Texas energy supplier NRG sees big financial hit from February freeze
Texas energy supplier NRG Energy Inc. announced today that it was expecting a multi-million-dollar loss due to the impact of last month’s severe winter weather.
The company said in a March 17 statement that the financial impact of a winter storm dubbed Uri, which pushed temperatures well below the freezing mark in Texas last month, remains uncertain.
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NRG stated that, with the information it has on hand, it estimated the financial impact will be a $750mn loss, but stressed that the information it has it on hand is not complete and subject to change.
The February freeze idled shale oil and gas production and shuttered many of the regional refineries. NRG said energy demand reached an all-time peak last month, though it had already advocated for conservation from its customers across the residential, commercial and industrial segments before the storm.
The company said its repricing and metering data could impact the estimated final burden.
On March 1, the company said it expected to see adjusted earnings for the year at around $2.4mn. But that’s all changed.
“Based on the new information available to us today, we are unable to provide financial guidance due to the unprecedented and unpredictable market outcomes resulting from winter storm Uri,” NRG CEO Mauricio Gutierrez said.
For the 12 months ending December 31, the company realized adjusted earnings of around $2mn, a 0.4% increase from full-year 2019.