Home Quarter Results NRG Yield, Inc. Reports Full Year and Fourth Quarter 2015 Financial Results
NRG Yield, Inc. Reports Full Year and Fourth Quarter 2015 Financial Results

NRG Yield, Inc. Reports Full Year and Fourth Quarter 2015 Financial Results

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  • $720 million of Adjusted EBITDA for full year 2015
  • $179 million of Cash Available for Distribution (CAFD) for full year 2015
  • $0.215 per share quarterly dividend paid to Class A and Class C common stock holders ($0.86 per share annualized) on December 15, 2015 representing a 15% year over year increase since the fourth quarter 2014
  • Raised total net proceeds of over $1 billion in third party financing through the issuance of Class C common stock, convertible notes and tax equity; the proceeds were used to fund acquisitions, repay project level indebtedness and for general corporate purposes

Increasing Dividend

  • On February 17, 2016, announced a 4.65% quarter over quarter increase in the Class A and Class C common stock dividend payable in first quarter of 2016 to $0.225 per share ($0.90 per share annualized)
  • Reaffirming the target of $0.25 per share quarterly dividend ($1.00 per share annualized) by the fourth quarter 2016, a 16% year over year increase and a 67% increase since our first post-IPO dividend in the fourth quarter 2013

Business Highlights

  • In 2015, NRG Yield increased the size of its contracted generation portfolio by approximately 1.6 GW and approximately $80 million in annual CAFD through the execution of both drop down transactions with NRG Energy and third party acquisitions
  • In May 2015, and concurrent with the recapitalization of the Company through the creation of the new Class C common stock, NRG Yield and NRG Energy agreed to an expanded ROFO agreement for approximately 800 MW of new long term contracted natural gas assets, 900 MWs of wind assets1, and $250 million commitment in residential and business renewable solar portfolios
  • Announcing a $50 million reallocation in NRG Yield’s previously committed investment partnerships with NRG Energy from residential solar to business renewables to more closely align with NRG’s strategic priorities

Reaffirming 2016 Guidance

  • Full year 2016 guidance:
    • Adjusted EBITDA of $805 million
    • CAFD of $265 million

NRG Yield, Inc. recently reported fourth quarter 2015 financial results including Adjusted EBITDA of $183 million and CAFD of $15 million, which resulted in full year Adjusted EBITDA and CAFD for 2015 of $720 million and $179 million, respectively. Net income attributable to Class A and Class C stockholders for the twelve months ended December 31, 2015 was $33 million or $0.40 per Class A and Class C common share.

“NRG Yield ended the year strong, delivering on our financial commitments while maintaining a robust growth pipeline through our strategic relationship with NRG,” said Mauricio Gutierrez, NRG Yield’s Interim Chief Executive Officer. “While the capital markets continue to be quite turbulent, we remain focused on executing across our portfolio. Furthermore, we believe NRG Yield continues to represent a unique investment opportunity, both with its predictable and growing dividend as well as its ability to participate in the sector’s secular growth trends.”

Overview of Financial and Operating Results

For the fourth quarter, NRG Yield reported Net Income of $13 million, Adjusted EBITDA of $183 million, and CAFD of $15 million. Fourth quarter CAFD outperformed guidance driven by favorable wind production at the Alta wind farm in California, a one-time receipt of insurance proceeds related to the Q1 2015 El Segundo forced outage, and a $3 million timing delay of debt service payments subsequently paid in January 2016.

For the year ended December 31, 2015, NRG Yield reported Net Income of $55 million, Adjusted EBITDA of $720 million, and CAFD of $179 million. Full year Adjusted EBITDA was higher than 2014 primarily due to the full year impact of Alta Wind and Walnut Creek, as well as the acquisitions of Desert Sunlight and Spring Canyon. Full year CAFD was higher than 2014 primarily due to the full year impact of the June 2014 Drop Down Assets, the acquisition of the January 2015 Drop Down Assets, and the acquisition of Desert Sunlight. Fourth quarter Adjusted EBITDA and CAFD was higher than the same period in 2014 primarily as a result of the acquisition of Desert Sunlight.

Also includes Thermal MWh sold

For the fourth quarter 2015, NRG Yield maintained strong safety performance with a 0.49 incident rate. Generation in the renewable segment was 5% higher in the fourth quarter versus the same period in 2014 as a result of the Spring Canyon acquisition in May 2015.

Total liquidity as of December 31, 2015 was $292 million, a decrease of $596 million from December 31, 2014. This reflects a decrease in revolver availability of $279 million and a decrease in cash of $317 million primarily used to fund the acquisitions of the January 2015 and November 2015 Drop Down Assets.3

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Anand Gupta Editor - EQ Int'l Media Network

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