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NRG Energy, Inc.$36.09($.07)(.19%)

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 NRG Energy, Inc. Reports First Quarter Results, Completes 311 MW Solar Asset Drop Down and Reaffirms 2017 Financial Guidance
   Tuesday, May 02, 2017 6:47:01 AM ET

--Completed drop down to NRG Yield of 311 net MWs of utility-scale solar assets for total cash consideration of $130 million(1)

--Reaffirming 2017 Adjusted EBITDA and Free Cash Flow before Growth (FCFbG) guidance

--Established the Business Review Committee to make recommendations to the full Board on its stated initiatives

--Offered to NRG Yield remaining 25% interest in NRG Wind TE Holdco, an 814 net MW portfolio of 12 wind facilities

--Commenced construction at Carlsbad Energy Center in the first quarter 2017; COD expected in the fourth quarter of 2018

NRG Energy, Inc. (NRG ) today reported first quarter net loss of $203 million, or $0.52 per diluted common share compared to net income of $47 million, or $0.24 per diluted common share for the first three months of 2016. Adjusted EBITDA for the three months ended March 31, 2017 was $412 million and year-to-date cash used by operations totaled $68 million.



"We are pleased to reaffirm our financial guidance amid challenging market conditions this quarter," said Mauricio Gutierrez, NRG President and Chief Executive Officer. "We remain focused on our strategic priorities of simplifying and streamlining the business, optimizing our portfolio and strengthening the balance sheet."

                                                    
Consolidated Financial Results
                                                                                                      Three Months Ended
                                                                                           -----------------------------------------------------------------------
($ in millions)                                                                              3/31/17               3/31/16
------------------------------------------------                                           -----------                                          -------------------------
Net (Loss)/Income                                                                           $ (203 )                                              $                   47
Cash (Used by)/From Operations                                                              $  (68 )                                              $                  554
Adjusted EBITDA                                                                             $  412                                                $                  812
Free Cash Flow Before Growth Investments (FCFbG)      $  (96 )        $                  249
------------------------------------------------ -------------------- -------------------- -- ---- -- -------------------- -------------------- --- --------------------
                                                                                                                                                     

(1) Prior to working capital adjustments

                              
Segment Results
 
Table 1: Net (Loss)/Income
                                                                      
($ in millions)                                                                                     Three Months Ended
                                                                     ---------------------------------------------------------------------------------
Segment                                                                3/31/17                 3/31/16
--------------------------                                           -----------                                          ----------------------------
Generation                                                            $   67                                               $ 191
Retail                                                                   (33 )                                               150
Renewables (1)                                                           (31 )                                               (40 )
NRG Yield (1)                                                             (1 )                                                 2
Corporate                                                               (205 )                                              (256 )
--------------------------                                           ----------                                           ---------------------------
Net (Loss)/Income (2)                                                 $ (203 )                                             $  47  
--------------------------                                           == ==== ==                                           == === ====================

(1.) In accordance with GAAP, 2016 results have been restated to include full impact of the assets in the NRG Yield Drop Down transactions which closed on September 1, 2016, and March 27, 2017. (2.) Includes mark-to-market gains and losses of economic hedges.

                            
Table 2: Adjusted EBITDA
                                                                    
($ in millions)                                                                                            Three Months Ended
                                                                   --------------------------------------------------------------------------------------------------
Segment                                                                       3/31/17                         3/31/16
------------------------                                           ----------------------------                                          ----------------------------
Generation (1)                                                      $ 111                                                                 $ 466
Retail                                                                133                                                                   156
Renewables (2)                                                         25                                                                    33
NRG Yield (2)                                                         184                                                                   198
Corporate                                                             (41 )                                                                 (41 )
------------------------                                           ---------------------------                                           ---------------------------
Adjusted EBITDA (3)                                                 $ 412                                              $ 812  
------------------------                                           == === ====================                                           == === ====================

(1.) See Appendices A-4 through A-5 for Generation regional Reg G reconciliations. (2.) In accordance with GAAP, 2016 results have been restated to include full impact of the assets in the NRG Yield Drop Down transactions which closed on September 1, 2016, and March 27, 2017. (3.) See Appendices A-1 through A-2 for Operating Segment Reg G reconciliations.

Generation: First quarter Adjusted EBITDA was $111 million, $355 million lower than first quarter 2016 primarily driven by:

-- Gulf Coast Region: $117 million decrease due primarily to lower realized energy margins in Texas from lower realized prices, including the impact of hedges, and lower cleared auction prices in PJM resulting in lower capacity revenues in South Central

-- East Region: $136 million decrease due to lower capacity prices, lower realized energy margins on lower dispatch, monetization of hedges from 2017 in 2016, and assets sold in 2016; partially offset by reduced operating costs from fewer planned outages and plant deactivations

-- West Region: $54 million decrease due to the gain from sale of emissions credits in the first quarter of 2016 and the retirement of Pittsburg on January 1, 2017

-- Other Generation: $48 million decrease driven mainly by lower trading results at BETM

Retail: First quarter Adjusted EBITDA was $133 million, $23 million lower than first quarter 2016 due primarily to lower margin from mild weather and associated supply costs, which was partially offset by customer growth.

Renewables: First quarter Adjusted EBITDA was $25 million, $8 million lower than first quarter 2016 due to a transmission outage at Agua Caliente and lower solar insolation, partially offset by higher generation at Ivanpah.

NRG Yield: First quarter Adjusted EBITDA was $184 million, $14 million lower than first quarter 2016 due to a forced outage at El Segundo Energy Center, lower solar and wind resource primarily in California, which led to decreased production, partially offset by the acquisition of the Utah utility-scale solar assets.

Corporate: First quarter Adjusted EBITDA was unchanged from the first quarter 2016 as higher advisory spend incurred to assist the Company in its strategic review as well as advisory services associated with GenOn was offset by lower operating losses at residential solar.

