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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

August 8, 2024
Date of Report (date of earliest event reported)

NRG ENERGY, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-15891
41-1724239
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
910 Louisiana Street
Houston
Texas
77002
(Address of Principal Executive Offices)
(Zip Code)
(713) 537-3000
Registrant's telephone number, including area code
N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01NRGNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐



Item 2.02    Results of Operations and Financial Condition

On August 8, 2024, NRG Energy, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2024.  A copy of the press release is furnished as Exhibit 99.1 to this report on Form 8-K and is hereby incorporated by reference.

Item 9.01     Financial Statements and Exhibits
Exhibits
Exhibit
Number

Document
99.1
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.




SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


    NRG Energy, Inc.    
    (Registrant)    
        
    By:    /s/ Christine A. Zoino
        Christine A. Zoino
        Corporate Secretary
        

Dated: August 8, 2024



Exhibit 99.1
nrg20logo20q31920pr.jpg



NRG Energy, Inc. Reports Second Quarter Results
and Reaffirms 2024 Financial Guidance

•Strong second quarter financial and operating performance resulting in GAAP Net Income of $738 million and Adjusted EBITDA of $935 million
•Completed comprehensive preventative maintenance program for ERCOT fleet, well-prepared going into summer season and beyond
•Announcing agreement to sell Airtron HVAC business at an accretive multiple
•Submitted applications to Texas Energy Fund for 1.5 GW of shovel-ready generation capacity
•Continued to execute on liability management and capital allocation priorities, including open market share repurchases of $176 million year to date


HOUSTON—August 8, 2024—NRG Energy, Inc. (NYSE: NRG) today reported second quarter 2024 Net Income of $738 million. Adjusted EBITDA for the second quarter was $935 million, Cash Provided by Operating Activities was $1,056 million, and Free Cash Flow Before Growth Investments (FCFbG) was $663 million.

“NRG's business and financial outlook has never been stronger,” said Larry Coben, NRG Chair, President and Chief Executive Officer. “Our relentless focus on safe and reliable operations especially during peak summer and winter months, dedication to exceptional customer experiences, and disciplined execution of our strategy and capital allocation plans continue to position NRG for success.”

Consolidated Financial Results
Table 1:
Three Months EndedSix Months Ended
($ in millions)
6/30/20246/30/20236/30/20246/30/2023
Net Income/(Loss)$738 $308 $1,249 $(1,027)
Cash Provided/(Used) by Operating Activities$1,056 $570 1,323 (1,028)
Adjusted EBITDA$935 $819 $1,784 $1,465 
Free Cash Flow Before Growth Investments (FCFbG)$663 $425 $623 $628 
NRG’s second quarter 2024 Adjusted EBITDA increased by $116 million year-over-year. The East and West segments experienced margin growth from both power and natural gas as well as improvements in customer counts. This was partially offset by lower Texas results, primarily a result of asset sales in 2023 and comprehensive preventative maintenance outages undertaken in the quarter to prepare the fleet for extensive summer operations.

With the completion of a comprehensive outage and preventative maintenance program, NRG's portfolio is well-positioned for the summer months, and the company is focused on delivering top-tier energy and smart home services for its customers.

1


2024 Capital Allocation

NRG is committed to its disciplined capital allocation principles and maintaining a strong balance sheet. In the second quarter of 2024, the Company continued to opportunistically repurchase shares in the open market as part of its $2.7 billion authorization to be executed through 2025. Through July 31, 2024, NRG has completed $176 million of its $825 million share repurchase target for 2024.

During the first quarter, NRG began repurchases of its 2.75% Convertible Senior Notes due 2048 as part of its overall objective of prudent and proactive liability management. In the second quarter, NRG repurchased an additional $251 million in principal of these notes, bringing the aggregate repurchase amount to $343 million or approximately 60% of the original issuance. For the remainder of the Convertible Senior Notes outstanding, NRG has purchased capped call options to fully hedge the settlement price. Finally, in the second quarter NRG also repaid $600 million in aggregate principal amount of its 3.75% Senior Secured First Lien Notes due 2024.

On July 19, 2024, NRG announced its Board of Directors declared a quarterly dividend on the Company's common stock of $0.4075 per share, or $1.63 per share on an annualized basis. The dividend is payable on August 15, 2024, to stockholders of record as of August 1, 2024.

NRG's share repurchase program and common stock dividend are subject to maintaining satisfactory credit metrics, available capital, market conditions, and compliance with associated laws and regulations. The timing and amount of any shares of NRG’s common stock repurchased under the share repurchase authorization will be determined by NRG’s management based on market conditions and other factors. NRG will only repurchase shares when management believes it would not jeopardize the Company’s ability to maintain satisfactory credit ratings.

Strategic Developments

Airtron HVAC Sale

On August 3, 2024 the Company entered into a definitive agreement to sell its Airtron HVAC business unit for $500 million, subject to standard purchase price adjustments. Airtron is a leading installer of HVAC systems for residential new construction homes and was acquired as part of the Direct Energy acquisition in 2021. The opportunistic divestiture at an accretive 8.6x multiple on 2023 Adjusted EBITDA will provide additional capital available for allocation in 2024. The transaction is subject to regulatory approval under the Hart Scott Rodino Act and is expected to close by the end of 2024.

Texas Energy Fund

NRG has submitted applications to the Texas Energy Fund to request funding for three prospective brownfield development opportunities, totaling 1.5 GW of flexible, natural-gas generation in ERCOT. NRG's projects are shovel-ready, and assuming timely TEF approval, are expected to be completed for commercial operations between 2026 and 2028.

14th Annual Sustainability Report

NRG released its 2023 Sustainably Report, its 14th year of reporting, providing an update on the its commitment to people, environmental stewardship, and governance.













