Financial Data and Key Metrics Changes - The company reported adjusted earnings of $5.27 per share for 2025, an increase of $0.39 per share compared to 2024 adjusted earnings [3][15] - Weather positively impacted utility earnings by approximately $0.35 relative to last year, with a favorable impact of $0.10 in 2025 compared to a $0.25 unfavorable impact in 2024 [15][16] - The company expects long-term earnings per share growth of 7%-8% annually from 2026 to 2030, with acceleration to the upper half of the range starting in 2028 [9][22] Business Line Data and Key Metrics Changes - Adjusted earnings from utility operations increased by $0.63 in 2025 compared to 2024, driven by rate-based growth and weather impacts [15] - Earnings from the American Transmission Company increased by $0.02 due to continued capital investment [17] - The energy infrastructure segment saw a $0.10 increase in earnings from higher production tax credits associated with solar generation projects [17] Market Data and Key Metrics Changes - Retail electric deliveries in Wisconsin increased by 1.1% year-over-year, with projections for 2026 indicating a growth of 1.6% from 2025 levels [16] - The company is projecting a total of 3.9 gigawatts of electric demand growth in its five-year plan, driven by expansions from Microsoft and Vantage Data Centers [8][21] Company Strategy and Development Direction - The company is focused on executing a $37.5 billion capital plan over the next five years to meet growing energy needs [9][10] - Investments include $7.4 billion in natural gas generation and LNG storage, and $12.6 billion in renewable energy projects [10] - The company aims to maintain a reliable generation mix while expanding its renewable energy capacity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the capital plan and continue growth, citing strong economic growth in the region [4][22] - The company is addressing regulatory matters, including a proposed settlement in Illinois that would resolve several pending cases [12][20] - Management highlighted the importance of transparency and community engagement in attracting new customers, particularly in the data center sector [43] Other Important Information - The board increased the dividend by 6.7% to an annualized $3.81 per share, marking the 23rd consecutive year of dividend increases [20] - The company plans to issue between $900 million and $1.1 billion of common equity in 2026 [19] Q&A Session Summary Question: Can you elaborate on the 500 megawatts related to Microsoft and the additional capital expenditures? - Management indicated that Microsoft is expanding its data center operations, which is expected to add 500 MW of customer demand and $1 billion to the capital plan [24][25] Question: Are there other hyperscaler customers showing interest? - Management confirmed ongoing discussions with other potential customers and emphasized the importance of transparency in addressing community concerns [41][43] Question: What is the status of the very large customer tariff and general rate case? - Management stated that the tariff is undergoing a thorough vetting process and that the general rate case filing is on track for April [55][56] Question: How will the Microsoft ramp impact customer rates? - Management noted that as data center activity increases, it could lead to a reduction in the burden on other customers, but quantifying this impact will take time [74][90] Question: What are the plans for replacing the Point Beach PPA? - Management indicated that they are evaluating options for replacement generation and are confident in their ability to meet future energy needs [80][81]

Core Insights - Quantum Capital Group has entered into definitive agreements to sell approximately 90% of Cogentrix Energy's modern natural gas generation assets to Vistra Corp for about $4.7 billion, while retaining ownership of the Cedar Bayou 4 plant [1] Company Overview - Cogentrix Energy is a leading independent power producer with over four decades of experience, providing approximately 5.5 gigawatts of capacity across various regions in the U.S. [2][7] - The company operates modern natural gas generation facilities in PJM, ISO New England, and ERCOT, contributing to a reliable and cost-efficient electricity supply [2] Market Context - Quantum acquired Cogentrix with the belief that demand for clean, dispatchable generation had reached a critical point, supported by record U.S. electricity demand driven by data center expansion and industrial growth [3] - The domestic power sector is experiencing unprecedented investment levels, highlighting the value of dependable power assets like those owned by Cogentrix [3] Transaction Details - The transaction is expected to close in mid-to-late 2026, pending regulatory approvals from the Federal Energy Regulatory Commission, the Department of Justice, and certain state regulators [4] - Evercore is the exclusive financial advisor for Cogentrix, while Goldman Sachs is serving as the exclusive financial advisor for Vistra [5] Strategic Importance - Quantum's CEO emphasized the successful partnership with Cogentrix and the importance of dependable power generation, indicating confidence in Vistra's ability to create long-term value [4] - The partnership has been crucial in advancing Cogentrix and preparing it for its next phase under Vistra [4]

