nrgq12017logoa05.jpg            

Exhibit 99.1



NRG Energy, Inc. Reports Second Quarter 2018 Results

Transformation Plan on track with $225 million in cost savings realized through second quarter of 2018, and up to $3 billion in asset sales on track to close in 2018
Completed $500 million of the previously announced 2018 $1 billion share buyback program
Consummated settlement and obtained releases from GenOn


PRINCETON, NJ - August 2, 2018 - NRG Energy, Inc. (NYSE: NRG) today reported second quarter 2018 income from continuing operations of $121 million. Income from continuing operations for the first six months of 2018 of $354 million, or $1.18 per diluted common share, compares to a loss from continuing operations of $70 million, or $(0.05) per diluted common share for the first six months of 2017. Adjusted EBITDA for the three and six months ending June 30, 2018, was $843 million and $1,392 million, respectively. Year-to-date cash from continuing operations totaled $524 million.

“Our business performed exceptionally well during the second quarter,” said Mauricio Gutierrez, NRG President and Chief Executive Officer. “These results demonstrate the strength of our integrated retail-generation platform. We also remain on track with our Transformation Plan objectives and continue to expect our announced asset sales to close during the second half of the year.”

Consolidated Financial Results
 
 
Three Months Ended
 
Six Months Ended
($ in millions)

 
6/30/18
 
6/30/17
 
6/30/18
 
6/30/17
Income/(Loss) from Continuing Operations
 
$
121

 
$
99

 
$
354

 
$
(70
)
Cash From Continuing Operations
 
$
167

 
$
194

 
$
524

 
$
112

Adjusted EBITDA
 
$
843

 
$
686

 
$
1,392

 
$
1,070

Free Cash Flow Before Growth Investments (FCFbG)
 
$
259

 
$
240

 
$
366

 
$
208























1




Segment Results

Table 1: Income/(Loss) from Continuing Operations
($ in millions)
 
Three Months Ended
 
Six Months Ended
Segment
 
6/30/18
 
6/30/17
 
6/30/18
 
6/30/17
Retail
 
$
(84
)
 
$
341

 
$
861

 
$
311

Generation a 
 
272

 
(90
)
 
(265
)
 
(54
)
Renewables b 
 
(12
)
 
(46
)
 
(45
)
 
(77
)
NRG Yield b 
 
96

 
44

 
96

 
42

Corporate
 
(151
)
 
(150
)
 
(293
)
 
(292
)
Income/(Loss) from Continuing Operations
 
$
121

 
$
99

 
$
354

 
$
(70
)
a. In accordance with GAAP, 2017 results have been restated to include full impact of the GenOn deconsolidation
b. In accordance with GAAP, 2017 results have been restated to include full impact of the assets in the NRG Yield Drop Down transactions


Table 2: Adjusted EBITDA
($ in millions)

Three Months Ended
 
Six Months Ended
Segment

6/30/18
 
6/30/17
 
6/30/18
 
6/30/17
Retail

$
298

 
$
204

 
$
486

 
$
337

Generation a

197

 
152

 
344

 
206

Renewables b

50

 
52

 
81

 
75

NRG Yield b

303

 
274

 
492

 
460

Corporate

(5
)
 
4

 
(11
)
 
(8
)
Adjusted EBITDA c

$
843


$
686

 
$
1,392

 
$
1,070

a. In accordance with GAAP, 2017 results have been restated to include full impact of the GenOn deconsolidation
b. In accordance with GAAP, 2017 results have been restated to include full impact of the assets in the NRG Yield Drop Down transactions
c. See Appendices A-1 through A-2 for Operating Segment Reg G reconciliations

Retail: Second quarter Adjusted EBITDA was $298 million, $94 million higher than second quarter 2017 driven by higher gross margins, capacity obligations, favorable weather, higher customer count and usage and lower operating costs.

Generation: Second quarter Adjusted EBITDA was $197 million, $45 million higher than second quarter 2017 driven by:
Gulf Coast Region: $29 million increase due to higher realized energy prices, partially offset by higher operating costs due to timing and scope of outages; and
East/West1: $16 million increase due to higher capacity revenues and lower operating costs.

Renewables: Second quarter Adjusted EBITDA was $50 million, $2 million lower than second quarter 2017 due to the deconsolidation of Ivanpah, partially offset by increased generation from higher wind resources and Buckthorn Wind beginning operations in January of 2018.
NRG Yield: Second quarter Adjusted EBITDA was $303 million, $29 million higher than second quarter 2017 due to higher renewable production, growth in distributed generation partnerships and higher availability at Walnut Creek.
Corporate: Second quarter Adjusted EBITDA was $(5) million, $9 million lower than the second quarter 2017 due to the reduction in shared services revenue from GenOn, partially offset by lower G&A expenses due to Transformation Plan and reduced advisory fees as compared to 2017.







