NRG Energy Inc (NRG) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the NRG Energy, Inc. Second Quarter 2023 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 NRG Energy, Inc. 2023 年第二季度財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Kevin Cole, Head of Investor Relations. Please go ahead.

現在我想將會議交給今天的發言人，投資者關係主管凱文·科爾 (Kevin Cole)。請繼續。

Thank you, [Jana].

謝謝你，[賈娜]。

Good morning, and welcome to NRG Energy's Second Quarter 2023 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 Webcasts.

早上好，歡迎參加 NRG Energy 2023 年第二季度財報電話會議。今天早上的電話會議時長為 45 分鐘，將通過電話和網絡廣播進行現場直播，網絡廣播可以在我們網站 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 upon 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 and reconciliations to the most directly comparable GAAP measures, please refer to today's 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。我們敦促大家查看今天演示中的安全港以及我們向 SEC 提交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，我們將參考公認會計原則和非公認會計原則財務指標。有關我們的非公認會計原則財務指標以及與最直接可比的公認會計原則指標的調節的信息，請參閱今天的演示文稿。

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

現在，我將把電話轉給 NRG 總裁兼首席執行官 Mauricio Gutierrez。

Thank you, Kevin.

謝謝你，凱文。

Good morning, everyone, and thank you for your interest in NRG. I'm joined this morning by Bruce Chung, Chief Financial Officer. Also on the call and available for questions are other members of our management team, including the heads of Home, Smart Home Business and Policy.

大家早上好，感謝您對 NRG 的興趣。今天上午，首席財務官布魯斯·鐘 (Bruce Chung) 也加入了我的行列。我們管理團隊的其他成員也可以接聽電話並回答問題，包括家居、智能家居業務和政策部門的負責人。

Just over a month ago, we held our Investor Day, where we provided an update on our long-term consumer strategy. We outlined the strength of our core energy business, how the acquisition of Vivint further enhances our energy platform and position us to capitalize on the convergence of electricity and smart technologies in the home. Today, I am going to focus on the results for the second quarter, starting on Slide 4 with our 3 key messages.

就在一個多月前，我們舉行了投資者日，我們在會上提供了我們長期消費者戰略的最新信息。我們概述了我們核心能源業務的實力，以及收購 Vivint 如何進一步增強我們的能源平台，並使我們能夠利用家庭中電力和智能技術的融合。今天，我將重點關注第二季度的業績，從幻燈片 4 開始，我們將介紹 3 個關鍵信息。

First, our business delivered strong quarterly results, and we are now trending towards the end -- the high end of our 2023 EBITDA guidance range. Next, the Vivint Smart Home integration is well underway, and we are realizing early wins in our combined sales efforts. Finally, we are executing on our consumer strategy to deliver significant value to our shareholders.

首先，我們的業務交付了強勁的季度業績，而且我們現在正走向終點——2023 年 EBITDA 指導範圍的高端。接下來，Vivint 智能家居集成正在順利進行，我們正在在聯合銷售努力中取得早期勝利。最後，我們正在執行我們的消費者戰略，為我們的股東帶來巨大的價值。

Moving to the second quarter results on Slide 5. We delivered top decile safety performance and $819 million of adjusted EBITDA, a 112% increase from the same period last year, driven by excellent performance on our core energy business and the addition of Vivint Smart Home. Bruce will provide additional details on specific drivers, but our business benefited from strong plant operations, our enhanced supply strategy, customer growth and favorable market conditions.

轉到幻燈片5 上的第二季度業績。在核心能源業務的出色表現以及Vivint 智能家居的加入的推動下，我們實現了最高的十分位安全績效和8.19 億美元的調整後EBITDA，比去年同期增長112% 。布魯斯將提供有關具體驅動因素的更多詳細信息，但我們的業務受益於強大的工廠運營、增強的供應策略、客戶增長和有利的市場條件。

During the quarter, we began the integration of Vivint Smart Home, which has yielded solid early results. Our revenue and cost synergy programs are well underway, and we are reaffirming the full plan targets. As a result of early wins in our growth initiatives, we are increasing our 2023 growth target to $60 million, doubling our previous expectation.

本季度，我們開始整合 Vivint 智能家居，並取得了堅實的早期成果。我們的收入和成本協同計劃正在順利進行，我們正在重申完整的計劃目標。由於我們的增長計劃取得了早期成果，我們將 2023 年的增長目標提高到 6000 萬美元，是之前預期的兩倍。

Finally, we hosted our Investor Day in June, which included our 5-year strategic plan and an update on our capital allocation framework. As a result of the sale of South Texas Project and our revised capital allocation plan, we are executing on a $2.7 billion share repurchase authorization and a $2.6 billion debt reduction plan. Through July, we were able to complete $50 million of share repurchases and $200 million of debt reduction. As a result of the strong quarterly results and our position for the rest of the year, we are reaffirming our 2023 financial guidance, with our EBITDA currently trading at the higher end of the range.

最後，我們在 6 月舉辦了投資者日，其中包括我們的 5 年戰略計劃和資本配置框架的更新。由於南德克薩斯項目的出售和我們修訂的資本配置計劃，我們正在執行 27 億美元的股票回購授權和 26 億美元的債務削減計劃。截至 7 月份，我們完成了 5000 萬美元的股票回購和 2 億美元的債務削減。由於強勁的季度業績和我們今年剩餘時間的狀況，我們重申 2023 年的財務指引，目前我們的 EBITDA 處於該範圍的高端。

Now turning to Slide 6 for an update on our Energy business. ERCOT has experienced record peak demand this summer, demonstrating robust load growth in our core Texas region on a weather-normalized basis. The electric grid has been stable through these record demand. During the quarter, thermal and wind generation performed close to expected levels, which kept our prices relatively muted.

