NRG - Earnings call 3 2023 | NRG Energy, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the NRG Energy, Inc.

Third Quarter 2023 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Kevin Cole, Head of Treasury and Investor Relations to read the safe harbor and introduce the call.

Kevin Cole

Great. Darian. you, Thank welcome Call. and Energy's Quarter Third Good to Earnings XXXX morning, NRG This in webcast, XX being be under section morning's will call at website minutes located the over www.nrg.com phone of our be and broadcast the length and can via Webcast. which Presentations in Investors live is and

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

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

our For financial NRG's today's now most Mauricio over reconciliations directly refer to And to GAAP and turn with the measures to measures, that, and I'll CEO. please call presentation. information comparable regarding the President non-GAAP Gutierrez,

Mauricio Gutierrez

Thank we management morning, the morning interest this thank NRG. and Chief in of Good members for everyone, you joined your Bruce available questions, Officer. and for Also I'm call Chung, Financial team. on have the by Kevin. you,

review, Before of our start I'd we value the go with into quarterly proposition. to like an overview

and maintaining strong and our shareholders customers benefits center that X capital significant complementary to its increasing lifetime a we the of generating the customers' the the transition, enables well last a our the beyond of while steps economy return flexibility business from at have our years, NRG optimization energy that needs, the our consumer home to significant greater cash Over sheet. business taken of the to electrification financial position balance necessary increases business smart excess energy demand while value a of energy

compelling business into to future. And have deliver value As we importantly, the you today. we well value can delivered see, positioned our

the to our like Slide to presentation that, on with X turn X. earnings of key So I'd messages

financial and quarter we XXXX First, raising both third our are results year-to-date. operational driven by in strong the financial guidance, and

initiating to plan you are map, are XXXX XXXX behind-the-meter sight Investor at with of achieving we on Second, accelerating guidance shared our above road and Day. our homes management we And our line we load growth opportunities focus with financial finally, June businesses. the for

business This adjusted with end delivered top top safety operational were indicated to performance Starting our driven of we increase Slide strong our billion of range. last adjusted On call, guidance that the results We $XXX same a year, Vivint year-to-date the by $X.XXX last results and XX% the earnings of trending towards million quarter above we brings prior the our addition third improvement EBITDA, XXX% the primarily X. a year. and on EBITDA, from of period across performance decile the

outperformance and With which strong incentive year, third and of balance the the close our given increasing STP quarter the ranges, for guidance includes expected in and year. narrowing the of plan we for XXXX performance financial current our an annual the the company's outlook increase are

$XX XXX% $XX on priorities. are we During million growth the again well strategic with in good a XXXX Vivint quarter, raising is and set from make May. our is increase our initiatives, our success we million. target progress target underway continued on to early to our from $XX This integration million original

and portfolio sale in of our continued of the our during quarter, station Gregory STP. retirement power on with Also, optimization and executing interest the Joliet we the efforts the

allocation. capital to Turning

XXXX We repurchase are raising $X.XX our target by XX% share to billion.

expect [ repurchase the to accelerated ] We program. close execute the of million share remaining have share year-to-date. under repurchases with $XXX of million completed $XXX STP, And an

more our section. details of Next, debt will provide reduction of liability program. million in have executed part his as $XXX Bruce we management

we're XXXX guidance our Day June Investor initiating ahead Finally, financial of plan.

earnings allocation, of to allocated allocated our growth. capital business. expansion and On capital and remaining growth strengthening high-quality excess return of million on to and cash durable debt $XXX XX% represents reduction XX% we overall is This and the

to our integrated summer the in breaking for on energy market, turning core XXx. the peak hottest an X business. Slide update experienced previous record Now demand Texas our record We on

the low. quite scarcity output record only given power periods While performed renewable with few of grid it was when was demand, stressed pricing well a

resulted increase efforts our the our and in reliability. summer in we Importantly, program significant plant readiness spring undertook in outage a

