GOLD at a level to SELL! Late longs get out.
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DYN: Earnings report Friday!
DYN looking to have an outside day. More downside to come.
We need someone comming in buying SBRH.
Hot pick today is EYSM: Daily and Weekly look good. Looks like a bottom. I like this one for now. Buying all day today. I think it could be an easy doubble and maybe higher. A cheap one to get in on.
On the move is EYSM: Daily and Weekly look good. Looks like a bottom. Buying all day today. I think it could be an easy doubble and maybe higher.
EYSM: Daily and Weekly look good. Looks like a bottom. Buying all day.
SBRH just getting crushed today.
The only money you will make off FFGO is the wright off against your capital gains.
Hypothetical for Monday: Div's will be paid in a new company; The Sloane Investments Group.
with you firelane
Who in there right mind would pay 2 when you can get all the 1's you want.
DYN had a big day today; Up over 8%.
Web site back up. Maybe it had something with the email I sent.
July 5th was a holiday. Why would anything get done.
Aug. 3 I will be @ .0002 for over 180 days. Maybe, we can all jump in @ .0001 to get filled. Breakeven is sounding good. However, I've been in this dog for % years.
Tried to get on the the web site tonight, no luck.
Dynegy Inc. (NYSE: DYN) today announced that it plans to report second quarter 2010 financial results before the opening of the New York Stock Exchange on Friday, August 6, 2010. In connection with the announcement, Dynegy Chairman, President and Chief Executive Officer Bruce A. Williamson and members of the company’s senior management team will discuss results during an investor presentation to be web cast live beginning at 10 a.m. ET/9 a.m. CT on August 6.
The listen-only web cast on August 6 can be accessed via the “Investor Relations” section of the company’s web site at www.dynegy.com. For persons unable to listen to the live web cast, the call will be archived and available for replay in the previously mentioned section of the company’s web site for a one-year period.
Through its subsidiaries, Dynegy Inc. produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,500 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil.
DYN is on a wild ride. Be Careful.
Stockholders approved an amendment and restatement of Dynegy's Amended and Restated Certificate of Incorporation to effect a reverse stock split of Dynegy's outstanding common stock at a reverse split ratio of 1-for-5 and to proportionately decrease the number of authorized shares of Dynegy's capital stock. The proposal is expected to become effective on or about May 25, 2010.
Dynegy Inc. Discloses Results of Stockholder Proposals at Annual Meeting
At today’s annual meeting of stockholders of Dynegy Inc. (NYSE: DYN), the company announced the results of seven proposals voted on by stockholders:
Proposal 1 relating to election of directors – Stockholders re-elected all seven board of director nominees to serve until next year’s annual meeting of stockholders.
Proposal 2 relating to reverse stock split – Stockholders approved an amendment and restatement of Dynegy’s Amended and Restated Certificate of Incorporation to effect a reverse stock split of Dynegy’s outstanding common stock at a reverse split ratio of 1-for-5 and to proportionately decrease the number of authorized shares of Dynegy’s capital stock. The proposal is expected to become effective on or about May 25, 2010.
Proposal 3 relating to common stock classification – Stockholders approved an amendment and restatement of Dynegy’s Amended and Restated Certificate of Incorporation to refer to the company’s Class A common stock as “Common Stock” and remove all references to Class B common stock.
Proposal 4 relating to Long Term Incentive Plan – Stockholders approved the Dynegy Inc. 2010 Long Term Incentive Plan.
Proposal 5 relating to Incentive Compensation Plan – Stockholders approved the amended and restated Dynegy Inc. Incentive Compensation Plan.
Proposal 6 relating to ratification of independent registered public accountants – Stockholders ratified the selection of Ernst & Young LLP as Dynegy’s independent auditors for 2010.
Proposal 7 relating to stockholder proposal regarding greenhouse gas emissions – Stockholders rejected a proposal regarding the establishment of goals for greenhouse gas emissions.
For more information on the proposals considered at the meeting, refer to the company’s Proxy Statement, which can be downloaded free of charge from the “Investor Relations” section of the company’s web site at www.dynegy.com.
Buyer @ 0.97 or on Market reversal. Good Luck Trading!
I'm looking at between the 100DMA and the 200DMA; 1.54 - 1.82, I like the Sept. and Dec. 2.50 Calls for 5 cents. Nice doubble on a pop.
8-k and Financial Results:
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
May 10, 2010
DYNEGY INC.
(Exact name of registrant as specified in its charter)
Delaware 001-33443 20-5653152
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
1000 Louisiana, Suite 5800, Houston, Texas 77002
(Address of principal executive offices) (Zip Code)
(713) 507-6400
(Registrant’s telephone number, including area code)
N.A.
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On May 10, 2010, Dynegy Inc. (“Dynegy”) issued a press release announcing its first quarter financial results and reaffirming its 2010 financial estimates. A copy of Dynegy’s May 10, 2010 press release is furnished herewith as Exhibit 99.1 and is incorporated herein by this reference. Dynegy management will hold an investor call at 9 a.m. ET on Monday, May 10, 2010 to review its first quarter financial results and related information and discuss its 2010 financial estimates. A live simulcast of the conference call, together with the related presentation materials, will be available in the Investor Relations section of Dynegy’s website ( www.dynegy.com ) and will remain accessible until the date Dynegy’s second quarter 2010 financial results are available.
Pursuant to General Instruction B.2 of Form 8-K and Securities and Exchange Commission Release No. 33-8176, the information contained in the press release furnished as an exhibit hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. In addition, the press release contains statements intended as “forward-looking statements” which are subject to the cautionary statements about forward-looking statements set forth in such press release.
Non-GAAP Financial Information
In this Form 8-K, we discuss the non-GAAP financial measures included in the press release, including definitions of such non-GAAP financial information, identification of the most directly comparable GAAP financial measures and the reasons why we believe these measures provide useful information regarding our financial condition, results of operations and cash flows, as applicable, and, to the extent material, the additional purposes, if any, for which these measures are used. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, to the extent available without unreasonable effort, are contained in the schedules attached to the press release.
