IRVING, Texas, Feb. 28, 2020 /PRNewswire/ -- Vistra Energy
Corp. (NYSE: VST):
Financial Highlights
- Delivered 2019 Ongoing Operations Adjusted EBITDA1
of $3,393 million and Net Income from
Ongoing Operations of $1,035 million,
representing the fourth year in a row Vistra's financial results
have come in above the midpoint of Vistra's guidance.
- Delivered 2019 Ongoing Operations Adjusted Free Cash Flow
before Growth (FCFbG)1 of $2,437
million and Operating Cash Flow from Ongoing Operations of
$2,736 million—results that are
$187 million above the guidance
midpoint and $137 million above the
high-end of the increased guidance range as a result of higher
EBITDA, capital expenditure discipline, and the early receipt of
$93 million of alternative minimum
tax credit refunds that were anticipated in 2020; results reflect a
free cash flow conversion ratio of nearly 72 percent.
- Reaffirmed 2020 Ongoing Operations Adjusted EBITDA and Ongoing
Operations Adjusted FCFbG guidance ranges of $3.285 to $3.585
billion and $2.16 to
$2.46 billion1,
respectively.
- Achieved $565 million of the
projected $715 million of Dynegy
merger synergy and Operations Performance Initiative EBITDA value
lever targets by year-end 2019; the $715
million target is an increase of more than 100% from the
$350 million per year of EBITDA value
lever targets announced in October of 2017. Vistra expects to
realize and achieve the EBITDA value lever targets as follows:
|
Realized in
Year
|
Achieved by
YE
|
2019
|
$490
|
$565
|
2020
|
$590
|
$665
|
2021
|
$685
|
$715
|
Capital Allocation Highlights
- Executed approximately $1.418
billion of the previously authorized $1.75 billion share repurchase program as of
Feb. 24, 2020, resulting in net
shares outstanding of approximately 487.7 million as of the same
date.
- Paid quarterly dividend of $0.125
per share on Dec. 30, 2019 to
shareholders of record as of Dec. 16,
2019, or $0.50 per share on an
annualized basis.
- Announced an 8% increase to the annual dividend program, an
expected $0.54 per share on an annual
basis; initial quarterly dividend of $0.135 per share to be paid on March 31, 2020 to shareholders of record as of
March 17, 2020.
- Reduced after-tax interest expense by approximately
$95 million in 2019 via multiple
financing transactions, including approximately $600 million of optional debt and preferred stock
repayments and another approximately $8.3
billion of refinancings; Vistra continues to progress toward
its long-term leverage target of approximately 2.5x net debt to
EBITDA.
Growth and Sustainability Highlights
- Closed both the Crius Energy Trust and Ambit Energy
acquisitions, making Vistra the largest company in the high-margin
competitive residential electricity markets in the country and
increasing Vistra's average generation-to-retail load match to
nearly 60%.
- Introduced two new retail brands, Brighten Energy and Better
Buy, in Illinois, Ohio, and Pennsylvania, and launched the first of their
kind, innovative, and market-leading products, TXU Energy Free Pass
and TXU Energy Pure Solar, out of the company's flagship brand, TXU
Energy, while growing residential customer counts in ERCOT.
- Announced greenhouse gas emissions reduction targets of greater
than 50% by 2030 and greater than 80% by 2050, each as compared to
a 2010 baseline, with aspirations to achieve net-zero emissions by
2050, assuming necessary advancements in technology and supportive
market constructs and public policy.
- Joined the Climate Leadership Council as a founding member,
taking a leadership role in the promotion of a market-based
carbon-pricing program with a dividend plan and carbon border
adjustment as the most effective and equitable manner of achieving
economy-wide decarbonization while preserving the strengths of the
U.S. economy.
- Continued to advance the company's battery storage business in
California with the 300 MW, 1,200
MWh Moss Landing project under construction and executing an
agreement to develop a 20 MW battery storage project at the
company's Oakland site.
- Retired approximately 2.0 GW of coal-fueled generation in
downstate Illinois in compliance
with the Illinois' Multi-Pollutant
Standard rule changes and supported the Coal to Solar and Energy
Storage Act to repurpose the coal closure sites and bring economic
vitality to the affected communities.
