- Exceeded the top end of 2024 raised Adjusted EPS guidance and returned $1.3 billion of capital to shareholders
- Announcing major Project Development Agreement with GE Vernova and Kiewit to bring up to 5.4 GW of new gas-fired generation online between 2029-2032, including turbine procurement and turnkey engineering project services
- Announcing Letters of Intent with two data center developers for NRG-owned sites, to be powered by NRG once developed; initial phase targets 400 MW
- 1.1 GW of eligible Texas Energy Fund projects now in active due diligence review; turbine onsite at T.H. Wharton, the first 415 MW of the 1.5 GW previously announced natural gas development projects in Texas
- Reaffirming 2025 guidance ranges; reiterating our growth plan and capital allocation framework
NRG Energy, Inc. Reports Full Year 2024 Financial Results
Media:
Chevalier Gray
832.763.3454
Investors:
Brendan Mulhern
609.524.4767
NRG Energy, Inc. (NYSE: NRG) today reported GAAP Net Income of $643 million for the three months ended December 31, 2024 and $1.1 billion for the full year 2024. GAAP EPS — basic was $5.14, Cash Provided by Operating Activities was $2.3 billion, Adjusted Net Income was $1.4 billion, Adjusted EPS was $6.83, Adjusted EBITDA was $3.8 billion, and Free Cash Flow before Growth (FCFbG) was $2.1 billion for the full year 2024.
“NRG had a stellar year, executing across all our strategic priorities. Our Adjusted EPS exceeded the top end of raised guidance, we announced the first-of-its-kind residential VPP of scale through our Renew Home and Google Cloud partnerships, and we delivered on our capital allocation commitments,” said Larry Coben, NRG Chair, President and Chief Executive Officer. “Today, as promised, we are thrilled to share with you the initial steps and early successes on our roadmap to unlock the significant upside opportunities created by this new era of sustained demand growth. I look forward to updating you on our progress. This is an exciting time to be a part of NRG.”
NRG is reaffirming its 2025 guidance ranges for Adjusted EPS of $6.75 - $7.75, FCFbG of $1,975 - $2,225 million, and other metrics found in Table 2.
Consolidated Financial Results |
|||||||||||||
Table 1 |
|||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||||
($ in millions, except per share amounts) |
|
12/31/24 |
|
12/31/23 |
|
12/31/24 |
|
12/31/23 |
|||||
GAAP Net Income/(Loss) |
|
$ |
643 |
|
$ |
482 |
|
$ |
1,125 |
|
$ |
(202 |
) |
Adjusted Net Incomea b |
|
$ |
316 |
|
$ |
253 |
|
$ |
1,408 |
|
$ |
1,076 |
|
GAAP EPS — basic |
|
$ |
3.10 |
|
$ |
2.09 |
|
$ |
5.14 |
|
$ |
(1.12 |
) |
Adjusted EPSa c |
|
$ |
1.56 |
|
$ |
1.13 |
|
$ |
6.83 |
|
$ |
4.72 |
|
Adjusted EBITDAa d |
|
$ |
902 |
|
$ |
861 |
|
$ |
3,789 |
|
$ |
3,319 |
|
Cash Provided/(Used) by Operating Activities |
|
$ |
952 |
|
$ |
241 |
|
$ |
2,306 |
|
$ |
(221 |
) |
Free Cash Flow Before Growth Investments (FCFbG)a |
|
$ |
624 |
|
$ |
942 |
|
$ |
2,062 |
|
$ |
1,925 |
|
a |
Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-1 through A-8 for GAAP reconciliations. Adjusted EPS, Adjusted Net Income, and Adjusted EBITDA exclude fair value adjustments related to derivatives |
|
| b | Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see Appendix tables A-1 through A-6 |
|
| c | Adjusted EPS calculated based on Adjusted Net Income divided by weighted average number of common shares outstanding - basic |
|
| d | Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization |
NRG's GAAP Net Income for the full year 2024 was $1.3 billion higher than prior year. The year-over-year change was primarily driven by unrealized non-cash mark-to-market gains on economic hedges in 2024, compared to losses in 2023. Certain economic hedge positions are required to be marked-to-market every period, while the customer contracts related to these items are not, resulting in temporary unrealized non-cash losses or gains on the economic hedges that are not reflective of the expected economics at future settlement. The comparison is also affected by asset sales in 2023 and losses incurred on debt extinguishment in 2024. Full year 2024 GAAP Net Income results benefited overall from the strong operational performance of the business, as detailed in the Adjusted EBITDA segment results below.
Adjusted Net Income for full year 2024 was $1.4 billion, $332 million higher than prior year, primarily driven by $470 million improvement in Adjusted EBITDA described in the segment results below, partially offset by an increase in depreciation and amortization from Vivint Smart Home related to full year 2024 results compared to ten months of NRG's ownership in 2023. Adjusted EPS was $6.83 for full year 2024, $2.11 higher than prior year as a result of strong financial and operating performance, as well as reduction of 22 million in the weighted average number of common shares outstanding – basic.
NRG’s full year 2024 Adjusted EPS, FCFbG, and other metrics grew significantly, due to superior consolidated financial and operational performance. NRG's retail energy business continued to deliver strong margins while the Company's generation fleet had excellent 88% In-the-Money-Availability. NRG's Smart Home segment delivered another year above expectations with over 5% net subscriber growth, 6% margin expansion, and a record-high retention rate of 90%.
Reaffirming 2025 Guidance
NRG is reaffirming its guidance for 2025 as set forth below.
Table 2: Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG Guidance for 2025a |
||
|
|
2025 |
($ in millions, except per share amounts) |
|
Guidance |
Adjusted Net Income |
|
$1,330 - $1,530 |
Adjusted EPS |
|
$6.75 - $7.75 |
Adjusted EBITDA |
|
$3,725 - $3,975 |
FCFbG |
|
$1,975 - $2,225 |
a |
Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, and FCFbG are non-GAAP financial measures; see Appendix tables A-10 through A-12 for GAAP reconciliations. Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year |
Capital Allocation
NRG remains committed to its capital allocation policy targeting, after debt reduction, approximately 80% of cash available for allocation to return of capital, and approximately 20% to investments in strategic growth that meet or exceed stated hurdle rates.
In 2024, the Company returned $1.263 billion to shareholders through $925 million in share repurchases -- exceeding its original share repurchase target by $100 million -- and $338 million in common stock dividends. The Company executed $342 million in liability management and achieved its target credit metrics of 2.50x - 2.75x Net Debt to Adjusted EBITDA, a full year earlier than its original target.
For 2025, the Company reiterates its previously announced capital allocation plan, which includes $1.3 billion in share repurchases, and common stock dividends of approximately $345 million. As of February 20, 2025, the Company has executed $174 million of its $1.3 billion 2025 share repurchase plan.
On January 22, 2025, NRG declared a quarterly dividend of $0.44 per common share, or $1.76 per share on an annualized basis. This dividend represented an 8% increase, in line with the Company's annual dividend target growth rate of 7-9% per share. The dividend was paid on February 18, 2025 to common stockholders of record as of February 3, 2025.
NRG's share repurchase program and common stock dividend are subject to maintaining satisfactory credit metrics, available capital, market conditions, and compliance with associated laws and regulations. The timing and amount of any shares of NRG’s common stock repurchased under the share repurchase authorization will be determined by NRG’s management based on market conditions and other factors. NRG will only repurchase shares when management believes it would not jeopardize the Company’s ability to maintain satisfactory credit ratings.
NRG Strategic Developments
Site Development Updates
NRG has signed a strategic Project Development Agreement with GE Vernova (GEV) and Kiewit's subsidiary, TIC, to develop and construct up to 5.4 GW of new gas-fired, combined cycle generation projects. Together, the parties intend to develop sites selected by NRG as part of the Company's comprehensive 2024 portfolio review, with priority given to Texas and East region sites in the near-term. The generation facilities will be owned and operated by NRG. Additionally, NRG has entered into a slot reservation agreement with GEV for the procurement of 1.2 GW of 7HA gas turbines. The first projects under this comprehensive development agreement are expected to commence operations by the end of 2029.
NRG has also entered into Letters of Intent (LOIs) with two leading data center developers, Menlo Equities and PowLan. Targeting 400 MW of retail supply in the initial phase, these arrangements have the potential to scale to 6.5 GW, with work expected to start in 2026. The pricing structures are expected to incorporate the planned sites' unique value and NRG's comprehensive supply optimization expertise.
NRG has fully dedicated engineering, construction, and offtake structuring teams to execute its tailored data center strategy.
1.5 GW Texas Brownfield Natural Gas New Build Updates
NRG is advancing its three brownfield natural gas plants, totaling 1.5 GW, with 1.1 GW progressing through Texas Energy Fund (TEF) due diligence and a 443 MW peaker under evaluation. In December 2024, the Public Utility Commission of Texas (PUCT) selected the 689 MW Cedar Bayou 5 CCGT project to advance to the next phase of diligence, marking the second NRG project chosen under the TEF process. A turbine is onsite at the Company's T.H. Wharton plant (also in TEF due diligence) and commercial operation is expected by summer 2026. These projects underscore NRG's commitment to delivering high-quality dispatchable generation to meet the growing energy needs of Texas consumers.
Segment Results |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3: Adjusted EBITDAa |
||||||||||||
($ in millions) |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
Segment |
|
12/31/24 |
|
12/31/23 |
|
12/31/24 |
|
12/31/23 |
||||
Texas |
|
$ |
327 |
|
$ |
382 |
|
$ |
1,582 |
|
$ |
1,692 |
East |
|
|
282 |
|
|
218 |
|
|
1,006 |
|
|
780 |
West/Services/Otherb |
|
|
22 |
|
|
6 |
|
|
201 |
|
|
57 |
Vivint Smart Homec |
|
|
271 |
|
|
255 |
|
|
1,000 |
|
|
790 |
Adjusted EBITDAd |
|
$ |
902 |
|
$ |
861 |
|
$ |
3,789 |
|
$ |
3,319 |
a |
Adjusted EBITDA is a non-GAAP financial measure; see Appendix tables A-1 through A-6 for GAAP reconciliation of Adjusted EBITDA (by operating segment) to GAAP Net Income (by operating segment). Adjusted EBITDA excludes fair value adjustments related to derivatives |
|
| b | Includes Corporate activities |
|
| c | Vivint Smart Home acquired in March 2023. These figures presented exclude Vivint's results of operations during the period prior to the acquisition |
|
| d | Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization |
Texas: Full year 2024 Adjusted EBITDA was $1,582 million, $110 million lower than the prior year. The decrease was primarily driven by the sale of NRG's equity interest in the STP power plant in 2023, mild weather, and the impact of extended planned preventative maintenance to ensure summer reliability. This was partially offset by strong operational performance and supply optimization during low power price periods.
East: Full year 2024 Adjusted EBITDA was $1,006 million, $226 million higher than prior year. This increase was primarily driven by higher retail power margins, increased customer counts, and favorable natural gas wholesale and retail gross margins.
West/Services/Other: Full year 2024 Adjusted EBITDA was $201 million, $144 million higher than prior year. This increase was primarily driven by higher retail power margins and spark spread expansion at Cottonwood, partially offset by the sale of Airtron in September 2024.