Gross Margin Measures. We define “Adjusted Gross Margin” as revenues less cost of sales excluding the impacts of mark-to-market changes. Adjusted Gross Margin is meant to reflect the true commercial performance of our power generation fleet. We believe that Adjusted Gross Margin provides a meaningful representation of our current period commercial performance; consequently, it excludes the impact of mark-to-market changes, which reflect future periods. This adjustment aligns the impacts of forward commercial sales transactions with the underlying generation value in the same reporting period. Because Adjusted Gross Margin is one of the financial measures that management uses to allocate resources, determine Dynegy’s ability to fund capital expenditures, assess performance against its peers and evaluate overall financial performance, we believe it provides useful information for our investors. The most directly comparable GAAP financial measure to Adjusted Gross Margin is operating income.
EBITDA Measures. We believe that EBITDA and Adjusted EBITDA provide a meaningful representation of our operating performance. We consider EBITDA as a way to measure financial performance on an ongoing basis. Adjusted EBITDA is meant to reflect the true operating performance of our power generation fleet; consequently, it excludes the impact of mark-to-market accounting and other items that could be considered “non-operating” or “non-core” in nature, and includes the contributions of those plants classified as discontinued operations. Because EBITDA and Adjusted EBITDA are two of the financial measures that management uses to allocate resources, determine Dynegy’s ability to fund capital expenditures, assess performance against its peers and evaluate overall financial performance, we believe they provide useful information for our investors. In addition, many analysts, fund managers and other stakeholders that communicate with us typically request our financial results in an EBITDA and Adjusted EBITDA format.
“EBITDA” – We define “EBITDA” as earnings (loss) before interest, taxes, depreciation and amortization.
“Adjusted EBITDA” – We define “Adjusted EBITDA” as EBITDA adjusted to exclude (1) gains or losses on the sale of assets, (2) the impacts of mark-to-market changes and (3) impairment charges.
· When EBITDA is discussed in reference to performance on a consolidated basis, the most directly comparable GAAP financial measure to EBITDA is net income (loss) attributable to Dynegy Inc. It can be reconciled using the following calculation: Net income (loss) plus Income tax (benefit) expense, Interest expense and Depreciation and amortization expense.
· Further, because management does not allocate interest expense and income taxes on a segment level, the most directly comparable GAAP financial measure to EBITDA when performance is discussed on a segment level or plant level is Operating income (loss).
Cash Flow Measures. Our non-GAAP Cash Flow measures may not be representative of the amount of residual cash flow that is available to us for discretionary expenditures, since they may not include deductions for mandatory debt service requirements and other non-discretionary expenditures. We believe, however, that our non-GAAP Cash Flow measures are useful because they measure the cash generating ability of our operating asset-based energy business relative to our capital expenditure obligations and financial performance. However, these non-GAAP Cash Flow measures do not have standardized definitions; therefore, it may not be possible to compare these financial measures with other companies’ cash flow measures having the same or similar names. The most directly comparable GAAP financial measure to the below measures is cash flow from operations.
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· “Adjusted Cash Flow from Operations” - We define “Adjusted Cash Flow from Operations” as cash flow from operations excluding cash payments on significant items, such as legal and regulatory payments.
· “Adjusted Free Cash Flow” – We define “Adjusted Free Cash Flow” as cash flow from operations excluding cash payments on significant items less maintenance and environmental capital expenditures.
We believe that the non-GAAP and forward-looking non-GAAP measures disclosed in our filings are only useful as an additional tool to help management and investors make informed decisions about Dynegy’s financial and operating performance. Further, there can be no assurance that the assumptions made in preparing the forward-looking non-GAAP numbers will prove accurate, and actual results may be materially greater or less than those contained in the forward-looking non-GAAP numbers. By definition, non-GAAP measures do not give a full understanding of Dynegy; therefore, to be truly valuable, they must be used in conjunction with the GAAP measures. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.
We use these non-GAAP financial measures in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures reflect an additional way of viewing aspects of our business that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures included in our earnings release and schedules attached thereto, may provide a more complete understanding of factors and trends affecting our business. These non-GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures and are by definition an incomplete understanding of Dynegy, and must be considered in conjunction with GAAP measures.
Item 7.01 Regulation FD Disclosure.
On May 10, 2010, Dynegy issued a press release announcing its results of operations for the first quarter and reaffirming its 2010 financial estimates, a copy of which is being furnished as Exhibit 99.1 and is herein incorporated by reference. The information set forth in Item 2.02 above is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit No. Document
99.1 Press release dated May 10, 2010, announcing results of operations for the first quarter 2010.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DYNEGY INC.
(Registrant)
Dated: May 10, 2010 By: /s/ Kimberly M. O’Brien
Name: Kimberly M. O’Brien
Title: Corporate Secretary
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EXHIBIT INDEX
Exhibit No. Document
99.1 Press release dated May 10, 2010, announcing results of operations for the first quarter 2010.
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FOR IMMEDIATE RELEASE NR10-07
DYNEGY ANNOUNCES FIRST QUARTER 2010 FINANCIAL RESULTS
· First quarter 2010 Adjusted EBITDA of $152 million down 24 percent period-over-period primarily due to reduced contributions from hedging activities and reduced spark spreads
· First quarter 2010 net income attributable to Dynegy Inc. of $145 million increased from a net loss of $335 million in the first quarter 2009 primarily due to 2009 impairment charges partially offset by larger mark-to-market gains in 2010
· Capital structure includes liquidity of approximately $2.3 billion
· Reaffirming 2010 guidance estimates
HOUSTON (May 10, 2010) – Dynegy Inc. (NYSE: DYN) today announced that Adjusted EBITDA for the first quarter 2010 was $152 million, compared to $199 million for the first quarter 2009. The company also reported net income attributable to Dynegy Inc. of $145 million or $0.24 per diluted share for the first quarter 2010, compared to a net loss of $335 million or $(0.40) per diluted share for the first quarter 2009. Net income in the first quarter 2010 primarily included mark-to-market gains of $253 million ($152 million after tax). The net loss in the first quarter 2009 was primarily driven by impairment charges of $438 million ($436 million after tax), which were partially offset by mark-to-market gains of $169 million ($105 million after tax).
