IRVING, Texas, Aug. 5, 2020 /PRNewswire/ -- Vistra (NYSE:
VST):
Financial Highlights
- Delivered second quarter 2020 Net Income of $164 million and Net Income from Ongoing
Operations1 of $178
million. Second quarter 2020 Ongoing Operations Adjusted
EBITDA1 was $929
million—results above expectations for the quarter.
- Reaffirmed 2020 Ongoing Operations Adjusted EBITDA1
and Ongoing Operations Adjusted Free Cash Flow before
Growth1,2 (FCFbG) guidance ranges of $3,285 to $3,585
million and $2,160 to
$2,460 million, respectively, an
expected EBITDA to free cash flow conversion of approximately 67%.
Full-year 2020 Ongoing Operations Adjusted EBITDA and Ongoing
Operations FCFbG currently tracking above the midpoint of the
guidance range.
- Paid a quarterly dividend of $0.135 per share on June
30, 2020, to shareholders of record as of June 16, 2020, or $0.54 per share on an annualized basis.
- Projected to achieve nearly $700
million of the ~$760 million
of identified Dynegy, Crius Energy (Crius), and Ambit Energy
(Ambit) transaction synergies and Operations Performance Initiative
(OPI) EBITDA value lever targets by year-end 2020. Vistra expects
to realize and achieve the EBITDA value lever targets as
follows:
|
|
|
|
|
|
|
|
|
|
Realized in
Year
|
Achieved by
YE
|
2020
|
$622
|
$697
|
2021
|
$726
|
$756
|
- Projected to achieve after-tax annual free cash flow savings
from the Dynegy merger of $300
million and $320 million by
year-end 2020 and 2021, respectively, predominantly from interest
expense savings, in addition to the net present value of tax
benefits from the merger of approximately $900 million.
ESG Highlights
- Continued investment in new carbon-free technologies with the
announcement of the expansion of both of the company's battery
energy storage projects in California. Phase II of the current battery
energy storage project at the Moss Landing Power Plant will add an
additional 100 MW/400 MWh, with Phase II commercial operations
expected to begin prior to August
2021. Additionally, the capacity of the company's planned
Oakland energy storage project has
been increased by more than 80%. These expansions bring Vistra's
total battery energy storage under contract in California to 436.25 MW/1,745 MWh. Vistra's
Moss Landing project will be the
largest of its kind in the world when it comes online.
- Published its Annual Sustainability Report, highlighting
Vistra's environmental, social, and governance (ESG) initiatives
and accomplishments and adopting the Sustainable Accounting
Standards Board (SASB) and Global Reporting Initiative (GRI)
disclosure frameworks.
- Prioritized the health and safety of its employees and
contractors by continuing temperature testing and entry
questionnaires at Vistra's corporate offices and plant sites,
instituting a work-from-home policy for all employees with
remote-work capabilities, providing proper personal protective
equipment and requiring face coverings and social distancing at
work locations, thoroughly cleaning facilities between shifts, and
shipping more than 5,000 masks to Vistra employees and their
families.
- Encouraged limiting the spread of COVID-19 by incentivizing
employees to stay home if feeling ill while quarantining with full
pay and assisting employees obtain antibody and virus testing.
- Supported customers and communities during the pandemic by
providing safe and reliable power, maintaining customer service
levels at all-time highs, donating $2
million to non-profits and social service agencies, donating
nearly 30,000 masks to local organizations, waiving late fees,
extending payment dates, arranging payment plans, and offering bill
payment assistance through TXU Energy AidSM.
- Released a statement on racial injustice, engaged employees to
discuss race in the workplace to further the company's diversity
and inclusion policies and programs, developed actions to institute
in response to the employee listening sessions, and committed
$10 million over the next five years
to support organizations working for social justice and
equity.
|
(1)
|
Excludes the Asset
Closure segment. Net Income from Ongoing Operations, Ongoing
Operations Adjusted EBITDA, and Ongoing Operations Adjusted FCFbG
are non-GAAP financial measures. See the "Non-GAAP Reconciliation"
tables for further detail.
|
|
(2)
|
Vistra has not
updated its 2020 Ongoing Operations Adjusted FCFbG guidance to
reflect the early receipt of $93 million of alternative minimum tax
(AMT) refunds in 2019 that were forecast to be received in 2020. In
accordance with the recently passed Coronavirus Aid, Relief, and
Economic Security Act (CARES Act), Vistra will accelerate its claim
of approximately $64 million of AMT refunds on its 2020 tax return.