(1)
|
Excludes the Asset
Closure segment. Adjusted EBITDA and Adjusted FCFbG are non-GAAP
financial measures. See the "Non-GAAP Reconciliation" tables for
further details.
|
Summary of
Financial Results for Full Year 2019 and the Fourth Quarter Ended
Dec. 31, 2019
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
($ in
millions)
|
|
Dec. 31,
2019
|
Dec. 31,
20182
|
|
Dec. 31,
2019
|
Net Income
|
|
$
233
|
$
(186)
|
|
$
926
|
Ongoing Operations
Net Income1
|
|
$
240
|
$
(166)
|
|
$
1,035
|
Ongoing Operations
Adjusted EBITDA1
|
|
$
775
|
$
720
|
|
$
3,393
|
Operating Cash
Flow
|
|
|
|
|
$
2,736
|
Ongoing Operations
Adjusted FCFbG1
|
|
|
|
|
$
2,437
|
Adjusted EBITDA by
Segment
|
|
|
|
|
|
Retail
|
|
$
343
|
$
250
|
|
$
807
|
ERCOT
|
|
$
187
|
$
139
|
|
$
1,370
|
PJM
|
|
$
171
|
$
195
|
|
$
760
|
NY/NE
|
|
$
49
|
$
108
|
|
$
307
|
MISO
|
|
$
12
|
$
10
|
|
$
103
|
CAISO/Corp
|
|
$
13
|
$
18
|
|
$
46
|
Asset
Closure
|
|
$
(4)
|
$
(20)
|
|
$
(68)
|
For the three months ended Dec. 31,
2019, Vistra reported Net Income from Ongoing
Operations1 of $240 million and Adjusted EBITDA
from Ongoing Operations1 of $775
million. Vistra's fourth quarter Adjusted EBITDA was
$55 million higher than fourth
quarter 2018 results, driven by retail acquisitions partially
offset by lower capacity revenue in generation.
For the full year of 2019, Vistra reported Net Income from
Ongoing Operations1 of $1,035
million and Adjusted EBITDA from Ongoing
Operations1 of $3,393 million. Year-to-date results were
above the midpoint of Vistra's guidance driven by higher gross
margin in the ERCOT segment.
Vistra reported fourth quarter retail Adjusted EBITDA of
$343 million, $93 million higher
than fourth quarter 2018 results, driven by the Crius and Ambit
acquisitions. Fourth quarter Adjusted EBITDA from the generation
segments totaled $432
million3, $38
million lower than fourth quarter 2018 results, due to lower
capacity payments in PJM, NY, and ISO-NE partially offset by higher
gross margin in ERCOT.
Curt Morgan, Vistra's president
and chief executive officer, said, "Vistra started the year with a
focus on execution and I am happy to announce today that once
again, for the fourth year in row—every year since Vistra has been
a public company—we delivered financial results that exceeded our
guidance midpoint. Over that same time period we have more
than doubled our EBITDA and returned nearly $5 billion of capital. We believe Vistra's
business model, which prioritizes a strong balance sheet, a
disciplined approach to capital allocation, and is comprised of
industry-leading integrated retail and generation businesses, is
well-positioned to continue to deliver strong and consistent
results in the years ahead. In 2020, Vistra is focused on further
strengthening our balance sheet and providing long-term capital
allocation clarity later in the year."
(1)
|
Excludes results from
the Asset Closure segment. Adjusted EBITDA is a non-GAAP financial
measure. See the "Non-GAAP Reconciliation" tables for further
details. Total by segment may not tie due to rounding.
|
(2)
|
2018 results for four
MISO assets retired in late 2019 were recast from the MISO segment
to the Asset Closure segment.
|
(3)
|
Generation includes
Corporate.
|
Guidance
($ in
millions)
|
2020
|
Ongoing Ops. Adj.
EBITDA1
|
$
|
3,285 –
3,585
|
Ongoing Ops. Adj.
FCFbG1
|
$
|
2,160 –
2,460
|
|
|
(1)
|
Excludes the Asset
Closure segment. Adjusted EBITDA and Adjusted FCFbG are non-GAAP
financial measures. See the "Non-GAAP Reconciliation" tables for
further details.
|
Vistra is reaffirming its 2020 Ongoing Operations Adjusted
EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of
$3,285 to $3,585 million and $2,160 to $2,460
million, respectively.
Share Repurchase Program
As of Feb. 24, 2020, Vistra has
completed approximately $1.418
billion in share repurchases under the $1.75 billion share repurchase program previously
authorized by its board of directors. Vistra has purchased
approximately 60 million shares, resulting in net shares
outstanding of approximately 487.7 million as of Feb. 24, 2020. Approximately $332 million remains available for execution
under the program as of the same date.
