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GenOn will be a long term hold with excellent return on your investment, just need to hold. Very possible that the pps will get back into the 20's in a few years... IMO GL
Thanks exisnet! Sounds great. I will most likely be buying on Monday. Have a great weekend my friend!
GenOn will start getting back to $3.50 range. 2012 should be a good year with the savings of the merger and operating expenses down.
Slowly buy on the dips and sell some into any spikes; pps seems to run possible to $4.25 or so then drops back to mid 3's. With the merger savings, pps may act differently. GL
GEN
Wow!!! I took a quick look at financial statements and see potential. I'm looking for value stocks that I can buy at a premium and hold for years. My investment strategy is more and more becoming like Buffets.
Holding RRI stock for about ten years now.
Oh ok. Thanks exisnet. I'll do a little digging myself. Are u long GEN? Have u been here a while?
R/S was cancelled around the time of the merger, I'll have to dig through the fillings to find the cancellation.
GEN
Hey guys! I'm thinking about getting into GEN. looks like increasing revenues. Operation expenses are still high, cutting into net profits, but with the money coming in I think they will be able to start cutting costs. I'm very new to GEN so I'm still doing my DD. One question I do have after reading comments about R/S ... Did it happen yet?
GEN board currently under construction, please post any questions or thoughts, will have the ibox updated soon. Thank you
Being bigger with Mirrant is better than stay alone as RRI without reverse split.
RRI will get the reverse before the merger and then mirrant will get the foward when they become genon. Not sounding good for RRI. Timber!!!
they will do it with mirrant...mirrant will do forward split.
what is better then? :)
I never have a good feeling about a reverse. Lets see what happens.
yes, reverse split was approved by shareholders.
IMO i think we will see some selloff monday early from people profit taking. possibly be able to get in at 3.60??
Not looking too bad! Nice bloom yesterday.
RRI seeing some volume today, IMO the near future of this stock will be huge! wish i had some gas for this rocket...
RRI and MIR merging may make the RRI side look a little better after the merge. I am ready! Merger should be before the years end.
RRI sucks.....
and will definitely not go bankcrupt. Time to buy at 3.80???
Mirant, RRI Energy Shares Climb On Higher Capacity Prices
NEW YORK (Dow Jones)--Shares of RRI Energy Inc. (RRI) and Mirant Corp. (MIR) climbed Monday as prices paid to keep power plants available rebounded in parts of the eastern U.S.
Capacity prices rose throughout the PJM Interconnection, a 13-state power market in the Mid-Atlantic region and parts of the Southeast and Midwest, for a period three years from now. The increases were made public Friday evening when PJM released results of its annual capacity auction.
Analysts said Mirant and RRI Energy--which last month announced plans to merge--appear to be the biggest beneficiaries of the higher capacity prices. Shares of Mirant climbed to their highest intraday level since mid-February, recently trading 4.6% higher at $13.09, while RRI Energy traded up 4.1% to $4.55. The two companies are independent power producers selling their energy and capacity at market prices rather than at regulated rates.
Utilities and retail suppliers are required to buy capacity, which provides an incentive to help ensure sufficient operational generation to meet demand in coming years. The money compensates power plants for being operational, not for the electricity they produce.
After the market closed Friday, PJM said capacity prices across the western half of the market for June 1, 2013 to May 31, 2014 rose 68% to $27.73 a megawatt day from the auction a year ago. A plant is compensated for each megawatt of generating capacity available on a daily basis.
Yet eastern sections of PJM saw larger increases and far stronger pricing of more than $240 a megawatt day, as limited high-voltage transmission lines prevent power from flowing from western areas.
For a combined Mirant and RRI, the higher prices should increase capacity revenue by more than 70%, adding $300 million in earnings before interest, taxes, depreciation and amortization three years from now, said Tudor, Pickering, Holt & Co. in a note to clients.
Mirant and RRI Energy agreed to merge in a deal that would create one of the biggest independent power companies in the U.S. The deal is expected to close before the end of the year.
The higher capacity prices in PJM come as the power industry struggles with back-to-back years of declining demand and weak energy prices. While the results were positive for eastern generators, analysts at Barclays Capital warned against putting too much emphasis on the results, particularly since they're for three years from now.
"We don't believe it is time to get overly enthusiastic and broadly buy power companies," they wrote in a note to clients Monday.
online.wsj.com/article/BT-CO-20100517-710844.html?mod=WSJ_Deals_LEFTLatestHeadlines
Finviz chart....
http://finviz.com/quote.ashx?t=rri
Obviously RRI chart will try to fill the gap....and then the way up. Merger is very attractive.
King of swing dance ! Good for longs!
Shares of Mirant Corp. and RRI Energy surged to double-digit percentage gains Monday, rallying as the companies agreed to a stock-swap merger that would create a combined entity with electricity-generating assets nationwide.
Mirant and RRI Energy to Merge to Create GenOn Energy, a Leading 24,700 Megawatt Independent Power Producer
Both RRI and DYN reported less than expected and both down a bit!$4.33!
