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Mar 31, 2024
NRG Energy Q1 2024 Earnings Report
NRG Energy reported strong financial and operational performance, driven by margin expansion in the East and West segments and successful customer growth in Consumer Energy and Smart Home platforms.
Key Takeaways
NRG Energy reported a strong first quarter in 2024, with a Net Income of $511 million and an Adjusted EBITDA of $849 million. The company's diversified supply strategy mitigated the impacts of mild winter weather in Texas, and customer counts increased in the Consumer Energy and Smart Home platforms.
GAAP Net Income was $511 million and Adjusted EBITDA was $849 million.
Diversified supply strategy led to margin expansion in the East and West segments, offsetting mild winter weather impacts in Texas.
Consumer Energy and Smart Home platforms saw customer count increases of 8% and 6% year-over-year, respectively.
The $950 million accelerated share repurchase program was completed, and $825 million in additional share repurchases were reaffirmed for 2024.
NRG Energy
NRG Energy
NRG Energy Revenue by Segment
Revenue by Segment
Texas Revenue
CapyFin.comEast Revenue
CapyFin.comWest/Services/Other Revenue
CapyFin.comVivint Smart Home Revenue
CapyFin.com Forward Guidance
NRG is reaffirming its Adjusted EBITDA and FCFbG guidance for 2024.
Positive Outlook
- Adjusted EBITDA is expected to be between $3,300 million and $3,550 million.
- Cash Provided by Operating Activities is expected to be between $1,825 million and $2,075 million.
- Free Cash Flow before Growth Investments (FCFbG) is expected to be between $1,825 million and $2,075 million.
- Guidance excludes fair value adjustments related to derivatives.
- Guidance is based on assumptions NRG believed to be reasonable as of May 7, 2024.
Challenges Ahead
- The company is unable to provide guidance for Net Income due to the impact of fair value adjustments related to derivatives.
- Cash Provided by Operating Activities does not include changes in collateral deposits in support of risk management activities.
- The guidance includes adjustments for sale of assets, adjustments to reflect NRG share of Adjusted EBITDA in unconsolidated affiliates, deactivation costs, other non-recurring expenses.
- The guidance excludes the adjustment for Loss on debt extinguishment which was $58 million as of March 31, 2024.
- Working capital / other assets and liabilities include payments for Acquisition and divestiture integration and transaction costs, which is adjusted in Acquisition and other costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income