In and business Retail relevant better-than-expected saw in-the-money the with in-line a are availability, a indicating growth retention. through they strong during profitable, customer for of when the bottom which our shows is our the performance and chart metric periods is left-hand availability our improvement. units significant quarter

with We app increasing engaging continue average improve more, digital our monthly experience to by XX%. usage ] customers [

Moving The to providing scenarios. have in loads were successful costs taken predictable different to supply retail strategy our supply. and price steps we enhance diversified under supply

winter our and summer ratios long lean adjusted hedge Beyond in investing we in to our months. plants, key

are demand this we Finally, response XX% have increased by efforts participation our residential and beginning in year.

with also Slide the under in of more opportunity a you We behind-the-meter large will response management. gigawatts later demand margin X. and expansion, as the can Home strong presentation. see I growth well C&I also provide X.X managed performed customer business business capacity on with on color

that of our the customer industry in experience best new platform is innovative consumer recognized with advance launch to as continue products, We improving consistently by our technology the publications.

right-hand indicators last the introduced key earnings side performance slide, will that the in On you see our we of call. the

of the year, same in X% X% smart results. products higher quarter higher consistent by than costs margin period We rates, growth performance service more with due continue revenue sold new Acquisition and on growth, interest offset see impact are subscriber reported subscribers. versus and were but we X% to home higher more exceptional the to being revenue last improvements with second improvement our in the

with of engaging for staying time. are customers longer and our are Our platform a more period

opportunities that and arising the are are We business home. the performance very we're by the seeing encouraged the inside across

management provide on to I Now Plants meter the or for demand behind the see Power Virtual X. opportunity want an Slide on we update

We growing residential programs opportunity a for commercial we energy the are have been managing seeing for industrial customers in years. now optimization and And space.

distributed technologies of providing to penetration control the devices consumer. have home industry, in materially the and greater growing New connected changed a the smart

Grid flexible peak load adoption in or in for to X demand represents reliability also the accelerating role ] peak create has capacity conditions. as see is We instantaneous us this [ value played when market. in primary pathways a grid at in scarcity

reduce customer ERCOT peak through First, energy risk. we benefit our where capacity as existing from and in and PJM well can demand value market as both optimizing

and home customers, competitive VPP services through utility and for Second, smart markets. in both regulated

positioned space. win this uniquely We to are

with to the that customers, integrated change. without of million regulatory allows wholesale decades or requiring and commercial monetize expertise to go and have X.X to scale an having market the value We NRG the market energy business

We country. also program vast response demand in data have insights and commercial from and the industrial the running third largest

to future. these focus term and progress Investor value continues is optimizing and Vivint, providing our to This programs. near not in core the on you see While integrating a forward included medium opportunity term, the significant be our I plan, the Day updates over in our June in value look from long we and our

Slide an XX integration our for to on Moving efforts. update

initiatives targets recurring million our across growth totaling progress the flow before are end of cash of full free and $XXX good by making are reaffirming We the plan XXXX.

to strong XXXX growth yielded cross-sell allowing and million. have increase us $XX our results, to target growth Our efforts

across the will sold or other the highlight buying want includes is customers number home, energy On more NRG but the generate revenues. cross-sell between not I right-hand see that products you products. consumer side recurring increasing of to of slide, this smart exclusively X and that

presentation, insights critical ] We will scale and our to hard and latest today's energy XXXX cost we been In so have at appendix executing find growth collecting the [ smart cross-selling as and of home progress. pilots track and you our work beyond. can plan scorecard, in you prepare

the will So to it with I for that, review. financial over pass Bruce

Bruce Chung

Thank you, Mauricio.

