Origin Energy Ltd (ASX: ORG) shares are up 0.9% in early trade today, changing hands for $11.04 apiece.
This sees shares up 7.6% since market close on 12 February. A performance that smashes the 3.6% losses posted by the S&P/ASX 200 Index (ASX: XJO) over this same period.
That date is important, as the ASX 200 energy provider released its half-year earnings results on 13 February.
And it's with these results in mind that Ord Minnett's Tony Paterno said he sees "value in the stock" (courtesy of The Bull).
Here's why.
Time to buy Origin Energy shares?
"Recently released earnings met market expectations, and the company declared an interim dividend comfortably above consensus estimates," said Paterno, who has a buy recommendation on Origin Energy shares.
Indeed, Origin's board declared a fully franked interim dividend of 30 cents per share. That's up 9.1% from the prior interim payout.
And, depending on when you're reading this, there should still be time to grab that latest passive income payout.
Though not much!
Origin stock trades ex-dividend tomorrow, 4 March. Meaning you'll need to own shares at market close today to score the interim dividend. At the current share price, that represents an instant yield of 2.7%.
Adding in the 27.5 cent final dividend, paid on 27 September, and Origin Energy shares trade on a fully franked yield of 5.2%.
Digging into the strong results that have helped boost the ASX 200 energy provider over the past two weeks, Paterno said:
Total group revenue of $8.771 billion for the six months ending December 31, 2024, was up 10% on the prior corresponding period and statutory profit of $1.017 billion grew 2%. The dividend of 30 cents a share was up 2.5 cents.
Earnings guidance for its key energy markets business in fiscal year 2025 was reiterated, while the company declared its dividend payout level could be supported.
We view ORG as a solid, well managed operation and see value in the stock.
What guidance did Origin provide?
Origin Energy shares have likely received some added support from the guidance that Paterno mentioned.
Management reaffirmed guidance for its Energy Markets' full-year FY 2025 underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.10 billion to $1.40 billion.
"Origin remains well-placed to benefit from the energy transition given our diverse portfolio, leading customer position and access to international growth through our investment in Octopus Energy," CEO Frank Calabria said following the results.
With today's intraday lift factored in, Origin Energy shares are up 24% in a year, not including dividends.