1 Includes International and BETM

2



Liquidity and Capital Resources
Table 3: Corporate Liquidity
($ in millions)
 
6/30/18
 
12/31/17
Cash at NRG-Level a
 
$
632

 
$
769

Revolver Availability
 
1,222

 
1,711

NRG-Level Liquidity
 
$
1,854

 
$
2,480

Restricted Cash
 
286

 
508

Cash at Non-Guarantor Subsidiaries
 
348

 
222

Total Liquidity
 
$
2,488

 
$
3,210

a. Includes unrestricted cash held at Midwest Generation (a non-guarantor subsidiary), which can be distributed to NRG without limitation

As of June 30, 2018, NRG-Level cash was at $632 million and $1.2 billion was available under the Company’s credit facilities at the end of the second quarter 2018. Total liquidity was $2.5 billion, including restricted cash and cash at non-guarantor subsidiaries. Overall liquidity as of the end of the second quarter was $722 million lower than at the end of 2017.

NRG Strategic Developments
Transformation Plan
Through the second quarter of 2018, NRG realized $225 million of its 2018 cost savings target as part of the previously announced Transformation Plan. With respect to the asset sales under the Transformation Plan, NRG continues to expect up to $3.2 billion of cash proceeds, with a majority of those proceeds coming from transactions announced earlier this year and on track to close in 2018.

Retail Acquisition
On June 1, 2018, NRG closed on the acquisition of retail provider XOOM Energy, LLC for $208 million2, representing an incremental $11 million of net income and $45 million of Adjusted EBITDA on an annualized basis. XOOM Energy is an electricity and natural gas provider with over 300,000 customers, primarily in the East region.

Canal 3 Sale
On June 29, 2018, NRG closed the sale of Canal 3 to Stonepeak Kestrel Holdings II LLC, realizing a $17 million gain in continuing operations. As a result, and as previously announced, the project financing and sale resulted in $133 million3 of proceeds which have been included in our 2018 capital available for allocation.

BETM Sale
On August 1, 2018, NRG closed on the sale of Boston Energy Trading and Marketing LLC (BETM) to Diamond Generating Corporation, a subsidiary of Mitsubishi Corporation, for $70 million.4 

GenOn Update
In July 2018, NRG consummated a settlement with GenOn, which provided that certain payments contemplated by the Restructuring Support Agreement were accelerated and paid in July. The Company paid GenOn approximately $125 million in July 2018, which included (i) the settlement consideration of $261 million, (ii) the transition services credit of $28 million and (iii) the return of $15 million of collateral posted to NRG; offset by the (i) $151 million in borrowings under the intercompany secured revolving credit facility, (ii) related accrued interest and fees of $12 million, (iii) remaining payments due under the transition services agreement of $10 million and (iv) certain other balances due to NRG totaling $6 million. As of June 30, 2018, the Company had reserved for all amounts deemed to be uncollectible. Other than certain pension and postretirement obligations and certain REMA claims for which GenOn has posted collateral, the settlement provides NRG full releases from GenOn and its debtor and non debtor subsidiaries other than REMA. GenOn expects to emerge from Bankruptcy on October 1, 2018.




2 Includes transaction costs and working capital adjustments of $43 million
3 Represents $151 million of financing proceeds distributed to NRG plus $16 million of sale proceeds less $13.5 million cost for Canal option repaid to GenOn and $21 million of incremental CapEx costs than originally guided (original 2018 growth investment guidance assumed $103 million of CapEx spend at Canal 3; actual spend through closing of the sale of Canal 3 was $124 million)

3



4 Excludes working capital adjustments


Ivanpah Deconsolidation
The Company owns a 54.6% interest in the Ivanpah project, consisting of three solar electric generating projects with a total capacity of 392 MW. As the majority shareholder, NRG consolidated 100% of Ivanpah. On May 9, 2018, the project owners and the DOE agreed to amend the project's credit agreement in which a release of reserve funds by the DOE was used to make equity distributions to the partners and make a partial prepayment on the outstanding debt, along with the amendment of certain of Ivanpah's governing documents. These events caused NRG to deem Ivanpah a variable interest entity (VIE) and deconsolidate the entity and treat it as an equity method investment going forward. The deconsolidation reduced net property, plant, and equipment by $1.1 billion and reduced debt by $1.1 billion.


2018 Guidance

NRG is maintaining its guidance for 2018 with respect to Consolidated Adjusted EBITDA, Cash from Operations, and FCFbG as set forth below.

Table 4: 2018 Adjusted EBITDA, Cash from Operations, and FCF before Growth Investments Guidance
 
2018
($ in millions)
Guidance Range
Adjusted EBITDA a
$2,800 - $3,000
Cash From Operations
$2,015 - $2,215
Free Cash Flow Before Growth Investments (FCFbG)
$1,550 - $1,750
a. Non-GAAP financial measure; see Appendix Tables A-1 through A-5 for GAAP Reconciliation to Net Income that excludes fair value adjustments related to derivatives. The Company is unable to provide guidance for Net Income due to the impact of such fair value adjustments related to derivatives in a given year 


Capital Allocation Update
On July 18, 2018, NRG declared a quarterly dividend on the company's common stock of $0.03 per share, payable August 15, 2018, to stockholders of record as of August 1, 2018, representing $0.12 on an annualized basis.