quarter to which financial the of performance XX. year-to-date $XXX the NRG's higher year. million XXXX. is of quarter, last third significantly exceeded Turning period million same adjusted EBITDA third NRG the in Slide produced than $XXX quarter and

and still when of the not million. included record margin to was our EBITDA, XXXX core our the XXXX results. by improved chart was increased $XXX year page, even third year, driven in business and results the million from Parish retention you expansion operations and margins, transitory in business normalizing of a EBITDA energy near the to which see expanded Vivint by the $XXX of the and energy quarter for As customer in adjusted Compared our can performance exceeded items . Similar continued million XXXX, quarters benefit WA normalized XXXX of outage, XXXX $XXX the bottom to count. prior core X at first

Texas. in provide to through and price plant costs strategy conditions and solid continued supply volatile diversified Our predictable load supply performance

the at starting the Texas. by million Looking $XXX prior our on of and EBITDA margin back higher segments gross of Adjusted year $XXX of increased million. versus

lower costs expansion supply coupled margin. margin performance increase improved Continued unit with for were drivers gross the primary in the from plant

increase margin earnings company's segment, declined annual was by outperformance for West selling This million home the increase in of adjusted the increased Ivanpah from year, discontinuation as financial lower for the $XX OpEx In marketing where we by customers increased offset XX,XXX partially versus energy and gross higher and East in year-over-year. last of an the equity and incentive year. reflecting primarily in Cottonwood, treatment spark accruals driven spreads part expected EBITDA plan,

grew financial in results, X% million revenue with in driven contributing subscriber, cost by of free driven continued represents in favorable year-to-date combined in subscriber quarter, $XXX for which, increase million. EBITDA. Vivint totals strong adjusted In a to per growth X%, year-over-year, significant higher customer, EBITDA. by over cash monthly improvement QX, service retention a per bringing was XX% adjusted Revenue drove compared before to growth $XXX recurring to million NRG's monthly and This XXXX. deliver growth XQ XXXX total adjusted flow The EBITDA $XXX our the reductions

represents billion and performance, As guidance raising adjusted EBITDA to $X.X a free $X.XXX our flow our for the midpoint growth ranges. adjusted guidance a of $X.XX billion flow before XXXX of and guidance million ranges. our full in year-to-date financial we midpoint cash a are original and in billion of to of EBITDA billion to $X.XXX $XX our result $XX free year increase cash increase narrowing growth. The before new million

our XX Turning allocation. on an capital update to XXXX for Slide

sale free cash to cash proceeds our excess final have quarter a the remaining reflect with of we interest on the to second our STP, Gregory The the in the are exceptions. divesting earnings for net from notable this slide numbers flow our gave and largely proceeds consistent midpoint XXXX few with increase update the year. of We updated the on call the net

XXXX Vivint and $XXX lower reflect not to a million but cost Moving have associated capital on we integration from the left we This rather XXXX. to updated the does of will with million. right, integration to from those spend shifting $XX dollars

by line Much driven with of for shifted costs debt which as reduction you year. to those see the we target $X.X debt be toward the of move made the is in on, this time achieved integration systems have XX column, significant our October reduction in progress can million through Continuing decisions, $XXX of billion incurred.

transaction, $XXX closing liability With by management we the debt of targeted a of of the the complete through program. reduction the million STP remaining XXXX will end

Finally, moving to the share repurchases column.

$XXX time thus recently we includes completed million of XX. of You completed the we XXXX. the we the far at completed $XXX This and in quarter will second $XX have that earnings the call October repurchases see million share on million

the Investor on what million With launch program, XQ repurchases $X.XX for year total completed $XXX Between Day than a STP $XXX to share earnings. $XXX intend $XXX billion, program the of million share closing transaction, imminently. already million accelerated which million had we the we is accelerated and at more be will repurchase our the communicated share repurchase the

Moving to Slide XX.