                                                                        
Liquidity and Capital Resources
 
Table 3: Corporate Liquidity
                                                                                                                                                      
($ in millions)                                                                          3/31/17                                                            12/31/16
----------------------------------                                           ------------------------------                                          ----------------------
Cash at NRG-Level (1)                                                         $   381                                                                         $        570
Revolver Availability                                                                                1,364                                                           1,217
----------------------------------                                           ------------------------------                                          ----------------------
NRG-Level Liquidity                                                           $ 1,745                                                                         $      1,787
Restricted cash                                                                                        397                                                             446
Cash at Non-Guarantor Subsidiaries        1,132                       1,403
---------------------------------- -------------------- -------------------- ----------------------------- -------------------- -------------------- ----------------------
Total Liquidity                         $ 3,274                $      3,636
================================== ==================== ==================== == ===== ==================== ==================== ==================== ========== ==========

(1)Includes unrestricted cash held at Midwest Generation (a non-guarantor subsidiary), which can be distributed to NRG without limitation.

NRG-Level cash as of March 31, 2017, was $381 million, a decrease of $189 million from December 31, 2016, and $1.4 billion was available under the Company’s credit facilities at the end of the first quarter 2017. Total liquidity was $3.3 billion, including restricted cash and cash at non-guarantor subsidiaries (primarily GenOn and NRG Yield). On February 28, 2017, GenOn drew $125 million on letters of credit under its intercompany revolver with NRG to support the GenOn Mid-Atlantic operating leases; NRG subsequently drew $125 million on its revolver facility to fund the GenOn intercompany draw.

NRG Strategic Developments

On May 1, 2017, NRG offered its remaining 25% interest in NRG Wind TE Holdco, an 814 net MW portfolio of twelve wind projects to NRG Yield. NRG Yield currently owns a 75% interest in the portfolio, which it acquired in 2015. The acquisition is subject to negotiation and approval by NRG Yield’s independent directors.

Drop Down to NRG Yield

On March 27, 2017, the Company sold to NRG Yield, Inc.: (i) a 16% interest in the Agua Caliente solar project, representing ownership of approximately 46 net MW of capacity and (ii) NRG’s interests in seven utility-scale solar projects located in Utah representing 265 net MW of capacity. NRG Yield Inc. paid cash consideration of $130 million, plus $1 million in working capital adjustments, and assumed non-recourse debt of approximately $463 million(2).

Business Review Committee

During the quarter, the NRG Board of Directors established the Business Review Committee (BRC). The BRC was established to evaluate and make recommendations to the Board regarding the Company’s (a) operational and cost excellence initiatives, (b) potential portfolio and/or asset de-consolidations, dispositions and optimization, (c) capital structure and allocation and (d) broader strategic initiatives. NRG plans to update the market as soon as practicable following a recommendation from the BRC.

2017 Guidance

NRG is reaffirming its guidance range for fiscal year 2017 with respect to both Adjusted EBITDA and FCF before growth investments.

(2) Approximately $328 million on balance sheet and $135 million pro-rata share of unconsolidated debt

                                                                 
Table 4: 2017 Adjusted EBITDA and FCF before Growth Investments
Guidance
                                                                        2017
---------------------------------------------------------------                      ---------------
($ in millions)                                                                          Guidance
---------------------------------------------------------------                      ---------------
Adjusted EBITDA(1)                                                                   $2,700 - $2,900
Cash From Operations                                                                 $1,355 - $1,555
Free Cash Flow Before Growth Investments (FCFbG)                                       $800 - $1,000
---------------------------------------------------------------                      ---------------

(1.) Non-GAAP financial measure; see Appendix Tables A-1 through 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

On April 7, 2017, NRG declared a quarterly dividend on the company’s common stock of $0.03 per share, payable May 15, 2017, to stockholders of record as of May 1, 2017, representing $0.12 on an annualized basis.

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

On May 2, 2017 NRG will host a conference call at 8:00 a.m. 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.nrg.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 the leading integrated power company in the U.S., built on the strength of the nation’s largest and most diverse competitive electric generation portfolio and leading retail electricity platform. A Fortune 200 company, NRG creates value through best in class operations, reliable and efficient electric generation, and a retail platform serving residential and commercial customers. Working with electricity customers, large and small, we continually innovate, embrace and implement sustainable solutions for producing and managing energy. We aim to be pioneers in developing smarter energy choices and delivering exceptional service as our retail electricity providers serve almost 3 million residential and commercial customers throughout the country. More information is available at www.nrg.com. Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.

Safe Harbor Disclosure

In addition to historical information, the information presented in this communication 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, GenOn’s and certain of its subsidiaries’ ability to continue as a going concern, general economic conditions, hazards customary in the power production industry and power generation operations, weather conditions (including wind and solar 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, the effectiveness of our risk management policies and procedures, changes in government regulations, the condition of capital markets generally, our ability to borrow funds and access capital markets, 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 proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, risks related to project siting, financing, construction, permitting, government approvals and the negotiation of project development agreements, our ability to progress development pipeline projects, 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 businesses of acquired companies, 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, our ability to close the drop down transactions with NRG Yield, and our ability to execute our capital allocation plan. 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, cash from operations, and free cash flow guidance are estimates as of May 2, 2017. 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 Earnings 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 March 31,
                                                                                                                         ---------------------------------------------------------------------------------------------------------------
(In millions, except for per share                                                                                                       2017                                   2016
amounts)
------------------------------------------------------------------------------                                           ----------------------------------                                             -----------------------------
Operating Revenues
   Total operating revenues                                                                                                    $   2,759                                                $ 3,229  
                                                                                                                         ------- ------- --------------------                                           ---- ----- --------------------
Operating Costs and Expenses
   Cost of operations                                                                                                              2,125                                                                     2,194
   Depreciation and amortization                                                                                                     300                                                                       313
   Selling, general and administrative                                                                                               272                                                                       252
   Development activity expenses                                                                                                      17                                                     26  
                                                                                                                         ------------------------------------                                           -------------------------------
     Total operating costs and expenses                                                                                            2,714                                                                     2,785
     Gain on sale of assets                                                                                                            2                                                     32  
                                                                                                                         ------------------------------------                                           -------------------------------
Operating Income                                                                                                                      47                                                    476  
                                                                                                                         ------------------------------------                                           -------------------------------
Other Income/(Expense)
   Equity in earnings/(losses) of unconsolidated affiliates                                                                            5                                                                        (7 )
   Impairment loss on investment                                                                                          --                                                                      (146 )
   Other income, net                                                                                                                  12                                                                        18
   (Loss)/gain on debt extinguishment, net                                                                                            (2 )                                                                      11
   Interest expense                                                                                                                 (269 )                                                                    (284 )
                                                                                                                         ------------------------------------                                           -------------------------------
     Total other expense                                                                                                            (254 )                                                                    (408 )
                                                                                                                         ------------------------------------                                           -------------------------------
(Loss)/Income Before Income Taxes                                                                                                   (207 )                                                                      68
   Income tax (benefit)/expense                                                                                                       (4 )                                                                      21  
                                                                                                                         ------------------------------------                                           -------------------------------
Net (Loss)/Income                                                                                                                   (203 )                                                                      47
   Less: Net loss attributable to noncontrolling interest and                                                                        (40 )                                                                     (35 )
   redeemable noncontrolling interests
                                                                                                                         --------------  --------------------                                           ---------  --------------------
Net (Loss)/Income Attributable to NRG Energy, Inc.                                                                                  (163 )                                                                      82
   Dividends for preferred shares                                                                                         --                                                      5  
                                                                                                                         ------------------------------------                                           -------------------------------
(Loss)/Income Available for Common Stockholders                                                                                $    (163 )                                                                 $    77  
                                                                                                                         ======= ======= ====================                                           ==== ===== ====================
(Loss)/Earnings per Share Attributable to NRG Energy, Inc. Common
Stockholders
   Weighted average number of common shares outstanding -- basic                                                         316                                                                       315
(Loss)/Earnings per Weighted Average Common Share -- Basic                                                         $   (0.52 )                                                                 $  0.24  
                                                                                                                         ======= ======= ====================                                           ==== ===== ====================
   Weighted average number of common shares outstanding -- diluted                                                       316                                                                       315
(Loss)/Earnings per Weighted Average Common Share -- Diluted                                                       $   (0.52 )                                                                 $  0.24  
                                                                                                                         ======= ======= ====================                                           ==== ===== ====================
Dividends Per Common Share                                                                                                     $    0.03                                                $  0.15  
                                                                                                                         ======= ======= ====================                                           ==== ===== ====================
                                                                                                                                                                                                                    
