NRG Energy Q3 2023 Earnings Report
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
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