Mon, Aug. 24, 2:47 PM
- Utility companies including Exelon (EXC +0.4%) and NRG Energy (NRG -0.8%), Calpine (CPN -2.8%), Dynegy (DYN -1.1%) and Public Service Enterprise Group (PEG -2.1%) show mixed results after analysts said they would be among the biggest beneficiaries of an increase in power prices awarded Friday by PJM Interconnection, the largest U.S. grid operator.
- PJM, which helps supply power to one in five Americans living from Newark and Chicago, announced it would boost capacity prices between 37% and 88%, which could add $2-$3 to the average consumers’ monthly bill across its territory.
- Moody’s had called it “arguably the most important” PJM auction in the operator's eight-year history both for PJM’s plan to improve reliability and as an earnings driver to help companies.
- Earlier: Three Exelon plants do not clear capacity auction
Tue, Aug. 4, 8:05 PM
- The utilities (NYSEARCA:XLU) sector was Wall Street's biggest decliner today as natural gas was the surprise loser from Pres. Obama’s climate plan, with the White House apparently abandoning its previous enthusiasm for gas as a cleaner alternative to coal.
- Gas producers were "confused and disappointed" that the administration eliminated an earlier projection that natural gas would contribute much more electricity, instead increasing the role of renewables; also perplexed were utility companies, who have led a power transformation and spent hundreds of millions of dollars to switch generating plants from coal to shale gas.
- American Electric Power (NYSE:AEP) CEO Nicholas Akins says the U.S. does not have the luxury of being able to ditch nat gas, saying the only way to power big industrial processes is through large-scale, 24-hour generation close to consumers - “solar doesn’t provide that and wind doesn’t provide that."
- The final plan is considered a boon for companies such as SolarCity (NASDAQ:SCTY) and NextEra Energy (NYSE:NEE) that have invested billions in renewable generation, but Sanford Bernstein calls NRG Energy (NYSE:NRG) the biggest potential loser from the plan, saying profits in some scenarios could tumble by half because most of its electricity comes from coal plants that are in EPA’s cross-hairs.
- ETFs: XLE, XLU, VDE, ERX, OIH, KOL, UTG, IDU, VPU, ERY, FCG, DIG, GASL, DUG, BGR, IYE, GUT, BUI, FENY, FIF, PXJ, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, SDP
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.
Tue, Aug. 4, 6:43 AM
Thu, Jul. 30, 6:48 PM
- New rules for U.S. electricity providers could save two money-losing Exelon (NYSE:EXC) nuclear power plants in Illinois from shutting down and may amount to a $10B bonanza to U.S. power producers, according to a Reuters analysis.
- A system of rewards and penalties approved last month by U.S. energy regulators that applies to a power auction next month may benefit some costly nuclear reactors in the PJM power region, which stretches from New Jersey to Illinois, that have had trouble competing against the growing use of wind turbines and gas-fired power plants.
- Other generators expected to benefit from the new requirements, according to the report, include Dynegy (NYSE:DYN), NRG Energy (NYSE:NRG), Public Service Enterprise (NYSE:PEG) and Talen Energy (NYSE:TLN).
- PJM will hold the auction starting Aug. 10 for power capacity for the June 2018-to-May 2019 time period that will include the new capacity performance standards.
Wed, Jul. 15, 7:05 AM
Mon, Jun. 29, 7:37 PM
- For some big U.S. power companies, the Supreme Court's rejection of EPA rules reducing air pollutants from coal-fired plants has arrived too late for them to turn away from a natural gas-fueled future.
- FirstEnergy (NYSE:FE) already has deactivated 5,429 MW of coal-fired generation and says it has no intention of placing any of it back on line, saying "deactivating power plants is an expensive process, and once they are deactivated it is difficult to restart them."
- Dynegy (NYSE:DYN) says it already spent $2B to comply with MATS and other air regulations, and NRG Energy (NYSE:NRG) says it already added the necessary equipment to comply with state and federal laws.
- Officials at other big power companies including American Electric Power (NYSE:AEP) and Duke Energy (NYSE:DUK) also say they will not change their ongoing MATS compliance activities.
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP
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%.
Fri, May 8, 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
Fri, May 8, 7:12 AM
Mon, Apr. 20, 7:45 AM
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%).
Mon, Mar. 16, 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.
Fri, Feb. 27, 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.
Fri, Feb. 27, 7:08 AM
NRG vs. ETF Alternatives
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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