1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) JULY 18, 2000 ------------- NRG ENERGY, INC. ---------------- (Exact name of registrant as specified in its charter) DELAWARE -------- (State or other jurisdiction of incorporation) 333-33397 41-1724239 --------- ---------- (Commission File Number) (IRS Employer Identification No.) 1221 NICOLLET MALL, SUITE 700 MINNEAPOLIS, MN 55403 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 612-373-5300 ------------ (Former name or former address, if changed since last report)
2 ITEM 5. OTHER EVENTS - ------- ------------ On July 18, 2000, NRG Energy, Inc., a majority owned subsidiary of Northern States Power Company, reported its financial results for the quarter and six months ended June 30, 2000. The press release reporting the company's financial results is filed with this Form 8-K as Exhibit 99.10 See "Item 7. Exhibits." Item 7. Exhibits. The following exhibits are filed with this report on Form 8-K: Exhibit No. Description 99.10 Press release issued July 18, 2000 of NRG Energy, Inc.
3 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NRG Energy, Inc (Registrant) By /s/ Leonard A. Bluhm --------------------------- Leonard A. Bluhm Executive Vice President and Chief Financial Officer (Principal Financial Officer) Dated: July 18, 2000 -------------
1 EXHIBIT 99.10 NEWS RELEASE FOR IMMEDIATE RELEASE NRG ENERGY REPORTS SECOND QUARTER EARNINGS OF 28 CENTS PER SHARE MINNEAPOLIS - (JULY 18, 2000) --- NRG Energy, Inc. (NYSE: NRG) today reported its financial results for the quarter and six months ended June 30, 2000. These are the first quarterly results released by the Company since its initial public offering of common stock that closed on June 5, 2000. For the quarter ended June 30, 2000, net income was $43.6 million or 28 cents per share, versus $2.3 million or two cents per share on a share-adjusted basis for the quarter ended June 30, 1999. Revenue for the quarter ended June 30, 2000 was $522.0 million, versus $66.7 million in the same quarter in 1999. For the six months ending June 30, 2000, net income was $52.3 million or 35 cents per share, versus $1.4 million or one cent per share on a share-adjusted basis for the six months ended June 30, 1999. Revenue for the six months ended June 30, 2000 rose to $845 million from $113.2 million in the first six months of 1999. "We have established a strong base of business that will contribute to our earnings quarter-in and quarter-out and will have potential upside during periods of market volatility," said David H. Peterson, chairman, president and CEO of NRG. "We are comfortable that our earnings per share for the year will be in the 87 to 95 cents per share range, based on year-to-date results and consistent with analyst consensus estimates for the balance of the year." NRG's earnings benefited from increased generation capacity due to a number of newly acquired generation assets. Since June 30, 1999, NRG has increased its megawatt (MW) ownership interest in generating facilities in operation from 6,718 MW to 13,380 MW as of June 30, 2000. Additionally, 257 MW in projects were under construction at the end of the quarter. NRG's total assets as of June 30, 2000 were $5.5 billion, compared to $2.4 billion as of June 30, 1999.