We expect we will receive the $64 million refund in the second half
of 2020.
|
Summary of Financial Results for Second Quarter Ended
June 30, 2020
|
|
Three Months
Ended
|
|
Six Months
Ended
|
($ in
millions)
|
|
June 30,
2020
|
June 30,
2019
|
|
June 30,
2020
|
June 30,
2019
|
Net Income
|
|
$ 164
|
$ 354
|
|
$ 209
|
$ 578
|
Ongoing Operations
Net Income1
|
|
$ 178
|
$ 380
|
|
$ 240
|
$ 628
|
Ongoing Operations
Adjusted EBITDA1
|
|
$ 929
|
$ 717
|
|
$ 1,779
|
$ 1,541
|
Adjusted EBITDA by
Segment
|
|
|
|
|
|
|
Retail
|
|
$ 401
|
$ 293
|
|
$ 712
|
$ 550
|
ERCOT
|
|
$ 260
|
$ 156
|
|
$ 477
|
$ 360
|
PJM
|
|
$ 183
|
$ 167
|
|
$ 401
|
$ 368
|
NY/NE
|
|
$ 72
|
$ 91
|
|
$ 132
|
$ 177
|
MISO2
|
|
$ 3
|
$ 11
|
|
$ 31
|
$ 67
|
CAISO/Corp.
|
|
$ 10
|
$ (1)
|
|
$ 26
|
$ 19
|
Asset
Closure
|
|
$ (13)
|
$ (25)
|
|
$ (30)
|
$ (47)
|
For the three months ended June 30,
2020, Vistra reported Net Income of $164 million, Net Income from Ongoing
Operations1 of $178
million, and Ongoing Operations Adjusted EBITDA1
of $929 million. Vistra's second
quarter 2020 Net Income was $190
million lower than second quarter 2019 Net Income, driven by
a decrease in unrealized gains on hedging transactions. Vistra's
second quarter Adjusted EBITDA from Ongoing Operations2
was $212 million higher than second
quarter 2019 results, driven by the acquisitions of Ambit and Crius
in the second half of 2019, results of Vistra's OPI program, and
higher generation margins in ERCOT and PJM.
Vistra reported second quarter Adjusted EBITDA from the Retail
segment of $401 million, $108
million higher than second quarter 2019 results, driven by
the acquisitions of Crius and Ambit. Second quarter Adjusted EBITDA
from the generation3 segments, on an aggregate basis,
totaled $528 million, $104 million higher than second quarter 2019
results driven by Vistra's OPI program and higher margins in the
ERCOT and PJM segments.
For the first half of 2020, Vistra reported Net Income of
$209 million, Net Income from Ongoing
Operations1 of $240 million and Ongoing Operations
Adjusted EBITDA1 of $1,779
million. Vistra's Net Income for the first half of 2020 was
$369 million lower than first half of
2019 Net Income, driven primarily by a decrease in unrealized gains
on hedging transactions. Ongoing Operations Adjusted
EBITDA2 for the first half of 2020 was $238 million higher than the first half of 2019,
driven by higher generation margins and the acquisitions of Crius
and Ambit.
"We continue to operate during an unprecedented tail event,
proving the resilience of Vistra's business model – one that
prioritizes a strong balance sheet and low-cost, integrated
operations. Our second quarter performance is further evidence that
this business model is the right one, and stronger and more stable
than ever," said Curt Morgan,
Vistra's president and chief executive officer. "Vistra's strong
financial results are the direct result of the work of our No. 1
asset – our people – and our advantaged asset and business
positions. We are committed to the health and safety of our
employees and that includes an obligation to ensure an equitable
workplace so that all team members can achieve their career
aspirations. Vistra is prudently investing time and money in its
people, its customers, its facilities, and its communities, so that
whether faced with a pandemic, a natural disaster, or inequality
and social injustice, Vistra will be a sustainable company
providing reliable, essential electricity and needed assistance to
the communities and customers we serve, while delivering attractive
returns to our investors."
|
(1)
|
Excludes results from
the Asset Closure segment. Net Income from Ongoing Operations and
Ongoing Operations Adjusted EBITDA are non-GAAP financial measures.
