NRG Energy Inc (NRG) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the NRG Energy First Quarter 2023 Earnings Call. (Operator Instructions)

美好的一天，謝謝你的支持。歡迎來到 NRG Energy 2023 年第一季度收益電話會議。 （操作員說明）

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, Treasurer and Head of Investor Relations.

請注意，今天的會議正在錄製中。我現在想把會議交給今天的第一位發言人，財務主管兼投資者關係主管 Kevin Cole。

Thank you, Sean. Good morning, and welcome to NRG Energy's First Quarter 2020 Earnings Call. This morning's call will be 45 minutes in length and is being broadcast live over the phone and via webcast, which can be located in the Investors section of our website at www.nrg.com under Presentations and Webcast.

謝謝你，肖恩。早上好，歡迎來到 NRG Energy 的 2020 年第一季度收益電話會議。今天上午的電話會議時長 45 分鐘，將通過電話和網絡直播進行現場直播，網絡直播可在我們網站 www.nrg.com 的“投資者”部分的“演示和網絡廣播”下找到。

Please note that today's discussion may contain forward-looking statements, which are based on assumptions that we believe to be reasonable as of this date. Actual results may differ materially. We urge everyone to review the safe harbor in today's presentation as well as the risk factors in our SEC filings. We undertake no obligation to update these statements as a result of future events, except as required by law. In addition, we will refer to both GAAP and non-GAAP financial measures. For information regarding our non-GAAP financial measures, please see the reconciliation in the back of the earnings presentation.

請注意，今天的討論可能包含前瞻性陳述，這些陳述基於我們認為截至目前合理的假設。實際結果可能存在重大差異。我們敦促大家審查今天演示文稿中的安全港以及我們提交給美國證券交易委員會的文件中的風險因素。除非法律要求，否則我們不承擔因未來事件而更新這些聲明的義務。此外，我們將同時參考 GAAP 和非 GAAP 財務指標。有關我們的非 GAAP 財務措施的信息，請參閱收益報告後面的對賬表。

And with that, I'll turn the call over to Mauricio Gutierrez, NRG's President and CEO.

有了這個，我將把電話轉給 NRG 的總裁兼首席執行官 Mauricio Gutierrez。

Thank you, Kevin. Good morning, everyone, and thank you for your interest in NRG. I'm joined this morning by Alberto Fornaro, Chief Financial Officer; and also on the call and available for questions are other members of our management team, including Rasesh Patel, Head of Vivint Smart Home.

謝謝你，凱文。大家早上好，感謝您對 NRG 的關注。今天早上，首席財務官 Alberto Fornaro 加入了我的行列；我們管理團隊的其他成員也在電話中回答問題，包括 Vivint Smart Home 負責人 Rasesh Patel。

I'd like to start on Slide 4 with the 3 key messages for today's presentation. First, our Wholesale and Retail businesses performed well during the first quarter and delivered strong financial results. We are focused on our core energy operations and have taken steps to make our platform more predictable and resilient. This brings me to my second point. We are seeing improving market fundamentals that should benefit our portfolio as we head into the summer.

我想從幻燈片 4 開始，其中包含今天演示文稿的 3 個關鍵信息。首先，我們的批發和零售業務在第一季度表現良好，並取得了強勁的財務業績。我們專注於我們的核心能源業務，並已採取措施使我們的平台更具可預測性和彈性。這就引出了我的第二點。隨著我們進入夏季，我們看到市場基本面正在改善，這應該有利於我們的投資組合。

Finally, we completed the Vivint Smart Home acquisition and integration efforts have now begun in full. We are also updating our 2023 guidance ranges to account for this acquisition. Moving to the first quarter results on Slide 5. We delivered top decile safety performance and $646 million of adjusted EBITDA. This is a 28% improvement from last year when adjusted for asset sales and retirements. These results were driven primarily by strong operations in our core energy business, direct energy synergies and the addition of 1 month of Vivint earnings.

最後，我們完成了對 Vivint Smart Home 的收購和整合工作，現在已經全面開始。我們還更新了 2023 年的指導範圍以說明此次收購。轉到幻燈片 5 的第一季度業績。我們提供了最高的十分位數安全性能和 6.46 億美元的調整後 EBITDA。經資產出售和退休調整後，這比去年提高了 28%。這些業績主要得益於我們核心能源業務的強勁運營、直接能源協同效應以及 1 個月 Vivint 收益的增加。

During the quarter, we made good progress advancing our strategic priorities. We are on track to achieve the full synergy target for direct energy this year. We continue to be opportunistic on our portfolio optimization efforts with the sale of Astoria and we closed the Vivint acquisition in early March. Integration efforts for Vivint are now fully underway. Day 1 activities went well, and we have now defined the growth synergy target of $30 million for 2023.

