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Jun 30, 2020
NRG Energy Q2 2020 Earnings Report
Reported strong second quarter results driven by the acquisition of Stream Energy, lower supply costs and mark-to-market on hedge positions.
Key Takeaways
NRG Energy reported a strong second quarter with income from continuing operations of $313 million and Adjusted EBITDA of $574 million. The company highlighted the resilience of its platform and the upcoming acquisition of Direct Energy.
Income from Continuing Operations was $313 million.
Adjusted EBITDA was $574 million.
The company is acquiring Direct Energy to expand its regional diversity and product offerings.
NRG is reaffirming its 2020 and 2021 guidance for Adjusted EBITDA, Cash From Operations and Free Cash Flow before Growth Investments.
NRG Energy
NRG Energy
NRG Energy Revenue by Segment
Revenue by Segment
Texas Revenue
CapyFin.comEast Revenue
CapyFin.com Forward Guidance
NRG is reaffirming its guidance range for 2020 and 2021 with respect to Adjusted EBITDA, Cash From Operations and Free Cash Flow before Growth Investments (FCFbG).
Positive Outlook
- Adjusted EBITDA: $1,900-$2,100 million
- Cash From Operations: $1,440-$1,640 million
- FCFbG: $1,275-$1,475 million
- The company expects to fund the Direct Energy acquisition using a combination of cash on hand
- The acquisition will add over 3 million customers to NRG’s business.
Challenges Ahead
- Electricity was deemed a 'critical and essential business operation' under various state and federal governmental COVID-19 mandates.
- As a result of COVID-19, there has been a reduction in load within the markets in which we operate since the President’s national emergency declaration
- The rebound in demand has varied across the Company's market footprint, as restrictions vary regionally.
- The Company expects demand uncertainty to continue in the near future.
- The Company does not anticipate executing any further share repurchases over the remainder of 2020 and has allocated all of its remaining 2020 excess capital to fund the Direct Energy acquisition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income