                                                                           
                                                                                       NRG ENERGY, INC. AND SUBSIDIARIES
                                                                                 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
                                                                                                            (Unaudited)
                                                                                                                   
                                                                                                                                                            Three months ended March 31,
                                                                                                                  ----------------------------------------------------------------------------------------------------------------
                                                                                                                                  2017                                   2016
                                                                                                                  -------------------------------------                                          ---------------------------------
                                                                                                                                                                    (In millions)
Net (loss)/income                                                                                                       $    (203 )                                                                  $    47
Other comprehensive income/(loss), net of tax
   Unrealized income/(loss) on derivatives, net of income tax expense                                                           4                                                                        (32 )
   of $1, and $1
   Foreign currency translation adjustments, net of income tax expense                                                          7                                                                          6
   of $0, and $0
   Available-for-sale securities, net of income tax expense of $0, and                                             --                                                                          3
   $0
   Defined benefit plans, net of income tax expense of $0, and $0                                                  --                                                       1  
                                                                                                                  ------------------------------------                                           --------------------------------
     Other comprehensive income/(loss)                                                                                         11                                                     (22 )
                                                                                                                  ------------------------------------                                           --------------------------------
Comprehensive (loss)/income                                                                                                  (192 )                                                                       25
   Less: Comprehensive loss attributable to noncontrolling interest and                                                       (39 )                                                                      (52 )
   redeemable noncontrolling interests
                                                                                                                  --------------  --------------------                                           ----------  --------------------
Comprehensive (loss)/income attributable to NRG Energy, Inc.                                                                 (153 )                                                                       77
   Dividends for preferred shares                                                                                  --                                                       5  
                                                                                                                  ------------------------------------                                           --------------------------------
Comprehensive (loss)/income available for common stockholders                                                           $    (153 )                                                                  $    72  
                                                                                                                  ======= ======= ====================                                           ===== ===== ====================
                                                                                                                                                                                                              
                                                                                                                           
                                                                                  NRG ENERGY, INC. AND SUBSIDIARIES
                                                                                CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                                                                                                   
                                                                                              March 31, 2017                                                               December 31, 2016
                                                                                   -------------------------------------                                          -----------------------------------
(In millions, except shares)                                                                    (unaudited)                                                        
---------------------------------------------------------------------------------- ----------------------------------                                             --------------------------------
                                      ASSETS
Current Assets
   Cash and cash equivalents                                                             $   1,513                                                                     $  1,973
   Funds deposited by counterparties                                                             3                                                                            2
   Restricted cash                                                                             397                                                                          446
   Accounts receivable, net                                                                    974                                                                        1,166
   Inventory                                                                                 1,140                                                                        1,111
   Derivative instruments                                                                      682                                                                        1,062
   Cash collateral paid in support of energy risk management activities                        277                                                                          203
   Current assets held-for-sale                                                     --                                                                            9
   Prepayments and other current assets                                                        454                                                       423  
                                                                                   ------------------------------------                                           ----------------------------------
     Total current assets                                                                    5,440                                                     6,395  
                                                                                   ------------------------------------                                           ----------------------------------
Property, plant and equipment, net                                                          17,942                                                    17,912  
                                                                                   ------------------------------------                                           ----------------------------------
Other Assets
   Equity investments in affiliates                                                          1,148                                                                        1,120
   Notes receivable, less current portion                                                       13                                                                           17
   Goodwill                                                                                    662                                                                          662
                                                                                             1,957                                                                        2,036
   Intangible assets, net
   Nuclear decommissioning trust fund                                                          627                                                                          610
   Derivative instruments                                                                      226                                                                          189
   Deferred income taxes                                                                       223                                                                          225
   Non-current assets held-for-sale                                                             10                                                                           10
   Other non-current assets                                                                  1,172                                                     1,179  
                                                                                   ------------------------------------                                           ----------------------------------
     Total other assets                                                                      6,038                                                     6,048  
                                                                                   ------------------------------------                                           ----------------------------------
Total Assets                                                                             $  29,420                                                  $ 30,355  
                                                                                   ======= ======= ====================                                           ====== ====== ====================
          LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
   Current portion of long-term debt and capital leases                                  $   1,688                                                                     $  1,220
   Accounts payable                                                                            872                                                                          895
   Derivative instruments                                                                      747                                                                        1,084
   Cash collateral received in support of energy risk management                                 3                                                                            2
   activities
   Accrued expenses and other current liabilities                                              887                                                     1,181  
                                                                                   ------------------------------------                                           ----------------------------------
     Total current liabilities                                                               4,197                                                     4,382  
                                                                                   ------------------------------------                                           ----------------------------------
Other Liabilities
   Long-term debt and capital leases                                                        17,672                                                                       18,006
   Nuclear decommissioning reserve                                                             291                                                                          287
   Nuclear decommissioning trust liability                                                     352                                                                          339
   Deferred income taxes                                                                        20                                                                           20
   Derivative instruments                                                                      315                                                                          294
   Out-of-market contracts, net                                                              1,017                                                                        1,040
   Non-current liabilities held-for-sale                                                        12                                                                           12
   Other non-current liabilities                                                             1,487                                                     1,483  
                                                                                   ------------------------------------                                           ----------------------------------
     Total non-current liabilities                                                          21,166                                                    21,481  
                                                                                   ------------------------------------                                           ----------------------------------
Total Liabilities                                                                           25,363                                                    25,863  
                                                                                   ------------------------------------                                           ----------------------------------
Redeemable noncontrolling interest in subsidiaries                                              44                                                                           46
Commitments and Contingencies
Stockholders’ Equity
   Common stock                                                                                  4                                                                            4
   Additional paid-in capital                                                                8,375                                                                        8,358
   Retained deficit                                                                         (4,238 )                                                                     (3,787 )
   Less treasury stock, at cost -- 101,858,284 and 102,140,814 shares,          (2,392 )                                                                     (2,399 )
   respectively
   Accumulated other comprehensive loss                                                       (124 )                                                                       (135 )
   Noncontrolling interest                                                                   2,388                                                     2,405  
                                                                                   ------------------------------------                                           ----------------------------------
Total Stockholders’ Equity                                        4,013                                                     4,446  
                                                                                   ------------------------------------                                           ----------------------------------
Total Liabilities and Stockholders’ Equity                    $  29,420                                                  $ 30,355  
                                                                                   ======= ======= ====================                                           ====== ====== ====================
                                                                                                                                                                                 
