NRG Energy Rises Ahead of Investor Call on Company Strategy

Updated on
  • Company to hold conference call with investors Sept. 18
  • Last month, company had said it may split renewables business

NRG Energy Inc., the biggest U.S. independent power producer, led the Standard and Poor’s 500 Utilities Index and gained the most in more than two weeks on plans to update investors on its business operations and strategic direction.

NRG is expected to address concerns over its clean energy businesses, including a money-losing home solar unit, during an investor conference call on Sept. 18, Steven Fleishman, an analyst for Wolfe Research LLC, wrote Monday in a note to investors. The company may announce a plan to pay down debt and boost share buybacks, Fleishman said.

Shares rose 3.4 percent to $19.05 at the close Tuesday in New York, after earlier rising 4.4 percent to $19.24, the biggest gain on an intraday basis since Aug. 27.

NRG spokeswoman Karen Cleeve declined to comment on the research note.

NRG has slid about 29 percent this year, under-performing the Standard & Poor’s 500 Utilities Index, which has fallen 12 percent, according to data compiled by Bloomberg. NRG Yield Inc., a unit controlled by NRG which owns, operates and acquires renewable and conventional generation and thermal infrastructure assets, has dropped about 40 percent since the start of the year.

NRG’s Chief Executive Officer David Crane said on Aug. 4 the company may consider splitting off its renewables business in 2016 to address investor concerns over the complexity of its corporate structure. Crane also said the market has become “saturated” with renewable-energy holdings companies, often called yieldcos.

Princeton, New Jersey-based NRG will hold an investor conference call at 9 a.m. New York time on Friday, the company said in a statement Monday. NRG Yield Inc. also will be part of the call.