RRI Energy Reports Fourth Quarter and 2009 Results
HOUSTON, TX -- (Marketwire) -- 02/25/10 --
RRI Energy, Inc. (NYSE: RRI)
-- Implemented actions to mitigate near-term risk from current market environment -- Sold retail business eliminating nearly $3 billion of collateral obligations and contingent capital -- Implemented modest hedging for 2010 and 2011 for free cash flow break-even or better if market conditions worsen -- Reduced gross debt by $540 million and maintained $1.6 billion of liquidity -- Improved the current performance and value of the business and positioned for longer-term market recovery -- Captured over $415 million in future forward capacity and PPA revenue -- Realigned corporate support costs saving $40 million -- Implemented revised plans for profitability at marginal power plants -- Completed Keystone scrubber, which significantly reduces SO2 emissions -- Fourth quarter and 2009 financial results reflect depressed commodity prices and weak economic conditions -- Indian River and New Castle power plant non-cash impairments totaling $211 million charged in fourth quarter -- 2010 and 2011 outlooks reflect challenging market conditions
RRI Energy, Inc. (NYSE: RRI) today is reporting open EBITDA of $185 million for 2009, compared to $545 million for 2008. The decline was primarily due to lower energy unit margins resulting from lower commodity prices and lower power demand. Adjusted EBITDA was $55 million in 2009, compared to $871 million in 2008. Out-of-the-money coal hedges in 2009 compared to in-the-money coal hedges in 2008 form the primary difference between open and adjusted EBITDA. Free cash flow used in continuing operations during 2009 was $327 million, compared to free cash flow provided by continuing operations of $241 million for 2008. These results exclude the performance of the Texas retail business, which was sold on May 1, 2009 and is included in discontinued operations.
"We are managing the challenges of the difficult economic environment and are well positioned to deliver long-term shareholder value," said Mark Jacobs, president and chief executive officer of RRI Energy. "We are squarely focused on what we can control. In terms of managing risk, we continue to maintain strong liquidity levels which totaled $1.6 billion at year end with approximately $1 billion of cash and implemented a modest hedging program to provide a high probability of achieving free cash flow break-even or better in 2010 and 2011, even if market conditions deteriorate. In addition, we are taking actions to improve the performance and value of the business in the current environment and position it for longer-term market recovery."
Open EBITDA was $56 million for the fourth quarter of 2009, compared to $40 million for the same period of 2008. Adjusted EBITDA was $13 million for the fourth quarter of 2009, compared to $162 million for the fourth quarter of 2008. The declines were due to the same factors described above.
The loss from continuing operations before income taxes for 2009 was $604 million, compared to income of $26 million for 2008. The 2009 reported results include impairments of long-lived assets totaling $211 million, net unrealized gains from energy derivatives of $22 million, $9 million in severance costs and charges for debt extinguishments totaling $8 million.
The reported numbers for 2008 include a goodwill impairment totaling $305 million, a $37 million charge for western states litigation and similar settlements, net unrealized losses from energy derivatives of $9 million and charges for debt extinguishments totaling $2 million. Operating cash flow from continuing operations was ($392) million for 2009, compared to $704 million for 2008. The $540 million reduction in gross debt consists primarily of $268 million of GAAP debt and $261 million from debt recorded in discontinued operations.
The loss from continuing operations before income taxes for the fourth quarter of 2009 was $270 million, compared to a loss of $325 million for the fourth quarter of 2008. The reported results include impairments of long-lived assets totaling $211 million and net unrealized gains from energy derivatives of $52 million in 2009. The reported results for 2008 include a goodwill impairment totaling $305 million and net unrealized losses from energy derivatives of $67 million.
Outlook
RRI Energy's outlook is based on forward commodity prices as of February 5, 2010. The outlook for open EBITDA is $367 million and $366 million for the years ending December 31, 2010 and 2011, respectively. The outlook for adjusted EBITDA, which includes the impact of hedges and other items, is $360 million and $309 million for the same periods. The outlook for free cash flow provided by continuing operations is $92 million and $110 million for the years ending December 31, 2010 and 2011, respectively.
I hope I have some of this in my portfolio when it is bought out.
Any day now....
SAN FRANCISCO, Dec 5 (Reuters) - Reliant Energy Inc (RRI.N: Quote, Profile, Research, Stock Buzz) said on Friday it had terminated a $300 million working capital facility with Merrill Lynch as it shapes up its balance sheet and looks at a possible sale of assets or the entire company.
The independent power producer said the termination would "address any possible issues that might be raised regarding compliance" with a minimum-earnings covenant attached to the facility. A waiver of that covenant was expiring on Friday.
Last week, Reliant said it would not proceed with $1 billion in previously announced financing agreements that an analyst said would cost it $100 million a year.
Shares of Reliant, which have lost 80 percent of their value this year, had risen 4.6 percent to close at $5.25 on Friday prior to the announcement on the $300 million facility.
Reliant's board formed a special committee in October to review strategic alternatives to enhance stockholder value, including the sale of all or some of its retail businesses.
