Morningstar Rating

Stock Research and Analysis

by Andrew Bischof, CFA

Bulls Say

The company's legacy 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 prices.
Dynegy's strong 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 Dynegy into bankruptcy.
Transmission constraints in the Midwest are limiting Dynegy's ability to capture additional value from its core generation fleet.
Even though Dynegy's fleet has emissions controls, four of its plants have coal ash ponds that may require significant capital outlays under the EPA's proposed Coal Combustion Residues, or CCR, rule. Read more 

Management

Dynegy's 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   Read more 

Profile

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

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