Vivint Smart Home: Full year Adjusted EBITDA was $1,000 million, $210 million higher than prior year. The increase reflects full year 2024 results compared to ten months of NRG's ownership in 2023. The remainder of the increase was primarily the result of growth in total subscribers and higher monthly recurring service margins.
Liquidity and Capital Resources |
||||||
Table 4: Corporate Liquidity |
||||||
(In millions) |
|
12/31/24 |
|
12/31/23 |
||
Cash and Cash Equivalents |
|
$ |
966 |
|
$ |
541 |
Restricted Cash |
|
|
8 |
|
|
24 |
Total |
|
$ |
974 |
|
$ |
565 |
Total credit facility availability |
|
|
4,469 |
|
|
4,278 |
Total Liquidity, excluding collateral received |
|
$ |
5,443 |
|
$ |
4,843 |
As of December 31, 2024, NRG's unrestricted cash was $1.0 billion, and $4.5 billion was available under the Company’s credit facilities. Total liquidity was $5.4 billion, which was $0.6 billion higher than December 31, 2023. This increase was due to specific initiatives to optimize the amount of collateral supporting NRG's market operations activity and a decrease in collateral postings.
Earnings Conference Call
On February 26, 2025, NRG will host a conference call at 9:00 a.m. Eastern (8:00 a.m. Central) to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials through the investor relations website under “presentations and webcasts” on investors.nrg.com. The webcast will be archived on the site for those unable to listen in real-time.
About NRG
NRG Energy 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 and LinkedIn, and follow us on X, @nrgenergy.
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, the volatility in demand for power and gas, 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 supply strategy, risks related to data privacy, cyberterrorism and inadequate cybersecurity, the loss of data, unanticipated outages at NRG’s generation facilities, operational and reputational risks related to the use of artificial intelligence and the adherence to developing laws and regulations related to the use thereof, 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 customers, the ability to successfully integrate businesses of acquired assets or companies, 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, NRG’s ability to execute its capital allocation plan, and the other risks and uncertainties discussed in this release and in our Forms 10-K, 10-Q, and 8-K filed with or furnished to the SEC. 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, Free Cash Flow before Growth, Adjusted Net Income, and Adjusted EPS guidance are estimates as of February 26, 2025. 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.
NRG ENERGY, INC. AND SUBSIDIARIES |
|||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
|
For the Year Ended December 31, |
||||||||||
(In millions, except per share amounts) |
2024 |
|
2023 |
|
2022 |
||||||
Revenue |
|
|
|
|
|
||||||
Revenue |
$ |
28,130 |
|
|
$ |
28,823 |
|
|
$ |
31,543 |
|
Operating Costs and Expenses |
|
|
|
|
|
||||||
Cost of operations (excluding depreciation and amortization shown below) |
|
22,100 |
|
|
|
26,483 |
|
|
|
27,443 |
|
Depreciation and amortization |
|
1,403 |
|
|
|
1,295 |
|
|
|
720 |
|
Impairment losses |
|
36 |
|
|
|
26 |
|
|
|
206 |
|
Selling, general and administrative costs (excluding amortization of customer acquisition costs of $204, $125 and $83, respectively, which are included in depreciation and amortization shown separately above) |
|
2,031 |
|
|
|
1,843 |
|
|
|
1,145 |
|
Provision for credit losses |
|
314 |
|
|
|
251 |
|
|
|
11 |
|
Acquisition-related transaction and integration costs |
|
30 |
|
|
|
119 |
|
|
|
52 |
|
Total operating costs and expenses |
|
25,914 |
|
|
|
30,017 |
|
|
|
29,577 |
|
Gain on sale of assets |
|
208 |
|
|
|
1,578 |
|
|
|
52 |
|
Operating Income |
|
2,424 |
|
|
|
384 |
|
|
|
2,018 |
|
Other Income/(Expense) |
|
|
|
|
|
||||||
Equity in earnings of unconsolidated affiliates |
|
20 |
|
|
|
16 |
|
|
|
6 |
|
Impairment losses on investments |
|
(7 |
) |
|
|
(102 |
) |
|
|
— |
|
Other income, net |
|
44 |
|
|
|
47 |
|
|
|
56 |
|
(Loss)/Gain on debt extinguishment |
|
(382 |
) |
|
|
109 |
|
|
|
— |
|
Interest expense |
|
(651 |
) |
|
|
(667 |
) |
|
|
(417 |
) |
Total other expense |
|
(976 |
) |
|
|
(597 |
) |
|
|
(355 |
) |
Income/(Loss) Before Income Taxes |
|
1,448 |
|
|
|
(213 |
) |
|
|
1,663 |
|
Income tax expense/(benefit) |
|
323 |
|
|
|
(11 |
) |
|
|
442 |
|
Net Income/(Loss) |
|
1,125 |
|
|
|
(202 |
) |
|
|
1,221 |
|
Less: Cumulative dividends attributable to Series A Preferred Stock |
|
67 |
|
|
|
54 |
|
|
|
— |
|
Net Income/(Loss) Available for Common Stockholders |
$ |
1,058 |
|
|
$ |
(256 |
) |
|
$ |
1,221 |
|
Income/(Loss) Per Share |
|
|
|
|
|
||||||
Weighted average number of common shares outstanding — basic |
|
206 |
|
|
|
228 |
|
|
|
236 |
|
Income/(Loss) per Weighted Average Common Share — Basic |
$ |
5.14 |
|
|
$ |
(1.12 |
) |
|
$ |
5.17 |
|
Weighted average number of common shares outstanding — diluted |
|
212 |
|
|
|
228 |
|
|
|
236 |
|
Income/(Loss) per Weighted Average Common Share — Diluted |
$ |
4.99 |
|
|
$ |
(1.12 |
) |
|
$ |
5.17 |
|
NRG ENERGY, INC. AND SUBSIDIARIES |
|||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
|||||||||||
|
For the Year Ended December 31, |
||||||||||
(In millions) |
2024 |
|
2023 |
|
2022 |
||||||
Net Income/(Loss) |
$ |
1,125 |
|
|
$ |
(202 |
) |
|
$ |
1,221 |
|
Other Comprehensive (Loss)/Income, net of tax |
|
|
|
|
|
||||||
Foreign currency translation adjustments |
|
(22 |
) |
|
|
9 |
|
|
|
(35 |
) |
Defined benefit plans |
|
(4 |
) |
|
|
30 |
|
|
|
(16 |
) |
Other comprehensive (loss)/income |
|
(26 |
) |
|
|
39 |
|
|
|
(51 |
) |
Comprehensive Income/(Loss) |
$ |
1,099 |
|
|
$ |
(163 |
) |
|
$ |
1,170 |
|
NRG ENERGY, INC. AND SUBSIDIARIES |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
|
As of December 31, |
||||
(In millions) |
2024 |
|
2023 |
||
ASSETS |
|
|
|
||
Current Assets |
|
|
|
||
Cash and cash equivalents |
$ |
966 |
|
$ |
541 |
Funds deposited by counterparties |
|
199 |
|
|
84 |
Restricted cash |
|
8 |
|
|
24 |
Accounts receivable, net |
|
3,488 |
|
|
3,542 |
Inventory |
|
478 |
|
|
607 |
Derivative instruments |
|
2,686 |
|
|
3,862 |
Cash collateral paid in support of energy risk management activities |
|
309 |
|
|
441 |
Prepayments and other current assets |
|
830 |
|
|
626 |
Total current assets |
|
8,964 |
|
|
9,727 |
Property, plant and equipment, net |
|
2,021 |
|
|
1,763 |
Other Assets |
|
|
|
||
Equity investments in affiliates |
|
45 |
|
|
42 |
Operating lease right-of-use assets, net |
|
151 |
|
|
179 |
Goodwill |
|
5,011 |
|
|
5,079 |
Customer relationships, net |
|
1,538 |
|
|
2,164 |
Other intangible assets, net |
|
1,370 |
|
|
1,763 |
Derivative instruments |
|
1,710 |
|
|
2,293 |
Deferred income taxes |
|
2,067 |
|
|
2,251 |
Other non-current assets |
|
1,145 |
|
|
777 |
Total other assets |
|
13,037 |
|
|
14,548 |
Total Assets |
$ |
24,022 |
|
$ |
26,038 |
NRG ENERGY, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS (Continued) |
|||||||
|
As of December 31, |
||||||
(In millions, except share data) |
2024 |
|
2023 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Current portion of long-term debt and finance leases |
$ |
996 |
|
|
$ |
620 |
|
Current portion of operating lease liabilities |
|
66 |
|
|
|
90 |
|
Accounts payable |
|
2,513 |
|
|
|
2,325 |
|
Derivative instruments |
|
2,297 |
|
|
|
4,019 |
|
Cash collateral received in support of energy risk management activities |
|
199 |
|
|
|
84 |
|
Deferred revenue current |
|
711 |
|
|
|
720 |
|
Accrued expenses and other current liabilities |
|
2,031 |
|
|
|
1,642 |
|
Total current liabilities |
|
8,813 |
|
|
|
9,500 |
|
Other Liabilities |
|
|
|
||||
Long-term debt and finance leases |
|
9,812 |
|
|
|
10,133 |
|
Non-current operating lease liabilities |
|
117 |
|
|
|
128 |
|
Derivative instruments |
|
1,107 |
|
|
|
1,488 |
|
Deferred income taxes |
|
12 |
|
|
|
22 |
|
Deferred revenue non-current |
|
862 |
|
|
|
914 |
|
Other non-current liabilities |
|
821 |
|
|
|
947 |
|
Total other liabilities |
|
12,731 |
|
|
|
13,632 |
|
Total Liabilities |
|
21,544 |
|
|
|
23,132 |
|
Commitments and Contingencies |
|
|
|
||||
Stockholders' Equity |
|
|
|
||||
Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at December 31, 2024 and 2023 (aggregate liquidation preference $650) |
|
650 |
|
|
|
650 |
|
Common stock; $0.01 par value; 500,000,000 shares authorized; 205,064,058 and 267,330,470 shares issued; and 198,604,003 and 208,130,950 shares outstanding at December 31, 2024 and 2023, respectively |
|
2 |
|
|
|
3 |
|
Additional paid-in capital |
|
705 |
|
|
|
3,416 |
|
Retained earnings |
|
1,535 |
|
|
|
820 |
|
Treasury stock, at cost; 6,460,055 and 59,199,520 shares at December 31, 2024 and 2023, respectively |
|
(297 |
) |
|
|
(1,892 |
) |
Accumulated other comprehensive loss |
|
(117 |
) |
|
|
(91 |
) |
Total Stockholders' Equity |
|
2,478 |
|
|
|
2,906 |
|
Total Liabilities and Stockholders' Equity |
$ |
24,022 |
|
|
$ |
26,038 |
|
NRG ENERGY, INC. AND SUBSIDIARIES |
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
|
For the Year Ended December 31, |
||||||||||
(In millions) |
2024 |
|
2023 |
|
2022 |
||||||
Cash Flows from Operating Activities |
|
|
|
|
|
||||||
Net Income/(Loss) |
$ |
1,125 |
|
|
$ |
(202 |
) |
|
$ |
1,221 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
||||||
Equity in earnings of unconsolidated affiliates, net of distributions |
|
(13 |
) |
|
|
(6 |
) |
|
|
7 |
|
Depreciation of property, plant and equipment and amortization of customer relationships and other intangible assets |
