IRVING, Texas, Aug. 4, 2017 /PRNewswire/ -- Vistra Energy
(NYSE: VST), the parent company for TXU Energy and Luminant, today
reported a second quarter 2017 net loss of $26 million. Net income for the first half
of 2017 was $52 million and cash
provided by operating activities for the same period was
$333 million.
Adjusted EBITDA for the second quarter 2017 was $345 million. For the first half of 2017,
Vistra Energy's adjusted EBITDA was $621
million and adjusted free cash flow was $179 million.
Curt Morgan, Vistra Energy's
chief executive officer, remarked, "Vistra Energy's second quarter
results were strong despite some headwinds, including a lackluster
start to the Texas summer and an
unplanned outage at Comanche Peak Unit 2, which began on June
5. Our solid performance for the quarter is a direct result
of our persistent cost management and the consistently robust
margins realized in both our wholesale and retail segments.
In addition, our operations performance initiative is well under
way and, while we have not yet finalized review of the entire
fleet, we already expect to capture approximately $28 million of incremental EBITDA in 2017 as a
result of this process. This incremental $28 million of EBITDA translates to a full year
run-rate in the range of $45 to 50
million based on the reviews we have completed to
date. Also of note thus far in 2017 are the acquisitions of
the Odessa plant and the
Upton 2 solar development project,
both of which are consistent with Vistra Energy's strategic
direction and expected to enhance shareholder value. We are
proud of our team's execution in the first half of 2017 and pleased
to reaffirm our 2017 guidance."
2017 Guidance
Vistra Energy is reaffirming its 2017 guidance ranges,
reflecting an adjusted EBITDA range of $1,350 million to $1,500 million and an adjusted
free cash flow range of $745 million to $925
million.
Liquidity
As of June 30, 2017, Vistra Energy
had total available liquidity of approximately $2.021 billion, including cash and cash
equivalents of $986 million,
$175 million in available letter of
credit capacity under its term loan C facility, and $860 million of availability under its revolving
credit facility, which remained undrawn at June 30, 2017. Liquidity increased by
approximately $35 million in the
second quarter of 2017 due to increased available cash from
operations.
Odessa Acquisition
On August 1, 2017, Vistra Energy
acquired a 1,054 MW combined cycle, combustion turbine power plant
located in Odessa, Texas (the
"Odessa plant") for approximately
$350 million. Vistra Energy
funded the acquisition with cash on hand. The addition of the
Odessa plant to Luminant's
generation fleet provides geographic diversity to the portfolio and
matches generation against TXU Energy's load position in the ERCOT
West Zone. Further, the Odessa plant's ideal location in West Texas provides it with gas sourcing
flexibility, including access to the deeply discounted gas supply
from the Permian Basin. The acquisition is consistent with
Vistra Energy's strategy to opportunistically acquire more
efficient and flexible gas-fired generation and renewable
generation to support its retail business.
Earnings Conference Call
Vistra Energy will host a conference call today, August 4, 2017, beginning at 11 a.m. EDT (10 a.m.
CDT) to discuss these results and related matters. The
live, listen-only webcast of the conference call and the
accompanying slides that will be discussed on the call can be
accessed via the investor relations section of Vistra Energy's
website at www.vistraenergy.com. For those unable to
participate in the live event, a replay of the call will be
available on the Vistra Energy website for one year following the
call.
About Non-GAAP Financial Measures and Items Affecting
Comparability
"Adjusted EBITDA" (EBITDA as adjusted for unrealized gains or
losses from hedging activities, tax receivable agreement
obligations, reorganization items, and certain other items
described from time to time in Vistra Energy's earnings releases)
and "adjusted free cash flow" (cash from operating activities
excluding changes in margin deposits and working capital and
adjusted for capital expenditures, other net investment activities,
preferred stock dividends, and other items described from time to
time in Vistra Energy's earnings releases), are "non-GAAP financial
measures." A non-GAAP financial measure is a numerical measure of
financial performance that excludes or includes amounts so as to be
different than the most directly comparable measure calculated and
presented in accordance with GAAP in Vistra Energy's consolidated
statements of operations, comprehensive income, changes in
stockholders' equity and cash flows. Non-GAAP financial measures
should not be considered in isolation or as a substitute for the
most directly comparable GAAP measures. Vistra Energy's non-GAAP
financial measures may be different from non-GAAP financial
measures used by other companies.
