NRG Completes Direct Energy Acquisition

NRG Energy Inc. has completed the previously reported acquisition of Direct Energy from Centrica plc effective today.

NRG said that the acquisition, "further cement[s] NRG’s status as the leading, customer-focused integrated energy and services provider."

"Direct Energy adds over three million customers across North America to NRG’s leading retail portfolio, growing the company’s reach and size," NRG said

"The acquisition of Direct Energy further perfects our integrated model by enhancing the way we serve customers with additional products and services," said Mauricio Gutierrez, NRG President and Chief Executive Officer.

For more details on NRG's strategy in acquiring Direct Energy, as well as financial terms, see our prior story here

Gutierrez said that the acquisition marks an important milestone in NRG's evolution beyond its power generation roots, as the company moves closer to the consumer.

Gutierrez said NRG will make renewable power more accessible than ever before, and also cited a broader portfolio of complementary services

"NRG now features a larger customer footprint, serving all 50 U.S. states and parts of Canada, with capabilities across residential and small & large business segments. The company’s expanded home service and retail natural gas capabilities provide additional opportunities to serve customers with valuable products and services," NRG said

As a result of closing this transaction, NRG’s updated 2021 guidance now reflects the combination of NRG and Direct Energy based on NRG’s previously disclosed guidance and its 2021 expectation for Direct Energy as first provided during its Business Update call on July 24, 2020.

NRG 2021 Updated Guidance:
                                 ($ IN MILLIONS)
   Adjusted EBITDA (Note 1):      $2,400-$2,600

   Free Cash Flow before Growth:  $1,440-$1,640

Note 1: Non-GAAP financial measure; see NRG news release here for GAAP Reconciliation to Net Income that excludes fair value adjustments related to derivatives, and other details. NRG said that the Company is unable to provide guidance for Net Income due to the impact of such fair value adjustments related to derivatives in a given year.