Financing Update
In November 2019, Vistra
Operations used the net proceeds from the issuance of $1.1 billion aggregate principal amount of new
senior secured notes - consisting of $300
million of 3.550% senior notes due 2024 and $800 million of 3.700% senior notes due 2027 -
plus approximately $799 million of
incremental borrowings under the Term Loan B-3 Facility due 2025,
to repay the entire amount outstanding of $1.897 billion of term loans under the Term Loan
B-1 Facility due 2023.
In addition, in November 2019,
Vistra Operations amended its credit facility to reduce the
interest rate applicable to its upsized $2.7
billion Term Loan B-3 Facility to a rate equal to, at the
option of the Borrower, LIBOR plus 1.75% or a base rate plus
0.75%.
As a result of these transactions, Vistra continued to reduce
its annual interest expense and extend the average maturity of its
outstanding indebtedness.
Liquidity
As of Dec. 31, 2019, Vistra had
total available liquidity of approximately $1,726 million, including cash and cash
equivalents of $300 million and
$1,426 million of availability under
its revolving credit facility. The company had $949 million of letters of credit outstanding as
of Dec. 31, 2019.
Earnings Webcast
Vistra will host a webcast today, Feb.
28, 2020, 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 impacts,
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
Meranda Cohn
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, Fortune 350
energy company based in Irving,
Texas, providing essential resources for customers,
commerce, and communities. Vistra combines an innovative,
customer-centric approach to retail with safe, reliable, diverse,
and efficient power generation. The company brings its products and
services to market in 20 states and the District of Columbia, including six of the
seven competitive retail markets in the U.S. and markets in
Canada and Japan, as well. Serving nearly 5 million
residential, commercial, and industrial retail customers with
electricity and gas, Vistra is the largest competitive residential
electricity provider in the country and offers over 40 renewable
energy plans. The company is also the largest competitive power
generator in the U.S. with a capacity of approximately 39,000
megawatts powered by a diverse portfolio of natural gas, nuclear,
coal, solar, and battery energy storage facilities. In addition,
the company is a large purchaser of wind power. The company is
currently developing the largest battery storage system of its kind
in the world – a 300-MW/1,200-MWh system in Moss Landing, California. Vistra is guided by
four core principles: we do business the right way, we work as a
team, we compete to win, and we care about our people, our
neighbors, and our stakeholders. Learn more about our
environmental, social, and governance efforts and read the
company's sustainability report at
https://www.vistraenergy.com/sustainability/
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,"
"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 and to successfully integrate
acquired businesses; (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 annual report on
Form 10-K for the year ended December 31,
2019 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
|
(Unaudited)
(Millions of Dollars, Except Per Share Amounts)
|
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2017
|
Operating
revenues
|
$
|
11,809
|
|
|
$
|
9,144
|
|
|
$
|
5,430
|
|
Fuel, purchased power
costs and delivery fees
|
(5,742)
|
|
|
(5,036)
|
|
|
(2,935)
|
|
Operating
costs
|
(1,530)
|
|
|
(1,297)
|
|
|
(973)
|
|
Depreciation and
amortization
|
(1,640)
|
|
|
(1,394)
|
|
|
(699)
|
|
Selling, general and
administrative expenses
|
(904)
|
|
|
(926)
|
|
|
(600)
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
(25)
|
|
Operating
income
|
1,993
|
|
|
491
|
|
|
198
|
|
Other
income
|
56
|
|
|
47
|
|
|
37
|
|
Other
deductions
|
(15)
|
|
|
(5)
|
|
|
(5)
|
|
Interest expense and
related charges
|
(797)
|
|
|
(572)
|
|
|
(193)
|
|
Impacts of Tax
Receivable Agreement
|
(37)
|
|
|
(79)
|
|
|
213
|
|
Equity in earnings of
unconsolidated investment
|
16
|
|
|
17
|
|
|
—
|
|
Income before income
taxes
|
1,216
|
|
|
(101)
|
|
|
250
|
|
Income tax
expense
|
(290)
|
|
|
45
|
|
|
(504)
|
|
Net income
|
$
|
926
|
|
|
$
|
(56)
|
|
|
$
|
(254)
|
|
Net loss attributable
to noncontrolling interest
|
2
|
|
|
2
|
|
|
—
|
|
Net income
attributable to Vistra Energy
|
$
|
928
|
|
|
$
|
(54)
|
|
|
$
|
(254)
|
|
VISTRA ENERGY
CORP.
