- Strong financial and operational performance in the first quarter of 2024 with GAAP Net Income of $511 million and Adjusted EBITDA of $849 million
- Diversified supply strategy performed well across all segments resulting in margin expansion in the East and West while mitigating the impacts of mild winter weather conditions in Texas
- Consumer Energy and Smart Home platforms increased customer counts year over year by 8% and 6%, respectively
- Concluded previously announced $950 million accelerated share repurchase program at an average price of $50.43 per share, and reaffirming 2024 capital allocation commitment of $825 million in additional share repurchases
- Advanced site preparations for generation development opportunities at three existing sites in ERCOT, representing approximately 1.5 GW of new, dispatchable generation capacity
HOUSTON–(BUSINESS WIRE)–NRG Energy, Inc. (NYSE: NRG) today reported first quarter 2024 Net Income of $511 million. Adjusted EBITDA for the first quarter was $849 million, Cash Provided by Operating Activities was $267 million, and Free Cash Flow Before Growth Investments (FCFbG) was $(40) million. Cash Provided by Operating Activities and FCFbG for the first quarter were primarily impacted by annual incentive payments, in addition to payment of Vivint Smart Home interest and seasonal inventory buildup in anticipation of the summer selling season.
“NRG continued to deliver exceptional operating and financial results during the first quarter of 2024,” said Larry Coben, NRG Chair, Interim President and Chief Executive Officer. “We are even more optimistic about the competitive energy market outlook and Smart Home adoption, and remain committed to executing our long-term strategy and capital allocation program.”
Consolidated Financial Results
|
Table 1: |
||||||||
|
|
|
Three Months Ended |
||||||
|
($ in millions) |
|
3/31/2024 |
|
3/31/2023 |
||||
|
Net Income/(Loss) |
|
$ |
511 |
|
|
$ |
(1,335 |
) |
|
Cash Provided/(Used) by Operating Activities |
|
$ |
267 |
|
|
$ |
(1,598 |
) |
|
Adjusted EBITDA |
|
$ |
849 |
|
|
$ |
646 |
|
|
Free Cash Flow Before Growth Investments (FCFbG) |
|
$ |
(40 |
) |
|
$ |
203 |
|
NRG’s first quarter 2024 Adjusted EBITDA grew by $203 million year-over-year as the Company continued its strong consolidated financial performance. The home and business integrated retail platforms delivered reliable customer counts and stable margins during the period. The East and West segments contributed higher gross margins due to favorable supply costs, partially offset by lower Texas results due primarily to mild winter weather driving lower gross margin on hedges procured as part of the Company’s diversified supply strategy. NRG notably continues to excel in consumer markets where full competitive choice is available, most recently adding approximately 35 thousand customers in Lubbock, Texas, as former customers of Lubbock Power & Light fully transitioned to competitively selected retail energy providers.
The electric industry is anticipating enhanced demand in future years driven by new manufacturing, industrial, and data center facilities. As a result, NRG’s extensive track record and expertise — across the Texas power market, in particular — is expected to provide significant growth opportunities across the Company’s integrated operating platform, including generation, load management, and consumer product development.
2024 Capital Allocation
NRG remains committed to a disciplined capital allocation policy and strong balance sheet. In the first quarter of 2024, the Company concluded the previously announced $950 million accelerated share repurchase program, with nearly 19 million shares repurchased at an average price of $50.43 per share. NRG intends to repurchase $825 million of additional shares throughout 2024 and is currently in the market repurchasing shares through a 10b5-1 plan.
In addition, the capital allocation plan for 2024 includes approximately $500 million for liability management. On April 16, 2024, the Company amended its Credit Agreement to establish a new leverage-neutral $875 million Term Loan B facility (Term Loan). A portion of the proceeds from the Term Loan were used to repay a portion of the Company’s 2.750% Convertible Senior Notes due 2048.
Through April 30, 2024, the Company repurchased $343 million in principal plus $257 million in associated in-the-money premium of the Convertible Senior Notes. The remaining portion of the proceeds from the Term Loan, together with cash on hand, are expected to be used to repay the Company’s 3.75% senior secured first lien notes due 2024.
