Nrg Energy, Inc. · NYSE:NRG
Nrg Energy — Investor Day (June 2023)
77 slides from Nrg Energy's investor day presentation, Jun 22, 2023
Slide 1: Investor Day 2023
0 | Investor Day 2023
Slide 2: Investor Day 2023 - June 22, 2023
I N V E S T O R R E L AT I O N S Kevin Cole INVESTOR DAY 2023 June 22, 2023 1 | Investor Day 2023
Slide 3: Agenda
AG E N D A Opening & Safe Harbor – Kevin Cole 9:00 a.m. ET Investor Relations Highlights, Strategy & Execution – Mauricio Gutierrez 9:05 a.m. ET President & Chief Executive Officer Home Energy – Elizabeth Killinger 9:35 a.m. ET Executive Vice President, NRG Home Energy Smart Home – Rasesh Patel 9:45
Slide 4: Safe Harbor
S AF E H AR B O R 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 Securities Exchange Act of 1934. These statements involve estimates, expe
Slide 5: NRG: Investor Day 2023 - Mauricio Gutierrez
NRG: Investor Day 2023 MAURICIO GUTIERREZ President & Chief Executive Officer 4 | Investor Day 2023
Slide 6: Key Messages
K E Y M E S S AG E S • *New: Revising capital allocation framework with 80% of excess cash available for allocation after debt reduction returned to shareholders. Post Vivint, NRG now has line-of-sight on investment needs Significant Capital • *New: Increasing share repurchase authorization from $1.
Slide 7: Strategic Plan Summary
S T R AT E G I C P L AN S U M M ARY 1 2 3 Optimize Integrated Grow Energy and Increase Return Energy Model Home Services of Capital Optimize our integrated energy model to Build on core retail energy and expand Clear and transparent capital provide stable retail margins further into the home allocat
Slide 8: Compelling Value Proposition
C O M P E L L I N G VAL U E P R O P O S I T I O N Cumulative Capital Return ($ Bn) Dividend Per Share2 Cumulative Excess Cash Available for Share Repurchases & Dividends Allocation after Deleveraging >100% of Market Cap1 over Next Five Years $11.7 $11.7 7-9% Dividend Per Share $8.2 $2.1 $1.8 $ $8.2
Slide 9: Strategy Update
S T R AT E G Y U P D AT E 8 | Investor Day 2023 Highlights | Strategy | Execution | Home | Smart Home | Business | Financial | Closing
Slide 10: Evolving Our Business
E V O LV I N G O U R B U S I N E S S 2018 2021 2023 Reposition to Focus Evolve with the Home Execute on Identified on the Customer “Test & Learn” Energy and Home Opportunities 9 | Investor Day 2023 Highlights | Strategy | Execution | Home | Smart Home | Business | Financial | Closing
Slide 11: Update: Sector Trends
U P D AT E : S E C T O R T R E N D S ‘Electrification’ Is Upon Us ▪ Electricity share of energy expected to double by 20501 ▪ Acceleration of smarter homes: 50% of US homes now have ‘Smart Home’ Technologies Are Here To Stay “smart home” equipment, up from 25% in 20172 ▪ 46% of consumers say they wo
Slide 12: Update: Test & Learn Insights
U P D AT E : T E S T & L E AR N I N S I G H T S ▪ Core technology platform and controllable devices needed to Core Technology Is Necessary fully optimize home and customer experience ▪ Fully outsourced/partner models limit access to customer and Customer Relationship Ownership data; need direct rela
Slide 13: Update: Expanding Capabilities
U P D AT E : E X PAN D I N G C APAB I L I T I E S New Capabilities (5.5 MM Customers) (1.9 MM Customers) Smart Home Technology Platform Increasingly digital home energy Engaging end-to-end smart home Control Data and Experience experience with existing customers technology platform Home Partner Sale
Slide 14: Enhanced Consumer Platform
E N H AN C E D C O N S U M E R P L AT F O R M Two Gateways to the Home with Common Technology Platform Enhanced Customer Experience Expanded Market Potential Enhances Customer Experience Drives Value Creation Lifetime Margin3 Potential Over Base Retail Power Customer ~$35 Bn Energy Solar Comfort/HVA
Slide 15: Execution