Vistra Energy uses adjusted EBITDA as a measure of performance
and believes that analysis of its business by external users is
enhanced by visibility to both net income prepared in accordance
with GAAP and adjusted EBITDA. Vistra Energy uses adjusted free
cash flow as a measure of liquidity and believes that analysis of
its ability to service its cash obligations is supported by
disclosure of both cash provided by (used in) operating activities
prepared in accordance with GAAP as well as adjusted free cash
flow. The schedules attached to this earnings release
reconcile the non-GAAP financial measures to the most directly
comparable financial measures calculated and presented in
accordance with U.S. GAAP.
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the
competitive energy and power generation markets through operation
as the largest retailer and generator of electricity in the growing
Texas market. Our integrated
portfolio of competitive businesses consists primarily of TXU
Energy and Luminant. TXU Energy sells retail electricity and
value-added services (primarily through our market-leading TXU
Energy™ brand) to approximately 1.7 million residential and
business customers in Texas.
Luminant generates and sells electricity and related products from
our diverse fleet of generation facilities totaling approximately
18,000 MW of generation in Texas,
including 2,300 MW fueled by nuclear power, 8,000 MW fueled by
coal, and 7,500 MW fueled by natural gas, and is a large purchaser
of renewable power including wind and solar-generated electricity.
The company is currently developing one of the largest solar
facilities in Texas by
capacity.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, which
are subject to risks and uncertainties. All statements, other
than statements of historical facts, are forward-looking
statements. These statements are often, but not always, made
through the use of words or phrases such as "may," "should,"
"could," "predict," "potential," "believe," "will likely result,"
"expect," "continue," "will," "shall," "anticipate," "seek,"
"estimate," "intend," "plan," "project," "forecast," "goal,"
"target," "would," "guidance" and "outlook," or the negative
variations of those words or other comparable words of a future or
forward-looking nature. Readers are cautioned not to place undue
reliance on forward-looking statements. Although Vistra Energy
believes that in making any such forward-looking statement, Vistra
Energy's expectations are based on reasonable assumptions, any such
forward-looking statement involves uncertainties and risks that
could cause results to differ materially from those projected in or
implied by any such forward-looking statement, including the
uncertainties and risks discussed in the sections entitled "Risk
Factors" and "Special Note Regarding Forward-Looking Statements" in
our prospectus filed with the Securities and Exchange Commission
pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as supplemented).
Any forward-looking statement speaks only at the date on which
it is made, and except as may be required by law, Vistra Energy
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which it is made
or to reflect the occurrence of unanticipated events. New factors
emerge from time to time, and it is not possible to predict all of
them; nor can Vistra Energy assess the impact of each such factor
or the extent to which any factor, or combination of factors, may
cause results to differ materially from those contained in any
forward-looking statement.
VISTRA ENERGY
CORP.
