NRG Energy, Inc. (NYSE: NRG) today increases its 2024 guidance
as follows:
- Adjusted EBITDA guidance increased to $3,525 million - $3,675
million from $3,300 - $3,550 million, representing a midpoint
increase of $175 million
- Free Cash Flow before Growth (FCFbG) guidance increased to
$1,975 million - $2,125 million from $1,825 - $2,075 million,
representing a midpoint increase of $100 million
The revised guidance reflects the Company’s robust financial and
operational execution throughout the year.
“It’s an exciting time for our company,” said Larry Coben, NRG
Chair, President and Chief Executive Officer. “We are pleased to
raise our financial guidance for the year, reflecting the strength
of our integrated platform and the best-in-class execution of our
leading consumer strategy. We are confident in our ability to drive
growth and capitalize on the emerging opportunities in our
markets.”
2024 Adjusted EBITDA, Cash Provided by
Operating Activities, and FCFbG Guidancea
2024
2024
(In millions)
Original Guidance
Revised Guidance
Adjusted EBITDA
$3,300 - $3,550
$3,525 - $3,675
Cash Provided by Operating Activities
$1,825 - $2,075
$1,975 - $2,125
FCFbG
$1,825 - $2,075
$1,975 - $2,125
a. Adjusted EBITDA and FCFbG are non-GAAP
financial measures; see Appendix Table A-1 for GAAP Reconciliation
from Net Income to FCFbG. Adjusted EBITDA excludes fair value
adjustments related to derivatives. The Company is unable to
provide guidance for Net Income due to the impact of such fair
value adjustments related to derivatives in a given year. Cash
Provided by Operating Activities does not include changes in
collateral deposits in support of risk management activities which
are primarily associated with fair value adjustments related to
derivatives.
Third Quarter 2024 Financial Results
Conference Call
The Company plans to report its Third Quarter 2024 financial
results on Friday, November 8, 2024. Management will present
quarterly results and initiate 2025 financial guidance during a
conference call and webcast at 9:00 a.m. EST (8:00 a.m. CST).
The Company will issue a press release regarding the Third
Quarter 2024 financial results prior to the conference call, and it
will be available on the NRG website at www.nrg.com.
The live webcast and presentation materials can be accessed at
investors.nrg.com by clicking the “presentations and webcasts”
link. A replay of the webcast will be available on the site for
those unable to listen in real-time.
About NRG
NRG Energy, Inc. is a leading energy and home services company
powered by people and our passion for a smarter, cleaner, and more
connected future. A Fortune 500 company operating in the United
States and Canada, NRG delivers innovative solutions that help
people, organizations, and businesses achieve their goals while
also advocating for competitive energy markets and customer choice.
More information is available at www.nrg.com. Connect with NRG on
Facebook, Instagram, LinkedIn and X.
Forward-Looking Statements
In addition to historical information, the information presented
in this press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Exchange Act. These statements involve
estimates, expectations, projections, goals, assumptions, known and
unknown risks and uncertainties and can typically be identified by
terminology such as “may,” “should,” “could,” “objective,”
“projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,”
“intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,”
“predict,” “target,” “potential” or “continue” or the negative of
these terms or other comparable terminology. Such forward-looking
statements include, but are not limited to, statements about the
Company’s future revenues, income, indebtedness, capital structure,
plans, expectations, objectives, projected financial performance
and/or business results and other future events, and views of
economic and market conditions.
