NRG Energy (NRG) 7 May 242024 Q1 Earnings call transcript

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

First Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Kevin Cole, Head of Treasury and Investor Relations. ahead. go Please

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

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

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

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

And to Chair Dr. the and Larry call with over CEO. NRG's Interim President and turn Coben, I'll that, now

Thank NRG. you morning on joined Good very we And by thank everyone, members Financial call the also the also are Chief Chung, Officer. I'm Bruce our this answer who interest questions. your have much, you for team to and of Kevin. in morning, management available

messages presentation Slide on key today's X. for the X Let's begin with

quarter. with performance I'm guidance First, strong pleased financial in reaffirming to first incredibly and ranges. our business in the XXXX our exceeded the expectations start our year

rises transformative data trends forecast compounded signal growth in of demand. electrification Gen power AI center Second, by a

expect projects available and driven quickly. we the competitive ability to markets As benefits environments, cite realize resources by to business-friendly a outsized result,

and to capitalize is demand markets. core well supply NRG Finally, in tightened on our positioned

later you opportunity in our value. this give portfolio, platform going I'm Our present unique to a the a site business generation energy consumer platform, our visibility create and to significant real diversified estate leading into portfolio technology-led presentation. shareholder

call. familiar to of proposition, move who I are I new because share are our to several X there residential those the the volume energy Slide to again gas serve We and value and retail on United of customers want you be by business natural you understand and NRG, C&I largest X Let's States. in this million second not may which operate nearly to

significant current shareholders and Our and grow the energy the the sheet. to company and excess at our We resulting flexibility returning in significant of technology a generate our to sits home strong maintaining intersection business the financial grid. capital cash well in balance needs, while earnings beyond

The free CAGR to our strength exceptional of stages shares our higher company. outlook business It's before we share per even We an believe XX% cash stock for to beginning our an growth prices has to to us as XX% for positioned a remain projected what on target, track time ago. industry. achieve means our the at and exciting time financial year uniquely than our buying capitalize rising of on flow price

the of quarter months, seeing. are Turning what numerous in cycle will the and the questions about growth on to discuss to Bruce Today, we've like particular. the then industry In later we impacts in the power forthcoming Slide received recent I'd X. demand presentation. in first talk about super NRG results

the growth. outpaced period in which This extended an usage clear the departure multiple demand We're energy trends. seeing marks macro signs stagnant a power from long-term power fundamentals with catalysts. of efficiency of demand Starting step change of during from

long-term with commodity demand a now read, in forecasting We, are perhaps in improvements prices. For the have first decades, expecting time along demand. every fundamental my step years by rather are in XX in this we expert experiencing and change other business, than I driven power

to next U.S. intermittent these electrification, attributed Recent leading that supply are crypto, power is manufacturing, and this advancements demand expected Gen increasingly industrial resources, to onshoring, accelerating growth. and including AI At accommodate factors, will and greater compounding data dispatchable factors, depend to in supply the This a on LNG, increase center the loads same and demand demand. power several in of imbalance growth the is time, which super growing the cycle. highlights between unprecedented formation

shifting approaching require opportunity only other is generation, for To demand residential what including and and supply sector existing approach, large for demand super be not differently of energy And super of developing and this supply VPP forecasted and management. and cycle adoption clear, our by fraction into it forms new just retaining assets, to loads, a generation technology will This is transformative of being the an through this takes NRG. cycle. all-of-the-above a

the and favorable If affordability to which competitive It's to outsized We turn Slide most see the you'll see operates in best such positioned the Texas realize of you markets competitive offers of that those framework resource to are and as X, markets. why NRG portions speed-to-market, this large growth. as due availability. load Northeast benefits

already regulatory Texas large winner our in proximity than growth. favorable stands in LNG which its experienced and AI to a fiber and large growth. substantial have onshoring, markets large years regulated business-friendly a continue preferred it cite expect Texas strong to load channels, years are the all coupled exhibiting to era in in ability positioning tax other and faster main growth is to of for load on and the Furthermore, generative be projects environment, I as with leader benefits it manufacturing footprint, out a destination and practices, incentives Texas as from outlooks recent future. land crypto, loads its including