In connection with the $1 billion share repurchase authorization, NRG repurchased 15.7 million shares of its common stock for $500 million at an average cost of $31.80 per share through the first half of 2018. NRG expects to launch the remaining $500 million of the share buyback program following closing of the NRG Yield and Renewables or South Central transactions.

During the second quarter of 2018, NRG issued $575 million of 2.75% convertible senior notes due 2048. NRG intends to use cash on hand and the proceeds from the offering to repay $575 million of its outstanding indebtedness and, as a result, the convertible notes offering is expected to be leverage neutral while generating approximately $20 million of annual interest expense savings5. Since this offering, NRG has repurchased a total of $89 million of its 2022, 2027 and 2028 senior unsecured notes in the open market and on August 1, 2018, NRG issued notice to repurchase $486 million of its 2022 callable bonds.

Also, as previously announced, NRG intends to reduce corporate debt by an additional $640 million in the second half of 2018, and is temporarily reserving $1,065 million of additional cash to achieve its 3.0x corporate net debt to Adjusted EBITDA ratio as part of the capital allocation guidance.

The Company’s common stock dividend, debt reduction and share repurchases are subject to available capital, market conditions and compliance with associated laws and regulations.








4




5 Interest savings assumes average 6.2% interest rate on $575 million debt retired in 2018
Earnings Conference Call
On August 2, 2018, NRG will host a conference call at 8:00 a.m. Eastern to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials by logging on to NRG’s website at http://www.nrg.com and clicking on “Investors” then "Presentations & Webcasts." The webcast will be archived on the site for those unable to listen in real time.

About NRG
At NRG, we’re redefining power by putting customers at the center of everything we do. We create value by generating electricity and serving nearly 3 million residential and commercial customers through our portfolio of retail electricity brands. A Fortune 500 company, NRG delivers customer-focused solutions for managing electricity, while enhancing energy choice and working towards a sustainable energy future. More information is available at www.nrg.com. Connect with NRG on Facebook, LinkedIn and follow us on Twitter @nrgenergy, @nrginsight.

Safe Harbor Disclosure
In addition to historical information, the information presented in this communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue,” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about the Company’s future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.
 
Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, hazards customary in the power industry, weather conditions, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulations, the condition of capital markets generally, our ability to access capital markets, cyber terrorism and inadequate cyber security, unanticipated outages at our generation facilities, adverse results in current and future litigation, failure to identify, execute or successfully implement acquisitions, repowerings or asset sales, our ability to implement value enhancing improvements to plant operations and companywide processes, our ability to implement and execute on our publicly announced transformation plan, including any cost savings, margin enhancement, asset sale, and net debt targets, our ability to proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, risks related to project siting, financing, construction, permitting, government approvals and the negotiation of project development agreements, our ability to progress development pipeline projects, the timing or completion of GenOn's emergence from bankruptcy, the inability to maintain or create successful partnering relationships, our ability to operate our businesses efficiently, our ability to retain retail customers, our ability to realize value through our commercial operations strategy, the ability to successfully integrate businesses of acquired companies, our ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, our ability to close the Drop Down transactions with NRG Yield, and our ability to execute our Capital Allocation Plan. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The adjusted EBITDA and free cash flow guidance are estimates as of August 2, 2018. These estimates are based on assumptions the company believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this Earnings press release should be considered in connection with information regarding risks and uncertainties that may affect NRG’s future results included in NRG’s filings with the Securities and Exchange Commission at www.sec.gov.


5




Contacts:

Media:
 
Investors:
 
 
 
 
 
Marijke Shugrue
 
Kevin L. Cole, CFA
 
609.524.5262
 
609.524.4526
 
 
 
 
 
 
 
 
 
 
 
 
 




6



NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three months ended June 30,
 
Six months ended June 30,
(In millions, except for per share amounts)
2018
 
2017
 
2018
 
2017
Operating Revenues

 

 

 

Total operating revenues
$
2,922

 
$
2,701

 
$
5,343

 
$
5,083

Operating Costs and Expenses

 

 

 

Cost of operations
2,051

 
1,841

 
3,609

 
3,704

Depreciation and amortization
227

 
260

 
462

 
517

Impairment losses
74

 
63

 
74

 
63

Selling, general and administrative
211

 
221

 
402

 
481

Reorganization costs
23

 

 
43

 

Development costs
16

 
18

 
29

 
35

Total operating costs and expenses
2,602

 
2,403

 
4,619

 
4,800

Other income - affiliate

 
39

 

 
87

Gain on sale of assets
14

 
2

 
16

 
4

Operating Income
334

 
339

 
740

 
374

Other Income/(Expense)

 

 

 

Equity in earnings/(losses) of unconsolidated affiliates
18

 
(3
)
 
16

 
2

Other income/(expense), net
(20
)
 
14

 
(23
)
 
26

Loss on debt extinguishment, net
(1
)
 

 
(3
)
 
(2
)
Interest expense
(202
)
 
(247
)
 
(369
)
 
(471
)
Total other expense
(205
)
 
(236
)
 
