NRG Energy Sells Interest in NYLD, Transformation in Progress

A stock chart with a line and bar graph overlay
Credit: Shutterstock photo

NRG Energy, Inc.NRG has completed its previously announced sale of interest in NRG Yield, Inc NYLD and its Renewables platform to Global Infrastructure Partners (GIP) for $1.348 billion. The transaction will substantially lower the company's debt by $6.7 billion.

This deal is a part of NRG Energy's ongoing Transformation Plan and will allow the company to focus on core operations and strengthen balance sheet as well as increase value of shareholders.

Impact of the Transaction

The deal will substantially lower NRG Energy's long-term debt, which amounted to $14.8 billion as of Jun 30, 2018. The net proceeds will help the company to continue with its share buyback program. It intends to buy back shares worth $500 million in the second half of 2018. The company plans to utilize the proceeds to lower debt by an additional $640 million in the second half of 2018.

Post closure of this deal Global Infrastructure Partners (GIP) has become NRG Yield's Controlling Stockholder. NRG Yield will change its name to Clearway Energy, Inc and has appointed several new Directors and Officers.

The new controlling stockholder will assist NRG Yield to expand renewables growth opportunities and open new options for access to capital.

Consolidation in Utility Space

Utility companies are generally mature and fundamentally strong. Through acquisition, the companies expand their service area and customer base. Consolidation is a common phenomenon in utility space.

Dominion Energy D and SCANA Corporation SCG will ink a merger deal, which is expected to be completed by 2018 end, subject to pending consent from SCANA's shareholders; review and approval from the public service commission's of South and North Carolina; and authorization by the Nuclear Regulatory Commission.

Price Movement

In the past 12 months, shares of NRG Energy have gained 42.6%, against the industry 's decline of 5.9%.

Zacks Rank

NRG Energy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NRG Energy, Inc. (NRG): Free Stock Analysis Report

SCANA Corporation (SCG): Free Stock Analysis Report

Dominion Energy Inc. (D): Free Stock Analysis Report

NRG Yield, Inc. (NYLD): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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

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

In This Story


Other Topics


Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More