/PRNewswire/ -- Vistra Energy Corp. (NYSE:
VST):
Second Quarter Highlights
IRVING,
Texas, Aug. 6,
2018
- Closed merger with Dynegy Inc. (Dynegy) on April 9, raising expected EBITDA value levers by
approximately 43 percent to $500
million, increasing after-tax free cash flow value levers by
approximately 300 percent to $260
million, and improving its five-year cash tax and TRA
forecast by approximately $1.7
billion, all as compared to initial expectations at the time
of the merger announcement
- Announced 2019 full-year adjusted EBITDA and free cash
flow guidance of $3.2 to $3.5 billion and $2.05 to $2.35
billion, respectively, highlighting the company's
significant earnings power and EBITDA to free cash flow conversion
with nearly full run-rate value levers
- Authorized $500 million
share repurchase program in June, to be executed opportunistically
over eighteen months, and repurchased approximately 6.4 million
shares for $150 million through
July 31, 2018
- Repaid the $850 million
aggregate principal amount of 6.75 percent senior notes due 2019 on
May 1, 2018 and on track to achieve
2.5 times net debt to EBITDA target by year-end 2019 while
maintaining flexibility to pursue other capital allocation
priorities
- Executed secured debt transaction that optimized over
$5 billion of Vistra's debt through
refinancing, repricing, and repayment, generating $23 million of annual after-tax savings; also
consolidated Vistra and Dynegy revolvers into a new, five-year
$2.5 billion Revolving Credit
Facility
- Entered into $3 billion
notional value of interest rate swaps effective from July 2023 to July
2026, extending Vistra's protection from rising interest
rates for an additional three years
- Announced Moss Landing
battery storage project, a 300-megawatt / 1,200-megawatt hour
battery project that will be the largest of its kind in the world
with an associated 20-year resource adequacy contract, highlighting
Vistra's ability to identify what are expected to be opportunistic,
high-return investments that establish market leadership in
emerging technologies
- Achieved commercial operations of 180-megawatt
Upton County 2 solar facility on
June 1, 2018 and the Upton 2 battery project remains on track for a
fourth quarter 2018 COD
Summary of Financial Results for the Second Quarter
Ended June 30, 2018 (in
millions)
($ in millions)
|
|
Three Months Ended
June 30, 2018
|
|
Six Months Ended
June 30, 2018
|
Ongoing Operations
Net Income (Loss)1
|
|
$
|
103
|
|
$
|
(181)
|
Ongoing Operations
Adjusted EBITDA1
|
|
$
|
653
|
|
$
|
916
|
- exc. Odessa
Earnout Buybacks
|
|
$
|
663
|
|
$
|
944
|
|
(1) Excludes
results from the Asset Closure segment. Adjusted EBITDA is a
non-GAAP financial measure. See the "Non-GAAP Reconciliation"
tables for further details.
|
For the three months ended June 30,
2018, Vistra reported net income from ongoing operations of
$103 million and adjusted EBITDA from
ongoing operations of $653
million. Vistra's second quarter adjusted EBITDA
exceeded expectations as a result of higher realized prices, lower
than forecast operations and maintenance expenses, and strong ERCOT
retail performance that was offset by higher power costs than
planned for our Ohio retail
portfolio.
For the first half of 2018, Vistra reported a net loss
from ongoing operations of $181
million, which includes unrealized net losses on hedging
activities of $199 million, and
adjusted EBITDA from ongoing operations of $916 million. Excluding the impact to
adjusted EBITDA of negative $28
million during the period resulting from the partial
buybacks of the Odessa Power Plant earnout in February and May,
Vistra's year-to-date adjusted EBITDA would have been $944 million. When the Odessa earnout buybacks were executed, Vistra
estimated the economic benefit of the transactions, net of the
premiums paid, would be approximately $25
million.
Curt Morgan, Vistra's chief
executive officer, commented, "Our company had another strong
quarter, delivering adjusted EBITDA that exceeded
expectations. Following the close of the Dynegy merger on
April 9, our integration efforts are
in full swing and we remain on track to achieve the full
$500 million run-rate value lever
targets by year-end 2019. We are confident our low-cost,
low-leverage, integrated business model will generate strong,
stable EBITDA while converting approximately 60 percent of adjusted
EBITDA to adjusted free cash flow on an annual basis. This
kind of performance will enable a diverse set of capital allocation
alternatives to create and return value for our
shareholders."
Reportable Segments
Following the closing of the merger with Dynegy, Vistra
has six reportable segments: (i) Retail, (ii) ERCOT, (iii) PJM,
(iv) NY/NE (comprising NYISO and ISO-NE), (v) MISO, and (vi) Asset
Closure.