2



Segments Results

Table 2: Net Income/(Loss)
($ in millions)Three Months EndedSix Months Ended
Segment6/30/20246/30/20236/30/20246/30/2023
Texas$966 $785 $1,315 $1,069 
East
447 (101)1,028 (1,503)
West/Services/Othera
(646)(353)(1,072)(531)
Vivint Smart Homeb
$(29)$(23)$(22)$(62)
Net Income/(Loss)
$738 $308 $1,249 $(1,027)
a Includes Corporate segment
b Vivint Smart Home acquired in March 2023

Net Income for the second quarter of 2024 was $738 million, $430 million higher than the second quarter of 2023. This was primarily driven by higher unrealized non-cash mark-to-market gains on economic hedges in Texas in 2024 due to heat rate expansion in ERCOT, and losses in 2023 in the East due to declines in natural gas and power prices. This increase was partially offset by loss on debt extinguishment from the repurchase of the Company’s 2.75% Convertible Senior Notes and higher income tax expense. Certain hedge positions are required to be marked-to-market every period, while the customer contracts related to these items are not, resulting in temporary unrealized losses or gains on the economic hedges that are not reflective of the expected economics at future settlement.

Table 3: Adjusted EBITDA
($ in millions)Three Months EndedSix Months Ended
Segment6/30/20246/30/20236/30/20246/30/2023
Texas

$452 $504 $671 $758 
East

209 77 560 391 
West/Services/Othera

73 21 129 26 
Vivint Smart Homeb
$201 $217 $424 $290 
Adjusted EBITDA

$935 $819 $1,784 $1,465 
a Includes Corporate segment
b Vivint Smart Home acquired in March 2023

Texas: Second quarter Adjusted EBITDA was $452 million, $52 million lower than the second quarter of 2023. This decrease was a result of asset sales in 2023 and the impact of an extended planned preventative maintenance program to ensure summer reliability, partially offset by gains in customer volumes from increased customer counts and favorable impact from weather.

East: Second quarter Adjusted EBITDA was $209 million, $132 million higher than the second quarter of 2023. This increase was driven by lower retail supply costs for power and natural gas and increased customer counts.

West/Services/Other: Second quarter Adjusted EBITDA was $73 million, $52 million higher than the second quarter of 2023. This increase was primarily driven by lower retail power supply costs and margin expansion at Cottonwood.

Vivint Smart Home: Second quarter Adjusted EBITDA was $201 million, $16 million lower than the second quarter of 2023. The decrease is attributable to guided increases in amortization of fulfillment expenses relating to the acquisition of Vivint by NRG. Absent this change, Adjusted EBITDA would have shown an increase year-over-year, supported by 5% growth in subscriber count and 4% growth in service margin.

3



Liquidity and Capital Resources
Table 4: Corporate Liquidity
($ in millions)6/30/2412/31/23
Cash and Cash Equivalents$376 $541 
Restricted Cash16 24 
Total392 565 
Total Revolving Credit Facility and collective collateral facilities4,950 4,278 
Total Liquidity, excluding collateral deposited by counterparties$5,342 $4,843 

As of June 30, 2024, NRG's unrestricted cash was $376 million and $5.0 billion was available under the Company’s credit facilities. Total liquidity increased to $5.3 billion, increasing $499 million from the end of 2023, largely due to the $900 million increase in the Receivables Facility in the second quarter of 2024 and partly offset by the expiry of the $150 million Repurchase Facility.

Reaffirming 2024 Guidance
NRG is reaffirming its Adjusted EBITDA and FCFbG guidance for 2024 as set forth below.

Table 5: Adjusted EBITDA, Cash Provided by Operating Activities, and FCFbG Guidancea
2024
($ in millions)Guidance
Adjusted EBITDA$3,300 - $3,550
Cash Provided by Operating Activities$1,825 - $2,075
FCFbG$1,825 - $2,075
a Adjusted EBITDA and FCFbG are non-GAAP financial measures; see Appendix Table A-8 for GAAP Reconciliation. Adjusted EBITDA excludes fair value adjustments related to
derivatives. The Company is unable to provide guidance for Net Income due to the impact of such fair value adjustments related to derivatives in a given year. Cash Provided by
Operating Activities does not include changes in collateral deposits in support of risk management activities which are primarily associated with fair value adjustments related to
derivatives

Earnings Conference Call
On August 8, 2024, NRG will host a conference call at 9:00 a.m. Eastern (8:00 a.m. Central) to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials through the investor relations website under “presentations and webcasts” on investors.nrg.com. The webcast will be archived on the site for those unable to listen in real-time.

About NRG
NRG Energy is a leading energy and home services company powered by people and our passion for a smarter, cleaner, and more connected future. A Fortune 500 company operating in the United States and Canada, NRG delivers innovative solutions that help people, organizations, and businesses achieve their goals while also advocating for competitive energy markets and customer choice. More information is available at www.nrg.com. Connect with NRG on Facebook and LinkedIn, and follow us on X (formerly known as Twitter), @nrgenergy.

Forward-Looking Statements
In addition to historical information, the information presented in this press release 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, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,”
4


“outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about the Company’s future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, hazards customary in the power industry, weather conditions and extreme weather events, competition in wholesale power, gas and smart home markets, the volatility of energy and fuel prices, failure of customers or counterparties to perform under contracts, changes in the wholesale power and gas markets, changes in government or market regulations, the condition of capital markets generally and NRG’s ability to access capital markets, NRG’s ability to execute its supply strategy, risks related to data privacy, cyberterrorism and inadequate cybersecurity, the loss of data, unanticipated outages at NRG’s generation facilities, NRG’s ability to achieve its net debt targets, adverse results in current and future litigation, complaints, product liability claims and/or adverse publicity, failure to identify, execute or successfully implement acquisitions or asset sales, risks of the smart home and security industry, including risks of and publicity surrounding the sales, subscriber origination and retention process, the impact of changes in consumer spending patterns, consumer preferences, geopolitical tensions, demographic trends, supply chain disruptions, NRG’s ability to implement value enhancing improvements to plant operations and company wide processes, NRG’s ability to achieve or maintain investment grade credit metrics, NRG’s ability to proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, the inability to maintain or create successful partnering relationships, NRG’s ability to operate its business efficiently, NRG’s ability to retain customers, the ability to successfully integrate businesses of acquired companies, including Vivint Smart Home, NRG’s ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, NRG’s ability to execute its capital allocation plan. Achieving investment grade credit metrics is not an indication of or guarantee that the Company will receive investment grade credit ratings. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The Adjusted EBITDA, cash provided by operating activities and Free Cash Flow before Growth guidance are estimates as of August 8, 2024. These estimates are based on assumptions NRG believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this press release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at www.sec.gov. For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in NRG’s most recent Annual Report on Form 10-K, and in subsequent SEC filings. NRG’s forward-looking statements speak only as of the date of this communication or as of the date they are made.

