Power Generation Results Mixed (D, XEL, NRG, EXC, RRI)

Three large electric utilities reported earnings this morning, and the results are could be better, but they could also be worse.  Dominion Resources, Inc. (NYSE:D) and NRG Energy, Inc. (NYSE:NRG) were up following their reports.

The largest of the three, Dominion reported GAAP EPS of $0.42 on revenue of $4.778 billion. Operating earnings, which excludes a $272 million impairment charge on Dominion’s oil and gas properties, came in at $0.97/share. Analysts were expecting EPS of $0.88 on revenue of $4.12 billion.

NRG Energy, Inc. (NYSE:NRG) reported EPS of $0.70, beating estimates of $0.45 handily. Revenue of $1.658 billion also beat estimates of $1.16 billion. The company noted that it had spent $5 million fighting off the takeover bid from Exelon Corp. (NYSE:EXC), and $12 million on its pending acquisition of the Texas retail business of Reliant Energy Inc. (NYSE:RRI). Excluding mark-to-market gains of $271 million, NRG’s EBITDA was $477 million for the first quarter of 2009, compared with EBITDA of $525 in the same quarter last year.

Xcel Energy Inc. (NYSE:XEL) reported GAAP EPS of $0.38 on revenues of $2.7 billion. Analysts had been expecting EPS of $0.37 on revenues of $3.09 billion. The company’s electric margins improved from $885 million in the first quarter of 2008 to $962 million for the first quarter of 2009, primarily on the basis of lower purchased fuel and power costs. Retail rate increases contributed $45 million of the $77 million difference.

Dominion provided guidance of EPS of $0.61-$0.66 for the 2009 second quarter. Analysts had been estimating EPS of $0.59 for the second quarter.

NRG guided EBITDA for fiscal year 2009 to $2.175 billion, lower than analysts’ average estimates of $2.39 billion. The company noted “the very weak market” in the last portion of the first quarter.

Xcel reaffirmed previous EPS guidance of $1.45-$1.55 for the full fiscal year. Analysts are expecting EPS of $1.51.

Dominion shares are trading up about 2% in pre-market trading this morning. NRG shares are up nearly 5%, and Xcel is unchanged.

Paul Ausick
April 30, 2009