A comparison of the company’s first quarter results period-over-period, including items that affected the GAAP measures of net income and net loss, is provided in more detail in the table below and the schedules that accompany this news release.
“While our first quarter results continued to be impacted by lower demand, we view the emerging economic recovery as a precursor to demand growth and potentially more favorable power pricing in the future,” said Bruce A. Williamson, Chairman, President and Chief Executive Officer of Dynegy Inc. “In the current market environment, certain factors are beyond our control. We nevertheless demonstrated our commitment to operating and commercializing well during the first quarter, with our diverse natural gas- and coal-fired power plants maintaining strong reliability levels during the quarter.”
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First Quarter Comparative Results
A comparison of the company’s first quarter results period-over-period is set forth in the table below (in millions of dollars, except per share amounts). The non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow are used by management to evaluate Dynegy’s business on an ongoing basis. Definitions, purposes and uses of such non-GAAP measures are included in Item 2.02 to our Current Report on Form 8-K filed with the SEC on May 10, 2010, which is available on the company’s website free of charge at www.dynegy.com. Reconciliations of these measures to the most directly comparable GAAP measures are included in the accompanying schedules to this news release.
3 Months Ended 3/31/2010 3 Months Ended 3/31/2009
Basic Earnings (Loss) Per Share Attributable to Dynegy Inc. $ 0.24 $ (0.40 )
Diluted Earnings (Loss) Per Share Attributable to Dynegy Inc. $ 0.24 $ (0.40 )
Net Income (Loss) Attributable to Dynegy Inc. $ 145 $ (335 )
Add Back:
Income Tax Expense 65 85
Interest Expense 89 98
Depreciation and Amortization Expense 75 92
EBITDA 374 (60 )
Plus / (Less):
Impairment charges 37 438
Plum Point Mark-to-Market Gains (6 ) -
Sandy Creek Mark-to-Market Gains - (10 )
Mark-to-Market Gains, Net (253 ) (169 )
Adjusted EBITDA $ 152 $ 199
Power Generation
Dynegy’s diversified power generation business includes three business segments: the Midwest, with approximately 5,400 megawatts of generation capacity; the West, with approximately 3,700 megawatts of generation capacity; and the Northeast, with approximately 3,300 megawatts of generation capacity.
Adjusted EBITDA from the power generation segments was $185 million for the first quarter 2010, compared to $230 million for the first quarter 2009.
Management does not allocate interest expense and income taxes on a segment level and therefore uses operating income as the most directly comparable GAAP measure. Operating income from the power generation segments was $365 million for the first quarter 2010, which included mark-to-market gains. This compares to an operating loss of $109 million for the first quarter 2009, which included impairment charges partially offset by mark-to-market gains.
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The following operational and commercial factors influenced the company’s first quarter 2010 Adjusted EBITDA as compared to the first quarter 2009.
· Midwest – Adjusted EBITDA decreased 24 percent and production volumes decreased 2 percent. Energy margin from coal-fired facilities was primarily impacted by the reduced contribution from hedging activities. Energy margin from combined-cycle facilities was primarily impacted by compressed spark spreads. These decreases were partially offset by the receipt of a termination payment associated with the early exit from the Kendall tolling contract, as well as higher capacity revenues and a net benefit resulting from the sale of options. The company’s coal fleet production volumes increased 10 percent primarily due to improved unit availability due to fewer outages. This was offset by a 49 percent decrease in combined-cycle production volumes that primarily resulted from compressed spark spreads.
· West – Adjusted EBITDA increased 77 percent and production volumes decreased 4 percent. Energy margin was primarily impacted by the reduced contribution from hedging activities. This decrease was offset by a net benefit from selling options. In addition, Adjusted EBITDA benefited from reduced operating expenses associated with two combined-cycle facilities that were sold in the fourth quarter 2009.
· Northeast – Adjusted EBITDA decreased 55 percent and production volumes decreased 52 percent. Energy margin was primarily impacted by compressed spark spreads. Adjusted EBITDA was also impacted by lower emission sales and the absence of earnings from the Bridgeport combined-cycle facility, which was sold in the fourth quarter 2009. These decreases were partially offset by a net benefit resulting from the sale of options.
Adjusted Cash Flow from Operations for generation was $537 million for the three months ended March 31, 2010, while maintenance and environmental capital expenditures were $30 million and $69 million, respectively. Adjusted Cash Flow from Operations for generation was $258 million for the three months ended March 31, 2009, while maintenance and environmental capital expenditures were $28 million and $82 million, respectively. The period-over-period increase in Adjusted Cash Flow from Operations for generation reflects increased 2010 cash inflows from the company’s collateral clearing agent primarily due to changes in the value of financial positions, which were significantly impacted in 2010 by lower power prices. Adjusted Free Cash Flow from the power generation business was $438 million for the three months ended March 31, 2010, compared to $148 million for the three months ended March 31, 2009.
On a GAAP basis, Cash Flow from Operations for generation was $537 million for the three months ended March 31, 2010, and $255 million for the three months ended March 31, 2009. Net cash used in investing activities was $241 million for the three months ended March 31, 2010. Net cash used in investing activities was $161 million for the three months ended March 31, 2009. Net cash provided by financing activities was zero for the three months ended March 31, 2010. Net cash provided by financing activities was $25 million for the three months ended March 31, 2009.
