Morningstar Rating

Stock Research and Analysis

by Andrew Bischof, CFA

Bulls Say

The company's coal fleet should be able to meet current environment regulations, limiting the need for burdensome capital expenditures.
Dynegy's generation fleet, particularly its coal generation fleet, is well positioned to benefit from a rebound in power and capacity prices.
Dynegy's balance sheet allows for financial flexibility to weather commodity-sensitive power prices. Read more 

Bears Say

Dynegy is subject to commodity-sensitive power prices, which previously forced it into bankruptcy.
Transmission constraints in the Midwest are limiting Dynegy's ability to capture additional value from its core generation fleet by selling power into higher-priced zones.
Even though Dynegy's fleet has emission controls, four of its plants have coal ash ponds that may require significant capital outlays under the EPA's proposed Coal Combustion Residues rule. Read more 


CEO Robert Flexon served as both CFO and COO at one of Dynegy's largest peers, NRG Energy, and we believe this experience bodes well for his tenure at Dynegy. He has an accounting background, but his time at a larger and more complex merchant generator   Read more 


Dynegy is a wholesale power provider operating in the Midwest, Northeast, and the West. The company operates a mix of roughly 13.8 gigawatts of natural gas and coal capacity   Read more 

A Favorable Wind Blowing for This Utility 
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