|
1,071 |
|
|
|
1,127 |
|
|
|
634 |
|
Amortization of capitalized contract costs |
|
332 |
|
|
|
168 |
|
|
|
86 |
|
Accretion of asset retirement obligations |
|
34 |
|
|
|
27 |
|
|
|
55 |
|
Provision for credit losses |
|
314 |
|
|
|
251 |
|
|
|
11 |
|
Amortization of nuclear fuel |
|
— |
|
|
|
47 |
|
|
|
54 |
|
Amortization of financing costs and debt discounts |
|
39 |
|
|
|
52 |
|
|
|
23 |
|
Loss/(Gain) on debt extinguishment |
|
382 |
|
|
|
(109 |
) |
|
|
— |
|
Amortization of in-the-money contracts and emissions allowances |
|
105 |
|
|
|
137 |
|
|
|
158 |
|
Amortization of unearned equity compensation |
|
102 |
|
|
|
101 |
|
|
|
28 |
|
Net gain on sale of assets and disposal of assets |
|
(192 |
) |
|
|
(1,559 |
) |
|
|
(102 |
) |
Impairment losses |
|
43 |
|
|
|
128 |
|
|
|
206 |
|
Changes in derivative instruments |
|
(337 |
) |
|
|
2,455 |
|
|
|
(3,221 |
) |
Changes in current and deferred income taxes and liability for uncertain tax benefits |
|
165 |
|
|
|
(92 |
) |
|
|
382 |
|
Changes in collateral deposits in support of risk management activities |
|
245 |
|
|
|
(1,806 |
) |
|
|
896 |
|
Changes in nuclear decommissioning trust liability |
|
— |
|
|
|
— |
|
|
|
9 |
|
Uplift securitization proceeds received from ERCOT |
|
— |
|
|
|
— |
|
|
|
689 |
|
Cash (used)/provided by changes in other working capital: |
|
|
|
|
|
||||||
Accounts receivable - trade |
|
(366 |
) |
|
|
840 |
|
|
|
(1,560 |
) |
Inventory |
|
111 |
|
|
|
189 |
|
|
|
(252 |
) |
Prepayments and other current assets |
|
(539 |
) |
|
|
(401 |
) |
|
|
(69 |
) |
Accounts payable |
|
170 |
|
|
|
(1,455 |
) |
|
|
1,295 |
|
Accrued expenses and other current liabilities |
|
136 |
|
|
|
360 |
|
|
|
(29 |
) |
Other assets and liabilities |
|
(621 |
) |
|
|
(473 |
) |
|
|
(161 |
) |
Cash provided/(used) by operating activities |
$ |
2,306 |
|
|
$ |
(221 |
) |
|
$ |
360 |
|
Cash Flows from Investing Activities |
|
|
|
|
|
||||||
Payments for acquisitions of businesses and assets, net of cash acquired |
$ |
(38 |
) |
|
$ |
(2,523 |
) |
|
$ |
(62 |
) |
Capital expenditures |
|
(472 |
) |
|
|
(598 |
) |
|
|
(367 |
) |
Proceeds from sale of assets, net of cash disposed |
|
501 |
|
|
|
2,007 |
|
|
|
109 |
|
Net purchases of emissions allowances |
|
(18 |
) |
|
|
(24 |
) |
|
|
(6 |
) |
Proceeds from insurance recoveries for property, plant and equipment, net |
|
3 |
|
|
|
240 |
|
|
|
— |
|
Investments in nuclear decommissioning trust fund securities |
|
— |
|
|
|
(367 |
) |
|
|
(454 |
) |
Proceeds from sales of nuclear decommissioning trust fund securities |
|
— |
|
|
|
355 |
|
|
|
448 |
|
Cash used by investing activities |
$ |
(24 |
) |
|
$ |
(910 |
) |
|
$ |
(332 |
) |
|
|
|
|
|
|
||||||
Cash Flows from Financing Activities |
|
|
|
|
|
||||||
Proceeds from issuance of preferred stock, net of fees |
$ |
— |
|
|
$ |
635 |
|
|
$ |
— |
|
Payments for share repurchase activity and excise tax(a) |
|
(935 |
) |
|
|
(1,150 |
) |
|
|
(600 |
) |
Equivalent shares purchased in lieu of tax withholdings |
|
(50 |
) |
|
|
(22 |
) |
|
|
(6 |
) |
Payments of dividends to preferred and common stockholders |
|
(405 |
) |
|
|
(381 |
) |
|
|
(332 |
) |
Proceeds from issuance of long-term debt |
|
3,200 |
|
|
|
731 |
|
|
|
— |
|
Payments for current and long-term debt |
|
(3,255 |
) |
|
|
(523 |
) |
|
|
(5 |
) |
Payments for debt extinguishment costs |
|
(262 |
) |
|
|
— |
|
|
|
— |
|
Payments of debt issuance costs |
|
(45 |
) |
|
|
(32 |
) |
|
|
(9 |
) |
Net (payments)/receipts from settlement of acquired derivatives that include financing elements |
|
(3 |
) |
|
|
342 |
|
|
|
1,995 |
|
Proceeds from credit facilities |
|
1,050 |
|
|
|
3,020 |
|
|
|
— |
|
Repayments to credit facilities |
|
(1,050 |
) |
|
|
(3,020 |
) |
|
|
— |
|
Cash (used)/provided by financing activities |
$ |
(1,755 |
) |
|
$ |
(400 |
) |
|
$ |
1,043 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(3 |
) |
|
|
2 |
|
|
|
(3 |
) |
Net (Decrease)/Increase in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash |
|
524 |
|
|
|
(1,529 |
) |
|
|
1,068 |
|
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period |
|
649 |
|
|
|
2,178 |
|
|
|
1,110 |
|
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period |
$ |
1,173 |
|
|
$ |
649 |
|
|
$ |
2,178 |
|
(a) |
|
Includes excise tax paid of $10 million during the year ended December 31, 2024 |
Appendix Table A-1: Fourth Quarter 2024 Adjusted EBITDA Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss)1:
($ in millions, except per share amounts) |
Texas |
East |
West/
|
Vivint
|
Corp/Elim2 |
Total |
||||||||||||
Net Income/(Loss) |
$ |
273 |
|
$ |
686 |
|
$ |
7 |
|
$ |
11 |
$ |
(334 |
) |
$ |
643 |
|
|
Plus: |
|
|
|
|
|
|
||||||||||||
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
109 |
|
|
109 |
|
|
Income tax expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
72 |
|
|
72 |
|
|
Loss on debt extinguishment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
122 |
|
|
122 |
|
|
Depreciation and amortization1 |
|
83 |
|
|
41 |
|
|
18 |
|
|
206 |
|
10 |
|
|
358 |
|
|
ARO expense |
|
3 |
|
|
2 |
|
|
— |
|
|
— |
|
— |
|
|
5 |
|
|
Contract and emission credit amortization, net |
|
2 |
|
|
4 |
|
|
4 |
|
|
— |
|
— |
|
|
10 |
|
|
EBITDA |
|
361 |
|
|
733 |
|
|
29 |
|
|
217 |
|
(21 |
) |
|
1,319 |
|
|
Stock-based compensation |
|
5 |
|
|
1 |
|
|
1 |
|
|
13 |
|
— |
|
|
20 |
|
|
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates |
|
— |
|
|
— |
|
|
(3 |
) |
|
— |
|
— |
|
|
(3 |
) |
|
Acquisition and divestiture integration and transaction costs |
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
6 |
|
|
8 |
|
|
Cost to achieve |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
5 |
|
|
5 |
|
|
Deactivation costs |
|
— |
|
|
7 |
|
|
— |
|
|
— |
|
— |
|
|
7 |
|
|
Loss on sale of assets3 |
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
— |
|
|
4 |
|
|
Other and non-recurring charges4 |
|
(23 |
) |
|
(9 |
) |
|
(3 |
) |
|
39 |
|
(1 |
) |
|
3 |
|
|
Impairments |
|
7 |
|
|
— |
|
|
21 |
|
|
— |
|
— |
|
|
28 |
|
|
Mark-to-market (MtM) (gains) on economic hedges5 |
|
(23 |
) |
|
(450 |
) |
|
(16 |
) |
|
— |
|
— |
|
|
(489 |
) |
|
Adjusted EBITDA |
$ |
327 |
|
$ |
282 |
|
$ |
33 |
|
$ |
271 |
$ |
(11 |
) |
$ |
902 |
|
|
Adjusted interest expense, net6 |
|
|
|
|
|
|
(143 |
) |
||||||||||
Depreciation and amortization |
|
|
|
|
|
|
(358 |
) |
||||||||||
Adjusted Income before income taxes |
|
|
|
|
|
|
401 |
|
||||||||||
Adjusted income tax expense7 |
|
|
|
|
|
|
(69 |
) |
||||||||||
Adjusted Net Income before Preferred Stock dividends |
|
|
|
|
|
|
332 |
|
||||||||||
Cumulative dividends attributable to Series A Preferred Stock |
|
|
|
|
|
|
(16 |
) |
||||||||||
Adjusted Net Income8 |
|
|
|
|
|
|
316 |
|
||||||||||
Weighted average number of common shares outstanding - basic |
|
|
|
|
|
|
202 |
|
||||||||||
Adjusted EPS |
$ |
1.56 |
||||||||||||||||
1 |
|
Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization |
2 |
|
Beginning in the fourth quarter of 2024, Corporate now includes interest expense related to its consolidated debt financing activities and income tax expense related to its consolidated U.S. federal, foreign and state income taxes conforming to the way the Company internally manages and monitors the business. Prior periods amounts have been recast for comparative purposes to reflect this change |
3 |
|
Excludes sale of land not associated with a generating asset |
4 |
|
Includes reserves for legal matters, offset by one-time gain from change in benefits in 2024 |
5 |
|
Gain of $(489) million was primarily driven by unrealized non-cash mark-to-market gains on economic hedges in the East due to large movements in natural gas and power prices |
6 |
|
Excludes mark-to-market gain on interest hedges of $34 million |
7 |
|
Income tax calculated using Adjusted effective tax rate (ETR) on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits, consisting of incentive tax credit in connection with renewable projects and production tax credits for carbon recapture for pre-IRA periods, as well as non-recurring tax items like movements in valuation allowances |
8 |
|
Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders' |
Fourth Quarter 2024 condensed financial information by Operating Segment:
($ in millions) |
Texas |
East |
West/
|
Vivint
|
Corp/Elim |
Total |
|||||||||
Revenue1 |
|
2,356 |
|
|
3,102 |
|
|
922 |
|
498 |
|
(20 |
) |
|
6,858 |
Cost of fuel, purchased energy and other cost of sales2 |
|
1,549 |
|
|
2,536 |
|
|
777 |
|
36 |
|
(8 |
) |
|
4,890 |
Economic gross margin |
|
807 |
|
|
566 |
|
|
145 |
|
462 |
|
(12 |
) |
|
1,968 |
Operations & maintenance and other cost of operations3 |
|
253 |
|
|
128 |
|
|
48 |
|
67 |
|
(6 |
) |
|
490 |
Selling, marketing, general and administrative4 |
|
170 |
|
|
152 |
|
|
51 |
|
114 |
|
1 |
|
|
488 |
Provision for credit losses |
|
59 |
|
|
7 |
|
|
11 |
|
9 |
|
— |
|
|
86 |
Other |
|
(2 |
) |
|
(3 |
) |
|
2 |
|
1 |
|
4 |
|
|
2 |
Adjusted EBITDA |
$ |
327 |
|
$ |
282 |
|
$ |
33 |
$ |
271 |
$ |
(11 |
) |
$ |
902 |
1 |
|
Excludes MtM loss of $35 million and contract amortization of $4 million |
2 |
|
Includes TDSP expense, capacity and emission credits |
3 |
|
Excludes deactivation costs of $7 million, ARO expense of $5 million, stock-based compensation of $2 million and other and non-recurring charges of $(5) million |
4 |
|
Excludes stock-based compensation of $18 million, other and non-recurring charges of $9 million and cost to achieve of $5 million |
The following table reconciles the Fourth Quarter 2024 condensed financial information to Adjusted EBITDA:
($ in millions) |
Condensed
|
Interest, tax,
|
MtM |
Deactivation |
Other adj.2 |
