(Source: Business Wire)
NRG Energy, Inc. (NYSE: NRG) today revised its full-year 2009 guidance for Cash Flow from Operations and adjusted EBITDA to reflect present market conditions and include for the first time Reliant Energy, acquired May 1, 2009. The $325 million increase in adjusted EBITDA guidance to $2.5 billion is principally driven by Reliant Energy's adjusted EBITDA which, in the first two months of NRG's ownership, was approximately $200 million and is expected to contribute over $400 million for the year. Driving Reliant's financial performance in 2009 are lower power supply prices in ERCOT leading to higher energy margins for the retail business. The higher retail energy outlook was partially offset by recently announced and enacted price reductions of up to 20% for residential customers and other month-to-month plans.
Plant operating performance for our wholesale fleet is on pace for record performance in 2009 with our Texas baseload fleet exceeding top decile reliability. NRG's nuclear project, STP 1&2, achieved a net capacity factor of 100% and was again the highest producing two-unit nuclear plant in the United States. Reliant's contribution compensates for the $75 million negative impact on adjusted EBITDA guidance for NRG's wholesale business which has experienced lower commodity prices, lower demand caused by current economic conditions particularly in the Northeast and higher property tax expense.
Liquidity as of June 30, 2009 is in excess of $4.0 billion, approximately $1 billion higher than March 31, 2009. Cash from operations, the sale of MIBRAG, and $678 million in net proceeds from the bond offering announced on June 2, 2009, were the primary drivers of the increase. In connection with the overall improved financial outlook, higher cash flow from operations, and underlying strength of the Company's liquidity position, the Board of Directors has approved an increase to the Company's previously authorized common share repurchases under our capital allocation plan from the existing $330 million to $500 million. The Company intends to resume its common share repurchases later this year and will seek to complete the $500 million in buybacks by the end of 2009.
"NRG's hedged baseload portfolio has largely insulated our financial results from lower power prices, lower generation, and reduced demand caused by the economic recession," commented David Crane, NRG President and Chief Executive Officer.
