NRG Energy, Inc. Reports Third Quarter Results, Initiates 2025 Guidance, and Introduces Adjusted Net Income and Adjusted EPS

Table 1:

Three Months Ended

Nine Months Ended

($ in millions, except per share amounts)

9/30/2024

9/30/2023

9/30/2024

9/30/2023

Net (Loss)/Income

$

(767

)

$

343

$

482

$

(684

)

(Loss)/Income per Weighted Average Common Share - Basic

$

(3.79

)

$

1.42

$

2.08

$

(3.14

)

Adjusted EBITDA^a

$

1,055

$

987

$

2,887

$

2,458

Adjusted Net Income^b

$

393

$

360

$

1,066

$

849

Adjusted EPS^c

$

1.90

$

1.57

$

5.15

$

3.69

Cash Provided/(Used) by Operating Activities

$

31

$

566

$

1,354

$

(462

)

Free Cash Flow Before Growth Investments (FCFbG)

$

815

$

355

$

1,438

$

983

^a Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization referenced below

^b Not previously provided, Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see appendix tables A-1-A-6

^c Not previously provided, Adjusted EPS calculated based on Adjusted Net Income divided by weighted average number of common shares outstanding - basic

Table 2: Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and FCFbG Guidance for 2024^a

2024

2024

($ in millions, except per share amounts)

Original Guidance

Raised Guidance

Adjusted EBITDA^b

$3,430 - $3,680

$3,655 - $3,805

Adjusted Net Income^c

$1,040 - $1,290

$1,235 - $1,385

Adjusted EPS^d

$5.00 - $6.30

$5.95 - $6.75

FCFbG

$1,825 - $2,075

$1,975 - $2,125

^a Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and FCFbG are non-GAAP financial measures; see Appendix Tables A-10-A-12 for GAAP Reconciliation. Adjusted EBITDA, Adjusted Net Income and Adjusted EPS exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year

^b Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization

^c Not previously provided, Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see appendix table A-10 and A-11 for GAAP Reconciliations

^d Not previously provided, Adjusted EPS calculated based on Adjusted Net Income divided by forecasted weighted average number of common shares outstanding - basic

Table 3: Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and FCFbG Guidance for 2025^a

2024

2025

2025

($ in millions, except per share amounts)

Raised Guidance

Guidance

Guidance Midpoint

Adjusted EBITDA^b

$3,655 - $3,805

$3,725 - $3,975

$3,850

Adjusted Net Income^c

$1,235 - $1,385

$1,330 - $1,530

$1,430

Adjusted EPS^d

$5.95 - $6.75

$6.75 - $7.75

$7.25

FCFbG

$1,975 - $2,125

$1,975 - $2,225

$2,100

^a Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and FCFbG are non-GAAP financial measures; see Appendix Tables A-10-A-12 for GAAP Reconciliation. Adjusted EBITDA, Adjusted Net Income and Adjusted EPS exclude fair value adjustments related to derivatives. The Company does not guide to GAAP Net Income due to the impact of such fair value adjustments related to derivatives in a given year

^b Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization

^c Not previously provided, Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'; see appendix table A-10 and A-11 for GAAP Reconciliation

^d Not previously provided, Adjusted EPS calculated based on Adjusted Net Income divided by forecasted weighted average number of common shares outstanding - basic

Table 4: Net (Loss)/Income

($ in millions)

Three Months Ended

Nine Months Ended

Segment

9/30/2024

9/30/2023

9/30/2024

9/30/2023

Texas

$

(1,056

)

$

463

$

259

$

1,532

East

88

316

1,116

(1,187

)

West/Services/Other^a

230

(432

)

(842

)

(963

)

Vivint Smart Home^b

$

(29

)

$

(4

)

$

(51

)

$

(66

)

Net (Loss)/Income

$

(767

)

$

343

$

482

$

(684

)

^a Includes Corporate segment

^b Vivint Smart Home acquired in March 2023

Table 5: Adjusted EBITDA

($ in millions)

