UTRECHT, The Netherlands and CAMBRIDGE, Mass., Dec. 02, 2024 (GLOBE NEWSWIRE) -- Merus N.V. (Nasdaq: MRUS) (Merus, the Company, we, or our), a clinical-stage oncology company developing innovative, full-length multispecific antibodies (Biclonics® and Triclonics®) and Partner Therapeutics, Inc. (PTx), a private, fully-integrated biotechnology company with a focus in hematology and oncology, today announced they have entered into an agreement in which Merus has exclusively licensed to PTx the right to commerc ...

Key TakeawaysNRG Energy was the S&P 500's best-performing component Tuesday.Jefferies analysts upgraded their rating for the stock to "buy" and raised their price target, saying “investors are sleeping” on the energy company.NRG Energy and other utilities companies have seen their shares rise this year on expectations they could benefit from growing energy demand for data centers to support AI. NRG Energy (NRG) was the S&P 500’s best-performing constituent Tuesday after Jefferies analysts upgraded the stock ...

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Summary of NRG Energy's Performance Core Insights - NRG Energy's topline has experienced a decline in the high single digits, primarily attributed to weak prices in the Texas region. The expectation for topline growth is projected to be in the low single digits moving forward [1]. Financial Performance - The decline in topline is significant, indicating challenges in the market environment, particularly in Texas [1]. Market Outlook - Future growth is anticipated to be modest, with expectations set at low single-digit growth rates, reflecting a cautious outlook for the company's performance in the near term [1].

Company Overview - NRG Energy is a significant utility and retail energy provider with a market capitalization of $20 billion, operating primarily in Texas and other deregulated markets across the U.S. [1] - The company integrates energy generation with retail services and has expanded into residential technology through its acquisition of Vivint Smart Home. [1] Market Insights - There is a growing demand for energy services, particularly in Texas, which is a key market for NRG Energy. [1] - Joseph Jones, a professor with over fifteen years of market study experience, emphasizes the importance of portfolio construction from a dividend growth investor's perspective, which may provide insights into investment strategies related to NRG. [1]