CONDENSED
STATEMENTS OF CONSOLIDATED INCOME (LOSS)
(Unaudited)
(Millions of Dollars, Except Earnings Per Share)
|
|
Three
Months
Ended
June 30,
2017
|
|
Six
Months
Ended
June 30,
2017
|
Operating
revenues
|
$
|
1,296
|
|
|
$
|
2,653
|
|
Fuel, purchased power
costs and delivery fees
|
(729)
|
|
|
(1,411)
|
|
Operating
costs
|
(195)
|
|
|
(409)
|
|
Depreciation and
amortization
|
(172)
|
|
|
(341)
|
|
Selling, general and
administrative expenses
|
(147)
|
|
|
(285)
|
|
Operating
income
|
53
|
|
|
207
|
|
Other
income
|
9
|
|
|
18
|
|
Other
deductions
|
(5)
|
|
|
(5)
|
|
Interest expense and
related charges
|
(69)
|
|
|
(93)
|
|
Impacts of Tax
Receivable Agreement
|
(22)
|
|
|
(42)
|
|
Income (loss) before
income taxes
|
(34)
|
|
|
85
|
|
Income tax (expense)
benefit
|
8
|
|
|
(33)
|
|
Net income
(loss)
|
$
|
(26)
|
|
|
$
|
52
|
|
Weighted average
shares of common stock outstanding:
|
|
|
|
Basic
|
427,587,401
|
|
|
427,585,381
|
|
Diluted
|
427,587,401
|
|
|
427,846,563
|
|
Net income (loss) per
weighted average share of common stock outstanding:
|
|
|
|
Basic
|
$
|
(0.06)
|
|
|
$
|
0.12
|
|
Diluted
|
$
|
(0.06)
|
|
|
$
|
0.12
|
|
VISTRA ENERGY
CORP.
CONDENSED
STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited)
(Millions of Dollars)
|
|
Six
Months
Ended
June 30,
2017
|
Cash flows —
operating activities:
|
|
Net income
|
$
|
52
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
Depreciation and
amortization
|
437
|
|
Deferred income tax
expense, net
|
29
|
|
Unrealized net gain
from mark-to-market valuations of derivatives
|
(48)
|
|
Impacts of Tax
Receivable Agreement
|
42
|
|
Stock-based
compensation
|
8
|
|
Other, net
|
22
|
|
Changes in operating
assets and liabilities:
|
|
Margin deposits,
net
|
147
|
|
Accrued
interest
|
(29)
|
|
Accrued
taxes
|
(85)
|
|
Accrued incentive
plan
|
(60)
|
|
Other operating
assets and liabilities, including liabilities subject to
compromise
|
(182)
|
|
Cash provided by
operating activities
|
333
|
|
Cash flows —
financing activities:
|
|
Repayments/repurchases of debt
|
(24)
|
|
Other, net
|
(3)
|
|
Cash used in
financing activities
|
(27)
|
|
Cash flows —
investing activities:
|
|
Capital
expenditures
|
(63)
|
|
Nuclear fuel
purchases
|
(35)
|
|
Solar development
expenditures
|
(96)
|
|
Changes in restricted
cash
|
31
|
|
Proceeds from sales
of nuclear decommissioning trust fund securities
|
98
|
|
Investments in
nuclear decommissioning trust fund securities
|
(107)
|
|
Other, net
|
9
|
|
Cash used in
investing activities
|
(163)
|
|
|
|
Net change in cash
and cash equivalents
|
143
|
|
Cash and cash
equivalents — beginning balance
|
843
|
|
Cash and cash
equivalents — ending balance
|
$
|
986
|
|
VISTRA ENERGY
CORP.
ADJUSTED EBITDA
RECONCILIATION
(Unaudited)
(Millions of Dollars)
|
|
Three
Months
Ended
June 30,
2017
|
|
Six
Months
Ended
June 30,
2017
|
Net income
(loss)
|
$
|
(26)
|
|
|
$
|
52
|
|
Income tax
expense
|
(8)
|
|
|
33
|
|
Interest expense and
related charges
|
69
|
|
|
93
|
|
Depreciation and
amortization (a)
|
189
|
|
|
389
|
|
EBITDA before
adjustments
|
$
|
224
|
|
|
$
|
567
|
|
Reorganization items
and restructuring expenses
|
5
|
|
|
9
|
|
Unrealized net
(gains) losses resulting from hedging transactions
|
67
|
|
|
(54)
|
|
Fresh start
accounting impacts
|
24
|
|
|
51
|
|
Tax receivable
agreement obligation accretion
|
22
|
|
|
42
|
|
Other
|
3
|
|
|
6
|
|
Adjusted
EBITDA
|
$
|
345
|
|
|
$
|
621
|
|
____________
(a)
|
Includes nuclear fuel
amortization of $17 million and $47 million for the three and six
months ended June 30, 2017, respectively.
|
VISTRA ENERGY
CORP.
