NRG Energy, Inc. Reports Second Quarter Results; Modifies Guidance and Announces Successful IPO of NRG Yield (NYLD)

  NRG Energy, Inc. Reports Second Quarter Results; Modifies Guidance and
  Announces Successful IPO of NRG Yield (NYLD)

Financial Highlights

  *$594 million of Adjusted EBITDA in the second quarter, including $140
    million delivered by NRG’s retail businesses;
  *$462 million of net proceeds from successful initial public offering of
    NRG Yield;
  *Increased and repriced Term Loan B and Revolver, redeemed GenOn’s $575
    million 2014 Senior Notes, and extended Revolver maturity by two years

Business and Operational Highlights

  *Increased projected operational and cost synergy benefits arising from the
    GenOn transaction to $340 million in Adjusted EBITDA per year by 2014 and
    increased projected Free Cash Flow before Growth benefits to $482 million,
    also by 2014;
  *Achieved full and on time commercial operations of the 550 MW El Segundo
    project on August 1, 2013 and the 720 MW Marsh Landing project during the
    second quarter, which together will contribute over $200 million in annual
    Adjusted EBITDA in 2014;
  *Closed the acquisition of the 390 MW, 160 MWt Gregory cogeneration plant
    in Texas on August 7, 2013;
  *Achieved commercial operations of the 75 MW natural gas peaking unit at WA
    Parish; completed 62 MW coal to gas conversion at Dover;
  *Acquired two completed solar projects, Kansas South and TA-High Desert,
    totaling 40 MW;
  *Acquired a 26 MW contracted solar project in advanced development on Guam;
  *Announced the planned installation of solar arrays at the Mandalay Bay
    Resort Convention Center in Las Vegas;
  *Grew net retail customer count by 23,000 during the quarter

2013 and 2014 Guidance

  *Modified 2013 Guidance as follows:

       *Adjusted EBITDA from $2,615-$2,815 million to $2,550-$2,700 million
       *FCF before growth investments from $1,050-$1,250 million to
         $1,050-$1,200 million

  *Reaffirmed 2014 Guidance as follows:

       *Adjusted EBITDA of $2,850-$3,050 million;
       *FCF before growth investments of $1,100-$1,300 million.

Business Wire

PRINCETON, N.J. -- August 9, 2013

NRG Energy, Inc. (NYSE: NRG) today reported second quarter 2013 Adjusted
EBITDA of $594 million with Wholesale contributing $393 million, Retail
contributing $140 million and NRG Yield contributing $61 million. Year-to-date
adjusted cash flow from operations totaled $331 million. Net loss for the
first six months of 2013 was ($198) million, or ($0.63) per diluted common
share compared to net income of $44 million, or $0.17 per diluted common
share, for the first six months of 2012.

“While our current results have been impacted by a continuation of
extraordinarily mild weather into the critical summer air conditioning season,
particularly in Texas, we remain intensely focused across our Company on
achieving the best possible results for 2013 under the circumstances while
positioning the Company to realize the full financial potential of the GenOn
combination in 2014,” said David Crane, NRG President and Chief Executive
Officer. “We also are pleased that the strategic positioning of the Company
has been considerably enhanced going forward as a result of the successful IPO
of NRG Yield as the continued commodity weakness afflicting the merchant
sector has made the long term contracted portion of our business a key
component of our growth platform.”


Segment Results



Table 1: Adjusted EBITDA
($ in millions)        Three Months Ended        Six Months Ended
Segment                6/30/13   6/30/12^(2)   6/30/13   6/30/12^(2)
Retail                    140       219             243       331
Wholesale
Gulf Coast
- Texas                   117         228             189         367
- South Central           18          28              9           52
East                      163         17              321         17
West                      50          23              54          38
Other                     3           14              11          27
NRG Yield                 61          25              95          50
Alternative Energy        23          10              34          8
Corporate              19        (9)           11        (19)
Adjusted EBITDA^(1)    594       555           967       871
^(1) Detailed adjustments by region are shown in Appendix A

^(2) Revised to reflect new EBITDA methodology


Table 2: Net Income/(Loss)
($ in millions)       Three Months Ended    Six Months Ended
Segment               6/30/13   6/30/12   6/30/13   6/30/12
Retail                   (82)      797         287       804
Wholesale
Gulf Coast
- Texas                  169         (427)       (257)       (501)
- South Central          6           11          (1)         (19)
East                     142         (13)        (17)        (61)
West                     37          21          30          7
Other                    (3)         7           -           13
NRG Yield                33          (1)         40          4
Alternative Energy       (29)        (14)        (55)        (29)
Corporate             (143)     (130)     (225)     (174)
Net Income/(Loss)     130       251       (198)     44
                                                             

Retail:  Second quarter Adjusted EBITDA was $140 million; $79 million lower
than second quarter 2012.Gross margin was lower by $67 million primarily due
to a reduction in Mass and C&I load as a result of persistently mild summer
weather and increased supply costs not fully recovered as a result of
competitive renewal and acquisition pricing, partially offset by additional
margin from higher customer count.Operating expenses increased $12 million
primarily due to expenses associated with increased revenues as well as timing
of other expenses.

