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NRG To Sell HVAC Installer Business, Announces Sale Price
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NRG Energy, Inc. announced that it has entered into a definitive agreement to sell its Airtron HVAC business unit for $500 million, subject to standard purchase price adjustments.
Airtron is an installer of HVAC systems for residential new construction homes and was acquired as part of the Direct Energy acquisition in 2021.
"The opportunistic divestiture at an accretive 8.6x multiple on 2023 Adjusted EBITDA will provide additional capital available for allocation in 2024," NRG said
The transaction is subject to regulatory approval under the Hart Scott Rodino Act and is expected to close by the end of 2024.
In other strategic updates shared in reporting second quarter earnings, NRG said that it is continuing to make "substantial" progress on its virtual power plant (VPP) offering, and expects to share more details by the time of its third quarter earnings call
As of the second quarter of 2024, NRG said that Home Energy subscribers grew 8% year over year
NRG reported customer count growth, year-over-year, in both its Texas and East segments
For NRG's Texas segment, second quarter 2024 Adjusted EBITDA was $452 million, $52 million lower than the second quarter of 2023. This decrease was a result of asset sales in 2023 and the impact of an extended planned preventative maintenance program to ensure summer reliability, partially offset by gains in customer volumes from increased customer counts and favorable impact from weather, NRG said
For NRG's East segment, second quarter 2024 Adjusted EBITDA was $209 million, $132 million higher than the second quarter of 2023. This increase was driven by lower retail supply costs for power and natural gas and increased customer counts, NRG said
For NRG's West/Services/Other segment, second quarter Adjusted EBITDA was $73 million, $52 million higher than the second quarter of 2023. This increase was primarily driven by lower retail power supply costs and margin expansion at Cottonwood, NRG said
"Strong results in East and West include power and natural gas margin expansion and increase in customer counts," NRG said
"The East and West segments experienced margin growth from both power and natural gas as well as improvements in customer counts," NRG said
On a consolidated basis, NRG reported second quarter 2024 Adjusted EBITDA of $935 million, up from $819 million a year ago
NRG reported retail energy volumes as follows:
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Prepares VPP Offering
August 8, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
2Q24 2Q23
Texas EWO Texas EWO
Home Power (TWh) 11 4 10 3
Business Power (TWh) 10 15 10 14
Total Power (TWh) 21 19 20 17
Total Natural Gas (MDths) -- 395 -- 413
EWO: East/West/Other; includes Services
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