excited are our introduce XXXX. guidance for We to

range billion guiding midpoint XXXX We are a billion, with adjusted of representing of billion. EBITDA $X.XXX full $X.XX to year a $X.X

with free $X.XXX cash growth a $X.XXX range midpoint of We are billion to billion. a guiding XXXX billion, also before representing of $X.XX flow

lost year-over-year a As EBITDA Incremental reflecting from the sales. full asset ownership the see worth the are by you the offset Gregory STP dividend EBITDA, of at and is year's effectively on several bottom guidance. can of the of chart drivers page, there

driver contribute our and midpoint. results of continuation but final cost operations margin Vivint an million XXXX synergies a our expansion offset partially contributes million improved EBITDA and reflects $XXX the $XXX EBITDA, and growth The impacting the to is harmonization by increase XXXX of plan in Our incremental adjustment.

pro see, forma can of operations guidance in are improved the our On you allocation Slide XXXX the midpoint XXXX and margin XX, providing our expansion, provided we As our plan. Day plan. exceeds with impact we capital Investor

we return of XX/XX As while adheres our you continue reduction versus allocation can commitments. ensuring see, growth principle to meet plan of to debt capital capital the our

for calls currently plan million Our $XXX XXXX. of debt in reduction

end we on path sheet, strong to ensures said, to we committed target XXXX. remain the achieving always credit balance are that this and our a reduction metrics of we've debt As the by

Our Between note. high in June, $XXX to common our return strong million robust $X.XX We XX% dividend common show shareholders. and repurchases of And in of performance expected we million in company. results operational the head to reflect of capital position focus are XXXX, repurchase financial and dividends performance return a our of executing XXXX year plan enter of is common returned on $XXX will and dividends. share back over per $X.XX. not we $X.XX summary, In returned we the the increase out executed to XXXX comprised in maintaining Day billion with and share an XXXX into end from year-to-date capital and share will remain of increased The high guidance, and quarter Investor of authorization have year. a capital committed on the a to poised waver across our our similarly current close plan third X% in the as we level shared the the

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

Mauricio Gutierrez

I Bruce. on want Slide XX. closing a Thank today's you, on to few provide thoughts presentation

NRG all moment my you X-year keeping in Day. on their take achieving and can plan are key during Investor at these all have progress colleagues work of execution want we you our provided priorities to focus significant also I and of for made thank As we results. across for a see, to to hard ahead the our

right and right We the and . have value well strategy exceptional deliver the team to the today into future.

thank to NRG. for and want I open for we're questions. line now ready interest you in time that, with the your So to Darian,

Operator

line Guggenheim. Instructions] comes the of from of Our [Operator Pourreza question Shar first

Shahriar Pourreza

much improved we margin models ops just is how that more. in to refine and as sticky a look margins And expansion? overall 'XX the our out calling and of unpack walk in little Bruce, 'XX can How guidance $XXX the million beyond you EBITDA that is that we for

Mauricio Gutierrez

Bruce? Sure.

Bruce Chung

Sure.

the pretty I think would So entirety you really, the when million, $XXX of complex. margin across the about much expansion that say it's

we're So of on if we expansion One business, really about think fronts. management, the is cost seeing supply. margin our is on home X on revenue energy really there and

the targeting is have side make several durability the we past a of done to representing data-driven our sure then really that really revenue over the So we're proper think when the you about And years that's better that, revenue around the history. management on of supply, and cost analysis it of benefits of function to performance efforts really relative diversified strategy rates for general plant the customers. supply of just

is are On seeing would margin expansion which durable. we the there, believe also side, we C&I

volatility those revenue in we tenor. customers As obviously, been has in there the higher And know, locking to volatility. and longer be reflecting contracts market, are that tend rates

the higher as you the business. well customers, saw the optimize KPPs, home again, then should smart front as also we subscriber expect we also on that revenue durability. side, durable. continue And to lastly, to nature serve that of expansion as And are revenue the seeing with margin to we lower those on given continue piece long both be and And to duration that so cost per of provide as would

margin the on all, in expansion side all higher So with durability.

