Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-15891 | |
Entity Registrant Name | NRG Energy, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-1724239 | |
Entity Address, Address Line One | 910 Louisiana Street | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 537-3000 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | NRG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 206,379,832 | |
Entity Central Index Key | 0001013871 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | ||||
Revenue | $ 6,659 | $ 6,348 | $ 14,088 | $ 14,070 |
Operating Costs and Expenses | ||||
Cost of operations (excluding depreciation and amortization shown below) | 4,356 | 4,962 | 10,041 | 13,740 |
Depreciation and amortization | 285 | 315 | 553 | 505 |
Impairment losses | 15 | 0 | 15 | 0 |
Selling, general and administrative costs | 592 | 522 | 1,183 | 948 |
Acquisition-related transaction and integration costs | 6 | 22 | 15 | 93 |
Total operating costs and expenses | 5,254 | 5,821 | 11,807 | 15,286 |
Gain on sale of assets | 5 | 3 | 1 | 202 |
Operating Income/(Loss) | 1,410 | 530 | 2,282 | (1,014) |
Other Income/(Expense) | ||||
Equity in earnings of unconsolidated affiliates | 4 | 5 | 7 | 10 |
Other income, net | 3 | 13 | 33 | 29 |
Loss on debt extinguishment | (202) | 0 | (260) | 0 |
Interest expense | (163) | (151) | (315) | (299) |
Total other expense | (358) | (133) | (535) | (260) |
Income/(Loss) Before Income Taxes | 1,052 | 397 | 1,747 | (1,274) |
Income tax expense/(benefit) | 314 | 89 | 498 | (247) |
Net Income/(Loss) | 738 | 308 | 1,249 | (1,027) |
Less: Cumulative dividends attributable to Series A Preferred Stock | 17 | 17 | 34 | 21 |
Net Income/(Loss) Available to Common Stockholders, basic | 721 | 291 | 1,215 | (1,048) |
Net Income/(Loss) Available to Common Stockholders, diluted | $ 721 | $ 291 | $ 1,215 | $ (1,048) |
Income/(Loss) per Share | ||||
Weighted average number of common shares outstanding — basic (in shares) | 208,000 | 231,000 | 209,000 | 230,000 |
Income/(Loss) per Weighted Average Common Share — Basic (in usd per share) | $ 3.47 | $ 1.26 | $ 5.81 | $ (4.56) |
Weighted average number of common shares outstanding — diluted (in shares) | 214,000 | 232,000 | 214,000 | 230,000 |
Income/(Loss) per Weighted Average Common Share — Diluted (in usd per share) | $ 3.37 | $ 1.25 | $ 5.68 | $ (4.56) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income/(Loss) | $ 738 | $ 308 | $ 1,249 | $ (1,027) |
Other Comprehensive (Loss)/Income | ||||
Foreign currency translation adjustments | (2) | 6 | (10) | 8 |
Defined benefit plans | (1) | 0 | (2) | (1) |
Other comprehensive (loss)/income | (3) | 6 | (12) | 7 |
Comprehensive Income/(Loss) | $ 735 | $ 314 | $ 1,237 | $ (1,020) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 376 | $ 541 |
Funds deposited by counterparties | 688 | 84 |
Restricted cash | 16 | 24 |
Accounts receivable, net | 3,402 | 3,542 |
Inventory | 623 | 607 |
Derivative instruments | 3,520 | 3,862 |
Cash collateral paid in support of energy risk management activities | 384 | 441 |
Prepayments and other current assets | 797 | 626 |
Total current assets | 9,806 | 9,727 |
Property, plant and equipment, net | 1,790 | 1,763 |
Other Assets | ||
Equity investments in affiliates | 45 | 42 |
Operating lease right-of-use assets, net | 201 | 179 |
Goodwill | 5,060 | 5,079 |
Derivative instruments | 2,625 | 2,293 |
Deferred income taxes | 1,841 | 2,251 |
Other non-current assets | 981 | 777 |
Total other assets | 14,166 | 14,548 |
Total Assets | 25,762 | 26,038 |
Current Liabilities | ||
Current portion of long-term debt and finance leases | 262 | 620 |
Current portion of operating lease liabilities | 91 | 90 |
Accounts payable | 2,109 | 2,325 |
Derivative instruments | 2,664 | 4,019 |
Cash collateral received in support of energy risk management activities | 688 | 84 |
Deferred revenue current | 779 | 720 |
Accrued expenses and other current liabilities | 1,709 | 1,642 |
Total current liabilities | 8,302 | 9,500 |
Other Liabilities | ||
Long-term debt and finance leases | 10,425 | 10,133 |
Non-current operating lease liabilities | 144 | 128 |
Derivative instruments | 1,435 | 1,488 |
Deferred income taxes | 8 | 22 |
Deferred revenue non-current | 906 | 914 |
Other non-current liabilities | 919 | 947 |
Total other liabilities | 13,837 | 13,632 |
Total Liabilities | 22,139 | 23,132 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock; 10,000,000 shares authorized; 650,000 Series A shares issued and outstanding at June 30, 2024 and December 31, 2023, aggregate liquidation preference of $650 at June 30, 2024 and December 31, 2023 | 650 | 650 |
Common stock; $0.01 par value; 500,000,000 shares authorized; 266,552,386 and 267,330,470 shares issued and 207,498,428 and 208,130,950 shares outstanding at June 30, 2024 and December 31, 2023, respectively | 3 | 3 |
Additional paid-in-capital | 3,229 | 3,416 |
Retained earnings | 1,863 | 820 |
Treasury stock, at cost; 59,053,958 shares and 59,199,520 shares at June 30, 2024 and December 31, 2023, respectively | (2,019) | (1,892) |
Accumulated other comprehensive loss | (103) | (91) |
Total Stockholders' Equity | 3,623 | 2,906 |
Total Liabilities and Stockholders' Equity | 25,762 | 26,038 |
Customer relationships, net | ||
Other Assets | ||
Intangible assets, net | 1,946 | 2,164 |
Other intangible assets, net | ||
Other Assets | ||
Intangible assets, net | $ 1,467 | $ 1,763 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 650,000 | 650,000 |
Preferred stock, shares outstanding (in shares) | 650,000 | 650,000 |
Preferred stock, liquidation preference | $ 650 | $ 650 |
Common stock, par or value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 266,552,386 | 267,330,470 |
Common stock, shares outstanding (in shares) | 207,498,428 | 208,130,950 |
Treasury stock, shares (in shares) | 59,053,958 | 59,199,520 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities | ||
Net Income/(Loss) | $ 1,249 | $ (1,027) |
Adjustments to reconcile net income/(loss) to cash provided/(used) by operating activities: | ||
Equity in and distributions from earnings of unconsolidated affiliates | (4) | (9) |
Depreciation and amortization | 553 | 505 |
Accretion of asset retirement obligations | 3 | 5 |
Provision for credit losses | 133 | 80 |
Amortization of nuclear fuel | 0 | 26 |
Amortization of financing costs and debt discounts | 21 | 31 |
Loss on debt extinguishment | 260 | 0 |
Amortization of in-the-money contracts and emissions allowances | 73 | 112 |
Amortization of unearned equity compensation | 57 | 61 |
Net loss/(gain) on sale of assets and disposal of assets | 8 | (187) |
Impairment losses | 15 | 0 |
Changes in derivative instruments | (1,384) | 1,515 |
Changes in current and deferred income taxes and liability for uncertain tax benefits | 390 | (282) |
Changes in collateral deposits in support of risk management activities | 660 | (1,355) |
Changes in nuclear decommissioning trust liability | 0 | 2 |
Changes in other working capital | (711) | (505) |
Cash provided/(used) by operating activities | 1,323 | (1,028) |
Cash Flows from Investing Activities | ||
Payments for acquisitions of businesses and assets, net of cash acquired | (32) | (2,498) |
Capital expenditures | (172) | (324) |
Net purchases of emissions allowances | (11) | (25) |
Investments in nuclear decommissioning trust fund securities | 0 | (185) |
Proceeds from the sale of nuclear decommissioning trust fund securities | 0 | 180 |
Proceeds from sales of assets, net of cash disposed | 11 | 229 |
Proceeds from insurance recoveries for property, plant and equipment, net | 3 | 121 |
Cash used by investing activities | (201) | (2,502) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of preferred stock, net of fees | 0 | 635 |
Payments of dividends to preferred and common stockholders | (204) | (174) |
Equivalent shares purchased in lieu of tax withholdings | (35) | (16) |
Payments for share repurchase activity | (90) | 0 |
Net (payments)/receipts from settlement of acquired derivatives that include financing elements | (12) | 318 |
Net proceeds of Revolving Credit Facility and Receivable Securitization Facilities | 0 | 500 |
Proceeds from issuance of long-term debt | 875 | 731 |
Payments of debt issuance costs | (12) | (22) |
Repayments of long-term debt and finance leases | (956) | (10) |
Payments for debt extinguishment costs | (257) | 0 |
Proceeds from credit facilities | 625 | 1,870 |
Repayments to credit facilities | (625) | (1,670) |
Cash (used)/provided by financing activities | (691) | 2,162 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 3 |
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 431 | (1,365) |
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 649 | 2,178 |
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ 1,080 | $ 813 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | |
Beginning balance at Dec. 31, 2022 | $ 3,828 | $ 4 | $ 8,457 | $ 1,408 | $ (5,864) | $ (177) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | (1,335) | (1,335) | ||||||
Issuance of Series A Preferred Stock | 636 | $ 650 | (14) | |||||
Other comprehensive (loss)/income | 1 | 1 | ||||||
Equity-based awards activity, net | [1] | 38 | 38 | |||||
Common stock dividends and dividend equivalents declared | [2] | (88) | (88) | |||||
Ending balance at Mar. 31, 2023 | 3,080 | 650 | 4 | 8,481 | (15) | (5,864) | (176) | |
Beginning balance at Dec. 31, 2022 | 3,828 | 4 | 8,457 | 1,408 | (5,864) | (177) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | (1,027) | |||||||
Other comprehensive (loss)/income | 7 | |||||||
Ending balance at Jun. 30, 2023 | 3,332 | 650 | 4 | 8,504 | 205 | (5,861) | (170) | |
Beginning balance at Dec. 31, 2022 | 3,828 | 4 | 8,457 | 1,408 | (5,864) | (177) | ||
Ending balance at Dec. 31, 2023 | 2,906 | 650 | 3 | 3,416 | 820 | (1,892) | (91) | |
Beginning balance at Mar. 31, 2023 | 3,080 | 650 | 4 | 8,481 | (15) | (5,864) | (176) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | 308 | 308 | ||||||
Issuance of Series A Preferred Stock | (1) | (1) | ||||||
Other comprehensive (loss)/income | 6 | 6 | ||||||
Shares reissuance for ESPP | 4 | 1 | 3 | |||||
Equity-based awards activity, net | [1] | 23 | 23 | |||||
Common stock dividends and dividend equivalents declared | [2] | (88) | (88) | |||||
Ending balance at Jun. 30, 2023 | 3,332 | 650 | 4 | 8,504 | 205 | (5,861) | (170) | |
Beginning balance at Dec. 31, 2023 | 2,906 | 650 | 3 | 3,416 | 820 | (1,892) | (91) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | 511 | 511 | ||||||
Other comprehensive (loss)/income | (9) | (9) | ||||||
Share repurchases | [3] | 117 | (117) | |||||
Retirement of treasury stock | [4] | (38) | 38 | |||||
Equity-based awards activity, net | [1] | 8 | 8 | |||||
Common stock dividends and dividend equivalents declared | [2] | (86) | (86) | |||||
Series A Preferred Stock semi-annual dividends | [5] | (33) | (33) | |||||
Ending balance at Mar. 31, 2024 | 3,297 | 650 | 3 | 3,503 | 1,212 | (1,971) | (100) | |
Beginning balance at Dec. 31, 2023 | 2,906 | 650 | 3 | 3,416 | 820 | (1,892) | (91) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | 1,249 | |||||||
Other comprehensive (loss)/income | (12) | |||||||
Ending balance at Jun. 30, 2024 | 3,623 | 650 | 3 | 3,229 | 1,863 | (2,019) | (103) | |
Beginning balance at Mar. 31, 2024 | 3,297 | 650 | 3 | 3,503 | 1,212 | (1,971) | (100) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | 738 | 738 | ||||||
Other comprehensive (loss)/income | (3) | (3) | ||||||
Shares reissuance for ESPP | 6 | 1 | 5 | |||||
Share repurchases | [6] | (91) | (91) | |||||
Retirement of treasury stock | [4] | (38) | 38 | |||||
Equity-based awards activity, net | [1] | 16 | 16 | |||||
Common stock dividends and dividend equivalents declared | [4] | (87) | (87) | |||||
Capped Call Options | [7] | (253) | (253) | |||||
Ending balance at Jun. 30, 2024 | $ 3,623 | $ 650 | $ 3 | $ 3,229 | $ 1,863 | $ (2,019) | $ (103) | |
[1] Includes $(12) million and $(23) million for the quarters ended June 30, and March 31, 2024, respectively, and $(8) million and $(8) million for the quarters ended June 30, and March 31, 2023, respectively, of equivalent shares purchased in lieu of tax withholding on equity compensation issuances Dividends per common share were $0.4075 for each of the quarters ended June 30 and March 31, 2024 and $0.3775 for each of the quarters ended June 30, and March 31, 2023 Represents the final settlements of the November 6, 2023 ASR agreements. See Note 9, Changes in Capital Structure for additional information For further discussion of the treasury stock retirements, see Note 9, Changes in Capital Structure Dividend per share of Series A Preferred Stock was $51.25 Includes excise tax accrued of $1 million for the three months ended June 30, 2024 For further discussion of the Capped Call Options, see Note 9, Changes in Capital Structure |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||
Shares purchased for tax withholding obligation (in shares) | (12) | (23) | (8) |
Dividends per common share (in usd per share) | $ 0.4075 | $ 0.4075 | $ 0.3775 |
Dividends per share of Series A Preferred Stock (in usd per share) | $ 51.25 | ||
Excise tax, accrued | $ 1 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation General NRG Energy, Inc., or NRG or the Company, sits at the intersection of energy and home services. NRG is a leading energy and home services company fueled by market-leading brands, proprietary technologies, and complementary sales channels. Across the United States and Canada, NRG delivers innovative, sustainable solutions, predominately under brand names such as NRG, Reliant, Direct Energy, Green Mountain Energy and Vivint, while also advocating for competitive energy markets and customer choice. The Company has a customer base that includes approximately 8 million residential consumers in addition to commercial, industrial, and wholesale customers, supported by approximately 13 GW of generation as of June 30, 2024. The Company's business is segmented as follows: • Texas, which includes all activity related to customer, plant and market operations in Texas, other than Cottonwood; • East, which includes all activity related to customer, plant and market operations in the East; • West/Services/Other, which includes the following assets and activities: (i) all activity related to customer, plant and market operations in the West and Canada, (ii) the Services businesses and (iii) activity related to the Cottonwood facility and other investments; • Vivint Smart Home; and • Corporate activities. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the SEC's regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the consolidated financial statements in the Company's 2023 Form 10-K. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Company's consolidated financial position as of June 30, 2024, and the results of operations, comprehensive income/(loss), cash flows and stockholders' equity for the three and six months ended June 30, 2024 and 2023. The Company identified an error in the previously issued condensed consolidated financial statements for the period ended June 30, 2023 related to the presentation of cash flows associated with certain borrowings and repayments related to certain credit facilities. The statement of cash flows for the period ended June 30, 2023 has been adjusted to present on a gross basis the certain borrowings from credit facilities of $1.9 billion and the related repayments of $1.7 billion. The change had no impact to the total cash used by financing activities for the period ended June 30, 2023. The Company evaluated the materiality of this error both qualitatively and quantitatively and has concluded it is immaterial to the impacted period. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Reclassifications Certain prior period amounts have been reclassified for comparative purposes. The reclassifications did not affect consolidated results of operations, net assets or consolidated cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Other Balance Sheet Information The following table presents the accumulated depreciation included in property, plant and equipment, net and accumulated amortization included in customer relationships, net and other intangible assets, net: (In millions) June 30, 2024 December 31, 2023 Property, plant and equipment accumulated depreciation $ 1,420 $ 1,295 Customer relationships and other intangible assets accumulated amortization 3,319 2,994 Credit Losses Retail trade receivables are reported on the consolidated balance sheet net of the allowance for credit losses within accounts receivables, net. Long-term receivables are recorded net of allowance for credit losses in other non-current assets on the consolidated balance sheet. The Company accrues a provision for current expected credit losses based on (i) estimates of uncollectible revenues by analyzing accounts receivable aging and current and reasonable forecasts of expected economic factors including, but not limited to, unemployment rates and weather-related events, (ii) historical collections and delinquencies, and (iii) counterparty credit ratings for commercial and industrial customers. The following table represents the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023: Three months ended June 30, Six months ended June 30, (In millions) 2024 2023 2024 2023 Beginning balance $ 140 $ 121 $ 145 $ 133 Acquired balance from Vivint Smart Home — — — 22 Provision for credit losses 58 45 133 80 Write-offs (86) (66) (178) (144) Recoveries collected 9 12 19 21 Other 6 8 8 8 Ending balance $ 127 $ 120 $ 127 $ 120 Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows: (In millions) June 30, 2024 December 31, 2023 Cash and cash equivalents $ 376 $ 541 Funds deposited by counterparties 688 84 Restricted cash 16 24 Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows $ 1,080 $ 649 Funds deposited by counterparties consist of cash held by the Company as a result of collateral posting obligations from its counterparties related to NRG's hedging program. Though some amounts are segregated into separate accounts, not all funds are contractually restricted. Based on the Company's intention, these funds are not available for the payment of general corporate obligations; however, they are available for liquidity management. Depending on market fluctuations and the settlement of the underlying contracts, the Company will refund this collateral to the counterparties pursuant to the terms and conditions of the underlying trades. Since collateral requirements fluctuate daily and the Company cannot predict if any collateral will be held for more than twelve months, the funds deposited by counterparties are classified as a current asset on the Company's balance sheet, with an offsetting liability for this cash collateral received within current liabilities. Restricted cash consists primarily of funds held to satisfy the requirements of certain agreements and funds held within the Company's projects that are restricted in their uses. Goodwill The following table represents the changes in goodwill during the six months ended June 30, 2024: (In millions) Texas East West/Services/Other Vivint Smart Home Total Balance as of December 31, 2023 $ 643 $ 721 $ 221 $ 3,494 $ 5,079 Impairment — — (15) — (15) Foreign currency translation adjustments — — (4) — (4) Balance as of June 30, 2024 $ 643 $ 721 $ 202 $ 3,494 $ 5,060 Recent Accounting Developments — Guidance Not Yet Adopted ASU 2023-07 – In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures , or ASU 2023-07. The guidance in ASU 2023-07 enhances reportable segment disclosure requirements by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. The Company plans to adopt the new guidance for the annual period ending December 31, 2024 and subsequent interim periods thereafter. The guidance will be applied retrospectively for all prior periods presented in the financial statements. ASU 2023-09 – In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures , or ASU 2023-09. The guidance in ASU 2023-09 enhances income tax disclosures by requiring disclosure of specific categories in the effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold. Further the amendments of ASU 2023-09 require certain disclosures on income tax expense and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments of ASU 2023-09 may be applied on a prospective or retrospective basis. The Company is currently evaluating the impact of adopting ASU 2023-09 on its disclosures. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Performance Obligations As of June 30, 2024, estimated future fixed fee performance obligations are $762 million for the remaining six months of fiscal year 2024, and $1.3 billion, $940 million, $588 million, $308 million and $38 million for the fiscal years 2025, 2026, 2027, 2028 and 2029, respectively. These performance obligations include Vivint Smart Home products and services, as well as cleared auction MWs in the PJM, ISO-NE, NYISO and MISO capacity auctions. The cleared auction MWs are subject to penalties for non-performance. Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers for the three and six months ended June 30, 2024 and 2023: Three months ended June 30, 2024 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue: Home (a) $ 1,766 $ 537 $ 414 $ 467 $ (8) $ 3,176 Business 926 1,824 418 — — 3,168 Total retail revenue (b) 2,692 2,361 832 467 (8) 6,344 Energy revenue (b) 16 46 51 — (3) 110 Capacity revenue (b) — 39 6 — (1) 44 Mark-to-market for economic hedging activities (c) — 65 17 — 2 84 Contract amortization — (6) (1) — — (7) Other revenue (b) 55 27 5 — (3) 84 Total revenue 2,763 2,532 910 467 (13) 6,659 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 12 19 — — 31 Less: Realized and unrealized ASC 815 revenue 8 108 32 — — 148 Total revenue from contracts with customers $ 2,755 $ 2,412 $ 859 $ 467 $ (13) $ 6,480 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ — $ 9 $ — $ — $ — $ 9 Energy revenue — 15 16 — (2) 29 Capacity revenue — 19 — — — 19 Other revenue 8 — (1) — — 7 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Three months ended June 30, 2023 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue: Home (a) $ 1,563 $ 446 $ 406 $ 444 $ — $ 2,859 Business 832 1,912 424 — — 3,168 Total retail revenue (b) 2,395 2,358 830 444 — 6,027 Energy revenue (b) 16 28 40 — (1) 83 Capacity revenue (b) — 49 — — — 49 Mark-to-market for economic hedging activities (c) — 52 23 — — 75 Contract amortization — (7) (1) — — (8) Other revenue (b) 104 23 — — (5) 122 Total revenue 2,515 2,503 892 444 (6) 6,348 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 6 7 — — 13 Less: Realized and unrealized ASC 815 revenue 14 99 7 — (1) 119 Total revenue from contracts with customers $ 2,501 $ 2,398 $ 878 $ 444 $ (5) $ 6,216 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ — $ 16 $ — $ — $ — $ 16 Energy revenue — 13 (7) — (1) 5 Capacity revenue — 17 — — — 17 Other revenue 14 1 (9) — — 6 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Six months ended June 30, 2024 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue: Home (a) $ 3,126 $ 1,239 $ 1,013 $ 935 $ (8) $ 6,305 Business 1,744 4,550 974 — — 7,268 Total retail revenue (b) 4,870 5,789 1,987 935 (8) 13,573 Energy revenue (b) 23 127 118 — (6) 262 Capacity revenue (b) — 80 8 — (2) 86 Mark-to-market for economic hedging activities (c) — 14 8 — 2 24 Contract amortization — (16) (1) — — (17) Other revenue (b) 103 53 9 — (5) 160 Total revenue 4,996 6,047 2,129 935 (19) 14,088 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 22 25 — — 47 Less: Realized and unrealized ASC 815 revenue 10 132 42 — (3) 181 Total revenue from contracts with customers $ 4,986 $ 5,893 $ 2,062 $ 935 $ (16) $ 13,860 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ — $ 19 $ — $ — $ — $ 19 Energy revenue — 58 38 — (5) 91 Capacity revenue — 41 — — — 41 Other revenue 10 — (4) — — 6 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Six months ended June 30, 2023 (In millions) Texas East West/Services/Other Vivint Smart Home (a) Corporate/Eliminations Total Retail revenue: Home (b) $ 2,799 $ 1,097 $ 1,031 $ 592 $ — $ 5,519 Business 1,554 5,277 1,040 — — 7,871 Total retail revenue (c) 4,353 6,374 2,071 592 — 13,390 Energy revenue (c) 20 102 88 — 1 211 Capacity revenue (c) — 90 1 — — 91 Mark-to-market for economic hedging activities (d) — 87 90 — (11) 166 Contract amortization — (18) (1) — — (19) Other revenue (c) 176 44 17 — (6) 231 Total revenue 4,549 6,679 2,266 592 (16) 14,070 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 5 16 — — 21 Less: Realized and unrealized ASC 815 revenue 12 212 104 — (10) 318 Total revenue from contracts with customers $ 4,537 $ 6,462 $ 2,146 $ 592 $ (6) $ 13,731 (a) Includes results of operations following the acquisition date of March 10, 2023 (b) Home includes Services (c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ — $ 43 $ — $ — $ — $ 43 Energy revenue — 60 10 — 1 71 Capacity revenue — 23 — — — 23 Other revenue 12 (1) 4 — — 15 (d) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Contract Balances The following table reflects the contract assets and liabilities included in the Company’s balance sheet as of June 30, 2024 and December 31, 2023: (In millions) June 30, 2024 December 31, 2023 Capitalized contract costs ( included in Prepayments and other current assets and Other non-current assets) $ 1,005 $ 706 Accounts receivable, net - Contracts with customers 3,346 3,395 Accounts receivable, net - Accounted for under topics other than ASC 606 44 136 Accounts receivable, net - Affiliate 12 11 Total accounts receivable, net $ 3,402 $ 3,542 Unbilled revenues (included within Accounts receivable, net - Contracts with customers) $ 1,512 $ 1,493 Deferred revenues (a) 1,685 1,634 (a) Deferred revenues from contracts with customers were approximately $1.6 billion as of both June 30, 2024 and December 31, 2023 The revenue recognized from contracts with customers during the three months ended June 30, 2024 and 2023 relating to the deferred revenue balance at the beginning of each period was $266 million and $310 million, respectively, which decreased primarily due to the timing difference of when consideration was received and when the performance obligation was transferred. The revenue recognized from contracts with customers during the six months ended June 30, 2024 and 2023 relating to the deferred revenue balance at the beginning of each period was $395 million and $168 million, respectively, which increased primarily due to the acquisition of Vivint Smart Home. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions Acquisition of Vivint Smart Home On March 10, 2023, the Company completed the acquisition of Vivint Smart Home, Inc., pursuant to the Agreement and Plan of Merger, dated as of December 6, 2022, by and among the Company, Vivint Smart Home, Inc. and Jetson Merger Sub, Inc., a wholly-owned subsidiary of the Company (“Merger Sub”) pursuant to which Merger Sub merged with and into Vivint Smart Home, Inc., with Vivint Smart Home, Inc. surviving the merger as a wholly-owned subsidiary of the Company. Dedicated to redefining the home experience with intelligent products and services, Vivint Smart Home brought approximately two million subscribers to NRG. Vivint Smart Home's single, expandable platform incorporates artificial intelligence and machine learning into its operating system and its vertically integrated business model includes hardware, software, sales, installation, customer service and technical support and professional monitoring, enabling superior subscriber experiences and a complete end-to-end smart home experience. The acquisition accelerated the realization of NRG's consumer-focused growth strategy and created a leading essential home services platform fueled by market-leading brands, unparalleled insights, proprietary technologies and complementary sales channels. NRG paid $12 per share, or approximately $2.6 billion in cash. The Company funded the acquisition using: • proceeds of $724 million from newly issued $740 million 7.000% Senior Secured First Lien Notes due 2033, net of issuance costs and discount; • proceeds of $635 million from newly issued $650 million 10.25% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, net of issuance costs; • proceeds of approximately $900 million drawn from its Revolving Credit Facility and Receivables Securitization Facilities; and • cash on hand. The acquisition has been recorded as a business combination under ASC 805, with identifiable assets and liabilities acquired recorded at their estimated Acquisition Closing Date fair value. The total consideration of $2.623 billion includes: (In millions) Vivint Smart Home, Inc. common shares outstanding as of March 10, 2023 of 216,901,639 at $12.00 per share $ 2,603 Other Vivint Smart Home, Inc. equity instruments (Cash out RSUs and PSUs, Stock Appreciation Rights, Private Placement Warrants) 6 Total Cash Consideration $ 2,609 Fair value of acquired Vivint Smart Home, Inc. equity awards attributable to pre-combination service 14 Total Consideration $ 2,623 Acquisition costs of $2 million and $38 million for the three and six months ended June 30, 2023, respectively, are included in acquisition-related transaction and integration costs in the Company's consolidated statement of operations. For additional information, refer to Note 4, Acquisitions and Dispositions, to the Company's 2023 Form 10-K. Dispositions Planned sale of Airtron On August 3, 2024, the Company entered into a definitive agreement to sell its Airtron business unit for total proceeds of $500 million, subject to standard purchase price adjustments. Airton is a leading provider of HVAC systems for residential new construction homes and was acquired as part of the Direct Energy acquisition in 2021. The transaction is subject to regulatory approval under the Hart Scott Rodino act and is expected to close by the end of 2024. Sale of Astoria On January 6, 2023, the Company closed on the sale of land and related generation assets from the Astoria site, within the East region of operations, for proceeds of $212 million, subject to transaction fees of $3 million and certain indemnifications, resulting in a $199 million gain. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For cash and cash equivalents, funds deposited by counterparties, restricted cash, accounts and other receivables, accounts payable and cash collateral paid and received in support of energy risk management activities, the carrying amounts approximate fair values because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. The estimated carrying value and fair value of the Company's long-term debt, including current portion, is as follows: June 30, 2024 December 31, 2023 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Convertible Senior Notes $ 232 $ 445 $ 575 $ 739 Other long-term debt, including current portion 10,496 10,142 10,219 9,835 Total long-term debt, including current portion (a) $ 10,728 $ 10,587 $ 10,794 $ 10,574 (a) Excludes deferred financing costs, which are recorded as a reduction to long-term debt in the Company's consolidated balance sheets The fair value of the Company's publicly-traded long-term debt, the Term Loan and Vivint Senior Secured Term Loan are based on quoted market prices and are classified as Level 2 within the fair value hierarchy. Recurring Fair Value Measurements Debt securities, equity securities and derivative assets and liabilities are carried at fair market value. The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy: June 30, 2024 Fair Value (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 25 $ — $ 25 $ — Derivative assets: Interest rate contracts 26 — 26 — Foreign exchange contracts 9 — 9 — Commodity contracts 6,110 764 5,051 295 Equity securities measured using net asset value practical expedient (classified within other non-current assets) 6 Total assets $ 6,176 $ 764 $ 5,111 $ 295 Derivative liabilities: Interest rate contracts $ 4 $ — $ 4 $ — Commodity contracts 3,944 729 3,041 174 Consumer Financing Program 151 — — 151 Total liabilities $ 4,099 $ 729 $ 3,045 $ 325 December 31, 2023 Fair Value (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 21 $ — $ 21 $ — Derivative assets: Interest rate contracts 12 — 12 — Foreign exchange contracts 5 — 5 — Commodity contracts 6,138 1,334 4,470 334 Equity securities measured using net asset value practical expedient (classified within other non-current assets) 6 Total assets $ 6,182 $ 1,334 $ 4,508 $ 334 Derivative liabilities: Interest rate contracts $ 8 $ — $ 8 $ — Foreign exchange contracts 9 — 9 — Commodity contracts 5,356 1,413 3,728 215 Consumer Financing Program 134 — — 134 Total liabilities $ 5,507 $ 1,413 $ 3,745 $ 349 The following table reconciles, for the three and six months ended June 30, 2024 and 2023, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs, for commodity derivatives: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Commodity Derivatives (a) (In millions) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Beginning balance $ 91 $ 471 $ 119 $ 505 Total gains/(losses) realized/unrealized included in earnings 4 (86) (37) (177) Purchases 31 99 31 140 Transfers into Level 3 (b) 2 414 17 438 Transfers out of Level 3 (b) (7) 7 (9) (1) Ending balance $ 121 $ 905 $ 121 $ 905 Gains/(losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of period end $ 8 $ (76) $ (29) $ (131) (a) Consists of derivative assets and liabilities, net, excluding derivatives liabilities from the Consumer Financing Program, which are presented in a separate table below (b) Transfers into/out of Level 3 within the fair value hierarchy are related to the availability of consensus pricing and external broker quotes and are valued as of the end of the reporting period. All transfers in/out of Level 3 are from/to Level 2 Realized and unrealized gains and losses included in earnings that are related to the commodity derivatives are recorded in revenues and cost of operations. The following table reconciles, for the three and six months ended June 30, 2024 and 2023, the beginning and ending balances of the contractual obligations from the Consumer Financing Program that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Consumer Financing Program (In millions) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Beginning balance $ (124) $ (111) $ (134) $ — Contractual obligations added from the acquisition of Vivint Smart Home — — — (112) New contractual obligations (43) (20) (58) (22) Settlements 22 19 43 22 Total losses included in earnings (6) (3) (2) (3) Ending balance $ (151) $ (115) $ (151) $ (115) Gains and losses that are related to the Consumer Financing Program derivative are recorded in other income, net. Derivative Fair Value Measurements The Company's contracts consist of non-exchange traded contracts valued using prices provided by external sources and exchange-traded contracts with readily available quoted market prices. Beginning in the fourth quarter of 2023 and as of June 30, 2024, the fair value of non-exchange traded contracts were primarily based on consensus pricing provided by independent pricing services. The pricing data was compiled from market makers with longer dated tenors as compared to broker quotes, enhancing reliability and increasing transparency. Prior to the fourth quarter of 2023, the Company valued derivatives based on price quotes from brokers in active markets who regularly facilitate those transactions. The remainder of the assets and liabilities represent contracts for which external sources or observable market quotes are not available. These contracts are valued based on various valuation techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of the observable market data with similar characteristics. As of June 30, 2024, contracts valued with prices provided by models and other valuation techniques made up 5% of derivative assets and 8% of derivative liabilities. NRG's significant positions classified as Level 3 include physical and financial natural gas, power, capacity contracts and RECs executed in illiquid markets, FTRs and the Consumer Financing Program. The significant unobservable inputs used in developing fair value include illiquid natural gas and power location pricing, which is derived as a basis to liquid locations. The basis spread is based on observable market data when available or derived from historic prices and forward market prices from similar observable markets when not available. Forward capacity prices are based on market information, forecasted future electricity demand and supply, past auctions and internally developed pricing models. REC prices are based on market information and internally developed pricing models. For FTRs, NRG uses the most recent auction prices to derive the fair value. The Consumer Financing Program derivatives are valued using a discounted cash flow model, with inputs consisting of available market data, such as market yield discount rates, as well as unobservable internally derived assumptions, such as collateral prepayment rates, collateral default rates and credit loss rates. The following tables quantify the significant, unobservable inputs used in developing the fair value of the Company's Level 3 positions as of June 30, 2024 and December 31, 2023: June 30, 2024 Fair Value Input/Range (In millions, except as noted) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Natural Gas Contracts $ 39 $ 14 Discounted Cash Flow Forward Market Price ($ per MMBtu) $ 0 $ 14 $ 4 Power Contracts 168 102 Discounted Cash Flow Forward Market Price ($ per MWh) 0 188 45 Capacity Contracts 15 12 Discounted Cash Flow Forward Market Price ($ per MW/Day) 21 641 215 RECs 56 15 Discounted Cash Flow Forward Market Price ($ per Certificate) 2 248 16 FTRs 17 31 Discounted Cash Flow Auction Prices ($ per MWh) (34) 17,974 0 Consumer Financing Program — 151 Discounted Cash Flow Collateral Default Rates 1.04 % 66.20 % 9.72 % Discounted Cash Flow Collateral Prepayment Rates 2.00 % 3.00 % 2.92 % Discounted Cash Flow Credit Loss Rates 4.75 % 60.00 % 13.32 % $ 295 $ 325 December 31, 2023 Fair Value Input/Range (In millions, except as noted) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Natural Gas Contracts $ 39 $ 65 Discounted Cash Flow Forward Market Price ($ per MMBtu) $ 1 $ 15 $ 3 Power Contracts 197 66 Discounted Cash Flow Forward Market Price ($ per MWh) 1 210 47 Capacity Contracts 21 33 Discounted Cash Flow Forward Market Price ($ per MW/Day) 49 658 285 RECs 58 14 Discounted Cash Flow Forward Market Price ($ per Certificate) 2 320 15 FTRs 19 37 Discounted Cash Flow Auction Prices ($ per MWh) (58) 252 0 Consumer Financing Program — 134 Discounted Cash Flow Collateral Default Rates 0.43 % 93.30 % 8.12 % Discounted Cash Flow Collateral Prepayment Rates 2.00 % 3.00 % 2.95 % Discounted Cash Flow Credit Loss Rates 6.00 % 60.00 % 12.57 % $ 334 $ 349 The following table provides sensitivity of fair value measurements to increases/(decreases) in significant, unobservable inputs as of June 30, 2024 and December 31, 2023: Significant Unobservable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Natural Gas/Power/Capacity/RECs Buy Increase/(Decrease) Higher/(Lower) Forward Market Price Natural Gas/Power/Capacity/RECs Sell Increase/(Decrease) Lower/(Higher) FTR Prices Buy Increase/(Decrease) Higher/(Lower) FTR Prices Sell Increase/(Decrease) Lower/(Higher) Collateral Default Rates n/a Increase/(Decrease) Higher/(Lower) Collateral Prepayment Rates n/a Increase/(Decrease) Lower/(Higher) Credit Loss Rates n/a Increase/(Decrease) Higher/(Lower) The fair value of each contract is discounted using a risk-free interest rate. In addition, the Company applies a credit reserve to reflect credit risk, which is calculated based on published default probabilities. As of June 30, 2024, the credit reserve resulted in a $7 million decrease primarily within cost of operations. As of December 31, 2023, the credit reserve resulted in a $18 million decrease primarily within cost of operations. Concentration of Credit Risk In addition to the credit risk discussion as disclosed in Note 2, Summary of Significant Accounting Policies , to the Company's 2023 Form 10-K, the following is a discussion of the concentration of credit risk for the Company's contractual obligations. Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. NRG is exposed to counterparty credit risk through various activities including wholesale sales, fuel purchases and retail supply arrangements, as well as retail customer credit risk through its retail load activities. Counterparty Credit Risk The Company's counterparty credit risk policies are disclosed in its 2023 Form 10-K. As of June 30, 2024, counterparty credit exposure, excluding credit exposure from RTOs, ISOs, registered commodity exchanges and certain long-term agreements, was $2.6 billion and NRG held collateral (cash and letters of credit) against those positions of $1.3 billion, resulting in a net exposure of $1.4 billion. NRG periodically receives collateral from counterparties in excess of their exposure. Collateral amounts shown include such excess while net exposure shown excludes excess collateral received. Approximately 61% of the Company's exposure before collateral is expected to roll off by the end of 2025. Counterparty credit exposure is valued through observable market quotes and discounted at a risk free interest rate. The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables. Net Exposure (a)(b) Category by Industry Sector (% of Total) Utilities, energy merchants, marketers and other 79 % Financial institutions 21 Total as of June 30, 2024 100 % Net Exposure (a)(b) Category by Counterparty Credit Quality (% of Total) Investment grade 54 % Non-investment grade/Non-Rated 46 Total as of June 30, 2024 100 % (a) Counterparty credit exposure excludes coal transportation contracts because of the unavailability of market prices (b) The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long-term contracts The Company currently has exposure to two wholesale counterparties in excess of 10% of total net exposure as of June 30, 2024. Changes in hedge positions and market prices will affect credit exposure and counterparty concentration. RTOs and ISOs The Company participates in the organized markets of CAISO, ERCOT, AESO, IESO, ISO-NE, MISO, NYISO and PJM, known as RTOs or ISOs. Trading in the majority of these markets is approved by FERC, whereas in the case of ERCOT, it is approved by the PUCT, and whereas in the case of AESO and IESO, both exist provincially with AESO primarily subject to Alberta Utilities Commission and the IESO to the Ontario Energy Board. These ISOs may include credit policies that, under certain circumstances, require that losses arising from the default of one member on spot market transactions be shared by the remaining participants. As a result, the counterparty credit risk to these markets is limited to NRG’s share of the overall market and are excluded from the above exposures. Exchange Traded Transactions The Company enters into commodity transactions on registered exchanges, notably ICE, NYMEX and Nodal. These clearinghouses act as the counterparty and transactions are subject to extensive collateral and margining requirements. As a result, these commodity transactions have limited counterparty credit risk. Long-Term Contracts Counterparty credit exposure described above excludes credit risk exposure under certain long-term contracts, primarily solar under Renewable PPAs. As external sources or observable market quotes are not always available to estimate such exposure, the Company values these contracts based on various techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of observable market data with similar characteristics. Based on these valuation techniques, as of June 30, 2024, aggregate credit risk exposure managed by NRG to these counterparties was approximately $962 million for the next five years. Retail Customer Credit Risk The Company is exposed to retail credit risk through the Company's retail electricity and gas providers as well as through Vivint Smart Home, which serve both Home and Business customers. Retail credit risk results in losses when a customer fails to pay for services rendered. The losses may result from both non-payment of customer accounts receivable and the loss of in-the-money forward value. The Company manages retail credit risk by using established credit policies, which include monitoring of the portfolio and the use of credit mitigation measures such as deposits or prepayment arrangements. As of June 30, 2024, the Company's retail customer credit exposure to Home and Business customers was diversified across many customers and various industries, as well as government entities. Current economic conditions may affect the Company’s customers’ ability to pay their bills in a timely manner or at all, which could increase customer delinquencies and may lead to an increase in credit losses. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities Energy-Related Commodities As of June 30, 2024, NRG had energy-related derivative instruments extending through 2036. The Company marks these derivatives to market through the consolidated statement of operations. NRG has executed energy-related contracts extending through 2036 that qualified for the NPNS exception and were therefore exempt from fair value accounting treatment. Interest Rate Swaps NRG is exposed to changes in interest rate through the Company's issuance of variable rate debt. To manage the Company's interest rate risk, NRG enters into interest rate swap agreements. In the first quarter of 2024, the Company entered into interest rate swaps with a total nominal value of $700 million extending through 2029 to hedge the floating rate of the Term Loans (as defined in Note 7, Long-term Debt and Finance Leases ). Additionally, as of June 30, 2024, the Company had $1.0 billion of interest rate swaps extending through 2027 to hedge the floating rate on the Vivint Term Loans (as defined in Note 7, Long-term Debt and Finance Leases ). Foreign Exchange Contracts NRG is exposed to changes in foreign currency primarily associated with the purchase of U.S. dollar denominated natural gas for its Canadian business. To manage the Company's foreign exchange risk, NRG entered into foreign exchange contracts. As of June 30, 2024, NRG had foreign exchange contracts extending through 2027. The Company marks these derivatives to market through the consolidated statement of operations. Consumer Financing Program Under the Consumer Financing Program, Vivint Smart Home pays a monthly fee to Financing Providers based on either the average daily outstanding balance of the loans or the number of outstanding loans. For certain loans, Vivint Smart Home incurs fees at the time of the loan origination and receives proceeds that are net of these fees. Vivint Smart Home also shares the liability for credit losses, depending on the credit quality of the subscriber. Due to the nature of certain provisions under the Consumer Financing Program, the Company records a derivative liability that is not designated as a hedging instrument and is adjusted to fair value, measured using the present value of the estimated future payments. Changes to the fair value are recorded through other income, net in the consolidated statement of operations. The following represent the contractual future payment obligations with the Financing Providers under the Consumer Financing Program that are components of the derivative: • Vivint Smart Home pays either a monthly fee based on the average daily outstanding balance of the loans, or the number of outstanding loans, depending on the Financing Provider; • Vivint Smart Home shares the liability for credit losses depending on the credit quality of the subscriber; and • Vivint Smart Home pays transactional fees associated with subscriber payment processing. The derivative is classified as a Level 3 instrument. The derivative positions are valued using a discounted cash flow model, with inputs consisting of available market data, such as market yield discount rates, as well as unobservable internally derived assumptions, such as collateral prepayment rates, collateral default rates and credit loss rates. In summary, the fair value represents an estimate of the present value of the cash flows Vivint Smart Home will be obligated to pay to the Financing Providers for each component of the derivative. Volumetric Underlying Derivative Transactions The following table summarizes the net notional volume buy/(sell) of NRG's open derivative transactions broken out by category, excluding those derivatives that qualified for the NPNS exception, as of June 30, 2024 and December 31, 2023. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date. Total Volume (In millions) Category Units June 30, 2024 December 31, 2023 RECs Certificates 14 12 Coal Short Ton 13 9 Natural Gas MMBtu 747 838 Power MWh 208 201 Interest Dollars 1,700 1,000 Foreign Exchange Dollars 429 548 Consumer Financing Program Dollars 1,185 1,116 Fair Value of Derivative Instruments The following table summarizes the fair value within the derivative instrument valuation on the balance sheets: Fair Value Derivative Assets Derivative Liabilities (In millions) June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Derivatives Not Designated as Cash Flow or Fair Value Hedges: Interest rate contracts - current $ 20 $ 12 $ — $ — Interest rate contracts - long-term 6 — 4 8 Foreign exchange contracts - current 6 3 — 4 Foreign exchange contracts - long-term 3 2 — 5 Commodity contracts - current 3,494 3,847 2,570 3,922 Commodity contracts - long-term 2,616 2,291 1,374 1,434 Consumer Financing Program - short-term — — 94 93 Consumer Financing Program - long-term — — 57 41 Total Derivatives Not Designated as Cash Flow or Fair Value Hedges $ 6,145 $ 6,155 $ 4,099 $ 5,507 The Company has elected to present derivative assets and liabilities on the consolidated balance sheet on a trade-by-trade basis and does not offset amounts at the counterparty master agreement level. In addition, collateral received or paid on the Company's derivative assets or liabilities are recorded on a separate line item on the consolidated balance sheet. The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid: Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) /Posted Net Amount As of June 30, 2024 Interest rate contracts: Derivative assets $ 26 $ (4) $ — $ 22 Derivative liabilities (4) 4 — — Total interest rate contracts $ 22 $ — $ — $ 22 Foreign exchange contracts: Derivative assets $ 9 $ — $ — $ 9 Commodity contracts: Derivative assets $ 6,110 $ (3,726) $ (693) $ 1,691 Derivative liabilities (3,944) 3,726 47 (171) Total commodity contracts $ 2,166 $ — $ (646) $ 1,520 Consumer Financing Program: Derivative liabilities $ (151) $ — $ — $ (151) Total derivative instruments $ 2,046 $ — $ (646) $ 1,400 Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) /Posted Net Amount As of December 31, 2023 Interest rate contracts: Derivative assets $ 12 $ (8) $ — $ 4 Derivative liabilities (8) 8 — — Total interest rate contracts $ 4 $ — $ — $ 4 Foreign exchange contracts: Derivative assets $ 5 $ (5) $ — $ — Derivative liabilities (9) 5 — (4) Total foreign exchange contracts $ (4) $ — $ — $ (4) Commodity contracts: Derivative assets $ 6,138 $ (4,926) $ (74) $ 1,138 Derivative liabilities (5,356) 4,926 145 (285) Total commodity contracts $ 782 $ — $ 71 $ 853 Consumer Financing Program: Derivative liabilities $ (134) $ — $ — $ (134) Total derivative instruments $ 648 $ — $ 71 $ 719 Impact of Derivative Instruments on the Statements of Operations Unrealized gains and losses associated with changes in the fair value of derivative instruments not accounted for as cash flow and fair value hedges are reflected in current period results of operations. The following table summarizes the pre-tax effects of economic hedges that have not been designated as cash flow hedges or fair value hedges and trading activity on the Company's consolidated statement of operations. The effect of foreign exchange and commodity hedges are included within revenues and cost of operations. The effect of the interest rate contracts are included within interest expense. The effect of the Consumer Financing Program is included in other income, net. (In millions) Three months ended June 30, Six months ended June 30, Unrealized mark-to-market results 2024 2023 2024 2023 Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges $ 209 $ (151) $ 453 $ (997) Reversal of acquired loss positions related to economic hedges 17 35 5 10 Net unrealized gains/(losses) on open positions related to economic hedges 649 180 889 (893) Total unrealized mark-to-market gains/(losses) for economic hedging activities 875 64 1,347 (1,880) Reversal of previously recognized unrealized losses on settled positions related to trading activity 4 10 — 11 Net unrealized gains on open positions related to trading activity 5 3 5 14 Total unrealized mark-to-market gains for trading activity 9 13 5 25 Total unrealized gains/(losses) - commodities and foreign exchange $ 884 $ 77 $ 1,352 $ (1,855) Three months ended June 30, Six months ended June 30, (In millions) 2024 2023 2024 2023 Total impact to statement of operations - interest rate contracts $ 6 $ 29 $ 18 $ 24 Unrealized gains included in revenues - commodities $ 93 $ 88 $ 29 $ 191 Unrealized gains/(losses) included in cost of operations - commodities 789 5 1,312 (2,032) Unrealized gains/(losses) included in cost of operations - foreign exchange 2 (16) 11 (14) Total impact to statement of operations - commodities and foreign exchange $ 884 $ 77 $ 1,352 $ (1,855) Total impact to statement of operations - Consumer Financing Program $ (6) $ (3) $ (2) $ (3) The reversals of acquired loss positions were valued based upon the forward prices on the acquisition date. The roll-off amounts were offset by realized gains or losses at the settled prices and are reflected in revenue or cost of operations during the same period. For the six months ended June 30, 2024, the $889 million unrealized gain from open economic hedge positions was primarily the result of an increase in the value of forward positions as a result of increases in ERCOT power prices. For the six months ended June 30, 2023, the $893 million unrealized loss from open economic hedge positions was primarily the result of a decrease in the value of forward positions as a result of decreases in natural gas and power prices in the East and West. Credit Risk Related Contingent Features Certain of the Company's trading agreements contain provisions that entitle the counterparty to demand that the Company post additional collateral if the counterparty determines that there has been deterioration in the Company's credit quality, generally termed “adequate assurance” under the agreements, or require the Company to post additional collateral if there were a downgrade in the Company's credit rating. The collateral potentially required for all contracts with adequate assurance clauses that are in a net liability position as of June 30, 2024 was $488 million. The Company is also party to certain marginable agreements under which it has net liability position, but the counterparty has not called for the collateral due, which was approximately $50 million as of June 30, 2024. In the event of a downgrade in the Company's credit rating and if called for by the counterparty, $7 million of additional collateral would be required for all contracts with credit rating contingent features as of June 30, 2024. See Note 5, Fair Value of Financial Instruments , for discussion regarding concentration of credit risk. |
Long-term Debt and Finance Leas
Long-term Debt and Finance Leases | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Finance Leases | Long-term Debt and Finance Leases Long-term debt and finance leases consisted of the following: (In millions, except rates) June 30, 2024 December 31, 2023 Interest rate % Recourse debt: Senior Notes, due 2027 $ 375 $ 375 6.625 Senior Notes, due 2028 821 821 5.750 Senior Notes, due 2029 733 733 5.250 Senior Notes, due 2029 500 500 3.375 Senior Notes, due 2031 1,030 1,030 3.625 Senior Notes, due 2032 480 480 3.875 Convertible Senior Notes, due 2048 (a) 232 575 2.750 Senior Secured First Lien Notes, due 2024 — 600 3.750 Senior Secured First Lien Notes, due 2025 500 500 2.000 Senior Secured First Lien Notes, due 2027 900 900 2.450 Senior Secured First Lien Notes, due 2029 500 500 4.450 Senior Secured First Lien Notes, due 2033 740 740 7.000 Term Loan, due 2031 873 — SOFR + 2.000 Tax-exempt bonds 466 466 1.250 - 4.750 Subtotal recourse debt 8,150 8,220 Non-recourse debt: Vivint Senior Notes, due 2029 800 800 5.750 Vivint Senior Secured Notes, due 2027 600 600 6.750 Vivint Senior Secured Term Loan, due 2028 1,313 1,320 SOFR + 2.750 Subtotal all Vivint non-recourse debt 2,713 2,720 Subtotal long-term debt (including current maturities) 10,863 10,940 Finance leases 21 19 various Subtotal long-term debt and finance leases (including current maturities) 10,884 10,959 Less current maturities (262) (620) Less debt issuance costs (62) (60) Discounts (135) (146) Total long-term debt and finance leases $ 10,425 $ 10,133 (a) As of the ex-dividend date of August 1, 2024, the Convertible Senior Notes were convertible at a price of $41.11, which is equivalent to a conversion rate of approximately 24.322 shares of common stock per $1,000 principal amount Recourse Debt Senior Credit Facility Term Loan B Incurrence On April 16, 2024, the Company, as borrower, and certain of its subsidiaries, as guarantors, entered into the Eighth Amendment to the Second Amended and Restated Credit Agreement (the “Eighth Amendment”) with, among others, Citicorp North America, Inc., as administrative agent (the “Agent”) and as collateral agent, and certain financial institutions, as lenders, which amended the Company’s Second Amended and Restated Credit Agreement, dated as of June 30, 2016 (as amended, restated, supplemented and/or otherwise modified from time to time prior to the effectiveness of the Eighth Amendment, the “Credit Agreement”), in order to (i) establish a new term loan B facility with borrowings of $875 million in aggregate principal amount (the “Term Loan Facility” and the loans thereunder, the “Term Loans”) and (ii) make certain other modifications to the Credit Agreement as set forth therein. The proceeds from the Term Loans were used to repay a portion of the Company’s Convertible Senior Notes, all of the Company’s 3.750% senior secured first lien notes due 2024 and for general corporate purposes. At the Company’s election, the Term Loans bear interest at a rate per annum equal to either (1) a fluctuating rate equal to the highest of (A) the rate published by the Federal Reserve Bank of New York in effect on such day, plus 0.50%, (B) the rate of interest per annum publicly announced from time to time by The Wall Street Journal as the “Prime Rate” in the United States, and (C) a rate of one-month Term SOFR (as defined in the Credit Agreement (as amended by the Eighth Amendment and the Ninth Amendment (as defined below))) (after giving effect to any floor applicable to Term SOFR), in each case, plus a margin of 1.00% or (2) Term SOFR (as defined in the Credit Agreement (as amended by the Eighth Amendment and the Ninth Amendment)) (which Term SOFR shall not be less than 0.00%) for a one-, three- or six-month interest period (or such other period as agreed to by the Agent and the lenders, as selected by the Company), plus a margin of 2.00%. The Term Loan Facility is guaranteed by each of the Company’s subsidiaries that guarantee the Revolving Credit Facility and is secured on a first lien basis by substantially all of the Company’s and such subsidiaries’ assets, in each case, subject to certain customary exceptions and limitations set forth in the Credit Agreement (as amended by the Eighth Amendment and the Ninth Amendment). The Term Loans have a final maturity date of April 16, 2031 and amortize at a rate of 1% per annum payable in equal quarterly installments. If an event of default occurs under the Term Loan Facility, the entire principal amount outstanding thereunder, together with all accrued unpaid interest and other amounts owing in respect thereof, may be declared immediately due and payable, subject, in certain instances, to the expiration of applicable cure periods. The Term Loan Facility also provides for customary asset sale mandatory prepayments, reporting covenants and negative covenants governing dividends, investments, indebtedness, and other matters that are customary for similar term loan B facilities. Revolving Credit Facility On April 22, 2024, the Company, as borrower, and certain of its subsidiaries, as guarantors, entered into the Ninth Amendment to the Second Amended and Restated Credit Agreement (the “Ninth Amendment”) to extend the maturity date of a portion of the revolving commitments thereunder to February 14, 2028. 2048 Convertible Senior Notes As of July 1, 2024, the Company's Convertible Senior Notes are convertible during the quarterly period ending September 30, 2024 due to the satisfaction of the Common Stock Sale Price Condition (as defined below). As of June 30, 2024, the Convertible Senior Notes are convertible into cash or a combination of cash and the Company’s common stock at a price of $41.32 per common share, which is the equivalent to a conversion rate of approximately 24.1998 shares of common stock per $1,000 principal amount of Convertible Senior Notes. The net carrying amounts of the Convertible Senior Notes as of June 30, 2024 and December 31, 2023 were $231 million and $572 million, respectively. The Convertible Senior Notes mature on June 1, 2048, unless earlier repurchased, redeemed or converted in accordance with their terms. The Convertible Senior notes are convertible at the option of the holders under certain circumstances. Prior to the close of business on the business day immediately preceding December 1, 2024, the Convertible Senior Notes will be convertible only upon the occurrence of certain events and during certain periods, including, among others, during any calendar quarter (and only during such calendar quarter) if the last reported sales price per share of the Company's common stock exceeds 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter (the "Common Stock Sale Price Condition"). Thereafter during specified periods as follows: • from December 1, 2024 until the close of business on the second scheduled trading day immediately before June 1, 2025; and • from December 1, 2047 until the close of business on the second scheduled trading day immediately before the maturity date. All conversions with a conversion date that occurs within the specific periods above will be settled after such period pursuant to the terms of the Convertible Senior Notes indenture. The following table details the interest expense recorded in connection with the Convertible Senior Notes: Three months ended June 30, Six months ended June 30, (In millions, except percentages) 2024 2023 2024 2023 Contractual interest expense $ 2 $ 4 $ 6 $ 8 Amortization of deferred finance costs 1 — 1 1 Total $ 3 $ 4 $ 7 $ 9 Effective Interest Rate 0.76 % 0.75 % 1.54 % 1.52 % Repurchases During the six months ended June 30, 2024, the Company completed repurchases of a portion of the Convertible Senior Notes using cash on hand and a portion of the proceeds from the Term Loans, as detailed in the table below. For the six months ended June 30, 2024, a $260 million loss on debt extinguishment was recorded. (In millions, except percentages) Settlement Period Principal Repurchased Cash Paid (a) Average Repurchase Percentage March 2024 $ 92 $ 151 162.356% April 2024 251 452 179.454% Total Repurchases $ 343 $ 603 (a) Includes accrued interest of $1 million and $2 million for the March and April repurchases, respectively Capped Call Options During the second quarter of 2024, the Company entered into privately negotiated capped call transactions with certain counterparties (the "Capped Calls") to effectively lock in a conversion premium of $257 million on the remaining $232 million of the Convertible Senior Notes. The option price of $257 million was incurred when the Company entered into the Capped Calls, which will be payable upon the earlier of settlement and expiration of the applicable Capped Calls. For further discussion see Note 9, Changes in Capital Structure . Receivables Securitization Facilities On June 21, 2024, NRG Receivables LLC (“NRG Receivables”), an indirect wholly-owned subsidiary of the Company, amended its existing Receivables Facility to, among other things, (i) extend the scheduled termination date to June 20, 2025, (ii) increase the aggregate commitments from $1.4 billion to $2.3 billion (adjusted seasonally) and (iii) add a new originator. As of June 30, 2024, there were no outstanding borrowings and there were $1.1 billion in letters of credit issued. Also on June 21, 2024, Direct Energy Services, LLC (in its capacity as additional originator, the “Additional Originator”) entered into a Joinder Agreement (the “Joinder Agreement”) to join as Additional Originator to the Receivables Sale Agreement, dated as of September 22, 2020, among Direct Energy, LP, Direct Energy Business, LLC, Green Mountain Energy Company, NRG Business Marketing, LLC, Reliant Energy Northeast LLC, Reliant Energy Retail Services, LLC, Stream SPE, Ltd., US Retailers LLC and XOOM Energy Texas, LLC, as originators, NRG Retail, as the servicer, and NRG Receivables (the “Receivables Sale Agreement”). Pursuant to the Joinder Agreement, the Additional Originator agrees to be bound by the terms of the Receivables Sale Agreement, will sell to NRG Receivables substantially all of its receivables for the sale of electricity, natural gas and/or related services and certain related rights (collectively, the “Receivables”) and in connection therewith have transferred to NRG Receivables the deposit accounts into which the proceeds of such Receivables are paid. Concurrently with the amendments to the Receivables Facility, the Company and the originators thereunder terminated the existing uncommitted Repurchase Facility. Senior Secured First Lien Note Repayment During the six months ended June 30, 2024, the Company repaid $600 million in aggregate principal amount of its 3.750% Senior Secured First Lien Notes due 2024. Non-recourse Debt Vivint Term Loan Repricing On April 10, 2024, the Company’s wholly-owned indirect subsidiary, APX Group, Inc. (“Vivint”), entered into Amendment No. 2 (the "Second Amendment") to the Second Amended and Restated Credit Agreement dated as of June 9, 2021 (the “Vivint Credit Agreement”) with, among others, Bank of America, N.A. as administrative agent (the “Vivint Agent”), and certain financial institutions, as lenders, which amended the Vivint Agreement in order to (i) reprice its term loan B facility (the term loans thereunder, the “Vivint Term Loans”) and (ii) make certain other changes to the Vivint Credit Agreement. From and after the closing of the Second Amendment, at Vivint’s election, the Vivint Term Loans will bear interest at a rate per annum equal to either (1) a fluctuating rate equal to the highest of (A) the rate published by the Federal Reserve Bank of New York in effect on such day, plus 0.50%, (B) the rate of interest per annum publicly announced from time to time by The Wall Street Journal as the “Prime Rate” in the United States, and (C) a rate of one-month Term SOFR (as defined in the Vivint Credit Agreement), (after giving effect to any floor applicable to Term SOFR) plus 1.00% in each case, plus a margin of 1.75%, or (2) Term SOFR (as defined in the Vivint Credit Agreement) (which Term SOFR shall not be less than 0.50%) for a one-, three- or six-month interest period or such other period as agreed to by the Vivint Agent and the lenders, as selected by Vivint, plus a margin of 2.75%. |
Investments Accounted for Using
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs | 6 Months Ended |
Jun. 30, 2024 | |
Variable Interest Entities Disclosure [Abstract] | |
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs | Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs Entities that are not Consolidated NRG accounts for the Company's significant investments using the equity method of accounting. NRG's carrying value of equity investments can be impacted by a number of elements including impairments and movements in foreign currency exchange rates. Variable Interest Entities that are Consolidated The Company has a controlling financial interest that has been identified as a VIE under ASC 810 in NRG Receivables LLC, which has entered into financing transactions related to the Receivables Facility as further described in Note 13, Long-term Debt and Finance Leases, to the Company’s 2023 Form 10-K. The summarized financial information for the Company's consolidated VIE consisted of the following: (In millions) June 30, 2024 December 31, 2023 Accounts receivable and Other current assets $ 2,527 $ 1,541 Current liabilities 153 153 Net assets $ 2,374 $ 1,388 |
Changes in Capital Structure
Changes in Capital Structure | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Changes in Capital Structure | Changes in Capital Structure As of June 30, 2024 and December 31, 2023, the Company had 10,000,000 shares of preferred stock authorized and 500,000,000 shares of common stock authorized. The following table reflects the changes in NRG's preferred and common stock issued and outstanding: Preferred Common Issued and Outstanding Issued Treasury Outstanding Balance as of December 31, 2023 650,000 267,330,470 (59,199,520) 208,130,950 Shares issued under LTIPs — 1,499,546 — 1,499,546 Shares issued under ESPP — — 145,562 145,562 Shares repurchased — — (2,277,630) (2,277,630) Retirement of treasury stock — (2,277,630) 2,277,630 — Balance as of June 30, 2024 650,000 266,552,386 (59,053,958) 207,498,428 Shares issued under LTIPs — 9,703 — 9,703 Shares repurchased — — (1,127,232) (1,127,232) Partial settlement of Capped Call Options — — (1,067) (1,067) Retirement of treasury stock — (955,232) 955,232 — Balance as of July 31, 2024 650,000 265,606,857 (59,227,025) 206,379,832 Common Stock Share Repurchases On June 22, 2023, NRG revised its long-term capital allocation policy to target allocating approximately 80% of cash available for allocation, after debt reduction, to be returned to shareholders. As part of the revised capital allocation framework, the Company announced an increase to its share repurchase authorization to $2.7 billion, to be executed through 2025. As of July 31, 2024, $1.4 billion is remaining under the $2.7 billion authorization. The following table summarizes the share repurchases made under the $2.7 billion authorization through July 31, 2024: Total number of shares purchased Average price paid per share Amounts paid for shares purchased (in millions) 2023 Repurchases: Open market repurchases 5,054,798 $ 39.56 $ 200 Repurchases made under the accelerated share repurchase agreements 17,676,142 (b) 950 Total Share Repurchases during 2023 22,730,940 1,150 (a) 2024 Repurchases: Repurchases made under the accelerated share repurchase agreements 1,163,230 (b) — Open market repurchases 1,114,400 $ 80.76 90 Total Share Repurchases during the six months ended June 30, 2024 2,277,630 $ 90 (c) Open market repurchases July 1, 2024 through July 31, 2024 1,127,232 $ 76.27 86 Total Share Repurchases under the $2.7 billion authorization 26,135,802 $ 50.73 $ 1,326 (a) Excludes $10 million accrued for excise tax owed as of December 31, 2023 (b) Under the November 6, 2023 ASR, the Company received a total of 18,839,372 shares for an average price per share of $50.43, excluding the impact of the excise tax incurred. See discussion below for further information of the ASR agreements (c) Excludes $1 million accrued for excise tax owed as of June 30, 2024 On November 6, 2023, the Company executed Accelerated Share Repurchase agreements to repurchase a total of $950 million of NRG's outstanding common stock based on volume-weighted average prices. The Company received 17,676,142 shares in the fourth quarter of 2023, which were recorded in treasury stock at fair value based on the closing prices of $833 million, with the remaining $117 million recorded in additional paid-in-capital, representing the value of the forward contracts to purchase additional shares. During the first quarter of 2024, the Company received an additional 1,163,230 shares pursuant to the ASR agreements. Upon receipt of the final shares, the Company transferred the $117 million from additional paid-in-capital to treasury stock. Employee Stock Purchase Plan The Company offers participation in the ESPP which allows eligible employees to elect to withhold between 1% and 10% of their eligible compensation to purchase shares of NRG common stock at the lesser of 90% of its market value on the offering date or 90% of the fair market value on the exercise date. An offering date occurs each April 1 and October 1. An exercise date occurs each September 30 and March 31. NRG Common Stock Dividends During the first quarter of 2024, NRG increased the annual dividend to $1.63 from $1.51 per share and expects to target an annual dividend growth rate of 7%-9% per share in subsequent years. A quarterly dividend of $0.4075 per share was paid on the Company's common stock during the three months ended June 30, 2024. On July 19, 2024, NRG declared a quarterly dividend on the Company's common stock of $0.4075 per share, payable on August 15, 2024 to stockholders of record as of August 1, 2024. The Company's common stock dividends are subject to available capital, market conditions, and compliance with associated laws, regulations and other contractual obligations. Retirement of Treasury Stock During 2024, the Company retired shares of treasury stock as detailed below. These retired shares are now included in NRG's pool of authorized but unissued shares. The Company's accounting policy upon the formal retirement of treasury stock is to deduct its par value from common stock and to reflect any excess of cost over par value as a deduction from additional paid-in-capital. Total number of treasury shares retired Average price per share Carrying value of treasury shares retired (in millions) Shares retired during the first quarter of 2024 1,163,230 $ 32.67 $ 38 Shares retired during the second quarter of 2024 1,114,400 33.84 38 Total shares retired during the six months ended June 30, 2024 2,277,630 $ 76 Capped Call Options During the second quarter of 2024, the Company entered into privately negotiated capped call transactions with certain counterparties (the "Capped Calls"). The Capped Calls each have a strike price of $41.32 per share, subject to certain adjustments, which correspond to the conversion price of the Convertible Senior Notes as of June 30, 2024. The Capped Calls have a cap price of $249.00 per share, subject to certain adjustments, and effectively lock in a conversion premium of $257 million on the remaining $232 million balance of the Convertible Senior Notes. The options will expire on June 1, 2025 if not exercised. The Capped Calls are separate transactions and not part of the terms of the Convertible Senior Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity. The option price of $257 million incurred in connection with the Capped Calls, of which $253 million was recorded as a reduction to additional paid-in capital and a $4 million loss was recorded to other income, net to account for the change in the value of the Capped Calls during the calculation period which began on May 31, 2024 and concluded on June 28, 2024. The option price will be payable upon the earlier of settlement and expiration of the applicable Capped Calls. Preferred Stock Series A Preferred Stock Dividends During the quarter ended March 31, 2024, the Company declared and paid a semi-annual 10.25% dividend of $51.25 per share on its outstanding Series A Preferred Stock, totaling $33 million. |
Income_(Loss) Per Share