現在轉向幻燈片 6，了解我們能源業務的最新情況。今年夏天，ERCOT 經歷了創紀錄的需求高峰，這表明我們德克薩斯州核心地區的負荷在天氣正常化的基礎上強勁增長。通過這些創紀錄的需求，電網一直保持穩定。本季度，火力發電和風力發電的表現接近預期水平，這使我們的價格相對較低。

As I mentioned during Investor Day, we implemented changes to our supply strategy that have worked well for us. We were more conservative on our plant operations and took additional maintenance outages that resulted in better performance from our fleet. We also purchased additional power above our expected low to give us more cushion against extreme weather. All of these have positioned us well this summer and for balance of the year. Parish Unit 8 is in testing mode and expected to come back to full service by the end of this month.

正如我在投資者日期間提到的，我們對供應策略進行了調整，這對我們來說效果很好。我們對工廠運營更加保守，並進行了額外的維護停機，從而提高了我們機隊的性能。我們還購買了高於預期低點的額外電力，以便為我們提供更多應對極端天氣的緩衝。所有這些都使我們在今年夏天和今年餘下的時間里處於有利地位。 Parish Unit 8 正處於測試模式，預計將在本月底恢復全面服務。

On the regulatory front, the PUCT last week approved a much discussed bridge solution, which establishes positive price floors at various levels of operating reserves. This eliminates negative pricing during many hours and should help existing dispatchable units. Looking forward, ERCOT and the PUCT are moving ahead with the market design changes stemming from the recent legislative session. These changes were meant to increase reliability and incentivize new dispatchable generation. Key among these programs is PCM, the Performance Credit Mechanism, which will now go through our rule-making process prior to being implemented. Another major program coming from the legislator was the Texas Energy Fund, a program of low interest rate loans and completion bonuses for new generation. Prior to its implementation, the Texas Energy Fund must first be approved as a ballot measure by the public in November election.

在監管方面，PUCT 上週批准了一項備受討論的過渡解決方案，該解決方案在各個運營儲備水平上建立了積極的價格下限。這消除了長時間內的負定價，並且應該有助於現有的可調度單位。展望未來，ERCOT 和 PUCT 正在推進近期立法會議引發的市場設計變革。這些變化旨在提高可靠性並激勵新的可調度發電。這些計劃中的關鍵是 PCM（績效信用機制），該機制現在將在實施之前經過我們的規則制定流程。立法者提出的另一個主要計劃是德克薩斯能源基金，這是一項為新一代提供低利率貸款和完成獎金的計劃。在實施之前，德克薩斯能源基金必須首先在 11 月的選舉中作為一項投票措施獲得公眾的批准。

On Slide 7, we are introducing our new scorecard for the growth and cost initiatives. These will be updated on a quarterly basis with our progress.

在幻燈片 7 上，我們介紹了用於增長和成本計劃的新記分卡。這些將隨著我們的進展每季度更新一次。

I have been very impressed with the level of collaboration and integration between our Energy and Smart Home teams. During the Investor Day, we discussed the makeup of our $300 million growth program, 50% coming from organic growth at historical levels and 50% from cross-sell activities. For the quarter, Energy and Smart Home grew at historical target levels and in line with our plan. For the cross-sell activities, we have seen some early successes. As such, we are increasing our growth target in 2023 from $30 million to $60 million. Our Energy and Smart Home call centers have begun transferring more leads to each other, and we are seeing positive customer conversion rates on qualified leads of around 6%. And with the addition of the DIY system introduced during the quarter, conversion rates are now moving closer to 10%, as this system is a good entry point to upsell and create more stickiness with the customer.

我們的能源和智能家居團隊之間的協作和集成水平給我留下了深刻的印象。在投資者日期間，我們討論了 3 億美元增長計劃的構成，其中 50% 來自歷史水平的有機增長，50% 來自交叉銷售活動。本季度，能源和智能家居業務增長達到歷史目標水平，符合我們的計​​劃。對於交叉銷售活動，我們已經看到了一些早期的成功。因此，我們將 2023 年的增長目標從 3000 萬美元提高到 6000 萬美元。我們的能源和智能家居呼叫中心已開始相互轉移更多潛在客戶，我們發現合格潛在客戶的客戶轉化率約為 6%。隨著本季度推出的 DIY 系統的加入，轉化率現已接近 10%，因為該系統是追加銷售和增加客戶粘性的良好切入點。

One of the best examples of cross-selling and leveraging capabilities across NRG is the Vivint Protection Plan. This is an equipment protection plan that leverages NRG's current capabilities. Vivint launched this program in the second quarter, and we are already at 120,000 plans sold. This is a new revenue stream with very little cost. Our focus for the remainder of the year is to continue testing different bundles and offers before we scale it up in 2024. We are very encouraged on what we're seeing across the 2 businesses and the opportunities that are arising inside the home.

Vivint 保護計劃是 NRG 交叉銷售和利用能力的最佳示例之一。這是一個利用 NRG 當前能力的設備保護計劃。 Vivint 在第二季度推出了該計劃，目前我們已售出 120,000 個計劃。這是一種成本極低的新收入來源。我們今年剩餘時間的重點是繼續測試不同的捆綁包和優惠，然後在 2024 年擴大規模。我們對這兩家企業所看到的情況以及家庭中出現的機會感到非常鼓舞。

One of the commitments during our Investor Day was to provide additional disclosures on our Vivint Smart Home business. On Slide 8, we have provided key performance indicators comparing quarter-over-quarter. As you can see, we have performed exceptionally well during the quarter, with subscribers growing 7% and recurring service margins up 9%. Our customers are engaging more with our platform and are staying for a longer period of time. Acquisition costs are higher due to the impact of higher interest rates and more products being sold, but they were more than offset by higher revenue on new subscribers. Overall, the profitability of the business is very strong.

我們投資者日期間的承諾之一是提供有關 Vivint 智能家居業務的額外披露。在幻燈片 8 中，我們提供了季度與季度比較的關鍵績效指標。正如您所看到的，我們在本季度的表現非常出色，訂戶數量增長了 7%，經常性服務利潤率增長了 9%。我們的客戶更多地參與我們的平台，並且停留的時間更長。由於利率上升和銷售更多產品的影響，購置成本較高，但新訂戶收入的增加足以抵消這些成本。總體而言，該業務的盈利能力非常強勁。

On the right-hand side is our Vivint Smart Home pro forma free cash flow projection through 2025. Our target is to grow customer count in line with historical performance around 7%, while we continue to increase margin contribution and reduce overall cost of acquiring and servicing customers. We expect to more than triple the cash flow generator from the business over the next 3 years. It will provide NRG an earnings stream that is stable, predictable over a long period of time, and importantly, diversified from our current Energy business.