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Other
Other primarily consists of general and administrative expenses, partially offset by interest income. General and administrative expenses were $31 million in the first quarter 2010, compared to $38 million in the first quarter 2009. The period-over-period decrease in general and administrative expenses primarily resulted from the company’s cost reduction program, which was initiated in 2009. Interest income was less than $1 million in the first quarter 2010, compared to $2 million in the first quarter 2009. In Other, the company reported a $33 million Adjusted loss before interest, taxes and depreciation and amortization ($34 million operating loss) during the first quarter 2010, compared to an Adjusted loss of $31 million ($37 million operating loss) during the first quarter 2009.
Consolidated Interest Expense and Taxes
The company’s interest expense totaled $89 million for the first quarter 2010, compared to an interest expense of $98 million for the first quarter 2009. The lower interest expense in the first quarter 2010 was primarily driven by lower outstanding debt balances associated with the paydown of 2011 and 2012 bond maturities and the deconsolidation of PPEA Holding Company, LLC as provided by new accounting standards, effective January 1, 2010. This was partially offset by the issuance of $235 million of senior unsecured notes in connection with a strategic transaction, as well as higher LIBOR rates on the company’s variable-rate debt. The income tax expense from continuing operations was $65 million for the first quarter 2010, compared to an income tax expense from continuing operations of $91 million for the first quarter 2009.
Liquidity and Debt
As of March 31, 2010, Dynegy’s liquidity was $2.3 billion. This consisted of $802 million in cash on hand and marketable securities and $1.5 billion in unused availability under the company’s credit facility.
As of May 3, 2010, liquidity remained at approximately $2.3 billion, which consisted of $746 million in cash on hand and marketable securities and $1.5 billion in unused availability under the company’s credit facility.
As of March 31, 2010, Dynegy’s net debt and other obligations totaled $3.8 billion. This included net cash on hand and marketable securities of $802 million and restricted cash of $850 million. Net debt and other obligations now exclude $744 million of project debt as a result of the deconsolidation of PPEA Holding Company, LLC.
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Consolidated Cash Flow
Adjusted Cash Flow from Operations totaled an inflow of $458 million for the three months ended March 31, 2010. There was a cash inflow of $537 million from the power generation business, offset by outflows of $79 million in Other resulting primarily from general and administrative expenses and interest payments, net of interest income.
For the three months ended March 31, 2010, Dynegy’s Adjusted Free Cash Flow was an inflow of $358 million. Capital expenditures included maintenance and environmental capital expenditures of $31 million and $69 million, respectively, the latter of which reflects the company’s continuing investment in environmental upgrades.
For the three months ended March 31, 2009, Dynegy’s Adjusted Free Cash Flow was an inflow of $76 million. This consisted of Adjusted Cash Flow from Operations of $188 million, offset by maintenance and environmental capital expenditures of $30 million and $82 million, respectively.
On a GAAP basis, Cash Flow from Operations for the three months ended March 31, 2010, and March 31, 2009, was $458 million and $165 million, respectively. Net cash used in investing activities was $241 million for the three months ended March 31, 2010. Net cash used in investing activities was $161 million for the three months ended March 31, 2009. Net cash provided by financing activities was zero for the three months ended March 31, 2010. Net cash provided by financing activities was $25 million for the three months ended March 31, 2009.
2010 Guidance Estimates
On February 25, 2010, the company provided Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow ranges for 2010. In today’s news release, the company is reaffirming those ranges, which are:
· A range of Adjusted EBITDA of $425 million to $550 million;
· A range of Adjusted Cash Flow from Operations of $(15) million to $110 million; and
· A range of Adjusted Free Cash Flow of $(360) million to $(235) million. This primarily reflects the significant investment in environmental capital expenditures to reduce emissions.
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The guidance estimates for the most directly comparable measures on a GAAP basis include:
· A range of Net Loss of $(135) million to $(60) million;
· A range of Cash Flow from Operations of $(15) million to $110 million;
· Net Cash used in Investing Activities of $(400) million; and
· Net Cash provided by Financing Activities of $15 million.
These estimates reflect quoted forward commodity price curves as of April 5, 2010. These estimates also reflect assumptions regarding, among other things, sales volumes, fuel costs and other operational and commercial activities.
Investor Conference Call/Web Cast
Dynegy will discuss its first quarter 2010 financial results during an investor conference call and web cast today, May 10, 2010, at 9 a.m. ET/8 a.m. CT. Participants may access the web cast and the related presentation materials in the “Investor Relations” section of www.dynegy.com.
About Dynegy Inc.
Through its subsidiaries, Dynegy Inc. produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,500 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. DYNC
Certain statements included in this news release are intended as “forward-looking statements.” These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the statements concerning financial guidance estimates and anticipated earnings or cash flows. Historically, Dynegy’s performance has deviated, in some cases materially, from its cash flow and earnings estimates, and Dynegy cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. While Dynegy would expect to update these estimates on a quarterly basis, it does not intend to update these estimates during any quarter because definitive information regarding its quarterly financial results is not available until after the books for the quarter have been closed. Accordingly, Dynegy expects to provide updates only after it has closed the books and reported the results for a particular quarter, except as otherwise required by applicable law.
Dynegy cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Dynegy cautions that: market fundamentals and trends may not be to Dynegy’s benefit or as Dynegy anticipates; Dynegy’s capital resources and available liquidity may be negatively impacted by market forces beyond its control, reducing capital available for discretionary or other purposes; Dynegy’s asset base may not perform at the level anticipated; changes in commodity prices for fuel and power may negatively impact Dynegy and impact its ability to continue to satisfy its credit agreement financial covenants; longer-term power market improvements may not occur, and even if they do Dynegy may not be in a position to capitalize on them; and uncertainties exist regarding environmental regulations, litigation and other legal, legislative or regulatory developments and their potential impacts on Dynegy’s businesses. More information about the risks and uncertainties relating to these forward-looking statements is found in Dynegy’s SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2009, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, and its Current Reports, all of which are available free of charge on Dynegy’s website at www.dynegy.com. Dynegy expressly disclaims any obligation to update any forward-looking statements contained in this news release to reflect events or circumstances that may arise after the date of this release, except as otherwise required by applicable law.
