NEW YORK (TheStreet) -- Shares of NextEra Energy (NEE - Get Report) are rising 0.30% to $127.80 this morning as the electric power company announced it would purchase the bankrupt electric utility company Energy Future Holdings Corp. as well its 80% stake in Oncor Electric Delivery Co. in a deal valued at $18.4 billion.
The deal gives NextEra access to Oncor, operator of the largest network of power lines in Texas, a company NextEra attempted to purchase in 2015, Reuters reports.
The agreement to buy Energy Future will be filed in Delaware bankruptcy court as part of the restructuring of the company, NextEra said. Energy Future filed for Chapter 11 in 2014 after it was weakened by lower electricity prices and couldn't meet its debt obligations of $42 billion. The bankruptcy is one of the largest ever in the U.S., according to Reuters.
Oncor will become the power delivery business of NextEra, along with Florida Light & Power Co., once the deal closes, NextEra added.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate NEXTERA ENERGY INC as a Buy with a ratings score of A+. 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 expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: NEE