Guidance
($ in millions)
|
|
2018
|
|
2019
|
Ongoing Ops. Adj.
EBITDA1
|
|
$
|
2,700 -
2,900
|
|
$
|
3,200 –
3,500
|
Ongoing Ops. Adj.
FCF1
|
|
$
|
1,400 -
1,600
|
|
$
|
2,050 –
2,350
|
|
(1) Excludes
results from the Asset Closure segment. Adjusted EBITDA and
Adjusted Free Cash Flow are non-GAAP financial measures. See
the "Non-GAAP Reconciliation" tables for further
details.
|
Vistra Energy is reaffirming its 2018 Ongoing Operations
guidance ranges, forecasting an Ongoing Operations adjusted EBITDA
range of $2,700 to $2,900 million and an Ongoing Operations adjusted
free cash flow range of $1,400 to
$1,600 million. The 2018
guidance ranges reflect Vistra's results on a stand-alone basis for
the period prior to April 9, 2018 and
anticipated results of the combined company for the period from
April 9 through December 31,
2018.
Vistra is also reaffirming its 2019 Ongoing Operations
guidance ranges, forecasting adjusted EBITDA of $3,200 to $3,500
million and adjusted free cash flow of $2,050 to $2,350
million.
Completed Merger with Dynegy
Vistra closed its merger with Dynegy on April 9, 2018, creating the leading, lowest-cost
integrated power company across the key competitive markets in the
United States. Through the combination, Vistra has achieved
earnings, geographic, and fuel diversification and transformed into
a highly efficient, natural gas-centric power plant fleet with
approximately 41,000 megawatts of capacity (84 percent of which is
in the attractive ERCOT, PJM, and ISO-NE regions). In
addition, Vistra has expanded its retail footprint and created a
platform for further retail growth and integration, while
maintaining a strong and liquid balance sheet – with an intention
to de-lever to a 2.5 times net debt to EBITDA target by year-end
2019.
On May 4, 2018, Vistra
increased its anticipated annual EBITDA value levers and free cash
flow value levers by approximately 43 percent and 300 percent,
respectively. Integration and execution of all synergy and
operations performance initiative value levers remains on
schedule.
Share Repurchase Program
On June 12, 2018, Vistra
announced that its board of directors authorized a $500 million share repurchase program.
Vistra plans to execute the program on an opportunistic basis
over eighteen months. As of July 31,
2018, Vistra had purchased approximately 6.4 million shares
for approximately $150
million.
Financing Update
On May 1, 2018, Vistra
repaid the $850 million aggregate
principal amount of 6.75 percent senior notes due 2019.
On June 14, 2018, Vistra
closed a transaction that optimized over $5
billion of the company's secured debt, resulting in
anticipated after-tax interest savings of $23 million annually. Through the
transaction, Vistra refinanced over $2
billion in term loans, repriced Vistra's $2.8 billion term loan, repaid the $500 million Term Loan C letter of credit
facility with its restricted cash balance, and consolidated legacy
Vistra and Dynegy revolvers into a new, five-year $2.5 billion Revolving Credit Facility. In
addition, the transaction simplified the company's capital
structure from the "silo" structure following the
merger.
Vistra also entered into approximately $3 billion of notional value fixed interest rate
swaps with effective dates from 2023 to 2026 during the
quarter.
Liquidity
As of June 30, 2018, Vistra
had total available liquidity of approximately $1.822 billion, including cash and cash
equivalents of $757 million and
$1,065 million of availability under
its revolving credit facility, which remained undrawn but had
$1,435 million of letters of credit
outstanding as of June 30,
2018.
Announced 300-megawatt Battery Storage Project at
Moss Landing
On June 29, 2018, Vistra
announced its intention to develop the world's largest battery
storage project: a 300-megawatt / 1,200-megawatt hour battery
storage project at its Moss Landing Power Plant site in
Moss Landing, California.
The company has entered into a 20-year resource adequacy
contract for the project with investment grade off-taker Pacific
Gas & Electric (PG&E), creating a low-risk project with
anticipated unlevered returns in excess of Vistra's investment
criteria. The contract is subject to approval by the
California Public Utilities Commission (CPUC).
Development will begin following CPUC approval, which is
expected within 90 days of PG&E's application to the CPUC.
The project will use the existing interconnection and other
infrastructure from mothballed Moss
Landing units 6 and 7, and is expected to go into service
during the fourth quarter of 2020.