                                                                             
                                                                                                    NRG ENERGY, INC. AND SUBSIDIARIES
                                                                                             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                               (Unaudited)
                                                                                                                     
                                                                                                                                                                Three months ended March 31,
                                                                                                                    --------------------------------------------------------------------------------------------------------------------
                                                                                                                                    2017                                     2016
                                                                                                                    -------------------------------------                                          -------------------------------------
                                                                                                                                                                        (In millions)
Cash Flows from Operating Activities
Net (loss)/income                                                                                                         $    (203 )                                                                    $      47
  Adjustments to reconcile net (loss)/income to net cash provided by
  operating activities:
    Distributions and equity in earnings of unconsolidated affiliates                                                             8                                                                             17
    Depreciation and amortization                                                                                               300                                                                            313
    Provision for bad debts                                                                                                       9                                                                             10
    Amortization of nuclear fuel                                                                                                 12                                                                             13
    Amortization of financing costs and debt discount/premiums                                                                    1                                                                              1
    Adjustment for debt extinguishment                                                                               --                                                                            (11 )
    Amortization of intangibles and out-of-market contracts                                                                      10                                                                             26
    Amortization of unearned equity compensation                                                                                  8                                                                              8
    Impairment losses                                                                                                --                                                                            146
    Changes in deferred income taxes and liability for uncertain tax                                                              1                                                                            (25 )
    benefits
    Changes in nuclear decommissioning trust liability                                                                           36                                                                              9
    Changes in derivative instruments                                                                                            25                                                                            (50 )
    Changes in collateral posted in support of risk management activities                                                       (74 )                                                                          156
    Proceeds from sale of emission allowances                                                                        --                                                                             47
    Gain on sale of assets                                                                                                       (2 )                                                                          (32 )
    Cash used by changes in other working capital                                                                              (199 )                                                                         (121 )
                                                                                                                    ------------------------------------                                           ------------------------------------
Net Cash (Used) Provided by Operating Activities                                                                                (68 )                                                                          554  
                                                                                                                    ------------------------------------                                           ------------------------------------
Cash Flows from Investing Activities
    Acquisitions of businesses, net of cash acquired                                                                             (3 )                                                                           (6 )
    Capital expenditures                                                                                                       (268 )                                                                         (279 )
    Decrease/(increase)in restricted cash, net                                                                                   13                                                                            (12 )
    Decrease in restricted cash to support equity requirements for U.S.                                                          36                                                                             39
    DOE funded projects
    Decrease in notes receivable                                                                                                  4                                                                              1
    Purchases of emission allowances                                                                                             (9 )                                                                          (12 )
    Proceeds from sale of emission allowances                                                                                    11                                                                              7
    Investments in nuclear decommissioning trust fund securities                                                               (153 )                                                                         (200 )
    Proceeds from the sale of nuclear decommissioning trust fund                                                                117                                                                            191
    securities
    Proceeds from renewable energy grants and state rebates                                                          --                                                                              8
    Proceeds from sale of assets, net of cash disposed of                                                                        14                                                                            120
    Investments in unconsolidated affiliates                                                                                    (12 )                                                                           (4 )
    Other                                                                                                                        18                                                           4  
                                                                                                                    ------------------------------------                                           ------------------------------------
Net Cash Used by Investing Activities                                                                                          (232 )                                                                         (143 )
                                                                                                                    ------------------------------------                                           ------------------------------------
Cash Flows from Financing Activities
    Payment of dividends to common and preferred stockholders                                                                    (9 )                                                                          (48 )
    Net receipts from settlement of acquired derivatives that include                                                             1                                                                             39
    financing elements
    Proceeds from issuance of long-term debt                                                                                    192                                                                             61
    Payments for short and long-term debt                                                                                      (177 )                                                                         (316 )
    Payment for credit support in long-term deposits                                                                           (130 )                                                               --
    Proceeds from draw on revolving credit facility for long-term                                                               125                                                                 --
    deposits
    Increase in long-term deposits                                                                                             (125 )                                                               --
    Contributions to, net of distributions from, noncontrolling interest                                                         (5 )                                                                           10
    in subsidiaries
    Payment of debt issuance costs                                                                                              (15 )                                                               --
    Other - contingent consideration                                                                                            (10 )                                                                          (10 )
                                                                                                                    ------------------------------------                                           ------------------------------------
Net Cash Used by Financing Activities                                                                                          (153 )                                                                         (264 )
                                                                                                                    ------------------------------------                                           ------------------------------------
    Effect of exchange rate changes on cash and cash equivalents                                                                 (7 )                                                                           (6 )
                                                                                                                    ------------------------------------                                           ------------------------------------
Net (Decrease)/ Increase in Cash and Cash Equivalents                                                                          (460 )                                                                          141
Cash and Cash Equivalents at Beginning of Period                                                                              1,973                                                       1,518  
                                                                                                                    ------------------------------------                                           ------------------------------------
Cash and Cash Equivalents at End of Period                                                                                $   1,513                                                   $   1,659  
                                                                                                                    ======= ======= ====================                                           ======= ======= ====================
                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                          
Appendix Table A-1: First Quarter 2017 Adjusted EBITDA
Reconciliation by Operating Segment
The following table summarizes the calculation of Adj. EBITDA and
provides a reconciliation to net (loss)/income:
                                                                                                                                                                                                                                                                                                                                                                                                                 
