NRG - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, welcome to the NRG Energy, Inc.

First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions]

hand of over Investor to Kevin [Technical like Head Cole, Relations. now the to conference Difficulty], I’d Thank you.

You please go ahead sir.

Kevin Cole

at Thank This scheduled welcome XXXX length section which Webcasts. you. to NRG via phone broadcast the Investors can being Energy’s & and website Good live webcast, first and over of is earnings morning’s www.nrg.com XX for call. is Presentations call minutes in be under and in morning the quarter our located

Harbor contain date. forward-looking the that except We our as may which may note law. these are Safe be assumptions risk discussion Please statements as to We that as the materially. result to as on factors SEC future of statements we reasonable required update today’s based a today’s review differ in everyone urge as Actual by events in to believe undertake of presentation, well this filings. no results obligation

refer non-GAAP will and to GAAP we addition, In both measures. financial

and most our today’s non-GAAP For please GAAP presentation. to to directly reconciliations financial information refer measures, comparable regarding measures the

now the to President Gutierrez, NRG’s call CEO. that, turn And Mauricio and over I’ll with

Mauricio Gutierrez

by call Thank Head Andrews, Officer. we everyone. Operations. and good morning you Chief of Moser, Head Mass thank your our have in and of the available Kevin Killinger, NRG. for joined Also Chris Elizabeth this And on interest Financial I'm Retail and you, for morning, Kirk questions our

everyone say are your pandemic. we NRG, to families Before to thoughts by and a sincerely from well our impacted with the at like hope begin, I you are would we moment those that COVID-XX and take

our that provide businesses. And of to is on to homes electricity the now service critical way we how clearer been relying never more ever, than are have life. and communities We our

their supporting our this I with customers. the who me our and power essential These and plants front courage line want every unprecedented on continue day employees time. safely commitment impress during operating our to to are thank employees

messages key the to for I’d start X, three Slide by like to today’s Turning highlighting call.

a reliable initiated on COVID-XX safe we response comprehensive to focus maintaining and First, operations.

employees. well-being and Our #X the our priority remains health of protecting

So our deliver and they the keep communities. and on for can electricity safely lights customers

changes first year to our able the reaffirm have the integrated our quarter during to given business, guidance. were and strong deliver that results full Second, we financial made we

on Third, we earnings and on as we new disclosures regional the February segments. providing business, enhanced introduction call, promise including our integrated are our of

Turning talk to Slide you greater want to COVID-XX. to I to our about detail in X, response

the January been offices protecting of our our team crisis one Our activated prepared and the XX, March U.S. case, for On we employees. ensure day our have top first management to the employees to closed priority XX, remote work. scenario. well-being we we confirm safety transition after On any and were

remained remotely. fully our during operational with XX% We personnel over of this have working office time

provide to non-essential our our who at employees closed and While we offices or we also plants day. power every essential continue personnel, critical services and offices have work to in

guidelines, restricted implemented plants As continuing distancing to our part and for streaming deep enacted and to we commitment those essential health to staggered access onsite. guidelines for cleaning safety, the strict power protocols, Initiated their health staffing to functions. and protecting introduced work of social offices

employee We our employees to virtual protect brands their to have These employees to doctors the intended all relief health are and our access for resources also include from expanded awarded additional NRG and benefits families. fund.

delayed has COVID-XX impact been due the outages issues. A operations, our to were to limited. few respect With

had implications. impact them a material or of none However, reliability financial

outages a Our refueling spring nuclear STP. program included XX and at

summer stop California. months. We the all are projects our we did well work prepared including non-essential at in Encina demolition So for project

communities. of support team safety and the retail our well-being We paused face-to-face have to also sales activities and

payment been of electric deferred disconnects plans all paused temporary temporarily fees their by financially some impacted and customers relief. that we offered Recognizing our and have to COVID-XX, provide

market Texas significant another result PUCT extends the with hardship COVID-XX. customers financial closely those assistance income of create as mid-July participants a to and low additional facing to that solution work a through also We