EXECUTION 14 | Investor Day 2023 Highlights | Strategy | Execution | Home | Smart Home | Business | Financial | Closing
Slide 16: Strategic Plan: Progress & Priorities
S T R AT E G I C P L AN : P R O G R E S S & P R I O R I T I E S 1 2 3 Optimize Integrated Grow Energy and Increase Return Energy Model Home Services of Capital Optimize our integrated energy model to Build on core energy and expand Clear and transparent capital provide stable retail margins further
Slide 17: Optimize: Continuous Cost Improvement
1 O PTIMIZE CONTINUOUS COST IMPROVEMENT Previous Cost Savings Programs $250 MM Cost Savings Programs ` 2023 2024 2025 ▪ Initiatives: > 80 ▪ Headcount reduction/positions Vivint Cost Synergies $590 MM exited: 4,321 FCFbG Impact $35 $55 $100 ▪ Facilities closures: 17 Costs to Achieve $118 $45 $20 Tran
Slide 18: Optimize: Risk Management Alternatives
1 O PTIMIZE RISK MANAGEMENT ALTERNATIVES NRG Now Today PURE RETAIL GENTAILER CUSTOMER-FOCUSED Outsourced Supply Owned Supply (Generation) Diversified Supply ▪ Outsourced supply from financial ▪ Internal risk management capability ▪ Internal risk management capability institutions (market and credit
Slide 19: Optimize: Supply Optimization and Decarbonization Progress
1 O PTIMIZE SUPPLY OPTIMIZATION AND DECARBONIZATION PROGRESS 2023 Generation Portfolio Portfolio Optimization 13 GW1 Pro Forma Capacity Key Updates Renewable 2% Merit Order Baseload Intermediate Asset Sales – Unlock Value 48% 40% ▪ Astoria Gas (420 MW): $209 MM Objective: Increase Load-following cap
Slide 20: Grow: Near-Term Opportunity ($300 MM FCFbG by 2025)
2 G ROW NEAR-TERM OPPORTUNITY ($300 MM FCFbG BY 2025) Compelling Growth Economics ($ MM) 2025 Identified Opportunities FCFbG Impact ~50% Cross-Selling and Bundling • Target network of 7.5 MM customers $300 MM • Higher retention and reach ~$300 FCFbG • Advantaged direct customer access in the East
Slide 21: Grow: Longer-Term Opportunity (2025+)
2 G ROW LONGER-TERM OPPORTUNITY (2025+) Longer-Term Value Opportunities Smart Home Technology Enables The Future of Energy Smart Solar Controllable Battery More Value per Expanded Residential Customer Markets Demand Electric Higher customer Create additional Residential homes Vehicle margin driven b
Slide 22: Return: Revised Capital Allocation Principles
3 R ETURN REVISED CAPITAL ALLOCATION PRINCIPLES Capital Allocation Principles Maintain top decile safety and operational excellence Investment Grade Credit metrics of Rebalancing Priorities to 80% return of 2.50-2.75x Net Debt / Adjusted EBITDA capital / 20% Investment, from 50% *New* return of ca
Slide 23: Maximize Capital Returns to Shareholders
3 R ETURN MAXIMIZE CAPITAL RETURNS TO SHAREHOLDERS Cumulative Pro Forma Excess Cash Annual Shareholder Return After Debt Reduction1 ($ Bn) ($ Bn) Common Dividends Share Repurchases Growth Investments2 Buybacks Dividends >100% Market Cap $8.3 $1.7 $1.7 80% $1.4 Return of Capital $1.2 $1.2 $1.1 $4.1 $
Slide 24: Home Energy
HOME ENERGY ELIZABETH KILLINGER INVESTOR DAY 2023 23 | Investor Day 2023
Slide 25: Home Overview
HOME OVERVIEW #1 Power Retailer to Residential Customers1 NRG #2 Gas Retailer to Residential Customers2 Electricity Electricity Natural Gas Natural Dual Fuel Gas Dual Fuel 5.5 MILLION CUSTOMERS OVER $10 BILLION REVENUE NRG 1 Largest U.S. provider of competitively served residential electric meters a
Slide 26: Track Record of Performance
T R AC K R E C O R D O F P E R F O R M AN C E Home Recurring Customers1 Delivered Electricity Delivered Natural Gas (MM) (TWh) (thousand MDth) 5.4 59 145 3.7 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2.8 Home Energy Op Expenses2 Electric Customer Tenure3 2.2 ($ per YE Customer) (Ye
Slide 27: Home Energy Delivers Stable Financial Results
