Nrg Energy, Inc. · NYSE:NRG
Nrg Energy — Q1 2021 Earnings Presentation
25 slides from Nrg Energy's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Earnings Presentation
NRG Energy Inc. First Quarter 2021 Earnings Presentation May 6, 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 Gaetan Frotte, SVP and Interim 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 1Q21 Earnings Key Messages Business Review Financial Review Closing Remarks Appendix Winter Storm Uri Financial Impact & Mitigation Plan; Reinstating 2021 Financial Guidance Texas Designing Comprehensive Solutions to Improve Grid Resilience Focused on Advancing Customer-Centric Strategy © [year]
Slide 5: Winter Storm Uri Financial Impact
Winter Storm Uri NRG 1Q21 Earnings Business Review Financial Review Financial Impact Closing Remarks Appendix Financial Impact Market Failures Overwhelmed Platform Performance Controllable Platform Performance ($92 MM) (gross) +$17 MM Platform • Maintained balanced supply to retail load ratio ($109
Slide 6: Winter Storm Uri: Steps to Improve Grid Reliability
Winter Storm Uri NRG 1Q21 Earnings Business Review Financial Review Steps to Improve Grid Reliability Closing Remarks Appendix Key Concepts to Improve System Reliability 1 • Weatherization: Improved winterization standards for the entire electric and natural gas system including supply chain System
Slide 7: Business Highlights & Results
NRG 1Q21 Earnings Business Highlights & Results Business Review Financial Review Closing Remarks Appendix Q1 Business Highlights Financial Update ($ millions) Financial and Operational Results • Top decile safety performance Adjusted EBITDA (excl. one-time impacts from Winter Storm Uri) • Impacted
Slide 8: Favorable 2021 Market Trends
Favorable 2021 Market Trends NRG 1Q21 Earnings Business Review Financial Review Healthy Load & Low Power Prices Closing Remarks Appendix Neutral to Favorable Signs of Load Growth with Year-over-Year Load Outlook Low Power Prices; Good for NRG Summer Weather Outlook1 – Neutral to Favorable • Regional
Slide 9: Advancing Customer-Centric Strategy
Advancing Customer-Centric Strategy NRG 1Q21 Earnings Business Review Financial Review Streamlining & Synergies – On Track Closing Remarks Appendix Rapidly Perfecting Platform Direct Energy Integration Scorecard • Continued Focus on Redefining through Streamlining and Strengthening our Platform 2021
Slide 10: Financial Review
Financial Review © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 9
Slide 11: Financial Update
NRG 1Q21 Earnings Financial Update Business Review Financial Review Closing Remarks Appendix ($ millions) 1Q Results & Guidance1 Uri One-Time Impact (excludes Storm Uri) (excluded from results) Three Months Three Months 2021 Ended Ended 2021 2022 3/31/2021 3/31/2020 Guidance Texas $254 $195 $1,425-1
Slide 12: 2021 Capital Allocation
NRG 1Q21 Earnings 2021 Capital Allocation Business Review Financial Review Closing Remarks Appendix ($ millions) No change from Prior Quarter Indicates change from Prior Quarter $2,375 $150 $458 $120 Agua Sale Proceeds2 $496 $450 Storm $38 Working Uri CAFA $1,5403 2021 FCFbG Capital Impact (mid-poin
Slide 13: Corporate Credit Profile & Liquidity
NRG 1Q21 Earnings Corporate Credit Profile & Liquidity Business Review Financial Review Closing Remarks Appendix ($ millions) 2021 As of Guidance Liquidity Position May 4, 2021 Corporate Debt1 $8,855 Cash and cash $575 equivalents Debt reduction (2021 Capital Allocation) (385) 15 Restricted cash Min
Slide 14: Closing Remarks
Closing Remarks © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 13
Slide 15: 2021 Priorities
NRG 1Q21 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 ($300 MM 2023 run-rate) Perfect and Grow Integrated Platform Advance Texas syst
Slide 16: Appendix
Appendix © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 15
Slide 17: Committed to Sustainability
NRG 1Q21 Earnings Committed to Sustainability Business Review Financial Review Closing Remarks Appendix NRG Sustainability Framework Sustainable Sustainable Sustainable Sustainable Sustainable Business Operations Customers Suppliers Workplace Industry-Leading Disclosure Environmental Leadership1 Div
Slide 18: Capacity Clears & Unsold
NRG 1Q21 Earnings Capacity Clears & Unsold Business Review Financial Review Closing Remarks Appendix Capacity Revenue1 ($ MM) Market 20212 PJM $299 ISO-NE $89 Illustrative: NYISO3 $159 Assumes uncleared capacity clears at current CAISO3 $57 market levels Estimated Planning Average Price Percentage M
Slide 19: Recourse Debt Maturity Schedule
NRG 1Q21 Earnings Recourse Debt Maturity Schedule Business Review Financial Review Closing Remarks Appendix ($ millions) $2,130 $2,071 $1,733 $1,000 $821 $600 500 2021 2022 2023 2024 2025 2026 2027 2028 2029 Therafter Recourse Debt Principal 7.25% Senior notes, due 2026 $1,000 6.625% Senior notes, d
Slide 20: 1Q21 Business Metrics
NRG 1Q21 Earnings 1Q21 Business Metrics Business Review Financial Review Closing Remarks Appendix Home & Business Volumes1 Texas East / Other Electric Natural Gas 30% 31% 15 21 78 265 TWh TWh MMDth MMDth 70% 69% Home / Residential Business / C&I Home / Residential Business / C&I 36 TWh 343 MMDth Ele
Slide 21: Appendix: Reg. G Schedules
Appendix: Reg. G Schedules © [year] NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 20
Slide 22: Reg. G: 2021 NRG Guidance
NRG 1Q21 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-1: 2021 NRG Guidance The following table summarizes the calculation of Free Cash Flow before Growth and provides a reconciliation to Adjusted EBITDA and to Income from Continuing Operations: 2021 ($ m
Slide 23: Reg. G: Adjusted EBITDA Reconciliation by Segment
NRG 4Q20 Earnings Reg. G Business Review Financial Review Closing Remarks Appendix Appendix Table A-2: 3 months ended 03/31/21 Adjusted EBITDA Reconciliation by Operating Segment The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Income/(Loss) from Con
Slide 24: Reg. G
NRG 1Q21 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 25: Reg. G
NRG 1Q21 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