NRG Energy, Inc. (NYSE:NRG) Q4 2022 Earnings Call Transcript

Mauricio Gutierrez: Yes. So in the guidance, obviously, we have the Parish that is not in the first half of the year because it’s on average. What I will tell you in Parish and I think that’s probably the largest risk. The progress that we have made is pretty significant. As a matter of fact, I think just last week, we’ve had the generator now on site and has been listed and put in the deck. So we’re making really, really good progress on what I’m seeing today, I’m confident that we will come back on time. Obviously, the commercial team is monitoring very closely that with the plan. If there is any delays or there is any acceleration that we either mitigate the risk in the market or that we take advantage if it comes in earlier. But in fact, that it’s already embedded in guidance but Alberto?

Alberto Fornaro: Yes. And just to be a little bit more specific, Steve, regarding Parish outage, we said that there is no impact in 2023. And the reason is because of the impact of the availability of the plant was matched by business insurance. We have received a little bit more than the business insurance in 2022. However, we are recalculating the margin. And net-net, it’s still completely hedged by — the loss margin is hedged by what we’re going to receive as insurance, and therefore, no change compared to the prior scenario, which was in the third quarter when we provided the guidance.

Steven Fleishman: And then asset sales?

Alberto Fornaro: The upsell, we have factored Astoria basically which happened in January. And we are — for the moment, until there are news, obviously, we are not adjusting.

Mauricio Gutierrez: But it’s already — Astoria, it has already been taken into consideration.

Alberto Fornaro: Astoria has been considered because it was a — should have happened at the end of 2022. It happened just a few days after ’23 and we took it into consideration in our guidance.

Steven Fleishman: Okay. And how much is that?

Alberto Fornaro: It’s fairly small at the full impact. Consider that we have a tool for the remaining short period. So it’s very, very small.

Steven Fleishman: Okay. Great. Appreciate it. So it’s really the core business, yes.

Operator: Thank you. This concludes the Q&A session. I’d now like to turn the call back over to Mauricio Gutierrez for any closing remarks.

Mauricio Gutierrez: Thank you. Thank you for your interest in NRG, and I look forward to updating you once we close the transaction on Vivint. Thank you.

Operator: Thank you. Ladies and gentlemen, thank you for your participation in today’s conference. This concludes the program.