Core Viewpoint - Vistra Corp. has announced the acquisition of Cogentrix Energy, which includes 10 natural gas generation facilities with a total capacity of approximately 5,500 MW, for a net purchase price of around $4.0 billion [2][3]. Acquisition Details - The acquisition consists of three combined cycle gas turbine facilities and two combustion turbine facilities in PJM, four combined cycle gas turbine facilities in ISO New England, and one cogeneration facility in ERCOT [2]. - The net purchase price includes approximately $2.3 billion in cash, $0.9 billion in Vistra stock (5 million shares at $185 per share), and the assumption of $1.5 billion in outstanding debt, offset by $0.7 billion in expected tax benefits [3]. Financial Implications - The acquisition implies a multiple of approximately 7.25x the expected Adjusted EBITDA contribution for 2027 and about $730 per kW for the portfolio [3]. - It is expected to deliver mid-single digit Ongoing Operations Adjusted Free Cash Flow per share accretion in 2027 and high single-digit accretion on average from 2027 to 2029 [6]. Strategic Rationale - The acquisition enhances Vistra's generation capabilities and diversifies its geographic footprint, adding capacity in key regions such as PJM, ISO New England, and ERCOT [13]. - The Cogentrix portfolio is characterized by modern and efficient gas assets, with an average heat rate of approximately 7,800 Btu/kWh, which complements Vistra's existing fleet [13]. Conditions and Timing - The transaction is subject to regulatory approvals, including from the Federal Energy Regulatory Commission and the Department of Justice, and is expected to close in mid-to-late 2026 [9]. Advisors - Goldman Sachs & Co. LLC is serving as the exclusive financial advisor for Vistra, while Evercore is the exclusive financial advisor for Cogentrix Energy [10].

Core Insights - The Nuclear Production Tax Credit (PTC) provides a price floor for Constellation's nuclear fleet, ensuring revenue stability even when wholesale electricity prices fall, with a threshold set at approximately $44.75 per megawatt-hour for 2025 [1] - Constellation's revenue is significantly shielded from market volatility due to federal policies, making it an attractive investment compared to traditional commodity producers [2] - The company is evolving from a utility to a core infrastructure provider, capitalizing on the demand for reliable, clean power driven by the growth of artificial intelligence (AI) [3] Investment Strategy - Bank of America has recommended buying shares of Constellation Energy, indicating a shift in Wall Street's investment focus towards companies that provide essential electricity rather than traditional oil and gas [4] - Constellation's nuclear operations are positioned to meet the continuous power demands of AI data centers, with a capacity factor of 96.8%, making it a key player in the energy sector [5][6] - The restart of the Crane Clean Energy Center, backed by a $1 billion loan guarantee and a 20-year power purchase agreement with Microsoft, exemplifies Constellation's strategic execution and growth potential [7] Growth Potential - Constellation's strategy includes a front-of-the-meter approach, allowing it to connect power to the grid efficiently and avoid regulatory delays faced by competitors [8] - The company has identified an additional 900 megawatts of potential uprates across its nuclear sites, indicating a strong pipeline for future growth [8] - The acquisition of Calpine Corporation, adding 27 gigawatts of flexible natural gas generation, complements Constellation's nuclear fleet and enhances its ability to meet peak demand [9][10] Financial Health - Post-acquisition, Constellation is expected to maintain $14 billion in total liquidity while preserving its investment-grade credit rating, showcasing disciplined financial management [11] - The company's premium valuation, with a price-to-earnings ratio of around 41x, reflects a projected forward earnings growth rate of over 14%, supported by a targeted 10% annual dividend growth and an active share repurchase program [12] Market Position - Institutional investors are increasingly bullish on Constellation Energy, recognizing its role as a leading producer of clean, reliable power essential for the AI revolution [13]

