Dynergy Cuts Costs In 2Q

Dynegy, Inc. (NYSE: DYN) reported 2Q adjusted EBITDA of $124M beating Pritchard's estimate of $86M, while adjusted EPS was $0.31 vs. the $0.51 estimate, assuming a normalized tax rate of 35%, according to Pritchard.

Pritchard writes that the adjusted EBITDA was increased due to a $40M in option premiums sold for generation 2011/2012, and so far these earnings have been in line with 2009 and management is expecting to see not much additional benefit for the second half of this year.

Pritchard maintains its neutral rating and price target of $7.

Dynergy, Inc. closed Friday at $3.59.