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Q2 2015 Results – Nrg Energy Inc.

Nrg Energy Inc. · Aug 4, 2015 · 45 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q2 2015 Results – Nrg Energy Inc. – slide 1
    NRG Energy, Inc. Second Quarter 2015 Results Presentation August 4, 2015
  2. Q2 2015 Results – Nrg Energy Inc. – slide 2
    Agenda Strategic Update David Crane NRG Operations Mauricio Gutierrez Financial Results Kirk Andrews Q&A 2
  3. Q2 2015 Results – Nrg Energy Inc. – slide 3
    Q2 2015 Review NRG Financial Performance NRG Share Price Performance EBITDA YOY LTM 2Q1: 729MM + 9% 1H1: 1,569MM + 6% -25% FY152: 3,300MM + 6% 2015 FCF Yield: 16% Still to Come 600MM of Dropdowns (2015) PJM Capacity…
  4. Q2 2015 Results – Nrg Energy Inc. – slide 4
    Established and Growing Strength in Transforming Industry Strength in Strength in Strength in Retail Solar Cost of Capital 1 in ERCOT for both Residential Top two in Utility Scale Solar NYLD provides a competitive cost of capital…
  5. Q2 2015 Results – Nrg Energy Inc. – slide 5
    Disciplined Capital Allocation Conventional Generation 70% Maintenance & Environmental Fuel Conversions & Repowerings Renewables 20% Utility Scale, Distributed, Home Solar Yield Eligible Renewables 10% NRG Carbon360, NRG EVgo…
  6. Q2 2015 Results – Nrg Energy Inc. – slide 6
    NRG Operations 6
  7. Q2 2015 Results – Nrg Energy Inc. – slide 7
    NRG Business Metrics Safety: Top Quartile OSHA Recordable Rate1 Production (TWh)2 31.2 30.1 14.6 14.6 12.3 10.8 0.77 0.77 0.73 0.73 0.52 0.9 0.8 1.9 1.7 1.5 2.2 2011 2012 2013 2014 YTD Gulf Coast East West Renew NRG…
  8. Q2 2015 Results – Nrg Energy Inc. – slide 8
    NRG Business Development Update Including Projects That Bring MWs Back Major CapEx Projects Underway Online At Attractive Economics Project Estimated MW Description COD Bowline Restoration Project Capacity Bowline 2 569…
  9. Q2 2015 Results – Nrg Energy Inc. – slide 9
    NRG Home Retail Metrics Q2 NRG Home Highlights Retail Adjusted EBITDA1 EBITDA ( millions) Delivered record 204MM Home Retail Adjusted EBITDA, the strongest second quarter +30% performance ever Achieved customer count performance…
  10. Q2 2015 Results – Nrg Energy Inc. – slide 10
    ERCOT Market Update Weather Normalized Load Continues To Be Strong Major Themes In ERCOT Market 1st Half of 2015 averaged +2.5%1 8% Improved reserve margins driven by YoY WxNorm'd Demand Growth 6% uneconomic generation and…
  11. Q2 2015 Results – Nrg Energy Inc. – slide 11
    Managing Commodity Price Risk Coal and Nuclear Generation and Coal and Transport Hedge Position1,4 Retail Hedge Position1,2 101% 101% 100% 100% 100% 94% 94% 84% 57% 51% 51% 40% 35% 28% 25% Bal-2015 2016 2017 Bal-2015 2016…
  12. Q2 2015 Results – Nrg Energy Inc. – slide 12
    PJM Capacity Performance Capacity Performance: Status Update NRG Portfolio Positioned To Benefit From CP BRA 18/19 (8/21) Participation mandatory NRG Winning Characteristics Bid caps moving from ACR to 85% net cone Fuel certainty…
  13. Q2 2015 Results – Nrg Energy Inc. – slide 13
    Financial Results 13
  14. Q2 2015 Results – Nrg Energy Inc. – slide 14
    Financial Summary Results 2015 2015 Full Year ( millions) 2nd Quarter 1st Half Guidance Business & Renew1 338 890 1,940-2,065 Home Retail 204 370 600-675 NRG Yield 187 309 660 Adjusted EBITDA2 729 1,569 3,200-3,400…
  15. Q2 2015 Results – Nrg Energy Inc. – slide 15
    2015 Capital Sources & Uses / Capital Allocation in billions 4.5 4.0 3.8B 0.4B 0.5B 3.5 0.6B 3.0 Dividends / Share Buybacks (MMs) Dividend: 195 2.5 0.6B Share Buybacks: Completed 6 186 Remaining authorized capacity 51…
