Nrg Energy, Inc. · NYSE:NRG
Nrg Energy — Q3 2020 Earnings Presentation
29 slides from Nrg Energy's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter 2020 Earnings Presentation
NRG Energy Inc. Third Quarter 2020 Earnings Presentation November 05, 2020 © [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: Key Messages
NRG 3Q20 Earnings Key Messages Business Review Financial Review Closing Remarks Appendix Integrated Platform Delivers Stable Results; Narrowing 2020 and Maintaining 2021 Adj EBITDA Guidance Direct Energy On Track to Close by Year-End; Financing Plan No Longer Requires New Equity Focusing on Perfecti
Slide 4: Business Highlights & Results
NRG 3Q20 Earnings Business Highlights & Results Business Review Financial Review Closing Remarks Appendix Business Highlights Results ($ millions) Strong Financial and Operational Results Adjusted EBITDA • Top decile safety performance • Comprehensive COVID-19 response enabled resilient $1,950-$2,
Slide 5: COVID-19 Market Impact
NRG 3Q20 Earnings COVID-19 Market Impact Business Review Financial Review Closing Remarks Appendix …Load Impacts Vary Significantly By Comprehensive Response to COVID-19… Subregion and Customer Type • Prioritized Health and Safety of employees and 2020 Load Reductions by ISO1 customers (weather-norm
Slide 6: ERCOT Summer Review
NRG 3Q20 Earnings ERCOT Summer Review Business Review Financial Review Closing Remarks Appendix COVID-19 and Less Favorable Weather …Integrated Platform Delivers Impacted Summer Demand and Prices Texas Degree Days1 • Integrated Platform provided stable results 800 700 • Retail business mix provided
Slide 7: A Customer-Focused Platform
A Customer-Focused Platform NRG 3Q20 Earnings Business Review Financial Review Perfecting Platform and Direct Energy Update Closing Remarks Appendix Focus On Perfecting Platform Direct Energy - Update • Continued Focus on Redefining through • Key Regulatory Approvals Streamlining and Strengthening o
Slide 8: Financial Review
Financial Review © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 7
Slide 9: 3Q 2020 Results and Guidance Update
NRG 3Q20 Earnings 3Q 2020 Results and Guidance Update Business Review Financial Review Closing Remarks Appendix ($ millions) 9/30/2020 Narrowing 2020 Three Months Nine Months Guidance Ended Ended Texas $514 $1,087 $1,350-1,400 Original $1,350 - $1,500 East/West/Other1 238 587 $600-650 Original $550
Slide 10: 2021 Guidance Update
NRG 3Q20 Earnings 2021 Guidance Update Business Review Financial Review Closing Remarks Appendix ($ millions) Previous Guidance Updated Guidance Texas $1,275-1,425 East/West/Other1 $625-675 Adjusted EBITDA $1,900-$2,100 $1,900-$2,100 Free Cash Flow before Growth (“FCFbG”) $1,275-$1,475 $1,200-$1,400
Slide 11: 2020 Capital Allocation
NRG 3Q20 Earnings 2020 Capital Allocation Business Review Financial Review Closing Remarks Appendix ($ millions) No change from Prior Quarter Indicates change from Prior Quarter $1,565 $125 incremental FCFbG (mid-point) guidance $295 ~$30 Distributed Solar sale Proceeds, net $228 $227 $4 $223 $815 $
Slide 12: Direct Energy Acquisition
Direct Energy Acquisition NRG 3Q20 Earnings Business Review Financial Review Sources of Financing Closing Remarks Appendix ($ millions) Changes Original Latest Plan Sources1 Increased Permanent Temporary Sources $ MM Lower Fees Cash Debt Debt New Bonds (Secured & Unsec.) 2,361 375 194 2,930 Equity L
Slide 13: 2021 Capital Allocation
NRG 3Q20 Earnings 2021 Capital Allocation Business Review Financial Review Closing Remarks Appendix ($ millions) No change from Prior Quarter Indicates change from Prior Quarter $1,660 $120 Agua Sale Proceeds1 $150 $1,510 $953 $1,5402 2021 Pro-forma FCFbG (mid-point) $317 $240 $40 $200 2021 Increase
Slide 14: Corporate Credit Profile
