Nrg Energy, Inc. · NYSE:NRG
Nrg Energy — Q2 2021 Earnings Presentation
27 slides from Nrg Energy's earnings presentation, Aug 5, 2021
Slide 1: Second Quarter 2021 Earnings Presentation
NRG Energy Inc. Second Quarter 2021 Earnings Presentation August 5, 2021 © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements In addition to historical information, the information presented in this presentation 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, ex
Slide 3: Agenda
Agenda Business Review Mauricio Gutierrez, President and CEO Financial Review Alberto Fornaro, EVP and CFO Closing Remarks Mauricio Gutierrez, President and CEO Q&A © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 2
Slide 4: Key Messages
NRG 2Q21 Earnings Key Messages Business Review Financial Review Closing Remarks Appendix Integrated Platform Delivers Strong Results; Reaffirming 2021 Guidance Texas Signed into Law Constructive Legislation to Improve System-wide Reliability and to Protect Customers Investor Day Introduced Compellin
Slide 5: Business Highlights
NRG 2Q21 Earnings Business Highlights Business Review Financial Review Closing Remarks Appendix 2Q Business Highlights Year-over-Year Results ($ millions) Adjusted EBITDA Financial and Operational Results • Top decile safety performance Second Quarter First Half of Year • Advancing Winter Storm Ur
Slide 6: Market Update
NRG 2Q21 Earnings Market Update Business Review Financial Review Closing Remarks Appendix Texas – Improving Market Design East – Streamlining Supply Portfolio • Reforms to Improve System-Wide Reliability PJM Capacity Auction Results • Texas signed SB2 & SB3 into law, June 8th $192 $186 $191 • Requir
Slide 7: Investor Day 2021: A Consumer Service Company
Investor Day 2021 NRG 2Q21 Earnings Business Review Financial Review A Consumer Service Company Closing Remarks Appendix …Visible and Achievable 5-Year Strategic Advantaged Consumer Platform… Priorities Roadmap Optimize Core • Direct Energy Integration/ 6 MM Synergies #1 #3 2021–2022+ Residential Re
Slide 8: Investor Day 2021: Executing Strategic and Financial Priorities
Investor Day 2021 NRG 2Q21 Earnings Business Review Financial Review Executing Strategic and Financial Priorities Closing Remarks Appendix Plan Creates Significant Recurring …Compelling Value Proposition Excess Free Cash Flow… 2022-2025 Cumulative ~80% Pro Forma Excess Cash Market Cap Opportunistic
Slide 9: Financial Review
Financial Review © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 8
Slide 10: Financial Update
NRG 2Q21 Earnings Financial Update Business Review Financial Review Closing Remarks Appendix ($ millions) Three Months Ended Six Months Ended Reaffirming June 30, June 30, June 30, June 30, 2021 Guidance 2021 2020 2021 2020 Texas $321 $378 $574 $573 $1,425 - 1,575 East/West/Services/Other1 335 196 6
Slide 11: 2021 Capital Allocation
NRG 2Q21 Earnings 2021 Capital Allocation Business Review Financial Review Closing Remarks Appendix ($ millions) No change from Prior Quarter Indicates change from Prior Quarter $2,375 $120 $150 $493 Agua Sale Proceeds1 $496 $3 Working $450 Storm $1,540 Capital Uri CAFA 2021 FCFbG Adjustment Impact
Slide 12: Corporate Credit Profile & Liquidity
NRG 2Q21 Earnings Corporate Credit Profile & Liquidity Business Review Financial Review Closing Remarks Appendix ($ millions) 2021 Guidance Corporate Debt1 $8,855 Debt reduction (2021 Capital Allocation) (255) Minimum cash balance (650) Corporate Net Debt $7,950 Adjusted EBITDA2 $2,500 Other Adjustm
Slide 13: Closing Remarks
Closing Remarks © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 12
Slide 14: 2021 Priorities
NRG 2Q21 Earnings 2021 Priorities Business Review Financial Review Closing Remarks Appendix Deliver on Financial and Operational Objectives Execute on Direct Energy Objectives $135 MM EBITDA-accretive synergies ($300 MM 2023 run-rate) – on track Perfect and Grow Integrated Platform Advance
Slide 15: Appendix
Appendix © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 14
Slide 16: Committed to Sustainability
NRG 2Q21 Earnings Committed to Sustainability Business Review Financial Review Closing Remarks Appendix NRG Sustainability Framework Sustainable Sustainable Sustainable Sustainable Sustainable Business Operations Customers Suppliers Workplace Industry-Leading Disclosure Environmental Leadership1 Div
Slide 17: Capacity Clears & Unsold
NRG 2Q21 Earnings Capacity Clears & Unsold Business Review Financial Review Closing Remarks Appendix Capacity Revenue by Calendar1 Year ($ MM) Market 2021 2022 PJM $299 $171 ISO-NE $89 $75 Illustrative: NYISO 2 $162 $145 Assumes uncleared capacity clears at current CAISO2 $59 $67 market levels Estim
Slide 18: Recourse Debt Maturity Schedule
NRG 2Q21 Earnings Recourse Debt Maturity Schedule Business Review Financial Review Closing Remarks Appendix ($ millions) $2,130 $1,733 $1,000 $1,030 $1,041 $821 $600 $500 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Therafter Recourse Debt Principal 7.25% Senior notes, due 2026 $1,000 6.62
Slide 19: Direct Energy Integration
Direct Energy Integration NRG 2Q21 Earnings Business Review Financial Review Advancing Customer Focused Strategy Closing Remarks Appendix Integration Plan On Track Direct Energy Integration Scorecard • Cost Savings 2021 2022 2023 / As of 06/30/2021 2021 Reaffirming full plan targets: $300 MM of re
Slide 20: 2Q21 Business Metrics
NRG 2Q21 Earnings 2Q21 Business Metrics Business Review Financial Review Closing Remarks Appendix Home & Business Volumes Texas East / Other Electric Natural Gas 73% 14 27% 35% 23 65% 25 353 TWh TWh MMDth MMDth Home / Residential Business / C&I Home / Residential Business / C&I 37 TWh 379 MMDth Elec
Slide 21: Appendix: Reg. G Schedules
Appendix: Reg. G Schedules © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 20
Slide 22: Reg. G: 2021 NRG Guidance
NRG 2Q21 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-1: 2021 NRG Guidance The following table summarizes the calculation of Free Cash Flow before Growth and provides a reconciliation to Adjusted EBITDA and to Net (Loss)/Income: 2021 ($ millions) Guidanc
Slide 23: Reg. G: Adjusted EBITDA Reconciliation, Three Months
NRG 2Q21 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-2: 3 months ended 06/31/21 Adjusted EBITDA Reconciliation by Operating Segment The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss): Thr
Slide 24: Reg. G: Adjusted EBITDA Reconciliation, Six Months
NRG 2Q21 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-3: 6 months ended 06/30/21 Adjusted EBITDA Reconciliation by Operating Segment The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss): Six
Slide 25: Reg. G: 2021 YTD Free Cash Flow before Growth
NRG 2Q21 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-4: 2021 YTD Free Cash Flow before Growth The following table summarizes the calculation of Free Cash Flow before Growth and provides a reconciliation to Cash provided by operating activities: 6 Months
Slide 26: Reg. G
NRG 2Q21 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix 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
Slide 27: Reg. G
NRG 2Q21 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Adjusted cash flow from operating activities is a non-GAAP measure NRG provides to show cash from operations with the reclassification of net payments of derivative contracts acquired in business combinations from fin