Oct. 14, 2014, 9:39 AM
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.
Aug. 14, 2014, 8:31 AM
- NRG Energy (NYSE:NRG) agrees to acquire Goal Zero, which makes solar-charged battery packs that can fit in a handbag and mobile generators that could run the main components of a home, in a move that puts NRG into the mobile solar business.
- The purchase, for an undisclosed sum, is one of a flurry of changes at NRG aimed at repositioning itself in a fast-moving utility market, CEO David Crane tells NYT's DealBook.
- "Utilities have to change their business model and become more customer-oriented or actually get into distributed generation or microgrids themselves,” says Lux Research analyst Aditya Ranade. “Competitors like Duke have so far stayed away because it’s too far out of their comfort zone. That has left that field open to smaller, more nimble competitors like NRG.”
Aug. 9, 2014, 8:25 AM
- Investors who had flocked to utility stocks now may be wondering what went wrong, after the sector was the S&P's worst performer in July.
- Fears of rising interest rates have recently sent dividend-paying stocks and high-yield junk bonds tumbling; utility stocks also have been hurt by the power sector's growing exposure to volatile natural gas prices, which have dropped ~19% since mid-June.
- Some analysts think dividend growth among utilities could slow or even stop, with power demand falling and utilities being forced to spend record amounts on replacing and upgrading aging plants and meeting stricter emission standards; Exelon (NYSE:EXC) and FirstEnergy (NYSE:FE) are big utilities that have cut dividends this year.
- Utilities that auction the power they generate - and are most exposed to moves in gas prices - have fallen the most; NRG and EXC have lost 20% and 13%, respectively, since the end of June.
- Regulated utilities such as Southern Co. (NYSE:SO) and Duke Energy (NYSE:DUK), whose rate changes are more closely controlled, haven't been hit as hard.
- ETFs: XLU, IDU, VPU, NLR, JXI, NUCL, UPW, RYU, DBU, IPU, FUTY, FXU, SDP, UTLT
Aug. 7, 2014, 9:50 AM
- NRG Energy (NRG -0.6%) opens lower after posting a Q2 loss, as higher operating costs and expenses masked an increase in revenue.
- NRG reported a Q2 loss of $0.30/share, down from earnings of $0.37 in Q2 2013 and missing the consensus analyst estimate of $0.15, if comparable.
- NRG's retail, renewables and corporate segments all reported losses for the quarter, but its wholesale business and NRG Yield (NYLD -3%) posted profits.
- Q2 operating revenue jumped 24% Y/Y to $3.62B, but operating costs and expenses surged 34% to $3.53B.
- Reaffirms FY 2014 guidance for adjusted EBITDA of $3.2B-$3.4B and free cash flow before growth investments of $1.2B-$1.4B.
- NRG also says it is reorganizing the company to focus more on the industry's high-growth segments, and announces a pollution reduction plan for its four Illinois coal-fired generating plants.
Aug. 7, 2014, 7:33 AM
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. 18, 2014, 7:30 AM
Jul. 15, 2014, 2:12 PM
- NRG Energy (NRG -1.3%) says it is working with Japan's JX Nippon Oil & Gas Exploration to build a $1B project it touts as the world's largest carbon capture project of its kind.
- NRG says the project will capture 90% of the carbon dioxide emitted from the WA Parish power plant near Houston and use the captured CO2 to inject into its nearby West Ranch oil field to boost oil production.
- The field currently produces ~500 bbl/day, but that could increase to more than 15K with the help of carbon dioxide injections, NRG says; essentially, the increased oil production would pay for the new infrastructure at the power plant.
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. 4, 2014, 8:12 AM
- NRG Yield (NYLD) confirms it has agreed to acquire the Alta Wind facility located in Tehachapi, Calif., for $870M, plus the assumption of $1.6B of non-recourse project financing, from Terra-Gen Power (earlier).
- The acquisition, which totals 947 MW of operating wind capacity, also includes a portfolio of land leases associated with the Alta Wind facility.
- NYLD expects the deal to increase its annual run-rate EBITDA by ~$220M and cash available for distribution by ~$70M by 2016.
- NRG +0.4% premarket.
Jun. 3, 2014, 6:42 PM
- NRG Energy (NRG) is nearing a deal to acquire the Alta Wind Energy Center, the largest wind farm in North America, for more than $800M, WSJ reports.
- Alta Wind is currently owned by an affiliate of P-E firms Global Infrastructure Partners and ArcLight Capital Partners.
- Alta Wind's farms have long-term purchase agreements with Southern California Edison (EIX), which serves more than 1M people in the region north of Los Angeles.
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
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
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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