CONDENSED
STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited)
(Millions of Dollars)
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
Cash flows —
operating activities:
|
|
|
|
|
|
Net income
|
$
|
926
|
|
|
$
|
(56)
|
|
|
$
|
(254)
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
1,876
|
|
|
1,533
|
|
|
835
|
|
Deferred income tax
expense, net
|
281
|
|
|
(62)
|
|
|
418
|
|
Unrealized net (gain)
loss from mark-to-market valuations of commodities
|
(696)
|
|
|
380
|
|
|
145
|
|
Unrealized net (gain)
loss from mark-to-market valuations of interest rate
swaps
|
220
|
|
|
5
|
|
|
(29)
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
25
|
|
Impacts of Tax
Receivable Agreement
|
37
|
|
|
79
|
|
|
(213)
|
|
Change in asset
retirement obligation liability
|
(48)
|
|
|
(27)
|
|
|
112
|
|
Asset retirement
obligation accretion expense
|
53
|
|
|
50
|
|
|
60
|
|
Bad debt
expense
|
82
|
|
|
55
|
|
|
39
|
|
Stock-based
compensation
|
47
|
|
|
73
|
|
|
—
|
|
Other, net
|
(12)
|
|
|
37
|
|
|
30
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts receivable -
trade
|
(88)
|
|
|
(207)
|
|
|
7
|
|
Inventories
|
(44)
|
|
|
61
|
|
|
22
|
|
Accounts payable -
trade
|
(221)
|
|
|
90
|
|
|
(30)
|
|
Commodity and other
derivative contractual assets and liabilities
|
98
|
|
|
(80)
|
|
|
(1)
|
|
Margin deposits,
net
|
170
|
|
|
(221)
|
|
|
146
|
|
Accrued
interest
|
80
|
|
|
(105)
|
|
|
(10)
|
|
Accrued
taxes
|
(4)
|
|
|
(64)
|
|
|
33
|
|
Accrued employee
incentive
|
1
|
|
|
40
|
|
|
(24)
|
|
Alcoa contract
settlement
|
—
|
|
|
—
|
|
|
238
|
|
Tax Receivable
Agreement payment
|
(2)
|
|
|
(16)
|
|
|
(26)
|
|
ARO
settlement
|
(121)
|
|
|
(100)
|
|
|
(35)
|
|
Major plant outage
deferral
|
(19)
|
|
|
(22)
|
|
|
(66)
|
|
Other - net
assets
|
(22)
|
|
|
73
|
|
|
4
|
|
Other - net
liabilities
|
142
|
|
|
(45)
|
|
|
(40)
|
|
Cash provided by
operating activities
|
2,736
|
|
|
1,471
|
|
|
1,386
|
|
Cash flows —
investing activities:
|
|
|
|
|
|
Capital expenditures,
including LTSA prepayments
|
(520)
|
|
|
(378)
|
|
|
(114)
|
|
Nuclear fuel
purchases
|
(89)
|
|
|
(118)
|
|
|
(62)
|
|
Development and
growth expenditures
|
(104)
|
|
|
(34)
|
|
|
(190)
|
|
Ambit
acquisition
|
(506)
|
|
|
—
|
|
|
—
|
|
Crius
acquisition
|
(374)
|
|
|
—
|
|
|
—
|
|
Cash acquired in the
Merger
|
—
|
|
|
445
|
|
|
—
|
|
Odessa
acquisition
|
—
|
|
|
—
|
|
|
(355)
|
|
Proceeds from sales
of nuclear decommissioning trust fund securities
|
431
|
|
|
252
|
|
|
252
|
|
Investments in
nuclear decommissioning trust fund securities
|
(453)
|
|
|
(274)
|
|
|
(272)
|
|
Proceeds from sale of
environmental allowances
|
197
|
|
|
1
|
|
|
1
|
|
Purchases of
environmental allowances
|
(322)
|
|
|
(5)
|
|
|
(3)
|
|
Other, net
|
23
|
|
|
10
|
|
|
16
|
|
Cash used in
investing activities
|
(1,717)
|
|
|
(101)
|
|
|
(727)
|
|
Cash flows —
financing activities:
|
|
|
|
|
|
Issuances of
long-term debt
|
6,507
|
|
|
1,000
|
|
|
—
|
|
Repayments/repurchases of debt
|
(7,109)
|
|
|
(3,075)
|
|
|
(191)
|
|
Net borrowings under
accounts receivable securitization program
|
111
|
|
|
339
|
|
|
—
|
|
Borrowings under
Revolving Credit Facility
|
650
|
|
|
—
|
|
|
—
|
|
Repayments under
Revolving Credit Facility
|
(300)
|
|
|
—
|
|
|
—
|
|
Debt tender offer and
other financing fees
|
(203)
|
|
|
(236)
|
|
|
(8)
|
|
Stock
repurchase
|
(656)
|
|
|
(763)
|
|
|
—
|
|
Dividends paid to
stockholders
|
(243)
|
|
|
—
|
|
|
—
|
|
Other, net
|
6
|
|
|
12
|
|
|
(2)
|
|
Cash used in
financing activities
|
(1,237)
|
|
|
(2,723)
|
|
|
(201)
|
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(218)
|
|
|
(1,353)
|
|
|
458
|
|
Cash, cash
equivalents and restricted cash — beginning balance
