturity on bonds due September 2030 is still modest at 5.06% but is up from 3.97% threemonths ago. Likely the result of BB+ (sub investment grade) credit rating but risk is overstated. 5. Operating Efficiency improves with scale. Operating income margin projected at 69.5%this year.

Hawaiian ElectricIndustries(NYSE: HE)

Buy<40 43.5 3.22 5.73 2.67 0.35 66.7 B 2/23/2022 3/10/2022 3.1 51.7 RegulatedElec/Gas



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Q1 2022 Return: 2.80%. Dividend raised 2.9%. Next earnings expected May 6. Quality Grade B (No change). Breakdown: 1. Dividend is well supported by utility (70-75% earnings),banking unit is conservatively structured with local loans and deposit building as primary strategy. Low single digit percentage growth is likely to continue next few years. 2. RevenueReliability depends on continuing regulatory support, bank unit is conservative and healthy. US military is major supporter of state's economy, offsets downside of less tourism sincepandemic hit. Utility revenues are decoupled from power sales, limiting exposure to drop in sales from less tourism, for example. Banking presents more cyclical risks. Primary driver ofgrowth is state transition to renewable energy, now has 1 gigawatt of solar on system with 21% of customers operating rooftop systems. 3. Regulatory Relations stable under newperformance plan so long as company keeps pushing renewable energy goal of 100% by mid-century, spiking fuel costs are always a test of continued regulatory support. 4. Near TermRefinancing Risk is low with $50 mil maturing debt before end of 2023. Low cost of long-term debt capital with bonds of October 2045 yielding 4.24% though up from 3.63% three monthsago. 5. Operating Efficiency solid, EBITDA margin expected at 20.3% in 2022.

Huaneng PowerInternational(NYSE: HNP, HK:902)

Hold 17.65 5.53 34.72 -21.38 1.11 465.3 C 7/1/2021 9/10/2021 22.6 70.8 Int'l Electricity

Q1 2022 Return: -36.09%. No dividend declared for calendar year 2021 to be paid in 2022. Next earnings expected April 27. Takes $30 mil asset and credit impairment losses in 2021,swings to an annual loss on 51% increase in fuel costs for generation, more than offsets positive impact of 13% higher electricity generation. Quality Grade C (No change). Breakdown: 1.Annual dividend follows profits, direction of fuel costs and ability to recover them is always key. Paying dividend for this year will depend on cost recovery and cheaper purchase contractsfor coal. 2. Revenue Reliability is generally solid as Chinese power demand grows, especially from industry. Long term challenge is from energy transition with power plants still heavily coalbut Chinese government is supportive and company is likely to weather it. Margins heavily affected by changes in coal prices from year to year. 3. Regulatory Relations solid long-term asChinese government is ultimately supportive of company's steady move to renewables. 4. Near-Term Refinancing risk reduced with $1.42 bil ($2.93 bil three months ago) in maturing debtthrough end of 2023. Cost of debt capital modest with February 2030 bonds yielding 3.63% to maturity though up from 2.89% three months ago. 5. Operating Efficiency solid but higher fuelcosts cut 2021 EBITDA margin to 6.9% in 2021, recovery to 20.4% is expected this year.

Hydro One(TSX: H, OTC:HRNNF)

Buy<26 28.06 2.96 22.27 11.9 0.27 65.2 A 3/15/2022 3/31/2022 6.9 57.3 Int'l Electricity

Q1 2022 Return: 6.2%. Dividend increase in May. Next earnings expected May 6. Quality Grade A (no change). Breakdown: 1. Payout ratio is conservative and backed by stable businessmix, growth rate will follow management guidance of 4-7% annual earnings growth. 2. Revenue reliability backed by 49% of assets in transmission business earning return on investment(98% of Ontario infrastructure). Electricity distribution business revenue is affected by volumes but has 52% residential and 8% "embedded distributors" versus just 11% large users,shielding it against economic cycles. Rate base investment provides reliable growth. Primary driver of growth is utility CAPEX and acquisitions of smaller nearby systems, added $1 bil ofelectricity transmission and $738 mil utility distribution investment in 2021. 3. Regulatory Relations favorable in Ontario, company now receiving timely approvals of acquisitions of smallerutilities in the province. 4. Refinancing Risk is reduced with $479 mil ($943 mil three months ago) of maturing debt through 2023, still has a low cost of long-term debt capital with January2064 bonds yielding 4.03% to maturity, though was 3.33% three months ago. 5. Operating Efficiency strong with EBITDA margin expected at 34.7% in 2022, up from 33.8% in 2021.

Iberdrola(OTC: IBDRY, SM:IBE)

Buy<55 46.9 2.47 -11.25 1.8 0.76 54.8 A 1/10/2022 2/14/2022 7.4 46.5 Int'l Electricity



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Q1 2022 Return: -5.90%. Semi-annual dividend declared for July payment is 6.3% higher than a year ago. Next earnings April 27. UK regulators OK construction of 1.7 gigawatt offshorewind, England/Scotland power cable. Starts construction of solar facility in Portugal, will develop onshore wind facility in Australia (145 megawatts of capacity) as continues massive globalrenewable energy construction. Quality Grade A (No change). Breakdown: 1. Payout ratio is conservative, backed by regulated utilities and contracted renewable generation sold toutilities/government entities. Mid to upper single digit annual growth likely to continue over next few years despite heavy CAPEX as new asset additions lift cash flow. 2. Revenue Reliabilityis backed by regulated utility investment and contracted renewable power sales, growth from new wind and solar adds new sources. Primary driver of growth is asset expansion withEUR9.14 bil in CAPEX in 2021, now has 38 GW of global renewable energy capacity after 3.5 GW addition last year. 3. Regulatory Relations are good globally, new European renewablestarget (32% by 2030) is a potential growth driver. Avangrid unit in US is still likely to complete PNM acquisition next year. Lack of Russia exposure is a plus. 4. Near-Term Refinancing riskmanageable with $7.956 bil in maturing debt through end of 2023. Company has low cost of debt capital with September 2049 bonds yielding 3.86% to maturity, though up from 3.19%three months ago. 5. Operating Efficiency increasing with scale. EBITDA margin still expected at 28% in 2022.

IdaCorp(NYSE: IDA)


Q1 2022 Return: 2.47%. Dividend increase in October. Next earnings expected April 29. Quality Grade A (No Change). Breakdown: 1. Dividend payout ratio is conservative and backed byregulated utility earnings, mid-to-upper single digit percentage growth is likely next few years. 2. Revenue Reliability is consistent with almost all cash flow coming from regulated utilityoperations, protected by decoupling in Idaho (95% revenue) for residential and small commercial customers to encourage conservation. Irrigation is 12% of retail sales and depends onweather, industrial is 16% and exposed to cyclical pressures. Key driver of growth is utility CAPEX with annual rate base growth of 9.8% expected through 2026, customer growth veryrobust at 2.8% in 2021. 3. Regulatory Relations strong in Idaho, Wyoming, amicable in Oregon, no major outstanding issues. Coal phaseout likely to be smooth over time. Closure of SnakeRiver dams in upper Columbia River Basin unlikely despite some political pressure. 4. Near Term Refinancing risk is very low with $75 mil debt maturities through 2023 and low cost oflong-term debt capital with bonds due March 2048 yielding 3.76% to maturity, though was 3% three months ago. 5. Operating Efficiency stable, backed by efficient hydro facilities thoughdepends on water flows. EBITDA margin expected at 36.4% in 2022.

Innergex RenewableEnergy(TSX: INE, OTC:INGXF)

Buy>14 15.6 3.68 -9.22 13.16 0.18 122 B 3/30/2022 4/15/2022 3.7 78.4 RenewableEnergy

Q1 2022 Return: 7.85%. No dividend increase announced since February 2020. Next earnings expected May 11. Fitch affirms BBB- credit rating with stable outlook, cites company's "stableand predictable cash flows underpinned by long-term contracts." Quality Grade B (no change). Breakdown: 1. Dividend secured by reliable free cash flow, though tight coverage makesincreases likely in near future. 2. Revenue Reliability is backed by long-term generation contracts (14.1 year average weighted contract life) and currency hedges, little direct exposure toeconomy. Hydro and wind don't depend on fuel supplies though output varies with weather conditions. Company continues to expand with new contracts and Hydro Quebec financialbacking (19.81% owner). Revenues are 64% in Canada, 20% US, 12% France and 3% Chile, with acquisition to lift Chile to 10-15% of portfolio. Primary driver of growth is asset expansion.3. Regulatory Relations are stable with support for carbon free power high globally. Chilean government should be supportive of renewable buildout. 4. Refinancing Risk is low with $191 milmaturing debt through end of 2023. Cost of debt capital has risen but is still modest with bonds of October 2026 yielding just 0.74% to maturity. 5. Operating Efficiency strong with EBITDAmargin expected at 80.8% this year, up from 70.3% in 2021.

Itron(NSDQ: ITRI)

Hold 51.02 N/A -44.96 -21.24 N/A 0 C N/A N/A N/A 36.7 Utility Technology



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Q1 2022 Return: -23.12%. No dividend. Next earnings expected May 3. Partners with Duke Energy in Florida to deploy electric vehicle charging stations and technology. Wins contract tomodernize water infrastructure in Tennessee. Quality Grade C (No Change). Breakdown: 1. No dividends paid. 2. Revenue Reliability depends on contract wins, though continuing servicesbusiness is growing. Management must also manage exchange rate volatility. Business will gain from increased infrastructure investment in US next few years, regardless of how muchfederal government allocates for spending. Supply chain issues have emerged as a major concern hitting 2021 results hard, management sets 2022 earnings guidance range of $1.25 to$1.75 per share and will need to control supply costs to meet it. 3. Regulatory environment for products and services remains very favorable. 4. Near-Term Refinancing risks no longer anissue with no maturing debt through end of 2023. 5. Operating Efficiency affected by competition, cost cutting and now supply chain issues, EBITDA margin now expected at just 6.7% thisyear, was 6.3% in 2021.

JinkoSolar Holdings(NYSE: JKS)

Buy<50 47.85 N/A 23.13 7.17 N/A 0 C N/A N/A N/A 72.6 Utility Technology

Q1 2022 Return: 5.07%. No dividend. Next earnings expected May 16. Company has now delivered 100 gigawatts of solar panel generating capacity, first in the world. Q4 shipments up67.9% (94.1% from Q3), gross margin increased 10 basis points to 16.1% and operating profit margin 3%, up from 0.8% in year ago quarter as company realizes benefits of scale.Guidance for 2020 is 35-40 gigawatts of shipments. Revenue increased 73.9% in Q4, net income excluding non-recurring items is up 5.5 times, 12.8 times sequentially from Q3 earningsper share up 7.5%. Quality Grade C (No Change). Breakdown: 1. No dividends paid, none likely for foreseeable future. 2. Revenue Reliability depends on competing in a tough thoughrapidly growing business, though scale is a massive advantage over rivals. Management must also manage exchange rate volatility and US trade policy. Has done a good job so farhandling supply chain disruption. 3. Regulatory environment for products and services remains very favorable, though being Chinese may limit some US opportunities in current contentiousenvironment. 4. Near-Term Refinancing risk is a non-issue with no maturing debt through end of 2023. 5. Operating Efficiency affected by competition and cost cutting, EBITDA marginexpected at 8.1% in 2022.

Just Energy(OTC: JENGQ, TSX:JE)

SELL 0.97 N/A -2.98 4.32 N/A 0 F 8/14/2019 N/A N/A N/A Retail Electricity

Q1 2022 Return: 9.94%. No dividend. Next earnings expected June 28. Ontario Superior Court of Justice again extends "stay" allowing company to operate with sole rights to restructurefrom current bankruptcy, essential to avoid forced liquidation. Quality Grade F (No Change). Breakdown: 1. No dividend. 2. Revenue Reliability affected by weather, tight competition andgreater difficulty renewing and attracting customers in a low energy price environment and curtailed marketing efforts. Still trying to recover losses from Texas freeze in winter 2021 thatpushed company into bankruptcy, real problem is unsustainabilty of business model. 3. Regulatory Relations critical to continuing survival as company asks for relief from obligations inTexas, needs bankruptcy court protection. 4. Near Term Refinancing Risk is moot with $250 mil of debt officially defaulted, next maturity is September 30 ($125 mil principal). Commonshareholders likely to be all but wiped out if company is able to exit Chapter 11. 5. Operating Efficiency undermined by competition, financial comparisons are of questionable use givenErnst & Young statements on financial reporting.

Kayne AndersonEnergy Total Return(NYSE: KYN)

Buy<10 9.17 8.72 38.24 14.69 0.2 116.9 C 4/8/2022 4/19/2022 -34.2 N/A Closed-End Fund



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Q1 2022 Return: 20.61%. Dividend raised 14.3%. Closed end fund trades at big discount now nearly 15% to net asset value, good time to enter. Quality Grade C (no change). Breakdown:1. Quarterly distribution is in line with net asset value and ability of portfolio to generate sufficient investment income, still room for increases as holdings boost dividends. 2. RevenueReliability has improved as management has reduced exposure to riskiest MLPs. MPLX, Enterprise Products Partners, Energy Transfer, Targa and Williams Companies are still the fivelargest holdings as of March 31, 2021. Top five holdings are 45.1% of portfolio. Midstream holdings are fully adjusted financially to modest oil and gas volumes environment, set for big legup as higher prices and tight global supplies bring on increased North American production eventually. 3. Regulatory Relations risk low given quality and diversity of holdings. 4. Near-TermRefinancing risk elevated due to heavy use of leverage (32.12% of assets), exposes fund to another big drop in asset prices though risk seems modest with energy sector in full recovery. 5.Operating Efficiency improved though expenses are above industry average.

Kinder Morgan(NYSE: KMI)

Buy<22 19.48 5.54 23.21 14.57 0.27 56.3 A 1/28/2022 2/15/2022 10.5 51.3 Energy Transport

Q1 2022 Return: 20.94%. Dividend increase later this month. Next earnings expected April 21. Ruby Pipeline jointly owned with Pembina files for bankruptcy to restructure $475 mil in debt,ringfenced from both companies financially so should not have material impact on earnings as asset already written off. Quality Grade A (No Change). Breakdown: 1. Payout ratio low andsupported by secure free cash flow, particularly from US leading natural gas pipeline network. Low to mid-single digit dividend growth likely next few years. 2. Revenue Reliability improvesas new natural gas pipelines come on stream under contract, counterparties uphold contracts. Most gas pipes serve downstream customers (utilities, etc) and should have few worries.Broad diversification offers protection as well. CO2 division benefits from oil over $50 a barrel , reorientation to carbon capture promises growth long-term. Company is well adapted tomodest North American midstream volumes but positioned to benefit from an increase. Dominant position in supplying LNG exports as well as beneficiary as co-owner of Elba Island LNGfacility in Georgia. 3. Regulatory Relations good with no major current issues as company embraces energy transition themes. 4. Near-Term Refinancing Risk is reduced and manageablewith $4.265 bil ($5.747 bil three months ago) in maturing debt through end of 2023, still low cost of long-term debt capital with Mar 2048 bonds yielding 4.52% to maturity though was 3.96%three months ago. 5. Operating Efficiency steady with focus on fee based operations, EBITDA margin expected 48.8% this year.

Korea ElectricPower Corp(NYSE: KEP, KS:015760)

Hold 9 N/A -15.41 -0.11 N/A 0 C 12/30/2021 N/A N/A 56.5 Int'l Electricity

Q1 2022 Return: 1.86%. No annual dividend declared for payment in calendar 2022. Next earnings expected May 16. Political pressure appears to stall rate increase to pay for soaring fuelcosts. Quality Grade to C from B on regulatory uncertainty. Breakdown: 1. Annual dividend follows earnings, inability to raise rates to match fuel costs raises risk of no dividend declared forpayment in 2023 either. 2. Revenue Reliability historically hurt by volatile fuel costs, uncertain ability to pass on energy costs. Foreign projects provide additional growth upside. Nuclear andrenewable energy development will reduce dependence on imported coal and gas over time. 3. Regulator Relations should improve with new Korean president but is likely to take time. 4.Near-Term Refinancing risk elevated but manageable with $14.049 bil ($15.899 bil three months ago) in maturing debt through end of 2023, April 2034 bonds yield modest 3.23% tomaturity though up from 2.6% three months ago. 5. Operating Efficiency takes hit on fuel costs with 2021 EBITDA margin 10% and 2022 now expected at 0.4%.

