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
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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| 1 Comment
Dec. 23, 2013, 10:47 AM
- "Subsidies and falling technology costs are making distributed solar power cost-competitive [and] as more people switch to solar, utilities sell less electricity to those customers [causing the] utilities [to] spread their high fixed costs ... over fewer kilowatt-hours, making solar power even more competitive and pushing more people to adopt it," WSJ's Liam Denning notes, describing what is dubbed "the death-spiral thesis" for traditional utilities.
- Denning says it's the merchant generators (like NRG) that have the most to worry about: "For regulated utilities, the idea that solar panels will enable everyone to leave the grid, making such networks redundant, is overstated."
- Although the threat may seem distant for now, Denning says it's worth taking seriously if you're an investor. "The gyres may look exceedingly wide, but that spiral is taking shape," he says.
- Some individual names: Southern Company (SO), Edison International (EIX), Duke Energy (DUK -0.1%), FirstEnergy (FE -0.7%), XCel Energy (XEL +0.2%), American Electric Power (AEP -0.2%), Dominion (D -0.2%), Exelon (EXC +0.5%).
- ETFs: XLU, IDU, VPU, RYU, PUI, UPW, FXU, SDP, PSCU, FUTY, UTLT
Dec. 16, 2013, 4:45 PM
- Edison Mission Energy, which is hoping to move forward with a bankruptcy exit plan that would see it sold to NRG Energy (NRG), faces an obstacle from parent company Edison International (EIX), which has filed an objection to Edison Mission's disclosure statement because of various "deficiencies," especially when it comes to how EIX would fare in the restructuring.
- Among items EIX says are missing from the disclosure statement are more information about legal claims that may exist against Edison Mission's own directors and officers, the projected value of the restructured Mission, as well as tax consequences of the restructuring.
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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