[PART I — FINANCIAL INFORMATION](index=8&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements and Notes](index=8&type=section&id=ITEM%201%20%E2%80%94%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20AND%20NOTES) NRG reported a Q3 2024 net loss of **$767 million**, with total assets decreasing to **$23.7 billion**, and detailed notes on key financial activities [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) NRG reported a Q3 2024 net loss of **$767 million**, driven by an **$812 million** operating loss from mark-to-market hedging Condensed Consolidated Statements of Operations (Unaudited) | (In millions, except for per share amounts) | Three months ended Sep 30, 2024 | Three months ended Sep 30, 2023 | Nine months ended Sep 30, 2024 | Nine months ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$7,223** | **$7,946** | **$21,311** | **$22,016** | | Operating (Loss)/Income | $(812) | $561 | $1,470 | $(453) | | (Loss)/Income Before Income Taxes | $(1,014) | $408 | $733 | $(866) | | **Net (Loss)/Income** | **$(767)** | **$343** | **$482** | **$(684)** | | Net (Loss)/Income Available for Common Stockholders | $(784) | $326 | $431 | $(722) | | **(Loss)/Income per Weighted Average Common Share — Basic** | **$(3.79)** | **$1.42** | **$2.08** | **$(3.14)** | | **(Loss)/Income per Weighted Average Common Share — Diluted** | **$(3.79)** | **$1.41** | **$2.02** | **$(3.14)** | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) NRG's total assets decreased to **$23.7 billion** from **$26.0 billion**, driven by reduced derivative assets and liabilities Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In millions) | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | **$8,611** | **$9,727** | | Property, plant and equipment, net | $1,818 | $1,763 | | Goodwill | $5,018 | $5,079 | | **Total Assets** | **$23,724** | **$26,038** | | **Total current liabilities** | **$7,348** | **$9,500** | | Long-term debt and finance leases | $10,422 | $10,133 | | **Total Liabilities** | **$21,204** | **$23,132** | | **Total Stockholders' Equity** | **$2,520** | **$2,906** | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations significantly improved to **$1.35 billion**, reversing a prior-year use, driven by derivative changes Cash Flow Summary (Unaudited) | (In millions) | Nine months ended Sep 30, 2024 | Nine months ended Sep 30, 2023 | | :--- | :--- | :--- | | **Cash provided/(used) by operating activities** | **$1,354** | **$(462)** | | Cash provided/(used) by investing activities | $163 | $(2,631) | | Cash (used)/provided by financing activities | $(1,041) | $1,590 | | **Net Increase/(Decrease) in Cash** | **$477** | **$(1,503)** | [Notes to Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail NRG's business segments, Airtron sale, debt management, capital returns, derivative positions, and legal contingencies - NRG's business is segmented into Texas, East, West/Services/Other, Vivint Smart Home, and Corporate activities[28](index=28&type=chunk) - On September 16, 2024, the Company sold its Airtron business unit for net proceeds of **$484 million**, recording a gain of **$208 million**[55](index=55&type=chunk) - In Q2 2024, NRG entered into Capped Call transactions to lock in a **$257 million** conversion premium on its remaining **$232 million** of Convertible Senior Notes[102](index=102&type=chunk)[118](index=118&type=chunk) - The company is involved in several material legal proceedings, including a competitor lawsuit against Vivint Smart Home resulting in a **$190 million** verdict (under appeal) and a patent infringement verdict of **$45 million** against Vivint (under appeal)[138](index=138&type=chunk)[140](index=140&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=ITEM%202%20%E2%80%94%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses NRG's strategy, Q3 2024 operating loss of **$812 million** from hedging, Airtron sale, debt refinancing, and strong liquidity [Executive Summary](index=49&type=section&id=Executive%20Summary) NRG's strategy integrates energy and smart home services, navigating regulatory changes, and highlights the Airtron sale and demand surge - NRG's strategy is to be a leader in the convergence of energy and smart automation in home and business, leveraging brands like Reliant, Direct Energy, and Vivint[155](index=155&type=chunk) - The company sold its Airtron business unit on September 16, 2024, for net proceeds of **$484 million**, resulting in a **$208 million** gain[175](index=175&type=chunk) - In October 2024, the Board authorized an additional **$1.0 billion** for share repurchases, bringing the total authorization to **$3.7 billion**, with **$2.0 billion** remaining as of October 31, 2024[113](index=113&type=chunk)[176](index=176&type=chunk) - The electric industry is expected to see a surge in demand, with forecasts showing a potential for **500 TWh** of incremental load across the U.S. through 2030, driven by manufacturing, industrial, and data center growth[182](index=182&type=chunk) [Consolidated Results of Operations](index=57&type=section&id=Consolidated%20Results%20of%20Operations) NRG reported a Q3 2024 operating loss of **$812 million**, primarily due to a **$1.66 billion** unfavorable change in mark-to-market hedging activities Consolidated Results of Operations Summary | (In millions) | Three months ended Sep 30, 2024 | Three months ended Sep 30, 2023 | Nine months ended Sep 30, 2024 | Nine months ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $7,223 | $7,946 | $21,311 | $22,016 | | Cost of operations | $7,239 | $6,406 | $17,229 | $20,137 | | **Operating (Loss)/Income** | **$(812)** | **$561** | **$1,470** | **$(453)** | | **Net (Loss)/Income** | **$(767)** | **$343** | **$482** | **$(684)** | - The Q3 2024 operating loss was primarily driven by a **$1.64 billion** loss from mark-to-market on economic hedges in operating costs, compared to a **$17 million** gain in the prior year period[207](index=207&type=chunk)[208](index=208&type=chunk) - Economic gross margin for Q3 2024 was **$2.15 billion**, slightly higher than the **$2.04 billion** in Q3 2023[194](index=194&type=chunk)[197](index=197&type=chunk) - For the nine months ended Sep 30, 2024, the **$1.92 billion** improvement in operating income was primarily due to a **$1.71 billion** favorable change in mark-to-market for economic hedging activities within cost of operations[186](index=186&type=chunk) [Liquidity and Capital Resources](index=76&type=section&id=Liquidity%20and%20Capital%20Resources) NRG's total liquidity increased to **$6.4 billion**, with significant Q4 2024 debt refinancing and capital allocation activities Liquidity Position | (In millions) | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,104 | $541 | | Total availability under Credit Facilities | $5,330 | $4,278 | | **Total liquidity** | **$6,444** | **$4,843** | - In Q4 2024, the company undertook major debt refinancing, issuing approximately **$3.1 billion** in new notes and loans to repay existing debt, including Vivint's Senior Secured Term Loan and Notes[179](index=179&type=chunk)[264](index=264&type=chunk) - During the nine months ended September 30, 2024, the company repurchased **$343 million** principal of its Convertible Senior Notes for **$603 million** cash, resulting in a **$260 million** loss on debt extinguishment[99](index=99&type=chunk)[255](index=255&type=chunk)[269](index=269&type=chunk) - Cash from operations for the first nine months of 2024 was **$1.35 billion**, a **$1.82 billion** positive swing from a use of **$462 million** in the prior year, mainly due to changes in cash collateral[280](index=280&type=chunk)[282](index=282&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=84&type=section&id=ITEM%203%20%E2%80%94%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) NRG manages commodity price, credit, and interest rate risks, with average Q3 2024 VaR at **$58 million** and **$1.2 billion** net credit exposure Value at Risk (VaR) for Commodity Portfolio | (In millions) | Three months ended Sep 30, 2024 | Three months ended Sep 30, 2023 | | :--- | :--- | :--- | | VaR as of September 30, | $67 | $63 | | Average | $58 | $64 | | Maximum | $67 | $75 | | Minimum | $50 | $45 | - As of September 30, 2024, net counterparty credit exposure was **$1.2 billion**, with **75%** concentrated in utilities, energy merchants, and marketers, and **59%** with investment-grade counterparties[301](index=301&type=chunk)[303](index=303&type=chunk) - A hypothetical **$0.50 per MMBtu** decrease in natural gas prices would cause an increase in margin collateral posted of approximately **$1.3 billion**[308](index=308&type=chunk) - A hypothetical **1%** decrease in market interest rates would have increased the fair value of the Company's long-term debt by **$464 million** as of September 30, 2024[309](index=309&type=chunk) [Controls and Procedures](index=86&type=section&id=ITEM%204%20%E2%80%94%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were effective as of September 30, 2024, with no material changes to internal control over financial reporting - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[311](index=311&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended September 30, 2024, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[311](index=311&type=chunk) [PART II — OTHER INFORMATION](index=87&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=87&type=section&id=ITEM%201%20%E2%80%94%20LEGAL%20PROCEEDINGS) The company refers to Note 14 for detailed discussion of material legal proceedings, including environmental, consumer, and patent lawsuits - For a detailed discussion of material legal proceedings, the report refers to Note 14, Commitments and Contingencies[313](index=313&type=chunk) [Risk Factors](index=87&type=section&id=ITEM%201A%20%E2%80%94%20RISK%20FACTORS) No material changes to the Risk Factors from the Company's 2023 Form 10-K were reported for the nine months ended September 30, 2024 - No material changes to the Risk Factors from the Company's 2023 Form 10-K were reported for the nine months ended September 30, 2024[314](index=314&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=ITEM%202%20%E2%80%94%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) NRG repurchased **2,906,382** shares of common stock at an average price of **$78.70** per share during Q3 2024 under its repurchase program Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Approx. Dollar Value of Shares Remaining Under Plans (in millions) | | :--- | :--- | :--- | :--- | :--- | | July 2024 | 1,128,299 | $76.28 | 1,127,232 | $1,374 | | August 2024 | 933,540 | $78.26 | 932,019 | $1,301 | | September 2024 | 844,543 | $82.41 | 844,543 | $1,231 | | **Total** | **2,906,382** | **$78.70** | **2,903,794** | | [Other Information](index=88&type=section&id=ITEM%205%20%E2%80%94%20OTHER%20INFORMATION) Two executive officers adopted Rule 10b5-1 trading plans in Q3 2024 for potential stock sales in early 2025 - Executive Vice President Robert Gaudette and Chief Financial Officer Woo-Sung Chung adopted Rule 10b5-1 trading plans in September 2024 for the potential sale of company stock in early 2025[319](index=319&type=chunk)

