NRG Energy, Inc. Reports Record 2015 Adjusted EBITDA Results, Reaffirms 2016 Financial Guidance, Announces Retirement of $691 Million of Debt, and Realigns Dividend
2015 Results and Financial Highlights
- Record Adjusted EBITDA1 of $3,340 million, including best ever results from NRG Home Retail since 2009 acquisition – a validation of NRG’s leading integrated competitive power platform
- $1,127 million of Free Cash Flow (FCF) before growth investments
- Over $1.3 billion of capital returned to stakeholders
- $691 million of debt retired2; approximately $54 million in annual interest savings
- $628 million returned to shareholders in 2015
- $786 million of NRG Yield dropdown proceeds in 2015
- $5.1 billion and $3.0 billion non-cash one-time charges for impairments and income tax valuation allowance expense, respectively, primarily driven by the extended low commodity price cycle for the Texas wholesale generation
Operational and Strategic Update
- Allocating $925 million of additional 2016 capital to incremental NRG-level debt reduction
- GreenCo strategic process: Reintegrating NRG Renew into the NRG platform; expect resolution for NRG Home Solar and EVgo in the second quarter 2016
- Asset sales completed or pending represent 877 MWs and $138 million of $500 million 2016 asset sales target
- Reducing annual dividend to $0.12 per share to enhance flexibility on capital allocation, reallocating approximately $145 million annually
2016 Financial Guidance
- 2016 Guidance is reaffirmed, and now includes GreenCo’s NRG Renew
- Adjusted EBITDA of $3,000-$3,200 million
- FCF before growth investments of $1,000-$1,200 million
NRG Energy, Inc. recently reported record full-year Adjusted EBITDA of $3,340 million. Adjusted cash flow from operations totaled $1,945 million for 2015. Net loss for the twelve months of 2015 was $6,436 million, including non-cash charges of $3,306 million3 and $3,039 million for asset impairments net of taxes and income tax valuation allowance expense, respectively. These non-cash charges were primarily driven by the low commodity cycle and its impact on the Texas wholesale business. This resulted in a $19.46 loss per diluted common share in 2015 compared to net income of $132 million, or $0.23 per diluted common share in 2014. Excluding the impact of the impairments and tax valuation allowance, the Company’s net loss would have been $91 million or $0.34 loss per diluted common share for the twelve months of 2015.
“Amid a continued weak commodity price environment, NRG’s integrated competitive power platform once again delivered strong financial results, demonstrating that we have the right portfolio and the right platform to succeed,” said Mauricio Gutierrez, NRG President and Chief Executive Officer. “Today we are reintegrating our successful business renewables solutions back into NRG as an important part of our diversified platform. With the further strengthening of our balance sheet and increased flexibility from recalibrating our dividend, we will be in a stronger position to benefit from market opportunities.”
NRG continued its strong track record of safety performance with a top quartile recordable rate of 0.71 for the full year 20154. Overall generation was down 3% from 2014, with coal and nuclear availability at 83.8% improving 2.4% over 2014.
Today, NRG also announces the reintegration of business renewables (formerly GreenCo’s NRG Renew) back into NRG. This move supports NRG’s advantaged position to participate in the changing landscape of the power industry and serve customers, especially with on- and offsite solar and distributed generation in the commercial and industrial space.