SOURCE: IIR Energy; Ansergy

IIR Energy; Ansergy

IIR Energy; Ansergy

September 14, 2011 06:20 ET

IIR Energy, Ansergy Team Up to Predict Per-Share Earnings From Electric Companies' Operational and Outage Data

SUGAR LAND, TX--(Marketwire - Sep 14, 2011) - Researched by Industrial Info Resources (Sugar Land, Texas) -- IIR Energy (Sugar Land, Texas) and Ansergy Incorporated (Bellevue, Washington) are providing institutional investors, equity analysts, energy traders and investment bankers per-share earnings guidance for power companies based on operational data like weather, fuel costs, heat rates, market prices and plant outages. Click here to hear a special webcast about the IIR Energy-Ansergy partnership.

"Investors in electric utility stocks -- both merchant generators and investor-owned utilities -- have long suffered from a dearth of timely operational data," said Mike Griswold, chief executive of Ansergy. "Electricity is the world's most volatile commodity. Now, for the first time, institutional investors and financial players will be able to see, in real-time, how a company's operational performance affects its stock price."

"Outages are one of the three primary reasons companies in the electric sector, including electric utilities and merchant generators, have 'earnings surprises,'" Griswold continued. "Access to IIR's industry-best generator-outage data gives our clients the same high-quality operational information enjoyed by wholesale traders and utilities."

Griswold, with 20 years of experience in energy trading, employs a proprietary production-cost dispatch model to determine energy revenue and free cash flow using energy generation data, fuel use, fuel cost, market prices and outage data as inputs. "We run our models each day using actual market prices and conditions, including planned and unplanned outages. Our universe of companies includes every investor-owned utility in the U.S. and all the publicly traded merchant generators," he said.

IIR Energy's plant outage information provides a critical piece to the utility earnings puzzle, noted Paul Copello, president of IIR Energy. "The unexpected loss of a generator in a capacity- or transmission-constrained area can drive electricity prices sharply upward," he said. "Our joint venture with Ansergy will fill that market need by marrying our leading wholesale market intelligence with Ansergy's operational earnings per share forecast software."

The joint venture provides critical wholesale electric market intelligence to equity analysts, investment bankers, energy traders and institutional investors, Copello said. "Our joint venture will provide financial market participants with real-time insight into how an electric company's earnings per share will be affected by its operating performance and market conditions."

"Ansergy clients will typically know better how a utility is performing within the quarter than the executives working for the utility or merchant generator," Griswold predicted. "Our collaborative information platform helps quantify the financial impact of power outages. Investors no longer have to wait for the quarterly earnings conference call to see how well their investments performed."

The alliance with Ansergy is the most recent of a series of alliances IIR Energy has announced in recent months, all launched with a goal of increasing transparency and market efficiency in energy trading markets. The companies are also developing a similar earnings prediction model for upstream and midstream oil & gas companies.

About Ansergy Incorporated
Ansergy was formed in 2011 by Mike Griswold, who has more than two decades of experience in wholesale electric markets. For 10 years, he worked as a financial analyst, wholesale power manager and power trader at Avista Corporation, a Spokane, Washington-based utility. He was the lead power trader at Hafslund (1999-2001) and the founder of PowerLytix (2001-08), before becoming a director of commodities trading at Barclays Capital (2008-11). He brings a unique combination of financial analytics and hands-on experience as an energy trader and manager of an energy-trading book to his work at Ansergy.

About IIR Energy
A unit of Industrial Info Resources, IIR Energy is the leading provider of supply-side market intelligence for the energy market, including Electric Power Generation; Oil & Gas Storage, Transmission and Production; Alternative Fuels such as biodiesel, ethanol, and coal gasification; and the Petroleum Refining industries. IIR Energy provides time-sensitive, critical market information that enables asset owners, developers, regulators, as well as financial and physical participants to enhance their trading strategies and minimize market risk.

Contact Information

  • Contact:
    Joe Govreau
    713-783-5147