NRG +1.9% as loss narrows, revenue soars

|About: NRG Energy, Inc. (NRG)|By:, SA News Editor

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.