Three Months Ended

Nine Months Ended

Segment

9/30/2024

9/30/2023

9/30/2024

9/30/2023

Texas

$

584

$

552

$

1,255

$

1,310

East

164

171

724

562

West/Services/Other^a

50

25

179

51

Vivint Smart Home^b

$

257

$

239

$

729

$

535

Adjusted EBITDA^c

$

1,055

$

987

$

2,887

$

2,458

^a Includes Corporate segment

^b Vivint Smart Home acquired in March 2023

^c Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization

Table 6: Corporate Liquidity

($ in millions)

9/30/24

12/31/23

Cash and Cash Equivalents

$

1,104

$

541

Restricted Cash

10

24

Total

1,114

565

Total Revolving Credit Facility and collective collateral facilities

5,330

4,278

Total Liquidity, excluding collateral deposited by counterparties

$

6,444

$

4,843

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended

September 30,

Nine months ended

September 30,

(In millions, except for per share amounts)

2024

2023

2024

2023

Revenue

Revenue

$

7,223

$

7,946

$

21,311

$

22,016

Operating Costs and Expenses

Cost of operations (excluding depreciation and amortization shown below)

7,239

6,406

17,229

20,137

Depreciation and amortization

352

359

1,045

921

Impairment losses

-

-

15

-

Selling, general and administrative costs (excluding amortization of customer acquisition costs of $55, $36, $144 and $84, respectively, which are included in depreciation and amortization shown separately above)

645

602

1,739

1,502

Acquisition-related transaction and integration costs

7

18

22

111

Total operating costs and expenses

8,243

7,385

20,050

22,671

Gain on sale of assets

208

-

209

202

Operating (Loss)/Income

(812

)

561

1,470

(453

)

Other Income/(Expense)

Equity in earnings of unconsolidated affiliates

6

6

13

16

Other income, net

5

14

38

43

Loss on debt extinguishment

-

-

(260

)

-

Interest expense

(213

)

(173

)

(528

)

(472

)

Total other expense

(202

)

(153

)

(737

)

(413

)

(Loss)/Income Before Income Taxes

(1,014

)

408

733

(866

)

Income tax (benefit)/expense

(247

)

65

251

(182

)

Net (Loss)/Income

$

(767

)

$

343

$

482

$

(684

)

Less: Cumulative dividends attributable to Series A Preferred Stock

17

17

51

38

Net (Loss)/Income Available for Common Stockholders

$

(784

)

$

326

$

431

$

(722

)

(Loss)/Income per Share

Weighted average number of common shares outstanding - basic

207

230

207

230

(Loss)/Income per Weighted Average Common Share - Basic

$

(3.79

)

$

1.42

$

2.08

$

(3.14

)

Weighted average number of common shares outstanding - diluted

207

232

213

230

(Loss)/Income per Weighted Average Common Share -Diluted

$

(3.79

)

$

1.41

$

2.02

$

(3.14

)

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME

(Unaudited)

Three months ended

September 30,

Nine months ended

September 30,

(In millions)

2024

2023

2024

2023

Net (Loss)/Income

$

(767

)

$

343

$

482

$

(684

)

Other Comprehensive (Loss)/Income

Foreign currency translation adjustments

6

(8

)

(4

)

-

Defined benefit plans

(8

)

1

(10

)

-

Other comprehensive (loss)/income

(2

)

(7

)

(14

)

-

Comprehensive (Loss)/Income

$

(769

)

$

336

$

468

$

(684

)

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2024

December 31, 2023

(In millions, except share data)

(Unaudited)

(Audited)

ASSETS

Current Assets

Cash and cash equivalents

$

1,104

$

541

Funds deposited by counterparties

12

84

Restricted cash

10

24

Accounts receivable, net

3,258

3,542

Inventory

540

607

Derivative instruments

2,456

3,862

Cash collateral paid in support of energy risk management activities

449

441

Prepayments and other current assets

782

626

Total current assets

8,611

9,727

Property, plant and equipment, net

1,818

1,763

Other Assets

Equity investments in affiliates

49

42

Operating lease right-of-use assets, net

172

179

Goodwill

5,018

5,079

Customer relationships, net

1,648

2,164

Other intangible assets, net

1,439

1,763

Derivative instruments

1,747

2,293

Deferred income taxes

2,098

2,251

Other non-current assets

1,124

777

Total other assets

13,295

14,548

Total Assets

$

23,724

$

26,038

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Current portion of long-term debt and finance leases