On April 10, 2024, Vivint Smart Home amended its Credit Agreement to reprice its Term Loan B facility, among other certain changes, securing more favorable pricing and repayment terms.
The annual dividend was increased in January 2024 to $1.63 from $1.51 per common share, representing an 8% increase from 2023.
NRG’s share repurchase program and common stock dividend are subject to maintaining satisfactory credit metrics, available capital, market conditions, and compliance with associated laws and regulations. The timing and amount of any shares of NRG’s common stock repurchased under the share repurchase authorization will be determined by NRG’s management based on market conditions and other factors. NRG will only repurchase shares when management believes it would not jeopardize the Company’s ability to maintain satisfactory credit ratings.
Segments Results
|
Table 2: Net Income/(Loss) |
||||||||
|
($ in millions) |
|
Three Months Ended |
||||||
|
Segment |
|
3/31/2024 |
|
3/31/2023 |
||||
|
Texas |
|
$ |
349 |
|
|
$ |
284 |
|
|
East |
|
|
581 |
|
|
|
(1,402 |
) |
|
West/Services/Othera |
|
|
(426 |
) |
|
|
(178 |
) |
|
Vivint Smart Homeb |
|
$ |
7 |
|
|
$ |
(39 |
) |
|
Net Income/(Loss) |
|
$ |
511 |
|
|
$ |
(1,335 |
) |
|
a |
Includes Corporate segment |
|
|
b |
Vivint Smart Home acquired in March 2023 |
Net Income for the first quarter of 2024 was $511 million, $1,846 million higher than the first quarter of 2023. This was primarily driven by unrealized non-cash mark-to-market gains on economic hedges in 2024 as compared to losses in 2023 in the East, due to large movements in natural gas and power prices. Certain hedge positions are required to be marked-to-market every period, while the customer contracts related to these items are not, resulting in temporary unrealized losses or gains on the economic hedges that are not reflective of the expected economics at future settlement.
|
Table 3: Adjusted EBITDA |
||||||
|
($ in millions) |
|
Three Months Ended |
||||
|
Segment |
|
3/31/2024 |
|
3/31/2023 |
||
|
Texas |
|
$ |
219 |
|
$ |
254 |
|
East |
|
|
351 |
|
|
314 |
|
West/Services/Othera |
|
|
56 |
|
|
5 |
|
Vivint Smart Homeb |
|
$ |
223 |
|
$ |
73 |
|
Adjusted EBITDA |
|
$ |
849 |
|
$ |
646 |
|
a |
Includes Corporate segment |
|
|
b |
Vivint Smart Home acquired in March 2023 |
Texas: First quarter Adjusted EBITDA was $219 million, $35 million lower than the first quarter of 2023. This decrease was primarily due to mild winter weather driving lower gross margin on hedges procured as part of the Company’s diversified supply strategy, partially offset by lower plant operating expenses due to asset sales in 2023.
East: First quarter Adjusted EBITDA was $351 million, $37 million higher than the first quarter of 2023. This increase was driven by lower retail power supply costs and increased customer counts, partially offset by lower natural gas gross margin.
West/Services/Other: First quarter Adjusted EBITDA was $56 million, $51 million higher than the first quarter of 2023. This increase was primarily driven by lower retail power supply costs, higher natural gas gross margin, and the timing of planned outages at Cottonwood.
Vivint Smart Home: First quarter Adjusted EBITDA was $223 million, $150 million higher than the first quarter 2023 based on three months of results in 2024 as compared to one month in 2023. Results include growth in subscriber count of 6% and an increase in monthly recurring service margin per customer of 5% vs the prior-year period.
Liquidity and Capital Resources
|
Table 4: Corporate Liquidity |
||||||
|
($ in millions) |
|
3/31/24 |
|
12/31/23 |
||
|
Cash and Cash Equivalents |
|
$ |
278 |
|
$ |
541 |
|
Restricted Cash |
|
|
15 |
|
|
24 |
|
Total |
|
|
293 |
|
|
565 |
|
Total Revolving Credit Facility and collective collateral facilities |
|
|
4,501 |
|
|
4,278 |
|
Total Liquidity, excluding collateral deposited by counterparties |
|
$ |
4,794 |
|
$ |
4,843 |
As of March 31, 2024, NRG’s unrestricted cash was $278 million and $4.5 billion was available under the Company’s credit facilities. Total liquidity remained relatively unchanged from year-end at $4.8 billion.