|
693
|
|
|
2,046
|
|
|
1,588
|
|
Cash, cash
equivalents and restricted cash — ending balance
|
$
|
475
|
|
|
$
|
693
|
|
|
$
|
2,046
|
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE
MONTHS ENDED DECEMBER 31, 2019
(Unaudited)
(Millions of Dollars)
|
|
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income
(loss)
|
$
|
132
|
|
|
$
|
22
|
|
|
$
|
121
|
|
|
$
|
66
|
|
|
$
|
31
|
|
|
$
|
(132)
|
|
|
$
|
240
|
|
|
$
|
(7)
|
|
|
$
|
233
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
20
|
|
|
—
|
|
|
20
|
|
Interest expense and
related charges (a)
|
5
|
|
|
(2)
|
|
|
2
|
|
|
1
|
|
|
(1)
|
|
|
72
|
|
|
77
|
|
|
—
|
|
|
77
|
|
Depreciation and
amortization (b)
|
88
|
|
|
143
|
|
|
137
|
|
|
53
|
|
|
7
|
|
|
18
|
|
|
446
|
|
|
—
|
|
|
446
|
|
EBITDA before
Adjustments
|
225
|
|
|
163
|
|
|
260
|
|
|
120
|
|
|
37
|
|
|
(22)
|
|
|
783
|
|
|
(7)
|
|
|
776
|
|
Unrealized net (gain)
or loss resulting from hedging transactions
|
87
|
|
|
25
|
|
|
(88)
|
|
|
(76)
|
|
|
(23)
|
|
|
4
|
|
|
(71)
|
|
|
—
|
|
|
(71)
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
Fresh start /
purchase accounting impacts
|
5
|
|
|
(3)
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
(1)
|
|
|
4
|
|
|
(1)
|
|
|
3
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
Transition and merger
expenses
|
25
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
(4)
|
|
|
8
|
|
|
33
|
|
|
—
|
|
|
33
|
|
Other, net
|
1
|
|
|
2
|
|
|
(3)
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
3
|
|
Adjusted
EBITDA
|
$
|
343
|
|
|
$
|
187
|
|
|
$
|
171
|
|
|
$
|
49
|
|
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
775
|
|
|
$
|
(4)
|
|
|
$
|
771
|
|
___________
(a)
|
Includes $55 million
of unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $20 million in the ERCOT segment.
|
VISTRA ENERGY
CORP.
|
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
|
FOR THE YEAR ENDED
DECEMBER 31, 2019
|
(Unaudited)
(Millions of Dollars)
|
|
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income
(loss)
|
$
|
134
|
|
|
$
|
1,368
|
|
|
$
|
405
|
|
|
$
|
188
|
|
|
$
|
55
|
|
|
$
|
(1,115)
|
|
|
$
|
1,035
|
|
|
$
|
(109)
|
|
|
$
|
926
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
290
|
|
|
290
|
|
|
—
|
|
|
290
|
|
Interest expense and
related charges (a)
|
21
|
|
|
(8)
|
|
|
10
|
|
|
3
|
|
|
4
|
|
|
767
|
|
|
797
|
|
|
—
|
|
|
797
|
|
Depreciation and
amortization (b)
|
292
|
|
|
581
|
|
|
537
|
|
|
208
|
|
|
19
|
|
|
76
|
|
|
1,713
|
|
|
—
|
|
|
1,713
|
|
EBITDA before
Adjustments
|
447
|
|
|
1,941
|
|
|
952
|
|
|
399
|
|
|
78
|
|
|
18
|
|
|
3,835
|
|
|
(109)
|
|
|
3,726
|
|
Unrealized net (gain)
or loss resulting from hedging transactions
|
278
|
|
|
(591)
|
|
|
(203)
|
|
|
(109)
|
|
|
(30)
|
|
|
(41)
|
|
|
(696)
|
|
|
—
|
|
|
(696)
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
42
|
|
|
54
|
|
Fresh start /
purchase accounting impacts
|
23
|
|
|
(3)
|
|
|
(2)
|
|
|
4
|
|
|
15
|
|
|
(4)
|
|
|
33
|
|
|
(3)
|
|
|
30
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
37
|
|
|
—
|
|
|
37
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
48
|
|
|
—
|
|
|
48
|
|
Transition and merger
expenses
|
49
|
|
|
11
|
|
|
6
|
|
|
4
|
|
|
21
|
|
|
24
|
|
|
115
|
|
|
—
|
|
|
115
|
|
Other, net
|
10
|
|
|
12
|
|
|
7
|
|
|
9
|
|
|
7
|
|
|
(36)
|
|
|
9
|
|
|
2
|
|
|
11
|
|
Adjusted
EBITDA
|
$
|
807
|
|
|
$
|
1,370
|
|
|
$
|
760
|
|
|
$
|
307
|
|
|
$
|
103
|
|
|
$
|
46
|
|
|
$
|
3,393
|
|
|
$
|
(68)
|
|
|
$
|
3,325
|
|
___________
|
|
|
(a)
|
Includes $220 million
of unrealized mark-to-market net losses on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $73 million in the ERCOT segment.
