N R G E N E R G Y I N C . FOURTH QUARTER AND FULL YEAR 2025 EARNINGS PRESENTATION February 24, 2026 1 SAFE HARBOR Forward-Looking Statements A G E N D A 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, the imposition of tariffs and escalation ...

Group 1 - NRG Energy, Inc. finalized the purchase of several generation assets and CPower from LS Power, expanding its capacity with 18 natural gas-powered generation facilities totaling about 13 GW [1][3] - Following the acquisition, NRG revised its 2026 financial outlook to include adjusted net income of $1.685 billion to $2.115 billion and adjusted EPS of $7.90 to $9.90, while also reducing its earlier targets for adjusted EBITDA and free cash flow [3] - The financial projections account for approximately 90% of the acquired portfolio's full-year 2026 impact, considering the January 30 closure date [3] Group 2 - NRG Energy is a major integrated U.S. energy company that generates, sells, and delivers electricity and natural gas, offering diverse power sources including coal, gas, and renewables [4] - The company is expanding into smart home and energy solutions through acquisitions such as Vivint [4]

Core Viewpoint - NRG Energy, Inc. shares are experiencing a decline following the release of updated financial guidance for FY26, which includes adjusted EPS and net income projections that differ from market consensus [1][2]. Group 1: FY26 Guidance - The company has provided adjusted EPS guidance of $7.90–$9.90, compared to the consensus estimate of $9.72 [2]. - Adjusted net income is projected to be between $1.685 billion and $2.115 billion [2]. - The guidance reflects the anticipated completion of the LS Power asset portfolio acquisition on January 30, 2026, which will account for approximately 11 months of asset ownership [2]. Group 2: Adjusted EBITDA and Free Cash Flow - NRG has raised its outlook for adjusted EBITDA to a range of $5.325 billion to $5.825 billion, up from the previous estimate of $3.925 billion to $4.175 billion [3]. - The forecast for Free Cash Flow Before Growth Investments has also been increased to between $2.800 billion and $3.300 billion, compared to the earlier range of $1.975 billion to $2.225 billion [3]. Group 3: LS Power Acquisition - NRG Energy recently completed the acquisition of a generation asset portfolio and CPower from LS Power, which includes 18 natural gas-fired power plants with a total capacity of approximately 13 GW [4]. - The acquisition also incorporates CPower's commercial and industrial virtual power plant platform [4]. - NRG plans to report its fourth quarter 2025 results on February 24, 2026 [4].

Core Insights - NRG Energy has updated its 2026 financial guidance following the acquisition of a portfolio of assets from LS Power, which was completed on January 30, 2026. The updated guidance includes approximately 11 months of ownership of these assets in 2026 [1][4]. Financial Guidance - The updated guidance for 2026 includes: - Adjusted Net Income: $1,685 million - $2,115 million, with a midpoint of $1,900 million - Adjusted EPS: $7.90 - $9.90, with a midpoint of $8.90 - Adjusted EBITDA: $5,325 million - $5,825 million, with a midpoint of $5,575 million - Free Cash Flow before Growth (FCFbG): $2,800 million - $3,300 million, with a midpoint of $3,050 million - The guidance reflects approximately 90% of the acquired portfolio's estimated full-year 2026 contribution [1][2][3]. Fourth Quarter 2025 Earnings Call - NRG plans to report its Full Year and Fourth Quarter 2025 financial results on February 24, 2026, during a conference call and webcast at 9:00 a.m. EST [1][2]. Acquisition Details - NRG completed the acquisition of 18 natural-gas-fired generation facilities totaling approximately 13 GW of capacity and a commercial and industrial virtual power plant (C&I VPP) from LS Power. This acquisition is expected to enhance NRG's ability to deliver reliable and affordable energy solutions [3][4]. Dividend Announcement - NRG's Board of Directors declared a quarterly dividend of $0.475 per share, representing an 8% increase from the previous year, aligning with the company's annual dividend growth rate target of 7-9% per share. The dividend is payable on February 17, 2026, to stockholders of record as of February 2, 2026 [4].

