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About NRG Energy, Inc.

NRG Energy is a leading retail energy marketer and independent power producer in the US market. NRG's retail units (including Reliant Energy and Green Mountain Energy) distribute electricity and natural gas to some 3.1 million customers in competitive markets in about 20 US states and two Canadian provinces. The company has a generating capacity of 23,000 MW from its portfolio of about 40 power plants. The vast majority of NRG's power plants are in North America, but it also has one in Australia and one in Turkey.  

Operations

NRG's operating segments are Retail, Generation, and Corporate.

NRG's Retail segment, accounting for about two-thirds of revenue, is one of the largest US retail energy marketers with operations in deregulated utility markets in 20 states plus two Canadian provinces. It provides electricity and natural gas to 3.1 million residential, commercial, and industrial customers. The segment overlooks several brands that collectively are the largest providers of electricity in Texas. Its Business Solutions group provides demand response and on-site generation, commodity sales, efficiency consulting, and energy management services to commercial customers.

Generation, a capital-intensive segment accounting for one-third of sales, has about 23,000 MW of fossil-fueled, nuclear, and renewable (wind and solar) generation capacity at some 40 plants. The division supplies wholesale power to NRG's retail operating units, as well as to third-party wholesale customers.

NRG sold its NRG Yield and Renewables business segments in 2018 as part of a restructuring program. The Renewables segment operated wind and solar assets in about 25 states. NRG Yield acquired and operated power generation and thermal infrastructure assets.

Geographic Reach

NRG's retail subsidiaries serve customers in 19 US states and Washington, DC, plus two Canadian provinces.

The company has generation assets in the US, Australia, and Turkey. Its US plants are primarily located in Texas, New York, Connecticut, Arizona, Maryland, Illinois, California, and Delaware.

NRG has its corporate headquarters in Princeton, New Jersey, and an operational base in Houston.

Sales and Marketing

NRG's Retail segment serves residential, business, commercial, and industrial customers. The company's sales are conducted through direct representatives, online platforms, call centers, brokers, and brick-and-mortar stores. NRG's Generation segment sells power to NRG's retail units and to third parties.

Financial Performance

NRG reported increased revenue over the past three years (2016-2018) after two years of sales declines, creating an overall drop in revenue over the five-year period. Net income also suffered, with the company posting a combined three-year loss of $9.3 billion during 2015 to 2017 before returning to the black in 2018 after embarking on an aggressive transformation program.

Revenue increased 5% in 2018 to some $9.5 billion due to 12% growth in the Retail segment, which has benefited from acquisitions and organic expansion efforts. The Generation segment showed a 5% decline in sales due to asset divestitures.

Net income rose to $268 million in 2018, a vast improvement over a net loss of $2.2 billion in 2017 caused by impairment charges and losses from discontinued operations.

The company ended 2018 with $613 million in cash, down $473 million from 2017. Operating activities contributed $1.4 billion, while investing activities used $205 million (mostly discontinued operations expenses and capital expenditures), and financing activities used $1.5 billion via treasury stock purchases and debt payments.

Strategy

NRG is focused on expanding its high-growth retail power and gas marketing business. The company is evaluating its power generation portfolio with the goal of focusing on plants located near (and supplying power to) its retail operations.

Coming out of three years of massive losses (for a combined $9.3 billion), NRG launched a drastic Transformation Plan at the start of 2018 (to be completed by the end of 2020). The three-part, three-year plan targets portfolio overhaul, cost-cutting, and capital structure enhancement.

The core of the plan focused on a massive asset sale, totaling $3 billion by early 2019. The company sold its NRG Yield unit and its renewable platform in 2018 for $1.3 billion, in addition to ownership interests in several other power plants. NRG also deconsolidated its interest in generation firm GenOn upon GenOn's emergence from bankruptcy protection in 2018. In early 2019, the firm sold its South Central power generation portfolio, consisting of nearly 3,600 MW of capacity, for $1 billion.

Cost-cutting efforts, including expense reduction and margin enhancement programs, resulted in annual cost savings of $532 million in 2018. To enhance its capital structure, NRG completed $1.5 billion in share repurchases and met its debt reduction goal that year.

NRG is growing its retail energy operations through acquisitions and organic programs such as loyalty and affinity programs, sustainability and renewable energy solutions, and premium service offerings.

Mergers and Acquisitions

In 2019, NRG acquired the retail electricity and gas business of Stream Energy for $300 million. The deal adds more than 600,000 residential customers in Texas, Pennsylvania, and seven other states plus Washington, DC, and is aligned with NRG's strategy to focus on its retail energy operations.

The company acquired retail energy company XOOM Energy in 2018 for $213 million. This acquisition added some 300,000 customers and balanced 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.

Company Background

NRG Energy was founded in 1992 to acquire and operate power generation facilities. A portion of the company was spun off from parent Northern States Power (later Xcel Energy) in an IPO in 2000. NRG became a wholly owned subsidiary of Xcel again in 2002 and filed for chapter 11 bankruptcy in 2003. Upon emerging from bankruptcy later that year, NRG became a public entity once again and separated completely from Xcel.

NRG Energy, Inc.

804 Carnegie Ctr
Princeton, NJ 08540-6023
Phone: 1 (609) 524-4500

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: NRG
Stock Exchange: , NYSE
EVP and CFO: Kirkland B. Andrews
Chairman: Lawrence S. Coben
President and CEO: Mauricio Gutierrez
Employees (This Location): 240
Employees (All Locations): 4,577

Major Office Locations

Princeton, NJ

Other Locations

Antioch, CA
Carlsbad, CA
Daggett, CA
El Segundo, CA
Fellows, CA
Long Beach, CA
Nipton, CA
Oxnard, CA
Pittsburg, CA
Rancho Cucamonga, CA
San Francisco, CA
Middletown, CT
Milford, CT
Millsboro, DE
Saint Cloud, FL
Titusville, FL
Morris, IL
Neoga, IL
Pekin, IL
Rockdale, IL
Romeoville, IL
Waukegan, IL
New Roads, LA
Sterlington, LA
Auburn, MA
Boston, MA
Franklin, MA
Sandwich, MA
Aquasco, MD
Newburg, MD
Vienna, MD
Minneapolis, MN
Saint Paul, MN
French Camp, MS
Petersburg, NE
Houston, NJ
Milford, NJ
Princeton, NJ
Sea Girt, NJ
Wall Township, NJ
Albany, NY
Oswego, NY
Avon Lake, OH
Niles, OH
Newcastle, OK
Portland, OR
Abbottstown, PA
Birdsboro, PA
Brookville, PA
Gettysburg, PA
Harrisburg, PA
Mount Bethel, PA
Mount Holly Springs, PA
New Florence, PA
New Freedom, PA
Pittsburgh, PA
Shawville, PA
Shelocta, PA
Warren, PA
West Mifflin, PA
West Pittsburg, PA
Austin, TX
Baytown, TX
Bellaire, TX
Houston, TX
Jewett, TX
La Porte, TX
Plano, TX
Temple, TX
Thompsons, TX
Waco, TX