Adjusted
|
||||||||||
Revenue |
$ |
6,819 |
$ |
4 |
|
$ |
35 |
|
$ |
— |
|
$ |
— |
|
$ |
6,858 |
Cost of operations (excluding depreciation and amortization shown below)1 |
|
4,372 |
|
(6 |
) |
|
524 |
|
|
— |
|
|
— |
|
|
4,890 |
Depreciation and Amortization |
|
358 |
|
(358 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
Gross margin |
|
2,089 |
|
368 |
|
|
(489 |
) |
|
— |
|
|
— |
|
|
1,968 |
Operations & maintenance and other cost of operations |
|
499 |
|
— |
|
|
— |
|
|
(7 |
) |
|
(2 |
) |
|
490 |
Selling, marketing, general & administrative |
|
520 |
|
— |
|
|
— |
|
|
— |
|
|
(32 |
) |
|
488 |
Provision for credit losses |
|
86 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
86 |
Other |
|
341 |
|
(181 |
) |
|
— |
|
|
— |
|
|
(158 |
) |
|
2 |
Net Income/(Loss) |
$ |
643 |
$ |
549 |
|
$ |
(489 |
) |
$ |
7 |
|
$ |
192 |
|
$ |
902 |
1 |
|
Excludes operations & maintenance and other cost of operations of $499 million |
2 |
|
Other adj. includes loss on debt extinguishment $122 million, impairments of $28 million, stock-based compensation of $20 million, acquisition and divestiture integration and transaction costs of $8 million, cost to achieve of $5 million, ARO expense of $5 million, loss on sale of assets $4 million, other and non-recurring charges of $3 million and NRG share of adjusted EBITDA in unconsolidated affiliates of $(3) million |
Appendix Table A-2: Fourth Quarter 2023 Adjusted EBITDA Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss)1:
($ in millions, except per share amounts) |
Texas |
East |
West/
|
Vivint
|
Corp/Elim2 |
Total |
|||||||||||
Net Income/(Loss) |
$ |
1,560 |
|
$ |
(527 |
) |
$ |
(278 |
) |
$ |
20 |
$ |
(293 |
) |
$ |
482 |
|
Plus: |
|
|
|
|
|
|
|||||||||||
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
178 |
|
|
178 |
|
Income tax expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
171 |
|
|
171 |
|
(Gain) on debt extinguishment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
(109 |
) |
|
(109 |
) |
Depreciation and amortization1 |
|
91 |
|
|
45 |
|
|
26 |
|
|
203 |
|
9 |
|
|
374 |
|
ARO Expense |
|
8 |
|
|
5 |
|
|
— |
|
|
— |
|
— |
|
|
13 |
|
Contract and emission credit amortization, net |
|
2 |
|
|
17 |
|
|
4 |
|
|
— |
|
— |
|
|
23 |
|
EBITDA |
|
1,661 |
|
|
(460 |
) |
|
(248 |
) |
|
223 |
|
(44 |
) |
|
1,132 |
|
Stock-based compensation |
|
(2 |
) |
|
(1 |
) |
|
(1 |
) |
|
17 |
|
— |
|
|
13 |
|
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates |
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
— |
|
|
4 |
|
Acquisition and divestiture integration and transaction costs |
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
6 |
|
|
8 |
|
Cost to achieve |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
14 |
|
|
14 |
|
Deactivation costs |
|
— |
|
|
15 |
|
|
3 |
|
|
— |
|
— |
|
|
18 |
|
(Gain) on sale of assets3 |
|
(1,319 |
) |
|
(31 |
) |
|
— |
|
|
— |
|
— |
|
|
(1,350 |
) |
Other and non-recurring charges4 |
|
(66 |
) |
|
— |
|
|
1 |
|
|
13 |
|
16 |
|
|
(36 |
) |
Impairments |
|
2 |
|
|
4 |
|
|
122 |
|
|
— |
|
— |
|
|
128 |
|
Mark-to-market (MtM) loss on economic hedges5 |
|
106 |
|
|
691 |
|
|
133 |
|
|
— |
|
— |
|
|
930 |
|
Adjusted EBITDA |
$ |
382 |
|
$ |
218 |
|
$ |
14 |
|
$ |
255 |
$ |
(8 |
) |
$ |
861 |
|
Adjusted interest expense, net6 |
|
|
|
|
|
|
(150 |
) |
|||||||||
Depreciation and amortization |
|
|
|
|
|
|
(374 |
) |
|||||||||
Adjusted Income before income taxes |
|
|
|
|
|
|
337 |
|
|||||||||
Adjusted income tax expense7 |
|
|
|
|
|
|
(68 |
) |
|||||||||
Adjusted Net Income before Preferred Stock dividends |
|
|
|
|
|
|
269 |
|
|||||||||
Cumulative dividends attributable to Series A Preferred Stock |
|
|
|
|
|
|
(16 |
) |
|||||||||
Adjusted Net Income8 |
|
|
|
|
|
|
253 |
|
|||||||||
Weighted average number of common shares outstanding - basic |
|
|
|
|
|
|
223 |
|
|||||||||
Adjusted EPS |
|
|
|
|
|
$ |
1.13 |
|
|||||||||
1 |
|
Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization |
2 |
|
Beginning in the fourth quarter of 2024, Corporate now includes interest expense related to its consolidated debt financing activities and income tax expense related to its consolidated U.S. federal, foreign and state income taxes conforming to the way the Company internally manages and monitors the business. Prior periods amounts have been recast for comparative purposes to reflect this change |
3 |
|
Excludes sale of land not associated with a generating asset |
4 |
|
Includes $(68) million of property insurance proceeds. For the three months ended December 31, 2023, cash proceeds were $67 million |
5 |
|
Loss of $930 million was primarily driven by unrealized non-cash mark-to-market losses on economic hedges in the East due to large movements in natural gas and power prices |
6 |
|
Excludes mark-to-market loss on interest hedges of $28 million |
7 |
|
Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits, consisting of incentive tax credit in connection with renewable projects and production tax credits for carbon recapture for pre-IRA periods, as well as non-recurring tax items like movements in valuation allowances |
8 |
|
Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders' |
Fourth Quarter 2023 condensed financial information by Operating Segment:
($ in millions) |
Texas |
East |
West/
|
Vivint
|
Corp/Elim |
Total |
||||||||||
Revenue1 |
|
2,241 |
|
3,037 |
|
|
1,014 |
|
|
479 |
|
(4 |
) |
|
6,767 |
|
Cost of fuel, purchased energy and other cost of sales2 |
|
1,435 |
|
2,602 |
|
|
881 |
|
|
34 |
|
(3 |
) |
|
4,949 |
|
Economic gross margin |
|
806 |
|
435 |
|
|
133 |
|
|
445 |
|
(1 |
) |
|
1,818 |
|
Operations & maintenance and other cost of operations3 |
|
220 |
|
97 |
|
|
67 |
|
|
57 |
|
(2 |
) |
|
439 |
|
Selling, marketing, general & administrative4 |
|
146 |
|
139 |
|
|
52 |
|
|
119 |
|
5 |
|
|
461 |
|
Provision for credit losses |
|
58 |
|
6 |
|
|
8 |
|
|
13 |
|
— |
|
|
85 |
|
Other |
|
— |
|
(25 |
) |
|
(8 |
) |
|
1 |
|
4 |
|
|
(28 |
) |
Adjusted EBITDA |
$ |
382 |
$ |
218 |
|
$ |
14 |
|
$ |
255 |
$ |
(8 |
) |
$ |
861 |
|
1 |
|
Excludes MtM gain of $(48) million and contract amortization of $8 million |
2 |
|
Includes TDSP expense, capacity and emission credits |
3 |
|
Excludes deactivation costs of $18 million, ARO expense of $13 million, stock-based compensation of $2 million and other and non-recurring charges of $(68) million |
4 |
|
Excludes other and non-recurring charges of $19 million, cost to achieve of $14 million, stock-based compensation of $11 million and acquisition and divestiture integration and transaction costs of $2 million |
The following table reconciles the Fourth Quarter 2023 condensed financial information to Adjusted EBITDA:
($ in millions) |
Condensed
|
Interest, tax,
|
MtM |
Deactivation |
Other adj.2 |
Adjusted
|
||||||||||||
Revenue |
$ |
6,807 |
|
$ |
8 |
|
$ |
(48 |
) |
$ |
— |
|
$ |
— |
|
$ |
6,767 |
|
Cost of operations (excluding depreciation and amortization shown below)1 |
|
5,942 |
|
|
(15 |
) |
|
(978 |
) |
|
— |
|
|
— |
|
|
4,949 |
|
Depreciation and amortization |
|
374 |
|
|
(374 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Gross margin |
|
491 |
|
|
397 |
|
|
930 |
|
|
— |
|
|
— |
|
|
1,818 |
|
Operations & maintenance and other cost of operations |
|
404 |
|
|
— |
|
|
— |
|
|
(18 |
) |
|
53 |
|
|
439 |
|
Selling, marketing, general & administrative |
|
507 |
|
|
— |
|
|
— |
|
|
— |
|
|
(46 |
) |
|
461 |
|
Provision for credit losses |
|
85 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
85 |
|
Other |
|
(987 |
) |
|
(349 |
) |
|
— |
|
|
— |
|
|
1,308 |
|
|
(28 |
) |
Net Income/(Loss) |
$ |
482 |
|
$ |
746 |
|
$ |
930 |
|
$ |
18 |
|
$ |
(1,315 |
) |
$ |
861 |
|
1 |
|
Excludes operations & maintenance and other cost of operations of $404 million |
2 |
|
Other adj. includes impairments of $128 million, cost to achieve of $14 million, stock-based compensation of $13 million, ARO expense of $13 million, acquisition and divestiture integration and transaction costs of $8 million, NRG share of adjusted EBITDA in unconsolidated affiliates of $4 million, other and non-recurring charges of $(36) million, gain on debt extinguishment $(109) million and gain on sale of assets of $(1,350) million |
Appendix Table A-3: Fourth Quarter 2024 and 2023 Adjusted Net Income and Adjusted EPS Reconciliations
The following table summarizes the calculation of Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income1:
|
Three Months Ended |
||||||||||||||||||
($ in millions, except per share amounts) |
December
|
Earnings per
|
Earnings per
|
|
December
|
Earnings per
|
Earnings per
|
||||||||||||
Net Income Available for Common Stockholders |
$ |
627 |
|
$ |
3.10 |
|
$ |
3.01 |
|
|
$ |
466 |
|
$ |
2.09 |
|
$ |
2.05 |
|
Plus: |
|
|
|
|
|
|
|
||||||||||||
Cumulative dividends attributable to Series A Preferred Stock |
|
16 |
|
|
0.08 |
|
|
0.08 |
|
|
|
16 |
|
|
0.07 |
|
|
0.07 |
|
Loss/(gain) on debt extinguishment |
|
122 |
|
|
0.60 |
|
|
0.59 |
|
|
|
(109 |
) |
|
(0.49 |
) |
|
(0.48 |
) |
ARO expense |
|
5 |
|
|
0.02 |
|
|
0.02 |
|
|
|
13 |
|
|
0.06 |
|
|
0.06 |
|
Contract and emission credit amortization, net |
|
10 |
|
|
0.05 |
|
|
0.05 |
|
|
|
23 |
|
|
0.10 |
|
|
0.10 |
|
Stock-based compensation |
|
20 |
|
|
0.10 |
|
|
0.10 |
|
|
|
13 |
|
|
0.06 |
|
|
0.06 |
|
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates |
|
(3 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
|
4 |
|
|
0.02 |
|
|
0.02 |
|
Acquisition and divestiture integration and transaction costs |
|
8 |
|
|
0.04 |
|
|
0.04 |
|
|
|
8 |
|
|
0.04 |
|
|
0.04 |
|
Cost to achieve |
|
5 |
|
|
0.02 |
|
|
0.02 |
|
|
|
14 |
|
|
0.06 |
|
|
0.06 |
|