Gulf Coast - Texas: Second quarter Adjusted EBITDA was $117 million; $111
million lower than the second quarter 2012 driven by lower gross margin of
$108 million. The decline in gross margin was driven by lower average realized
energy prices and the roll-off of higher priced hedges. Meanwhile, a reduction
in generation within the gas fleet resulted in a decline of $23 million as
milder quarter-over-quarter weather and the coal-to-gas switching experienced
in the second quarter of 2012 did not continue in 2013.

Gulf Coast - South Central: Second quarter Adjusted EBITDA was $18 million,
$10 million lower than the second quarter of 2012. Gross margins declined $10
million, notwithstanding a 4% increase in average realized energy margins, as
a result of a combination of lower sales volumes and higher natural gas prices
as compared to the prior year.

East: Second quarter Adjusted EBITDA was $163 million; $146 million higher
than the second quarter 2012 driven by the addition of the GenOn assets which
contributed $141 million.The balance of the quarter-over-quarter improvement
in Adjusted EBITDA was driven by higher capacity revenue from the Dunkirk
reliability support services agreement in western New York, an increase in New
York and PJM hedged capacity prices of 31% and a 58% increase in realized
energy prices at the coal plants.

West: Second quarter Adjusted EBITDA was $50 million; $27 million higher than
the second quarter 2012. This is a result of the acquisition of the GenOn
assets which increased gross margin in the region by $64 million. Partially
offsetting the higher gross margin were higher operating costs totaling $27
million from the addition of the GenOn assets as well as maintenance work that
was delayed in 2012 due to the San Onofre nuclear outage.

NRG Yield: Second quarter Adjusted EBITDA was $61 million; $36 million higher
than second quarter 2012.The improvement was driven by assets that achieved
commercial operations in 2013 which included the Marsh Landing natural
gas-fired facility, and the Borrego, Alpine and Avra Valley solar facilities.
Marsh Landing achieved commercial operations in May 2013, with Borrego, Alpine
and Avra Valley achieving commercial operations in February 2013, January 2013
and December 2012, respectively.

Alternative Energy: Second quarter Adjusted EBITDA was $23 million; $13
million higher than the second quarter 2012. Solar gross margin was $27
million, a $13 million increase from the prior year driven by the addition of
new phases to the Company’s Agua Caliente solar facility, and certain portion
of the California Valley Solar Ranch (CVSR) facility. Partially offsetting the
improved margin were NRG’s continued solar and new business development
efforts.

Liquidity and Capital Resources



Table 3: Corporate Liquidity
($ in millions)                       6/30/13   3/31/13   12/31/12
Cash and Cash Equivalents             1,368     1,707     2,087
Restricted cash                       267       221       217
Total                                 1,635     1,928     2,304
Total Credit Facility Availability    1,181     1,157     1,058
Total Liquidity                       2,816     3,085     3,362
                                                                 

Total current liquidity, as of June 30, 2013, was $2,816 million, a decrease
of $546 million from December 31, 2012. Increases of $50 million in restricted
cash and $123 million in total credit facility availability were more than
offset by a $719 million decrease in cash and cash equivalents consisting of
the following items:

  *$1,050 million of cash outflows, through the first half of 2013,
    consisting of the following items:

       *$394 million net financing activities consisting of: $775 million to
         repurchase senior notes along with $28 million refinancing fees, $41
         million scheduled debt amortization; partially offset by $450 million
         increase in Term Loan B proceeds;
       *$203 million of maintenance and environmental capital expenditures,
         net;
       *$158 million of collateral deposits;
       *$90 million of merger related payments;
       *$73 million of dividends to common and preferred shareholders;
       *$72 million of solar and conventional growth investments, net of debt
         proceeds, third party funding and cash grant proceeds;
       *$25 million of share repurchases; and
       *$35 million of other investing and financing activities

  *Offset, in part, by $331 million of adjusted cash flow from operations

Growth Initiatives and Strategic Developments

NRG continued to enhance its competitiveness and strategic positioning through
a wide range of growth initiatives, including:

IPO of NRG Yield

On July 22, 2013, the Company issued 22,511,250 shares of Class A common stock
in NRG Yield (NYSE: NYLD) to the public. NRG Yield is an investment vehicle
that holds and seeks to invest in high quality, contracted and operating
conventional, renewable generation and thermal energy infrastructure assets
developed, constructed, owned and/or operated by NRG, with a capital
allocation strategy that is focused on dividend growth funded by reliable long
term cash flows generated by its highly contracted portfolio of generating
assets. The NYLD IPO was priced at $22 per share – above the initial pricing
range of $19-21 per share. The Company received proceeds, net of underwriting
discounts, commissions and fees, of approximately $462 million from the
offering.

