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.
Oct. 23, 2013, 4:59 PM
- The bondholder group who walked away from an earlier restructuring deal with Edison Mission Energy filed papers today in support of the company's proposed $2.6B sale to NRG Energy (NRG) ahead of the Chicago bankruptcy court's first look at the deal, set for Thursday.
- According to the bondholders, they are looking for a transaction that is not only superior to other options but also will minimize the disputes among the company and its creditors and preserve potentially lucrative legal claims related to Edison Mission's relationship with parent company Edison International (EIX).
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.
Oct. 16, 2013, 7:36 AM
Sep. 21, 2013, 8:25 AM
- Both critics and supporters of the new EPA draft regulations on CO2 emissions agree on one thing: This will be the final blow to many proposed coal plants.
- The truth is, U.S. coal generation already was in decline not because of climate regulations, but because of good ol' free-market capitalism; the boom in natural gas production has dramatically increased supplies, sent prices plummeting and prompted a shift away from coal.
- Among potential long-term winners: U.S. nat gas drillers such as CHK and XOM, drilling services firms such as HAL and BHI, pipeline companies such as SE and KMI, makers of gas-fired turbines such as GE and SI, power generators such as NRG and CPN if electricity prices rise.
- Likely losers: Coal appears headed for a decline, and companies with large Appalachian operations such as JRCC and ANR could suffer most as more coal comes from cheaper-to-access deposits in the Illinois Basin and Wyoming; big industrial companies, which have used low U.S. power prices as a competitive advantage, are concerned.
- ETFs: KOL, IDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT.
Sep. 18, 2013, 11:27 AM
- The sector may be ready to be a defensive favorite again, writes analyst Michael Lapides, as declines have left utilities trading at 13.5x-14x 2015 EPS estimates, inline or even slightly below the average of the past 5-10 years.
- It's a tepid endorsement and Lapides and team aren't yet ready to turn bullish on the overall sector, but did raise ConEd (ED +0.1%) to a Buy while removing NRG Energy (NRG -2.4%) from Goldman's Conviction Buy list. After underperforming NRG by 12% YTD, Calpine (CPN -1.9%) now represents Goldman's preferred way to get exposure to the tight Texas power market.
- Other favorites include NextEra Energy (NEE +1%) and American Water Works (AWK +0.5%).
- Utility ETFs: IDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT.
Sep. 5, 2013, 8:11 AM
- FuelCell Energy (FCEL) +14.6% premarket after reporting better than expected revenue growth and improved margins in its FQ3 results.
- Product sales, which comprise ~85% of revenue, more than doubled to $45.4M.
- Gross margin improved to +8.4% from -9.2%, driven by improved overhead cost absorption from higher production levels and a sales mix that includes power plants along with fuel cell kits.
- FCEL also announced a marketing agreement with NRG Energy (NRG), adding a new sales channel for the marketing and sales of its power plants.
Aug. 9, 2013, 8:41 AM
- NRG's Q2 profit plunged 48%, as the power producer blames mild weather during the summer air-conditioning season while expenses jumped and margins narrowed.
- Cuts its 2013 EBITDA guidance to $2.55B-$2.7B from its prior view of $2.62B-$2.82B, citing a volumetric sales shortfall caused by"unseasonably mild summer weather in Texas.
- Operating margin slipped to 10.1% from 18.3%; total operating costs and expenses jumped 49% to $2.63B.
- Completed the acquisition of a cogeneration plan in Texas for $244M; the deal gives NRG more capacity in the Gulf Coast region, where NRG sees significant growth potential.
Aug. 9, 2013, 7:08 AM
Aug. 9, 2013, 12:05 AM
Aug. 8, 2013, 5:30 PM
Jul. 19, 2013, 8:35 AM
Jul. 17, 2013, 2:17 PMNRG 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) | Comment!
Jul. 17, 2013, 9:03 AMNRG Energy (NRG) unit NRG Yield (NYLD) is raising $430.65M after pricing its NYSE IPO of 19.575M shares at $22 each, above the proposed range of $19-21. There's also a greenshoe option of 2.94M shares. NYLD, which is set to debut today, was formed as the primary vehicle through which NRG Energy will own, operate and acquire contracted renewable and conventional generation and thermal infrastructure assets. (PR) | Comment!
Jul. 15, 2013, 2:45 PMNRG Energy's (NRG +1%) solar unit has bought a 26MW Guam solar project from a Quantum Energy division. NRG will sell the project's output to the Guam Power Authority via two 25-year purchase agreements. NRG, which is hitting new multi-year highs today, hasn't been shy about making big solar investments. | Comment!
Jul. 8, 2013, 7:40 AMNRG Energy (NRG) unit NRG Yield says it expects its planned IPO of up to 19.6M shares to price at $19-$21 each. NRG Yield, which has applied for an NYSE listing under the ticker NYLD, was formed as the primary vehicle through which NRG Energy will own, operate and acquire contracted renewable and conventional generation and thermal infrastructure assets. | Comment!
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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