(379
)
 
(445
)
Income/(Loss) from Continuing Operations Before Income Taxes
129

 
103

 
361

 
(71
)
Income tax expense/(benefit)
8

 
4

 
7

 
(1
)
Income/(Loss) from Continuing Operations
121

 
99

 
354

 
(70
)
Loss from discontinued operations, net of income tax
(25
)
 
(741
)
 
(25
)
 
(775
)
Net Income/(Loss)
96

 
(642
)
 
329

 
(845
)
Less: Net income/(loss) attributable to noncontrolling interest and redeemable noncontrolling interests
24

 
(16
)
 
(22
)
 
(55
)
Net Income/(Loss) Attributable to NRG Energy, Inc.
$
72

 
$
(626
)
 
$
351

 
$
(790
)
Earnings/(Loss) per Share Attributable to NRG Energy, Inc. Common Stockholders

 

 

 

Weighted average number of common shares outstanding — basic
310

 
316

 
314

 
316

Income/(loss) from continuing operations per weighted average common share — basic
$
0.31

 
$
0.36

 
$
1.20

 
$
(0.05
)
Income/(loss) from discontinued operations per weighted average common share — basic
$
(0.08
)
 
$
(2.34
)
 
$
(0.08
)
 
$
(2.45
)
Earnings/(Loss) per Weighted Average Common Share — Basic
$
0.23

 
$
(1.98
)
 
$
1.12

 
$
(2.50
)
Weighted average number of common shares outstanding — diluted
314

 
316

 
318

 
316

Income/(loss) from continuing operations per weighted average common share — diluted
$
0.31

 
$
0.36

 
$
1.18

 
$
(0.05
)
Income/(loss) from discontinued operations per weighted average common share — diluted
$
(0.08
)
 
$
(2.34
)
 
$
(0.08
)
 
$
(2.45
)
Earnings/(Loss) per Weighted Average Common Share — Diluted
$
0.23

 
$
(1.98
)
 
$
1.10

 
$
(2.50
)
Dividends Per Common Share
$
0.03

 
$
0.03

 
$
0.06

 
$
0.06


7



NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(Unaudited)
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018

2017
 
(In millions)
Net income/(loss)
$
96

 
$
(642
)
 
$
329

 
$
(845
)
Other comprehensive income/(loss), net of tax

 

 

 

Unrealized gain/(loss) on derivatives, net of income tax expense of $0, $0, $0, and $1
5

 
(5
)
 
19

 
(1
)
Foreign currency translation adjustments, net of income tax expense of $0, $0, $0, and $0
(4
)
 
1

 
(6
)
 
8

Available-for-sale securities, net of income tax expense of $0, $0, $0, and $0
1

 
1

 
1

 
1

Defined benefit plans, net of income tax expense of $0, $0, $0, and $0
(1
)
 
27

 
(2
)
 
27

Other comprehensive income
1

 
24

 
12

 
35

Comprehensive income/(loss)
97

 
(618
)
 
341

 
(810
)
Less: Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interest
26

 
(17
)
 
(12
)
 
(56
)
Comprehensive income/(loss) attributable to NRG Energy, Inc.
71

 
(601
)
 
353

 
(754
)
Comprehensive income/(loss) available for common stockholders
$
71

 
$
(601
)
 
$
353

 
$
(754
)




8



NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
June 30, 2018
 
December 31, 2017
(In millions, except shares)
(Unaudited)
 
 
ASSETS
 
 
 
Current Assets
 
 

Cash and cash equivalents
$
980

 
$
991

Funds deposited by counterparties
71

 
37

Restricted cash
286

 
508

Accounts receivable, net
1,371

 
1,079

Inventory
485

 
532

Derivative instruments
851

 
626

Cash collateral paid in support of energy risk management activities
224

 
171

Accounts receivable - affiliate
57

 
95

Current assets - held for sale
100

 
115

Prepayments and other current assets
328

 
261

Total current assets
4,753

 
4,415

Property, plant and equipment, net
12,774

 
13,908

Other Assets
 
 
 
Equity investments in affiliates
1,055

 
1,038

Notes receivable, less current portion
15

 
2

Goodwill
539

 
539

Intangible assets, net
1,860

 
1,746

Nuclear decommissioning trust fund
694

 
692

Derivative instruments
426

 
172

Deferred income taxes
126

 
134

Non-current assets held-for-sale
50

 
43

Other non-current assets
655

 
629

Total other assets
5,420

 
4,995

Total Assets
$
22,947

 
$
23,318

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current Liabilities
 
 
 
Current portion of long-term debt and capital leases
$
952

 
$
688

Accounts payable
975

 
881

Accounts payable - affiliate
29

 
33

Derivative instruments
709

 
555

Cash collateral received in support of energy risk management activities
72

 
37

Current liabilities held-for-sale
74

 
72

Accrued expenses and other current liabilities
719

 
890

Accrued expenses and other current liabilities - affiliate
133

 
161

Total current liabilities
3,663

 
3,317

Other Liabilities
 
 
 