LumenTechnologies(NYSE: LUMN)

SELL 11.36 8.8 -4.63 -15.57 0.25 63.7 D 3/7/2022 3/18/2022 -18.8 72.1 Communications



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Q1 2022 Return: -8.21%. No change in dividend since June 2019. Next earnings expected May 5. New CFO is veteran of Arrow Electronics. Quality Grade D (No Change). Breakdown: 1.Payout ratio is high, management says it will avoid a cut after asset sales but missed debt targets and ratings on credit watch negative may force one. 2. Revenue Reliability going forwarddepends on broadband business growth with sale of most other assets but faces tough competition, still not seeing revenue stabilization even in targeted "growth" areas of business. Freecash flow guidance for 2022 is still $1.7 bil after $3.2 to $3.4 bil CAPEX and would cover payout by 1.57 times at mid-point leaving $600 to $700 mil for debt reduction and buybacks. 3.Regulatory Relations tested by proposed asset sales to private capital concerns. 4. Near-Term Refinancing risk reduced with $1.427 bil ($2.474 bil three months ago) in maturing debtthrough end of 2023. Cost of long-term debt capital is elevated further with March 2042 bonds yielding 7.85% to maturity, was 7.2% three months ago. 5. Operating Efficiency depends oncost cutting, EBITDA margin expected at 39.6% in 2022.

Magellan MidstreamPartners LP(NYSE: MMP)

Buy<55 49.24 8.43 18.56 5.78 1.04 80.6 B 2/4/2022 2/14/2022 2.2 73.5 Energy Transport

Q1 2022 Return: 7.90%. Dividend increase in October. Next earnings expected April 29. Quality Grade B (No Change). Breakdown: 1. Payout is backed by conservative assumptions andbusiness plan, strong balance sheet, guidance for 2022 distributable cash flow would cover payout by 1.22 times, free cash flow covers 1.6 times. 2. Revenue Reliability backed by 75-80%capacity contracts for company's major pipeline systems BridgeTex, Longhorn and Saddlehorn. Pipelines are 60% total revenue, storage/terminalling/leases another 30%, 10% commodityprice sensitive. Investment grade rated refiners are most important customers (90% of committed volumes) and have to pay for space regardless of demand for refined products. Refinedproducts demand a plus and guidance is conservative. 3. Regulatory Relations with no major current issues, Texas focus is a positive. 4. Near Term Refinancing risk is a non-issue with nomaturing debt before 2025. Also still has a low cost of long-term capital with bonds due March 2050 yielding 4.23% to maturity though was 3.75% three months ago. 5. Operating Efficiencyboosted by capital discipline, completing projects on time and budget, EBITDA margin expected at 49.5% in 2022.

MDU Resources(NYSE: MDU)

Buy<35 26.8 3.25 -12.56 -14.07 0.22 41.9 B 3/9/2022 4/1/2022 2.4 45.9 Utility/Construction

Q1 2022 Return: -12.88%. Dividend increase in November. Next earnings expected May 5. Quality Grade B (No Change). Breakdown: 1. Dividend secured by electric and gas utility,regulated pipeline cash flow alone, few risks to low single digit percentage annual growth. 2. Revenue Reliability is very strong at utility, construction and materials business can be morevolatile but has grown to scale past few years, challenged by supply chain issues and labor costs in near-term. Should get further lift from federal infrastructure spending. Electric utility is40% residential revenue, 12% industrial. Energy business is a big part of large customers but activity appears to be rebounding in the Bakken. Large customers and contracts atconstruction materials include municipalities. Management holds to 5-8% annual earnings growth guidance next few years. 3. Regulatory Relations positive throughout utility serviceterritory, natural gas infrastructure build restrictions may be coming in Oregon but company can redirect investment elsewhere. 4. Near-Term Refinancing Risk is a non-issue with no debtmaturities until 2024, modest cost of longer-term debt capital with bonds due March 2037 yielding 4.41% to maturity, though was 3.64% three months ago. 5. Operating Efficiency solid,EBITDA margin expected at 15.5% for 2022.

MGE Energy(NSDQ: MGEE)


Q1 2022 Return: -2.52%. Dividend increase in August. Next earnings expected May 6. Plans to add more solar and battery storage to system. Quality Grade A (No Change). Breakdown: 1.Dividend payout ratio is conservative and backed by regulated utility cash flow, mid-single digit growth likely next few years. 2. Revenue Reliability is high with earnings coming fromregulated utility and transmission investment. Electric utility revenue is 34.8% with public authorities 8.8%. Commercial is 53.2% and industrial just 3.2%. Natural gas revenue is 59.5%residential, 35.8% commercial, 1.1% industrial and 3.6% transportation. Transmission revenue is FERC regulated and stable. Primary driver of growth is utility CAPEX, should be strong ascompany replaces coal with renewable energy. 3. Regulatory Relations remain strong in Wisconsin. 4. Near-Term Refinancing risk is manageable with $751 mil in maturing debt throughend of 2023, low cost of debt capital with Jan 2052 bonds yielding 3.91% to maturity, was 3.42% three months ago. 5. Operating Efficiency strong, EBITDA margin expected to reach 37.3%in 2022.



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Middlesex Water(NSDQ: MSEX)

SELL 101.69 1.14 29.87 -9.09 0.29 48.8 A 2/11/2022 3/1/2022 6.6 47.3 Regulated Water

Q1 2022 Return: -12.34%. Dividend increase in October. Next earnings expected May 5. Announces $7.5 mil investment in Woodbridge, NJ drinking water infrastructure in continuingsystem CAPEX to drive earnings. Quality Grade A (No Change). Breakdown: 1. Dividend level is consistently conservative, mid-to-upper increases likely next few years driven by utilityCAPEX. 2. Revenue Reliability backed by utility and contract water service revenue in New Jersey and Delaware and with infrastructure improvements a key driver. Commercial revenue is11.3% and industrial 7% of operating revenues, rest look secure as residential, fire protection and contracted for service. Has sold wastewater business in Delaware to Artesian Water tofocus operations in state on drinking water franchise. 3. Regulatory Relations solid in New Jersey and Delaware. 4. Near-Term Refinancing risk is low with $33 mil debt maturities through2023. Able to issue low cost municipal debt. 5. Operating Efficiency up on cost controls, customer growth, system improvements. EBITDA margin 42.5% in 2021.

National Fuel Gas(NYSE: NFG)

Buy<60 70.28 2.59 44.54 9.14 0.46 34 B 3/30/2022 4/15/2022 2.3 61.1 Integrated NatGas

Q1 2022 Return: 8.16%. Dividend increase in June. Next earnings expected May 6. Quality Grade B (No Change). Breakdown: 1. Dividend is funded by an integrated business model,regulated utilities and pipelines alone cover payout, low single digit percentage increases likely next few years. 2. Revenue Reliability backed by natural gas pipeline unit with downstreamfocus on major industrial companies and utilities, including affiliates (37% of contracted transportation capacity), revenue is FERC regulated (24.3% of net income). Regulated utilities (20%of income) provide natural gas distribution in less populated areas of New York and Pennsylvania (91% capacity contracted). NY has revenue decoupling from demand. Gathering is 19.2%of net income and services production unit (36.7% net income). E&P in Appalachia but also California, where prices are generally higher. Mid-point of 2022 earnings guidance of $5.35 pershare is based on average oil price of $80 a barrel, $4.50 for natural gas, so far well below current prices and setting up a guidance increase later this year. 3. Regulatory Relations goodwith company earning fair return on infrastructure and utility investment and no major outstanding issues. California tightening of new production raises value of company's output in state.Joins Clean Hydrogen Consortium, a plus with New York regulators and politicians. 4. Near-Term Refinancing risk manageable with $549 mil in maturing debt through 2023, modest cost ofdebt capital with bonds due Sept 2028 yielding 4.44% though up substantially from 2.98% three months ago. 5. Operating Efficiency depends on energy prices but otherwise solid, EBITDAmargin expected at 57.3% in FY2022 (end Sept 30), projection is up from 53.2% previously but still may be conservative.

National Grid(NYSE: NGG, LSE:NG)

Buy<65 79.83 2.87 36.01 11.48 1.16 114.4 B 12/2/2021 1/19/2022 3.3 61.1 Int'l Electricity

Q1 2022 Return: 7.34%. Semi-annual dividend increase in May. Next semi-annual earnings May 19. Sells 60% ownership stake in natural gas transmission business to investor consortiumof Macquarie Bank and British Columbia Investment Management Corp for $2.9 bil cash and GBP2 bil "additional debt financing" at close, expected in second half of calendar yearfollowing regulators' OK. Moody's shifts outlook for credit rating to negative from stable following sale announcement, primarily because of some uncertainties regarding credit insulationand potential for buyers to add debt to the unit. Quality Grade B (No Change). Breakdown: 1. Management likely to keep dividend increases at low single digit percentages next few yearsas says it has a "tight dividend cover." 2. Revenue Reliability backed by regulated businesses, US utilities enjoy revenue decoupling. Sale of Rhode Island utility unit to PPL should improverevenue reliability longer term. Appears to be navigating UK power crisis. Sale of midstream gas stake will push electricity to 70% of revenue mix from current 60%. 3. Regulatory Relationsimprove in New York under new governor. Rhode Island tested by attempt to sell Narragansett unit to PPL Corp. UK environment remains tough with regulators launching investigation ofelectricity transmission incident though company has been able to earn a fair return so far. 4. Near-Term Refinancing risk elevated until sale of Rhode Island utility is completed with$16.412 bil ($18.518 bil three months ago) in debt maturing by end of 2023, cost of debt capital is still low with Oct 2050 bonds yielding 3.9% to maturity though up from 3.37% threemonths ago. 5. Operating Efficiency solid, EBITDA margin expected at 38.7% for fiscal year ending March 31, 2023.

New JerseyResources Corp(NYSE: NJR)




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Q1 2022 Return: 12.57%. Dividend increase in July. Next earnings expected May 6. Quality Grade A (No Change). Breakdown: 1. Payout ratio is conservative, management is guiding to 7-9% annual growth over the next few years. 2. Revenue Reliability is supported by revenue decoupling from gas demand at regulated natural gas utility (65% of cash flow). Clean Energyand Energy Services businesses steady, midstream has utilities as main customers. Home Services growing and plans ramp up of solar to fuel growth. Primary driver of growth is gasdistribution utility CAPEX, related renewable energy. 3. Regulatory Relations supportive in New Jersey, company's system has life beyond conventional natural gas with hydrogen andrenewable natural gas. 4. Near-Term Refinancing risk is low with $200 mil debt maturities through 2023. Company still has low cost of long-term debt capital with bonds due July 2059yielding 3.7% to maturity, up from 3.36% three months ago. 5. Operating Efficiency solid for diversified company with EBITDA margin expected at 21.9% for FY2022.

NextEra Energy(NYSE: NEE)


Q1 2022 Return: -8.81%. Dividend raised 10.4%. Next earnings expected April 21. Management affirms long-term financial expectations, $2.80 per share mid-point of 2022 earningsguidance range in late March, likely means few if any surprises in Q1 numbers this month. Quality Grade A (No Change). Breakdown: 1. Dividend payout ratio is conservative and securedby combination of regulated utility cash flow and contracted renewable energy generation, contracted pipelines, growth rate of roughly 10% a year looks sustainable next few years. 2.Revenue Reliability supported by Florida utility (70% earnings) with 60% residential revenue, limited industry. Contracted wind power contract remaining average life is 16 years. Pipelinesmajor customers are downstream, especially utilities. Mountain Valley Pipeline (30% owner) is now effectively written off. Also has 4 contracted nuclear power plants. Primary drivers arespending on solar rollout at Florida utility and related cost cuts, renewable energy generation buildout at scale across country. 3. Regulatory Relations very strong in Florida, federal policy isalso supportive though protectionism in solar components is a potential threat to raise costs. 4. Near-Term Refinancing risk is manageable for size of company with $14.2 bil in maturingdebt through end of 2023, still has low cost of long-term debt capital with Sept 2057 bonds yielding 4.15% to maturity, though up from 3.2% three months ago. 5. Operating Efficiency riseswith scale at utility and contract wind and solar operations, EBITDA margin expected at 56% this year.

NextEra EnergyPartners LP(NYSE: NEP)

Buy<80 81.46 3.47 13.98 3.98 0.71 80 A 2/3/2022 2/14/2022 15 32.5 RenewableEnergy

Q1 2022 Return: -0.39%. Dividend raised 3.3% from previous quarter, three more increases ahead for 2022. Next earnings expected April 21. Financial guidance reaffirmed in late March.Quality Grade A (No Change). Breakdown: 1. Dividend policy is for 12% to 15% annualized increases at least through 2024 and appears sustainable. 2. Revenue Reliability secured bylong-term (20 years plus) contracts for renewable energy generation and some natural gas pipelines, with numerous drop down opportunities under right conditions. Earliest wind/solarpower contract expiration is 2026, nothing else before 2030. Most pipeline contracts in Texas last until at least 2025 and Winter Storm Uri has increased appetite for expanded long-termmidstream deals in state. Primary driver of growth is drop downs of renewable energy generation from parent NextEra Energy, supplemented with occasional third party deals. 3.Regulatory environment in the states remains very favorable for continued growth of renewable energy, relations in Texas appear to be amicable. 4. Near-Term Refinancing risk is non-issue with no maturing debt until 2024. Modest cost of debt capital with bonds due September 2027 yielding 4.49% to maturity, though was 3.33% three months ago. Company can issuegreen bonds now at much lower cost. Standalone credit rating is still one notch below investment grade but is also not a significant factor given support of parent. 5. Operating Efficiencyimproves with scale, EBITDA margin expected at 120.4% in 2022.

Nippon Telegraph &Telecom Corp(Tokyo: 9432, OTC:NTTYY)

Buy<30 30.13 2.71 20.24 5.98 N/A 42 A 3/29/2022 N/A -16.7 50.9 IntlCommunications



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Q1 2022 Return: 6.20%. Semiannual dividends for payment in June is 9.1% higher than year ago payment. Next earnings expected May 12. Reaches "strategic partnership" deal with unitof Macquarie to "further accelerate" data center deployment, with plans for 25% expansion of capacity in 20 plus countries, with Macquarie to provide capital. India arm announces it willprovide private 5G services. Quality Grade A (No Change). Breakdown: 1. Dividend safe, upper single digit percentage growth likely going forward. 2. Revenue Reliability supported byscale, 5-G rollout is becoming a major growth driver, offsetting continued negative impact on margins for wireless service from competition in Japan. Primary driver of growth is advancedservices and data. 3. Regulatory Relations solid, Japanese government boosts stake to 40.47% including government pension fund, mainly due to stock buybacks. 4. Near-TermRefinancing Risk manageable with $4.516 bil in maturing debt through end of 2023. Still has low cost of long-term debt capital with Sept 2032 bonds yielding 0.51% to maturity, though was0.39% three months ago. 5. Operating Efficiency improves with cost cutting and technology upgrades for system, EBITDA margin expected at 27.3% for FY2023 (end Mar 31).

NiSource(NYSE: NI)


Q1 2022 Return: 16.03%. Dividend raised 6.8%. Next earnings expected May 5. Activist investor Elliott Management supports appointment of former Progress Energy, PG&E and TVACEO to Board as management considers strategic moves including sale of natural gas distribution utilities or entire company. Update of formal strategic review in May. Quality Grade A (NoChange). Breakeven: 1. Dividend payout ratio is conservative and backed by regulated electricity and natural gas utility cash flows, management says annual earnings and dividend growthguidance will rise from 5-7% range to 7-9% in "next few years." 2. Revenue Reliability backed by 65% of utility revenue not tied to volumes. Gas utility has revenue decoupling in Ohio,Maryland and Virginia. Revenue also adjusted for weather in PA, MD, VA and KY. Revenue 50% fixed in Indiana for residential and commercial users. Industrial demand charge stabilizesindustrial electric customer cyclical exposure, now just 8% of margin. 3. Regulators supportive in all 6 states with ongoing operations, especially three biggest Indiana, Ohio andPennsylvania. Primary driver is utility CAPEX, with $2.4 to $2.7 bil planned for 2022 on renewable energy deployment and infrastructure replacement. 4. Near-Term Refinancing risk is non-issue now with only $10 mil in debt maturities through end of 2023. Still has low cost of long-term debt capital with bonds due March 2048 yielding 4.14% to maturity, though was 3.41%three months ago. 5. Operating Efficiency solid, EBITDA margin expected at 38.9% for 2022.

Northland Power Inc(TSX: NPI, OTC:NPIFF)

Buy<35 33.31 2.89 -7.22 17.43 0.1 56 B 3/30/2022 4/18/2022 1.6 72 RenewableEnergy

Q1 2022 Return: 12.53%. Monthly dividend no change since January 2018. Next earnings expected May 12. Quality Grade B (no change). Breakdown: 1. Dividend secure with low payoutratio, strong balance sheet and backed by contracts for power sales. Increases unlikely in 2022 as company devotes capital to fund growth. Mid-point of adjusted free cash flow per shareguidance will cover current dividend by 1.46 times in 2022. 2. Revenue Reliability is secured by long-term contracts for output of primarily wind power facilities. Offshore wind conditionshave impact on quarterly results, but not underlying earnings power. Management continues to guide to 7-10% annual EBITDA growth to 2027. Primary driver of growth is renewableenergy generation deployment, with 3 gigawatts of "late stage development" projects pushing towards a target of 6.5 GW operating capacity by 2027. 3. Regulatory Relations are stablewith support for renewable energy projects strong in places where company is expanding. Colombian regulation is positive for utility unit. Partnering in projects with local giants is a plus fornavigating politics and regulation. 4. Refinancing Risk is manageable with $436 mil of maturing debt through 2023. Still has modest cost of long-term debt capital with bonds of March 2036yielding 3.97% to maturity, though was 3.12% three months ago. 5. Operating Efficiency strong with EBITDA margin expected at 56.5% this year.

