About NRG Energy, Inc.
NRG Energy is a leading power producer with a generating capacity of 28,000 MW (including 1,600 MW of solar power assets). The vast majority of NRG's power plants are in North America, but it also has one in Australia and one in Turkey. Its portfolio includes 50 power plants. It also markets natural gas, oil, and other commodities. NRG's retail units (including Reliant Energy and Green Mountain Energy) distribute power to about 3 million customers across the US.
NRG's operating segments are Retail (about 55% of revenues), Generation (over 30%), NRG Yield (about 10%) and Renewables.
NRG's Retail segment is one of the largest in the country. It provides some 63 TWhs of energy and related services under the Business Solutions banner to almost 3 million residential, industrial and commercial customers. The segment overlooks several brands that collectively are the largest providers of electricity in Texas.
Wholesale Power Generation, a capital-intensive segment, is responsible for plant and commercial operations, energy services, as well as distributed generation business. It has 28,000 MW of fossil fuel and nuclear generation capacity at some 50 plants, with less than 25% come from coal. Currently, it has 500MW of targeted re-powering initiatives for future development.
NRG will sell its Renewables business segment and all interests in NRG Yield, Inc. in 2018. The segment focuses on the acquisition, development, operation, and maintenance of utility scale wind and solar, community solar and distributed solar generation assets. Including NRG Yield, it has a total portfolio of wind and solar assets across 27 states.
NRG Yield is a publicly-traded company through which NRG acquires and operates power generation and thermal infrastructure assets.
NRG Energy has generation assets in the US, Australia, and Turkey. Its retail and thermal subsidiaries serve customers in more than 15 US states. Its NRG Thermal unit provides third-party steam to downtown heating and cooling systems in cities such as Pittsburgh, San Diego, San Francisco, and Harrisburg, Pennsylvania.
Most of its retail sales come from Connecticut, Delaware, Illinois, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Ohio, and Texas.
Sales and Marketing
NRG's retail electricity divisions serve nearly 3 million residential, business, commercial, and industrial customers in all 50 US states, and Washington, DC.
The company's sales channels include direct sales, call centers, websites, brokers, and brick-and-mortar stores. It also sells directly to residential, commercial, and industrial customers.
NRG revenue trended upwards from $7 billion in 2008 to $15 billion peak in 2014, before suffering from an oil and gas price downturn and reducing below $11 billion in the following years. Net income has been hit badly due to the commodities price downturn. In the 2015-17, the company has posted a combined three-year loss of $9.3 billion.
Revenue in 2017 grew less than 2% for NRG to $10.6 billion. The slight increase came due to better results from mark to market hedging. Energy revenue, the highest company earner, reduced by some 20% compared to 2016.
Net loss for 2017 was $2.3 billion compared to a loss of $891 million the year prior, mostly due to $1 billion increase in impairment losses from the year prior. In 2017, NRG recorded a loss of $790 million from discontinued operations. This included the deconsolidation of GenOn and its subsidiaries for $208 million (after it filed for bankruptcy).
NRG's cash holdings increased slightly to $1.5 billion. Financing activities used some $485 million, while investments utilized more than double that amount, at $1 billion, mostly in CAPEX. Operations provided a healthy $1.4 billion, though greatly reduced by losses on discontinued operations and high impairment charges as well as depreciation and amortization charges.
Coming out of three years of massive losses (for a combined $9.3 billion), NRG is in the middle of executing a drastic Transformation Plan. The three-part, three-year plan will target portfolio overhaul, cost-cutting and capital structure enhancement.
The core of the plan focused on a massive asset sale, totaling $3 billion by early 2018. This includes, NRG's agreement to sell NRG Yield (along with its renewable platform) in February 2018 for $1.3 billion, ownership interests in Buckthorn Solar for $42 million, Carlsbad Energy for $365 million, and BETM for $70 million.
Despite a tough operational year (Hurricane Harvey further affected 2017 sales by at least $20 million, the company calculates), NRG achieved $150 million in cost savings, reduced working capital by $221 million, is expecting to generate $3.2 billion in cash proceeds from the asset sales, and further announced another $1 billion in share buybacks. This would allow the company to pay off $8 billion in debt.
One of the robust performance areas for NRG is its retail sector, where customer count is growing from 2.89 million in 2016 to 2.94 in early 2018. Retail's sharing of total earnings has gone up from 25% in 2016 to 60% in first quarter, though much of it is due to asset sell offs.
With the power market showing signs of stabilizing and cost-recovery in 2018, the company is pushing for improved retail choices and capacity re-pricing proposal. The company is also exclusively focusing on investing in projects that will have around 15% returns within a maximum 5-year window.
Mergers and Acquisitions
In 2019, NRG agreed to acquire the retail electricity and gas business of Stream Energy for $300 million. The deal adds more than 600,000 residential customers in Texas and Pennsylvania and is aligned with NRG's strategy to exit electricity generation and transition to retail sales. The company acquired another retail energy company, XOOM Energy, in 2018 for $210 million. This acquisition balances NRG's generation portfolio in the East. It also enhances NRG's multi-brand and multi-channel strategy via XOOM's referral-based sales channel.
804 CARNEGIE CTR
Princeton, NJ 08540-6023
Phone: 1 (609) 524-4500
Employer Type: Publicly Owned
Stock Symbol: NRG
Stock Exchange: , NYSE
Chairman: Lawrence S. Coben
President and CEO: Mauricio Gutierrez
SVP Operations: Chris Moser
Employees (This Location): 240
Employees (All Locations): 4,862
El Segundo, CA
Long Beach, CA
Rancho Cucamonga, CA
San Francisco, CA
Saint Cloud, FL
New Roads, LA
Saint Paul, MN
French Camp, MS
Sea Girt, NJ
Wall Township, NJ
Avon Lake, OH
Mount Bethel, PA
Mount Holly Springs, PA
New Florence, PA
New Freedom, PA
West Mifflin, PA
West Pittsburg, PA
La Porte, TX