Long-term debt and capital leases
14,821

 
15,716

Nuclear decommissioning reserve
274

 
269

Nuclear decommissioning trust liability
410

 
415

Deferred income taxes
17

 
21

Derivative instruments
285

 
197

Out-of-market contracts, net
195

 
207

Non-current liabilities held-for-sale
12

 
8

Other non-current liabilities
1,130

 
1,122

Total non-current liabilities
17,144

 
17,955

Total Liabilities
20,807

 
21,272

Redeemable noncontrolling interest in subsidiaries
69

 
78

Commitments and Contingencies


 


Stockholders’ Equity

 

Common stock
4

 
4

Additional paid-in capital
8,481

 
8,376

Accumulated deficit
(5,920
)
 
(6,268
)
Less treasury stock, at cost — 116,267,484 and 101,580,045 shares, at June 30, 2018 and December 31, 2017, respectively
(2,871
)
 
(2,386
)
Accumulated other comprehensive loss
(60
)
 
(72
)
Noncontrolling interest
2,437

 
2,314

Total Stockholders’ Equity
2,071

 
1,968

Total Liabilities and Stockholders’ Equity
$
22,947

 
$
23,318



9



NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Six months ended June 30,
(In millions)
2018
 
2017
Cash Flows from Operating Activities

 

Net income/(loss)
$
329

 
$
(845
)
Loss from discontinued operations, net of income tax
(25
)
 
(775
)
Income/(loss) from continuing operations
354

 
(70
)
Adjustments to reconcile net income to net cash provided/(used) by operating activities:

 

Distributions and equity in earnings of unconsolidated affiliates
27

 
26

Depreciation, amortization and accretion
485

 
517

Provision for bad debts
31

 
18

Amortization of nuclear fuel
24

 
24

Amortization of financing costs and debt discount/premiums
27

 
29

Adjustment for debt extinguishment
3

 

Amortization of intangibles and out-of-market contracts
48

 
51

Amortization of unearned equity compensation
26

 
16

Impairment losses
89

 
63

Changes in deferred income taxes and liability for uncertain tax benefits
4

 
8

Changes in nuclear decommissioning trust liability
41

 
2

Changes in derivative instruments
(211
)
 
7

Changes in collateral deposits in support of energy risk management activities
(18
)
 
(189
)
Gain on sale of emission allowances
(11
)
 
11

Gain on sale of assets
(16
)
 
(22
)
Loss on deconsolidation of business
22

 

Changes in other working capital
(401
)
 
(379
)
Cash provided by continuing operations
524

 
112

Cash used by discontinued operations

 
(38
)
Net Cash Provided by Operating Activities
524

 
74

Cash Flows from Investing Activities
 
 
 
Acquisitions of businesses, net of cash acquired
(284
)
 
(16
)
Capital expenditures
(691
)
 
(542
)
Decrease in notes receivable
4

 
8

Purchases of emission allowances
(22
)
 
(30
)
Proceeds from sale of emission allowances
34

 
59

Investments in nuclear decommissioning trust fund securities
(346
)
 
(279
)
Proceeds from the sale of nuclear decommissioning trust fund securities
303

 
277

Proceeds from renewable energy grants and state rebates

 
8

Proceeds from sale of assets, net of cash disposed of
18

 
35

Deconsolidation of business
(160
)
 

Changes in investments in unconsolidated affiliates
(2
)
 
(30
)
Other

 
18

Cash used by continuing operations
(1,146
)
 
(492
)
Cash used by discontinued operations

 
(53
)
Net Cash Used by Investing Activities
(1,146
)
 
(545
)
Cash Flows from Financing Activities
 
 

Payment of dividends to common and preferred stockholders
(19
)
 
(19
)
Payment for treasury stock
(500
)
 

Net receipts from settlement of acquired derivatives that include financing elements

 
2

Proceeds from issuance of stock

 

Proceeds from issuance of long-term debt
1,605

 
946

Payments for short and long-term debt
(848
)
 
(530
)
Increase in notes receivable from affiliate

 
(125
)
Net contributions from noncontrolling interests in subsidiaries
222

 
14

Payment of debt issuance costs
(37
)
 
(36
)
Other - contingent consideration

 
(10
)
Cash provided by continuing operations
423

 
242

Cash used by discontinued operations

 
(224
)
 Net Cash Provided by Financing Activities
423

 
18

Effect of exchange rate changes on cash and cash equivalents

 
(8
)
Change in Cash from discontinued operations

 
(315
)
Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash
(199
)
 
(146
)
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period
1,536

 
1,386

Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period
$
1,337

 
$
1,240



10



Appendix Table A-1: Second Quarter 2018 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adj. EBITDA and provides a reconciliation to income/(loss) from continuing operations:
($ in millions)
Gulf Coast
East/West1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Income/(Loss) from Continuing Operations
305

(33
)
272

(84
)
(12
)
96

(151
)
121

Plus:
 


 
 
 
 
 


Interest expense, net

7

7

1

14

70

105

197

Income tax




(5
)
7

6

8

Loss on debt extinguishment






1

1

Depreciation and amortization
43

23

66

31

40

82

8

227

ARO Expense
4

4

8


1

1

1

11

Contract amortization
3


3



18


21

Lease amortization

(2
)
(2
)




