Power company Dynegy (a short version of "dynamic energy") has lost some of its dynamism in recent years, but is looking to get some of that energy back as a reorganized company. Dynegy provides wholesale power, capacity, and other services to a broad range of customers (utilities, cooperatives, municipalities and other energy operations) in eight states in the Midwest, the Northeast, and on the West Coast. The company's power generation portfolio consists 35 power plants in eight states totaling about 26,000 MW of generating capacity. To expand in regulated power markets, in 2016 Dynegy teamed up with Energy Capital Partners to buy Engie's US power plants worth $3.3 billion.
The company provides wholesale power, capacity and ancillary services to utilities, cooperatives, municipalities and other energy companies in eight US states in the Midwest, the Northeast and the West Coast.
The company operates through three segments: Gas, Coal, and IPH.
The Gas segment (49% of the Dynegy's total revenues in 2015) includes substantially all of the company's natural gas-fired power generation facilities.
The Coal segment (30%) includes certain coal-fired power generation facilities and retail business.
The IPH segment (21%) includes Genco, and Illinois Power Resources Generating, LLC, which also own, directly and indirectly, certain coal-fired power generation facilities.
Sales and Marketing
Customers include RTOs and ISOs, integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial institutions, other power generators, and commercial end-users.
In 2015 the company's main customer includes PJM and MISO, contributed approximately 28% and 22% of the total revenues in 2015, respectively.
The company provides retail electricity to about 931,000 residential customers and about 41,000 commercial, industrial, and municipal customers.
The company’s net revenues have been increasing in the last three years (2013-15). In 2015 Dynegy’s net revenues increased by 55%, primarily due to an increase in gas segment sales.
The gas segment revenue increase was driven by $993 million in revenues from newly acquired plants, partially offset by $144 million in lower revenues from legacy plants.
After experiencing the net loss in fiscal 2013 & 2014, the company posted a net income in fiscal 2015. Its net income of $50.00 million (compared to net loss of $273.00 million in fiscal 2014), was mainly due to higher net revenues and an increase in Other Income and Expense, Net, related to the change in the fair value of common stock warrants.
In 2015 the company’s operating cash inflow decreased by 42% due to changes in working capital.
The company continues to focus on maintaining a diverse liquidity program to support its ongoing operations and commercial activities.
Mergers and Acquisitions
In 2016 Dynegy agreed to acquire Energy Capital Partners’ 35% interest in the Atlas joint venture which the two companies formed in February 2016 to purchase Engie’s 9,058 MW US fossil-fueled power plant portfolio. Upon completion of the Engie portfolio acquisition, the company will own 100% of the acquired business.