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Sep 30, 2020

NRG Energy Q3 2020 Earnings Report

NRG Energy reported stable results amid the COVID-19 pandemic, delivering Q3 2020 income from continuing operations and Adjusted EBITDA.

Key Takeaways

NRG Energy reported third quarter 2020 income from continuing operations of $249 million, or $1.02 per diluted common share and Adjusted EBITDA for the Third quarter of $752 million. The company is on track to close the Direct Energy acquisition by year end. NRG has narrowed the range of its Adjusted EBITDA guidance, while increasing Cash From Operations and Free Cash Flow before Growth Investments (FCFbG) guidance for 2020. NRG is maintaining its Adjusted EBITDA guidance for fiscal year 2021 while lowering its Cash Flow From Operations and FCFbG guidance due to the deferral of certain cash flow items into 2021.

Business performed well during the important summer months, delivering stable results amid the COVID-19 pandemic

Direct Energy acquisition on track to close by year end; updated financing plan no longer requires new equity issuance

Ongoing portfolio optimization, targeting a minimum $250 million equity proceed over next 6-12 months

Narrowing 2020 Adjusted EBITDA and increasing FCFbG guidance; maintaining 2021 Adjusted EBITDA and lowering FCFbG guidance due to deferral of certain items into 2021

Total Revenue
$2.81B
Previous year: $3B
-6.2%
EPS
$1.1
Previous year: $1.88
-41.5%
Adjusted EBITDA
$752M
Previous year: $792M
-5.1%
Gross Profit
$775M
Previous year: $843M
-8.1%
Cash and Equivalents
$697M
Previous year: $243M
+186.8%
Free Cash Flow
$630M
Previous year: $396M
+59.1%
Total Assets
$12.2B
Previous year: $9.53B
+28.3%

NRG Energy

NRG Energy

Forward Guidance

NRG has narrowed the range of its Adjusted EBITDA guidance, while increasing Cash From Operations and Free Cash Flow before Growth Investments (FCFbG) guidance for 2020; NRG is maintaining its Adjusted EBITDA guidance for fiscal year 2021 while lowering its Cash Flow From Operations and FCFbG guidance due to the deferral of certain cash flow items into 2021.