  16. Q2 2015 Results – Nrg Energy Inc. – slide 16
    NRGs Robust Cash Flow Continues Despite the challenging commodity price environment, NRG is well positioned to continue generating significant ongoing Free Cash Flow ( in millions) 2015 2016 2017 2018 Consensus EBITDA Estimates1…
  17. Q2 2015 Results – Nrg Energy Inc. – slide 17
    Q&A 17
  18. Q2 2015 Results – Nrg Energy Inc. – slide 18
    Appendix 18
  19. Q2 2015 Results – Nrg Energy Inc. – slide 19
    NRG Home Solar: Cumulative Customers1 10% Growth June to July 21,130 19,410 16,194 13,390 FY2014 1Q15A 2Q15A July '15E 1 Represents the total number of customers where NRG Home Solar has installed or Contracted…
  20. Q2 2015 Results – Nrg Energy Inc. – slide 20
    Expected NYLD Drop Down Proceeds Run Rate Targeted Project CAFD Proceeds3 EME Wind Portfolio1 Expected to Be Remaining CVSR (51.05%) 48MM 600MM Offered 2H2015 Resi Solar DG Solar Remaining Wind Portfolio and Other1…
  21. Q2 2015 Results – Nrg Energy Inc. – slide 21
    Commodity Prices Annual Average for Forward Prices1 Bal-20152 2016 2017 2015-2017 NG Henry Hub 2.89 3.14 3.31 3.11 ERCOT Houston Onpeak 32.95 36.16 38.76 35.96 ERCOT Houston Offpeak 23.26 25.17 26.65 25.03 PJM West Onpeak…
  22. Q2 2015 Results – Nrg Energy Inc. – slide 22
    Hedge Disclosure: Coal and Nuclear Operations Texas and South Central1 East1 GenOn1 Bal-2015 2016 2017 Bal-2015 2016 2017 Bal-2015 2016 2017 Net Coal and Nuclear Capacity (MW)2 6,290 6,290 6,290 10,197 8,732 7,280 5,054 4,526…
  23. Q2 2015 Results – Nrg Energy Inc. – slide 23
    Generation Organizational Structure NRG Energy, Inc. (50,0151 MW) Renew NRG Yield Gulf Coast West East (1,899 MW) (2,176 MW) (14,949) (6,496 MW) (23,678 MW) Agua Caliente Alta Wind Bayou Cove El Segundo Arthur Kill Hunterstown CC…
  24. Q2 2015 Results – Nrg Energy Inc. – slide 24
    Consolidated Debt Structure ( millions) NRG Energy, Inc. As of 06/30/2015 LEGEND Revolver 2.5 BN due 20181 Recourse Debt Senior notes due 2018-2024 6,411 Non-Recourse Debt Term loan due 2018 1,976 SEC Filer Tax exempt bonds…
  25. Q2 2015 Results – Nrg Energy Inc. – slide 25
    Recourse / Non-Recourse Debt ( millions) 06/30/2015 03/31/2015 12/31/20141 9/30/2014 Recourse Debt Term Loan Facility 1,976 1,982 1,987 1,992 Senior Notes 6,411 6,411 6,411 6,411 Tax Exempt Bonds 434 434 406 373 Recourse Debt…
  26. Q2 2015 Results – Nrg Energy Inc. – slide 26
    NRG Residual Adjusted EBITDA and Debt ( millions) 2015 Guidance1 Adjusted EBITDA 3,200 - 3,400 Less: Partners share of Adjusted EBITDA in consolidated projects (non- (90) controlling interests; i.e. Agua Caliente, Ivanpah) NRG…
  27. Q2 2015 Results – Nrg Energy Inc. – slide 27
    Liquidity Update Sources & Uses of Liquidity Sources ( millions) ( millions) 6/30/2015 12/31/2014 678 Adjusted cash flow from operations Cash at NRG-Level 709 661 600 Equity proceeds, NRG Yield 282 Debt proceeds, NRG Yield revolver…
  28. Q2 2015 Results – Nrg Energy Inc. – slide 28
    1H 2015 Capital Expenditures and Growth Investments Growth ( millions) Maintenance Environmental Total Investments Capital Expenditures NRG Business Gulf Coast 102 52 7 161 East 66 100 19 185 West 2 - 11 13 B2B 3 - 1 4 NRG…
  29. Q2 2015 Results – Nrg Energy Inc. – slide 29
    Fixed Contracted and Capacity Revenue ( millions) 807 958 965 481 970 150 193 552 973 553 550 136 89 141 75 146 183 554 1346 965 874 151 596 156 154 2015E 2016E 2017E 2018E 2019E East West Gulf Coast…
  30. Q2 2015 Results – Nrg Energy Inc. – slide 30
    2Q 2015 Generation & Operational Performance Metrics 2015 2014 2015 2014 1 1 MWh 2 3 2 3 (MWh 000s) Generation Generation % Change EAF NCF EAF NCF Change Gulf Coast Texas 11,100 10,293 807 8% 90% 48% 86% 44% Gulf Coast South…
