Just a note to point out that Spark Energy (SPKE) which retails energy throughout the country should be watched closely.
SPKE has a high coupon (8.75%) fixed to floating preferred outstanding (SPKEP) which is now trading at $25.50–right near the highest level of the last year.
SPKE is not an energy generator–just a retailer. The company purchases and resells electricity and natural gas–but mainly electricity.
They have stated that they ‘hedge’ energy purchases for normal weather conditions–obviously not what we have had lately. The potential problem I see is that they likely had to buy energy on the ‘spot’ market during the last week and it is an unknown as to whether they were adequately hedged. This latest cold snap has the potential to be disastrous to the company.
Obviously I have no knowledge of the company’s hedging–but if I was a holder I would lighten up here at the most recent price and await further news–better safe than sorry.