See the "Non-GAAP Reconciliation" tables for further details. Total
by segment may not tie due to rounding.
|
|
(2)
|
2019 results for four
MISO assets retired in late 2019 were recast from the MISO segment
to the Asset Closure segment, resulting in an increase of $10
million and $19 million to our Q2 2019 and first half 2019 MISO
segment results, respectively.
|
|
(3)
|
Includes ERCOT, PJM,
NY/NE, MISO, and CAISO/Corp.
|
Guidance
($ in
millions)
|
2020
|
Ongoing Operations
Adjusted EBITDA1
|
$
|
3,285 –
3,585
|
Ongoing Operations
Adjusted FCFbG1,2
|
$
|
2,160 –
2,460
|
|
|
|
|
(1)
|
Excludes the Asset
Closure segment. Ongoing Operations Adjusted EBITDA and Ongoing
Operations Adjusted FCFbG are non-GAAP financial measures. See the
"Non-GAAP Reconciliation" tables for further details.
|
|
(2)
|
Vistra has not
updated its 2020 Ongoing Operations Adjusted FCFbG guidance to
reflect the early receipt of $93 million of AMT refunds in 2019
that were forecast to be received in 2020. In accordance with the
CARES Act, Vistra will accelerate its claim of approximately $64
million of AMT refunds on its 2020 tax return. We expect we will
receive the $64 million refund in the second half of
2020.
|
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, while currently tracking above both
guidance midpoints.
Capital Allocation
Vistra took further steps during the second quarter and
continuing into July 2020 to reduce
its debt obligations as it approaches its long-term leverage target
of 2.5x net debt to EBITDA. Specifically, Vistra redeemed
approximately $666 million of debt,
consisting of $500 million aggregate
principal amount of Vistra 5.875% senior unsecured notes due 2023
and approximately $166 million
aggregate principal amount of Vistra's 8.125% senior unsecured
notes due 2026. Vistra continues to prioritize debt reduction in
2020 and, as a result, has not repurchased additional shares under
its authorized share repurchase program since November 2019. Net shares outstanding are
approximately 488.8 million as of July 31,
2020. Vistra plans to announce its long-term capital
allocation plan during a virtual investor event on Sept. 29, 2020.
Liquidity
As of June 30, 2020, Vistra had
total available liquidity of approximately $1,669 million, including cash and cash
equivalents of $382 million and
$1,287 million of availability under
its revolving credit facility.
Earnings Webcast
Vistra will host a webcast today, Aug. 5,
2020, beginning at 8 a.m. ET
(7 a.m. CT) to discuss these results
and related matters. The live 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.vistracorp.com under
"Investor Relations" and then "Events & Presentations."
Participants can also listen by phone by registering here prior to
the start time of the call to receive a conference call dial-in
number. 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'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, and other items described from time to time in Vistra's
earnings releases), "Ongoing Operations Adjusted EBITDA" (adjusted
EBITDA less adjusted EBITDA from Asset Closure segment), "Net
Income from Ongoing Operations" (net income less net income 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'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's
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies.
Vistra 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 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 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's
management and board of directors have found it informative to view
the Asset Closure segment as separate and distinct from Vistra's
ongoing operations. Vistra uses Net Income from Ongoing Operations
as a non-GAAP measure that is most comparable to the GAAP measure
Net Income in order to illustrate the Company's Net Income
excluding the effects of the Asset Closure segment, as well as a
measure to compare to Ongoing Operations Adjusted EBITDA. 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@vistracorp.com
Analysts
Molly Sorg
214-812-0046
Investor@vistracorp.com
About Vistra
Vistra (NYSE: VST) is a leading, Fortune 275 integrated retail
electricity and power generation 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 wholesale 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 natural gas, Vistra is the largest competitive
residential electricity provider in the country and offers over 50
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, including natural gas,
nuclear, solar, and battery energy storage facilities. In addition,
the company is a large purchaser of wind power. The company is
currently constructing a 400-MW/1,600-MWh battery energy storage
system in Moss Landing,
California, which will be the largest of its kind in the
world when it comes online. 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 stakeholders, including our
customers, our communities where we work and live, our employees,
and our investors. Learn more about Vistra's environmental, social,
and governance efforts and read the company's sustainability report
at https://www.vistracorp.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 Corp.