($ in millions)                                                                           Generation                              Retail                              Renewables                             NRG Yield                             Corp/Elim                             Total
------------------------------------------------------------------------ -------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------------------
Net (Loss)/Income                                                                        67                (33 )                                 (31 )                                  (1 )                                (205 )                            (203 )
======================================================================== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ========== ====================
Plus:
    Interest expense, net                                                                                                      20                                                        1                                                       21                                                       76                                                      147                                                  265
    Income tax                                                                                                     --                                                        3                                                       (6 )                                                     (1 )                                         --                                                   (4 )
    Loss on debt extinguishment                                                                                    --                                           --                                                        2                                           --                                           --                                                    2
    Depreciation and amortization                                                                                             138                                                       28                                                       49                                                       75                                                       10                                                  300
    ARO Expense                                                                                                                13                                           --                                           --                                                        1                                           --                                                   14
    Amortization of contracts                                                                                                  (5 )                                                      1                                           --                                                       17                                           --                                                   13
    Amortization of leases                                                              (12 )                      --     --     --     --            (12 )
------------------------------------------------------------------------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
EBITDA                                                                                                                        221                                           --                                                       35                                                      167                                                      (48 )                                                375
    Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated                                                       13                                                       (3 )                                                     (4 )                                                     13                                           --                                                   19
    affiliates
    Acquisition-related transaction & integration costs                                                            --                                           --                                           --                                                        1                                           --                                                    1
    Reorganization costs                                                                                           --                                           --                                           --                                           --                                                        8                                                    8
    Deactivation costs                                                                                                          3                                           --                                           --                                           --                                                        1                                                    4
    Other non recurring charges                                                                                                (1 )                                                     (1 )                                         --                                                        3                                                       (2 )                                                 (1 )
    Mark to market (MtM) (gains)/losses on economic hedges                             (125 )                                 137                 (6 )                      --     --              6  
------------------------------------------------------------------------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA                                                                         111                133                 25                184                (41 )                             412  
------------------------------------------------------------------------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                          
First Quarter 2017 condensed financial information by Operating
Segment:
                                                                                                                                                                                                                                                                                                                                                                 
($ in millions)                                                           Generation                     Retail                     Renewables                    NRG Yield                        Corp/Elim                             Total
------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------- ----------------------------------------------- ----------------------------------------------- ---------------------------------------------- -------------------------------------------------------- --------------------------------
    Operating revenues                                                                                  1,208                                           1,334                                              92                                            235                                                     (223 )                                              2,646
    Cost of sales                                                   600       997         4       16               (213 )                           1,404  
------------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Economic gross margin                                                                                     608                                             337                                              88                                            219                                                      (10 )                                              1,242
    Operations & maintenance and other cost of operations (a)                                             414                                              80                                              34                                             67                                                      (12 )                                                583
    Selling, marketing, general and administrative(b)                                                      82                                             119                                              15                                              4                                                       43                                                  263
    Other expense/(income)                                            1         5        14      (36 )                      --            (16 )
------------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA                                                     111       133        25      184                (41 )                             412  
------------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------

(a) Excludes deactivation costs of $4 million. (b) Excludes reorganization costs of $8 million and integration costs of $1 million.

                                                                                                                                                                                                                                                         
The following table reconciles the condensed financial information
to Adjusted EBITDA:
                                                                                                                                                                                                                                                                                                                                                                                                
($ in millions)                                               Condensed financial information         Interest, tax, depr., amort.                       MtM                              Deactivation                           Other adj.                        Adjusted EBITDA
------------------------------------------------------ -------------------- -------------------- --------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------------------
 Operating revenues                                                                                        2,759                                                       15                                                     (128 )                                         --                                           --                                                2,646
 Cost of operations                                                  1,536                  2               (134 )                      --     --          1,404  
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Gross margin                                                                                               1,223                                                       13                                                        6                                           --                                           --                                                1,242
 Operations & maintenance and other cost of operations                                                       589                                                       (2 )                                         --                                                       (4 )                                         --                                                  583
 Selling, marketing, general & administrative (a)                                                            272                                           --                                           --                                           --                                                       (9 )                                                263
 Other expense/(income)                                                565               (582 )                      --     --                  1            (16 )
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Net Loss                                                              (203 )                                 597                  6                  4                  8            412  
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------

(a) Other adj. includes reorganization costs of $8 million and integration costs of $1 million.

                                                                                                                                                                                                                                                                       
Appendix Table A-2: First Quarter 2016 Adjusted EBITDA
Reconciliation by Operating Segment
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to net income/(loss):
                                                                                                                                                                                                                                                                                                                                                                                                              