H O M E E N E R G Y D E L I V E R S S TAB L E F I N AN C I AL R E S U LT S Broad Market Coverage Home Electricity Margin ($/MWh) Average Optimized Channels and Offers Effective Go-To-Market Execution Top Tier Customer Service 2017 2018 2019 2020 20211 2022 1 Excludes the impact of Uri 26 | Investor
Slide 28: Home Energy Wins with a Multi-Brand, Multi-Product, Multi-Channel Approach
H O M E E N E R G Y W I N S W I T H A M U LT I - B R AN D , M U LT I - P R O D U C T, M U LT I - C H AN N E L AP P R O AC H Core Energy Retail Electricity Energy Add-On 4.5 million meters Enhanced Experience Battery Storage & Retail Gas Back-up 1.1 million meters 70 thousand1 Solar Energy 130 thousa
Slide 29: Unmatched Multi-Channel Sales Engine
U N M AT C H E D M U LT I - C H AN N E L S AL E S E N G I N E 1 Voice Digital Retail Direct Search & Display, “Meet People Where Demand Source Marketing, Movers Targeted Prospects Mobile, Shoppers They Are” Cost $$ $$ $$$ $$$$ Value $$$$ $$$ $$$ $$$$ Annual Sales2 ~1 million ~500 thousand ~500 thous
Slide 30: Continuous Optimization for Customer and NRG Value
C O N T I N U O U S O P T I M I Z AT I O N F O R C U S T O M E R AN D N R G VAL U E Insights Go-to-Market Engine Advantaged Outcomes Brands Marketing Channel Energy Prospects Better Conversion Smart Home Sales Selling Efficiencies Prospects Channel Product Market Coverage Existing Customers We
Slide 31: Effective Execution Yields Satisfied Customers and Industry Recognition
E F F E C T I V E E X E C U T I O N Y I E L D S S AT I S F I E D C U S T O M E R S AN D I N D U S T RY R E C O G N I T I O N “Great prices and “Everything is hassle “I have a solar system, Tesla “I like that I can compare my service. We have free. Anything I need to batteries and an EV. Green past u
Slide 32: Our Journey to Deepen Customer Relationships
O U R J O U R N E Y T O D E E P E N C U S T O M E R R E L AT I O N S H I P S 2016 2018 2023 Deeper Engagement Smart Home Provides Enhanced Technology Platform Our Customer Experience Evolution Included Progressing from a Leading Utility App to a Leading Consumer Services App 31 | Investor Day 2023 H
Slide 33: Smart Home
SMART HOME R A S E S H PAT E L INVESTOR DAY 2023 32 | Investor Day 2023
Slide 34: Industry-Leading Smart Home Platform
I N D U S T RY L E AD I N G S M AR T H O M E P L AT F O R M + + + Large & loyal Proprietary & World-class sales, Strong & compelling customer base integrated platform home service & install economics5 ▪ 1.9 MM+ subscribers1 ▪ ~16 daily interactions ▪ Coverage over 98% of U.S. ▪ 90%+ recurring revenu
Slide 35: We Are in the Early Days of a Big Opportunity
W E AR E I N T H E E AR LY D AY S O F A B I G O P P O R T U N I T Y Smart Home tech is ~50% more mainstream 2 Large and rapidly growing of all homes have at 1 core market with upside least one Smart Device from adjacent markets 27% Doorbell Camera US Smart Home Market 3 + The average number of smart
Slide 36: Smart Home Is More Than a Standalone Device
S M AR T H O M E I S M O R E T H AN A S TAN D AL O N E D E V I C E Standalone Device Smart Home ▪ One-time purchase with little or no subscription revenue ▪ Extensive suite of devices enables comprehensive coverage ▪ Multiple apps…disjointed customer experience ▪ Hassle-free Do-It-For-Me (DIFM) inst
Slide 37: Award Winning Platform
AWAR D W I N N I N G P L AT F O R M “A one-stop-shop to “Like good technology, “Our No. 1 home building a smart the experience is security system is home.” magical.” Vivint Smart Home.” 36 | Investor Day 2023 Highlights | Strategy | Execution | Home | Smart Home | Business | Financial | Closing
Slide 38: Driving Continuous Improvement
DRIVING CONTINUOUS IMPROVEMENT KEY METRICS1,2 2018 2022 INDUSTRY LEADING Net Service Margin3 69% 79% PRODUCTS IMPROVED CUSTOMER Best-in-class reliability RETENTION AI AND (service calls / sub per yr) 6 3 AND LTV MACHINE LEARNING Average Customer Life (yrs) 8 9 ADDITIONAL Subscribers (MM) 1.32 1.92 P