Contacts
Media
Investors
Chevalier Gray
Brendan Mulhern
832.763.3454
609.524.4767


5


NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended June 30,Six months ended June 30,
(In millions, except for per share amounts)2024202320242023
Revenue
Revenue$6,659 $6,348 $14,088 $14,070 
Operating Costs and Expenses
Cost of operations (excluding depreciation and amortization shown below)4,356 4,962 10,041 13,740 
Depreciation and amortization285 315 553 505 
Impairment losses15 — 15 — 
Selling, general and administrative costs592 522 1,183 948 
Acquisition-related transaction and integration costs6 22 15 93 
Total operating costs and expenses5,254 5,821 11,807 15,286 
Gain on sale of assets5 3 1 202 
Operating Income/(Loss)1,410 530 2,282 (1,014)
Other Income/(Expense)
Equity in earnings of unconsolidated affiliates4 5 7 10 
Other income, net3 13 33 29 
Loss on debt extinguishment(202)— (260)— 
Interest expense(163)(151)(315)(299)
Total other expense(358)(133)(535)(260)
Income/(Loss) Before Income Taxes1,052 397 1,747 (1,274)
Income tax expense/(benefit)314 89 498 (247)
Net Income/(Loss)$738 $308 $1,249 $(1,027)
Less: Cumulative dividends attributable to Series A Preferred Stock17 17 34 21 
Net Income/(Loss) Available for Common Stockholders$721 $291 $1,215 $(1,048)
Income/(Loss) per Share
Weighted average number of common shares outstanding — basic208 231 209 230 
Income/(Loss) per Weighted Average Common Share — Basic $3.47 $1.26 $5.81 $(4.56)
Weighted average number of common shares outstanding — diluted214 232 214 230 
Income/(Loss) per Weighted Average Common Share —Diluted$3.37 $1.25 $5.68 $(4.56)

6


NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(Unaudited)
Three months ended June 30,Six months ended June 30,
(In millions)2024202320242023
Net Income/(Loss)$738 $308 $1,249 $(1,027)
Other Comprehensive (Loss)/Income
Foreign currency translation adjustments(2)6 (10)8 
Defined benefit plans(1)— (2)(1)
Other comprehensive (loss)/income(3)6 (12)7 
Comprehensive Income/(Loss)$735 $314 $1,237 $(1,020)



7


NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2024December 31, 2023
(In millions, except share data)(Unaudited)(Audited)
ASSETS
Current Assets
Cash and cash equivalents$376 $541 
Funds deposited by counterparties688 84 
Restricted cash16 24 
Accounts receivable, net3,402 3,542 
Inventory623 607 
Derivative instruments3,520 3,862 
Cash collateral paid in support of energy risk management activities384 441 
Prepayments and other current assets797 626 
Total current assets9,806 9,727 
Property, plant and equipment, net1,790 1,763 
Other Assets
Equity investments in affiliates45 42 
Operating lease right-of-use assets, net201 179 
Goodwill5,060 5,079 
Customer relationships, net1,9462,164
Other intangible assets, net1,467 1,763 
Derivative instruments2,625 2,293 
Deferred income taxes1,841 2,251 
Other non-current assets981 777 
Total other assets14,166 14,548 
Total Assets$25,762 $26,038 
8


June 30, 2024December 31, 2023
(In millions, except share data)(Unaudited)(Audited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt and finance leases$262 $620 
Current portion of operating lease liabilities91 90 
Accounts payable2,109 2,325 
Derivative instruments2,664 4,019 
Cash collateral received in support of energy risk management activities688 84 
Deferred revenue current779720
Accrued expenses and other current liabilities1,709 1,642 
Total current liabilities8,302 9,500 
Other Liabilities
Long-term debt and finance leases10,425 10,133 
Non-current operating lease liabilities144 128 
Derivative instruments1,435 1,488 
Deferred income taxes8 22 
Deferred revenue non-current906914
Other non-current liabilities919 947 
Total other liabilities13,837 13,632 
Total Liabilities22,139 23,132 
Commitments and Contingencies
Stockholders' Equity
Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at June 30, 2024 and December 31, 2023, aggregate liquidation preference of $650; at June 30, 2024 and December 31, 2023
650 650
Common stock; $0.01 par value; 500,000,000 shares authorized; 266,552,386 and 267,330,470 shares issued and 207,498,428 and 208,130,950 shares outstanding at June 30, 2024 and December 31, 2023, respectively
3 3 
Additional paid-in-capital3,229 3,416 
Retained earnings1,863 820 
Treasury stock, at cost; 59,053,958 shares and 59,199,520 shares at June 30, 2024 and December 31, 2023, respectively
(2,019)(1,892)
Accumulated other comprehensive loss(103)(91)
Total Stockholders' Equity3,623 2,906 
Total Liabilities and Stockholders' Equity$25,762 $26,038 
    