$

258

$

620

Current portion of operating lease liabilities

77

90

Accounts payable

1,994

2,325

Derivative instruments

2,351

4,019

Cash collateral received in support of energy risk management activities

12

84

Deferred revenue current

761

720

Accrued expenses and other current liabilities

1,895

1,642

Total current liabilities

7,348

9,500

Other Liabilities

Long-term debt and finance leases

10,422

10,133

Non-current operating lease liabilities

125

128

Derivative instruments

1,469

1,488

Deferred income taxes

8

22

Deferred revenue non-current

919

914

Other non-current liabilities

913

947

Total other liabilities

13,856

13,632

Total Liabilities

21,204

23,132

Commitments and Contingencies

Stockholders' Equity

Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at September 30, 2024 and December 31, 2023, aggregate liquidation preference of $650; at September 30, 2024 and December 31, 2023

650

650

Common stock; $0.01 par value; 500,000,000 shares authorized; 264,056,285 and 267,330,470 shares issued and 204,929,327 and 208,130,950 shares outstanding at September 30, 2024 and December 31, 2023, respectively

3

3

Additional paid-in-capital

3,145

3,416

Retained earnings

977

820

Treasury stock, at cost; 59,126,958 shares and 59,199,520 shares at September 30, 2024 and December 31, 2023, respectively

(2,150

)

(1,892

)

Accumulated other comprehensive loss

(105

)

(91

)

Total Stockholders' Equity

2,520

2,906

Total Liabilities and Stockholders' Equity

$

23,724

$

26,038

NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine months ended September 30,

(In millions)

2024

2023

Cash Flows from Operating Activities

Net Income/(Loss)

$

482

$

(684

)

Adjustments to reconcile net income/(loss) to cash provided/(used) by operating activities:

Equity in and distributions from earnings of unconsolidated affiliates

(6

)

(16

)

Depreciation of property, plant and equipment and amortization of customer relationships and other intangible assets

814

813

Amortization of capitalized contract costs

231

108

Accretion of asset retirement obligations

29

14

Provision for credit losses

228

165

Amortization of nuclear fuel

-

42

Amortization of financing costs and debt discounts

32

42

Loss on debt extinguishment

260

-

Amortization of in-the-money contracts and emissions allowances

83

111

Amortization of unearned equity compensation

82

87

Net gain on sale of assets and disposal of assets

(197

)

(187

)

Impairment losses

15

-

Changes in derivative instruments

268

1,553

Changes in current and deferred income taxes and liability for uncertain tax benefits

134

(225

)

Changes in collateral deposits in support of risk management activities

(80

)

(1,188

)

Changes in nuclear decommissioning trust liability

-

(4

)

Changes in other working capital

(1,021

)

(1,093

)

Cash provided/(used) by operating activities

$

1,354

$

(462

)

Cash Flows from Investing Activities

Payments for acquisitions of businesses and assets, net of cash acquired

$

(33

)

$

(2,502

)

Capital expenditures

(286

)

(493

)

Net purchases of emissions allowances

(16

)

(25

)

Investments in nuclear decommissioning trust fund securities

-

(293

)

Proceeds from the sale of nuclear decommissioning trust fund securities

-

280

Proceeds from sales of assets, net of cash disposed

495

229

Proceeds from insurance recoveries for property, plant and equipment, net

3

173

Cash provided/(used) by investing activities

$

163

$

(2,631

)

Cash Flows from Financing Activities

Proceeds from issuance of preferred stock, net of fees

$

-

$

635

Payments of dividends to preferred and common stockholders

(322

)

(295

)

Equivalent shares purchased in lieu of tax withholdings

(45

)

(19

)

Payments for share repurchase activity

(316

)

(50

)

Net (payments)/receipts from settlement of acquired derivatives that include financing elements

(2

)

332

Net proceeds of Revolving Credit Facility and Receivable Securitization Facilities

-

300

Proceeds from issuance of long-term debt

875

731

Payments of debt issuance costs

(13

)

(29

)