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DYNEGY INC.
REPORTED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN MILLIONS, EXCEPT PER SHARE DATA)
Three Months Ended
March 31,
2010 2009
Revenues $ 858 $ 904
Cost of sales (308 ) (378 )
Operating and maintenance expense, exclusive of depreciation and amortization expense shown separately below (113 ) (115 )
Depreciation and amortization expense (75 ) (86 )
Goodwill impairments - (433 )
General and administrative expenses (31 ) (38 )
Operating income (loss) 331 (146 )
Earnings (losses) from unconsolidated investments (34 ) 8
Interest expense (89 ) (98 )
Other income and expense, net 1 4
Income (loss) from continuing operations before income taxes 209 (232 )
Income tax expense (65 ) (91 )
Income (loss) from continuing operations 144 (323 )
Income (loss) from discontinued operations, net of tax 1 (14 )
Net income (loss) 145 (337 )
Less: Net loss attributable to the noncontrolling interests - (2 )
Net income (loss) attributable to Dynegy Inc. $ 145 $ (335 )
Basic earnings (loss) per share attributable to Dynegy Inc.:
Earnings (loss) from continuing operations (1) $ 0.24 $ (0.38 )
Loss from discontinued operations - (0.02 )
Basic earnings (loss) per share attributable to Dynegy Inc. $ 0.24 $ (0.40 )
Diluted earnings (loss) per share attributable to Dynegy Inc.:
Earnings (loss) from continuing operations (1) $ 0.24 $ (0.38 )
Loss from discontinued operations - (0.02 )
Diluted earnings (loss) per share attributable to Dynegy Inc. $ 0.24 $ (0.40 )
Basic shares outstanding 599 841
Diluted shares outstanding 604 843
(1) A reconciliation of basic earnings (loss) per share from continuing operations attributable to Dynegy Inc. to diluted earnings (loss) per share from continuing operations attributable to Dynegy Inc. is presented below:
Three Months Ended
March 31,
2010 2009
Income (loss) from continuing operations $ 144 $ (323 )
Less: Net loss attributable to the noncontrolling interests - (2 )
Income (loss) from continuing operations attributable to Dynegy Inc. for basic and diluted earnings (loss) per share $ 144 $ (321 )
Basic weighted-average shares 599 841
Effect of dilutive securities:
Stock options 5 2
Diluted weighted-average shares 604 843
Earnings (loss) per share from continuing operations attributable to Dynegy Inc.:
Basic $ 0.24 $ (0.38 )
Diluted (2) $ 0.24 $ (0.38 )
(2) Entities with a net loss from continuing operations are prohibited from including potential common shares in the computation of diluted per-share amounts. Accordingly, Dynegy Inc. has utilized the basic shares outstanding amount to calculate both basic and diluted loss per share for the three months ended March 31 , 2009.
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DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2010
(UNAUDITED) (IN MILLIONS)
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Net income attributable to Dynegy Inc. $ 145
Plus / (Less):
Income tax expense (4) 65
Interest expense 89
Depreciation and amortization expense 75
EBITDA (1) $ 276 $ 62 $ 69 $ (33 ) $ 374
Plus / (Less):
Asset impairment (2) 37 - - - 37
Plum Point mark-to-market gains (3) (6 ) - - - (6 )
Mark-to-market gains, net (179 ) (23 ) (51 ) - (253 )
Adjusted EBITDA (1) $ 128 $ 39 $ 18 $ (33 ) $ 152
(1) EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please refer to Item 2.02 of our Form 8-K filed on May 10, 2010, for definitions, utility and uses of such non-GAAP financial measures. A reconciliation of EBITDA to Operating income (loss) is presented below. Management does not allocate interest expenses and income taxes on a segment level and therefore uses Operating income (loss) as the most directly comparable GAAP measure.
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Operating income (loss) $ 260 $ 45 $ 60 $ (34 ) $ 331
Losses from unconsolidated investments (34 ) - - - (34 )
Other items, net - - 1 - 1
Depreciation and amortization expense 50 16 8 1 75
EBITDA from continuing operations 276 61 69 (33 ) 373
EBITDA from discontinued operations (5) - 1 - - 1
EBITDA $ 276 $ 62 $ 69 $ (33 ) $ 374
(2) We recognized a pre-tax charge of approximately $37 million ($23 million after-tax) related to the impairment of Dynegy's investment in PPEA Holding Company, LLC due to the uncertainty and risk surrounding PPEA's financial structure. This charge is included in Earnings (losses) from unconsolidated investments on our Reported Unaudited Condensed Consolidated Statements of Operations and will be further described in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010.
(3) We recognized pre-tax income of approximately $6 million ($4 million after-tax) related to the change in fair value of the Plum Point Project interest rate swaps. This income is included in Earnings (losses) from unconsolidated investments on our Reported Unaudited Condensed Consolidated Statements of Operations.
(4) Includes a benefit of $16 million related to the release of a reserve for uncertain tax positions upon completion of an audit.
(5) A reconciliation of EBITDA from discontinued operations to Income from discontinued operations, net of tax, is presented below.
EBITDA from discontinued operations $ 1
Income tax expense from discontinued operations -
Income from discontinued operations, net of tax $ 1
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DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2009
(UNAUDITED) (IN MILLIONS)
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Net loss attributable to Dynegy Inc. $ (335 )
Plus / (Less):
Income tax expense (5) 85
Interest expense 98
Depreciation and amortization expense 92
EBITDA (1) $ 256 $ (257 ) $ (28 ) $ (31 ) $ (60 )
Plus / (Less):
Impairments (2) 81 260 97 - 438
Sandy Creek mark-to-market gains (3) - (10 ) - - (10 )
Mark-to-market losses (gains), net (169 ) 29 (29 ) - (169 )
Adjusted EBITDA (1) $ 168 $ 22 $ 40 $ (31 ) $ 199
(1) EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please refer to Item 2.02 of our Form 8-K filed on May 10, 2010, for definitions, utility and uses of such non-GAAP financial measures. A reconciliation of EBITDA to Operating income (loss) is presented below. Management does not allocate interest expenses and income taxes on a segment level and therefore uses Operating income (loss) as the most directly comparable GAAP measure.