Although NRG believes that its expectations are reasonable, it
can give no assurance that these expectations will prove to be
correct, and actual results may vary materially. Factors that could
cause actual results to differ materially from those contemplated
herein include, among others, general economic conditions, hazards
customary in the power industry, weather conditions and extreme
weather events, competition in wholesale power, gas and smart home
markets, the volatility of energy and fuel prices, failure of
customers or counterparties to perform under contracts, changes in
the wholesale power and gas markets, changes in government or
market regulations, the condition of capital markets generally and
NRG’s ability to access capital markets, NRG’s ability to execute
its market operations strategy, risks related to data privacy,
cyberterrorism and inadequate cybersecurity, the loss of data,
unanticipated outages at NRG’s generation facilities, NRG’s ability
to achieve its net debt targets, adverse results in current and
future litigation, complaints, product liability claims and/or
adverse publicity, failure to identify, execute or successfully
implement acquisitions or asset sales, risks of the smart home and
security industry, including risks of and publicity surrounding the
sales, subscriber origination and retention process, the impact of
changes in consumer spending patterns, consumer preferences,
geopolitical tensions, demographic trends, supply chain
disruptions, NRG’s ability to implement value enhancing
improvements to plant operations and company-wide processes, NRG’s
ability to achieve or maintain investment grade credit metrics,
NRG’s ability to proceed with projects under development or the
inability to complete the construction of such projects on schedule
or within budget, the inability to maintain or create successful
partnering relationships, NRG’s ability to operate its business
efficiently, NRG’s ability to retain retail customers, the ability
to successfully integrate businesses of acquired companies,
including Direct Energy and Vivint Smart Home, NRG’s ability to
realize anticipated benefits of transactions (including expected
cost savings and other synergies) or the risk that anticipated
benefits may take longer to realize than expected, and NRG’s
ability to execute its capital allocation plan. Achieving
investment grade credit metrics is not an indication of or
guarantee that the Company will receive investment grade credit
ratings. Debt and share repurchases may be made from time to time
subject to market conditions and other factors, including as
permitted by United States securities laws. Furthermore, any common
stock dividend is subject to available capital and market
conditions.
NRG undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. The Adjusted
EBITDA, cash provided by operating activities and Free Cash Flow
before Growth guidance are estimates as of September 25, 2024.
These estimates are based on assumptions NRG believed to be
reasonable as of that date. NRG disclaims any current intention to
update such guidance, except as required by law. The foregoing
review of factors that could cause NRG’s actual results to differ
materially from those contemplated in the forward-looking
statements included in this press release should be considered in
connection with information regarding risks and uncertainties that
may affect NRG's future results included in NRG's filings with the
Securities and Exchange Commission at www.sec.gov. For a more
detailed discussion of these factors, see the information under the
captions “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in NRG’s most
recent Annual Report on Form 10-K, and in subsequent SEC filings.
NRG’s forward-looking statements speak only as of the date of this
communication or as of the date they are made.
Appendix Table A-1: 2024 Guidance Reconciliations
The following table summarizes the calculation of Adjusted
EBITDA providing reconciliation to Net Income, and the calculation
of FCFbG providing a reconciliation to Cash provided by operating
activities:
(In millions)
2024 Original Guidance
2024 Revised Guidance
Net Income1
$
750 - 1,000
$
925 - 1,075
Interest expense, net
640
640
Income tax
345
395
Depreciation and amortization
1,075
1,075
ARO expense
25
25
Amortization of customer acquisition
costs2
215
215
Stock-based compensation3
100
100
Acquisition and divestiture integration
and transaction costs
55
55
Other costs4
95
95
Adjusted EBITDA
3,300 - 3,550
3,525 - 3,675
Interest payments, net
(600)
(600)
Income tax
(160)
(160)
Net deferred revenue5
190
130
Amortization of customer fulfillment
costs6
130
130
Capitalized contract costs7
(830)
(830)
Working capital / other assets and
liabilities8
(205)
(220)
Cash provided by operating
activities9
1,825 - 2,075
1,975 - 2,125
Acquisition and other costs8
124
124
Adjusted cash provided by operating
activities
1,949 - 2,199
2,099 - 2,249
Maintenance capital expenditures,
net10
(240) - (260)
(240) - (260)
Environmental capital expenditures
(20) - (30)
(20) - (30)
Cost of acquisition
145
145
Free Cash Flow before Growth
Investments (FCFbG)
$
1,825 - 2,075
$
1,975 - 2,125
1 For purposes of guidance, fair value
adjustments related to derivatives are assumed to be zero
2 Amortization of customer acquisition