9


NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended June 30,
(In millions)20242023
Cash Flows from Operating Activities
Net Income/(Loss)$1,249 $(1,027)
Adjustments to reconcile net income/(loss) to cash provided/(used) by operating activities:
Equity in and distributions from earnings of unconsolidated affiliates(4)(9)
Depreciation and amortization553 505 
Accretion of asset retirement obligations3 5 
Provision for credit losses133 80 
Amortization of nuclear fuel— 26 
Amortization of financing costs and debt discounts21 31 
Loss on debt extinguishment260 — 
Amortization of in-the-money contracts and emissions allowances73 112 
Amortization of unearned equity compensation57 61 
Net loss/(gain) on sale of assets and disposal of assets8 (187)
Impairment losses15 — 
Changes in derivative instruments(1,384)1,515 
Changes in current and deferred income taxes and liability for uncertain tax benefits390 (282)
Changes in collateral deposits in support of risk management activities660 (1,355)
Changes in nuclear decommissioning trust liability— 2 
Changes in other working capital(711)(505)
Cash provided/(used) by operating activities$1,323 $(1,028)
Cash Flows from Investing Activities
Payments for acquisitions of businesses and assets, net of cash acquired(32)(2,498)
Capital expenditures(172)(324)
Net purchases of emissions allowances(11)(25)
Investments in nuclear decommissioning trust fund securities— (185)
Proceeds from the sale of nuclear decommissioning trust fund securities— 180 
Proceeds from sales of assets, net of cash disposed11 229 
Proceeds from insurance recoveries for property, plant and equipment, net3 121 
Cash used by investing activities$(201)$(2,502)
Cash Flows from Financing Activities
Proceeds from issuance of preferred stock, net of fees— 635 
Payments of dividends to preferred and common stockholders(204)(174)
Equivalent shares purchased in lieu of tax withholdings(35)(16)
Payments for share repurchase activity
(90)— 
Net (payments)/receipts from settlement of acquired derivatives that include financing elements(12)318 
Net proceeds of Revolving Credit Facility and Receivable Securitization Facilities — 500 
Proceeds from issuance of long-term debt875 731 
Payments of debt issuance costs(12)(22)
Repayments of long-term debt and finance leases(956)(10)
Payments for debt extinguishment costs(257)— 
Proceeds from credit facilities625 1,870 
Repayments to credit facilities(625)(1,670)
Cash (used)/provided by financing activities$(691)$2,162 
Effect of exchange rate changes on cash and cash equivalents— 3 
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash431 (1,365)
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period649 2,178 
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period$1,080 $813 


10


Appendix Table A-1: Second Quarter 2024 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation from Net Income/(Loss):
($ in millions)Texas
East
West/Services/ OtherVivint Smart HomeCorp/ElimTotal
Net Income/(Loss)$966 $447 $2 $(29)$(648)$738 
Plus:
Interest expense, net1 2 9 49 86 147 
Income tax— — (6)(2)322 314 
Loss on debt extinguishment— — — — 202 202 
Depreciation and amortization63 22 46 144 10 285 
ARO Expense3 (4)— — — (1)
Contract and emission credit amortization, net2 (14)2 — — (10)
EBITDA1,035 453 53 162 (28)1,675 
Stock-based compensation7 3 1 16 — 27 
Amortization of customer acquisition costs1
15 17 2 12 — 46 
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates— — 1 — — 1 
Acquisition and divestiture integration and transaction costs— — — 2 6 8 
Cost to achieve— — — — 8 8 
Deactivation costs— 4 1 — — 5 
Other and non-recurring charges— — 11 9 5 25 
Impairments— — 15 — — 15 
Mark to market (MtM) (gains) on economic hedges(605)(268)(2)— — (875)
Adjusted EBITDA$452 $209 $82 $201 $(9)$935 
1 Amortization of customer acquisition costs, which are excluded from the calculation of Adjusted EBITDA, is the income statement recognition of capitalized
costs related to commissions and other costs related to securing the new customer




Second Quarter 2024 condensed financial information by Operating Segment:
($ in millions)Texas
East
West/Services/ OtherVivint Smart HomeCorp/ElimTotal
Revenue1
$2,763 $2,473 $894 $467 $(15)$6,582 
Cost of fuel, purchased power and other cost of sales2
1,853 2,029 709 66 (6)4,651 
Economic gross margin
910 444 185 401 (9)1,931 
Operations & maintenance and other cost of operations3
282 105 59 58 1 505 
Selling, marketing, general and administrative4
176 130 66 142 (2)512 
Other
— — (22)— 1 (21)
Adjusted EBITDA$452 $209 $82 $201 $(9)$935 
1 Excludes MtM gain of $(84) million and contract amortization of $7 million
2 Includes TDSP expense, capacity and emission credits
3 Excludes deactivation costs of $5 million, stock-based compensation of $2 million, amortization of customer acquisition costs of $2 million and ARO expenses of $(1) million
4 Excludes amortization of customer acquisition costs of $44 million, stock-based compensation of $25 million, cost to achieve of $8 million, other and non-recurring charges of $2 million and acquisition and divestiture integration and transaction costs of $1 million
11


The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)Condensed Consolidated Results of OperationsInterest, tax, depr., amort.MtMDeactivation
Other adj.2
Adjusted EBITDA
Revenue$6,659 $7 $(84)$— $— $6,582 
Cost of operations (excluding depreciation and amortization shown below)1
3,843 17 791 — — 4,651 
Depreciation and Amortization285 (285)— — — — 
Gross margin2,531 275 (875)— — 1,931 
Operations & maintenance and other cost of operations513 — — (5)(3)505 
Selling, marketing, general & administrative
592 — — — (80)512 
Other
688 (461)— — (248)(21)
Net Income/(Loss)$738 $736 $(875)$5 $331 $935 
1 Excludes operations & maintenance and other cost of operations of $513 million
2 Other adj. includes loss on debt extinguishment of $202 million, amortization of customer acquisition costs of $46 million, stock-based compensation of $27
million, other and non-recurring charges of $25 million, impairments of $15 million, acquisition and divestiture integration and transaction costs of $8 million, cost to achieve of $8 million, NRG share of adjusted EBITDA in unconsolidated affiliates of $1 million and ARO expenses of $(1) million

12


Appendix Table A-2: Second Quarter 2023 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation from Net Income/(Loss):
($ in millions)TexasEastWest/Services/ OtherVivint Smart HomeCorp/ElimTotal
Net Income/(Loss)$785 $(101)$(129)$(23)$(224)$308 
Plus:
Interest expense, net3 (4)6 28 104 137 
Income tax— 1 1 — 87 89 
Depreciation and amortization73 30 23 180 9 315 
ARO Expense2 (2)(1)— — (1)
Contract and emission credit amortization, net3 (16)3 — — (10)
EBITDA866 (92)(97)185 (24)838 
Stock-based compensation1
5 2 1 18 — 26 
Amortization of customer acquisition costs2
12 11 1 4 — 28 
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates— — 4 — — 4 
Acquisition and divestiture integration and transaction costs3
— — — 7 16 23 
Deactivation costs— 6 3 — — 9 
(Gain) on sale of assets— (3)— — — (3)
Other and non-recurring charges(45)1 (2)3 1 (42)
Mark to market (MtM) (gains)/losses on economic hedges(334)152 118 — — (64)
Adjusted EBITDA$504 $77 $28 $217 $(7)$819 
1 Stock-based compensation excludes $3 million reflected in acquisition and divestiture integration and transaction costs
2 Amortization of customer acquisition costs, which are excluded from the calculation of Adjusted EBITDA, is the income statement recognition of capitalized
costs related to commissions and other costs related to securing the new customer
3 Includes stock-based compensation of $3 million




Second Quarter 2023 condensed financial information by Operating Segment:
($ in millions)Texas
East
West/Services/ OtherVivint Smart HomeCorp/ElimTotal
Revenue1
$2,515 $2,458 $870 $444 $(6)$6,281 
Cost of fuel, purchased power and other cost of sales2
1,587 2,144 742 41 (5)4,509 
Economic gross margin
928 314 128 403 (1)1,772 
Operations & maintenance and other cost of operations3
267 117 58 53 (1)494 
Selling, marketing, general & administrative4
157 123 52 134 5 471 
Other
— (3)(10)(1)2 (12)
Adjusted EBITDA$504 $77 $28 $217 $(7)$819 
1 Excludes MtM gain of $(75) million and contract amortization of $8 million
2 Includes TDSP expense, capacity and emission credits
3 Excludes other and non-recurring charges of $(45) million, ARO expense of $(1) million, deactivation costs of $9 million, stock-based compensation of $2 million and amortization of customer acquisition costs of $1 million
4 Excludes amortization of customer acquisition costs of $27 million and stock-based compensation of $24 million



13


The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)Condensed Consolidated Results of OperationsInterest, tax, depr., amort.MtMDeactivation
Other adj.2
Adjusted EBITDA
Revenue$6,348 $8 $(75)$— $— $6,281 
Cost of operations (excluding depreciation and amortization shown below)1
4,502 18 (11)— — 4,509 
Depreciation and amortization315 (315)— — — — 
Gross margin1,531 305 (64)— — 1,772 
Operations & maintenance and other cost of operations460 — — (9)43 494 
Selling, marketing, general & administrative
522 — — — (51)471 
Other
241 (226)— — (27)(12)
Net Income/(Loss)$308 $531 $(64)$9 $35 $819 
1 Excludes operations & maintenance and other cost of operations of $460 million
2 Other adj. includes amortization of customer acquisition costs of $28 million, stock-based compensation of $26 million, acquisition and divestiture integration and transaction costs of $23 million, NRG share of adjusted EBITDA in unconsolidated affiliates of $4 million, other and non-recurring charges of $(42) million, gain on sale of assets $(3) million and ARO expenses of $(1) million


14


Appendix Table A-3: YTD Second Quarter 2024 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation from Net Income/(Loss):
($ in millions)Texas
East
West/ Services/ OtherVivint Smart HomeCorp/ElimTotal
Net Income/(Loss)$1,315 $1,028 $(58)$(22)$(1,014)$1,249 
Plus:
Interest expense, net1 2 14 87 177 281 
Income tax— (1)(21)— 520 498 
Loss on debt extinguishment— — — — 260 260 
Depreciation and amortization130 45 70 288 20 553 
ARO expense4 (1)— — — 3 
Contract and emission credit amortization, net2 58 3 — — 63 
EBITDA1,452 1,131 8 353 (37)2,907 
Stock-based compensation1
14 7 2 31 — 54 
Amortization of customer acquisition costs2
30 33 3 27 — 93 
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates— — 1 — — 1 
Acquisition and divestiture integration and transaction costs3
— — — 8 10 18 
Cost to achieve4
— — — — 17 17 
Deactivation costs— 9 2 — — 11 
Loss on sale of assets4 — — — — 4 
Other and non-recurring charges1 (1)12 5 (6)11 
Impairments— — 15 — — 15 
Mark to market (MtM) (gains)/losses on economic hedges(830)(619)102 — — (1,347)
Adjusted EBITDA$671 $560 $145 $424 $(16)$1,784 
1 Stock-based compensation excludes $2 million reflected in cost to achieve and $1 million reflected in acquisition and divestiture integration and transaction
costs
2 Amortization of customer acquisition costs, which are excluded from the calculation of Adjusted EBITDA, is the income statement recognition of capitalized
costs related to commissions and other costs related to securing the new customer
3 Includes stock-based compensation of $1 million
4 Includes stock-based compensation of $2 million


YTD Second Quarter 2024 condensed financial information by Operating Segment:
($ in millions)Texas
East
West/ Services/ OtherVivint Smart HomeCorp/ElimTotal
Revenue1
$4,996 $6,049 $2,122 $935 $(21)$14,081 
Cost of fuel, purchased power and other cost of sales2
3,461 5,010 1,770 119 (12)10,348 
Economic gross margin
1,535 1,039 352 816 (9)3,733 
Operations & maintenance and other cost of operations3
514 208 113 112 1 948 
Selling, general and administrative costs4
349 272 118 281 3 1,023 
Other
1 (1)(24)(1)3 (22)
Adjusted EBITDA$671 $560 $145 $424 $(16)$1,784 
1 Excludes MtM gain of $(24) million and contract amortization of $17 million
2 Includes TDSP expense, capacity and emission credits
3 Excludes deactivation costs of $11 million, stock-based compensation of $5 million, amortization of customer acquisition costs of $4 million, ARO expense of $3 million and other and non-recurring charges of $(1) million,
4 Excludes amortization of customer acquisition costs of $89 million, stock-based compensation of $49 million, cost to achieve of $17 million, other and non-recurring charges of $3 million and acquisition and divestiture integration and transaction costs of $2 million
15


