Hawaiian Electric has agreed to pay nearly $2 billion as part of a $4 billion settlement to resolve lawsuits over the Maui wildfires that killed over 100 people and destroyed historic Lahaina last year. This settlement, which includes the state of Hawaii and Maui County, is still pending court approval and is not an admission of liability. The August 8, 2023 wildfires led to 102 deaths and the destruction of over 2,000 structures, including many homes. Lahaina, the former capital of the Hawaiian Kingdom, was heavily impacted. Fire victims filed over 450 lawsuits seeking compensation for property damage and personal injuries. This settlement could help Hawaiian Electric avoid bankruptcy, similar to what PG&E faced after California wildfires in 2017 and 2018.
Market cap on 8/3/2023 prior to disaster: $38/share X 110,000,000 shares = 3.8B
I estimate the share price will reach 19.2 around earnings when they announce details of how they will be financing their 2B liability. They may have around 150M to 500M in insurance to offset part of the $2B. They own a bank, American Savings Bank – perhaps they can finance part of their loan. They can sell bonds to finance and also raise rates. Wall street bet these guys would go bankrupt and now they will not. Ultimately because HE makes about 200 million a year in profit (5 yr avg) and has a monopoly on power in Hawaii, I see no reason for HE to regain its 3B market cap foothold. I estimate in 4 years the share price will be $30+. I expect large institutions to begin buying after details of HE financing their liability announced on their earnings call August 9th after market hours.
I'm not factoring in that the stock is currently 24% shorted either!
Happy trails!
Edit: My positions amount to a YOLO:
502 shares @ 17.95
(2) Jan 16 2026 15C
(1) Dec 20 2025 20C
(1) Sep 20 2024 20C
This is not financial advice. All investments carry the potential of loss.
Hawaiian Electric Settlement Reached in 4B Deal! HE to the MOON!!!
byu/nateccs inwallstreetbets
Posted by nateccs
19 Comments
Finally!
Rip down to $5 Monday
HE was my second best investment this year, $7k to $30k in under 2 months
by the way. i think HE agreed to take such a big hit in part to cover Maui county who is most likely the biggest responsible party in this disaster. Maui FD claimed they put the fire out and left the scene!!! later in the day it re-ignited and ended up destroying Lahaina. Maui county didnt sound sirens and the Maui police blocked people from escaping the town due to suposed ‘live electrical lines’ — HE informed the fire and police on multiple occasions that day that the entire town had been de-energized! There is an ATF report that Maui county so far has refused to release to the public, because likely it will expose their gross negligence and hand in causing 5.5B worth of damages and lives lost!
How is this good news? And what is HE?
Wooohooo!
Yah how is this settlement bullish?
Instructions unclear, looking at PCG that has a bigger monopoly in CA still have not even recovered to 50% of their ATH since after the Paradise wildfire eons ago
Holding 17.5c 8/19. Monday gonna be a red market day bc of the Buffett Apple News. Hopefully this rips face
Didnt they cut their dividend earlier in the year to prepare for the settlement?
I do want to get into the electric game, but at least at 1st in a fund, suggestions, before I just make my own?
I’ve been watching a few like SO. HE wasnt on my radar, how they are up that much after burning down a city. Next time I’m buying money turttle 12 year old bourbon vs 8 year
I have sept 24 25C. This bitch is going to fly!
I didn’t know much about the position and the company, but after two long days in the market, good news is good news. It’s refreshing to see some positivity. Best of luck with your position—please keep us posted! 🙂
Sorry, I saw you explain it but I still dont understand how this is bullish?
Why are your 2026 leaps for a lower strike?
If you think HE is only going up, why not a higher strike for further out, especially since they would have been cheaper?
Great to see someone else promoting Hawaiian Electric! Let’s keep it going
Insightful post. HE may not rocket up on Monday, but it is a great long-term holding.
As the dominant electric utility on the islands, HE has a license to print money.
This shouldn’t be a surprise, but the insurance companies slowed things down the last week or so. Great stuff though. My ave is mid 9’s, but I plan to hold forever. Divvy will come back. Market thought HE would be on the hook for 5.5B and go bankrupt.
Congratulations (again) to longs.
Would it be considered “too late” to buy on monday? Or will the real catalyst be that shareholder call on the 9th.