Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Estimated Carrying Amounts and Fair Values of Long-term Debt

The estimated carrying value and fair value of the Company’s long-term debt, including current portion, is as follows:


	June 30, 2026				December 31, 2025
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value







Total long-term debt, including current portion(a)	$	23,388	$	23,020	$	16,565	$	16,405

(a)Excludes deferred financing costs, which are recorded as a reduction to long-term debt in the Company’s consolidated balance sheets

The following table presents the level within the fair value hierarchy for long-term debt, including current portion, as of June 30, 2026 and December 31, 2025:


	June 30, 2026				December 31, 2025
(In millions)	Level 2		Level 3		Level 2		Level 3



Total long-term debt, including current portion	$	21,087	$	1,933	$	16,033	$	372

Schedule of Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following tables present assets and liabilities measured and recorded at fair value on the Company’s condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:


	June 30, 2026
	Fair Value
(In millions)	Total		Level 1		Level 2		Level 3
Investments in securities (classified within other current and non-current assets)	$	34	$	—	$	34	$	—



Derivative assets:
Interest rate contracts	10		—		10		—
Foreign exchange contracts	12		—		12		—
Commodity contracts(a)	4,230		325		3,645		260


Equity securities measured using net asset value practical expedient (classified within other non-current assets)	7
Total assets	$	4,293	$	325	$	3,701	$	260
Derivative liabilities:


Commodity contracts(a)	$	4,094	$	476	$	3,364	$	254
Consumer Financing Program	271		—		—		271
Total liabilities	$	4,365	$	476	$	3,364	$	525

(a)Excludes $553 million of derivative assets and $82 million of derivative liabilities that were elected as NPNS on October 1, 2024 and are no longer valued at fair value on a recurring basis


	December 31, 2025
	Fair Value
(In millions)	Total		Level 1		Level 2		Level 3
Investments in securities (classified within other current and non-current assets)	$	33	$	—	$	33	$	—


Derivative assets:

Foreign exchange contracts	3		—		3		—
Commodity contracts(a)	3,132		267		2,552		313



Equity securities measured using net asset value practical expedient (classified within other non-current assets)	7
Total assets	$	3,175	$	267	$	2,588	$	313
Derivative liabilities:
Interest rate contracts	$	4	$	—	$	4	$	—
Foreign exchange contracts	3		—		3		—
Commodity contracts(a)	2,932		352		2,377		203
Consumer Financing Program	283		—		—		283
Total liabilities	$	3,222	$	352	$	2,384	$	486

(a)Excludes $622 million of derivative assets and $138 million of derivative liabilities that were elected as NPNS on October 1, 2024 and are no longer valued at fair value on a recurring basis

Reconciliation of Beginning and Ending Balances for Financial Instruments that are Recognized at Fair Value

The following table reconciles, for the three and six months ended June 30, 2026 and 2025, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs, for commodity derivatives:


	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Commodity Derivatives(a)
(In millions)	Three months ended June 30, 2026		Three months ended June 30, 2025		Six months ended June 30, 2026		Six months ended June 30, 2025
Beginning balance	$	30	$	49	$	110	$	39

Contracts added from LSP Portfolio acquisition	—		—		5		—
Contracts added from Texas Generation Portfolio acquisition	—		(91)		—		(91)
Total (losses)/gains realized/unrealized included in earnings	(32)		22		(134)		34
Purchases	10		37		22		37
Transfers into Level 3(b)	(1)		63		—		63
Transfers out of Level 3(b)	(1)		1		3		(1)
Ending balance	$	6	$	81	$	6	$	81
(Losses)/gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of period end	$	(31)	$	5	$	(104)	$	47

(a)Consists of derivative assets and liabilities, net, excluding derivatives liabilities from the Consumer Financing Program, which are presented in a separate table below

(b)Transfers into/out of Level 3 within the fair value hierarchy are related to the availability of consensus pricing and external broker quotes, including volatilities, and are valued as of the end of the reporting period. All transfers in/out of Level 3 are from/to Level 2

Reconciliation of Contractual Obligations of Consumer Financing Program Recognized at Fair Value

The following table reconciles, for the three and six months ended June 30, 2026 and 2025, the beginning and ending balances of the contractual obligations from the Consumer Financing Program that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs:


	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Consumer Financing Program
(In millions)	Three months ended June 30, 2026		Three months ended June 30, 2025		Six months ended June 30, 2026		Six months ended June 30, 2025
Beginning balance	$	(252)	$	(207)	$	(283)	$	(203)

