Dynegy Inc. Type Public (NYSE:DYN) Industry Energy (Electrical power industry) Founded 1984 as Natural Gas Clearinghouse Headquarters Houston, Texas, USA Area served USA (14 states) Key people Bruce A. Williamson, Chairman and CEO
Holli C. Nichols, EVP and CFO
Products Natural Gas (formerly, discontinued after 2005)
Dynegy Inc. (NYSE: DYN), based in Houston, Texas, United States, is a large owner and operator of power plants and a player in the natural gas liquids and coal business. The corporate headquarters are in Suite 5800 in the Wells Fargo Plaza at 1000 Louisiana Street in Downtown Houston.
Once known as "The Natural Gas Clearinghouse," Dynegy adopted the "New Economy" branding in 1998, after which the company structured itself in a manner similar to Enron, launching several business ventures, including an online trading platform and broadband communications services, which could be misconstrued of those of its larger rival.
The company was dubbed the "king of coal" by the National Environmental Trust.
The Natural Gas Clearinghouse became better known by its later shortened name, NGC Corporation in the early 1990s, when it became a publicly traded company listed on the New York Stock Exchange. NGC was an integrated natural gas services company, paying a cash dividend to shareholders each year since 1994. By 1996, it had grown to US$550 million in assets, and carried US$525 million in long-term debt.
Dynegy adopted the more vibrant "New Economy" branding in 1998, and it became eerily similar to Enron, launching several business ventures that closely duplicated those of its larger rival, including an online trading platform and broadband communications services.
In a merger completed February 1, 2000, Illinova Corporation became a wholly owned subsidiary of Dynegy Inc., a deal in which Chevron Corporation also took a 28% stake. Illinova, the utility holding company of Illinois Power Company, had grown to over US$415 million in assets and US$1.8 billion long-term debt. As of the late 1980s, the IP utility company had operated almost entirely from coal plants, with less than 1% fueled from oil and gas.
In 2001, the company made a white knight takeover bid for crosstown rival Enron, which was saddled with massive debts and whose stock had plummeted as investor confidence eroded. Dynegy pulled out at the last minute after Enron underwent an unexpected restatement of earnings, which was later revealed to be a massive accounting fraud. Shortly after the pull-out, Enron filed for Chapter 11 bankruptcy and sued Dynegy, unsuccessfully. One aspect of the takeover deal that did survive, however, was Dynegy's acquisition of the Northern Natural Gas Company pipeline, that was awarded to them in bankruptcy court in early 2002. NNGC was Enron's most lucrative pipeline asset and had been put up as collateral in return for Dynegy providing financing to Enron during merger talks.
Dynegy's energy trading and broadband businesses, similar to those that doomed Enron, caused Dynergy to lapse close to bankruptcy in late 2002. Amid accusations of accounting fraud and other misdoings, founder Charles Watson resigned. Dynegy was forced to sell the Northern Natural Gas pipeline to a consortium of investors led by noted billionaire Warren Buffett in return for a bailout.
Following these incidents, the company hired Bruce Williamson, a former Duke Energy executive, who began a program of cost cutting, elimination of unprofitable businesses and financial restructuring, which was successful in averting a bankruptcy filing. Williamson spent his first year leading successful bank refinancings and a capital restructuring plan that postponed major repayments of the company's debt. The company disposed of all of its businesses with the exception of its core merchant power and natural gas liquids businesses. Refocused on these core businesses, and managed with a strong emphasis on efficiency and cost control, Dynegy was able to stabilize its financial position. While Williamson had helped the company's bottom line, his embrace of dirty coal has brought the company significant negative publicity.
In the first quarter of 2008, Dynegy lost $152 million (18 cents per share). In the second quarter of 2008 the company lost $272 million which contributed to a steep decline in its stock price.
On August 13, 2010, the Blackstone Group announced plans to purchase Dynegy for $4.7 Billion dollars. As part of the deal, NRG Energy would acquire 4 natural gas plants operating in California and Maine for $1.36 Billion.
- ^ About Dynegy/ Dynegy Website.
- ^ Dynegy Leadership, Dynegy Website.
- ^ "Dynegy > History", Dynegy Website
- ^ "Contact Us." Dynegy. Retrieved on January 13, 2009.
- ^ a b Standard & Poor's Stock Guide, April 1996
- ^ CHEVRON CORP. APPLAUDS DYNEGY-ILLINOVA MERGER, Chevron Press Release Archives, Feb. 2, 2000
- ^ Standard & Poor's Stock Guide, December 1987
- ^ a b 
- ^ Ameren Corporation, About Us
- ^ Brad Hem (2007-05-17). "Targa is a youngster with a precocious streak". Houston Chronicle. http://www.chron.com/disp/story.mpl/business/4805867.html. "Dynegy was unloading the unit to narrow its focus to the power business and reduce its debt load."
- ^ "CORRECT: UPDATE: Blackstone, NRG To Carve Up Dynegy". The Wall Street Journal. August 13, 2010. http://online.wsj.com/article/BT-CO-20100813-709470.html.
- ^ "Blackstone to Buy Dynegy in Deal Valued at $4.7 Billion". The New York Times. August 13, 2010. http://www.nytimes.com/2010/08/14/business/14dynegy.html?src=busln.
- Dynegy corporate website
- "Dynegy / LS Power," SourceWatch
- "Dynegy Stock Bleeds On Bankruptcy Talk." Forbes. March 9, 2011.
- "Judge: Reduce CO2 Or Don't Build Coal Plan." The Daily Green. June 30, 2008
- "Community Fights New Coal Plant." The Daily Green. March 12, 2008
- "Dynegy's Coal Plant Plans Attacked." The Daily Green. February 21, 2008.
Wikimedia Foundation. 2010.
Look at other dictionaries:
Dynegy — Inc. Rechtsform Corporation Aktiengesellschaft (USA) ISIN US26816Q1013 Sitz … Deutsch Wikipedia
DYN — Dynegy, Inc. (Business » NYSE Symbols) * Data (Lotus 1 2 3) (Computing » File Extensions) … Abbreviations dictionary
Enron scandal — The Enron scandal was a financial scandal involving Enron Corporation Former (NYSE ticker symbol: ENE) and its accounting firm Arthur Andersen, that was revealed in late 2001. After a series of revelations involving irregular accounting… … Wikipedia
Danskammer Generating Station — Danskammer seen from Chelsea across the river … Wikipedia
Chevron Corporation — CVX redirects here. For the United States Navy future aircraft carrier program, see United States Navy CVN 21 program. Chevron Corporation Type Public Traded as … Wikipedia
Ameren — Corporation NYSE|AEE was created December 31, 1997 by the merger of Missouri s Union Electric Company (formerly NYSE: UEP) and the neighboring Central Illinois Public Service Company (CIPSCO Inc. holding, formerly NYSE: CIP).… … Wikipedia
Enron — For the play, see ENRON (play). Enron Corporation Enron logo, designed by Paul Rand Former type Public company Industry Energy Fate … Wikipedia
Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… … Universalium
Timeline of the Enron scandal — Timeline of the Enron scandal:1985Kenneth Lay seizes control of Omaha based Internorth. Internorth was a much larger, diversified energy company in Omaha, NE which had bought Lay s company, Houston Natural Gas. Through questionable means, Lay was … Wikipedia
Morro Bay, California — City of Morro Bay City Skyline of Morro Bay, with Morro Rock in the center … Wikipedia