As Power Markets Improve, NRG Energy Can Better Leverage Its Assets
Stephen Simpson, CFA
Stephen Simpson, CFA
May 8, 2015, 4:47 PM
- Oil stocks rallied today, with NRG Energy (NYSE:NRG), Range Resources (NYSE:RRC) and Southwestern Energy (NYSE:SWN) among the top performing stocks in the S&P 500, but Credit Suisse analysts Jan Stuart and Johannes Van Der Tuin are worried about a correction in oil prices.
- The firm says the direction of oil market fundamentals has been bullish, with accelerating demand growth followed by the turn of inventory and supply trends, but worries that oil markets have turned even more sharply; Brent and WTI are technically in break-out territory relative to ranges in place as recently as a month ago, according to the analysts.
- ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, TWTI, OLEM
May 8, 2015, 7:12 AM
- NRG Energy (NYSE:NRG): Q1 EPS of -$0.37 may not be comparable to consensus of $0.24.
- Revenue of $3.83B (+9.7% Y/Y) beats by $170M.
Apr. 20, 2015, 7:45 AM
- NRG Energy (NYSE:NRG) declares $0.145/share quarterly dividend, in line with previous.
- Forward yield 2.32%
- Payable May 15; for shareholders of record May 1; ex-div April 29.
Apr. 1, 2015, 12:26 PM
- Dynegy (DYN -2.1%) and NRG Energy (NRG -5.6%) are sharply lower after the FERC declined to approve a capacity performance plan submitted by the PJM Interconnection consortium and asked for answers to additional questions about the initiative.
- PJM operates a wholesale electricity market in the eastern U.S.; DYN is involved in the PJM and is looking to boost its share within the Regional Transmission Organization with proposed asset purchases, and a small part of NRG's capacity is within PJM.
- Deutsche Bank analyst Jonathan Arnold notes that FERC did not reject the proposal, but says FERC's action prolongs uncertainty for investors in the electric utilities that belong to PJM, which also include Exelon (EXC -1.8%), Public Service Enterprise (PEG -1.9%), American Electric (AEP +0.2%), PPL (PPL -0.4%) and FirstEnergy (FE -1.3%).
Mar. 16, 2015, 8:04 AM
- NRG Energy (NYSE:NRG) says it plans to repurchase an additional $100M in stock, taking advantage of the recent decline in the company’s share price.
- The new buyback program is in addition to the $100M program NRG concluded last month, as well as the $195M the company expects to return to stockholders this year through dividends.
- NRG has lost 13% YTD.
Feb. 27, 2015, 10:31 AM
- NRG Energy (NRG -1.2%) fluctuates in early trading and is now lower after swinging to a Q4 profit of $119M, compared with a year-ago loss of $297M, as favorable margins helped earnings more than double in its renewables segment.
- Income fell 16% Y/Y in NRG's business segment and slid 8% in the home retail segment, but more than doubled in the renewables segment; the losses were mostly because of mild weather, while the growth in renewables was in part due to better margins from existing assets.
- NRG affirmed its full-year guidance, which it had previously lowered in November, for adjusted EBITDA of $3.2B-$3.4B and free cash flow before growth investments of $1.1B-$1.3B.
Feb. 27, 2015, 7:08 AM
- NRG Energy (NYSE:NRG): Q4 net income of $119M.
Feb. 26, 2015, 5:30 PM
Jan. 20, 2015, 10:39 AM
- NRG Energy (NYSE:NRG) declares $0.145/share quarterly dividend, 3.6% increase from prior dividend of $0.14.
- Forward yield 2.26%
- Payable Feb. 17; for shareholders of record Feb. 2; ex-div Jan 29.
Jan. 15, 2015, 3:21 PM
- NRG Energy (NRG -0.7%) seeks to become the second largest U.S. rooftop solar company by year-end, with more solar rooftop installations in Texas, California and the Northeast, CEO David Crane tells Bloomberg ahead of the company's investor meeting.
- Conventional power producers face declining demand growth at the same time as a glut of natural gas depresses wholesale power prices, and Crane sees rooftop solar as a disruptive technology in such an era; “Everyone is beginning to believe that residential solar is this $1T market that currently has about 1% market penetration," the CEO says.
- NRG expects to double adjusted EBITDA by 2022 from this year’s guidance level, according to its investor presentation.
Dec. 24, 2014, 2:40 PM
Dec. 9, 2014, 9:07 AM
- NRG Energy (NYSE:NRG) says it has launched a $100M stock repurchase program as the first part of its 2015 capital allocation plan.
- NRG says the repurchases will be made with available cash, and with no defined time frame.
- "We have a lot of exciting opportunities to reinvest NRG capital in our businesses in a value enhancing way, but the value proposition of our own stock at these price levels is irresistible," CEO David Crane says.
Nov. 21, 2014, 2:32 PM
- NRG Energy (NRG +0.1%) outlines goals to reduce its carbon emissions 50% by 2030 and 90% by 2050 from a 2014 baseline, planning cutbacks it says will help avoid the release of 3B tons of carbon dioxide by 2050.
- The announcement of the new carbon targets follows vocal opposition by others in the power sector to new rules proposed by the Obama administration earlier this summer that would force power plans to cut their carbon dioxide emissions 30% from 2005 levels by 2030.
Nov. 18, 2014, 11:16 AM
- NRG Energy (NRG +1%) is taking steps to expand its residential solar business in California, as it tries to catch rivals with a stronger presence in the state such as SolarCity (NASDAQ:SCTY) and Vivint Solar (NYSE:VSLR).
- NRG Home Sales is announcing two new California offices as well as plans to offer loan to customers who want to own their systems but cannot afford the $20K-$30K upfront cost.
- NRG has been making inroads into the residential solar market for years, but it is making a major push this year after buying installer Roof Diagnostics Solar and online solar sales company Pure Energies.
- "The company has set its sights pretty high, so I'd expect to see this share grow pretty rapidly," an analyst says.
Nov. 5, 2014, 11:49 AM
- NRG Energy (NRG +3.5%) enjoys strong gains after Q3 results showed sharply higher earnings and revenues despite a relatively tame summer.
- The gain was led by the retail sector, which posted an $88M gain vs. a $56M loss in the year-ago quarter, driven by higher margins from the acquisition of Dominion Resources’ retail business which closed in April; profit in the wholesale market fell to $147M from $282M in the previous year.
- NRG cut its EBITDA outlook to $3.1B-$3.2B, down from its previous guidance of $3.2B-$3.4B.
- NRG also says it has started construction on a new $150M natural gas fired generation plant in Galveston County with the capacity to power 72K homes at peak demand.
Nov. 5, 2014, 6:56 AM
- NRG Energy (NYSE:NRG): Q3 EPS of $0.48 misses by $0.29.
- Revenue of $4.57B (+30.9% Y/Y) beats by $1.11B.
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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