to the Day not funding. I'd subsidies exists opportunities X reduction transitory across doubt, to creation On platform. upside leave June value Slide represents opportunities of and our that XXXX many relying no plan, on inflation for X, key like Investor of growth highlight our it's these or To act potentially each

will We're and have a have energy capability to capability to with be X unique through home residential that company novel provide and smart our increase a smart necessary only million provider scale at value the and tightening in in are we energy management ecosystem, market. trusted technologies the First, customers. a nearly

be you gas opportunity are by fully represents, not cognizant electricity natural or business-to-business that Second, and it of largest second we in North the but may volume aware provider the largest America.

Beyond commercially selling customers customers achieve hyperscalers. well in management able products, costs. energy largest players a are optimizing their focus energy corporations on industrial and stabilizing we leader sustainability our as and premium more goals. of We also customers of include our tailored to help We're many America's offer the These solutions services. as that

is These few per are and diverse set assets costs natural supply through cost that fleet primarily year. maintaining current volatility only mix not Third, peak in in to deliver year. enable of higher price while us times low that for generation economical a our are Texas for stable insurance units higher rate the gas hours run heat recent a may uneconomic assets units have

fixed to retail or a We with supply typically our customer residential our contracts price primarily year lasting use fleet portfolio generation X.

prices months result, a significant As swiftly to our open This rising XX mostly on is capitalize opportunity XX rising power demand. and out. generation a creates fleet to

now historically of product increases and, units course, times operated value see of profitability. could and our increasing hours have annually the only that run importantly, a few As equally

retired provide sites colocation generally potentially XX on at the own to focus or existing power speed, Lastly, for plants. sites of project competitive in large our We loads and real generation They potential another or markets grid existing estate XX,XXX extreme creation. several development facilities portfolio access interconnection. have of acres value and with has that given avenue are

a Let's try to unpack of each bit. these

X We of nearly terawatt natural cubic power America. electricity leading gas X. Slide Turning gas platforms of almost X.X and of business-to-business in annually. XXX feet and natural to operate We the North trillion serve hours

attributes increasing markets commitments goals As such help these response. as natural Through demand are heart, for anticipate looking sales energy our help usage for energy navigate accomplish business tailored costs, through their services specific At stabilizing their optimizing including complicated partner their gas load while electric and we demand minimizing growth plans, volumes. a scales, delivering intended them we large customers customers to platform, their risk. sustainability their through and

provide operations years. that signs they With a to record the up is with experiences. stand respect still services need to seeing they participant a commercial customer market to the and are high-quality It of centers. track large ramp are We data a best-in-class current platform we ready the early planning as in but days, capacity

in As an us an their anecdotal months. customer XX about approached next capacity example, the Xx a increasing by facility existing data at center

are seeing growth and We in time. real experiencing demand

Moving Slide XX. to

is purchase gigawatts and technology, Our in X.X in of Texas Texas, operate diverse of power capacity generation gigawatts We order. merit agreements. fleet supplemented X.X by generation long-term age

to diversification expansion by strategic ensures X.X across stability merit fuel gigawatts capitalize from near-term shovel-ready of positions to also and driven medium- power in have projects on types margin brownfield long-term This development. us opportunities prices. and orders technologies, higher We

On hand around-the-clock currently, the portfolio's generation value the but margin generation power This changes very economic our price of we generation slide, increases Texas in into only open power our provide to provides sensitivity uneconomic in economic profitable. earnings sensitivity growth not insight right scenarios. as generation and becomes

our assuming -- gas XX provide This in and Texas normal margin weather. analysis changes a pricing generation focuses on prices, detailed look more Slide natural at gross On flat power sensitivity.