NRG Yield enhances NRG’s strategic competitiveness by enabling NRG, with a
more competitively priced cost of equity capital, to drive the continued
growth of its successful development and acquisition program for contracted
renewable and conventional generation assets. NRG retains a 65.5% economic and
voting interest in NRG Yield, which in turn holds a right of first offer for
six additional contracted assets currently owned by NRG. These assets,
combined with a number of repowering opportunities in earlier stages of
development within NRG, provide NRG Yield a significant platform for future
growth.

Solar

  *Agua Caliente – As of June 30, 2013, 278 MW of generation capacity had
    achieved commercial operations making Agua Caliente the largest operating
    solar PV project in the United States. Overall, construction at Agua
    Caliente is several months ahead of schedule and is currently expected to
    reach full completion in early 2014 (290 MW). Power generated by Agua
    Caliente is being sold under a 25-year power purchase agreement (PPA) to
    Pacific Gas and Electric Co (PG&E). NRG owns a 51% interest in the
    project.
  *CVSR – Construction of the California Valley Solar Ranch project is ahead
    of schedule with 127 MW having achieved commercial operations by June 30,
    2013, with the remaining 123 MW expected to come on line by the fourth
    quarter of 2013. Power from this project is being sold to PG&E under
    25-year PPAs.
  *Ivanpah – All units (378 MW) are currently expected to be completed in the
    fourth quarter of 2013. Power from Units 1 and 3 will be sold to PG&E via
    two 25-year PPAs, and power from Unit 2 will be sold to Southern
    California Edison (SCE) under a 20-year PPA.
  *Other Solar –

       *In June 2013, the Company reached commercial operations for two solar
         projects totaling 40 MW acquired from Recurrent Energy, Kansas South
         and TA-High Desert. The solar facilities provide electricity to SCE
         and PG&E under 20-year PPAs.
       *In July 2013, the Company reached agreement to acquire a 26 MW solar
         project on the island of Guam from Quantum Guam Power Holdings, LLC,
         a wholly-owned affiliate of Quantum Utility Generation, LLC. NRG
         Solar will construct, own and operate the solar project which will
         sell all of its power output to the Guam Power Authority, the
         island’s sole electric utility, under two 25-year PPAs.
       *In July 2013, the Company announced the planned installation of one
         of the largest contiguous rooftop solar photovoltaic arrays in the
         world at the Mandalay Bay Resort Convention Center in Las Vegas. The
         6 MW installation will be MGM Resorts’ first commercial solar project
         in the United States and will generate enough electricity to power
         the equivalent of 1,000 homes.

Conventional

  *Gregory – On August 7, 2013, the Company closed on the acquisition of the
    390 MW, 160 MWt Gregory cogeneration plant in Corpus Christi, Texas, for
    $244 million (after working capital adjustments), expanding its growing
    cogeneration fleet as it provides NRG with additional cost-effective
    baseload power in ERCOT. This acquisition will be funded by $120 million
    of Term Loan proceeds and NRG equity.

  *Marsh Landing – On May 1, 2013, the Company achieved commercial operations
    and commenced delivery of the PPA for its Marsh Landing project, a 720 MW
    natural gas-fired peaking facility adjacent to the Company's Contra Costa
    generating facility near Antioch, California. The facility is contracted
    with PG&E under a 10-year PPA.
  *El Segundo – On August 1, 2013, the Company achieved commercial operations
    and commenced delivery of the PPA for its El Segundo Power Generating
    Station, a 550 MW fast start, gas turbine combined cycle generating
    facility in El Segundo, California. The facility was constructed pursuant
    to a 10-year, 550 MW PPA with Southern California Edison.
  *WA Parish Peaking Unit – On June 29, 2013, the Company achieved commercial
    operation of its 75 MW natural gas peaking unit at Parish.

Outlook for 2013 and 2014

NRG has revised downward and narrowed the range of its Adjusted EBITDA and FCF
before growth investments guidance for 2013. This reduction primarily arises
out of the volumetric sales shortfall caused by the unseasonably mild summer
weather in Texas. As usual, our guidance assumes normalized weather for the
balance of the year, including the remainder of the Texas summer.

The Company’s guidance for fiscal year 2014 remains the same with respect to
both Adjusted EBITDA and FCF before growth investments and assumes, in each
case, normalized weather through 2014.

