IRVING, Texas, Feb. 28, 2019 /PRNewswire/ -- Vistra Energy
Corp. (NYSE: VST):
Financial Highlights
- Delivered 2018 Ongoing Operations Adjusted EBITDA1
of $2,809 million and a Net Loss from
Ongoing Operations of $7
million—results above consensus and in-line with management
guidance midpoint; results more than $180
million above the comparable guidance midpoint when
utilizing original guidance curve dates of October 2017.
- Delivered 2018 Ongoing Operations Adjusted FCFbG1 of
$1,611 million and Operating Cash
Flow of $1,471 million—results above
the high-end of the guidance range and reflecting a free cash flow
conversion ratio of nearly 60 percent.
- Reaffirmed 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 expected 2019 EBITDA to free cash flow
conversion of approximately 66 percent.
- Continued rotation of its shareholder base, with Vanguard and
Fidelity replacing Apollo and Oaktree as Vistra's second and third
largest shareholders, respectively, according to each firm's most
recent filing with the Securities and Exchange Commission.
Capital Allocation Highlights
- Announced $1.75 billion in share
repurchase authorizations; approximately $937 million executed through Feb. 15, 2019, reducing shares outstanding to
approximately 486 million shares as of the same date, approximately
7 percent lower than Vistra's share count as of the Dynegy merger
close on April 9, 2018.
- Adopted annual dividend program of an expected $0.50 per share on an annual basis and announced
initial quarterly dividend of $0.125
per share to be paid on March 29,
2019 to shareholders of record as of March 15, 2019; Vistra management anticipates an
annual dividend growth rate in the range of approximately 6-8
percent per share.
- Reduced annual interest expense by approximately $210 million through the refinancing and
repayment of approximately $13
billion aggregate principal amount of indebtedness and
revolving credit commitments through Feb.
21, 2019; Vistra believes it is on-track to achieve leverage
target of approximately 2.5x net debt to EBITDA3 (or
approximately 2.7x gross debt to EBITDA) by year-end 2020.
Growth Highlights
- Closed merger with Dynegy ahead of schedule and without any
required divestiture of ERCOT gas-fueled power plants; increased
projected Dynegy merger EBITDA value lever targets by more than 60
percent to $565 million and
additional after-tax free cash flow value lever targets by more
than 375 percent to $310 million as
compared to initial expectations at the time of the merger
announcement. 2018 results ahead of schedule, with Vistra
expected to realize and achieve EBITDA value lever targets as
follows:
|
Realized in
Year
|
Achieved by
YE
|
2018
|
$195mm
|
$385mm
|
2019
|
$430mm
|
$515mm
|
2020
|
$540mm
|
$565mm
|
2021
|
$565mm
|
|
- Grew ERCOT residential retail customer counts by 15,000
residential customers, launched new digital platform for
multifamily customers, and enhanced customer experience
initiative.
- Announced Moss Landing battery
storage project, a 300-megawatt / 1,200-megawatt hour battery
project with an associated 20-year resource adequacy contract that
will be the largest of its kind in the world.
- Entered renewable market with commercial operations of
180-megawatt Upton 2 solar
facility on June 1, 2018 and
10-megawatt / 42-megawatt hour Upton 2 battery project on Dec. 31, 2018.
- Announced agreement to acquire Crius Energy Trust at an
estimated 4.0 times EV/EBITDA multiple, accretive to both EBITDA
and FCF and exceeding Vistra's investment threshold of mid- to
high-teens unlevered returns; accelerates Vistra's Midwest and
Northeast growth strategy via Crius Energy's presence in 19 states
and the District of Columbia and
establishes a platform for future growth; closing expected to occur
in second quarter of 2019.
(1) Excludes results from the Asset Closure segment and
the net impact of the partial buybacks of the Odessa earnout in February and May.
Vistra excludes the related net cash expenditure from Adjusted
FCFbG, as the partial buybacks of the Odessa earnout are considered growth
expenditures by management. Vistra is reporting Adjusted
EBITDA on a comparable basis. Adjusted EBITDA and Adjusted
FCFbG are non-GAAP financial measures. See the "Non-GAAP
Reconciliation" tables for further details.
(2) Excludes the Asset Closure segment and the pending Crius
acquisition. Includes $430
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.
Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial
measures. See the "Non-GAAP Reconciliation" tables for
further details.
(3) Assuming approximately $400
million cash on balance sheet.