Repayments of long-term debt and finance leases

(960

)

(15

)

Payments for debt extinguishment costs

(258

)

-

Proceeds from credit facilities

1,050

3,020

Repayments to credit facilities

(1,050

)

(3,020

)

Cash (used)/provided by financing activities

$

(1,041

)

$

1,590

Effect of exchange rate changes on cash and cash equivalents

1

-

Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash

477

(1,503

)

Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period

649

2,178

Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period

$

1,126

$

675

($ in millions, except per share amounts)

Texas

East

West/Services/

Other

Vivint

Smart Home

Corp/Elim

Total

Net (Loss)/Income

$

(1,056

)

$

88

$

148

$

(29

)

$

82

$

(767

)

Plus:

Interest expense, net

1

1

7

74

122

205

Income tax

-

1

-

(8

)

(240

)

(247

)

Depreciation and amortization²

81

39

23

198

11

352

ARO Expense

11

14

1

-

-

26

Contract and emission credit amortization, net

5

(4

)

4

-

-

5

EBITDA

(958

)

139

183

235

(25

)

(426

)

Stock-based compensation

6

2

2

15

-

25

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates

-

-

2

-

-

2

Acquisition and divestiture integration and transaction costs

-

-

-

1

8

9

Cost to achieve

-

-

-

-

6

6

Deactivation costs

-

4

-

-

-

4

(Gain) on sale of assets

-

-

(208

)

-

-

(208

)

Other and non-recurring charges

(1

)

10

-

6

(2

)

13

Mark to market (MtM) losses on economic hedges

1,537

9

84

-

-

1,630

Adjusted EBITDA

$

584

$

164

$

63

$

257

$

(13

)

$

1,055

Interest expense, net

(205

)

Depreciation and amortization

(352

)

Adjusted Income before income taxes

498

Adjusted income tax³

(88

)

Adjusted Net Income before Preferred Stock dividends

410

Cumulative dividends attributable to Series A Preferred Stock

(17

)

Adjusted Net Income⁴

393

Weighted average number of common shares outstanding - basic

207

Adjusted EPS

$

1.90

¹ Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization

² Depreciation and amortization recast to include impact of amortization of capitalized contract costs

³ Income tax calculated using Adjusted effective tax rate (ETR) on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG's tax credits, consisting of incentive tax credit in connection with renewable projects as well as production tax credits for carbon recapture for pre-IRA periods

⁴ Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

($ in millions)

Texas

East

West/Services/

Other

Vivint

Smart Home

Corp/Elim

Total

Revenue¹

$

3,301

$

2,606

$

828

$

499

$

(11

)

$

7,223

Cost of fuel, purchased power and other cost of sales²

2,222

2,166

651

37

(5

)

5,071

Economic gross margin

1,079

440

177

462

(6

)

2,152

Operations & maintenance and other cost of operations³

240

119

64

66

2

491

Selling, marketing, general and administrative⁴

255

154

64

138

3

614

Other

-

3

(14

)

1

2

(8

)

Adjusted EBITDA

$

584

$

164

$

63

$

257

$

(13

)

$

1,055

¹ Excludes MtM gain of $(8) million and contract amortization of $8 million

² Includes TDSP expense, capacity and emission credits

³ Excludes ARO expenses of $26 million, other and non-recurring charges of $10 million, deactivation costs of $4 million and stock-based compensation of $2 million

⁴ Excludes stock-based compensation of $23 million, cost to achieve of $6 million, acquisition and divestiture integration and transaction costs of $3 million and other and non-recurring charges of $(1) million

($ in millions)

Condensed Consolidated Results of Operations

Interest, tax, depr.,

amort.

