Nrg Energy, Inc. · NYSE:NRG
Nrg Energy — Investor Presentation (September 2013)
28 slides from Nrg Energy's investor presentation, September 2013
Slide 1: Investor Presentation
Investor Presentation NRG Energy, Inc. (NYSE: NRG) September 2013
Slide 2: Safe Harbor
Safe Harbor Forward Looking Statements In addition to historical information, the information presented in this communication 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, e
Slide 3: NRG Energy Overview
NRG Energy Overview Key Information 2012 Financial Highlights3 Listed: NYSE (NRG) Revenues: $8.4 BN Market Cap1: ~$9.0 BN Adjusted EBITDA4: ~$1.9 BN Generation Assets2: ~46.0 GW Cash From Operations: ~$1.2 BN Competitive Retail Customers: ~2.3 MM Free Cash Flow Before Growth: ~$900 MM NRG in the Pow
Slide 4: NRG's Investment Proposition
NRG’s Investment Proposition Premium Competitive …Augmented by Balanced Energy Business Model… Capital Allocation Balance Sheet Solar, EV Charging, Management and Clean Smart Metering Energy Multi-market, Reinvestment multi-brand competitive Return Of & Growth Capital retail energy providers Retail
Slide 5: Enhancing the Core Generation Portfolio: Delivering GenOn Synergies
Enhancing the Core Generation Portfolio: / Combination Delivering GenOn Synergies Develop ~$480 MM of annual cash Clean Energy flow synergies by 20141,2 Expand Retail Business ~$340 MM of incremental Adjusted EBITDA by 20141 Enhance Core Generation Portfolio Diversified Portfolio Provides Foundation
Slide 6: Core Generation Portfolio: Diversification by Region, Fuel Type, and Revenue
Core Generation Portfolio: Diversification by Region, Fuel Type, and Revenue Total: 46,013 MW Capacity % Capacity by Region % Capacity by Fuel Type NRG YieldO OOther RenewableO ONRG Yield 3% 1% 2% 3% NuclearO 3% Gulf East Coast Coal 45% 36% 30% Gas/ Oil 65% West 15% West: 6,788 MW1 Gulf Coast: 16,56
Slide 7: Leading Position in the Texas Power Market
Leading Position in the Texas Power Market Most Texas Capacity Tightening Texas Reserve Margin Forecast… of any Publicly Traded Company1 18% ERCOT Reserve Margin Reserve Margin Forecast (GWs Installed Capacity) 15% Target (13.75%) 13% South Texas Project: Young 13.8% and high performing nuclear 10
Slide 8: Expanding the Retail Business: Multi-Brand and Multi-Channel Approach
Expanding the Retail Business: Multi-Brand and Multi-Channel Approach Objective: Empower energy consumers with smart energy choices that are safe, affordable, reliable and sustainable Maintain Texas Leadership Expand Northeast Continue to leverage multi-brand, multi- Build leading insurgent retailer
Slide 9: Developing Clean Energy: Targeting First-Mover Status, Strategic Synergies
Developing Clean Energy: Targeting First-Mover Status, Strategic Synergies Clean Transportation Electric vehicle services US PEV sales to reach Home and network charging ~300k units by 2015, up from 1.6k in 2010 Clean electricity for home charging Green Housing and Utilities Clean/green retail ele
Slide 10: Developing Clean Energy: Industry Leading Solar Platform
Developing Clean Energy: Industry Leading Solar Platform Solar Project Map: West Region California Key Highlights Projects supported by long term PPAs with investment-grade counterparties ~490 MW utility-scale solar in operation; ~330 MW under construction1 Arizona New Mexico Avenal ~50 MW of distri
Slide 11: NRG Yield: A Long-Term Strategic Perspective
NRG Yield: A Long-Term Strategic Perspective NRG’s Competitive …is Meaningfully Enhanced by the Energy Business Model… Success of ... Renewables enabled by long term PPAs and leases with utility and corporate off-takers Develop Clean Energy competitive cost of capital for Expand contracted assets Re
Slide 12: Financial Highlights: EBITDA and Free Cash Flow
Financial Highlights: EBITDA1 and Free Cash Flow Sustaining Financial Performance Throughout the Cycle… 2013 FCF Yield3 2014 FCF Yield3 12-14% 12-15% $2,850- $3,050 MM $2,550 - $2,700 MM $1,985 MM $1,820 MM $1,050 - $1,100 - $1,200 MM $1,300 MM $823 MM $898 MM Adj. FCF, Adj. FCF, Adj. FCF, Adj. FCF,
Slide 13: Conclusion – Investment Thesis
Conclusion – Investment Thesis NRG: Why Now? Core The Largest and Most Diversified competitive Generation power company, levered to both power and gas recovery across US regions Positioned for Texas power market upside as the largest publicly traded Texas generator Retail Leading integrated competit
Slide 14: Investor Relations Contacts
Investor Relations Contacts NRG Investor Relations Chad Plotkin Vice President of Investor Relations 211 Carnegie Center 609.524.4526 chad.plotkin@nrgenergy.com Princeton, NJ 08540 Daniel Keyes Analyst, Investor Relations 609.524.4527 dan.keyes@nrgenergy.com For copies of other presentations, annual
Slide 15: Appendix
Appendix nrg.