the July pricing as On in pricing assumed have the for our today's guidance included are left side represents Texas of XXXX April and the peak slide, compared which and we forward. around-the-clock to XXXX, and XXXX forwards

additional curve tightness last long-term reflect pricing significantly. The dated, that Texas the the to backward that sustained starting for As from view growth. this ERCOT no a increased disclosure. is market quarter's load and moved market. noteworthy the Also upon power has forward modeling you Building large of view is is power demand longer see, is a in suggesting up explanation can only

model the environment. the directionally right in gross to fleet of we a pricing necessary margin dynamic provided for On Texas side the our components slide, the have opportunities

margin and generation, We for half XXXX less than base the include generation gross with roughly in X expected X XX% X, year nearly year hedge fully in begin of and in positions hedged Texas economic respectively. year

gross included open assumes margin scenario, an hedges. which also have no We

observe our power viable in disproportionately will from prices sensitivity pattern. benefits doesn't You Units increases price compared becoming price decreases. economically linear a that larger different to resulting levels, follow in at

more compared pricing than basis, margin With million complies margin an ERCOT XXXX. $XXX of in rising benefit gross the on to this forward years outer open $XX

the Assuming and durable it upside that, is this margin capture XXXX, we are hedged significant analysis compared that to environment sensitivity shareholder strategy, agility the have and and is upside This has market and value beginning. demonstrates Supported flexibility the our by a $XXX we our in positioned leverage million approximately portfolio underlying fundamental in supply dynamics simply translates value. the of of occurs, increased. well and move them rising to year materially our these fleet price to XX% to that into that translate diversified significant

highly On need by Driven excited I our portfolio. the want value. capacity about details attributes are these the close to sites more for providing possess, incredibly potential in Slide valued we their XX, of site by

that XX,XXX markets large of development, front We the opportunities for and competitive meter. of have and colocation are behind within XX with prime with locations in acres plant sites land power new both loads

to These significance expedited access time centers, and including attributes networks. in critical savings. measured sites offer lines construction particular of fiber of years to a Of land abundance interconnection, to offer mix transmission, proximity water, of time and long-haul valuable data these infrastructure,

you the complete our later turn data into on is sites for be established information hear meter have the would more from regarding expect dedicated locations these in a can potential capacity, center of When us them new the maximizing and what the value team site projects. behind We year, analysis to focused the or portfolio. required to

me over that, quarter With the let turn for Bruce first to it review.

Thank Larry. you,

to Slide XX. Turning

EBITDA. by safety Our quarter inclusion strong $XXX adjusted the worth a from increase prior first of in and a our Smart million. year-over-year result million, of resulted increase XX% quarter's year. was performance of first XXXX This exceeding in the represents the the EBITDA $XXX top decile $XXX EBITDA full million adjusted the of Home quarter operating of of

East was offset a partially increase supply driven Texas outperformance realized due to remaining in mild weather. and costs, lower by to region West decline in attributable our The segments, our slight by

increased customer Our X% consumer X%, and respectively. smart home platforms by energy year-over-year counts and

is a Texas, Most to of notably, X years past demonstrate of provider in healthy platform brands team over its the the XXXX, our market energy our XX,XXX Lubbock customers and execution. we work Similar newly position electricity Lubbock. the choice NRG This share opened strong of Smart to to continued as Home base. the customer available representing added in testament hard the a from consumer to

to X% addition increased the count same monthly X% year-over-year, recurring customer growing per over In grew year-over-year, X% period. and revenue service subscriber margins

evidenced our various Home that clear consumer growth the discretionary services the by is customers headwinds It sector. value of as our Smart affecting in recognize macro face the of

supply potential volatility months. ensuring XXXX the diversified of we Our while that strategy the providing deliver, margin also continued coverage sustain against expansion we saw level in to necessary winter the in

As the winter-over-winter. call, a last we availability performed in-the-money earnings discussed in our XX% fleet improvement in our factor our demonstrating quarter, first well in

advantage have of We mild our summer more fleet February critical to taken and in the proactively, the confident performance and activities months. winter conduct feel maintenance heading we March into about

the first continue would year. I highlight some to to through what we as as focused through organization like as what have remain on of on of an the we the Next, focused balance quarter well