Core Insights - NRG Energy has finalized the acquisition of a portfolio from LS Power, which includes 18 natural gas-fired generation facilities with a total capacity of approximately 13GW and CPower's commercial and industrial virtual power plant (VPP) platform [1][2] - The transaction is valued at nearly $12 billion, comprising $6.4 billion in cash, $2.8 billion in stock, $3.2 billion of net debt assumed, and around $400 million of net present value of tax benefits [2] Group 1: Transaction Details - The acquisition doubles NRG's total generation fleet to about 25GW and enhances its presence in key US electricity markets [2] - The newly acquired assets include quick-start facilities located in the northeast and Texas, along with VPP capabilities that improve NRG's demand response management for commercial and industrial clients [3] Group 2: Regulatory Approvals - NRG completed the acquisition after obtaining all necessary regulatory approvals, including anti-trust clearance from the US Department of Justice on January 23 and prior authorizations from the Federal Energy Regulatory Commission and the New York State Public Service Commission [3] Group 3: Strategic Implications - The expanded platform will support energy supply and flexible demand solutions for residential, commercial, and large-load customers, addressing the growing energy consumption [4] - NRG aims to enhance affordability and grid reliability through a diversified supply strategy and an expanded operational footprint, serving eight million customers daily [5]

Core Viewpoint - NRG Energy, Inc. has completed the acquisition of a portfolio of generation assets and CPower from LS Power, enhancing its ability to provide reliable and affordable energy solutions as demand continues to grow [1][2]. Group 1: Acquisition Details - The acquisition includes 18 natural-gas-fired generation facilities with a total capacity of approximately 13 GW, along with CPower's commercial and industrial virtual power plant (C&I VPP) platform [2]. - This transaction effectively doubles NRG's generation fleet, increasing its total capacity to approximately 25 GW, which will improve affordability and grid reliability across its core markets [2][3]. Group 2: Strategic Implications - Larry Coben, NRG's Chair & CEO, emphasized that the acquisition is a response to the increasing power demand supercycle, allowing NRG to offer a broader range of affordable and resilient solutions for various customer segments, including data centers and households [3]. - The expanded demand response and VPP capabilities will further enhance NRG's ability to serve residential, commercial, and large load customers with dependable power and innovative energy solutions [3]. Group 3: Company Overview - NRG is a leading provider of electricity, natural gas, and smart home solutions, serving eight million customers across North America with a diversified supply strategy and reliable operation of approximately 25 GW of power generation [4]. - The company aims to play a significant role in dependable and competitive energy markets, focusing on creating flexible and affordable solutions for both households and large businesses [4].

Core Viewpoint - NRG Energy, Inc. is positioned for growth following the successful acquisition of a portfolio from LS Power, which is expected to enhance its market position and financial performance [2][3]. Group 1: Acquisition Details - NRG has obtained all necessary regulatory approvals for its acquisition of 18 natural gas generation facilities and a commercial and industrial virtual power plant platform from LS Power [2][3]. - The U.S. Department of Justice granted antitrust clearance for this acquisition on January 23, 2026, following approvals from the Federal Energy Regulatory Commission and the New York State Public Service Commission [3]. Group 2: Market Performance - NRG's current stock price is $153.11, reflecting an increase of 2.12% or $3.18, with fluctuations between a low of $149.32 and a high of $153.89 on the same day [4]. - Over the past year, NRG's stock has experienced significant volatility, reaching a high of $180.54 and a low of $79.57 [4][6]. - The company's market capitalization is approximately $29.34 billion, with a trading volume of 409,137 shares [5]. Group 3: Analyst Outlook - Jefferies has set a price target of $181 for NRG, indicating a potential increase of about 18.3% from its current price [2][6]. - The positive price target and the recent acquisition could attract more investors, potentially increasing NRG's trading volume and market capitalization in the future [5].

