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Sep 30, 2023
NRG Energy Q3 2023 Earnings Report
NRG Energy reported solid third quarter performance driven by strong financial and operational results, completed the sale of STP, increased share repurchase allocation, remained on track to achieve debt reduction target, and initiated strong 2024 financial guidance.
Key Takeaways
NRG Energy reported a solid third quarter with a Net Income of $343 million and Adjusted EBITDA of $973 million. The company is increasing the mid-point of its 2023 Adjusted EBITDA guidance by $95 million. NRG is increasing its 2023 share repurchase allocation from $997 million to $1.15 billion. The company plans to reduce debt by $1.4 billion in 2023.
Solid third quarter performance with GAAP Net Income of $343 million and Adjusted EBITDA of $973 million; increasing mid-point of 2023 Adjusted EBITDA guidance by $95 million
Completed sale of STP for $1.75 billion
Increasing 2023 share repurchase allocation by 15% to $1.15 billion; executed $200 million of share repurchases to date and expect to complete the remaining $950 million through new accelerated share repurchase program
On track to achieve 2023 debt reduction target of $1.4 billion; executed $800 million of debt reduction to date and expect to complete remaining $600 million by year-end
NRG Energy
NRG Energy
NRG Energy Revenue by Segment
Revenue by Segment
Texas Revenue
CapyFin.comEast Revenue
CapyFin.com Forward Guidance
NRG is raising the mid-point of its 2023 Adjusted EBITDA guidance by $95 million and initiated strong 2024 financial guidance above its June 2023 Investor Day plan.
Positive Outlook
- Raising the mid-point of its 2023 Adjusted EBITDA guidance by $95 million
- Initiating strong 2024 financial guidance above its June 2023 Investor Day plan
- 2023 Adjusted EBITDA guidance is between $3,150 million and $3,300 million
- 2023 Cash Provided by Operating Activities guidance is between $1,750 million and $1,900 million
- 2023 FCFbG guidance is between $1,725 million and $1,875 million
Challenges Ahead
- Negative impacts of an earnings reduction from the sale of STP
- Increase in accruals as part of the Company's annual incentive plan reflecting the expected financial outperformance for the year
- 2024 Adjusted EBITDA guidance is between $3,300 million and $3,550 million
- 2024 Cash Provided by Operating Activities guidance is between $1,825 million and $2,075 million
- 2024 FCFbG guidance is between $1,825 million and $2,075 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income