Jefferies: NRG Plans Nuclear Expansion Decision In 3Q11

NRG Energy, Inc. NRG is planning to make a decision regarding the nuclear expansion project in the 3Q11, Jefferies reports. “Although the company has cut back 95% of its nuclear spending, we believe that, if NRG receives the loan guarantee, the high cash burn rate will return,” Jefferies writes. “NRG reaffirmed 2011 adjusted EBITDA guidance of $1,750 - $1,950 million with Reliant Energy contributing $480 - $570 million, Wholesale $1,200 - $1,300 million and Green Mountain $70 - $80 million. “NRG has announced its capital allocation plan for 2011, which includes $180 million of share repurchases. This is consistent with the company's previous stated plan to return shareholders 3% of market capitalization annually. Furthermore management is planning $279 million of debt repayments.” NRG Energy closed $19.97.