("Vistra") operates and beliefs of and assumptions made by Vistra'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. 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, the potential impacts of the
COVID-19 pandemic on our results of operations, financial condition
and cash flows, 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," "confident",
"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 believes that in making any such
forward-looking statement, Vistra'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
to execute upon the contemplated strategic and performance
initiatives and to successfully integrate acquired businesses;
(iii) actions by credit ratings agencies; (iv) the severity,
magnitude and duration of pandemics, including the COVID-19
pandemic, and the resulting effects on our results of operations,
financial condition and cash flows; and (v) those additional risks
and factors discussed in reports filed with the Securities and
Exchange Commission by Vistra from time to time, including the
uncertainties and risks discussed in the sections entitled "Risk
Factors" and "Forward-Looking Statements" in Vistra'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 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 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
CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Millions of Dollars, Except Per Share
Amounts)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
revenues
|
$
|
2,509
|
|
|
$
|
2,832
|
|
|
$
|
5,367
|
|
|
$
|
5,755
|
|
Fuel, purchased power
costs and delivery fees
|
(1,029)
|
|
|
(1,139)
|
|
|
(2,362)
|
|
|
(2,600)
|
|
Operating
costs
|
(412)
|
|
|
(370)
|
|
|
(792)
|
|
|
(755)
|
|
Depreciation and
amortization
|
(455)
|
|
|
(384)
|
|
|
(875)
|
|
|
(790)
|
|
Selling, general and
administrative expenses
|
(236)
|
|
|
(210)
|
|
|
(488)
|
|
|
(392)
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
(84)
|
|
|
—
|
|
Operating
income
|
377
|
|
|
729
|
|
|
766
|
|
|
1,218
|
|
Other
income
|
5
|
|
|
13
|
|
|
12
|
|
|
39
|
|
Other
deductions
|
(4)
|
|
|
(2)
|
|
|
(35)
|
|
|
(5)
|
|
Interest expense and
related charges
|
(141)
|
|
|
(274)
|
|
|
(440)
|
|
|
(495)
|
|
Impacts of Tax
Receivable Agreement
|
(6)
|
|
|
33
|
|
|
(14)
|
|
|
36
|
|
Equity in earnings of
unconsolidated investment
|
1
|
|
|
3
|
|
|
4
|
|
|
10
|
|
Income before income
taxes
|
232
|
|
|
502
|
|
|
293
|
|
|
803
|
|
Income tax
expense
|
(68)
|
|
|
(148)
|
|
|
(84)
|
|
|
(225)
|
|
Net income
|
$
|
164
|
|
|
$
|
354
|
|
|
$
|
209
|
|
|
$
|
578
|
|
Net loss attributable
to noncontrolling interest
|
2
|
|
|
2
|
|
|
13
|
|
|
3
|
|
Net income
attributable to Vistra
|
$
|
166
|
|
|
$
|
356
|
|
|
$
|
222
|
|
|
$
|
581
|
|
|
|
|
|
|
|
|
|
VISTRA
CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Millions of Dollars)
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
Cash flows —
operating activities:
|
|
|
|
Net income
|
$
|
209
|
|
|
$
|
578
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,022
|
|
|
886
|
|
Deferred income tax
expense, net
|
73
|
|
|
217
|
|
Impairment of
long-lived assets
|
84
|
|
|
—
|
|
Loss on disposal of
investment in NELP
|
29
|
|
|
—
|
|
Unrealized net gain
from mark-to-market valuations of commodities
|
(123)
|
|
|
(703)
|
|
Unrealized net loss
from mark-to-market valuations of interest rate swaps
|
192
|
|
|
199
|
|
Asset retirement
obligation accretion expense
|
23
|
|
|
27
|
|
Impacts of Tax
Receivable Agreement
|
14
|
|
|
(36)
|
|
Stock-based
compensation
|
30
|
|
|
24
|
|
Other, net
|
55
|
|
|
73
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Margin deposits,
net
|
58
|
|
|
112
|
|
Accrued