Table 4: 2013 and 2014 Adjusted EBITDA and FCF before growth investments Guidance
                  8/9/2013                      6/24/2013
(dollars in        2013          2014          2013          2014
millions)
Adjusted EBITDA    2,550 –       2,850 –        2,615 –       2,850 –
                      2,700           3,050           2,815           3,050
Interest              (945)           (945)           (945)           (945)
payments
Income tax            50              (40)            50              (40)
Working
capital/other      (120)         (165)         (120)         (215)
changes
Adjusted Cash         1,535 –         1,700 –         1,600 –         1,650 –
flow from             1,685           1,900           1,800           1,850
operations
Maintenance
capital               (325)-(345)     (315)-(335)     (385)-(405)     (325)-(345)
expenditures,
net
Environmental
capital               (135)-(145)     (220)-(240)     (155)-(175)     (205)-(225)
expenditures,
net
Preferred             (9)             (9)             (9)             (9)
dividends
Distributions
to
non-controlling
interests-
NRG Yield and      (7)           (33)          (1)           (6)
Solar
Free cash flow        1,050 –         1,100 –         1,050 –         1,100 –
– before growth    1,200         1,300         1,250         1,300
investments
Notes - subtotals and totals are rounded


2013 Capital Allocation Program

The IPO of NRG Yield closed on July 22, 2013, with the Company receiving
proceeds, net of underwriting discounts and commissions, of approximately $468
million from the offering. NRG Yield will retain approximately $73 million to
fund general corporate purposes and the Company expects to pay approximately
$6 million in transaction-related expenses for the IPO.

During the second quarter of 2013, NRG exceeded the previously announced $1
billion deleveraging plan by retiring $575 million of GenOn Senior notes. The
Company also repriced its Term Loan and increased its size by $450 million.
The Corporate Revolver was also repriced, increased by $211 million and its
maturity was extended by two years. These actions resulted in exceeding annual
balance sheet efficiency targets by over $40 million. The nearest corporate
debt maturity is now 2018.

During the first six months of 2013, the Company purchased 972,292 shares of
NRG common stock for $25 million, at an average cost of $25.88 per share. The
Company intends to complete the remaining $175 million of share repurchases by
the end of 2013.

On July 19, 2013, the Company declared a quarterly dividend of $0.12 per
share, payable August 15, 2013, to shareholders of record as of August 1,
2013.

The Company's common stock dividend and share repurchases are subject to
available capital, market conditions, and compliance with associated laws and
regulations.

Earnings Conference Call

On August 9, 2013, NRG will host a conference call at 9:00 am eastern to
discuss these results. Investors, the news media and others may access the
live webcast of the conference call and accompanying presentation materials by
logging on to NRG’s website at http://www.nrgenergy.com and clicking on
“Investors.” The webcast will be archived on the site for those unable to
listen in real time.

About NRG

NRG is at the forefront of changing how people think about and use energy. We
deliver cleaner and smarter energy choices for our customers, backed by the
nation’s largest independent power generation portfolio of fossil fuel,
nuclear, solar and wind facilities. A Fortune 500 company, NRG is challenging
the U.S. energy industry by becoming one of the largest developers of solar
power, building the first comprehensive electric vehicle ecosystem, and
providing customers with the most advanced smart energy solutions to better
manage their energy use. In addition to 46,000 megawatts of generation
capacity, enough to supply nearly 40 million homes, our retail electricity
providers – Reliant, Green Mountain Energy and Energy Plus – serve more than
two million customers. More information is available at www.nrgenergy.com.
Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.

Safe Harbor Disclosure

This news 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 anticipated benefits of the merger between NRG and GenOn,
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 have been correct, and actual
results may vary materially. Factors that could cause actual results to differ
materially from those contemplated above include, among others, 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 regulation of markets and
of environmental emissions, the condition of capital markets generally, our
ability to access capital markets, unanticipated outages at our generation
facilities, adverse results in current and future litigation, failure to
identify or successfully implement acquisitions and repowerings, our ability
to implement value enhancing improvements to plant operations and companywide
processes, our ability to obtain federal loan guarantees, the inability to
maintain or create successful partnering relationships, our ability to operate
our businesses efficiently including NRG Yield, our ability to retain retail
customers, our ability to realize value through our commercial operations
strategy and the creation of NRG Yield, the ability to successfully integrate
the businesses of NRG and GenOn, the ability to realize anticipated benefits
of the transaction (including expected cost savings and other synergies) or
the risk that anticipated benefits may take longer to realize than expected,
and share repurchase under the Capital Allocation Plan 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. The Adjusted EBITDA guidance and free cash flows are estimates as
of today’s date, August 9, 2013 and are based on assumptions believed to be
reasonable as of this date. NRG expressly disclaims any current intention to
update such guidance. 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 news 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. In addition, NRG makes available free of
charge at www.nrgenergy.com (in the “Investors” section), copies of materials
it files with, or furnish to, the SEC.