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-5 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 May 7, 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,” “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 market operations 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 retail customers, the ability to successfully integrate businesses of acquired companies, including Direct Energy and 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, and 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 May 7, 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.
|
NRG ENERGY, INC. AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
|
(Unaudited) |
||||||||
|
Three months ended March 31, |
||||||||
|
(In millions, except for per share amounts) |
2024 |
|
2023 |
|||||
|
Revenue |
|
|
|
|
||||
|
Revenue |
$ |
7,429 |
|
|
$ |
7,722 |
|
|
|
Operating Costs and Expenses |
|
|
|
|||||
|
Cost of operations (excluding depreciation and amortization shown below) |
|
5,685 |
|
|
|
8,778 |
|
|
|
Depreciation and amortization |
|
268 |
|
|
|
190 |
|
|
|
Selling, general and administrative costs |
|
591 |
|
|
|
426 |
|
|
|
Acquisition-related transaction and integration costs |
|
9 |
|
|
|
71 |
|
|
|
Total operating costs and expenses |
|
6,553 |
|
|
|
9,465 |
|
|
|
(Loss)/gain on sale of assets |
|
(4 |
) |
|
|
199 |
|
|
|
Operating Income/(Loss) |
|
872 |
|
|
|
(1,544 |
) |
|
|
Other Income/(Expense) |
|
|
|
|||||
|
Equity in earnings of unconsolidated affiliates |
|
3 |
|
|
|
5 |
|
|
|
Other income, net |
|
30 |
|
|
|
16 |
|
|
|
Loss on debt extinguishment |
|
(58 |
) |
|
|
— |
|
|
|
Interest expense |
|
(152 |
) |
|
|
(148 |
) |
|
|
Total other expense |
|
(177 |
) |
|
|
(127 |
) |
|
|
Income/(Loss) Before Income Taxes |
|
695 |
|
|
|
(1,671 |
) |
|
|
Income tax expense/(benefit) |
|
184 |
|
|
|
(336 |
) |
|
|
Net Income/(Loss) |
$ |
511 |
|
|
$ |
(1,335 |
) |
|
|
Less: Cumulative dividends attributable to Series A Preferred Stock |
|
17 |
|
|
|
4 |
|
|
|
Net Income/(Loss) Available for Common Stockholders |
$ |
494 |
|
|
$ |
(1,339 |
) |
|
|
Income/(Loss) per Share |
|
|
|
|||||
|
Weighted average number of common shares outstanding — basic |
|
209 |
|
|
|
230 |
|
|
|
Income/(Loss) per Weighted Average Common Share — Basic |
$ |
2.36 |
|
|
$ |
(5.82 |
) |
|
|
Weighted average number of common shares outstanding — diluted |
|
214 |
|
|
|
230 |
|
|
|
Income/(Loss) per Weighted Average Common Share —Diluted |
$ |
2.31 |
|
|
$ |
(5.82 |
) |
|
|
NRG ENERGY, INC. AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
||||||||
|
(Unaudited) |
||||||||
|
|
Three months ended March 31, |
|||||||
|
(In millions) |
2024 |
|
2023 |
|||||
|
Net Income/(Loss) |
$ |
511 |
|
|
$ |
(1,335 |
) |
|
|
Other Comprehensive (Loss)/Income |
|
|
|
|||||
|
Foreign currency translation adjustments |
|
(8 |
) |
|
|
1 |
|
|
|
Defined benefit plans |
|
(1 |
) |
|
|
— |
|
|
|
Other comprehensive (loss)/income |
|
(9 |
) |
|
|
1 |
|
|
|
Comprehensive Income/(Loss) |
$ |
502 |