Strategic Partnership with Apollo Funds - Capital Power and Apollo Funds are forming a US$3 billion investment partnership to acquire U S natural gas generation assets[1,6,7] - Apollo Funds may commit up to US$225 billion in equity and Capital Power up to US$750 million[8] - Capital Power will operate acquired assets and receive management and performance fees[8] - The partnership aims for a 50% cumulative increase in U S capacity or approximately 35 GW[7] Financial Targets and Guidance - The company targets a 13-15% annual Total Shareholder Return (TSR)[7] - The company targets an 8-10% annual AFFO per-share growth[7] - The company aims to maintain a 2-4% annual dividend growth target[7] - 2026 Adjusted EBITDA is projected to be between $1565 million and $1765 million[18] - 2026 AFFO is projected to be between $890 million and $1010 million[18] - 2026 Sustaining Capital is projected to be between $290 million and $330 million[18] Powering AI in Alberta - Capital Power has a binding MOU with a data center developer for a 250 MW Electricity Supply Agreement (ESA) in Alberta[7,9] - The ESA has a term of 10+ years and is expected to start in 2028[9]

Financial Data and Key Metrics Changes - NRG delivered the strongest first quarter adjusted EBITDA in company history, surpassing last year's record by 30% [9] - Adjusted EPS for the first quarter was $2.68, an 84% increase compared to the first quarter of last year [12][28] - First quarter adjusted net income was $531 million and free cash flow before growth was $293 million [27] Business Line Data and Key Metrics Changes - Each segment executed exceptionally in the first quarter, producing strong financial results over the prior year [28] - The acquisition of LS Power portfolio is expected to add $1.6 billion of incremental adjusted EBITDA [25] Market Data and Key Metrics Changes - The acquisition includes 13 gigawatts of natural gas capacity and a six gigawatt commercial and industrial virtual power plant platform [14] - The transaction positions NRG to hold the third largest natural gas generation portfolio in the East and Texas [22] Company Strategy and Development Direction - The acquisition reshapes NRG's competitive position, improving customer service and expanding earnings potential [10] - NRG is committed to a balanced capital allocation approach, targeting $1 billion in annual share repurchases while maintaining a strong balance sheet [24][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the acquisition's ability to capture value as markets tighten and customer demand increases [22][47] - The long-term adjusted EPS growth rate is raised to greater than 14%, reflecting contributions from the acquisition and Rockland portfolio [39][46] Other Important Information - NRG completed $445 million in share repurchases through April, with $855 million remaining to be completed through the end of 2025 [14] - The acquisition is expected to close in the first quarter of 2026, pending regulatory approvals [34] Q&A Session Summary Question: Clarification on EBITDA assumptions and Sea Power contribution - Management chose to use previous pricing assumptions for simplicity, indicating that current market prices would yield significantly higher numbers [54] - Sea Power is expected to enhance large load and data center strategies, but no specific synergies were included in the initial EBITDA projections [57] Question: Strategic outlook on Eastern markets - Management noted that they have always liked the PJM market but were not positioned as a strong generation player until now, citing tightening capacity markets as a positive development [71] Question: Deleveraging path and credit metrics - After year one of closing, leverage is expected to be around 3.5 times, decreasing to three times over the following two years [80] Question: Home VPP opportunity tracking - The home VPP opportunity is tracking well, with expectations to exit the year with 150 megawatts of residential demand response capacity [98]