Summary of Financial Results for the Three Months and Year
Ended Dec. 31, 2018
($ in
millions)
|
|
Three Months
Ended
Dec. 31, 2018
|
|
Twelve Months
Ended Dec. 31,
2018
|
Operating
Revenues
|
|
$
|
2,584
|
|
$
|
9,144
|
Net Income
(Loss)
|
|
$
|
(186)
|
|
$
|
(56)
|
Ongoing Operations
Net Income (Loss)1
|
|
$
|
(161)
|
|
$
|
(7)
|
Ongoing Operations
Adjusted EBITDA2
|
|
$
|
719
|
|
$
|
2,809
|
- inc. Odessa
Earnout Buybacks
|
|
$
|
721
|
|
$
|
2,791
|
Operating Cash
Flow
|
|
|
|
|
$
|
1,471
|
Ongoing Operations
Adjusted FCFbG2
|
|
|
|
|
$
|
1,611
|
- inc. Odessa
Earnout Buybacks
|
|
|
|
|
$
|
1,589
|
|
|
(1) Excludes
results from the Asset Closure segment.
|
(2) Excludes results
from the Asset Closure segment and the net impact of the partial
buybacks of the Odessa earnout in February and May. Vistra
excludes the related net cash expenditure from Adjusted FCFbG, as
the partial buybacks of the Odessa earnout are considered growth
expenditures by management. Vistra is reporting Adjusted
EBITDA on a comparable basis. Adjusted EBITDA and Adjusted
FCFbG are non-GAAP financial measures. See the "Non-GAAP
Reconciliation" tables for further details.
|
For the three months ended Dec. 31,
2018, Vistra reported a Net Loss from Ongoing Operations of
$161 million and Adjusted EBITDA from Ongoing Operations of
$719 million.
For the full year, Vistra reported a Net Loss from Ongoing
Operations of $7 million and Adjusted
EBITDA from Ongoing Operations of $2,809
million excluding the net impact to Adjusted EBITDA of the
Odessa Power Plant earnout buybacks in February and May 2018.
Including these impacts, Vistra's Adjusted EBITDA from Ongoing
Operations was $2,791 million.
Also for the full year, Vistra reported Operating Cash Flow of
$1,471 million and Ongoing Operations
Adjusted Free Cash Flow before Growth of $1,611 million.
Curt Morgan, Vistra's president
and chief executive officer, commented, "The past 12 months have
been a period of transition and growth for Vistra. We
integrated Dynegy to create One Company, One Team, expanded our
generation platform into renewables with the addition of our
Upton 2 solar facility and battery
project, announced the planned development of the world's largest
battery storage project in California, and recently announced the
acquisition of Crius Energy, which will accelerate Vistra's retail
growth strategy in markets outside of Texas."
Morgan added, "I believe Vistra's strong balance sheet, low-cost
integrated power company model, with our industry-leading retail
business and commercial operations, and in-the-money power
generation, is proving out its stable earnings profile and ability
to generate significant free cash flow. This free cash flow
generation has served as the backdrop for Vistra's planned capital
allocation strategy to return capital to shareholders through
opportunistic share repurchases and a recurring dividend, while
also reducing our total debt outstanding to achieve our long-term
leverage target of 2.5 times net debt to EBITDA. We expect
2019 to be a year of execution as we continue to integrate acquired
operations while working to meet or exceed our synergy and guidance
targets."
Acquisition of Crius Energy Trust
In February 2019, Vistra announced
its agreement to acquire Crius Energy Trust for approximately
$378 million1 plus the
assumption of Crius Energy net debt of approximately $108 million. Vistra expects to achieve
$15 million of annual EBITDA
synergies and an additional $12
million of annual free cash flow synergies resulting from
supply and financing efficiencies. In addition, Vistra
expects it will avoid a cumulative $29
million of organic retail growth investment over the period
from 2019 through 2023 as a result of the acquisition. Pro
forma for the full run-rate of synergies, Vistra estimates the
purchase at approximately 4.0 times EV/EBITDA, which is projected
to be accretive to both EBITDA and free cash flow and to exceed
Vistra's investment threshold of mid- to high-teens unlevered
returns.
(1) Assumes an exchange rate of US$0.76 for each C$1.
2019 Guidance
($ in
millions)
|
|
2019
|
Ongoing Operations
Adj. EBITDA1
|
|
$
|
3,220 –
3,420
|
Ongoing Operations
Adj. FCFbG1
|
|
$
|
2,100 –
2,300
|
|
|
(1) Excludes the
Asset Closure segment and the pending Crius acquisition.
Includes $430 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. Adjusted EBITDA and Adjusted FCFbG
are non-GAAP financial measures. See the "Non-GAAP
Reconciliation" tables for further details.
|
Vistra is reaffirming 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.
