NRG Energy extends financial outlook through 2027

NRG Energy will host a virtual Investor Day during which management will provide an update on its consumer services strategy, as well as the Company’s new capital allocation framework and operating efficiency initiatives. “We are better positioned than ever before to capitalize on NRG‘s market leadership in energy and the relationships we have built with millions of customers,” said Lawrence Coben, Chair of the NRG Board of Directors. “We fully support Mauricio and the management team and are confident in our strategy and ability to deliver superior, sustainable shareholder value.” NRG expects free cash flow before growth per share to increase approximately 15% to 20% on a compounded annual basis between 2023 and 2027. This equates to $8.3 billion of cumulative excess cash after deleveraging – exceeding NRG’s current market cap. NRG has updated its capital allocation framework and plans to, after deleveraging, return 80% of excess cash to shareholders and invest 20% in growth initiatives; this compares to the Company’s prior 50% / 50% allocation. As a result of the expected cash flow generation, the Company expects $6.9 billion of cumulative capital returns to shareholders through share repurchases and dividends through 2027. The Company’s Board of Directors has increased the share repurchase authorization from $1.0 billion to $2.7 billion through 2025. NRG expects 7% to 9% long-term annual dividend per share growth. In addition to significant capital returns to shareholders, NRG expects to complete up to $2.55 billion of debt reduction to enable NRG to achieve its target investment grade credit metrics of 2.5x to 2.75x net debt / adjusted corporate EBITDA by 2025, aligning with rating agency and counterparty expectations.