Mauricio Gutierrez

mean, improvements I this we the reflection just have the year. see really them as the and for is foreseeable sustainable a Shar, in So I done durable, business, of

Shahriar Pourreza

XXs. it's it's conversion Perfect. through in target I Day, the indicated rate you've the see to how kind Can at the us XXs. you mid- models? that plan, high to up your just cash take, high looks to shape Analyst of update flow stepping step you continue that may And walk to Mauricio, up also is the what mid- we through i.e., like and know as our the linear 'XX

Mauricio Gutierrez

you do Bruce, want Sure. to...

Bruce Chung

that to that that from will we you focused think -- if million some the $XXX a most conversion Vivint of $XXX linear conversion going Yes. remember, increasing remain if we right? free by profile the I continue think at because going information sure, come would to on I provided you don't is improvement at rate. I flow be to end cash say, from of growth XXXX. so it Vivint, And conversion showed million

the increase So basis. pretty flow in is going on steep that's that Vivint, really drive cash to conversion help a at higher go-forward which to a

Shahriar Pourreza

seen you Got I just question, how us -- for seen guess, the there's update right interest just know existing obviously any can on We've [ you in new I just it. then ERCOT. market lastly, a lot we've have you're the Would a Perfect. of strategy on kind builds And plants? Colin in of now. assets ], approaching secondhand Mauricio, Textgen. prospects in a

Mauricio Gutierrez

actually as Sure. Shar, you diversified our supply improved strategy. Well, we know,

be Some of own it generation. through will

be with through complement market will Some rent and to purchases.

at So looking facilities, from brownfield the economics or as to assets options development. from renting those the market, constantly internally either between and team develop is buying other buying creating the

at So we're looking it. all of

the We risk, economics. market we At risk, permeates that criteria are these evaluating the are options. risk, of all we're on of operational doing balancing the the counterparty evaluation end day, that

market to awaiting going changes still and to the other to we're to shape improvements incentivize make. dispatchable That are decisions also in that We going is see generation. design

need just construct available be in -- a as in can assets linear given to we to what changes see the are So is development. on you market and tell, also regulatory myopic bought and in ERCOT. be view the incentives this not a to really the

ERCOT the that we're I steps said those So to end we're is towards, visibility have take. to year, going the going would in that going say, next have inform the to of before changes I on more

Operator

from Dumoulin-Smith comes America. question of next Bank of the line Our Instructions] of Julien [Operator

Julien Dumoulin-Smith

we bit a buyback little a a technicality. the you on you just Can what first in remaining for -- XXXX. checking here, talk portion big just Look, have call

your to might be to to especially guidance given also want to You that initial plan? about get additive kind then proves talk the And done? your numbers how that XXXX versus here, higher ability that of

Mauricio Gutierrez

Julien. Yes. Sure,

means and going we're fast mentioned, it characterize what as we the imminently, we're ASR, we efficient as will that as execution to As as do going that can. the ASR possible. to do of And and as soon I

the I as spirit this the that's as soon think intent possible. ASR So launching and

Bruce Chung

vast pretty we ASR, for able do basis, Julien, purchase just know, having you banks takes immediate properly. when been an on and much add I in shares but the would it be those bought as that of an realize obviously the you to the majority shares to time go

on so first And because the we program situation us, my that's But completed guess be probably then is, quarter anticipate year. will a would the that of pretty next ability the of inside related good repurchase way that continue our the maintain to into then regular XXXX actually repurchase plan to a to provides program to front. share momentum of allocation really roll the capital to

Julien Dumoulin-Smith

comments in you've is, how I've feeding see back that. and I this a Got pivoting do this there. that. there's that that I -- done of I really then an But scaling that certain of about remarks, talked are nicely your you same choice we nicely But mean, and next really what how how on up meaningfully you customer it. prior today appreciate done in time, you're on that's opportunity you up mean, the you of on just talking here? in some distributed Mauricio, 'XX, And talking I the elaborate. here? into the earlier, that do on 'XX? virtual talk obviously, size. sticky. I it in keeping could a, Maybe a little When heard very if necessarily piece presume Power comments reflected here. presume at call impacting does Plant meaningful opportunity election not see degree bit

