Dynegy (NYSE:DYN) was bankrupt a year ago yet faces huge environmental regulations in the state of Illinois on the heels of the company's attempt to acquire coal assets from Ameren (NYSE:AEE) in that state. Shares of Dynegy have largely been out of favor with investors who have preferred bidding up more well-known natural gas names such as EOG Resources (NYSE:EOG), Devon Energy (NYSE:DVN), and Apache (NYSE:APA). However, any approval by the Illinois Pollution Control Board to give Dynegy five years to meet environmental standards for coal-fired power plants in Illinois could create a bullish momentum play for those investing in energy, especially if natural gas prices move upward this winter, considering the company's trading pattern is correlated with the direction of natural gas futures.
John Licata has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and EOG Resources. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.