New Morningstar Analyst Report for Mighty River Power Ltd.

Mighty River is one of New Zealand's leading producers of electricity, accounting for 17% of the country's total generation. The firm enjoys a good retail presence with Mercury Energy, Mighty River's retail brand, being the largest supplier of electricity in the fastest-growing Auckland region, with an estimated market share of 48%. Mighty River currently operates in a favourable environment dominated by four electricity producers, leading to disciplined competition and reasonably good pricing power. Barring regulatory change, we expect stable industry dynamics and, as a result, believe the four major players will continue to generate favourable returns on invested capital in the long run. Given this backdrop, we think Mighty River possess strong competitive advantages and deserves a narrow economic moat rating.