在本季度，我們在推進戰略重點方面取得了良好進展。我們有望在今年實現直接能源的全面協同目標。我們繼續通過出售 Astoria 來優化我們的投資組合，並在 3 月初完成了對 Vivint 的收購。 Vivint 的整合工作現已全面展開。第一天的活動進展順利，我們現在已經確定了 2023 年 3000 萬美元的增長協同目標。

We will share additional details for the total program at our upcoming Investor Day. I want to take a moment and welcome the Vivint team to the NRG family. I continue to be impressed with the business and particularly the alignment in our corporate values that focuses on safety and customer experience.

我們將在即將到來的投資者日分享整個計劃的更多細節。我想花點時間歡迎 Vivint 團隊加入 NRG 大家庭。我繼續對業務印象深刻，尤其是我們專注於安全和客戶體驗的企業價值觀的一致性。

Finally, we are updating our 2023 guidance ranges to include Vivint and the alignment of adjusted EBITDA between our 2 companies. Alberto will unpack this in more detail, but let me provide you a quick overview. We're updating our full year guidance to $3.01 billion to $3.25 billion adjusted EBITDA, and $1.62 billion to $1.86 billion of free cash flow before growth. This includes 10 months of Vivint, expected growth and cost synergies for this year.

最後，我們正在更新我們的 2023 年指導範圍，以包括 Vivint 和我們兩家公司之間調整後的 EBITDA 的一致性。 Alberto 將對此進行更詳細的解壓縮，但讓我為您提供一個快速概述。我們將全年指引更新為 30.1 億美元至 32.5 億美元的調整後 EBITDA，以及 16.2 億美元至 18.6 億美元的增長前自由現金流。這包括 10 個月的 Vivint、今年的預期增長和成本協同效應。

This also reflects the harmonization of adjusted EBITDA to align both companies more with the consumer services industry. Excluding the impact of these changes, the traditional core energy business of NRG remains unchanged with previous stand-alone 2023 guidance ranges. Now turning to Slide 6. I want to provide a brief market update for Texas.

這也反映了調整後 EBITDA 的協調，使兩家公司更符合消費者服務行業。排除這些變化的影響，NRG 的傳統核心能源業務與之前的獨立 2023 年指導範圍保持不變。現在轉到幻燈片 6。我想簡要介紹一下德克薩斯州的市場最新情況。

We continue to see robust tenant demand growth on a weather-normalized basis north of 3%, driven by population growth and a strong state economy. We expect this trend to continue in the foreseeable future. As you can see in the chart on the left-hand side of the slide, the first quarter was characterized by mild weather and much lower natural gas and power prices, which settled well below market expectations.

在人口增長和強勁的州經濟的推動下，我們繼續看到在天氣正常化的基礎上強勁的租戶需求增長超過 3%。我們預計這種趨勢在可預見的未來將繼續下去。正如您在幻燈片左側的圖表中看到的那樣，第一季度的特點是天氣溫和，天然氣和電力價格大幅下跌，遠低於市場預期。

This benefited our integrated platform by allowing us to bring down our power plants during periods of low prices and performed additional preventive maintenance while buying power from the market cheaper than our own generation. This resulted in margin expansion fully offsetting lower weather-driven demand, and this is exactly our platform was designed to perform.

這使我們的集成平台受益，使我們能夠在低價期間關閉我們的發電廠，並在從市場上以比我們自己的一代更便宜的價格購買電力的同時進行額外的預防性維護。這導致利潤率的增長完全抵消了天氣驅動的需求下降，而這正是我們平台的設計目標。

Looking ahead to this summer, our portfolio is well positioned to deliver stable results. Supply chain constraints are for the most part behind us, and our power plants are ready to run as we progress on our second year of increased maintenance spend. We are also more conservative on our hedging and the operating assumptions we're using for our power plants.

展望今年夏天，我們的產品組合已準備好提供穩定的結果。供應鏈限制在很大程度上已經過去，我們的發電廠已準備好運行，因為我們在第二年增加維護支出方面取得進展。我們對我們的對沖和我們用於發電廠的運營假設也更加保守。

Importantly, WA Parish unit remains on track to return to service before the summer. As you can see, we have taken steps to make our portfolio more predictable. Finally, I want to provide a brief update on ERCOT market design enhancements. After considering many alternatives during 2022, the Public Utility Commission of Texas unanimously approved the performance credit mechanism or PCM. This is a market-based solution that is widely supported by competitive entities and regulators. The Texas legislature is currently reviewing the PCM and other enhancements.