($ in millions)                                                                        Generation                              Retail                              Renewables                             NRG Yield                             Corp/Elim                             Total
--------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------------------
Net Income/(Loss)                                                                    191                150                (40 )                                   2               (256 )                              47  
===================================================================== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ========== ====================
Plus:
 Interest expense, net                                                                                                      10                                           --                                                       27                                                       74                                                                           170                                                  281
 Income tax                                                                                                     --                                           --                                                       (6 )                                         --                                                       27                                                   21
 Gain on debt extinguishment                                                                                    --                                           --                                           --                                           --                                                      (11 )                                                (11 )
 Depreciation and amortization                                                                                             144                                                       30                                                       48                                                       74                                                       17                                                  313
 ARO Expense                                                                                                                 9                                           --                                           --                                                        1                                           --                                                   10
 Amortization of contracts                                                                                                  (2 )                                                      3                                           --                                                       23                                                       (3 )                                                 21
 Amortization of leases                                                              (12 )                      --     --     --     --            (12 )
--------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
EBITDA                                                                                                                     340                                                      183                                                       29                                                      174                                                      (56 )                                                670
 Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated                                                        9                                           --                                           --                                                       24                                                        1                                                   34
 affiliates
 Reorganization costs                                                                                                        1                                                        5                                                        2                                           --                                                        2                                                   10
 Deactivation costs                                                                                                          7                                           --                                           --                                           --                                           --                                                    7
 Gain on sale of business                                                                                                  (29 )                                         --                                           --                                           --                                           --                                                  (29 )
 Other non recurring charges                                                                                                 2                                                        1                                                        3                                           --                                                        3                                                    9
 Impairments                                                                                                               137                                           --                                           --                                           --                                                        9                                                  146
 Mark to market (MtM) (gains)/losses on economic hedges                               (1 )                                 (33 )                                  (1 )                      --     --            (35 )
--------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA                                                                      466                156                 33                198                (41 )                             812  
--------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                      
First Quarter 2016 condensed financial information by Operating
Segment:
                                                                                                                                                                                                                                                                                                                                                             
($ in millions)                                                        Generation                          Retail                         Renewables                    NRG Yield                   Corp/Elim                        Total
---------------------------------------------------------- -------------------- -------------------- ----------------------------------------------- -------------------------------------------------------- ----------------------------------------------- ---------------------------------------------- ---------------------------------------------- --------------------------------
 Operating revenues                                                                                  1,702                                                    1,371                                              95                                            251                                           (201 )                                              3,218
 Cost of sales                                                   666              1,025         2       16     (204 )                           1,505  
---------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ---------- --------------------
Economic gross margin                                                                                1,036                                                      346                                              93                                            235                                              3                                                1,713
 Operations & maintenance and other cost of operations (a)                                             501                                                       84                                              38                                             61                                              3                                                  687
 Selling, marketing, general & administrative (b)                                                       85                                                      106                                              12                                              3                                             36                                                  242
 Other expense/(income) (c)                                      (16 )                      --        10      (27 )                         5            (28 )
---------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA                                                  466                156        33      198      (41 )                             812  
---------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ---------- --------------------

(a) Excludes deactivation costs of $7 million. (b) Excludes reorganization costs of $10 million. (c) Excludes impairments of $146 million, gain on sale of business of $29 million and gain on debt extinguishment of $11 million.

                                                                                                                                                                                                                                                         
The following table reconciles the condensed financial information
to Adjusted EBITDA:
                                                                                                                                                                                                                                                                                                                                                                                                
($ in millions)                                               Condensed financial information         Interest, tax, depr., amort.                       MtM                              Deactivation                           Other adj.                        Adjusted EBITDA
------------------------------------------------------ -------------------- -------------------- --------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------------------
 Operating revenues                                                                                        3,229                                                       15                                                      (26 )                                         --                                           --                                                3,218
 Cost of operations                                                  1,502                 (6 )                                   9     --     --          1,505  
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Gross margin                                                                                               1,727                                                       21                                                      (35 )                                         --                                           --                                                1,713
 Operations & maintenance and other cost of operations                                                       692                                                        2                                           --                                                       (7 )                                         --                                                  687
 Selling, marketing, general & administrative (a)                                                            252                                           --                                           --                                           --                                                      (10 )                                                242
 Other expense/(income) (b)                                            736               (649 )                      --     --               (115 )                             (28 )
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Net Income                                                              47                668                (35 )                                   7                125            812  
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------

(a) Other adj. includes reorganization costs of $10 million. (b) Other adj. includes impairments of $146 million, gain on sale of business of $29 million and gain on debt extinguishment of $11 million.

                                                                        
Appendix Table A-3: 2017 and 2016 First 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:
                                                                                                                
                                                                                                                                                               Three Months Ended
($ in millions)                                                                     March 31, 2017                          March 31, 2016
-------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------- -------------------- ------------------------------------
Net Cash Provided by Operating Activities                                                                                 (68 )                                   554
Reclassifying of net receipts for settlement of acquired derivatives                                                        1                                                                            39
that include financing elements
Sale of Land                                                                                                                8                                                                --
Merger, integration and cost-to-achieve expenses (1)                                                           --                                                                            19
Return of capital from equity investments                                                                                  14                                                                             5
Adjustment for change in collateral                                                  74                 (156 )
-------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Adjusted Cash Flow from Operating Activities                                         29                  461  
-------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Maintenance CapEx, net (2)                                                                                                (54 )                                                                         (91 )
Environmental CapEx, net                                                                                                  (25 )                                                                         (77 )
Preferred dividends                                                                                            --                                                                            (2 )
Distributions to non-controlling interests                                          (46 )                                   (42 )
-------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Free Cash Flow Before Growth Investments (FCFbG)                                    (96 )                                   249  
==================================================================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================

(1) 2016 includes cost-to-achieve expenses associated with the $150 million savings announced on September 2015 call. (2) Includes insurance proceeds of $18 million and $4 million in 2017 and 2016, respectively

                                                                                                                                                                                                                                 
Appendix Table A-4: First Quarter 2017 Regional Adjusted EBITDA
Reconciliation for Generation
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to net income/(loss):
                                                                                                                                                                                                                                                                                                                                                     
($ in millions)                                                                        Gulf Coast                               East                                  West                                  Other                               Total
--------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------------------
Net Income/(Loss)                                                                     39                 36                 (7 )                                  (1 )                              67  
===================================================================== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ========== ====================
Plus:
 Interest expense, net                                                                                                       1                                                       19                                           --                                           --                                                   20
 Depreciation and amortization                                                                                              73                                                       59                                                        6                                           --                                                  138
 ARO Expense                                                                                                                 4                                                        6                                                        3                                           --                                                   13
 Amortization of contracts                                                                                                   2                                                       (5 )                                                     (2 )                                         --                                                   (5 )
 Amortization of leases                                                   --                (12 )                      --     --            (12 )
--------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
EBITDA                                                                                                                     119                                                      103                                           --                                                       (1 )                                                221
 Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated                                                        7                                           --                                                        3                                                        3                                                   13
 affiliates
 Deactivation costs                                                                                             --                                                        1                                                        2                                           --                                                    3
 Other non recurring charges                                                                                    --                                                       (2 )                                                      1                                           --                                                   (1 )
 Market to market (MtM) losses/(gains) on economic hedges                           (121 )                                   3                 (7 )                      --           (125 )
--------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA                                                                        5                105                 (1 )                                   2            111  
--------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                        
First Quarter 2017 condensed financial information for Generation:
                                                                                                                                                                                                                                                                                                                                                                               
