NRG Energy Inc. (NRG): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


NRG Energy continues to report in red as rising expenses are continuously eating the company's margins. In addition increase share outstanding is diluting earnings. NRG Energy posted strong revenues in second-quarter 2014 primarily on the back of growth in retail customer counts primarily as a result of strategic acquisitions, and higher sales volumes at the thermal business. We believe NRG Energy's focus on expanding renewable assets and optimization of power generation capacity will likely boost its future performance. The company plans to reorganize its existing operations and focus more on the high growth segments. Post reorganization NRG Energy will have three main businesses, all aiming to improve quality and reliability of services offered by the company. However, stringent environmental regulations and disruption in fuel supply are causes of concern. Thus, we maintain our Neutral recommendation.


Princeton, N.J.-headquartered NRG Energy Inc. is a wholesale power generation company engaged in the ownership, development, construction, and operation of power generation facilities. The company is also involved in the trade of fuel and transportation services the sale of energy, capacity, and related products in the United States and internationally and the supply of electricity and energy services to retail electricity customers in the Texas market.

NRG Energy has a significant presence in major competitive power markets in the United States, as well as a major retail electricity franchise in the Electric Reliability Council of Texas (ERCOT) market. The company's operations include competitive energy production and cogeneration facilities, power marketing, district heating and cooling production, thermal energy production and resource recovery facilities spread across North America and Australia. NRG Energy operates its retail activities under the brands like Reliant Energy, Green Mountain Energy and Energy Plus. NRG Energy's power plants generate electricity using a wide array of fuel sources including gas, coal, oil, nuclear and renewable energies (solar and wind).

As of April 1, 2014, NRG Energy's total net generation capacity stood at over 53,000 megawatt (MW).

Source: Company

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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 , Stocks

Referenced Stocks: NRG

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