(2
)
EBITDA
355

(1
)
354

(52
)
38

274

(30
)
584

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates
3

5

8

(6
)
4

33

2

41

Acquisition-related transaction & integration costs



1


1


2

Reorganization costs
2

1

3

1

3


16

23

Deactivation costs

7

7




3

10

Gain on sale of assets






(14
)
(14
)
Other non recurring charges
19

2

21

8

10

(5
)
18

52

Impairments

74

74





74

Mark to market (MtM) (gains)/losses on economic hedges
(285
)
15

(270
)
346

(5
)


71

Adjusted EBITDA
94

103

197

298

50

303

(5
)
843

1 Includes International, BETM and generation eliminations


Second Quarter 2018 condensed financial information by Operating Segment:
($ in millions)
Gulf Coast
East/West1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Operating revenues
618

322

940

1,817

108

325

(269
)
2,921

Cost of sales
341

91

432

1,319

2

17

(255
)
1,515

Economic gross margin
277

231

508

498

106

308

(14
)
1,406

Operations & maintenance and other cost of operations 2
176

110

286

75

29

58

(14
)
434

Selling, marketing, general and administrative
30

25

55

126

12

7

11

211

Other expense/(income) 3
(23
)
(7
)
(30
)
(1
)
15

(60
)
(6
)
(82
)
Adjusted EBITDA
94

103

197

298

50

303

(5
)
843

1 Includes International, BETM and generation eliminations
2 Excludes deactivation costs of $10 million
3 Excludes gain on sale of assets of $14 million, acquisition-related transaction & integration costs of $2 million, reorganization costs of $23 million and loss on debt extinguishment of $1 million







11






The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)
Condensed financial information
Interest, tax, depr., amort.
MtM
Deactivation
Other adj.
Adjusted EBITDA 
Operating revenues
2,922

14

(15
)


2,921

Cost of operations
1,608

(7
)
(86
)


1,515

Gross margin
1,314

21

71



1,406

Operations & maintenance and other cost of operations
444



(10
)

434

Selling, marketing, general & administrative
211





211

Other expense/(income) 1
538

(441
)


(179
)
(82
)
Income/(Loss) from Continuing Operations
121

462

71

10

179

843

1 Other adj. includes gain on sale of assets of $14 million, acquisition-related transaction & integration costs of $2 million, reorganization costs of $23 million and loss on debt extinguishment of $1 million


12



Appendix Table A-2: Second Quarter 2017 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to income/(loss) from continuing operations:
($ in millions)
Gulf Coast
East/West1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Income/(Loss) from Continuing Operations
(148
)
58

(90
)
341

(46
)
44

(150
)
99

Plus:
 


 
 
 
 
 


Interest expense, net

8

8

1

25

88

123

245

Income tax

2

2

(12
)
(5
)
8

11

4

Depreciation and amortization
68

27

95

29

49

79

8

260

ARO Expense
4

2

6



1


7

Contract amortization
4

1

5



17


22

Lease amortization

(2
)
(2
)




(2
)
EBITDA
(72
)
96

24

359

23

237

(8
)
635

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates
15

5

20

(3
)
(5
)
34

1

47

Acquisition-related transaction & integration costs





1


1

Deactivation costs

(1
)
(1
)



4

3

Other non recurring charges

(25
)
(1
)
(26
)
4

9

2

7

(4
)
Impairments
42

(1
)
41


22



63

Mark to market (MtM) (gains)/losses on economic hedges
105

(11
)
94

(156
)
3



(59
)
Adjusted EBITDA
65

87

152

204

52

274

4

686

1 Includes International, BETM and generation eliminations


Second Quarter 2017 condensed financial information by Operating Segment:
($ in millions)
Gulf Coast
East/West1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Operating revenues
607

349

956

1,605

122

305

(314
)
2,674

Cost of sales
363

134

497

1,213

3

14

(305
)
1,422

Economic gross margin
244

215

459

392

119

291

(9
)
1,252

Operations & maintenance and other cost of operations 2
128

121

249

81

39

63

(6
)
426

Selling, marketing, general & administrative
28

24

52

106

14

7

42

221

Other expense/(income) 3
23

(17
)
6

1

14

(53
)
(49
)
(81
)
Adjusted EBITDA
65

87

152

204

52

274

4

686

1 Includes International, BETM and generation eliminations
2 Excludes deactivation costs of $3 million
3 Excludes acquisition-related transaction & integration costs of $1 million








13



The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)
Condensed financial information
Interest, tax, depr., amort.
MtM
Deactivation
Other adj.
Adjusted EBITDA
Operating revenues
2,701

14

(41
)


2,674

Cost of operations
1,412

(8
)
18



1,422

Gross margin
1,289

22

(59
)


1,252

Operations & maintenance and other cost of operations
429



(3
)

426

Selling, marketing, general & administrative
221





221

Other expense/(income) 1
540

(514
)