we In the includes April, who to work. and businesses, to pledge lead to lines we a the a in equipment. teachers forced announced in months. on been relief front play personnel such guidelines educators communities funds distancing for Community place, are small And pivotal devastated at of supplies in This which funding need as most. needed our have critical who safety and aimed social have and who $X shelter live first for protective of where relief and million many efforts responders role desperate those close

employees our to prioritizing well-being. return operations their normal began safety have and We to the new activities

mild and Now of results EBITDA, moving were markets. operational same our from adjusted on core achieved offset the weather decile quarter X. to last on delivered and by partially almost performance top $XXX addition stream year. safety increase of X% the across results to for the a initiatives driven our million enhancement and period Slide These margin by We financial energy

mild Northeast to the ERCOT and saw weather put the quarter. XX-year than temperatures in first XX% normal the and XX% were for To that the context, warmer

our year a platform. during our of our on summer We of economy reaffirming based reopening also this guidance full the integrated and gradual are of our stability expectations

like impact from around items to So we point, payment come who debt. customer most are times. be this the unprecedented And COVID-XX, these of million. expect bad At that from $XX estimate related adverse

this impact at fund. studying We through look prudent will and cost management relief and ERCOT's

to business the we quarter, we infectious as in and plan discussed ensure implemented the slide. continuity During our previous pandemic disease

are and help as presentation. you think reporting we that same stability I we in which demonstrate our ERCOT the providing enhanced These long quarter retail business, detail We updated are about, went our disclosures manage also when illustrate difficult disclosures and discuss our in generation will the platform help up about also but during businesses. the to I later which of they it. way off greater believe, separate will have to intended talked was segments the in

to end, we late I in our XXth sustainability and publish February, call sustainability annual spoke transparency. at earnings our that our about last the on report. To length just Finally, commitment program

Our foundational of success framework to is comprehensive the our sustainability long-term company.

that speed key are One metrics business. our which decarbonizing the of is the

are we achieving to there. have see, goal now get clear to will you of line the and XX% way our of XXXX site As

Moving on X, our I we slide, highlight estimated weather electric demand of want to are in year-on-year right changes some to we for of markets. In impacts load in side the the seeing core Slide upper April. hand the have normalized

are rest customer with electric the state can Permian lower the regional, only of is in prices which the as X%. West by can the see been primarily the you significant hand between are slide. differences of also the of continues by region. oil differences driven down see, to and anywhere lower to and As we impacted only right within you the but Except clients in class Texas These it demand the X%. across Even not X% between impact the show in resilience country have ERCOT seeing side ERCOT,

Residential remain, electric peak the of which up X% month is XX% makes this of year ERCOT demand for around of the April. up time

customer. are the make While small impact point heavily specific business a The portfolios. residential In case, the and we is depend to C&I our will their have companies to been mix weighted towards here in Texas customer on negatively I the that impacted. want

April impact the I will reopening Texas The to seem be and the already have getting far demand on tell on This Conversely, summer can to impact the that remind to been may at seen has exposure but so Now dependent will businesses everyone summer is in and in ease patch robust. economy. weather. difficult the our looking assess economy the may we partial is ERCOT started. wind largest that began production to the into small that to suggests prices reopens. oil point, just a ahead you I residential as summer, severe be impact of that this load

are We know have the outlook reserve next perspective will Finally, doubt prices coming dependent low will an demand. COVID-XX, that years. robust. renewables to the remain at new impact point. from almost on online It’s much ERCOT this on and in our long-term difficult know No oil how few exclusively margins for

other PPA renewables in indicative which scarcity quarter, a prices these development. slowdown this turning going each is renewable going the How We no offset of is forward. have much two things new new to

on or the scarcities assuming helpful development why not the think we for where new developments margins much what This tighter forward CDR. forward is reserve which any not new is be renewable seen will Now, prices, based in than curve is have for the that matter. we

this So more period unprecedented are integrated years a over with X. a highly company. ago, levered stable during Since Slide IPP from business our review power a as predictable deliberately this on how to market to CEO context, I I to evolved over company perform took positioned four we and we want as

we our view what our During sustainability, framework compelling establish balance and we simplify streamline an this allocation and foundation. transparent portfolio, a grade achieve integral and an time, investment part of capital as made sheet,