costs is the income statement recognition of capitalized costs
related to commissions and other costs related to securing new
customers. NRG amortization of customer acquisition costs,
excluding Vivint, is expected to be $135 million and Vivint is
expected to be $80 million
3 NRG stock-based compensation, excluding
Vivint, is expected to be $40 million and Vivint is expected to be
$60 million
4 Includes adjustments for sale of assets,
adjustments to reflect NRG share of Adjusted EBITDA in
unconsolidated affiliates, deactivation costs, other nonrecurring
expenses, and does not include the adjustment for Loss on debt
extinguishment which was $260 million as of August 31, 2024
5 The cash impact of Net deferred revenue
is the net change in the balance sheet from capitalizing proceeds
received from installation and equipment and then recognizing those
proceeds as revenue on a straight-line basis over the expected
period of benefit
6 Amortization of customer fulfillment
costs, which are included in the calculation of Adjusted EBITDA,
are the income statement recognition of capitalized contract costs
related to the sale and installation of equipment necessary for a
customer to receive the Vivint Smart Home service
7 Gross capitalized contract costs
represent the costs directly related and incremental to the
origination of new contracts, modification of existing contracts or
to the fulfillment of the related subscriber contracts; these costs
include installed products, commissions, other compensation, and
cost of installation of new or upgraded customer contracts; these
costs are amortized on a straight-line basis over the expected
period of benefit
8 Working capital / other assets and
liabilities include payments for Acquisition and divestiture
integration and transaction costs, which is adjusted in Acquisition
and other costs
9 Excludes fair value adjustments related
to derivatives and changes in collateral deposits in support of
risk management activities
10 Includes W.A. Parish Unit 8 expected
insurance recoveries related to property, plant and equipment
EBITDA and Adjusted EBITDA are non-GAAP financial measures.
These measurements are not recognized in accordance with GAAP and
should not be viewed as an alternative to GAAP measures of
performance. The presentation of Adjusted EBITDA should not be
construed as an inference that NRG’s future results will be
unaffected by unusual or non-recurring items.
EBITDA represents net income before interest expense (including
loss on debt extinguishment), income taxes, depreciation and
amortization, asset retirement obligation expenses, contract
amortization consisting of amortization of power and fuel contracts
and amortization of emission allowances. EBITDA is presented
because NRG considers it an important supplemental measure of its
performance and believes debt-holders frequently use EBITDA to
analyze operating performance and debt service capacity. EBITDA has
limitations as an analytical tool, and you should not consider it
in isolation, or as a substitute for analysis of our operating
results as reported under GAAP. Some of these limitations are:
- EBITDA does not reflect cash expenditures, or future
requirements for capital expenditures, or contractual
commitments;
- EBITDA does not reflect changes in, or cash requirements for,
working capital needs;
- EBITDA does not reflect the significant interest expense, or
the cash requirements necessary to service interest or principal
payments, on debt or cash income tax payments;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and EBITDA does not reflect any cash
requirements for such replacements; and
- Other companies in this industry may calculate EBITDA
differently than NRG does, limiting its usefulness as a comparative
measure.
Because of these limitations, EBITDA should not be considered as
a measure of discretionary cash available to use to invest in the
growth of NRG’s business. NRG compensates for these limitations by
relying primarily on our GAAP results and using EBITDA and Adjusted
EBITDA only supplementally. See the statements of cash flow
included in the financial statements that are a part of this news
release.
Adjusted EBITDA is presented as a further supplemental measure
of operating performance. As NRG defines it, Adjusted EBITDA
represents EBITDA excluding the impact of stock-based compensation,
amortization of customer acquisition costs (primarily amortized
commissions), impairment losses, deactivation costs, gains or
losses on sales, dispositions or retirements of assets, any
mark-to-market gains or losses from forward position of economic
hedges, adjustments to exclude the Adjusted EBITDA related to the
non-controlling interest, gains or losses on the repurchase,
modification or extinguishment of debt, the impact of restructuring
and any extraordinary, unusual or non-recurring items, plus
adjustments to reflect the Adjusted EBITDA from our unconsolidated
investments. The reader is encouraged to evaluate each adjustment
and the reasons NRG considers it appropriate for supplemental
analysis. As an analytical tool, Adjusted EBITDA is subject to all
of the limitations applicable to EBITDA. In addition, in evaluating
Adjusted EBITDA, the reader should be aware that in the future NRG
may incur expenses similar to the adjustments in this news
release.