|
VISTRA ENERGY
CORP.
|
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
|
FOR THE THREE
MONTHS ENDED DECEMBER 31, 20181
|
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Consolidated
|
Net income
(loss)
|
$
|
315
|
|
|
$
|
(291)
|
|
|
$
|
7
|
|
|
$
|
37
|
|
|
$
|
8
|
|
|
$
|
(242)
|
|
|
$
|
(166)
|
|
|
$
|
(20)
|
|
|
$
|
(186)
|
|
Income tax
benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76)
|
|
|
(76)
|
|
|
—
|
|
|
(76)
|
|
Interest expense and
related charges (a)
|
4
|
|
|
(2)
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
275
|
|
|
281
|
|
|
—
|
|
|
281
|
|
Depreciation and
amortization (b)
|
81
|
|
|
139
|
|
|
147
|
|
|
49
|
|
|
3
|
|
|
25
|
|
|
444
|
|
|
—
|
|
|
444
|
|
EBITDA
before Adjustments
|
400
|
|
|
(154)
|
|
|
157
|
|
|
87
|
|
|
11
|
|
|
(18)
|
|
|
483
|
|
|
(20)
|
|
|
463
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(168)
|
|
|
291
|
|
|
22
|
|
|
18
|
|
|
(9)
|
|
|
19
|
|
|
173
|
|
|
—
|
|
|
173
|
|
Fresh start
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
|
|
|
8
|
|
|
2
|
|
|
2
|
|
|
(21)
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Adjusted EBITDA,
including Odessa earnout buybacks
|
$
|
250
|
|
|
$
|
141
|
|
|
$
|
195
|
|
|
$
|
108
|
|
|
$
|
10
|
|
|
$
|
18
|
|
|
$
|
722
|
|
|
$
|
(20)
|
|
|
$
|
702
|
|
Odessa earnout
buybacks
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
(2)
|
|
Adjusted
EBITDA
|
$
|
250
|
|
|
$
|
139
|
|
|
$
|
195
|
|
|
$
|
108
|
|
|
$
|
10
|
|
|
$
|
18
|
|
|
$
|
720
|
|
|
$
|
(20)
|
|
|
$
|
700
|
|
____________
|
|
|
|
1 2018 results for four MISO
assets retired in late 2019 were recast from the MISO segment to
the Asset Closure segment.
|
|
|
(a)
|
Includes $128 million
of unrealized mark-to-market net losses on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $18 million in the ERCOT segment.
