EDE lowers earnings guidance on buyout expenses

Citing expenses related to its buyout by Oakville, Ontario-based Algonquin Power & Utilities Corp. (TSX: AQN), Joplin-based Empire District Electric Co. (NYSE: EDE) lowered its 2016 earnings guidance.

The utility provider now expects full-year earnings to drop 10-12 cents lower than previously forecasted Feb. 4, when the company released its 2015 quarterly report.

Earlier this month, Empire District projected earnings to settle at $1.38-$1.54 per share.

Five days later, the company announced it agreed to be purchased by Algonquin Power for $2.4 billion. The deal is expected to close in first-quarter 2017.

Empire District’s 2016 earnings are projected to be affected by $15-$17 million in transaction costs, roughly $4.5 million of which would be incurred in the first quarter, according to a news release.

In 2015, earnings per share totaled $1.29, a 26-cent drop from 2014.

The company posted $56.6 million in 2015 earnings, a nearly 16 percent decrease compared to $67.1 million in profits a year earlier.

Empire District serves 218,000 customers in Missouri, Kansas, Oklahoma and Arkansas. Its Show-Me State service area includes Greene County.

Empire District customers’ rates aren’t expected to be affected by the Algonquin Power purchase, according to the release.

EDE shares were trading at $32.84 as of 10:10 a.m., compared to a 52-week range of $20.69 to $33.75.