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.
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.
Wed, Jun. 10, 9:57 AM
- PJM Interconnection, the largest U.S. electricity grid, wins approval from U.S. regulators for a plan to increase reliability at power plants and avoid a repeat of the shutdowns and price spikes during the unseasonably cold winter of 2014.
- Under the plan, which takes effect in 2018 after a capacity auction this year, generators that promise to be available during peak demand periods will receive higher payouts than other plants and will be penalized for failing to meet the commitments; the auction, planned for May, was delayed after FERC declined PJM’s initial proposal and asked for more information.
- The largest generators in PJM are trading higher at the open: NRG +4.2%, AEP +1.4%, EXC +3.1%, PEG +1.1%, DYN +7.2%.
- Also: TLN +4%, NEE +1.2%, PCG +0.7%, EE +1.5%, SO +0.5%, D +0.2%, DUK +0.9%, XLU +0.9%.
Tue, May 26, 10:55 AM
- NRG Yield (NYLD +2.4%) is added to the Best Ideas List at Morgan Stanley following the recent decline in the share price, maintaining an Overweight rating and $32 price target.
- NYLD has plunged nearly 4% this month vs. an average ~5% gain in peer yieldcos, a divergence that has not been driven by any fundamental business changes but by confusion about the recent recap, the firm says.
- Stanely believes NYLD's fundamentals, which are driven by the growth in U.S. renewables, remain robust and will drive a projected 17% 2015-19 dividend compound annual growth rate.
- NRG -2.1%.
Wed, Apr. 1, 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%).
Dec. 24, 2014, 2:40 PM
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.
Sep. 9, 2014, 3:25 PM
- FuelCell Energy's (FCEL -10.3%) FQ3 earnings may have been disappointing but that doesn’t take away from the longer-term trends supporting the stock, Cowen analysts say.
- Product sales levels were indeed disappointing at $43.2M, 20% lower Y/Y, but short-term cash and cash equivalent totaled $113M, ~16% of market cap, the firm observes; total backlog rose marginally to ~$350M, but that represents ~50% of market cap, and gross margin of 9.2% was a notable Y/Y increase from 8.4%.
- Investors should watch for any news of additional projects with NRG Energy (NRG -0.9%), which has bought $35M in FCEL shares and extended a $40M loan to help toward completing projects.
- FCEL peers PLUG -4.7% and BLDP -4.2% also are sharply lower.
Jul. 31, 2014, 8:46 AM
- FuelCell Energy (NASDAQ:FCEL) +5.1% premarket on news that NRG Energy (NYSE:NRG) is providing financial assistance, including the purchase of $35M in FCEL common stock and establishment of a new $40M revolving construction and term loan facility to use for project development.
- After the sale of 14.6M common shares to NRG at $2.39/share, NRG now owns ~17M FCEL shares for a total 6% stake.
Jul. 1, 2014, 11:59 AM
- NRG Yield (NYLD +4.6%) says it completed its previously announced acquisition of three right of first offer assets from NRG Energy (NRG -2.4%), and raises its FY 2014 guidance for EBITDA to $410M from $292M and cash available for distribution to $140M as a result.
- NYLD is now targeting an annualized dividend of $1.50/share by Q4, up from $1.20; with a pipeline of nearly 2.1 GW of assets identified by NRG as being eligible for drop-down and the pending acquisition of the 947 MW Alta Wind portfolio, NYLD also raises its five-year target dividend per share compound annual growth rate to 15%-18% from 10%-15%.
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
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.
Nov. 12, 2013, 8:54 AM
- NRG Energy (NRG) -2.8% premarket even after its Q3 earnings report enjoyed a boost from last year's GenOn Energy acquisition.
- For the year, NRG lowered the high end of its previous EBITDA guidance range by $100M to $2.55B-$2.6B; for 2014, EBITDA guidance is cut to $2.7B-$2.9B from its previous estimate of $2.85B-$3.05B, primarily due to the decline in forward curves across core wholesale regions over the past few months as a result of the lack of scarcity pricing during the summer of 2013.
Oct. 25, 2013, 3:34 PM
- Shares of Calpine (CPN +7.1%) and NRG Energy (NRG +6.6%) are up sharply on the session.
- The move looks to be attributable to news that the newest member of the Texas Public Utility Commission would support mandatory reserve margins in order to mitigate potential rolling blackouts in the state.
- "Electricity use in Texas has been growing faster than generation is being built," Reuters notes.
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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