右側是我們到 2025 年的 Vivint 智能家居預計自由現金流預測。我們的目標是根據歷史業績增長 7% 左右的客戶數量，同時繼續增加利潤貢獻並降低收購和收購的總體成本。服務客戶。我們預計未來三年內該業務的現金流量將增加兩倍以上。它將為 NRG 提供長期穩定、可預測的收益流，而且重要的是，它可以使我們當前的能源業務實現多元化。

Turning to Slide 9. Our Investor Day focused on our commitment to operating excellence, disciplined growth and maximizing shareholder returns. I want to provide you some of the key highlights of the event: We outlined a 3-part strategic plan to optimize our Integrated Energy model, grow Energy and Smart Home and increased return of capital while achieving an investment-grade balance sheet.

轉向幻燈片 9。我們的投資者日重點關注我們對卓越運營、規范增長和股東回報最大化的承諾。我想向您介紹本次活動的一些主要亮點：我們概述了一個由三部分組成的戰略計劃，旨在優化我們的綜合能源模型、發展能源和智能家居以及增加資本回報，同時實現投資級資產負債表。

Our Integrated Energy model has evolved in the last 7 years, providing more durable earnings. We have strengthened our supply portfolio with the right mix of assets to better serve our customer load. The recent sale of our interest in South Texas Project is a great example of our ability to optimize our platform and maximize shareholder value through monetizing an asset whose attributes can be readily replicated and replaced in the market. At the same time, we are signing renewable PPAs and evaluating dispatchable capacity development projects that better match our hedging needs.

我們的綜合能源模式在過去 7 年中不斷發展，提供了更持久的收益。我們通過正確的資產組合加強了我們的供應組合，以更好地服務於我們的客戶負載。我們最近出售南德克薩斯項目的權益是一個很好的例子，表明我們有能力通過將其屬性可以在市場上輕鬆複製和替換的資產貨幣化來優化我們的平台並最大化股東價值。與此同時，我們正在簽署可再生能源購電協議，並評估可調度的產能開發項目，以更好地滿足我們的對沖需求。

We outlined our growth program for Energy and Smart Home, capitalizing on the convergence of electricity and smart technologies inside the home. We are going to use Vivint Smart Home technology platform to connect all of our products and services into a seamless experience for our customers. These will result in higher customer lifetime value.

我們概述了能源和智能家居的增長計劃，利用家庭內部電力和智能技術的融合。我們將使用 Vivint 智能家居技術平台將我們所有的產品和服務連接起來，為客戶提供無縫體驗。這些將帶來更高的客戶終身價值。

Finally, we announced an update to our capital allocation framework, with 80% of capital available for allocation now returned to shareholders. With the acquisition of Vivint complete, we have line of sight to the investment needs of the company going forward with growth investments using only 20% of capital available for allocation. Consistent with this change, we increased our share repurchase authorization to $2.7 billion to be completed through 2025. We also accelerated the achievement of our investment-grade credit metrics targets to 2025.

最後，我們宣布更新資本配置框架，80%的可配置資本現已返還給股東。隨著 Vivint 的收購完成，我們可以了解該公司未來的投資需求，僅使用 20% 的可配置資本進行增長投資。與這一變化相一致，我們將股票回購授權增加至 27 億美元，將於 2025 年完成。我們還加快了到 2025 年實現投資級信用指標目標的速度。

I will pass it over to Bruce for the financial review.

我會將其交給布魯斯進行財務審查。

Thank you, Mauricio.

謝謝你，毛里西奧。

NRG built on a solid first quarter, with strong results in the second quarter that materially exceeded performance from last year. The company generated consolidated adjusted EBITDA of $819 million in the quarter, which is $433 million higher than the second quarter of 2022.

NRG 建立在第一季度穩健的基礎上，第二季度的業績強勁，大大超過了去年的業績。該公司本季度綜合調整後 EBITDA 為 8.19 億美元，比 2022 年第二季度高出 4.33 億美元。

As you can see in the chart at the bottom of the page, legacy NRG results once again included the impact of asset sales and retirements in the second quarter of 2022, totaling $30 million. The quarter also reflected $60 million of benefit compared to 2Q 2022 from the reversal of transitory items such as coal constraints and increased ancillary expenses. Strong performance in our core Energy business resulted in $186 million of uplift from the prior year. That uplift was driven by lower supply costs and improved plant performance relative to 2022. Finally, the remaining year-over-year increase to consolidated results is attributable to Vivint EBITDA of $217 million, which was not included in our 2022 results.

正如您在頁面底部的圖表中看到的，傳統 NRG 結果再次包含 2022 年第二季度資產出售和退役的影響，總計 3000 萬美元。與 2022 年第二季度相比，該季度還因煤炭限制和輔助費用增加等臨時項目的逆轉而帶來了 6000 萬美元的收益。我們核心能源業務的強勁表現使我們比上一年增加了 1.86 億美元。與 2022 年相比，供應成本下降和工廠業績改善推動了這一增長。最後，合併業績的剩餘同比增長歸因於 Vivint EBITDA 2.17 億美元，該金額未包含在我們 2022 年業績中。

Looking at our segments, and starting with Texas, adjusted EBITDA increased by $241 million versus the prior year on the back of higher gross margin of $273 million. As outlined earlier, meaningful unit margin expansion from lower supply costs, coupled with improved plant performance, were the primary drivers for the increase in gross margin. This increase in gross margin was partially offset by increased OpEx from the timing of planned outages and higher insurance premiums.

從德克薩斯州開始，調整後的 EBITDA 比上年增加了 2.41 億美元，毛利率提高了 2.73 億美元。如前所述，供應成本降低帶來的單位利潤率大幅增長，加上工廠績效的改善，是毛利率增長的主要驅動力。毛利率的增長被計劃停電時間增加的運營支出和更高的保險費部分抵消。

In the East/West segment, adjusted EBITDA declined $25 million versus last year, driven primarily by asset sales and retirements. Similar to Texas, gross margin increased year-over-year and lower power supply costs more than offset the negative impact of volume declines due to mild weather.