Last month, Reliant said it would sell assets of two subsidiaries active in the U.S. Northeastern electric market to Hess Corp (HES.N: Quote, Profile, Research, Stock Buzz) by year-end for an undisclosed amount.
The Houston-based company operates more than 14,000 megawatts of generating capacity in the United States, markets energy commodities, and sells electricity to more than 1.8 million residential and business customers primarily in Texas. (Reporting by Braden Reddall; editing by Carol Bishopric)
Reliant Energy, Merrill Lynch Agree to Extension
Thursday October 30, 8:00 am ET
HOUSTON--(BUSINESS WIRE)--On September 29, Reliant Energy announced that it had entered into a letter agreement with Merrill Lynch to take steps to end the credit-enhanced retail structure with Merrill Lynch. The letter agreement also waived compliance with the minimum adjusted EBITDA covenant in the $300 million retail working capital facility with Merrill Lynch through October 31. Reliant and Merrill have agreed to extend the October 31 date through November 6.
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Reliant Energy, Inc. (NYSE:RRI - News) based in Houston, provides electricity and energy services to retail and wholesale customers in the United States. The company provides service to approximately 1.8 million retail electricity customers primarily in Texas, including residential and small business customers. Reliant also serves commercial, industrial, governmental and institutional customers in Delaware, Illinois, Maryland, New Jersey, New York, Pennsylvania and Washington, D.C.
The company is one of the largest independent power producers in the nation with more than 14,000 megawatts of power generation capacity across the United States. These strategically located generating assets use natural gas, fuel oil and coal. For more information, visit http://www.reliant.com/investors. Reliant routinely posts all important information on its Web site.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, assumptions or estimates about our revenues, margins, capital structure and other financial items, our plans and objectives for future operations or about our future economic performance, financings or offerings. In many cases you can identify forward-looking statements by terminology such as “estimate,” “believe,” “may,” “plan(s),” “should,” “will,” “expect,” “outlook,” “commitment(s),” “taking steps,” “efforts” and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.
Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, ongoing negotiations, legislative, regulatory and/or market developments, the outcome of pending lawsuits, governmental proceedings and investigations, the effects of competition, financial market conditions, access to capital, the timing and extent of changes in commodity prices and interest rates, weather conditions and other factors we discuss or refer to in the “Risk Factors” section of our filings with the Securities and Exchange Commission.
Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact:
Reliant Energy, Inc.
Pat Hammond, media, 713-497-7723
Dennis Barber, investors, 713-497-3042
Source: Reliant Energy, Inc.
Reliant Energy Completes Sale of Bighorn Generating Facility
HOUSTON, Oct 20, 2008 (BUSINESS WIRE) -- Reliant Energy today completed the previously announced sale of its Bighorn Generating Station for approximately $500 million to Nevada Power Company (DBA NV Energy), a wholly owned subsidiary of Sierra Pacific Resources.
Reliant Energy expects to record a pre-tax gain of approximately $45 million during the fourth quarter of 2008 on the sale of the facility.
The Bighorn Generating Station is a 598-megawatt, combined-cycle generating facility located 35 miles south of Las Vegas in southern Clark County, near Primm, Nevada. Commissioned in 2004, Bighorn uses natural gas as its sole fuel source.
Reliant Energy, Inc. (NYSE:RRI) based in Houston, provides electricity and energy services to retail and wholesale customers in the United States. The company provides service to approximately 1.8 million retail electricity customers primarily in Texas, including residential and small business customers. Reliant also serves commercial, industrial, governmental and institutional customers in Delaware, Illinois, Maryland, New Jersey, New York, Pennsylvania, and the District of Columbia.
The company is one of the largest independent power producers in the nation with more than 14,000 megawatts of power generation capacity across the United States. These strategically located generating assets use natural gas, fuel oil and coal. For more information, visit http://www.reliant.com/investors. Reliant routinely posts all important information on its Web site.
SOURCE: Reliant Energy, Inc.
CONTACT:
Reliant Energy, Inc., Houston
Pat Hammond, media, 713-497-7723
or
Dennis Barber, investors, 713-497-3042
www.reliant.com
Reliant Energy, American Independence: Biggest Price Gainers (RRI, AMIC) Article Comments more in Markets Main
»Reliant Energy Inc. topped the list of Biggest Percentage Price Gainers among common stocks on the New York Stock Exchange at midday on Monday. The 9% preferred B issue for Prime Group Realty Trust was at the top of the gainers list. See the full list.
American Independence Corp. topped the list of Biggest Percentage Price Gainers among common stocks on the Nasdaq Stock Market. See the full list.
Go to Markets Data Center (WSJMarkets.com) for complete coverage.
http://online.wsj.com/article/SB122391611208929001.html?mod=yahoo_hs&ru=yahoo
Reliant Enters Into Definitive Agreement Related to Previously Announced Commitment With First Reserve
Monday October 13, 7:00 am ET
HOUSTON--(BUSINESS WIRE)--Reliant Energy (NYSE:RRI - News) today announced that it has entered into a definitive agreement with an affiliate of First Reserve Corporation related to Reliant’s previously announced commitment for the issuance of $350 million of Reliant convertible preferred stock to First Reserve.