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Operating income (loss) $ 206 $ (272 ) $ (43 ) $ (37 ) $ (146 )
Earnings from unconsolidated investments - 7 - 1 8
Other items, net 2 - - 2 4
Net loss attributable to the noncontrolling interests 2 - - - 2
Add: Depreciation and amortization expense 51 17 15 3 86
EBITDA from continuing operations 261 (248 ) (28 ) (31 ) (46 )
EBITDA from discontinued operations (4) (5 ) (9 ) - - (14 )
EBITDA $ 256 $ (257 ) $ (28 ) $ (31 ) $ (60 )
(2) We recognized pre-tax charges of approximately $438 million ($436 million after-tax) related to impairments. These charges consist of pre-tax charges of approximately $433 million ($433 million after-tax) related to impairments of our goodwill and a pre-tax charge of approximately $5 million ($3 million after-tax) related to the impairment of our Bluegrass power generation facility, which was sold in fourth quarter 2009, due to a decline in the fair value as a result of changes in market conditions. These charges are included in Goodwill impairments and Income (loss) from discontinued operations, net of tax, on our Reported Unaudited Condensed Consolidated Statements of Operations and will be further described in our Quarterly Report on Form 10-Q for the three months ended March 31, 2010.
(3) We recognized pre-tax income of approximately $10 million ($6 million after-tax) related to the change in fair value of the Sandy Creek Project interest rate swaps. This income is included in Earnings (losses) from unconsolidated investments on our Reported Unaudited Condensed Consolidated Statements of Operations.
(4) A reconciliation of EBITDA from discontinued operations to Loss from discontinued operations, net of tax, is presented below.
EBITDA from discontinued operations $ (14)
Depreciation and amortization expense from discontinued operations (6)
Income tax benefit from discontinued operations 6
Loss from discontinued operations, net of tax $ (14)
(5) Includes an additional expense primarily due to nondeductible goodwill and $21 million due to a change in state income tax law.
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DYNEGY INC.
SUMMARY CASH FLOW INFORMATION (1)
(UNAUDITED) (IN MILLIONS)
Three Months Ended March 31, 2010 Three Months Ended March 31, 2009
GEN OTHER Total GEN OTHER Total
Adjusted EBITDA (2) $ 185 $ (33 ) $ 152 $ 230 $ (31 ) $ 199
Interest payments (3) - (15 ) (15 ) - (30 ) (30 )
Cash taxes - (3 ) (3 ) - 1 1
Working capital / non-cash adjustments / other changes 352 (28 ) 324 28 (10 ) 18
Adjusted Cash Flow from Operations (4) 537 (79 ) 458 258 (70 ) 188
Maintenance capital expenditures (30 ) (1 ) (31 ) (28 ) (2 ) (30 )
Environmental capital expenditures (69 ) - (69 ) (82 ) - (82 )
Adjusted Free Cash Flow (4) $ 438 $ (80 ) $ 358 $ 148 $ (72 ) $ 76
Net cash used in Investing Activities $ (241 ) $ (161 )
Net cash provided by Financing Activities $ - $ 25
(1) This presentation is intended to demonstrate the relationship between the performance measure of Adjusted EBITDA and the liquidity measure of Adjusted Free Cash Flow. We believe it is useful to our analysts and investors to understand this relationship because it demonstrates how the cash generated by our operations is used to satisfy various liquidity requirements. This presentation is not intended to be a reconciliation of non-GAAP measures pursuant to Regulation G. Such reconciliations of these non-GAAP financial measures to GAAP measures can be found below.
(2) Adjusted EBITDA is a non-GAAP financial measure. Please refer to Item 2.02 of our Form 8-K filed on May 10, 2010, for definitions, utility and uses of such non-GAAP financial measures. Please see Reported Segmented Results of Operations for the three months ended March 31, 2010, and March 31, 2009, for a reconciliation of Adjusted EBITDA to Net income (loss) attributable to Dynegy Inc.
(3) Three months ended March 31, 2009, includes $2 million of interest payments related to Plum Point.
(4) Adjusted Cash Flow from Operations and Adjusted Free Cash Flow are non-GAAP financial measures. Please refer to Item 2.02 of our Form 8-K filed on May 10, 2010, for definitions, utility and uses of such non-GAAP financial measures. A reconciliation of Adjusted Cash Flow from Operations and Adjusted Free Cash Flow to Cash Flow from Operations is presented below.
Three Months Ended March 31, 2010 Three Months Ended March 31, 2009
GEN OTHER Total GEN OTHER Total
Cash Flow from Operations $ 537 $ (79 ) $ 458 $ 255 $ (90 ) $ 165
Legal and regulatory payments - - - 3 1 4
Payment for JV Dissolution - - - - 19 19
Adjusted Cash Flow from Operations 537 (79 ) 458 258 (70 ) 188
Maintenance capital expenditures (30 ) (1 ) (31 ) (28 ) (2 ) (30 )
Environmental capital expenditures (69 ) - (69 ) (82 ) - (82 )
Adjusted Free Cash Flow $ 438 $ (80 ) $ 358 $ 148 $ (72 ) $ 76
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DYNEGY INC.
