NextEra Energy Resources (NEER), a subsidiary of public utility holding company, NextEra Energy, Inc. NEE, has inked a deal with Luminant to divest two of its natural-fired power plants in Texas for an aggregate value of $1.59 billion.
Luminant, an affiliate of Dallas-based Energy Future Holdings Corp. (EFH), has agreed to purchase the 1,912-megawatt (MW) Forney Energy Center and the 1,076-MW Lamar Energy Center from La Frontera Ventures LLC, an affiliate of NEER.
EFH is currently undergoing a reorganization in the U.S. bankruptcy court and has received the necessary sanctions from the court for the purchase of assets. Luminant will finance the transaction with existing debtor-in-possession credit facility. The deal is expected to close in the first quarter of 2016.
The sale is consistent with NextEra Energy’s strategy of slimming down its portfolio of plants that sell power at competitive rates and realign capital in regulated generation since profit is more certain in the latter case.
In the third quarter of 2015, NextEra Energy’s operating revenues were $4,954 million, surpassing the Zacks Consensus Estimate by 2.7% and also increasing 6.5% from the year-ago figure primarily on the back of a rising customer count in the company’s service territories.
Zacks Rank
NextEra Energy carries a Zacks Rank #2 (Buy). Some other stocks worth considering in the same industry are Korea Electric Power Corp. KEP and Huaneng Power International, Inc. HNP, both sporting a Zacks Rank #1 (Strong Buy) and FirstEnergy Corp. FE, carrying a Zacks Rank #2 (Buy).
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