Why NRG Energy Stock Rallied 18% at the Open Today
Shares of U.S. energy company NRG Energy (NYSE: NRG) rose a dramatic 18% in the first half hour of trading on March 1. The big news was earnings, but the story is a little bigger than it seems.
NRG Energy's revenue for the full year 2020 came in at $9.1 billion with earnings of $2.07 per share. Both numbers were lower year over year, but that wasn't the main driver of investor enthusiasm in early trading this morning. The bigger story is that NRG Energy has material exposure to Texas. That state was hit particularly hard by winter weather in mid-Februrary, leaving residents without electricity and, thus, also without heat and hot water. It was a mess and the energy market went a little haywire, as natural gas prices skyrocketed because of a complex series of unfortunate events.
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Source Fool.com