在東/西部分，調整後的 EBITDA 比去年下降了 2500 萬美元，這主要是由資產出售和報廢推動的。與德克薩斯州類似，毛利率同比增長，供電成本下降足以抵消溫和天氣造成的銷量下降的負面影響。

In Q2, Vivint continued to deliver strong financial results, contributing $217 million in adjusted EBITDA. Revenue grew 12% year-over-year driven by favorable retention and higher recurring monthly revenue per subscriber, which combined with reductions in monthly service cost per customer, drove a 14% increase in adjusted EBITDA compared to Q2 2022. Lastly, with average subscriber growth of 7% year-over-year, Vivint recently achieved a key milestone, surpassing 2 million customers.

第二季度，Vivint 繼續取得強勁的財務業績，調整後 EBITDA 貢獻 2.17 億美元。得益於良好的留存率和每位訂戶每月經常性收入的增加，加上每位客戶每月服務成本的降低，收入同比增長12%，與2022 年第二季度相比，調整後EBITDA 增長了14%。最後，平均訂戶人數Vivint 同比增長 7%，最近實現了一個重要里程碑，客戶數量突破 200 萬。

NRG's free cash flow before growth for the quarter was $425 million, a year-over-year increase of $328 million, primarily driven by the increase in adjusted EBITDA. In addition to improved EBITDA, falling gas prices have reduced cash outflows for gas inventory that is typically built in the second quarter. Finally, building on our strong year-to-date results, we are reaffirming our adjusted EBITDA and free cash flow before growth guidance for 2023.

NRG 本季度增長前的自由現金流為 4.25 億美元，同比增長 3.28 億美元，主要是由調整後 EBITDA 的增長推動的。除了 EBITDA 改善外，天然氣價格下跌還減少了通常在第二季度建立的天然氣庫存的現金流出。最後，在今年迄今強勁業績的基礎上，我們重申 2023 年調整後 EBITDA 和自由現金流增長指引。

Now turning to Slide 12 for a brief update on our 2023 allocation, capital allocation. You will notice that the numbers shown on this slide align with the guidance we gave during our June Investor Day presentation. I would call your attention to the progress we have made so far on debt reduction and share repurchases.

現在轉向幻燈片 12，了解我們 2023 年分配（資本分配）的簡要更新。您會注意到，這張幻燈片上顯示的數字與我們在六月投資者日演示中提供的指導一致。我想提請您注意我們迄今為止在債務削減和股票回購方面取得的進展。

Through July 31, we have paid down $200 million of debt and remain on track to complete our target of $1.4 billion in debt reduction for 2023. Additionally, we executed $50 million of share repurchases in July as part of our $2.7 billion share repurchase authorization through 2025.

截至 7 月 31 日，我們已償還了 2 億美元的債務，並有望完成 2023 年 14 億美元債務削減的目標。此外，我們於 7 月執行了 5,000 萬美元的股票回購，作為我們通過2025 年。

Quickly turning to Slide 13. Our credit profile has not changed meaningfully since our last earnings call. As a result, this slide has not substantially changed since our last update, except for an update to the adjustments to capture the noncash fulfillment amortization costs that are included in adjusted EBITDA as a result of the EBITDA harmonization we did last quarter. We remain on track to achieve our 2023 targeted leverage ratio, and we reiterate our commitment to achieving investment-grade credit metrics by the end of 2025.

快速轉向幻燈片 13。自上次財報電話會議以來，我們的信用狀況沒有發生重大變化。因此，自上次更新以來，這張幻燈片沒有發生重大變化，除了更新了調整以捕獲非現金履行攤銷成本，這些成本包含在調整後的EBITDA 中，這是我們上季度進行的EBITDA 協調的結果。我們仍有望實現 2023 年目標槓桿率，並重申我們致力於在 2025 年底前實現投資級信貸指標。

Before turning it back to Mauricio, I wanted to be sure to augment his earlier comments regarding our commitment to enhance disclosure, especially with respect to Vivint. As part of that commitment, you will see in the appendix of the presentation some new disclosure providing key metrics related to Vivint. We will continue to provide these key metrics on a quarterly basis, and we look forward to working with you to help you understand how these metrics drive the financial results of the business.

在將其轉回 Mauricio 之前，我想確保補充他之前關於我們加強披露的承諾的評論，特別是關於 Vivint 的評論。作為該承諾的一部分，您將在演示文稿的附錄中看到一些新的披露，提供與 Vivint 相關的關鍵指標。我們將繼續按季度提供這些關鍵指標，我們期待與您合作，幫助您了解這些指標如何推動企業的財務業績。

With that, I'll turn it back to you, Mauricio.

有了這個，我會把它轉回給你，毛里西奧。

Thank you, Bruce.

謝謝你，布魯斯。

Turning to Slide 15, I want to provide a few closing thoughts on our 2023 priority score card. As you can see, our team has remained focused on execution as evidenced by our strong results for the quarter. Our core Energy business is well positioned for the summer. The integration of Vivint is off to a good start, and we're working towards closing the sale of STP by the end of the year. We will remain focused on executing our strategic plan that creates significant shareholder value. I look forward to updating you on our progress.

轉向幻燈片 15，我想就我們的 2023 年優先計分卡提供一些結束語。正如您所看到的，我們的團隊仍然專注於執行，本季度的強勁業績就證明了這一點。我們的核心能源業務已為夏季做好準備。 Vivint 的整合已經有了一個良好的開端，我們正在努力在今年年底前完成 STP 的銷售。我們將繼續專注於執行為股東創造重大價值的戰略計劃。我期待向您通報我們的最新進展。

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

在此，我要感謝您對 NRG 的關注和關注。 [Jana]，我們現在準備好開通提問熱線。

At this time, we will conduct the question-and-answer session. (Operator Instructions)

這時，我們將進行問答環節。 （操作員說明）

Your first question comes from Julien Dumoulin-Smith of BofA.