we price stock done work doesn't all current we have as good the navigate downturn. to reflected we earnings our in While successfully stable be it, reflect the the expect

non-core see, have with of By assets to our selling portfolio chain, our parts rebalanced Retail significantly value can the earnings. and counter complimentary stabilized Generation. by two match underperforming you these we Load As better we integrating and cyclical

you Texas. more particularly see this which towards consumers, weighted new resilient heavily a proven during can costs business to group in is As residential the be in of our has segments, period

close to we ratings this to range and this reached of next in continued XX Second, within ratio EBITDA driving remain conservative rating our to months. investment Last our the drive to our dialogue we net to of year. target we’ve metric operational that of balance We grade with the sheet investment stronger. have performance, range the our expect never grade agencies end over and X.XX debt been continue X.X year, ratio goal target to

beyond well goes metrics. strength sheet balance Our these

a and have liquidity. good maturity our We done in schedule managing job

and free be is year’s next anyone's maturity each cash is maturity XXXX flow. less size not Our until than year's to

$X strong remains also liquidity Our at billion. approximately

now cash our beyond our size business shareholders. Next, to financial all us, actions stabilize on And returning we're in perfecting with and to deleveraging tremendous our business our have XXXX on our all created capital focusing capital flexibility. and behind excess right and our program model allocation,

commitment a X%, to all growth framework and financial allocation evaluate programmatic established With continue built upon cycles. flexibility, a we will to dividend opportunistic share we to repurchases. disciplined thresholds to growing our meet return value opportunistic X% of creation through that year, with this combined capital across capital and shareholders longer Last through our term financial

sustainability a to our embedded strategy success. our it our our framework portfolio as our long-term for necessary in with serves and aligned solid foundation is as comprehensive culture, Finally,

line is bottom The this.

the our Our strong new. to company it further our forward I model that unique business our look of than been. ever validating execution. is is recognize We platform has stronger stability and today relatively through

step one how taking evolution of business the our report we're results. in and we additional Today model,

one integrated segment focus. to with We match have more to and need Generation, a we distinct our realign businesses regional business reporting our our company. we having from the two way to strategy and Retail Therefore, operate integrated

the segments Also, the sensitivity to regional and impact stability the Slide EBITDA new and platform. importantly, EBITDA now business the of level. have Turning highlight structure will benefit common segments sensitivities. of better we're our market at the These of introducing will captured the a full the it new is X, integrated

manage from for The chain operations exactly this we format, value buy driven the Texas market. by will be will that segment operations. new we In plant either market costs from is the we include purchase while the This power revenues or all Retail, how business. wholesale will to and power be plants in primarily our the activities our fuel customer

all cyclical The activity in reinforced East this in sensitivity and long-term generation by in slide. segment, of assets The from this. segment the counter all power is results bottom to this non-Texas which two limited shown stability the earnings include of prices integration customer will these businesses

Generation. will is and region This Retail have and balanced not both costs Therefore, for between continue to each fully business. revenues we

to so to asset. model have integrate. cost, competitive better only of is replicate revenue can in another parts, This there lack conventional fully no California, focus is integrated two and one will and retail lease the Cottonwood West a the The Our our segment we segment international projects match since to ability includes due in and markets. renewable generation interest these our

as East our and it integrated, the the West impacts. structure not changes believe in better Because sensitivity in new segments power Texas. segmented to reflects and We prices regional not optimized operations are is these fully are

financial that, the I it to review. will with So for turn Kirk over

Kirkland Andrews

disclosures those Thank of that XX, I'll business distinct more on our Generation. reviewed. and Slide In our a no reporting model segment our managing bit provide you, integrated segments being Retail on just Mauricio. with operating we're lines aligning longer new Starting detail involves Mauricio which two XXXX,

customer generation our in with the load. associated focus majority costs regional integrated customer -- ERCOT supporting revenue driver business our facing and reflect as segments new Our our particularly our primary and of a generated

will clearer better with the the by our forward. results be for we picture segment understand going financial our provide To of by and our components top produced of slide, position you geography EBITDA we've is consistent one new as integrated geographical results into of Our a the they business the help each historical way results market. segments new manage XXXX at in reflected in the translated context will our segments guidance our this the