Northwest Holdings(NYSE: NWN)

Hold 51.41 3.75 -1.46 4.28 0.48 75.4 B 1/28/2022 2/15/2022 0.5 61.8 RegulatedElec/Gas



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Q1 2022 Return: 7.02%. Dividend increase in October. Sells 2.5 mil shares at $50 per, solid valuation of nearly 20 times expected next 12 months earnings. Quality Grade B (No Change).Breakdown: 1. Payout ratio is aggressive but management still likely to boost dividend marginally as returns are steady. 2. Revenue Reliability protected by weather normalized rates butnot full decoupling. Industrial customers are 8% of margin, residential is 63% of utility. Water utility business has little industrial exposure and continues to grow with acquisitions, mostrecently in southeast Texas. Storage is rate regulatedand company has growing investment in renewable natural gas. Management has raised long-term earnings per share growthguidance to 4-6% annually from previous 3.5%. Primary driver is utility CAPEX at 75% of planned $1.3 to $1.5 bil spending in 2022. 3. Regulatory Relations generally stable but PacificNorthwest state regulators' focus on holding down rates limits growth. Oregon may restrict new natural gas infrastructure though would not threaten current business. 4. Near-TermRefinancing risks are manageable with $190 mil of maturing debt through 2023, still has low long-term cost of debt capital with bonds due March 2050 yielding 3.86% to maturity, thoughwas 3.35% three months ago. 5. Operating Efficiency solid, EBITDA margin expected at 33.9% for 2022.

NorthWestern Corp(NSDQ: NWE)

Hold 60.94 4.14 -4.09 7.43 0.63 71.8 B 3/14/2022 3/31/2022 3.8 52.2 RegulatedElec/Gas

Q1 2022 Return: 6.93%. Dividend raised 1.6%. Next earnings expected April 21. Fitch cuts credit rating to BBB with stable outlook, cites negative impact of regulatory lag in Montana onfinancial metrics during period of heavy utility CAPEX. Management reaffirms mid-point of 2022 earnings per share guidance range at $3.30. Quality Grade B (no change). Breakdown: 1.Dividend payout is conservative and supported by regulated electricity and natural utilities in Montana (85% of gross margin), Nebraska and South Dakota, low single digit payout increaseslikely next few years due to rate lag. 2. Revenue Reliability supported by 42% residential revenue at Montana electric utility with only 6% industrial. South Dakota revenue is 38%residential, 60% commercial, 2% industrial. Gas demand moves with weather. All utility unit earnings affected by energy demand. Management 3. Regulatory support in Montana has notimproved as much as hoped from change in personnel, Nebraska and South Dakota appears steady. Decision to accelerate construction of gas-fired power plant in current turbulentenvironment will test regulatory cooperation. 4. Near-Term Refinancing Risk manageable with $518 mil of maturing debt through end of 2023. Still has low cost of long-term debt capital withAugust 2052 bonds yielding 4.09% to maturity though up from 3.72% three months ago. 5. Operating Efficiency driven by cost controls, EBITDA margin expected at 35.9% for 2022.

NRG Energy(NYSE: NRG)

Buy<40 39.55 3.54 6.67 -1.64 0.35 22.4 C 1/31/2022 2/15/2022 122.7 69.7 Retail Electricity

Q1 2022 Return: -10.14%. Dividend raised 7.7%. Next earnings expected May 6. Quality Grade C (No change). Breakdown: 1. Payout ratio appears conservative despite cash flowexposure to wholesale electricity prices, can offset with cost reduction. Management affirms guidance for 7-9% annual dividend growth next few years. 2. Revenue Reliability steadied bymanagement pairing wholesale generation with retail business, which is 67% fixed contracts and therefore more stable. Contracted sales still a relatively small part of generation business,has 1,600 megawatts under deals with average length of 10 years. Cost cutting and renewable energy deployment are primary growth drivers. 3. Regulatory Relations appear solid in mostjurisdictions including Texas market. 4. Near-Term Refinancing Risk is manageable with $2.081 bil in no maturing debt through 2023. Longest term debt is convertible and therefore costsless in interest, with yield to maturity on June 2048 bonds negative with 2.75% coupon rate. 5. Operating Efficiency continues to improve as management controls risks, EBITDA marginexpected at 13.5% this year, was 8.7% in 2021 as management greatly reduced initial negative impact from Winter Storm Uri.

NuStar Energy LP(NYSE: NS)

Hold 15.59 10.26 -9.16 -2.82 0.4 52.6 C 2/7/2022 2/14/2022 -12.6 67.1 Energy Transport

Q1 2022 Return: -6.67%. No change in dividend since May 2020. Next earnings expected May 4. Quality Grade C (no change). Breakdown: 1. Distribution appears sustainable at currentlevel despite recent retreat in share price and high current yield, increases unlikely this year due to need to cut debt. 2. Revenue Reliability focused on counterparties in Permian Basin,relatively resilient at low point of energy price cycle. Income roughly 65.6% from pipelines, 30% storage and the rest fuels marketing. Former parent Valero is key customer for storage aswell as pipeline segment, refined products balance direct crude oil volume exposure, as does FERC regulation on "common carrier" pipelines. Management reaffirms EBITDA guidancerange of $700 to $750 mil. 3. Regulatory Relations generally favorable as main market now Texas. 4. Near-Term Refinancing risk reduced with $74 mil ($162 mil three months ago, $509mil six months ago ) in maturing debt through 2023. Cost of long-term debt capital is elevated but manageable with April 2027 bonds yielding 6.07% to maturity, was 4.47% three monthsago. Recent asset sales targeted at cutting debt. 5. Operating Efficiency improves with cost cutting, EBITDA margin expected at 43.5% for 2022.



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OGE Energy Corp(NYSE: OGE)


Q1 2022 Return: 7.32%. Dividend increase in September. Next earnings expected May 6. Quality Grade A (no change). Breakdown: 1. Dividend payout ratio is conservative and backed byregulated utility earnings, management guidance is for 5-7% growth next few years. 2. Revenue Reliability solid at regulated utility. Residential customers account for 44% of system salesrevenue, oilfield is 10.1%. Industrial is 11%, commercial 25%. Cost of service component of rates stabilizes margin against volume swings in Oklahoma, also offers flat rate optionthroughout the year. Arkansas rates also have cost of service component. Company has revenue from transmission that is stable. Primary driver of growth is utility CAPEX, managementexpects 3.5-5% annual load growth in electricity and also plans solar rollout. 3. Regulatory Relations appear stable in Oklahoma, Arkansas. 4. Near-Term Refinancing Risk is manageablewith $1 bil ($1.47 bil three months ago) in maturing debt through 2023. Company still has low cost of long-term debt capital with bonds due August 2047 yielding 3.73% to maturity, thoughwas 3.2% three months ago. 5. Operating Efficiency improves with sale of midstream operations, EBITDA margin expected at 43.1% for 2022.

Oi(Sao Paulo: OIBR4,OTC: OIBRQ)

Hold 0.2 N/A -54.86 -9.73 0 0 D 4/14/2022 4/25/2022 N/A 79.1 Int'lCommunications

Q1 2022 Return: -8.39%. No dividend. Next earnings April 27. Sale of wireless systems to three competitors still under regulatory review as small companies in Brazil contest it, delaysfinancial recovery. Quality Grade D (no change). Breakdown: 1. No dividend. 2. Revenue Reliability should improve with exit from wireless and focus on more stable fiber but won't show upuntil after asset sales close. 3. Regulatory Relations uncertainty about approval of wireless asset sales. 4. Near-Term Refinancing risks elevated by restructuring, $2.92 bil in defaulted debt.Bonds of July 2025 now trade well below par value and yield to maturity of 21.05%, was 16.1% three months ago and 11.5% six months ago) as strategic plan stalled by Brazil regulators.5. Operating Efficiency should rise with fiber focus, EBITDA margin expectation still 12.2% this year.

ONE Gas(NYSE: OGS)


Q1 2022 Return: 14.53%. Dividend raised 6.9%. Next earnings May 2. Quality Grade A (No Change). Breakdown: 1. Payout ratio is conservative, management affirms 6-8% annual growthfor earnings and dividends through 2026. 2. Revenue Reliability backed by 72% of sales margin coming from fixed monthly charges. Weather normalized also affords protection, especiallyfor residential users (83% of margin on gas sales). Transportation revenue also protected and stable (11.8% of overall company). Primary driver of growth is utility CAPEX, managementexpects 8-9% annual rate base growth through 2026 with 65% infrastructure replacement with pre-approved recovery. 3. Regulatory Relations positive in Kansas, Oklahoma and Texas. Allthree states have enacted bans on municipalities attempting to restrict expansion of natural gas distribution infrastructure. Ability to pass along cost of gas price spike from winter 2021 assecuritization is major plus. 4. Near-Term Refinancing Risk is manageable with $1.4 bil debt maturities through 2023, still a low cost of long-term debt capital with Nov 2048 bonds yielding3.99% to maturity though was 3.36% three months ago. 5. Operating Efficiency strong with EBITDA margin expected at 30.4% in 2022.

ONEOK(NYSE: OKE)

Buy<60 71.61 5.22 51.65 16.46 0.94 73 C 1/28/2022 2/14/2022 3.9 69.6 Energy Transport



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Q1 2022 Return: 21.79%. No change in dividend since January 2020. Next earnings May 3. Management largely maintains 2022 financial guidance in presentation last month including$3.47-$3.77 bil EBITDA, likely rules out major surprises in Q1 results next month. Quality Grade C (no change). Breakdown: 1. Payout ratio is now conservative but debt reduction is still thepriority, low-to-mid single digit percentage increase still possible this year. 2. Revenue Reliability backed by 90% fee based operations and hedging of commodity price exposure, thereforedepends on health of producer customers. Several major new assets still set for startup next two years despite CAPEX cutbacks. Geographic diversification by basins is also a plus thoughBakken is most important region by far. FERC regulated pipeline income is steady. Primary driver of cash flow growth this year is modest ongoing asset expansion but company is welladapted to modest volumes environment with system capacity to absorb much more. 3. Regulatory Relations have no major issues. Business appears largely insulated from now highlyunlikely shutdown of Dakota Access Pipeline. 4. Near-Term Refinancing risk is manageable with $1.821 bil in debt maturities through end of 2023. Long-term cost of debt capital is stillmodest with January 2051 bonds yielding 5.1% to maturity, though was 4.52% three months ago. 5. Operating Efficiency improves with scale, EBITDA margin expected at 17.7% this year,looks conservative.

Orange(NYSE: ORAN, FP:ORA)

Hold 11.99 4.29 3.55 11.64 0.34 34.9 B 12/9/2021 12/30/2021 4.9 55.1 IntlCommunications

Q1 2022 Return: 12.04%. Next semi-annual dividend declaration in June. Next earnings April 26. Deal with Masmovil in Spain should boost profitability in country where results haveconsistently lagged. Quality Grade B (No change). Breakdown: 1. Payout ratio is conservative, future increases likely to be in low to mid single digit percentages. Management has targeted2.5-3% EBITDA growth this year. 2. Revenue Reliability solid as growth in broadband, foreign wireless customers, content and new services outpaces shrinking of legacy phone business,5G now boosting growth. Spain is a weak market for company but offset by strength elsewhere. 3. Regulatory environment stable, France is by far the most important operating area forcompany. 5G and fiber broadband convergence are primary growth drivers (France fiber customers up 53% in 2021), offset by competition in legacy services. 4. Near-Term Refinancingrisks are manageable for company of this size with $3.145 bil in maturing debt to end of 2023. Cost of long-term debt capital is still low with yield to maturity on bonds due November 2050of 3.02%, though was 2.43% three months ago. 5. Operating Efficiency improving with cost cutting, EBITDA margin expected at 29.7% in 2022.

Origin Energy(ASX: ORG, OTC:OGFGY)

Hold 4.82 2.53 N/A 29.61 0.09 52.6 B 2/28/2022 4/8/2022 19.3 34.8 Int'l Electricity,LNG

Q1 2022 Return: 21.28%. Semi-annual dividend for payment in March is flat with year ago. Next semi-annual earnings August 18. Quality Grade B (no change). Breakdown: 1. Dividendtargeted to 30-50% of free cash flow annually and so is variable given LNG component of earnings as well as exposure to wholesale energy markets. 2. Revenue Reliability is subject tocyclical pressures, especially demand/price of Australian electricity and LNG exports from APLNG facility. 3. Regulatory Relations tough in Australia, with federal and state officialsfrequently at odds. Company plans to shut all coal fired generation by 2025 faces some pushback by ruling Liberal/National Party but would be supported if Labor wins election later thisspring. 4. Refinancing Risk is manageable with $952 mil in maturing debt by end of 2023, bonds of Sept 2029 yield 2.59% to maturity, though up 1.27% from three months ago. 5.Operating Effiiciency crimped by government policies affecting retail electricity market. EBITDA margin now expected at 17.8% for fiscal year 2022 (end June 30).

Ormat Technologies(NYSE: ORA)

Buy<80 80.93 0.59 7.87 6.67 0.12 43.5 C 3/8/2022 3/23/2022 5.4 45.6 RenewableEnergy



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Q1 2022 Return: 3.34%. Dividend increase in May. Next earnings expected May 5. Investor Day last month largely affirms previous guidance lessening potential for surprises. QualityGrade C (No Change). Breakdown: 1. Dividends appear supported by contracted electricity sales side of business. Mid-point of management 2022 EBITA guidance is for a 10% increasefrom 2021. 2. Revenue Reliability backed by electricity segment (72.4% of 2019 revenue), selling power as advantage low-cost provider under long-term contracts, 61.8% in US. Nextcontract expiration is 2022, renewal with Edison International unit in California is extremely likely given state's renewable energy mandates. Energy, storage and management services is2% (92.5% US) and is steady. Product Segment is 25.6% of revenue and volatile, with 84% outside the US, but business is now robust as largely government counterparties expandrenewable energy. Primary driver of growth is asset expansion, with plans to boost total generation to 1.5 gigawatts by 2023. 3. Regulatory Relations supportive as governments advantagerenewable energy, geothermal cost cuts are a plus for affordabiity as well. 4. Near-term Refinancing Risks manageable with $171 mil maturing debt through end of 2023. 5. OperatingEfficiency steady, EBITDA margin expected 59.8% for 2022.

Orsted A/S(Denmark: ORSTED,OTC: DNNGY)

Buy<60 41.62 0.99 -25.82 11.64 0.63 51.4 C 4/11/2022 4/28/2022 9.5 40.7 Utility Technology

Q1 2022 Return: -0.45%. Annual dividend raised 6.4%. Next earnings April 29. Rejects Gazprom demand to pay for contracted Russian natural gas with Rubles, could be basis for breaking2030 deal and shopping elsewhere. Danish government owns 50.1% of company and is key decision maker. Sells 50% stake in UK wind farm for EU3.6 bil, will recycle capital in otherprojects. Brings 298 megawatt Nebraska wind farm into service. Quality Grade C (no change). Breakdown: 1. Dividend is safe, growth will depend on speed of development of projects thatappears on track. Expect upper single digit to low double digit percentage annual growth next few years. 2. Revenue Reliability bolstered by contracts, leading position in offshore winddevelopment globally and company continues to win new contracts. Russia exit will not meaningfully impact growth plan, which is aggressive renewable energy buildout globally. Also nowinvesting in e-methanol project to be powered by renewable energy. 3. Regulatory Relations a positive with governments in key markets supporting a ramping up of green energy. US isnow pushing ahead with regulatory approvals of several company projects. Success of company applications for offshore wind projects is a test. Russian exposure limited and companywon't be overly impacted by sanctions. 4. Near-term Refinancing Risks manageable with $1.441 bil in maturing debt through end of 2023. Bonds due April 2040 yield 2.79% to maturity, was2.02% three months ago, still very low cost capital. 5. Operating Efficiency grows with scale, EBITDA margin expected at in 2022.

Otter Tail Corp(NSDQ: OTTR)

SELL 63.42 2.6 41.83 -5.81 0.41 43.6 B 2/14/2022 3/10/2022 5.3 46.9 RegulatedElec/Gas

Q1 2022 Return -11.91%. Dividend raised 5.8%. Next earnings expected May 3. Quality Grade C (No Change). Breakdown: 1. Dividend payout ratio is conservative and backed byregulated electric utility (68% overall 2019 earnings), breakdown of utility net is Minnesota (52.3%), North Dakota (37.7%) and South Dakota (10%). Mid-single digit percentage growth ratefollows utility earnings, management affirms guidance of 5-7% growth next few years. 2. Revenue Reliability solid at regulated utility operations, unregulated businesses in plastics andmanufacturing are exposed to economic pressures but doing well in current environment. Volumes affect utility operations under rate structures but service territory is agricultural, anessential service. Commercial sales are 35.4% of revenue, residential 32.3%, industrial 30%. 3. Regulatory Relations are solid for utility, though faces long-term challenge meeting differingclimate policies between Minnesota and the Dakotas. 4. Near-Term Refinancing risk a non-issue with only $30 mil in debt maturing through 2025, still has low cost of long-term debt capitalwith bonds due February 2050 yielding 4.31% to maturity, was 3.68% three months ago. 5. Operating Efficiency at risk to results at unregulated operations, EBITDA margin expected at27.7% this year.

