Yahoo Finance NRG Energy (NRG) Details Interim Financial Impact of Storm Uri
NRG Energy Inc. NRG along with other utilities in Texas witnessed Winter Storm Uri and its unprecedented effect on the ERCOT system. The prolonged cold temperatures resulted in a power emergency situation including power outages.
Given the evolving nature of the impacts regarding the extreme weather, it is not possible for the company to predict with accuracy the cumulative impact of these events on its future financial results. Thus, it provided an interim financial update and also withdrew its previously announced 2021 financial guidance due to the prevalent uncertainties. The company currently estimates a loss of $750 million compared with the expected impact of a profit or loss of $100 million on the guidance provided on Mar 1, 2021.
Despite its efforts to prepare for the winter storm, the extreme weather conditions had an adverse impact in its operations in Texas not withstanding the all-time peak demand during the storm. At present, the company is working with all stakeholders to improve the resilience of its energy system.
Efforts of Other Utilities
The electric utility industry continues to invest substantially in its assets to provide reliable services to its customers and to effectively meet rising electricity demand. Also, all companies keep investing in their infrastructure from time to time so that they can withstand extreme weather conditions like storms and cyclones causing minimum disruption. They spend millions on maintaining and enhancing the technology as well as infrastructure for uninterrupted power supply to its customers.
Xcel Energy XEL increased its investment plans to $24.3 billion from $23.5 billion in the 2021-2025 time period to reflect new investments worth $750 million in wind project. In 2021, FirstEnergy FE expects to spend up to $3,015 million while in 2022, it estimates to invest up to $3,025-$3,275 million. Also, it provided the CAPEX guidance for 2023 in the range of $2,955-$3,205 million. Pinnacle West Capital PNW has plans to spend $1,500 million annually through the 2021-2023 time period to strengthen and expand its existing infrastructure.
Zacks Rank & Price Performance
The utility currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past three months, shares of the company have rallied 7.3%, outperforming the industry’s 2.8% growth.
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