the Texas all we our expected plant will going range and the Specifically, providing consolidated contribution customer EBITDA of and this guidance from segment our segment forward. within includes market be ERCOT operations to

businesses. and our are guidance reporting We from of will the which remaining East, remainder Corporate West include the to also contribution be of and comprised segments, providing the EBITDA expected

slide, filing our of corresponding EBITDA upper be will our further results our also based today, recast right which these both categories the XXXX an new to Later compared filing in XXXX find XXXX order analysis. on will you XX-Q results segments XXXX annually assist guidance contain and comparative X-K, annual into XXXX will in the addition for as to to a and basis restated well as of for on the On as quarterly range. our in you financials

information as XX and appendix You this today's will some presentation Slide on well. find of the

key on The as bit margins each more on integrated bottom within slide half the components of provides as within of segments each. a operations some highlights the the color the well reporting both

thinking revenue line our be retail should of as you Texas, on revenue. Focusing

While the our of purchase Generation associated supporting power, comprised our serve excess costs load in with to is fuel of economic cost load and both support generation.

will be Going segment forward, minimal. Generation revenue this in

where near comprising and energy revenue the the our In is be from our sales located thermal plants from income statement. West The exclusively retail our adequacy are capacity not assets revenue, that on will load. energy and primarily primary in our generation, and include associated revenues and East, California also resource revenues

of with will cost fuel associated sold goods While primarily again costs reflect assets. those

interest interest plant two generating as one Ivanpah in includes international being segment in and our our those remaining California, as in West in Australia. also scale our well The the remaining projects utility Agua partial

for the However, all line of method, reported three income statement. equity of the accounted these interests share and be on are earnings the and under will our single a

million Corporate balance the in second XXXX. due Slide And $XX on a the and Turning last increase margins in our of of for delivered flow XXXX, line quarter to $XXX occurred XXXX. Texas. the in from before load NRG from supply West the overall The the in EBITDA half costs cash of to results lower $XXX increase due improve million free $XXX Texas financial of million first Stream growth which million summary XX. results. largely of adjusted East, million in in robust to quarterly acquisition and was in year's the $XXX delivered EBITDA, adjusted versus with

did have for few worth purposes. comparative we this, highlighting a note within However, items of

the million of as of the generation we XXXX, the $XX gain recognized settlement liability. from best one-time Midwest as During

year. XXXX, During million, of by proceeds to our oil due we prices, EBITDA. in this which insurance earnings XXXX charge that last related to $XX outage was QX outages a the oil wrote-down recognition occurred non-cash inventories in drop of East in is to in Offsetting $XX write-down the million in the

first operations during versus saw of our outside and material our We availability the COVID-XX cost improved quarter. remain EBITDA the much in Texas Finally, the allowed no impact Sunrise west lower to XXXX. of facility from of adjusted flat

million payments, currently bad over particularly approximately as pandemic offset impact ERCOT we the we an debt through which cost $XX targeted of to of and anticipate the look will customer the the to management due However, on Fund. effects expense, of earlier balance mentioned Mauricio Relief year, the

$XX cash of to of contributed robust items $XXX during this to growth flow received free the FICA highlighted payments of flow ‘XX CARES million flow balance before quarter in of we growth, of from free quarter, the to ‘XX. we cash cash of cash you our Moving flow which before further year $XX million. free the and before Due million year, for the growth I expect improve first to last delay approximately into the the Act,

of million expected later years. in the well AMT were As acceleration previously refunds as of $XX that

to strong mentioned earlier, Mauricio of billion. As $X we maintain liquidity continue approximately

measure, as we in and ensure stress precautionary system. to in a However, on surplus maintain the hand event of banking cash the

