PRINCETON, N.J.--(BUSINESS WIRE)--$NRG #Earnings--NRG Energy, Inc. (NYSE: NRG) today reported second quarter 2020 income from continuing operations of $313 million, or $1.27 per diluted common share and Adjusted EBITDA for the second quarter of $574 million.
“NRG delivered strong results in the first half of 2020, and our platform continues to demonstrate resilience during these critical summer months,” said Mauricio Gutierrez, NRG President and Chief Executive Officer. “We are excited by the recently announced Direct Energy acquisition and the regional diversity and expanded products and services the combination will bring to our integrated platform.”
Consolidated Financial Results |
|||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||||||
($ in millions) |
|
6/30/2020 |
|
6/30/2019 |
|
|
6/30/2020 |
|
6/30/2019 |
||||||||
Income from Continuing Operations |
|
$ |
313 |
|
|
$ |
189 |
|
|
|
$ |
434 |
|
|
$ |
283 |
|
Cash provided by Continuing Operations |
|
$ |
484 |
|
|
$ |
516 |
|
|
|
$ |
692 |
|
|
$ |
417 |
|
Adjusted EBITDA |
|
$ |
574 |
|
|
$ |
469 |
|
|
|
$ |
922 |
|
|
$ |
801 |
|
Free Cash Flow Before Growth Investments (FCFbG) |
|
$ |
402 |
|
|
$ |
230 |
|
|
|
$ |
569 |
|
|
$ |
237 |
|
Segments Results |
||||||||||||||||
Table 1: Income/(Loss) from Continuing Operations |
||||||||||||||||
($ in millions) |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
Segment |
|
6/30/2020 |
|
6/30/2019 |
|
6/30/2020 |
|
6/30/2019 |
||||||||
Texas |
|
$ |
350 |
|
|
$ |
259 |
|
|
$ |
512 |
|
|
$ |
409 |
|
East |
|
146 |
|
|
60 |
|
|
170 |
|
|
159 |
|
||||
West/Othera |
|
(183) |
|
|
(130) |
|
|
(248) |
|
|
(285) |
|
||||
Income from Continuing Operationsb |
|
$ |
313 |
|
|
$ |
189 |
|
|
$ |
434 |
|
|
$ |
283 |
|
a. Includes Corporate segment b. In accordance with GAAP, 2019 results have been recast to reflect the discontinued operations of the South Central Portfolio and Carlsbad Energy Center. |
Second quarter Income from Continuing Operations was $313 million, $124 million higher than second quarter 2019, driven by mark-to-market on hedge positions in 2020 versus 2019 from large movements in gas prices and ERCOT heat rates.
Table 2: Adjusted EBITDA |
||||||||||||||||
($ in millions) |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
Segment |
|
6/30/2020 |
|
6/30/2019 |
|
6/30/2020 |
|
6/30/2019 |
||||||||
Texas |
|
$ |
378 |
|
|
$ |
326 |
|
|
$ |
573 |
|
|
$ |
505 |
|
East |
|
138 |
|
|
93 |
|
|
228 |
|
|
237 |
|
||||
West/Othera |
|
58 |
|
|
50 |
|
|
121 |
|
|
59 |
|
||||
Adjusted EBITDAb,c |
|
$ |
574 |
|
|
$ |
469 |
|
|
$ |
922 |
|
|
$ |
801 |
|
a. Includes Corporate segment
|
Texas: Second quarter Adjusted EBITDA was $378 million, $52 million higher than second quarter of 2019. This increase is driven by the acquisition of Stream Energy and lower supply costs resulting from reductions in power and fuel prices.
East: Second quarter Adjusted EBITDA was $138 million, $45 million higher than second quarter of 2019. This increase is driven by the acquisition of Stream Energy, lower supply costs due to reductions in power and natural gas prices and lower operating costs; partially offset by lower capacity revenues.
West/Other: Second quarter Adjusted EBITDA was $58 million, $8 million higher than second quarter of 2019, driven by higher margin from Sunrise facility due to improved availability and an increase in California resource adequacy pricing in 2020; partially offset by Canal 3 completion payment earned in 2019.
