Shares of NRG Energy (NRG) fell on Wednesday after the energy provider pulled its full-year guidance and said it expected to incur a loss of $750 million stemming from the extreme weather in Texas.
Shares of the Princeton, N.J., company recently fell 16% to $36.70. That was its biggest drop this year and the stock was the worst performer among its peers, Bloomberg reported.
NRG operates power plants and provides retail services to homes and businesses in the state. It previously had projected full-year earnings of as much as $2.6 billion.
"Based on the new information available to us today, we are unable to provide financial guidance due to the unprecedented and unpredictable market outcomes resulting from winter storm Uri," President and Chief Executive Mauricio Gutierrez said in a statement.
“Our priority today is both to continue helping our communities recover and working with all necessary stakeholders to improve the resilience of the energy system,” Gutierrez added.
Guggenheim downgraded the stock to neutral, calling the Electric Reliability Council of Texas market “broken.” Ercot manages the grid in Texas.
NRG lowered its cash and cash equivalents estimate to $764 million as of March 15, down from $1.92 billion on Feb. 26.
The company said its total credit facility availability is about $2.48 billion as of March 15, up from $1.87 billion on Feb. 26
The storm prompted Griddy, one of the state's power retailers, to file under the bankruptcy laws. Texas's attorney general has sued Griddy and said that 24,000 customers who owe some $29 million of energy bills to Griddy will see those bills forgiven.
The Texas storms have prompted concern about how extreme climate conditions might hammer the nation's power grid.