Upton 2 Solar
COD
On June 1, 2018, Vistra
achieved commercial operations at the 180-megawatt Upton 2 solar power plant in West Texas – the largest operating solar
facility in the state. The output from the Upton 2 plant will further diversify
Luminant's generation capacity while enhancing Vistra's
market-leading retail solar offerings and capabilities in ERCOT,
highlighting the value created from the company's integrated
business model. In addition, Upton 2 provides a platform for economic
battery storage development, and the company is currently
developing a 10-megawatt (42-megawatt hour) battery project at the
site.
Earnings Webcast
Vistra will host a webcast today, Aug. 6, 2018, beginning at 8 a.m. ET (7 a.m.
CT) to discuss these results and related matters. The
live, listen-only webcast and the accompanying slides that will be
discussed on the call can be accessed via the investor relations
section of Vistra's website at www.vistraenergy.com. A replay
of the webcast will be available on the Vistra website for one year
following the live event.
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),"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), "Ongoing Operations
Adjusted EBITDA" (adjusted EBITDA less adjusted EBITDA from new
Asset Closure segment) and "Ongoing Operations Adjusted Free Cash
Flow" (adjusted free cash flow less cash flow from operating
activities from new Asset Closure segment), 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. Vistra Energy uses Ongoing
Operations Adjusted EBITDA as a measure of performance and Ongoing
Operations Adjusted Free Cash Flow as a measure of liquidity and
Vistra Energy's management and board of directors have found it
informative to view the Asset Closure segment as separate and
distinct from Vistra Energy's ongoing operations. 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
(NYSE: VST) is a premier, integrated power company based in
Irving, Texas, combining an
innovative, customer-centric approach to retail with a focus on
safe, reliable, and efficient power generation. Through its retail
and generation businesses which include TXU Energy, Homefield
Energy, Dynegy, and Luminant, Vistra operates in 12 states and six
of the seven competitive markets in the U.S., with about 6,000
employees. Vistra's retail brands serve approximately 2.9 million
residential, commercial, and industrial customers across five top
retail states, and its generation fleet totals approximately 41,000
megawatts of highly efficient generation capacity, with a diverse
portfolio of natural gas, nuclear, coal, and solar
facilities.
Cautionary Note Regarding Forward-Looking
Statements
The information presented herein
includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Exchange Act, as amended. These forward-looking statements, which
are based on current expectations, estimates and projections about
the industry and markets in which Vistra Energy Corp. ("Vistra
Energy") operates and beliefs of and assumptions made by Vistra
Energy's management, involve risks and uncertainties, which are
difficult to predict and are not guarantees of future performance,
that could significantly affect the financial results of Vistra
Energy. All statements, other than statements of historical facts,
that are presented herein, or in response to questions or
otherwise, that address activities, events or developments that may
occur in the future, including such matters as activities related
to our financial or operational projections, projected synergy,
value lever and net debt targets, capital allocation, capital
expenditures, liquidity, projected Adjusted EBITDA to free cash
flow conversion rate, dividend policy, business strategy,
competitive strengths, goals, future acquisitions or dispositions,
development or operation of power generation assets, market and
industry developments and the growth of our businesses and
operations (often, but not always, through the use of words or
phrases, or the negative variations of those words or other
comparable words of a future or forward-looking nature, including,
but not limited to, "intends," "plans," "will likely," "unlikely,"
"believe," "expect," "seek," "anticipate," "estimate," "continue,"
"will," "shall," "should," "could," "may," "might," "predict,"
"project," "forecast," "target," "potential," "forecast," "goal,"
"objective," "guidance" and "outlook"),are forward-looking
statements. . 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 but not
limited to (i) the effect of the merger (the "Merger") on Vistra
Energy's relationships with Vistra Energy's and Dynegy Inc.'s
("Dynegy") respective customers and their operating results and
businesses generally (including the diversion of management time on
integration-related issues); (ii) the risk that the credit ratings
of the combined company or its subsidiaries are different from what
Vistra Energy expects; (iii) adverse changes in general economic or
market conditions (including changes in interest rates) or changes
in political conditions or federal or state laws and regulations;
(iv) the ability of Vistra Energy to execute upon the contemplated
strategic and performance initiatives (including the risk that
Vistra Energy's and Dynegy's respective businesses will not be
integrated successfully or that the cost savings, synergies and
growth from the Merger will not be fully realized or may take
longer than expected to realize); and (v) those additional risks
and factors discussed in reports filed with the Securities and
Exchange Commission ("SEC") by Vistra Energy from time to time,
including the uncertainties and risks discussed in the sections
entitled "Risk Factors" and "Forward-Looking Statements" in Vistra
Energy's quarterly report on Form 10-Q for the fiscal quarter ended
June 30, 2018.