PartnerCommunications(NSDQ: PTNR, IT:PTNR)

Hold 8.08 N/A 73.39 0.81 0.26 0 C 8/27/2012 9/18/2012 N/A 56.3 IntlCommunications



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Q1 2022 Return: 2.88%. No dividend. Next earnings expected May 26. Q4 revenue up 6% as service revenue up 7%, equipment up 1%. Cuts operating expenses -2% from year agoquarter. EBITDA up 23%. Fiber optic broadband customer growth is primary driver, also wireless users up 7% offsetting -2% drop in wireless average revenue per user as competition isfierce. Television user count is flat. Fixed line construction continues to drive growth at near-term cost of lower free cash flow as CAPEX increased 35.9%. Quality Grade C from D onimproved broadband competitive position. Breakdown: 1. No dividend, focusing cash flow on funding fiber broadband growth. 2. Revenue Reliability improves as company's fiber broadbandfranchise grows, wireless business appears to be stable. 3. Regulatory Relations problematic in Israeli market, litigation risk is also generally elevated. Recent changes appear positive. 4.Near-Term Refinancing risk low with $94 mil in debt maturities through 2023. Cost of debt capital modest with June 2024 bonds yielding 1.89% to maturity, was 0.76% three months ago. 5.Operating Efficiency improving despite competition, EBITDA margin up to 26% in 2021, was 23.5% in 2020.

Pembina PipelineCorp(NYSE: PBA, TSX:PPL)


Q1 2022 Return: 25.61%. No change in monthly dividend since February 2020. Next earnings expected May 6. Bankruptcy of Ruby Pipeline jointly owned with Kinder Morgan will notthreaten results as is ringfenced and was not producing cash flow for company's 50% convertible preferred interest. Quality Grade A (No Change). 1. Payout safe as managementmaintains conservative cash policies, mid-single digit percentage increase promised after KKR joint venture acquires Energy Transfer's Canada assets later this year. 2. Revenue Reliabilitybacked by transportation constraints in Canada, reliance on fee-based contracts (85% plus of annual EBITDA) with financially strong counterparties, and long-term opportunities for low riskgrowth. Pipeline contracts are primarily fee-for-capacity and cost of service, meaning not affected by volumes. Recontracting a shrinking risk. Asset expansion including acquisitions isprimary driver of growth though Canadian volumes appear to be uptrending. 3. Regulatory Relations good in Canada, exposure to US limited. 4. Near-Term Refinancing Risk ismanageable with $1.237 bil in debt maturing through 2023, and modest cost of debt capital with bonds due May 2050 yielding 5.18% to maturity, though was 4.43% three months ago. 5.Operating Efficiency strong with EBITDA margin expected at 42.2% in 2022, earlier estimate was 41.3%.

PG&E Corp(NYSE: PCG)

Buy<14 12.84 N/A 13.73 5.16 N/A 0 C 12/28/2017 N/A N/A 68.5 RegulatedElec/Gas

Q1 2022 Return: -1.65%. No dividend likely in 2022. Next earnings April 28. Federal Energy Regulatory Commission cuts company's transmission system return on eauity to 9.3%, hadrequested 13.3% ROE, could affect cost of capital case in California but will not derail utility's financial recovery. Partners with Ford Motor to roll out electric vehicle infrastructure. QualityGrade C (no change). Breakdown: 1. Dividend can't resume until targets met for grid enhancement and hardening, balance sheet repair. 2. Revenue Reliability backed by revenuedecoupling from electricity demand, multi-year rate deals in California, lack of unregulated operations and prospects for rate base growth to meet state clean energy goals. Liability fromstate's worsening wildfires remains key issue, though financial hits seem to be diminishing. 3. Regulatory Relations in California appear stable for now, though government has right to takeover company if management fails to meet certain performance benchmarks. Regulators appear to support financial recovery. Wildfire season always elevates risk. 4. Near-TermRefinancing risk is currently manageable despite $9.937 bil in maturing debt through 2023. Cost of long term debt capital is still manageable with bonds due August 2050 yielding 4.95% tomaturity, though was 4.08% three months ago. 5. Operating Efficiency improvement and hardening system will be critical to recovery. EBITDA margin expected at 36.9% this year, was33.8% in 2021.

Pinnacle WestCapital Corp(NYSE: PNW)




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Q1 2022 Return: 11.85%. Dividend increase in November. Next earnings May 4. Quality Grade B (no change). Breakdown: 1. Dividend payout ratio is conservative and supported byregulated Arizona electric utility, which is substantially all revenue. Dividend growth likely to be in low single digit percentages next few years. 2. Revenue Reliability high with rate basegrowing rapidly and regulators' support for solar investment. Volumes affect revenue. Residential electric sales are 50.7% of revenue, transmission and other is 2.3% and also stable.Commercial and industrial are 43.4%. Customer growth is primary earnings driver with 1.5-2.5% expected through 2014. 3. Regulatory Relations now testy in Arizona, ROE cut will make itmore difficult to produce big earnings gains. 4. Near-Term Refinancing risk is a non issue with no debt maturities until 2024, still a low cost of debt capital with May 2050 bonds yielding4.25% to maturity, though was 3.43% three months ago. 5. Operating Efficiency driven by cost management with EBITDA margin expected at 38.4% this year.

Plains All AmericanPipeline LP(NSDQ: PAA)

Buy<15 11.15 7.8 29.96 12.59 0.22 37.9 B 4/28/2022 5/13/2022 -15.7 42.9 Energy Transport

Q1 2022 Return: 17.13%. Dividend raised 20.8%. Next earnings May 4. Quality Grade C (no change). Breakdown: 1. Current distribution level sustainable with more increases likely ascompany has adjusted financial policy to current volumes environment. 2. Revenue Reliability boosted by hedging prices, structuring business to avoid holding inventory as assets.Marathon Petroleum is 12% of revenue, ExxonMobil 12%, Phillips 66 is 11%. Company system is generally sensitive to volumes, positive in 2021 and going forward. 3. Regulatory Risk lowwith no major current issues. 4. Near-Term Refinancing risks manageable with $1.1 bil ($1.85 bil three months ago) in maturing debt through 2023. Cost of long-term debt capital moderatewith February 2045 bonds yielding 5.33% to maturity, though was 4.46% three months ago. 5. Operating Efficiency depends on success of cost cutting moves, EBITDA margin expected at5% for 2022.

PLDT(NYSE: PHI, PM:TEL)

Buy<35 35.84 3.29 45.79 2.22 0.81 67.3 C 3/15/2022 4/19/2022 7.9 68.3 IntlCommunications

Q1 2022 Return: 0.65%. Semi-annual dividend for April payment is up 5% from last year. Next earnings expected May 6. In talks to sell wireless towers for $1.5 bil in cash. Plans to buildhyperscale data center as continues to expand infrastructure and range of services. Quality Grade C (No change). Breakdown: 1. Twice annual dividend backed by resilient revenue fromsecure sources, mid to upper single digit percentage annual growth likely next few years. 2. Revenue Reliability steady from market's best in class network, extends network quality lead.Wireless and fiber broadband growth are primary earnings drivers. 3. Regulatory Relations stable for now in Philippines. 4. Near-Term Refinancing risks manageable with $66 mil inmaturing debt through 2023. Has roughly 60% of bonds in US dollars. 5. Operating Efficiency depends on successful cost cutting, EBITDA margin expected at 50.1% in 2022.

PNM Resources(NYSE: PNM)

Buy<45 47.85 2.9 -0.4 4.9 0.35 54.5 B 4/28/2022 5/13/2022 7 63.4 RegulatedElec/Gas

Q1 2022 Return: 5.28%. Dividend increased 6.1%. Next earnings expected April 29. Management sticks to mid-point of 2022 earnings guidance of $2.55 per share and $2.675 per share for2023. Merger agreement with Avangrid Inc is still in place ($50.30 per share in cash takeout price). Quality Grade A (no change). Breakdown: 1. Dividend payout is conservative andbacked by regulated electric utility cash flow. Low to mid-single digit boost likely this year as Avangrid merger is in limbo after New Mexico regulators reject it. 2. Revenue Reliability steadyfor now with rates in place. New Mexico utility revenue breakdown is 46% residential, commercial 42%, industrial 10%. Texas revenue is 52% volumetric, 48% demand based. Capitalspending on network robust going forward with energy transition. 3. Regulatory Relations are good in Texas and New Mexico, where company is on same page with state renewable energylaw. Shakeup of state regulatory structure in 2023 likely to be favorable to Avangrid merger as parties have extended deal. 4. Near-Term Refinancing risks manageable with $1.179 bil inmaturing debt through 2023, low cost of long term debt capital with April 2043 bonds yielding 4.34% to maturity, though was 3.47% three months ago. 5. Operating Efficiency improves oncost cutting at utilities, EBITDA margin expected at 41.7% this year.



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Portland GeneralElectric(NYSE: POR)


Q1 2022 Return: 5.03%. Dividend increase this month. Next earnings April 28. Settles class action lawsuit with investors over trading losses from summer 2020. Quality Grade B (nochange). Breakdown: 1. Dividend payout conservative and able to fund mid-single digit increases yearly. 2. Revenue Reliability is backed by decoupling of revenue from kilowatt hour sales,high share of residential demand (52% revenue) with industrial 12%. Management guidance is 4-6% annual earnings growth next few years with customer growth (1.1%) and electrificationof Portland area as primary drivers. 3. Regulatory Relations have been supportive with company strategy closely aligned with Oregon's energy goals. Company wildfire performance solid in2021, a key for 2022 as well. 4. Refinancing Risk is a non-issue with no maturing debt through 2023, low cost of long-term debt with bonds due January 2050 yielding 3.93% to maturitythough was 3.22% three months ago. 5. Operating Efficiency strong with EBITDA margin expected at 36.5% this year.

PPL Corp(NYSE: PPL)

Buy<32 29.11 2.75 6.55 -3.05 0.2 76.2 C 3/9/2022 4/1/2022 -4.2 45.1 RegulatedElec/Gas

Q1 2022 Return: -4.32%. Dividend cut by -51.8%. Next earnings expected May 6. Massachusetts court dismisses eleventh hour challenge to purchase of Narragansett from National Grid,Rhode Island Superior Court is final hurdle to close as state attorney general is appealing approval by the Division of Public Utilities and Carriers. Quality Grade C (no change). Breakdown:1. Dividend likely to be increased following close of purchase of Rhode Island utility from National Grid, target is mid-single percentage growth from final re-set level. 2. Revenue Reliabilityis greatly improved by sale of UK utility unit, no longer has currency exposure US utilities in Pennsylvania and Kentucky are affected by volumes, PA has competition with 96% of largeusers and 82% of small commercial and industrial users just paying company fee for distribution. Rhode Island utility will add growing rate base from renewable energy investment if/whenacquisition is approved. 3. Regulatory Relations are positive in US states, Rhode Island relations affirmed positive with regulators though state attorney general's appeal of merger remainsa hurdle to closing the deal. 4. Near-Term Refinancing risk is manageable with $827 in maturing debt through 2023. Company has low cost of long-term debt capital with June 2050 bondsyielding 3.91% to maturity, though was 3.18% three months ago. 5. Operating Efficiency helped by cost cutting, EBITDA margin expected at 46.1% this year.

Public ServiceEnterprise Group(NYSE: PEG)

Buy<70 72.09 3 21.49 8.48 0.54 56.3 A 3/9/2022 3/31/2022 4.4 57.6 RegulatedElec/Gas

Q1 2022 Return: 5.71%. Dividend raised 5.9%. Next earnings May 3. Quality Grade A (no change). Breakdown: 1. Payout ratio is conservative as dividend appears supported by regulatedutility earnings long-term, low to mid-single digit percentage growth next few years. Substantially all wholesale electricity sales are hedged, drop in commercial and industrial sales at NewJersey utility were resilient in pandemic. 2. Revenue Reliability improving as regulated utility is now 90% of business and rest is nuclear plants with zero emission credits in New Jersey.Commercial sales by volume are 58% of electricity and 38% of gas at utility, industrial is 9% and 4% respectively. Power transmission rates are set by FERC based on return on investmentand are stable. Offshore wind projects likely to be major earnings contributors by late decade. Management is guiding to 5-7% annual earnings growth through 2025, $14-$16 bil CAPEX togrow rate base 6.5-8% a year is primary driver. 3. Regulatory Relations positive in New Jersey and support utility capital spending. New York regulatory scrutiny of management of LongIsland Lighting system may ease up under new governor as performance has also improved. 4. Near-Term Refinancing risk is manageable with $2.275 bil in maturing debt through 2023.Cost of long-term debt capital is still low with bonds due January 2050 yielding 3.67% to maturity, was 3.04% three months ago. 5. Operating Efficiency solid, EBITDA margin expected at41.5% this year.

Quebecor(OTC: QBCRF, TSX:QBR/B)

Buy<25 25.67 3.68 -2.87 14.03 0.3 47.4 B 3/10/2022 4/5/2022 74.9 83.3 IntlCommunications



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Q1 2022 Return: 7.62%. Dividend raised 9.1%. Next earnings expected May 13. Quality Grade B (No Change). Breakdown: 1. Dividend now at level that's meaningful to returns, payoutratio is conservative and supported by recurring revenue streams in wireless, pay television. Upper single digit percentage increases likely next few years. 2. Revenue Reliability ismaintained by growth of new services and wireless, pay television subscription business. Entertainment and events side of business along with advertising is cyclical and affected bypandemic negatively. 5G is now a driver of growth. 3. Regulatory Relations good in Quebec as company is effectively a corporate champion of French-speaking Canada. 4. Near-TermRefinancing risk is manageable with $1.087 bil debt maturing by end of 2023. Company also has modest cost of debt capital with bonds due January 2030 yielding 5.17% to maturity,though was 3.98% three months ago. 5. Operating Efficiency helped by continued gains in scale, EBITDA margin for 2022 projected at 43.5%.

Reaves UtilityIncome(NYSE: UTG)

Buy<35 34.78 6.56 9.92 2.5 0.19 234.5 B 3/17/2022 3/31/2022 3.3 N/A Closed-End Fund

Q1 2022 Return: -0.48%%. Monthly distribution increase in June. Closed-end fund now trades at slight discount to net asset value, though historically has traded at small premium. QualityGrade B (No Change). Breakdown: 1. Distribution is covered by tapping more than just investment income with fund yield 1.7 times average yield of 10 largest holdings (35.34% of portfolioat last publicly available information on Dec 31, 2021), maintained at management's discretion. Fiscal year to date payout is 32.25% net investment income, 67.75% net realized long-termcapital gain. 2. Revenue Reliability of investment income is solid, but ultimately payout is at management's discretion. 3. Regulatory Relations good for holdings. 4. Near-Term Refinancingrisk appears moderate, leverage is 19.84% of assets but uses preferred stock and cost is low. 5. Operating Efficiency solid as expense ratio of 1.05% is very low for closed-end equityfocused funds.

RGC Resources(NSDQ: RGCO)

SELL 21.96 3.56 2.64 -2.68 0.2 69.4 C 4/13/2022 5/1/2022 6 58.5 RegulatedElec/Gas

Q1 2022 Return: -5.22%. Dividend increase in November. Next earnings expected May 10. Mountain Valley Pipeline is again in doubt after more setbacks in court. Management says it's"likely" company will realize a "material impairment charge" for investment (70% of shareholders equity) sometime in current quarter. Quality Grade C (No Change). Breakdown: 1. Payoutratio is conservative, mid-single digit percentage increases supported by regulated utility. Mountain Valley pipeline investment is a wildcard if project is cancelled. 2. Revenue Reliabilitybacked by residential revenue at 60% of margin, industrial 11% (most transportation service only). Potential writeoff of Mountain Valley Pipeline investment would wipe out 70% ofshareholders equity. Management has withdrawn 2022 guidance due to MVP question. 3. Regulatory Relations are positive for utility, Mountain Valley Pipeline clearing courts remains acritical challenge, more delays appear likely. 4. Near-Term Refinancing Risk manageable with $41 mil in maturing debt through 2023. October 2027 bonds yield 4.24% to maturity, was2.9% three months ago. Now at a meaningful discount to par value. 5. Operating Efficiency steady with EBITDA margin 29.6% in 2021, no guidance for 2022 due to Mountain ValleyPipeline uncertainty.