Slide 16: Guidance Overview
Guidance Overview As previously disclosed in NRG’s 2nd Quarter 2013 Results Presentation on 8/9/2013 2013 2014 ($ millions) Wholesale1 $1,735-$1,810 $1,965-$2,090 Retail $575-$650 $600-$675 NRG Yield $240 $285 Adjusted EBITDA $2,550-$2,700 $2,850-$3,050 Free Cash Flow – before $1,050-$1,200 $1,100-$
Slide 17: GenOn Acquisition: Synergy Report Card
GenOn Acquisition: Synergy Report Card ($ millions) Annual Run Rate (by 2014) Revised Executed1 % Total Cost $215 $147 68% Previous2 $200 Operational $125 $99 79% Improvements Driven By: Increase in Insurance Adjusted EBITDA $340 $246 72% Synergies Previous2 $325 Incremental Reduction in Consult
Slide 18: Managing Commodity Price Risk
Managing Commodity Price Risk Coal and Nuclear Generation and Retail Coal and Transport Hedge Position1,4 Hedge Position1,2 96% 87% 100% 94% 89% 97% 82% 80% 74% 61% 51% 44% 36% 44% 23% 2013 2014 2015 2013 2014 2015 Hedged Gas (NGE) Open Gas (NGE) Hedged Coal Open Coal Hedged Transport Open Transport
Slide 19: Components of NRG Market Value Post NRG Yield
Components of NRG Market Value Post NRG Yield (“NYLD”) As previously presented in NRG’s 2nd Quarter 2013 Results Presentation on 8/9/2013 ($ millions) ($ millions) Implied Trading Value Summary Components of Adjusted EBITDA NRG Market Cap1 $8,687 2014 Adjusted EBITDA $2,850-$3,050 Less: NRG Stake in
Slide 20: Proportionate Adjusted EBITDA and Debt
Proportionate Adjusted EBITDA and Debt1 Year End June 30, 2013 2014 ($ millions) 2013 Adjusted EBITDA Guidance $2,550-$2,700 $2,850-$3,050 - Pro-rata Adjusted EBITDA associated with project non-controlling interests (i.e., Agua (50) (100) Caliente, Ivanpah) NRG Proportionate Adjusted EBITDA $2,500-$
Slide 21: Appendix Reg. G Schedules
Appendix Reg. G Schedules nrg. 20
Slide 22: Reg. G: YTD Q2 2013 Free Cash Flow Before Growth Investments
Reg. G: YTD Q2 2013 Free Cash Flow Before Growth Investments Jun 30, Jun 30, $ in millions 2013 2012 Variance Adjusted EBITDAR $ 1,006 $ 871 $ 135 Less: GenOn operating lease expense (39) - (39) Adjusted EBITDA $ 967 $ 871 $ 96 Interest payments (492) (293) (199) Income tax 62 (21) 83 Collateral/wor
Slide 23: Reg. G: 2013 & 2014 Guidance
Reg. G: 2013 & 2014 Guidance 8/9/2013 6/24/2013 $ in millions 2013 2014 2013 2014 Guidance Guidance Guidance Guidance Adjusted EBITDAR $2,630-$2,780 $2,930-$3,130 $2,695-$2,895 $2,930-$3,130 Less: GenOn operating lease expense (80) (80) (80) (80) Adjusted EBITDA $2,550-$2,700 $2,850-$3,050 $2,615-$2
Slide 24: Reg. G: Q2 2013 Regional Adjusted EBITDA Reconciliation
Reg. G Appendix Table A-1: Second Quarter 2013 Regional Adjusted EBITDA Reconciliation The following table summarizes the calculation of adjusted EBITDA and provides a reconciliation to net income South Other NRG Alt. (dollars in millions) Retail Texas Central East West Conventional Yield Energy Cor
Slide 25: Reg. G: Q2 2012 Regional Adjusted EBITDA Reconciliation
Reg. G Appendix Table A-2: Second Quarter 2012 Regional Adjusted EBITDA Reconciliation The following table summarizes the calculation of adjusted EBITDA and provides a reconciliation to net income South Other NRG Alt. (dollars in millions) Retail Texas Central East West Conventional Yield Energy Cor
Slide 26: Reg. G: YTD 2012 Regional Adjusted EBITDA Reconciliation
Reg. G Appendix Table A-3: YTD 2012 Regional Adjusted EBITDA Reconciliation The following table summarizes the calculation of adjusted EBITDA and provides a reconciliation to net income Gulf Coast Other Alt. ($ in millio ns) Retail Texas South Central East West Conv. Energy Corp. Total Net Income/(L
Slide 27: Reg. G: YTD 2011 Regional Adjusted EBITDA Reconciliation
Reg. G Appendix Table A-4: YTD 2011 Regional Adjusted EBITDA Reconciliation The following table summarizes the calculation of adjusted EBITDA and provides a reconciliation to net income Gulf Coast Other Alt. ($ in millio ns) Retail Texas South Central East West Conv. Energy Corp. Total Net Income/(L
Slide 28: 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