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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details