RogersCommunications(NYSE: RCI, TSX:RCI/B)

Buy<50 58.49 2.67 26.04 20.88 0.5 50 B 3/9/2022 4/1/2022 2.7 68.4 IntlCommunications



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Q1 2022 Return: 19.97%. No change in dividend since April 2019. Next earnings April 20. Launches 5G "standalone" network in Canada. Canadian Radio-Television andTelecommunications Commission approves takeover of Shaw Communications with conditions. Deal still needs OK from Competition Bureau and Innovation, Science and EconomicDevelopment Canada, which is still likely to require sale of Shaw's Freedom Mobile wireless operations, company already has at least one prospective offer. Quality Grade B (No Change).Breakdown: 1. Dividend payout ratio appears conservative and backed by subscription business in wireless and pay television. increases unlikely until company closes merger with ShawCommunications. 2. Revenue Reliability is under threat from competition in wireless and losses of legacy cable customers longer term but gets lift from increased broadband network traffic,content ownership is a plus long-term and a potential driver of growth in 2021 as economy recovers. Shaw merger would provide needed scale in wireline broadband. 3. RegulatoryRelations challenged by approvals for Shaw merger but appear to be proceeding towards first half 2022 close. 4. Near-Term Refinancing risk is manageable with $1.829 bil ($2.571 bil threemonths ago) in maturing debt through 2023. Company has low cost of long-term debt capital with bonds due Feb 2048 yielding 4.52% to maturity, was 3.7% three months ago. 5. OperatingEfficiency driven by cost control, EBITDA margin expected at 41.3% this year though success/failure of Shaw merger will play a big role.

RWE(OTC: RWEOY, GR:RWE)

Buy<42 45.27 1.62 12.48 15.37 1.02 70 A 4/29/2021 5/13/2021 -17.4 51.1 Intl Electricity

Q1 2022 Return: 6.83%. Annual dividend increased 5.9%. Next earnings May 12. Plans hydrogen pipeline network in Germany, shuts down lignite coal plant but keeps in reserve. Russianexposure is a wildcard this year, mainly fuel procurement but crisis is also driving investment. 2021 results top management guidance as company confirms robust preliminary numbersreleased, including 24% higher revenue, 11% higher EBITDA and 25% lift in net income, mid-point of 2022 EBITDA guidance range is EUR3.8 bil. Quality Grade A (no change).Breakdown: 1. Dividend payout ratio is conservative, mid-to-upper single digit annual increases appear likely. 2. Revenue Reliability is now actually more stable despite focus on generationand retail business. Wind and solar now 60% of generation EBITDA, with coal/nuclear 20%. Renewables enjoy price supports. Company also employs hedging to lock in prices. Coal exitprovides EUR4.35 bil in compensation over 15 years. 3. Regulatory Relations are stable with payment for coal shutdown the latest favorable development. 4. Near-Term Refinancing risk isa non issue with $18 mil in maturing debt through 2023. Bonds due July 2075 yield just 6.02% to maturity, was 5.52% three months ago. 5. Operating Efficiency depends on cost cutting,EBITDA margin guidance is 21.4% in 2022.

Sempra Energy(NYSE: SRE)


Q1 2022 Return: 27.96%. Dividend raised 4.1%. Next earnings expected May 5. Russian invasion of Ukraine and resulting sanctions triggers a boom in LNG expansion as company forgesdeal with TotalEnergies to expand export capacity and renewable energy including offshore wind. Also enters pact with Mitsui for Phase 2 export expansion at Cameron LNG facility inLouisiana, reaches memorandum of understanding with Kogas (South Korea) for "infrastructure" opportunities. Fitch affirms BBB+ credit rating with stable outlook. Quality Grade A (Nochange). Breakdown: 1. Dividend payout ratio is conservative, backed by earnings from regulated utilities (79% earnings) and contracted LNG export facilities. Mid-single digit percentagedividend increases likely next few years. 2. Revenue Reliability is good at all divisions with asset sales cutting risk and improving focus. California utilities have revenue decoupling fromdemand. Has now restructured LNG into a single self-funding unit with private capital firm KKR and Abu Dhabi Investment Authority as financial partners. Management guidance is 6-8%annual earnings growth through 2026, key driver is utility CAPEX in California and Texas but LNG and renewables partnership is an unexpected emerging windfall. 3. Regulatory Relationspositive as company's strategy is closely aligned with California's energy goals, with natural gas system strategic moves to cut CO2 the latest example. Company has also successfullycontrolled its wildfire risk past couple years. Texas relations positive. LNG projects now supported in US with Biden Administration about face, as well as Mexico. 4. Near-Term Refinancingrisk is low with $1.428 bil in maturing debt through 2023. Company still has low cost of long-term debt capital with bonds due April 2050 yielding 3.83% to maturity, was 3.19% three monthsago. 5. Operating Efficiency improves with target asset sales, utility growth. EBITDA margin guidance is 43.9% this year.

Severn Trent(OTC: STRNY, LN:SVT)

Hold 42.16 2.41 27.17 5.28 0.55 115.3 A 12/3/2021 1/18/2022 7.2 85.3 Regulated Water



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Q1 2022 Return: 5.21%. Semi-annual dividend increase in May. Next semi-annual earnings May 25. Quality Grade A (no change). Breakdown: 1. Twice annual dividend payout isconservative, low single digit percentage growth rate likely to expand to mid-single digits over next few years as CAPEX plans completed. 2. Revenue Reliability backed by multi-year plantying rates, returns to system CAPEX and reliability, some exposure to large customers and regulated retail. 3. Regulatory Relations stable for now so long as company meets performancebenchmarks under multi-year rate deal, though opposition Labour Party has not officially abandoned nationalization of utilities as a goal if elected. UK regulators are investigating servicequality of water sector including company, though nothing material has yet been announced. 4. Near-Term Refinancing risk manageable with $457 mil in debt maturities through 2023 andlow cost of debt capital. January 2042 bonds yield 3.12% to maturity, though up from 2.23% three months ago. 5. Operating Efficiency improving as company is meeting UK standards,EBITDA margin guidance is 47.9% for 12 months ending Mar 31, 2023.

ShawCommunications(NYSE: SJR, TSX:SJR/B)

Hold 31.35 3 21.32 4.93 0.1 61.1 B 4/13/2022 4/28/2022 1.2 49.8 IntlCommunications

Q1 2022 Return: 3.08%. No change in monthly dividend since March 2015. Next earnings April 13. Canada's CRTC approves takeover by Rogers Communications (see my comments oncompany), still needs OK of competition regulator and will likely have to sell wireless operations but deal now looks likely to close by mid-year, per management's long-time guidance.Shareholders to receive CAD40.50 per share at close. Quality Grade B (No Change). Breakdown: 1. Monthly dividend payout ratio is conservative and backed by subscription revenue inwireless and pay television service, no change likely so long as Rogers merger is progressing. 2. Revenue Reliability enhanced by company's ability to offer both wireline and wirelessservices, weakness in Alberta economy a potential concern. Management decision not to bid for wireless spectrum is tacit admission it lacks resources to build full fourth wireless network inCanada. 3. Regulatory Relations good in Canada, now tested by seeking regulatory approvals for Rogers merger but on track so far. 4. Near-Term Refinancing risk is manageable with$399 mil of debt maturities through 2023 and modest cost of debt capital with bonds due November 2039 yielding 5.12% to maturity, up from 4.32% three months ago. 5. OperatingEfficiency expected steady this year with cost cutting offsetting competitive pressure on margins, EBITDA margin guidance is 45.5% for FY2022 (end August 31). Upside to merger price isaround 4% not including dividends to be paid.

Shell Plc(London: SHEL,NYSE: SHEL)

Buy<50 56.09 3.42 44.81 19.72 0.48 34.2 B 2/17/2022 3/28/2022 N/A 33.7 Super MajorOil/Gas

Q1 2022 Return: 27.67%. Dividend increase in May. Next earnings May 5. Adds deepwater oil and gas production in US Gulf of Mexico. Plans $33 bil investment in UK energy system overnext 10 years, including offshore wind, hydrogen and electric mobility. Partners with BYD globally to develop more efficient electric vehicle charging. Signs supply deal with proposedGerman LNG terminal. Plans 17 gigawatts Brazilian offshore wind. Australian regulators OK restart of company's Prelude floating LNG export facility. Quality Grade B (no change).Breakdown: 1. Payout ratio is conservative, management appears to be pushing dividend back to previous level of 94 cents per quarter but is likely to play out over several quarters. 2.Revenue Reliability helped by restructuring moves, renewable energy a bright spot but environment is improving both upstream and downstream. 3. Regulatory Relations good in most ofthe world, with company up to the test when troubles arise in certain countries. Challenges with CO2 will be long term including Dutch court order to cut emissions 45% from 2019 levels byend of 2030. Moving headquarters to UK would avoid ruling. Russian withdrawal to cost up to $3.4 bil but more than offset by growth elsewhere and higher energy prices at bottom line. 4.Near-Term Refinancing risk is manageable with cost cutting drive, has $6.088 bil ($7.916 bil three months ago) of debt maturities through 2023. Cost of long-term debt capital is still lowwith bonds due April 2050 yielding 3.73% to maturity, though was 3.14% three months ago. 5. Operating Efficiency improves with cost cutting, EBITDA margin guidance 19.3% for this year,could be conservative.

ShenandoahTelecommunications(NSDQ: SHEN)

Buy<32 24.31 0.29 -19.54 -6.21 0.07 43.4 B 11/5/2021 12/1/2021 311.5 7.9 Communications



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Q1 2022 Return: -7.53%. Next annual dividend declared in October. Next earnings expected April 29. Quality Grade B (No change). Breakdown: 1. Annual dividend payout policy isconservative. Mid-single digit increases are likely going forward. 2. Revenue Reliability protected by regional focus of operations and focus on stable broadband buildout that faces littlecompetition. 3. Regulatory Relations good in service territory. 4. Near-Term Refinancing Risk is non-issue with $202 mil in maturing debt through 2023. Cost of capital appears to still bemodest, a key issue given strategy of building broadband. 5. Operating Efficiency depends on ability to control fiber build costs, EBITDA margin guidance is 27.9% this year and 27.7% in2023.

SingaporeTelecommunications(OTC: SGAPY, SP:ST)

Buy<20 19.38 3.21 9.56 12.67 0.33 44.4 C 12/16/2021 1/18/2022 -27.7 32.7 IntlCommunications

Q1 2022 Return: 13.29%. Next semi-annual dividend declaration in May. Next earnings expected May 27. Company and financial partner AustralianSuper buy Australian wireless towercompany for $2.67 bil, unit now has a "national footprint." Company also buys Australian digital services firm ARQ, sells partial stake in Airtel Africa for cash. Company said to be amongfront runners to win Malaysia digital license. Quality Grade C (No Change). Breakdown: 1. Current dividend level is conservative and likely to stay that way with management focusing onbalance sheet over big payouts but low single digit increase is possible this year. 2. Revenue Reliability has firmed despite competition as company has lead on network quality in mostmarkets. Management streamlining of portfolio and focus on key assets is improving profitability with more to come. 3. Regulatory Relations stable for now as regulators favor developmentof 5G in Singapore and Australia. India relations also appear good. 4. Near-Term Refinancing Risk is elevated but manageable with $4.115 bil in maturing debt through end of 2023. Cost ofdebt capital is still low with bonds due December 2031 yielding 3.38% to maturity, though was 2.38% three months ago. 5. Operating Efficiency depends on scaling up in far flung marketsand cost of fiber and 5G build, EBITDA margin guidance for fiscal year end March 21, 2023 is 25.2%.

SJW Corp(NYSE: SJW)

Buy<65 68.69 2.1 8.98 -2.04 0.36 69.7 A 2/4/2022 3/1/2022 6.6 60.7 Regulated Water

Q1 2022 Return: -4.45%. Dividend raised 5.9%. Next earnings expected April 28. Quality Grade A (No Change). Breakdown: 1. Payout Ratio is conservative, mid-single digit increaseslikely next few years. 2. Revenue Reliability appears steady despite much larger size and geographic spread of business. Most revenue is still residential. Real estate business may slowbut utilities pay the dividend. Industrial is just 0.6% of water utility revenue. Primary driver of growth is utility CAPEX, along with acquisitions of smaller water utilities outside of main statesof California and Connecticut. 3. Regulatory Relations stable in California with decoupling of rates upheld recently, cost of capital rate cases are multi-year with ongoing 2022-24proceedings the current challenge. No major issues elsewhere currently. 4. Near-Term Refinancing risk a non-issue with no debt maturities until 2024. Cost of debt capital is still modestwith November 2039 bonds yielding 4.39% to maturity, was 3.44% three months ago. 5. Operating Efficiency solid with EBITDA margin guidance 40.6% for 2022, up from 35.3% in 2021.

SK Telecom(NYSE: SKM, KS:017670)

Buy<26 26.96 4.23 -0.45 4.17 N/A 48 B 3/30/2022 N/A 155.2 46.6 IntlCommunications

Q1 2022 Return: -3.90%. Next semi-annual dividend declared in June. Next earnings expected May 4. Country's new president appears to be considerably friendlier to business thanpredecessor. Company ramping up growth areas of business including artificial intelligence. Quality Grade B (No Change). Breakdown: 1. Dividend is safe, management has yet to set apolicy for increases following spinoff of non-telecom operations. 2. Revenue Reliability challenged by competition but company has best in class network advantage and is gaining businessfrom 5G, emerging as primary driver of growth. 3. Regulatory Relations look set to improve in South Korea after presidential election. 4. Near-Term Refinancing risk is manageable with$2.322 bil in maturing debt to end of 2023. Has low cost of long-term debt capital with bonds due Sept 2038 yielding 3.36% to maturity, though up from 2.66% three months ago. 5.Operating Efficiency tied to cost cutting, 5G service growth offsetting competition and rate pressures, EBITDA margin guidance is for 30.5% in 2022, first year post-spinoff of non-communications operations.



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South JerseyIndustries(NYSE: SJI)

SELL 34.47 3.6 46.5 33.57 0.31 75.6 A 3/15/2022 4/5/2022 2.6 64.3 RegulatedElec/Gas

Q1 2022 Return: 33.46%. Dividend increase in November. Next earnings expected May 5. Key driver of returns this year is winning regulators' approval for acquisition of company byprivate capital firm Infrastructure Investments Fund for $36 per share in cash. Quality Grade A (no change). Breakdown: 1. Payout ratio is conservative, low single digit annual increaseseasily afforded. 2. Revenue Reliability supported by weather and conservation adjustment but not wholly decoupled from demand for gas, wholesale commodity and retail energy businessaffected by economy. Residential is 63% of utility revenue, industrial is 5% providing some protection. Conservative renewable energy investment has become a driver of reliable growth. 3.Regulatory Relations good in New Jersey, some pressure in localities to potentially restrict new gas infrastructure. Approval of takeover is biggest ongoing test by far. 4. Near-TermRefinancing risk is manageable with $297 mil of maturing debt through 2023. Company also has low long-term cost of debt capital with Dec 2058 bonds yielding 4.48% to maturity, was3.5% three months ago. 5. Operating Efficiency steady with EBITDA margin guidance of 29.3% this year. Upside to merger offer is a little over 4 percent not including remaining dividendsto be paid, downside of deal failure is mid-20s price.

Southern Company(NYSE: SO)

Buy<65 76.49 3.45 26.78 12.59 0.66 74.4 A 2/18/2022 3/7/2022 3.2 63 RegulatedElec/Gas

Q1 2022 Return: 6.69%. Dividend increase this month. Next earnings expected April 29. Biggest issue this year is getting Vogtle nuclear plant ready for startup next year on currentschedule. Mid-point of 2022 earnings guidance range is still $3.55 per share, with $4.15 in 2023. Quality Grade A (No Change). Breakdown: 1. Dividend payout ratio is conservative andbacked by regulated electric utilities in Alabama, Georgia and Mississippi, contracted generation with focus on renewable energy, natural gas distribution utilities and interests indownstream natural gas pipeline systems. Vogtle startup delays still not likely to threaten policy of regular increases as company is reserved and has scale to compensate. Low single digitannuall percentage dividend growth should increase to mid-single digits when Vogtle enters service. 2. Revenue Reliability depends on utilities, with volumes affecting revenue in all states.Residential is 43% of electric sales, commercial 35%, industrial 21.4% (most economically sensitive). Some rate decoupling at natural gas utilities. Contract renewables are primarily withutilities and investment grade corporations, municipalities and business is growing rapidly. Management earnings per share growth guidance is 5-7% annually, with utility CAPEX theprimary driver and Southern Power renewable energy growth supplementing. Electric customer growth is robust at 1.5% last 12 months, natural gas 0.7%. 3. Regulatory Relations strong inall states and long-term planning keeps costs low. Vogtle nuclear project delays still appear unlikely to cause rift with Georgia officials as project nears finish line. 4. Near-Term Refinancingrisk is manageable with $7.11 bil in maturing debt through 2023, has very low cost of long-term debt capital with August 2057 bonds yielding 3.96% to maturity, though was 3.23% threemonths ago. 5. Operating Efficiency strong, EBITDA margin guidance for 2022 is 43%.

