Mon, Nov. 23, 11:20 AM
- NRG Energy (NRG -0.6%) says it is seeking U.S. regulatory approval for the sale of its gas-fired power plant in Neoga, Ill., to P-E fund Rockland Power Partners II.
- The deal comes as NRG seeks to streamline its operations and pay down debt.
- NRG is asking that the sale of the 352 MW plant be cleared by Dec. 30.
Thu, Nov. 19, 6:57 PM
- NRG Energy (NYSE:NRG) makes a small management shakeup on the same day its stock value closed below $12/share for the first time since 2004.
- NRG names Gaetan Frotte as its new senior VP and treasurer, after serving as senior VP of finance and strategy with NRG Yield (NYSE:NYLD), replacing Gary Garcia, who left for undisclosed reasons in June; Chad Plotkin, VP of investor relations, will fill in for Frotte at NYLD.
- Despite announcing plans to cut costs, sell assets and spin off some of its renewable business, NRG has been unable to stem the decline in its stock value, which has dropped from a high of $37 in June 2014 to close today at $11.93.
Wed, Nov. 4, 7:26 AM
Tue, Nov. 3, 5:30 PM
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Mon, Oct. 12, 7:04 AM
Mon, Sep. 21, 6:10 PM
- NRG Energy (NYSE:NRG) sank to a 52-week low in today’s trade, but Credit Suisse sees a buying opportunity, rating shares at Outperform with a $30 price target an implying an 83% rise from today's close.
- The firm says it has been surprised by the sharply negative investor reaction to NRG's "well-reasoned plan" to cut costs and reduce debt, and that the move felt like capitulation on competitive power broadly and the better known NRG specifically from a market looking to duck commodity exposure in a risk-off backdrop.
- But Credit Suisse sees a clear path to return 17% of NRG's current market cap to shareholders over the next 15 months through buybacks and dividends while also paying down $650M of debt before stepping into a period of even richer free cash generation in 2017 and beyond, with punitive free cash flow definitions still producing $1B/year and growing.
- Separately, NRG says it is adding $200M to its stock buyback program.
Fri, Sep. 18, 5:57 PM
- NRG Yield (NYSE:NYLD) CEO David Crane today attempted to reassure investors that the provider of wind power and other alternative energy can rapidly increase dividends despite unexpected challenges in boosting revenue.
- NYLD "can be put on a growth trajectory of 15% annualized dividend growth through 2018 without... having to rely on the equity capital markets. Our planning is based on the presumption that the market for yieldco equity issuances will effectively be closed for an extended period," says Crane, who is also CEO of NRG Energy (NYSE:NRG), which owns 55% of NYLD.
- NYLD says it could beat its own guidance on dividend growth if winds pick up; for now, it expects its quarterly dividend payment to increase to $0.25/share by Q4 2016.
- Shares of NYLD and other yieldcos have tumbled in recent months amid concerns that the combination of operational problems and rising asset acquisition costs threaten dividends.
- Earlier: NRG Yield to buy NRG wind assets for $210M
Fri, Sep. 18, 11:18 AM
- NRG Energy (NRG -3.6%) unveils several moves to reduce debt, buy back shares and raise cash through an asset sale, as it faces pressure over its expensive clean energy businesses.
- In an investor presentation, NRG says it plans to spend $1.3B on reducing debt and buying back shares through 2016, including $250M in share repurchases this year, and plans to cut $150M in costs starting next year.
- NRG says it will form a “GreenCo” consisting of its money-losing home solar business, its renewable assets and its electric vehicle charging business; it plans to limit its financial commitment to GreenCo to $125M starting Jan. 1, hoping the business will be self-sufficient.
- Separately, NRG will drop down a 75% stake in its portfolio of wind farms to its NRG Yield (NYLD +2.4%) affiliate company for $210M.
- NRG has been the worst performing member of the S&P 500 Utilities Index this year, -31.3% YTD, as its corporate structure has grown complex and its balance sheet bloated while its green businesses have been expensive.
Fri, Sep. 18, 8:42 AM
- NRG Yield (NYSE:NYLD) agrees to acquire 75% of a portfolio of wind assets from NRG Energy (NYSE:NRG), consisting primarily of assets acquired by NRG from Edison Mission Energy in 2014, for $210M in cash plus $145M in assumed project debt and ~$97M in tax equity.
- The wind assets represent 814 MW of total operating capacity, which NYLD expects to deliver ~$41M of adjusted EBITDA and $21M of cash available for distribution on a run-rate basis.
- NYLD also reaffirms Q3 and FY 2015 guidance, and says it continues to have the ability to deliver a target 15% dividend/share growth through 2018.
