Vectren Initiates 2017 Earnings Expectations; Increases Long-Term Outlook

(RTTNews) - Vectren Corp. (VVC) announced its 2017 consolidated earnings guidance expectation of $2.55 to $2.65 per share includes Utility Group earnings within a range of $2.10 to $2.15 per share, and the Nonutility Group/Corporate and Other earnings within a range of $0.45 to $0.50 per share.

Vectren raised its expectations for future earnings growth and dividend growth. The company's updated long-term targets include: consolidated EPS growth of 6-8 percent; Dividend growth of 6-8 percent, aligned with consolidated EPS growth; Consolidated payout ratio of 60-65 percent; Utility EPS growth of 5-7 percent; and Utility payout of 70 percent, which will fund 85-90 percent of the external dividend.

Carl Chapman, Vectren's chairman, said: "Vectren's successful execution of key strategic initiatives, including our ability to deliver consistent earnings growth over the past several years of 7 percent, has positioned us very strongly as we look out over the next five to ten years. Our continued investment in gas infrastructure and an accelerating investment in our electric system, along with a strong nonutility portfolio, give us confidence in our ability to achieve strong results. As a result, we are raising our expectations for future earnings growth and dividend growth."