Southwest Gas Corp(NYSE: SWX)


Q1 2022 Return: 12.61%. Dividend raised 4.2%. Next earnings expected May 6. Carl Icahn boosts tender offer for company to $82.50 a share as next step is battle for control of company'sBoard. Court blocks Icahn request for special meeting, company solicits investor support of its own Board slate. Company has now issued stock to permanently finance acquisition ofQuestar Pipeline from Dominion Energy, rebrands unit as MountainWest Pipelines. Quality Grade B (No Change). Breakdown: 1. Dividend supported by utility earnings alone, with ratebase growth fueled by customer growth and infrastructure investment. Mid-single digit dividend increases likely next few years. 2. Revenue Reliability high at utility with revenue decouplingfrom volume sales in Arizona, California and Nevada. Construction arm is cyclical and seasonal but vast majority of revenue earned under unit priced contract and regulated are primarycounterparties, with replacement of infrastructure that's automatically recovered in utility rates. Is seeing a lift from increased infrastructure spending and utility CAPEX. Questar Pipelineprovides steady cash flow. Management plans to spin off construction arm by early 2023, says dividends should "go up" post-separation. 3. Regulatory Relations positive in all three stateswith no major issues. 4. Near-Term Refinancing risk is manageable with $1.87 bil in maturing debt through 2023. Cost of long-term debt capital is low with June 2049 bonds yielding 4.49%to maturity, was 3.51% three months ago. 5. Operating Efficiency strong across business lines with EBITDA margin guidance of 23.9% for 2022.



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Spark New Zealand(NZ: SPK, OTC:SPKKY)

Hold 16.51 4.18 10.82 13.12 0.08 89.3 B 3/23/2022 4/18/2022 7.5 55 IntlCommunications

Q1 2022 Return: 4.16%. Semi-annual dividends declared for April is flat with a year ago. Next semi-annual earnings August 23. Quality Grade B (no change). Breakdown: 1. Dividendpayout ratio conservative and backed by resilient communications revenue, has paid same semi-annual dividend since April 2020. 2. Revenue Reliability ensured by dominance of marketwith network and capability improvements. Cloud, security and other advanced services are driving growth as management looks for ways to leverage best in class network. Plan to sellownership stake in wireless towers will recycle capital for other infrastructure. 3. Regulatory Relations positive in New Zealand. 4. Near-Term Refinancing risk manageable with $624 mil inmaturing debt through 2023. Has modest cost of debt capital with March 2030 bonds yielding 4.27% to maturity, though was 3.05% three months ago. 5. Operating Efficiency depends oncost cutting, EBITDA margin guidance is 31.2% for 12 months ending June 30, 2022.

Spire Corp(NYSE: SR)


Q1 2022 Return: 11.08%. Dividend increase in November. Next earnings expected May 6. Quality Grade A (No Change). Breakdown: 1. Payout ratio is conservative as is growth strategy.Even a shutdown of Spire STL pipeline should not threaten dividend policy with mid-single digit increases likely next few years. 2. Revenue Reliability boosted by heavily residential gasutility rate base (68% of revenue). Commercial and industrial are just 23% with the rest transportation. Unregulated revenue is tied to utility with marketing and a feeding pipeline andstorage system. Management guides to 5-7% annual earnings growth through FY2026, with 7-8% annual rate base growth as primary driver. 3. Regulatory Relations good in Missouri andAlabama, no concern about natural gas infrastructure bans. Doesn't appear to have major challenge recovering gas cost pass throughs from last winter. FERC is the major test with SpireSTL pipeline and shutdown is possible, though Commission has suspended rule requiring climate change assessment for new natural gas infrastructure. 4. Near-Term Refinancing Risk isreduced with $275 mil ($525 mil three months ago) in debt maturities through 2023. Still low cost of long-term debt capital with December 2045 bonds yielding 4.28% to maturity, thoughwas 3.53% three months ago. 5. Operating efficiency strong with EBITDA margin guidance 29.9% for fiscal year ending Sept 30, 2022.

SSE Plc(London: SSE, OTC:SSEZY)

Hold 23.67 2.67 17.75 8.07 0.34 37.2 B 1/13/2022 3/17/2022 -4.8 58.5 UK Energy

Q1 2022 Return: 4.96%. Semi-annual dividend paid in March is 4.5% higher than paid a year ago. Next semi-annual earnings May 25. Will produce green hydrogen at Scottish wind farm inalliance with Siemens Gamesa. Plans carbon capture and storage investment at UK gas plant with Equinor. Management says earnings for fiscal year ended March 31 will be 2.2-7.7%higher than anticipated due to higher FYQ4 wind and solar output that offset shortfall earlier in the year, says infrastructure investment on track. Quality Grade B (no change). Breakdown:1. Payout policy is tied to earnings, management plans dividend cut in FY2024 following restructuring moves, though is still increasing payout for time being. 2. Revenue Reliability is strongat network operations company plans to at least partially divest to focus on renewable energy, offshore wind business is lucrative but can be volatile. Primary driver of growth is assetexpansion in rewnable energy. 3. Regulatory Relations appear amicable in UK, inflation adjustments to rates may invite backlash. 4. Near-Term Refinancing Risk reduced with $1.428 bil inmaturing debt through end of 2023, was $2.033 bil three months ago, long-term cost of capital still appears modest with bonds of August 2038 yielding 3.37% to maturity, though was2.55% three months ago. Company holds solid Baa1 credit rating from Moody's BBB+ from S&P with stable outlooks. 5. Operating Efficiency will be tested by company's strategic shift,EBITDA margin for fiscal year ending March 31, 2023 guidance is 26.5%.

Suburban PropanePartners LP(NYSE: SPH)

Hold 16.33 7.96 18.18 7.8 0.33 38.5 C 1/31/2022 2/8/2022 -19 74.6 PropaneDistribution



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Q1 2022 Return: 12.12%. Dividend increase in July. Next earnings expected May 6. Quality Grade C (No Change). Breakdown: 1. Payout ratio is conservative but will fluctuate withweather-related impact on demand. Likely to raise dividend again this year at low to mid single digit percentage rate. 2. Revenue Reliability backed by rural nature of customer base wherenatural gas is not available. Propane gallons sold 44% to residential customers, 35% to commercial, 9% industrial, 5% government, 60% of residential users have automatic delivery.Management says no single customer accounts for more than 10% of demand. Weather an important driver of demand, wholesale prices are key to costs. Adding scale is best way toimprove profitability in fragmented fuels distribution business. 3. Regulatory Relations not a major factor affecting returns. 4. Near-Term Refinancing risk is a non-issue with no debtmaturities through end of 2024. March 2027 bonds yield 5.2% to maturity, a dramatic increase from 2.21% three months ago but company has time to refinance. 5. Operating Efficiencysteady, EBITDA margin guidance for FY2022 (end Sept 30) is 25%.

SunPower Corp(NSDQ: SPWR)

SELL 21.25 N/A -27.67 9.65 N/A 0 D N/A N/A N/A 60.1 EnergyTechnology

Q1 2022 Return: 2.93%. No dividend. Next earnings expected May 5. Faces several shareholder suits for allegedly not warning investors about negative business developments in recentmonths. Talks with FirstSolar to develop solar panel just for rooftop. Quality Grade D (No Change). Breakdown: 1. No dividend. 2. Revenue Reliability always challenged by competitiveenvironment, partnerships are likely to be key. Order volume is robust with bookings up 43% in Q4 from a year ago, executing projects profitably is threatened by supply chain issues andrising commodity costs. Management guiding to 2022 EBITDA range that's more than double 2021 total at the low end. 3. Regulatory environment is very positive for solar, marketprotection in US with tariffs is a key issue for supply chains. California changes to net metering rules is on hold for now but would be a major threat to business in state if adopted in someform this year. 4. Near-Term Refinancing risks manageable with $385 mil in maturing debt by end of 2023. Bonds due January 2023 yield have negative yield to maturity as convertiblevalue higher than par value. Key relationship is TotalEnergies with 50.84% of company. 5. Operating Efficiency weakens with competition, EBITDA margin 2.7% in 2021 and projected at6.2% this year.

Sunrun Inc(NSDQ: RUN)

SELL 26.79 N/A -50.04 -15.54 N/A 0 D N/A N/A N/A 47.9 RenewableEnergy

Q1 2022 Return: -11.46%. No dividend. Next earnings May 4. Quality Grade D (No Change). Breakdown: 1. No dividend. 2. Revenue Reliability will depend on ability to hold market sharein a competitive environment, partnerships are likely to be key especially with California utilities. Company has greatly improved scale following merger with former Vivint but still hasn'tproven sustainability of business model. Solar capacity increased 31% in 2021 as company reports fastest growth in five years, adds 20% more customers and order backlog growth is57%. Full year cost of revenue increased to 84% from 75% as every new dollar of sales yields a lower net profit. 3. Regulatory environment is very positive for solar in the states and mostcountries. California potential cut in net metering subsidy is a key test for all parties. 4. Near-Term Refinancing risk should be manageable with $369 mil in maturing debt by end of 2023.Debt is mostly loans at variable interest rates, costs are likely to rise this year after 42.1% increase in 2021. 5. Operating Efficiency affected negatively by competition, negative EBITDAmargin guidance for next two years as company still has not proven business model.

Superior Plus Corp(TSX: SPB, OTC:SUUIF)

Hold 9.43 6.06 -14.22 -5.76 0.06 50.7 B 4/28/2022 5/13/2022 1.6 55.4 PropaneDistribution



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Q1 2022 Return: -9.13%. No change in monthly dividend since December 2014. Next earnings expected May 12. Will buy Quarles Petroleum for $145 mil, closes acquisitions of KampsPropane and Kiva Energy for $240 mil, funded with credit facility proceeds. Mid-point of 2022 EBITDA guidance range is CAD430 mil, not including potential impact from CAD200 toCAD300 mil acquisitions of propane/fuels distributors. Quality Grade B (no change). Breakdown: 1. Payout ratio conservative, propane distribution now accounts for all of EBITDA.increases unlikely as company focuses on acquisitions. 2. Revenue Reliability affected by weather impact on propane sales in US and Canada but company can offset with increased scale.Residential is just 7.2% of volume sales, wholesale business is 50%. US growth with acquisitions offset Canadian weakness last year. US propane volumes are 70% residential, very likelycompany's most secure revenue source. Acquisitions and synergies from adding scale are primary drivers of growth. 3. Regulatory Relations have been generally solid with acquisitionsapproved quickly in US and Canada, most deals are small and under the radar in what's still a very dispersed sector. 4. Refinancing Risk is a non-issue near term with no debt maturitiesuntil 2026. Credit line costs could be a challenge this year unless managed carefully. 5. Operating Efficiency improves with business simplification, EBITDA margin guidance is 19.1% for2022, up from 13.6% in 2021.

T-Mobile US(NSDQ: TMUS)

Hold 132.84 N/A 2.1 21.05 8.08 0 B 5/1/2013 N/A N/A 60.7 Communications

Q1 2022 Return: 10.67%. No dividend. Next earnings expected May 4. Shuts down 3G wireless network at end of Q1. Quality Grade B (no change). Breakdown: 1. No dividend paid asmanagement strongly favors stock buybacks as 46.74% owner Deutsche Telekom seeks majority stake in company. 2. Revenue Reliability always at risk to competition though strongmarketing has made company a winner in recent years. Has now almost fully absorbed the former Sprint. 3. Regulatory Relations not challenged thus far from Biden FederalCommunications Commission and company is large enough to handle state issues painlessly at least to date. 4. Near-Term Refinancing risk still elevated with $12.925 bil in maturing debtto end of 2023. Cost of long-term debt capital is still low with April 2050 bonds yielding 4.52% to maturity, though up from 3.78% three months ago. 5. Operating Efficiency tested byabsorbing underperforming Sprint network, EBITDA margin guidance is 32.6% for 2022, down from 40.3% last year.

TC Energy Corp(NYSE: TRP, TSX:TRP)


Q1 2022 Return: 22.78%. Dividend raised 3.5%. Next earnings expected May 6. Fitch revises outlook for A- credit rating to negative, cites EBITDA "underrunning" its internal forecast.Quality Grade A (No Change). Breakdown: 1. Payout ratio conservative with dividend secured by fee-based, contracted cash flow from assets away from the well head. Managementguides to 3-5% annual growth through 2026. 2. Revenue Reliability assured by diversity of projects as company finds multiple avenues of investment. US natural gas pipelines (41.7%earnings) sell to utilities as do Canadian gas pipes (17%). Mexican pipelines also contracted to utilities/government entities (7.4%). Gas pipelines are generally regulated and focused onend-users. Liquids Pipelines are contracted and rest of earnings are from power generation operations also selling to utilities and government entities. Management guides to 5% annualEBITDA growth through 2026, primary driver is CAD24 bil in "secured capital projects." 3. Regulatory Relations solid throughout North America. Has cooperation of First Nations for projectsin Canada. Company appears to navigate turbulence in Mexico and desire of country's government to control its energy. Keystone XL pipeline project shelved for now but could resumewith new US administration. 4. Refinancing risk manageable with $2.919 bil in maturing debt to end of 2023. Cost of long-term debt capital is low with bonds of Sept 2079 yielding 6.1% tomaturity, was 5.5% three months ago. 5. Operating Efficiency rising with focused growth, EBITDA margin guidance for 2022 is 67.5%, up from 63.6% last year.

Telecom Italia(NYSE: TIIAY, IM:TIT)

Hold 3.31 2.66 -36.83 -36.35 0.12 11 D 6/21/2021 6/30/2021 N/A 59.7 IntlCommunications



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Q1 2022 Return: -27.20%. Annual dividend eliminated for 2022. Next earnings May 4. Takeover offer from private capital firm KKR appears deadlocked as buyer wants more access tofinances for due diligence. CVC is also bidding for "up to 49% of company's enterprise unit. Vivendi SA (23.75% owner) wants piece of that unit as well. S&P cuts rating to BB- with negativeoutlook on expected weak financial performance. Fitch cuts to BB with negative outlook on uncertainty from breakup plans. Quality Grade D (No change). Breakdown: 1. Dividendeliminated in wake of abysmal management guidance for 2022, breakup plans. 2. Revenue Reliability pressured long-term by competition at home, Brazil a bright spot. Plans to divide upcompany carry uncertainty. 3. Regulatory Relations stable in Italy, Brazil. Would be tested by a real takeover offer. 4. Near-Term Refinancing risk is reduced but still elevated at $2.896 bil(was $6.226 bil three months ago) in maturing debt by end of 2023. Cost of long-term debt capital is still low for junk rating with negative outlook with March 2055 bonds yielding 5.33% tomaturity, though was 4.9% three months ago. 5. Operating Efficiency depends on cost cutting, EBITDA margin guidance is 36.6% in 2022.

Telefonica(NYSE: TEF, SM:TEF)

Hold 4.97 N/A 17.81 13.21 0.17 NEG D 12/1/2021 12/29/2021 -7.8 63.7 IntlCommunications

Q1 2022 Return: 13.93%. Semi-annual dividend declared for June 2022 payment is same as a year ago. Next earnings May 12. Plays $1.5 bil for Li Liga Spanish soccer rights. Won't selltelevision unit to Vivendi SA. Quality Grade D (No Change). Breakdown: 1. Twice annual dividend is under perpetual pressure from CAPEX needs, debt reduction efforts, falling revenue (-11.4% in Q4). 2. Revenue Reliability secured by best in class network in focused markets but offset by exposure of overseas operations to exchange rate volatility and devaluations,especially in Brazil. Restructuring efforts much delayed and add element of uncertainty to projections, especially potential sale of South American operations. UK wireless merger withVirgin performing to expectations. Spain is an extremely difficult market. 3. Regulatory Relations complex with exposure to many countries, restructuring efforts have been a majorchallenge for several years. 4. Near-Term Refinancing risk is still elevated with $6.288 bil in maturing debt to end of 2023. Cost of long-term debt capital is still low with bonds due Dec 2051yielding 2.7% to maturity but was 2.09% three months ago. 5. Operating Efficiency depends on cost cutting, EBITDA margin guidance is 32.6% for 2022.

Telefonica Brasil(NYSE: VIV, BZ:VIVT4)

Buy<12 11.35 4.14 51.68 37.72 0.25 56.6 C 4/27/2022 10/25/2022 -17.8 19.5 IntlCommunications

Q1 2022 Return: 30.30%. Dividends declared for 2022 are thus far higher than paid in 2021. Next earnings expected Feb 23. Still waiting on Brazil regulators to clear path to acquire pieceof Oi SA's wireless network. Quality Grade C (No Change). Breakdown: 1. Dividend tracks earnings, uneven payments throughout the year, likely to be higher by mid-single digitpercentage this year as business grows. 2. Revenue Reliability ensured by best in class network, gaining further advantage with 5G and acquisition of a piece of Oi SA as regulators appearclose to allowing deal with conditions. Primary drivers of growth are 5G wireless and fiber broadband customer additions, Oi acquisition would be a huge plus. 3. Regulatory Relations arecurrently stable, review of Oi SA asset purchase is an ongoing test. 4. Near-Term Refinancing risk reduced with $336 mil ($659 mil three months ago, $1.074 bil six months ago) maturingdebt to end of 2023, 54.31% owner Telefonica SA is ultimate backstop still. Bonds are floating rate debt. 5. Operating Efficiency improves with cost cutting, network investment despitecompetition, EBITDA margin guidance is 42.3% for 2022.