  31. Q2 2015 Results – Nrg Energy Inc. – slide 31
    1H 2015 Generation & Operational Performance Metrics 2015 2014 2015 2014 1 1 MWh 2 3 2 3 (MWh 000s) Generation Generation % Change EAF NCF EAF NCF Change Gulf Coast Texas 20,722 20,148 574 3% 89% 45% 83% 44% Gulf Coast South…
  32. Q2 2015 Results – Nrg Energy Inc. – slide 32
    Fuel Statistics 2Q 1H Domestic2 2015 2014 2015 20141 Coal Consumed (mm Tons) 9.4 12.7 20.9 22.4 PRB Blend 72% 68% 72% 61% East 59% 33% 61% 37% Gulf Coast 82% 70% 83% 71% Bituminous 15% 15% 16% 20% East 34% 55% 32% 47%…
  33. Q2 2015 Results – Nrg Energy Inc. – slide 33
    Appendix: Reg. G Schedules 33
  34. Q2 2015 Results – Nrg Energy Inc. – slide 34
    Reg. G: June YTD 2015 Free Cash Flow before Growth ( millions) 6/30/2015 6/30/2014 Variance Adjusted EBITDAR 1,636 1,550 86 Less: GenOn & EME operating lease expense (67) (56) (11) Adjusted EBITDA 1,569 1,494 75 Interest…
  35. Q2 2015 Results – Nrg Energy Inc. – slide 35
    Reg. G: 2015 Guidance Appendix Table A-1: 2015 Guidance The following table summarizes the calculation of Free Cash Flow before Growth and provides a reconciliation to Adjusted EBITDA ( millions) 2015 Guidance Business and Renew…
  36. Q2 2015 Results – Nrg Energy Inc. – slide 36
    Reg. G Appendix Table A-2: Second Quarter 2015 Adjusted EBITDA Reconciliation by Operating Segment The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net income/(loss) Home Home (…
  37. Q2 2015 Results – Nrg Energy Inc. – slide 37
    Reg. G Appendix Table A-3: Second Quarter 2014 Adjusted EBITDA Reconciliation by Operating Segment The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net (loss)/income Home Home (…
  38. Q2 2015 Results – Nrg Energy Inc. – slide 38
    Reg. G Appendix Table A-4: YTD Second Quarter 2015 Adjusted EBITDA Reconciliation by Operating Segment The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net income/(loss) Home Home (…
  39. Q2 2015 Results – Nrg Energy Inc. – slide 39
    Reg. G Appendix Table A-5: YTD Second Quarter 2014 Adjusted EBITDA Reconciliation by Operating Segment The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net income/(loss) Home Home (…
  40. Q2 2015 Results – Nrg Energy Inc. – slide 40
    Reg. G Appendix Table A-6: Second Quarter 2015 Regional Adjusted EBITDA Reconciliation for NRG Business The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net income/(loss) Carbon (…
  41. Q2 2015 Results – Nrg Energy Inc. – slide 41
    Reg. G Appendix Table A-7: Second Quarter 2014 Regional Adjusted EBITDA Reconciliation for NRG Business The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net (loss)/income Carbon (…
  42. Q2 2015 Results – Nrg Energy Inc. – slide 42
    Reg. G Appendix Table A-8: YTD Second Quarter 2015 Regional Adjusted EBITDA Reconciliation for NRG Business The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net income/(loss) (…
  43. Q2 2015 Results – Nrg Energy Inc. – slide 43
    Reg. G Appendix Table A-9: YTD Second Quarter 2014 Regional Adjusted EBITDA Reconciliation for NRG Business The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net income/(loss) (…
  44. Q2 2015 Results – Nrg Energy Inc. – slide 44
    Reg. G Appendix Table A-10: Run Rate 2015 Adjusted EBITDA and Cash Available for Distribution Reconciliation for NYLD The following table summarizes the calculations of Adjusted EBITDA and CAFD, and provides a reconciliation to…
  45. Q2 2015 Results – Nrg Energy Inc. – slide 45
    Reg. G 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…

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