Financial Data and Key Metrics Changes - NRG delivered the strongest first quarter adjusted EBITDA in company history, surpassing last year's record by 30% [9] - Adjusted EPS for the first quarter was $2.68, an 84% increase compared to the first quarter of last year [12][28] - First quarter adjusted net income was $531 million and free cash flow before growth was $293 million [27] Business Line Data and Key Metrics Changes - Each segment executed exceptionally in the first quarter, producing strong financial results over the prior year [28] - The acquisition of LS Power portfolio is expected to add $1.6 billion of incremental adjusted EBITDA [25] Market Data and Key Metrics Changes - The acquisition expands NRG's generation base and positions it to capture meaningful upside as power markets tighten [10][22] - NRG expects to generate enough output from its own plants to serve its residential retail load in Texas [20] Company Strategy and Development Direction - The acquisition of LS Power portfolio reshapes NRG's competitive position, doubling its generation capacity to 25 gigawatts [15] - NRG is committed to a balanced capital allocation approach, targeting $1 billion in annual share repurchases while maintaining a strong balance sheet [24][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the acquisition's ability to enhance NRG's earnings power and improve its risk profile [47] - The long-term adjusted EPS growth rate is raised to 14%, reflecting contributions from the acquisition and the Rockland portfolio [11][39] Other Important Information - NRG completed $445 million in share repurchases through April, leaving $855 million remaining to be completed through the end of 2025 [14] - The acquisition is highly strategic, being acquired at a significant discount to new build costs [14] Q&A Session Summary Question: Clarification on EBITDA assumptions and Sea Power's contribution - Management chose to use previous pricing assumptions for simplicity, indicating that current market prices would yield significantly higher numbers [52][53] - Sea Power is expected to be a powerful tool, with synergies not included in the initial EBITDA projections [56] Question: Strategic outlook on retail and potential for further acquisitions - The acquisition provides optionality across customer bases, enabling customized long-term solutions [57] Question: Insights on Eastern markets and capacity prices - Management expressed confidence in the PJM market, noting it has the most asymmetric gearing to the upside [69] Question: Path to deleveraging and credit metrics - After year one post-closing, NRG expects to be around 3.5 times leverage, decreasing to three times over the following two years [78] Question: Home VPP opportunity tracking and margin potential - The home VPP opportunity is tracking well, with significant consumer uptake and additional recurring revenue from existing customers [97]

Financial Data and Key Metrics Changes - NRG delivered the strongest first quarter adjusted EBITDA in company history, surpassing last year's record by 30% [8] - Adjusted EPS for the first quarter was $2.68, an 84% increase compared to the first quarter of last year [10][25] - Adjusted net income was $531 million and free cash flow before growth was $293 million, reflecting a significant increase from the previous year [25][26] Business Line Data and Key Metrics Changes - Each segment executed exceptionally in the first quarter, producing strong financial results over the prior year, driven by expanded margins and favorable weather [25][26] - The acquisition of the LS Power portfolio is expected to significantly expand earnings potential and enhance virtual power plant operations [8][14] Market Data and Key Metrics Changes - The acquisition adds approximately 11 gigawatts of natural gas-fired capacity in the East, with 75% in PJM, enhancing NRG's competitive position in key markets [16][20] - The company expects to generate enough output from its own plants to serve its residential retail load in Texas and produce more than twice the energy required for retail customers in PJM [18] Company Strategy and Development Direction - The acquisition reshapes NRG's competitive position, doubling its generation capacity and enhancing its ability to serve customers [8][14] - NRG is committed to a balanced capital allocation approach, targeting $1 billion in annual share repurchases while maintaining a strong balance sheet [22][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the acquisition's ability to capture value as markets tighten and customer demand for customized supply solutions increases [21][43] - The company anticipates a compound annual growth rate of 14% in adjusted EPS through 2029, reflecting contributions from the acquisition and existing growth plans [9][42] Other Important Information - The acquisition is valued at approximately $12 billion, with LS Power receiving $2.8 billion in equity, which will make them a significant shareholder in NRG [13][14] - NRG plans to reduce debt by $3.7 billion over the next 24 to 36 months post-acquisition [31][40] Q&A Session Summary Question: Clarification on EBITDA assumptions and Sea Power's contribution - Management chose to use previous pricing assumptions for simplicity, indicating that current market prices would yield significantly higher numbers [50] - Sea Power is expected to be a powerful tool, with synergies not factored into the initial EBITDA projections [51][53] Question: Strategic growth opportunities in retail - The acquisition provides optionality across customer bases, enabling customized long-term solutions [54] Question: Insights on Eastern market positioning - Management expressed confidence in the PJM market, citing tightening capacity markets and the potential for significant upside [66][67] Question: Path to deleveraging post-acquisition - The company expects to be around 3.5 times leverage after year one, gradually reducing to three times over the following two years [75] Question: Home VPP opportunity tracking - The home VPP initiative is tracking well, with strong consumer reception and significant growth in demand response capacity expected [95]

