Morningstar Rating

Stock Research and Analysis

by Travis Miller

Bulls Say

NRG owns highly valuable wholesale generation assets in power-hungry areas such as New York City, Southern California, and eastern Texas.
Management says it realized almost $500 million of cash flow benefits from its 2012 GenOn acquisition, representing almost one third of the price it paid.
NRG's renewable energy projects come with long-term contracted revenues, ultra-low-cost debt, and double-digit returns on equity. Read more 

Bears Say

Greenhouse gas emissions caps out of Washington, D.C., could erode profitability at NRG's coal plants.
We project that lackluster power prices and coal plant closures will result in flat earnings for the next three years.
NRG is investing substantially to be the first large player in markets such as home solar, enterprise energy solutions, carbon capture, and electric vehicles that might not live up to their promise. Read more 

Management

Since 2009, CEO David Crane and his management team have made five big moves, all of which have been, or we think will be, value-accretive. NRG spurned a $5.7 billion all-stock takeover bid from Exelon in mid-2008. It bought retailer Reliant Energy   Read more 

Profile

NRG Energy is the largest U.S. power producer with 49 gigawatts of nuclear, coal, gas, and oil power generation capacity in Texas, California, and the Mid-Atlantic region.  Read more 

The Future Looks Bright for This Wide-Moat Utility 
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