During proportionally increased the quarter, on we credit revolving drew hand. down to facility approximately $XXX by million our cash

improved, repay and the already balance balance half. first financial back As we've the since reduced markets more than has time to by to the expect enter more liquidity revolver quarter, of we zero. cash year, we the in that And generative

an we was million to of in an $XXX activity. capital price in XXXX $XX have turning remaining consists completed which of policy. at which To-date, update share million purchases, repurchases on balance share Finally program $XX.XX new under of repurchases our million repurchase allocation of $XXX average our programmatic and

turning update Finally allocation for on activity. capital XX, a brief Slide to

unchanged, totaled repurchases in XX% Our shareholders, million of annual with now allocation XX% months as of completed flow free of year. repurchases our now for increase to our targeted $XXX repurchases cash recently to four increased the XXXX more share return capital our than executed the only this in being a part under Having $XXX our We've of dividends. commitment new million which item share framework are of this including the year first through the expectations our note year-to-date. share

on for slide accretive million capital, opportunities. available in in the remaining shown The investment of the $XXX green remains balance right of

shareholders. this of we magnitude unable consistent to opportunities, of enhancing our find sufficient allocate should value unallocated intend However, capital strategically balance to be to the we

And it Mauricio. to with I'll you back turn that,

Mauricio Gutierrez

Kirk. you, Thank

thoughts. to few you a provide closing Turning to want Slide XX, I

a clear our a yearly in but make have accountable. to sure transparent to communicate also For the we and progress used us four past priorities and scorecard years, we way, hold

some update to our we see, early As expect It objectives. a to summer company, of cash the is people in to all in months robust still normal. safe use new plan, I we're return the and our you starting the our our the can allocation good we progress in cash important summer. focusing flows of you key to And the months, as are during continue the the make of as coming excess on and generate year. capital

of the for frontline behalf thank open we line ready all want the time. responders and first now. workers our Angela, NRG I questions, are do on I before to this So they for family, questions brave entire to during take difficult

Operator

Instructions] Your from [Operator question the comes first with of line Guggenheim [indiscernible] Partners.

Unidentified Analyst

guys. Hey, morning, good

Mauricio Gutierrez

Hey, good morning.

Unidentified Analyst

your to inorganic meets for Do that XXXX? focus and million you retail stock shift of maybe the potential cash point, of environment start-off see year. books Maybe anything as of buybacks is sort sort of opportunities? of you here. for from PCT program of the ERCOT there's we and Can of unallocated at opportunities the relief maybe of Couple look where a sell second further questions you little trading pressure of There's some So your -- is so Texas. little the take and little you obviously $XXX can demand potential a given -- of estimates the the could any highlighted at half retail bit bit talk about the and bit rate smaller you landscape peak the some rates, in especially of hurdle off the here? the of lower maybe kind this

Mauricio Gutierrez

Yes.

that we has the stock So, M&A that on where the we think well, no I I definitely higher believe our is mean, monitoring I I said, and Having all because you side. And of as the opportunities changed environment that, will significantly are said mean, is. undervalued. thought the say bar

needs company. buying we're an growing our on on be focused way our it retail to going own not relative an to absolute back hurdles. basis investing our financial superior only that but and continue to absolute basis, do We relative needs be a But, our basis to stock business, to it in in on our a and meet it also on hurdles meets

XX% plan excess my on going continue monitor prepared going going our of we're to is actually I most excess to said And the further to go give -- before as to which an clarity make that. on of on capital summer, cash. we our update our remarks, we're and give think So allocation you cash, the through I where we're we additional

on we So that's are where allocation. that

Unidentified Analyst

upgrade? seeing -- displaying the then agencies sound risk little I more comfortable to as competitors. sustainability you a the they prepared are I And of and today business clearly, is timeline we more around the your profile going bit due it. retail like on remarks, the IG mean, one Got just of your just the specific give IG with maybe segment? doesn't what some can conversations slipped on Mauricio model. getting mean, you're the by of you're it saw And your with COVID, an

on sort conversation that just So update of is maybe a how quick flowing?

