- Completed acquisition of Vivint Smart Home, advancing our consumer services platform
- Strong first quarter financial and operational results
- Updating 2023 Adjusted EBITDA and FCFbG guidance as a result of the Vivint acquisition
HOUSTON–(BUSINESS WIRE)–NRG Energy, Inc. (NYSE: NRG) today reported a first quarter 2023 Net Loss of $1.3 billion, or $(5.82) per common share. Adjusted EBITDA for the first quarter was $646 million, Net Cash Used by Operating Activities was $1.6 billion, and Free Cash Flow Before Growth (FCFbG) was $203 million.
“NRG delivered strong financial and operational results during the first quarter,” said Mauricio Gutierrez, NRG President and Chief Executive Officer. “We are pleased to welcome our new Vivint colleagues and are excited about the attractive opportunity for our consumer services platform.”
|
Consolidated Financial Results |
|||||||
|
|
|
Three Months Ended |
|||||
|
($ in millions) |
|
3/31/2023 |
|
3/31/2022 |
|||
|
Net (Loss)/Income |
|
$ |
(1,335 |
) |
|
$ |
1,736 |
|
Cash (Used)/Provided by Operating Activities |
|
$ |
(1,598 |
) |
|
$ |
1,676 |
|
Adjusted EBITDA |
|
$ |
646 |
|
|
$ |
536 |
|
Free Cash Flow Before Growth Investments (FCFbG) |
|
$ |
203 |
|
|
$ |
239 |
Segments Results
|
Table 1: Net (Loss)/Income |
||||||||
|
($ in millions) |
|
Three Months Ended |
||||||
|
Segment |
|
3/31/2023 |
|
3/31/2022 |
||||
|
Texas |
|
$ |
284 |
|
|
$ |
771 |
|
|
East |
|
|
(1,402 |
) |
|
|
1,538 |
|
|
West/Services/Othera |
|
|
(178 |
) |
|
|
(573 |
) |
|
Vivintb |
|
$ |
(39 |
) |
|
|
N/A |
|
|
Net (Loss)/Income |
|
$ |
(1,335 |
) |
|
$ |
1,736 |
|
|
a. Includes Corporate segment |
||||||||
|
b. Vivint Smart Home acquired in March 2023 |
||||||||
First quarter net loss was $1.3 billion, $3.1 billion lower than the first quarter of 2022. This was driven by unrealized mark-to-market losses on economic hedges primarily in the East, due to large declines in natural gas and power prices. Certain hedge positions are required to be marked-to-market every period, while the customer contracts related to these items are not, resulting in temporary unrealized losses or gains on the economic hedges that are not reflective of the expected economics at future settlement.
|
Table 2: Adjusted EBITDA |
|||||||
|
($ in millions) |
|
Three Months Ended |
|||||
|
Segment |
|
3/31/2023 |
|
3/31/2022 |
|||
|
Texas |
|
$ |
254 |
|
$ |
211 |
|
|
East |
|
|
314 |
|
|
332 |
|
|
West/Services/Othera |
|
|
5 |
|
|
(7 |
) |
|
Vivintb |
|
$ |
73 |
|
|
N/A |
|
|
Adjusted EBITDA |
|
$ |
646 |
|
$ |
536 |
|
|
a. Includes Corporate segment |
|||||||
|
b. Vivint Smart Home acquired in March 2023 |
|||||||
Texas: First quarter Adjusted EBITDA was $254 million, $43 million higher than the first quarter of 2022. This increase was primarily driven by higher margins, the April 2022 return of Limestone Unit 1 from an extended outage, and current-year optimization of realized lower market power prices. The increase was partially offset by a decrease in retail load primarily driven by unfavorable weather and higher operating costs due to an increase in planned outages in the first quarter of 2023 compared to the first quarter of 2022.
East: First quarter Adjusted EBITDA was $314 million, $18 million lower than the first quarter of 2022. This decrease was driven by PJM asset retirements in the second quarter of 2022 and lower capacity prices. This was partially offset by increased retail power margins.
West/Services/Other: First quarter Adjusted EBITDA was $5 million, $12 million higher than the first quarter of 2022. This increase was primarily driven by a higher gross margin from Cottonwood.
