Dynegy CEO Discusses Company's Future and Industry Trends

Dynegy's shares soared over 10 percent on better-than-expected first-quarter results and news that the company will consider selling its natural gas processing business. In an exclusive CNBC interview, Dynegy President and CEO Bruce Williamson discussed the company's future plans, industry trends, and the impact of the Duke Energy-Cinergy deal on the market.

Key Takeaways:

• Dynegy will consider a sale of its natural gas processing business, which has seen significant interest from private equity investors and master limited partnership companies.
• The company believes that the power generation business will be delivered from the proceeds of the gas midstream sale, if pursued, allowing it to focus on consolidation in the merchant power space.
• Williamson emphasizes the need for consolidation in the merchant power space, citing the top 10 players' 30-35 percent market share compared to 70-80 percent in refining and marketing.
• Dynegy hopes to be a player in the expected deal-making in the merchant power space, leveraging its gas midstream business and tax asset position.
• The company's first-quarter results were affected by significant charges associated with settlements of lawsuits, including shareholder lawsuits.
• Williamson believes that the worst is behind Dyngny, citing the company's bond and stock performance over the past two and a half years.

Statistics:

• Dynegy's shares rose over 10 percent on the news of the natural gas processing business sale.
• The company's bonds traded at around 20 cents on the dollar two and a half years ago but are now largely at par.
• Dynegy's stock value was less than $1 two and a half years ago but is now valued.
• The top 10 players in the merchant power space have a 30-35 percent market share, compared to 70-80 percent in refining and marketing.

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