Mauricio Gutierrez

Yes.

we is at So the investor first in not that provided the opportunity thing say Day. well, will I that Investor -- the plan is this in that included

is this technologies is going was availability I experiencing I would than thought X-plus year say a and of to second this a up is are to going scaled that given year. say able be be we X-plus thing today, will to scale-up initially What that of opportunity. this The the and the we be are focus I it's just accelerating the opportunity. implemented that. faster probably

that we what numbers I And think realistic on some are provided can I initial very accomplish.

X VR portfolio summer, represented past than gross to So position $XXX the gigawatt of gigawatt close for currently Texas this you less ] margin. of [ if And our a that look peak at it we million X the serve. basically XX% load in is

here that you some talking that a not So opportunity. small indication it's about just gives achievable. very And you're

here a You're about very large talking opportunity.

available about The say demand. to other plus will we is that today, thing this product I the we're to leveraging help devices the protect really that that distributed that talking is use consumers homes optimize technologies

conservation customers. think of opt-in and effort This about a about as -- optimizing is our effort. Don't convenience conservation this for

So different of that response. NRG market. energy very an this. this optimization to we're And that something the why with consumers are as demand able traditional because consumers, is entity is want. an the to scale monetize we're wholesale uniquely but is product today. why something VR. more That's is a to as this it of That's it that NRG opposed do is excited a in calling only early provide the to demand value that so on meter be That's from other the traditional mover not no can we the that why There to positioned behind

Julien Dumoulin-Smith

Excellent. Awesome.

from expectation more these margin of indication very what When in clarification the here or portfolio the right? Again, perhaps an from I I should question pattern get of with transactions we kinds Gregory about margin quick specific that a the wings. of the last a [indiscernible], that saw the you are of here divestment asked divestments Gregory Just of he over on that was move your continued Shar. [indiscernible]. acquisitions We time, set you as presume is

Mauricio Gutierrez

load portfolio serve we at in ] remember, the for is we're, talked necessarily most already built We done market. not is provide best host. to the flexible. [ our can to is replace block it the part, It not to mean is of that need a a plant front. steam in the what way. also driven was This -- great I it our it's very think specific. I optimization optimization length, the was possible power, on by that Gregory I doesn't move. basically

So we it -- do or really flexible didn't a the attributes characteristics the provided wanted from that the asset.

think and would after Gregory I largely done. are I optimization STP, efforts our say

Operator

from comes Storozynski the question Seaport. next of from line Angie Our

Agnieszka Storozynski

So first, on Vivint, so working out how is one, I was just your you wondering the if to you investor activist Vivint for heard on and any feedback about from stock. holding

one. that's you with the up So two that is, basically attrition. of at number One so number Vivint, main of And least the stuck me positive ones a lower on mentioned is updates

So that yours, lower rates it fair what's like migration would as interest ever for business is a your thus to think rates platform. and feels Again, actually the not say benefit but it something link higher I way. is a higher benefiting that interest to

Mauricio Gutierrez

Yes, Angie.

what company I'm So me our to first quarters then help them not represents. pleased strategy. better that proposition with to . I the the what but we going at road, And it's second the I And has of they're a That's this That's our delivering the or answer very to is help the the seeing the in team on to have basically power that value to the think team, results we're And ask And to delivering. value whether understand better Rasesh entire electrification The general, represents execute strategy one, the strategy also last is the see as as of manage all the grid regulators, the you're to let in to a commitments as just can that focus. I to our and focus a will ISOs I But Day. going company to that am take all question. come. demand see we opportunities the strategy. on management our that to say investors consumer activist participants to the it and been X talking is think benefit appreciating are that market And the given been Investor in starting to the focus. do consumer consumer you shareholders. we're them we and are on better I your that shareholders, greater understand of whole, years that provided whether management the

I finally second question So address the that's But Rasesh, you think happening. can it?

