On March 19, 2014, share prices of
NRG Energy, Inc.
) 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
) 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
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.
) 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
In addition, the company started constructing Guam's first solar
power plant, Dangan, together with
The Boeing Company
) 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
EDISON INTL (EIX): Free Stock Analysis Report
NRG ENERGY INC (NRG): Free Stock Analysis
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