Through program we in program, repurchased at time we an we November the shares the year. $XX.XX we nearly almost repurchase ASR. of XX per the quarter, last $XXX outstanding, average of launched During or at the share, the of million that million price shares accelerated XX% that share concluded launched

We and this billion, $X.X approximately year we dividends, share comprised reaffirming and common of remain to amount which XXXX plan, increased allocation return $XXX capital committed a we of our in further of earlier repurchases. are million capital our our

As development brownfield advance we continue in of X.X our Texas. Larry discussed, gigawatts to

Intent due. our anticipate in they We coming Energy filing will applications formal for of June the filing loan days, and X projects Notices early to Fund be the are in when the Texas we

project, plants in with most Our the market. opportunities brownfield gas-fired represents from ranging real and cycle combined of of comprised development X to ERCOT shovel-ready, peaking and CODs XXXX development X is XXXX some portfolio natural the

advancements projects PUCT for the front the on the queue of have the out loan and We projects for the have by XXXX the we been since these developing at we position that these permitting made procurement fronts and equipment believe program. consideration of funding should

initiatives we platforms. Next, of program growth on remain business efficiency continue $XXX million to and track to achieve our our across

momentum after plans, As of earlier, $X we protection I to made is per drive margin or positive generating closing plan. XX% acquisition. customer. started We stand-alone selling and our shortly we've each to A continue about our example existing to of the plan ability in customer the base platforms Vivint in great consumer this growth, of over this tremendous continue mentioned the penetration XXX,XXX progress see more selling strong generate per Home Vivint have we plan the customer. active with date, revenue And approximately Smart monthly to

for Finally, growth. we EBITDA are free both before reaffirming and flow our XXXX guidance cash

in and year. momentum should tremendous consumer our in business strategy have we for up and We the set of us diversified well our supply measures both the balance the platforms taking are

XXXX XX our Turning for view to capital Slide allocation. of an updated

and of last As substantial you management return. capital terms slide, there see liability can no have from our in been since the changes earnings of quantum the allocated call to capital

as capital allocation part As earnings call you we in reduction of the million of plan. planned last recall, our $XXX may debt had XXXX

our outstanding notes, XX, in can slide, address QX $XXX see April Through repurchased paid outstanding the noteholders. to resulting the million convertible convertible premium notes. of of that of given from the retiring to additional our million slightly efforts you in changed has As principal $XXX we

Given for allocated note settle reduced to $XXX premium, the our year. net cash convertible planned debt the to million reduction that the

before notes our convertible most structure. one the capital pieces instrument get made more continues to performance believe as to share of a fair made paper we even sense expensive value. share would in of our most retirement strong expensive of price reflect the year it economic pursue the over price that past Our the our that Therefore,

of instituted to allocated repurchase our that XXXX million our showed Plan. would the settle because versus is share the share $XXX and the a of the Stock on excise columns related to we call. million as cash matters The right, Employee Act. repurchases Compensation Moving share is for tax earnings include we part $XXX to of inflation now the in million you This Reduction last will tax passage over column see include few the reason repurchases that $XX

in cash categories, reflect used we is to for. order allocated that Previously, cash other in but we dollars more repurchases being to decided the move those had accurately category share the into bucketed what

to will for million show unallocated available last to it continue year. which similar I we of Larry. $XX evaluate that, With of the Finally, we our we you, as allocation back XXXX, call, capital earnings to in turn use the along move will

a commitments. operational focused financial, want provide on Bruce. We closing remain and execution safety I much, very and on you you thoughts Thank our XX, on to our laser delivering On XXXX Slide and on priorities few expectations.