Any forward-looking statement speaks only at the date on
which it is made, and except as may be required by law, Vistra
Energy will not undertake any 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 Per Share
Amounts)
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating revenues
(Note 5)
|
$
|
2,574
|
|
|
$
|
1,296
|
|
|
$
|
3,338
|
|
|
$
|
2,653
|
|
Fuel, purchased power
costs and delivery fees
|
(1,216)
|
|
|
(729)
|
|
|
(1,866)
|
|
|
(1,411)
|
|
Operating
costs
|
(386)
|
|
|
(195)
|
|
|
(580)
|
|
|
(409)
|
|
Depreciation and
amortization
|
(389)
|
|
|
(172)
|
|
|
(542)
|
|
|
(341)
|
|
Selling, general and
administrative expenses
|
(352)
|
|
|
(147)
|
|
|
(514)
|
|
|
(285)
|
|
Operating income
(loss)
|
231
|
|
|
53
|
|
|
(164)
|
|
|
207
|
|
Other income (Note
19)
|
7
|
|
|
9
|
|
|
18
|
|
|
18
|
|
Other deductions
(Note 19)
|
(1)
|
|
|
(5)
|
|
|
(3)
|
|
|
(5)
|
|
Interest expense and
related charges (Note 19)
|
(146)
|
|
|
(69)
|
|
|
(137)
|
|
|
(93)
|
|
Impacts of Tax
Receivable Agreement (Note 8)
|
(64)
|
|
|
(22)
|
|
|
(82)
|
|
|
(42)
|
|
Equity in earnings of
unconsolidated investment
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
Income (loss) before
income taxes
|
31
|
|
|
(34)
|
|
|
(364)
|
|
|
85
|
|
Income tax benefit
(expense) (Note 7)
|
74
|
|
|
8
|
|
|
163
|
|
|
(33)
|
|
Net income
(loss)
|
$
|
105
|
|
|
$
|
(26)
|
|
|
$
|
(201)
|
|
|
$
|
52
|
|
Less: Net loss
attributable to noncontrolling interest
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
Net income (loss)
attributable to Vistra Energy
|
$
|
108
|
|
|
$
|
(26)
|
|
|
$
|
(198)
|
|
|
$
|
52
|
|
Weighted average
shares of common stock outstanding:
|
|
|
|
|
|
|
|
Basic
|
526,332,862
|
|
|
427,587,401
|
|
|
477,662,016
|
|
|
427,585,381
|
|
Diluted
|
533,786,824
|
|
|
427,587,401
|
|
|
477,662,016
|
|
|
427,846,563
|
|
Net income (loss) per
weighted average share of common stock outstanding:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.21
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.41)
|
|
|
$
|
0.12
|
|
Diluted
|
$
|
0.20
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.41)
|
|
|
$
|
0.12
|
|
VISTRA ENERGY
CORP.
CONDENSED
STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited)
(Millions of Dollars)
|
|
|
Six Months Ended
June 30,
|
|
2018
|
|
2017
|
Cash flows —
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
(201)
|
|
|
$
|
52
|
|
Adjustments to
reconcile net income (loss) to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
619
|
|
|
437
|
|
Deferred income tax
(benefit) expense, net
|
(159)
|
|
|
29
|
|
Unrealized net (gain)
loss from mark-to-market valuations of commodities
|
199
|
|
|
(54)
|
|
Unrealized net (gain)
loss from mark-to-market valuations of interest rate
swaps
|
(86)
|
|
|
6
|
|
Equity in earnings of
unconsolidated investments
|
—
|
|
|
—
|
|
Write-off of
intangible and other assets (Note 19)
|
—
|
|
|
—
|
|
Accretion
expense
|
44
|
|
|
29
|
|
Impacts of Tax
Receivable Agreement (Note 8)
|
82
|
|
|
42
|
|
Stock-based
compensation (Note 16)
|
59
|
|
|
8
|
|
Other, net
|
(6)
|
|
|
(7)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Margin deposits,
net
|
(61)
|
|
|
147
|
|
Accrued
interest
|
(74)
|
|
|
(29)
|
|
Accrued
taxes
|
(112)
|
|
|
(73)
|
|
Accrued incentive
plan
|
(31)
|
|
|
(60)
|
|
Other operating
assets and liabilities
|
(302)
|
|
|
(194)
|
|
Cash provided by
