NRG Energy, Inc. (NRG)
Q2 2009 Earnings Call
July 30, 2009 9:00 am ET
Nahla Azmy - VP IR
David Crane - President and CEO
John Ragan - COO
Bob Flexon - CFO
Mauricio Gutierrez - SVP
Ameet Thakkar - Deutsche Bank
Michael Lapides - Goldman Sachs
Brian Russo - Ladenburg Thalmann
Lasan Johong - RBC Capital Markets
Brian Chin - Citigroup
Neel Mitra - Simmons & Co. International
Previous Statements by NRG
» NRG Energy, Inc. Q3 2009 Earnings Call Transcript
» NRG Energy, Inc. Q1 2009 Earnings Call Transcript
» NRG Energy, Inc. Q4 2008 Earnings Call Transcript
I would now like to turn a presentation over to your host for today's call, Ms. Nahla Azmy, Vice President of Investor Relations. Please proceed.
Thank you, Erica. Good morning and welcome to our second quarter 2009 earnings call. This call is being broadcast live over the phone and from our website at www.nrgenergy.com. You can access the call presentation and press release furnished with the SEC through a link on the Investor Relations page of our website. A replay of the call will be also available on our website.
This call, including the formal presentation and question-and-answer session, will be limited to 45 minutes. In the interest of time, we ask that you please limit yourself to one question with just one follow-up, and now for the obligatory Safe Harbor Statement.
During the course of this morning's presentation, management will reiterate forward-looking statements made in today's press release regarding future events and financial performance. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.
We caution you to consider the important risk factors contained in our press release and other filings with the SEC that could cause actual results to differ materially from those in the forward-looking statements, in the press release and this conference call.
In addition, please note that the date of this conference call is July 30th, 2009 and any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of future events except as required by law.
During this morning's call we will refer to both GAAP and non-GAAP financial measures of the company's operating financial results. For complete information regarding our non-GAAP financial information, to the most directly comparable GAAP measures and a quantitative reconciliation of those figures; please refer to today's press release and this presentation.
Now with that, I am pleased to turn this over to David Crane, NRG's President and Chief Executive Officer.
Thank you, Nahla. Good morning everyone, and welcome to our second quarter earnings call. This call is quite unusual in that comes shortly after rather than just before both the provision of updated full year guidance and an extensive investor outreach effort by the company. What this means is that there's relatively little new information provided today and as many of you have been very generous in giving us your time over the past few weeks, we intend to partially repay that debt by keeping this call short and sweet, and I do mean sweet.
If you're looking at the slides, you may want to be looking at slide four. In our recent conversations with you, we have, for obvious reasons, been more focused on the long-term value proposition of the company. The fact is that the company's also delivering absolutely extraordinary results right now in the depth of the first great recession of the 21st century and that performance should not be overlooked because as all of you know and as all of us at NRG are acutely aware, long-term value is created by a succession of strong quarterly performances. So today we intend to shine the spotlight on our current performance.
Here to do that are John Ragan, our Chief Operating Officer, who will review the performance of our plant and commercial operations groups; and Bob Flexon who will review our exceptional second quarter and first half 2009 financial results. John?
Thank you, David. Good morning everyone. During the second quarter of 2009 NRG continued to build on the strong operating performance that it had achieved during the first quarter and was well-positioned to enter into the critical summer months.
On slide six, we highlight some of our second quarter achievements. Our focus on safety across the organization has remained strong with an OSHA recordable rate of 1.31 through the first half of 2009. Our OSHA rate continues to exceed the top quartile benchmark for the industry of 1.52.
While this is a solid accomplishment for the company, safety continues to be a top priority for the management team and all of NRG's employees. Some of the activities that we have undertaken during the second quarter to reinforce safe work practices have included a national safety stand down with all of our corporate employees. The implementation of our new safety work policy to strengthen our expectations with our contractors, and advancing our efforts to achieve OSHA's DPP status at three of our generating facilities.
Our baseload operations have had another solid quarter with our plant personnel delivering strong performance even though we continue to face challenging market conditions caused by cycling, an increase in reserve shutdowns and additional starts for our coal assets especially in the Northeast.