MtM

Deactivation

Other adj.²

Adjusted EBITDA

Revenue

$

7,223

$

8

$

(8

)

$

-

$

-

$

7,223

Cost of operations (excluding depreciation and amortization shown below)¹

6,706

3

(1,638

)

-

-

5,071

Depreciation and Amortization

352

(352

)

-

-

-

-

Gross margin

165

357

1,630

-

-

2,152

Operations & maintenance and other cost of operations

533

-

-

(4

)

(38

)

491

Selling, marketing, general & administrative

645

-

-

-

(31

)

614

Other

(246

)

42

-

-

196

(8

)

Net (Loss)/Income

$

(767

)

$

315

$

1,630

$

4

$

(127

)

$

1,055

¹ Excludes operations & maintenance and other cost of operations of $533 million

² Other adj. includes ARO expenses of $26 million, stock-based compensation of $25 million, other and non-recurring charges of $13 million, acquisition and divestiture integration and transaction costs of $9 million, cost to achieve of $6 million, NRG share of adjusted EBITDA in unconsolidated affiliates of $2 million and gain on sale of assets of $(208) million

($ in millions, except per share amounts)

Texas

East

West/Services/

Other

Vivint

Smart Home

Corp/Elim

Total

Net Income/(Loss)

$

463

$

316

$

(168

)

$

(4

)

$

(264

)

$

343

Plus:

Interest expense, net

(1

)

(2

)

6

43

109

155

Income tax

-

(2

)

(37

)

(20

)

124

65

Depreciation and amortization²

84

39

24

203

9

359

ARO Expense

3

6

-

-

-

9

Contract and emission credit amortization, net

5

(16

)

4

-

-

(7

)

EBITDA

554

341

(171

)

222

(22

)

924

Stock-based compensation

4

2

1

19

-

26

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates

-

-

3

-

-

3

Acquisition and divestiture integration and transaction costs

-

-

-

2

18

20

Deactivation costs

-

9

2

-

-

11

Other and non-recurring charges³

(48

)

3

(2

)

(4

)

1

(50

)

Mark to market (MtM) losses/(gains) on economic hedges

42

(184

)

195

-

-

53

Adjusted EBITDA

$

552

$

171

$

28

$

239

$

(3

)

$

987

Interest expense, net

(155

)

Depreciation and amortization

(359

)

Adjusted Income before income taxes

473

Adjusted income tax⁴

(96

)

Adjusted Net Income before Preferred Stock dividends

377

Cumulative dividends attributable to Series A Preferred Stock

(17

)

Adjusted Net Income⁵

360

Weighted average number of common shares outstanding - basic

230

Adjusted EPS

$

1.57

¹ Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization

² Depreciation and amortization recast to include impact of amortization of capitalized contract costs

³ Other and non-recurring includes $(50) million of property insurance proceeds

⁴ Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG's tax credits, consisting of incentive tax credit in connection with renewable projects as well as production tax credits for carbon recapture for pre-IRA periods

⁵ Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

($ in millions)

Texas

East

West/Services/

Other

Vivint

Smart Home

Corp/Elim

Total

Revenue¹

$

3,686

$

2,875

$

987

$

478

$

(5

)

$

8,021

Cost of fuel, purchased power and other cost of sales²

2,659

2,449

844

36

(3

)

5,985

Economic gross margin

1,027

426

143

442

(2

)

2,036

Operations & maintenance and other cost of operations³

256

110

58

56

(1

)

479

Selling, marketing, general & administrative⁴

221

143

64

146

3

577

Other

(2

)

2

(7

)

1

(1

)

(7

)

Adjusted EBITDA

$

552

$

171

$

28

$

239

$

(3

)

$

987

¹ Excludes MtM loss of $70 million and contract amortization of $5 million

² Includes TDSP expense, capacity and emission credits

³ Excludes other and non-recurring charges of $(51) million, deactivation costs of $11 million, ARO expense of $9 million and stock-based compensation of $2 million

⁴ Excludes stock-based compensation of $24 million, acquisition and divestiture integration and transaction costs of $2 million and other non-recurring charges of $(1) million

($ in millions)

Condensed Consolidated Results of Operations

Interest, tax, depr.,

amort.