Deactivation costs |
|
7 |
|
|
0.03 |
|
|
0.03 |
|
|
|
18 |
|
|
0.08 |
|
|
0.08 |
|
Loss/(gain) on sale of assets3 |
|
4 |
|
|
0.02 |
|
|
0.02 |
|
|
|
(1,350 |
) |
|
(6.05 |
) |
|
(5.95 |
) |
Other and non-recurring charges4 |
|
3 |
|
|
0.01 |
|
|
0.01 |
|
|
|
(36 |
) |
|
(0.16 |
) |
|
(0.16 |
) |
Impairments |
|
28 |
|
|
0.14 |
|
|
0.13 |
|
|
|
128 |
|
|
0.57 |
|
|
0.56 |
|
Mark to market (MtM) (gain)/loss on economic hedges5 |
|
(489 |
) |
|
(2.42 |
) |
|
(2.35 |
) |
|
|
930 |
|
|
4.17 |
|
|
4.10 |
|
Mark-to-market (MtM) (gain)/loss on interest hedges |
|
(34 |
) |
|
(0.17 |
) |
|
(0.16 |
) |
|
|
28 |
|
|
0.13 |
|
|
0.12 |
|
Income tax expense6 |
|
72 |
|
|
0.36 |
|
|
0.35 |
|
|
|
171 |
|
|
0.77 |
|
|
0.75 |
|
Adjusted Income before income taxes |
|
401 |
|
$ |
1.99 |
|
$ |
1.93 |
|
|
|
337 |
|
$ |
1.51 |
|
$ |
1.48 |
|
Adjusted income tax expense7 |
|
(69 |
) |
|
(0.34 |
) |
|
(0.33 |
) |
|
|
(68 |
) |
|
(0.30 |
) |
|
(0.30 |
) |
Adjusted Net Income before Preferred Stock dividends |
|
332 |
|
$ |
1.64 |
|
$ |
1.60 |
|
|
|
269 |
|
$ |
1.21 |
|
$ |
1.19 |
|
Cumulative dividends attributable to Series A Preferred Stock |
|
(16 |
) |
|
(0.08 |
) |
|
(0.08 |
) |
|
|
(16 |
) |
|
(0.07 |
) |
|
(0.07 |
) |
Adjusted Net Income8 |
$ |
316 |
|
$ |
1.56 |
|
$ |
1.52 |
|
|
$ |
253 |
|
$ |
1.13 |
|
$ |
1.11 |
|
1 |
|
Items may not sum due to rounding |
2 |
|
Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 202 million and 223 million for the three months ended December 31, 2024 and 2023, respectively, and on weighted average number of common shares outstanding - diluted of 208 million and 227 million for the three months ended December 31, 2024 and 2023, respectively |
3 |
|
Excludes sale of land not associated with a generating asset |
4 |
|
2024 includes reserves for legal matters, offset by one-time gain from change in benefits; 2023 includes $(68) million of property insurance proceeds |
5 |
|
2024 gain of $(489) million was primarily driven by unrealized non-cash mark-to-market gains on economic hedges in the East due to large movements in natural gas and power prices; 2023 loss of $930 million was primarily driven by unrealized non-cash mark-to-market losses on economic hedges in the East due to large movements in natural gas and power prices |
6 |
|
Represents GAAP income tax expense |
7 |
Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits, consisting of incentive tax credit in connection with renewable projects and production tax credits for carbon recapture for pre-IRA periods, as well as non-recurring tax items like movements in valuation allowances. Other adjustments are shown on pre-tax basis |
|
8 |
Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders' |
Appendix Table A-4: Full Year 2024 Adjusted EBITDA Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss)1:
($ in millions, except per share amounts) |
Texas |
East |
West/
|
Vivint
|
Corp/Elim2 |
Total |
|||||||||||
Net Income/(Loss) |
$ |
534 |
|
$ |
1,805 |
|
$ |
97 |
|
$ |
113 |
$ |
(1,424 |
) |
$ |
1,125 |
|
Plus: |
|
|
|
|
|
|
|||||||||||
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
595 |
|
|
595 |
|
Income tax expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
323 |
|
|
323 |
|
Loss on debt extinguishment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
382 |
|
|
382 |
|
Depreciation and amortization1 |
|
323 |
|
|
158 |
|
|
114 |
|
|
767 |
|
41 |
|
|
1,403 |
|
ARO expense |
|
18 |
|
|
15 |
|
|
1 |
|
|
— |
|
— |
|
|
34 |
|
Contract and emission credit amortization, net |
|
9 |
|
|
58 |
|
|
11 |
|
|
— |
|
— |
|
|
78 |
|
EBITDA |
|
884 |
|
|
2,036 |
|
|
223 |
|
|
880 |
|
(83 |
) |
|
3,940 |
|
Stock-based compensation3 |
|
25 |
|
|
10 |
|
|
5 |
|
|
59 |
|
— |
|
|
99 |
|
Acquisition and divestiture integration and transaction costs3 |
|
— |
|
|
— |
|
|
— |
|
|
11 |
|
24 |
|
|
35 |
|
Cost to achieve3 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
28 |
|
|
28 |
|
Deactivation costs |
|
— |
|
|
20 |
|
|
2 |
|
|
— |
|
— |
|
|
22 |
|
Loss/(gain) on sale of assets4 |
|
4 |
|
|
— |
|
|
(204 |
) |
|
— |
|
— |
|
|
(200 |
) |
Other and non-recurring charges5 |
|
(22 |
) |
|
— |
|
|
9 |
|
|
50 |
|
(9 |
) |
|
28 |
|
Impairments |
|
7 |
|
|
— |
|
|
36 |
|
|
— |
|
— |
|
|
43 |
|
Mark-to-market (MtM) loss/(gain) on economic hedges6 |
|
684 |
|
|
(1,060 |
) |
|
170 |
|
|
— |
|
— |
|
|
(206 |
) |
Adjusted EBITDA |
$ |
1,582 |
|
$ |
1,006 |
|
$ |
241 |
|
$ |
1,000 |
$ |
(40 |
) |
$ |
3,789 |
|
Adjusted interest expense, net7 |
|
|
|
|
|
|
(598 |
) |
|||||||||
Depreciation and amortization |
|
|
|
|
|
|
(1,403 |
) |
|||||||||
Adjusted Income before income taxes |
|
|
|
|
|
|
1,788 |
|
|||||||||
Adjusted income tax expense8 |
|
|
|
|
|
|
(313 |
) |
|||||||||
Adjusted Net Income before Preferred Stock dividends |
|
|
|
|
|
|
1,475 |
|
|||||||||
Cumulative dividends attributable to Series A Preferred Stock |
|
|
|
|
|
|
(67 |
) |
|||||||||
Adjusted Net Income9 |
|
|
|
|
|
|
1,408 |
|
|||||||||
Weighted average number of common shares outstanding - basic |
|
|
|
|
|
|
206 |
|
|||||||||
Adjusted EPS |
|
|
|
|
|
$ |
6.83 |
|
|||||||||
1 |
|
Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization |
2 |
|
Beginning in the fourth quarter of 2024, Corporate now includes interest expense related to its consolidated debt financing activities and income tax expense related to its consolidated U.S. federal, foreign and state income taxes conforming to the way the Company internally manages and monitors the business. Prior periods amounts have been recast for comparative purposes to reflect this change |
3 |
|
Stock-based compensation of $2 million is reflected in cost to achieve and $1 million is reflected in acquisition and divestiture integration and transaction costs |
4 |
|
Excludes sale of land not associated with a generating asset |
5 |
|
Includes reserves for legal matters, offset by one-time gain from change in benefits in 2024 |
6 |
|
Gain of $(206) million was primarily driven by roll-off of 2024 positions as well as gains on economic hedges in the East due to large movements in natural gas and power prices, partially offset by losses on economic hedges in Texas and West due to movements in power prices |
7 |
Excludes mark-to-market gain on interest hedges of $3 million |
|
8 |
Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits, consisting of incentive tax credit in connection with renewable projects and production tax credits for carbon recapture for pre-IRA periods, as well as non-recurring tax items like movements in valuation allowances |
|
9 |
Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders' |
Full Year 2024 condensed financial information by Operating Segment:
($ in millions) |
Texas |
East |
West/
|
Vivint
|
Corp/Elim |
Total |
||||||||||
Revenue1 |
|
10,653 |
|
11,757 |
|
|
3,872 |
|
|
1,932 |
|
(52 |
) |
|
28,162 |
|
Cost of fuel, purchased energy and other cost of sales2 |
|
7,232 |
|
9,712 |
|
|
3,198 |
|
|
144 |
|
(25 |
) |
|
20,261 |
|
Economic gross margin |
|
3,421 |
|
2,045 |
|
|
674 |
|
|
1,788 |
|
(27 |
) |
|
7,901 |
|
Operations & maintenance and other cost of operations3 |
|
1,007 |
|
455 |
|
|
225 |
|
|
245 |
|
(3 |
) |
|
1,929 |
|
Selling, marketing, general and administrative4 |
|
629 |
|
560 |
|
|
199 |
|
|
504 |
|
6 |
|
|
1,898 |
|
Provision for credit losses5 |
|
203 |
|
25 |
|
|
46 |
|
|
38 |
|
— |
|
|
312 |
|
Other |
|
— |
|
(1 |
) |
|
(37 |
) |
|
1 |
|
10 |
|
|
(27 |
) |
Adjusted EBITDA |
$ |
1,582 |
$ |
1,006 |
|
$ |
241 |
|
$ |
1,000 |
$ |
(40 |
) |
$ |
3,789 |
|
1 |
|
Excludes MtM loss of $3 million and contract amortization of $29 million |
2 |
|
Includes TDSP expense, capacity and emission credits |
3 |
|
Excludes ARO expense of $34 million, deactivation costs of $22 million, stock-based compensation of $9 million and other and non-recurring charges of $5 million |
4 |
|
Excludes stock-based compensation of $90 million, cost to achieve of $28 million, other and non-recurring charges of $10 million and acquisition and divestiture integration and transaction costs of $5 million |
5 |
|
Excludes $2 million of bad debt related to integration |
The following table reconciles the Full Year 2024 condensed financial information to Adjusted EBITDA:
($ in millions) |
Condensed
|
Interest, tax,
|
MtM |
Deactivation |
Other adj.2 |
Adjusted
|
|||||||||||
Revenue |
$ |
28,130 |
$ |
29 |
|
$ |
3 |
|
$ |
— |
|
$ |
— |
|
$ |
28,162 |
|
Cost of operations (excluding depreciation and amortization shown below)1 |
|
20,101 |
|
(49 |
) |
|
209 |
|
|
— |
|
|
— |
|
|
20,261 |
|
Depreciation and amortization |
|
1,403 |
|
(1,403 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Gross margin |
|
6,626 |
|
1,481 |
|
|
(206 |
) |
|
— |
|
|
— |
|
|
7,901 |
|
Operations & maintenance and other cost of operations |
|
1,999 |
|
— |
|
|
— |
|
|
(22 |
) |
|
(48 |
) |
|
1,929 |
|
Selling, marketing, general & administrative |
|
2,031 |
|
— |
|
|
— |
|
|
— |
|
|
(133 |
) |
|
1,898 |
|
Provision for credit losses |
|
314 |
|
— |
|
|
— |
|
|
— |
|
|
(2 |
) |
|
312 |
|
Other |
|
1,157 |
|
(918 |
) |
|
— |
|
|
— |
|
|
(266 |
) |
|
(27 |
) |
Net Income/(Loss) |
$ |
1,125 |
$ |
2,399 |
|
$ |
(206 |
) |
$ |
22 |
|
$ |
449 |
|
$ |
3,789 |
|
1 |
|
Excludes operations & maintenance and other cost of operations of $1,999 million |
2 |
|
Other adj. includes loss on debt extinguishment of $382 million, stock-based compensation of $99 million, impairments of $43 million, acquisition and divestiture integration and transaction costs of $35 million, ARO expenses of $34 million, cost to achieve of $28 million, other and non-recurring charges of $28 million and gain on sale of assets $(200) million |