Vivint: Adjusted EBITDA included $73 million in March; the acquisition closed in March 2023.
Liquidity and Capital Resources
|
Table 3: Corporate Liquidity |
||||||
|
($ in millions) |
|
3/31/23 |
|
12/31/22 |
||
|
Cash and Cash Equivalents |
|
$ |
407 |
|
$ |
430 |
|
Restricted Cash |
|
|
32 |
|
|
40 |
|
Total |
|
|
439 |
|
|
470 |
|
Total Revolving Credit Facility and collective collateral facilities |
|
|
3,094 |
|
|
2,324 |
|
Total Liquidity, excluding collateral received |
|
$ |
3,533 |
|
$ |
2,794 |
As of March 31, 2023, NRG’s cash was at $407 million, and $3.1 billion was available under the Company’s credit facilities. Total liquidity was $3.5 billion, $739 million higher than at the end of 2022. This increase was due to planned additional liquidity related to the end of the winter season, specific initiatives to optimize the amount of collateral supporting our market operations activity, and the addition of Vivint Smart Home’s revolving credit facility.
NRG Strategic Developments
Vivint Smart Home Acquisition
On March 10, 2023, NRG completed the acquisition of Vivint Smart Home, paying $12 per share or $2.609 billion in cash. The Company funded the acquisition by issuing $740 million of 7.00% Senior Secured First Lien Notes due in 2033, issuing $650 million of 10.25% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, drawing $900 million from its Revolving Credit Facility and Receivables Securitization Facilities, and cash on hand.
Sale of Astoria
On January 6, 2023, NRG closed on the sale of land and related assets from the Astoria site, within the East region of operations, for net proceeds of $209 million. As part of the transaction, the Company entered into an agreement to lease the land back for the purpose of operating the Astoria gas turbines. The lease agreement is expected to end at the end of the year.
W.A. Parish Outage
In May 2022, W.A. Parish Unit 8 came offline as a result of damage to the steam turbine/generator. Based on work completed to date, NRG is targeting to return the unit to service by the end of the second quarter of 2023. The Company expects lost revenues and expenditures incurred in 2023 to be offset by insurance recoveries.
2023 Guidance
Following the close of the Vivint Smart Home acquisition, NRG is updating 2023 guidance to reflect the 10-month ownership of Vivint Smart Home, harmonizing the combined Adjusted EBITDA, and expanding Adjusted EBITDA and FCFbG guidance ranges. NRG Adjusted EBITDA has been updated to exclude amortization of customer acquisition costs (primarily related to capitalized sales commissions) and stock-based compensation. Excluding the updates for the Vivint Smart Home acquisition and EBITDA harmonization, NRG’s previous standalone 2023 Adjusted EBITDA, Cash provided by Operating Activities, and FCFbG guidance remain unchanged. As compared to Vivint’s historical presentation of Adjusted EBITDA, amortization of customer acquisition costs continues to be excluded, but amortization of customer fulfillment costs (primarily related to the sale and installation of equipment) is no longer excluded.
|
Table 4: Adjusted EBITDA and FCFbG Guidancea |
||
|
|
|
2023 |
|
(In millions) |
|
Guidance |
|
Adjusted EBITDAb |
|
$3,010 – $3,250 |
|
Cash provided by Operating Activities |
|
$1,610 – $1,850 |
|
FCFbG |
|
$1,620 – $1,860 |
|
a. Non-GAAP financial measure; see Appendix Table A-5 for GAAP Reconciliation from Net Income to FCFbG. 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. |
||
|
b. Adjusted EBITDA guidance shown above has been updated to reflect the inclusion of Vivint and the harmonization of the definitions for the combined company. |
||
Capital Allocation Update
NRG is committed to maintaining a strong balance sheet and credit ratings and remains focused on achieving investment-grade credit metrics. The Company expects to achieve 2.50x to 2.75x corporate net debt to adjusted EBITDA by late 2025 or 2026, which will primarily be achieved through debt reduction and the realization of growth initiatives.
