NRG Energy, Inc.NYSE
Mon, Nov. 14, 3:25 PM
- NRG Energy (NRG +6.2%) is upgraded to Neutral from Sell with a $12 price target at UBS to reflect the lower leverage and more stable cash flows vs. peers.
- UBS says NRG continues to rationalize its balance sheet and expects to put at least ~45% of its 2017 capital allocation towards debt reduction, and stresses that NRG is in a much better position in terms of leverage than its peers, both in terms of absolute numbers and the company's ability to generate more stable cash flows thanks to its large retail business and capacity to drop down assets at the yieldco.
- Shares are rebounding sharply today, overcoming all of their losses following the Trump election victory.
Fri, Nov. 4, 12:28 PM
- Companies that sell electricity to utilities have reported slim profits or losses for Q3 compared to a year ago, as they continue to be hurt by falling prices for wholesale power and natural gas.
- NRG Energy's (NRG +13%) Q3 net earnings fell by $203M, due to lower energy margins and costs related to paying down debt, on 11% less revenue of $3.95B; CEO Mauricio Gutierrez says its generation business "performed well during some very challenging market conditions."
- Dynegy (DYN +8.6%) posted a Q3 loss of $249M, a 10x larger loss than in the year-ago quarter, saying it aims to navigate the low prices by buying plants and streamlining operations as well as ramping up lobbying efforts with regulators, including opposing New York's plan to subsidize money-losing nuclear power plants to keep them operating.
- Calpine (CPN +2.7%) last week reported Q3 net earnings of $295M, up 8% Y/Y, but net profit for the first nine months of the year was just $68M, down 76% Y/Y.
- Exelon (EXC +0.7%) has been faring better than some rivals since it also owns regulated utilities, which offer more stable profits.
- "It's an adverse environment because of the low gas prices, and it's aggravated by the growth of renewables," says Hugh Wynne at investment research firm SSR.
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU
Fri, Nov. 4, 6:53 AM
Thu, Nov. 3, 5:30 PM
Wed, Oct. 26, 1:22 PM
- Nuclear power will come to an end in the U.S. if the industry fails to obtain more government support, Carlyle Group predicts.
- U.S. nuclear reactors need more subsidies to keep running, such as a federal carbon tax that would reward them for their zero-emissions power, according to Bob Mancini, co-head of Carlyle's power unit.
- Mancini points to measures approved in New York as an example of the kind of help nuclear power plant owners will need to survive; in August, NY state regulators cleared ~$500M/year in subsidies as part of a clean energy plan to reduce greenhouse gas emissions.
- Relevant tickers include EXC, ETR, DUK, D, NEE, SO, PCG, ED, EIX, AEP, PPL, DTE, FE, NRG, PNM, POR, SCG, WR, XEL, LNT, GE, URA, NLR
Thu, Oct. 20, 3:43 PM
- Dynegy (DYN -3.4%) is downgraded to Sector Perform from Outperform with a $15 price target, cut from $22, at RBC Capital, which believes the company's 2017 and 2018 results will miss expectations amid limited gas price increases and a lack of investment in coal-exposed independent power producers.
- RBC expects poor investor sponsorship for coal-exposed IPPs will persist, likely limited gas price appreciation potentially caps EBITDA upside, and the case for a potential LBO is overdone.
- Separately, electric generators including DYN and NRG Energy (NRG -3.7%) have filed a lawsuit protesting nuclear subsidies approved in August by the New York Public Service Commission, saying a "recent U.S. Supreme Court decision bars states from replacing wholesale prices with state-determined costs."
Wed, Oct. 19, 7:23 AM
Mon, Sep. 26, 2:43 PM
- Westmoreland Coal (WLB -0.6%) says it will close its Jewett mine in Texas, eliminating 250 jobs, after NRG Energy (NRG -1.4%) decided last month to switch to cleaner-burning coal from Wyoming.
- The 31-year-old mine for decades serviced NRG’s Limestone coal plant in Jewett, but NRG is switching from dirtier lignite coal at the mine to low-sulfur coal from Wyoming's Powder River Basin.
- The Jewett mine, one of the largest in Texas, produced ~5.3M short tons/year of coal.
Fri, Sep. 16, 11:23 AM
- The Senate Finance Committee and the House Ways and Means Committee have launched a formal investigation into whether solar energy companies improperly received billions of dollars in tax incentives from the Obama administration.
- The committees sent letters to three companies in the residential solar industry - SolarCity (NASDAQ:SCTY), Sunrun (NASDAQ:RUN) and Sungevity - and four solar utility firms - SunEdison (OTCPK:SUNEQ), Abengoa (NASDAQ:ABGB), NextEra Energy (NYSE:NEE) and NRG Energy (NYSE:NRG).
- At issue is a Treasury Department policy that gives solar firms a 30% investment tax credit on the cost of acquiring a system, but solar energy developers do not always have the income to use the credits or the funds to buy and install solar energy systems, so they routinely enlist big investors and transfer the tax benefits.
Tue, Sep. 13, 8:57 AM
- NRG Energy (NYSE:NRG) has won the auction for bankrupt SunEdison's (OTCPK:SUNEQ) wind and solar projects in Texas and other states with a $144M bid.
- The sale is one of several that SUNE is holding since filing for Chapter 11 bankruptcy protection in April after an unsuccessful debt-backed acquisition drive.
- The bankruptcy judge will hold a hearing to approve the NRG bid on Thursday.
Wed, Aug. 24, 3:54 PM
- Westmoreland Coal (WLB -10%) plunges following news that NRG Energy (NRG -2.8) will terminate its lignite supply agreement at the mine in Jewett, Tex., two years early at year-end 2016, and conduct reclamation work for NRG upon conclusion of the contract.
- NRG says it will instead use “cleaner burning” coal from Wyoming’s Powder River Basin for its Limestone power plant in Jewett, which the company says is an economic decision that also will cut emissions at the plant.
- WLB says the lignite supply contract is a cost plus contract which accounts for ~2% of its 2016 adjusted EBITDA guidance, but the company expects to maintain positive cash flow generation at Jewett during the next several years with the cost plus arrangement continuing through reclamation.
Tue, Aug. 9, 4:54 PM
- SunEdison (OTCPK:SUNEQ) has filed papers in its chapter 11 bankruptcy case outlining plans to sell a number of North American solar- and wind-power projects to NRG Energy (NYSE:NRG) for $144M, subject to higher bids.
- SUNE wants to declare NRG’s renewable energy unit the stalking horse bidder in a sale process that would include a Sept. 6 deadline for bids, Sept. 9 auction and Sept. 15 court hearing to approve the winning bid.
- The value of NRG’s bid could climb to $188M, as it includes the potential for SUNE to collect up to $44M after the sale closes depending upon the achievement of certain milestones related to the projects.
Tue, Aug. 9, 6:27 AM
Mon, Aug. 8, 5:30 PM
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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, Jul. 13, 8:02 AM