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NRG Energy is a reclamation king

Just call NRG Energy the power generator with renovation and reclamation on its mind.

NRG Energy, Inc. (NYSE: NRG) is a wholesale power generating company that owns/operates power plants with a net capacity of 24,175 megawatts.

A majority of NRG's revenue is baseload power. The significance? A stable cash flow. Further NRG's power source is largely natural gas-based, which is preferred, given likely additional restrictions/regulations moving forward for coal-fired plants as nations like the U.S. address climate change. NRG's power source mix: 45% natural gas, 34% coal, 16% oil, 5% nuclear.

NRG's strategy is to repower existing facilities and develop new generating capacity in markets where NRG owns assets, with an emphasis on baseload capacity, long-term power sales agreements, efficiency, and environmental enhancements. So far, NRG's business is on-track. The Reuters Fiscal Year (FY) 2007/2008 EPS consensus estimates for NRG are $2.24 to $2.26.

Continue reading NRG Energy is a reclamation king

Entergy (ETR) is a utilities play with pizzazz

Crude oil's upward arc continues. The price of natural gas, while cheaper than oil, seems to track oil's move higher. Meanwhile, coal, while substantially cheaper as a fuel for electricity generation, still rates as a dirty fuel, despite the use of moderately-cleaner coal-fired generation technologies. And renewable energy sources, while gaining momentum, are not a present-day or near-term solution.

An option left to meet the U.S.'s growing energy needs? The above suggests that nuclear power will play a larger role, and among the nuclear plays, Entergy (NYSE: ETR) is worth a look.

Entergy is an amplified energy play, of sorts. For those seeking immediate cash, there's Entergy's healthy $3 annual dividend. But for those who want more than a typical utility stock, there's the company's present nuclear power operations, and its prospects for significantly larger nuclear power operations, moving forward. Entergy closed Tuesday down 61 cents to $123.54.

Continue reading Entergy (ETR) is a utilities play with pizzazz

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Last updated: November 11, 2009: 01:08 PM

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