The Company expects to use its excess free cash flow to reduce debt, pay its common and preferred stock dividends, and fund its growth investment initiatives. In addition, NRG is targeting additional asset sales with projected proceeds, net of any required deleveraging, of $500 million during 2023.
On April 19, 2023, NRG announced that its Board of Directors declared a quarterly dividend on the Company’s common stock of $0.3775 per share, or $1.51 per share. The dividend is payable on May 15, 2023, to stockholders of record as of May 1, 2023.
In December 2021, the Company announced that the Board of Directors authorized $1 billion for share repurchases as part of NRG’s Capital Allocation policy. The Company has executed $653 million in share repurchases at an average price of $40.40 per share. The remaining balance of $347 million under the current program is expected to be repurchased in 2023, subject to the availability of excess cash and full visibility of the achievement of the Company’s 2023 targeted credit metrics.
Earnings Conference Call
On May 4, 2023, 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 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, including increasing interest rates and rising inflation, 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 companywide 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, 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 4, 2023. 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) |
2023 |
|
2022 |
||||
|
Revenue |
|
|
|
||||
|
Revenue |
$ |
7,722 |
|
|
$ |
7,896 |
|
|
Operating Costs and Expenses |
|
|
|
||||
|
Cost of operations (excluding depreciation and amortization shown below) |
|
8,778 |
|
|
|
4,930 |
|
|
Depreciation and amortization |
|
190 |
|
|
|
183 |
|
|
Selling, general and administrative costs |
|
426 |
|
|
|
347 |
|
|
Acquisition-related transaction and integration costs |
|
71 |
|
|
|
8 |
|
|
Total operating costs and expenses |
|
9,465 |
|
|
|
5,468 |
|
|
Gain/(loss) on sale of assets |
|
199 |
|
|
|
(3 |
) |
|
Operating (Loss)/Income |
|
(1,544 |
) |
|
|
2,425 |
|
|
Other Income/(Expense) |
|
|
|
||||
|
Equity in earnings/(losses) of unconsolidated affiliates |
|
5 |
|
|
|
(15 |
) |
|
Other income, net |
|
16 |
|
|
|
— |
|
|
Interest expense |
|
(148 |
) |
|
|
(103 |
) |
|
Total other expense |
|
(127 |
) |
|
|
(118 |
) |
|
(Loss)/Income Before Income Taxes |
|
(1,671 |
) |
|
|
2,307 |
|
|
Income tax (benefit)/expense |
|
(336 |
) |
|
|
571 |
|
|
Net (Loss)/Income |
$ |
(1,335 |
) |
|
$ |
1,736 |
|
|
Less: Cumulative dividends attributable to Series A Preferred Stock |
|
4 |
|
|
|
— |
|
|
Net (Loss)/Income Available for Common Stockholders |
$ |
(1,339 |
) |
|
$ |
1,736 |
|
|
(Loss)/Income per Share |
|
|
|
||||
|
Weighted average number of common shares outstanding — basic and diluted |
|
230 |
|
|
|
242 |
|
|
(Loss)/Income per Weighted Average Common Share —Basic and Diluted |
$ |
(5.82 |
) |
|
$ |
7.17 |
|
|
NRG ENERGY, INC. AND SUBSIDIARIES |
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME |
|||||||
|
(Unaudited) |
|||||||
|
|
Three months ended March 31, |
||||||
|
(In millions) |
2023 |
|
2022 |
||||
|
Net (Loss)/Income |
$ |
(1,335 |
) |
|
$ |
1,736 |
|
|
