Through TheFLY's Eyes: Dynegy Inc.
from Theflyonthewall.com







Bruce Williamson: Wants to Play Role of Industry Consolidator

Dynegy (DYN) is another left-for-dead bubble stock from the 1990s that has survived and looks poised to grow again. The company is now run by Bruce Williamson who came to Dynegy from Duke Energy. Williamson has taken a methodical approach by divesting businesses, ending bad tolling arrangements and focusing the company on the merchant power business.

* Much of the dirty work is behind them and growth is now the focus.
* New contacts with Lyondell and its Ameren assets will kick in in 2007, providing the company with good cash flow.
* The forward curve will also allow the company to sell production into 2007 which will allow it to hit its cash flow targets.

With the ability to see free cash flow on the horizon, Dynegy can now focus on growth and consolidating the industry. It appears Williamson has a very clear vision of where he wants to go. He emphasized that the focus has changed from pleasing fixed income investors to start pleasing shareholders. From this Fly’s perspective, this is a company investors have to look at again.