Income/(Loss) Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Income/(Loss) Per Share | Income/(Loss) Per Share Basic income/(loss) per common share is computed by dividing net income/(loss) less cumulative dividends attributable to preferred stock by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the period are weighted for the portion of the period that they were outstanding. Diluted income/(loss) per share is computed in a manner consistent with that of basic income/(loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period when there is net income. The performance stock units and non-vested restricted stock units are not considered outstanding for purposes of computing basic income/(loss) per share. However, these instruments are included in the denominator for purposes of computing diluted income per share under the treasury stock method for periods when there is net income. The Convertible Senior Notes are convertible, under certain circumstances, into cash or a combination of cash and the Company’s common stock. The Company is including the potential share settlements, if any, in the denominator for purposes of computing diluted income per share under the if converted method for periods when there is net income. The potential shares settlements are calculated as the excess of the Company's conversion obligation over the aggregate principal amount (which will be settled in cash), divided by the average share price for the period. NRG's basic and diluted income/(loss) per share is shown in the following table: Three months ended June 30, Six months ended June 30, (In millions, except per share data) 2024 2023 2024 2023 Basic income/(loss) per share: Net income/(loss) $ 738 $ 308 $ 1,249 $ (1,027) Less: Cumulative dividends attributable to Series A Preferred Stock 17 17 34 21 Net income/(loss) available for common stockholders $ 721 $ 291 $ 1,215 $ (1,048) Weighted average number of common shares outstanding - basic 208 231 209 230 Income/(loss) per weighted average common share — basic $ 3.47 $ 1.26 $ 5.81 $ (4.56) Diluted income/(loss) per share: Net income/(loss) $ 738 $ 308 $ 1,249 $ (1,027) Less: Cumulative dividends attributable to Series A Preferred Stock 17 17 34 21 Net income/(loss) available for common stockholders $ 721 $ 291 $ 1,215 $ (1,048) Weighted average number of common shares outstanding - basic 208 231 209 230 Incremental shares attributable to the issuance of equity compensation (treasury stock method) 3 1 2 — Incremental shares attributable to the potential share settlements of the Convertible Senior Notes (if converted method) 3 — 3 — Weighted average number of common shares outstanding - dilutive 214 232 214 230 Income/(loss) per weighted average common share — diluted $ 3.37 $ 1.25 $ 5.68 $ (4.56) |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s segment structure reflects how management currently makes financial decisions and allocates resources. The Company manages its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus. Vivint Smart Home operations are reported within the Vivint Smart Home segment. NRG’s chief operating decision maker, its chief executive officer, evaluates the performance of the Company's segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, free cash flow and allocation of capital, as well as net income/(loss). The accounting policies of the segments are the same as those applied in the consolidated financial statements as disclosed in Note 2, Summary of Significant Accounting Policies , to the Company’s 2023 Form 10-K. Three months ended June 30, 2024 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate Eliminations Total Revenue $ 2,763 $ 2,532 $ 910 $ 467 $ — $ (13) $ 6,659 Depreciation and amortization 63 22 46 144 10 — 285 Impairment losses — — 15 — — — 15 Gain on sale of assets — — 5 — — — 5 Equity in earnings of unconsolidated affiliates — — 4 — — — 4 Loss on debt extinguishment — — — — (202) — (202) Income/(loss) before income taxes 966 447 (4) (31) (326) — 1,052 Net income/(loss) $ 966 $ 447 $ 2 $ (29) $ (648) $ — $ 738 Three months ended June 30, 2023 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate Eliminations Total Revenue $ 2,515 $ 2,503 $ 892 $ 444 $ — $ (6) $ 6,348 Depreciation and amortization 73 30 23 180 9 — 315 Gain on sale of assets — 3 — — — — 3 Equity in earnings of unconsolidated affiliates — — 5 — — — 5 Income/(loss) before income taxes 785 (100) (128) (23) (137) — 397 Net income/(loss) $ 785 $ (101) $ (129) $ (23) $ (224) $ — $ 308 Six months ended June 30, 2024 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate Eliminations Total Revenue $ 4,996 $ 6,047 $ 2,129 $ 935 $ — $ (19) $ 14,088 Depreciation and amortization 130 45 70 288 20 — 553 Impairment losses — — 15 — — — 15 (Loss)/ gain on sale of assets (4) — 5 — — — 1 Equity in earnings of unconsolidated affiliates — — 7 — — — 7 Loss on debt extinguishment — — — — (260) — (260) Income/(loss) before income taxes 1,315 1,027 (79) (22) (494) — 1,747 Net income/(loss) $ 1,315 $ 1,028 $ (58) $ (22) $ (1,014) $ — $ 1,249 Six months ended June 30, 2023 (In millions) Texas East West/Services/Other Vivint Smart Home (a) Corporate Eliminations Total Revenue $ 4,549 $ 6,679 $ 2,266 $ 592 $ — $ (16) $ 14,070 Depreciation and amortization 148 60 47 232 18 — 505 Gain on sale of assets — 202 — — — — 202 Equity in earnings of unconsolidated affiliates — — 10 — — — 10 Income/(loss) before income taxes 1,069 (1,502) (479) (62) (300) — (1,274) Net income/(loss) $ 1,069 $ (1,503) $ (433) $ (62) $ (98) $ — $ (1,027) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Income Tax Rate The income tax provision consisted of the following: Three months ended June 30, Six months ended June 30, (In millions, except rates) 2024 2023 2024 2023 Income/(Loss) before income taxes $ 1,052 $ 397 $ 1,747 $ (1,274) Income tax expense/(benefit) 314 89 498 (247) Effective income tax rate 29.8 % 22.4 % 28.5 % 19.4 % For the three and six months ended June 30, 2024, the effective tax rate was higher than the statutory rate of 21%, primarily due to the state tax expense and permanent differences. For the three months ended June 30, 2023, the effective tax rate was higher than the statutory rate of 21% primarily due to the state tax expense. For the six months ended June 30, 2023, the effective tax rate was lower than the statutory rate of 21%, primarily due to current state tax expense which has an inverted effect and reduces the effective tax rate when applied to year-to-date financial statement losses. As of June 30, 2024, NRG as an applicable corporation is subject to the CAMT, and has reflected the impact in its current and deferred taxes. There is no CAMT impact to NRG's effective income tax rate. The Company's CAMT liability is significantly impacted by unrealized gains and losses on derivative instruments. NRG will continue to evaluate the impact of the CAMT if further guidance is provided by the U.S. Treasury or the IRS. Uncertain Tax Benefits As of June 30, 2024, NRG had a non-current tax liability of $67 million for uncertain tax benefits from positions taken on various federal and state income tax returns inclusive of accrued interest. For the six months ended June 30, 2024, NRG accrued an immaterial amount of interest relating to the uncertain tax benefits. As of June 30, 2024, NRG had cumulative interest and penalties related to these uncertain tax benefits of $3 million. The Company recognizes interest and penalties related to uncertain tax benefits in income tax expense. NRG is subject to examination by taxing authorities for income tax returns filed in the U.S. federal jurisdiction and various state and foreign jurisdictions including operations located in Australia and Canada. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2020. With few exceptions, state and Canadian income tax examinations are no longer open for years prior to 2015. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions NRG provides services to some of its related parties, which are accounted for as equity method investments, under operations and maintenance agreements. Fees for the services under these agreements include recovery of NRG's costs of operating the plants. Certain agreements also include fees for administrative services, a base monthly fee, profit margin and/or annual incentive bonus. The following table summarizes NRG's material related party transactions with third-party affiliates: Three months ended June 30, Six months ended June 30, (In millions) 2024 2023 2024 2023 Revenues from Related Parties Included in Revenue Gladstone $ — $ — $ 1 $ 1 Ivanpah (a) 12 21 25 55 Midway-Sunset 1 1 2 2 Total $ 13 $ 22 $ 28 $ 58 (a) Also includes fees under project management agreements with each project company |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments First Lien Structure NRG has granted first liens to certain counterparties on a substantial portion of property and assets owned by NRG and the guarantors of its senior debt. NRG uses the first lien structure to reduce the amount of cash collateral and letters of credit that it would otherwise be required to post from time to time to support its obligations under out-of-the-money hedges. To the extent that the underlying hedge positions for a counterparty are out-of-the-money to NRG, the counterparty would have a claim under the first lien program. As of June 30, 2024, all hedges under the first liens were in-the-money on a counterparty aggregate basis. Contingencies The Company's material legal proceedings are described below. The Company believes that it has valid defenses to these legal proceedings and intends to defend them vigorously. NRG records accruals for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As applicable, the Company has established an adequate accrual for the applicable legal matters, including regulatory and environmental matters as further discussed in Note 15, Regulatory Matters , and Note 16, Environmental Matters . In addition, legal costs are expensed as incurred. Management has assessed each of the following matters based on current information and made a judgment concerning its potential outcome, considering the nature of the claim, the amount and nature of damages sought, and the probability of success. Unless specified below, the Company is unable to predict the outcome of these legal proceedings or reasonably estimate the scope or amount of any associated costs and potential liabilities. As additional information becomes available, management adjusts its assessment and estimates of such contingencies accordingly. Because litigation is subject to inherent uncertainties and unfavorable rulings or developments, it is possible that the ultimate resolution of the Company's liabilities and contingencies could be at amounts that are different from its currently recorded accruals and that such difference could be material. In addition to the legal proceedings noted below, NRG and its subsidiaries are party to other litigation or legal proceedings arising in the ordinary course of business. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect NRG's consolidated financial position, results of operations, or cash flows. Environmental Lawsuits Sierra club et al. v. Midwest Generation LLC — In 2012, several environmental groups filed a complaint against Midwest Generation with the Illinois Pollution Control Board ("IPCB") alleging violations of environmental law resulting in groundwater contamination. In June 2019, the IPCB found in an interim order that Midwest Generation violated the law because it had improperly handled coal ash at four facilities in Illinois and caused or allowed coal ash constituents to impact groundwater. On September 9, 2019, Midwest Generation filed a Motion to Reconsider numerous issues, which the court granted in part and denied in part on February 6, 2020. In 2023, the IPCB held hearings regarding the appropriate relief. Midwest Generation has been working with the Illinois EPA to address the groundwater issues since 2010. Consumer Lawsuits Similar to other energy service companies (“ESCOs”) operating in the industry, from time-to-time, the Company and/or its subsidiaries may be subject to consumer lawsuits in various jurisdictions where they sell natural gas and electricity. Variable Price Case Mirkin v. XOOM Energy (E.D.N.Y. Aug. 2019) — XOOM Energy is a defendant in a putative class action lawsuit pending in New York, alleging that XOOM Energy promised that consumers would pay the same or less than they would have paid if they stayed with their default utility or previous energy supplier. The Court denied XOOM's motion for summary judgment and granted class certification. The Second Circuit denied XOOM's request to appeal the class certification grants. XOOM plans to challenge Mirkin's expert testimony to further hamper Mirkin's ability to support its case. The parties held a court-ordered remediation on March 21, 2024 where the parties did not settle. The parties continue to prepare pre-trial materials for submission to the Court. A trial date has not been scheduled. The Company continues to deny the allegations and is vigorously defending this matter. This matter was known and accrued for at the time of the XOOM acquisition. Telephone Consumer Protection Act ("TCPA") Cases — In the cases set forth below, referred to as the TCPA Cases, such actions involve consumers alleging violations of the Telephone Consumer Protection Act of 1991, as amended, by receiving calls, texts or voicemails without consent in violation of the federal Telemarketing Sales Rule, and/or state counterpart legislation. The underlying claims of each case are similar. The Company denies the allegations asserted by plaintiffs and intends to vigorously defend these matters. These matters were known and accrued for at the time of the Direct Energy acquisition. There are two putative class actions pending against Direct Energy: (1) Holly Newman v. Direct Energy, LP (D. Md Sept 2021) - Direct Energy filed its Motion to Dismiss asserting the ruling in the Brittany Burk v. Direct Energy (S.D. Tex. Feb 2019) preempts the Plaintiff's ability to file suit based on the same facts. The Court denied Direct Energy's motion stating the Court does not have the benefit of all of the facts that were in front of the Burk court to issue a similar ruling. On April 12, 2023, the Court granted Direct Energy’s Motion to Transfer Venue, moving to the case to the Southern District of Texas. The parties are proceeding with written discovery; and (2) Matthew Dickson v. Direct Energy (N.D. Ohio Jan. 2018) - The case was stayed pending the outcome of an appeal to the Sixth Circuit based on the unconstitutionality of the TCPA during the period from 2015-2020. The Sixth Circuit found the TCPA was in effect during that period and remanded the case back to the trial court. Direct Energy refiled its motions along with supplements. On March 25, 2022, the Court granted summary judgment in favor of Direct Energy and dismissed the case. Dickson appealed. The Sixth Circuit found that Dickson has standing and reversed the trial court's dismissal of the case. The matter is back at the trial court. The parties conducted fact and expert discovery and submitted its motion for summary judgment in August 2024. Sales Practice Lawsuit A Vivint Smart Home competitor has made a claim against Vivint Smart Home alleging, among other things, that Vivint Smart Home's sales representatives used deceptive sales practices. This matter was known and accrued for at the time of the Vivint Smart Home acquisition. CPI Security Systems, Inc. ("CPI") v. Vivint Smart Home, Inc. (W.D.N.C. Sept. 2020) was filed in 2020 went to trial, and in February 2023, the jury issued a verdict against Vivint Smart Home, in favor of CPI for $50 million of compensatory damages and an additional $140 million of punitive damages. Vivint Smart Home has fully briefed the appeal and is awaiting a hearing date to be set. While Vivint Smart Home believes the CPI jury verdict is not legally or factually supported and intends to pursue post judgment remedies and file an appeal, there can be no assurance that such defense efforts will be successful. Patent Infringement Lawsuit SB IP Holdings LLC (“Skybell”) v. Vivint Smart Home, Inc. — On October 23, 2023, a jury in the U.S. District Court, Eastern District of Texas, Sherman Division, issued a verdict against the Company in favor of Skybell for $45 million in damages for patent infringement. The patents that were the basis for the claims made by Skybell were ruled invalid by the U.S. International Trade Commission in November 2021. In accordance with advice by legal counsel, the Company does not believe the verdict is legally supported and will pursue post-judgment and appellate remedies along with any other legal options available. This matter was known and accrued for at the time of the Vivint acquisition. Contract Dispute STP — In July 2023, the partners in STP, CPS and Austin Energy, initiated a lawsuit and filed to intervene in the license transfer application with the NRC, claiming a right of first refusal exists in relation to the proposed sale of NRG South Texas' 44% interest in STP to Constellation. The parties entered into a settlement agreement in May 2024, and the litigation was dismissed. There was no incremental impact to NRG as a result of the settlement. Winter Storm Uri Lawsuits The Company has been named in certain property damage and wrongful death claims that have been filed in connection with Winter Storm Uri in its capacity as a generator and a REP. Most of the lawsuits related to Winter Storm Uri are consolidated into a single multi-district litigation matter in Harris County District Court. NRG's REPs have since been dismissed from the multi-district litigation. As a power generator, the Company is named in various cases with claims ranging from: wrongful death; personal injury only; property damage and personal injury; property damage only; and subrogation. The First Court of Appeals conditionally granted the generators' mandamus relief, ordering the trial court to grant the generator defendants' Motion to Dismiss. The Company expected the Plaintiffs to challenge this ruling. The Company intends to vigorously defend these matters. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2024 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters Environmental regulatory matters are discussed within Note 16, Environmental Matters. NRG operates in a highly regulated industry and is subject to regulation by various federal, state and provincial agencies. As such, NRG is affected by regulatory developments at the federal, state and provincial levels and in the regions in which NRG operates. In addition, NRG is subject to the market rules, procedures, and protocols of the various ISO and RTO markets in which NRG participates. These power markets are subject to ongoing legislative and regulatory changes that may impact NRG's wholesale and retail operations. In addition to the regulatory proceedings noted below, NRG and its subsidiaries are parties to other regulatory proceedings arising in the ordinary course of business or have other regulatory exposure. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect NRG's consolidated financial position, results of operations, or cash flows. California Station Power — As the result of unfavorable final and non-appealable litigation, the Company accrued a liability associated with consumption of station power at the Company's Encina power plant facility in California after August 30, 2010. The Company has established an appropriate accrual pending potential regulatory action by San Diego Gas & Electric regarding the Company's Encina facility. New York State Public Service Commission ("NYSPSC") - Notice of Apparent Violation — The NYSPSC issued an order referred to as the Retail Reset Order in December 2019 that limited ESCO's offers for electric and natural gas to three compliant products: guaranteed savings from the utility default rate, a fixed rate commodity product that is priced at no more than 5% greater than the trailing 12-month average utility supply rate or New York-sourced renewable energy that is at least 50% greater than the prevailing New York Renewable Energy Standard for load serving entities. The order effectively limited ESCO offers to natural gas customers to only the guaranteed savings and capped fixed term compliant products because no equivalent renewable energy product exists for natural gas. NRG took action to comply with the order when it became effective April 16, 2021. On January 8, 2024, the NYSPSC notified eight of NRG's retail energy suppliers (serving both electricity and natural gas) of alleged non-compliance with New York regulatory requirements. Among other items, the notices allege that the NRG suppliers did not transition existing residential customers to one of the three compliant products authorized by the NYSPSC following the effective date of the order. NRG responded to the notices in February 2024. The outcome of this process has the potential to negatively impact the retail business in New York. |
Environmental Matters
Environmental Matters | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Matters | Environmental Matters NRG is subject to a wide range of environmental laws in the development, construction, ownership and operation of power plants. These laws generally require that governmental permits and approvals be obtained before construction and maintained during operation of power plants. The electric generation industry has been facing increasingly stringent requirements regarding air quality, GHG emissions, combustion byproducts, water use and discharge, and threatened and endangered species including four rules promulgated during the second quarter of 2024. In general, future laws are expected to require the addition of emissions controls or other environmental controls or to impose additional restrictions on the operations of the Company's facilities, which could have a material effect on the Company's consolidated financial position, results of operations, or cash flows. The Company has elected to use a $1 million disclosure threshold, as permitted, for environmental proceedings to which the government is a party. Air CPP/ACE Rules — The attention in recent years on GHG emissions has resulted in federal and state regulations. In 2019, the EPA promulgated the ACE rule, which rescinded the CPP, which had sought to broadly regulate CO 2 emissions from the power sector. The ACE rule required states that have coal-fired EGUs to develop plans to seek heat rate improvements from coal-fired EGUs. On January 19, 2021, the D.C. Circuit vacated the ACE rule (but on February 22, 2021, at the EPA's request, stayed the issuance of the portion of the mandate that would vacate the repeal of the CPP). On June 30, 2022, the U.S. Supreme Court held that the "generation shifting" approach in the CPP exceeded the powers granted to the EPA by Congress. The Court did not address the related issues of whether the EPA may adopt only measures applied at each source. On May 9, 2024, the EPA promulgated a rule that repealed the ACE rule and significantly revised the manner in which new combustion-turbine and existing steam EGU's GHG emissions will be regulated including capturing and storing/sequestering CO 2 in some instances. This rule has been challenged by numerous parties in the D.C. Circuit including 27 states with 22 states intervening in support of the rule. The EPA has stated that it will address GHG emissions from existing combustion turbines in a future rule. Cross-State Air Pollution Rule ("CSAPR") — On March 15, 2023, the EPA signed and released a prepublication version of a final rule that sought to significantly revise the CSAPR to address the good-neighbor obligations of the 2015 ozone NAAQS for 23 states after earlier having disapproved numerous state plans to address the issue. Several states, including Texas, challenged the EPA's disapproval of their state plans. On May 1, 2023, the United States Court of Appeals for the Fifth Circuit stayed the EPA's disapproval of Texas' and Louisiana's state plans, which disapprovals are a condition precedent to the EPA imposing its plan on Texas and Louisiana. Several other states are also similarly situated because of similar stays. Nonetheless, on June 5, 2023, the EPA promulgated this rule. On July 31, 2023, the EPA promulgated an interim final rule that addresses the various judicial orders that have stayed several State-Implementation-Plan disapprovals by limiting the effectiveness of certain requirements of the final rule promulgated on June 5, 2023 in Texas and several other states. On June 27, 2024, the U.S. Supreme Court stayed the final rule in the 11 states where the rule had not already been stayed. The Company cannot predict the outcome of the legal challenges to the: (i) various state disapprovals; (ii) the final rule promulgated on June 5, 2023; and (iii) the interim final rule promulgated on July 31, 2023 that seeks to address the judicial orders. Regional Haze Proposal — In May 2023, the EPA proposed to withdraw the existing Texas Sulfur Dioxide Trading Program and replace it with unit-specific SO 2 limits for 12 units in Texas to address requirements to improve visibility at National Parks and Wilderness areas. If finalized as proposed, it would result in more stringent SO 2 limits for two of the Company's coal-fired units in Texas. The Company cannot predict the outcome of this proposal. Mercury and Air Toxics Standards (“MATS”) — On May 7, 2024, the EPA promulgated a final rule that amends the MATS rule by, among other things, increasing the stringency of the filterable particulate matter standard at coal-burning units. The deadline for complying with this more stringent standard is 2027. Twenty three states have challenged this rule in the D.C. Circuit. Accordingly, the outcome of this rulemaking may be uncertain for several years. Water ELG — In 2015, the EPA revised the ELG for Steam Electric Generating Facilities, which imposed more stringent requirements (as individual permits were renewed) for wastewater streams from FGD, fly ash, bottom ash and flue gas mercury control. On September 18, 2017, the EPA promulgated a final rule that, among other things, postponed the compliance dates to preserve the status quo for FGD wastewater and bottom ash transport water by two years to November 2020 until the EPA amended the rule. On October 13, 2020, the EPA amended the 2015 ELG rule by: (i) altering the stringency of certain limits for FGD wastewater; (ii) relaxing the zero-discharge requirement for bottom ash transport water; and (iii) changing several deadlines. In 2021, NRG informed its regulators that the Company intends to comply with the ELG by ceasing combustion of coal by the end of 2028 at its domestic coal units outside of Texas, and installing appropriate controls by the end of 2025 at its two plants that have coal-fired units in Texas. On May 9, 2024, the EPA promulgated a rule that revises the ELG by, among other things, further restricting the discharge of (i) FGD wastewater, (ii) bottom ash transport water, and (iii) combustion residual leachate. The rule was challenged in numerous courts, but the cases have been consolidated in the Eighth Circuit of the United States Court of Appeals. The Company expects that the outcome of the legal challenges will be uncertain for several years. Byproducts |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 738 | $ 308 | $ 1,249 | $ (1,027) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Name Title Date Adopted Character of Trading Arrangement Aggregate Number of Shares of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement (a) Duration Date Terminated Rasesh Patel President, NRG Consumer 5/28/2024 Rule 10b5-1 Trading Arrangement Up to 102,603 shares to be Sold 9/13/2024-5/30/2025 N/A (a) Potential sales may be subject to certain price limitations set forth in the 10b5-1 plans and therefore actual number of shares sold could vary if certain minimum stock prices are not met | |