Liquidity and Capital Resources |
||||||||
Table 3: Corporate Liquidity |
||||||||
($ in millions) |
|
06/30/20 |
|
12/31/19 |
||||
Cash and Cash Equivalents |
|
$ |
418 |
|
|
$ |
345 |
|
Restricted Cash |
|
8 |
|
|
8 |
|||
Total |
|
$ |
426 |
|
|
$ |
353 |
|
Total credit facility availability |
|
1,782 |
|
|
1,794 |
|
||
Total Liquidity, excluding collateral received |
|
$ |
2,208 |
|
|
$ |
2,147 |
|
As of June 30, 2020, NRG cash was at $0.4 billion, and $1.8 billion was available under the Company’s credit facilities. Total liquidity was $2.2 billion, including restricted cash. Overall liquidity as of the end of the second quarter 2020 was $61 million higher than at the end of 2019, driven by free cash flow generated by the Company partially offset by share repurchases and the repayment of balances outstanding on NRG's revolver.
NRG Strategic Developments
Acquisition of Direct Energy
On July 24, 2020, the Company entered into a definitive purchase agreement with Centrica plc to acquire Direct Energy, a North American subsidiary of Centrica plc. Direct Energy is a leading retail provider of electricity, natural gas, and home and business energy related products and services in North America, with operations in all 50 U.S. states and 6 Canadian provinces. The acquisition will add over 3 million customers to NRG’s business and build on and complement its integrated model, enabling better matching of power generation with customer demand. It will also broaden the Company’s presence in the Northeast and into states and locales where it does not currently operate, supporting NRG’s objective to diversify its business.
The Company will pay an aggregate purchase price of $3.625 billion in cash, subject to customary purchase price adjustments. The Company expects to fund the purchase price using a combination of cash on hand, approximately $2.4 billion in newly-issued secured and unsecured corporate debt and approximately $750 million in convertible preferred stock or other equity-linked instrument. The Company also expects to increase its collateral facilities by $3.5 billion through a combination of new letter of credit facilities and an increase to its existing Revolving Credit Facility.
The acquisition is subject to approval by the shareholders of Centrica plc, as well as customary closing conditions, consents and regulatory approvals, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act, and the receipt of approvals or expiration of applicable waiting periods under the Federal Power Act and the Canadian Competition Act.
Midwest Generation lease buyout
On July 22, 2020, Midwest Generation, LLC signed purchase agreements to acquire all of the ownership interests in the Powerton facility and Units 7 and 8 of the Joliet facility, which were being leased through 2034 and 2030, respectively, for approximately $260 million. The Company intends to fund the purchase with borrowings under its Revolving Credit Facility in an amount equal to the existing operating lease liability of $148 million as of June 30, 2020, and the remainder from cash-on-hand. The closing is conditioned, among other items, on the receipt of regulatory approvals from FERC and under the Hart-Scott-Rodino Act.
COVID-19
In March 2020, the World Health Organization categorized COVID-19 as a pandemic and the President of the United States declared the COVID-19 outbreak a national emergency. Electricity was deemed a 'critical and essential business operation' under various state and federal governmental COVID-19 mandates. As a result of COVID-19, there has been a reduction in load within the markets in which we operate since the President’s national emergency declaration; however, as state restrictions have been eased or lifted, loads have begun to recover. The rebound in demand has varied across the Company's market footprint, as restrictions vary regionally. The Company expects demand uncertainty to continue in the near future.
NRG had activated its Crisis Management Team ("CMT") in January 2020, which proactively began managing the Company's response to the impacts of COVID-19. The CMT implemented the business continuity plans for the Company and has taken a variety of measures to ensure the ongoing availability of the Company’s services, while maintaining the Company's commitment to its core values of health and safety. Pursuant to the Company’s Infectious Disease & Pandemic Policy, in March 2020, NRG implemented restrictions on business travel and face-to-face sales channels, instituted remote work practices and enhanced cleaning and hygiene protocols in all of its facilities. During the second quarter of 2020, the Company began to evaluate alternatives for return to normal work operations. In addition, in order to effectively serve the Company’s customers, select essential employees and contractors are continuing to report to plant and certain office locations. The Company requires pre-entry screening, including temperature checks, separation of work crews, additional personal protective equipment for employees and contractors when social distancing cannot be maintained, and a ban on all non-essential visitors. As a result of these business continuity measures, the Company has not experienced any material disruptions in its ability to continue its business operations to date.
NRG continues to remain focused on protecting the health and well-being of its employees, while supporting its customers and the communities in which it operates and assuring the continuity of its operations. On April 1, 2020, NRG committed $2 million to COVID-19 relief efforts, including funding for urgently needed safety equipment supporting first responders, as well as funds that aid local communities and teachers. The Company also allocated funding to the NRG Employee Relief Fund, which assists employees adversely impacted by natural disasters and other extraordinary
Reaffirming 2020 and 2021 Guidance
NRG is reaffirming its guidance range for 2020 and 2021 with respect to Adjusted EBITDA, Cash From Operations and Free Cash Flow before Growth Investments (FCFbG) as set forth below.