重要的是，西澳教區單位仍有望在夏季前恢復服務。如您所見，我們已採取措施使我們的產品組合更具可預測性。最後，我想簡要介紹一下 ERCOT 市場設計的改進。在考慮了 2022 年的許多備選方案後，德克薩斯州公用事業委員會一致批准了績效信用機製或 PCM。這是一種基於市場的解決方案，得到競爭實體和監管機構的廣泛支持。得克薩斯州立法機構目前正在審查 PCM 和其他增強功能。

We expect market design resolution by the end of May with the Texas legislative session, concluding on May 29. We anticipate that PCM will take a few years to be implemented. In the interim, ERCOT and the PUCT are considering a bridge solution that enhances the operating reserve demand curve or ORDC to increase online reserves.

我們預計市場設計決議將在 5 月底與德克薩斯州立法會議一起解決，該會議將於 5 月 29 日結束。我們預計 PCM 將需要幾年時間才能實施。在此期間，ERCOT 和 PUCT 正在考慮一種橋接解決方案，該解決方案可增強運營儲備需求曲線或 ORDC 以增加在線儲備。

We applaud the efforts by the governor, legislature, PUCT and ERCOT to improve the reliability of the grid through market-based solutions. We have several brownfield projects in various stages of development, but all of them will require regulatory certainty before they can move forward.

我們讚揚州長、立法機關、PUCT 和 ERCOT 通過基於市場的解決方案提高電網可靠性的努力。我們有幾個處於不同開發階段的棕地項目，但所有這些項目在推進之前都需要監管確定性。

Moving to Slide 7. I want to provide an update on our consumer-facing businesses. Beginning with our Retail Energy & Services platform. Margins were up year-over-year by 7%, driven by lower supply costs and stable customer count. This was somewhat offset by lower load due to mild weather during the quarter. In the East, we grew through our customer acquisition efforts to provide consumers an alternative to rising incumbent utility prices. We continue to see no material increase in bad debt, which is a direct result of the essential nature of the services we provide.

轉到幻燈片 7。我想提供有關我們面向消費者的業務的最新信息。從我們的零售能源和服務平台開始。在較低的供應成本和穩定的客戶數量的推動下，利潤率同比增長 7%。這在一定程度上被本季度溫和天氣導致的較低負載所抵消。在東部，我們通過我們的客戶獲取努力發展壯大，為消費者提供替代現有公用事業價格上漲的選擇。我們繼續看到壞賬沒有實質性增加，這是我們提供的服務的基本性質的直接結果。

Finally, we launched a modernized digital experience on our web and model app that enables customers to manage their energy usage and provide actionable insights that we are uniquely able to generate regarding uses of energy in their home for their EVs and through their solar solutions. While we have only owned Vivint for 1 month, I want to provide a full first quarter statistics for comparison. Vivint grew customers by 9% and revenue by 14% compared to the same period last year.

最後，我們在我們的網絡和模型應用程序上推出了現代化的數字體驗，使客戶能夠管理他們的能源使用情況，並提供可操作的見解，我們能夠以獨特的方式生成有關他們家中電動汽車和太陽能解決方案的能源使用情況的見解。雖然我們只擁有 Vivint 一個月，但我想提供完整的第一季度統計數據以供比較。與去年同期相比，Vivint 的客戶增長了 9%，收入增長了 14%。

Like NRG, Vivint continues to experience strong retention and stable bad debt. The company was also busy in the quarter, enhancing their products and introducing innovative offerings, 2 of which I want to highlight. First, the Vivint app now includes solar production beta so our customers can actively monitor their energy conservation and cost savings. Second, they introduced a do-it-yourself product called driven basics that makes it easy for owners and renters alike to get the starter system for less than $300.

與 NRG 一樣，Vivint 繼續保持強勁的保留率和穩定的壞賬。該公司在本季度也很忙，改進他們的產品並推出創新產品，我想強調其中 2 個。首先，Vivint 應用程序現在包括太陽能生產測試版，因此我們的客戶可以主動監控他們的節能和成本節約情況。其次，他們推出了一種名為 driven basics 的自助產品，使業主和租戶等人能夠以不到 300 美元的價格輕鬆獲得入門系統。

Having a viable [Vivint] and single point solutions is key to our strategy of creating more entry points for customers that we can later upgrade to our fully integrated smart home offering. Now with respect to synergies, we are reaffirming our cost and growth targets for both 2023 and the full plan. Cost synergies are primarily the result of the combination of 2 public companies and are expected to total $100 million in recurring run rate free cash flow before growth.