Mauricio Gutierrez

I Yes. very that Well, Kirk say I think with had mean, on what stability. on will we further he's demonstrated will again, that -- stability. and I a tail And turn because well this us event But the the is, turn executed to once over provides I it them. direct have platform -- our on I demonstrates year I mean, it conversations

have rating They're to agencies. have that to we two investors, our in to also respect. not we demonstrate these as demonstrate So different that

about just Kirk? to I'll hand the talk it but So timeline. Kirk to

Kirkland Andrews

think so would covered as Yes, well I some the backdrop Mauricio. I give of you

overall, very our remains and but So positive. dialogue with agencies active

say towards our to us under at appreciation conditions. fact satisfied our we that opportunity favorable And, sheet. outlook, the that platform it's argument just current balance us extreme have our I provide concurrent outlook performance and uncertainty the be our of mean not well in obviously, our both think provide backdrop as alluded both positive their upgrade. with would that as immediate events to, looked broader to a underscores a economy, said, overall, set circumstances, they But further as as I performance for continue upgrade. certainly the our And maintained the But our I strategy. of prove for an Mauricio and in an would given resilience

the mean, I are wait near-term, it and if ratings think understanding will to see more approach you likely agencies I prudent upgrades. that's in to take

So that's it's reasonable six think I bit not objective little maybe forward. assume extend our for have us that we the may the or be about pace months But to timeline to reasonable that a Certainly, target. given the agencies, leverage overall, But I with current circumstances grade performance, were at in level, the we're those continued confident remains in. on based -- our which line that with with we're dialogue achievable our investment targets.

Unidentified Analyst

then portfolio detail just pursuing segment. lastly the And provide just East, bit Terrific. on little you additional Can rebalancing West for a there? more

Mauricio Gutierrez

think mean, optimize assets close or [load] I said to sure. the value maximize location that is to Yes, value. value, significant of we pockets. I and before is and goal I've our is There monetize and generation -- recognize it our the are

just in -- when like plans, have time our all very on we business on have focused the rebalancing done but of more when we are we So the Texas. clarity we'll to them communicate

going to goal Our we're in to what California. East, monitor happens is continue the and rebalancing

So that I that's you where today. information -- can give that's the

Unidentified Analyst

results. Terrific. Stay congrats Thanks, the safe guys. on and

Mauricio Gutierrez

you Same Thank to you. much. so

Operator

Julien Your next is from America. of question with Dumoulin-Smith Bank

Julien Dumoulin-Smith

Thank Can hear me? morning. you. Good you

Mauricio Gutierrez

morning, Good Yes. Julien.

Julien Dumoulin-Smith

little even the to all know how the commercial, and for customer relative within industrial, here. on you you but you what as that but context thank Retail attrition a you. about up if residential to would up follow you offset the you an current here within integrated the I'm positioning I are example, you're that year your that will And illustrated have more? well. all instance curious let’s talk might perhaps platform, seeing see given I guidance, be you I'm of I guidance ‘XX quantify the curious, trends residential about sales how you do yourself on Excellent, as hope sensitivities successfully position trending wanted business bit think

Mauricio Gutierrez

guidance feel we that comfortable provided you. to I reaffirming so Yes, the range

quickly seeing our economy that, reopens. think monitoring what happens load. customers inform we're to I and customers the how going And that's and we're with

April, pretty on customer what to C&I. and it's show residential business wanted compared think significant in to increase we I small to happened and the

I see how come But mean, work. back people as said, to I need we to quickly

the normal of going prices. also is the West on to going But not it’s Texas. because very, and to C&I. that's small oil perhaps going think I but only We're residential that's businesses to back help impact to bring very COVID-XX, focused evaluate,

terms we to think I quantify thing And fund important what to the are far, impact the in our so -- and wanted of take to looking going management that. on cost at COVID-XX. both relief the estimate initiatives side of is we're is, offset we the

But, mean, how of is quickly how I Outside people we there steps all the to to assess other towards going residential I I that see heavily Obviously that, the things mean, states the so it's just think to that our portfolio still lot hire. But we many there consumer. already control, are reopen first don't think -- a need encouraged we go the quickly open, is mean, economy. assess. to I I are of are Texas to taking weighted the makeup out.

