00:00 Spokesman a
Well, NRG Energy at the top of the ranking is the best performer in the S&P 500 so far this year. The Texas Energy Giant up to about 73% so far, and the company has recently announced a $ 12 billion deal to acquire LS Power electricity assets. Here with more about this game of the Data Center, let’s get to Jeffrese Director Julian Dumulian Smith, who is joining us now to discuss. Julian, and it’s ridiculous that we just talked about Meta, because obviously one of the things that used to drive NRG and many other gaming games is that thirst for nourishing data centers. But the energy overtook them this year. What do you think is the great catalyst or catalysts for this superiority?
02:06 Julian Dumulin Smith
Yes, um and thanks a lot for the time. Look, I think in summary, if I had to put it briefly, you have three or four factors, but it really is the data center factor that leads to the superiority here. Look, I use NRG as a turtle vs. rabbit, right? I want to say that you have many other energy companies, utility companies that worked very well 2024, a lot of fashion. This company is very first in the formulation of its plans with regard to data centers. It really started to bear some fruits just this year. So when you think about the UM expectations and update, which was announced a little more earlier this week, it was not just the acquisition of LS Power. It was also a number of different data points on how the company is positioned around the data centers, with the more voltage outlines the main stages of the year. So, I think it was a half reaction to an accrective transaction, but just as a very favorable update to some of the activities of the Data Center they want to do in partnership with new construction with GE Renova to build several new power plants in the decade.
04:28 Speaker b
Can I just ask you, the move in this stock is remarkable. I mean, Palaantir like, right? It is almost 75%this year. But I know you when you talk to your customers, you say that this is still a purchase here. So, you would obviously argue that the assessment is still very attractive.
05:06 Julian Dumulin Smith
Yes, I mean, look, use the turtle against the hair. People wanted to go, you know, much more financially and operated last year. This company did not attract so much attention to people. They were perceived as a company for powerless force. They had some diversification in other segments, so it was not really the stock of the data center that many people had taken until the last few months. I mean, I remember when we upgraded stocks in the fall, people thought we were a little about why would you get involved in this thing for the construction of the Data Center? Still, they have some of the most recently CODs and services for part of the construction of gas plants there, uh, compared to their IPP peers. And then B, look, I think just when you look at the grades and evaluate revisions, this company probably has some of the most tangible potential, especially with some of these other energy companies, right? If you want exposure to this sector, you know, they just said they were 14 plus a percent EPS. This guide will be directed higher. Our numbers have a 16% plus EPS growth over the decade. You don’t understand this with many other shares, let alone this assessment. I want to say, you know, until the last few days the shares have been at a significant discount over this type of growth rate. Moreover, street numbers are obviously too low for a while. And I still think, you know, even today, when people internalize this transaction, the numbers will continue to focus higher. Guide, I think as soon as 2Q can talk about reviewing its guidelines for a full year. Immediately after 3q, we could talk about a review of long -term guidance even more. They left some clues at the last call. Look, I don’t think it’s just a pony trick like data centers. Moreover, you have a noise stock from different data points, which will materialize almost with a specific quarterly cada throughout the year.
08:12 Spokesman a
Julian, I’m curious when it comes to data centers. We had something like deals in deals, it is not yet a flood of deals between some of these energy operators and major technologies. And of course, the highest profile, Microsoft and the plan for a restarted reactor for the island of three miles. So, do we expect such species what they call the front of the meter transactions, the unregulated UM deals with a company like NRG and Big Technology? Like what we have been waiting for more than those who come, right?
09:20 Julian Dumulin Smith
Yes, no, absolutely. I mean, I think we’re still. I want to say that we are waiting for both through energy companies and communal companies this year to see some of these data points are prolonged. Oh, this summer will be a decisive moment. Look, we saw a stable murder from them. It may not be in the right permutation as you, but I think the street is very desirable as it may not be as concentrated with selected counterparties as the street is seen. We have seen a little more diversification more recently, perhaps more in some of the regulated markets than even with energy companies. But this company in particular, you know, I think the expectations were very low to very late. And this is something interesting for this company. It was something like the dark horse, if you will. And so I think there is such a sharp move in the stock. It’s kind of catching up. That’s why I don’t turn my head and I’m like, look, don’t you know, don’t be too nervous here. This only follows the leader of other companies, which clearly reflect even more propormations the expectations of the data center than that stock after its last implementation. This is important to keep in mind here.