擁有可行的 [Vivint] 和單點解決方案是我們為客戶創建更多切入點的戰略的關鍵，我們可以在以後升級到我們完全集成的智能家居產品。現在關於協同效應，我們重申我們 2023 年和整個計劃的成本和增長目標。成本協同效應主要是兩家上市公司合併的結果，預計增長前的經常性運行率自由現金流總額將達到 1 億美元。

Growth synergies of $300 million will be achieved through a target for cross-sell, Vivint organic growth and sales channel optimization. In total, we expect $400 million of recurring synergies to be achieved over the next 3 years. The synergy and integration plan is now fully underway and is led by the same team responsible for the transformation plan and the direct energy integration. On the right-hand side of the slide, you will see the scorecard for Vivint. We have now introduced 2023 growth targets and cost to achieve. We plan to update this quarter in the coming quarters to provide further transparency and keep you informed on our progress.

通過交叉銷售、Vivint 有機增長和銷售渠道優化的目標，將實現 3 億美元的增長協同效應。總體而言，我們預計在未來 3 年內將實現 4 億美元的經常性協同效應。協同和整合計劃現已全面展開，由負責轉型計劃和直接能源整合的同一個團隊領導。在幻燈片的右側，您將看到 Vivint 的記分卡。我們現在已經介紹了 2023 年的增長目標和實現成本。我們計劃在未來幾個季度更新本季度，以提供更高的透明度並讓您了解我們的進展。

I know I have said this before, but we are very excited about the opportunities for the combined company moving forward. Vivint brings a complementary business that expands our customer network by nearly 40% and that smart home technology and infrastructure to strengthen our platform. Together, we create the leading essential home services provider in North America, serving a network of nearly 7.5 million customers, and the acquisition also accelerates the plan we laid out at our 2021 Investor Day and creates the opportunity to deliver significantly shareholder value.

我知道我之前說過這個，但我們對合併後公司向前發展的機會感到非常興奮。 Vivint 帶來了一項互補業務，將我們的客戶網絡擴大了近 40%，而智能家居技術和基礎設施則加強了我們的平台。我們共同創建了北美領先的基本家庭服務提供商，為近 750 萬客戶提供服務，此次收購還加快了我們在 2021 年投資者日制定的計劃，並創造了顯著實現股東價值的機會。

During the first 3 years of integration, this value will be created through both cost and growth synergies, which are laid out on the slide. In the medium and long term, I see even more opportunity to create value through growing customer count nationally, increasing the average number of solutions per customer and materially extending the customer lifetime.

在整合的前 3 年中，這一價值將通過幻燈片上列出的成本和增長協同效應來創造。從中長期來看，我看到更多機會通過增加全國客戶數量、增加每個客戶的平均解決方案數量並顯著延長客戶生命週期來創造價值。

So with that, I will pass it over to Alberto for the financials review.

因此，我將把它交給阿爾貝托進行財務審查。

Thank you, Mauricio. NRG experienced a good start to the year and delivered strong results during minder-than-expected weather conditions. We entered the winter season seeing high forward gas and power curves. Moderate weather and relatively geopolitical stability translated into much lower power volumes in Texas and in the East and much lower actual prices in most markets with the exception of California. .

謝謝你，毛里西奧。 NRG 今年開局良好，並在低於預期的天氣條件下取得了強勁的業績。我們進入了冬季，看到了高前進氣和功率曲線。溫和的天氣和相對穩定的地緣政治導致得克薩斯州和東部地區的發電量大幅下降，除加利福尼亞州外，大多數市場的實際價格也大幅下降。 .

Additionally, NRG liquidity has significantly improved due to global collateral requirements after the winter season and the proactive management of our collateral utilization. We also completed the acquisition of Vivint Smart Home and have included Vivint's March performance in our financial stake.

此外，由於冬季過後的全球抵押品需求以及我們對抵押品使用的積極管理，NRG 的流動性顯著改善。我們還完成了對 Vivint Smart Home 的收購，並將 Vivint 三月份的業績納入我們的財務股份。

Before we continue, let me provide a little bit more detail about Vivint. At close, the EBITDA metric for the 2 companies was not identical. Therefore, we have harmonized it. I will go into more detail in the guidance section, but please note that all figures, including prior year reflect a consistent EBITDA across segments.

在我們繼續之前，讓我提供更多關於 Vivint 的細節。最終，兩家公司的 EBITDA 指標並不相同。因此，我們對其進行了協調。我將在指導部分進行更詳細的介紹，但請注意，包括上一年在內的所有數據都反映了各部門一致的 EBITDA。

Let's go now to the first quarter results. NRG consolidated adjusted EBITDA of $647 million is $137 million higher than the first quarter of 2022. As you can see in the chart at the bottom of the page, Legacy Energy results include the anticipated negative impact of asset sales and retirements in the second quarter of 2022, totaling $30 million. On a like-to-like basis, Legacy Energy EBITDA increased by approximately $67 million.