你的第一個問題來自美國銀行的 Julien Dumoulin-Smith。

Maybe just first off, just -- thank you for all the details on Vivint. Can you talk a little bit about your 6% conversion rate in terms of [rates] here? Just how does that compare versus expectations? And just perhaps provide a little bit of context?

也許首先，謝謝您提供有關 Vivint 的所有詳細信息。您能在這裡談談 [rates] 方面的 6% 轉化率嗎？與預期相比如何？也許只是提供一點背景信息？

Sure. Julien. So --

當然。朱利安.所以 -

In conversion of KPIs.

KPI 的換算。

Right.

正確的。

So Julien, in terms of the conversion rates, this is what we've been able to achieve on qualified leads so far. This is higher than what we expected. If you recall, our cross-sell target was around a 3% penetration, so this is above that. Obviously, this is early, but we're very encouraged by the success that we've had so far. This is Smart Home customers buying Energy and Energy buying Smart Home. With the addition of the DIY system that Vivent introduced, we're actually seeing an increase on those conversion rates because it allows us to have an entry point, a cheaper entry point that we can use to up-sell and create more stickiness with the customers.

Julien，就轉化率而言，這是我們迄今為止在合格潛在客戶上能夠實現的目標。這高於我們的預期。如果您還記得的話，我們的交叉銷售目標是 3% 左右的滲透率，所以這個數字高於這個數字。顯然，現在還為時尚早，但我們對迄今為止所取得的成功感到非常鼓舞。這是購買能源的智能家居客戶和購買智能家居的能源。隨著Vivent 推出的DIY 系統的加入，我們實際上看到了這些轉化率的增加，因為它使我們能夠擁有一個切入點，一個更便宜的切入點，我們可以用它來追加銷售並創造更多的粘性顧客。

So we're very, very encouraged by what we're seeing so far. At the same time, some of the secondary products like the Protection Plan from Vivint had tremendous success. And that's why when you combine all these with our organic growth, we -- I felt compelled to increase our targets for 2023. So we are seeing results faster than what we expected initially. Very, very encouraging.

因此，我們對迄今為止所看到的情況感到非常非常鼓舞。與此同時，Vivint的Protection Plan等一些次級產品也取得了巨大的成功。這就是為什麼當你將所有這些與我們的有機增長結合起來時，我們——我覺得有必要提高 2023 年的目標。因此，我們看到結果的速度比我們最初預期的要快。非常非常令人鼓舞。

Excellent.

出色的。

And then related, can you talk a little bit about your commitment to building new generation in Texas? I mean, obviously, you want to see this corresponding support from the state here. Just where do we stand on that investment follow through? As well as just the ROFR or any potential commentary around the petition from your coders on STP?

然後，您能談談您對在德克薩斯州建設新一代的承諾嗎？我的意思是，顯然，你希望看到來自國家的相應支持。我們在投資跟進方面處於什麼位置？以及 ROFR 或您的編碼員在 STP 上提出的請願書的任何潛在評論？

So let me start with the development projects. As you know, we have 3 development projects that are in late stages of development. I mean, 1 of them is shovel-ready. We have positioned ourselves to capitalize on the market design changes that ERCOT has put forward, both in PCM and the new loan program. As I mentioned, we need more clarity on both of these fronts before we can actually move forward with these projects, but I am very pleased with how the team has positioned these projects, and they're ready. This is exactly the type of generation, exactly the right attributes that we need to manage our loan. This is mid-merit and peaking capacity, so loan following type of attributes. And I'm just very pleased that the team has put us in this position to be able to make that decision.

讓我從開發項目開始。如您所知，我們有 3 個開發項目處於開發後期階段。我的意思是，其中 1 個已經準備好鏟了。我們已將自己定位為利用 ERCOT 在 PCM 和新貸款計劃方面提出的市場設計變革。正如我所提到的，在我們真正推進這些項目之前，我們需要在這兩個方面更加清晰，但我對團隊如何定位這些項目感到非常滿意，並且他們已經準備好了。這正是一代人的類型，正是我們管理貸款所需的正確屬性。這是中等價值和峰值能力，因此貸款遵循類型的屬性。我很高興團隊讓我們處於這個位置，以便能夠做出這樣的決定。

I think your second question was around the claims of our partners at STP. Let me be very clear. We believe that the claims are without merit, and we expect to close the sale of our interest in STP by the end of the year.

我認為你的第二個問題是關於我們 STP 合作夥伴的主張。讓我說得很清楚。我們認為這些主張毫無根據，我們預計將在今年年底前完成 STP 權益的出售。

Got it.

知道了。

And just to clarify, it says you're not committed yet on making the repowering investments here?

澄清一下，它說你還沒有承諾在這裡進行重新供電投資？

No, not yet.

還沒有。

All right. Fair enough. I will leave it there.

好的。很公平。我會把它留在那裡。

Our next question comes from Shar Pourreza of Guggenheim Partners.

我們的下一個問題來自古根海姆合夥人公司的 Shar Pourreza。

Just 1 on STP, just a quick follow-up on Julien's question. If -- for instance, if there is a delay and we have to book in this, right? I mean, obviously, there's a level of confidence. We heard the prepared remarks. Could a delay impact anything on the capital allocation slide as we're thinking about it? So even on the buyback side, assuming there could be a delay?

STP 上只有 1，只是對 Julien 問題的快速跟進。如果——例如，如果出現延誤，我們必須預訂，對吧？我的意思是，顯然，有一定程度的信心。我們聽取了準備好的發言。正如我們正在考慮的那樣，延遲是否會對資本配置下滑產生任何影響？那麼即使在回購方面，假設可能會有延遲呢？

Well, I mean, I'm not going to speculate on that. Like I said, the claims are without merit. Our plan is to close by the end of the year. I think is -- and as we have done in the past, we will deploy capital when we have it, right? So right now, our focus is on the share buyback and the debt reduction program that we have for 2023.

