NRG Energy’s Acquisitions Cause Financial Results to its 1Q14 Guidance and Yield

published: 2014-05-07 15:23 | editor: | category: News

NRG Energy, Inc. reported its record first quarter 2014 Adjusted EBITDA of $816 million with Wholesale contributing $639 million, Retail contributing $108 million and NRG Yield contributing $69 million. First quarter adjusted cash flow from operations totaled $608 million. Net loss for first quarter 2014 was ($56) million, or ($0.18) per diluted common share compared to net loss of ($332) million, or ($1.03) per diluted common share for first quarter 2013.

“Outstanding execution led to unprecedented quarterly financial performance driven by our core wholesale business,” said David Crane, NRG President and Chief Executive Officer. “The quarter is also noteworthy in that we successfully closed three acquisitions which will materially advance each of our generation, retail and clean energy business lines. The polar vortex, yet again, vividly demonstrated the critical importance both to NRG and to the American people of maintaining a robust multi-fuel electric system.”

Outlines of NRG Energy’s 1Q14 financial results are as following:

First Quarter 2014 Financial Highlights

  • $816 million of Adjusted EBITDA; with $639 million from wholesale execution, $108 million from retail and $69 million from NRG Yield;
  • $487 million of Free Cash Flow (FCF) before Growth investments;
  • $3,159 million of total pro-forma liquidity following the Edison Mission Energy (EME) acquisition

2014 Guidance Increases

  • Updating full year 2014 Guidance as follows:
  • Increasing Adjusted EBITDA to $3,200-$3,400 million from $2,700-$2,900 million
  • Increasing FCF before Growth investments to $1,200-$1,400 million from $950-$1,150 million

Business and Operational Highlights

  • On April 1, 2014, closed the acquisition of EME, bringing NRG’s total fleet to approximately 53,000 MW of generating capacity – the second largest in the US;
  • On March 31, 2014, acquired the competitive retail electricity business of Dominion Resources, Inc., (NYSE: D) – adding approximately 500,000 customers, significantly expanding NRG’s Northeast retail footprint and adding the Cirro Energy brand in Texas;
  • Acquired Roof Diagnostics Solar (RDS), one of the nation’s leading residential solar companies, focused on customer acquisition and superior installation;
  • On May 5, 2014, executed definitive agreement for the first ever drop-down transaction with NRG Yield for the 550 MW El Segundo Energy Center, the 20 MW TA High Desert solar facility and the 20 MW RE Kansas South solar facility for $349 million in cash. Transaction is expected to close this quarter.

To read the full press release, please visit: NRG Energy, Inc. Reports Record First Quarter Results; Closes Key Strategic Acquisitions, Increases 2014 Guidance and Announces First Ever NRG Yield Drop Down

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