Julien Dumoulin-Smith

don't I less the do versus then in remaining allocation fair mind of at definitive to buybacks, bit growth how moving on capital about when [technical little kind it, over think just around and them? [technical I enough. they a difficulty]where you have mean point difficulty]you a And capital on sense taking a [technical obvious are get thinking more of get allocate?. perhaps you're we point, you this and mean want definitive Got growth of difficulty] to the to and believe sort that of allocation

Mauricio Gutierrez

on I our really first, allocation, made I fulfilled we have progress dividends. capital mean, we've commitments good Well, Yes. think new our with our

I see very our going not the we're to [indiscernible] buybacks. share of call, think on I pace of last be said, in significant I are undervaluation stocks. We but ahead mean, the I I'm our programmatic, and

the feel And little the evolve to the of So of little additional until you're that's confident this things That's mean, couple provide on excess to cash opportunistic you planned mean, we're back you cash. the for that more couple the other been to I pace. has your in what quarter that we're provide our then months. year of that visibility of in if in of -- I I I see were question, earlier -- excess than bit can the growth. for we wait a months, not going end that want clarity. actually of that, and clarity how implying. next XX% year, provide more I more come early but to a I next going ahead we're to mean, it's

Julien Dumoulin-Smith

attrition money obviously, the referring question pieces. those to to two very to I on and here. be respect you're to With just concerns last about debt specific want balance, -- just Any clarify And but bad trends.

Mauricio Gutierrez

items Yes, like been payment by together something they customers very I with -- are the mean working to financial debt is provide we monitoring to bad impacted many a program We've closely relief in have we hardship. those that customers. very to because COVID-XX. are And, been of the have that put closely customer PUCT

COVID-XX. I an with levers offset through relief you fund, that the -- their we mitigate Obviously to that. activating going we're some have on provided of What but that items We other costs PUCT that that work to already of have one-time estimate with to think already as a we're what also, we could a due described to we be. make impact sure

Mauricio Gutierrez

you. Thank

Operator

from comes with Stanley. question next Your Morgan Stephen Byrd

Stephen Byrd

doing Hey, are good morning. I hope all you well.

Mauricio Gutierrez

Good morning, to Stephen. you. Same

Stephen Byrd

anything talk that developers the given and you I I some of the wanted new might challenges could off-take?. that and opportunity sort increased results but these for find good on disclosure from rather didn't smaller -- takeover that opportunity. to potentially up, renewables distress definitely potentially funding the the create an here? about to Congrats know would an are potential -- helpful. have, of projects, own of simply time projects actually relatively modest hard In a words, than companies sort just capital of having their for actually some development you other be

Mauricio Gutierrez

strategy point, Well, this I I capital been of this on is mean, in we're terms our prefer executing. at mean, that the there, at And I our ownership. done focus the we've that light strategy. point,

I didn't time. sign we PPA this any new during As said,

just given that don't remain it's going in development pushed active, an But, at renewables we should an give is, ownership that think to to -- an indication a we're are perhaps has in push we I little quality the point, We this slowed very So that active. thing sheet taking think we projects. renewable see continue and the very these, should we're given our you ourselves down bit, of out where that this of be high of balance the excellent I company off-taker projects. have, signing Texas,

Stephen Byrd

I'm range the usage things, thinking, Understood. seems terms demand just residential in fairly see greater to be important higher continue the towards would range? how the that and remained are And guidance push put home maybe to X, attractive and demand, of to strong on of the you respect more if that into fairly over that margins And there. the would demand have demand that people end summer, be shifting helpful. trends you that or Slide at just perspective of I be of the overall and throughout the the side see on if meaningful. meaningful I strong high is The provided was of just which from a then guess, guidance would outlook we differently residential residential that. we fall

Mauricio Gutierrez

portfolio about that residential And increase are Well, mean, customers. our where customers. think is primarily guidance I to the have it's you demand without from we -- Texas is or be important in actually in those in talking to I not, seen I it an going mean, recognize

increased summer, kids people go the is of people you come mean in of the recognize they than are to. in demand back summer a out lot what have Now, because school months, bigger you're the the already electricity. using months, I much as to April, you normally just perhaps see going into that summer

don't of we to see expect level the impact we in seen have into go same summer, the So as April. we as the

to small quickly also So back. going how to they it's economy gradually, going and Right, I first. businesses perhaps comes capacity open at not full the they're on mean, depend open

ultimate early our too trying tell impact to assumptions So start make terms in -- some think that. of the our to in to of we're be sort assessing of it's what portfolio. would I But

to exposure so control you trying the we things also mean, we a X% there's X% significant because great residential for many what be if were that pretty it, have that's that's cautious balance increase for on here. I to to Obviously, have year, that of the us, imply, a you don't if or increase I but demand want

very We are we well I think are -- positioned.

