EnerTuition • 22 Comments
Sep. 18, 2015, 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.
Aug. 4, 2015, 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.
Jun. 18, 2015, 3:28 PM
- NRG Yield (NYLD -1.6%) has agreed to acquire a 25% interest in the massive new Desert Sunlight Solar Farm in southern California from GE for $285M plus $287M in project debt.
- NYLD says the acquisition provides a total ownership of 137.5 MW of operating solar capacity, and it expects the deal to increase the annual run-rate EBITDA by ~$45M and cash available for distribution by ~$22M by 2016.
- The deal puts NRG in a partnership with NextEra Energy (NEE +1.5%) and Japan’s Sumitomo, who are respective 50% and 25% owners of Desert Sunlight.
May 26, 2015, 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%.
May 15, 2015, 12:45 PM
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%.
Oct. 18, 2013, 2:51 PM
- NRG Energy (NRG +7.3%) agrees to acquire bankrupt Edison Mission Energy from Edison International (EIX) for $2.635B.
- NRG says the deal increases its generation portfolio by nearly 8K MW, providing additional fuel diversity, geographic diversity and opportunities to achieve economies of scale, and significantly expands the pipeline of assets available to drive growth at NRG Yield (NYLD) through future drop-downs with 1,600 MW of long-term, fully-contracted wind and natural gas assets.
- To fund the deal, NRG files to sell 12.67M common shares.
Jul. 17, 2013, 2:17 PM
NRG Yield (NYLD) delivers a strong IPO: after pricing its 19.6M-share offering at $22, shares of the NRG Energy (NRG -0.9%) investment vehicle opened at $26.75 and are currently at $27.29, up 24%. NYLD is promising healthy/reliable dividend payments via profits created by its base of electricity generation/infrastructure assets. (S-1) (IPO preview)| Jul. 17, 2013, 2:17 PM