ADJUSTED FREE CASH
FLOW RECONCILIATION
(Unaudited)
(Millions of Dollars)
|
|
Six
Months
Ended
June 30,
2017
|
Adjusted
EBITDA
|
$
|
621
|
|
Interest paid, net
(a)
|
(133)
|
|
Changes in other
operating assets and liabilities
|
(238)
|
|
Changes in working
capital
|
(74)
|
|
Changes in margin
deposits (b)
|
158
|
|
Other, net
|
(1)
|
|
Cash provided by
(used in) operating activities
|
$
|
333
|
|
Capital
expenditures
|
(63)
|
|
Nuclear fuel
purchases
|
(35)
|
|
Solar development
expenditures
|
(96)
|
|
Other net investing
activities (c)
|
2
|
|
Free cash
flow
|
$
|
141
|
|
Changes in working
capital
|
74
|
|
Changes in margin
deposits (b)
|
(158)
|
|
Solar development
expenditures
|
96
|
|
Payments funded from
restructuring escrow accounts
|
26
|
|
Adjusted free cash
flow
|
$
|
179
|
|
____________
(a)
|
Net of interest
received. Excludes fees paid on Vistra Operations Credit
Facility repricing in February 2017.
|
(b)
|
Includes $11 million
of margin deposits with CME, which are included in the unrealized
net (gain) loss from mark-to-market valuations of derivatives in
the condensed statements of consolidated cash flows.
|
(c)
|
Includes investments
in and proceeds from the nuclear decommissioning trust fund and
other net investing cash flows, but excludes changes in restricted
cash.
|
VISTRA ENERGY
CORP.
2017 GUIDANCE
RECONCILIATION
(Unaudited)
(Millions of Dollars)
|
|
Year
Ended
December 31,
2017
|
|
|
High
|
|
Low
|
Net
Income
|
$
|
221
|
|
|
$
|
123
|
|
Income tax
expense
|
186
|
|
|
134
|
|
Interest expense and
related charges
|
199
|
|
|
199
|
|
Depreciation and
amortization
|
676
|
|
|
676
|
|
EBITDA before
adjustments
|
$
|
1,282
|
|
|
$
|
1,132
|
|
Fresh start
accounting adjustments
|
63
|
|
|
63
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
23
|
|
|
23
|
|
Tax receivable
agreement accretion
|
100
|
|
|
100
|
|
Restructuring and
other
|
32
|
|
|
32
|
|
Adjusted
EBITDA
|
$
|
1,500
|
|
|
$
|
1,350
|
|
Interest
payments
|
(225)
|
|
|
(225)
|
|
Tax
payments
|
(64)
|
|
|
(42)
|
|
Tax receivable
agreement payments
|
(16)
|
|
|
(16)
|
|
Working capital and
margin deposits
|
188
|
|
|
188
|
|
Payments funded from
restructuring escrow accounts
|
(90)
|
|
|
(90)
|
|
Other, net
|
(41)
|
|
|
(93)
|
|
Cash provided by
(used in) operating activities
|
$
|
1,252
|
|
|
$
|
1,072
|
|
Capital expenditures
including nuclear fuel
|
(219)
|
|
|
(219)
|
|
Other net investing
activities
|
(10)
|
|
|
(10)
|
|
Free cash
flow
|
$
|
1,023
|
|
|
$
|
843
|
|
Working capital and
margin deposits
|
(188)
|
|
|
(188)
|
|
Payments funded from
restructuring escrow accounts
|
90
|
|
|
90
|
|
Adjusted free cash
flow
|
$
|
925
|
|
|
$
|
745
|
|
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SOURCE Vistra Energy