As Power Markets Improve, NRG Energy Can Better Leverage Its Assets
Stephen Simpson, CFA
Stephen Simpson, CFA
Sun, Feb. 28, 5:30 PM
Tue, Feb. 16, 6:57 PM
- George Soros, who has warned of a repeat of the 2008 financial crisis but this time with China as the focus of most problems, exited stakes in several energy-related companies and took a position in Pfizer (NYSE:PFE) during Q4.
- According to a 13-F filing, the Soros fund disclosed it had exited stakes in Chevron (NYSE:CVX), Chesapeake Energy (NYSE:CHK) and NRG Energy (NYSE:NRG), and reduced its position in Dow Chemical (NYSE:DOW); Soros bought ~685K shares in Baker Hughes (NYSE:BHI), which is merging with Halliburton (NYSE:HAL), as well as 50.7K shares in Kinder Morgan (NYSE:KMI).
- Soros also closed his stake in Olin Corp. (NYSE:OLN) and cut his stake in Vista Outdoor (NYSE:VSTO), and took a position valued at $216M in Synchrony Financial (NYSE:SYF), which was spun off from GE.
- Overall, the value of Soros’ holdings fell to $6.05B as of Dec. 31, from $6.61B at the end of Q3.
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.
Mon, Jan. 18, 2:27 PM
- NRG Energy (NYSE:NRG) declares $0.145/share quarterly dividend, in line with previous.
- Forward yield 5.74%
- Payable Feb. 16; for shareholders of record Feb. 1; ex-div Jan. 28.
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. 16, 2015, 5:38 PM
Dec. 10, 2015, 5:36 PM
Dec. 9, 2015, 5:40 PM
Dec. 7, 2015, 4:44 PM
- NRG Energy (NYSE:NRG) bounced off 52-week lows and finished with a 6% gain following the disclosure of insider purchases made today by CEO Mauricio Gutierrez and two other top company execs of 30K shares worth ~$266K (I, II, III).
- NRG was one of the energy sector's few gainers in an otherwise disastrous day for the group; shares fell 18% on Friday, capping a 27% decline since the resignation of former NRG CEO David Crane
Dec. 4, 2015, 5:57 PM
- Shares in NRG Energy (NYSE:NRG) and Dynegy (NYSE:DYN) - two of the largest U.S. independent power producers - each fell 18% today, even as most utility stocks (NYSEARCA:XLU) rose and the broader market surged.
- Barron's Amey Stone says one factor was yesterday's resignation of NRG CEO David Crane, who led the company’s push into renewable energy and was considered a visionary leader.
- Stone also notes that today's slide continued a drop that started December 1, the date of a settlement between utilities and regulators in Ohio over “income guarantees" that DYN opposes; since Dec. 1, DYN has dropped 30% and NRG has slide 27%.
- UBS analyst Julien Dumoulin-Smith points to the renewed slide in energy prices, the Ohio settlement, and discussions of possible extensions of tax credits for renewable energy.
Dec. 4, 2015, 12:44 PM
Dec. 3, 2015, 8:43 AM
- NRG Energy (NYSE:NRG) +2% premarket on news that President and CEO David Crane is resigning, effective immediately, to be replaced Mauricio Gutierrez.
- Crane has led NRG since 2003; no reason is given for his departure.
- Gutierrez has served as executive VP and COO since 2010 and has been with the company in various roles since 2004.
- NRG shares are down ~60% YTD.
Dec. 2, 2015, 7:53 AM
- NRG Energy (NYSE:NRG) agrees to sell two power plants for a combined $138M as it seeks to improve its cash flow and reduce debt.
- NRG is selling its 525 MW coal-fired Seward power plant in Pennsylvania to Robindale Energy Services and the 352 MW natural gas-fired Shelby County power plant in Illinois to Rockland Capital.
- The two plants “weren’t particularly valuable” and offered “miniscule” profits based on NRG’s estimates, Morningstar energy analyst Travis Miller says.
Dec. 1, 2015, 12:48 PM
- NRG Energy (NRG -1.4%) is initiated with a Sell rating and $11 price target at Citigroup, which expects NRG’s 2017 EBITDA to decline vs. 2016 as the company’s current hedges are $5-$10 MWh above forward curves.
- Analyst Praful Mehta says the valuation of NRG’s coal fleet is expected to be low, given the bearish stance on the average life of U.S. coal power plants at ~15 years, which indicates the company should take up deleveraging in the near term.
- Mehta believes NRG should reassess its leverage targets in-line with their asset life views and target leverage for retail, adding that although the company has identified the challenges facing it, its ability to face them is important.
Nov. 23, 2015, 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.
Nov. 19, 2015, 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.
NRG Energy, Inc. is an energy company. The company produces, sells and delivers energy products and services in competitive power markets in the U.S. Its wholesale operations include plant operations, commercial operations, EPC, energy services and other critical related functions. The Company's... More
Industry: Electric Utilities
Country: United States
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