Table 4: 2020 and 2021 Adjusted EBITDA, Cash from Operations, and FCFbG Guidance |
|||
|
2020 |
|
2021 |
($ in millions) |
Guidance |
|
Guidance |
Adjusted EBITDAa |
$1,900-$2,100 |
|
$1,900-$2,100 |
Cash From Operations |
$1,440-$1,640 |
|
$1,445-$1,645 |
FCFbG |
$1,275-$1,475 |
|
$1,275-$1,475 |
a. Non-GAAP financial measure; see Appendix Tables A-5 for GAAP Reconciliation to Net Income that excludes fair value adjustments related to derivatives. The Company is unable to provide guidance for Net Income due to the impact of such fair value adjustments related to derivatives in a given year
Capital Allocation Update
As part of the Company's long-term capital allocation policy, the return of capital to shareholders during the first half of 2020 was comprised of a quarterly dividend of $0.30 per share, or $148 million, and share repurchases of $228 million through August 6, 2020 at an average price of $33.05 per share.
The Company does not anticipate executing any further share repurchases over the remainder of 2020 and has allocated all of its remaining 2020 excess capital to fund the Direct Energy acquisition.
The Company’s common stock dividend, debt reduction and share repurchases are subject to available capital, market conditions and compliance with associated laws and regulations.
Earnings Conference Call
NRG’s July 24, 2020 business update and conference call served as its second quarter earnings call. The Company provided a comprehensive update and review of its strategy, 2020 & 2021 guidance, capital allocation and preliminary second quarter results. Today's materials and the July 24, 2020 materials and webcast can be found on NRG’s website at http://www.nrg.com and clicking on “Presentations & Webcasts” in the “Investors” section found at the top of the home page.
About NRG
At NRG, we’re bringing the power of energy to people and organizations by putting customers at the center of everything we do. We generate electricity and provide energy solutions and natural gas to more than 3.7 million residential, small business, and commercial and industrial customers through our diverse portfolio of retail brands. A Fortune 500 company, operating in the United States and Canada, NRG delivers innovative solutions while advocating for competitive energy markets and customer choice, and by working towards a sustainable energy future. More information is available at www.nrg.com. Connect with NRG on Facebook, LinkedIn and follow us on Twitter @nrgenergy, @nrginsight.
Forward-Looking Statements
In addition to historical information, the information presented in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about the Company’s future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.
Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, the potential impact of COVID-19 or any other pandemic on the Company’s operations, financial position, risk exposure and liquidity, general economic conditions, hazards customary in the power industry, weather conditions, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulations, the condition of capital markets generally, our ability to access capital markets, cyberterrorism and inadequate cybersecurity, unanticipated outages at our generation facilities, adverse results in current and future litigation, failure to identify, execute or successfully implement acquisitions, repowerings or asset sales, our ability to implement value enhancing improvements to plant operations and companywide processes, our ability to achieve margin enhancement under our publicly announced transformation plan, our ability to achieve our net debt targets, our ability to maintain investment grade credit metrics, our ability to proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, the inability to maintain or create successful partnering relationships, our ability to operate our business efficiently, our ability to retain retail customers, our ability to realize value through our commercial operations strategy, the ability to consummate the Direct Energy acquisition, the ability to successfully integrate businesses of acquired companies including Direct Energy, our ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, and our ability to execute our Capital Allocation Plan. Achieving investment grade credit metrics is not a indication of or guarantee that the Company will receive investment grade credit ratings. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.
NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The adjusted EBITDA, free cash flow guidance and excess cash guidance are estimates as of August 6, 2020. These estimates are based on assumptions the company believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this press release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at www.sec.gov.