Slide 39: Attractive Subscriber Economics Driving Accelerated FCFbG
AT T R AC T I V E S U B S C R I B E R E C O N O M I C S D R I V I N G AC C E L E R AT E D F C F b G 1 2 Unit of 1 Subscriber Economics Improving FCFbG Conversion from ~20% to 55% ~$430 ▪ Realize revenue synergies Annual Recurring Service Margin ~$3,000 ▪ Grow subscriber base per Subscriber Cumulativ
Slide 40: Combined Platform Enables Rapid Expansion into Adjacent Services
C O M B I N E D P L AT F O R M E N AB L E S R AP I D E X PAN S I O N I N T O AD J AC E N T S E R V I C E S CONCIERGE SOLAR PARTNERS NRG HVAC Superior Customer COMFORT / ▪ Launched platform integration with SOLAR Experience HVAC Solar Edge and Enphase ▪ Integrated solar production in the app ▪ Smart
Slide 41: Seamless Customer Experience Delivered Through Proprietary Extensible Platform
S E AM L E S S C U S T O M E R E X P E R I E N C E D E L I V E R E D T H R O U G H P R O P R I E TARY E X T E N S I B L E P L AT F O R M SMART HOME CLOUD PRESENTATION • Centralized home hub LAYER • Multi-protocol integration • Improved features via OTA HUB HOME HUB • 1.6 Bn+ daily events across 28 M
Slide 42: Integrated Technology Platform Unlocks Value
I N T E G R AT E D T E C H N O L O G Y P L AT F O R M U N L O C K S VAL U E Customer Demand Energy Supply Integrated Technology Platform Enables Control of product roadmap Smart Home Retail Energy Market Generation Ownership of customer relationship Smart Home Energy Platform Protection of int
Slide 43: NRG Business
NRG BUSINESS ROBERT GAUDETTE INVESTOR DAY 2023 42 | Investor Day 2023
Slide 44: B2B Platform
B 2 B P L AT F O R M #2 Power Retailer to Business Customers1 #2 Gas Retailer to Business Customers2 132 1,000 96 819 750 By the Numbers 62 TWh / yr BCF / yr 54 50 300 156 96 TWh NRG NRG Power Customer Base by Industry By Volume – Power Only By Volume – Gas Only ~2.5 GW DR & Load 25% 20% Management
Slide 45: B2B Metrics
B2B METRICS History of Margin Stability Durable Customer Relationships Power Margin ($/MWh) POWER METRICS 82% 7 Years Renewal Average Customer Win Rate Relationship 2017 2018 2019 2020 2021 2022 Gas Margin ($/Dth) GAS METRICS 86% 9 Years Renewal Average Customer Win Rate Relationship 2017 2018 2019
Slide 46: Diversified Supply Portfolio
D I V E R S I F I E D S U P P LY PORTFOLIO 45 | Investor Day 2023 Highlights | Strategy | Execution | Home | Smart Home | Business | Financial | Closing
Slide 47: Supply and Optimization Overview
S U P P LY AN D O P T I M I Z AT I O N O V E R V I E W Plant Operations Commercial Operations Gas Coal Oil Renewables Dedicated power and natural gas commercial teams with 13 GW 1 5.3 deep energy expertise Power BCF/day Generation Natural Significant market intelligence across electricity and Po
Slide 48: Diversified Supply Strategy
D I V E R S I F I E D S U P P LY S T R AT E G Y Customer Load Supply Options Optimization Criteria 75,000 • 13 GW 1 of purposeful generation Peak: ❑ Term – match customer contract tenor • Location, merit, fuel diversity 70,000 Weather Driven Short Duration 65,000 Scarcity Prices Own • Plant performa
Slide 49: Generation Portfolio Optimization
G E N E R AT I O N P O R T F O L I O O P T I M I Z AT I O N Portfolio Evolution Portfolio Optimization 2021 to 2023 Executing Our Diversified Strategy Since 2021 16 GW 13 GW Objective Action Rationale 11% STP sale 10% Renewable reduces ▪ Reduces baseload, 35% baseload 40% Load Following: replaced wi
Slide 50: Retail Supply Procurement
R E TAI L S U P P LY P R O C U R E M E N T Net Home ERCOT Position1 Net Home East Position1 (Avg. On-Peak MWh) (Avg. On-Peak MWh) Total Expected Load2 (normal weather) 98% 97% 88% 84% Existing Load includes month to month Customers that have not yet been priced Load Supply3 Load Supply Load Supply L
Slide 51: Path to Decarbonization