                                                     
NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
                                                          
                                  Three Months ending     Six Months ending

                                  June 30,                June 30,
                                  2013      2012        2013       2012
(In millions, except for per
share amounts)
Operating Revenues
Total operating revenues          $ 2,929   $ 2,166     $ 5,010    $ 4,028
Operating Costs and Expenses
Cost of operations                2,059       1,337       3,824        2,920
Depreciation and amortization     305         234         603          464
Selling, general and              213         183         442          389
administrative
Acquisition-related
transaction and integration       37          —           69           —
costs
Development activity expenses     20        15          36         28
Total operating costs and         2,634     1,769       4,974      3,801
expenses
Operating Income                  295       397         36         227
Other Income/(Expense)
Equity in earnings of             8           14          11           22
unconsolidated affiliates
Other income, net                 —           2           4            3
Loss on debt extinguishment       (21)        —           (49)         —
Interest expense                  (206)     (167)       (402)      (332)
Total other expense               (219)     (151)       (436)      (307)
Income/(Loss) Before Income       76          246         (400)        (80)
Taxes
Income tax benefit                (61)      (13)        (210)      (133)
Net Income/(Loss)                 137         259         (190)        53
Less: Net income attributable     7         8           8          9
to noncontrolling interest
Net Income/(Loss)
Attributable to NRG Energy,       130         251         (198)        44
Inc.
Dividends for preferred           3         3           5          5
shares
Income/(Loss) Available for       $ 127     $ 248       $ (203)    $ 39
Common Stockholders
Earnings/(Loss) Per Share
Attributable to NRG Energy,
Inc. Common Stockholders
Weighted average number of
common shares outstanding —       323         228         323          228
basic
Earnings/(Loss) per weighted      $ 0.39    $ 1.09      $ (0.63)   $ 0.17
average common share — basic
Weighted average number of
common shares outstanding —       327         229         323          229
diluted
Earnings/(Loss) per weighted
average common share —            $ 0.39    $ 1.08      $ (0.63)   $ 0.17
diluted
Dividends Per Common Share        $ 0.12    $ —         $ 0.21     $ —
                                                                       

                                                        
NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS)

(Unaudited)
                                                             
                                     Three Months ending     Six Months ending

                                     June 30,                June 30,
                                     2013       2012        2013      2012
Net Income/(Loss)                    $ 137       $ 259       $ (190)    $ 53
Other Comprehensive
Income/(Loss), net of tax
Unrealized gain/(loss) on
derivatives, net of income tax       17          (80)        24         (89)
(expense)/ benefit of $(12),
$47, $(3) and $52
Foreign currency translation
adjustments, net of income tax       (19)        (8)         (19)       (2)
benefit of $12, $5, $12 and $2
Available-for-sale securities,
net of income tax                    —           —           2          —
benefit/(expense) of $2, $0,
$(1) and $0
Defined benefit plans, net of        20         —           25        —
tax expense of $9, $0, $4 and $0
Other comprehensive                  18         (88)        32        (91)
income/(loss)
Comprehensive Income/(Loss)          155         171         (158)      (38)
Less: Comprehensive income
attributable to noncontrolling       7          8           8         9
interest
Comprehensive Income/(Loss)          148         163         (166)      (47)
Attributable to NRG Energy, Inc.
Dividends for preferred shares       3          3           5         5
Comprehensive Income/(Loss)
Available for Common                 $ 145      $ 160       $ (171)   $ (52)
Stockholders
                                                                        

                                                        
NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
                                                             
                                           June 30, 2013     December 31, 2012
                                           (unaudited)
(In millions, except shares)
ASSETS
Current Assets
Cash and cash equivalents                  $   1,368         $    2,087
Funds deposited by counterparties          134               271
Restricted cash                            267               217
Accounts receivable — trade, less
allowance for doubtful accounts of $32     1,290             1,061
and $32
Inventory                                  874               911
Derivative instruments                     1,853             2,644
Cash collateral paid in support of         387               229
energy risk management activities
Deferred income taxes                      10                56
Renewable energy grant receivable          345               58
Prepayments and other current assets       415              401           
Total current assets                       6,943            7,935         
Property, plant and equipment, net of
accumulated depreciation of $5,959 and     20,454           20,241        
$5,417
Other Assets
Equity investments in affiliates           639               676
Note receivable, less current portion      70                79
Goodwill                                   1,954             1,956
Intangible assets, net of accumulated      1,120             1,200
amortization of $1,851 and $1,706
Nuclear decommissioning trust fund         503               473
Derivative instruments                     587               662
Deferred income taxes                      1,644             1,288
Other non-current assets                   578              600           
Total other assets                         7,095            6,934         
Total Assets                               $   34,492       $    35,110   
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt and      $   737           $    147
capital leases
Accounts payable                           1,196             1,171
Derivative instruments                     1,512             1,981
Cash collateral received in support of     134               271
energy risk management activities
Accrued expenses and other current         832             1,100         
liabilities
Total current liabilities                  4,411           4,670         
Other Liabilities
Long-term debt and capital leases          15,889            15,736
Nuclear decommissioning reserve            287               354
Nuclear decommissioning trust              287               273
liability
Deferred income taxes                      47                55
Derivative instruments                     420               500
Out-of-market contracts                    1,182             1,231
Other non-current liabilities              1,417            1,555         
Total non-current liabilities              19,529           19,704        
Total Liabilities                          23,940           24,374        
3.625% convertible perpetual preferred
stock (at liquidation value, net of        249               249
issuance costs)
                                                             
