NRG Energy (NYSE:NRG)(NRG - $35.12 – NYSE) is an independent producer of electricity with a portfolio of 44 Gigawatts (GW) of conventional generation as well as a seller of retail energy in deregulated markets. The stock underperformed in the quarter despite reporting solid results that exceeded analyst estimates across the board. The stock was hit on concerns about power prices in the Texas market which is being partially fueled by NRG restarting its Gregory Plant. Management continues to express confidence in the attractiveness of the Texas market and the near-term fundamental outlook by reaffirming full year guidance. The company continues to be aggressive buying back stock completing $500 million of the $1 billion share repurchase program announced on the 4th quarter call.
From Keeley Asset Management Corp (Trades, Portfolio)'s Keeley Mid Cap Fund second-quarter 2019 shareholder letter.
