NRG Energy, Inc. Third Quarter 2021 Earnings Presentation

NRG Energy Inc.

Third Quarter 2021 Earnings Presentation

November 4, 2021

Safe Harbor

Forward-Looking Statements

In addition to historical information, the information presented 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, the potential impact of COVID-19 or any other pandemic on the Company's operations, financial position, risk exposure and liquidity, 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, changes in government or market regulations, the condition of capital markets generally, our ability to access capital markets, cyberterrorism and inadequate cybersecurity, unanticipated outages at our generation facilities, adverse results in current and future litigation, failure to identify, execute or successfully implement acquisitions or asset sales, our ability to implement value enhancing improvements to plant operations and companywide processes, our ability to achieve our net debt targets, our ability to maintain investment grade credit metrics, 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, our ability to realize value through our market operations strategy, 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 a 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 November 4, 2021. 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.

2021 NRG Energy, Inc. All rights reserved.

2 | NRG 3Q21 Earnings

Agenda

Business Review

Mauricio Gutierrez

President & CEO

Financial Review

Alberto Fornaro

EVP & CFO

Growth & Closing Remarks

Mauricio Gutierrez

President & CEO

Q&A

Management

3 | NRG 3Q21 Earnings

Key Messages

Narrowing 2021 and

Initiating 2022 Financial Guidance

Consumer Platform Navigating Supply Chain

Constraints; Focused on Mitigations

Advancing Consumer Services Strategy;

Integration and Secondary Products

4 | NRG 3Q21 Earnings	Business Review | Financial Review | Growth & Closing Remarks | Appendix

Business Highlights and Results

2021 Adjusted EBITDA Results

(excludes one-time impacts from Uri)

2020 2021

$2,400-$2,500

+19%

$1,990

$1,674

+2%

$752 $767

Q3YTDNarrowed

2021 Guidance

(to bottom half of original guidance)

• Top decile safety performance
• 2H21 Impacted by unit outage and supply chain
• $144 MM Direct Energy synergies YTD; increasing 2021 target to $175 MM, from $135 MM
• Executing enhanced Winter preparedness program
• Advancing ERCOT reliability reforms
• Advancing Uri cost mitigation initiatives

Initiating 2022 Financial Guidance

	2022E Guidance
Adjusted EBITDA	$1,950 - $2,250
Free Cash Flow before Growth	$1,140 - $1,440

2022: A Staging Year for Growth

• Executing Investor Day Growth Roadmap
• No growth investments assumed in guidance
• Focused on mitigating supply chain constraints
• 2022 dividend increased by 8%

5 | NRG 3Q21 Earnings	Business Review | Financial Review | Growth & Closing Remarks | Appendix