Commitments and Contingencies
Stockholders’ Equity
Common Stock                               4                 4
Additional paid-in capital                 7,615             7,587
Retained earnings                          4,179             4,448
Less treasury stock, at cost —
77,416,791 and 76,505,718 shares,          (1,944     )      (1,920        )
respectively
Accumulated other comprehensive loss       (118       )      (150          )
Noncontrolling interest                    567              518           
Total Stockholders’ Equity                 10,303           10,487        
Total Liabilities and Stockholders’        $   34,492       $    35,110   
Equity
                                                                  

                                                                 
NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)
                                                                             
                                                      Six Months ended June 30
                                                      2013           2012
                                                      (In millions)
Cash Flows from Operating Activities
Net (loss)/ Income                                    $  (190   )   $ 53
Adjustments to reconcile net (loss)/income to net
cash provided by operating activities:
Distributions and equity in earnings of               5              (1      )
unconsolidated affiliates
Depreciation and amortization                         603            464
Provision for bad debts                               23             17
Amortization of nuclear fuel                          16             16
Amortization of financing costs and debt              (26       )    17
discount/premiums
Adjustment to loss on debt extinguishment             (16       )    1
Amortization of intangibles and out-of-market         124            81
contracts
Amortization of unearned equity compensation          24             18
Changes in deferred income taxes and liability        (224      )   (145    )
for uncertain tax benefits
Changes in nuclear decommissioning trust              25             17
liability
Changes in derivative instruments                     174            74
Changes in collateral deposits supporting energy      (158      )   240
risk management activities
Cash used by changes in other working capital         (458      )    (267    )
Net Cash (Used)/Provided by Operating Activities      (78       )   585     
Cash Flows from Investing Activities
Acquisitions of business, net of cash acquired        (39       )    —
Capital expenditures                                  (1,281    )   (1,593  )
Increase in restricted cash, net                      (31       )   (58     )
(Increase)/decrease in restricted cash to support     (16       )    142
equity requirements for U.S. DOE funded projects
Increase in notes receivable                          (11       )   (21     )
Investments in nuclear decommissioning trust fund     (233      )    (236    )
securities
Proceeds from sales of nuclear decommissioning        208           220
trust fund securities
Proceeds from renewable energy grants                 48             35
Other                                                 (20       )    (44     )
Net Cash Used by Investing Activities                 (1,375    )   (1,555  )
Cash Flows from Financing Activities
Payment of dividends to common and preferred          (73       )    (5      )
stockholders
Payment for treasury stock                            (25       )    —
Net receipts from/(payments for) settlement of
acquired derivatives that include financing           171            (44     )
elements
Proceeds from issuance of long-term debt              1,472          927
Contributions and sales proceeds from                 33             270
noncontrolling interests in subsidiaries
Proceeds from issuance of common stock                9              —
Payment of debt issuance costs                        (35       )    (12     )
Payments for short and long-term debt                 (816      )    (121    )
Net Cash Provided by Financing Activities             736           1,015   
Effect of exchange rate changes on cash and cash      (2        )    (1      )
equivalents
Net (Decrease)/Increase in Cash and Cash              (719      )   44
Equivalents
Cash and Cash Equivalents at Beginning of Period      2,087         1,105   
Cash and Cash Equivalents at End of Period            $  1,368      $ 1,149 
                                                                             


Appendix Table A-1: Second Quarter 2013 Regional Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net
income/ (loss)
                                                                                         
(dollars in                          South                   Other          NRG     Alt.
millions)         Retail  Texas           East  West                               Corp.  Total
                                     Central                 Conventional   Yield   Energy
Net               (82)    169    6        142   37    (3)           33     (29)    (143)  130
Income/(Loss)
Plus:
Net Income
Attributable to     -        -       -         -      -      -              -       4        3       7
Non-Controlling
Interest
Income Tax          -        -       -         -      -      1              1       -        (63)    (61)
Interest            -        -       4         14     (1)    -              6       17       164     204
Expense, net
Depreciation,
Amortization        36       112     25        82     13     1              9       27       7       312
and ARO Expense
Loss on Debt        -        -       -         -      -      -              -       -        21      21
Extinguishment
Amortization of   18      12     (6)      (8)   (2)   -             -      -       1      15
Contracts
EBITDA              (28)     293     29        230    47     (1)            49      19       (10)    628
Adjustment to
reflect NRG
share of
Adjusted EBITDA     -        -       1         -      1      4              12      6        (8)     16
in
unconsolidated
affiliates
Integration &
Transaction         -        -       -         -      -      -              -       -        37      37
Costs
Deactivation        -        -       -         6      2      -              -       -        -       8
costs
Asset and
Investment          -        3       -         -      -      -              -       -        -       3
Write-offs
Economic Hedge      168      (179)   (12)      (73)   -      -              -       (2)      -       (98)
                                                                                