Rasesh Patel

bet. You

I think proposition we strong consumers. to value the results reflect the provide that

If X% about a you think subscriber growth.

life. that flywheel customer together, the in customer rate the bring just value. economy last have of the X-year recurring revenue. cost seeing things are so year-over-year. a combined time When XX% is fact a increase And robust and than they you consumer results that you most number engaging year, one actually is to is in Simultaneously, serve of with this growth is for it's average We the more lifetime also of these near aspects as a attrition is each product products unit us subscriber improving basis record to this taking low were in X% the a an value customers our in the down powerful proposition on mentioned, with the -- really this

And so think we really good a we and the runway feel growth. about business, there's ahead long for

Agnieszka Storozynski

Okay.

follow-up Just Vivint. X on

was on some So beyond the that bringing we you forward growth as actually remember, driven needed this Vivint growth materialize why had the because [ the growth. sort upgrades, VR some on you side. investments the said facilitate yourself, 'XX to software thought expected to I and of Rasesh, ] reason you you're that

So have you pulled those forward, hence, is the earlier? materializing growth

Mauricio Gutierrez

Yes.

we commercial technology home to where a connecting pilot just literally say our smart will finished we I and So -- our are operations.

system. to our operations What we platform to already our of little our bit that So home commercial let backbone. demand on make of smart operations optimize of that to response residential backbone me we've last is the the to commercial energy connected couple program been technology is the doing take our have traditional a the sure now business, and We weeks back. a step connect

successful. included instead year why very the investment opportunity, of XX% I'm quite by that accelerating as the opportunity. we grid power to the do a the being I in I we need and that and these to The that are growth. That's candidly, was is What saying and by accelerate those a said going the see That of X-plus backbone efforts. is X-plus on is efforts technology need improvements consumer year that to there We're increase not that that.

really So really, there, good progress Angie.

Agnieszka Storozynski

that the EBITDA I question, that And last in shorter the and power getting the was I again, contribution then And you're the see But again, explanation STP. I and the shorter small. Texas. because from And very better of understand Okay. summer, Gregory behind than divestiture for alerts these and survived investors, given from this all are us of we not just you anyway, ERCOT anxiety hedge, mean, survived. causing know conservation mean I a among But I'm but summer your I sure.

manage strategically So risk of rid plants retail how this getting just more in of Texas? power in we speaking, do with Texas, self-generation the matching load

Mauricio Gutierrez

Yes.

will thing. that are or our we long. not every sell when we things. just Angie, don't have customers, megawatt produce every leaning serve me Number we first megawatt short. X We're We So our -- own customers. let That we're be one, the say to actually to

the renewable It's generation. thing solar, and perhaps generation. marginal most about unit, market, point be That's about energy. unit [ the variable to think when intermittent I second is, is cost-efficient view to the cost ] going today The means and ERCOT, my your X wind which is that

and sun perhaps to part means performing ours is clear not is for at the not as that price for because renewable market the periods going blowing wind of in most those is the low except a not very the shining. that normal What where is is

to conditions. the of for rest hours periods few you're most But the the very priced. of to the are So part, the of going going very see specialty intervals, low rest be

exactly that's why want, is important peaking short basically management also So very the capacity you response is which optimizing the that because demand and for demand that you duration durations. instantaneous gives

behavior. demand management improvement is, in of future, have we on what expect price opportunity we completely the and with consistent strategy -- behave very expectation that in the made we I supply think market formation again, with around our market terms consistent and that the is the to have

So time very, future. it and managing the And we say positioned well. literally in grid very really We in [ pricing will on one the thing. renewable I at have there, where more foreseeable ]. And was company only when believe experienced just was grid conservatively. saw scarcity ERCOT periods hottest record we even very The for the well the a we handled Texas, I the low very had output summer

market test, say supply improved and will have of for NRG, you really I and ERCOT to think. colors, wanted that strategy those with we I at the was the test this the high we who that So passed flying