OPERATING DATA
Three Months Ended
March 31,
2010 2009
GEN - MW
Million Megawatt Hours Generated 6.4 6.5
In Market Availability for Coal Fired Facilities (1) 94 % 86 %
Average Capacity Factor for Combined Cycle Facilities (2) 16 % 30 %
Average Quoted On-Peak Market Power Prices ($/MWh) (3):
Cinergy (Cin Hub) $ 42 $ 39
Commonwealth Edison (NI Hub) $ 42 $ 40
PJM West $ 52 $ 55
Average On-Peak Market Spark Spreads ($/MWh) (4):
PJM West $ 9 $ 11
GEN - WE
Million Megawatt Hours Generated (5) 1.4 1.5
Average Capacity Factor for Combined Cycle Facilities (2) 58 % 26 %
Average Quoted On-Peak Market Power Prices ($/MWh) (3):
North Path 15 (NP 15) $ 47 $ 40
Average On-Peak Market Spark Spreads ($/MWh) (4):
North Path 15 (NP 15) $ 7 $ 6
GEN - NE
Million Megawatt Hours Generated 1.5 3.1
In Market Availability for Coal Fired Facilities (1) 92 % 97 %
Average Capacity Factor for Combined Cycle Facilities (2) 28 % 48 %
Average Quoted On-Peak Market Power Prices ($/MWh) (3):
New York - Zone G $ 57 $ 62
New York - Zone A $ 40 $ 47
Mass Hub $ 55 $ 59
Average On-Peak Market Spark Spreads ($/MWh) (4):
New York - Zone A $ 0 $ 10
Mass Hub $ 9 $ 15
Fuel Oil $ (72 ) $ (9 )
Average Natural Gas Price - Henry Hub ($/MMBtu) (6) $ 5.15 $ 4.58
(1) Reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched.
(2) Reflects actual production as a percentage of available capacity.
(3) Reflects the average of day-ahead quoted prices for the periods presented and does not necessarily reflect prices we realized.
(4) Reflects the simple average of the spark spread available to a 7.0 MMBtu / MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas or fuel oil at a daily cash market price and does not reflect spark spreads available to us.
(5) Includes our ownership percentage in the MWh generated by our GEN-WE investment in the Black Mountain power generation facility for the three months ended March 31, 2010, and March 31, 2009, respectively.
(6) Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us.
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DYNEGY INC.
2010 EARNINGS ESTIMATES (1)
(IN MILLIONS)
Power Generation
GEN - MW GEN - WE GEN - NE Total GEN OTHER Total
Adjusted Gross Margin (2) $ 585 $ 680 $ 245 $ 255 $ 225 $ 245 $ 1,055 $ 1,180 $ - $ - $ 1,055 $ 1,180
Operating Expenses (215 ) (215 ) (115 ) (115 ) (165 ) (165 ) (495 ) (495 ) - - (495 ) (495 )
General and Administrative Expense - - - - - - - - (150 ) (150 ) (150 ) (150 )
Other Items, Net - - - - - - - - 15 15 15 15
Adjusted EBITDA (2) $ 370 $ 465 $ 130 $ 140 $ 60 $ 80 $ 560 $ 685 $ (135 ) $ (135 ) $ 425 $ 550
2010 CASH FLOW ESTIMATES (1) (3)
(IN MILLIONS)
GEN OTHER Total
Adjusted EBITDA (2) $ 560 $ 685 $ (135 ) $ (135 ) $ 425 $ 550
Cash Interest Payments - - (380 ) (380 ) (380 ) (380 )
Cash Tax Payments - - (5 ) (5 ) (5 ) (5 )
Working Capital / Other Changes (60 ) (60 ) 5 5 (55 ) (55 )
Adjusted Cash Flow from Operations (4) 500 625 (515 ) (515 ) (15 ) 110
Maintenance Capital Expenditures (110 ) (110 ) (10 ) (10 ) (120 ) (120 )
Environmental Capital Expenditures (200 ) (200 ) - - (200 ) (200 )
Capitalized Interest (25 ) (25 ) - - (25 ) (25 )
Adjusted Free Cash Flow (4) $ 165 $ 290 $ (525 ) $ (525 ) $ (360 ) $ (235 )
Net Cash Used in Investing Activities $ (400 ) $ (400 )
Net Cash Provided by Financing Activities $ 15 $ 15
(1) 2010 estimates are based on quoted forward commodity price curves using a $4.73/MMBtu gas price as of April 5, 2010. Actual results may vary materially from these estimates based on changes in commodity prices, among other things, including operational activities, legal settlements, financing or investing activities and other uncertain or unplanned items. Reduced 2010 and forward adjusted EBITDA or free cash flow could result from potential divestitures of (a) non-core assets where the earnings potential is limited, or (b) assets where the value that can be captured through a divestiture is believed to outweigh the benefits of continuing to own or operate such assets. Divestitures could also result in impairment charges.
(2) EBITDA, Adjusted EBITDA and Adjusted Gross Margin are non-GAAP financial measures. Please refer to Item 2.02 of our Form 8-K filed on May 10, 2010, for definitions, utility and uses of such non-GAAP financial measures. Reconciliations of consolidated EBITDA and Adjusted EBITDA to Net Loss attributable to Dynegy Inc. and Adjusted Gross Margin to Operating Income (loss) are presented below. Management does not allocate interest expenses and income taxes on a segment level and therefore uses Operating Income (loss) as the most directly comparable GAAP measure. Accordingly, a reconciliation of EBITDA and Adjusted EBITDA to Operating Income (loss) on a segment level is also presented below.