(used in) operating activities
|
(29)
|
|
|
333
|
|
Cash flows —
financing activities:
|
|
|
|
Repayments/repurchases of debt (Note 10)
|
(1,338)
|
|
|
(24)
|
|
Stock
repurchase
|
(63)
|
|
|
—
|
|
Debt financing fee
(Note 10)
|
(46)
|
|
|
(3)
|
|
Other, net
|
4
|
|
|
—
|
|
Cash used in
financing activities
|
(1,443)
|
|
|
(27)
|
|
Cash flows —
investing activities:
|
|
|
|
Capital
expenditures
|
(153)
|
|
|
(63)
|
|
Nuclear fuel
purchases
|
(28)
|
|
|
(35)
|
|
Cash acquired in the
Merger
|
445
|
|
|
—
|
|
Solar development
expenditures (Note 3)
|
(21)
|
|
|
(96)
|
|
Proceeds from sales
of nuclear decommissioning trust fund securities (Note
19)
|
93
|
|
|
98
|
|
Investments in
nuclear decommissioning trust fund securities (Note 19)
|
(103)
|
|
|
(107)
|
|
Other, net
|
9
|
|
|
9
|
|
Cash provided by
(used in) investing activities
|
242
|
|
|
(194)
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(1,230)
|
|
|
112
|
|
Cash, cash
equivalents and restricted cash — beginning balance
|
2,046
|
|
|
1,588
|
|
Cash, cash
equivalents and restricted cash — ending balance
|
$
|
816
|
|
|
$
|
1,700
|
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - Q2 2018 ADJUSTED EBITDA
(Unaudited)
(Millions of Dollars)
|
|
Three Months Ended
June 30, 2018
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income
(loss)
|
$
|
(288)
|
|
|
$
|
679
|
|
|
$
|
23
|
|
|
$
|
(5)
|
|
|
$
|
31
|
|
|
$
|
(337)
|
|
|
$
|
103
|
|
|
$
|
2
|
|
|
$
|
105
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74)
|
|
|
(74)
|
|
|
—
|
|
|
(74)
|
|
Interest expense and
related charges
|
—
|
|
|
7
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
136
|
|
|
146
|
|
|
—
|
|
|
146
|
|
Depreciation and
amortization (a)
|
80
|
|
|
128
|
|
|
125
|
|
|
49
|
|
|
3
|
|
|
24
|
|
|
409
|
|
|
—
|
|
|
409
|
|
EBITDA before
adjustments
|
$
|
(208)
|
|
|
$
|
814
|
|
|
$
|
150
|
|
|
$
|
45
|
|
|
$
|
34
|
|
|
$
|
(251)
|
|
|
$
|
584
|
|
|
$
|
2
|
|
|
$
|
586
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
462
|
|
|
(667)
|
|
|
(1)
|
|
|
22
|
|
|
(32)
|
|
|
—
|
|
|
(216)
|
|
|
—
|
|
|
(216)
|
|
Fresh start/purchase
accounting impacts
|
15
|
|
|
(2)
|
|
|
(1)
|
|
|
4
|
|
|
8
|
|
|
—
|
|
|
24
|
|
|
1
|
|
|
25
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
64
|
|
|
—
|
|
|
64
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
42
|
|
|
—
|
|
|
42
|
|
Transition and merger
expenses
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|
148
|
|
|
154
|
|
|
2
|
|
|
156
|
|
Other, net
|
(9)
|
|
|
(4)
|
|
|
5
|
|
|
3
|
|
|
5
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Adjusted
EBITDA
|
$
|
260
|
|
|
$
|
143
|
|
|
$
|
154
|
|
|
$
|
74
|
|
|
$
|
18
|
|
|
$
|
4
|
|
|
$
|
653
|
|
|
$
|
5
|
|
|
$
|
658
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes nuclear fuel
amortization of $20 million in the ERCOT segment.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS – Q2 2017 ADJUSTED
EBITDA
(Unaudited) (Millions of
Dollars)
|
|
Three Months Ended June 30,
2017
|
|
Retail
|
|
ERCOT
|
|
Eliminations /
Corp & Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income (loss)
|
$
|
183
|
|
|
$
|
(155)
|
|
|
$
|
(104)
|
|
|
$
|
(76)
|
|
|
$
|
50
|
|
|
$
|
(26)
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
(8)
|
|
|
(8)
|
|
|
—
|
|
|
(8)
|
|
Interest expense and
related charges
|
—
|
|
|
4
|
|
|
65
|
|
|
69
|
|
|
—
|
|
|
69
|
|
Depreciation and
