NRG Energy To Further Cut Costs; Narrows 2015 Adj. EBITDA Outlook - Quick Facts

(RTTNews) - While reporting its financial results for the third quarter today, NRG Energy Inc. (NRG) said it has begun implementation of a company-wide cost reduction program of $150 million across its general and administrative, marketing and development expenses, in connection with which the company expects to incur one-time severance and associated costs of about $60 million in 2015 and 2016.

In addition, NRG Energy announced an additional $100 million per year cost reduction initiative associated with the O&M spend across its wholesale/business, retail and renewable businesses to be achieved on a recurring basis beginning in 2016, measured against projected 2015 aggregate O&M spend.

The impact of this program is reflected in the company's financial guidance for 2016 also announced today and brings the aggregate cost savings expected in 2016 to $250 million.

On November 3, 2015, NRG Energy completed the sale of a 75 percent interest in an 814 net megawatt portfolio of twelve wind facilities, representing 611 net MW to NRG Yield for$210 million in total cash consideration, subject to working capital adjustments.

NRG Energy also narrowed its full year 2015 guidance. The company now forecasts adjusted EBITDA of $3.25 billion to $3.35 billion, compared to the prior range of $3.20 billion to $3.40 billion.

For fiscal 2016, NRG Energy initiated adjusted EBITDA outlook in a range of $3.00 billion to $3.20 billion.