The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)Condensed Consolidated Results of OperationsInterest, tax, depr., amort.MtMDeactivation
Other adj.2
Adjusted EBITDA
Revenue$14,088 $17 $(24)$— $— $14,081 
Cost of operations (excluding depreciation and amortization shown below)1
9,071 (46)1,323 — — 10,348 
Depreciation and amortization553 (553)— — — — 
Gross margin4,464 616 (1,347)— — 3,733 
Operations & maintenance and other cost of operations970 — — (11)(11)948 
Selling, general and administrative costs
1,183 — — — (160)1,023 
Other
1,062 (779)— — (305)(22)
Net Income/(Loss)$1,249 $1,395 $(1,347)$11 $476 $1,784 
1 Excludes operations & maintenance and other cost of operations of $970 million
2 Other adj. includes loss on debt extinguishment of $260 million, amortization of customer acquisition costs of $93 million, stock-based compensation of $54 million, acquisition and divestiture integration and transaction costs of $18 million, cost to achieve of $17 million, impairments of $15 million, other and non-recurring charges of $11 million, loss on sale of assets $4 million, ARO expense of $3 million and NRG share of adjusted EBITDA in unconsolidated affiliates of $1 million
16


Appendix Table A-4: YTD Second Quarter 2023 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation from Net Income/(Loss):
($ in millions)TexasEastWest/ Services/ Other
Vivint Smart Home1
Corp/ElimTotal
Net Income/(Loss)$1,069 $(1,503)$(433)$(62)$(98)$(1,027)
Plus:
Interest expense, net3 (10)12 54 210 269 
Income tax— 1 (46)— (202)(247)
Depreciation and amortization148 60 47 232 18 505 
ARO expense4 1 — — — 5 
Contract and emission credit amortization, net4 99 6 — — 109 
EBITDA1,228 (1,352)(414)224 (72)(386)
Stock-based compensation2
11 4 2 22 — 39 
Amortization of customer acquisition costs3
26 22 2 4 — 54 
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates— — 8 — — 8 
Acquisition and divestiture integration and transaction costs4
— — — 37 58 95 
Deactivation costs— 10 6 — — 16 
(Gain) on sale of assets— (202)— — — (202)
Other and non-recurring charges(44)2 — 3 — (39)
Mark to market (MtM) (gains)/losses on economic hedges(463)1,907 436 — — 1,880 
Adjusted EBITDA$758 $391 $40 $290 $(14)$1,465 
1 Vivint Smart Home acquired in March 2023
2 Stock-based compensation excludes $23 million reflected in acquisition and divestiture integration and transaction costs
3 Amortization of customer acquisition costs, which are excluded from the calculation of Adjusted EBITDA, is the income statement recognition of capitalized
costs related to commissions and other costs related to securing the new customer
4 Includes stock-based compensation of $23 million


YTD Second Quarter 2023 condensed financial information by Operating Segment:
($ in millions)Texas
East
West/ Services/ Other
Vivint Smart Home1
Corp/ElimTotal
Revenue2
$4,549 $6,610 $2,177 $592 $(5)$13,923 
Cost of fuel, purchased power and other cost of sales3
2,954 5,744 1,927 52 (3)10,674 
Economic gross margin
1,595 866 250 540 (2)3,249 
Operations & maintenance and other cost of operations4
529 220 127 71 (2)945 
Selling, marketing, general & administrative5
309 258 101 180 12 860 
Other
(1)(3)(18)(1)2 (21)
Adjusted EBITDA$758 $391 $40 $290 $(14)$1,465 
1 Vivint Smart Home acquired in March 2023
2 Excludes MtM gain of $(166) million and contract amortization of $19 million
3 Includes TDSP expense, capacity and emission credits
4 Excludes other and non-recurring charges of $(42) million, deactivation costs of $16 million, ARO expense of $5 million, amortization of customer acquisition costs of $3 million and stock-based compensation of $3 million
5 Excludes amortization of customer acquisition costs of $51 million, stock-based compensation of $36 million and acquisition and divestiture integration and
transaction costs of $1 million




17




The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)Condensed Consolidated Results of OperationsInterest, tax, depr., amort.MtMDeactivation
Other adj.2
Adjusted EBITDA
Revenue$14,070 $19 $(166)$— $— $13,923 
Cost of operations (excluding depreciation and amortization shown below)1
12,810 (90)(2,046)— — 10,674 
Depreciation and amortization505 (505)— — — — 
Gross margin755 614 1,880 — — 3,249 
Operations & maintenance and Other cost of operations930 — — (16)31 945 
Selling, marketing, general & administrative 948 — — — (88)860 
Other
(96)(22)— — 97 (21)
Net (Loss)/Income$(1,027)$636 $1,880 $16 $(40)$1,465 
1 Excludes operations & maintenance and other cost of operations of $930 million
2 Other adj. includes acquisition and divestiture integration and transaction costs of $95 million, amortization of customer acquisition costs of $54 million, stock-based compensation costs of $39 million, NRG share of adjusted EBITDA in unconsolidated affiliates of $8 million, ARO expense of $5 million, gain on sale of assets of $(202) million and other and non-recurring charges of $(39) million
18


Appendix Table A-5: Three Months Ended June 30, 2024 and June 30, 2023 Free Cash Flow before Growth Investments (FCFbG)

The following table summarizes the calculation of FCFbG, providing a reconciliation to Cash provided by operating activities:

Three Months Ended
($ in millions)6/30/246/30/23
Adjusted EBITDA$935 $819 
Interest payments, net(84)(114)
Income tax(98)(36)
Net deferred revenue1
115 121 
Amortization of customer fulfillment costs2
27 6 
Gross capitalized contract costs3
(270)(302)
Collateral / working capital / other assets and liabilities431 76 
Cash provided by operating activities1,056 570 
Net payments from settlement of acquired derivatives that include
financing elements		(20)(18)
Acquisition and divestiture integration and transaction costs4
18 19 
Proceeds from sale of land8 — 
Encina site improvement
— 4 
Adjustment for change in collateral(371)(57)
Nuclear decommissioning trust liability— (17)
Effect of exchange rate changes on cash and cash equivalents2 — 
Adjusted cash provided by operating activities693 501 
Maintenance capital expenditures, net5
(71)(113)
Environmental capital expenditures(6)— 
Cost of acquisition47 37 
Free Cash Flow before Growth Investments (FCFbG)$663 $425 
1 The cash impact of Net deferred revenue is the net change in the balance sheet from capitalizing proceeds received from installation and equipment sales and
then recognizing those proceeds as revenue on a straight-line basis over the expected period of benefit
2 Amortization of customer fulfillment costs, which are included in the calculation of Adjusted EBITDA, are the income statement recognition of capitalized
contract costs related to the sale and installation of equipment necessary for a customer to receive the Vivint Smart Home service
3 Gross capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, modification of existing contracts or to
the fulfillment of the related subscriber contracts; these costs include installed products, commissions, other compensation and cost of installation of new or
upgraded customer contracts; these costs are amortized on a straight-line basis over the expected period of benefit
4 Three months ended 6/30/24 includes $10 million Cost to achieve payments; three months ended 6/30/23 excludes $3 million non-cash stock-based compensation
5 Three months ended 6/30/23 includes W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment of $50 million
19