Core Viewpoint - NRG Energy, Inc. has received all necessary regulatory approvals for its acquisition of 18 natural gas generation facilities and a commercial and industrial virtual power plant platform from LS Power, enhancing its operational capacity and service offerings. Regulatory Approvals - NRG received antitrust clearance from the U.S. Department of Justice on January 23, 2026, along with approvals from the Federal Energy Regulatory Commission and the New York State Public Service Commission, allowing the transaction to proceed [2]. Acquisition Details - The acquisition will add 13 GW of quick-start, natural gas-fired generation capacity across the Northeast and Texas, along with 6 GW of virtual power plant capability, thereby improving the scale, resilience, and reliability of NRG's portfolio [3].

Core Insights - Talen Energy plans to acquire three gas-fired power plants totaling 2,567 MW for $3.45 billion from Energy Capital Partners [1][2] Group 1: Acquisition Details - The power plants include a 480-MW combustion turbine facility in Mount Sterling, Ohio, a 1,218-MW combined cycle facility in Lawrenceburg, Indiana, and a 869-MW combined cycle facility in Waterford, Ohio [2] - Talen intends to finance the acquisition with $2.55 billion in cash funded by debt and $900 million in Talen stock [5] Group 2: Market Context - The acquisition occurs amid a trend of consolidation in the power sector, with other companies like NRG Energy and Constellation Energy also pursuing significant acquisitions [2] - The U.S. Department of Justice is reviewing these transactions due to market power concerns, with Constellation agreeing to divest more capacity than required by the Federal Energy Regulatory Commission [3] Group 3: Operational Impact - The Lawrenceburg and Waterford plants operated at approximately 87% capacity factors in 2024, while the Darby plant had a nearly 13% capacity factor, producing 15,715 GWh [5] - Talen's overall capacity will increase to about 13,110 MW, primarily within the PJM footprint, which includes plans to retire two power plants in Maryland totaling 1,975 MW [4] Group 4: Regulatory Considerations - The deal is expected to close in the early second half of the year, pending approvals from the Federal Energy Regulatory Commission and the Indiana Utility Regulatory Commission [6] - Moody's Ratings has affirmed Talen's existing below-investment-grade ratings, citing a negative outlook due to weak funds-from-operations-to-debt ratios since emerging from bankruptcy in May 2023 [7]

Core Insights - LS Power has completed the acquisition of BP's US onshore wind business, BP Wind Energy North America, enhancing its renewable energy portfolio significantly [1] - The acquisition adds approximately 1.3GW of net ownership in operating onshore wind across ten projects, diversifying LS Power's assets in flexible natural gas, energy storage, and renewable fuels [1][2] Company Operations - Post-acquisition, LS Power will operate over 22.3GW of generation capacity in the US, along with around 780 miles of high-voltage transmission lines [2] - The ten acquired projects are located in Indiana, South Dakota, Hawaii, Pennsylvania, Kansas, Colorado, and Idaho [2] - The acquired company will be integrated into Clearlight Energy, one of LS Power's renewable generation platforms serving the US and Canada [2] Clearlight Energy - Clearlight Energy currently manages approximately 4.3GW of wind, solar, and battery storage assets, solidifying its position as an independent renewable operator in North America [3] Strategic Vision - LS Power's CEO Paul Segal emphasized that the acquisition reflects the company's capability to identify and act on opportunities that address current energy challenges, particularly with surging electricity demand [4] - The company is adopting a 'more of everything' approach to pursue opportunities across the energy landscape, aiming to meet growing energy demand and ensure long-term growth for its renewable platforms [5] Transaction Details - The transaction was finalized after meeting customary closing conditions, including regulatory approvals, with legal and financial advisory support from Greenberg Traurig, Barclays, and Santander [5]