NEW YORK (TheStreet) -- NextEra Energy (NEE) - Get Report stock is advancing by 0.50% to $99.37 in early-morning trading Friday, as it will sell two of its power plants to a unit of Energy Future Holdings in a deal valued around $1.59 billion.
NextEra Energy Resources will sell its ownership interest in its Forney and Lamar natural-gas-fired power generation plants.
Energy Future Holdings has received approval from the bankruptcy court for the assets sale and the funding of it through its debtor-in-possession credit facility.
The deal is expected to close in the fiscal 2016 first quarter.
"This transaction enables us to further optimize our power generation assets and is consistent with our strategy of reducing our merchant exposure while recycling capital into our growing long-term contracted asset portfolio," NextEra Energy CEO Armando Pimentel said in a statement.
NextEra Energy is an electric power company based in Juno Beach, FL.
Separately, TheStreet Ratings team rates NEXTERA ENERGY INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate NEXTERA ENERGY INC (NEE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NEE's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- NEXTERA ENERGY INC has improved earnings per share by 28.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NEXTERA ENERGY INC increased its bottom line by earning $5.60 versus $3.93 in the prior year. This year, the market expects an improvement in earnings ($5.65 versus $5.60).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Electric Utilities industry average. The net income increased by 33.2% when compared to the same quarter one year prior, rising from $660.00 million to $879.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market, NEXTERA ENERGY INC's return on equity exceeds that of both the industry average and the S&P 500.
- 46.14% is the gross profit margin for NEXTERA ENERGY INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.74% is above that of the industry average.
- You can view the full analysis from the report here: NEE
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.