Appendix Table A-5: Full Year 2023 Adjusted EBITDA Reconciliation by Operating Segment and Consolidated Adjusted EPS Reconciliation
The following table summarizes the calculation of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss)1:
($ in millions, except per share amounts) |
Texas |
East |
West/
|
Vivint
|
Corp/Elim3 |
Total |
|||||||||||
Net Income/(Loss) |
$ |
3,094 |
|
$ |
(1,727 |
) |
$ |
(944 |
) |
$ |
31 |
$ |
(656 |
) |
$ |
(202 |
) |
Plus: |
|
|
|
|
|
|
|||||||||||
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
602 |
|
|
602 |
|
Income tax (benefit) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
(11 |
) |
|
(11 |
) |
(Gain) on debt extinguishment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
(109 |
) |
|
(109 |
) |
Depreciation and amortization1 |
|
348 |
|
|
167 |
|
|
99 |
|
|
645 |
|
36 |
|
|
1,295 |
|
ARO Expense |
|
15 |
|
|
12 |
|
|
— |
|
|
— |
|
— |
|
|
27 |
|
Contract and emission credit amortization, net |
|
11 |
|
|
100 |
|
|
14 |
|
|
— |
|
— |
|
|
125 |
|
EBITDA |
|
3,468 |
|
|
(1,448 |
) |
|
(831 |
) |
|
676 |
|
(138 |
) |
|
1,727 |
|
Stock-based compensation5 |
|
13 |
|
|
5 |
|
|
2 |
|
|
58 |
|
— |
|
|
78 |
|
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates |
|
— |
|
|
— |
|
|
15 |
|
|
— |
|
— |
|
|
15 |
|
Acquisition and divestiture integration and transaction costs5 |
|
— |
|
|
— |
|
|
— |
|
|
41 |
|
82 |
|
|
123 |
|
Cost to achieve |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
14 |
|
|
14 |
|
Deactivation costs |
|
— |
|
|
34 |
|
|
11 |
|
|
— |
|
— |
|
|
45 |
|
(Gain) on sale of assets6 |
|
(1,319 |
) |
|
(233 |
) |
|
— |
|
|
— |
|
— |
|
|
(1,552 |
) |
Other and non-recurring charges7 |
|
(157 |
) |
|
4 |
|
|
(1 |
) |
|
15 |
|
17 |
|
|
(122 |
) |
Impairments |
|
2 |
|
|
4 |
|
|
122 |
|
|
— |
|
— |
|
|
128 |
|
Mark to market (MtM) (gain)/loss on economic hedges8 |
|
(315 |
) |
|
2,414 |
|
|
764 |
|
|
— |
|
— |
|
|
2,863 |
|
Adjusted EBITDA |
$ |
1,692 |
|
$ |
780 |
|
$ |
82 |
|
$ |
790 |
$ |
(25 |
) |
$ |
3,319 |
|
Adjusted interest expense, net9 |
|
|
|
|
|
|
(606 |
) |
|||||||||
Depreciation and amortization |
|
|
|
|
|
|
(1,295 |
) |
|||||||||
Adjusted Income before income taxes |
|
|
|
|
|
|
1,418 |
|
|||||||||
Adjusted income tax expense10 |
|
|
|
|
|
|
(288 |
) |
|||||||||
Adjusted Net Income before Preferred Stock dividends |
|
|
|
|
|
|
1,130 |
|
|||||||||
Cumulative dividends attributable to Series A Preferred Stock |
|
|
|
|
|
|
(54 |
) |
|||||||||
Adjusted Net Income11 |
|
|
|
|
|
|
1,076 |
|
|||||||||
Weighted average number of common shares outstanding - basic |
|
|
|
|
|
|
228 |
|
|||||||||
Adjusted EPS |
|
|
|
|
|
$ |
4.72 |
|
|||||||||
1 |
|
Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization |
2 |
|
Vivint Smart Home acquired in March 2023 |
3 |
|
Beginning in the fourth quarter of 2024, Corporate now includes interest expense related to its consolidated debt financing activities and income tax expense related to its consolidated U.S. federal, foreign and state income taxes conforming to the way the Company internally manages and monitors the business. Prior periods amounts have been recast for comparative purposes to reflect this change |
5 |
|
Stock-based compensation of $25 million is reflected in acquisition and divestiture integration and transaction costs |
6 |
|
Excludes sale of land not associated with a generating asset |
7 |
Includes $(164) million of property insurance proceeds. For the year ended December 31, 2023, cash proceeds were $240 million |
|
8 |
Loss of $2.9 billion was primarily driven by roll-off of 2023 positions as well as losses on economic hedges in East and West as a result of decreases in natural gas and power prices, partially offset by gains on economic hedges in Texas due to large movements in ERCOT power prices |
|
9 |
Excludes mark-to-market gain on interest hedges of $4 million |
|
10 |
Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits, consisting of incentive tax credit in connection with renewable projects and production tax credits for carbon recapture for pre-IRA periods, as well as non-recurring tax items like movements in valuation allowances |
|
11 |
Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders' |
Full Year 2023 condensed financial information by Operating Segment:
($ in millions) |
Texas |
East |
West/
|
Vivint
|
Corp/Elim |
Total |
|||||||||||
Revenue2 |
$ |
10,476 |
|
$ |
12,522 |
|
$ |
4,178 |
|
$ |
1,549 |
$ |
(14 |
) |
$ |
28,711 |
|
Cost of fuel, purchased energy and other cost of sales3 |
|
7,048 |
|
|
10,795 |
|
|
3,652 |
|
|
116 |
|
(9 |
) |
|
21,602 |
|
Economic gross margin |
|
3,428 |
|
|
1,727 |
|
|
526 |
|
|
1,433 |
|
(5 |
) |
|
7,109 |
|
Operations & maintenance and other cost of operations4 |
|
1,005 |
|
|
427 |
|
|
252 |
|
|
184 |
|
(5 |
) |
|
1,863 |
|
Selling, marketing, general & administrative5 |
|
575 |
|
|
518 |
|
|
195 |
|
|
424 |
|
20 |
|
|
1,732 |
|
Provision for credit losses |
|
159 |
|
|
28 |
|
|
30 |
|
|
34 |
|
— |
|
|
251 |
|
Other |
|
(3 |
) |
|
(26 |
) |
|
(33 |
) |
|
1 |
|
5 |
|
|
(56 |
) |
Adjusted EBITDA |
$ |
1,692 |
|
$ |
780 |
|
$ |
82 |
|
$ |
790 |
$ |
(25 |
) |
$ |
3,319 |
|
1 |
|
Vivint Smart Home acquired in March 2023 |
2 |
|
Excludes MtM gain of $(144) million and contract amortization of $32 million |
3 |
|
Includes TDSP expenses, capacity and emissions credits |
4 |
|
Excludes deactivation costs of $45 million, ARO expense of $27 million, stock-based compensation of $8 million and other and non-recurring charges of $(162) million |
5 |
|
Excludes stock-based compensation of $70 million, other and non-recurring charges of $22 million, cost to achieve of $14 million and acquisition and divestiture integration and transaction costs of $5 million |
The following table reconciles the Full Year 2023 condensed financial information to Adjusted EBITDA:
($ in millions) |
Condensed
|
Interest, tax,
|
MtM |
Deactivation |
Other adj.2 |
Adjusted
|
||||||||||||
Revenue |
$ |
28,823 |
|
$ |
32 |
|
$ |
(144 |
) |
$ |
— |
|
$ |
— |
|
$ |
28,711 |
|
Cost of operations (excluding depreciation and amortization shown below)1 |
|
24,702 |
|
|
(93 |
) |
|
(3,007 |
) |
|
— |
|
|
— |
|
|
21,602 |
|
Depreciation and amortization |
|
1,295 |
|
|
(1,295 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Gross margin |
|
2,826 |
|
|
1,420 |
|
|
2,863 |
|
|
— |
|
|
— |
|
|
7,109 |
|
Operations & maintenance and other cost of operations |
|
1,781 |
|
|
— |
|
|
— |
|
|
(45 |
) |
|
127 |
|
|
1,863 |
|
Selling, marketing, general & administrative |
|
1,843 |
|
|
— |
|
|
— |
|
|
— |
|
|
(111 |
) |
|
1,732 |
|
Provision for credit losses |
|
251 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
251 |
|
Other |
|
(847 |
) |
|
(591 |
) |
|
— |
|
|
— |
|
|
1,382 |
|
|
(56 |
) |
Net (Loss)/Income |
$ |
(202 |
) |
$ |
2,011 |
|
$ |
2,863 |
|
$ |
45 |
|
$ |
(1,398 |
) |
$ |
3,319 |
|
1 |
|
Excludes operations & maintenance and other cost of operations of $1,781 million |
2 |
|
Other adj. includes impairments of $128 million, acquisition and divestiture integration and transaction costs of $123 million, stock-based compensation of $78 million, ARO expense of $27 million, NRG share of adjusted EBITDA in unconsolidated affiliates of $15 million, cost to achieve of $14 million, gain on debt extinguishment $(109) million, other and non-recurring charges of $(122) million and gain on sale of assets of $(1,552) million |
Appendix Table A-6: Full Year 2024 and 2023 Adjusted Net Income and Adjusted EPS Reconciliations
The following table summarizes the calculation of Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income/(Loss)1:
|
Twelve Months Ended |
||||||||||||||||||
($ in millions, except per share amounts) |
December
|
Earnings per
|
Earnings per
|
|
December
|
(Loss)/Earnings
|
(Loss)/Earnings
|
||||||||||||
Net Income/(Loss) Available for Common Stockholders |
$ |
1,058 |
|
$ |
5.14 |
|
$ |
4.99 |
|
|
$ |
(256 |
) |
$ |
(1.12 |
) |
$ |
(1.12 |
) |
Plus: |
|
|
|
|
|
|
|
||||||||||||
Dilutive impact adjustment on Net (Loss) Available for Common Stockholders3 |
|
|
|
|
|
|
|
0.01 |
|
||||||||||
Cumulative dividends attributable to Series A Preferred Stock |
|
67 |
|
|
0.33 |
|
|
0.32 |
|
|
|
54 |
|
|
0.24 |
|
|
0.23 |
|
Loss/(gain) on debt extinguishment |
|
382 |
|
|
1.85 |
|
|
1.80 |
|
|
|
(109 |
) |
|
(0.48 |
) |
|
(0.47 |
) |
ARO expense |
|
34 |
|
|
0.17 |
|
|
0.16 |
|
|
|
27 |
|
|
0.12 |
|
|
0.12 |
|
Contract and emission credit amortization, net |
|
78 |
|
|
0.38 |
|
|
0.37 |
|
|
|
125 |
|
|
0.55 |
|
|
0.54 |
|
Stock-based compensation4 |
|
99 |
|
|
0.48 |
|
|
0.47 |
|
|
|
78 |
|
|
0.34 |
|
|
0.34 |
|
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates |
|
— |
|
|
— |
|
|
— |
|
|
|
15 |
|
|
0.07 |
|
|
0.07 |
|
Acquisition and divestiture integration and transaction costs4 |
|
35 |
|
|
0.17 |
|
|
0.17 |
|
|
|
123 |
|
|
0.54 |
|
|
0.53 |
|
Cost to achieve4 |
|
28 |
|
|
0.14 |
|
|
0.13 |
|
|
|
14 |
|
|
0.06 |
|
|
0.06 |
|
Deactivation costs |
|
22 |
|
|
0.11 |
|
|
0.10 |
|
|
|
45 |
|
|
0.20 |
|
|
0.20 |
|
(Gain) on sale of assets5 |
|
(200 |
) |
|
(0.97 |
) |
|
(0.94 |
) |
|
|
(1,552 |
) |
|
(6.81 |
) |
|
(6.75 |
) |
Other and non-recurring charges6 |
|
28 |
|
|
0.14 |
|
|
0.13 |
|
|
|
(122 |
) |
|
(0.54 |
) |
|
(0.53 |
) |
Impairments |
|
43 |
|
|
0.21 |
|
|
0.20 |
|
|
|
128 |
|
|
0.56 |
|
|
0.56 |
|
Mark to market (MtM) (gain)/loss on economic hedges7 |
|
(206 |
) |
|
(1.00 |
) |
|
(0.97 |
) |
|
|
2,863 |
|
|
12.56 |
|
|
12.45 |
|
Mark-to-market (MtM) (gains) on interest hedges |
|
(3 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
|
(4 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Income tax expense/(benefit)8 |
