Wed, Aug. 3, 4:42 PM
Tue, Jul. 26, 3:58 PM
- Calpine (CPN +0.4%) is upgraded to Buy from Hold with a $20 price target, raised from $18, at Deutsche Bank, citing CPN's strong presence in the Texas energy market and its likelihood to benefit from market tightening.
- After lagging peers NRG Energy (NRG -0.1%) and Dynegy (DYN +1.3%) by ~20% YTD, Deutsche Bank sees an attractive entry point for CPN, calling it a power company with a "best-in-class fleet and regional diversification."
- The firm says CPN's balance sheet has improved, EBITDA is projected to grow ~15% organically within two years, free cash flow yield is ~20%, and management's tone has shifted increasingly into offense mode.
Wed, Jun. 29, 3:49 PM
- Dynegy (DYN +6.4%) is upgraded to Buy from Neutral with a $19 price target at Citigroup, which says the pullback in the shares following the Energy Capital buyout and Brexit seems overdone, particularly since Brexit has very little impact on the company.
- Citi believes DYN's debt restructuring could enhance its equity valuation, and cites the positive impact of the company's acquisition of the Engie portfolio.
- The firm adds that the Engie ownership is expected to generate additional annual synergies of ~$7.5M.
Wed, Jun. 15, 7:58 AM
- Dynegy (NYSE:DYN) agrees to acquire Energy Capital Partners’ 35% interest in the Atlas JV that the two companies formed in February to acquire Engie's U.S. power plants.
- DYN says it will assuming Energy Capital's share of the upfront equity funding at closing, then pay the P-E firm the revised discounted floor price of $375M post-closing for a total transaction value of $750M.
- DYN says the combined company would have ~34,700 MW of generation assets with a presence in all major competitive U.S. markets, with a portfolio comprising 71% gas and 29% coal by year-end 2017.
- To fund the deal, DYN launches a public offering of 4M equity units at $100 each, and begins syndication of an incremental $2B term loan B facility and a $75M revolving credit facility.
Tue, May 24, 5:58 PM
- NRG Energy (NYSE:NRG), Dynegy (NYSE:DYN) and FirstEnergy (NYSE:FE) are lower AH by -3%, -1.5% and -0.3% respectively following the results of PJM Interconnection's latest auction.
- PJM says its "second auction with stringent pay-for-performance standards attracted a significant amount of new resources at competitive prices to the PJM footprint," as it procured ~167.3K MW in the auction to ensure electricity capacity for the June 2019-May 2020 delivery year; the clearing price was $100/MW-day for the majority of the 13-state PJM region vs. the $164.77 rate set during last year's auction.
- Prices were lower than some analysts had expected and lower than last year's auction results due to market fundamentals of changes in supply and demand, PJM says.
Tue, May 3, 5:55 PM
- Dynegy (NYSE:DYN) says it plans to shut down multiple Illinois coal-fueled units, including two units at its Baldwin Power Station and one unit at Newton Power Station.
- The units combined generate up to 1,835 MW, and DYN says it is targeting an additional 500 MW for shutdown, with a final determination likely later this year.
- DYN says the decision to shut down the Baldwin and Newton units was made after they again failed to recover their basic operating costs in the most recent MISO capacity auction; earlier this year, DYN announced the Wood River Power Station would retire in June for similar reasons.
- DYN says a total of 2,800 MW of generation from Illinois will be lost, or ~30% of the power generation capacity in southern Illinois.
- Now read Dynegy beats by $0.33, beats on revenue
Tue, May 3, 4:44 PM
Thu, Apr. 28, 10:33 AM
- FirstEnergy (FE -11.4%) and American Electric Power (AEP -2.5%) are sharply lower after the FERC decides to review income guarantee agreements, which means the deals are not valid unless the two companies apply for and receive federal approval.
- The federal ruling pre-empts the ruling by Ohio's public utilities commission, which had considered for nearly two years plans to raise rates to subsidize some older coal-fired and nuclear power plants before unanimously approving them last month.
- "The decision is a disappointing and unfortunate intrusion by FERC into Ohio’s ability to protect its retail customers from market volatility and plan for the state’s generation needs,” AEP says.
- Competing electric utility Dynegy (DYN +3.3%) praises the FERC decision, saying the proposals accepted by Ohio regulators were "exorbitantly priced."
- Now read FirstEnergy beats by $0.05 and American Electric Power misses by $0.03, misses on revenue
Tue, Apr. 5, 6:58 PM
- The utilities sector (NYSEARCA:XLU) fell twice as hard as the overall S&P in today's trade, and the best guess from Barron's Ben Levisohn in explaining the move is a NYC rate change instituted by New York Independent System Operators.