interest
|
(6)
|
|
|
6
|
|
Accrued
taxes
|
(59)
|
|
|
(67)
|
|
Accrued employee
incentive
|
(70)
|
|
|
(72)
|
|
Other operating assets
and liabilities
|
(222)
|
|
|
(362)
|
|
Cash provided by
operating activities
|
1,309
|
|
|
882
|
|
Cash flows —
investing activities:
|
|
|
|
Capital expenditures,
including nuclear fuel purchases and LTSA prepayments
|
(588)
|
|
|
(303)
|
|
Proceeds from sales of
nuclear decommissioning trust fund securities
|
224
|
|
|
292
|
|
Investments in nuclear
decommissioning trust fund securities
|
(234)
|
|
|
(302)
|
|
Proceeds from sale of
environmental allowances
|
88
|
|
|
31
|
|
Purchases of
environmental allowances
|
(173)
|
|
|
(138)
|
|
Other, net
|
30
|
|
|
21
|
|
Cash used in investing
activities
|
(653)
|
|
|
(399)
|
|
Cash flows —
financing activities:
|
|
|
|
Issuances of long-term
debt
|
—
|
|
|
4,600
|
|
Repayments/repurchases
of debt
|
(756)
|
|
|
(4,137)
|
|
Net borrowings under
accounts receivable securitization program
|
—
|
|
|
91
|
|
Borrowings under
Revolving Credit Facility
|
925
|
|
|
—
|
|
Repayments under
Revolving Credit Facility
|
(725)
|
|
|
—
|
|
Stock
repurchase
|
—
|
|
|
(457)
|
|
Dividends paid to
stockholders
|
(132)
|
|
|
(120)
|
|
Debt tender offer and
other financing fees
|
(10)
|
|
|
(146)
|
|
Other, net
|
—
|
|
|
(1)
|
|
Cash provided by (used
in) financing activities
|
(698)
|
|
|
(170)
|
|
Net change in cash,
cash equivalents and restricted cash
|
(42)
|
|
|
313
|
|
Cash, cash
equivalents and restricted cash — beginning balance
|
475
|
|
|
693
|
|
Cash, cash
equivalents and restricted cash — ending balance
|
$
|
433
|
|
|
$
|
1,006
|
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE
MONTHS ENDED JUNE 30, 2020
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations /
Corp and Other
|
|
Ongoing Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Consolidated
|
Net income
(loss)
|
$
|
229
|
|
|
$
|
299
|
|
|
$
|
(66)
|
|
|
$
|
(18)
|
|
|
$
|
(32)
|
|
|
$
|
(234)
|
|
|
$
|
178
|
|
|
$
|
(14)
|
|
|
$
|
164
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
68
|
|
|
—
|
|
|
68
|
|
Interest expense
and
related charges (a)
|
3
|
|
|
(2)
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
138
|
|
|
141
|
|
|
—
|
|
|
141
|
|
Depreciation and
amortization (b)
|
82
|
|
|
147
|
|
|
165
|
|
|
48
|
|
|
9
|
|
|
21
|
|
|
472
|
|
|
—
|
|
|
472
|
|
EBITDA before
Adjustments
|
314
|
|
|
444
|
|
|
100
|
|
|
30
|
|
|
(22)
|
|
|
(7)
|
|
|
859
|
|
|
(14)
|
|
|
845
|
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
81
|
|
|
(190)
|
|
|
67
|
|
|
33
|
|
|
14
|
|
|
(3)
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Fresh
start/purchase
accounting impacts
|
5
|
|
|
(2)
|
|
|
12
|
|
|
7
|
|
|
8
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
Impacts of Tax
Receivable
Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Non-cash
compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
|
—
|
|
|
17
|
|
Transition and
merger expenses
|
1
|
|
|
(4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Loss on disposal
of
investment in NELP
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
COVID-19-related
expenses (c)
|
—
|
|
|
9
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
Other, net
|
—
|
|
|
3
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
(6)
|
|
|
2
|
|
|
1
|
|
|
3
|
|
Adjusted
EBITDA
|
$
|
401
|
|
|
$
|
260
|
|
|
$
|
183
|
|
|
$
|
72
|
|
|
$
|
3
|
|
|
$
|
10
|
|
|
$
|
929
|
|
|
$
|
(13)
|
|
|
$
|
916
|
|
|
|
|
___________
|
|
(a)
|
Includes $18 million
of unrealized mark-to-market net gains on interest rate
swaps.
|
|
(b)
|
Includes nuclear fuel
amortization of $17 million in the ERCOT segment.
|
|
(c)
|
Includes material and
supplies and other incremental costs related to our COVID-19
response.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE SIX MONTHS
ENDED JUNE 30, 2020
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations /
Corp and Other
|
|
Ongoing Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Consolidated
|
Net income
(loss)
|
$
|
323
|
|
|
$
|
557
|
|
|
$
|
53
|
|
|
$
|
(3)
|
|
|
$
|
(111)
|
|
|
$
|
(579)
|
|
|
$
|
240
|
|
|
$
|
(31)
|
|
|
$
|
209
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|
84
|
|
|
—
|
|
|
84
|
|
Interest expense
and
related charges (a)
|
6
|
|
|
(4)
|
|
|
3
|
|
|
1
|
|
|
1
|
|
|
433
|
|
|
440
|
|
|
—
|
|
|
440
|
|
Depreciation and
amortization (b)
|
162
|
|
|
290
|
|
|
303
|
|
|
97
|
|
|
20
|
|
|
40
|
|
|
912
|
|
|
—
|
|
|
912
|
|
EBITDA before
Adjustments
|
491
|
|
|
843
|
|
|
359
|
|
|
95
|
|
|
(90)
|
|
|
(22)
|
|
|
1,676
|
|
|
(31)
|
|
|
1,645
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
202
|
|
|
(371)
|
|
|
1
|
|
|
12
|
|
|
24
|
|
|
9
|
|
|
(123)
|
|
|
—
|
|
|
(123)
|
|
Fresh start/purchase
accounting impacts
|
8
|
|
|
(5)
|
|
|
14
|
|
|
7
|
|
|
10
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|
—
|
|
|
14
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
30
|
|
|
—
|
|
|
30
|
|
Transition and merger
expenses
|
6
|
|
|
(2)
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
19
|
|
|
—
|
|
|
19
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
Loss on disposal of
investment in NELP
|
—
|
|
|
—
|
|
|
14
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
29
|
|
COVID-19-related
expenses (c)
|
—
|
|
|
9
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
14
|
|
|
—
|
|
|
14
|
|
Other, net
|
5
|
|
|
3
|
|
|
4
|
|
|
2
|
|
|
2
|
|
|
(14)
|
|
|
2
|
|
|
1
|
|
|
3
|
|
Adjusted
EBITDA
|
$
|
712
|
|
|
$
|
477
|
|
|
$
|
401
|
|
|
$
|
132
|
|
|
$
|
31
|
|
|
$
|
26
|
|
|
$
|
1,779
|
|
|
$
|
(30)
|
|
|
$
|
1,749
|
|
|
|
|
___________
|
|
(a)
|
Includes $192 million
of unrealized mark-to-market net losses on interest rate
swaps.
|
|
(b)
|
Includes nuclear fuel
amortization of $37 million in the ERCOT segment.
|
|
(c)
|
Includes material and
supplies and other incremental costs related to our COVID-19
response.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE
MONTHS ENDED JUNE 30, 20191
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations /
Corp and Other
|
|
Ongoing Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Consolidated
|
Net income
(loss)
|
$
|
(585)
|
|
|
$
|
1,056
|
|
|
$
|
183
|
|
|
$
|
79
|
|
|
$
|
46
|
|
|
$
|
(399)
|
|
|
$
|
380
|
|
|
$
|
(26)
|
|
|
$
|
354
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
148
|
|
|
148
|
|
|
—
|
|
|
148
|
|
Interest expense and
related charges (a)
|
4
|
|
|
(3)
|
|
|
3
|
|
|
1
|
|
|
2
|
|
|
267
|
|
|
274
|
|
|
—
|
|
|
274
|
|
Depreciation and
amortization (b)
|
59
|
|
|
143
|
|
|
134
|
|
|
39
|
|
|
3
|
|
|
21
|
|
|
399
|
|
|
—
|
|
|
399
|
|
EBITDA before
Adjustments
|
(522)
|
|
|
1,196
|
|
|
320
|
|
|
119
|
|
|
51
|
|
|
37
|
|
|
1,201
|
|
|
(26)
|
|
|
1,175
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
797
|
|
|
(1,047)
|
|
|
(163)
|
|
|
(32)
|
|
|
(65)
|
|
|
(7)
|
|
|
(517)
|
|
|
—
|
|
|
(517)
|
|
Fresh start /
purchase
accounting impacts
|
15
|
|
|
(1)
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
(1)
|
|
|
19
|
|
|
1
|
|
|
20
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33)
|
|
|
(33)
|
|
|
—
|
|
|
(33)
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
11
|
|
Transition and merger
expenses
|
—
|
|
|
5
|
|
|
1
|
|
|
1
|
|
|
17
|
|
|
3
|
|
|
27
|
|
|
—
|
|
|
27
|
|
Other, net
|
3
|
|
|
3
|
|
|
7
|
|
|
2
|
|
|
5
|
|
|
(11)
|
|
|
9
|
|
|
—
|
|
|
9
|
|
Adjusted
EBITDA
|
$
|
293
|
|
|
$
|
156
|
|
|
$
|
167
|
|
|
$
|
91
|
|
|
$
|
11
|
|
|
$
|
(1)
|
|
|
$
|
717
|
|
|
$
|
(25)
|
|
|
$
|
692
|
|
|
|
|
___________
|
|
1 2Q19 results for four MISO assets
retired in late 2019 were recast from the MISO segment to the Asset
Closure segment, resulting in an increase of $10 million to our
2Q19 MISO segment results.