嗯，我的意思是，我不會對此進行猜測。正如我所說，這些說法毫無根據。我們的計劃是在今年年底前關閉。我認為——正如我們過去所做的那樣，我們會在擁有資本時部署資本，對吧？因此，目前我們的重點是 2023 年的股票回購和債務削減計劃。

As you saw, since we overperformed during the second quarter, we were able to allocate $50 million to share buybacks. If that whole performance continues, we will continue to allocate in capital to share buybacks until we have the -- until we close the sale of STP, which is really an event that will increase substantially the capital that we have available to deploy.

正如您所看到的，由於我們在第二季度表現出色，因此我們能夠分配 5000 萬美元用於股票回購。如果整個表現持續下去，我們將繼續分配資本用於股票回購，直到我們完成 STP 的出售，這實際上是一個將大幅增加我們可用於部署的資本的事件。

Got it. Okay. Perfect.

知道了。好的。完美的。

And then, Mauricio, you guys obviously booked some significant margin expansion this quarter. Could we just dig a little bit further into the $186 million you're calling out? Maybe just both geographically, Texas versus East and/or by function. So does that also include near-term portfolio optimization with trading? Or is it really true longer-term margin expansion? So put it all together, how durable is that?

然後，毛里西奧，你們顯然在本季度預訂了一些大幅的利潤擴張。我們能否進一步挖掘一下您所說的 1.86 億美元？也許只是在地理上，德克薩斯州與東部和/或功能上。那麼這是否還包括通過交易進行近期投資組合優化？或者這真的是真正的長期利潤擴張嗎？那麼把所有這些放在一起，它有多耐用？

Yes. Let me start, and then I'll pass it over to Bruce for the specifics.

是的。讓我開始，然後我會將其轉交給布魯斯了解具體細節。

I think the team did just a fantastic job in managing margins, both in terms of revenue optimization and also the enhanced supply -- diversified supply strategy that we have on our commercial team, allowed us to realize lower supply cost. So really, really good management all around and our plants performed as expected, which I think that's what we expect going forward.

我認為該團隊在管理利潤方面做得非常出色，無論是在收入優化方面還是在增強供應方面——我們在商業團隊中採用的多元化供應策略使我們能夠實現更低的供應成本。因此，我們的管理非常非常好，我們的工廠也按預期運行，我認為這就是我們對未來的期望。

But Bruce, any other additional details?

但是布魯斯，還有其他更多細節嗎？

Yes, sure.

是的，當然。

So when you think about the $186 million, the preponderance of that really came out of Texas, not surprisingly, as you think about year-over-year. With the improved plant performance, that's going to translate into a much better setup for us to be able to service our supply obligations appropriately.

因此，當您考慮 1.86 億美元時，您會發現其中的大部分確實來自德克薩斯州，這並不奇怪，因為您逐年考慮。隨著工廠績效的提高，這將轉化為更好的設置，使我們能夠適當地履行我們的供應義務。

Just to give you a little bit of context, as you look at the power price landscape year-over-year between the 2 quarters, you'll see that around-the-clock prices in ERCOT were about 50% lower, which really helped us optimize how we service our load.

只是為了給您提供一些背景信息，當您查看兩個季度之間的同比電價格局時，您會發現 ERCOT 的全天候電價降低了約 50%，這確實有幫助我們優化我們的負載服務方式。

And then to your point about the question on durability, look. The reality is as long as our plants perform, our margins should be durable, and so that's what we continue to intend to do and continue to plan around. So on the East, there was a little bit of -- there was some margin expansion as well on the C&I side. We have seen C&I customers sign up contracts at better margins for us alongside the optimization activities that Mauricio had referred to.

然後說到你關於耐久性問題的觀點，看。現實是，只要我們的工廠正常運轉，我們的利潤就應該是持久的，所以這就是我們繼續打算做和繼續計劃的事情。因此，在東部，工商業方面也有一些利潤率擴張。我們看到工商業客戶以更高的利潤為我們簽訂了合同，同時還進行了毛里西奧提到的優化活動。

So overall, preponderance of it came from Texas, but some amount in the East as well.

總體而言，大部分來自德克薩斯州，但也有一部分來自東部。

Perfect. Fantastic. I appreciate it. Have a good morning.

完美的。極好的。我很感激。祝你早上好。

Thank you, Shar.

謝謝你，莎爾。

Our next question comes from Angie Storozynski of Seaport.

我們的下一個問題來自 Seaport 的 Angie Storozynski。

So you guys maintained the guidance range, but is it fair to assume that you are tracking above the midpoint, both from the EBITDA and free cash flow perspective?

因此，你們維持了指導範圍，但從 EBITDA 和自由現金流的角度來看，假設你們的跟踪高於中點是否公平？

Yes. Angie.

是的。安吉.

So yes, we are keeping -- we're affirming our guidance ranges at this point. I have indicated that we're trending toward the high end of the guidance. Obviously, the third quarter is a very important quarter. We are well positioned for it, our plants are performing well, our supply strategy is working well for us, but we'll have an opportunity to update you on our results in the third quarter call. So far, I am very pleased with how the business has performed across all business segments: Generation, Retail, Smart Home. And -- but third quarter, the summer is very important. Thus you appreciate, given the the extreme weather that we have seen. But so far, the business is performing very well.

所以，是的，我們目前正在確認我們的指導範圍。我已經指出，我們正趨向於指導的高端。顯然，第三季度是非常重要的一個季度。我們已經做好了充分準備，我們的工廠表現良好，我們的供應策略對我們來說效果很好，但我們將有機會在第三季度的電話會議上向您介紹我們的最新業績。到目前為止，我對該業務在所有業務領域的表現非常滿意：發電、零售、智能家居。而且——但是第三季度，夏季非常重要。鑑於我們所經歷的極端天氣，您對此表示讚賞。但到目前為止，該業務的表現非常好。

Okay.

好的。

Moving on to the margin expansion on the retail side, and I appreciate that most of it comes from Texas. But we've heard from some other retailers comments about the particular margin expansion for full requirement contracts. Remind us, please, if you actually have any of those? Probably more in the East, but again, just -- I don't even recall.