- UBS analysts say NYISO's summer 2016 capacity prices declined substantially in the NYC Zone-J to $10.99/KW-month from $15.50/KW-month, which the firm attributes primarily to the latest parameters which showed a substantial reduction of in-city requirements; the wider regions continued to clear at relatively comparable levels.
- UBS sees the results as supportive of upstate generators Dynegy (NYSE:DYN) and Talen Energy (NYSE:TLN), but more cautious for NRG Energy (NYSE:NRG) due to the fickle nature of highly-sensitive NYC capacity prices.
- Now read Electric utilities: Powerful uptrend, or 'lights out' for the stocks?
Thu, Feb. 25, 7:59 AM
- Dynegy (NYSE:DYN) says it is partnering with P-E firm Energy Capital Partners to acquire French utility Engie's (OTCPK:ENGIY) U.S. power plants for $3.3B.
- The purchase will be made through a newly formed Atlas Power joint venture with Energy Capital.
- DYN, which will own 65% of the joint venture, says the acquisition would add 8,731 MW to its generation capacity, taking the total to 35K MW across PJM, ISO New England, ERCOT and other regulated power markets.
- Energy Capital will buy $150M of DYN stock at $10.94/share, which will raise its holding in the company to ~15%.
- Separately, Engie (formerly GDF Suez) reported a FY 2015 net loss of €4.6B from a €2.4B net profit in 2014.
- Earlier: Dynegy reports Q4 results (Feb. 24)
Wed, Feb. 24, 5:10 PM
- Dynegy (NYSE:DYN): Q4 Net Loss of $134M.
Tue, Feb. 23, 5:35 PM
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Tue, Jan. 26, 5:37 PM
Mon, Jan. 25, 11:18 AM
- EnerNOC (ENOC +53.1%) surges more than 50% after the U.S. Supreme Court upholds a federal rule that pays large users to conserve power.
- The Court says the FERC acted within its authority with its Demand Response Rule, which helps large consumers reduce their power use.
- "This case has been an overhang for the industry of demand response for a number of years, so to have a final resolution at the highest court in the land is a huge victory," ENOC President David Brewster tells Bloomberg.
- U.S. power producers that sell into competitive markets such as include NRG Energy (NRG -6.7%), Exelon (EXC -2.1%), Dynegy (DYN -9.1%), Calpine (CPN -5.7%) and American Electric Power (AEP -0.9%) would have benefited if the rule was eliminated.
Tue, Jan. 12, 3:02 PM
- Morgan Stanley upgrades the regulated utilities industry to In-Line from Cautious, believing the market will better differentiate high-growth names from others in 2016 and that the valuation gap between undervalued public companies and overvalued private companies will begin to close.
- The firm names Dynegy (DYN -2.7%) its top overall pick in the space, but also remains Overweight on NRG Energy (NRG -2.7%) and Calpine (CPN -4.5%), while maintaining its Underweight rating on Consolidated Edison (ED -1.5%), Southern Co. (SO -0.9%) and Public Service Enterprise (PEG -0.5%).
- Stanley also downgrades Laclede (LG -1.9%) and Pinnacle West (PNW -2.4%) to Underweight from Equal Weight.
Dec. 14, 2015, 6:37 PM
- American Electric Power (NYSE:AEP) says it reached agreement with Ohio regulators, environmental groups and other parties for long-term contracts with its coal-fired generators.
- The stipulated agreement, expected to be ruled on by the state's Public Utilities Commission in early 2016, would require AEP Ohio to enter into an eight-year power purchase agreement for the capacity, energy and ancillary service output of AEP's 2,671 MW ownership share of nine generating units and AEP Ohio's 423 MW contractual share of Ohio Valley Electric generation.
- The deal essentially allows AEP to subsidize revenues for its coal-fired power units in exchange for eventually shutting down or converting some of those units to gas and building new renewable energy projects, Bloomberg reports.
- Power producer Dynegy (NYSE:DYN), which owns generation units that compete with plants owned by AEP and FirstEnergy (NYSE:FE), says the pact supports “anti-market" subsidies with costs borne by Ohio residents and businesses in favor of AEP shareholders.
Dynegy, Inc. operates as a holding company with interest in production and sale of electric energy, capacity and ancillary services from their fleet of power plants. The company operates through its subsidiaries under three segments: Coal, IPH and Gas. The Coal segment operates through Dynegy... More
Industry: Electric Utilities
Country: United States