MtM

Deactivation

Other adj.²

Adjusted EBITDA

Revenue

$

7,946

$

5

$

70

$

-

$

-

$

8,021

Cost of operations (excluding depreciation and amortization shown below)¹

5,956

12

17

-

-

5,985

Depreciation and amortization

359

(359

)

-

-

-

-

Gross margin

1,631

352

53

-

-

2,036

Operations & maintenance and other cost of operations

450

-

-

(11

)

40

479

Selling, marketing, general & administrative

602

-

-

-

(25

)

577

Other

236

(220

)

-

-

(23

)

(7

)

Net Income

$

343

$

572

$

53

$

11

$

8

$

987

¹ Excludes operations & maintenance and other cost of operations of $450 million

² Other adj. includes stock-based compensation of $26 million, acquisition and divestiture integration and transaction costs of $20 million, ARO expenses of $9 million, NRG share of adjusted EBITDA in unconsolidated affiliates of $3 million and other and non-recurring charges of $(50) million

Three Months Ended

($ in millions, except per share amounts)

September

30, 2024

Earnings/(Loss) per Share, Basic²

Earnings/(Loss) per Share, Diluted²

September

30, 2023

Earnings per

Share, Basic²

Earnings per

Share, Diluted²

Net (Loss)/Income Available for Common Stockholders

$

(784

)

$

(3.79

)

$

(3.79

)

$

326

$

1.42

$

1.41

Plus:

Dilutive impact adjustment on Net (Loss) Available for Common Stockholders³

0.09

Cumulative dividends attributable to Series A Preferred Stock

17

0.08

0.08

17

0.07

0.07

ARO expense

26

0.13

0.12

9

0.04

0.04

Contract and emission credit amortization, net

5

0.02

0.02

(7

)

(0.03

)

(0.03

)

Stock-based compensation

25

0.12

0.12

26

0.11

0.11

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates

2

0.01

0.01

3

0.01

0.01

Acquisition and divestiture integration and transaction costs

9

0.04

0.04

20

0.09

0.09

Cost to achieve

6

0.03

0.03

-

-

-

Deactivation costs

4

0.02

0.02

11

0.05

0.05

(Gain) on sale of assets

(208

)

(1.00

)

(0.98

)

-

-

-

Other and non-recurring charges⁴

13

0.06

0.06

(50

)

(0.22

)

(0.22

)

Mark to market (MtM) loss on economic hedges

1,630

7.87

7.69

53

0.23

0.23

Income Tax⁵

(247

)

(1.19

)

(1.17

)

65

0.28

0.28

Adjusted Income before income taxes

498

$

2.41

$

2.35

473

$

2.06

$

2.04

Adjusted income tax⁶

(88

)

(0.43

)

(0.42

)

(96

)

(0.42

)

(0.41

)

Adjusted Net Income before Preferred Stock dividends

410

$

1.98

$

1.93

377

$

1.64

$

1.63

Cumulative dividends attributable to Series A Preferred Stock

(17

)

(0.08

)

(0.08

)

(17

)

(0.07

)

(0.07

)

Adjusted Net Income⁷

$

393

$

1.90

$

1.85

$

360

$

1.57

$

1.55

¹ Items may not sum due to rounding

² Earnings per share amounts are based on weighted average number of common shares outstanding - basic of 207 million and 230 million for the three months ended September 30, 2024 and 2023, respectively, and on weighted average number of common shares outstanding - diluted of 212 million and 232 million for the three months ended September 30, 2024 and 2023, respectively

³ Includes the potential dilutive impacts of the Convertible Senior Notes of 3 million shares and equity compensation of 2 million shares for the three months ended September 30, 2024. Under GAAP when there is a net loss, dilutive securities are not included in the diluted share count as they are anti-dilutive. As Adjusted Net Income is in an income position and not a loss position, this line item reflects the impact of the anti-dilutive securities as if they were dilutive

⁴ 2023 other and non-recurring includes $(50) million of property insurance proceeds

⁵ Represents GAAP income tax

⁶ Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG's tax credits, consisting of incentive tax credit in connection with renewable projects as well as production tax credits for carbon recapture for pre-IRA periods. Other Adjustments are shown on pre-tax basis

⁷ Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

($ in millions, except per share amounts)

Texas

East

West/

Services/

Other

Vivint

Smart Home

Corp/Elim

Total

Net Income/(Loss)

$

259

$

1,116

$

90

$

(51

)

$

(932

)

$

482

Plus:

Interest expense, net

2

3

21

161

299

486

Income tax

-

-

(21

)

(8

)