Share Repurchase Program
As of Feb. 15, 2019, Vistra has
completed $937 million of the
$1.75 billion share repurchase
program authorized by its board of directors. Vistra has
purchased approximately 40 million shares, lowering Vistra's shares
outstanding to approximately 486 million as of Feb. 15, 2019. $813
million remains available for execution under the program as
of Feb. 15, 2019.
Financing Update
In February 2019, Vistra used the
net proceeds from the issuance by Vistra Operations Company LLC, a
wholly owned, indirect subsidiary of Vistra Energy, of $1,300 million aggregate principal amount of
5.625 percent senior notes due 2027 to (i) repurchase approximately
$1,193 million aggregate principal
amount of 7.375 percent senior notes due 2022, (ii) call an
additional approximately $35 million
aggregate principal amount of 7.375 percent senior notes due 2022,
and (iii) call an additional approximately $25 million aggregate principal amount of 8.034
percent senior notes due 2022. As a result of these
transactions, Vistra reduced its annual interest expense by
approximately $20 million and
extended maturities.
Liquidity
As of Dec. 31, 2018, Vistra had
total available liquidity of approximately $1.771 billion, including cash and cash
equivalents of $636 million and
$1,135 million of availability under
its revolving credit facility, which remained undrawn but had
$1,365 million of letters of credit
outstanding as of Dec. 31,
2018.
Upton 2 Battery Storage
Project
On Dec. 31, 2018, Vistra achieved
commercial operations at its 10-megawatt / 42-megawatt hour
Upton 2 battery storage project in
West Texas. Upon commercial operations, the project was the
largest energy storage project in Texas and the seventh largest in the United States.
Earnings Webcast
Vistra will host a webcast today, Feb.
28, 2019, 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
webcast 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 5,400 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, solar, and battery storage facilities. The
company is currently developing the largest battery energy storage
system of its kind in the world – a 300-MW/1,200-MWh system in
Moss Landing,
California.
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, (iv) with respect to the proposed Crius acquisition, (x)
the ability of the parties to obtain all required approvals,
including regulatory approvals and Crius unitholder approval, (y)
the parties ability to otherwise successfully consummate the
transaction, and (z) for Vistra to successfully integrate the Crius
business as currently projected, 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 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.
STATEMENTS OF
CONSOLIDATED INCOME (LOSS)
(Millions of
Dollars, Except Per Share Amounts)
|
|
Successor
|
|
|
Predecessor
|
|
Year Ended
December 31,
|
|
|
Period from
October
3, 2016
through
December 31, 2016
|
|
|
|
Period from
January
1, 2016
through
October 2, 2016
|
|
2018
|
|
2017
|
|
|
|
|
Operating
revenues
|
$
|
9,144
|
|
|
$
|
5,430
|
|
|
$
|
1,191
|
|
|
|
$
|
3,973
|
|
Fuel, purchased power
costs and delivery fees
|
(5,036)
|
|
|
(2,935)
|
|
|
(720)
|
|
|
|
(2,082)
|
|
Net gain from
commodity hedging and trading activities
|
—
|
|
|
—
|
|
|
—
|
|
|
|
282
|
|
Operating
costs
|
(1,297)
|
|
|
(973)
|
|
|
(208)
|
|
|
|
(664)
|
|
Depreciation and
amortization
|
(1,394)
|
|
|
(699)
|
|
|
(216)
|
|
|
|
(459)
|
|
Selling, general and
administrative expenses
|
(926)
|
|
|
(600)
|
|
|
(208)
|
|
|
|
(482)
|
|
Impairment of
goodwill (Note 8)
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
Impairment of
long-lived assets
|
—
|
|
|
(25)
|
|
|
—
|
|
|
|
—
|
|
Operating income
(loss)
|
491
|
|
|
198
|
|
|
(161)
|
|
|
|
568
|
|
Other income (Note
23)
|
47
|
|
|
37
|
|
|
10
|
|
|
|
19
|
|
Other deductions
(Note 23)
|
(5)
|
|
|
(5)
|
|
|
—
|
|
|
|
(75)
|
|
Interest expense and
related charges (Note 11)
|
(572)
|
|
|
(193)
|
|
|
(60)
|
|
|
|
(1,049)
|
|
Impacts of Tax
Receivable Agreement (Note 10)
|
(79)
|
|
|
213
|
|
|
(22)
|
|
|
|
—
|
|
Equity in earnings of
unconsolidated investment (Note 23)
|
17
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
Reorganization items
(Note 5)
|
—
|
|
|
—
|
|
|
—
|
|
|
|
22,121
|
|
Income (loss) before
income taxes
|
(101)
|
|
|
250
|
|
|
(233)
|
|
|
|
21,584
|
|
Income tax (expense)
benefit (Note 9)
|
45
|
|
|
(504)
|
|
|
70
|
|
|
|
1,267
|
|
Net income
(loss)
|
(56)
|
|
|
(254)
|
|
|
(163)
|
|
|
|
22,851
|
|
Less: Net loss
attributable to noncontrolling interest
|
2
|
|
|
—
|
|
|
—
|
|
|
|
|
Net loss attributable
to Vistra Energy
|
$
|
(54)
|
|
|
$
|
(254)
|
|
|
$
|
(163)
|
|
|
|
|
Weighted average
shares of common stock outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
504,954,371
|
|
|
427,761,460
|
|
|
427,560,620
|
|
|
|
|
Diluted
|
504,954,371
|
|
|
427,761,460
|
|
|
427,560,620
|
|
|
|
|
Net loss per weighted
average share of common stock outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.11)
|
|
|
$
|
(0.59)
|
|
|
$
|
(0.38)
|
|
|
|
|
Diluted
|
$
|
(0.11)
|
|
|
$
|
(0.59)
|
|
|
$
|
(0.38)
|
|
|
|
|
Dividend declared per
share of common stock
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTRA ENERGY
CORP.
STATEMENTS OF
CONSOLIDATED CASH FLOWS
(Millions of
Dollars)
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
Year Ended
December 31,
|
|
Period
from
|
|
|
|
|
|
|
|
|
|
October 3,
2016
|
|
|
Period from
January
|
|
|
|
|
|
|
through
|
|
|
1,
2016
|
|
|
|
|
|
|
December
31,
|
|
|
through
|
|
|
2018
|
|
2017
|
|
2016
|
|
|
October 2,
2016
|
|
Cash flows —
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(56)
|
|
$
|
(254)
|
|
$
|
(163)
|
|
|
$
|
22,851
|
|
Adjustments to
reconcile net income (loss) to cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,533
|
|
835
|
|
285
|
|
|
532
|
|
Deferred income tax
expense (benefit), net
|
(62)
|
|
418
|
|
(76)
|
|
|
(1,270)
|
|
Unrealized net (gain)
loss from mark-to-market valuations of commodities
|
380
|
|
145
|
|
165
|
|
|
36
|
|
Unrealized net (gain)
loss from mark-to-market valuations of interest rate
swaps
|
5
|
|
(29)
|
|
11
|
|
|
—
|
|
Gain on
extinguishment of liabilities subject to compromise (Note
6)
|
—
|
|
—
|
|
—
|
|
|
(24,344)
|
|
Net loss from
adopting fresh start reporting (Note 5)
|
—
|
|
—
|
|
—
|
|
|
2,013
|
|
Contract claims
adjustments of Predecessor (Note 5)
|
—
|
|
—
|
|
—
|
|
|
13
|
|
Impairment of
long-lived assets (Note 4)
|
—
|
|
25
|
|
—
|
|
|
—
|
|
Write-off of
intangible and other assets (Note 23)
|
—
|
|
—
|
|
—
|
|
|
45
|
|
Impacts of Tax
Receivable Agreement (Note 10)
|
79
|
|
(213)
|
|
22
|
|
|
—
|
|
Change in asset
retirement obligation liability
|
(27)
|
|
112
|
|
—
|
|
|
—
|
|
Asset Retirement
obligation accretion
|
50
|
|
60
|
|
6
|
|
|
—
|
|
Stock-based
compensation
|
73
|
|
—
|
|
—
|
|
|
—
|
|
Other, net
|
92
|
|
69
|
|
1
|
|
|
63
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Affiliate accounts
receivable/payable — net
|
—
|
|
—
|
|
—
|
|
|
31
|
|
Accounts receivable —
trade
|
(207)
|
|
7
|
|
135
|
|
|
(216)
|
|
Inventories
|
61
|
|
22
|
|
3
|
|
|
71
|
|
Accounts payable —
trade
|
90
|
|
(30)
|
|
(79)
|
|
|
26
|
|
Commodity and other
derivative contractual assets and liabilities
|
(80)
|
|
(1)
|
|
(48)
|
|
|
29
|
|
Margin deposits,
net
|
(221)
|
|
146
|
|
(193)
|
|
|
(124)
|
|
Accrued
interest
|
(105)
|
|
(10)
|
|
32
|
|
|
(10)
|
|
Accrued
taxes
|
(64)
|
|
33
|
|
12
|
|
|
(13)
|
|
Accrued employee
incentive
|
40
|
|
(24)
|
|
24
|
|
|
(30)
|
|
Alcoa contract
settlement (Note 4)
|
—
|
|
238
|
|
—
|
|
|
—
|
|
Tax Receivable
Agreement payment (Note 10)
|
(16)
|
|
(26)
|
|
—
|
|
|
—
|
|
Major plant outage
deferral
|
(22)
|
|
(66)
|
|
—
|
|
|
—
|
|
Other — net
assets
|
73
|
|
4
|
|
(2)
|
|
|
(3)
|
|
Other — net
liabilities
|
(145)
|
|
(75)
|
|
(54)
|
|
|
62
|
|
Cash provided by
(used in) operating activities
|
1,471
|
|
1,386
|
|
81
|
|
|
(238)
|
|
Cash flows —
financing activities:
|
|
|
|
|
|
|
|
|
|
Issuances of
long-term debt (Note 14)
|
1,000
|
|
—
|
|
—
|
|
|
—
|
|
Repayments/repurchases of debt (Note 14)
|
(3,075)
|
|
(191)
|
|
—
|
|
|
(2,655)
|
|
Net borrowings under
accounts receivable securitization program (Note 13)
|
339
|
|
—
|
|
—
|
|
|
—
|
|
Debt tender offer and
other debt financing fee
|
(236)
|
|
(8)
|
|
—
|
|
|
—
|
|
Stock repurchase
(Note 16)
|
(763)
|
|
—
|
|
—
|
|
|
—
|
|
Incremental Term Loan
B Facility (Note 14)
|
—
|
|
—
|
|
1,000
|
|
|
—
|
|
Special Dividend
(Note 16)
|
—
|
|
—
|
|
(992)
|
|
|
—
|
|
Net proceeds from
issuance of preferred stock (Note 5)
|
—
|
|
—
|
|
—
|
|
|
69
|
|
Payments to
extinguish claims of TCEH first lien creditors (Note 5)
|
—
|
|
—
|
|
—
|
|
|
(486)
|
|
Payment to extinguish
claims of TCEH unsecured creditors (Note 5)
|
—
|
|
—
|
|
—
|
|
|
(429)
|
|
Borrowings under TCEH
DIP Roll Facilities and DIP Facility (Note 14)
|
—
|
|
—
|
|
—
|
|
|
4,680
|
|
TCEH DIP Roll
Facilities and DIP Facility financing fees
|
—
|
|
—
|
|
—
|
|
|
(112)
|
|
Other, net
|
12
|
|
(2)
|
|
(2)
|
|
|
(8)
|
|
Cash provided by
(used in) financing activities
|
(2,723)
|
|
(201)
|
|
6
|
|
|
1,059
|
|
Cash flows —
investing activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures,
including LTSA prepayments
|
(378)
|
|
(114)
|
|
(48)
|
|
|
(230)
|
|
Nuclear fuel
purchases
|
(118)
|
|
(62)
|
|
(41)
|
|
|
(33)
|
|
Development and
growth expenditures (Note 3)
|
(34)
|
|
(190)
|
|
—
|
|
|
—
|
|
Cash acquired in the
Merger
|
445
|
|
—
|
|
—
|
|
|
—
|
|
Odessa acquisition
(Note 3)
|
—
|
|
(355)
|
|
—
|
|
|
—
|
|
Lamar and Forney
acquisition — net of cash acquired (Note 3)
|
—
|
|
—
|
|
—
|
|
|
(1,343)
|
|
Changes in restricted
cash (Predecessor)
|
—
|
|
—
|
|
—
|
|
|
233
|
|
Proceeds from sales
of nuclear decommissioning trust fund securities (Note
23)
|
252
|
|
252
|
|
25
|
|
|
201
|
|
Investments in
nuclear decommissioning trust fund securities (Note 23)
|
(274)
|
|
(272)
|
|
(30)
|
|
|
(215)
|
|
Notes/advances due
from affiliates
|
—
|
|
—
|
|
—
|
|
|
(41)
|
|
Other, net
|
6
|
|
14
|
|
1
|
|
|
8
|
|
Cash used in
investing activities
|
(101)
|
|
(727)
|
|
(93)
|
|
|
(1,420)
|
|
Net change in cash,
cash equivalents and restricted cash (Successor); Net change in
cash and cash equivalents (Predecessor)
|
(1,353)
|
|
458
|
|
(6)
|
|
|
(599)
|
|
Cash, cash
equivalents and restricted cash — beginning balance (Successor);
Cash and cash equivalents — beginning balance
(Predecessor)
|
2,046
|
|
1,588
|
|
1,594
|
|
|
1,400
|
|
Cash, cash
equivalents and restricted cash — ending balance (Successor); Cash
and cash equivalents — ending balance (Predecessor)
|
$
|
693
|
|
$
|
2,046
|
|
$
|
1,588
|
|
|
$
|
801
|
|
|
VISTRA ENERGY
CORP.
|
|
|
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
|
|
|
FOR THREE MONTHS
ENDED DECEMBER 31, 2018
|
|
|
(Unaudited)
(Millions of Dollars)
|
|
|
Three Months Ended
December 31, 2018
|
|
|
Retail
|
|
|
ERCOT
|
|
|
PJM
|
|
|
NY/NE
|
|
|
MISO
|
|
|
Eliminations
/ Corp and
Other
|
|
|
Ongoing
Operations
Consolidated
|
|
|
Asset
Closure
|
|
|
Vistra
Energy
Consolidated
|
|
Net income
(loss)
|
$
|
315
|
|
|
$
|
(291)
|
|
|
$
|
13
|
|
|
$
|
37
|
|
|
$
|
7
|
|
|
$
|
(242)
|
|
|
$
|
(161)
|
|
|
$
|
(25)
|
|
|
$
|
(186)
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76)
|
|
|
(76)
|
|
|
—
|
|
|
(76)
|
|
Interest expense and
related charges
|
4
|
|
|
(2)
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
275
|
|
|
281
|
|
|
—
|
|
|
281
|
|
Depreciation and
amortization
|
81
|
|
|
139
|
|
|
147
|
|
|
49
|
|
|
3
|
|
|
25
|
|
|
444
|
|
|
—
|
|
|
444
|
|
EBITDA
|
400
|
|
|
(154)
|
|
|
163
|
|
|
87
|
|
|
10
|
|
|
(18)
|
|
|
488
|
|
|
(25)
|
|
|
463
|
|
Unrealized net (gain)
or loss resulting from hedging transactions
|
(168)
|
|
|
291
|
|
|
22
|
|
|
18
|
|
|
(9)
|
|
|
19
|
|
|
173
|
|
|
—
|
|
|
173
|
|
Fresh Start /
Purchase Accounting Impacts
|
14
|
|
|
(2)
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|
—
|
|
|
14
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
11
|
|
Transition and merger
expenses
|
1
|
|
|
2
|
|
|
7
|
|
|
1
|
|
|
4
|
|
|
13
|
|
|
28
|
|
|
—
|
|
|
28
|
|
Other, net
|
3
|
|
|
4
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
(21)
|
|
|
(8)
|
|
|
6
|
|
|
(2)
|
|
Adjusted EBITDA,
including Odessa earnout buybacks
|
$
|
250
|
|
|
$
|
141
|
|
|
$
|
195
|
|
|
$
|
108
|
|
|
$
|
9
|
|
|
$
|
18
|
|
|
$
|
721
|
|
|
$
|
(19)
|
|
|
$
|
702
|
|
Impact of Odessa
earnout buybacks
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
(2)
|
|
Adjusted
EBITDA
|
$
|
250
|
|
|
$
|
139
|
|
|
$
|
195
|
|
|
$
|
108
|
|
|
$
|
9
|
|
|
$
|
18
|
|
|
$
|
719
|
|
|
$
|
(19)
|
|
|
$
|
700
|
|
___________
|
|
|
(a)
|
Includes nuclear fuel
amortization of $18 million in ERCOT.
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR YEAR ENDED
DECEMBER 31, 2018
(Unaudited)
(Millions of Dollars)
|
|
|
Year Ended
December 31, 2018
|
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
|
Net income
(loss)
|
$
|
712
|
|
|
$
|
(55)
|
|
|
$
|
100
|
|
|
$
|
79
|
|
|
$
|
35
|
|
|
$
|
(878)
|
|
|
$
|
(7)
|
|
|
$
|
(49)
|
|
|
$
|
(56)
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45)
|
|
|
(45)
|
|
|
—
|
|
|
(45)
|
|
Interest expense and
related charges
|
7
|
|
|
12
|
|
|
8
|
|
|
2
|
|
|
1
|
|
|
542
|
|
|
572
|
|
|
—
|
|
|
572
|
|
Depreciation and
amortization
|
318
|
|
|
494
|
|
|
413
|
|
|
152
|
|
|
9
|
|
|
86
|
|
|
1,472
|
|
|
—
|
|
|
1,472
|
|
EBITDA
|
1,037
|
|
|
451
|
|
|
521
|
|
|
233
|
|
|
45
|
|
|
(295)
|
|
|
1,992
|
|
|
(49)
|
|
|
1,943
|
|
Unrealized net (gain)
or loss resulting from hedging transactions
|
(206)
|
|
|
498
|
|
|
42
|
|
|
40
|
|
|
(9)
|
|
|
15
|
|
|
380
|
|
|
—
|
|
|
380
|
|
Fresh Start /
Purchase Accounting Impacts
|
26
|
|
|
(6)
|
|
|
(1)
|
|
|
9
|
|
|
12
|
|
|
—
|
|
|
40
|
|
|
1
|
|
|
41
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|
79
|
|
|
—
|
|
|
79
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
73
|
|
|
—
|
|
|
73
|
|
Transition and merger
expenses
|
1
|
|
|
9
|
|
|
14
|
|
|
2
|
|
|
9
|
|
|
196
|
|
|
231
|
|
|
2
|
|
|
233
|
|
Other, net
|
(13)
|
|
|
(2)
|
|
|
16
|
|
|
9
|
|
|
9
|
|
|
(23)
|
|
|
(4)
|
|
|
(3)
|
|
|
(7)
|
|
Adjusted EBITDA,
including Odessa earnout buybacks
|
$
|
845
|
|
|
$
|
950
|
|
|
$
|
592
|
|
|
$
|
293
|
|
|
$
|
66
|
|
|
$
|
45
|
|
|
$
|
2,791
|
|
|
$
|
(49)
|
|
|
$
|
2,742
|
|
Impact of Odessa
earnout buybacks
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
|
18
|
|
Adjusted
EBITDA
|
$
|
845
|
|
|
$
|
968
|
|
|
$
|
592
|
|
|
$
|
293
|
|
|
$
|
66
|
|
|
$
|
45
|
|
|
$
|
2,809
|
|
|
$
|
(49)
|
|
|
$
|
2,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________
|
|
|
(a)
|
Includes nuclear fuel
amortization of $78 million in ERCOT.
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED FREE CASH FLOW
FOR YEAR ENDED
DECEMBER 31, 2018
(Unaudited)
(Millions of Dollars)
|
|
Year Ended
December 31, 2018
|
|
Ongoing
Operations
|
|
Asset
Closure
|
|
Vistra Energy
Consolidated
|
Adjusted
EBITDA
|
$
|
2,809
|
|
|
$
|
(49)
|
|
|
$
|
2,760
|
|
Interest paid, net
(a)
|
(636)
|
|
|
—
|
|
|
(636)
|
|
Taxes paid
(b)
|
(61)
|
|
|
(14)
|
|
|
(75)
|
|
Severance
|
(2)
|
|
|
(20)
|
|
|
(22)
|
|
Working capital,
margin deposits and derivative related cash activities
|
(259)
|
|
|
—
|
|
|
(259)
|
|
Reclamation and
remediation
|
(41)
|
|
|
(59)
|
|
|
(100)
|
|
Taxes related to
Alcoa settlement
|
(45)
|
|
|
—
|
|
|
(45)
|
|
Transition and merger
expense
|
(171)
|
|
|
—
|
|
|
(171)
|
|
Transition related
Capex
|
(23)
|
|
|
—
|
|
|
(23)
|
|
Impact of Odessa
earnout buybacks on EBITDA
|
(18)
|
|
|
—
|
|
|
(18)
|
|
Changes in other
operating assets and liabilities
|
64
|
|
|
(4)
|
|
|
60
|
|
Cash provided by
operating activities
|
$
|
1,617
|
|
|
$
|
(146)
|
|
|
$
|
1,471
|
|
Capital expenditures
including LTSA prepayments and nuclear fuel purchases
(c)
|
(510)
|
|
|
—
|
|
|
(510)
|
|
Development and
growth expenditures
|
(34)
|
|
|
—
|
|
|
(34)
|
|
Other net investing
activities (d)
|
(16)
|
|
|
—
|
|
|
(16)
|
|
Free cash
flow
|
$
|
1,057
|
|
|
$
|
(146)
|
|
|
$
|
911
|
|
Working capital,
margin deposits and derivative related cash activities
|
259
|
|
|
—
|
|
|
259
|
|
Development and
growth expenditures
|
34
|
|
|
—
|
|
|
34
|
|
Severance
|
2
|
|
|
20
|
|
|
22
|
|
Taxes related to
Alcoa settlement
|
45
|
|
|
—
|
|
|
45
|
|
Transition and merger
expense
|
171
|
|
|
—
|
|
|
171
|
|
Transition related
Capex
|
23
|
|
|
—
|
|
|
23
|
|
Other
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Adjusted free cash
flow
|
$
|
1,589
|
|
|
$
|
(126)
|
|
|
$
|
1,463
|
|
Impact of Odessa
earnout buybacks on free cash flow
|
22
|
|
|
$
|
—
|
|
|
$
|
22
|
|
Adjusted free cash
flow before growth
|
$
|
1,611
|
|
|
$
|
(126)
|
|
|
$
|
1,485
|
|
|
|
(a)
|
Net of interest
received. Excludes fees paid on Vistra Operations Credit
Facility repricing in February 2018 and refinancing in June 2018,
August 2018, and December 2018.
|
(b)
|
Excludes taxes paid
related to Alcoa settlement.
|
(c)
|
Includes $114 million
LTSA financed capital expenditures.
|
(d)
|
Includes investments
in and proceeds from the nuclear decommissioning trust fund and
other net investing cash flows.
|
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
|
$
|
993
|
|
|
$
|
1,149
|
|
|
$
|
(66)
|
|
|
$
|
(56)
|
|
|
$
|
927
|
|
|
$
|
1,093
|
|
Income tax
expense
|
294
|
|
|
338
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|
338
|
|
Interest expense and
related charges
|
589
|
|
|
589
|
|
|
—
|
|
|
—
|
|
|
589
|
|
|
589
|
|
Depreciation and
amortization
|
1,550
|
|
|
1,550
|
|
|
—
|
|
|
—
|
|
|
1,550
|
|
|
1,550
|
|
EBITDA before
adjustments
|
$
|
3,426
|
|
|
$
|
3,626
|
|
|
$
|
(66)
|
|
|
$
|
(56)
|
|
|
$
|
3,360
|
|
|
$
|
3,570
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(402)
|
|
|
(402)
|
|
|
—
|
|
|
—
|
|
|
(402)
|
|
|
(402)
|
|
Fresh start /
purchase accounting impacts
|
60
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
60
|
|
Impacts of Tax
Receivable Agreement
|
63
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
63
|
|
Transition and merger
expenses
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
Other, net
|
65
|
|
|
65
|
|
|
1
|
|
|
1
|
|
|
66
|
|
|
66
|
|
Adjusted
EBITDA
|
$
|
3,220
|
|
|
$
|
3,420
|
|
|
$
|
(65)
|
|
|
$
|
(55)
|
|
|
$
|
3,155
|
|
|
$
|
3,365
|
|
Interest
payments
|
(566)
|
|
|
(566)
|
|
|
—
|
|
|
—
|
|
|
(566)
|
|
|
(566)
|
|
Tax
payments (a)
|
132
|
|
|
132
|
|
|
—
|
|
|
—
|
|
|
132
|
|
|
132
|
|
Working capital and
margin deposits
|
161
|
|
|
161
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|
161
|
|
Reclamation and
remediation
|
(60)
|
|
|
(60)
|
|
|
(118)
|
|
|
(118)
|
|
|
(178)
|
|
|
(178)
|
|
Other changes in
operating assets and liabilities
|
(58)
|
|
|
(58)
|
|
|
26
|
|
|
36
|
|
|
(32)
|
|
|
(22)
|
|
Cash provided by
operating activities
|
$
|
2,829
|
|
|
$
|
3,029
|
|
|
$
|
(157)
|
|
|
$
|
(137)
|
|
|
$
|
2,672
|
|
|
$
|
2,892
|
|
Capital expenditures
including nuclear fuel
|
(586)
|
|
|
(586)
|
|
|
—
|
|
|
—
|
|
|
(586)
|
|
|
(586)
|
|
Solar and Moss
Landing development and other growth expenditures
|
(156)
|
|
|
(156)
|
|
|
—
|
|
|
—
|
|
|
(156)
|
|
|
(156)
|
|
Other net investing
activities
|
(20)
|
|
|
(20)
|
|
|
2
|
|
|
2
|
|
|
(18)
|
|
|
(18)
|
|
Free cash
flow
|
$
|
2,067
|
|
|
$
|
2,267
|
|
|
$
|
(155)
|
|
|
$
|
(135)
|
|
|
$
|
1,912
|
|
|
$
|
2,132
|
|
Working capital and
margin deposits
|
(161)
|
|
|
(161)
|
|
|
—
|
|
|
—
|
|
|
(161)
|
|
|
(161)
|
|
Solar and Moss
Landing development and other growth expenditures
|
156
|
|
|
156
|
|
|
—
|
|
|
—
|
|
|
156
|
|
|
156
|
|
Transition and merger
expenses
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
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.
|
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SOURCE Vistra Energy