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NRG Energy Annual Report, Year Ended Dec 31, 2000

Filing Date
Filed March 29, 2001
Period End
December 31, 2000
Security
NRG
In the record · 2016–202610-K1110-Q328-K163

NRG filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 163 current reports (8-K) between 2016 and 2026.

  1. Bankruptcy8-K · Dec ’17Dec ’17
  2. Leadership change8-K · Oct ’19Oct ’19
  3. Leadership change8-K · Nov ’21Nov ’21
  4. Material agreement8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed March 29, 2001. Cited figures are marked; the original filing is the authoritative source.

NRG Energy, Inc. reported a substantial expansion in 2000, with net income of $182.9 milliona (basic and diluted EPS of $1.10) compared with $57.2 million in 1999, and total operating revenues and equity earnings of $2,157,986 thousand versus $500,018 thousand.

The company held interests in power generation facilities totaling 25,059 MW of design capacity as of December 31, 2000, of which 15,007 MW was net ownership, up from 10,990 MW a year earlier. Growth was driven by acquisitions including the Cajun facilities ($1,055.9 millionb), Killingholme ($615 million), Flinders Power, and in January 2001 a 5,633 MW portfolio from LS Power for $708 million. Total assets rose to $5.98 billion and long-term debt to $3.80 billion, and interest expense increased to $293.9 million.

The filing also flags several risks for investors. Net cash used in investing activities was $2.20 billionc in 2000, and the company expects capital expenditures of approximately $6.5 billion over 2001-2005. California exposure is significant: the filing states that receivables owed by California counterparties totaled approximately $303 million as of February 28, 2001, that West Coast Power faced a covenant default that it was working to resolve with lenders, and that FERC orders could require refunds of about $22.5 million for NRG's share of January and February revenues.

The company also disclosed a Loy Yang Power investment of $250 milliond that could be written down if senior debt covenants are breached, and a pending NY DEC Notice of Violation regarding the Huntley and Dunkirk facilities. In March 2001, NRG completed a public offering of 18.4 million common shares, raising net proceeds of approximately $473.9 million, and issued 11.5 million equity units for approximately $278.4 million in net proceeds.

Xcel Energy's ownership fell to approximately 74% of common and Class A common stock, representing 96.7% of voting power. The company does not pay dividends.

02—Key points

Key Highlights

  1. Net income rose to $182.9 million in 2000 from $57.2 million in 1999; basic and diluted EPS were $1.10 versus $0.39.
  2. Total operating revenues and equity earnings were $2,157,986 thousand in 2000, up from $500,018 thousand in 1999.
  3. Net ownership interest in generation facilities grew to 15,007 MW at December 31, 2000, from 10,990 MW at December 31, 1999, largely through acquisitions.
  4. Long-term debt including current maturities reached $3,797,318 thousand, versus $1,971,860 thousand a year earlier; interest expense was $293.9 million.
  5. California exposure: receivables from California counterparties totaled about $303 million as of February 28, 2001, and West Coast Power is in a covenant default being worked out with lenders.
  6. Subsequent to year-end, NRG raised approximately $473.9 million from a common stock offering and about $278.4 million from equity units, and completed the $708 million LS Power acquisition of 5,633 MW.
  7. Xcel Energy owns approximately 74% of NRG common and Class A stock following the March 2001 offering; NRG does not currently pay dividends.

03—Questions

Frequently Asked Questions

  1. What drove the increase in NRG's 2000 results?

    The filing attributes the increase in revenues and costs primarily to acquisitions of electric generating facilities made in late 1999 and in 2000, including the Cajun facilities, Killingholme, and Flinders Power. Equity earnings also rose, mainly due to West Coast Power benefiting from favorable California market conditions, which the company does not expect to repeat in 2001.

  2. How exposed is NRG to the California energy situation?

    NRG owned about 1,569 MW of net generating capacity in California at December 31, 2000, about 11% of its net MW. Net income from California assets represented approximately 33% of 2000 net income, which the company expects to fall to about 14% in 2001. The filing notes that delayed utility payments have created collectibility risk and that FERC orders could require refunds of roughly $22.5 million for NRG's share of January and February 2001 revenues.

  3. What are NRG's major capital and financing needs?

    The company estimates capital expenditures of about $6.5 billion for 2001 through 2005, including $3,138 million in 2001. It funded 2000 acquisitions largely with debt and equity; net cash used in investing activities was $2,204,454 thousand in 2000. Post-year-end equity and debt raises and a $500 million revolving credit facility were described as sources for these needs.

  4. What risks are highlighted for the Loy Yang Power investment?

    NRG has a 25.4% interest in Loy Yang Power, carried at $250 million. The filing says that if forecast market improvements are not achieved, covenant breaches could occur, allowing senior lenders to enforce their securities, and NRG could be required to write off all or a significant portion of its investment. Junior debt interest payments of AUD $36.9 million were deferred as of December 31, 2000.

04—Continue

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