it, well. our and that. are I our to control, we monitor think our just outside that risk see if And we that there and is you. we company -- the managing also mindful that we're But communicate to we are of things lot a need of

Stephen Byrd

Very fair. very much. you Thank

Mauricio Gutierrez

Thank you.

Operator

with of from Our line comes final the Arnold question Vertical Research. Jonathan

Jonathan Arnold

good morning, guys. Hi,

Mauricio Gutierrez

morning, Good Jonathan.

Jonathan Arnold

I just of Thanks new modeling for question a have on data. integrated the the portfolio all update.

the to are you net that that basis? think in and I help reconcile think just us in sort on given how of ERCOT, power through integrated just an positive sensitivity you short prices can

Mauricio Gutierrez

Yes. just net start me that not we're let saying Well, by short.

When assets Retail. that that's obviously we try and I two Generation assets we're current market. think we we when these complement I are Retail our that to between common year, a going production -- purchased Generation from we the that to we the plants, think from this couple the and into I've of into megawatts going our I assume that’s heard a load. should of times But perfectly and optimize current we go misconception. year, we the balanced mean, have

short. say wouldn't we're I So we -- that that are

Generation parts optimize In not levels the these Retail all of of two interaction between integrated the also terms basis, that the these -- which we this of sensitivities but the EBITDA a sensitivities, and ensure I other only margin to business. at mean, gross are on some the now that we have level,

the of small down trying the bottom the regardless So what or of as a our them sensitivities is I is platform make I we're as really go sensitivity think is line possible. do, -- minimal. whole stable I to they mean, that's mean, idea whether those prices up

but really Chris? do just that's it key the have since you I'd Chris, you about anything of talking turn over like -- to to think – takeaways we're management, I add, position what else to

Chris Moser

whatever you're XX terawatts One XX bit we've about Jonathan. of terawatts XX -- a -- because Hey, Yes. and serve assuming load is the expected to looking terawatts the you're got generation. little net think I'm way XX, getting short we at and math

Are true delivery. So you're of when you saying where's if that it guys couple think a short of the But are yet. years, you there? about all comes XX? numbers we to other out Those haven't sold

opportunity price the have to We through pass changes.

price. and the over short not can that you time. all the price think we're that that. And out that not on That it's a about there right? fixed short XX terawatts helps price to it's years, price flex fixed rolls little next bit. So fixed And change in a we for if And five for extent short modeling eternity

Jonathan Arnold

spend recovery did of year that of disclosure. Should And very that other hardship you that. slow some if of economic is or new Is we million? bad you persist that -- said something And just mention we’ll time a number, for one-time. would next an something Mauricio, you this that should number? portfolio I wide follow the we item No, or the Thank a that into would kind that? helpful. is one of you you continues that as that have think we just number think Can debt account $XX we that on mentioned

in one your just of comments, frame little further? I think a that maybe

Mauricio Gutierrez

because very to specific mean, impact a items, to COVID-XX is the when portfolio Yes, is And whole. that say which customer I them. I debt bad is it no, related as for one this payment one-time is of of

need this is as portfolio you it one-time, COVID-XX related. for the to yes, about a entire and -- think So

Jonathan Arnold

Okay, thank you.

Operator

for I like turn to back would now to Gutierrez Mauricio remarks. call the closing

Mauricio Gutierrez

NRG. looking safe talk well, thank to Thank talking you your interest couple the and you And in families that Well, thank all I your be you, weeks. to you you to hope you later. are for next Angela. of in and you staying and and I'll

Operator

today's for conference participating. you concludes That call. Thank

may disconnect. now You

NRG Energy (NRG) 7 May 202020 Q1 Earnings call transcript