NRG Energy Hits 52-Week High - Analyst Blog


On March 19, 2014, share prices of NRG Energy, Inc. ( NRG ) touched a 52-week high of $30.64, finally closing at $29.79 with a pretty good trade volume of approximately 3.5 million, up 66.4% from the previous day.

The Driving Force

The market reacted positively after it was announced yesterday that NRG Energy has received approval from the Federal Energy Regulatory Commission for the entire transfer of Edison Mission Energy (EME) assets to the company. The EME asset transfer - an Edison International ( EIX ) unit - was previously announced in the fourth quarter of 2013.  

The addition of EME assets will add 8,000 megawatts (MW) to NRG's generation portfolio and fetch long-term synergies. Edison Mission's asset base includes 10 gas-fired plants in California, 4 coal-fired plants in Illinois and more than 30 wind projects in various states.

NRG Energy has been actively engaged in acquisition and expansion initiatives since the start of the year.  The company announced the acquisition of Dominion Resources Inc. 's ( D ) retail electric segment for an undisclosed amount. This acquisition will entitle NRG to an additional 600,000 new customer accounts and lucrative prospects in the Northeast and Texas regions.

In addition, the company started constructing Guam's first solar power plant, Dangan, together with The Boeing Company ( BA ) and its subsidiary NRG Solar LLC. This renewable project is expected to substitute roughly 2 million barrels of fuel oil and diesel consumption and generate 25 MW of electricity.

With efforts in place for clean energy production, NRG Energy and Virgin Limited Edition have entered into an agreement to provide renewable power to Necker Island. Under this agreement, NRG will produce power for the micro-grid in the island, 75% of which will come from solar, wind and energy storage technologies.

NRG Energy, a Zacks Rank #3 (Hold) company, is focused on a sustainable and cleaner way of power generation and emphasizes upon the reduction of carbon base-load. With the renewable market dynamics becoming more favorable in the U.S., NRG Energy's pursuit to increase its renewable portfolio will definitely prove to be a key growth driver.

BOEING CO (BA): Free Stock Analysis Report

DOMINION RES VA (D): Free Stock Analysis Report

EDISON INTL (EIX): Free Stock Analysis Report

NRG ENERGY INC (NRG): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: EME , BA , D , EIX , NRG

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