現在讓我們來看看第一季度的結果。 NRG 合併調整後 EBITDA 為 6.47 億美元，比 2022 年第一季度高出 1.37 億美元。正如您在頁面底部的圖表中看到的那樣，Legacy Energy 結果包括 2022 年第二季度資產出售和退休的預期負面影響2022 年，總計 3000 萬美元。在同類基礎上，Legacy Energy EBITDA 增加了約 6700 萬美元。

Last year, transitory items, including the Limestone Unit 1 extended outage, coal and chemical constraints and the temporary spike in ancillary costs impacted our profitability. Our Q1 2023 results show that these items have been fully recovered. We've also included Vivint March results in our first quarter financials, which contributed $73 million of additional EBITDA. The remaining $27 million increase is related to EBITDA harmonization.

去年，包括石灰石 1 號機組延長停運、煤炭和化學品限制以及輔助成本的暫時飆昇在內的臨時項目影響了我們的盈利能力。我們 2023 年第一季度的結果顯示，這些項目已完全恢復。我們還在第一季度財務報告中納入了 Vivint March 的業績，這為 EBITDA 貢獻了 7300 萬美元。其餘 2700 萬美元的增長與 EBITDA 協調有關。

Going now to segment performance on the top left. Across the different geographical regions, we have in general experienced an expansion of unit margins that have been mitigated by lower volumes and usage. Starting with Texas, adjusted EBITDA increased by $43 million versus prior year and gross margin was $120 million higher. Opportunistic planned outages, insurance premium and pension cost increases and the return on bad debt to historical levels contributed to an increase in operating expenses compared to the first quarter of 2022.

現在轉到左上角的細分性能。在不同的地理區域，我們總體上經歷了單位利潤率的擴大，但由於銷量和使用量的下降而有所緩和。從德克薩斯州開始，調整後的 EBITDA 比上一年增加了 4300 萬美元，毛利率增加了 1.2 億美元。與 2022 年第一季度相比，機會性計劃停電、保險費和養老金成本增加以及壞賬回報率達到歷史水平導致運營費用增加。

In the East, West & Services and Other segment, adjusted EBITDA declined $6 million versus last year, driven primarily by asset sales and retirement similar to Texas. Gross margin increased year-over-year, a lower power supply cost more than offset the negative impact of a volume decline. As said, we have included March results in our Q1 EBITDA, and these results were better than prior year on a comparable basis. While we are not reporting full Q1 quarterly results for Vivint, we are very encouraged by the results. On a stand-alone basis, all major KPIs, including profitability metrics, having improved compared to the prior year.

在東部、西部和服務及其他部門，調整後的 EBITDA 比去年下降了 600 萬美元，這主要是由於類似於德克薩斯州的資產出售和退休。毛利率同比增長，較低的電源成本抵消了銷量下降的負面影響。如前所述，我們已將 3 月份的結果納入我們的第一季度 EBITDA，並且這些結果在可比基礎上優於上一年。雖然我們沒有報告 Vivint 第一季度的完整季度業績，但我們對結果感到非常鼓舞。單獨來看，所有主要的 KPI，包括盈利能力指標，都比上一年有所改善。

We have begun integration in cross-selling activities and targets have been confirmed and are expected to be realized as planned. Energy free cash flow before growth was $203 million, in line with our expectations impacted by milder temperatures that drove power purchases up and power generation down, thus increasing fuel inventory levels. We have identified the initiative to reduce inventories, but expect to defer any action until after the summer season.

我們已經開始整合交叉銷售活動，目標已經確定並有望按計劃實現。增長前的能源自由現金流為 2.03 億美元，符合我們受溫和氣溫影響的預期，溫和氣溫推動電力購買量增加和發電量下降，從而增加了燃料庫存水平。我們已經確定了減少庫存的舉措，但預計會將任何行動推遲到夏季之後。

Lastly, on NRG balance sheet, cash collateral received by counterparties positive mark-to-market of the derivative portfolio and the account receivable and account payables are all trending down. This is an inversion of the trend that we have seen in the last 6 quarters.

最後，在 NRG 資產負債表上，交易對手收到的現金抵押品以正市值計價的衍生品組合以及應收賬款和應付賬款均呈下降趨勢。這是我們在過去 6 個季度看到的趨勢的倒轉。

Let's move now to Slide 10 to discuss the guidance for 2023. As mentioned, we are providing additional detail for adjusted EBITDA. Prior to the acquisition, NRG and Vivint accounted for items within adjusted EBITDA differently, and we are now harmonized what will be included in this metric going forward.