Power Generation
GEN - MW GEN - WE GEN - NE Total GEN OTHER Total
Operating Income (Loss) $ 205 $ 300 $ 65 $ 75 $ 45 $ 65 $ 315 $ 440 $ (165 ) $ (165 ) $ 150 $ 275
Losses From Unconsolidated Investments (35 ) (35 ) - - - - (35 ) (35 ) - - (35 ) (35 )
Other Items, Net - - - - - - - - 15 15 15 15
Add: Depreciation and Amortization Expense 215 215 65 65 35 35 315 315 15 15 330 330
EBITDA $ 385 $ 480 $ 130 $ 140 $ 80 $ 100 $ 595 $ 720 $ (135 ) $ (135 ) $ 460 $ 585
Plus / (Less):
Asset impairment 40 40 - - - - 40 40 - - 40 40
Plum Point Mark-to-Market Gains (5 ) (5 ) - - - - (5 ) (5 ) - - (5 ) (5 )
Mark-to-Market Gains, net (50 ) (50 ) - - (20 ) (20 ) (70 ) (70 ) - - (70 ) (70 )
Adjusted EBITDA $ 370 $ 465 $ 130 $ 140 $ 60 $ 80 $ 560 $ 685 $ (135 ) $ (135 ) $ 425 $ 550
Power Generation
GEN - MW GEN - WE GEN - NE Total GEN OTHER Total
Adjusted Gross Margin $ 585 $ 680 $ 245 $ 255 $ 225 $ 245 $ 1,055 $ 1,180 $ - $ - $ 1,055 $ 1,180
Mark-to-Market Gains 50 50 - - 20 20 70 70 - - 70 70
Operating Expenses (215 ) (215 ) (115 ) (115 ) (165 ) (165 ) (495 ) (495 ) - - (495 ) (495 )
Depreciation and Amortization Expense (215 ) (215 ) (65 ) (65 ) (35 ) (35 ) (315 ) (315 ) (15 ) (15 ) (330 ) (330 )
General and Administrative Expenses - - - - - - - - (150 ) (150 ) (150 ) (150 )
Operating Income (Loss) $ 205 $ 300 $ 65 $ 75 $ 45 $ 65 $ 315 $ 440 $ (165 ) $ (165 ) $ 150 $ 275
Total
Net Loss attributable to Dynegy Inc. $ (135 ) $ (60 )
Add Back:
Income Tax Benefit (110 ) (60 )
Interest Expense 375 375
Depreciation and Amortization Expense 330 330
EBITDA $ 460 $ 585
Plus / (Less):
Asset Impairment 40 40
Plum Point Mark-to-Market Gains (5 ) (5 )
Mark-to-Market Gains, net (70 ) (70 )
Adjusted EBITDA $ 425 $ 550
(3) This presentation is not intended to be a reconciliation of non-GAAP measures pursuant to Regulation G.
(4) Adjusted Cash Flow from Operations and Adjusted Free Cash Flow are non-GAAP financial measures. Please refer to Item 2.02 of our Form 8-K filed on May 10, 2010, for definitions, utility and uses of such non-GAAP financial measures. A reconciliation of Adjusted Cash Flow from Operations and Adjusted Free Cash Flow to Cash Flow from Operations is presented below.
GEN OTHER Total
Cash Flow and Adjusted Cash Flow From Operations $ 500 $ 625 $ (515 ) $ (515 ) $ (15 ) $ 110
Maintenance Capital Expenditures (110 ) (110 ) (10 ) (10 ) (120 ) (120 )
Environmental Capital Expenditures (200 ) (200 ) - - (200 ) (200 )
Capitalized Interest (25 ) (25 ) - - (25 ) (25 )
Adjusted Free Cash Flow $ 165 $ 290 $ (525 ) $ (525 ) $ (360 ) $ (235 )
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Closed above the 50 DMA. This is Bullish.
DYN: Gap-Up pre-market.
Dynegy Swings To 1Q Profit After Year-Earlier Write-Downs
0 minutes ago - Dow Jones News
Related Companies
Symbol Last %Chg
DYN 1.19 0.00%
As of 4:01 PM ET 5/7/10
DOW JONES NEWSWIRES
Dynegy Inc. (DYN) swung to a first-quarter profit as year-earlier results were stung by write-downs, while power output was down across the board in the latest period.
"While our first-quarter results continued to be impacted by lower demand, we view the emerging economic recovery as a precursor to demand growth and potentially more favorable power pricing in the future," said Chairman and Chief Executive Bruce A. Williamson.
Power producers have continued to see weakened sales, and Dynegy has been hurt by falling natural-gas prices. Standard & Poor's Ratings Services in April downgraded Dynegy and two peers, saying trends in commodities prices were putting pressures on their margins. Moody's Investors Service also last month put Dynegy on review for possible downgrade.
Dynegy reported a profit of $145 million, or 24 cents a share, from a year-earlier loss of $335 million, or 40 cents. The results included $37 million and $438 million in write-downs, respectively. There were also 28% fewer shares outstanding in the most-recent quarter.
Revenue dropped 5.1% to $858 million.
Gross margin rose to 64.1% from 58.2%.
Volume in the Midwest region--which makes most of the company's money--declined 2%, while it fell 4% in the West. Its smaller Northeast region operations had a 52% slump in output, in part on a divestiture.
Shares closed at $1.19 Friday and were inactive premarket. The stock has fallen 50% in the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;
NEWS OUT
IDCN & CNEX, bottoming: Full Stochastic making the turn.
If the MKT trades Higher, C is looking good. Also, liking CNEX at this level.
Nice Chart, S&P is a leading indicator, Industial Production is a lagger. Just as the chart shows. Note: The U.S. economy is and has been for a while a service economy and 25% of the S&P is made up of Financals. Therefore, showing a larger disconect between the S&P and Industial Production.
Need a down side push before earnings to pick-up on the cheap. Look at 20 DMA.
News not helping stock price; still @ .0001
ARTS, Looking to bottom. Stochastic about to turn higher.
TNSX, VOLUME - This one could move higher, or doff.
DYN Pushing Higher.
C, BAC, and the Financals, XLF, bouncing off 20 DMA, Stochastics turning.
Stochastics turning, took half of DYN off. Bought some of the Sept. 2.50 Calls for .05.
DYN still above 10 day (1.26) and 20 day (1.25) moving averages. Res. @ the 50 DMA (1.39).
10 day and 20 day moving averages are @ 1.25. If more selling presure comes into the MKT to break this level I see testing 1.16.