Adjusted EBITDA   140     117    18       163   50    3             61     23      19     594
                                                                                                     

                                                                                         
Appendix Table A-2: Second Quarter 2012 Regional Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net
income/ (loss)
                                                                                                     
(dollars in                          South                   Other          NRG     Alt.
millions)         Retail  Texas           East  West                               Corp.  Total
                                     Central                 Conventional   Yield   Energy
Net               797     (427)  11       (13)  21    7             (1)    (14)    (130)  251
Income/(Loss)
Plus:
Net Income
Attributable to     -        -       -         -      -      -              -       8        -       8
Non-Controlling
Interest
Income Tax          -        -       -         -      -      2              (1)     1        (15)    (13)
Interest            1        -       4         5      -      1              16      1        135     163
Expense, net
Depreciation,
Amortization        44       114     23        33     4      -              6       10       2       236
and ARO Expense
Amortization of   33      11     (4)      -     -     -             -      -       -      40
Contracts
EBITDA              875      (302)   34        25     25     10             20      6        (8)     685
Adjustment to
reflect NRG
share of
Adjusted EBITDA     -        -       -         -      -      4              5       1        (2)     8
in
unconsolidated
affiliates
Asset Write Off     -        1       -         -      -      -              -       -        -       1
and Impairment
Transaction fee     -        -       -         -      -      -              -       -        1       1
on asset sale
Economic Hedge      (656)    529     (6)       (8)    (2)    -              -       3        -       (140)
                                                                                
Adjusted EBITDA   219     228    28       17    23    14            25     10      (9)    555
                                                                                                     

                                                                                         
Appendix Table A-3: YTD Second Quarter 2013 Regional Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net
income/ (loss)
                                                                                                     
(dollars in                          South                   Other          NRG     Alt.
millions)         Retail  Texas           East  West                               Corp.  Total
                                     Central                 Conventional   Yield   Energy
Net               287     (257)  (1)      (17)  30    -             40     (55)    (225)  (198)
Income/(Loss)
Plus:
Net Income
Attributable to     -        -       -         -      -      -              -       5        3       8
Non-Controlling
Interest
Income Tax          -        -       -         -      -      1              5       -        (216)   (210)
Interest            1        -       8         27     (1)    -              11      23       328     397
Expense, net
Depreciation,
Amortization        68       225     49        162    27     2              19      51       10      613
and ARO Expense
Loss on Debt        -        -       -         -      -      -              -       -        49      49
Extinguishment
Amortization of   39      21     (11)     (19)  (4)   -             -      -       -      26
Contracts
EBITDA              395      (11)    45        153    52     3              75      24       (51)    685
Adjustment to
reflect NRG
share of
Adjusted EBITDA     -        -       1         -      1      8              20      11       (8)     33
in
unconsolidated
affiliates
Integration &
Transaction         -        -       -         -      -      -              -       -        69      69
Costs
Deactivation        -        -       -         9      2      -              -       -        -       11
costs
Asset and
Investment          -        3       -         -      -      -              -       -        1       4
Write-offs
Economic Hedge      (152)    197     (37)      159    (1)    -              -       (1)      -       165
                                                                                
Adjusted EBITDA   243     189    9        321   54    11            95     34      11     967
                                                                                                     

                                                                                         
Appendix Table A-4: YTD Second Quarter 2012 Regional Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net
income/ (loss)
                                                                                                     
(dollars in                          South                   Other          NRG     Alt.
millions)         Retail  Texas           East  West                               Corp.  Total
                                     Central                 Conventional   Yield   Energy
Net               804     (501)  (19)     (61)  7     13            4      (29)    (174)  44
Income/(Loss)
Plus:
Net Income
Attributable to     -        -       -         -      -      -              -       9        -       9
Non-Controlling
Interest
Income Tax          -        -       -         -      -      4              2       1        (140)   (133)
Interest            2        -       9         9      (1)    1              20      7        281     328
Expense, net
Depreciation,
Amortization        85       229     46        65     7      -              12      19       4       467
and ARO Expense
Amortization of   67      19     (9)      -     -     1             -      -       -      78
Contracts
EBITDA              958      (253)   27        13     13     19             38      7        (29)    793
Adjustment to
reflect NRG
share of
Adjusted EBITDA     -        -       -         -      1      8              12      -        -       21
in
unconsolidated
affiliates
Legal               -        -       -         -      20     -              -       -        -       20
Settlement
Transaction fee     -        -       -         -      -      -              -       -        9       9
on asset sale
Asset and
Investment          -        2       -         -      -      -              -       -        1       3
Write-offs
Economic Hedge      (627)    618     25        4      4      -              -       1        -       25
                                                                                