|
|
$ |
(1,334 |
) |
|
|
NRG ENERGY, INC. AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
March 31, 2024 |
|
December 31, 2023 |
|||||
|
(In millions, except share data) |
(Unaudited) |
|
(Audited) |
|||||
|
ASSETS |
|
|
|
|||||
|
Current Assets |
|
|
|
|||||
|
Cash and cash equivalents |
$ |
278 |
|
|
$ |
541 |
|
|
|
Funds deposited by counterparties |
|
241 |
|
|
|
84 |
|
|
|
Restricted cash |
|
15 |
|
|
|
24 |
|
|
|
Accounts receivable, net |
|
3,325 |
|
|
|
3,542 |
|
|
|
Inventory |
|
581 |
|
|
|
607 |
|
|
|
Derivative instruments |
|
3,807 |
|
|
|
3,862 |
|
|
|
Cash collateral paid in support of energy risk management activities |
|
309 |
|
|
|
441 |
|
|
|
Prepayments and other current assets |
|
712 |
|
|
|
626 |
|
|
|
Total current assets |
|
9,268 |
|
|
|
9,727 |
|
|
|
Property, plant and equipment, net |
|
1,768 |
|
|
|
1,763 |
|
|
|
Other Assets |
|
|
|
|||||
|
Equity investments in affiliates |
|
43 |
|
|
|
42 |
|
|
|
Operating lease right-of-use assets, net |
|
179 |
|
|
|
179 |
|
|
|
Goodwill |
|
5,076 |
|
|
|
5,079 |
|
|
|
Customer relationships, net |
|
2,064 |
|
|
|
2,164 |
|
|
|
Other intangible assets, net |
|
1,662 |
|
|
|
1,763 |
|
|
|
Derivative instruments |
|
2,399 |
|
|
|
2,293 |
|
|
|
Deferred income taxes |
|
2,100 |
|
|
|
2,251 |
|
|
|
Other non-current assets |
|
842 |
|
|
|
777 |
|
|
|
Total other assets |
|
14,365 |
|
|
|
14,548 |
|
|
|
Total Assets |
$ |
25,401 |
|
|
$ |
26,038 |
|
|
|
|
|
|
|
|||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
|
Current Liabilities |
|
|
|
|||||
|
Current portion of long-term debt and finance leases |
$ |
1,101 |
|
|
$ |
620 |
|
|
|
Current portion of operating lease liabilities |
|
94 |
|
|
|
90 |
|
|
|
Accounts payable |
|
2,027 |
|
|
|
2,325 |
|
|
|
Derivative instruments |
|
3,591 |
|
|
|
4,019 |
|
|
|
Cash collateral received in support of energy risk management activities |
|
241 |
|
|
|
84 |
|
|
|
Deferred revenue current |
|
710 |
|
|
|
720 |
|
|
|
Accrued expenses and other current liabilities |
|
1,412 |
|
|
|
1,642 |
|
|
|
Total current liabilities |
|
9,176 |
|
|
|
9,500 |
|
|
|
Other Liabilities |
|
|
|
|||||
|
Long-term debt and finance leases |
|
9,559 |
|
|
|
10,133 |
|
|
|
Non-current operating lease liabilities |
|
124 |
|
|
|
128 |
|
|
|
Derivative instruments |
|
1,439 |
|
|
|
1,488 |
|
|
|
Deferred income taxes |
|
8 |
|
|
|
22 |
|
|
|
Deferred revenue non-current |
|
859 |
|
|
|
914 |
|
|
|
Other non-current liabilities |
|
939 |
|
|
|
947 |
|
|
|
Total other liabilities |
|
12,928 |
|
|
|
13,632 |
|
|
|
Total Liabilities |
|
22,104 |
|
|
|
23,132 |
|
|
|
Commitments and Contingencies |
|
|
|
|||||
|
Stockholders’ Equity |
|
|
|
|||||
|
Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at March 31, 2024 and December 31, 2023, aggregate liquidation preference of $650; at March 31, 2024 and December 31, 2023 |
|
650 |
|
|
|
650 |
|
|
|
Common stock; $0.01 par value; 500,000,000 shares authorized; 267,365,782 and 267,330,470 shares issued and 208,166,262 and 208,130,950 shares outstanding at March 31, 2024 and December 31, 2023, respectively |
