This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

NRG Energy Raises 2014 Guidance On Strength Of Increased Operational And Cost Synergies Arising Out Of The GenOn Acquisition

Stocks in this article: NRG

NRG Energy (NYSE: NRG) is increasing its guidance for both adjusted EBITDA and FCF before growth investments following today’s announcement on improved synergies resulting from the GenOn combination as well as providing an update on current market conditions. Specifically, NRG is reaffirming 2013 adjusted EBITDA guidance, increasing 2014 adjusted EBITDA guidance by $90 million, and increasing FCF before growth guidance in 2013 and 2014 by $50 million and $200 million, respectively. These changes to guidance are relative to the guidance ranges previously provided on NRG’s first quarter earnings presentation on May 7, 2013 and are due to a number of factors, including:

  • Increases in all GenOn combination-related synergies (Cost, Operational, and Balance Sheet)
  • Updated outlook on forward commodity prices, competitive markets, and impact of mild weather experienced year to date

2013 and 2014 Guidance

($ in Millions) 2013 2014
Adjusted EBITDA 1 $2,615-$2,815



Wholesale 1,825-1,940 1,915-2,030
Retail 575-650 600-675
Solar 2 215-225 335-345
FCF, before growth investments $1,050-$1,250 $1,100-$1,300

Note: Reconciliation of Adjusted EBITDA are shown in Appendix

1Includes $200 million and $325 million in 2013 and 2014, respectively, of synergies as revised in today’s disclosure

2Solar projects include the adjusted EBITDA contribution from the projects excluding development expenses


“As a result of our ongoing continuous improvement and integration program over the past six months following the GenOn combination, we are pleased to announce significantly increased guidance for 2013 and 2014,” said David Crane, NRG’s President and Chief Executive Officer. “Our continued focus on relentless execution in our core businesses, combined with the inherent benefits of our combined energy platform, is putting us in a position to deliver strong financial performance even through the softer portion of the commodity price cycle.”

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs