IRVING, Texas, Nov. 2, 2018 /PRNewswire/ -- Vistra Energy Corp.
(NYSE: VST):
Third Quarter Highlights
- Announced capital allocation plan:
-
- Upsizing of share repurchase program by an incremental
$1.25 billion expected to be
opportunistically executed over the next 12 to 18 months,
- Adoption by board of directors of annual dividend program
expected to begin in the first quarter of 2019 at approximately
$0.50 per share; Vistra management
anticipates an annual dividend growth rate in the range of
approximately 6-8 percent per share, and
- Expectation to achieve leverage target of approximately 2.5x
net debt to EBITDA1 (or approximately 2.7x gross debt to
EBITDA) by year-end 2020.
- Increased merger EBITDA value lever targets by an additional
$65 million to $565 million, reflecting an increase of
$15 million of synergies and
$50 million from the Operations
Performance Initiative. Expected to realize and achieve value
lever targets as follows:
|
Realized in
Year
|
Achieved by
YE
|
2018
|
$175mm
|
$360mm
|
2019
|
$425mm
|
$515mm
|
2020
|
$540mm
|
$565mm
|
2021
|
$565mm
|
|
- Narrowed and reaffirmed 2018 full-year Ongoing Operations
Adjusted EBITDA and Ongoing Operations Adjusted Free Cash Flow
before Growth (FCFbG) guidance ranges of $2.75 to $2.85
billion and $1.45 to
$1.55 billion,
respectively.2 Guidance midpoints approximately
$150 million greater than
May 2018 guidance applying
October 2017 curves.
- Narrowed and updated 2019 full-year Ongoing Operations Adjusted
EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of
$3.22 to $3.42
billion and $2.1 to
$2.3 billion,
respectively2, highlighting the company's significant
earnings power and EBITDA to free cash flow conversion of
approximately 66%.3
- Completed previously announced $500
million share repurchase program.
- Reduced annual interest expense by approximately $56 million through the refinancing and repayment
of approximately $1.5 billion
aggregate principal amount of outstanding senior notes.
- Continued strong performance from our ERCOT retail business
with organic growth resulting in residential customer counts up
1.4% year to date.
(1) Assuming approximately $400
million cash on balance sheet.
(2) Excludes results from the Asset Closure segment. Adjusted
EBITDA and Adjusted FCFbG are non-GAAP financial measures.
See the "Non-GAAP Reconciliation" tables for further details.
(3) 2019 Ongoing Operations Adjusted EBITDA guidance range includes
$425 million of synergies expected to
be realized in 2019 as compared to the full run-rate of adjusted
EBITDA value lever targets of $565
million.
Summary of Financial Results for the Third Quarter Ended
September 30, 2018 (in
millions)
($ in
millions)
|
|
Three Months
Ended
September 30, 2018
|
|
Nine Months
Ended
September 30,
2018
|
Net Income
|
|
$
|
331
|
|
$
|
130
|
Ongoing Operations
Net Income1
|
|
$
|
335
|
|
$
|
154
|
Ongoing Operations
Adjusted EBITDA1
|
|
$
|
1,153
|
|
$
|
2,069
|
- exc. Odessa
Earnout Buybacks
|
|
|
|
|
$
|
2,089
|
|
(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 September 30,
2018, Vistra reported net income from ongoing operations of
$335 million and adjusted EBITDA from
ongoing operations of $1,153
million.
Year-to-date, Vistra reported net income from ongoing operations
of $154 million and adjusted EBITDA
from ongoing operations of $2,069
million. Excluding the impact to adjusted EBITDA of
negative $20 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 from ongoing operations would have been $2,089 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, "We are excited to announce Vistra's
capital allocation program, including authorization to allocate an
additional $1.25 billion of capital
toward share repurchases and to initiate a recurring dividend in
the first quarter of 2019. Today's capital allocation
announcements are part of an ongoing commitment of returning
capital to shareholders—all with a target to achieve 2.5 times net
debt to EBITDA by year-end 2020. Vistra's resilient EBITDA
production and robust free cash flow conversion in 2018 and
expected in 2019 and beyond, stemming from the stability of our
integrated model and substantial merger value, support this diverse
capital allocation plan including a growing dividend, which we
believe will create meaningful value for our shareholders."
Guidance
($ in
millions)
|
|
2018
|
|
2019
|
Ongoing Ops. Adj.
EBITDA1
|
|
$
|
2,750 -
2,850
|
|
$
|
3,220 –
3,420
|
Ongoing Ops. Adj.
FCFbG1
|
|
$
|
1,450 -
1,550
|
|
$
|
2,100 –
2,300
|
|
(1) Excludes
results from the Asset Closure segment. Adjusted EBITDA and
Adjusted FCFbG are non-GAAP financial measures. See the
"Non-GAAP Reconciliation" tables for further details.
|
Vistra Energy is narrowing and reaffirming its 2018 Ongoing
Operations guidance ranges, forecasting Ongoing Operations Adjusted
EBITDA of $2,750 to $2,850 million and Ongoing Operations Adjusted
FCFbG of $1,450 to $1,550 million. The 2018 guidance ranges
were developed utilizing improved ERCOT forward curves as of
March 29, 2018. The 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 narrowing and updating its 2019 Ongoing
Operations guidance ranges, forecasting Ongoing Operations Adjusted
EBITDA of $3,220 to $3,420 million and Ongoing Operations Adjusted
FCFbG of $2,100 to $2,300 million.
Initial Share Repurchase Program
As of November 1, 2018, Vistra has
completed the initial $500 million
share repurchase program authorized by its board of directors on
June 12, 2018. Vistra purchased
approximately 21.4 million shares for an average price of
$23.36 per share.
Financing Update
In August 2018, Vistra Energy used
the net proceeds from the issuance by Vistra Operations Company
LLC, a wholly owned, indirect subsidiary of Vistra Energy, of
$1,000 million aggregate principal
amount of 5.50% senior notes due 2026, the net proceeds from a
$350 million accounts receivable
securitization program, and cash on hand to fund cash tender offers
to purchase $1,542 million aggregate
principal amount of the following senior notes that Vistra Energy
assumed in the merger with Dynegy:
- $26 million of 7.625% senior
notes due 2024;
- $163 million of 8.034% senior
notes due 2024;
- $669 million of 8.000% senior
notes due 2025; and
- $684 million of 8.125% senior
notes due 2026.
As a result of the transaction, Vistra reduced its annual
interest expense by approximately $56
million and extended maturities.
Liquidity
As of September 30, 2018, Vistra
had total available liquidity of approximately $2.101 billion, including cash and cash
equivalents of $811 million and
$1,290 million of availability under
its revolving credit facility, which remained undrawn but had
$1,210 million of letters of credit
outstanding as of September 30,
2018.
Plant Retirement
Vistra announced on August 24,
2018 the planned retirement of its 51-megawatt waste coal
facility, Northeastern Power Company, due to its uneconomic
operations and negative financial outlook. The plant was
retired on October 24, 2018.
Earnings Webcast
Vistra will host a webcast today, November 2, 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 before Growth" (or "Adjusted
FCFbG") (cash from operating activities excluding changes in margin
deposits and working capital and adjusted for capital expenditures
(including capital expenditures for growth investments), 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 Asset Closure segment) and "Ongoing Operations Adjusted
Free Cash Flow before Growth" or "Ongoing Operations Adjusted
FCFbG" (adjusted free cash flow before growth less cash flow from
operating activities from Asset Closure segment before growth), 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 before Growth 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 before Growth. Vistra Energy uses
Ongoing Operations Adjusted EBITDA as a measure of performance and
Ongoing Operations Adjusted Free Cash Flow before Growth 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. 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) 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; (ii)
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); (iii) actions by credit ratings
agencies and (iv) 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 and any subsequently filed quarterly reports on
Form 10-Q.
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating revenues
(Note 5)
|
$
|
3,243
|
|
|
$
|
1,833
|
|
|
$
|
6,581
|
|
|
$
|
4,487
|
|
Fuel, purchased power
costs and delivery fees
|
(1,627)
|
|
|
(838)
|
|
|
(3,492)
|
|
|
(2,250)
|
|
Operating
costs
|
(346)
|
|
|
(218)
|
|
|
(926)
|
|
|
(626)
|
|
Depreciation and
amortization
|
(426)
|
|
|
(178)
|
|
|
(967)
|
|
|
(519)
|
|
Selling, general and
administrative expenses
|
(194)
|
|
|
(147)
|
|
|
(711)
|
|
|
(434)
|
|
Operating
income
|
650
|
|
|
452
|
|
|
485
|
|
|
658
|
|
Other income (Note
20)
|
6
|
|
|
10
|
|
|
25
|
|
|
29
|
|
Other deductions
(Note 20)
|
(1)
|
|
|
—
|
|
|
(4)
|
|
|
(5)
|
|
Interest expense and
related charges (Note 20)
|
(154)
|
|
|
(76)
|
|
|
(291)
|
|
|
(169)
|
|
Impacts of Tax
Receivable Agreement (Note 8)
|
17
|
|
|
138
|
|
|
(65)
|
|
|
96
|
|
Equity in earnings of
unconsolidated investment
|
7
|
|
|
—
|
|
|
11
|
|
|
—
|
|
Income before income
taxes
|
525
|
|
|
524
|
|
|
161
|
|
|
609
|
|
Income tax expense
(Note 7)
|
(194)
|
|
|
(251)
|
|
|
(31)
|
|
|
(284)
|
|
Net income
|
$
|
331
|
|
|
$
|
273
|
|
|
$
|
130
|
|
|
$
|
325
|
|
Less: Net (income)
loss attributable to noncontrolling interest
|
1
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
Net income
attributable to Vistra Energy
|
$
|
330
|
|
|
$
|
273
|
|
|
$
|
132
|
|
|
$
|
325
|
|
Weighted average
shares of common stock outstanding:
|
|
|
|
|
|
|
|
Basic
|
533,142,189
|
|
|
427,591,426
|
|
|
500,781,573
|
|
|
427,587,404
|
|
Diluted
|
540,972,802
|
|
|
428,312,438
|
|
|
508,128,988
|
|
|
428,001,869
|
|
Net income per
weighted average share of common stock outstanding:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.62
|
|
|
$
|
0.64
|
|
|
$
|
0.26
|
|
|
$
|
0.76
|
|
Diluted
|
$
|
0.61
|
|
|
$
|
0.64
|
|
|
$
|
0.26
|
|
|
$
|
0.76
|
|
VISTRA ENERGY
CORP.
CONDENSED
STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited)
(Millions of Dollars)
|
|
|
Nine Months Ended
September 30,
|
|
2018
|
|
2017
|
|
|
|
|
Cash flows —
operating activities:
|
|
|
|
Net income
|
$
|
130
|
|
$
|
325
|
Adjustments to
reconcile net income (loss) to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,070
|
|
621
|
Deferred income tax
(benefit) expense, net
|
29
|
|
209
|
Unrealized net (gain)
loss from mark-to-market valuations of commodities
|
207
|
|
(202)
|
Unrealized net (gain)
loss from mark-to-market valuations of interest rate
swaps
|
(123)
|
|
3
|
Accretion
expense
|
37
|
|
43
|
Impacts of Tax
Receivable Agreement (Note 8)
|
65
|
|
(96)
|
Stock-based
compensation (Note 17)
|
59
|
|
13
|
Other, net
|
64
|
|
41
|
Changes in operating
assets and liabilities:
|
|
|
|
Margin deposits,
net
|
(39)
|
|
183
|
Accrued
interest
|
(59)
|
|
(26)
|
Accrued
taxes
|
(102)
|
|
4
|
Accrued incentive
plan
|
(17)
|
|
(46)
|
Other operating
assets and liabilities
|
(458)
|
|
(227)
|
Cash provided by
operating activities
|
863
|
|
845
|
Cash flows —
financing activities:
|
|
|
|
Issuances of
long-term debt (Note 11)
|
1,000
|
|
—
|
Repayments/repurchases of debt (Note 11)
|
(2,902)
|
|
(32)
|
Borrowing under
accounts receivable securitization program (Note 10)
|
350
|
|
—
|
Stock repurchase
(Note 13)
|
(414)
|
|
—
|
Debt tender offer and
other financing fees (Note 11)
|
(216)
|
|
(5)
|
Other, net
|
10
|
|
—
|
Cash used in
financing activities
|
(2,172)
|
|
(37)
|
Cash flows —
investing activities:
|
|
|
|
Capital
expenditures
|
(209)
|
|
(86)
|
Nuclear fuel
purchases
|
(66)
|
|
(56)
|
Cash acquired in the
Merger
|
445
|
|
—
|
Solar development
expenditures (Note 3)
|
(28)
|
|
(129)
|
Odessa acquisition
(Note 3)
|
—
|
|
(355)
|
Proceeds from sales
of nuclear decommissioning trust fund securities (Note
20)
|
211
|
|
154
|
Investments in
nuclear decommissioning trust fund securities (Note 20)
|
(227)
|
|
(169)
|
Other, net
|
7
|
|
10
|
Cash provided by
(used in) investing activities
|
133
|
|
(631)
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(1,176)
|
|
177
|
Cash, cash
equivalents and restricted cash — beginning balance
|
2,046
|
|
1,588
|
Cash, cash
equivalents and restricted cash — ending balance
|
$
|
870
|
|
$
|
1,765
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - SEPTEMBER 2018 QTD ADJUSTED
EBITDA
(Unaudited)
(Millions of Dollars)
|
|
|
Three Months Ended
September 30, 2018
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income
(loss)
|
$
|
(86)
|
|
|
$
|
643
|
|
|
$
|
62
|
|
|
$
|
47
|
|
|
$
|
(3)
|
|
|
$
|
(328)
|
|
|
$
|
335
|
|
|
$
|
(4)
|
|
|
$
|
331
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
194
|
|
|
194
|
|
|
—
|
|
|
194
|
|
Interest expense and
related charges
|
3
|
|
|
(2)
|
|
|
3
|
|
|
1
|
|
|
1
|
|
|
148
|
|
|
154
|
|
|
—
|
|
|
154
|
|
Depreciation and
amortization (a)
|
80
|
|
|
142
|
|
|
141
|
|
|
55
|
|
|
3
|
|
|
25
|
|
|
446
|
|
|
—
|
|
|
446
|
|
EBITDA before
Adjustments
|
$
|
(3)
|
|
|
$
|
783
|
|
|
$
|
206
|
|
|
$
|
103
|
|
|
$
|
1
|
|
|
$
|
39
|
|
|
$
|
1,129
|
|
|
$
|
(4)
|
|
|
$
|
1,125
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
154
|
|
|
(195)
|
|
|
21
|
|
|
—
|
|
|
32
|
|
|
(4)
|
|
|
8
|
|
|
—
|
|
|
8
|
|
Fresh start/purchase
accounting impacts
|
(15)
|
|
|
—
|
|
|
(1)
|
|
|
5
|
|
|
3
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
|
(8)
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17)
|
|
|
(17)
|
|
|
—
|
|
|
(17)
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|
—
|
|
|
14
|
|
Transition and merger
expenses
|
—
|
|
|
3
|
|
|
5
|
|
|
1
|
|
|
1
|
|
|
9
|
|
|
19
|
|
|
—
|
|
|
19
|
|
Other, net
|
5
|
|
|
6
|
|
|
9
|
|
|
2
|
|
|
2
|
|
|
(16)
|
|
|
8
|
|
|
(8)
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
141
|
|
|
$
|
597
|
|
|
$
|
240
|
|
|
$
|
111
|
|
|
$
|
39
|
|
|
$
|
25
|
|
|
$
|
1,153
|
|
|
$
|
(12)
|
|
|
$
|
1,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________
|
|
|
(a)
|
Includes nuclear fuel
amortization of $20 million in ERCOT.
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - SEPTEMBER 2018 YTD ADJUSTED
EBITDA
(Unaudited)
(Millions of Dollars)
|
|
|
Nine Months Ended
September 30, 2018
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income
(loss)
|
$
|
397
|
|
|
$
|
236
|
|
|
$
|
86
|
|
|
$
|
41
|
|
|
$
|
29
|
|
|
$
|
(635)
|
|
|
$
|
154
|
|
|
$
|
(24)
|
|
|
$
|
130
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
31
|
|
|
—
|
|
|
31
|
|
Interest expense and
related charges
|
3
|
|
|
13
|
|
|
5
|
|
|
1
|
|
|
1
|
|
|
268
|
|
|
291
|
|
|
—
|
|
|
291
|
|
Depreciation and
amortization (a)
|
237
|
|
|
355
|
|
|
266
|
|
|
104
|
|
|
6
|
|
|
59
|
|
|
1,027
|
|
|
—
|
|
|
1,027
|
|
EBITDA before
Adjustments
|
$
|
637
|
|
|
$
|
604
|
|
|
$
|
357
|
|
|
$
|
146
|
|
|
$
|
36
|
|
|
$
|
(277)
|
|
|
$
|
1,503
|
|
|
$
|
(24)
|
|
|
$
|
1,479
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(38)
|
|
|
207
|
|
|
20
|
|
|
22
|
|
|
—
|
|
|
(4)
|
|
|
207
|
|
|
—
|
|
|
207
|
|
Fresh start/purchase
accounting impacts
|
12
|
|
|
(4)
|
|
|
(2)
|
|
|
9
|
|
|
11
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
65
|
|
|
—
|
|
|
65
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
62
|
|
|
—
|
|
|
62
|
|
Transition and merger
expenses
|
—
|
|
|
7
|
|
|
7
|
|
|
1
|
|
|
5
|
|
|
183
|
|
|
203
|
|
|
2
|
|
|
205
|
|
Other, net
|
(16)
|
|
|
(5)
|
|
|
12
|
|
|
7
|
|
|
5
|
|
|
—
|
|
|
3
|
|
|
(7)
|
|
|
(4)
|
|
Adjusted
EBITDA
|
$
|
595
|
|
|
$
|
809
|
|
|
$
|
394
|
|
|
$
|
185
|
|
|
$
|
57
|
|
|
$
|
29
|
|
|
$
|
2,069
|
|
|
$
|
(29)
|
|
|
$
|
2,040
|
|
___________
|
|
|
(a)
|
Includes nuclear fuel
amortization of $60 million in ERCOT.
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - SEPTEMBER 2017 QTD ADJUSTED EBITDA
(Unaudited)
(Millions of Dollars)
|
|
|
Three Months Ended
September 30, 2017
|
|
Retail
|
|
ERCOT
|
|
Eliminations
/
Corp &
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Energy
Consolidated
|
Net income
(loss)
|
$
|
7
|
|
|
$
|
405
|
|
|
$
|
(203)
|
|
|
$
|
209
|
|
|
$
|
64
|
|
|
$
|
273
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
251
|
|
|
251
|
|
|
—
|
|
|
251
|
|
Interest expense and
related charges
|
—
|
|
|
9
|
|
|
67
|
|
|
76
|
|
|
—
|
|
|
76
|
|
Depreciation and
amortization (a)
|
108
|
|
|
77
|
|
|
10
|
|
|
195
|
|
|
1
|
|
|
196
|
|
EBITDA before
adjustments
|
$
|
115
|
|
|
$
|
491
|
|
|
$
|
125
|
|
|
$
|
731
|
|
|
$
|
65
|
|
|
$
|
796
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
87
|
|
|
(235)
|
|
|
—
|
|
|
(148)
|
|
|
—
|
|
|
(148)
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
24
|
|
|
24
|
|
Fresh start
accounting impacts
|
(19)
|
|
|
—
|
|
|
—
|
|
|
(19)
|
|
|
4
|
|
|
(15)
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
(138)
|
|
|
(138)
|
|
|
—
|
|
|
(138)
|
|
Reorganization items
and restructuring expenses
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Other, net
|
(7)
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Adjusted
EBITDA
|
$
|
176
|
|
|
$
|
256
|
|
|
$
|
(3)
|
|
|
$
|
429
|
|
|
$
|
93
|
|
|
$
|
522
|
|
____________
|
|
|
(a)
|
Includes nuclear fuel
amortization of $19 million in the ERCOT segment.
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - SEPTEMBER 2017 YTD ADJUSTED EBITDA
(Unaudited)
(Millions of Dollars)
|
|
|
Nine Months Ended
September 30, 2017
|
|
Retail
|
|
ERCOT
|
|
Eliminations
/
Corp &
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income
(loss)
|
$
|
77
|
|
|
$
|
552
|
|
|
$
|
(405)
|
|
|
$
|
224
|
|
|
$
|
101
|
|
|
$
|
325
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
284
|
|
|
284
|
|
|
—
|
|
|
284
|
|
Interest expense and
related charges
|
—
|
|
|
14
|
|
|
155
|
|
|
169
|
|
|
—
|
|
|
169
|
|
Depreciation and
amortization (a)
|
322
|
|
|
232
|
|
|
29
|
|
|
583
|
|
|
1
|
|
|
584
|
|
EBITDA before
adjustments
|
$
|
399
|
|
|
$
|
798
|
|
|
$
|
63
|
|
|
$
|
1,260
|
|
|
$
|
102
|
|
|
$
|
1,362
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
160
|
|
|
(362)
|
|
|
—
|
|
|
(202)
|
|
|
—
|
|
|
(202)
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
Fresh start
accounting impacts
|
24
|
|
|
(1)
|
|
|
—
|
|
|
23
|
|
|
12
|
|
|
35
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
(96)
|
|
|
(96)
|
|
|
—
|
|
|
(96)
|
|
Reorganization items
and restructuring expenses
|
2
|
|
|
1
|
|
|
12
|
|
|
15
|
|
|
—
|
|
|
15
|
|
Other, net
|
(13)
|
|
|
6
|
|
|
12
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Adjusted
EBITDA
|
$
|
572
|
|
|
$
|
442
|
|
|
$
|
(9)
|
|
|
$
|
1,005
|
|
|
$
|
138
|
|
|
$
|
1,143
|
|
____________
|
|
|
(a)
|
Includes nuclear fuel
amortization of $66 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
|
$
|
103
|
|
|
$
|
180
|
|
|
$
|
(74)
|
|
|
$
|
(64)
|
|
|
$
|
29
|
|
|
$
|
116
|
|
Income tax
expense
|
78
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
101
|
|
Interest expense and
related charges
|
474
|
|
|
474
|
|
|
—
|
|
|
—
|
|
|
474
|
|
|
474
|
|
Depreciation and
amortization
|
1,468
|
|
|
1,468
|
|
|
—
|
|
|
—
|
|
|
1,468
|
|
|
1,468
|
|
EBITDA before
adjustments
|
$
|
2,123
|
|
|
$
|
2,223
|
|
|
$
|
(74)
|
|
|
$
|
(64)
|
|
|
$
|
2,049
|
|
|
$
|
2,159
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
150
|
|
|
150
|
|
|
3
|
|
|
3
|
|
|
153
|
|
|
153
|
|
Fresh start /
purchase accounting impacts
|
63
|
|
|
63
|
|
|
(2)
|
|
|
(2)
|
|
|
61
|
|
|
61
|
|
Impacts of Tax
Receivable Agreement
|
113
|
|
|
113
|
|
|
—
|
|
|
—
|
|
|
113
|
|
|
113
|
|
Transition and merger
expenses
|
212
|
|
|
212
|
|
|
—
|
|
|
—
|
|
|
212
|
|
|
212
|
|
Other, net
|
89
|
|
|
89
|
|
|
3
|
|
|
3
|
|
|
92
|
|
|
92
|
|
Adjusted
EBITDA
|
$
|
2,750
|
|
|
$
|
2,850
|
|
|
$
|
(70)
|
|
|
$
|
(60)
|
|
|
$
|
2,680
|
|
|
$
|
2,790
|
|
Interest paid,
net
|
(628)
|
|
|
(628)
|
|
|
—
|
|
|
—
|
|
|
(628)
|
|
|
(628)
|
|
Tax payments
(a)
|
(48)
|
|
|
(48)
|
|
|
—
|
|
|
—
|
|
|
(48)
|
|
|
(48)
|
|
Tax receivable
agreement payments
|
(29)
|
|
|
(29)
|
|
|
—
|
|
|
—
|
|
|
(29)
|
|
|
(29)
|
|
Working capital and
margin deposits
|
(218)
|
|
|
(218)
|
|
|
1
|
|
|
1
|
|
|
(217)
|
|
|
(217)
|
|
Reclamation and
remediation
|
(34)
|
|
|
(34)
|
|
|
(69)
|
|
|
(69)
|
|
|
(103)
|
|
|
(103)
|
|
Other changes in
operating assets and liabilities
|
(335)
|
|
|
(335)
|
|
|
(30)
|
|
|
(20)
|
|
|
(365)
|
|
|
(355)
|
|
Cash provided by
operating activities
|
$
|
1,458
|
|
|
$
|
1,558
|
|
|
$
|
(168)
|
|
|
$
|
(148)
|
|
|
$
|
1,290
|
|
|
$
|
1,410
|
|
Capital expenditures
including nuclear fuel
|
(454)
|
|
|
(454)
|
|
|
—
|
|
|
—
|
|
|
(454)
|
|
|
(454)
|
|
Solar and Moss
Landing development expenditures
|
(71)
|
|
|
(71)
|
|
|
—
|
|
|
—
|
|
|
(71)
|
|
|
(71)
|
|
Other net investing
activities
|
(22)
|
|
|
(22)
|
|
|
3
|
|
|
3
|
|
|
(19)
|
|
|
(19)
|
|
Free cash
flow
|
$
|
911
|
|
|
$
|
1,011
|
|
|
$
|
(165)
|
|
|
$
|
(145)
|
|
|
$
|
746
|
|
|
$
|
866
|
|
Working capital and
margin deposits
|
218
|
|
|
218
|
|
|
(1)
|
|
|
(1)
|
|
|
217
|
|
|
217
|
|
Solar and Moss
Landing development expenditures
|
71
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|
71
|
|
Taxes related to
Alcoa settlement
|
45
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
Transition and merger
expenses
|
182
|
|
|
182
|
|
|
—
|
|
|
—
|
|
|
182
|
|
|
182
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
|
26
|
|
|
26
|
|
Transition capital
expenditures
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
Adjusted free cash
flow
|
$
|
1,450
|
|
|
$
|
1,550
|
|
|
$
|
(140)