|
|
|
|
|
(a) Includes $119
million of unrealized mark-to-market net gains on interest rate
swaps.
|
|
(b) Includes nuclear
fuel amortization of $15 million in the ERCOT segment.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE SIX MONTHS
ENDED JUNE 30, 20191
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations /
Corp and Other
|
|
Ongoing Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Consolidated
|
Net income
(loss)
|
$
|
(571)
|
|
|
$
|
1,356
|
|
|
$
|
346
|
|
|
$
|
100
|
|
|
$
|
67
|
|
|
$
|
(670)
|
|
|
$
|
628
|
|
|
$
|
(50)
|
|
|
$
|
578
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
225
|
|
|
225
|
|
|
—
|
|
|
225
|
|
Interest expense
and
related charges (a)
|
8
|
|
|
(5)
|
|
|
5
|
|
|
1
|
|
|
3
|
|
|
483
|
|
|
495
|
|
|
—
|
|
|
495
|
|
Depreciation and
amortization (b)
|
118
|
|
|
293
|
|
|
265
|
|
|
104
|
|
|
7
|
|
|
37
|
|
|
824
|
|
|
—
|
|
|
824
|
|
EBITDA before
Adjustments
|
(445)
|
|
|
1,644
|
|
|
616
|
|
|
205
|
|
|
77
|
|
|
75
|
|
|
2,172
|
|
|
(50)
|
|
|
2,122
|
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
961
|
|
|
(1,298)
|
|
|
(255)
|
|
|
(38)
|
|
|
(50)
|
|
|
(23)
|
|
|
(703)
|
|
|
—
|
|
|
(703)
|
|
Fresh start / purchase
accounting impacts
|
29
|
|
|
—
|
|
|
(5)
|
|
|
3
|
|
|
6
|
|
|
(2)
|
|
|
31
|
|
|
2
|
|
|
33
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36)
|
|
|
(36)
|
|
|
—
|
|
|
(36)
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|
—
|
|
|
24
|
|
Transition and merger
expenses
|
—
|
|
|
6
|
|
|
3
|
|
|
2
|
|
|
24
|
|
|
9
|
|
|
44
|
|
|
—
|
|
|
44
|
|
Other, net
|
5
|
|
|
8
|
|
|
9
|
|
|
5
|
|
|
10
|
|
|
(28)
|
|
|
9
|
|
|
1
|
|
|
10
|
|
Adjusted
EBITDA
|
$
|
550
|
|
|
$
|
360
|
|
|
$
|
368
|
|
|
$
|
177
|
|
|
$
|
67
|
|
|
$
|
19
|
|
|
$
|
1,541
|
|
|
$
|
(47)
|
|
|
$
|
1,494
|
|
|
|
|
|
___________
|
|
1 YTD
2019 results for four MISO assets retired in late 2019 were recast
from the MISO segment to the Asset Closure segment, resulting in an
increase of $19 million to our YTD 2019 MISO segment
results.
|
|
|
|
|
(a) Includes $199
million of unrealized mark-to-market net losses on interest rate
swaps.
|
|
(b) Includes nuclear
fuel amortization of $34 million in the ERCOT segment.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - 2020 GUIDANCE1
(Unaudited)
(Millions of Dollars)
|
|
|
Ongoing
Operations
|
|
Asset
Closure
|
|
Vistra
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
|
|
|
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
|
|
|
|
|
|
____________
|
|
1 Regulation G Table for 2020
Guidance prepared as of November 5, 2019.
|
|
|
|
|
(a) Includes
unrealized gain on interest rate swaps of $21 million.
|
|
(b) Includes nuclear
fuel amortization of $74 million.
|
|
(c) Includes state tax
payments.
|
View original content to download
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SOURCE Vistra