($ in millions)                                                        Gulf Coast                     East                             West                                  Other                                Elims.                         Total
---------------------------------------------------------- -------------------- -------------------- ----------------------------------------------- --------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------
 Operating revenues                                                                                    528                                           626                                                       51                                                        6                                                       (3 )                                                        1,208
 Cost of sales                                                   318     264                 18     --     --                      600
---------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- --- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
Economic gross margin                                                                                  210                                           362                                                       33                                                        6                                                       (3 )                                                          608
 Operations & maintenance and other cost of operations (a)                                             169                                           220                                                       28                                           --                                                       (3 )                                                          414
 Selling, marketing, general & administrative                                                           34                                            36                                                        6                                                        6                                           --                                                             82
 Other expense/(income)                                            2       1     --                 (2 )                      --                        1
---------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- --- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
Adjusted EBITDA                                                    5     105                 (1 )                                   2     --                      111
---------------------------------------------------------- -------------------- -------------------- ----- -------------------- -------------------- --- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------

(a) Excludes deactivation costs of $3 million.

                                                                                                                                                                                                                                                         
The following table reconciles the condensed financial information
to Adjusted EBITDA:
                                                                                                                                                                                                                                                                                                                                                                                                
($ in millions)                                               Condensed financial information         Interest, tax, depr., amort.                       MtM                              Deactivation                           Other adj.                  Adjusted EBITDA
------------------------------------------------------ -------------------- -------------------- --------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------
 Operating revenues                                                                                        1,343                                                       (3 )                                                   (132 )                                         --                                           --                                                          1,208
 Cost of operations                                                    605                  2                 (7 )                      --     --                      600
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
Gross margin                                                                                                 738                                                       (5 )                                                   (125 )                                         --                                           --                                                            608
 Operations & maintenance and other cost of operations                                                       418                                                       (1 )                                         --                                                       (3 )                                         --                                                            414
 Selling, marketing, general & administrative                                                                 82                                           --                                           --                                           --                                           --                                                             82
 Other expense/(income)                                                171               (171 )                      --     --                  1                        1
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
Net Income                                                              67                167               (125 )                                   3                 (1 )                                       111
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                 
Appendix Table A-5: First Quarter 2016 Regional Adjusted EBITDA
Reconciliation for Generation
The following table summarizes the calculation of Adjusted EBITDA
and provides a reconciliation to net income/(loss):
                                                                                                                                                                                                                                                                                                                                                     
($ in millions)                                                                        Gulf Coast                               East                                  West                                  Other                               Total
--------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------------------
Net Income/(Loss)                                                                   (125 )                                 242                 30                 44            191  
===================================================================== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ========== ====================
Plus:
 Interest expense, net                                                                                          --                                                       10                                           --                                           --                                                   10
 Depreciation and amortization                                                                                              76                                                       53                                                       15                                           --                                                  144
 ARO Expense                                                                                                                 3                                                        4                                                        2                                           --                                                    9
 Amortization of contracts                                                                                                   2                                                       (5 )                                                      1                                           --                                                   (2 )
 Amortization of leases                                                               (1 )                                 (11 )                      --     --            (12 )
--------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
EBITDA                                                                                                                     (45 )                                                    293                                                       48                                                       44                                                  340
 Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated                                                        3                                           --                                                        2                                                        4                                                    9
 affiliates
 Reorganization costs                                                                                                        1                                           --                                           --                                           --                                                    1
 Deactivation costs                                                                                             --                                                        7                                           --                                           --                                                    7
 Gain on sale of assets                                                                                         --                                                      (29 )                                         --                                           --                                                  (29 )
 Other non recurring charges                                                                                    --                                           --                                           --                                                        2                                                    2
 Impairments                                                                                                               137                                           --                                           --                                           --                                                  137
 Market to market (MtM) losses/(gains) on economic hedges                             26                (30 )                                   3     --             (1 )
--------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA                                                                      122                241                 53                 50            466  
--------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                      
First Quarter 2016 condensed financial information for Generation:
                                                                                                                                                                                                                                                                                                                                                                             
($ in millions)                                                             Gulf Coast                         East                       West                             Other                                Elims.                               Total
---------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------- --------------------------------------------- --------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------------------
 Operating revenues                                                                                             602                                           946                                           117                                                       41                                                       (4 )                                              1,702
 Cost of sales                                                            280     368      18     --     --            666  
---------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- --- -------------------- -------------------- --- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Economic gross margin                                                                                           322                                           578                                            99                                                       41                                                       (4 )                                              1,036
 Operations & maintenance and other cost of operations (a)                                                      170                                           295                                            40                                           --                                                       (4 )                                                501
 Selling, marketing, general & administrative                                                                    30                                            41                                             7                                                        7                                           --                                                   85
 Other expense/(income)(b)                                     --       1      (1 )                                 (15 )                      --            (15 )
---------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- --- -------------------- -------------------- --- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA                                                           122     241      53                 50     --            466  
---------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- --- -------------------- -------------------- --- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------

(a) Excludes deactivation costs of $7 million. (b) Excludes impairments of $137 million.

                                                                                                                                                                                                                                                         
The following table reconciles the condensed financial information
to Adjusted EBITDA:
                                                                                                                                                                                                                                                                                                                                                                                                
($ in millions)                                               Condensed financial information         Interest, tax, depr., amort.                       MtM                              Deactivation                           Other adj.                        Adjusted EBITDA
------------------------------------------------------ -------------------- -------------------- --------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------------------
 Operating revenues                                                                                        1,708                                                       (3 )                                                     (3 )                                         --                                           --                                                1,702
 Cost of operations                                                    669                 (1 )                                  (2 )                      --     --            666  
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Gross margin                                                                                               1,039                                                       (2 )                                                     (1 )                                         --                                           --                                                1,036
 Operations & maintenance and other cost of operations                                                       505                                                        3                                           --                                                       (7 )                                         --                                                  501
 Selling, marketing, general & administrative                                                                 86                                           --                                           --                                           --                                                       (1 )                                                 85
 Other expense/(income) (a)                                            257               (163 )                      --     --               (110 )                             (16 )
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------
Net Income                                                             191                158                 (1 )                                   7                111            466  
------------------------------------------------------ -------------------- -------------------- --------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- --------------------

(a) Other adj. includes impairments of $137 million.