We fundamentals products and platforms. of critical that spotlight services of durability We a on in improvement platform. that a will the our believe of put all we are this scarcity seeing step sell the change across the and

to We for are come. value significant uniquely shareholder deliver positioned years to

power conditions. are the we scale, and as business-to-business customers America, to largest tightening solutions. in the and X nearly Again, platform the us services combine value natural leader positioning capabilities both and second energy million market a We premium sustainable create technologies and tailored through and residential, North only loosening company energy with to operate electricity largest necessary at in gas smart management

large the supply is to integrated medium- while Latin And with stabilize to provides demand. opportunities capabilities long-term attributes margin power portfolio higher earnings strategy cycle of from expansion premium to we come near-term power for capturing super incredible prices. own Our in a what

and the in it's flow sector never and The also as in and lead our been revaluation to over have to forward for the updating change XX in change These In will excited NRG. my power, more good NRG years NRG depressed a others and look way. valuations step XX in about double-digit on have should our exciting such times. progress future valuations along you company yields ours. demand cash This our at depressed years I space, be at very I peers. the for its in the of resulted

With that, questions. I interest time for in NRG. to the want and to thank now We're you open for line ready your

Our Shahriar [Operator comes with Partners. first from question Guggenheim Instructions] Pourreza

kind this There's, curves Eastern meter. obviously, themselves. as are nukes the the concerns go behind guess, about your of on to a Larry, chatter large in that So to the concerns Just I you like some match at of there? lot Is raising now you out look go load, the to market the as generators any length you markets? suppliers in right industry something,

Rob. doesn't for so that there's to any very it liquid trying they Even Like can far the it's behind concerns Shar, retail the as purchase East. It's a raise in of plenty do supply obligations. market. us meet as if we players go meter,

impact as Perfect. little seems Okay. just as How Got the acceleration generation additional of highlighting Texas next just recent maybe a couple obviously, would highlighting it. stand, gigs X.X we they it see shovel-ready beyond profile CapEx? your the that, of warranted. Is But right? dated. development -- of here, And of EPA gas sort the longer of Bruce Could regs proposals. then work fleet over heavily the it years, maybe kind you're was you the an

more of interacting. are kind these on Just how items color

Sure.

the going So in place when set sure that to make is these right? has rules that say, get works would the first promulgated, a for I reason and Shar, system provides ISOs, they're AG, you over the consumers, everyone states, and a reliable a all way regulations were thing that think affordable about be view time. and litigated, in power to that

the around out how As end. the have to us, will of specifics far rules they at see pan as some

earlier, invest way. decisions X.X the But tell the about that the in all we'll do talked to have It's see or that markets, with Bruce sense? you regs. that gas what gig is these that that nothing the make continue to our fleet I would opportunity to about and we Does around drive

it Yes. now. on having then, right a That really sounds job good was Larry, you're perfect. the And time like

But Or you're search? the is as CEO too anything there far you not a much rush. fun? updates having as in maybe any are So on

and it's fantastic a it's of Well, lot its to and a But job. look, having The great Shar, a I it's fun. am continues it's work. look, committee team, great -- a do company

there's call, continue the time have they're they're on NRG. you're to I've find that you you're of opportunities fun. them person be next I Shar, rush. all to long think still But told having about, will as And that take right I I supposed we've until with about fun. their frame happy the in to this think I I the talking that, and they talked CEO everything as we been but position no time to this necessary, that given the have that am and right, on that

to time. a big Perfect. congrats for some NRG phase fantastic Elizabeth. such for She's been Really

The with next question comes from Seaport. Angie Storozynski

to longer. XX you convince first, So maybe were number any that us not price-agnostic. for last the one. you years, are That's Clearly, trying power

sway Is like have Number sense retail Just you on how the think selling of should that's new in additional wholesale do margin. going this one. arm? or and O&M how to the about we business side? side business? there Is versus think two layer, the a both power So we the this on backdrop, this realized CapEx it so maintenance, retail more how impact So power gross be expensive big about EBITDA cost will prices. an it, get number of to your margin is is, on additional impacts an by this to

little a And the little . talk ask let bit I'd talk the then side about to and And Rob CapEx bit margin Rasesh me have a side. repair about

