NRG Energy : Fourth Quarter 2022 Earnings Presentation

NRG Energy Inc.

Fourth Quarter 2022 Earnings Presentation

February 16, 2023

Safe Harbor

Forward-Looking Statements

In addition to historical information, the information contained in this presentation 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 estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as "may," "should," "could," "objective," "projection," "forecast," "goal," "guidance," "outlook," "expect," "intend," "seek," "plan," "think," "anticipate," "estimate," "predict," "target," "potential" or "continue" or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about the Company's future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, hazards customary in the power industry, weather conditions and extreme weather events, competition in wholesale power and gas markets, the volatility of energy and fuel prices, failure of customers or counterparties to perform under contracts, changes in the wholesale power and gas markets, our ability to execute our market operations strategy, unanticipated outages at our generation facilities, changes in government or market regulations, the condition of capital markets generally, our ability to access capital markets, failure to identify, execute or successfully implement acquisitions or asset sales, our ability to achieve our net debt targets, our ability to achieve or maintain investment grade credit metrics, the potential impact of COVID-19 or any other pandemic on the Company's operations, financial position, risk exposure and liquidity, data privacy, cyberterrorism and inadequate cybersecurity, adverse results in current and future litigation, our ability to implement value enhancing improvements to plant operations and companywide processes, our ability to proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, the inability to maintain or create successful partnering relationships, our ability to operate our business efficiently, our ability to retain retail customers, the ability to successfully integrate businesses of acquired companies, including Direct Energy, our ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, and our ability to execute our Capital Allocation Plan. Achieving investment grade credit metrics is not an indication of or guarantee that the Company will receive investment grade credit ratings. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.

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 adjusted EBITDA and free cash flow guidance are estimates as of February 16, 2023. These estimates are based on assumptions the company believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, 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 presentation 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 Securities and Exchange Commission at www.sec.gov.

2023 NRG Energy, Inc. All rights reserved.

2 | NRG 4Q22 Earnings

Agenda

Business Review

Mauricio Gutierrez

President & CEO

Financial Review

Alberto Fornaro

EVP & CFO

Closing Remarks

Mauricio Gutierrez

President & CEO

Q&A

Management

3 | NRG 4Q22 Earnings

Key Messages

Lower 2022 Results; Reaffirming 2023 Guidance

Advancing Essential Consumer Services Strategy;

Vivint Acquisition On-Track

Strong Core + Vivint Enhances Path to

15-20% FCFbG per Share Growth through 2025

4 | NRG 4Q22 Earnings	Business Review | Financial Review | Closing Remarks | Appendix

2022 Business Highlights

2022 Scorecard

Financial and Operational Results

• Top decile safety performance
• Record customer retention

• Results impacted primarily by Parish Unit 8 plant outage

Direct Energy Integration

• $84 MM incremental ($259 MM cumulative) synergies
• Full plan - $300 MM 2023 run rate - on track

Perfect & Grow Integrated Platform

• Executed 'Test & Learn' - announced Vivint acquisition
• 2.4 GWs of renewable PPAs signed; ~45% online
• Portfolio optimization - PJM retirements, Astoria and Watson sales

Disciplined Capital Allocation

• Increased dividend 8%; mid-point of 7-9% annual target

• Partially executed $1 Bn share repurchase program; $355 MM remaining to be executed

• Maintained strong balance sheet

($ millions)

2022 Financial Results

Adjusted EBITDA

		~$200 MM
		Below Expectations
		$1,754
$433	$435
4Q21	4Q22	Full Year
		2022

Fourth Quarter Below Expectations

• ($115 MM) from limited optimization opportunity in
  ERCOT
• • Highlighted in 3Q earnings as lever to maintain guidance which did not fully materialize
• ($80 MM) from December Winter Storm
• • Capacity performance bonus risk-adjusted, pending clarity from PJM

Executed 2022 Strategic Priorities; Lower 2022 Results

5 | NRG 4Q22 Earnings	Business Review | Financial Review | Closing Remarks | Appendix