Welcome to our dedicated page for Via Renewables news (Ticker: VIA), a resource for investors and traders seeking the latest updates and insights on Via Renewables stock.
Via Renewables, Inc. (NASDAQ:VIA) is a prominent independent retail energy services company, providing alternative choices for natural gas and electricity to both residential and commercial customers across competitive markets in the United States. Founded in 1999 and headquartered in Houston, Texas, Via Renewables operates in 103 utility service territories spanning 20 states and the District of Columbia.
With over 20 years of experience, Via Renewables' core retail energy business remains fiscally strong, predictable, and essential to modern life. The company offers green energy options to hundreds of thousands of customers, emphasizing environmental, social, and governance (ESG) projects that significantly impact their stakeholders and retail customers.
Via Renewables' services are categorized into two main segments: Retail Electricity and Retail Natural Gas. The Retail Electricity segment generates the bulk of the company’s revenue. This segment involves purchasing electricity supply through market counterparties and ISOs, then supplying it to consumers via fixed-price and variable-price contracts. These contracts ensure stable and predictable energy costs, with green product alternatives available.
Recent achievements highlight the company's robust financial performance. For the quarter ending June 30, 2023, Via Renewables reported a significant net income of $19.1 million, a stark increase from $12.5 million in the corresponding period of the previous year. The company also reported a gross profit of $45.5 million for the same quarter, driven mainly by an increase in Retail Gross Margin and effective hedging strategies.
Via Renewables continues to show resilience and growth, even during challenging periods. For instance, the company navigated one of the hottest summers on record in ERCOT thanks to its risk management policies and portfolio diversification. In the third quarter of 2023, the company recorded a net income of $14.7 million despite industry challenges.
The company’s strategic outlook includes enhancing its financial flexibility and managing market volatility. Via Renewables focuses on expanding its positive impact not only in Texas but also across the United States. The company’s expansion strategy is evident in its recent efforts to strengthen its balance sheet, pay down debt, and boost liquidity, ensuring long-term sustainable growth for shareholders.
In 2024, Via Renewables announced a significant merger agreement with Retailco, LLC, with a cash consideration that represents a substantial premium to the closing share price. This merger is expected to enhance the company's strategic positioning and financial stability, with the merger process projected to conclude by the second quarter of 2024.
Via Renewables is committed to providing stable and predictable energy costs with a strong emphasis on ESG initiatives, positioning itself as a key player in the retail energy sector.
Via Renewables (NASDAQ:VIASP) has announced the appointment of David Bill III to its Board of Directors as an independent Class I director, effective November 18, 2024. Bill will serve on the Audit Committee. The company also announced the departure of Kenneth Hartwick from the Board, effective the same date. CEO Keith Maxwell highlighted Bill's extensive leadership experience, while Bill expressed enthusiasm about joining the board and supporting the organization's innovation and growth. Hartwick's departure is not related to any disagreement with the company.
Via Renewables (NASDAQ:VIASP) has announced a tender offer to purchase up to 800,000 shares of its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock at $22.50 per share in cash. The offer represents approximately 22.4% of outstanding Series A Preferred Stock. The tender offer will expire on December 17, 2024, at 5:00 p.m. NYC time, unless extended or terminated. The offer is not conditioned on minimum shares tendered or financing but is subject to other terms. D.F. King & Co. serves as information agent and Equiniti Trust Co. as depositary.
Via Renewables (NASDAQ:VIA)(NASDAQ:VIASP) has announced a quarterly cash dividend of $0.71847 per share on its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock. The dividend will be paid on January 15, 2025 to shareholders of record as of January 1, 2025. The company also noted that the floating rate period for the Series A Preferred Stock began on April 15, 2022.
Following the end of Three-Month LIBOR's publication on June 30, 2023, the replacement benchmark rate for the Series A Preferred Stock is now Three-Month CME Term SOFR, plus a tenor spread adjustment of 0.26161%. This change is in accordance with the Adjustable Interest Rate (LIBOR) Act and regulations by the Federal Reserve System.
Via Renewables (NASDAQ:VIA, NASDAQ:VIASP) has declared a quarterly cash dividend of $0.75881 per share on its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock. The dividend will be paid on October 15, 2024 to shareholders of record as of October 1, 2024. This announcement follows the transition to a floating rate period for the Series A Preferred Stock, which began on April 15, 2022.
In line with the Adjustable Interest Rate (LIBOR) Act and Federal Reserve regulations, the replacement benchmark rate for the Series A Preferred Stock is now Three-Month CME Term SOFR plus a tenor spread adjustment of 0.26161%. This change was necessitated by the cessation of Three-Month LIBOR on June 30, 2023.
Via Renewables announced an optional conversion right for its 8.75% Series A Preferred Stock, allowing holders to convert shares into $8.07 per share in cash. This follows a merger agreement where NuRetailco merged into Via Renewables. The conversion is optional and can be exercised in full, in part, or not at all. Shares will remain outstanding if not converted. The closing price of the Series A Preferred Stock on June 26, 2024, was $24.04 per share. Holders have until July 26, 2024, to exercise this right, with settlements expected by July 31, 2024. Details are available in the company's Form 8-K filed with the SEC.
Via Renewables has completed its merger with NuRetailco under an Agreement and Plan of Merger dating from December 29, 2023. The merger was approved on June 7, 2024, and became effective on June 13, 2024.
Under the merger terms, each share of Via Renewables' Class A Common Stock was converted into $11 cash per share, except for certain excluded shares. The Class A Common Stock will be delisted from NASDAQ. The merger does not affect the listing of Series A Preferred Stock. Shareholders will receive instructions to exchange their shares for the merger consideration.
Via Renewables announced that its shareholders approved the merger with Retailco and its subsidiary NuRetailco At a special meeting, 83.3% of Class A and B common stock holders and 51.0% excluding certain insiders supported the merger. The executive compensation related to the merger was approved by 94.7% on a non-binding advisory basis. The merger is expected to be completed by the end of Q2 2024, leading to the de-listing of Via Renewables' Class A common stock from NASDAQ, while the Series A Preferred Stock will remain unaffected and continue trading on NASDAQ.
Via Renewables announced the adjournment of its Special Meeting of Shareholders to June 7, 2024, to allow additional time for voting on the Merger Proposal. Despite strong shareholder support, the proposal did not meet the 'majority of the minority' vote requirement. Over 81% of the common stock voted in favor, but only 44% of non-excluded and non-insider shares supported it. Shareholders are encouraged to vote promptly via phone, internet, or mail. The record date for voting eligibility remains March 25, 2024.
Via Renewables, Inc. reported strong financial results for the first quarter of 2024, with net income of $19.1 million, adjusted EBITDA of $15.1 million, gross profit of $45.1 million, and retail gross margin of $35.7 million. The total RCE count increased to 338,000, with an average monthly attrition of 3.9%. The company's CEO mentioned stable commodity prices and growth in RCEs despite higher attrition due to increased sales activity. Via Renewables also declared a dividend and announced an acquisition of 12,500 RCEs in existing markets.
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