現在讓我們轉到幻燈片 10 來討論 2023 年的指導意見。如前所述，我們正在為調整後的 EBITDA 提供更多詳細信息。在收購之前，NRG 和 Vivint 對調整後 EBITDA 中的項目的會計處理方式不同，我們現在統一了未來該指標中將包含的內容。

Capitalized costs can be split into acquisition costs and fulfillment costs. The amortization of capital customer acquisition costs, mostly sales commission paid by both NRG and Vivint will be excluded from adjusted EBITDA. The amortization of capitalized fulfillment costs, mostly Vivint product and installation expenses will no longer be excluded from adjusted EBITDA. Stock-based compensation expenses will also be excluded from adjusted EBITDA. There are no impacts to free cash flow.

資本化成本可以分為獲取成本和履行成本。資本客戶獲取成本的攤銷，主要是 NRG 和 Vivint 支付的銷售佣金，將不包括在調整後的 EBITDA 中。資本化履行成本的攤銷，主要是 Vivint 產品和安裝費用，將不再排除在調整後的 EBITDA 之外。基於股票的補償費用也將被排除在調整後的 EBITDA 之外。對自由現金流沒有影響。

Moving to the world at the bottom of the page, Legacy Energy 2023 guidance is substantially unchanged compared to our Q3 earnings call. The only exception is a $120 million increase due to EBITDA harmonization. For Vivint, guidance includes pro forma 2022 EBITDA unchanged from December. This has been prorated for 10 months of owner fleet. We have added $65 million in expected 2023 synergies and growth, minus $35 million from the EBITDA harmonization. Overall, the net impact in 2023 is positive, and we have updated guidance accordingly.

轉到頁面底部的世界，Legacy Energy 2023 指南與我們的第三季度財報電話會議相比基本沒有變化。唯一的例外是由於 EBITDA 協調而增加了 1.2 億美元。對於 Vivint，指引包括 2022 年預估 EBITDA 與 12 月持平。這已按比例分配給擁有船隊的 10 個月。我們在 2023 年的預期協同效應和增長中增加了 6500 萬美元，從 EBITDA 協調中減去 3500 萬美元。總體而言，2023 年的淨影響是積極的，我們相應地更新了指引。

Free cash flow before guidance is simply the sum of the legacy NRG guidance and the $110 million pro forma free cash flow number from December 2022. This has increased by the growth contribution and prorated for 10 months. As a reminder, the original 2022 pro forma free cash flow before growth for Vivint, included the free cash flow before growth, the impact of synergies and the additional interest on the acquisition debt.

指導前的自由現金流只是傳統的 NRG 指導與 2022 年 12 月以來的 1.1 億美元備考自由現金流數字的總和。這隨著增長貢獻而增加，並按比例分配了 10 個月。提醒一下，Vivint 最初的 2022 年預估增長前自由現金流包括增長前的自由現金流、協同效應的影響以及收購債務的額外利息。

Lastly, the addition of Vivint to our guidance, we have incorporated a slightly higher range of plus or minus $120 million from the guidance midpoint on a consolidated basis. Now turning to Slide 11 for a brief update on our 2023 capital allocation.

最後，將 Vivint 添加到我們的指導中，我們在綜合基礎上從指導中點納入了略高的正負 1.2 億美元範圍。現在轉到幻燈片 11，簡要了解我們 2023 年的資本配置。

Moving left to right with blue shading indicating updates. 2023 excess cash equals $1.999 billion. This includes roughly $250 million of excess cash for 2022, including $209 million in proceeds from the sale of Astoria, and the full year free cash flow below growth of $1.740 billion inclusive of energy standalone guidance of $1.620 billion, plus $120 million provision. This also captured the expected impact of the additional debt finance. There is no change to the $500 million target of leverage neutral net inflow from asset sales.

從左到右移動，藍色陰影表示更新。 2023 年超額現金為 19.99 億美元。這包括 2022 年大約 2.5 億美元的超額現金，包括出售 Astoria 的 2.09 億美元收益，以及低於增長的全年自由現金流量 17.4 億美元，其中包括 16.2 億美元的能源獨立指引，外加 1.2 億美元的準備金。這也反映了額外債務融資的預期影響。資產出售產生的槓桿中性淨流入 5 億美元的目標沒有變化。

Moving on to cash utilized for Vivint. This includes the additional requirement of $100 million in the cash minimum balance, about $250 million of NRG cash utilization, net of Vivint cash, $545 million integration expenses and $900 million of expected debt reduction. Next, we have the remuneration of our equity holders and the dividend to the preferred issued in March. The allocation of cash to investments totaled about $190 million, including $90 million for growth initiatives. Now moving to the far right bar. We expect a total of $506 million available for future allocation. This will fund the remaining share repurchase program upon full visibility of achieving our 2023 target credit methods, which are detailed in the next slide.