Adjusted EBITDA   331     367    52       17    38    27            50     8       (19)   871
                                                                                                     


Appendix Table A-5: 2013 and 2012 YTD Second Quarter Adjusted Cash Flow from
Operations Reconciliations

The following table summarizes the calculation of adjusted cash flow operating
activities providing a reconciliation to net cash provided by operating
activities
                                                           
                                             Six months          Six months
(dollars in millions)                        ended               ended

                                             June 30, 2013       June 30, 2012
Net Cash (Used)/Provided by Operating        (78)                585
Activities
Adjustment for change in collateral          158                 (240)
Reclassifying of net receipts
(payments) for settlement of acquired        171                 (44)
derivatives that include financing
elements
Add: GenOn Merger and integration          80                —
costs
Adjusted Cash Flow from Operating          331               301
Activities
                                                                 

EBITDA and Adjusted EBITDA are non-GAAP financial measures. These measurements
are not recognized in accordance with GAAP and should not be viewed as an
alternative to GAAP measures of performance. The presentation of Adjusted
EBITDA should not be construed as an inference that NRG’s future results will
be unaffected by unusual or non-recurring items.

EBITDA represents net income before interest (including loss on debt
extinguishment), taxes, depreciation and amortization. EBITDA is presented
because NRG considers it an important supplemental measure of its performance
and believes debt-holders frequently use EBITDA to analyze operating
performance and debt service capacity. EBITDA has limitations as an analytical
tool, and you should not consider it in isolation, or as a substitute for
analysis of our operating results as reported under GAAP. Some of these
limitations are:

  *EBITDA does not reflect cash expenditures, or future requirements for
    capital expenditures, or contractual commitments;
  *EBITDA does not reflect changes in, or cash requirements for, working
    capital needs;
  *EBITDA does not reflect the significant interest expense, or the cash
    requirements necessary to service interest or principal payments, on debt
    or cash income tax payments;
  *Although depreciation and amortization are non-cash charges, the assets
    being depreciated and amortized will often have to be replaced in the
    future, and EBITDA does not reflect any cash requirements for such
    replacements; and
  *Other companies in this industry may calculate EBITDA differently than NRG
    does, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered as a measure of
discretionary cash available to use to invest in the growth of NRG’s business.
NRG compensates for these limitations by relying primarily on our GAAP results
and using EBITDA and Adjusted EBITDA only supplementally. See the statements
of cash flow included in the financial statements that are a part of this news
release.

Adjusted EBITDA is presented as a further supplemental measure of operating
performance. Adjusted EBITDA represents EBITDA adjusted for mark-to-market
gains or losses, asset write offs and impairments; and factors which we do not
consider indicative of future operating performance. The reader is encouraged
to evaluate each adjustment and the reasons NRG considers it appropriate for
supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to
all of the limitations applicable to EBITDA. In addition, in evaluating
Adjusted EBITDA, the reader should be aware that in the future NRG may incur
expenses similar to the adjustments in this news release.

Adjusted cash flow from operating activities is a non-GAAP measure NRG
provides to show cash from operations with the reclassification of net
payments of derivative contracts acquired in business combinations from
financing to operating cash flow, as well as the add back of merger and
integration related costs. The Company provides the reader with this
alternative view of operating cash flow because the cash settlement of these
derivative contracts materially impact operating revenues and cost of sales,
while GAAP requires NRG to treat them as if there was a financing activity
associated with the contracts as of the acquisition dates. The Company adds
back merger and integration related costs as they are one time and unique in
nature and do not reflect ongoing cash from operations and they are fully
disclosed to investors.

Free cash flow (before growth investments) is adjusted cash flow from
operations less maintenance and environmental capital expenditures, net of
funding, and preferred stock dividends and is used by NRG predominantly as a
forecasting tool to estimate cash available for debt reduction and other
capital allocation alternatives. The reader is encouraged to evaluate each of
these adjustments and the reasons NRG considers them appropriate for
supplemental analysis. Because we have mandatory debt service requirements
(and other non-discretionary expenditures) investors should not rely on free
cash flow before growth investments as a measure of cash available for
discretionary expenditures.

Contact:

NRG Energy, Inc.
Media:
Karen Cleeve, 609-524-4608
Dave Knox, 713-537-2130
or
Investors:
Chad Plotkin, 609-524-4526
Lori Stagliano, 609-524-4528
 
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