Jun. 3, 2014, 6:42 PM
- NRG Energy (NRG) is nearing a deal to acquire the Alta Wind Energy Center, the largest wind farm in North America, for more than $800M, WSJ reports.
- Alta Wind is currently owned by an affiliate of P-E firms Global Infrastructure Partners and ArcLight Capital Partners.
- Alta Wind's farms have long-term purchase agreements with Southern California Edison (EIX), which serves more than 1M people in the region north of Los Angeles.
Jun. 3, 2014, 12:45 PM
- EPA chief Gina McCarthy says she expects for significant changes in proposed state emission goals before a final rule is issued next year if the individual states show they can’t meet the targets.
- McCarthy says the agency made changes when developing its rules on mercury pollution in 2012 after utilities complained, and says she "wouldn’t be surprised if we made significant” revisions to the carbon proposal.
- McCarthy notes "confusion" around the targeted 30% emission cuts, saying it’s not a goal of the plan but an estimate of what the EPA thinks can be achieved.
- Coal names are broadly lower: WLT -4.4%, ACI -3.7%, ANR -2%, ARLP -1.9%, CNX -1.3%, CLD -0.3%, BTU -0.2%.
- Big utilities are mostly higher: EXC +1.6%, AEP +1%, NRG +0.7%, D +0.5%, XEL +0.4%, SO +0.3%, PEG +0.2%, NEE +0.1%, DUK -0.2%
- ETFs: XLE, XLU, TAN, ERX, KOL, IDU, VDE, OIH, ERY, FCG, VPU, DIG, KWT, GASL, DUG, IYE, GASX, PXJ, RYE, FENY, UPW, RYU, FUTY, FXN, FXU, DDG, SDP
Jun. 2, 2014, 3:31 PM
- Walter Energy (WLT -6.3%) shares aren't helped by the coal producer's statement that new EPA proposals aimed at controlling carbon emissions from U.S. power plants should have no material impact on the company; in fact, WLT is down more than peers: CNX +1.1%, BTU +0.1%, CLD -0.3%, ACI -2.8%, ANR -4.6%.
- Long-term losers also will include electric companies that burn lots of coal - such as American Electric Power (AEP +0.1%), Duke Energy (DUK -0.3%), Southern Co. (SO -0.3%) and NRG Energy (NRG -0.1%) - but stiff regulations have been expected for some time.
- Likely winners include companies that pump natural gas and those that use it as their primary fuel, such as Calpine (CPN +0.3%), and companies that operate nuclear plants that generate little carbon but have been expensive to run, such as Exelon (EXC -1%), hope that their aging plants will become more competitive.
- A reduction in coal-fired capacity would increase utilities' demand for natural gas by 3B-10B cf/day from 22B cf/day now, potential benefiting major natural gas producers like Chesapeake Energy (CHK +2.1%), Cabot Oil & Gas (COG -0.8%) and Range Resources (RRC -0.6%).
- ETFs: XLE, XLU, TAN, ERX, KOL, IDU, VDE, OIH, ERY, FCG, VPU, DIG, GASL, DUG, IYE, GASX, PXJ, FENY, RYE, UPW, FUTY, RYU, FXN, FXU, DDG, SDP
May 6, 2014, 9:47 AM
- NRG Energy (NRG +1.9%) opens strong after reporting a sharply reduced Q1 loss on soaring revenue that far outpaced market expectations, and agreeing to a drop-down of assets to NRG Yield (NYLD -0.2%) for $349M cash and the assumption of $657M in project debt.
- The deal consists of two solar facilities and a fast-start, gas-fired facility in California.
- NRG also raises its FY 2014 guidance, seeing adjusted EBITDA of $3.2B-$3.4B vs. its prior view of $2.7B-$2.9B; also raises its free cash flow outlook to $1.2B-$1.4B from $950M-$1.15B.
May 6, 2014, 6:59 AM
May 5, 2014, 5:30 PM
- ACM, ACOR, AER, AKRX, AME, ARCC, ARCO, ARW, BCE, BCS, CBOE, CNK, COCO, CRTO, CRZO, CYNO, DISCA, DNR, DTV, DWRE, EMR, EXH, EXLP, FE, GDP, GLDD, HCP, HFC, HPT, HSH, HSIC, HTH, IFF, ISIS, KWK, MMP, MNTA, MONT, MOS, MPW, MSO, MVIS, MWIV, NRG, [[NTi]], NUS, ODP, OXF, PDCE, PQ, PRIM, RDC, RHP, RTI, RTRX, STWD, TDG, TGH, TPH, TW, UBS, VMC, VSH, VTG, WCG, WNR, XRAY, ZBRA, ZTS.
Apr. 21, 2014, 8:59 AM
Mar. 11, 2014, 2:19 PM
- NRG Energy (NRG +1.7%) agrees to acquire Dominion Resources' (D -0.2%) retail electric business for an undisclosed sum, in a bid to expand its presence in the northeastern U.S. and Texas.
- Dominion's retail electric business serves more than 600K customers in northern states from Illinois to New York, while its Cirro Energy brand is focused on Texas.
- NRG has made a steady series of deals to boost its retail power business and its collection of power plants; it became the biggest wholesale electric company in the U.S. last year after it acquired GenOn Energy for ~$1.7B, and it is buying coal plants, wind farms and other assets out of bankruptcy from an Edison International subsidiary.
Mar. 11, 2014, 2:08 PM
- Edison Mission Energy wins court approval of a plan to exit Chapter 11 protection through a $2.64B asset sale to NRG Energy (NRG +1.7%) that will give NRG coal-burning power plants in the Midwest that may boost revenue if natural gas prices rebound.
- Edison Mission’s non-bankrupt parent, Edison International (EIX -1%), agreed last month to a nearly $1B settlement that resolved the unit’s tax, pension and other liabilities.
- NRG is paying $2.29B in cash and $350M in stock for the assets; EIX will continue to own what’s left of Edison Mission after the sale.
Feb. 28, 2014, 7:19 AM
Feb. 28, 2014, 12:05 AM
Feb. 27, 2014, 5:30 PM
Feb. 13, 2014, 7:25 PM
- The new Ivanpah solar power project in the California desert - dedicated today by Energy Secretary Ernest Moniz - is the first of its kind, and it may be among the last, because the heat it generates is so intense that it appears to be killing birds.
- The owners of the project - NRG Energy (NRG), Google, and BrightSource Energy - call the "tower power" plant a major feat of engineering that can light up 140K homes per year, but the heat created by the plant's thousands of special mirrors seems to be scorching birds that fly over the area.
- The companies say it's too early to draw definitive conclusions.
- Utilities owned by PG&E (PCG) and Edison International (EIX) have agreed to buy electricity generated from Ivanpah under 25-year contracts.
Feb. 3, 2014, 10:39 AM
- Utility analysts at Credit Suisse list their top utility stocks, preferring exposure to power generation opportunities than the risk of spiking power prices faced by retailers.
- The cold start to winter has led to spiking power demand and prices in the Northeast/Mid-Atlantic and parts of the Midwest that are well above recent years, opening up some earnings upside potential for competitive generators, the report says.
- The firm's sector favorites: CPN, ETR, EXC, NRG, PEG, PPL.
Jan. 22, 2014, 8:33 AM
Jan. 3, 2014, 7:57 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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