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SEC Filing Details

8-K
NRG ENERGY, INC. filed this Form 8-K on 11/08/2018
Entire Document
 

Liquidity and Capital Resources
Table 3: Corporate Liquidity
($ in millions)
 
9/30/18
 
12/31/17
Cash and Cash Equivalents
 
$
1,359

 
$
767

Restricted Cash
 
28

 
279

Total
 
$
1,387

 
$
1,046

Total credit facility availability
 
1,454

 
1,711

Total Liquidity, excluding collateral received
 
$
2,841

 
$
2,757



As of September 30, 2018, NRG-level cash was at $1.4 billion, and $1.5 billion was available under the Company’s credit facilities. Total liquidity was $2.8 billion, including restricted cash. Overall liquidity as of the end of the third quarter 2018 was $84 million higher than at the end of 2017.

NRG Strategic Developments
Transformation Plan
Through the third quarter of 2018, NRG realized $375 million of its 2018 cost savings target as part of the previously announced Transformation Plan, and is on track to realize $500 million in savings in 2018. With respect to the asset sales under the Transformation Plan, on August 31, 2018, the Company completed the sale of its interest in NRG Yield, Inc. and the Renewables Platform to GIP, for approximately $1.348 billion in cash proceeds. NRG is narrowing asset sale proceeds to $3.1 billion from $3.2 billion. The $1 billion sale of South Central is targeted to close by year end 2018 and the balance, Carlsbad and Agua Caliente, in 2019.

Agua Caliente Deconsolidation
As a result of the sale of NRG Yield and the Renewables Platform, the Company no longer controls the Agua Caliente project. Due to this change in control, the Company has deconsolidated the Agua Caliente project from its financial results and is accounting for the project as an equity method investment going forward. This is unrelated to the Company’s planned sale of its remaining interest in Agua Caliente as described in the preceding paragraph.

2018 and 2019 Guidance

NRG has narrowed the range of its Adjusted EBITDA and FCF before Growth Investments guidance for 2018 to reflect the completed sale of NRG Yield and the Renewables Platform, as well as the previously announced sale of the South Central business unit. Additionally, NRG is initiating guidance for fiscal year 2019, which also reflects the aforementioned sales.

Table 4: 2018 and 2019 Adjusted EBITDA, Cash from Operations, and FCF before Growth Investments Guidance
 
2018
2019
($ in millions)
Revised Guidance4
Guidance
Adjusted EBITDA5
$1,700-$1,800
$1,850-$2,050
Cash From Operations
$1,240-$1,340
$1,405-$1,605
Free Cash Flow Before Growth Investments (FCFbG)
$1,050-$1,150
$1,250-$1,450











4 Adjusted for the deconsolidation of NRG Yield, the Renewables Platform, and Carlsbad Energy Center, and the expected sale of South Central
5 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 


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