                                               
Appendix Table A-6: First Quarter 2017 Sources and Uses of
Liquidity
The following table summarizes the sources and uses of liquidity
in the first quarter of 2017:
                                               
($ in millions)                                            Three Months Ended
                                                             March 31, 2017
--------------------------------------------- ------------------------------------------
Sources:
 Adjusted cash flow from operations                              29
 Asset sales                                                      6
 Issuance of Agua Caliente HoldCo debt                          130
 NYLD Equity Issuance                                             7
 Tax Equity Proceeds                                             16
 Increase in credit facility                                    147  
--------------------------------------------- --------------------- ---------------------
Uses:
 Maintenance and environmental capex, net (1)                   (80 )
 Debt Repayments, net of proceeds                              (146 )
 Growth investments and acquisitions, net                      (152 )
 GENMA long-term deposit                                       (130 )
 Collateral                                                     (74 )
 Distributions to non-controlling interests                     (46 )
 Nuclear Decommissioning Trust                                  (36 )
 Common Stock Dividends                                          (9 )
 Other Investing and Financing                                  (24 )
--------------------------------------------- --------------------- ---------------------
Change in Total Liquidity                                      (362 )
--------------------------------------------- --------------------- ---------------------

(1) Includes insurance proceeds of $18 million.

                                                                          
Appendix Table A-7: 2017 Adjusted EBITDA Guidance Reconciliation
The following table summarizes the calculation of Adjusted EBITDA
providing reconciliation to net income:
                                                                                                                                     
                                                                                                                                                                 2017 Adjusted EBITDA
                                                                                                                                    ------------------------------------------------------------------------------
($ in millions)                                                                         Low                  High
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------------- -------------------- ------
GAAP Net Income (1)                                                                                                                     60                              260
Income Tax                                                                                                                              80                                                                     80
Interest Expense & Debt Extinguishment Costs                                                                                          1,155                                                                 1,155
Depreciation, Amortization, Contract Amortization and ARO Expense                                                                     1,235                                                                 1,235
Adjustment to reflect NRG share of adjusted EBITDA in unconsolidated                                                                    110                                                                   110
affiliates
Other Costs (2)                                                                                                                          60                                                 60
--------------------------------------------------------------------                                                                ----------------------------                                           ------
Adjusted EBITDA                                                              2,700        2,900
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------------------------- -------------------- -------------------- ------

(1) For purposes of guidance, fair value adjustments related to derivatives are assumed to be zero. (2) Includes deactivation costs, gain on sale of businesses, asset write-offs, impairments and other non-recurring charges.

                                                                 
Appendix Table A-8: 2017 FCFbG Guidance Reconciliation
The following table summarizes the calculation of Free Cash Flow
before Growth providing reconciliation to Cash from Operations:
                                                                                                         
                                                                                             2017
-------------------------------------------------------------                                           --------------------
($ in millions)                                                                                               Guidance
-------------------------------------------------------------                                           --------------------
Adjusted EBITDA                                                                                              $2,700 - $2,900
Cash Interest payments                                                                                               (1,065)
Cash Income tax                                                                                                         (40)
Collateral / working capital / other                                                                                   (240)
-------------------------------------------------------------                                           --------------------
Cash From Operations                                                                                         $1,355 - $1,555
Adjustments: Acquired Derivatives, Cost-to-Achieve, Return of                                                 --
Capital Dividends, Collateral and Other
-------------------------------------------------------------                                           --------------------
Adjusted Cash flow from operations                                                                           $1,355 - $1,555
Maintenance capital expenditures, net                                                                          (280) - (310)
Environmental capital expenditures, net                                                                          (40) - (60)
Distributions to non-controlling interests                                                                     (185) - (205)
-------------------------------------------------------------                                           --------------------
Free Cash Flow - before Growth Investments                                                                     $800 - $1,000
-------------------------------------------------------------                                           --------------------

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. As NRG defines it, Adjusted EBITDA represents EBITDA excluding impairment losses, gains or losses on sales, dispositions or retirements of assets, any mark-to-market gains or losses from accounting for derivatives, adjustments to exclude the Adjusted EBITDA related to the non-controlling interest, gains or losses on the repurchase, modification or extinguishment of debt, the impact of restructuring and any extraordinary, unusual or non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments. 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.

Management believes Adjusted EBITDA is useful to investors and other users of NRG’s financial statements in evaluating its operating performance because it provides an additional tool to compare business performance across companies and across periods and adjusts for items that we do not consider indicative of NRG’s future operating performance. This measure is widely used by debt-holders to analyze operating performance and debt service capacity and by equity investors to measure our operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired. Management uses Adjusted EBITDA as a measure of operating performance to assist in comparing performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations, and for evaluating actual results against such expectations, and in communications with NRG’s Board of Directors, shareholders, creditors, analysts and investors concerning its financial performance.

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, integration and related restructuring 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, integration related restructuring 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, preferred stock dividends and distributions to non-controlling interests 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.

Free Cash Flow before Growth Investments is utilized by Management in making decisions regarding the allocation of capital. Free Cash Flow before Growth Investment is presented because the Company believes it is a useful tool for assessing the financial performance in the current period. In addition, NRG’s peers evaluate cash available for allocation in a similar manner and accordingly, it is a meaningful indicator for investors to benchmark NRG’s performance against its peers. Free Cash Flow before Growth Investment is a performance measure and is not intended to represent net income (loss), cash from operations (the most directly comparable U.S. GAAP measure), or liquidity and is not necessarily comparable to similarly titled measures reported by other companies.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170502005806r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170502005806/en/

SOURCE: NRG Energy, Inc.

NRG Energy, Inc. 
Media: 
Marijke Shugrue, 609-524-5262 
or 
Investors: 
Kevin L. Cole, CFA, 609-524-4526 
or 
Lindsey Puchyr, 609-524-4527


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