amortization (a)
|
108
|
|
|
71
|
|
|
10
|
|
|
189
|
|
|
—
|
|
|
189
|
|
EBITDA before adjustments
|
$
|
291
|
|
|
$
|
(80)
|
|
|
$
|
(37)
|
|
|
$
|
174
|
|
|
$
|
50
|
|
|
$
|
224
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(89)
|
|
|
157
|
|
|
(1)
|
|
|
67
|
|
|
—
|
|
|
67
|
|
Fresh start
accounting impacts
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
4
|
|
|
24
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
|
—
|
|
|
22
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Transition and merger
expenses
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
Other, net
|
(4)
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Adjusted EBITDA
|
$
|
219
|
|
|
$
|
82
|
|
|
$
|
(10)
|
|
|
$
|
291
|
|
|
$
|
54
|
|
|
$
|
345
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes nuclear fuel
amortization of $17 million in the ERCOT segment.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS – 1H 2018 ADJUSTED
EBITDA
(Unaudited) (Millions of
Dollars)
|
|
Six Months Ended June 30, 2018
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income (loss)
|
$
|
483
|
|
|
$
|
(407)
|
|
|
$
|
23
|
|
|
$
|
(5)
|
|
|
$
|
31
|
|
|
$
|
(306)
|
|
|
$
|
(181)
|
|
|
$
|
(20)
|
|
|
$
|
(201)
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(163)
|
|
|
(163)
|
|
|
—
|
|
|
(163)
|
|
Interest expense and
related charges
|
1
|
|
|
15
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
118
|
|
|
137
|
|
|
—
|
|
|
137
|
|
Depreciation and
amortization (a)
|
157
|
|
|
213
|
|
|
125
|
|
|
49
|
|
|
3
|
|
|
35
|
|
|
582
|
|
|
—
|
|
|
582
|
|
EBITDA before adjustments
|
$
|
641
|
|
|
$
|
(179)
|
|
|
$
|
150
|
|
|
$
|
45
|
|
|
$
|
34
|
|
|
$
|
(316)
|
|
|
$
|
375
|
|
|
$
|
(20)
|
|
|
$
|
355
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(193)
|
|
|
403
|
|
|
(1)
|
|
|
22
|
|
|
(32)
|
|
|
—
|
|
|
199
|
|
|
—
|
|
|
199
|
|
Fresh start/purchase
accounting impacts
|
27
|
|
|
(4)
|
|
|
(1)
|
|
|
4
|
|
|
8
|
|
|
—
|
|
|
34
|
|
|
1
|
|
|
35
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
82
|
|
|
—
|
|
|
82
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
48
|
|
|
—
|
|
|
48
|
|
Transition and merger
expenses
|
—
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|
174
|
|
|
182
|
|
|
2
|
|
|
184
|
|
Other, net
|
(21)
|
|
|
(12)
|
|
|
5
|
|
|
3
|
|
|
5
|
|
|
16
|
|
|
(4)
|
|
|
—
|
|
|
(4)
|
|
Adjusted EBITDA
|
$
|
454
|
|
|
$
|
212
|
|
|
$
|
154
|
|
|
$
|
74
|
|
|
$
|
18
|
|
|
$
|
4
|
|
|
$
|
916
|
|
|
$
|
(17)
|
|
|
$
|
899
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes nuclear fuel
amortization of $40 million in the ERCOT segment.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS – 1H 2017 ADJUSTED
EBITDA
(Unaudited) (Millions of
Dollars)
|
|
|
Six Months Ended June 30, 2017
|
|
Retail
|
|
ERCOT
|
|
Eliminations /
Corp & Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Energy
Consolidated
|
Net income (loss)
|
$
|
70
|
|
|
$
|
147
|
|
|
$
|
(202)
|
|
|
$
|
15
|
|
|
$
|
37
|
|
|
$
|
52
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
33
|
|
|
33
|
|
|
—
|
|
|
33
|
|
Interest expense and
related charges
|
—
|
|
|
5
|
|
|
88
|
|
|
93
|
|
|
—
|
|
|
93
|
|
Depreciation and
amortization (a)
|
214
|
|
|
154
|
|
|
21
|
|
|
389
|
|
|
—
|
|
|
389
|
|
EBITDA before adjustments
|
$
|
284
|
|
|
$
|
306
|
|
|
$
|
(60)
|
|
|
$
|
530
|
|
|
$
|
37
|
|
|
$
|
567
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