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
(In millions, except for per share amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Operating Revenues |
|
|
|
|
|
|
|
||||||||
Total operating revenues |
$ |
2,238 |
|
|
$ |
2,465 |
|
|
$ |
4,257 |
|
|
$ |
4,630 |
|
Operating Costs and Expenses |
|
|
|
|
|
|
|
||||||||
Cost of operations |
1,434 |
|
|
1,845 |
|
|
2,891 |
|
|
3,496 |
|
||||
Depreciation and amortization |
110 |
|
|
85 |
|
|
219 |
|
|
170 |
|
||||
Impairment losses |
— |
|
|
1 |
|
|
— |
|
|
1 |
|
||||
Selling, general and administrative costs |
208 |
|
|
211 |
|
|
417 |
|
|
405 |
|
||||
Reorganization costs |
— |
|
|
2 |
|
|
3 |
|
|
15 |
|
||||
Development costs |
2 |
|
|
2 |
|
|
5 |
|
|
4 |
|
||||
Total operating costs and expenses |
1,754 |
|
|
2,146 |
|
|
3,535 |
|
|
4,091 |
|
||||
Gain on sale of assets |
— |
|
|
1 |
|
|
6 |
|
|
2 |
|
||||
Operating Income |
484 |
|
|
320 |
|
|
728 |
|
|
541 |
|
||||
Other Income/(Expense) |
|
|
|
|
|
|
|
||||||||
Equity in earnings/(losses) of unconsolidated affiliates |
12 |
|
|
— |
|
|
1 |
|
|
(21) |
|
||||
Impairment losses on investments |
— |
|
|
— |
|
|
(18) |
|
|
— |
|
||||
Other income, net |
14 |
|
|
20 |
|
|
41 |
|
|
32 |
|
||||
Loss on debt extinguishment, net |
— |
|
|
(47) |
|
|
(1) |
|
|
(47) |
|
||||
Interest expense |
(96) |
|
|
(105) |
|
|
(193) |
|
|
(219) |
|
||||
Total other expense |
(70) |
|
|
(132) |
|
|
(170) |
|
|
(255) |
|
||||
Income from Continuing Operations Before Income Taxes |
414 |
|
|
188 |
|
|
558 |
|
|
286 |
|
||||
Income tax expense/(benefit) |
101 |
|
|
(1) |
|
|
124 |
|
|
3 |
|
||||
Income from Continuing Operations |
313 |
|
|
189 |
|
|
434 |
|
|
283 |
|
||||
Income from discontinued operations, net of income tax |
— |
|
|
13 |
|
|
— |
|
|
401 |
|
||||
Net Income |
313 |
|
|
202 |
|
|
434 |
|
|
684 |
|
||||
Less: Net income attributable to redeemable noncontrolling interests |
— |
|
|
1 |
|
|
— |
|
|
1 |
|
||||
Net Income Attributable to NRG Energy, Inc. |
$ |
313 |
|
|
$ |
201 |
|
|
$ |
434 |
|
|
$ |
683 |
|
Earnings per Share |
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding — basic |
245 |
|
|
265 |
|
|
246 |
|
|
272 |
|
||||
Income from continuing operations per weighted average common share — basic |
$ |
1.28 |
|
|
$ |
0.71 |
|
|
$ |
1.76 |
|
|
$ |
1.04 |
|
Income from discontinued operations per weighted average common share — basic |
$ |
— |
|
|
$ |
0.05 |
|
|
$ |
— |
|
|
$ |
1.47 |
|
Earnings per Weighted Average Common Share — Basic |
$ |
1.28 |
|
|
$ |
0.76 |
|
|
$ |
1.76 |
|
|
$ |
2.51 |
|
Weighted average number of common shares outstanding — diluted |
246 |
|
|
267 |
|
|
247 |
|
|
274 |
|
||||
Income from continuing operations per weighted average
|
$ |
1.27 |
|
|
$ |
0.70 |
|
|
$ |
1.76 |
|
|
$ |
1.03 |
|
Income from discontinued operations per weighted
|
$ |
— |
|
|
$ |
0.05 |
|
|
$ |
— |
|
|
$ |
1.46 |
|
Earnings per Weighted Average Common Share — Diluted |
$ |
1.27 |
|
|
$ |
0.75 |
|
|
$ |
1.76 |
|
|
$ |
2.49 |
|
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) |
|||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
(In millions) |
||||||||||||||
Net Income |
$ |
313 |
|
|
$ |
202 |
|
|
$ |
434 |
|
|
$ |
684 |
|
Other Comprehensive Income/(Loss) |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
13 |
|
|
(1) |
|
|
(2) |
|
|
— |
|
||||
Available-for-sale securities |
— |
|
|
1 |
|
|
— |
|
|
1 |
|
||||
Defined benefit plans |
— |
|
|
(3) |
|
|
— |
|
|
(6) |
|
||||
Other comprehensive income/(loss) |
13 |
|
|
(3) |
|
|
(2) |
|
|
(5) |
|
||||
Comprehensive Income |
326 |
|
|
199 |
|
|
432 |
|
|
679 |
|
||||