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Expiration Date | 5/30/2025 | |
Rasesh Patel [Member] | ||
Trading Arrangements, by Individual | ||
Name | Rasesh Patel | |
Title | President, NRG Consumer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 5/28/2024 | |
Arrangement Duration | 259 days | |
Aggregate Available | 102,603 | 102,603 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates |
Reclassifications | Reclassifications |
Credit Losses | Credit Losses Retail trade receivables are reported on the consolidated balance sheet net of the allowance for credit losses within accounts receivables, net. Long-term receivables are recorded net of allowance for credit losses in other non-current assets on the consolidated balance sheet. The Company accrues a provision for current expected credit losses based on (i) estimates of uncollectible revenues by analyzing accounts receivable aging and current and reasonable forecasts of expected economic factors including, but not limited to, unemployment rates and weather-related events, (ii) historical collections and delinquencies, and (iii) counterparty credit ratings for commercial and industrial customers. |
Funds Deposited by Counterparties and Restricted Cash | Funds deposited by counterparties consist of cash held by the Company as a result of collateral posting obligations from its counterparties related to NRG's hedging program. Though some amounts are segregated into separate accounts, not all funds are contractually restricted. Based on the Company's intention, these funds are not available for the payment of general corporate obligations; however, they are available for liquidity management. Depending on market fluctuations and the settlement of the underlying contracts, the Company will refund this collateral to the counterparties pursuant to the terms and conditions of the underlying trades. Since collateral requirements fluctuate daily and the Company cannot predict if any collateral will be held for more than twelve months, the funds deposited by counterparties are classified as a current asset on the Company's balance sheet, with an offsetting liability for this cash collateral received within current liabilities. Restricted cash consists primarily of funds held to satisfy the requirements of certain agreements and funds held within the Company's projects that are restricted in their uses. |
Recent Accounting Developments - Guidance Not Yet Adopted | Recent Accounting Developments — Guidance Not Yet Adopted ASU 2023-07 – In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures , or ASU 2023-07. The guidance in ASU 2023-07 enhances reportable segment disclosure requirements by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. The Company plans to adopt the new guidance for the annual period ending December 31, 2024 and subsequent interim periods thereafter. The guidance will be applied retrospectively for all prior periods presented in the financial statements. ASU 2023-09 – In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures , or ASU 2023-09. The guidance in ASU 2023-09 enhances income tax disclosures by requiring disclosure of specific categories in the effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold. Further the amendments of ASU 2023-09 require certain disclosures on income tax expense and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments of ASU 2023-09 may be applied on a prospective or retrospective basis. The Company is currently evaluating the impact of adopting ASU 2023-09 on its disclosures. |
Segment Reporting | The Company’s segment structure reflects how management currently makes financial decisions and allocates resources. The Company manages its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus. Vivint Smart Home operations are reported within the Vivint Smart Home segment. NRG’s chief operating decision maker, its chief executive officer, evaluates the performance of the Company's segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, free cash flow and allocation of capital, as well as net income/(loss). The accounting policies of the segments are the same as those applied in the consolidated financial statements as disclosed in Note 2, Summary of Significant Accounting Policies , to the Company’s 2023 Form 10-K. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Other Balance Sheet Information | The following table presents the accumulated depreciation included in property, plant and equipment, net and accumulated amortization included in customer relationships, net and other intangible assets, net: (In millions) June 30, 2024 December 31, 2023 Property, plant and equipment accumulated depreciation $ 1,420 $ 1,295 Customer relationships and other intangible assets accumulated amortization 3,319 2,994 |
Activity in Allowance for Credit Losses | The following table represents the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023: Three months ended June 30, Six months ended June 30, (In millions) 2024 2023 2024 2023 Beginning balance $ 140 $ 121 $ 145 $ 133 Acquired balance from Vivint Smart Home — — — 22 Provision for credit losses 58 45 133 80 Write-offs (86) (66) (178) (144) Recoveries collected 9 12 19 21 Other 6 8 8 8 Ending balance $ 127 $ 120 $ 127 $ 120 |
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties | The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows: (In millions) June 30, 2024 December 31, 2023 Cash and cash equivalents $ 376 $ 541 Funds deposited by counterparties 688 84 Restricted cash 16 24 Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows $ 1,080 $ 649 |
Schedule of Goodwill | The following table represents the changes in goodwill during the six months ended June 30, 2024: (In millions) Texas East West/Services/Other Vivint Smart Home Total Balance as of December 31, 2023 $ 643 $ 721 $ 221 $ 3,494 $ 5,079 Impairment — — (15) — (15) Foreign currency translation adjustments — — (4) — (4) Balance as of June 30, 2024 $ 643 $ 721 $ 202 $ 3,494 $ 5,060 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customer | Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers for the three and six months ended June 30, 2024 and 2023: Three months ended June 30, 2024 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue: Home (a) $ 1,766 $ 537 $ 414 $ 467 $ (8) $ 3,176 Business 926 1,824 418 — — 3,168 Total retail revenue (b) 2,692 2,361 832 467 (8) 6,344 Energy revenue (b) 16 46 51 — (3) 110 Capacity revenue (b) — 39 6 — (1) 44 Mark-to-market for economic hedging activities (c) — 65 17 — 2 84 Contract amortization — (6) (1) — — (7) Other revenue (b) 55 27 5 — (3) 84 Total revenue 2,763 2,532 910 467 (13) 6,659 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 12 19 — — 31 Less: Realized and unrealized ASC 815 revenue 8 108 32 — — 148 Total revenue from contracts with customers $ 2,755 $ 2,412 $ 859 $ 467 $ (13) $ 6,480 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ — $ 9 $ — $ — $ — $ 9 Energy revenue — 15 16 — (2) 29 Capacity revenue — 19 — — — 19 Other revenue 8 — (1) — — 7 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Three months ended June 30, 2023 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue: Home (a) $ 1,563 $ 446 $ 406 $ 444 $ — $ 2,859 Business 832 1,912 424 — — 3,168 Total retail revenue (b) 2,395 2,358 830 444 — 6,027 Energy revenue (b) 16 28 40 — (1) 83 Capacity revenue (b) — 49 — — — 49 Mark-to-market for economic hedging activities (c) — 52 23 — — 75 Contract amortization — (7) (1) — — (8) Other revenue (b) 104 23 — — (5) 122 Total revenue 2,515 2,503 892 444 (6) 6,348 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 6 7 — — 13 Less: Realized and unrealized ASC 815 revenue 14 99 7 — (1) 119 Total revenue from contracts with customers $ 2,501 $ 2,398 $ 878 $ 444 $ (5) $ 6,216 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ — $ 16 $ — $ — $ — $ 16 Energy revenue — 13 (7) — (1) 5 Capacity revenue — 17 — — — 17 Other revenue 14 1 (9) — — 6 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Six months ended June 30, 2024 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue: Home (a) $ 3,126 $ 1,239 $ 1,013 $ 935 $ (8) $ 6,305 Business 1,744 4,550 974 — — 7,268 Total retail revenue (b) 4,870 5,789 1,987 935 (8) 13,573 Energy revenue (b) 23 127 118 — (6) 262 Capacity revenue (b) — 80 8 — (2) 86 Mark-to-market for economic hedging activities (c) — 14 8 — 2 24 Contract amortization — (16) (1) — — (17) Other revenue (b) 103 53 9 — (5) 160 Total revenue 4,996 6,047 2,129 935 (19) 14,088 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 22 25 — — 47 Less: Realized and unrealized ASC 815 revenue 10 132 42 — (3) 181 Total revenue from contracts with customers $ 4,986 $ 5,893 $ 2,062 $ 935 $ (16) $ 13,860 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ — $ 19 $ — $ — $ — $ 19 Energy revenue — 58 38 — (5) 91 Capacity revenue — 41 — — — 41 Other revenue 10 — (4) — — 6 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Six months ended June 30, 2023 (In millions) Texas East West/Services/Other Vivint Smart Home (a) Corporate/Eliminations Total Retail revenue: Home (b) $ 2,799 $ 1,097 $ 1,031 $ 592 $ — $ 5,519 Business 1,554 5,277 1,040 — — 7,871 Total retail revenue (c) 4,353 6,374 2,071 592 — 13,390 Energy revenue (c) 20 102 88 — 1 211 Capacity revenue (c) — 90 1 — — 91 Mark-to-market for economic hedging activities (d) — 87 90 — (11) 166 Contract amortization — (18) (1) — — (19) Other revenue (c) 176 44 17 — (6) 231 Total revenue 4,549 6,679 2,266 592 (16) 14,070 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 5 16 — — 21 Less: Realized and unrealized ASC 815 revenue 12 212 104 — (10) 318 Total revenue from contracts with customers $ 4,537 $ 6,462 $ 2,146 $ 592 $ (6) $ 13,731 (a) Includes results of operations following the acquisition date of March 10, 2023 (b) Home includes Services (c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Vivint Smart Home Corporate/Eliminations Total Retail revenue $ — $ 43 $ — $ — $ — $ 43 Energy revenue — 60 10 — 1 71 Capacity revenue — 23 — — — 23 Other revenue 12 (1) 4 — — 15 (d) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 |
Contract Asset and Liabilities | The following table reflects the contract assets and liabilities included in the Company’s balance sheet as of June 30, 2024 and December 31, 2023: (In millions) June 30, 2024 December 31, 2023 Capitalized contract costs ( included in Prepayments and other current assets and Other non-current assets) $ 1,005 $ 706 Accounts receivable, net - Contracts with customers 3,346 3,395 Accounts receivable, net - Accounted for under topics other than ASC 606 44 136 Accounts receivable, net - Affiliate 12 11 Total accounts receivable, net $ 3,402 $ 3,542 Unbilled revenues (included within Accounts receivable, net - Contracts with customers) $ 1,512 $ 1,493 Deferred revenues (a) 1,685 1,634 (a) Deferred revenues from contracts with customers were approximately $1.6 billion as of both June 30, 2024 and December 31, 2023 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Total Consideration | The total consideration of $2.623 billion includes: (In millions) Vivint Smart Home, Inc. common shares outstanding as of March 10, 2023 of 216,901,639 at $12.00 per share $ 2,603 Other Vivint Smart Home, Inc. equity instruments (Cash out RSUs and PSUs, Stock Appreciation Rights, Private Placement Warrants) 6 Total Cash Consideration $ 2,609 Fair value of acquired Vivint Smart Home, Inc. equity awards attributable to pre-combination service 14 Total Consideration $ 2,623 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value | The estimated carrying value and fair value of the Company's long-term debt, including current portion, is as follows: June 30, 2024 December 31, 2023 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Convertible Senior Notes $ 232 $ 445 $ 575 $ 739 Other long-term debt, including current portion 10,496 10,142 10,219 9,835 Total long-term debt, including current portion (a) $ 10,728 $ 10,587 $ 10,794 $ 10,574 (a) Excludes deferred financing costs, which are recorded as a reduction to long-term debt in the Company's consolidated balance sheets |
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy: June 30, 2024 Fair Value (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 25 $ — $ 25 $ — Derivative assets: Interest rate contracts 26 — 26 — Foreign exchange contracts 9 — 9 — Commodity contracts 6,110 764 5,051 295 Equity securities measured using net asset value practical expedient (classified within other non-current assets) 6 Total assets $ 6,176 $ 764 $ 5,111 $ 295 Derivative liabilities: Interest rate contracts $ 4 $ — $ 4 $ — Commodity contracts 3,944 729 3,041 174 Consumer Financing Program 151 — — 151 Total liabilities $ 4,099 $ 729 $ 3,045 $ 325 December 31, 2023 Fair Value (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 21 $ — $ 21 $ — Derivative assets: Interest rate contracts 12 — 12 — Foreign exchange contracts 5 — 5 — Commodity contracts 6,138 1,334 4,470 334 Equity securities measured using net asset value practical expedient (classified within other non-current assets) 6 Total assets $ 6,182 $ 1,334 $ 4,508 $ 334 Derivative liabilities: Interest rate contracts $ 8 $ — $ 8 $ — Foreign exchange contracts 9 — 9 — Commodity contracts 5,356 1,413 3,728 215 Consumer Financing Program 134 — — 134 Total liabilities $ 5,507 $ 1,413 $ 3,745 $ 349 |
Reconciliation of beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs | The following table reconciles, for the three and six months ended June 30, 2024 and 2023, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs, for commodity derivatives: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Commodity Derivatives (a) (In millions) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Beginning balance $ 91 $ 471 $ 119 $ 505 Total gains/(losses) realized/unrealized included in earnings 4 (86) (37) (177) Purchases 31 99 31 140 Transfers into Level 3 (b) 2 414 17 438 Transfers out of Level 3 (b) (7) 7 (9) (1) Ending balance $ 121 $ 905 $ 121 $ 905 Gains/(losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of period end $ 8 $ (76) $ (29) $ (131) (a) Consists of derivative assets and liabilities, net, excluding derivatives liabilities from the Consumer Financing Program, which are presented in a separate table below (b) Transfers into/out of Level 3 within the fair value hierarchy are related to the availability of consensus pricing and external broker quotes and are valued as of the end of the reporting period. All transfers in/out of Level 3 are from/to Level 2 |
Reconciliation of contractual obligations of Consumer Financing Program recognized at fair value | The following table reconciles, for the three and six months ended June 30, 2024 and 2023, the beginning and ending balances of the contractual obligations from the Consumer Financing Program that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Consumer Financing Program (In millions) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Beginning balance $ (124) $ (111) $ (134) $ — Contractual obligations added from the acquisition of Vivint Smart Home — — — (112) New contractual obligations (43) (20) (58) (22) Settlements 22 19 43 22 Total losses included in earnings (6) (3) (2) (3) Ending balance $ (151) $ (115) $ (151) $ (115) |
Significant unobservable inputs used developing fair values, Quantitative Information | The following tables quantify the significant, unobservable inputs used in developing the fair value of the Company's Level 3 positions as of June 30, 2024 and December 31, 2023: June 30, 2024 Fair Value Input/Range (In millions, except as noted) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Natural Gas Contracts $ 39 $ 14 Discounted Cash Flow Forward Market Price ($ per MMBtu) $ 0 $ 14 $ 4 Power Contracts 168 102 Discounted Cash Flow Forward Market Price ($ per MWh) 0 188 45 Capacity Contracts 15 12 Discounted Cash Flow Forward Market Price ($ per MW/Day) 21 641 215 RECs 56 15 Discounted Cash Flow Forward Market Price ($ per Certificate) 2 248 16 FTRs 17 31 Discounted Cash Flow Auction Prices ($ per MWh) (34) 17,974 0 Consumer Financing Program — 151 Discounted Cash Flow Collateral Default Rates 1.04 % 66.20 % 9.72 % Discounted Cash Flow Collateral Prepayment Rates 2.00 % 3.00 % 2.92 % Discounted Cash Flow Credit Loss Rates 4.75 % 60.00 % 13.32 % $ 295 $ 325 December 31, 2023 Fair Value Input/Range (In millions, except as noted) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Natural Gas Contracts $ 39 $ 65 Discounted Cash Flow Forward Market Price ($ per MMBtu) $ 1 $ 15 $ 3 Power Contracts 197 66 Discounted Cash Flow Forward Market Price ($ per MWh) 1 210 47 Capacity Contracts 21 33 Discounted Cash Flow Forward Market Price ($ per MW/Day) 49 658 285 RECs 58 14 Discounted Cash Flow Forward Market Price ($ per Certificate) 2 320 15 FTRs 19 37 Discounted Cash Flow Auction Prices ($ per MWh) (58) 252 0 Consumer Financing Program — 134 Discounted Cash Flow Collateral Default Rates 0.43 % 93.30 % 8.12 % Discounted Cash Flow Collateral Prepayment Rates 2.00 % 3.00 % 2.95 % Discounted Cash Flow Credit Loss Rates 6.00 % 60.00 % 12.57 % $ 334 $ 349 |
Fair value inputs, sensitivity analysis | The following table provides sensitivity of fair value measurements to increases/(decreases) in significant, unobservable inputs as of June 30, 2024 and December 31, 2023: Significant Unobservable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Natural Gas/Power/Capacity/RECs Buy Increase/(Decrease) Higher/(Lower) Forward Market Price Natural Gas/Power/Capacity/RECs Sell Increase/(Decrease) Lower/(Higher) FTR Prices Buy Increase/(Decrease) Higher/(Lower) FTR Prices Sell Increase/(Decrease) Lower/(Higher) Collateral Default Rates n/a Increase/(Decrease) Higher/(Lower) Collateral Prepayment Rates n/a Increase/(Decrease) Lower/(Higher) Credit Loss Rates n/a Increase/(Decrease) Higher/(Lower) |
Net counterparty credit exposure by industry sector and by counterparty credit quality | The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables. Net Exposure (a)(b) Category by Industry Sector (% of Total) Utilities, energy merchants, marketers and other 79 % Financial institutions 21 Total as of June 30, 2024 100 % Net Exposure (a)(b) Category by Counterparty Credit Quality (% of Total) Investment grade 54 % Non-investment grade/Non-Rated 46 Total as of June 30, 2024 100 % (a) Counterparty credit exposure excludes coal transportation contracts because of the unavailability of market prices (b) The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long-term contracts |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net notional volume buy/(sell) of NRG's open derivative transactions broken out by commodity | The following table summarizes the net notional volume buy/(sell) of NRG's open derivative transactions broken out by category, excluding those derivatives that qualified for the NPNS exception, as of June 30, 2024 and December 31, 2023. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date. Total Volume (In millions) Category Units June 30, 2024 December 31, 2023 RECs Certificates 14 12 Coal Short Ton 13 9 Natural Gas MMBtu 747 838 Power MWh 208 201 Interest Dollars 1,700 1,000 Foreign Exchange Dollars 429 548 Consumer Financing Program Dollars 1,185 1,116 |
Fair value within the derivative instrument valuation on the balance sheets | The following table summarizes the fair value within the derivative instrument valuation on the balance sheets: Fair Value Derivative Assets Derivative Liabilities (In millions) June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Derivatives Not Designated as Cash Flow or Fair Value Hedges: Interest rate contracts - current $ 20 $ 12 $ — $ — Interest rate contracts - long-term 6 — 4 8 Foreign exchange contracts - current 6 3 — 4 Foreign exchange contracts - long-term 3 2 — 5 Commodity contracts - current 3,494 3,847 2,570 3,922 Commodity contracts - long-term 2,616 2,291 1,374 1,434 Consumer Financing Program - short-term — — 94 93 Consumer Financing Program - long-term — — 57 41 Total Derivatives Not Designated as Cash Flow or Fair Value Hedges $ 6,145 $ 6,155 $ 4,099 $ 5,507 |
Offsetting of derivatives by counterparty assets | The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid: Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) /Posted Net Amount As of June 30, 2024 Interest rate contracts: Derivative assets $ 26 $ (4) $ — $ 22 Derivative liabilities (4) 4 — — Total interest rate contracts $ 22 $ — $ — $ 22 Foreign exchange contracts: Derivative assets $ 9 $ — $ — $ 9 Commodity contracts: Derivative assets $ 6,110 $ (3,726) $ (693) $ 1,691 Derivative liabilities (3,944) 3,726 47 (171) Total commodity contracts $ 2,166 $ — $ (646) $ 1,520 Consumer Financing Program: Derivative liabilities $ (151) $ — $ — $ (151) Total derivative instruments $ 2,046 $ — $ (646) $ 1,400 Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) /Posted Net Amount As of December 31, 2023 Interest rate contracts: Derivative assets $ 12 $ (8) $ — $ 4 Derivative liabilities (8) 8 — — Total interest rate contracts $ 4 $ — $ — $ 4 Foreign exchange contracts: Derivative assets $ 5 $ (5) $ — $ — Derivative liabilities (9) 5 — (4) Total foreign exchange contracts $ (4) $ — $ — $ (4) Commodity contracts: Derivative assets $ 6,138 $ (4,926) $ (74) $ 1,138 Derivative liabilities (5,356) 4,926 145 (285) Total commodity contracts $ 782 $ — $ 71 $ 853 Consumer Financing Program: Derivative liabilities $ (134) $ — $ — $ (134) Total derivative instruments $ 648 $ — $ 71 $ 719 |
Offsetting of derivatives by counterparty, liabilities | The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid: Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) /Posted Net Amount As of June 30, 2024 Interest rate contracts: Derivative assets $ 26 $ (4) $ — $ 22 Derivative liabilities (4) 4 — — Total interest rate contracts $ 22 $ — $ — $ 22 Foreign exchange contracts: Derivative assets $ 9 $ — $ — $ 9 Commodity contracts: Derivative assets $ 6,110 $ (3,726) $ (693) $ 1,691 Derivative liabilities (3,944) 3,726 47 (171) Total commodity contracts $ 2,166 $ — $ (646) $ 1,520 Consumer Financing Program: Derivative liabilities $ (151) $ — $ — $ (151) Total derivative instruments $ 2,046 $ — $ (646) $ 1,400 Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) /Posted Net Amount As of December 31, 2023 Interest rate contracts: Derivative assets $ 12 $ (8) $ — $ 4 Derivative liabilities (8) 8 — — Total interest rate contracts $ 4 $ — $ — $ 4 Foreign exchange contracts: Derivative assets $ 5 $ (5) $ — $ — Derivative liabilities (9) 5 — (4) Total foreign exchange contracts $ (4) $ — $ — $ (4) Commodity contracts: Derivative assets $ 6,138 $ (4,926) $ (74) $ 1,138 Derivative liabilities (5,356) 4,926 145 (285) Total commodity contracts $ 782 $ — $ 71 $ 853 Consumer Financing Program: Derivative liabilities $ (134) $ — $ — $ (134) Total derivative instruments $ 648 $ — $ 71 $ 719 |
Pre-tax effects of economic hedges that have not been designated as cash flow hedges, ineffectiveness on cash flow hedges and trading activity on the Company's statement of operations | The following table summarizes the pre-tax effects of economic hedges that have not been designated as cash flow hedges or fair value hedges and trading activity on the Company's consolidated statement of operations. The effect of foreign exchange and commodity hedges are included within revenues and cost of operations. The effect of the interest rate contracts are included within interest expense. The effect of the Consumer Financing Program is included in other income, net. (In millions) Three months ended June 30, Six months ended June 30, Unrealized mark-to-market results 2024 2023 2024 2023 Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges $ 209 $ (151) $ 453 $ (997) Reversal of acquired loss positions related to economic hedges 17 35 5 10 Net unrealized gains/(losses) on open positions related to economic hedges 649 180 889 (893) Total unrealized mark-to-market gains/(losses) for economic hedging activities 875 64 1,347 (1,880) Reversal of previously recognized unrealized losses on settled positions related to trading activity 4 10 — 11 Net unrealized gains on open positions related to trading activity 5 3 5 14 Total unrealized mark-to-market gains for trading activity 9 13 5 25 Total unrealized gains/(losses) - commodities and foreign exchange $ 884 $ 77 $ 1,352 $ (1,855) Three months ended June 30, Six months ended June 30, (In millions) 2024 2023 2024 2023 Total impact to statement of operations - interest rate contracts $ 6 $ 29 $ 18 $ 24 Unrealized gains included in revenues - commodities $ 93 $ 88 $ 29 $ 191 Unrealized gains/(losses) included in cost of operations - commodities 789 5 1,312 (2,032) Unrealized gains/(losses) included in cost of operations - foreign exchange 2 (16) 11 (14) Total impact to statement of operations - commodities and foreign exchange $ 884 $ 77 $ 1,352 $ (1,855) Total impact to statement of operations - Consumer Financing Program $ (6) $ (3) $ (2) $ (3) |