Wed, Sep. 16, 7:03 PM
- J.P. Morgan analysts warn that companies with large amounts of floating-rate debt - including Chesapeake Energy, Freeport McMoRan, Ford and GE - could be at risk if the Fed decides to raise interest rates.
- Companies with variable/floating-rate debt suffer a more immediate impact by a rate hike than companies with fixed-rate debt, the analysts say; variable-rate coupons typically reset quarterly, meaning that changes in the base rate flow through almost immediately to variable-rate borrowers, while fixed-rate borrowers do not see such an impact until they refinance or issue new debt.
- JPM lists 25 companies - not including financials - that have the “highest variable-rate debt as a percentage of market cap": FMC, NRG, FCX, AES, CVC, LVLT, PVH, CHK, FE, DVA, THC, OI, CNX, F, HCA, FOSL, RCL, JOY, GE, ADS, ALLE, HBI, GT, DNB, AN
Mon, Aug. 24, 2:47 PM
- Utility companies including Exelon (EXC +0.4%) and NRG Energy (NRG -0.8%), Calpine (CPN -2.8%), Dynegy (DYN -1.1%) and Public Service Enterprise Group (PEG -2.1%) show mixed results after analysts said they would be among the biggest beneficiaries of an increase in power prices awarded Friday by PJM Interconnection, the largest U.S. grid operator.
- PJM, which helps supply power to one in five Americans living from Newark and Chicago, announced it would boost capacity prices between 37% and 88%, which could add $2-$3 to the average consumers’ monthly bill across its territory.
- Moody’s had called it “arguably the most important” PJM auction in the operator's eight-year history both for PJM’s plan to improve reliability and as an earnings driver to help companies.
- Earlier: Three Exelon plants do not clear capacity auction
Tue, Aug. 4, 8:05 PM
- The utilities (NYSEARCA:XLU) sector was Wall Street's biggest decliner today as natural gas was the surprise loser from Pres. Obama’s climate plan, with the White House apparently abandoning its previous enthusiasm for gas as a cleaner alternative to coal.
- Gas producers were "confused and disappointed" that the administration eliminated an earlier projection that natural gas would contribute much more electricity, instead increasing the role of renewables; also perplexed were utility companies, who have led a power transformation and spent hundreds of millions of dollars to switch generating plants from coal to shale gas.
- American Electric Power (NYSE:AEP) CEO Nicholas Akins says the U.S. does not have the luxury of being able to ditch nat gas, saying the only way to power big industrial processes is through large-scale, 24-hour generation close to consumers - “solar doesn’t provide that and wind doesn’t provide that."
- The final plan is considered a boon for companies such as SolarCity (NASDAQ:SCTY) and NextEra Energy (NYSE:NEE) that have invested billions in renewable generation, but Sanford Bernstein calls NRG Energy (NYSE:NRG) the biggest potential loser from the plan, saying profits in some scenarios could tumble by half because most of its electricity comes from coal plants that are in EPA’s cross-hairs.
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Tue, Aug. 4, 2:27 PM
- NRG Energy (NRG -10.5%) and NRG Yield (NYLD -13.7%) are sharply lower after reporting disappointing Q2 results (I, II), with earnings and revenues well below expectations; NYLD also lowered forward guidance, citing low wind production and fewer residential solar leases.
- NYLD cut guidance for 2015 adjusted EBITDA to $660M from $690M and 2015 cash available for distribution to $160M from $195M, while also making the "surprising assertion" that it does not expect the change to have any effect on its current dividend or long-term dividend growth.
- NYLD says it is targeting a $0.25/share quarterly dividend by Q4 2016, a 19% increase over the current rate and a 67% increase since its first post-IPO dividend in Q4 2013.
Tue, Aug. 4, 6:43 AM
Thu, Jul. 30, 6:48 PM
- New rules for U.S. electricity providers could save two money-losing Exelon (NYSE:EXC) nuclear power plants in Illinois from shutting down and may amount to a $10B bonanza to U.S. power producers, according to a Reuters analysis.
- A system of rewards and penalties approved last month by U.S. energy regulators that applies to a power auction next month may benefit some costly nuclear reactors in the PJM power region, which stretches from New Jersey to Illinois, that have had trouble competing against the growing use of wind turbines and gas-fired power plants.
- Other generators expected to benefit from the new requirements, according to the report, include Dynegy (NYSE:DYN), NRG Energy (NYSE:NRG), Public Service Enterprise (NYSE:PEG) and Talen Energy (NYSE:TLN).
- PJM will hold the auction starting Aug. 10 for power capacity for the June 2018-to-May 2019 time period that will include the new capacity performance standards.
Wed, Jul. 15, 7:05 AM
NRG Energy Inc is engaged in ownership & operation of power generation facilities; the trading of energy, capacity & related products; transacting in & trading of fuel & transportation services & the direct sale of energy, services to retail customers.
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