Financial Data and Key Metrics - The company raised its 2024 financial guidance by $175 million, marking the second consecutive year of surpassing original earnings targets [7] - For 2025, the company expects adjusted EPS of $7.25, adjusted EBITDA of $3.85 billion, and free cash flow before growth of $2.1 billion, reflecting a 14% increase in adjusted EPS from the raised 2024 guidance [10] - The company achieved $550 million in run rate synergies, investment-grade credit metrics, and 15% free cash flow before growth per share growth, exceeding initial projections [11] - The company increased its share repurchase authorization by an additional $1 billion [12] Business Segment Performance - The company's strong performance in 2024 was driven by effective supply risk management, margin growth across all business segments, and success in the smart home sector [9] - The consumer business is expected to drive $750 million in adjusted EBITDA organic growth through 2029, with 30% from home energy, 50% from smart home, and 20% from commercial and industrial energy [16] - The smart home segment saw an 18% increase in adjusted EBITDA, driven by mid-single-digit growth in subscriber count and a 6% expansion in net service margin [47] Market Performance and Opportunities - Texas remains the most attractive power market, with significant demand growth, including an 8-gigawatt queue of data center demand in Houston, a 700% increase from pre-summer levels [23] - The company has a portfolio of 21 development sites and two shovel-ready brownfield projects in Texas, offering potential for additional value creation [24] - The company's long-term outlook includes a 10% CAGR through 2029, with potential upside from Texas power price increases and other opportunities [15] Strategic Initiatives and Partnerships - The company announced a strategic partnership with Renew Home and Google Cloud to accelerate its Virtual Power Plant (VPP) efforts, aiming to develop a 1-gigawatt residential VPP in Texas [27] - The VPP initiative is expected to generate $110 million in annual recurring margin at scale, with $80 million from consumer value and $30 million from supply value [36] - The company introduced the Home Essentials bundle, which includes smart home devices at no cost to customers enrolled in a VPP plan, aiming to enhance customer engagement and retention [31] Management Commentary on Industry and Future Outlook - The company emphasized its strong operational performance and favorable market conditions, with a robust outlook for 2025 and beyond [12] - Management highlighted the potential for significant upside beyond the baseline growth expectations, particularly in Texas, where market tightening is expected due to rising demand [15] - The company is confident in achieving its long-term targets of at least 10% growth in adjusted EPS and free cash flow before growth per share, with numerous opportunities to exceed these goals [63] Q&A Session Highlights Question: Update on site development and hyperscaler deals - The company plans to provide an update on site development by the fourth quarter call, with significant interest in both PJM and Texas markets [68] - The company is exploring options for its two shovel-ready brownfield projects in Texas, which were not selected for the Texas Energy Fund, and is considering directing them to hyperscalers [69] Question: Variability in growth segments and cost to achieve - The company sees potential upside across all growth segments, with a $1.6 billion investment planned to achieve $750 million in annualized EBITDA growth over the next five years [71] Question: Virtual Power Plant (VPP) economics and competition - The VPP initiative is seen as a cost-effective way to hedge against price spikes and super peaks, with significant value in customer retention and supply-side benefits [81][82] - The company believes it is uniquely positioned to scale the VPP initiative due to its customer base, supply management expertise, and partnerships with Renew Home and Google [93] Question: Organic growth opportunities in retail energy - The company sees significant opportunities to expand share of wallet with existing customers, particularly in Texas, where it holds nearly 40% market share in residential energy [97] - Data center growth is also driving long-term contract opportunities in the commercial and industrial energy sector, with a flight to quality among large customers [98]