接下來是零售方面的利潤擴張，我很欣賞其中大部分來自德克薩斯州。但我們從其他一些零售商那裡聽到了關於全面需求合同的特定利潤擴張的評論。請提醒我們，您是否真的有這些？可能更多是在東方，但同樣，只是——我什至不記得了。

I mean we have -- remember, the full requirement is really C&I. We share C&I customers across Texas and the East. I think Bruce already mentioned that what we are seeing is higher margins because there is greater volatility in the market, right, both in Texas and in the East. So greater volatility means higher load following premiums, which means higher margins on the customers. This is a trend that we are also seeing in our business, and again, the changes that we made to our diversified supply strategy are working really well both for C&I, but also for residential customers.

我的意思是我們——記住，完整的要求實際上是 C&I。我們在德克薩斯州和東部地區共享工商業客戶。我認為布魯斯已經提到，我們看到的是更高的利潤率，因為市場波動更大，無論是在德克薩斯州還是在東部。因此，更大的波動性意味著更高的保費負載，這意味著客戶的利潤更高。我們在業務中也看到了這一趨勢，而且我們對多元化供應策略所做的改變對於工商業和住宅客戶來說都非常有效。

Okay.

好的。

And then on Vivint, why is there such a meaningful increase in the acquisition costs for customers?

那麼在 Vivint 上，為什麼客戶的獲取成本會出現如此顯著的增加？

Yes. So I mean, the increase is twofold. Number one, you have higher interest rates. And then number two, the customers are buying more products, and that's a really good thing. Now what you also should be able to see on the KPIs that we're providing you, our revenues are also higher. And by the way, much higher than that increase, so net-net is an increase on profitability.

是的。所以我的意思是，增長是兩倍。第一，你的利率更高。第二，客戶正在購買更多的產品，這確實是一件好事。現在，您還應該能夠在我們為您提供的關鍵績效指標上看到，我們的收入也更高了。順便說一句，比這個增幅要高得多，所以淨淨值是盈利能力的增長。

But Rasesh, perhaps you want to just provide a little bit more color?

但是 Rasesh，也許您只想提供更多一點的色彩？

Yes. Thank you, Mauricio.

是的。謝謝你，毛里西奧。

You said it well. What we're seeing is customers are more engaged in buying more services in the home. I think you can see through the KPIs that the monthly recurring service margin per customer is up 9%, and that's 9% across the entire customer base. When we look at our customer acquisition cohort, it's up more substantively than that, and so you can think of this as the increased acquisition cost will drive over $250 of incremental revenue over the life of the customer. And so we feel very good about the engagement level and the margin expansion in the base.

你說得好。我們看到的是，客戶更願意購買更多的家庭服務。我認為通過 KPI 可以看到，每個客戶的每月經常性服務利潤增長了 9%，整個客戶群的增長幅度為 9%。當我們查看客戶獲取群體時，會發現其增長幅度比這更大，因此您可以將其視為增加的獲取成本將在客戶生命週期內帶來超過 250 美元的增量收入。因此，我們對基礎的參與度和利潤率擴張感到非常滿意。

Your next question comes from Durgesh Chopra of Evercore ISI.

您的下一個問題來自 Evercore ISI 的 Durgesh Chopra。

You've answered all the other questions I had.

你已經回答了我提出的所有其他問題。

Just maybe real quick, obviously, you're very confident in 2023 here. So Parish Unit 8, probably you don't see that as a meaningful impact but the in-service is getting pushed. I think the last target was end of July, you moved it slightly to this month. Just can you talk to that, what's going on there?

顯然，你對 2023 年非常有信心。因此，教區第 8 單元，您可能不認為這是一個有意義的影響，但正在投入使用。我認為最後一個目標是七月底，你把它稍微移到了這個月。你能談談那裡發生了什麼嗎？

Yes. So I mean we seeing top the unit in middle of July. We are working right now through additional testing, and as you can appreciate, this was basically a rebuild of the entire generator. And -- but I'm confident that we're going to come back end of August.

是的。所以我的意思是我們會在七月中旬看到該單位的頂部。我們現在正在通過額外的測試進行工作，正如您所理解的，這基本上是整個生成器的重建。而且——但我相信我們會在八月底回來。

In terms of planning, you're correct. We actually took all the necessary steps to manage our low in the market at really good economics. So I feel that even if Parish comes back at the end of the month, it's not going to have an impact on the guidance that we provided you today.

從規劃的角度來說，你是對的。實際上，我們採取了所有必要的措施，以非常好的經濟效益來管理我們的市場低點。所以我覺得即使帕里什在月底回來，也不會影響我們今天為您提供的指導。

Okay. That's all I had. I appreciate the color.

好的。這就是我所擁有的一切。我很欣賞它的顏色。

Your next question comes from David Arcaro of Morgan Stanley.

你的下一個問題來自摩根士丹利的大衛·阿卡羅。

On the Smart Home business, I was wondering if you could speak to what the free cash flow before growth was for the quarter there? Or any color on the free cash flow conversion you're seeing from EBITDA? Wondering how you're trending versus the full year $140 million pro forma target there?

關於智能家居業務，我想知道您能否談談該季度增長前的自由現金流是多少？或者您從 EBITDA 中看到的自由現金流轉換有什麼顏色嗎？想知道與全年 1.4 億美元預計目標相比，您的趨勢如何？

Sure. Bruce?

當然。布魯斯？

Yes, David.

是的，大衛。

So as you know, we don't report free cash flow before growth for any individual segment of the company. But based on what we are seeing, given the outperformance on the EBITDA side, we would expect to achieve the free cash flow before growth guidance that we had provided in our first quarter earnings call.

如您所知，我們不會報告公司任何單個部門增長前的自由現金流。但根據我們所看到的情況，鑑於 EBITDA 方面的優異表現，我們預計將在第一季度財報電話會議中提供的增長指引之前實現自由現金流。

Okay. Great.

好的。偉大的。

And then on the retail side of the -- Retail Energy side of the business, wondering if you could give an update on how customer retention and overall customer additions were trending in the quarter? And curious if you've seen any new entrants start to pop up, particularly in ERCOT? And any kind of change in the competitive landscape there recently?

