NRG powers up with decisive turnaround
Spike in revenue helps to put zing in electricity generator’s numbers
NRG Energy now has its name on Houston’s NFL stadium and advertising partnerships with actor Matthew McConaughey and football star J.J. Watt.
But the power generation and electricity retail giant also had a strong financial turnaround in 2014 in order to rank fourth on the Houston Chronicle 100 list of top public companies. NRG, which has co-headquarters in Houston and New Jersey, reported $15.9 billion in revenue — a 40.5 percent increase from 2013 — both of which were big reasons for NRG’s lofty ranking.
The 2013-2014 winter brought record cold in the Northeast and strong price margins to the company, said Kirkland Andrews, NRG executive vice president and chief financial officer.
Although NRG may be known for its natural gas, coal and nuclear power plants, the company is moving forward rapidly in alternative energy, particularly in home solar panels. NRG made multiple solar acquisitions last year, including Roof Diagnostics Solar, Pure Energies Group and Goal Zero.
The company is preparing for a future of “off-the-grid” homes getting their electricity solely through solar panels and underground natural gas lines, Andrews said. The plan in 2015 is to move from being a top five company in home solar into the top three nationally, he said.
That is why there is some frustration for NRG executives when they see NRG’s stock prices follow natural gas prices, as is the case with many traditional power companies.
“We’re really trying to make strides in breaking that connectivity,” Andrews said.
With a nod to concerns over carbon emissions, NRG also is in a joint venture to build a $1 billion carbon capture facility at its W.A. Parish power plant southwest of Houston.
NRG made its big splash in Houston in 2005, buying Texas Genco. It bought Reliant Energy in 2009. While Andrews emphasized the Reliant name is not being retired, the NRG brand is becoming more prominent, most notably with the renaming to NRG Stadium.
NRG counts more than 10,000 employees worldwide, including nearly 3,200 locally.