PAT H T O D E C AR B O N I Z AT I O N Path to Decarbonization Actions to Date ~1.9 GW of renewable PPA’s to date -42% 1.2 GW of coal asset retirements since 2021 Targets1 60 52 ~2.5 GW of demand response & load management 40 39 39 34 33 35 30 25 NET-ZERO 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 52: Finance
FINANCE BRUCE CHUNG Chief Financial Officer INVESTOR DAY 2023 51 | Investor Day 2023
Slide 53: Reaffirming Guidance and Updating Capital Allocation
R E AF F I R M I N G G U I D AN C E AN D U P D AT I N G C AP I TAL AL L O C AT I O N Reaffirming 2023 Guidance Updating 2023 Capital Allocation for STP Asset Sale No change from Previously Disclosed $3,619 Indicates change from Previously Disclosed $518 $1,400 $1,630 $3,010 - $3,250 MM Asset Sale Ne
Slide 54: Plan Allows for Meaningful Debt Reduction
P L AN AL L O W S F O R M E AN I N G F U L D E B T R E D U C T I O N $2.55 Bn Debt Reduction to Achieve Target $1.90 Bn Investment Grade Credit Metrics by 2025 $1.40 Bn Reducing Net Debt by up to $2.55 Bn Ensure Collateral and Cost of Capital Efficiency 2H23 2024 2025 2H23 – 2025 Cumulative Pro Form
Slide 55: Plan Creates Significant Excess Cash
P L AN C R E AT E S S I G N I F I C AN T E X C E S S C AS H 2H23-2027 Cumulative Pro Forma Excess Cash After Debt Reduction1 Common Dividend >100% Authorized Share Repurchases Market Cap Additional Share Repurchases $8.3 Bn Reserved for Potential Brownfield Development Growth 1.4 80% Return of Capit
Slide 56: Roadmap to 2027 Recurring Free Cash Flow before Growth per Share
R O AD M A P T O 2 0 2 7 R E C U R R I N G F R E E C AS H F L O W B E F O R E G R O W T H P E R S H AR E +7-9% Annual Dividend Per Share Growth $4.0 $18.0 15-20% CAGR $1.5 $1.9 $12.5 $1.3 $1.3 $8.5 ($0.5) 2023 Asset Sales2 Cost & Growth Share 2025 Growth Share 2027 Guidance1 / Other Interest Investm
Slide 57: Closing
CLOSING MAURICIO GUTIERREZ President & Chief Executive Officer 56 | Investor Day 2023
Slide 58: Clear Path to Success
C L E AR PAT H T O S U C C E S S TODAY 2023 2025 2027 Positioned for Success Enhance Home Capabilities Optimize Current Full Integration Energy in Energy Transition & Strengthen Core Customer Network and Smart Home Increase Free Cash Flow $8.50 $12.50 $18.00 before Growth per Share Maintain Stron
Slide 59: Compelling Value Proposition
C O M P E L L I N G VAL U E P R O P O S I T I O N ▪ Enhanced Consumer Platform with Growth Engine at Attractive Economics ▪ Strategic and Financial Flexibility to Grow FCFbG per Share ▪ Strong Balance Sheet and Commitment to Investment Grade Credit Metrics ▪ Platform Delivers Strong and Visible Exce
Slide 60: Appendix
APPENDIX INVESTOR DAY 2023 59 | Investor Day 2023
Slide 61: NRG Operating Platform
N R G O P E R AT I N G P L AT F O R M Data & Insights Supply Optimization Sales Support Experience Technology Diversified Supply Best-in-class North American multi- North American Award-winning Vertically integrated sources – including commercial expertise brand, multi-channel, operating platform ex
Slide 62: NRG Ecosystem
NRG ECOSYSTEM ~ 7.5 Million Residential Customers Wholesale Consumer-Facing Supply B2B Energy Smart Home • 13 GW1 Generation Capacity • #2 Power Retailer • #1 Residential Retail Power • #1 Residential HVAC Installation • Diverse Fuel and Merit • #2 Gas Retailer • #2 Residential Retail Gas • Leading
Slide 63: ERCOT Development Portfolio
ERCOT DEVELOPMENT PORTFOLIO EVALUATING VIABILITY OF PROJECTS Power Market Review - Texas Potential Project Benefits from Recent Texas Legislation Texas has approved legislation to incentivize new dispatchable • Completion Bonus Grants of $80-120k per MW based on COD - Senate Bill 93* generation reso
Slide 64: Appendix Sustainability
APPENDIX S U S TA I N A B I L I T Y 63 | Investor Day 2023
Slide 65: Comprehensive Sustainability Program