繼續使用用於 Vivint 的現金。這包括 1 億美元現金最低餘額的額外要求、約 2.5 億美元的 NRG 現金使用（扣除 Vivint 現金）、5.45 億美元的整合費用和 9 億美元的預期債務削減。接下來，我們有股東的報酬和 3 月份發行的優先股的股息。分配給投資的現金總額約為 1.9 億美元，其中包括用於增長計劃的 9000 萬美元。現在移動到最右邊的欄。我們預計未來可分配的資金總額為 5.06 億美元。這將在實現我們的 2023 年目標信貸方法的完全可見性後為剩餘的股票回購計劃提供資金，這在下一張幻燈片中有詳細說明。

Quickly turning to Slide 12. We remain committed to a strong balance sheet. This slide does not substantially change since our last update, we just updated partially we updated a higher energy EBITDA partially mitigated by lower adjustment and the slightly lower (inaudible). We are focused on achieving our 2023 target ready metrics, which include a leverage ratio approximately 3.2x net debt-to-adjusted EBITDA, and we are on track for investment-grade credit metrics by later 2025 and 2026 through both debt reduction and growth Back to your knowledge.

快速轉到幻燈片 12。我們仍然致力於建立強大的資產負債表。自我們上次更新以來，這張幻燈片沒有發生實質性變化，我們只是部分更新了我們更新了更高的能量 EBITDA 部分被較低的調整和略低（聽不清）所緩解。我們專注於實現我們的 2023 年目標就緒指標，其中包括約 3.2 倍淨債務與調整後 EBITDA 的槓桿率，並且我們有望通過債務減少和增長在 2025 年晚些時候和 2026 年實現投資級信用指標 返回據你所知。

Thank you, Alberto. Turning to Slide 14. I want to provide a few closing thoughts on today's presentation. We delivered strong results for the first quarter and are well positioned for the balance of the year. With the Vivint acquisition complete, we turn our focus to integration, growth and synergies. Our efforts are well underway, and it is now all about execution. I look forward to providing you a comprehensive update on our home business and strategy at our upcoming Investor Day.

謝謝你，阿爾貝托。轉到幻燈片 14。我想就今天的演示文稿提供一些結束語。我們在第一季度取得了強勁的業績，並為今年餘下的時間做好了準備。隨著 Vivint 收購的完成，我們將重點轉向整合、增長和協同效應。我們的努力正在進行中，現在一切都與執行有關。我期待著在即將到來的投資者日為您提供有關我們家庭業務和戰略的全面更新。

So with that, I want to thank you for your time and interest in NRG. Sean, we're now ready to open the lines for questions.

因此，我要感謝您抽出時間和對 NRG 的興趣。肖恩，我們現在可以開始提問了。

(Operator Instructions) And our first question comes from Julien Dumoulin-Smith with Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 Julien Dumoulin-Smith。

Just wanted to follow up on the synergy scorecard here and just thinking through Vivint here. I mean you're laying out -- you've got the $300 million and $100 million in revenue and cost synergies, respectively. How do you think about that translating back to consolidated EBITDA for Vivint here again? And/or how does that fit with the 12% to 15% FCF target as well? Just want to try to tie it out at least $225 million as best you can today if we can be a little bit more specific.

只是想在這裡跟進協同記分卡，只是想通過 Vivint 在這裡。我的意思是你正在佈局 - 你分別獲得了 3 億美元和 1 億美元的收入和成本協同效應。您如何看待這再次轉化為 Vivint 的合併 EBITDA？和/或這如何與 12% 至 15% 的 FCF 目標相符？如果我們能說得更具體一點，今天就想盡可能地把它至少固定在 2.25 億美元。

Yes. So Julian, I'm assuming that you're talking about the target that we provide on our free cash flow per share that support 15% or 20% growth. And when you look at the EBITDA and free cash flow generation capability of NRG and then you lay on top of that, the $400 million of cost synergies and revenue synergies, we feel very confident that we're going to be on path to achieve that 15% to 20% free cash flow per share return.

是的。所以朱利安，我假設你在談論我們為支持 15% 或 20% 增長的每股自由現金流提供的目標。當您查看 NRG 的 EBITDA 和自由現金流生成能力，然後您將其放在最重要的位置時，即 4 億美元的成本協同效應和收入協同效應，我們非常有信心我們將走上實現這一目標的道路每股回報率 15% 至 20% 的自由現金流。

As a matter of fact, the acquisition of Vivint now gives us a little bit more control on achieving that. Remember, before we have tremendous financial flexibility, and we generate excess cash will be on what the traditional NRG needed, that we have used to reduce the denominator. The 1 variable that we cannot control there is at the price that we can buy back our stock. Now with the Vivint engine and the opportunity to create this $400 million of incremental value. we just increased the tools that we have to increase the numerator. And put more in control the achievement of this $12.50 that we have laid out for 2025. So I feel very comfortable that with what we laid out today and in previous calls that we are on track to achieving that $12.50 a share by 2025.