Less: Comprehensive income attributable to redeemable noncontrolling interest |
— |
|
|
1 |
|
|
— |
|
|
1 |
|
||||
Comprehensive Income Attributable to NRG Energy, Inc. |
$ |
326 |
|
|
$ |
198 |
|
|
$ |
432 |
|
|
$ |
678 |
|
|
|
|
|
|
|
|
|
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
June 30, 2020 |
|
December 31, 2019 |
||||
(In millions, except share data) |
(Unaudited) |
|
(Audited) |
||||
ASSETS |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
418 |
|
|
$ |
345 |
|
Funds deposited by counterparties |
36 |
|
|
32 |
|
||
Restricted cash |
8 |
|
|
8 |
|
||
Accounts receivable, net |
1,015 |
|
|
1,025 |
|
||
Inventory |
388 |
|
|
383 |
|
||
Derivative instruments |
791 |
|
|
860 |
|
||
Cash collateral paid in support of energy risk management activities |
136 |
|
|
190 |
|
||
Prepayments and other current assets |
284 |
|
|
245 |
|
||
Total current assets |
3,076 |
|
|
3,088 |
|
||
Property, plant and equipment, net |
2,533 |
|
|
2,593 |
|
||
Other Assets |
|
|
|
||||
Equity investments in affiliates |
372 |
|
|
388 |
|
||
Operating lease right-of-use assets, net |
429 |
|
|
464 |
|
||
Goodwill |
579 |
|
|
579 |
|
||
Intangible assets, net |
733 |
|
|
789 |
|
||
Nuclear decommissioning trust fund |
794 |
|
|
794 |
|
||
Derivative instruments |
439 |
|
|
310 |
|
||
Deferred income taxes |
3,170 |
|
|
3,286 |
|
||
Other non-current assets |
212 |
|
|
240 |
|
||
Total other assets |
6,728 |
|
|
6,850 |
|
||
Total Assets |
$ |
12,337 |
|
|
$ |
12,531 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Current portion of long-term debt |
$ |
7 |
|
|
$ |
88 |
|
Current portion of operating lease liabilities |
69 |
|
|
73 |
|
||
Accounts payable |
736 |
|
|
722 |
|
||
Derivative instruments |
728 |
|
|
781 |
|
||
Cash collateral received in support of energy risk management activities |
36 |
|
|
32 |
|
||
Accrued expenses and other current liabilities |
581 |
|
|
663 |
|
||
Total current liabilities |
2,157 |
|
|
2,359 |
|
||
Other Liabilities |
|
|
|
||||
Long-term debt |
5,810 |
|
|
5,803 |
|
||
Non-current operating lease liabilities |
458 |
|
|
483 |
|
||
Nuclear decommissioning reserve |
307 |
|
|
298 |
|
||
Nuclear decommissioning trust liability |
478 |
|
|
487 |
|
||
Derivative instruments |
299 |
|
|
322 |
|
||
Deferred income taxes |
17 |
|
|
17 |
|
||
Other non-current liabilities |
1,061 |
|
|
1,084 |
|
||
Total other liabilities |
8,430 |
|
|
8,494 |
|
||
Total Liabilities |
10,587 |
|
|
10,853 |
|
||
Redeemable noncontrolling interest in subsidiaries |
— |
|
|
20 |
|
||
Commitments and Contingencies |
|
|
|
||||
Stockholders' Equity |
|
|
|
||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 423,031,777 and 421,890,790 shares issued and 244,137,848 and 248,996,189 shares outstanding at June 30, 2020 and December 31, 2019, respectively |
4 |
|
|
4 |
|
||
Additional paid-in-capital |
8,505 |
|
|
8,501 |
|
||
Accumulated deficit |
(1,331) |
|
|
(1,616) |
|
||
Less treasury stock, at cost - 178,893,929 and 172,894,601 shares at June 30, 2020 and December 31, 2019, respectively |
(5,234) |
|
|
(5,039) |
|
||
Accumulated other comprehensive loss |
(194) |
|
|
(192) |
|
||
Total Stockholders' Equity |
1,750 |
|
|
1,658 |
|
||
Total Liabilities and Stockholders' Equity |
$ |
12,337 |
|
|
$ |
12,531 |
|
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited) |
Six months ended June 30, |
||||||
(In millions) |
2020 |
|
2019 |
||||
Cash Flows from Operating Activities |
|
|
|
||||
Net Income |
$ |
434 |
|
|
$ |
684 |
|
Income from discontinued operations, net of income tax |
— |
|
|
401 |
|
||
Income from continuing operations |