(107
)
(81
)
Income/(Loss) from Continuing Operations
99

536

(59
)
3

107

686

1 Other adj. includes acquisition-related transaction & integration costs of $1 million


14



Appendix Table A-3: YTD Second Quarter 2018 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adj. EBITDA and provides a reconciliation to income/(loss) from continuing operations:
($ in millions)
Gulf Coast
East/West1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Income/(Loss) from Continuing Operations
(261
)
(4
)
(265
)
861

(45
)
96

(293
)
354

Plus:
 
 
 
 
 
 
 


Interest expense, net

10

10

2

28

124

196

360

Income tax




(11
)
6

12

7

Loss on debt extinguishment






3

3

Depreciation and amortization
86

47

133

59

90

163

17

462

ARO Expense
11

8

19

2

2

2

(2
)
23

Contract Amortization
5

1

6



35


41

Lease amortization

(5
)
(5
)



1

(4
)
EBITDA
(159
)
57

(102
)
924

64

426

(66
)
1,246

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates
2

12

14

(12
)
7

67


76

Acquisition-related transaction & integration costs



3


2

1

6

Reorganization costs
4

3

7

4

3


29

43

Deactivation costs

10

10




6

16

Gain on sale of business




1


(14
)
(13
)
Other non recurring charges

26

5

31

7

1

(3
)
33

69

Impairments

74

74





74

Market to market (MtM) (gains)/losses on economic hedges
282

28

310

(440
)
5



(125
)
Adjusted EBITDA
155

189

344

486

81

492

(11
)
1,392

1 Includes International, BETM and generation eliminations

YTD Second Quarter 2018 condensed financial information by Operating Segment:
($ in millions)
Gulf Coast
East/West1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Operating revenues
1,142

696

1,838

3,304

204

567

(451
)
5,462

Cost of sales
618

242

860

2,427

5

37

(421
)
2,908

Economic gross margin
524

454

978

877

199

530

(30
)
2,554

Operations & maintenance and other cost of operations 2
353

227

580

147

64

127

(30
)
888

Selling, marketing, general & administrative
59

47

106

241

22

13

20

402

Other expense/(income) 3
(43
)
(9
)
(52
)
3

32

(102
)
(9
)
(128
)
Adjusted EBITDA
155

189

344

486

81

492

(11
)
1,392

1 Includes International, BETM and generation eliminations
2 Excludes deactivation costs of $16 million
3 Excludes gain on sale of assets of $13 million, acquisition-related transaction & integration costs of $6 million, reorganization costs of $43 million and loss on debt extinguishment of $3 million





15





The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)
Condensed financial information
Interest, tax, depr., amort.
MtM
Deactivation
Other adj.
Adjusted EBITDA 
Operating revenues
5,343

28

91



5,462

Cost of operations
2,705

(13
)
216



2,908

Gross margin
2,638

41

(125
)


2,554

Operations & maintenance and other cost of operations
904



(16
)

888

Selling, marketing, general & administrative
402





402

Other expense/(income) 1
978

(848
)


(258
)
(128
)
Income/(Loss) from Continuing Operations
354

889

(125
)
16

258

1,392

1 Other adj. includes gain on sale of assets of $13 million, acquisition-related transaction & integration costs of $6 million, reorganization costs of $43 million and loss on debt extinguishment of $3 million


16



Appendix Table A-4: YTD Second Quarter 2017 Adjusted EBITDA Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to income/(loss) from continuing operations:
($ in millions)
Gulf Coast
East/West1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Income/(Loss) from Continuing Operations
(105
)
51

(54
)
311

(77
)
42

(292
)
(70
)
Plus:
 
 
 
 
 
 
 


Interest expense, net

17

17

3

48

163

235

466

Income tax

2

2

(9
)
(10
)
7

9

(1
)
Loss on debt extinguishment





2


2

Depreciation and amortization
138

54

192

57

96

156

16

517

ARO Expense
7

6

13


1

2


16

Contract Amortization
8

2

10

1


34


45

Lease amortization
(1
)
(4
)
(5
)



1

(4
)
EBITDA
47

128

175

363

58

406

(31
)
971

Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated affiliates
21

12

33

(6
)
(10
)
47

1

65

Acquisition-related transaction & integration costs





2

(1
)
1

Deactivation costs

1

1




4

5

Other non recurring charges

(23
)
(3
)
(26
)

8

5

19

6

Impairments
42

(1
)
41


22



63

MtM (gains)/losses on economic hedges
(17
)
(1
)
(18
)
(20
)
(3
)


(41
)
Adjusted EBITDA
70

136

206

337

75

460

(8
)
1,070

1 Includes International, BETM and generation eliminations


YTD Second Quarter 2017 condensed financial information by Operating Segment:
($ in millions)
Gulf Coast
East/West1
Generation
Retail
Renewables
NRG Yield
Corp/Elim
Total
Operating revenues
1,103