NRG 3Q20 Earnings Corporate Credit Profile Business Review Financial Review Closing Remarks Appendix ($ millions) 2021 NRG Acquisition Pro Forma Standalone 2021 Corporate Debt $6,0731 $2,930 $9,003 Temporary Debt (Asset Sales) (194) (194) Debt reduction (2021 Capital Allocation) (953) (953) Minimum
Slide 15: Closing Remarks
Closing Remarks © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 14
Slide 16: 2020 Priorities
NRG 3Q20 Earnings 2020 Priorities Business Review Financial Review Closing Remarks Appendix Deliver on Financial and Operational Objectives Narrowing 2020 & Maintaining 2021 Adj. EBITDA guidance Strong year-to-date financial, operational and safety performance Complete 3-Year Transformation
Slide 17: Appendix
Appendix © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 16
Slide 18: Committed to Sustainability
NRG 3Q20 Earnings Committed to Sustainability Business Review Financial Review Closing Remarks Appendix NRG Sustainability Framework Sustainable Sustainable Sustainable Sustainable Sustainable Business Operations Customers Suppliers Workplace Industry-Leading Disclosure Environmental Leadership1 Div
Slide 19: Capacity Clears & Unsold
NRG 3Q20 Earnings Capacity Clears & Unsold Business Review Financial Review Closing Remarks Appendix Capacity Revenue by Calendar1 Year ($ MM) Market 2020 2021 PJM $282 $299 ISO-NE $111 $89 Illustrative: NYISO2 $151 $162 Assumes uncleared capacity clears at current CAISO2 $58 $50 market levels Estim
Slide 20: Integrated Portfolio
Integrated Portfolio NRG 3Q20 Earnings Business Review Financial Review Additional Modeling Data Closing Remarks Appendix 2021E Guidance Drivers ERCOT East/West Operational Statistics Retail Sales – Current Portfolio1 Electric Estimated Sales (TWhs) 58-60 11-13 Natural Gas Estimated Sales (MDths) 0
Slide 21: Integrated Portfolio Footnotes
Integrated Portfolio NRG 3Q20 Earnings Business Review Financial Review Footnotes Closing Remarks Appendix 1 Estimated Retail Sales assumes weather normalized expected sales 2 Total capacity represents net summer MWs after adjusting for ownership position excluding capacity from equity interest asse
Slide 22: Recourse Debt Maturity Schedule
NRG 3Q20 Earnings Recourse Debt Maturity Schedule Business Review Financial Review Closing Remarks Appendix ($ millions) $1,230 $1,233 $1,000 $1,041 $821 $600 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Therafter Recourse Debt Principal 7.25% Senior notes, due 2026 $1,000 6.625% Senior notes,
Slide 23: Appendix: Reg. G Schedules
Appendix: Reg. G Schedules © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 22
Slide 24: Reg. G: NRG Guidance
NRG 3Q20 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-1: NRG Guidance The following table summarizes the calculation of Free Cash Flow before Growth and provides a reconciliation to Adjusted EBITDA and to Income from Continuing Operations: 2020 2021 ($ m
Slide 25: Reg. G: Q3 Adjusted EBITDA Reconciliation
NRG 3Q20 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-2: 3 months ended 9/30/20 Adjusted EBITDA Reconciliation by Operating Segment The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Income/(Loss) from Cont
Slide 26: Reg. G: Nine Months Adjusted EBITDA Reconciliation
NRG 3Q20 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-3: 9 months ended 9/30/20 Adjusted EBITDA Reconciliation by Operating Segment The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Income/(Loss) from Cont
Slide 27: Reg. G: Free Cash Flow before Growth
NRG 3Q20 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-4: 3 months and 9 months ended 9/30/20 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 con
Slide 28: Reg. G
NRG 3Q20 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 29: Reg. G
NRG 3Q20 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