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The company noted that the definitive agreement is based on the terms outlined in the commitment letter of September 29, 2008.
Further information including terms of the agreement may be found in the Investor section of Reliant’s Web site. The company routinely posts all important information on its Web site.
Reliant Energy, Inc., based in Houston, provides electricity and energy services to retail and wholesale customers in the United States. The company provides service to approximately 1.8 million retail electricity customers primarily in Texas, including residential and small business customers. Reliant also serves commercial, industrial, governmental and institutional customers in Delaware, Illinois, Maryland, New Jersey, New York, Pennsylvania, and Washington, D.C.
The company is one of the largest independent power producers in the nation with more than 15,000 megawatts of power generation capacity across the United States. These strategically located generating assets use natural gas, fuel oil and coal. For more information, visit http://www.reliant.com.
Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, assumptions or estimates about our revenues, margins, capital structure and other financial items, our plans and objectives for future operations or about our future economic performance, financings or offerings. In many cases you can identify forward-looking statements by terminology such as "estimate," "believe," "may," "plan(s)," "should," "will," "expect," "outlook," "commitment(s)," "taking steps," "efforts" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.
Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, ongoing negotiations, legislative, regulatory and/or market developments, the outcome of pending lawsuits, governmental proceedings and investigations, the effects of competition, financial market conditions, access to capital, the timing and extent of changes in commodity prices and interest rates, weather conditions and other factors we discuss or refer to in the "Risk Factors" section of our filings with the Securities and Exchange Commission.
Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact:
Reliant Energy, Inc.
Pat Hammond, 713-497-7723 (media)
Dennis Barber, 713-497-3042 (investors)
http://biz.yahoo.com/bw/081013/20081013005356.html?.v=1
Excellent... Keep RRI on your watch.
LOS ANGELES, Oct 1 (Reuters) - NV Energy, a Sierra Pacific Resources (SRP.N: Quote, Profile, Research, Stock Buzz) company, received approval from Nevada state regulators to build a 484-megawatt natural gas power unit at its Harry Allen station and to buy from Reliant Energy (RRI.N: Quote, Profile, Research, Stock Buzz) a 562-MW natural gas unit at the Bighorn Power Plant, NV Energy said.
The Harry Allen unit is to start operating in the summer of 2011. The Harry Allen Generating Station is about 25 miles northwest of Las Vegas.
The Bighorn Power Plant, about 35 miles south of Las Vegas, has been in operation since 2004. The deal to sell the 562-MW unit to NV Energy is scheduled to close later this month.
NV Energy, as Nevada Power, announced in April this year that it would pay $500 million to Reliant for the Bighorn plant.
The Harry Allen plant is now as small one containing two 75-MW "peaker" units.
NV Energy is now the name of the combined utility that used to be two Nevada utilities -- Nevada Power that covered southern Nevada and Sierra Pacific Power Company that covered northern Nevada. Sierra Pacific Resources had been the parent company of both. (Reporting by Bernie Woodall; Editing by Christian Wiessner
http://www.reuters.com/article/marketsNews/idINN0153159220081001?rpc=44
Reliant Energy to Host Investor Call
Monday September 29, 4:09 pm ET
HOUSTON--(BUSINESS WIRE)--Reliant Energy has scheduled an investor call for Tuesday, September 30, 2008 at 8:30 a.m. Eastern Daylight Time to discuss the press release issued this afternoon.
The presentation will be webcast live at www.reliant.com/investors. The presentation is scheduled to begin at 8:30 a.m. Eastern Daylight Time. It will be available for re-play on the company's website until October 14, 2008.
Reliant Energy, Inc. (NYSE:RRI - News) based in Houston, provides electricity and energy services to retail and wholesale customers in the United States. The company provides service to approximately 1.8 million retail electricity customers primarily in Texas, including residential and small business customers. Reliant also serves commercial, industrial, governmental and institutional customers in Delaware, Illinois, Maryland, New Jersey, New York, Pennsylvania and Washington, D.C.
The company is one of the largest independent power producers in the nation with more than 15,000 megawatts of power generation capacity across the United States. These strategically located generating assets use natural gas, fuel oil and coal. For more information, visit http://www.reliant.com.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, assumptions or estimates about our revenues, margins, capital structure and other financial items, our plans and objectives for future operations or about our future economic performance, financings or offerings. In many cases you can identify forward-looking statements by terminology such as “estimate,” “believe,” “may,” “plan(s),” “should,” “will,” “expect,” “outlook,” “commitment(s),” “taking steps” and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.
Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, ongoing negotiations with Merrill Lynch, legislative, regulatory and/or market developments, the outcome of pending lawsuits, governmental proceedings and investigations, the effects of competition, financial market conditions, access to capital, the timing and extent of changes in commodity prices and interest rates, weather conditions and other factors we discuss or refer to in the “Risk Factors” section of our filings with the Securities and Exchange Commission.
Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact:
Reliant Energy, Inc., Houston
Dennis Barber, investors, 713-497-3042
or
Pat Hammond, media, 713-497-7723
--------------------------------------------------------------------------------
Source: Reliant Energy, Inc.
3:48PM Reliant Energy revises its 2008 outlook downward to reflect the financial impact of Hurricane Ike and lower commodity prices in its wholesale business (RRI) 9.73 -2.48 : Co announces it is revising its 2008 outlook downward to reflect the financial impact of Hurricane Ike and lower commodity prices in its wholesale business. In addition, the company and Merrill Lynch have agreed to take steps to end their credit-enhanced retail structure, given the current operating environment and Reliant's decision to develop a new retail strategy aimed at lowering collateral requirements and providing more consistent earnings. Co has obtained commitments for $1 bln in new capital to support its business to facilitate the transition. "Our retail results in 2008 have been disappointing, due in part to the recent impact of Hurricane Ike. We have also faced unprecedented turmoil in the financial markets... We have arranged for $1 billion of additional capital. Combined with current liquidity of $1.2 bln, we will have adequate liquidity to facilitate the termination of the credit-enhanced retail structure." Co has lowered its retail contribution margin outlook for 2008 by $300 mln to $350 mln as a result of the effects of Hurricane Ike, including reduced sales volumes, the sale of excess supply during this time, updates to retail pricing assumptions and increased storm-related operating costs. In response to its intention to terminate the credit-enhanced retail structure and current operating environment, Reliant is developing a new retail strategy aimed at lowering collateral requirements and providing more consistent earnings. Commodity prices have fallen significantly since the company provided its most recent outlook. In addition, third quarter results were impacted by mild weather and reduced off-peak prices. Co estimates that its outlook for 2008 open wholesale contribution margin will be ~$480 mln lower than its previous outlook. These outlook updates exclude any financial impact arising from termination of the credit-enhanced structure.
http://finance.yahoo.com/marketupdate/inplay
Reliant Energy Lowers Financial Outlook, Acts to Strengthen Financial Position
Monday September 29, 3:48 pm ET
Company Intends to End Credit-Enhanced Structure, New Financing Commitments Received
HOUSTON--(BUSINESS WIRE)--Reliant Energy today announced it is revising its 2008 outlook downward to reflect the financial impact of Hurricane Ike and lower commodity prices in its wholesale business.
In addition, the company and Merrill Lynch have agreed to take steps to end their credit-enhanced retail structure, given the current operating environment and Reliant’s decision to develop a new retail strategy aimed at lowering collateral requirements and providing more consistent earnings. The company has obtained commitments for $1 billion in new capital to support its business to facilitate the transition.
“Our retail results in 2008 have been disappointing, due in part to the recent impact of Hurricane Ike,” said Mark Jacobs, president and chief executive officer, Reliant Energy. “We have also faced unprecedented turmoil in the financial markets. To address these challenges, we have determined that terminating our credit-enhanced retail structure in an orderly manner is appropriate.”
“We have arranged for $1 billion of additional capital,” Jacobs added. “Combined with current liquidity of $1.2 billion, we will have adequate liquidity to facilitate the termination of the credit-enhanced retail structure. Certainly, conditions for raising additional capital are not favorable, however, on balance we believe these steps are in our best long-term interests.”
The company has lowered its retail contribution margin outlook for 2008 by $300 million to $350 million as a result of the effects of Hurricane Ike, including reduced sales volumes, the sale of excess supply during this time, updates to retail pricing assumptions and increased storm-related operating costs.
In response to its intention to terminate the credit-enhanced retail structure and current operating environment, Reliant is developing a new retail strategy aimed at lowering collateral requirements and providing more consistent earnings.
Commodity prices have fallen significantly since the company provided its most recent outlook. In addition, third quarter results were impacted by mild weather and reduced off-peak prices. The company estimates that its outlook for 2008 open wholesale contribution margin will be approximately $480 million lower than its previous outlook.
These outlook updates exclude any financial impact arising from termination of the credit-enhanced structure.
Reliant has arranged for $1 billion in additional capital consisting of a commitment for a $650 million term loan from GS Loan Partners and an agreement to issue $350 million of convertible preferred stock to the energy private equity firm of First Reserve Corporation.
Each of these arrangements is contingent upon completion of definitive agreements and, among other things, reaching definitive agreements with Merrill Lynch regarding termination of the credit-enhanced retail structure. Reliant and Merrill Lynch have agreed to use their commercially reasonable efforts to negotiate definitive agreements before October 31, 2008. Merrill Lynch has waived compliance with the minimum adjusted EBITDA covenant in the $300 million retail working capital facility through October 31, 2008, so long as all other covenants are complied with, and Reliant has agreed to not draw on the retail working capital facility. Included in the appendix to this release is a summary of material terms for the term loan and the convertible preferred stock to which the parties have agreed, subject to the completion of definitive agreements.
Reliant Energy, Inc. (NYSE:RRI - News) based in Houston, provides electricity and energy services to retail and wholesale customers in the United States. The company provides service to approximately 1.8 million retail electricity customers primarily in Texas, including residential and small business customers. Reliant also serves commercial, industrial, governmental and institutional customers in Delaware, Illinois, Maryland, New Jersey, New York, Pennsylvania and Washington, D.C.
