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Independent power producer
NRG Energy(NRG - Get Report) owns 25.5 GW of generation capacity spread across three countries, making it one of the larger names in the power business. With Exelon, it's a double-down on the power business for Boone Pickens and BP Capital. The hedge fund added 305,000 shares of NRG to its portfolio in the most recent quarter, building up a $4.8 million position in the stock.
Ironically, NRG fended off a hostile takeover attempt by Exelon back in 2008. So even though the two companies never merged, BP Capital bought both at the same time anyway.
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NRG isn't just a big power producer outright -- it's also a major name in alternative energy generation. The company owns three major solar generation facilities, four wind farms, and a number of smaller solar generation assets, positioning that makes NRG one of the league leaders in green power. While traditional generation still makes up the majority of NRG's generation, the firm is spending considerable capital on green power, and it's getting tax advantages and rate contracts that effectively pay for those investments instantly.
NRG is also a major power retailer, serving more than 2 million customers directly with their power needs. While that retail exposure takes some of the cyclical pressures off of NRG's income statement, the firm still doesn't benefit from the consistency of a more regulated name. And the firm's lack of a dividend payout is proof of that.