然後，在零售能源業務的零售方面，想知道您是否可以提供有關本季度客戶保留和總體客戶增加趨勢的最新信息？好奇您是否看到任何新進入者開始出現，特別是在 ERCOT 中？最近那裡的競爭格局有什麼變化嗎？

Sure. I'll pass it over to Elizabeth, but I will say that our KPIs on our Retail Energy business are pretty much in line with our expectation, including customer growth.

當然。我會將其轉交給伊麗莎白，但我要說的是，我們零售能源業務的 KPI 與我們的預期非常一致，包括客戶增長。

But Elizabeth, can you provide more details?

但是伊麗莎白，你能提供更多細節嗎？

Sure. Thanks, David.

當然。謝謝，大衛。

We actually saw really strong customer retention rates consistent with last year's performance, consistent with what we expected in the budget. And for customer acquisition, we have a little bit of overperformance for the quarter, and we're really building that momentum to achieve that low single-digit customer growth between year-end 2022 and 2023.

實際上，我們看到了非常高的客戶保留率，與去年的表現一致，也與我們在預算中的預期一致。在客戶獲取方面，我們本季度的表現有點超前，我們確實正在建立這種勢頭，以在 2022 年底至 2023 年之間實現低個位數的客戶增長。

As far as competitive landscape, we see a normal, healthy, competitive market in Texas. It's pretty consistent that every year, we'll see a new player add billboards in the market or start doing something different, but there isn't anything materially different. We do see competitors like Shell and others that are larger competitors, which we appreciate because overall, that strengthens the market. But our performance is strong, and our leading digital experience and leading customer acquisition and retention help us win in the marketplace.

就競爭格局而言，我們看到德克薩斯州是一個正常、健康、競爭的市場。每年，我們都會看到新的玩家在市場上添加廣告牌或開始做一些不同的事情，但沒有任何實質性的不同。我們確實看到像殼牌和其他更大的競爭對手，我們對此表示讚賞，因為總體而言，這增強了市場。但我們的業績強勁，我們領先的數字化經驗以及領先的客戶獲取和保留幫助我們在市場上獲勝。

Our final question comes from Ryan Levine of Citi.

我們的最後一個問題來自花旗銀行的 Ryan Levine。

What drove the monthly recurring net service cost per subscriber reduction by 22%? And was that largely in line with what you were anticipating? Or is there any outsized movements this quarter?

是什麼促使每個訂戶每月經常性淨服務成本降低 22%？這很大程度上符合您的預期嗎？或者說這個季度有什麼大的變動嗎？

Yes, Ryan.

是的，瑞安。

So the primary drivers of that reduction, about 50% of that really is a function of fewer truck rolls and reduced supply chain constraints. We probably realized about 25% fewer truck rolls than we had in the past. The other 50% or the other 50% of the favorability really results from the ending of our payments to Alarm.com, which had started towards the -- towards the second half of last year.

因此，這一減少的主要驅動因素，其中約 50% 確實是上門服務減少和供應鏈限制減少的結果。我們可能發現上門服務量比過去減少了約 25%。另外 50% 或另外 50% 的好感度實際上是由於我們終止向 Alarm.com 付款而產生的，該付款是在去年下半年開始的。

Is Q2 '23 number more likely to continue on a go-forward basis? Or are there any trends that we should look for as we look into forecast factors?

23 年第二季度的數字是否更有可能繼續下去？或者在研究預測因素時我們應該尋找哪些趨勢？

Yes. So Rasesh, why don't you take that one?

是的。那麼拉塞什，你為什麼不拿走那個呢？

Yes, you bet.

是的，你敢打賭。

We feel very good about where net service cost per subscriber is and we would expect the current rate at which we are to continue. The favorability we've seen is durable, and it's a perfect thing when you see customers buying more products and you see higher penetration of your service while simultaneously, you see the cost to serve going down, and that's exactly what's driving the margin expansion. And so we feel really good about the trends, and we think that is sustainable.

我們對每個訂戶的淨服務成本感到非常滿意，並且預計我們將繼續保持目前的價格。我們看到的好感度是持久的，當你看到客戶購買更多產品並且你看到你的服務滲透率更高，同時你看到服務成本下降時，這是一件完美的事情，而這正是推動利潤率擴張的原因。因此，我們對這一趨勢感到非常滿意，並且我們認為這是可持續的。

So if I'm hearing you correctly, you continue to see fewer truck rolls and decreasing number of truck rolls on a go-forward basis as a driver? Or am I misinterpreting that?

那麼，如果我沒聽錯的話，作為一名司機，您會繼續看到上門服務減少，並且上門服務數量不斷減少？或者我誤解了這一點？

That's right.

這是正確的。

So you can see, if we think -- when you look at this on a per customer basis, and we would expect to see this lower rate that we have achieved for both contact rate calls as well as truck rolls to continue. We've recently started a virtual technician pilot, which really allows us to serve the customers' needs without ever rolling a truck, and we're seeing very promising results from that. And so this is sort of a new benchmark for the business.

所以你可以看到，如果我們認為——當你以每個客戶為基礎來看待這個問題時，我們預計會看到我們在聯繫率呼叫和上門服務方面所取得的較低比率繼續下去。我們最近啟動了虛擬技術員試點，這確實使我們能夠滿足客戶的需求，而無需滾動卡車，我們從中看到了非常有希望的結果。因此，這可以說是該業務的新基準。

I would now like to turn the call back to Mauricio Gutierrez, President and CEO, for closing remarks.

現在我想將電話轉回給總裁兼首席執行官毛里西奧·古鐵雷斯 (Mauricio Gutierrez)，讓其致閉幕詞。

Thank you, [Jana]. And thank you, everyone, for your interest and your time today, and I look forward to speaking with all of you in the days and weeks to come. Thank you.

謝謝你，[賈娜]。感謝大家今天的關注和抽出時間，我期待著在未來的幾天和幾週內與大家交談。謝謝。

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

女士們、先生們，感謝你們參加今天的會議。程序到此結束。您現在可以斷開連接。