Other Comprehensive Income |
|
|
|
||||
|
Foreign currency translation adjustments |
|
1 |
|
|
|
9 |
|
|
Defined benefit plans |
|
— |
|
|
|
(1 |
) |
|
Other comprehensive income |
|
1 |
|
|
|
8 |
|
|
Comprehensive (Loss)/Income |
$ |
(1,334 |
) |
|
$ |
1,744 |
|
|
NRG ENERGY, INC. AND SUBSIDIARIES |
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
|
March 31, 2023 |
|
December 31, 2022 |
||||
|
(In millions, except share data and liquidation preference on preferred stock) |
(Unaudited) |
|
(Audited) |
||||
|
ASSETS |
|
|
|
||||
|
Current Assets |
|
|
|
||||
|
Cash and cash equivalents |
$ |
407 |
|
|
$ |
430 |
|
|
Funds deposited by counterparties |
|
330 |
|
|
|
1,708 |
|
|
Restricted cash |
|
32 |
|
|
|
40 |
|
|
Accounts receivable, net |
|
3,519 |
|
|
|
4,773 |
|
|
Inventory |
|
722 |
|
|
|
751 |
|
|
Derivative instruments |
|
4,400 |
|
|
|
7,886 |
|
|
Cash collateral paid in support of energy risk management activities |
|
293 |
|
|
|
260 |
|
|
Prepayments and other current assets |
|
505 |
|
|
|
383 |
|
|
Total current assets |
|
10,208 |
|
|
|
16,231 |
|
|
Property, plant and equipment, net |
|
1,835 |
|
|
|
1,692 |
|
|
Other Assets |
|
|
|
||||
|
Equity investments in affiliates |
|
136 |
|
|
|
133 |
|
|
Operating lease right-of-use assets, net |
|
247 |
|
|
|
225 |
|
|
Goodwill |
|
5,343 |
|
|
|
1,650 |
|
|
Intangible assets, net |
|
4,419 |
|
|
|
2,132 |
|
|
Nuclear decommissioning trust fund |
|
879 |
|
|
|
838 |
|
|
Derivative instruments |
|
3,350 |
|
|
|
4,108 |
|
|
Deferred income taxes |
|
2,925 |
|
|
|
1,881 |
|
|
Other non-current assets |
|
354 |
|
|
|
256 |
|
|
Total other assets |
|
17,653 |
|
|
|
11,223 |
|
|
Total Assets |
$ |
29,696 |
|
|
$ |
29,146 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
Current Liabilities |
|
|
|
||||
|
Current portion of long-term debt and finance leases |
$ |
971 |
|
|
$ |
63 |
|
|
Current portion of operating lease liabilities |
|
94 |
|
|
|
83 |
|
|
Accounts payable |
|
2,330 |
|
|
|
3,643 |
|
|
Derivative instruments |
|
4,350 |
|
|
|
6,195 |
|
|
Cash collateral received in support of energy risk management activities |
|
330 |
|
|
|
1,708 |
|
|
Deferred revenue current |
|
688 |
|
|
|
176 |
|
|
Accrued expenses and other current liabilities |
|
1,563 |
|
|
|
1,114 |
|
|
Total current liabilities |
|
10,326 |
|
|
|
12,982 |
|
|
Other Liabilities |
|
|
|
||||
|
Long-term debt and finance leases |
|
11,332 |
|
|
|
7,976 |
|
|
Non-current operating lease liabilities |
|
196 |
|
|
|
180 |
|
|
Nuclear decommissioning reserve |
|
344 |
|
|
|
340 |
|
|
Nuclear decommissioning trust liability |
|
514 |
|
|
|
477 |
|
|
Derivative instruments |
|
1,893 |
|
|
|
2,246 |
|
|
Deferred income taxes |
|
133 |
|
|
|
134 |
|
|
Deferred revenue non-current |
|
848 |
|
|
|
10 |
|
|
Other non-current liabilities |
|
1,030 |
|
|
|
973 |
|
|
Total other liabilities |
|
16,290 |
|
|
|
12,336 |
|
|
Total Liabilities |
|
26,616 |
|
|
|
25,318 |
|
|
Commitments and Contingencies |
|
|
|
||||
|
Stockholders’ Equity |
|
|
|
||||
|
Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at March 31, 2023 (liquidation preference $1,000); 0 shares issued and outstanding at December 31, 2022 |
|
650 |
|
|
|
— |
|
|