|
3 |
|
|
|
3 |
|
|
|
Additional paid-in-capital |
|
3,503 |
|
|
|
3,416 |
|
|
|
Retained earnings |
|
1,212 |
|
|
|
820 |
|
|
|
Treasury stock, at cost 59,199,520 shares at March 31, 2024 and December 31, 2023 |
|
(1,971 |
) |
|
|
(1,892 |
) |
|
|
Accumulated other comprehensive loss |
|
(100 |
) |
|
|
(91 |
) |
|
|
Total Stockholders’ Equity |
|
3,297 |
|
|
|
2,906 |
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
25,401 |
|
|
$ |
26,038 |
|
|
|
NRG ENERGY, INC. AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(Unaudited) |
||||||||
|
|
Three months ended March 31, |
|||||||
|
(In millions) |
2024 |
|
2023 |
|||||
|
Cash Flows from Operating Activities |
|
|
|
|||||
|
Net Income/(Loss) |
$ |
511 |
|
|
$ |
(1,335 |
) |
|
|
Adjustments to reconcile net income/(loss) to cash provided/(used) by operating activities: |
|
|
|
|||||
|
Equity in and distributions from earnings of unconsolidated affiliates |
|
(2 |
) |
|
|
(5 |
) |
|
|
Depreciation and amortization |
|
268 |
|
|
|
190 |
|
|
|
Accretion of asset retirement obligations |
|
4 |
|
|
|
6 |
|
|
|
Provision for credit losses |
|
75 |
|
|
|
35 |
|
|
|
Amortization of nuclear fuel |
|
— |
|
|
|
13 |
|
|
|
Amortization of financing costs and debt discounts |
|
11 |
|
|
|
20 |
|
|
|
Loss on debt extinguishment |
|
58 |
|
|
|
— |
|
|
|
Amortization of in-the-money contracts and emissions allowances |
|
78 |
|
|
|
119 |
|
|
|
Amortization of unearned equity compensation |
|
30 |
|
|
|
30 |
|
|
|
Net loss/(gain) on sale of assets and disposal of assets |
|
9 |
|
|
|
(187 |
) |
|
|
Changes in derivative instruments |
|
(535 |
) |
|
|
1,599 |
|
|
|
Changes in current and deferred income taxes and liability for uncertain tax benefits |
|
139 |
|
|
|
(338 |
) |
|
|
Changes in collateral deposits in support of risk management activities |
|
289 |
|
|
|
(1,412 |
) |
|
|
Changes in nuclear decommissioning trust liability |
|
— |
|
|
|
(16 |
) |
|
|
Changes in other working capital |
|
(668 |
) |
|
|
(317 |
) |
|
|
Cash provided/(used) by operating activities |
|
267 |
|
|
|
(1,598 |
) |
|
|
Cash Flows from Investing Activities |
|
|
|
|||||
|
Payments for acquisitions of businesses and assets, net of cash acquired |
|
(22 |
) |
|
|
(2,492 |
) |
|
|
Capital expenditures |
|
(69 |
) |
|
|
(142 |
) |
|
|
Net purchases of emissions allowances |
|
(7 |
) |
|
|
(18 |
) |
|
|
Investments in nuclear decommissioning trust fund securities |
|
— |
|
|
|
(87 |
) |
|
|
Proceeds from the sale of nuclear decommissioning trust fund securities |
|
— |
|
|
|
99 |
|
|
|
Proceeds from sales of assets, net of cash disposed |
|
3 |
|
|
|
219 |
|
|
|
Proceeds from insurance recoveries for property, plant and equipment, net |
|
3 |
|
|
|
71 |
|
|
|
Cash used by investing activities |
|
(92 |
) |
|
|
(2,350 |
) |
|
|
Cash Flows from Financing Activities |
|
|
|
|||||
|
Proceeds from issuance of preferred stock, net of fees |
|
— |
|
|
|
636 |
|
|
|
