Price Point
Research analyst, growth, large-cap, long-term horizon

NRG Yield - Low Risk, High Growth Power Producer

Investment Thesis

NRG Yield (NYSE:NYLD) is the first of its kind power IPO separating contracted assets from the parent, NRG Energy (NYSE:NRG), which retains a 65.5% ownership. There are a number of reasons to own this power producer. The company has a stable operating business with long-term contracts and minimal operational risks. NYLD has a portfolio of conventional gas, renewable solar, and wind and thermal generation assets totaling 1.4GW with an average contracted life of 16 years. NYLD generates stable cash flows and it enjoys cash tax benefits from renewables and state policies. NYLD has Right of First Offer (OTCPK:ROFO) assets on an incremental 1.1GW from NRG, representing an estimated $250 million in incremental...

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