New contractual obligations	(60)		(81)		(86)		(113)
Settlements	42		31		102		67
Total losses included in earnings	(1)		—		(4)		(8)
Ending balance	$	(271)	$	(257)	$	(271)	$	(257)

Schedule of Significant Unobservable Inputs For Fair Values

The following tables quantify the significant, unobservable inputs used in developing the fair value of the Company’s Level 3 positions as of June 30, 2026 and December 31, 2025:



	June 30, 2026
	Fair Value						Input/Range
(In millions, except as noted)	Assets		Liabilities		Valuation Technique	Significant Unobservable Input	Low			High			Weighted Average
Natural Gas Contracts	$	25	$	16	Discounted Cash Flow	Forward Market Price ($ per MMBtu)	$	1		$	18		$	5
Power Contracts	131		125		Discounted Cash Flow	Forward Market Price ($ per MWh)	0			192			28
Capacity Contracts	22		19		Discounted Cash Flow	Forward Market Price ($ per MW/Day)	54			625			331
RECs	18		35		Discounted Cash Flow	Forward Market Price ($ per Certificate)	2			370			18
FTRs	44		25		Discounted Cash Flow	Auction Prices ($ per MWh)	(74)			25,013			1
Power Options	20		34		Option Models	Volatilities	32		%	694		%	131		%
Consumer Financing Program	—		271		Discounted Cash Flow	Collateral Default Rates	0.74		%	43.50		%	8.58		%
					Discounted Cash Flow	Collateral Prepayment Rates	2.00		%	3.00		%	2.48		%
					Discounted Cash Flow	Credit Loss Rates	6.53		%	60.00		%	17.70		%
	$	260	$	525



	December 31, 2025
	Fair Value						Input/Range
(In millions, except as noted)	Assets		Liabilities		Valuation Technique	Significant Unobservable Input	Low			High			Weighted Average
Natural Gas Contracts	$	47	$	40	Discounted Cash Flow	Forward Market Price ($ per MMBtu)	$	0		$	17		$	5
Power Contracts	168		64		Discounted Cash Flow	Forward Market Price ($ per MWh)	0			125			29
Capacity Contracts	20		18		Discounted Cash Flow	Forward Market Price ($ per MW/Day)	49			577			270
RECs	12		25		Discounted Cash Flow	Forward Market Price ($ per Certificate)	2			370			17
FTRs	22		11		Discounted Cash Flow	Auction Prices ($ per MWh)	(50)			19,100			0
Power Options	44		45		Option Models	Volatilities	22		%	517		%	110		%
Consumer Financing Program	—		283		Discounted Cash Flow	Collateral Default Rates	1.18		%	42.00		%	7.86		%
					Discounted Cash Flow	Collateral Prepayment Rates	2.00		%	3.00		%	2.52		%
					Discounted Cash Flow	Credit Loss Rates	6.40		%	60.00		%	16.94		%
	$	313	$	486

Schedule of Fair value Inputs, Sensitivity Analysis

The following table provides sensitivity of fair value measurements to increases/(decreases) in significant, unobservable inputs as of June 30, 2026 and December 31, 2025:

Significant Unobservable Input

Position

Change In Input

Impact on Fair Value Measurement

Forward Market Price Natural Gas/Power/Capacity/RECs

Buy

Increase/(Decrease)

Higher/(Lower)

Forward Market Price Natural Gas/Power/Capacity/RECs

Sell

Increase/(Decrease)

Lower/(Higher)

FTR Prices

Buy

Increase/(Decrease)

Higher/(Lower)

FTR Prices

Sell

Increase/(Decrease)

Lower/(Higher)

Volatilities

Buy

Increase/(Decrease)

Higher/(Lower)

Volatilities

Sell

Increase/(Decrease)

Lower/(Higher)

Collateral Default Rates

n/a

Increase/(Decrease)

Higher/(Lower)

Collateral Prepayment Rates

n/a

Increase/(Decrease)

Lower/(Higher)

Credit Loss Rates

n/a

Increase/(Decrease)

Higher/(Lower)

Schedule of Net Counterparty Credit Exposure by Industry Sector and by Counterparty Credit Quality

The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables.


	Net Exposure(a)(b)
Category by Industry Sector	(% of Total)

Utilities, energy merchants, marketers and other	77	%
Financial institutions	23

Total as of June 30, 2026	100	%


	Net Exposure (a)(b)
Category by Counterparty Credit Quality	(% of Total)
Investment grade	74	%
Non-investment grade/Non-Rated	26
Total as of June 30, 2026	100	%

(a)Counterparty credit exposure excludes coal transportation contracts because of the unavailability of market prices

(b)The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long-term contracts

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details