280

251

Loss on debt extinguishment

-

-

-

-

260

260

Depreciation and amortization²

240

117

96

561

31

1,045

ARO expense

15

13

1

-

-

29

Contract and emission credit amortization, net

7

54

7

-

-

68

EBITDA

523

1,303

194

663

(62

)

2,621

Stock-based compensation³

20

9

4

46

-

79

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates

-

-

3

-

-

3

Acquisition and divestiture integration and transaction costs⁴

-

-

-

9

18

27

Cost to achieve⁵

-

-

-

-

23

23

Deactivation costs

-

13

2

-

-

15

Loss/(gain) on sale of assets

4

-

(208

)

-

-

(204

)

Other and non-recurring charges

1

9

12

11

(8

)

25

Impairments

-

-

15

-

-

15

Mark to market (MtM) losses/(gains) on economic hedges

707

(610

)

186

-

-

283

Adjusted EBITDA

$

1,255

$

724

$

208

$

729

$

(29

)

$

2,887

Interest expense, net

(486

)

Depreciation and amortization

(1,045

)

Adjusted Income before income taxes

1,356

Adjusted income tax⁶

(239

)

Adjusted Net Income before Preferred Stock dividends

1,117

Cumulative dividends attributable to Series A Preferred Stock

(51

)

Adjusted Net Income⁷

1,066

Weighted average number of common shares outstanding - basic

207

Adjusted EPS

$

5.15

¹ Adjusted EBITDA recast to exclude all impacts of amortization of capitalized contract costs related to fulfillment, now reflected in depreciation and amortization

² Depreciation and amortization recast to include impact of amortization of capitalized contract costs

³ Stock-based compensation excludes $2 million reflected in cost to achieve and $1 million reflected in acquisition and divestiture integration and transaction costs

⁴ Includes stock-based compensation of $1 million

⁵ Includes stock-based compensation of $2 million

⁶Income tax calculated using Adjusted ETR on Adjusted Income before income taxes. Adjusted ETR includes impact of NRG's tax credits, consisting of incentive tax credit in connection with renewable projects as well as production tax credits for carbon recapture for pre-IRA periods

⁷Adjusted Net Income as shown here is 'Adjusted Net Income available for common stockholders'

($ in millions)

Texas

East

West/

Services/

Other

Vivint

Smart Home

Corp/Elim

Total

Revenue¹

$

8,297

$

8,655

$

2,950

$

1,434

$

(32

)

$

21,304

Cost of fuel, purchased power and other cost of sales²

5,683

7,176

2,421

108

(17

)

15,371

Economic gross margin

2,614

1,479

529

1,326

(15

)

5,933

Operations & maintenance and other cost of operations³

754

327

177

178

3

1,439

Selling, general and administrative costs⁴

604

426

182

419

6

1,637

Other

1

2

(38

)

-

5

(30

)

Adjusted EBITDA

$

1,255

$

724

$

208

$

729

$

(29

)

$

2,887

¹ Excludes MtM gain of $(32) million and contract amortization of $25 million

² Includes TDSP expense, capacity and emission credits

³ Excludes ARO expense of $29 million, deactivation costs of $15 million, other and non-recurring charges of $10 million and stock-based compensation of $7 million

⁴ Excludes stock-based compensation of $72 million, cost to achieve of $23 million, acquisition and divestiture integration and transaction costs of $5 million and other and non-recurring charges of $2 million

($ in millions)

Condensed Consolidated Results of Operations

Interest, tax, depr.,

amort.

MtM

Deactivation

Other adj.²

Adjusted EBITDA

Revenue

$

21,311

$

25

$

(32

)

$

-

$

-

$

21,304

Cost of operations (excluding depreciation and amortization shown below)¹

15,729

(43

)

(315

)

-

-

15,371

Depreciation and amortization

1,045

(1,045

)

-

-

-

-

Gross margin

4,537

1,113

283

-

-

5,933

Operations & maintenance and other cost of operations

1,500

-

-

(15

)

(46

)

1,439

Selling, general and administrative costs

1,739

-

-

-

(102

)

1,637

Other

816

(737

)

-

-

(109

)

(30

)

Net Income

$

482

$

1,850

$

283

$

15

$

257

$

2,887