NRG Energy, Inc. (NRG) reported third-quarter 2024 earnings of $1.85 per share, which missed the Zacks Consensus Estimate of $2.05 by 9.8%. However, the bottom line increased 14.2% from the year-ago quarter’s figure of $1.62.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenues of NRG EnergyTotal revenues were $7.22 billion, which beat the Zacks Consensus Estimate of $2.98 billion by 142.1%. However, the top line declined 9.2% from the prior-year quarter’s level of $7.95 billion. ...

NRG Energy (NRG) came out with quarterly earnings of $1.85 per share, missing the Zacks Consensus Estimate of $2.05 per share. This compares to earnings of $1.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -9.76%. A quarter ago, it was expected that this power company would post earnings of $1.30 per share when it actually produced earnings of $1.48, delivering a surprise of 13.85%.Over the last four quarters, the company ...

NRG Energy, Inc. NRG will release earnings results for its third quarter, before the opening bell on Friday, Nov. 8.Analysts expect the Houston, Texas-based bank to report quarterly earnings at $2 per share, up from $1.41 per share in the year-ago period. NRG Energy projects to report revenue of $9.38 billion for the recent quarter, compared to $7.95 billion a year earlier, according to data from Benzinga Pro.NRG Energy announced it is partnering with Renew Home, a leading virtual power plant (VPP) company ...