Long-term Debt and Finance Le_2
Long-term Debt and Finance Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Finance Leases | Long-term debt and finance leases consisted of the following: (In millions, except rates) June 30, 2024 December 31, 2023 Interest rate % Recourse debt: Senior Notes, due 2027 $ 375 $ 375 6.625 Senior Notes, due 2028 821 821 5.750 Senior Notes, due 2029 733 733 5.250 Senior Notes, due 2029 500 500 3.375 Senior Notes, due 2031 1,030 1,030 3.625 Senior Notes, due 2032 480 480 3.875 Convertible Senior Notes, due 2048 (a) 232 575 2.750 Senior Secured First Lien Notes, due 2024 — 600 3.750 Senior Secured First Lien Notes, due 2025 500 500 2.000 Senior Secured First Lien Notes, due 2027 900 900 2.450 Senior Secured First Lien Notes, due 2029 500 500 4.450 Senior Secured First Lien Notes, due 2033 740 740 7.000 Term Loan, due 2031 873 — SOFR + 2.000 Tax-exempt bonds 466 466 1.250 - 4.750 Subtotal recourse debt 8,150 8,220 Non-recourse debt: Vivint Senior Notes, due 2029 800 800 5.750 Vivint Senior Secured Notes, due 2027 600 600 6.750 Vivint Senior Secured Term Loan, due 2028 1,313 1,320 SOFR + 2.750 Subtotal all Vivint non-recourse debt 2,713 2,720 Subtotal long-term debt (including current maturities) 10,863 10,940 Finance leases 21 19 various Subtotal long-term debt and finance leases (including current maturities) 10,884 10,959 Less current maturities (262) (620) Less debt issuance costs (62) (60) Discounts (135) (146) Total long-term debt and finance leases $ 10,425 $ 10,133 (a) As of the ex-dividend date of August 1, 2024, the Convertible Senior Notes were convertible at a price of $41.11, which is equivalent to a conversion rate of approximately 24.322 shares of common stock per $1,000 principal amount |
Schedule of Extinguishment of Debt | For the six months ended June 30, 2024, a $260 million loss on debt extinguishment was recorded. (In millions, except percentages) Settlement Period Principal Repurchased Cash Paid (a) Average Repurchase Percentage March 2024 $ 92 $ 151 162.356% April 2024 251 452 179.454% Total Repurchases $ 343 $ 603 (a) Includes accrued interest of $1 million and $2 million for the March and April repurchases, respectively |
Schedule of Debt Instrument, Interest Expense | The following table details the interest expense recorded in connection with the Convertible Senior Notes: Three months ended June 30, Six months ended June 30, (In millions, except percentages) 2024 2023 2024 2023 Contractual interest expense $ 2 $ 4 $ 6 $ 8 Amortization of deferred finance costs 1 — 1 1 Total $ 3 $ 4 $ 7 $ 9 Effective Interest Rate 0.76 % 0.75 % 1.54 % 1.52 % |
Investments Accounted for Usi_2
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Variable Interest Entities Disclosure [Abstract] | |
Financial Information for Consolidated VIEs | The summarized financial information for the Company's consolidated VIE consisted of the following: (In millions) June 30, 2024 December 31, 2023 Accounts receivable and Other current assets $ 2,527 $ 1,541 Current liabilities 153 153 Net assets $ 2,374 $ 1,388 |
Changes in Capital Structure (T
Changes in Capital Structure (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Changes in NRG's Preferred Stock and Commons Shares Issued and Outstanding | The following table reflects the changes in NRG's preferred and common stock issued and outstanding: Preferred Common Issued and Outstanding Issued Treasury Outstanding Balance as of December 31, 2023 650,000 267,330,470 (59,199,520) 208,130,950 Shares issued under LTIPs — 1,499,546 — 1,499,546 Shares issued under ESPP — — 145,562 145,562 Shares repurchased — — (2,277,630) (2,277,630) Retirement of treasury stock — (2,277,630) 2,277,630 — Balance as of June 30, 2024 650,000 266,552,386 (59,053,958) 207,498,428 Shares issued under LTIPs — 9,703 — 9,703 Shares repurchased — — (1,127,232) (1,127,232) Partial settlement of Capped Call Options — — (1,067) (1,067) Retirement of treasury stock — (955,232) 955,232 — Balance as of July 31, 2024 650,000 265,606,857 (59,227,025) 206,379,832 |
Share Repurchases | The following table summarizes the share repurchases made under the $2.7 billion authorization through July 31, 2024: Total number of shares purchased Average price paid per share Amounts paid for shares purchased (in millions) 2023 Repurchases: Open market repurchases 5,054,798 $ 39.56 $ 200 Repurchases made under the accelerated share repurchase agreements 17,676,142 (b) 950 Total Share Repurchases during 2023 22,730,940 1,150 (a) 2024 Repurchases: Repurchases made under the accelerated share repurchase agreements 1,163,230 (b) — Open market repurchases 1,114,400 $ 80.76 90 Total Share Repurchases during the six months ended June 30, 2024 2,277,630 $ 90 (c) Open market repurchases July 1, 2024 through July 31, 2024 1,127,232 $ 76.27 86 Total Share Repurchases under the $2.7 billion authorization 26,135,802 $ 50.73 $ 1,326 (a) Excludes $10 million accrued for excise tax owed as of December 31, 2023 (b) Under the November 6, 2023 ASR, the Company received a total of 18,839,372 shares for an average price per share of $50.43, excluding the impact of the excise tax incurred. See discussion below for further information of the ASR agreements (c) Excludes $1 million accrued for excise tax owed as of June 30, 2024 |
Schedule of Retirement of Treasury Stock | The Company's accounting policy upon the formal retirement of treasury stock is to deduct its par value from common stock and to reflect any excess of cost over par value as a deduction from additional paid-in-capital. Total number of treasury shares retired Average price per share Carrying value of treasury shares retired (in millions) Shares retired during the first quarter of 2024 1,163,230 $ 32.67 $ 38 Shares retired during the second quarter of 2024 1,114,400 33.84 38 Total shares retired during the six months ended June 30, 2024 2,277,630 $ 76 |
Income_(Loss) Per Share (Tables
Income/(Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
NRG's basic and diluted income/(loss per share | NRG's basic and diluted income/(loss) per share is shown in the following table: Three months ended June 30, Six months ended June 30, (In millions, except per share data) 2024 2023 2024 2023 Basic income/(loss) per share: Net income/(loss) $ 738 $ 308 $ 1,249 $ (1,027) Less: Cumulative dividends attributable to Series A Preferred Stock 17 17 34 21 Net income/(loss) available for common stockholders $ 721 $ 291 $ 1,215 $ (1,048) Weighted average number of common shares outstanding - basic 208 231 209 230 Income/(loss) per weighted average common share — basic $ 3.47 $ 1.26 $ 5.81 $ (4.56) Diluted income/(loss) per share: Net income/(loss) $ 738 $ 308 $ 1,249 $ (1,027) Less: Cumulative dividends attributable to Series A Preferred Stock 17 17 34 21 Net income/(loss) available for common stockholders $ 721 $ 291 $ 1,215 $ (1,048) Weighted average number of common shares outstanding - basic 208 231 209 230 Incremental shares attributable to the issuance of equity compensation (treasury stock method) 3 1 2 — Incremental shares attributable to the potential share settlements of the Convertible Senior Notes (if converted method) 3 — 3 — Weighted average number of common shares outstanding - dilutive 214 232 214 230 Income/(loss) per weighted average common share — diluted $ 3.37 $ 1.25 $ 5.68 $ (4.56) |
Summary of outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company's diluted income/(loss) per share | The following table summarizes the Company's outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company's diluted income/(loss) per share: Three months ended June 30, Six months ended June 30, (In millions of shares) 2024 2023 2024 2023 Equity compensation plans — 1 — 7 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three months ended June 30, 2024 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate Eliminations Total Revenue $ 2,763 $ 2,532 $ 910 $ 467 $ — $ (13) $ 6,659 Depreciation and amortization 63 22 46 144 10 — 285 Impairment losses — — 15 — — — 15 Gain on sale of assets — — 5 — — — 5 Equity in earnings of unconsolidated affiliates — — 4 — — — 4 Loss on debt extinguishment — — — — (202) — (202) Income/(loss) before income taxes 966 447 (4) (31) (326) — 1,052 Net income/(loss) $ 966 $ 447 $ 2 $ (29) $ (648) $ — $ 738 Three months ended June 30, 2023 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate Eliminations Total Revenue $ 2,515 $ 2,503 $ 892 $ 444 $ — $ (6) $ 6,348 Depreciation and amortization 73 30 23 180 9 — 315 Gain on sale of assets — 3 — — — — 3 Equity in earnings of unconsolidated affiliates — — 5 — — — 5 Income/(loss) before income taxes 785 (100) (128) (23) (137) — 397 Net income/(loss) $ 785 $ (101) $ (129) $ (23) $ (224) $ — $ 308 Six months ended June 30, 2024 (In millions) Texas East West/Services/Other Vivint Smart Home Corporate Eliminations Total Revenue $ 4,996 $ 6,047 $ 2,129 $ 935 $ — $ (19) $ 14,088 Depreciation and amortization 130 45 70 288 20 — 553 Impairment losses — — 15 — — — 15 (Loss)/ gain on sale of assets (4) — 5 — — — 1 Equity in earnings of unconsolidated affiliates — — 7 — — — 7 Loss on debt extinguishment — — — — (260) — (260) Income/(loss) before income taxes 1,315 1,027 (79) (22) (494) — 1,747 Net income/(loss) $ 1,315 $ 1,028 $ (58) $ (22) $ (1,014) $ — $ 1,249 Six months ended June 30, 2023 (In millions) Texas East West/Services/Other Vivint Smart Home (a) Corporate Eliminations Total Revenue $ 4,549 $ 6,679 $ 2,266 $ 592 $ — $ (16) $ 14,070 Depreciation and amortization 148 60 47 232 18 — 505 Gain on sale of assets — 202 — — — — 202 Equity in earnings of unconsolidated affiliates — — 10 — — — 10 Income/(loss) before income taxes 1,069 (1,502) (479) (62) (300) — (1,274) Net income/(loss) $ 1,069 $ (1,503) $ (433) $ (62) $ (98) $ — $ (1,027) (a) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The income tax provision consisted of the following: Three months ended June 30, Six months ended June 30, (In millions, except rates) 2024 2023 2024 2023 Income/(Loss) before income taxes $ 1,052 $ 397 $ 1,747 $ (1,274) Income tax expense/(benefit) 314 89 498 (247) Effective income tax rate 29.8 % 22.4 % 28.5 % 19.4 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Summary of NRG's Material Related Party Transactions | The following table summarizes NRG's material related party transactions with third-party affiliates: Three months ended June 30, Six months ended June 30, (In millions) 2024 2023 2024 2023 Revenues from Related Parties Included in Revenue Gladstone $ — $ — $ 1 $ 1 Ivanpah (a) 12 21 25 55 Midway-Sunset 1 1 2 2 Total $ 13 $ 22 $ 28 $ 58 (a) Also includes fees under project management agreements with each project company |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - General (Details) customer in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) customer GW | Jun. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | ||
Generation capacity (in GW) | GW | 13 | |
Proceeds from credit facilities | $ 625 | $ 1,870 |
Repayments of credit facilities | $ 625 | 1,670 |
Error Correction, Other | ||
Business Acquisition [Line Items] | ||
Proceeds from credit facilities | 1,900 | |
Repayments of credit facilities | $ 1,700 | |
Residential Customers | ||
Business Acquisition [Line Items] | ||
Customers | customer | 8 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Other Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Property, plant and equipment accumulated depreciation | $ 1,420 | $ 1,295 |
Customer relationships and other intangible assets accumulated amortization | $ 3,319 | $ 2,994 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Activity in the Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 140 | $ 121 | $ 145 | $ 133 |
Acquired balance from Vivint Smart Home | 0 | 0 | 0 | 22 |
Provision for credit losses | 58 | 45 | 133 | 80 |
Write-offs | (86) | (66) | (178) | (144) |
Recoveries collected | 9 | 12 | 19 | 21 |
Other | 6 | 8 | 8 | 8 |
Ending balance | $ 127 | $ 120 | $ 127 | $ 120 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 376 | $ 541 | ||
Funds deposited by counterparties | 688 | 84 | ||
Restricted cash | 16 | 24 | ||
Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows | $ 1,080 | $ 649 | $ 813 | $ 2,178 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Balance beginning of period | $ 5,079 |
Impairment | (15) |
Foreign currency translation adjustments | (4) |
Balance end of period | 5,060 |
Texas | |
Goodwill [Roll Forward] | |
Balance beginning of period | 643 |
Impairment | 0 |
Foreign currency translation adjustments | 0 |
Balance end of period | 643 |
East | |
Goodwill [Roll Forward] | |
Balance beginning of period | 721 |
Impairment | 0 |
Foreign currency translation adjustments | 0 |
Balance end of period | 721 |
West/Services/Other | |
Goodwill [Roll Forward] | |
Balance beginning of period | 221 |
Impairment | (15) |
Foreign currency translation adjustments | (4) |
Balance end of period | 202 |
Vivint Smart Home | |
Goodwill [Roll Forward] | |
Balance beginning of period | 3,494 |
Impairment | 0 |
Foreign currency translation adjustments | 0 |
Balance end of period | $ 3,494 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations Expected Timing of Satisfaction (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 762 |
Revenue remaining performance obligation period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 1,300 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 940 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 588 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 308 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 38 |
Revenue remaining performance obligation period | 1 year |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 6,480 | $ 6,216 | $ 13,860 | $ 13,731 |
Mark-to-market for economic hedging activities | 875 | 64 | 1,347 | (1,880) |
Revenue | 6,659 | 6,348 | 14,088 | 14,070 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 31 | 13 | 47 | 21 |
Derivative revenue | 884 | 77 | 1,352 | (1,855) |
Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (13) | (5) | (16) | (6) |
Revenue | (13) | (6) | (19) | (16) |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 0 | 0 | 0 | 0 |
Retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 6,344 | 6,027 | 13,573 | 13,390 |
Derivative revenue | 9 | 16 | 19 | 43 |
Retail revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (8) | 0 | (8) | 0 |
Derivative revenue | 0 | 0 | 0 | 0 |
Energy revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 110 | 83 | 262 | 211 |
Derivative revenue | 29 | 5 | 91 | 71 |
Energy revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (3) | (1) | (6) | 1 |
Derivative revenue | (2) | (1) | (5) | 1 |
Capacity revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 44 | 49 | 86 | 91 |
Derivative revenue | 19 | 17 | 41 | 23 |
Capacity revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (1) | 0 | (2) | 0 |
Derivative revenue | 0 | 0 | 0 | 0 |
Derivative revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 84 | 75 | 24 | 166 |
Less: Realized and unrealized ASC 815 revenue | 148 | 119 | 181 | 318 |
Derivative revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 2 | 0 | 2 | (11) |
Less: Realized and unrealized ASC 815 revenue | 0 | (1) | (3) | (10) |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 84 | 122 | 160 | 231 |
Contract amortization | (7) | (8) | (17) | (19) |
Other revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (3) | (5) | (5) | (6) |
Contract amortization | 0 | 0 | 0 | 0 |
Total operating revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,659 | 6,348 | 14,088 | 14,070 |
Total operating revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (13) | (6) | (19) | (16) |
Other revenue, derivative | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 7 | 6 | 6 | 15 |
Other revenue, derivative | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 0 | 0 | 0 | 0 |
Home | Retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,176 | 2,859 | 6,305 | 5,519 |
Home | Retail revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (8) | 0 | (8) | 0 |
Business | Retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,168 | 3,168 | 7,268 | 7,871 |
Business | Retail revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Texas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,755 | 2,501 | 4,986 | 4,537 |
Revenue | 2,763 | 2,515 | 4,996 | 4,549 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 0 | 0 | 0 | 0 |
Texas | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,692 | 2,395 | 4,870 | 4,353 |
Derivative revenue | 0 | 0 | 0 | 0 |
Texas | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 16 | 16 | 23 | 20 |
Derivative revenue | 0 | 0 | 0 | 0 |
Texas | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Derivative revenue | 0 | 0 | 0 | 0 |
Texas | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 0 | 0 | 0 | 0 |
Less: Realized and unrealized ASC 815 revenue | 8 | 14 | 10 | 12 |
Texas | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 55 | 104 | 103 | 176 |
Contract amortization | 0 | 0 | 0 | 0 |
Texas | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,763 | 2,515 | 4,996 | 4,549 |
Texas | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 8 | 14 | 10 | 12 |
Texas | Home | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,766 | 1,563 | 3,126 | 2,799 |
Texas | Business | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 926 | 832 | 1,744 | 1,554 |
East | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,412 | 2,398 | 5,893 | 6,462 |
Revenue | 2,532 | 2,503 | 6,047 | 6,679 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 12 | 6 | 22 | 5 |
East | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,361 | 2,358 | 5,789 | 6,374 |
Derivative revenue | 9 | 16 | 19 | 43 |
East | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 46 | 28 | 127 | 102 |
Derivative revenue | 15 | 13 | 58 | 60 |
East | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 39 | 49 | 80 | 90 |
Derivative revenue | 19 | 17 | 41 | 23 |
East | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 65 | 52 | 14 | 87 |
Less: Realized and unrealized ASC 815 revenue | 108 | 99 | 132 | 212 |
East | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 27 | 23 | 53 | 44 |
Contract amortization | (6) | (7) | (16) | (18) |
East | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,532 | 2,503 | 6,047 | 6,679 |
East | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 0 | 1 | 0 | (1) |
East | Home | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 537 | 446 | 1,239 | 1,097 |
East | Business | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,824 | 1,912 | 4,550 | 5,277 |
West/Services/Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 859 | 878 | 2,062 | 2,146 |
Revenue | 910 | 892 | 2,129 | 2,266 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 19 | 7 | 25 | 16 |
West/Services/Other | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 832 | 830 | 1,987 | 2,071 |
Derivative revenue | 0 | 0 | 0 | 0 |
West/Services/Other | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 51 | 40 | 118 | 88 |
Derivative revenue | 16 | (7) | 38 | 10 |
West/Services/Other | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 6 | 0 | 8 | 1 |
Derivative revenue | 0 | 0 | 0 | 0 |
West/Services/Other | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 17 | 23 | 8 | 90 |
Less: Realized and unrealized ASC 815 revenue | 32 | 7 | 42 | 104 |
West/Services/Other | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 5 | 0 | 9 | 17 |
Contract amortization | (1) | (1) | (1) | (1) |
West/Services/Other | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 910 | 892 | 2,129 | 2,266 |
West/Services/Other | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | (1) | (9) | (4) | 4 |
West/Services/Other | Home | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 414 | 406 | 1,013 | 1,031 |
West/Services/Other | Business | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 418 | 424 | 974 | 1,040 |
Vivint Smart Home | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 467 | 444 | 935 | 592 |
Revenue | 467 | 444 | 935 | 592 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 0 | 0 | 0 | 0 |
Vivint Smart Home | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 467 | 444 | 935 | 592 |
Derivative revenue | 0 | 0 | 0 | 0 |
Vivint Smart Home | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Derivative revenue | 0 | 0 | 0 | 0 |
Vivint Smart Home | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Derivative revenue | 0 | 0 | 0 | 0 |
Vivint Smart Home | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 0 | 0 | 0 | 0 |
Less: Realized and unrealized ASC 815 revenue | 0 | 0 | 0 | 0 |
Vivint Smart Home | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Contract amortization | 0 | 0 | 0 | 0 |
Vivint Smart Home | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 467 | 444 | 935 | 592 |
Vivint Smart Home | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 0 | 0 | 0 | 0 |
Vivint Smart Home | Home | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 467 | 444 | 935 | 592 |
Vivint Smart Home | Business | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Contract Assets and Liabilities [Line Items] | |||||
Capitalized contract costs (included in Prepayments and other current assets and Other non-current assets) | $ 1,005 | $ 1,005 | $ 706 | ||
Total accounts receivable, net | 3,402 | 3,402 | 3,542 | ||
Unbilled revenues (included within Accounts receivable, net - Contracts with customers) | 1,512 | 1,512 | 1,493 | ||
Deferred revenues | 1,685 | 1,685 | 1,634 | ||
Deferred revenues from contracts with customers | 1,600 | ||||
Revenue recognized | 266 | $ 310 | 395 | $ 168 | |
Accounts receivable, net - Contracts with customers | |||||
Schedule of Contract Assets and Liabilities [Line Items] | |||||
Total accounts receivable, net | 3,346 | 3,346 | 3,395 | ||
Accounts receivable, net - Accounted for under topics other than ASC 606 | |||||
Schedule of Contract Assets and Liabilities [Line Items] | |||||
Total accounts receivable, net | 44 | 44 | 136 | ||
Accounts receivable, net - Affiliate | |||||
Schedule of Contract Assets and Liabilities [Line Items] | |||||
Total accounts receivable, net | $ 12 | $ 12 | $ 11 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions Narrative (Details) $ / shares in Units, customer in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 10, 2023 USD ($) customer $ / shares | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |||||
Proceeds from issuance of preferred stock, net of fees | $ 0 | $ 635 | |||
Issuance of Series A Preferred Stock | $ 636 | ||||
Proceeds from credit facilities | $ 625 | 1,870 | |||
Vivint Smart Home | |||||
Business Acquisition [Line Items] | |||||
Customers added (nearly) | customer | 2 | ||||
Acquisition, share price (in usd per share) | $ / shares | $ 12 | ||||
Cash paid to acquire business | $ 2,609 | ||||
Consideration | 2,623 | ||||
Acquisition costs | $ 2 | $ 38 | |||
Vivint Smart Home | Revolving Credit Facility | |||||
Business Acquisition [Line Items] | |||||
Proceeds from credit facilities | 900 | ||||
Vivint Smart Home | Series A Preferred Stock | |||||
Business Acquisition [Line Items] | |||||
Proceeds from issuance of preferred stock, net of fees | 635 | ||||
Issuance of Series A Preferred Stock | $ 650 | ||||
Preferred stock, dividend rate, percentage | 10.25% | ||||
Vivint Smart Home | Senior Secured First Lien Notes, due 2033 | Senior Notes | |||||
Business Acquisition [Line Items] | |||||
Proceeds from issuance of senior notes | $ 724 | ||||
Debt issuance amount | $ 740 | ||||
Interest rate, stated percentage | 7% |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Consideration (Details) - Vivint Smart Home $ / shares in Units, $ in Millions | Mar. 10, 2023 USD ($) $ / shares shares |
Business Acquisition [Line Items] | |
Acquisition, shares outstanding (in shares) | shares | 216,901,639 |
Acquisition, share price (in usd per share) | $ / shares | $ 12 |
Vivint Smart Home, Inc. common shares outstanding as of March 10, 2023 of $216,901,639 at $12.00 per share | $ 2,603 |
Other Vivint Smart Home, Inc. equity instruments (Cash out RSUs and PSUs, Stock Appreciation Rights, Private Placement Warrants) | 6 |
Total Cash Consideration | 2,609 |
Total Consideration | 2,623 |
Equity Awards Pre-combination Service | |
Business Acquisition [Line Items] | |
Fair value of acquired Vivint Smart Home, Inc. equity awards attributable to pre-combination service | $ 14 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Dispositions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jan. 06, 2023 | Dec. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale | $ 5 | $ 3 | $ 1 | $ 202 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | East | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of land and related assets | $ 212 | |||||
Transaction fees | 3 | |||||
Gain on sale | $ 199 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Subsequent Event | Forecast | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of business unit | $ 500 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Estimated Carrying Amounts and Fair Value of Long-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | $ 10,863 | $ 10,940 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | 10,728 | 10,794 |
Carrying Amount | Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | 232 | 575 |
Carrying Amount | Other long-term debt, including current portion | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | 10,496 | 10,219 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | 10,587 | 10,574 |
Fair Value | Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | 445 | 739 |