434 |
|
|
283 |
|
||
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
||||
Distributions from and equity in (earnings)/losses of unconsolidated affiliates. |
7 |
|
|
22 |
|
||
Depreciation and amortization |
219 |
|
|
170 |
|
||
Accretion of asset retirement obligations. |
18 |
|
|
14 |
|
||
Provision for credit losses |
48 |
|
|
52 |
|
||
Amortization of nuclear fuel |
25 |
|
|
27 |
|
||
Amortization of financing costs and debt discount/premiums |
12 |
|
|
13 |
|
||
Loss on debt extinguishment, net |
1 |
|
|
47 |
|
||
Amortization of emissions allowances and energy credits |
33 |
|
|
14 |
|
||
Amortization of unearned equity compensation |
12 |
|
|
10 |
|
||
(Gain)/loss on sale of assets and disposal of assets |
(15) |
|
|
1 |
|
||
Impairment losses |
18 |
|
|
1 |
|
||
Changes in derivative instruments |
(131) |
|
|
(22) |
|
||
Changes in deferred income taxes and liability for uncertain tax benefits |
116 |
|
|
(5) |
|
||
Changes in collateral deposits in support of energy risk management activities |
58 |
|
|
125 |
|
||
Changes in nuclear decommissioning trust liability |
36 |
|
|
17 |
|
||
Changes in other working capital |
(199) |
|
|
(352) |
|
||
Cash provided by continuing operations |
692 |
|
|
417 |
|
||
Cash provided by discontinued operations |
— |
|
|
8 |
|
||
Net Cash Provided by Operating Activities |
692 |
|
|
425 |
|
||
Cash Flows from Investing Activities |
|
|
|
||||
Payments for acquisitions of businesses |
(5) |
|
|
(21) |
|
||
Capital expenditures |
(116) |
|
|
(107) |
|
||
Net purchases of emission allowances |
(4) |
|
|
(1) |
|
||
Investments in nuclear decommissioning trust fund securities |
(257) |
|
|
(209) |
|
||
Proceeds from the sale of nuclear decommissioning trust fund securities |
220 |
|
|
191 |
|
||
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees |
15 |
|
|
1,289 |
|
||
Net distributions from investments in unconsolidated affiliates |
2 |
|
|
7 |
|
||
Contributions to discontinued operations |
— |
|
|
(44) |
|
||
Cash (used)/provided by continuing operations |
(145) |
|
|
1,105 |
|
||
Cash used by discontinued operations |
— |
|
|
(2) |
|
||
Net Cash (Used)/Provided by Investing Activities |
(145) |
|
|
1,103 |
|
||
Cash Flows from Financing Activities |
|
|
|
||||
Payments of dividends to common stockholders |
(148) |
|
|
(16) |
|
||
Payments for share repurchase activity |
(229) |
|
|
(1,075) |
|
||
Payments for debt extinguishment costs |
— |
|
|
(24) |
|
||
Purchase of and distributions to noncontrolling interests from subsidiaries |
(2) |
|
|
(1) |
|
||
Proceeds from issuance of common stock |
1 |
|
|
2 |
|
||
Proceeds from issuance of long-term debt |
59 |
|
|
1,833 |
|
||
Payment of debt issuance costs |
(1) |
|
|
(33) |
|
||
Repayments of long-term debt |
(61) |
|
|
(2,485) |
|
||
Net repayment of Revolving Credit Facility |
(83) |
|
|
— |
|
||
Other |
(5) |
|
|
— |
|
||
Cash used by continuing operations |
(469) |
|
|
(1,799) |
|
||
Cash provided by discontinued operations |
— |
|
|
43 |
|
||
Net Cash Used by Financing Activities |
(469) |
|
|
(1,756) |
|
||
Effect of exchange rate changes on cash and cash equivalents |
(1) |
|
|
— |
|
||
Change in Cash from discontinued operations |
— |
|
|
49 |
|
||
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash |
77 |
|
|
(277) |
|
||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period
|
385 |
|
|
613 |
|
||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period
|
$ |
462 |
|
|
$ |
336 |
|
Contacts
Media:
Candice Adams
609.524.5428
Investors:
Kevin L. Cole, CFA
609.524.4526
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