So running. generation over Angie, margin that has when in today. see then When across the stuff and expansion X for EBITDA, to currently OpEx a on that are the -- that they're would built on and about power the megawatts numbers our out today, that point running impact right, the into those change chart step we've I you so already running trying pieces, the zero taking that's because on that are to think it right? plants you think about see gross in translate you

more. OpEx where EBITDA running down to stuff pick translate up and that the is on that's additional place you'll The

some So run you those wrong, would cost Bruce, we a in if the about an that correct And translate I'm me that actually XX%. on historically talked of down that which increase be probably additional the kind to change at way I hours same guys more. given times assets, is in you rate, It's would price.

would we something XX% like the EBITDA a then probably Yes, see and an of to cash free translation XX% flow. like translation probably

that Does answer question? your

Yes.

to And the I over margins proven then, to really on Angie, strong our ability in proven be margins, pricing. think maintain retail we've our I historically affect competitors retail and mean, time. they Increasing power prices well, rational as

you move to XXXX quarterly And from experiencing consumers. period. when increase that of through like to actually XXXX. prices gone time pass so margin able up And curve at ample look gives that energy almost to in it to up caused us We've have the XX% now, over fact, been we're

And so do we feel confident in our that. ability to

Okay. And then one other question.

running talking you're math some doing -- was some gas-fired I about build. new simple the here. just mean I So

of capacity very of in suggest right, plants. these new on supply justify for these prices in Given you we to high to growing power, renewable necessarily are multiples can't power be would probably construction factors forward that of seeing need order the gas what which curve, count assets,

north subsidized loans, pitching. imagine So cycle that around-the-clock be at a Texas, wondering assets would with Even peakers see it. or price. hard Even gas those that you just $XX plant to you're and I'm it's how these in combined economic

to again. meaning in CCGTs, beauty like they transfer The that or portfolio trying few can a to hours it's I about is assets that would to can And our move. you peakers, now. of tell way are the Rob the that flex years matter. think economic. can that for Angie, been the We've something they value capture the they

prices see you amount. particularly every in up, as when move, right, so see it hour goes go same doesn't by curves up that mean the so And you that ERCOT,

go are And very Xx up going that is That that go day the may in the summer. cleared [ or hours exponential So Texas that make the X amounts ]. to those that versus have about. you're the money up morning things same up? tight gone work afternoon of Is It's that once. think in up about in that peakers talking

out Yes. costs these rising that one about even of about of on sort thinking or instruments projects, without Angie, of -- pencil things our that on out mentioned pricing, be without And or I Rob add upside things, they every all mentioned to top lots me rate. let to pencils thinking [indiscernible] be just of a everything -- just and the just that. hurdle over stated

in power sorry, the of of the upside that that's there's asking fact these and that But at but a build that line is So the light materializes cap on questions. that suggest I'm wouldn't [indiscernible] I'm of prices, that that, it the that, materializing light new to prices? the Because power sort usually deflates what build new right, suggests, markets. of tightness in

X.X gigawatts, far exceeds Angie, it. I think versus the if you look tightness the tightness at the

being to might course, the time of build ours, tightness the don't books, in And worry loosened significant you everybody's, any if way those, so several the about the take on that some enough are years. that But of for number point, projects but I at exclude the next new if tightness. there's complete at look going to not just yes, that it's

The Research. with next question Steve comes from Wolfe Fleishman

new to following talking old on prices prices. exposed guess, recall I low the just, of just this Angie's question, first So world. of in now rolling versus reconcile try I power being don't for off suddenly longer world low hedges want then I to about NRG NRG to kind and in you

of the hedge customers low the kind kind of side to There and prices. the model integrated was

do against power lower, So the maybe the retail and two? of still the integrated I I -- just Or kind just higher the reconcile margins model some wouldn't coming not we how do why down how have to about think against prices?