|
|
|
$
|
(120)
|
|
|
$
|
1,310
|
|
|
$
|
1,430
|
|
____________
|
|
|
(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
|
$
|
944
|
|
|
$
|
1,100
|
|
|
$
|
(66)
|
|
|
$
|
(56)
|
|
|
$
|
878
|
|
|
$
|
1,044
|
|
Income tax
expense
|
283
|
|
|
327
|
|
|
—
|
|
|
—
|
|
|
283
|
|
|
327
|
|
Interest expense and
related charges
|
575
|
|
|
575
|
|
|
—
|
|
|
—
|
|
|
575
|
|
|
575
|
|
Depreciation and
amortization
|
1,558
|
|
|
1,558
|
|
|
—
|
|
|
—
|
|
|
1,558
|
|
|
1,558
|
|
EBITDA before
adjustments
|
$
|
3,360
|
|
|
$
|
3,560
|
|
|
$
|
(66)
|
|
|
$
|
(56)
|
|
|
$
|
3,294
|
|
|
$
|
3,504
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(355)
|
|
|
(355)
|
|
|
—
|
|
|
—
|
|
|
(355)
|
|
|
(355)
|
|
Fresh start /
purchase accounting impacts
|
67
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
67
|
|
Impacts of Tax
Receivable Agreement
|
67
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
67
|
|
Transition and merger
expenses
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
Other, net
|
73
|
|
|
73
|
|
|
1
|
|
|
1
|
|
|
74
|
|
|
74
|
|
Adjusted
EBITDA
|
$
|
3,220
|
|
|
$
|
3,420
|
|
|
$
|
(65)
|
|
|
$
|
(55)
|
|
|
$
|
3,155
|
|
|
$
|
3,365
|
|
Interest
payments
|
(583)
|
|
|
(583)
|
|
|
—
|
|
|
—
|
|
|
(583)
|
|
|
(583)
|
|
Tax
payments (a)
|
110
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|
110
|
|
Working capital and
margin deposits
|
81
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
81
|
|
|
81
|
|
Reclamation and
remediation
|
(60)
|
|
|
(60)
|
|
|
(118)
|
|
|
(118)
|
|
|
(178)
|
|
|
(178)
|
|
Other changes in
operating assets and liabilities
|
(5)
|
|
|
(5)
|
|
|
26
|
|
|
36
|
|
|
21
|
|
|
31
|
|
Cash provided by
operating activities
|
$
|
2,763
|
|
|
$
|
2,963
|
|
|
$
|
(157)
|
|
|
$
|
(137)
|
|
|
$
|
2,606
|
|
|
$
|
2,826
|
|
Capital expenditures
including nuclear fuel
|
(594)
|
|
|
(594)
|
|
|
—
|
|
|
—
|
|
|
(594)
|
|
|
(594)
|
|
Solar and Moss
Landing development expenditures
|
(135)
|
|
|
(135)
|
|
|
—
|
|
|
—
|
|
|
(135)
|
|
|
(135)
|
|
Other net investing
activities
|
(20)
|
|
|
(20)
|
|
|
2
|
|
|
2
|
|
|
(18)
|
|
|
(18)
|
|
Free cash
flow
|
$
|
2,014
|
|
|
$
|
2,214
|
|
|
$
|
(155)
|
|
|
$
|
(135)
|
|
|
$
|
1,859
|
|
|
$
|
2,079
|
|
Working capital and
margin deposits
|
(81)
|
|
|
(81)
|
|
|
—
|
|
|
—
|
|
|
(81)
|
|
|
(81)
|
|
Solar and Moss
Landing development expenditures
|
135
|
|
|
135
|
|
|
—
|
|
|
—
|
|
|
135
|
|
|
135
|
|
Transition and merger
expenses
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
Transition capital
expenditures
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
Adjusted free cash
flow
|
$
|
2,100
|
|
|
$
|
2,300
|
|
|
$
|
(155)
|
|
|
$
|
(135)
|
|
|
$
|
1,945
|
|
|
$
|
2,165
|
|
____________
|
|
|
(a)
|
Includes state tax
payments.
|
View original content to download
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SOURCE Vistra Energy