事實上，收購 Vivint 現在讓我們在實現這一目標方面有了更多的控制權。請記住，在我們擁有巨大的財務靈活性之前，我們會根據傳統 NRG 需要的東西產生多餘的現金，我們已經用它來減少分母。我們無法控制的第一個變量是我們可以回購股票的價格。現在有了 Vivint 引擎，就有機會創造這 4 億美元的增量價值。我們只是增加了我們必須增加分子的工具。並更多地控制我們為 2025 年制定的 12.50 美元的實現。因此，我對我們今天和之前的電話會議所製定的計劃感到非常滿意，我們有望在 2025 年實現每股 12.50 美元。

Right. So -- yes, clearly 15% to 20%. And more to the point, as you think about layering on additional assumptions rolling out potentially updated guidance with this Analyst Day. Any initial thoughts on what else can be done with the Vivint platform to continue to grow it. I'll note that the commentary here at the outset is really focused on synergies. You talked about revenue and growth here in the first couple of years, how do you think about compounding that beyond the '25 period that you're providing here today? Maybe any initial thoughts on how far you can go at this prospective Analyst Day.

正確的。所以——是的，顯然是 15% 到 20%。更重要的是，當你考慮在這個分析師日推出可能更新的指南時，你會考慮在額外的假設上分層。關於 Vivint 平台還可以做什麼以繼續發展它的任何初步想法。我會注意到這裡的評論一開始就真正關注協同效應。你在這裡談到了頭幾年的收入和增長，你如何看待你今天在這裡提供的 25 年之後的複合？也許您對在這個預期的分析師日可以走多遠有任何初步想法。

Right. Well, the first thing that I will say is when I think about the Vivint business, there are 3 big leverages that we're going to be focused on the -- Vivint business was high, had high leverage. It has a high acquisition cost and there was also an opportunity on the consumer financing. So these are 3 specific buckets that we're focused on optimizing. And for me, it creates an opportunity for value creation. Now right now, we're focused on optimizing the 7.5 million net worth customers that we have. We have opened the lines of communication across our sales channels we're going to continue to optimize them. We're going to -- we have introduced bundling.

正確的。好吧，我要說的第一件事是，當我想到 Vivint 業務時，我們將關註三大槓桿——Vivint 業務很高，槓桿率很高。它的購置成本很高，而且在消費者融資方面也有機會。因此，這些是我們專注於優化的 3 個特定存儲桶。對我來說，它創造了創造價值的機會。現在，我們專注於優化我們擁有的 750 萬淨資產客戶。我們已經在我們的銷售渠道中打開了溝通渠道，我們將繼續優化它們。我們將——我們引入了捆綁。

We now are doing cross-sell between our call centers and our digital assets. We are testing in the market bundle. So that is the focus right now. When I think about 2025 and beyond, it's really about how do we bring the energy experience that we currently have with the smart home experience that we have and we create a best-in-class product for customers that is going to drive the growth on 2025 and beyond. This is something that we're going to be talking more about on our Investor Day on how this vision comes together with the 2 offerings that we have one in energy, one in a smart home. So we will make it more tangible and real for all our investors at the upcoming investor.

我們現在正在我們的呼叫中心和我們的數字資產之間進行交叉銷售。我們正在市場包中進行測試。所以這是現在的重點。當我想到 2025 年及以後時，這實際上是關於我們如何將我們目前擁有的能源體驗與我們擁有的智能家居體驗相結合，並為客戶創造一流的產品，以推動增長2025 年及以後。這是我們將在投資者日更多地討論這一願景如何與我們擁有的兩種產品結合在一起的東西，一種是能源，一種是智能家居。因此，對於即將到來的投資者，我們將使所有投資者更加切實和真實。

At this time, I would like to turn it back to Mauricio for closing comments.

現在，我想把它轉回 Mauricio 以徵求結束意見。

Okay. Well, thank you. Thank you for your interest in NRG. I look forward to hosting all of you in our upcoming Investor Day that we should have in early summer where we're going to be talking about the smart home strategy. We're going to provide additional details on our growth plan and provide you more transparency on our key performance indicators that will help you better model the business.

好的。嗯，謝謝。感謝您對 NRG 的關注。我期待著在即將到來的投資者日接待大家，我們應該在初夏舉行，屆時我們將討論智能家居戰略。我們將提供有關我們增長計劃的更多詳細信息，並為您提供有關我們關鍵績效指標的更多透明度，這將幫助您更好地建立業務模型。

So with that, I want to thank you for your interest and look forward to speaking with you soon. Thank you.

因此，我要感謝您的關注，並期待盡快與您交談。謝謝。

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

女士們，先生們，感謝你們參加今天的會議。程序到此結束。