73
|
|
|
(127)
|
|
|
—
|
|
|
(54)
|
|
|
—
|
|
|
(54)
|
|
Fresh start
accounting impacts
|
44
|
|
|
(1)
|
|
|
—
|
|
|
43
|
|
|
8
|
|
|
51
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
42
|
|
|
42
|
|
|
—
|
|
|
42
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
9
|
|
Transition and merger
expenses
|
1
|
|
|
3
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Other, net
|
(6)
|
|
|
4
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Adjusted EBITDA
|
$
|
396
|
|
|
$
|
185
|
|
|
$
|
(5)
|
|
|
$
|
576
|
|
|
$
|
45
|
|
|
$
|
621
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes nuclear fuel
amortization of $47 million in the ERCOT segment.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - 2018
GUIDANCE
(Unaudited) (Millions of
Dollars)
|
|
Ongoing
Operations
|
|
Asset Closure
|
|
Vistra Energy
Consolidated
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net Income
|
$
|
274
|
|
|
$
|
429
|
|
|
$
|
(68)
|
|
|
$
|
(58)
|
|
|
$
|
206
|
|
|
$
|
371
|
|
Income tax
expense
|
110
|
|
|
155
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|
155
|
|
Interest expense and
related charges
|
476
|
|
|
476
|
|
|
—
|
|
|
—
|
|
|
476
|
|
|
476
|
|
Depreciation and
amortization
|
1,442
|
|
|
1,442
|
|
|
—
|
|
|
—
|
|
|
1,442
|
|
|
1,442
|
|
EBITDA before adjustments
|
$
|
2,302
|
|
|
$
|
2,502
|
|
|
$
|
(68)
|
|
|
$
|
(58)
|
|
|
$
|
2,234
|
|
|
$
|
2,444
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(63)
|
|
|
(63)
|
|
|
3
|
|
|
3
|
|
|
(60)
|
|
|
(60)
|
|
Fresh start
accounting impacts
|
54
|
|
|
54
|
|
|
(2)
|
|
|
(2)
|
|
|
52
|
|
|
52
|
|
Impacts of Tax
Receivable Agreement
|
112
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
112
|
|
Transition and merger
expenses
|
212
|
|
|
212
|
|
|
—
|
|
|
—
|
|
|
212
|
|
|
212
|
|
Other, net
|
83
|
|
|
83
|
|
|
2
|
|
|
2
|
|
|
85
|
|
|
85
|
|
Adjusted EBITDA
|
$
|
2,700
|
|
|
$
|
2,900
|
|
|
$
|
(65)
|
|
|
$
|
(55)
|
|
|
$
|
2,635
|
|
|
$
|
2,845
|
|
Interest paid,
net
|
(628)
|
|
|
(628)
|
|
|
—
|
|
|
—
|
|
|
(628)
|
|
|
(628)
|
|
Tax payments
(a)
|
(51)
|
|
|
(51)
|
|
|
—
|
|
|
—
|
|
|
(51)
|
|
|
(51)
|
|
Tax receivable
agreement payments
|
(24)
|
|
|
(24)
|
|
|
—
|
|
|
—
|
|
|
(24)
|
|
|
(24)
|
|
Working capital and
margin deposits
|
(52)
|
|
|
(52)
|
|
|
6
|
|
|
6
|
|
|
(46)
|
|
|
(46)
|
|
Reclamation and
remediation
|
(32)
|
|
|
(32)
|
|
|
(85)
|
|
|
(85)
|
|
|
(117)
|
|
|
(117)
|
|
Other changes in
operating assets and liabilities
|
(325)
|
|
|
(325)
|
|
|
(26)
|
|
|
(16)
|
|
|
(351)
|
|
|
(341)
|
|
Cash provided by operating
activities
|
$
|
1,588
|
|
|
$
|
1,788
|
|
|
$
|
(170)
|
|
|
$
|
(150)
|
|
|
$
|
1,418
|
|
|
$
|
1,638
|
|
Capital expenditures
including nuclear fuel
|
(508)
|
|
|
(508)
|
|
|
—
|
|
|
—
|
|
|
(508)
|
|
|
(508)
|
|
Solar and Moss
Landing development expenditures
|
(61)
|
|
|
(61)
|
|
|
—
|
|
|
—
|
|
|
(61)
|
|
|
(61)
|
|
Other net investing
activities
|
(8)
|
|
|
(8)
|
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
(8)
|
|
Free cash flow
|
$
|
1,011
|
|
|
$
|
1,211
|
|
|
$
|
(170)
|
|
|
$
|
(150)
|
|
|
$
|
841
|
|
|
$
|
1,061
|
|
Working capital and
margin deposits
|
52
|
|
|
52
|
|
|
(6)
|
|
|
(6)
|
|
|
46
|
|
|
46
|
|
Solar and Moss
Landing development expenditures
|
61
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
61
|
|
Taxes related to
Alcoa settlement
|
45
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