were have and managing the I in transitory, what steadiness. moved the prices to really were think really market. sort mean has I of those before we do with we Steve, commodity-driven, the step it and is change for

I of take integrated think prices. model order what change gear allows flexibility you're where a ourselves, seeing to of the step the advantage in us to here is the higher

It's benefits allows But like of we changed. the is talked this. change saw hasn't to that one is integrated we the it us gear model about of that pursuing a So the one the it step never been things the we've this. reason like increases model price -- never to of

Got it.

for how on us kind then And some how buying investment? kind overlay color you kind or of the those of you're maybe funding new the NRG come much maybe might on versus generation. opportunity broader And and Could sites about that. making stakes more from the thinking give how opportunities? Just third-party you're about Okay. a on little bit of also thinking build

Yes.

So Bruce Steve, it's here.

First, on access Fund. perspective, intend Energy Obviously, the new funding builds. we a the from Texas to

So that's to of XX% there. capital to costs related new going the builds right be the

The share our own other impacting our cash without any fund confident we in commitments, that can deleveraging. that XX% cash capital feel of allocation flow, repurchases and of we terms of equity, from and

pretty that to unique we've certainly attractive So built to the all capital feel there's as opportunity then able proposition, always from handle and give some at said, we getting a potentially ourselves. by to capitalized are a well projects very attract of we Obviously, be that third-party our perspective, that consideration. to would these extent

own. fund about our sit today, we to as those here right we on But feel our now, good ability projects

ultimately As sites, that to that results translates early days. discovered. still it's that, it is as the sort be what opportunities far are XX How into still in of

need on today. perspective And here as regard capital we so sit really don't any that have in a

one. to reaffirming XX% mentioned quick price, growth. the last still stock And Obviously, higher XX% the Okay. just you

the cash a flow you're that? better assume prices? in is that? higher terms I that support free that, And Is there to what driving numerator So means expecting mainly power of

part $XXX upside million my our have can as program. to obviously, growth I be do see the and mean always provided there answer, to continued Larry but see, is not opportunity on result But going cost we Look, answer your think the you, -- well, sensitivities as you execution warmer only of we yes. you of first -- a we here, Coben think curve. forward a the I based I [indiscernible] I give against see

with ISI. The Chopra next question Evercore from comes Durgesh

there's if that add then a you high Just many address you you us way add to maybe frame XX also can time? that how many the about gigawatts discussed. How think And help over you can how potential on -- can the just sites quickly gigawatts. level very

Larry, being lead like the Just that. thinking how the said step a this you quick that about is demand. can I'm response just change reason just demand, in to the

months. X to figure the on and color exactly Yes. next yet. see with for question, figure trying and centers. X up power one great the data or more set working how front that we're we're to end of the to do answer spending ginormous on new the it group we'll plant? It's but Durgesh, this And deal I of center work know better through but or Is you don't better there's don't So that meter? of will probably data a a we've a year. have closer when that in we're for of it's a -- to it's this we quickly, be best ton lot sort a colocation why that We provide on I working it potential, what's not be those. in Is the -- out meter, of sure certainly site? obviously, the to out. to terms behind them, It I will time all, in think I'm of

the development work. know, you plant an As awful is of power lot

share And appreciate gone you're thinking kind but valuation going maybe tremendous a -- that? I just think stock know be to in I the how opportunities, you this run in makes has do these given Larry. how about these How sense. buybacks calculus in that, versus here, have then is obviously, rate. your up of question, which investing just can tough another or about That you

medium decision, an by we we do we capital our begin short yield, investing capital we your still return when our reaffirming flow have is said, are our cash both easy And me that free or changing what and Bruce promised to term. repeating which enough is allocation XX% trading that don't it's Let at but see a in everybody. believe to shareholders. Obviously, capital the I stock

going capital ourselves. actually of invest in and rises about should here we're talking just be to capital given disciplined have will to So especially terms that more we've likely to I given think continue been the returning --

want also hear surprise now kind in you to an of us who awful there's And people with it of of to won't projects. these lot lot that co-invest a

doing accretive the our -- capital possibilities for of think allocation related regardless there, generation and are I So irrespective principles. projects