The company is one of the largest independent power producers in the nation with more than 15,000 megawatts of power generation capacity across the United States. These strategically located generating assets use natural gas, fuel oil and coal. For more information, visit http://www.reliant.com.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, assumptions or estimates about our revenues, margins, capital structure and other financial items, our plans and objectives for future operations or about our future economic performance, financings or offerings. In many cases you can identify forward-looking statements by terminology such as “estimate,” “believe,” “may,” “plan(s),” “should,” “will,” “expect,” “outlook,” “commitment(s),” “taking steps,” “efforts” and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.
Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, ongoing negotiations, legislative, regulatory and/or market developments, the outcome of pending lawsuits, governmental proceedings and investigations, the effects of competition, financial market conditions, access to capital, the timing and extent of changes in commodity prices and interest rates, weather conditions and other factors we discuss or refer to in the “Risk Factors” section of our filings with the Securities and Exchange Commission.
Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Appendix to September 29, 2008 Release
Material Terms of New Financing Arrangements
The commitment with GS Loan Partners, dated September 29, 2008, for a $650 million senior secured term loan includes the following material terms:
November 2012 maturity;
issue at 4% closing payment;
initial interest at LIBOR plus 4.50% with LIBOR floor of 3.75%, or a base rate plus 3.50% with a base rate floor of 4.75%;
10% prepayment premium on the amount prepaid during the first year, 5% during the second year, 3% during the third year and no prepayment premium thereafter;
equally secured with the same collateral that secures Reliant’s revolving credit agreement, senior secured notes, and PEDFA Guarantees;
our subsidiaries, except those contractually prohibited from doing so, will be guarantors;
minimum availability and maximum hedging limitations; and
specified levels for the ratios of adjusted net secured debt and total debt to adjusted net earnings (loss) before interest expense, interest income, income taxes, depreciation and amortization (consolidated secured leverage and total leverage ratios).
The agreement with First Reserve Fund XII, L.P., dated September 29, 2008, providing for the purchase of 350,000 shares of Reliant convertible participating preferred stock at $1,000 per share provides for the following terms:
cumulative quarterly cash dividends, payable at 14% per annum;
convertible at lesser of $11 and lowest 20-day volume weighted average price of our common stock during the six months after closing, with a floor of $8.00;
holders may require redemption of the preferred stock upon a change of control at the greater of (i) face amount plus accrued and unpaid dividends, plus a make-whole premium if the redemption is before the fifth anniversary or (ii) the amount received by common stock holders on an as-converted basis;
we may redeem the preferred stock after the third anniversary for the face amount plus accrued and unpaid dividends, plus a make-whole premium if the redemption is before the fifth anniversary;
holders may require redemption any time after the seventh anniversary for the face amount plus accrued and unpaid dividends; and
First Reserve may designate one director to our board so long as it retains 50% of the initial convertible preferred stock or the common stock issued upon conversion.
Each of these financing arrangements is contingent upon, among other things, reaching the definitive agreements with Merrill Lynch regarding the unwind of the credit-enhanced retail structure described in the release. The above descriptions of these financing arrangements are not complete, and the Commitment Letter with GS Loan Partners and the letter agreement with First Reserve are attached as exhibits to the Form 8-K furnished to the Securities and Exchange Commission today.
Contact:
Reliant Energy, Houston
Pat Hammond, 713-497-7723 (media)
or
Dennis Barber, 713-497-3042 (investors)
--------------------------------------------------------------------------------
Source: Reliant Energy
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Reliant Energy shares fall after 2nd-qtr report
Tuesday August 5, 4:31 pm ET
Reliant shares down sharply after 2nd-quarter profit hurt on weather, transmission constraints
HOUSTON (AP) -- Shares of electricity provider Reliant Energy Inc. fell sharply Tuesday after the company reported disappointing second-quarter results, saying profit was hurt by extreme weather and transmission constraints in the Texas electricity market.
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Shares fell $2.33, or 13.5 percent to close at $14.87. They earlier traded as low as $14.32, their lowest point since January 2007. The stock traded as high as $28.77 in August 2007.
The company reported net income of $358.7 million, or $1.01 per share, for the three months ended June 30, compared with a loss of $283 million, or 83 cents per share in the second quarter of 2007. But the company said its 2008 income included net unrealized gains from energy derivatives of $570 million.
Revenue climbed to $3.42 billion during the quarter from $2.65 billion in the year-ago quarter.
Mike Jacobs, Reliant's president and chief executive, told analysts the results were disappointing.
"Extreme weather conditions resulted in significantly higher load than we expected," he said. "Our cost to serve that incremental load was very expensive, due to commodity prices at the time, and transmission constraints that severely limited the ability to import power into the Houston zone. The result, we had to buy more power at higher prices and that led to a supply cost variance that was unprecedented for the business."
Chief Operating Officer Brian Landrum said the hottest weather in Houston in 30 years in late May and early June and transmission congestion forced the company to buy power at higher rates. Higher wholesale price caps also hurt.