Transition and merger
expenses
|
186
|
|
|
186
|
|
|
—
|
|
|
—
|
|
|
186
|
|
|
186
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
|
26
|
|
|
26
|
|
Transition capital
expenditures
|
45
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
Adjusted free cash flow
|
$
|
1,400
|
|
|
$
|
1,600
|
|
|
$
|
(150)
|
|
|
$
|
(130)
|
|
|
$
|
1,250
|
|
|
$
|
1,470
|
|
|
|
|
|
|
(a)
|
Includes state tax
payments.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - 2019
GUIDANCE
(Unaudited) (Millions of
Dollars)
|
|
Ongoing
Operations
|
|
Asset Closure
|
|
Vistra Energy
Consolidated
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net Income
|
$
|
946
|
|
|
$
|
1,181
|
|
|
$
|
(70)
|
|
|
$
|
(60)
|
|
|
$
|
876
|
|
|
$
|
1,121
|
|
Income tax
expense
|
264
|
|
|
329
|
|
|
—
|
|
|
—
|
|
|
264
|
|
|
329
|
|
Interest expense and
related charges
|
587
|
|
|
587
|
|
|
—
|
|
|
—
|
|
|
587
|
|
|
587
|
|
Depreciation and
amortization
|
1,558
|
|
|
1,558
|
|
|
—
|
|
|
—
|
|
|
1,558
|
|
|
1,558
|
|
EBITDA before adjustments
|
$
|
3,355
|
|
|
$
|
3,655
|
|
|
$
|
(70)
|
|
|
$
|
(60)
|
|
|
$
|
3,285
|
|
|
$
|
3,595
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(352)
|
|
|
(352)
|
|
|
—
|
|
|
—
|
|
|
(352)
|
|
|
(352)
|
|
Fresh start
accounting impacts
|
54
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
54
|
|
Impacts of Tax
Receivable Agreement
|
67
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
67
|
|
Transition and merger
expenses
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
Other, net
|
68
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
68
|
|
Adjusted EBITDA
|
$
|
3,200
|
|
|
$
|
3,500
|
|
|
$
|
(70)
|
|
|
$
|
(60)
|
|
|
$
|
3,130
|
|
|
$
|
3,440
|
|
Interest
payments
|
(579)
|
|
|
(579)
|
|
|
—
|
|
|
—
|
|
|
(579)
|
|
|
(579)
|
|
Tax
payments (a)
|
111
|
|
|
111
|
|
|
—
|
|
|
—
|
|
|
111
|
|
|
111
|
|
Working capital and
margin deposits
|
73
|
|
|
73
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
73
|
|
Reclamation and
remediation
|
(73)
|
|
|
(73)
|
|
|
(123)
|
|
|
(123)
|
|
|
(196)
|
|
|
(196)
|
|
Other changes in
operating assets and liabilities
|
(34)
|
|
|
(34)
|
|
|
33
|
|
|
43
|
|
|
(1)
|
|
|
9
|
|
Cash provided by operating
activities
|
$
|
2,698
|
|
|
$
|
2,998
|
|
|
$
|
(160)
|
|
|
$
|
(140)
|
|
|
$
|
2,538
|
|
|
$
|
2,858
|
|
Capital expenditures
including nuclear fuel
|
(606)
|
|
|
(606)
|
|
|
—
|
|
|
—
|
|
|
(606)
|
|
|
(606)
|
|
Solar and Moss
Landing development expenditures
|
(251)
|
|
|
(251)
|
|
|
—
|
|
|
—
|
|
|
(251)
|
|
|
(251)
|
|
Free cash flow
|
$
|
1,841
|
|
|
$
|
2,141
|
|
|
$
|
(160)
|
|
|
$
|
(140)
|
|
|
$
|
1,681
|
|
|
$
|
2,001
|
|
Working capital and
margin deposits
|
(73)
|
|
|
(73)
|
|
|
—
|
|
|
—
|
|
|
(73)
|
|
|
(73)
|
|
Solar and Moss
Landing development expenditures
|
251
|
|
|
251
|
|
|
—
|
|
|
—
|
|
|
251
|
|
|
251
|
|
Taxes related to
Alcoa Settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Transition and merger
expenses
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Transition capital
expenditures
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
Adjusted free cash flow
|
$
|
2,050
|
|
|
$
|
2,350
|
|
|
$
|
(160)
|
|
|
$
|
(140)
|
|
|
$
|
1,890
|
|
|
$
|
2,210
|
|
|
|
|
|
|
|
(a)
|
Includes state tax
payments.
|
View original content with
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SOURCE Vistra Energy