|
323 |
|
|
1.57 |
|
|
1.52 |
|
|
|
(11 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
Adjusted Income before income taxes |
|
1,788 |
|
$ |
8.68 |
|
$ |
8.43 |
|
|
|
1,418 |
|
$ |
6.22 |
|
$ |
6.17 |
|
Adjusted income tax expense9 |
|
(313 |
) |
|
(1.52 |
) |
|
(1.48 |
) |
|
|
(288 |
) |
|
(1.26 |
) |
|
(1.25 |
) |
Adjusted Net Income before Preferred Stock dividends |
|
1,475 |
|
$ |
7.16 |
|
$ |
6.96 |
|
|
|
1,130 |
|
$ |
4.96 |
|
$ |
4.91 |
|
Cumulative dividends attributable to Series A Preferred Stock |
|
(67 |
) |
|
(0.33 |
) |
|
(0.32 |
) |
|
|
(54 |
) |
|
(0.24 |
) |
|
(0.23 |
) |
Adjusted Net Income10 |
$ |
1,408 |
|
$ |
6.83 |
|
$ |
6.64 |
|
|
$ |
1,076 |
|
$ |
4.72 |
|
$ |
4.68 |
|
1 |
|
Items may not sum due to rounding |
2 |
|
Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 206 million and 228 million for the twelve months ended December 31, 2024 and 2023, respectively, and on weighted average number of common shares outstanding - diluted of 212 million and 230 million for the twelve months ended December 31, 2024 and 2023, respectively |
3 |
|
Includes the potential dilutive impacts of equity compensation of 2 million shares for the twelve months ended December 31, 2023. Under GAAP when there is a net loss, dilutive securities are not included in the diluted loss per share calculation as they are anti-dilutive. As Adjusted Net Income is in an income position and not a loss position, this line item reflects the impact of the anti-dilutive securities as if they were dilutive |
4 |
|
2024 stock-based compensation of $2 million is reflected in cost to achieve and $1 million is reflected in acquisition and divestiture integration and transaction; 2023 stock-based compensation of $25 million is reflected in acquisition and divestiture integration and transaction costs |
5 |
|
Excludes sale of land not associated with a generating asset |
6 |
|
2024 includes reserves for legal matters, offset by one-time gain from change in benefits; 2023 includes $(164) million of property insurance proceeds |
7 |
2024 gain of $(206) million was primarily driven by roll-off of 2024 positions as well as gains on economic hedges in the East due to large movements in natural gas and power prices, partially offset by losses on economic hedges in Texas and West due to movements in ERCOT and West power prices; 2023 loss of $2.9 billion was primarily driven by roll-off of 2023 positions as well as losses on economic hedges in East and West as a result of decreases in natural gas and power prices, partially offset by gains on economic hedges in Texas due to large movements in ERCOT power prices |
|
8 |
Represents GAAP income tax expense/(benefit) |
|
9 |
Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits, consisting of incentive tax credit in connection with renewable projects and production tax credits for carbon recapture for pre-IRA periods, as well as non-recurring tax items like movements in valuation allowances. Other adjustments are shown on pre-tax basis |
|
10 |
Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders' |
Appendix Table A-7: Three Months Ended December 31, 2024 and 2023 Free Cash Flow before Growth Investments (FCFbG)
The following table summarizes the calculation of FCFbG, providing a reconciliation to Cash Provided by Operating Activities and Adjusted Net Income:
|
|
Three Months Ended |
||||||
(In millions) |
|
December 31, 2024 |
|
December 31, 2023 |
||||
Adjusted Net Income |
|
$ |
316 |
|
|
$ |
253 |
|
Cumulative dividends attributable to Series A Preferred Stock |
|
|
16 |
|
|
|
16 |
|
Adjusted interest expense, net less cash interest payments/receipts |
|
|
26 |
|
|
|
64 |
|
Depreciation and amortization |
|
|
358 |
|
|
|
374 |
|
Adjusted income tax expense less income tax (payments) |
|
|
(1 |
) |
|
|
59 |
|
Gross capitalized contract costs1 |
|
|
(147 |
) |
|
|
(127 |
) |
Collateral / working capital / other assets and liablities2 |
|
|
384 |
|
|
|
(398 |
) |
Cash provided by operating activities |
|
|
952 |
|
|
|
241 |
|
Net receipts from settlement of acquired derivatives that include financing elements |
|
|
(1 |
) |
|
|
10 |
|
Acquisition and divestiture integration and transaction costs3 |
|
|
50 |
|
|
|
36 |
|
Sale of land |
|
|
— |
|
|
|
22 |
|
GenOn pension |
|
|
3 |
|
|
|
— |
|
Adjustment for change in collateral |
|
|
(325 |
) |
|
|
618 |
|
Nuclear decommissioning trust liability |
|
|
— |
|
|
|
1 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(4 |
) |
|
|
2 |
|
Adjusted cash provided by operating activities |
|
|
675 |
|
|
|
930 |
|
Maintenance capital expenditures, net4 |
|
|
(62 |
) |
|
|
(20 |
) |
Environmental capital expenditures |
|
|
(6 |
) |
|
|
(2 |
) |
Cost of acquisition |
|
|
17 |
|
|
|
34 |
|
Free Cash Flow before Growth Investments (FCFbG) |
|
$ |
624 |
|
|
$ |
942 |
|
1 |
|
Gross capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, modification of existing 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 to depreciation and amortization |
2 |
|
Includes the cash impact of net deferred revenue |
3 |
|
Three months ended 12/31/24 includes $55 million cash taxes from the sale of Airtron and $5 million cost to achieve payments; three months ended 12/31/23 includes $14 million cost to achieve payments and $14 million of STP |
4 |
|
Three months ended 12/31/23 is net of W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment of $67 million |
Appendix Table A-8: Twelve Months Ended December 31, 2024 and 2023 Free Cash Flow before Growth Investments (FCFbG)
The following table summarizes the calculation of FCFbG, providing a reconciliation to Cash Provided/(Used) by Operating Activities and Adjusted Net Income:
|
|
Twelve Months Ended |
||||||
(In millions) |
|
December 31, 2024 |
|
December 31, 2023 |
||||
Adjusted Net Income |
|
$ |
1,408 |
|
|
$ |
1,076 |
|
Cumulative dividends attributable to Series A Preferred Stock |
|
|
67 |
|
|
|
54 |
|
Adjusted interest expense, net less cash interest payments/receipts |
|
|
28 |
|
|
|
124 |
|
Depreciation and amortization |
|
|
1,403 |
|
|
|
1,295 |
|
Adjusted income tax expense less income tax payments |
|
|
129 |
|
|
|
238 |
|
Gross capitalized contract costs1 |
|
|
(846 |
) |
|
|
(749 |
) |
Collateral / working capital / other2 |
|
|
117 |
|
|
|
(2,259 |
) |
Cash provided/(used) by operating activities |
|
|
2,306 |
|
|
|
(221 |
) |
Net receipts from settlement of acquired derivatives that include financing elements |
|
|
(3 |
) |
|
|
342 |
|
Acquisition and divestiture transaction and integration costs3 |
|
|
113 |
|
|
|
134 |
|
Proceeds from sale of land |
|
|
9 |
|
|
|
22 |
|
Encina site improvement |
|
|
— |
|
|
|
7 |
|
GenOn pension |
|
|
21 |
|
|
|
— |
|
Adjustment for change in collateral |
|
|
(245 |
) |
|
|
1,806 |
|
Nuclear decommissioning trust liability |
|
|
— |
|
|
|
(12 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(3 |
) |
|
|
2 |
|
Adjusted cash provided by operating activities |
|
|
2,198 |
|
|
|
2,080 |
|
Maintenance capital expenditures, net4 |
|
|
(240 |
) |
|
|
(276 |
) |
Environmental capital expenditures |
|
|
(21 |
) |
|
|
(3 |
) |
Cost of acquisition |
|
|
125 |
|
|
|
124 |
|
Free Cash Flow before Growth Investments (FCFbG) |
|
$ |
2,062 |
|
|
$ |
1,925 |
|
1 |
|
Gross capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, modification of existing 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 to depreciation and amortization |
2 |
|
Includes the cash impact of net deferred revenue |
3 |
|
Twelve months ended 12/31/24 includes $55 million cash taxes from the sale of Airtron and $24 million cost to achieve payments; twelve months ended 12/31/23 excludes $20 million non-cash stock-based compensation, includes $14 million cost to achieve payments, $14 million of STP, and $3 million of Astoria fees |
4 |
|
Twelve months ended 12/3/24 is net of W.A. Parish Unit 8 recoveries related to property, plant and equipment of $3 million; twelve months ended 12/31/23 is net of W.A. Parish Unit 8 and Limestone Unit 1 insurance recoveries related to property, plant and equipment of $240 million |
Appendix Table A-9: Twelve Months Ended December 31, 2024 Sources and Uses of Liquidity
The following table summarizes the sources and uses of liquidity for the twelve months ending December 31, 2024:
($ in millions) |
Twelve Months Ended
|
||
Sources: |
|
||
Adjusted cash provided by operating activities |
$ |
2,198 |
|
Proceeds from issuance of long-term debt |
|
3,200 |
|
Proceeds from sale of assets, net of cash disposed |
|
492 |
|
Increase and change in availability under revolving credit facility and collective collateral facilities |
|
191 |
|
Cash collateral returned in support of energy risk management activities |
|
132 |
|
|
|
||
Uses: |
|
||
Payments for current and long-term debt |
|
(3,255 |
) |
Payments for share repurchase activity and excise tax |
|
(935 |
) |
Payments of dividends to preferred and common stockholders |
|
(405 |
) |
Payments for debt extinguishment costs |
|
(262 |
) |
Maintenance and environmental capital expenditures, net1 |
|
(261 |
) |
Investment and integration capital expenditures |
|
(208 |
) |
Acquisition and divestiture integration and transaction costs2 |
|
(113 |
) |
Payments for shares repurchased in lieu of tax withholdings |
|
(50 |
) |
Payment of debt issuance costs |
|
(45 |
) |
Payments for acquisitions of businesses and assets, net of cash acquired |
|
(38 |
) |
Net purchases of emission allowances |
|
(18 |
) |
Other investing and financing |
|
(23 |
) |
Change in Total Liquidity |
$ |
600 |
|
1 |
|
Net of $3 million of W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment |
2 |
|
Twelve months ended 12/31/24 includes $55 million cash taxes from the sale of Airtron and $24 million cost to achieve payments |
Appendix Table A-10: 2025 Guidance Reconciliation
The following table summarizes the 2025 Guidance calculations of Adjusted EBITDA, Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income1:
|
|
2025 |
||
($ in millions, except per share amounts) |
|
Guidance |
||
Net Income2 |
|
$ |
1,025 - 1,225 |
|
Interest expense, net |
|
635 |
|
|
Income tax expense3 |
|
390-440 |
|
|
Depreciation and amortization1 |
|
1,400 |
|
|
ARO expense |
|
25 |
|
|
Stock-based compensation |
|
100 |
|
|
Acquisition and divestiture integration and transaction costs |
|
20 |
|
|
Other4 |
|
130 |
|
|
Adjusted EBITDA |
|
$3,725 - $3,975 |
||
Adjusted interest expense, net5 |
|
(635 |
) |
|
Depreciation and amortization |
|
(1,400 |
) |
|
Adjusted Income before income taxes |
|
$1,690 - $1,940 |
||
Adjusted income tax expense6 |
|
(293) - (343 |
) |
|
Adjusted Net Income before Preferred Stock dividends |
|
$1,397 - $1,597 |
||
Cumulative dividends attributable to Series A Preferred Stock |
|
(67 |
) |
|
Adjusted Net Income7 |
|
$1,330 - $1,530 |
||
Weighted average number of common shares outstanding - basic |
|
197 |
|
|
Adjusted EPS |
|
$6.75 - $7.75 |
||
1 |
|
Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization |
2 |
|
The Company does not guide to Net Income due to the impact of fair value adjustments related to derivatives in a given year. For purposes of guidance, fair value adjustments related to derivatives are assumed to be zero |
3 |
|
Represents anticipated GAAP income tax expense |
4 |
|
Includes adjustments for sale of assets, adjustments to reflect NRG share of Adjusted EBITDA in unconsolidated affiliates, deactivation costs and other and non-recurring expenses |
5 |
|
Adjusted interest expense excludes mark-to-market gains/losses on interest hedges |
6 |
|
Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits, consisting of incentive tax credit in connection with renewable projects and production tax credits for carbon recapture for pre-IRA periods, as well as non-recurring tax items like movements in valuation allowances. Other adjustments are shown on pre-tax basis |
7 |
Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see appendix table A-11 for GAAP reconciliation |
Appendix Table A-11: 2025 Guidance Adjusted Net Income and Adjusted EPS Reconciliation
The following table summarizes the 2025 Guidance calculations of Adjusted Net Income and Adjusted EPS and provides a reconciliation from Net Income1:
|
|
2025 Guidance |
||||
($ in millions, except per share amounts) |
|
Full Year 2025 |
Earnings per
|
|||
Net Income3 |
|
$1,025 - $1,225 |
N/A |
|
||
Cumulative dividends attributable to Series A Preferred Stock |
|
(67 |
) |
N/A |
|
|
Net Income Available for Common Stockholders |
|
$958 - $1,158 |
$4.85 - $5.85 |
|||
Plus: |
|
|
|
|||
Cumulative dividends attributable to Series A Preferred Stock |
|
67 |
|
0.34 |
|
|
ARO Expense |
|
25 |
|
0.13 |
|
|
Stock-based compensation |
|
100 |
|
0.51 |
|
|
Acquisition and divestiture integration and transaction costs |
|
20 |
|
0.10 |
|
|
Other4 |
|
130 |
|
0.66 |
|
|
Income tax expense5 |
|
390 - 440 |
|
1.98 - 2.23 |
||
Adjusted Income before income taxes |
|
$1,690 - $1,940 |
$8.70 - $9.70 |
|||
Adjusted income tax expense6 |
|
(293) - (343 |
) |
(1.49) - (1.74) |
||
Adjusted Net Income before Preferred Stock dividends |
|
$1,397 - $1,597 |
$7.10 - $8.10 |
|||
Cumulative dividends attributable to Series A Preferred Stock |
|
(67 |
) |
(0.34 |
) |
|
Adjusted Net Income7 |
|
$1,330 - $1,530 |
$6.75 - $7.75 |
|||
1 |
|
Items may not sum due to rounding |
2 |
|
Earnings per share amount is based on weighted average number of common shares outstanding - basic of 197 million for 2025 guidance purposes |
3 |
|
The Company does not guide to Net Income due to the impact of fair value adjustments related to derivatives in a given year. For purposes of guidance, fair value adjustments related to derivatives are assumed to be zero |
4 |
|
Includes adjustments for sale of assets, adjustments to reflect NRG share of Adjusted EBITDA in unconsolidated affiliates, deactivation costs and other non-recurring expenses |
5 |
|
Represents anticipated GAAP income tax expense |
6 |
|
Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG’s tax credits, consisting of incentive tax credit in connection with renewable projects and production tax credits for carbon recapture for pre-IRA periods, as well as non-recurring tax items like movements in valuation allowances. Other adjustments are shown on pre-tax basis |
7 |
Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders' |
Appendix Table A-12: 2025 Guidance Reconciliation
The following table summarizes the calculation of FCFbG providing a reconciliation to Cash Provided by Operating Activities and Adjusted Net Income:
|
|
2025 |
||
($ in millions) |
|
Guidance |
||
Adjusted Net Income |
|
$ |
1,330 - 1,530 |
|
Cumulative dividends attributable to Series A preferred stock |
|
67 |
|
|
Adjusted interest expense, net less cash interest payments/receipts |
|
25 |
|
|
Depreciation and amortization |
|
1,400 |
|
|
Adjusted income tax expense less income tax payments |
|
168 - 218 |
|
|
Gross capitalized contract costs1 |
|
(895 |
) |
|
Working capital/other assets and liabilities2 |
|
(10 |
) |
|
Cash provided by operating activities3 |
|
2,085 - 2,335 |
||
Acquisition and other costs2 |
|
35 |
|
|
Adjusted cash provided by operating activities |
|
2,120 - 2,370 |
||
Maintenance capital expenditures, net4 |
|
(240) - (260 |
) |
|
Environmental capital expenditures |
|
(20) - (30 |
) |
|
Cost of acquisition |
|
130 |
|
|
Free Cash Flow before Growth Investments (FCFbG) |
|
$ |
1,975 - 2,225 |
|
1 |
|
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 to depreciation and amortization |
2 |
|
Working capital / other assets and liabilities include payments for acquisition and divestiture integration and transaction costs which is adjusted in acquisition and other costs and includes net deferred revenues |
3 |
|
Excludes fair value adjustments related to derivatives and changes in collateral deposits in support of risk management activities |
4 |
|
Net of W.A. Parish Unit 8 expected insurance recoveries related to property, plant and equipment |
Non-GAAP Financial Measures
NRG reports its financial results in accordance with the accounting principles generally accepted in the United States (GAAP) and supplements with certain non-GAAP financial measures. These measures are not recognized in accordance with GAAP and should not be viewed in isolation or as an alternative to GAAP measures of performance. In addition, other companies may calculate non-GAAP financial measures differently than NRG does, limiting their usefulness as a comparative measure.
NRG uses the following non-GAAP measures to provide additional insight into financial performance:
- Adjusted EBITDA: Defined as EBITDA (earnings before interest, taxes, depreciation, and amortization, impact of asset retirement obligation expenses and contract amortization consisting of amortization of power and fuel contracts and amortization of emission allowances) with further adjustments for stock-based compensation, 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, gains or losses on the repurchase, modification or extinguishment of debt, restructuring costs, and other non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments or non-controlling interests. Adjusted EBITDA is intended to facilitate period-to-period comparisons and is widely used by investors for performance assessment.
- Adjusted Net Income: Defined as net income available to common shareholders excluding the impact of asset retirement obligation expenses, contract amortization consisting of amortization of power and fuel contracts and amortization of emission allowances, stock-based compensation, 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, 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 and non-controlling interests.
- Adjusted Earnings per Share (EPS): Defined as Adjusted Net Income, divided by the average basic common shares outstanding. The Company believes that using average basic common shares outstanding offers a more accurate view of recurring per-share earnings, as it better reflects the impact of the fully hedged convertible note callable in mid-2025.
- Adjusted Cash Provided/(Used) by Operating Activities: Defined as 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, adjustment for change in collateral, and the impact of extraordinary, unusual or non-recurring items.
- Free Cash Flow before Growth Investments: Defined as Adjusted Cash provided/(used) by operating activities less maintenance and environmental capital expenditures, net of funding and insurance recoveries related to property, plant and equipment, and adjustments to exclude cost of acquisition related to growth.
Management believes these non-GAAP financial measures are useful to investors and other users of NRG's financial statements in evaluating the Company’s operating performance and growth, as well as the impact of the Company’s capital allocation program. They provide an additional tool to compare business performance across periods and adjust for items that management does not consider indicative of NRG’s future operating performance. Management uses these non-GAAP financial measures to assist in comparing financial 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.
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