He said the factors reduced results by $100 million in the quarter.
Webcast Alert: Reliant Energy Announces Second Quarter 2008 Earnings Call
Tuesday July 29, 6:23 pm ET
HOUSTON--(BUSINESS WIRE)--You are invited to listen to a webcast of Reliant Energy’s (NYSE:RRI - News) Second Quarter 2008 earnings call that will be broadcast live on the Internet at 8:00 a.m. Eastern on Tuesday, August 5, 2008.
What: Reliant Energy's Second Quarter 2008 Earnings Call
When: August 5, 2008 - 8:00 a.m. Eastern
Where:
http://www.reliant.com
How: Live over the Internet - Simply log on to the web address above
Contact: Marie McArdle at 713-497-7727
Reliant Energy, Inc. (NYSE:RRI - News) based in Houston, Texas, provides electricity and energy services to retail and wholesale customers in the United States. In Texas, the company provides service to more than 1.8 million retail electricity customers, including residential, small business and commercial, industrial, governmental and institutional customers. Reliant also serves commercial, industrial, governmental and institutional customers in the PJM (Pennsylvania, New Jersey and Maryland) market.
The company is one of the largest independent power producers in the nation with approximately 16,000 megawatts of power generation capacity across the United States. These strategically located generating assets utilize natural gas, fuel oil and coal. For more information, visit http://www.reliant.com.
(Minimum requirements to listen to the broadcast: The Windows Media Player software is required to listen to the broadcast, and can be downloaded free of charge at http://www.microsoft.com/windows/windowsmedia/player/download/ download.aspx.)
Contact:
Reliant Energy, Inc., Houston
Marie McArdle, +1-713-497-7727
Source: Reliant Energy, Inc.
Reliant Energy announced today that Jason Few is joining the company as senior vice president, Smart Energy.
In this position, Few will lead the company’s initiative to launch a host of new products and services to provide customers with more control and better insight into how they use energy. Jason Few will begin service at Reliant on July 14.
Source: Reliant Energy, Inc.
Jason Few, senior vice president, Smart Energy (Photo: Business Wire). View Multimedia Gallery
Few comes to Reliant from Motorola, Inc., where he served most recently as corporate vice president and general manager of its Companion Products division. Prior to joining Motorola, Few led SBC Communications’ activities in broadband marketing, eBusiness development and the SBC Yahoo integration and business development activities. Jason serves on the Board of Directors for Syniverse Technologies (NYSE: SVR - News) and is on the governance and nomination committee and the audit committee.
“The goal of Smart Energy is to help our customers use less electricity, spend less, and reduce their environmental footprint by providing them with better information and more control,” said Mark Jacobs, president and chief executive officer, Reliant Energy. “Jason’s successful track record of bringing new technologies to market is the ideal background for the leader of this important effort.”
Reliant Energy, Inc. (NYSE:RRI - News) based in Houston, Texas, provides electricity and energy services to retail and wholesale customers in the United States. In Texas, the company provides service to approximately 1.8 million retail electricity customers, including residential and small business customers and commercial, industrial, governmental and institutional customers. Reliant also serves commercial, industrial, governmental and institutional customers in the PJM (Pennsylvania, New Jersey and Maryland), Illinois and New York markets.
The company is one of the largest independent power producers in the nation with approximately 16,000 megawatts of power generation capacity across the United States. These strategically located generating assets utilize natural gas, fuel oil and coal. For more information, visit www.reliant.com.
HOUSTON, Jun 23, 2008 (BUSINESS WIRE) -- Reliant Energy announced today that it is investing approximately $50 million to reduce mercury emissions at five Pennsylvania coal-fired generating plants. The investment will allow removal of at least 80 percent of the mercury content of the coal burned at Shawville, Portland, Conemaugh, Titus and New Castle stations. Together with existing and already committed controls at other units, this investment will ensure Reliant's fleetwide compliance with Pennsylvania's Phase 1 Mercury Regulations.
Installation of these emission control systems that clean the air through activated carbon injection will begin in the first quarter of 2009 and will be completed by December 2009. The Mer-Cure(TM) Sorbent Injection Systems are designed by Alstom, an international leader in air quality control and environmental protection systems.
"We are committed to environmental stewardship and have developed a comprehensive program to reduce our environmental footprint," said Mark Jacobs, Reliant Energy president and chief executive officer. "The mercury removal plan announced today will improve air quality for our neighbors and is an important element of our overall program."
Reliant Energy operates 19 power plants in Pennsylvania and employs more than 1,000 people in the state. At these Pennsylvania locations, Reliant is investing more than $435 million in emissions control related improvements. In addition to the investment in mercury emissions reduction systems announced today, Reliant is investing $375 million at the Keystone and Cheswick plants to install scrubber systems to remove sulfur dioxide that will be completed in 2009, and more than $10 million in upgrades to the existing scrubbers at the Elrama station.