Fair Value | Other long-term debt, including current portion | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | $ 10,142 | $ 9,835 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets and Liabilities Measured and Recorded at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | $ 25 | $ 21 |
Measured using net asset value practical expedient: | ||
Total assets | 6,176 | 6,182 |
Derivative liabilities: | ||
Derivative contracts | 4,099 | 5,507 |
Interest rate contracts | ||
Derivative assets: | ||
Derivative contracts | 26 | 12 |
Derivative liabilities: | ||
Derivative contracts | 4 | 8 |
Foreign exchange | ||
Derivative assets: | ||
Derivative contracts | 9 | 5 |
Derivative liabilities: | ||
Derivative contracts | 9 | |
Commodity contracts | ||
Derivative assets: | ||
Derivative contracts | 6,110 | 6,138 |
Derivative liabilities: | ||
Derivative contracts | 3,944 | 5,356 |
Consumer Financing Program | ||
Derivative liabilities: | ||
Derivative contracts | 151 | 134 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | 0 | 0 |
Measured using net asset value practical expedient: | ||
Total assets | 764 | 1,334 |
Derivative liabilities: | ||
Derivative contracts | 729 | 1,413 |
Level 1 | Equity Securities | ||
Measured using net asset value practical expedient: | ||
Equity securities | ||
Level 1 | Interest rate contracts | ||
Derivative assets: | ||
Derivative contracts | 0 | 0 |
Derivative liabilities: | ||
Derivative contracts | 0 | 0 |
Level 1 | Foreign exchange | ||
Derivative assets: | ||
Derivative contracts | 0 | 0 |
Derivative liabilities: | ||
Derivative contracts | 0 | |
Level 1 | Commodity contracts | ||
Derivative assets: | ||
Derivative contracts | 764 | 1,334 |
Derivative liabilities: | ||
Derivative contracts | 729 | 1,413 |
Level 1 | Consumer Financing Program | ||
Derivative liabilities: | ||
Derivative contracts | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | 25 | 21 |
Measured using net asset value practical expedient: | ||
Total assets | 5,111 | 4,508 |
Derivative liabilities: | ||
Derivative contracts | 3,045 | 3,745 |
Level 2 | Equity Securities | ||
Measured using net asset value practical expedient: | ||
Equity securities | ||
Level 2 | Interest rate contracts | ||
Derivative assets: | ||
Derivative contracts | 26 | 12 |
Derivative liabilities: | ||
Derivative contracts | 4 | 8 |
Level 2 | Foreign exchange | ||
Derivative assets: | ||
Derivative contracts | 9 | 5 |
Derivative liabilities: | ||
Derivative contracts | 9 | |
Level 2 | Commodity contracts | ||
Derivative assets: | ||
Derivative contracts | 5,051 | 4,470 |
Derivative liabilities: | ||
Derivative contracts | 3,041 | 3,728 |
Level 2 | Consumer Financing Program | ||
Derivative liabilities: | ||
Derivative contracts | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | 0 | 0 |
Derivative assets: | ||
Derivative contracts | 295 | 334 |
Measured using net asset value practical expedient: | ||
Total assets | 295 | 334 |
Derivative liabilities: | ||
Derivative contracts | 325 | 349 |
Level 3 | Equity Securities | ||
Measured using net asset value practical expedient: | ||
Equity securities | ||
Level 3 | Interest rate contracts | ||
Derivative assets: | ||
Derivative contracts | 0 | 0 |
Derivative liabilities: | ||
Derivative contracts | 0 | 0 |
Level 3 | Foreign exchange | ||
Derivative assets: | ||
Derivative contracts | 0 | 0 |
Derivative liabilities: | ||
Derivative contracts | 0 | |
Level 3 | Commodity contracts | ||
Derivative assets: | ||
Derivative contracts | 295 | 334 |
Derivative liabilities: | ||
Derivative contracts | 174 | 215 |
Level 3 | Consumer Financing Program | ||
Derivative liabilities: | ||
Derivative contracts | 151 | 134 |
Net Asset Value | Equity Securities | ||
Measured using net asset value practical expedient: | ||
Equity securities | $ 6 | $ 6 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Reconciliation of Level 3 Financial Instruments (Details) - Level 3 - Derivatives - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 91 | $ 471 | $ 119 | $ 505 |
Total gains/(losses) realized/unrealized included in earnings | 4 | (86) | (37) | (177) |
Purchases | 31 | 99 | 31 | 140 |
Transfers into Level 3 | 2 | 414 | 17 | 438 |
Transfers out of Level 3 | (7) | 7 | (9) | (1) |
Ending balance | 121 | 905 | 121 | 905 |
Gains/(losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of period end | $ 8 | $ (76) | $ (29) | $ (131) |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Contractual Obligations From the Consumer Financing Program (Details) - Level 3 - Derivatives - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | $ 91 | $ 471 | $ 119 | $ 505 |
New contractual obligations | (31) | (99) | (31) | (140) |
Total losses included in earnings | (4) | 86 | 37 | 177 |
Ending balance | 121 | 905 | 121 | 905 |
Consumer Financing Program | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | (124) | (111) | (134) | 0 |
Contractual obligations added from the acquisition of Vivint Smart Home | 0 | 0 | 0 | (112) |
New contractual obligations | (43) | (20) | (58) | (22) |
Settlements | 22 | 19 | 43 | 22 |
Total losses included in earnings | (6) | (3) | (2) | (3) |
Ending balance | $ (151) | $ (115) | $ (151) | $ (115) |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Derivative Fair Value Measurements, Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | ||
Total derivative assets valued with prices provided by models and other valuation techniques (as a percent) | 5% | |
Total derivative liabilities valued with prices provided by models and other valuation techniques (as a percent) | 8% | |
Change in credit reserve | $ 7 | $ 18 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Derivative Fair Value Measurements (Details) $ in Millions | Jun. 30, 2024 USD ($) $ / MWh certificate $ / MWd $ / MMBTU | Dec. 31, 2023 USD ($) $ / MWh certificate $ / MWd |
Liabilities | ||
Derivative liabilities | $ 4,099 | $ 5,507 |
Commodity contracts | ||
Assets | ||
Derivative assets | 6,110 | 6,138 |
Liabilities | ||
Derivative liabilities | 3,944 | 5,356 |
Interest rate contracts | ||
Assets | ||
Derivative assets | 26 | 12 |
Liabilities | ||
Derivative liabilities | 4 | 8 |
Level 3 | ||
Assets | ||
Derivative assets | 295 | 334 |
Liabilities | ||
Derivative liabilities | 325 | 349 |
Level 3 | RECs | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 56 | 58 |
Liabilities | ||
Derivative liabilities | $ 15 | $ 14 |
Level 3 | RECs | Low | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | Fair Value, Recurring | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | certificate | 2,000,000 | 2 |
Level 3 | RECs | High | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | Fair Value, Recurring | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | certificate | 248,000,000 | 320 |
Level 3 | RECs | Weighted Average | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | Fair Value, Recurring | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | certificate | 16,000,000 | 15 |
Level 3 | Commodity contracts | ||
Assets | ||
Derivative assets | $ 295 | $ 334 |
Liabilities | ||
Derivative liabilities | 174 | 215 |
Level 3 | Commodity contracts | Natural Gas Contracts | ||
Assets | ||
Derivative assets | 39 | 39 |
Liabilities | ||
Derivative liabilities | $ 14 | $ 65 |
Level 3 | Commodity contracts | Natural Gas Contracts | Low | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | 0 | 1 |
Level 3 | Commodity contracts | Natural Gas Contracts | High | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | 14,000,000 | 15 |
Level 3 | Commodity contracts | Natural Gas Contracts | Weighted Average | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | 4,000,000 | 3 |
Level 3 | Commodity contracts | Power Contracts | ||
Assets | ||
Derivative assets | $ 168 | $ 197 |
Liabilities | ||
Derivative liabilities | $ 102 | $ 66 |
Level 3 | Commodity contracts | Power Contracts | Low | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | $ / MWh | 0 | 1 |
Level 3 | Commodity contracts | Power Contracts | High | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | $ / MWh | 188,000,000 | 210 |
Level 3 | Commodity contracts | Power Contracts | Weighted Average | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | $ / MWh | 45,000,000 | 47 |
Level 3 | Commodity contracts | FTRs | ||
Assets | ||
Derivative assets | $ 17 | $ 19 |
Liabilities | ||
Derivative liabilities | $ 31 | $ 37 |
Level 3 | Commodity contracts | FTRs | Low | Valuation Technique, Discounted Cash Flow | Auction Prices ($ per MWh) | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | (34,000,000) | (58) |
Level 3 | Commodity contracts | FTRs | High | Valuation Technique, Discounted Cash Flow | Auction Prices ($ per MWh) | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | 17,974,000,000 | 252 |
Level 3 | Commodity contracts | FTRs | Weighted Average | Valuation Technique, Discounted Cash Flow | Auction Prices ($ per MWh) | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | 0 | 0 |
Level 3 | Interest rate contracts | ||
Assets | ||
Derivative assets | $ 0 | $ 0 |
Liabilities | ||
Derivative liabilities | $ 0 | $ 0 |
Level 3 | Interest rate contracts | Low | Valuation Technique, Discounted Cash Flow | Collateral Prepayment Rates | ||
Fair Value Inputs / Range | ||
Derivative liability, measurement input | 0.0200 | 0.0200 |
Level 3 | Interest rate contracts | Low | Valuation Technique, Discounted Cash Flow | Credit Loss Rates | ||
Fair Value Inputs / Range | ||
Derivative liability, measurement input | 0.0475 | 0.0600 |
Level 3 | Interest rate contracts | High | Valuation Technique, Discounted Cash Flow | Collateral Prepayment Rates | ||
Fair Value Inputs / Range | ||
Derivative liability, measurement input | 0.0300 | 0.0300 |
Level 3 | Interest rate contracts | High | Valuation Technique, Discounted Cash Flow | Credit Loss Rates | ||
Fair Value Inputs / Range | ||
Derivative liability, measurement input | 0.6000 | 0.6000 |
Level 3 | Interest rate contracts | Weighted Average | Valuation Technique, Discounted Cash Flow | Collateral Prepayment Rates | ||
Fair Value Inputs / Range | ||
Derivative liability, measurement input | 0.0292 | 0.0295 |
Level 3 | Interest rate contracts | Weighted Average | Valuation Technique, Discounted Cash Flow | Credit Loss Rates | ||
Fair Value Inputs / Range | ||
Derivative liability, measurement input | 0.1332 | 0.1257 |
Level 3 | Interest rate contracts | Consumer financing program | ||
Assets | ||
Derivative assets | $ 0 | $ 0 |
Liabilities | ||
Derivative liabilities | $ 151 | $ 134 |
Level 3 | Interest rate contracts | Consumer financing program | Low | Valuation Technique, Discounted Cash Flow | Collateral Default Rates | ||
Fair Value Inputs / Range | ||
Derivative liability, measurement input | 0.0104 | 0.0043 |
Level 3 | Interest rate contracts | Consumer financing program | High | Valuation Technique, Discounted Cash Flow | Collateral Default Rates | ||
Fair Value Inputs / Range | ||
Derivative liability, measurement input | 0.6620 | 0.9330 |
Level 3 | Interest rate contracts | Consumer financing program | Weighted Average | Valuation Technique, Discounted Cash Flow | Collateral Default Rates | ||
Fair Value Inputs / Range | ||
Derivative liability, measurement input | 0.0972 | 0.0812 |
Level 3 | Capacity Contracts | Capacity Contracts | Fair Value, Recurring | ||
Assets | ||
Derivative assets | $ 15 | $ 21 |
Liabilities | ||
Derivative liabilities | $ 12 | $ 33 |
Level 3 | Capacity Contracts | Capacity Contracts | Low | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | Fair Value, Recurring | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | $ / MWd | 21,000,000 | 49 |
Level 3 | Capacity Contracts | Capacity Contracts | High | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | Fair Value, Recurring | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | $ / MWd | 641,000,000 | 658 |
Level 3 | Capacity Contracts | Capacity Contracts | Weighted Average | Valuation Technique, Discounted Cash Flow | Forward Market Price (perMMBtu) or (per MWh) | Fair Value, Recurring | ||
Fair Value Inputs / Range | ||
Derivative asset/liability, measurement input | $ / MWd | 215,000,000 | 285 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Counterparty Credit Risk (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Concentration of Credit Risk | |
Counterparty credit exposure to a portion of the Company's counterparties | $ 2,600 |
Collateral held (cash and letters of credit) against counterparty credit exposure to a portion of the Company's counterparties | 1,300 |
Net counterparty credit exposure to a portion of the Company's counterparties | $ 1,400 |
Company's exposure before collateral expected to roll off (as a percent) | 61% |
Net exposure (as a percent) | 100% |
Counterparty credit risk exposure to certain counterparties, threshold (as a percent) | 10% |
Estimated counterparty credit risk exposure under certain long term agreements for the next 5 years | $ 962 |
Period of estimated counterparty credit risk exposure under certain long term agreements, including California tolling agreements, South Central load obligations and solar power purchase agreements (in years) | 5 years |
Investment grade | |
Concentration of Credit Risk | |
Net exposure (as a percent) | 54% |
Non-Investment grade/Non-Rated | |
Concentration of Credit Risk | |
Net exposure (as a percent) | 46% |
Utilities, energy merchants, marketers and other | |
Concentration of Credit Risk | |
Net exposure (as a percent) | 79% |
Financial Institutions | |
Concentration of Credit Risk | |
Net exposure (as a percent) | 21% |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||||
Net unrealized losses on open positions related to economic hedges | $ (649) | $ (180) | $ (889) | $ 893 |
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 700 | 700 | ||
Interest Rate Swap | Term Loan | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 1,000 | $ 1,000 |
Accounting for Derivative Ins_4
Accounting for Derivative Instruments and Hedging Activities - Net Notional Volume Buy/Sell of Open Derivative Transactions (Details) - Long certificate in Millions, T in Millions, MWh in Millions, MMBTU in Millions, $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 USD ($) MWh MMBTU certificate T | Dec. 31, 2023 USD ($) MWh MMBTU certificate T | |
RECs | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, non-monetary notional amount (in shares) | certificate | 14 | 12 |
Coal | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, nonmonetary notional amount, mass (ton) | T | 13 | 9 |
Natural Gas | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, nonmonetary notional amount, energy measure (MMBtu/MW/Day) | MMBTU | 747 | 838 |
Power | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, nonmonetary notional amount, energy measure (MMBtu/MW/Day) | MWh | 208 | 201 |
Interest | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, notional amount | $ 1,700 | $ 1,000 |
Foreign Exchange | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, notional amount | 429 | 548 |
Consumer Financing Program | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, notional amount | $ 1,185 | $ 1,116 |
Accounting for Derivative Ins_5
Accounting for Derivative Instruments and Hedging Activities - Fair Value within the Derivative Instrument Valuation (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Derivative Liabilities | $ 4,099 | $ 5,507 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 6,145 | 6,155 |
Derivative Liabilities | 4,099 | 5,507 |
Not Designated as Hedging Instrument | Interest rate contracts current | ||
Derivative [Line Items] | ||
Derivative Assets | 20 | 12 |
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Interest rate contracts long-term | ||
Derivative [Line Items] | ||
Derivative Assets | 6 | 0 |
Derivative Liabilities | 4 | 8 |
Not Designated as Hedging Instrument | Foreign exchange contracts - current | ||
Derivative [Line Items] | ||
Derivative Assets | 6 | 3 |
Derivative Liabilities | 0 | 4 |
Not Designated as Hedging Instrument | Foreign exchange contracts - long-term | ||
Derivative [Line Items] | ||
Derivative Assets | 3 | 2 |
Derivative Liabilities | 0 | 5 |
Not Designated as Hedging Instrument | Commodity contracts - current | ||
Derivative [Line Items] | ||
Derivative Assets | 3,494 | 3,847 |
Derivative Liabilities | 2,570 | 3,922 |
Not Designated as Hedging Instrument | Commodity contracts - long-term | ||
Derivative [Line Items] | ||
Derivative Assets | 2,616 | 2,291 |
Derivative Liabilities | 1,374 | 1,434 |
Not Designated as Hedging Instrument | Consumer Financing Program - short-term | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 94 | 93 |
Not Designated as Hedging Instrument | Consumer Financing Program - long-term | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 57 | $ 41 |
Accounting for Derivative Ins_6
Accounting for Derivative Instruments and Hedging Activities - Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Cash collateral received in support of energy risk management activities | $ (688) | $ (84) |
Derivative liabilities | (4,099) | (5,507) |
Cash Collateral Posted | 384 | 441 |
Total Derivative Contracts | ||
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amounts of Recognized Assets / Liabilities | 2,046 | 648 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | (646) | 71 |
Net Amount | 1,400 | 719 |
Interest rate contracts | ||
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Derivative assets | 26 | 12 |
Derivative Instruments | (4) | (8) |
Cash collateral received in support of energy risk management activities | 0 | 0 |
Net Amount | 22 | 4 |
Derivative liabilities | (4) | (8) |
Derivative Instruments | 4 | 8 |
Cash Collateral Posted | 0 | 0 |
Net Amount | 0 | 0 |
Gross Amounts of Recognized Assets / Liabilities | 22 | 4 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | 0 | 0 |
Net Amount | 22 | 4 |
Foreign exchange | ||
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Derivative assets | 9 | 5 |
Derivative Instruments | 0 | (5) |
Cash collateral received in support of energy risk management activities | 0 | 0 |
Net Amount | 9 | 0 |
Derivative liabilities | (9) | |
Derivative Instruments | 5 | |
Cash Collateral Posted | 0 | |
Net Amount | (4) | |
Gross Amounts of Recognized Assets / Liabilities | (4) | |
Derivative Instruments | 0 | |
Cash Collateral (Held) / Posted | 0 | |
Net Amount | (4) | |
Commodity contracts | ||
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Derivative assets | 6,110 | 6,138 |
Derivative Instruments | (3,726) | (4,926) |
Cash collateral received in support of energy risk management activities | (693) | (74) |
Net Amount | 1,691 | 1,138 |
Derivative liabilities | (3,944) | (5,356) |
Derivative Instruments | 3,726 | 4,926 |
Cash Collateral Posted | 47 | 145 |
Net Amount | (171) | (285) |
Gross Amounts of Recognized Assets / Liabilities | 2,166 | 782 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | (646) | 71 |
Net Amount | 1,520 | 853 |
Consumer Financing Program | ||
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Derivative liabilities | (151) | (134) |
Derivative Instruments | 0 | 0 |
Cash Collateral Posted | 0 | 0 |
Net Amount | $ (151) | $ (134) |
Accounting for Derivative Ins_7
Accounting for Derivative Instruments and Hedging Activities - Pre-tax Effects of Economic Hedges Not Designated as Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Unrealized mark-to-market results | ||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ 209 | $ (151) | $ 453 | $ (997) |
Reversal of acquired loss positions related to economic hedges | 17 | 35 | 5 | 10 |
Net unrealized gains/(losses) on open positions related to economic hedges | 649 | 180 | 889 | (893) |
Total unrealized mark-to-market gains/(losses) for economic hedging activities | 875 | 64 | 1,347 | (1,880) |
Reversal of previously recognized unrealized losses on settled positions related to trading activity | 4 | 10 | 0 | 11 |
Net unrealized gains on open positions related to trading activity | 5 | 3 | 5 | 14 |
Total unrealized mark-to-market gains for trading activity | 9 | 13 | 5 | 25 |
Total unrealized gains/(losses) - commodities and foreign exchange | 884 | 77 | 1,352 | (1,855) |
Net unrealized gains (losses) on open positions related to economic hedges | 649 | 180 | 889 | (893) |
Credit Risk Related Contingent Features | ||||
Collateral due on net liability position that has not been called by a certain marginable agreement counterparty | 50 | 50 | ||
Additional collateral required | 7 | 7 | ||
Adequate Assurance Clauses | ||||
Credit Risk Related Contingent Features | ||||
Derivative net liability position, collateral required for contracts with credit rating contingent feature | 488 | 488 | ||
Commodities | Operating revenues | ||||
Unrealized mark-to-market results | ||||
Total unrealized gains/(losses) - commodities and foreign exchange | 93 | 88 | 29 | 191 |
Commodities | Cost of operations | ||||
Unrealized mark-to-market results | ||||
Total unrealized gains/(losses) - commodities and foreign exchange | 789 | 5 | 1,312 | (2,032) |
Foreign exchange | Cost of operations | ||||
Unrealized mark-to-market results | ||||
Total unrealized gains/(losses) - commodities and foreign exchange | 2 | (16) | 11 | (14) |
Commodities and foreign exchange | ||||
Unrealized mark-to-market results | ||||
Total unrealized gains/(losses) - commodities and foreign exchange | 884 | 77 | 1,352 | (1,855) |
Consumer financing program | ||||
Unrealized mark-to-market results | ||||
Total unrealized gains/(losses) - commodities and foreign exchange | (6) | (3) | (2) | (3) |
Interest rate contracts | ||||
Unrealized mark-to-market results | ||||
Total unrealized gains/(losses) - commodities and foreign exchange | $ 6 | $ 29 | $ 18 | $ 24 |
Long-term Debt and Finance Le_3
Long-term Debt and Finance Leases - Schedule of Long-term Debt and Finance Leases (Details) $ / shares in Units, $ in Millions | 6 Months Ended | ||||
Aug. 01, 2024 $ / shares | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2024 USD ($) $ / shares | Apr. 16, 2024 | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 10,863 | $ 10,863 | $ 10,940 | ||
Finance leases | 21 | 21 | 19 | ||
Subtotal long-term debt and finance leases (including current maturities) | 10,884 | 10,884 | 10,959 | ||
Less current maturities | (262) | (262) | (620) | ||
Less debt issuance costs | (62) | (62) | (60) | ||
Discounts | (135) | (135) | (146) | ||
Total long-term debt and finance leases | 10,425 | 10,425 | 10,133 | ||
Senior Secured First Lien Notes, due 2024 | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.75% | ||||
Recourse Debt | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | 8,150 | 8,150 | 8,220 | ||
Recourse Debt | Senior Notes, due 2027 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 375 | $ 375 | 375 | ||
Interest rate, stated percentage | 6.625% | 6.625% | |||
Recourse Debt | Senior Notes, due 2028 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 821 | $ 821 | 821 | ||
Interest rate, stated percentage | 5.75% | 5.75% | |||
Recourse Debt | Senior Notes, due 2029 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 733 | $ 733 | 733 | ||
Interest rate, stated percentage | 5.25% | 5.25% | |||
Recourse Debt | Senior Notes, due 2029 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 500 | $ 500 | 500 | ||
Interest rate, stated percentage | 3.375% | 3.375% | |||
Recourse Debt | Senior Notes, due 2031 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 1,030 | $ 1,030 | 1,030 | ||
Interest rate, stated percentage | 3.625% | 3.625% | |||
Recourse Debt | Senior Notes, due 2032 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 480 | $ 480 | 480 | ||
Interest rate, stated percentage | 3.875% | 3.875% | |||
Recourse Debt | Convertible Senior Notes, due 2048 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 232 | $ 232 | 575 | ||
Interest rate, stated percentage | 2.75% | 2.75% | |||
Convertible notes, conversion price (in usd per share) | $ / shares | $ 41.32 | $ 41.32 | |||
Conversion rate | 0.0241998 | ||||
Recourse Debt | Convertible Senior Notes, due 2048 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Convertible notes, conversion price (in usd per share) | $ / shares | $ 41.11 | ||||
Conversion rate | 0.024322 | ||||
Recourse Debt | Senior Secured First Lien Notes, due 2024 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 0 | $ 0 | 600 | ||
Interest rate, stated percentage | 3.75% | 3.75% | |||
Recourse Debt | Senior Secured First Lien Notes, due 2025 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 500 | $ 500 | 500 | ||
Interest rate, stated percentage | 2% | 2% | |||
Recourse Debt | Senior Secured First Lien Notes, due 2027 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 900 | $ 900 | 900 | ||
Interest rate, stated percentage | 2.45% | 2.45% | |||
Recourse Debt | Senior Secured First Lien Notes, due 2029 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 500 | $ 500 | 500 | ||
Interest rate, stated percentage | 4.45% | 4.45% | |||
Recourse Debt | Senior Secured First Lien Notes, due 2033 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 740 | $ 740 | 740 | ||
Interest rate, stated percentage | 7% | 7% | |||
Recourse Debt | Term Loan, due 2031 | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 873 | $ 873 | 0 | ||
Basis spread on variable rate | 2% | ||||
Recourse Debt | Tax-exempt bonds | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 466 | $ 466 | 466 | ||
Recourse Debt | Tax-exempt bonds | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.25% | 1.25% | |||
Recourse Debt | Tax-exempt bonds | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.75% | 4.75% | |||
Non Recourse Debt | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 2,713 | $ 2,713 | 2,720 | ||
Non Recourse Debt | Vivint Senior Secured Notes, due 2027 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 600 | $ 600 | 600 | ||