Operator

Wolfe. question from [Operator Instructions] [indiscernible] Our of next comes

Unknown Analyst

that's from on the terms like to of realization, target to that coming X a in expected. little looking the questions of growth bit potential wanted upside follow number XXXX Just million rate? than earlier Does in run of the indicate sooner $XXX any

Mauricio Gutierrez

our on success target, XXXX we're now, given accelerating the right just think comfortable cross-sell. growth and I the

the start about road I we're all thinking include can I demand when it start and that realizing early to be say map not potential. how it big talking something to or you, by side What million XXXX. to quantifying that, VPP moving and of be $XXX that management think will And can the does that's is we it's going it.

more come there. to So that's

Unknown Analyst

specifically just ERCOT on then portfolio. And Great. the Okay.

loan or on Next like of the Does decision-making drive the optimization anything any that bill. terms or fleet that? of week's in newbuild vote

Mauricio Gutierrez

going that Yes. is I more consideration. take point into to we're one it mean data

first is the and the is will loan step data And going think point how step at will it for -- but around more participants again, I the the it us strategy, Obviously, vote. one be our the work. supply to loan inform is program all to second point. market looking we is it, program, more then . rules for it one the are only data

Operator

the Our of final line with Citi. question Ryan Levine comes from

Ryan Levine

acquisitions. to Day, the Hoping you start something on larger, aversion indicated strategic side. off strategic to more the At an Analyst

to cash enable? incremental scope some the think you more for EPC how of you is are picture any that flow going opportunities. potential highlight capital vision? is maybe Is there around that And that assets type power committed what favorable and pricing becoming could plant Given free and you down,

Mauricio Gutierrez

any is, as see I first the Investor Day, more acquisitions. thing say don't and we Well, on I mentioned will the

growth; the Second, we return, inclusive to and on framework committed each this XX% the VPP. to of we see completely third, XX% are of of capital opportunity XX% allocation that

the what that So is you. on to we period and contained within opportunity the that tacking we will will be continue investment, but it provided planning during XX% the

Ryan Levine

the modeling clarification. appreciate And I Okay. side. the more X on then

that acquisitions. costs up. are acquisition driving trend Vivint seeing of in you customer coming What's from standpoint And what terms . acquisition subscriber a costs that? and terms coming In of up the subscriber

Mauricio Gutierrez

Rasesh?

Rasesh Patel

things. and function second products a the very payback well the is when the really of increase our feel year-over-year IRR. rates It's as both about we One interest And take Yes. the good they of buying in the is more service. point, consumer on function X period X a as

base. per I boost remind want million across see X.X in the that's in KPIs. subscriber to that's that You disclosed recurring you the subscriber revenue the entire

to revenue service the If even is cohort, revenue customer more you were substantive only look the increase the acquisition new than at increase, that.

so the about of investment as consumer feel in products take good very from they more And incremental the payback that us. we

Ryan Levine

Is able new the the comments you're subscriber make any characteristics or customer composition around your customer mix set? evolving of the or to

Rasesh Patel

expand sort change more new the customers taking product than portfolio. continue Other no product as There's mix. to the No. are in we our of

very We credit have a very, high-quality base subscriber scores. type

is it business resilient that a from so And standpoint. very

Operator

like it to concludes Mauricio This turn to remarks. now would I Gutierrez the closing for session. Thank question-and-answer you. back

Mauricio Gutierrez

future. interest like updates I'd company your the in Thank providing all your thank support look Well, for you, forward the you to in of Darian. to and you and

Operator

today's This you your program. in gentlemen, Ladies participation you. Thank concludes and conference. for thank the

NRG Energy (NRG) 2 Nov 232023 Q3 Earnings call transcript