Spark Energy Announces Stellar Earnings

Spark Energy (NASDAQ:SPKE) has announced 4th quarter earnings tonight and the results can only be described as stellar as net income of $47 million was a 97% increase from a year ago.

The companies retail customer count grew 35% year over year to end the year at 1.04 million.

Maybe the biggest part of the announcement was the engagement of Morgan Stanley to explore strategic moves as the company is not happy with a common share price of $8.60 which is off a 52 week high of $23.  Typically this means that the company might explore sale of the company.

Our recent purchase of a full position of the companies 8.75% preferred shares (NASDAQ:SPKEP) has dealt us fits as it has fallen from our purchase price of $24.50 to the mid $23’s.  We are hopeful this announcement will give investors reason to have more confidence in the companies future prospects.

The press release on earnings is here.

9 thoughts on “Spark Energy Announces Stellar Earnings”

  1. HI Rick–glad you got in at a good price. The preferred was up nicely (which is all I own) which was nice. If only we had a crystal ball that they would potentially put the company up for sale.

  2. SPKE common up one day 30%: i actually had bought some common along with P when you first posted it…. guess i should have bought more

  3. I will have to put it on the watch list and see if there is some eventual trading.

    1. Yes, As Nancy Pelosi said…”Embrace the suck”, lol… Sad to lose that one. Was hoping to squeeze another year out of that…Oh Tim since you have a little chicken little in you, like I do, I wanted to share that I got my rights exercised today through Vanguard to buy my GDL-C, since I owned GDL-B. I get to transfer my 3% B to the 4% minimum floor C which can adjust upward to 6% max and are puttable 4/20 and 4/22 if desired. No real need to though..The GDL-B 3% issue that also had puttable features was a rock star of stability. In its 7 years of existence it only went below par $50 one time for one day only in summer of 2013.And that below par price was $49.99. Hardly a capital loss exposure, lol. I went brain dead and should have asked for more if any extra were left unclaimed. I might call tomorrow to do that.

      1. Yes–some days I have a lot of chicken little, but I try to manage through my occasional panics. Will the GDC-C trade on a exchange? I really need to find time to check that out further.

        1. Tim a ticker will be assigned, but any shares that trade on the exchange from my understanding will only come from people like me who exercized their rights to buy them. You can oversubscribe too Vanguard said if all allotted shares by Gabelli are not bought. I am under impression none will be sent to market to sell by Gabelli though. The rights offering expires March 20. Vanguard said it may take 2-3 weeks after March 20, before I get my shares. So I doubt any will leak into the market until well into April.

    1. Great news about SPKE and I might add a little more SPKEP tomorrow morning.

      I’ve owned ABRN since it IPO’ed and of course hate to see it get called although I’m a little surprised they found a market for the replacement 5.625% senior unsecured notes due May 1, 2023 “in a private offering.” So I guess we won’t even get a look at them on the open market? The ABR-A became callable in early Feb. and ABR-B becomes callable in May so I’m surprised there was no mention of them being called since they pay a higher coupon than ABRN.

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