Management believes Adjusted EBITDA is useful to investors and
other users of NRG's financial statements in evaluating its
operating performance because it provides an additional tool to
compare business performance across companies and across periods
and adjusts for items that we do not consider indicative of NRG’s
future operating performance. This measure is widely used by
debt-holders to analyze operating performance and debt service
capacity and by equity investors to measure our operating
performance without regard to items such as interest expense,
taxes, depreciation and amortization, which can vary substantially
from company to company depending upon accounting methods and book
value of assets, capital structure and the method by which assets
were acquired. Management uses Adjusted EBITDA as a measure of
operating performance to assist in comparing performance from
period to period on a consistent basis and to readily view
operating trends, as a measure for planning and forecasting overall
expectations, and for evaluating actual results against such
expectations, and in communications with NRG's Board of Directors,
shareholders, creditors, analysts and investors concerning its
financial performance.
Adjusted Cash provided by operating activities is a non-GAAP
measure NRG provides to show Cash provided/(used) by operating
activities with the reclassification of net payments of derivative
contracts acquired in business combinations from financing to
operating cash flow, as well as the add back of merger,
integration, related restructuring costs, changes in the nuclear
decommissioning trust liability, and the impact of extraordinary,
unusual or non-recurring items. The Company provides the reader
with this alternative view of Cash provided/(used) by operating
activities because the cash settlement of these derivative
contracts materially impact operating revenues and cost of sales,
while GAAP requires NRG to treat them as if there was a financing
activity associated with the contracts as of the acquisition dates.
The Company adds back merger, integration related restructuring
costs as they are one time and unique in nature and do not reflect
ongoing Cash Flows from Operating Activities and they are fully
disclosed to investors. The company excludes changes in the nuclear
decommissioning trust liability as these amounts are offset by
changes in the decommissioning fund shown in Cash Flows from
Investing Activities.
Free Cash Flow before Growth Investments is Adjusted Cash
provided by operating activities less maintenance and environmental
capital expenditures, net of funding and insurance recoveries
related to property, plant and equipment, dividends from preferred
instruments treated as debt by ratings agencies, and distributions
to non-controlling interests and is used by NRG predominantly as a
forecasting tool to estimate cash available for debt reduction and
other capital allocation alternatives. The reader is encouraged to
evaluate each of these adjustments and the reasons NRG considers
them appropriate for supplemental analysis. Because we have
mandatory debt service requirements (and other non-discretionary
expenditures) investors should not rely on Free Cash Flow before
Growth Investments as a measure of cash available for discretionary
expenditures.
Free Cash Flow before Growth Investments is utilized by
Management in making decisions regarding the allocation of capital.
Free Cash Flow before Growth Investments is presented because the
Company believes it is a useful tool for assessing the financial
performance in the current period. In addition, NRG’s peers
evaluate cash available for allocation in a similar manner and
accordingly, it is a meaningful indicator for investors to
benchmark NRG's performance against its peers. Free Cash Flow
before Growth Investments is a performance measure and is not
intended to represent Net Income/(Loss), Cash provided/(used) by
operating activities (the most directly comparable U.S. GAAP
measure), or liquidity and is not necessarily comparable to
similarly titled measures reported by other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240924538649/en/
Media Chevalier Gray 832.763.3454
Investors Brendan Mulhern 609.524.4767
NRG Energy (NYSE:NRG)
Gráfica de Acción Histórica
De Sep 2024 a Oct 2024
NRG Energy (NYSE:NRG)
Gráfica de Acción Histórica
De Oct 2023 a Oct 2024