NRG Energy Announces Plan to Repurchase Additional Common Stock As Part of 2015 Capital Allocation Plan
March 16 2015 - 7:00AM
Business Wire
NRG Energy, Inc. (NYSE:NRG) today announced the authorization to
repurchase $100 million of its common stock as part of its
ongoing 2015 Capital Allocation Program. This share buyback program
was approved by the Board of Directors on March 13, 2015. The
program is in addition to the $100 million buyback announced in
December 2014 and completed in February 2015 as well as
approximately $195 million expected to be returned to its
stockholders during 2015 through the common stock dividend. The
authorization is effective immediately.
“While we had planned to tie the unveiling of our 2015 capital
allocation plan to the receipt of proceeds from the next dropdown
to NRG Yield, we believe the illogical disconnect between the
Company’s recent share price performance and the Company’s current
operational performance and future prospects presents an
opportunity for us to invest in our success at a price level that
is beyond compelling,” said David Crane, NRG’s Chief Executive
Officer. “As we move forward from here, we will continue to take
steps to direct the Company’s considerable cash generation and
capital replenishment to its highest and best use, including
further return of capital to the Company’s equity and debt
stakeholders.”
The purchase of common stock will be made using cash on hand and
may be made from time to time as market conditions warrant and
subject to regulatory considerations. This action does not
foreclose the possibility of further or different capital
allocation actions in the future.
About NRG
NRG is leading a customer-driven change in the U.S. energy
industry by delivering cleaner and smarter energy choices, while
building on the strength of the nation’s largest and most diverse
competitive power portfolio. A Fortune 250 company, we create value
through reliable and efficient conventional generation while
driving innovation in solar and renewable power, electric vehicle
ecosystems, carbon capture technology and customer-centric energy
solutions. Our retail electricity providers serve almost 3 million
residential and commercial customers throughout the country. More
information is available at www.nrg.com. Connect with NRG Energy on
Facebook and follow us on Twitter @nrgenergy.
The information presented in this communication includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Exchange Act. These
statements involve expectations for the Company’s Capital
Allocation Program, including the common stock buyback program and
the Company’s ability to continue to pay dividends to its
stockholders. Although NRG believes that its expectations are
reasonable, it can give no assurance that these expectations will
prove to have been correct, and actual results may vary materially.
The Company's share buyback program and common stock dividends are
subject to available capital, market conditions, and compliance
with associated laws and regulations. NRG undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Factors that
could cause actual results to differ materially from those
contemplated above include the “Risk Factors” in Item 1A of our
Annual Report on Form 10-K for the year ended Dec. 31, 2014,
which are incorporated herein by reference, as well as market
conditions, securities regulations and capital available for
allocation.
NRG Energy, Inc.Media:Marijke Shugrue,
609-524-5262orInvestors:Matt Orendorff,
609-524-4526orLindsey Puchyr, 609-524-4527
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