The scrubber installations at Keystone and Cheswick, in addition to existing selective catalytic reduction systems for control of nitrogen oxides, are expected to bring these two plants into compliance with the Pennsylvania Phase I Mercury Regulations. They will also comply with the plant-wide mercury removal requirements of the Pennsylvania Phase II Mercury Regulations more than five years before those requirements take effect in 2015.
Reliant Energy, Inc. (NYSE:RRI) based in Houston, Texas, provides electricity and energy services to retail and wholesale customers in the United States. The company provides service to approximately 1.8 million retail electricity customers primarily in Texas, including residential and small business customers. Reliant also serves commercial, industrial, governmental and institutional customers in the states of Pennsylvania, New Jersey, Maryland, Illinois, Delaware, Washington, D.C. and New York.
The company is one of the largest independent power producers in the nation with approximately 16,000 megawatts of power generation capacity across the United States. These strategically located generating assets utilize natural gas, fuel oil and coal. For more information, visit http://www.reliant.com.
Alstom is a global leader in the world of power generation and rail infrastructure and sets the benchmark for innovative and environmentally friendly technologies. Alstom builds the fastest train and the highest capacity automated metro in the world, and provides turnkey integrated power plant solutions and associated services for a wide variety of energy sources, including hydro, nuclear, gas, coal and wind. The Group employs 76,000 people in 70 countries, and had orders of EUR 23.5 billion in 2007/08.
This news release contains "forward-looking statements" that contain projections, estimates or assumptions about our capital expenditures. In many cases you can identify forward-looking statements by terminology such as "intend," "may," "plan," "will," "expect," and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.
Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, regulatory developments and approvals, legal, governmental and bankruptcy proceedings, financial market conditions, access to capital, changes in commodity prices and interest rates, and other factors we discuss or refer to in the "Risk Factors" section of our filings with the Securities and Exchange Commission.
SOURCE: Reliant Energy
HOUSTON--(BUSINESS WIRE)--As a partner in helping consumers manage their electricity costs and consumption, Reliant Energy this week launched two innovative contests giving Texans a chance to win thousands of dollars in credits to their electricity bill, and home energy efficiency improvements and specialized support.
Electricity for Life Sweepstakes
The Reliant Energy Electricity for Life sweepstakes is open to eligible Texans in Reliant Energy’s service area and will award one grand prize winner $60,000 in electricity. During the sweepstakes, through July 20, Reliant Energy will select:
* One winner per day (35 winners) who will receive $3,000 in bill credit
* One weekly winner (five winners) who will receive $15,000 in bill credit
* One grand prize winner selected at the end of the sweepstakes for the $60,000 bill credit
Reliant Energy customers can sign up for the sweepstakes by logging into their account at reliant.com/myaccount or reliant.com/forlife to complete an entry form. Consumers who are not an existing customer of Reliant Energy can sign up to become customers online at reliant.com/forlife or by calling 877-524-5231 through July 20 to be automatically entered into the sweepstakes. Winners will be notified by phone and/or e-mail, and daily results will be posted at reliant.com/forlife beginning June 19. For further eligibility and requirements, and non-purchase participation information, visit reliant.com/forlife.
Houston’s Most Energy INefficient Home Contest
Houston’s Most Energy INefficient Home Contest (HMEIHC) is open to Reliant Energy homeowners in the Greater Houston-area and is designed as a lighthearted way to highlight real energy efficiency improvements homeowners can make. To enter HMEIHC, homeowners can visit reliantpowerzone.com/efficiency and submit a one-minute video or five photos with a 100-word description telling Reliant Energy about any ingenuous or offbeat things they have done in an attempt to improve their homes’ energy efficiency, and why they believe their home needs energy efficiency improvements. The three grand prize winners, selected based on content creativity, will be announced July 24 on KHOU’s “Great Day Houston” and will receive:
* $2,500 in home energy efficiency improvements
* A $1,200 bill credit on a Reliant Energy pricing plan
* 60-days of support from Reliant Energy energy experts
For further eligibility and requirements, visit reliantpowerzone.com/efficiency.
“Reliant Energy is always looking for innovative ways to help our customers manage their electricity cost and usage,” said Reliant Energy Chief Operating Officer Brian Landrum. “Through Electricity for Life and Houston’s Most Energy INefficient Home Contest, we have created a little fun and excitement for our customers around energy efficiency and managing their electricity costs.”
About Reliant Energy
Reliant Energy, Inc. (NYSE:RRI - News) based in Houston, Texas, provides electricity and energy services to retail and wholesale customers in the United States. In Texas, the company provides service to approximately 1.8 million retail electricity customers, including residential and small business customers and commercial, industrial, governmental and institutional customers. Reliant also serves commercial, industrial, governmental and institutional customers in the PJM (Pennsylvania, New Jersey and Maryland), Illinois and New York markets.
The company is one of the largest independent power producers in the nation with approximately 16,000 megawatts of power generation capacity across the United States. These strategically located generating assets utilize natural gas, fuel oil and coal. For more information, visit www.reliant.com.
Contact:
Reliant Energy
Pat Hammond, 713-497-7723
Source: Reliant Energy, Inc.
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