Power company Dynegy is scheduled to report third-quarter earnings on Thursday. The following is a summary of key developments and analysis related to the period.

OVERVIEW: Houston-based Dynegy has announced plans to sell about a quarter of its generation _ eight plants plus another under development _ to former development partner LS Power Associates for about $1 billion in cash and $500 million in stock as the company attempts to bolster its finances and reduce debt.

Bruce Williamson, Dynegy's chairman, president and CEO, has said the deal will help the company reduce its near-term debt maturities and simplify the company's structure. The company has total debt of $5.1 billion.

Under the deal, LS Power's remaining Class B shares of Dynegy will be converted into Class A shares representing about 15 percent of Dynegy. The Class B shares will be eliminated. The deal eliminates about 30 percent of Dynegy's shares.

LS Power acquired its stake in Dynegy in 2006 when Dynegy spent $4.1 billion to buy LS Power's generating capacity.

Dynegy has strong operations in agribusiness and food processing, meaning it has avoided some of the declines in electricity sales seen by other power generators that serve the auto and steel industries in the Midwest and elsewhere.

Dynegy operates plants in 12 states in the Midwest, the Northeast and the West Coast.

BY THE NUMBERS: Analysts surveyed by Thomson Reuters expect Dynegy to post profit of 3 cents a share on revenue of $878 million. In the year ago quarter, Dynegy made $605 million, or 72 cents per share, driven by a $542 million gain that reflect an updated estimate of what investments are worth based on current market values.

ANALYST TAKE: Lasan Lohong of RBC Capital Markets believes the deal with LS Power is meant to raise money to make a bid on another company. He said he looks for Dynegy to make a move once it is confident that it can refinance debt coming due in 2011 and 2012. Such a move could come as early next year. He has a "Sector Perform" rating on the company, meaning returns are expected to be in line with the sector average over the next year.

WHAT'S AHEAD: Dynegy's second-quarter loss included a $405 million charge to write down the value of four plants, two of which will be sold to LS Power. Dynegy said it expects to record additional charges on the sale and a loss on the value of assets that currently are estimated at nearly $500 million. The company also says it will slash expenses by $400 million to $450 million over the next four years.

STOCK PERFORMANCE: Dynegy shares moved to $2.55 from $2.32 during the quarter, but have declined since the quarter ended to below $2.