Common stock; $0.01 par value; 500,000,000 shares authorized; 424,292,409 and 423,897,001 shares issued and 229,956,438 and 229,561,030 shares outstanding at March 31, 2023 and December 31, 2022, respectively |
|
4 |
|
|
|
4 |
|
|
Additional paid-in-capital |
|
8,481 |
|
|
|
8,457 |
|
|
(Accumulated deficit)/Retained earnings |
|
(15 |
) |
|
|
1,408 |
|
|
Treasury stock, at cost 194,335,971 shares at March 31, 2023 and December 31, 2022 |
|
(5,864 |
) |
|
|
(5,864 |
) |
|
Accumulated other comprehensive loss |
|
(176 |
) |
|
|
(177 |
) |
|
Total Stockholders’ Equity |
|
3,080 |
|
|
|
3,828 |
|
|
Total Liabilities and Stockholders’ Equity |
$ |
29,696 |
|
|
$ |
29,146 |
|
|
NRG ENERGY, INC. AND SUBSIDIARIES |
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(Unaudited) |
|||||||
|
|
Three months ended March 31, |
||||||
|
(In millions) |
2023 |
|
2022 |
||||
|
Cash Flows from Operating Activities |
|
|
|
||||
|
Net (Loss)/Income |
$ |
(1,335 |
) |
|
$ |
1,736 |
|
|
Adjustments to reconcile net (loss)/income to cash (used)/provided by operating activities: |
|
|
|
||||
|
Distributions from and equity in (earnings)/losses of unconsolidated affiliates |
|
(5 |
) |
|
|
18 |
|
|
Depreciation and amortization |
|
190 |
|
|
|
183 |
|
|
Accretion of asset retirement obligations |
|
6 |
|
|
|
7 |
|
|
Provision for credit losses |
|
35 |
|
|
|
25 |
|
|
Amortization of nuclear fuel |
|
13 |
|
|
|
14 |
|
|
Amortization of financing costs and debt discounts |
|
20 |
|
|
|
6 |
|
|
Amortization of in-the-money contracts and emissions allowances |
|
119 |
|
|
|
147 |
|
|
Amortization of unearned equity compensation |
|
30 |
|
|
|
6 |
|
|
Net gain on sale of assets and disposal of assets |
|
(187 |
) |
|
|
(6 |
) |
|
Changes in derivative instruments |
|
1,599 |
|
|
|
(2,816 |
) |
|
Changes in current and deferred income taxes and liability for uncertain tax benefits |
|
(338 |
) |
|
|
575 |
|
|
Changes in collateral deposits in support of risk management activities |
|
(1,412 |
) |
|
|
2,007 |
|
|
Changes in nuclear decommissioning trust liability |
|
(16 |
) |
|
|
(7 |
) |
|
Changes in other working capital |
|
(317 |
) |
|
|
(219 |
) |
|
Cash (used)/provided by operating activities |
|
(1,598 |
) |
|
|
1,676 |
|
|
Cash Flows from Investing Activities |
|
|
|
||||
|
Payments for acquisitions of businesses and assets, net of cash acquired |
|
(2,492 |
) |
|
|
(26 |
) |
|
Capital expenditures |
|
(142 |
) |
|
|
(60 |
) |
|
Net purchases of emission allowances |
|
(18 |
) |
|
|
(18 |
) |
|
Investments in nuclear decommissioning trust fund securities |
|
(87 |
) |
|
|
(151 |
) |
|
Proceeds from the sale of nuclear decommissioning trust fund securities |
|
99 |
|
|
|
161 |
|
|
Proceeds from sales of assets, net of cash disposed |
|
219 |
|
|
|
14 |
|
|
Proceeds from insurance recoveries for property, plant and equipment, net |
|
71 |
|
|
|
— |
|
|
Cash used by investing activities |
|
(2,350 |
) |
|
|
(80 |
) |
|
Cash Flows from Financing Activities |
|
|
|
||||
|
Proceeds from issuance of preferred stock, net of fees |
|
636 |
|
|
|
— |
|
|
Payments of dividends to common stockholders |
|
(87 |
) |
|
|
(85 |
) |
|
Payments for share repurchase activity |
|
(8 |
) |
|
|
(188 |
) |
|