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE YEAR ENDED
DECEMBER 31, 20181
(Unaudited)
(Millions of Dollars)
|
|
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Consolidated
|
Net income
(loss)
|
$
|
712
|
|
|
$
|
(55)
|
|
|
$
|
100
|
|
|
$
|
79
|
|
|
$
|
48
|
|
|
$
|
(878)
|
|
|
$
|
6
|
|
|
$
|
(62)
|
|
|
$
|
(56)
|
|
Income tax
benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45)
|
|
|
(45)
|
|
|
—
|
|
|
(45)
|
|
Interest expense and
related
charges
(a)
|
7
|
|
|
12
|
|
|
8
|
|
|
2
|
|
|
1
|
|
|
542
|
|
|
572
|
|
|
—
|
|
|
572
|
|
Depreciation and
amortization (b)
|
318
|
|
|
494
|
|
|
413
|
|
|
152
|
|
|
9
|
|
|
86
|
|
|
1,472
|
|
|
—
|
|
|
1,472
|
|
EBITDA
before Adjustments
|
1,037
|
|
|
451
|
|
|
521
|
|
|
233
|
|
|
58
|
|
|
(295)
|
|
|
2,005
|
|
|
(62)
|
|
|
1,943
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(206)
|
|
|
498
|
|
|
42
|
|
|
40
|
|
|
(9)
|
|
|
15
|
|
|
380
|
|
|
—
|
|
|
380
|
|
Fresh start
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
|
|
|
10
|
|
|
(23)
|
|
|
(3)
|
|
|
(4)
|
|
|
(7)
|
|
Adjusted EBITDA,
including Odessa earnout buybacks
|
845
|
|
|
950
|
|
|
592
|
|
|
293
|
|
|
80
|
|
|
45
|
|
|
2,805
|
|
|
(63)
|
|
|
2,742
|
|
Odessa earnout
buybacks
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
18
|
|
Adjusted
EBITDA
|
$
|
845
|
|
|
$
|
968
|
|
|
$
|
592
|
|
|
$
|
293
|
|
|
$
|
80
|
|
|
$
|
45
|
|
|
$
|
2,823
|
|
|
$
|
(63)
|
|
|
$
|
2,760
|
|
____________
|
|
|
|
1 2018 results for four MISO
assets retired in late 2019 were recast from the MISO segment to
the Asset Closure segment.
|
|
|
(a)
|
Includes $5 million
of unrealized mark-to-market net losses on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $78 million in the ERCOT segment.
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED FREE CASH FLOW
FOR YEAR ENDED
DECEMBER 31, 2019
(Unaudited)
(Millions of Dollars)
|
|
Ongoing
Operations
|
|
Asset
Closure
|
|
Vistra Energy
Consolidated
|
Adjusted
EBITDA
|
$
|
3,393
|
|
|
$
|
(68)
|
|
|
$
|
3,325
|
|
Interest paid, net
(a)
|
(500)
|
|
|
—
|
|
|
(500)
|
|
Taxes received net of
payments
|
76
|
|
—
|
|
—
|
|
|
76
|
|
Severance
|
(7)
|
|
|
(10)
|
|
|
(17)
|
|
Working capital and
margin deposits
|
35
|
|
|
(17)
|
|
|
18
|
|
Reclamation and
remediation
|
(15)
|
|
|
(101)
|
|
|
(116)
|
|
Transition and merger
expense
|
(116)
|
|
|
—
|
|
|
(116)
|
|
Changes in other
operating assets and liabilities
|
60
|
|
|
6
|
|
|
66
|
|
Cash provided by
operating activities
|
$
|
2,926
|
|
|
$
|
(190)
|
|
|
$
|
2,736
|
|
Capital expenditures
including LTSA prepayments and nuclear fuel purchases
(b)
|
(609)
|
|
|
—
|
|
|
(609)
|
|
Development and
growth expenditures
|
(104)
|
|
|
—
|
|
|
(104)
|
|
Ambit and Crius
acquisitions
|
(880)
|
|
|
—
|
|
|
(880)
|
|
Purchases and sales
of environmental credits and allowances, net
|
(125)
|
|
|
—
|
|
|
(125)
|
|
Other net investing
activities (c)
|
(4)
|
|
|
5
|
|
|
1
|
|
Free cash
flow
|
$
|
1,204
|
|
|
$
|
(185)
|
|
|
$
|
1,019
|
|
Working capital and
margin deposits
|
(35)
|
|
|
16
|
|
|
(19)
|
|
Development and
growth expenditures
|
104
|
|
|
—
|
|
|
104
|
|
Severance
|
7
|
|
|
10
|
|
|
17
|
|
Ambit and Crius
acquisitions
|
880
|
|
|
—
|
|
|
880
|
|
Purchases and sales
of environmental credits and allowances, net
|
125
|
|
|
—
|
|
|
125
|
|
Transition and merger
expense
|
116
|
|
|
—
|
|
|
116
|
|
Transition capital
expenditures
|
36
|
|
|
—
|
|
|
36
|
|
Adjusted free cash
flow before growth
|
$
|
2,437
|
|
|
$
|
(159)
|
|
|
$
|
2,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Net of interest
received.
|
(b)
|
Includes $122 million
LTSA prepaid capital expenditures.
|
(c)
|
Includes investments
in and proceeds from the nuclear decommissioning trust fund and
other net investing cash flows.
|
VISTRA ENERGY
CORP.