Appendix Table A-6: Six Months Ended June 30, 2024 and 2023 Free Cash Flow before Growth Investments (FCFbG)


The following table summarizes the calculation of FCFbG, providing a reconciliation to Cash (used)/provided by operating activities:
Six Months Ended
($ in millions)6/30/246/30/23
Adjusted EBITDA$1,784 $1,465 
Interest payments, net(275)(205)
Income tax(106)(32)
Net deferred revenue1
51 119 
Amortization of customer fulfillment costs2
48 6 
Gross capitalized contract costs3
(439)(357)
Collateral/working capital/other assets and liabilities260 (2,024)
Cash provided by/(used by) operating activities1,323 (1,028)
Net (payments)/receipts from settlement of acquired derivatives that include financing elements(12)318 
Acquisition and divestiture integration and transaction costs4
35 75 
Astoria fees— 3 
Proceeds from sale of land8 — 
Encina site improvement
— 7 
Adjustment for change in collateral(660)1,355 
Nuclear decommissioning trust liability— (5)
Effect of exchange rate changes on cash and cash equivalents— 3 
Adjusted cash provided by operating activities694 728 
Maintenance capital expenditures, net5
(123)(154)
Environmental capital expenditures(8)— 
Cost of acquisition60 54 
Free Cash Flow before Growth Investments (FCFbG)$623 $628 
1 The cash impact of Net deferred revenue is the net change in the balance sheet from capitalizing proceeds received from installation and equipment sales and
then recognizing those proceeds as revenue on a straight-line basis over the expected period of benefit
2 Amortization of customer fulfillment costs, which are included in the calculation of Adjusted EBITDA, are the income statement recognition of capitalized
contract costs related to the sale and installation of equipment necessary for a customer to receive the Vivint Smart Home service
3 Gross capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, modification of existing contracts or to
the fulfillment of the related subscriber contracts; these costs include installed products, commissions, other compensation and cost of installation of new or
upgraded customer contracts; these costs are amortized on a straight-line basis over the expected period of benefit
4 Six months ended 6/30/24 includes $19 million Cost to achieve payments and excludes $2 million non-cash stock-based compensation; six months ended 6/30/23 excludes $20 million non-cash stock-based compensation
5 Six months ended 6/30/24 includes W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment of $3 million; six months
ended 6/30/23 includes W.A. Parish Unit 8 and Limestone Unit 1 insurance recoveries related to property, plant and equipment of $121 million
20


Appendix Table A-7: Six Months Ended June 30, 2024 Sources and Uses of Liquidity

The following table summarizes the sources and uses of liquidity for the six months ended June 30, 2024:
($ in millions)Six months ended June 30, 2024
Sources:
Adjusted cash provided by operating activities694 
Proceeds from issuance of long-term debt875 
Change in availability under revolving credit facility and collective collateral facilities672 
Return of cash collateral paid in support of energy risk management activities57 
Proceeds from sales of assets, net of cash disposed11 
Uses:
Repayments of long-term debt and finance leases(956)
Payments for debt extinguishment costs(257)
Payments of dividends to preferred and common stockholders(204)
Maintenance capital expenditures, net1
(131)
Payments for share repurchase activity(90)
Investments and integration capital expenditures(38)
Payments for shares repurchased in lieu of tax withholdings(35)
Acquisition and divestiture integration and transaction costs(35)
Payments for acquisitions of businesses and assets, net of cash acquired (32)
Payments of debt issuance costs(12)
Net purchases of emission allowances(11)
Other investing and financing(9)
Change in Total Liquidity$499 
1 Includes $3 million of W.A. Parish Unit 8 insurance recoveries related to property, plant and equipment


21


Appendix Table A-8: 2024 Guidance Reconciliations
The following table summarizes the calculation of Adjusted EBITDA providing reconciliation to Net Income, and the calculation of FCFbG providing a reconciliation to Cash provided by operating activities:



2024
($ in millions)Guidance
Net Income1
$ 750 - 1,000
Interest expense, net640 
Income tax345 
Depreciation and amortization1,075 
ARO expense25 
  Amortization of customer acquisition costs2
215 
  Stock-based compensation3
100 
  Acquisition and divestiture integration and transaction costs55 
Other4
95 
Adjusted EBITDA3,300 - 3,550
Interest payments, net(600)
Income tax(160)
Net deferred revenue5
190 
Amortization of customer fulfillment costs6
130 
Gross capitalized contract costs7
(830)
Working capital/other assets and liabilities8
(205)
Cash provided by operating activities9
1,825 - 2,075
Acquisition and other costs8
124 
Adjusted cash provided by operating activities1,949 - 2,199
Maintenance capital expenditures, net10
(240) - (260)
Environmental capital expenditures(20) - (30)
Cost of acquisition145
Free Cash Flow before Growth Investments (FCFbG)$ 1,825 - 2,075
1 For purposes of guidance, fair value adjustments related to derivatives are assumed to be zero
2 Amortization of customer acquisition costs is the income statement recognition of capitalized costs related to commissions and other costs related to
securing new customers. NRG amortization of customer acquisition costs, excluding Vivint, is expected to be $135 million and Vivint is expected to be $80
million
3 NRG stock-based compensation, excluding Vivint, is expected to be $40 million and Vivint is expected to be $60 million
4 Includes adjustments for sale of assets, adjustments to reflect NRG share of Adjusted EBITDA in unconsolidated affiliates, deactivation costs, other non-
recurring expenses, and does not include the adjustment for Loss on debt extinguishment which was $260 million as of June 30, 2024
5 The cash impact of Net deferred revenue is the net change in the balance sheet from capitalizing proceeds received from installation and equipment and
then recognizing those proceeds as revenue on a straight-line basis over the expected period of benefit
6 Amortization of customer fulfillment costs, which are included in the calculation of Adjusted EBITDA, are the income statement recognition of capitalized
contract costs related to the sale and installation of equipment necessary for a customer to receive the Vivint Smart Home service
7 Gross capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, modification of existing contracts
or to the fulfillment of the related subscriber contracts; these costs include installed products, commissions, other compensation, and cost of installation of
new or upgraded customer contracts; these costs are amortized on a straight-line basis over the expected period of benefit
8 Working capital / other assets and liabilities include payments for Acquisition and divestiture integration and transaction costs, which is adjusted in
Acquisition and other costs
9 Excludes fair value adjustments related to derivatives and changes in collateral deposits in support of risk management activities
10 Includes W.A. Parish Unit 8 expected insurance recoveries related to property, plant and equipment