C O M P R E H E N S I V E S U S TAI N AB I L I T Y P R O G R AM Sustainability Framework Our Goals 50% Net-Zero 100% reduction in GHG by 2050 electrification of company-owned emissions by 20251 light-duty fleet vehicles by 20304 Sustainable Business Progress2 42% 63% 40% 93% 59% Sustainable Customer
Slide 66: Environmental Leadership
E N V I R O N M E N TAL L E AD E R S H I P Committed to reducing environmental impacts across our fleet and facilities NRG U.S. GREENHOUSE WATER WITHDRAWAL AIR EMISSIONS3 AND DISCHARGE3 GAS EMISSIONS1,2,3 (percent change since 2014) (millions of metric tons of CO2 equivalent) (millions of cubic mete
Slide 67: Sustainable Customers
S U S TAI N AB L E C U S T O M E R S Leading the Low-Carbon Transition by Providing Clean Energy Products and Services Solutions for Home Solutions for Business Making energy easy is quite advanced Creating customer-focused paths to sustainable energy ▪ Range of renewable electricity plans ▪ Renewab
Slide 68: People and Purpose
P E O P L E AN D P U R P O S E Our Values Committed to a Productive and Healthy Environment for our Employees ~$6.6 MM ~$360k ~14k 1,000+ 21 in donations in employee- hours volunteered charitable U.S. states and received by reported donations organizations Canadian provinces Accountability charitabl
Slide 69: Strong Governance - Board of Directors
S T R O N G G O V E R N AN C E BOARD OF DIRECTORS S Diversity Primary Skills and Experience1 G C C U H A A D T A B R C O I P U R R A C N E H R M A I R O O R O U B H L T B C H R B N U A L E E O U E B E R 30% 40% Category M O R N X E Z Y R G Executive Leadership x x x x x x x x x x Human Capital Manag
Slide 70: Strong Governance - Stockholder and Stakeholder Engagement
S T R O N G G O V E R N AN C E STOCKHOLDER AND STAKEHOLDER ENGAGEMENT Stakeholder Key Topics How We Engage ▪ Recruitment and retention ▪ Fair hiring practices, competitive benefits, and programs to assist ▪ Diversity, equity, and inclusion employees when plants are retired Employees ▪ ▪ Safety and w
Slide 71: Strong Governance - Executive Compensation
S T R O N G G O V E R N AN C E EXECUTIVE COMPENSATION ALIGNED W ITH STRATEGY AND STOCKHOLDER INTERESTS 2022 Named Executive Officer CEO Compensation Allocation Compensation Program1 Paid for level of experience and expertise, 13% = Base Salary Base Salary responsibilities of individual position, and
Slide 72: Appendix Reg. G Schedules
APPENDIX REG. G SCHEDULES 71 | Investor Day 2023
Slide 73: Reg. G - 2023 Guidance Adjusted EBITDA
REG. G ($ millions) Appendix Table A-1: 2023 Guidance The following table summarizes the calculation of Adjusted EBITDA providing a reconciliation to Net Income 2023 Guidance Net Income1 $805 - $1,045 Interest expense, net 680 Income tax 310 Depreciation and amortization 1,010 ARO expense 20 Amortiz
Slide 74: Reg. G - 2023 Guidance Free Cash Flow before Growth
REG. G ($ millions) Appendix Table A-2: 2023 Guidance The following table summarizes the calculation of Free Cash Flow before Growth providing a reconciliation to Cash provided by Operating Activities 2023 Guidance Adjusted EBITDA $3,010 - $3,250 Interest payments, net (590) Income tax (95) 1 215 Ne
Slide 75: Reg. G - 2020
REG. G ($ millions) Appendix Table A-3: 2020 The following table summarizes the calculation of Adjusted EBITDA providing a reconciliation to Net Income and Free Cash Flow before Growth reconciliation to Cash provided by Operating Activities 2020 2020 Net Income $ 510 Adjusted EBITDA 1 $ 2,121 Plus:
Slide 76: Reg. G
REG. G EBITDA and Adjusted EBITDA are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of Adjusted EBITDA should not be construed as an inference that NRG’s future r
Slide 77: Reg. G
REG. G Adjusted cash flow from operating activities is a non-GAAP measure NRG provides to show cash flow from operations 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, integ