NRG Energy, Inc. First Quarter 2025 Earnings and Acquisition of a Premier Power Portfolio May 12, 2025 1 | NRG 1Q25 Earnings 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 ...

Financial Data and Key Metrics Changes - The company reported first quarter GAAP earnings of $0.56 per share, an increase from $0.42 per share in Q1 2024 [21] - Adjusted for special items, first quarter earnings from ongoing operations were $0.60 per share, an 11% increase from $0.54 per share a year ago [7][21] - The company remains confident in achieving its 2025 ongoing earnings forecast of $1.75 to $1.87 per share, with a midpoint of $1.81 per share [7] Business Line Data and Key Metrics Changes - Kentucky segment results increased by $0.05 per share compared to Q1 2024, driven by higher sales volumes due to mild weather [23] - Pennsylvania Regulated segment results increased by $0.03 per share, also due to higher sales volumes and increased transmission revenue from capital investments [23] - Rhode Island segment results decreased by $0.01 per share, primarily due to lower transmission revenues and higher operating costs [24] Market Data and Key Metrics Changes - In Pennsylvania, nearly 11 gigawatts of data center projects are in advanced planning stages, up from nearly 9 gigawatts [14] - The potential capital investment related to these data centers ranges from $700 million to $850 million, with $400 million already in the plan [15] - In Kentucky, the company is managing nearly 6 gigawatts of active data center requests, with recent legislative changes expected to attract more data centers [16] Company Strategy and Development Direction - The company is focused on its "Utility of the Future" strategy, which includes significant infrastructure improvements and capital investments [8] - Plans include over $4 billion in infrastructure improvements in 2025 to enhance grid reliability and resiliency [7] - The company aims for average annual rate base growth of 9.8% from 2025 to 2028, with a target of $20 billion in capital investment needs [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and trade tariffs, noting that 70% to 80% of capital projects are labor-based and most materials are sourced domestically [19] - The company is well-positioned to manage supply chain disruptions and is optimistic about achieving its long-term business plan [20] - Management highlighted ongoing economic development in Kentucky and the importance of new generation resources to support this growth [11] Other Important Information - The company filed a CPCN request with the Kentucky Public Service Commission for new generation needs and received regulatory approval for cost recovery related to the retirement of Mill Creek Unit 1 [9][10] - In Pennsylvania, the company secured approval to increase PPL Electric Utilities' DISC revenue cap to 7.5% [12] Q&A Session Summary Question: Advantages of resource adequacy legislation versus IPPs - Management discussed the limitations of the current capacity market and the benefits of a regulated utility model for stability and predictability in power pricing [31] Question: Consideration of block equity or ATM sufficiency - Management confirmed that the ATM program is the primary tool for equity needs, but they will remain opportunistic in assessing all options [35][36] Question: Impact of tariffs on battery storage projects - Management is actively working with vendors to minimize potential tariff impacts on battery projects and sees a need for these projects due to increasing demand [42] Question: Concerns regarding coal executive order and generation planning - Management does not expect immediate impacts from the executive order on generation planning but will analyze demand and retirement schedules [50] Question: Status of data center announcements in Pennsylvania - Management indicated that they are making progress on projects but do not control the timing of data center announcements [58] Question: Flexibility in large load tariff structures - Management expressed that they are already achieving objectives with existing ESA agreements and would want to maintain flexibility if a model tariff is introduced [62]