Interest rate, stated percentage | 6.75% | 6.75% | |||
Non Recourse Debt | Vivint Senior Notes, due 2029 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 800 | $ 800 | 800 | ||
Interest rate, stated percentage | 5.75% | 5.75% | |||
Non Recourse Debt | Vivint Senior Secured Term Loan, due 2028 | |||||
Debt Instrument [Line Items] | |||||
Subtotal long-term debt (including current maturities) | $ 1,313 | $ 1,313 | $ 1,320 | ||
Basis spread on variable rate | 2.75% |
Long-term Debt and Finance Le_4
Long-term Debt and Finance Leases - Senior Credit Facility (Details) $ in Millions | Apr. 16, 2024 USD ($) |
Senior Secured First Lien Notes, due 2024 | |
Line of Credit Facility [Line Items] | |
Interest rate, stated percentage | 3.75% |
Term Loan B Facility | Credit agreement | Fed Funds Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.50% |
Term Loan B Facility | Credit agreement | SOFR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0% |
Term Loan B Facility | Credit agreement | SOFR | Minimum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1% |
Term Loan B Facility | Credit agreement | SOFR | Maximum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 2% |
Term Loan B Facility | Credit agreement | Term Loan | |
Line of Credit Facility [Line Items] | |
Credit facility borrowing available | $ 875 |
Interest rate, stated percentage | 1% |
Long-term Debt and Finance Le_5
Long-term Debt and Finance Leases - Convertible Senior Notes, Receivables Securitization Facilities and Senior Note Repayment (Details) | 3 Months Ended | 6 Months Ended | ||||||||
Aug. 01, 2024 $ / shares | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2024 USD ($) counterparty $ / shares | Jun. 21, 2024 USD ($) | Jun. 20, 2024 USD ($) | Apr. 30, 2024 USD ($) | Apr. 16, 2024 | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Borrowings outstanding | $ 10,863,000,000 | $ 10,863,000,000 | $ 10,863,000,000 | $ 10,940,000,000 | ||||||
Recourse Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings outstanding | 8,150,000,000 | 8,150,000,000 | 8,150,000,000 | 8,220,000,000 | ||||||
Aggregate principal redeemed | $ 343,000,000 | $ 343,000,000 | $ 343,000,000 | |||||||
Convertible Senior Notes, due 2048 | Recourse Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Convertible notes, conversion price (in usd per share) | $ / shares | $ 41.32 | $ 41.32 | $ 41.32 | |||||||
Conversion rate | 0.0241998 | |||||||||
Convertible notes, carrying amount | $ 231,000,000 | $ 231,000,000 | $ 231,000,000 | 572,000,000 | ||||||
Convertible notes, threshold percentage of stock price trigger | 130% | |||||||||
Convertible notes, threshold trading days | counterparty | 20 | |||||||||
Convertible notes, consecutive trading days | counterparty | 30 | |||||||||
Capped call, convertible debt, conversion, premium | 257,000,000 | 257,000,000 | $ 257,000,000 | |||||||
Borrowings outstanding | $ 232,000,000 | 232,000,000 | $ 232,000,000 | 575,000,000 | ||||||
Capped calls option price | $ 257,000,000 | |||||||||
Aggregate principal redeemed | $ 251,000,000 | $ 92,000,000 | ||||||||
Interest rate, stated percentage | 2.75% | 2.75% | 2.75% | |||||||
Convertible Senior Notes, due 2048 | Recourse Debt | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Convertible notes, conversion price (in usd per share) | $ / shares | $ 41.11 | |||||||||
Conversion rate | 0.024322 | |||||||||
Senior Secured First Lien Notes, due 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 3.75% | |||||||||
Senior Secured First Lien Notes, due 2024 | Recourse Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings outstanding | $ 0 | $ 0 | $ 0 | $ 600,000,000 | ||||||
Aggregate principal redeemed | $ 600,000,000 | $ 600,000,000 | $ 600,000,000 | |||||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | |||||||
Receivables Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit commitments | $ 2,300,000,000 | $ 1,400,000,000 | ||||||||
Outstanding borrowing | $ 0 | $ 0 | $ 0 | |||||||
Receivables Facility | Secured Debt | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letters of credit issued | $ 1,100,000,000 |
Long-term Debt and Finance Le_6
Long-term Debt and Finance Leases - Interest Expense in Connection with Convertible Senior Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||||
Amortization of deferred finance costs | $ 21 | $ 31 | ||
Convertible Senior Notes, due 2048 | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 2 | $ 4 | 6 | 8 |
Amortization of deferred finance costs | 1 | 0 | 1 | 1 |
Total | $ 3 | $ 4 | $ 7 | $ 9 |
Effective Interest Rate | 0.76% | 0.75% | 1.54% | 1.52% |
Long-term Debt and Finance Le_7
Long-term Debt and Finance Leases - Senior Note Repurchases (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||||||
Loss on debt extinguishment | $ (202) | $ 0 | $ (260) | $ 0 | ||
Accrued interest | $ 2 | 1 | 1 | |||
Recourse Debt | ||||||
Debt Instrument [Line Items] | ||||||
Principal Repurchased | $ 343 | 343 | ||||
Cash paid | 603 | |||||
Recourse Debt | Convertible Senior Notes, due 2048 | ||||||
Debt Instrument [Line Items] | ||||||
Loss on debt extinguishment | $ 260 | |||||
Principal Repurchased | 251 | $ 92 | ||||
Cash paid | $ 452 | $ 151 | ||||
Average Repurchase Percentage | 179.454% | 162.356% |
Long-term Debt and Finance Le_8
Long-term Debt and Finance Leases -Vivint Term Loan Repricing (Details) - Term Loan - Vivint Credit Agreement | Apr. 10, 2024 |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.75% |
Fed Funds Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.50% |
SOFR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1% |
SOFR | Maximum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 2.75% |
SOFR | Minimum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.50% |
Investments Accounted for Usi_3
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs - Summarized Financial Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Investments Accounted for by the Equity Method | ||
Accounts receivable and Other current assets | $ 9,806 | $ 9,727 |
Current liabilities | 8,302 | 9,500 |
Variable Interest Entity, Primary Beneficiary | ||
Investments Accounted for by the Equity Method | ||
Accounts receivable and Other current assets | 2,527 | 1,541 |
Current liabilities | 153 | 153 |
Net assets | $ 2,374 | $ 1,388 |
Changes in Capital Structure -
Changes in Capital Structure - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Nov. 06, 2023 | Jun. 22, 2023 | ||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||
Share repurchases | [1] | $ 91,000,000 | |||||||||||
ESPP, minimum percentage of eligible compensation to purchase shares | 1% | ||||||||||||
ESPP, maximum percentage of eligible compensation | 10% | ||||||||||||
ESPP, exercise price as percentage of fair value | 90% | ||||||||||||
Treasury Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Share repurchases | $ 91,000,000 | [1] | $ 117,000,000 | [2] | $ 117,000,000 | ||||||||
Additional Paid-In Capital | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Share repurchases | [2] | $ (117,000,000) | |||||||||||
November 2023 Accelerated Share Repurchase Agreements | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Accelerated share repurchases, agreement amount | $ 950,000,000 | ||||||||||||
Shares repurchased (in shares) | 1,163,230 | 18,839,372 | |||||||||||
November 2023 Accelerated Share Repurchase Agreements | Treasury Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Share repurchases | $ 833,000,000 | ||||||||||||
November 2023 Accelerated Share Repurchase Agreements | Additional Paid-In Capital | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Share repurchases | $ 117,000,000 | ||||||||||||
Capital Allocation Plan, 2023 | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares repurchased (in shares) | 17,676,142 | ||||||||||||
Capital Allocation Plan, 2023 | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Capital allocation policy, target allocation, percentage of cash available for allocation after debt reduction to be returned to shareholders | 80% | ||||||||||||
Stock repurchase program, authorized amount | $ 2,700,000,000 | ||||||||||||
Share repurchases | $ 90,000,000 | $ 1,150,000,000 | |||||||||||
Shares repurchased (in shares) | 2,277,630 | 22,730,940 | |||||||||||
Capital Allocation Plan, 2023 | Subsequent Event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Remaining amount recorded in additional paid in capital | $ 1,400,000,000 | ||||||||||||
Share repurchases | $ 1,326,000,000 | ||||||||||||
Shares repurchased (in shares) | 26,135,802 | ||||||||||||
Capital Allocation Plan, Open Market Repurchases | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Share repurchases | $ 90,000,000 | $ 200,000,000 | |||||||||||
Shares repurchased (in shares) | 1,114,400 | 5,054,798 | |||||||||||
Capital Allocation Plan, Open Market Repurchases | Subsequent Event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Share repurchases | $ 86,000,000 | ||||||||||||
Shares repurchased (in shares) | 1,127,232 | ||||||||||||
[1] Includes excise tax accrued of $1 million for the three months ended June 30, 2024 Represents the final settlements of the November 6, 2023 ASR agreements. See Note 9, Changes in Capital Structure for additional information |
Changes in Capital Structure _2
Changes in Capital Structure - Changes in NRG's Common Stock Issued and Outstanding (Details) - shares | 1 Months Ended | 6 Months Ended |
Jul. 31, 2024 | Jun. 30, 2024 | |
Schedule of Stock by Class, Equity [Roll Forward] | ||
Preferred, Balance as of beginning of period (in shares) | 650,000 | 650,000 |
Preferred, Balance as of end of period (in shares) | 650,000 | |
Common, Balance as of beginning of period (in shares) | 266,552,386 | 267,330,470 |
Treasury, Balance as of beginning of period (in shares) | (59,053,958) | (59,199,520) |
Common, Outstanding, as of beginning of period (in shares) | 207,498,428 | 208,130,950 |
Shares repurchased (in shares) | (2,277,630) | |
Common, Balance as of end of period (in shares) | 266,552,386 | |
Treasury, Balance as of end of period (in shares) | (59,053,958) | |
Common, Outstanding, as of end of period (in shares) | 207,498,428 | |
Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares repurchased (in shares) | (1,127,232) | |
Partial settlement of Capped Call Options (in shares) | (1,067) | |
Common, Outstanding, as of end of period (in shares) | 206,379,832 | |
Shares issued under LTIPs | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under LTIPs (in shares) | 1,499,546 | |
Shares issued under LTIPs | Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under LTIPs (in shares) | 9,703 | |
Shares issued under ESPP | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under ESPP (in shares) | 145,562 | |
Preferred Stock | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Preferred, Balance as of beginning of period (in shares) | 650,000 | |
Preferred, Balance as of end of period (in shares) | 650,000 | |
Preferred Stock | Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Preferred, Balance as of end of period (in shares) | 650,000 | |
Common Stock | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Common, Balance as of beginning of period (in shares) | 266,552,386 | 267,330,470 |
Retirement of treasury stock (in shares) | (2,277,630) | |
Common, Balance as of end of period (in shares) | 266,552,386 | |
Common Stock | Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Retirement of treasury stock (in shares) | (955,232) | |
Common, Balance as of end of period (in shares) | 265,606,857 | |
Common Stock | Shares issued under LTIPs | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under LTIPs (in shares) | 1,499,546 | |
Common Stock | Shares issued under LTIPs | Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under LTIPs (in shares) | 9,703 | |
Treasury Stock | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Treasury, Balance as of beginning of period (in shares) | (59,053,958) | (59,199,520) |
Shares repurchased (in shares) | (2,277,630) | |
Retirement of treasury stock (in shares) | 2,277,630 | |
Treasury, Balance as of end of period (in shares) | (59,053,958) | |
Treasury Stock | Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares repurchased (in shares) | (1,127,232) | |
Partial settlement of Capped Call Options (in shares) | (1,067) | |
Retirement of treasury stock (in shares) | 955,232 | |
Treasury, Balance as of end of period (in shares) | (59,227,025) | |
Treasury Stock | Shares issued under LTIPs | Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under LTIPs (in shares) | 0 | |
Treasury Stock | Shares issued under ESPP | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under ESPP (in shares) | 145,562 |
Changes in Capital Structure _3
Changes in Capital Structure - Schedule of Repurchases Under Share Repurchase Programs (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 22, 2023 | ||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Amounts paid for shares purchased | [1] | $ 91,000,000 | ||||||
Subsequent Event | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Average price paid per share (in usd per share) | $ 50.73 | |||||||
Capital Allocation Plan, Open Market Repurchases | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Total number of shares purchased (in shares) | 1,114,400 | 5,054,798 | ||||||
Average price paid per share (in usd per share) | $ 80.76 | $ 39.56 | ||||||
Amounts paid for shares purchased | $ 90,000,000 | $ 200,000,000 | ||||||
Capital Allocation Plan, Open Market Repurchases | Subsequent Event | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Total number of shares purchased (in shares) | 1,127,232 | |||||||
Average price paid per share (in usd per share) | $ 76.27 | |||||||
Amounts paid for shares purchased | $ 86,000,000 | |||||||
Capital Allocation Plan, Accelerated Repurchase Agreements | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Total number of shares purchased (in shares) | 1,163,230 | 17,676,142 | ||||||
Amounts paid for shares purchased | $ 0 | $ 950,000,000 | ||||||
Capital Allocation Plan, 2023 | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Total number of shares purchased (in shares) | 2,277,630 | 22,730,940 | ||||||
Amounts paid for shares purchased | $ 90,000,000 | $ 1,150,000,000 | ||||||
Stock repurchase program, authorized amount | $ 2,700,000,000 | |||||||
Excise tax | $ 1,000,000 | $ 10,000,000 | ||||||
Capital Allocation Plan, 2023 | Subsequent Event | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Total number of shares purchased (in shares) | 26,135,802 | |||||||
Amounts paid for shares purchased | $ 1,326,000,000 | |||||||
November 2023 Accelerated Share Repurchase Agreements | ||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||
Total number of shares purchased (in shares) | 1,163,230 | 18,839,372 | ||||||
Average price paid per share (in usd per share) | $ 50.43 | |||||||
[1] Includes excise tax accrued of $1 million for the three months ended June 30, 2024 |
Changes in Capital Structure _4
Changes in Capital Structure - NRG Common Stock Dividends (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Jul. 19, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | ||||||
Common stock dividends proposed annual amount (in usd per share) | $ 1.63 | $ 1.51 | ||||
Dividends per common share (in usd per share) | $ 0.4075 | $ 0.4075 | $ 0.3775 | $ 0.3775 | ||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Common stock dividends declared (in usd per share) | $ 0.4075 | |||||
Minimum | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, annual dividend growth rate, percentage | 7% | |||||
Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, annual dividend growth rate, percentage | 9% |
Changes in Capital Structure _5
Changes in Capital Structure - Treasury Stock Retirements (Details) - Treasury Stock - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | |
Equity, Class of Treasury Stock [Line Items] | |||
Retirement of treasury stock (in shares) | 1,114,400 | 1,163,230 | 2,277,630 |
Average price paid per share (in usd per share) | $ 33.84 | $ 32.67 | |
Retirement of treasury stock | $ 38 | $ 38 | $ 76 |
Changes in Capital Structure _6
Changes in Capital Structure - Capped Call Options (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Option Indexed to Issuer's Equity [Line Items] | ||||||
Borrowings outstanding | $ 10,863 | $ 10,863 | $ 10,940 | |||
Capped call options | [1] | (253) | ||||
Other income, net | 3 | $ 13 | 33 | $ 29 | ||
Convertible Senior Notes, due 2048 | Senior Notes | ||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||
Capped call, convertible debt, conversion, premium | 257 | 257 | ||||
Borrowings outstanding | $ 232 | $ 232 | ||||
Convertible Senior Notes Capped Calls | Senior Notes | ||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||
Capped calls, strike price (in usd per share) | $ 41.32 | $ 41.32 | ||||
Capped call cap price (in usd per share) | $ 249 | $ 249 | ||||
Capped calls option price | $ 257 | |||||
Other income, net | 4 | |||||
Additional Paid-In Capital | ||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||
Capped call options | [1] | (253) | ||||
Additional Paid-In Capital | Convertible Senior Notes Capped Calls | Senior Notes | ||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||
Capped call options | $ 253 | |||||
[1] For further discussion of the Capped Call Options, see Note 9, Changes in Capital Structure |
Changes in Capital Structure _7
Changes in Capital Structure - Preferred Stock (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) $ / shares | ||
Class of Stock [Line Items] | ||
Dividends per Series A Preferred Stock (in usd per share) | $ / shares | $ 51.25 | |
Series A Preferred Stock dividends | $ | $ 33 | [1] |
Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Dividends per Series A Preferred Stock (in usd per share) | $ / shares | $ 51.25 | |
Series A Preferred Stock dividends | $ | $ 33 | |
Series A Preferred Stock | Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, dividend rate, percentage | 10.25% | |
[1] Dividend per share of Series A Preferred Stock was $51.25 |
Income_(Loss) Per Share - Basic
Income/(Loss) Per Share - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic income/(loss) per share: | ||||||
Net income/(loss) | $ 738 | $ 511 | $ 308 | $ (1,335) | $ 1,249 | $ (1,027) |
Less: Cumulative dividends attributable to Series A Preferred Stock | 17 | 17 | 34 | 21 | ||
Net Income/(Loss) Available to Common Stockholders, basic | $ 721 | $ 291 | $ 1,215 | $ (1,048) | ||
Weighted average number of common shares outstanding — basic (in shares) | 208,000 | 231,000 | 209,000 | 230,000 | ||
Income/(loss) per weighted average common share — basic (in usd per share) | $ 3.47 | $ 1.26 | $ 5.81 | $ (4.56) | ||
Diluted income/(loss) per share: | ||||||
Net income/(loss) | $ 738 | $ 511 | $ 308 | $ (1,335) | $ 1,249 | $ (1,027) |
Less: Cumulative dividends attributable to Series A Preferred Stock | 17 | 17 | 34 | 21 | ||
Net Income/(Loss) Available to Common Stockholders, diluted | $ 721 | $ 291 | $ 1,215 | $ (1,048) | ||
Weighted average number of common shares outstanding — basic (in shares) | 208,000 | 231,000 | 209,000 | 230,000 | ||
Incremental shares attributable to the issuance of equity compensation (treasury stock method) (in shares) | 3,000 | 1,000 | 2,000 | 0 | ||
Incremental shares attributable to the potential share settlements of the Convertible Senior Notes (if converted method) (in shares) | 3,000 | 0 | 3,000 | 0 | ||
Weighted average number of common shares outstanding — diluted (in shares) | 214,000 | 232,000 | 214,000 | 230,000 | ||
Income/(loss) per weighted average common share — diluted (in usd per share) | $ 3.37 | $ 1.25 | $ 5.68 | $ (4.56) |
Income_(Loss) Per Share - Outst
Income/(Loss) Per Share - Outstanding Antidilutive Equity Instruments Excluded From Computation of Diluted Loss Per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities (in shares) | 0 | 1 | 0 | 7 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information | ||||
Revenues | $ 6,659 | $ 6,348 | $ 14,088 | $ 14,070 |
Depreciation and amortization | 285 | 315 | 553 | 505 |
Impairment losses | 15 | 0 | 15 | 0 |
Gain (loss) on sale of assets | 5 | 3 | 1 | 202 |
Equity in earnings of unconsolidated affiliates | 4 | 5 | 7 | 10 |
Loss on debt extinguishment | (202) | 0 | (260) | 0 |
Income/(loss) before income taxes | 1,052 | 397 | 1,747 | (1,274) |
Net income /(loss) | 738 | 308 | 1,249 | (1,027) |
Corporate | ||||
Segment Reporting Information | ||||
Revenues | 0 | 0 | 0 | 0 |
Depreciation and amortization | 10 | 9 | 20 | 18 |
Impairment losses | 0 | 0 | ||
Gain (loss) on sale of assets | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Loss on debt extinguishment | (202) | (260) | ||
Income/(loss) before income taxes | (326) | (137) | (494) | (300) |
Net income /(loss) | (648) | (224) | (1,014) | (98) |
Eliminations | ||||
Segment Reporting Information | ||||
Revenues | (13) | (6) | (19) | (16) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment losses | 0 | 0 | ||
Gain (loss) on sale of assets | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Loss on debt extinguishment | 0 | 0 | ||
Income/(loss) before income taxes | 0 | 0 | 0 | 0 |
Net income /(loss) | 0 | 0 | 0 | 0 |
Texas | Operating Segments | ||||
Segment Reporting Information | ||||
Revenues | 2,763 | 2,515 | 4,996 | 4,549 |
Depreciation and amortization | 63 | 73 | 130 | 148 |
Impairment losses | 0 | 0 | ||
Gain (loss) on sale of assets | 0 | 0 | (4) | 0 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Loss on debt extinguishment | 0 | 0 | ||
Income/(loss) before income taxes | 966 | 785 | 1,315 | 1,069 |
Net income /(loss) | 966 | 785 | 1,315 | 1,069 |
East | Operating Segments | ||||
Segment Reporting Information | ||||
Revenues | 2,532 | 2,503 | 6,047 | 6,679 |
Depreciation and amortization | 22 | 30 | 45 | 60 |
Impairment losses | 0 | 0 | ||
Gain (loss) on sale of assets | 0 | 3 | 0 | 202 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Loss on debt extinguishment | 0 | 0 | ||
Income/(loss) before income taxes | 447 | (100) | 1,027 | (1,502) |
Net income /(loss) | 447 | (101) | 1,028 | (1,503) |
West/Services/Other | Operating Segments | ||||
Segment Reporting Information | ||||
Revenues | 910 | 892 | 2,129 | 2,266 |
Depreciation and amortization | 46 | 23 | 70 | 47 |
Impairment losses | 15 | 15 | ||
Gain (loss) on sale of assets | 5 | 0 | 5 | 0 |
Equity in earnings of unconsolidated affiliates | 4 | 5 | 7 | 10 |
Loss on debt extinguishment | 0 | 0 | ||
Income/(loss) before income taxes | (4) | (128) | (79) | (479) |
Net income /(loss) | 2 | (129) | (58) | (433) |
Vivint Smart Home | Operating Segments | ||||
Segment Reporting Information | ||||
Revenues | 467 | 444 | 935 | 592 |
Depreciation and amortization | 144 | 180 | 288 | 232 |
Impairment losses | 0 | 0 | ||
Gain (loss) on sale of assets | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Loss on debt extinguishment | 0 | 0 | ||
Income/(loss) before income taxes | (31) | (23) | (22) | (62) |
Net income /(loss) | $ (29) | $ (23) | $ (22) | $ (62) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Effective Tax Rate | ||||
Income/(Loss) before income taxes | $ 1,052 | $ 397 | $ 1,747 | $ (1,274) |
Income tax expense/(benefit) | $ 314 | $ 89 | $ 498 | $ (247) |
Effective income tax rate | 29.80% | 22.40% | 28.50% | 19.40% |
Uncertain Tax Benefits | ||||
Non-current tax liability for uncertain tax benefits | $ 67 | $ 67 | ||
Uncertain tax benefits, penalties and interest accrued | $ 3 | $ 3 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of NRG's Material Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | ||||
Revenue | $ 6,659 | $ 6,348 | $ 14,088 | $ 14,070 |
Related Party | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 13 | 22 | 28 | 58 |
Related Party | Gladstone | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 0 | 0 | 1 | 1 |
Related Party | Ivanpah | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 12 | 21 | 25 | 55 |
Related Party | Midway-Sunset | ||||
Related Party Transaction [Line Items] | ||||
Revenue | $ 1 | $ 1 | $ 2 | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 1 Months Ended | |||||
Oct. 23, 2023 USD ($) | Feb. 28, 2023 USD ($) | Jun. 30, 2024 case facility | Jul. 31, 2023 | Dec. 31, 2021 facility | Jun. 30, 2019 facility | |
Loss Contingencies | ||||||
Number of facilities | facility | 2 | 2 | ||||
Sierra Club Et Al V. Midwest Generation LLC | ||||||
Loss Contingencies | ||||||
Number of facilities | facility | 4 | |||||
Direct Energy vs. Burk and Dickson | ||||||
Loss Contingencies | ||||||
Pending lawsuits | case | 2 | |||||
CPI Security Systems, Inc. v. Vivint Smart Home, Inc. | ||||||
Loss Contingencies | ||||||
Damages awarded | $ 50 | |||||
Punitive damages awarded | $ 140 | |||||
SB IP Holdings LLC (“Skybell”) v. Vivint Smart Home, Inc. | ||||||
Loss Contingencies | ||||||
Damages awarded | $ 45 | |||||
Partners in STP, CPS and Austin Energy vs. NRG | Pending Litigation | STP | ||||||
Loss Contingencies | ||||||
Ownership interest | 44% |
Regulatory Matters (Details)
Regulatory Matters (Details) - New York State Public Service Commission | Jan. 08, 2024 compliantProduct retailSupplier |
Loss Contingencies | |
Number of company's retail suppliers notified | retailSupplier | 8 |
Minimum | |
Loss Contingencies | |
Number of compliant products authorized by regulatory agency | 1 |
Maximum | |
Loss Contingencies | |
Number of compliant products authorized by regulatory agency | 3 |
Environmental Matters (Details)
Environmental Matters (Details) $ in Millions | Jun. 30, 2024 USD ($) facility | Dec. 31, 2021 facility |
Commitments and Contingencies Disclosure [Abstract] | ||
Environmental proceedings, disclosure threshold | $ | $ 1 | |
Number of plants | facility | 2 | 2 |