Telephone & DataSystems(NYSE: TDS)

Buy<24 20.47 3.52 -10.5 -0.65 0.18 68.8 B 3/14/2022 3/31/2022 3 37.4 Communications

Q1 2022 Return: -5.41%. Dividend raised 2.9%. Next earnings expected May 6. Quality Grade B (No Change). Breakdown: 1. Dividend payout ratio is conservative, low single digitpercentage boosts likely ahead next few years even with elevated CAPEX on 5G and fiber broadband deployment. 2. Revenue Reliability is solid thanks to network investment and ruralfocus, data traffic grows, company won what it needed to at 5G spectrum auction and is now building out network. Fiber broadband and 5G customer additions are key driver of growth. 3.Regulatory Relations good with no current issues. 4. Near-Term Refinancing risk is a non-issue with just $20 mil in debt maturities through end of 2023. Bonds due December 2033 yield5.53% to maturity versus 4.54% three months ago but still a manageable cost given lack of refinancing needs and ability to fund CAPEX with cash flow, company is rated just belowinvestment grade at BB+ by Fitch, Ba1 by Moody's and BB by S&P all with stable outlooks. 5. Operating Efficiency improves on cost cutting, EBITDA margin guidance 22.6% in 2022.



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Telstra Corp(OTC: TLSYY, ASX:TLS)

Hold 14.99 3.73 19.42 2.75 0.3 104.7 C 3/2/2022 4/8/2022 -5 53.3 IntlCommunications

Q1 2022 Return: 0.33%. Semi-annual dividends declared for April payment are flat with a year ago. Next semi-annual earnings expected August 11. Company has new CEO and will likelyhave new Chairman of the Board this year, strategy not likely to change meaningfully as new CEO is company and industry veteran. Quality Grade C (no change). Breakdown: 1. Payoutratio is aggressive for competitive environment and could still be cut as a result of pressure from CAPEX, most likely will remain flat next few years. 2. Revenue Reliability menaced bycompetition and tough regulation, soft Australian economy though much is recurring. Success of strategic mergers looks critical to growth next few years, other drivers include stockbuybacks and expense reduction. 3. Regulatory Relations in Australia are volatile as National Broadband Network remains problematic for company. Restructuring is attempt to deal withchallenges. Regulators scrutinize attempt to merge network with TPG Telecom, so-called "super tax" threatens Digicel deal. 4. Refinancing Risk elevated with $4.197 bil in maturing debtthrough 2023. Cost of debt capital is modest but has risen with Nov 2027 bonds yielding 3.43% to maturity, versus 2.07% three months ago and 1.6% six months ago. 5. OperatingEfficiency helped by cost cutting, EBITDA margin guidance is 32.3% for 12 months ended June 30, 2022.

Telus Corp(NYSE: TU, TSX: T)

Buy<25 27.4 3.74 39.9 17.99 0.33 86.1 A 3/10/2022 4/1/2022 8.3 56.6 IntlCommunications

Q1 2022 Return: 10.74%. Dividend increase this month. Next earnings expected May 6. Quality Grade A (No Change). Breakdown: 1. Dividend payout ratio is conservative and backed byresilient income streams from wireless and broadband wireline services in western Canada. Management targets 7-10% annual growth. 2. Revenue Reliability secured by best in classnetwork in western Canada, 5G will widen advantage though rollout. Primary drivers are 5G uptake and fiber broadband connections, mid-point of 2022 revenue and EBITDA growthguidance is 9%. 3. Regulatory Relations stable in Canada, regulator relaxes rules on broadband to spur investment. No major current issues. 4. Near-Term Refinancing risk is manageablewith $885 mil maturing debt through 2023. Still has low cost of debt capital with February 2050 bonds yielding 4.74% to maturity but were 4.1% three months ago. 5. Operating Efficiencysteady with EBITDA margin guidance of 36% for 2022.

Tesla(NSDQ: TSLA)

Hold 1025.49 N/A 49.97 -0.14 N/A 0 F N/A N/A N/A 21.9 EnergyTechnology

Q1 2022 Return: 1.97%. No dividend. Next earnings April 20. Vehicle production in Q1 slightly lags target though at record despite global supply chain challenges and rising prices ofmetals needed for battery manufacture. Pauses solar roof installs on supply chain issues. Quality Grade F (No Change). Breakdown: 1. No payout. 2. Revenue Reliability uncertain ascompany has never demonstrated a scalable business model. Rooftop solar/battery business losses per dollar of revenue still rising for every additional dollar of sales, perverse reverseeconomics of scale. 3. Regulatory Relations are critical as company depends on tax credits, long-term threat is government EV push may start to favor rivals. 4. Near-Term Refinancingrisks are always elevated but manageable so long as company can raise money, has $2.35 bil ($3.019 bil three months ago) in maturing debt by end of 2023. Ability to issue stock at aprice of 95 times expected next 12 months earnings is antidote for high leverage now. CEO and 16.7% owner Elon Musk is key to company's fortunes. 5. Operating Efficiency remainsopaque, EBITDA margin expected at 22.7% for 2022, 2021 was well below guidance at 17.5%.

Tokyo ElectricPower(Tokyo: 9501, OTC:TKECF)

Hold 3.1 N/A -1.52 20.62 N/A 0 C 3/27/2013 N/A N/A 61.2 Int'l Electricity



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Q1 2022 Return: 28.40%. No dividend. Next earnings expected April 28. Plans key JPY100 bil yen bond offering with 5-year, 10-year and 12-year notes. Japanese power crunch in Marchmay bring more support for restarting still shuttered nuclear generation. Earthquake will likely keep political opposition to restart stoked up though. Quality Grade C (No Change).Breakdown: 1. No dividend likely until Fukushima resolution is much further along and more nuclear plants restart or reaches new agreement with Japanese government. No sign of any atthis point. 2. Revenue Reliability would greatly improve with nuclear plant restart despite competition and remaining nuclear cleanup costs at Fukushima site. Natural gas marketing ventureappears successful. Renewable energy is emerging growth driver. Overseas expansion is also a plus. 3. Regulatory Relations in Japan remain challenged by nuclear plant restart process,likely to be for some years. 4. Near-Term Refinancing Risk is manageable with $3.835 bil ($4.49 bil three months ago) in maturing debt by end of 2023, bonds of May 2040 yield just 1.42%to maturity, though were 1.12% three months ago. 5. Operating Efficiency would greatly improve with nuclear restart, EBITDA margin guidance for FY end March 31, 2022 is 8.1%, is 8%for next fiscal year.

TotalEnergies(NYSE: TTE, FP:TTE)

Buy<60 49.56 4.85 15.74 -5.07 0.73 52.5 A 3/18/2022 4/12/2022 1 35.4 Super MajorOil/Gas

Q1 2022 Return: 3.66%. Dividend increase this month. Next earnings April 28. Partners with Sempra Energy (see company comments) in North American LNG (buys 30% of Visto PacificoLNG in Mexico) and renewable energy, will spend $20 mil for "sustainable projects" in Libya. Management says it will phase out Russian investments rather than abandon themimmediately. Russia accounted for about 5% of cash flow in 2021, though impact of loss of income will be more than offset by favorable impact of higher realized oil and gas prices andrenewable energy investment this year. Plans to cut methane emissions 80% by 2030, have 100 gigawatts of renewable energy generating capacity. Quality Grade A (No change).Breakdown: 1. Dividend safety confirmed at $40 per barrel oil (Brent), company can support at lower price in near term. Higher oil prices increase ability to invest and cut debt. Still plans5% dividend boost this year. 2. Revenue Reliability helped by renewable energy and electricity growth, other downstream profits, LNG development but oil and gas prices will remain key fornext 5 years at least. 3. Regulatory Relations mostly benign and company has support of French government, but faces pressure elsewhere for Russian investments. 4. Near-TermRefinancing is manageable with $7.644 bil ($9.906 bil three months ago) in maturing debt through 2023. Cost of long-term debt capital is still low with bonds due June 2060 yielding just3.84% to maturity, though was 3.27% three months ago. 5. Operating Efficiency improves with cost cutting and especially higher energy prices, EBITDA margin guidance for 2022 is 19.1%,looks conservative.

TransAlta Corp(NYSE: TAC, TSX:TA)

Hold 10.72 1.47 10.53 -2.17 0.05 63.3 C 2/28/2022 4/1/2022 7.4 55.8 Int'l Electricity

Q1 2022 Return: -6.48%. Dividend increase in September likely. Next earnings expected Mar 13. Meta/Facebook will buy 200 megawatts of capacity from company's Horizon Hill windpower project in Oklahoma, cost of facility seen at $290 to $310 mil. Quality Grade C (No Change). Breakdown: 1. Payout ratio looks conservative with dividend backed by contractedcapacity and hedges on prices of merchant sales. Boost of at least upper single digit percentage appears likely this year. 2. Revenue Reliability backed by 85% contracted electricitygeneration in Alberta, hedging of merchant exposure. Company must manage exchange rates between Canada, Australia and the US. Asset expansion is primary growth driver, Albertapower market is also key to margins. 3. Regulatory Relations stable as company has now shut all coal fired power in Canada after replacing with gas and renewable energy. Appears tonavigate a tough Australian environment well. 4. Near Term Refinancing risk manageable with $501 mil in maturing debt by end of 2023. Cost of long-term debt capital is elevated withMarch 2040 bonds yielding 6.03% to maturity, was 5.15% three months ago. 5. Operating Efficiency improving on cost cutting, EBITDA margin guidance is 50.4% for 2022.

TransAltaRenewables(TSX: RNW, OTC:TRSWF)

SELL 15.26 4.9 -2.53 7.2 0.08 91.3 D 4/13/2022 4/29/2022 1.6 27.7 RenewableEnergy



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Q1 2022 Return: 1.13%. No change in monthly dividend since Sept 2017. Next earnings expected May 12. Quality Grade D (no change). Breakdown: 1. Monthly dividend is supported byownership stakes in 23 wind, 13 hydro, 7 natural gas and 1 solar facility as well as 1 natural gas pipeline, all "highly" contracted. Management likely to favor balance sheet and CAPEX overincreases for near future. Wind plant outage due to cracked foundations is also a worry for dividend this year with coverage thin. 2. Revenue Reliability backed by contracts, number offacilities, fuel diversification. Must manage exchange rate volatility from Australian, US assets. Mid-point of cash available for distribution guidance for 2022 is CAD265 mil, would coverdistribution at mid-point. 3. Regulatory environment positive for renewables development in Australia, Canada and US. 4. Near-Term Refinancing risk is low with $73 mil debt maturitiesthrough end of 2023, reliance on project finance. 5. Operating Efficiency steady reflecting asset performance, EBITDA margin guidance is 105.6% for 2022 but 50.2% in 2021 was wellbelow guidance of 98.6% three months ago.

TransmissioneElettricita ReteNazionale(OTC: TEZNY, IM:TRN)

Buy<24 26.84 1.62 25.94 15.09 0.33 69 A 11/22/2021 12/9/2021 7.8 72.6 Int'l Electricity

Q1 2022 Return: 6.35%. Semi-annual dividend declared for payment in June is 8% higher in Euro terms than a year ago. Next earnings May 11. S&P affirms BBB+ credit rating withpositive outlook, cites expected rate base growth of 7% a year through 2025, outlook mirrors positive view of Italy as well. May sell Latin American assets for EUR250-EUR270 mil. FY2021revenue up 4.6%, EBITDA up 2.2%, electricity consumption in Italy rises by 5.6% from 2020 as economy recovers from pandemic. Management sets guidance for EUR1.9 bil in 2022,EUR2.4 bil in 2025. Quality Grade A (No Change). Breakdown: 1. Payout ratio conservative. Twice annual dividend is backed by utility franchise with Italian government support andspurred by rate base growth. Upper single digit percentage increases likely next few years. 2. Revenue Reliability high as regulated grid operation contribute majority of cash flow, withnegligible risk to electricity prices or volumes. Investments in other countries are on similar business model though company must manage currency volatility. Asset expansion is primarydriver of growth. 3. Regulatory Relations positive in Italy, Brazil, Chile and Peru. Enjoys multi-year rate plans. 4. Refinancing Risk manageable with $3.364 bil ($4.568 bil three months ago)of maturing debt to end of 2023. Low cost of debt capital, bonds due Oct 2028 have yield to maturity of 1.61%, up from 0.57% three months ago). 5. Operating Efficiency steady withEBITDA margin guidance of 70.5% this year.

TransUrban Group(ASX: TCL, OTC:TRAUF)

Buy<12 10.21 2.13 1.64 4.56 0.15 81.8 C 12/30/2021 2/22/2022 -12.9 61.5 Global Toll Roads

Q1 2022 Return: 1.00%. Next semi-annual dividend declaration in June. Next semi-annual earnings August 18. WestConnex project closes on AUD540 mil financing speeding way forproject. Quality Grade C (No Change). Breakdown: 1. Current payout is in line with free cash flow, variable depending on how fast traffic rebounds but moving in right direction. Low singledigit percentage increase is likely this year. 2. Revenue Reliability benefits from increased driving, including electric vehicle usage. Key driver of long-term growth is building and operatingnew toll roads. 3. Regulatory Relations positive in key markets Australia, UK and US. 4. Near-Term Refinancing risk manageable with $3.251 bil in maturing debt through 2023. Bonds dueJuly 2034 yield 2.44% to maturity, was 1.41% three months ago. Ability to secure low cost financing is key to completing projects but management has been up to the challenge so far. 5.Operating Efficiency has remained resilient with EBITDA margin guidance 61.5% for 12 months ended June 30, 2022 from 59.5% in previous fiscal year.

UGI Corp(NYSE: UGI)

Buy<48 36.35 3.8 -11.18 -18.12 0.35 86.5 B 3/14/2022 4/1/2022 9.9 56.6 EnergyDistribution



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Q1 2022 Return: -20.36%. Dividend increase in May. Next earnings May 4. Biggest risk this year is profit margins on fuel distribution business, especially in Europe with rising wholesaleLPG prices and possible impact on sales and margins. Quality Grade B (no change). Breakdown: 1. Dividend is conservatively set, mid-single digit annual increases likely next few yearseven with current business challenges. 2. Revenue Reliability generally resilient, winter heating season key as always. Regulated natural gas utility stable and acquisition will further boostearnings from stable sources. Mountaineer acquisition boosts regulated utility rate base 14%. Propane sales in US (Amerigas) are 35% residential by volume, 39% commercial/industrial,18% motor fuel and 4% agricultural. Management guidance is still for 6-10% annual earnings growth next several years, with asset expansion the primary driver of growth. 3. RegulatoryRelations appear steady in all jurisdictions, though successfully closing mergers is always a test. 4. Near-Term Refinancing risk is manageable with $803 mil in maturing debt through 2023.Cost of long-term debt capital is low with bonds due February 2049 yielding 4.04% to maturity, though up from 3.31% three months ago. 5. Operating Efficiency has been steady despitediverse operations, EBITDA margin guidance is just 16.5% for fiscal year 2022 (end Sept 30), likely conservative.

Union Pacific Corp(NYSE: UNP)

Buy<220 241.98 1.95 12.04 -4.57 1.18 43 B 2/25/2022 3/31/2022 11.9 69 US Railroad

Q1 2022 Return: 8.92%. Dividend increase in December. Next earnings April 21. Expense control will be key this year as North Aemrican railroad volumes overall are reported at -3.7% inQ1 from year ago levels. Quality Grade B (No Change). Breakdown: 1. Dividend payout ratio is conservative and strongly supported by PSR (precision scheduled railroading) measurestaken to match costs with rail traffic on company's system. Upper single digit/lower double digit percentage increase is still likely this year. 2. Revenue Reliability is affected by volumes andUS economy, supply chain strain indicative of heavy demand. Primary drivers of growth are enhanced intermodal business and cost cutting in line with PSR. Fuel costs likely to beincreasingly key in coming years. 3. Regulatory Relations good in US, green policies favor rail in western US territory. 4. Near-Term Refinancing risk is manageable with $2.2 bil ($2.713 bilthree months ago) of debt maturities through 2023. Cost of long-term debt capital is still low with bonds due February 2070 yielding 3.97% to maturity, though were at 3.29% three monthsago. 5. Operating Efficiency is rising with PSR, EBITDA margin of 53.8% is guidance for 2022 despite supply chain and fuel cost pressures.

United Utilities(OTC: UUGRY, LSE:UU)

Buy<30 30.28 2.42 17.84754 4.558017 0.391459 64.4 B 12/16/2021 2/8/2022 4.4984526634216 73.603999024628 Regulated Water

Q1 2022 Return: 0.24%. Next semi-annual dividend declared in May. Next semi-annual earnings May 26. Management says revenue rose 3% in FY2022 (end Mar 31), mostly offset byhigher underlying costs but "in line with expectations." Quality Grade B (no change). Breakdown: 1. Payout ratio is conservative with low single digit percentage growth likely to accelerateto mid-single digits next couple years as investment earns returns under multi-year plan. 2. Revenue Reliability backed by regulatory deal fixing rates, CAPEX and returns through 2025under multiyear UK rate deal. Rates adjust for inflation to keep water utilities whole in UK. 3. Regulatory Relations stable, though opposition Labour Party in UK has not droppednationalization plans for utilities if it takes power. 4. Near Term Refinancing risk is a non-issue now with no maturing debt through 2023. Still has very low long-term cost of debt capital withnegative yield to maturity on November 2057 bonds. 5. Operating Efficiency is steady with EBITDA margin of 54.9% in FY2022 (end Mar 31) and 55.2% forecast for 12 months ending Mar31, 2023.

Uniti Group(NSDQ: UNIT)

SELL 13.5 4.44 31.27132 4.656183 0.15 36.6 D 3/31/2022 4/15/2022 -31.294235229492 169.31633797459 Communications



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Q1 2022 Return: -0.71%. Dividend same as paid in April 2020 and unlikely to be changed. Next earnings May 5. Quality Grade D (no change). Breakdown: 1. New dividend should hold solong as Windstream stays current on Master Lease Agreement payments. Windstream is private an no longer files regular financials so is almost imposslble for investors to monitor health,though indications from what has been released are that revenue declines have continued. 2. Revenue Reliability is linked to Windstream continuing MLA payments, a black box now thatWindstream is privately held. Uniti fiber business is not yet proven as profit engine as company faces larger and better financed players, though bandwidth demand is robust in US and hasbeen able to secure contracts. Mid-point of management guidance for 2022 funds from operations is $1.745 per share, covers current dividend rate by almost a 3-to-1 margin. 3. RegulatoryRelations appear benign for now with no apparent issues, though disputes with Windstream are always a threat to return company to court. 4. Near-Term Refinancing Risk appearsmanageble with no debt maturities through 2023, though company has $2.595 bil in 2024-25 maturities. Cost of debt capital is high with January 2030 bonds yield 7.91% to maturity (7.02%three months ago). 5. Operating Efficiency impossible to accurately measure since Windstream data not readily available, Uniti operating income margin 51% in 2021 and estimated at51.8% for 2022.

Unitil Corp(NYSE: UTL)


Q1 2022 Return: 9.31%. Dividend raised 2.6%. Next earnings expected May 4. Quality Grade A (No Change). Breakdown: 1. Payout ratio conservative with dividend well supported by100% regulated electricity and natural gas distribution. Low single digit dividend increases likely next few years. 2. Revenue Reliability backed by revenue decoupling for oil and gas inMassachusetts (27% electric, 11% gas revenue). New Hampshire is 57% residential sales, commercial and industrial customers include electrical components, healthcare and education.Maine is mostly residential. Largest customers purchase power on unregulated market. Management guides to a mid-point of 6% annual earnings growth next few years. 3. RegulatoryRelations are good with no real issues in Massachusetts, New Hampshire and Maine. 4. Near-Term Refinancing risk is manageable with $69 mil in debt maturities through 2023. Low costof long-term debt capital still with bonds due Sept 2049 yielding 4.8% to maturity, though was 3.95% three months ago. 5. Operating Efficiency is steady with EBITDA margin guidance of30.3% for 2022.

Veolia Environnment(OTC: VEOEY, FP:VIE)

Buy<38 29.66 2.16 18.93405 -21.2636 1.038267 72 B 10/8/2021 10/15/2021 28.866083145142 62.22720469483 Utility Technology

Q1 2022 Return: -12.23%. Annual dividend raised 48.3% over last year, bow 12.7% higher than pre-pandemic rate. Next earnings May 12. Starts up largest biomethane production plant inFrance, plans biorefinery in Finland and appears well set to get business from Europe's energy decoupling from Russia. Russian exposure currently is just 0.3% of group revenue limitingrisk. Management guides to 13.9% EBITDA growth in 2022, 4-6% excluding favorable impact of M&A. 2021 recurring new income increased 134.6% from a year ago, driven by cost cuttingand recovery of underlying businesses from pandemic. Quality Grade B (No Change). Breakdown: 1. Payout ratio is conservative after this year's increase as global business is rebounding,dividend now restored and should grow at upper single digit percentage rate annually going forward. 2. Revenue Reliability should benefit from recovery in industrial activity this year ascompany appears to be holding key market positions. Rebounding activity in Asia is a plus but pandemic continues to burden business. Suez takeover enhances synergies globally. 3.Regulatory Relations are good with no major current issues. 4. Near-Term Refinancing risk is likely to be elevated at least temporarily after Suez takeover, for now manageable with $3.528bil in debt maturities through 2023, modest cost of long-term debt capital with bonds due June 2038 yielding 4.2% to maturity, though up from 3.1% three months ago. 5. OperatingEfficiency will depend on cost cutting with EBITDA margin guidance of 16% for 2022.

VerizonCommunications(NYSE: VZ)

Buy<65 53.53 4.78 -2.611445 -0.1097991 0.64 47.5 A 4/7/2022 5/2/2022 2.2214269638062 68.138475089036 Communications



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Q1 2022 Return: -0.73%. Dividend increase in September. Next earnings April 22. Collaborating with Cisco Systems in autonomous vehicle technology as works on business applicationsfor 5G network, C-band spectrum boosts download speeds. 5G Ultra Wideband is extended to more areas as fastest and most effective 5G. Wins $966.5 mil new business from USDepartment of Defense. Quality Grade A (No Change). Breakdown: 1. Payout ratio is conservative with free cash flow after industry leading CAPEX amply covering dividend and allowingmodest annual growth as well. Management says CAPEX will "peak" this year, which may mean bigger dividend increases and stock buybacks. 2. Revenue Reliability secured by best inclass network, diversification of cash flow streams, focus on best customers. 5-G rollout has been slower than main rivals but is picking up steam as company retains customers andlaunches new services. Management guides to 3% revenue growth in 2022 and "at least" 4% by 2024. 3. Regulatory Relations good with no major issues. 4. Near-Term Refinancing risk isnow a non-issue with just $1.537 bil of maturing debt through 2023, versus $27.638 bil just three months ago. Cost of long-term capital is still low with bonds due March 2055 yielding4.14% to maturity, though was 3.38% three months ago. 5. Operating Efficiency rises with cost reduction, network upgrades, EBITDA margin guidance is 36.3% this year.

Vestas WindSystems(OTC: VWSYF, DC:VWS)

Buy<30 31.08 0.17 -22.42179 11.30191 0.37 30.1 C 4/6/2022 4/8/2022 -37.625667572021 18.989280245023 Utility Technology

Q1 2022 Return: -2.21%. Annual dividend cut by -78.1%. Next earnings May 4. CEO says company will "gradually withdraw from the Russian market," ending customer relationships andexiting factories. New 7.2 megawatt turbine is promising for areas with low and medium wind, diversifying product line. Order flow is robust in Q1 and extending into this month, key isdealing with supply chain issues and costs. Quality Grade C (No Change). Breakout: 1. Dividend follows earnings, which largely track orders. May increase payout again at mid-single digitpercentage rate despite supply chain pressures in 2022. 2. Revenue Reliability depends on ability to keep winning orders, resilient in pandemic and likely to take off further as renewablestransition accelerates globally particularly with offshore facilities construction. Services business is growing will help stabilize revenue over time. Management guides to rebound this year inprofitability. 3. Regulatory environment very favorable globally for rollout of wind power. Shape of Biden Administration plans are spurring orders this year. Russian exposure should notslow growth. 4. Near-Term Refinancing risk is a non-issue with no debt maturities until 2026. 5. Operating Efficiency has stabilized as company has gained scale globally, EBITDA marginguidance for 2022 is 7.9%, looks conservative.

Vistra Energy Corp(NYSE: VST)

Buy<25 24.51 2.77 43.66285 8.758107 0.17 27.3 C 3/21/2022 3/31/2022 70.540382385254 56.508968845065 Electricity

Q1 2022 Return: 2.86%. Dividend raised 13.3%. Next earnings expected May 24. Names new CEO to start in August, is currently CFO of company ensuring continuity of plan. QualityGrade C (no change). Breakdown: 1. Dividend payout ratio is conservative and follows rising free cash flow. Double-digit increases are part of management's long-term plan along withaggressive share buybacks. 2. Revenue Reliability is enhanced by contracted renewable energy and capacity markets, price hedging, offset by inherent volatility in wholesale generationand retail energy businesses. Texas market solid long-term despite winter disruption with changes likely to reduce risk and lessen financial blow from this year's extraordinary costs.Renewable energy/energy storage focus should reduce commodity price exposure of business over time. Mid-point of management's 2022 guidance range for EBITDA is $3.06 bil, freecash flow is $2.32 bil. Key drivers are asset expansion, cost reduction (interest expense lower by -39% from a year ago). 3. Regulatory Relations stable. Company demonstrates ability todeal with rising environmental and economic pressures on coal plants. Texas power market rules appears improved from pre-Winter Storm Uri in 2021. 4. Refinancing Risk is manageablewith $1.047 bil in maturing debt through 2023. Should be able to handle with rising levels of free cash flow. Bonds of July 2029 yield modest 4.85% to maturity, was 3.47% three monthsago. 5. Operating Efficiency improving on cost cutting, EBITDA margin guidance for 2022 is 22.7%.

Vodafone(NYSE: VOD, LN:VOD)

Buy<20 16.98 5.81 -4.413484 7.264685 0.505613 23.1 B 11/24/2021 2/4/2022 -16.015483856201 53.95935529082 IntlCommunications



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Q1 2022 Return: 11.32%. Semi-annual dividend not changed since February 2020. Next semi-annual earnings May 17. Bharti Airtel unit buys 4.7% stake in INDU Towers in India. Receivesseveral offers from private capital entities to invest in Vantage Towers unit, even partial monetization would free up funds for CAPEX elsewhere including fiber broadband and 5G rollout.Quality Grade B (No Change). Breakdown: 1. Payout ratio conservative with semi-annual dividend supported by cash flow. Low to mid-single digit increase is still possible in 2022. 2.Revenue Reliability at risk to competition, underperforming operations in certain countries such as Spain but is generally steady with 5G spurring growth. M&A to streamline operations andmonetize certain assets is a growth driver for earnings and share price, 5G rollout and fiber broadband are infrastructure focus. 3. Regulatory Relations generally solid, tested by approvalrequests for joint ventures and acquisitions. Operating in multiple environments presents complexity. Roaming revenue has been hurt by pandemic but should recover next few years. 4.Near-Term Refinancing risk is reduced and manageable with $4.131 bil ($7.684 bil three months ago) in maturing debt through 2023. Cost of debt capital is still low with August 2056 bondsyielding 3.48% to maturity, though up from 2.86% three months ago. 5. Operating Efficiency depends on cost cutting, EBITDA margin guidance is 33.6% for 12 months ended March 31,2022, as well as 12 months ended March 31, 2023.

WEC Energy Group(NYSE: WEC)

Buy<90 104.49 2.78 15.89283 8.34628 0.7275 67.5 A N/A N/A 7.0869288444519 58.433509623656 RegulatedElec/Gas

Q1 2022 Return: 3.57%. Dividend increase in December. Next earnings May 2. Quality Grade A (No Change). Breakdown: 1. Dividend payout ratio is conservative, with reliable growthbacked by regulated electric, natural gas utilities and contract renewable energy. Another upper single digit increase is likely later this year. 2. Revenue Reliability secured by utilitiesresilience. Residential plus farm is 30% of electric revenue, small commercial/industrial 35%, 35% large c&i. Big customers include paper, steel, mining but also agriculture and less cyclicalenterprises (23% of total large c&i). Foxconn is still building massive facility in service territory to start operations this year and ramp up through 2023. Illinois and Minnesota have naturalgas decoupling from revenue. Transmission investment is FERC regulated. Primary driver is utility CAPEX, with $17.7 bil through 2026 expected to drive "upper single digit annual earningsand dividend growth." 3. Regulatory Relations strong in all states (Wisconsin, Illinois, Minnesota, Michigan) and support utility investment, much with automatic recovery. Risk of natural gasservice bans is very low in states where company operates. 4. Near-Term Refinancing risk is manageable with $738 mil in maturing debt through 2023, very low cost of long-term debtcapital with bonds due December 2095 yielding 4.57% to maturity, was 4.05% three months ago). 5. Operating Efficiency steady with EBITDA margin guidance for 2022 of 37.7%.

Williams Companies(NYSE: WMB)

Buy<32 34.42 4.94 54.31 24.49 0.43 47.6 B 3/10/2022 3/28/2022 5.7 62.8 Energy Transport

Q1 2022 Return: 29.94%. Dividend raised 3.7%. Next earnings expected May 3. Buys Haynesville shale natural gas gathering and processing assets owned by private equity firm for $950mil, tapping into LNG export growth of region. Management says it expects to see a doubling of natural gas deliveries in Gulf of Mexico from LNG, company earns $300 mil a year currentlyfrom transporting gas from offshore Gulf wells to market. Quality Grade B (no change). Breakdown: 1. Payout ratio is conservative with dividend is supported by contracted cash flows. Lowto mid-single digit increases likely next few years. 2. Revenue Reliability solid with 97% of business "fee-based," new projects are increasingly difficult to build increasing scarcity value ofexisting assets. Also bolstered by business reliance on gas transportation service primarily to utilities, LNG exporter, industrial and power customers (81% of EBITDA) with oil just 7% andprotected by minimum volume contracts, 90% of customers on transmission systems are investment grade rated. Primary driver of earnings growth is asset expansion, management setsmid-point of 2022 EBITDA guidance at $5.8 bil after growth CAPEX of $1.3 bil. 3. Regulatory Relations challenging in some states but no threat currently to existing pipelines. 4. Near-TermRefinancing risk is reduced and manageable with $2.2 bil ($3.45 bil three months ago) in maturing debt through end of 2023. Cost of long-term debt capital is still low with May 2050 bondsyielding 4.25% to maturity, though up from 3.44% three months ago. 5. Operating Efficiency improves as new projects add scale, costs cut. EBITDA margin guidance is 54% for 2022.

Xcel Energy(NYSE: XEL)




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Q1 2022 Return: 7.32%. Dividend raised 6.6%. Next earnings April 28. Minnesota regulators decide against ratepayer-funded electric vehicle rebates of $150 mil but legislature is likely totake up issue. May have to fight ballot initiative in Colorado to cut electricity rates after company files energy plan in state, regulators won't allow Comanche 3 coal plant to run until 2034.Quality Grade A (No Change). Breakdown: 1. Dividend payout ratio is conservative and growth is backed by fully regulated electric and natural gas utilities in 8 states, vertically integratedmonopolies. Mid-to-upper single digit percentage increases likely next few years. 2. Revenue Reliability secured by utility investment and rate base growth, especially on replacing fossilfuels with wind. Retail electric sales are 45% decoupled from demand (Minnesota 33% and Colorado 12%). Multiple rate riders in other states safeguard sales as well. Management guidesto mid to upper single digit earnings growth next few years. 3. Regulatory Relations good in all states with company strategy aligned with environment goals in its jurisdictions. Affordabilityis likely to be an issue next few years, which may force company to delay plans or else cut costs elsewhere but management has been skillful navigating regulatory challenges in pastdecade. 4. Near-Term Refinancing risk is reduced and manageable with $1.715 bil ($2.95 bil three months ago) in maturing debt through 2023, still a very low cost of long-term debt capitalwith bonds due June 2051 yielding 3.44% to maturity, though up from 2.96% three months ago. 5. Operating Efficiency is steady, EBITDA margin guidance is 36.8% for 2022, up from35.3% last year.

York Water(NSDQ: YORW)

Hold 43.3 1.8 -9.482652 -6.347093 0.1949 60 A 2/25/2022 4/14/2022 3.9962594509125 48.954316350659 Regulated Water

Q1 2022 Return: -9.27%. Dividend increase in November. Next earnings expected May 4. Sells 975,600 shares at premium valuation to fund utility CAPEX and acquisitions cheaply. QualityGrade A (No Change). Breakdown: 1. Payout ratio conservative with dividend well protected with earnings, low to mid-single digit percentage increases likely the next several years. 2.Revenue Reliability solid, though commercial and industrial customers account for 28% of revenue, rest is steady residential and fire prevention. Utility CAPEX and acquisitions are primarysources of growth. 3. Regulatory Relations strong in Pennsylvania. 4. Near-Term Refinancing risk is a non-issue with $7.5 mil in debt maturities in 2022 and nothing else until 2026. Cost ofdebt capital is very low and leaves room for interest expense cuts at refinancing with bonds of December 2022 coupon yield of 8.43%, meaning refinancing should cut costs sharply. 5.Operating Efficiency high and steady with EBITDA margin 58.5% in 2021.

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