2 In addition to more generating assets, earnings were affected favorably by a general increase in fuel prices - primarily for gas and oil - which contributed to higher market prices for electricity. Weather-related increases in demand for electricity, particularly in the northeastern and western United States, contributed to higher than anticipated earnings for the second quarter 2000. Market conditions and outages of non-NRG facilities in these regions magnified the favorable weather impacts. The company expects its most recent acquisitions - the Killingholme A facility in the United Kingdom and the Louisiana Generating assets in Louisiana - - to meet previously disclosed earnings estimates. "Our results support NRG's strategy of owning a well-balanced generation business that is diversified by geographic location, fuel type and dispatch level," added Peterson. "NRG has been able to respond quickly and effectively in times of peak energy demand, such as we experienced late in the quarter." During the second quarter 2000, NRG completed an initial public offering of 32,395,500 newly issued common shares at a price of $15 per share, resulting in gross proceeds to the Company of approximately $485 million. NRG common shares began trading on the New York Stock Exchange on May 31, 2000. NRG was formerly a wholly owned subsidiary of Northern States Power Company (NYSE: NSP), which retains an 82 percent economic interest in NRG. NRG Energy (www.nrgenergy.com) is a leading global energy company primarily engaged in the acquisition, development, construction, ownership and operation of power generation facilities. NRG owns all or a portion of 57 power generation projects with a total generating capacity of more than 23,000 MW; its net ownership interest in these projects totals 13,637 MW. NRG Energy's operations utilize such diverse fuel sources as natural gas, oil, coal and coal seam methane, biomass, landfill gas, and hydro, as well as refuse derived fuel. Certain statements included in this news release are forward-looking statements. They discuss, among other things, expected earnings and future financial performance. Such forward-looking information involves risks, uncertainties and assumptions, including, among others, factors affecting power generation operations such as unusual weather conditions, unscheduled generator outages, unanticipated changes to fossil fuel supply costs or availability and environmental incidents, the availability or cost of capital such as changes in interest rates and perceptions of the power generation industry,
3 employee workforce factors and volatility of energy prices in a deregulated market environment. These risks, uncertainties and assumptions could significantly affect actual results and, accordingly, such actual results may differ materially from the anticipated results expressed in any forward-looking statements. For more information regarding these risks and uncertainties, review NRG Energy's filings with the Securities and Exchange Commission. # # # Contacts: Meredith Moore Media Relations Manager NRG Energy, Inc. 612.313.8729 meredith.moore@nrgenergy.com Dan Dokken Executive Director, Investor Relations NRG Energy, Inc. 612.373.5336 dan.dokken@nrgenergy.com
4 NRG ENERGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999 UNAUDITED Three Months Ended Six Months Ended June 30, June 30, (Thousands of Dollars, except per share data) 2000 1999 2000 1999 - -------------------------------------------------------------------------------------------------------------------- OPERATING REVENUES Revenues from wholly-owned operations $ 473,836 $ 60,034 $ 806,507 $ 97,881 Equity in operating earnings of unconsolidated affiliates 48,173 6,625 38,529 15,292 - ------------------------------------------------------------------------------------------ ------------------------ Total operating revenues 522,009 66,659 845,036 113,173 - ------------------------------------------------------------------------------------------ ------------------------ OPERATING COSTS AND EXPENSES Cost of wholly-owned operations 305,908 41,124 520,831 69,064 Depreciation and amortization 30,865 6,291 50,852 11,025 General, administrative, and development 31,108 16,288 56,288 32,273 - ------------------------------------------------------------------------------------------ ------------------------ Total operating costs and expenses 367,881 63,703 627,971 112,362 - ------------------------------------------------------------------------------------------ ------------------------ OPERATING INCOME 154,128 2,956 217,065 811 - ------------------------------------------------------------------------------------------ ------------------------ OTHER INCOME (EXPENSE) Minority interest in earnings of consolidated subsidiary (2,283) (691) (4,081) (1,155) Other income, net 34 2,574 1,565 3,308 Interest expense (81,858) (15,788) (134,175) (26,847) - ------------------------------------------------------------------------------------------ ------------------------ Total other expense (84,107) (13,905) (136,691) (24,694) - ------------------------------------------------------------------------------------------ ------------------------ INCOME (LOSS) BEFORE INCOME TAXES 70,021 (10,949) 80,374 (23,883) - ------------------------------------------------------------------------------------------ ------------------------ INCOME TAX EXPENSE (BENEFIT) 26,440 (13,290) 28,047 (25,284) - ------------------------------------------------------------------------------------------ ------------------------ NET INCOME $ 43,581 $ 2,341 $ 52,327 $ 1,401 - ------------------------------------------------------------------------------------------ ------------------------ Weighted Average Shares Outstanding - Basic (000)'s 155,529 147,605 151,567 147,605 Earnings per Share - Basic $ 0.28 $ 0.02 $ 0.35 $ 0.01