694

1,797

2,939

210

543

(536
)
4,953

Cost of sales
655

294

949

2,211

7

30

(514
)
2,683

Economic gross margin
448

400

848

728

203

513

(22
)
2,270

Operations & maintenance and other cost of operations 2
298

229

527

159

73

132

(9
)
882

Selling, marketing, general & administrative
61

50

111

225

27

12

106

481

Other expense/(income) 3
19

(15
)
4

7

28

(91
)
(111
)
(163
)
Adjusted EBITDA
70

136

206

337

75

460

(8
)
1,070

1 Includes International, BETM and generation eliminations
2 Excludes deactivation costs of $5 million
3 Excludes acquisition-related transaction & integration costs of $1 million and loss on debt extinguishment of $2 million

17





The following table reconciles the condensed financial information to Adjusted EBITDA:
($ in millions)
Condensed financial information
Interest, tax, depr., amort.
MtM
Deactivation
Other adj.
Adjusted EBITDA 
Operating revenues
5,083

29

(159
)


4,953

Cost of operations
2,817

(16
)
(118
)


2,683

Gross margin
2,266

45

(41
)


2,270

Operations & maintenance and other cost of operations
887



(5
)

882

Selling, marketing, general & administrative
481





481

Other expense/(income) 1
968

(994
)


(137
)
(163
)
Income/(Loss) from Continuing Operations
(70
)
1,039

(41
)
5

137

1,070

1 Other adj. includes acquisition-related transaction & integration costs of $1 million and loss on debt extinguishment of $2 million


18



Appendix Table A-5: 2018 and 2017 Three and Six Months Ended June 30 Adjusted Cash Flow from Operations Reconciliations
The following table summarizes the calculation of adjusted cash flow operating activities providing a reconciliation to net cash provided by operating activities:

 
 
Three Months Ended
($ in millions)
 
June 30, 2018
 
June 30, 2017
Net Cash Provided by Operating Activities
 
167


194

Reclassifying of net receipts for settlement of acquired derivatives that include financing elements
 


1

Merger, integration and cost-to-achieve expenses (1)
 
22



Return of capital from equity investments
 
(4
)

5

Adjustment for change in collateral
 
181


141

Adjusted Cash Flow from Operating Activities
 
366


341

Maintenance CapEx, net
 
(59
)

(49
)
Environmental CapEx, net
 


(7
)
Distributions to non-controlling interests
 
(48
)

(45
)
Free Cash Flow Before Growth Investments (FCFbG)
 
259


240

(1) 2018 includes cost-to-achieve expenses associated with the Transformation Plan announced on July 2017 call.


 
 
Six Months Ended
($ in millions)
 
June 30, 2018
 
June 30, 2017
Net Cash Provided by Operating Activities
 
524

 
112

Reclassifying of net receipts for settlement of acquired derivatives that include financing elements
 

 
2

Sale of Land
 
3

 
8

Merger, integration and cost-to-achieve expenses (1)
 
44

 

Return of capital from equity investments
 
(2
)
 
18

Adjustment for change in collateral (2)
 
18

 
268

Adjusted Cash Flow from Operating Activities
 
587

 
408

Maintenance CapEx, net (3)
 
(123
)
 
(84
)
Environmental CapEx, net
 

 
(25
)
Distributions to non-controlling interests
 
(98
)
 
(91
)
Free Cash Flow Before Growth Investments (FCFbG)
 
366

 
208

(1) 2018 includes cost-to-achieve expenses associated with the Transformation Plan announced on July 2017 call.
(2) 2017 reflects change in NRG’s cash collateral balance as of 2Q2017 including $79MM of collateral postings from deconsolidated affiliate (GenOn).
(3) Includes insurance proceeds of $18 million in 2017.


19



Appendix Table A-6: Second Quarter YTD 2018 Sources and Uses of Liquidity
The following table summarizes the sources and uses of liquidity through first quarter of 2018:
($ in millions)
Six Months Ended
June 30, 2018
Sources:
 
Adjusted cash flow from operations
587

Convertible Note Issuance
575

NYLD revolver proceeds
35

Asset sales
15

NYLD equity issuance
75

Uses:


Growth investments and acquisitions, net
(210
)
Debt Repayment, net of proceeds
(250
)
Decrease in credit facility
(489
)
Share repurchases
(500
)
Deconsolidation of Ivanpah
(160
)
Maintenance and environmental capex, net
(123
)
Distributions to non-controlling interests
(98
)
Collateral (1)
(53
)
Cost-to-achieve expenses(2)
(69
)
Common Stock Dividends
(19
)
Other Investing and Financing
(38
)
Change in Total Liquidity
(722
)
(1) Excludes impact of Funds deposited by Counterparties
(2) Includes capital expenditures associated with the Transformation Plan





20



Appendix Table A-7: 2018 Adjusted EBITDA Guidance Reconciliation
The following table summarizes the calculation of Adjusted EBITDA providing reconciliation to net income:
 
 
2018 Adjusted EBITDA
($ in millions)
 
Low
 
High
Income from Continuing Operations 1
 
410

 
 
610

 
Income Tax
 
20

 
 
20

 
Interest Expense
 
785

 
 
785

 
Depreciation, Amortization, Contract Amortization and ARO Expense
 
1,180

 
 
1,180