NON-GAAP
RECONCILIATIONS - 2020 GUIDANCE
(Unaudited)
(Millions of Dollars)
|
|
Ongoing
Operations
|
|
Asset
Closure
|
|
Vistra Energy
Consolidated
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net Income
(loss)
|
$
|
849
|
|
|
$
|
1,081
|
|
|
$
|
(95)
|
|
|
$
|
(75)
|
|
|
$
|
754
|
|
|
$
|
1,006
|
|
Income tax
expense
|
252
|
|
|
320
|
|
|
—
|
|
|
—
|
|
|
252
|
|
|
320
|
|
Interest expense and
related charges (a)
|
463
|
|
|
463
|
|
|
—
|
|
|
—
|
|
|
463
|
|
|
463
|
|
Depreciation and
amortization (b)
|
1,600
|
|
|
1,600
|
|
|
—
|
|
|
—
|
|
|
1,600
|
|
|
1,600
|
|
EBITDA before
Adjustments
|
$
|
3,164
|
|
|
$
|
3,464
|
|
|
$
|
(95)
|
|
|
$
|
(75)
|
|
|
$
|
3,069
|
|
|
$
|
3,389
|
|
Unrealized net
(gain)/loss resulting from hedging transactions
|
(29)
|
|
|
(29)
|
|
|
—
|
|
|
—
|
|
|
(29)
|
|
|
(29)
|
|
Impacts of Tax
Receivable Agreement
|
69
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
69
|
|
Non-cash compensation
expenses
|
44
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
44
|
|
Transition and merger
expenses
|
35
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
35
|
|
Other, net
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Adjusted EBITDA
guidance
|
$
|
3,285
|
|
|
$
|
3,585
|
|
|
$
|
(95)
|
|
|
$
|
(75)
|
|
|
$
|
3,190
|
|
|
$
|
3,510
|
|
Interest paid,
net
|
(543)
|
|
|
(543)
|
|
|
—
|
|
|
—
|
|
|
(543)
|
|
|
(543)
|
|
Tax (paid)/received
(c)
|
153
|
|
1
|
153
|
|
|
—
|
|
|
—
|
|
|
153
|
|
|
153
|
|
Tax receivable
agreement payments
|
(3)
|
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
Working capital and
margin deposits
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Reclamation and
remediation
|
(60)
|
|
|
(60)
|
|
|
(126)
|
|
|
(126)
|
|
|
(186)
|
|
|
(186)
|
|
Other changes in
other operating assets and liabilities
|
(80)
|
|
|
(80)
|
|
|
31
|
|
|
31
|
|
|
(49)
|
|
|
(49)
|
|
Cash provided by
operating activities
|
$
|
2,754
|
|
|
$
|
3,054
|
|
|
$
|
(190)
|
|
|
$
|
(170)
|
|
|
$
|
2,564
|
|
|
$
|
2,884
|
|
Capital expenditures
including nuclear fuel purchases and LTSA Prepayments
|
(613)
|
|
|
(613)
|
|
|
—
|
|
|
—
|
|
|
(613)
|
|
|
(613)
|
|
Solar and Moss
Landing development and other growth expenditures
|
(315)
|
|
|
(315)
|
|
|
—
|
|
|
—
|
|
|
(315)
|
|
|
(315)
|
|
(Purchase)/sale of
environmental credits and allowances
|
(39)
|
|
|
(39)
|
|
|
—
|
|
|
—
|
|
|
(39)
|
|
|
(39)
|
|
Other net investing
activities
|
(20)
|
|
|
(20)
|
|
|
—
|
|
|
—
|
|
|
(20)
|
|
|
(20)
|
|
Free cash
flow
|
$
|
1,767
|
|
|
$
|
2,067
|
|
|
$
|
(190)
|
|
|
$
|
(170)
|
|
|
$
|
1,577
|
|
|
$
|
1,897
|
|
Working capital and
margin deposits
|
(2)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(2)
|
|
Moss Landing
development and other growth expenditures
|
315
|
|
|
315
|
|
|
—
|
|
|
—
|
|
|
315
|
|
|
315
|
|
Purchase/(sale) of
environmental credits and allowances
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
Transition and merger
expenses
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
38
|
|
Transition capital
expenditures
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
Adjusted free cash
flow before growth guidance
|
$
|
2,160
|
|
|
$
|
2,460
|
|
|
$
|
(190)
|
|
|
$
|
(170)
|
|
|
$
|
1,970
|
|
|
$
|
2,290
|
|
____________
|
|
|
(a)
|
Includes unrealized
gain on interest rate swaps of $21 million.
|
(b)
|
Includes nuclear fuel
amortization of $74 million.
|
(c)
|
Includes state tax
payments. Does not reflect the early receipt of $93 million of
alternative minimum tax credit refunds in 2019.
|
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SOURCE Vistra Energy Corp.