Payments of dividends to preferred and common stockholders |
|
(118 |
) |
|
|
(87 |
) |
|
|
Equivalent shares purchased in lieu of tax withholdings |
|
(23 |
) |
|
|
(8 |
) |
|
|
Net receipts from settlement of acquired derivatives that include financing elements |
|
8 |
|
|
|
336 |
|
|
|
Net proceeds of Revolving Credit Facility and Receivable Securitization Facilities |
|
— |
|
|
|
725 |
|
|
|
Proceeds from issuance of long-term debt |
|
— |
|
|
|
731 |
|
|
|
Payments of debt issuance costs |
|
— |
|
|
|
(18 |
) |
|
|
Repayments of long-term debt and finance leases |
|
(97 |
) |
|
|
(4 |
) |
|
|
Payments for debt extinguishment costs |
|
(58 |
) |
|
|
— |
|
|
|
Proceeds from credit facilities |
|
525 |
|
|
|
1,050 |
|
|
|
Repayments to credit facilities |
|
(525 |
) |
|
|
(825 |
) |
|
|
Cash (used)/provided by financing activities |
|
(288 |
) |
|
|
2,536 |
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
(2 |
) |
|
|
3 |
|
|
|
Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash |
|
(115 |
) |
|
|
(1,409 |
) |
|
|
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 |
$ |
534 |
|
|
$ |
769 |
|
|
Appendix Table A-1: First Quarter 2024 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):
|
($ in millions) |
Texas |
East |
West/Services/ |
Vivint |
Corp/Elim |
Total |
|||||||||||||
|
Net Income/(Loss) |
$ |
349 |
|
$ |
581 |
|
$ |
(60 |
) |
$ |
7 |
|
$ |
(366 |
) |
$ |
511 |
|
|
|
Plus: |
|
|
|
|
|
|
|||||||||||||
|
Interest expense, net |
|
— |
|
|
— |
|
|
5 |
|
|
38 |
|
|
91 |
|
|
134 |
|
|
|
Income tax |
|
— |
|
|
(1 |
) |
|
(15 |
) |
|
2 |
|
|
198 |
|
|
184 |
|
|
|
Loss on debt extinguishment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
58 |
|
|
58 |
|
|
|
Depreciation and amortization |
|
67 |
|
|
23 |
|
|
24 |
|
|
144 |
|
|
10 |
|
|
268 |
|
|
|
ARO Expense |
|
1 |
|
|
3 |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
|
Contract and emission credit amortization, net |
|
— |
|
|
72 |
|
|
1 |
|
|
— |
|
|
— |
|
|
73 |
|
|
|
EBITDA |
|
417 |
|
|
678 |
|
|
(45 |
) |
|
191 |
|
|
(9 |
) |
|
1,232 |
|
|
|
Stock-based compensation1 |
|
7 |
|
|
4 |
|
|
1 |
|
|
15 |
|
|
— |
|
|
27 |
|
|
|
Amortization of customer acquisition costs2 |
|
15 |
|
|
16 |
|
|
1 |
|
|
15 |
|
|
— |
|
|
47 |
|
|
|
Acquisition and divestiture integration and transaction costs3 |
|
— |
|
|
— |
|
|
— |
|
|
6 |
|
|
4 |
|
|
10 |
|
|
|
Cost to achieve4 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9 |
|
|
9 |
|
|
|
Deactivation costs |
|
— |
|
|
5 |
|
|
1 |
|
|
— |
|
|
— |
|
|
6 |
|
|
|
Loss on sale of assets |
|
4 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
|
Other and non-recurring charges |
|
1 |
|
|
(1 |
) |
|
1 |
|
|
(4 |
) |
|
(11 |
) |
|
(14 |
) |
|
|
Mark to market (MtM) (gains)/losses on economic hedges |
|
(225 |
) |
|
(351 |
) |
|
104 |
|
|
— |
|
|
— |
|
|
(472 |
) |
|
|
Adjusted EBITDA |
$ |
219 |
|
$ |
351 |
|
$ |
63 |
|
$ |
223 |
|
$ |
(7 |
) |
$ |
849 |
|
|
Contacts
Media
Chevalier Gray
832.763.3454
Investors
Brendan Mulhern
609.524.4767
