The regional markets for electricity in the U.S. are more messed up than
many readers probably realize. Although the power stays on, the
incentives and pricing structures have led to capacity imbalances and
the prospects for more problems down the line. That's a good news / bad
news situation for an independent producer like Calpine (CPN)
- the good news is that this company's very efficient gas-fired
generation fleet can generate attractive cash flows when pricing gets
better, but the bad news is that there is little visibility on those
price improvements and regulators keep trying to postpone the day of
reckoning.
Read the full article here:
Calpine Offers Some Upside To More Realistic Power Pricing
Showing posts with label Calpine. Show all posts
Showing posts with label Calpine. Show all posts
Saturday, March 29, 2014
Tuesday, March 25, 2014
Seeking Alpha: As Power Markets Improve, NRG Energy Can Better Leverage Its Assets
There is a chance that independent power producer NRG Energy (NRG)
can offer investors the best of both worlds. NRG's management quality
has served it well through tough market periods, as the company has
executed good deals to improve its market positioning and capital
structure. Now, it may be approaching a period where its operating
assets can outperform on the back of higher gas prices and tight
capacity in key markets like Texas.
Follow this link to read more:
As Power Markets Improve, NRG Energy Can Better Leverage Its Assets
Follow this link to read more:
As Power Markets Improve, NRG Energy Can Better Leverage Its Assets
Monday, May 7, 2012
Seeking Alpha: AES Still Waiting For Stability To Translate Into Higher Multiples
Global utility company AES (AES)
is still waiting to see some of the tangible benefits of its multiyear
restructuring. AES has gotten a lot more realistic about its
international growth plans, added the stability of a regulated utility,
and sharpened its focus on generating (and distributing) cash flow
instead of a growth-at-any-cost philosophy. Nevertheless, the shares
have not exactly soared on this transition to the new AES.
Please read the full article here:
AES Still Waiting For Stability To Translate Into Higher Multiples
Please read the full article here:
AES Still Waiting For Stability To Translate Into Higher Multiples
Thursday, December 16, 2010
Icahn Bags Dynegy ... Maybe
For a company that has not strung together consecutive years of positive free cash flow in over a decade, Dynegy (NYSE:DYN) is a surprisingly hot commodity. Having rebuffed two bids from Blackstone (NYSE:BX), this independent power producer now has a bid in hand from Carl Icahn's Icahn Enterprises LP (NYSE:IEP).
The Deal In Hand
Icahn Enterprises is offering $5.50 per share in cash for Dynegy ($660 million), and will take on Dynegy's nearly $4 billion in debt as well. Curiously enough, the buyer agreed to allow Dynegy to seek out yet another better bid, giving the company until late January to find a better offer. Shareholders already seem to be counting on the idea that someone will make a competing bid, as the shares are currently trading a bit higher than that $5.50 deal price.
Icahn Enterprises is offering $5.50 per share in cash for Dynegy ($660 million), and will take on Dynegy's nearly $4 billion in debt as well. Curiously enough, the buyer agreed to allow Dynegy to seek out yet another better bid, giving the company until late January to find a better offer. Shareholders already seem to be counting on the idea that someone will make a competing bid, as the shares are currently trading a bit higher than that $5.50 deal price.
Ultimately, then, it seems like justification for Dynegy's refusal to close the deal with Blackstone. To be fair, it was not Dynegy's management or board that had the problem; they signed off on the deal. Rather, it was major shareholders of Dynegy, including Seneca Partners and Icahn, that balked at the price. While Blackstone did up its $4.50 bid to $5.00 in November, that still was not enough, and the transaction ultimately fell apart as Blackstone walked away.
Please click the link for the full piece:
http://stocks.investopedia.
Tuesday, August 17, 2010
Dynegy Finally Takes A Bid
This was not how the Dynegy (NYSE:DYN) story was supposed to end. One of the veterans of the independent power producer concept, Dynegy was supposed to have been able to leverage cheap coal-burning plants against higher electricity prices and produce streams of cash flow for shareholders. As with Reliant (NYSE:RRI), Mirant (NYSE:MIR), Calpine (NYSE:CPN) and NRG Energy (NYSE:NRG), the Dynegy story just never worked out according to plan.
Hamstrung by low natural gas prices, sluggish power prices and a lot of debt that came from seemingly ill-advised expansion, Dynegy has struggled to make a go of it. Instead of continuing the struggle, Dynegy decided to sell out to private equity giant Blackstone (NYSE:BX) for a total consideration of roughly $4.7 billion. Shareholders will get $4.50 of cash for each share if the deal goes through.
For the full article:
http://stocks.investopedia.
Hamstrung by low natural gas prices, sluggish power prices and a lot of debt that came from seemingly ill-advised expansion, Dynegy has struggled to make a go of it. Instead of continuing the struggle, Dynegy decided to sell out to private equity giant Blackstone (NYSE:BX) for a total consideration of roughly $4.7 billion. Shareholders will get $4.50 of cash for each share if the deal goes through.
For the full article:
http://stocks.investopedia.
Subscribe to:
Posts (Atom)