22


Appendix Table A-9: Actual Full Year 2023 Adjusted EBITDA Reconciliation for Airtron
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation from Net Income:
($ in millions)Airtron
(Unaudited)
Net Income$29 
Plus:
Depreciation and amortization28 
EBITDA57 
Other costs1 
Adjusted EBITDA$58 













































23


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 results will be unaffected by unusual or non-recurring items.
EBITDA represents net income before interest expense (including loss on debt extinguishment), income taxes, depreciation and amortization, asset retirement obligation expenses, contract amortization consisting of amortization of power and fuel contracts and amortization of emission allowances. EBITDA is presented because NRG considers it an important supplemental measure of its performance and believes debt-holders frequently use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:

•EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;
•EBITDA does not reflect changes in, or cash requirements for, working capital needs;
•EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments;
•Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
•Other companies in this industry may calculate EBITDA differently than NRG does, limiting its usefulness as a comparative measure.
Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to use to invest in the growth of NRG’s business. NRG compensates for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA only supplementally. See the statements of cash flow included in the financial statements that are a part of this news release.

Adjusted EBITDA is presented as a further supplemental measure of operating performance. As NRG defines it, Adjusted EBITDA represents EBITDA excluding the impact of stock-based compensation, amortization of customer acquisition costs (primarily amortized commissions), impairment losses, deactivation costs, gains or losses on sales, dispositions or retirements of assets, any mark-to-market gains or losses from forward position of economic hedges, adjustments to exclude the Adjusted EBITDA related to the non-controlling interest, gains or losses on the repurchase, modification or extinguishment of debt, the impact of restructuring and any extraordinary, unusual or non-recurring items, plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments.  The reader is encouraged to evaluate each adjustment and the reasons NRG considers it appropriate for supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to all of the limitations applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, the reader should be aware that in the future NRG may incur expenses similar to the adjustments in this news release.

Management believes Adjusted EBITDA is useful to investors and other users of NRG's financial statements in evaluating its operating performance because it provides an additional tool to compare business performance across companies and across periods and adjusts for items that we do not consider indicative of NRG’s future operating performance. This measure is widely used by debt-holders to analyze operating performance and debt service capacity and by equity investors to measure our operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired. Management uses Adjusted EBITDA as a measure of operating performance to assist in comparing performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations, and for evaluating actual results against such expectations, and in communications with NRG's Board of Directors, shareholders, creditors, analysts and investors concerning its financial performance.
Adjusted Cash provided by operating activities is a non-GAAP measure NRG provides to show Cash provided/(used) by operating activities 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, integration, related restructuring costs, changes in the nuclear decommissioning trust liability, and the impact of extraordinary, unusual or non-recurring items. The Company provides the reader with this alternative view of Cash provided/(used) by operating activities because the cash settlement of these derivative contracts materially impact operating revenues and cost of sales, while GAAP requires NRG to treat them as if there was a financing activity associated with the contracts as of the acquisition dates. The Company adds back merger, integration related restructuring costs as they are one time and unique in nature and do not reflect ongoing Cash Flows from Operating Activities and they are fully disclosed to investors. The company excludes changes in the nuclear
24


decommissioning trust liability as these amounts are offset by changes in the decommissioning fund shown in Cash Flows from Investing Activities.

Free Cash Flow before Growth Investments is Adjusted Cash provided by operating activities less maintenance and environmental capital expenditures, net of funding and insurance recoveries related to property, plant and equipment, dividends from preferred instruments treated as debt by ratings agencies, and distributions to non-controlling interests and is used by NRG predominantly as a forecasting tool to estimate cash available for debt reduction and other capital allocation alternatives. The reader is encouraged to evaluate each of these adjustments and the reasons NRG considers them appropriate for supplemental analysis. Because we have mandatory debt service requirements (and other non-discretionary expenditures) investors should not rely on Free Cash Flow before Growth Investments as a measure of cash available for discretionary expenditures.

Free Cash Flow before Growth Investments is utilized by Management in making decisions regarding the allocation of capital. Free Cash Flow before Growth Investments is presented because the Company believes it is a useful tool for assessing the financial performance in the current period. In addition, NRG’s peers evaluate cash available for allocation in a similar manner and accordingly, it is a meaningful indicator for investors to benchmark NRG's performance against its peers. Free Cash Flow before Growth Investments is a performance measure and is not intended to represent Net Income/(Loss), Cash provided/(used) by operating activities (the most directly comparable U.S. GAAP measure), or liquidity and is not necessarily comparable to similarly titled measures reported by other companies.
25

v3.24.2.u1
Cover Cover
Aug. 08, 2024
Cover [Abstract]  
Document Type 8-K
Entity Registrant Name NRG ENERGY, INC.
Document Period End Date Aug. 08, 2024
Entity Central Index Key 0001013871
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 001-15891
Entity Tax Identification Number 41-1724239
Entity Address, Address Line One 910 Louisiana Street
Entity Address, City or Town Houston
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77002
City Area Code 713
Local Phone Number 537-3000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01
Trading Symbol NRG
Security Exchange Name NYSE
Entity Emerging Growth Company false
NRG Energy (NYSE:NRG)
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