Zimmerman Next Stanley. Morgan from at David question comes

Arcaro here. Dave

could view of currently terms one you on here up just still go? the the think you on curves. in the where prices is from upside? Following of wondering, the market forward forward room the ERCOT Do earlier I and there questions. pricing? on curve where Is Do was for have ERCOT market and a in pricing

Yes. can The definitely markets Rob. up. go it's David,

already it. more large the loans lot. at that you monitor a If into from is It's look the are the system, here. And look curves price in. at upside ERCOT coming and a seeing is state you're beginning to the that take There in to

start EBITDA of does And a hedging firm that, then, that as out-year as view your hedges and it. embedding up of you're Got Okay. to that is forecast? -- kind you that you're some into layer in

the We're But then thought could I really always trend we our say the big So translates through something that a portfolio table. million we retail of hedging that we our that value our the take is X we would curve, when the like our program think EBITDA, rates. the right? is. out consumers, So and where a through to I remember sell and of it like takes off whack, high ultimately part looking retail position, over If something lot about we like David. that revenue the book, and was out of we out-year way that as

retail could now, And now? the dynamics the other or from it. in one competitive of business energy you that what right in touch you're pressure Got the new pricing are terms any on in the that margin or way right entrants pressure push seeing might market

very It's performance. been stable a

customer As we and in of you performance saw performance We growth our and strong margins. load growth had year-over-year. good saw, similarly terms

good. feel very so we And

as a of look there our there. don't think see couple I but are we meaningful new we at entrants outflow really traction in the reports, any market,

comes final Ryan Citi. Levine The with question from

of value the Is to the you some framework. of buybacks? reconsider security? are just some would you a capital follow-up a A any Or there on allocation on of up the take where not follow -- trying view the price on energy capital

no sit We're is looking in stop Brian, what we would termination be standpoint. that that plenty you back the yield, as to our price the here with price tell the today, there see to implied flow is we'll and and buybacks. which sit going us we always of necessarily we share absolute room cash But shares. is would we from line to for respect continue free buying here make at to to run be

And growth Okay. opportunities you build opportunities -- you Or on generation new focusing related the looking are own prefer and at number territory. mentioned have service out for you investment your as right? power partnerships? you in for then Are you preference you're of to partnerships. to a would Do a assets

I just think optimization a for us, and process. maximization it's

And day, our It's cost line. flexibility. at capital, related I what a of of have bottom the so operational preference, we best think to to And another. or end way the don't falls one

the for was Okay. these given customer new economic some to, the commitments of you are that to any builds? you're data of to underwrite attractive outlook builds, And new centers for demand duration or suggested there these looking that commit

to answer each far The use we've going our will around things other is The basis not, up the a talked set to our in a meet conversations about But with and to for or come are load. our Those with no. we or centers as not be portfolio. long-term colocation it's case-by-case as early not are for days But to or are right, whether forward data or data thus builds book sites. of The talked large Rob. that that's center new It's a deal that we opportunity. evaluate that load. or we about

just The you'll margin terms think forward have on ultimately movement part in you last And on that your of margin the ERCOT that to one in impact of prices, realize any able will business? retail question be on electricity. that do

strong through curves. retail Well, we've various to ability margins proven the maintain

we're when And customers. sensitivity of analytic sort pass time. over And gives of engine us shifts on to so orderly prices, into able we have power price them sophisticated to consumers a have the very you that these insights in

feel So about there. muscle we our good

President turn question-and-answer and like concludes Larry I would CEO, Interim closing our This and back it for session. Coben, Chairman to to remarks.

us. joining much all Thank very you for

and for we potential, think and executing great can results the the deliver ahead. all. and to Thank here in days, excitement you years hear forward we to that upside I palpable that feel you look NRG months all on the n at continuing

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