Net receipts from settlement of acquired derivatives that include financing elements |
|
336 |
|
|
|
561 |
|
|
Net proceeds of Revolving Credit Facility and Receivables Securitization Facilities |
|
950 |
|
|
|
— |
|
|
Proceeds from issuance of long-term debt |
|
731 |
|
|
|
— |
|
|
Payments of debt issuance costs |
|
(18 |
) |
|
|
— |
|
|
Repayments of long-term debt and finance leases |
|
(4 |
) |
|
|
(1 |
) |
|
Cash provided by financing activities |
|
2,536 |
|
|
|
287 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
3 |
|
|
|
3 |
|
|
Net (Decrease)/Increase in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash |
|
(1,409 |
) |
|
|
1,886 |
|
|
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period |
|
2,178 |
|
|
|
1,110 |
|
|
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period |
$ |
769 |
|
|
$ |
2,996 |
|
|
Appendix Table A-1: First Quarter 2023 Adjusted EBITDA Reconciliation by Operating Segment |
||||||||||||||||||
|
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss)1: |
||||||||||||||||||
|
($ in millions) |
Texas |
East |
West/Services/ Other |
Vivint2 |
Corp/Elim |
Total |
||||||||||||
|
Net (Loss)/Income |
$ |
284 |
|
$ |
(1,402 |
) |
$ |
(304 |
) |
$ |
(39 |
) |
$ |
126 |
|
$ |
(1,335 |
) |
|
Plus: |
|
|
|
|
|
|
||||||||||||
|
Interest expense, net |
|
— |
|
|
(6 |
) |
|
6 |
|
|
26 |
|
|
106 |
|
|
132 |
|
|
Income tax |
|
— |
|
|
— |
|
|
(47 |
) |
|
— |
|
|
(289 |
) |
|
(336 |
) |
|
Depreciation and amortization |
|
75 |
|
|
30 |
|
|
24 |
|
|
52 |
|
|
9 |
|
|
190 |
|
|
ARO Expense |
|
2 |
|
|
3 |
|
|
1 |
|
|
— |
|
|
— |
|
|
6 |
|
|
Contract amortization |
|
1 |
|
|
115 |
|
|
3 |
|
|
— |
|
|
— |
|
|
119 |
|
|
EBITDA |
|
362 |
|
|
(1,260 |
) |
|
(317 |
) |
|
39 |
|
|
(48 |
) |
|
(1,224 |
) |
|
Stock-based compensation |
|
6 |
|
|
2 |
|
|
1 |
|
|
4 |
|
|
— |
|
|
13 |
|
|
Amortization of customer acquisition costs3 |
|
14 |
|
|
11 |
|
|
1 |
|
|
— |
|
|
— |
|
|
26 |
|
|
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates |
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
|
— |
|
|
4 |
|
|
Acquisition and divestiture integration and transaction costs4 |
|
— |
|
|
— |
|
|
— |
|
|
30 |
|
|
42 |
|
|
72 |
|
|
Deactivation costs |
|
— |
|
|
4 |
|
|
3 |
|
|
— |
|
|
— |
|
|
7 |
|
|
(Gain) on sale of assets |
|
— |
|
|
(199 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(199 |
) |
|
Other non-recurring charges |
|
1 |
|
|
1 |
|
|
2 |
|
|
— |
|
|
(1 |
) |
|
3 |
|
|
Mark to market (MtM) losses/(gains) on economic hedges |
|
(129 |
) |
|
1,755 |
|
|
318 |
|
|
— |
|
|
— |
|
|
1,944 |
|
|
Adjusted EBITDA |
$ |
254 |
|
$ |
314 |
|
$ |
12 |
|
$ |
73 |
|
$ |
(7 |
) |
$ |
646 |
|
|
1 This schedule reflects 2023 results under the harmonization of the Adjusted EBITDA definition |
||||||||||||||||||
|
2 Vivint Smart Home acquired in March 2023 |
||||||||||||||||||
|
3 Amortization of customer acquisition costs, which are excluded from the calculation of Adjusted EBITDA, is the P&L recognition of capitalized costs related to commissions and other costs related to securing the new customer |
||||||||||||||||||
|
4 Includes stock-based compensation of $20 million |
||||||||||||||||||
Contacts
Media:
Laura Avant
713.537.5437
Investors:
Brendan Mulhern
609.524.4767
