NRG Closes 4.8 GW Asset Sale and Announces $1 Billion Share Repurchase Program
December 06 2021 - 9:45AM
Business Wire
NRG Energy Inc. (NYSE: NRG) has closed the previously announced
sale of approximately 4,850 MWs of fossil generating assets from
its East and West regions to Generation Bridge, an affiliate of
ArcLight Capital Partners. At Closing, NRG received $620 million of
net proceeds, after purchase price adjustments pursuant to the
terms of the Purchase and Sale Agreement entered into on February
28, 2021. As previously disclosed, the transaction is leverage
neutral with $500 million of the net proceeds allocated to
deleveraging.
Following the closing of the asset sale and as part of NRG’s
Capital Allocation Program, the NRG Board of Directors has
authorized $1 billion for share repurchases, effective immediately.
The program is expected to begin in 2021 and will continue
throughout 2022.
“Closing this transaction further advances our strategic
priorities of decarbonizing our portfolio while aligning our
business with the evolving needs of our customers,” said Mauricio
Gutierrez, President and Chief Executive Officer, NRG. “We remain
focused on advancing the strategic priorities we outlined during
our June 2021 Investor Day, including executing on our free cash
flow per share growth roadmap and maintaining a strong balance
sheet to create significant value for our stakeholders.”
Under the share repurchase authorization, repurchases can be
made from time to time using a variety of methods, which may
include open market purchases, privately negotiated transactions or
otherwise, all in accordance with the rules of the Securities and
Exchange Commission and other applicable legal requirements. The
timing and amount of any shares of NRG’s common stock that are
repurchased under the share repurchase authorization will be
determined by NRG’s management based on market conditions and other
factors. NRG will only repurchase shares when management believes
it would not jeopardize the company’s ability to maintain
satisfactory credit ratings. The share repurchase authorization
does not obligate NRG to acquire any particular amount of common
stock, and may be modified, suspended or discontinued at any time
or from time to time at NRG’s discretion.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements are subject to certain risks, uncertainties and
assumptions and typically can be identified by the use of words
such as “expect,” “estimate,” “should,” “anticipate,” “forecast,”
“plan,” “guidance,” “outlook,” “believe” and similar terms.
Although NRG believes that the expectations are reasonable, it can
give no assurance that these expectations will prove to be correct,
and actual results may vary materially.
NRG undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. The
foregoing review of factors that could cause NRG’s actual results
to differ materially from those contemplated in the forward-looking
statements included in this news release should be considered in
connection with information regarding risks and uncertainties that
may affect NRG’s future results included in NRG’s filings with the
SEC at www.sec.gov.
About NRG
At NRG, we’re bringing the power of energy to people and
organizations by putting customers at the center of everything we
do. We generate electricity and provide energy solutions and
natural gas to millions of customers through our diverse portfolio
of retail brands. A Fortune 500 company, operating in the United
States and Canada, NRG delivers innovative solutions while
advocating for competitive energy markets and customer choice,
working toward a sustainable energy future. More information is
available at nrg.com. Connect with NRG on Facebook, LinkedIn, and
follow us on Twitter @nrgenergy.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211206005511/en/
Investors: Kevin L. Cole, CFA Investor Relations
609.524.4526 investor.relations@nrg.com
Media: Candice Adams Corporate Communications
609.524.5428 Candice.adams@nrg.com
NRG Energy (NYSE:NRG)
Historical Stock Chart
From Aug 2024 to Sep 2024
NRG Energy (NYSE:NRG)
Historical Stock Chart
From Sep 2023 to Sep 2024