IRVING, Texas, Nov. 5, 2021 /PRNewswire/ -- Vistra (NYSE:
VST)
Returning Capital to Financial Stakeholders
- Announced plans to return at least $7.5 billion to common stockholders through
year-end 2026, reflecting an average annual ~15% cash yield on
the stock at the current stock price, via a combination of share
repurchases and dividends, with plans to retire at least
$1.5 billion of debt by year-end
20221:
Share
Repurchases
- Announced, in
October, a $2 billion share
repurchase program, which is sized at over 20% of the company's
current market cap and is expected to be executed by year-end 2022.
The share repurchase program is partially funded by $1 billion of preferred equity raised in
October.
- Vistra expects it will opportunistically repurchase
another ~$4 billion of common
stock between 2023 and 2026, so long as the company believes its
stock is undervalued.
- In total, this five-year allocation to share
repurchases represents >60% of the company's current market
capitalization.
Dividends
- Announced an updated
dividend policy pursuant to which Vistra expects to commit
$300 million2 annually
toward its common dividend program, totaling $1.5 billion over the five-year period.
- Assuming $6 billion of
share repurchases executed at Vistra's current stock
price3, Vistra's annualized dividend per share would
grow by ~175% by year-end 2026.
Debt Repayments
- Reaffirmed its
commitment to a strong balance sheet, announcing plans to retire
~$1.5 billion of debt by
year-end 20221 with plans for up to $3 billion of debt repayments by year-end
20261.
Financial Highlights
- Delivered third quarter 2021 Net Income of $10 million and Net Income from Ongoing
Operations4 of $16
million. Third quarter 2021 Ongoing Operations Adjusted
EBITDA4 was $1,177
million. Excluding the Winter Storm Uri (Uri) impacts,
Vistra's Ongoing Operations Adjusted EBITDA, excluding
Uri4,5, was $1,167
million.
- Raised and narrowed 2021 Ongoing Operations Adjusted
EBITDA4 guidance range to $1,890 to $2,090
million and revised and narrowed Ongoing Operations
Adjusted Free Cash Flow before Growth4 (FCFbG) guidance
range to $100 to $300 million. The Ongoing Operations Adjusted
EBITDA guidance range includes ~$500
million6 from ERCOT's securitization of certain
Uri-related costs borne by load-serving entities, which partially
offsets the retail portion of the greater than $2 billion financial loss Vistra recorded in the
first quarter of 2021. The cash impact of the securitization is
reflected in Vistra's 2022 Adjusted FCFbG guidance range, which is
the year in which the company expects to receive the cash
proceeds.
- Initiated 2022 Ongoing Operations Adjusted EBITDA4
and Ongoing Operations Adjusted Free Cash Flow before
Growth4 (FCFbG) guidance ranges of $2,810 to $3,310
million and $2,070 to
$2,570 million, respectively, an
expected Adjusted EBITDA to Adjusted FCFbG conversion of ~76%.
-
- Vistra's 2022 guidance ranges include the negative impact of
~$185 million from bill credits
applied to large commercial and industrial customers that curtailed
during Uri and the negative impact of ~$55
million from the execution of NPV-positive, long-dated
contracts with retail customers.
- Excluding these impacts for an illustrative view of the
long-term earnings power of the business, Vistra's 2022 Ongoing
Operations Adjusted EBITDA4,7 guidance range would be
$3,050 to $3,550 million.
- Paid a quarterly dividend of $0.15 per share, or $0.60 per share on an annualized basis, on
Sept. 30, 2021, to shareholders of
record as of Sept. 16, 2021.
Winter Preparedness
- Implemented a series of steps designed to significantly improve
risk profile in the event of future weather-driven volatility
events, including:
-
- Investing ~$80
million in the ERCOT fleet to further harden generation for
cold temperatures and improve security of fuel.
- Added incremental gas storage capacity, as well
as dual fuel capabilities at gas steam units.
- Revised risk management policy to reserve
additional generation length as physical insurance leading into
peak periods.
- Continued participation with the PUCT and ERCOT to implement
Texas legislation related to Uri
and to evaluate potential ERCOT market reforms.
A Clean Energy Future
- Acquired Angus Solar, LLC, owner
of the 110-MW Angus solar development project located in
Bosque County, Texas, from
developer Cypress Creek. Angus, which is estimated to begin
commercial operations by year-end 2023, joins the growing Vistra
Zero portfolio of zero-carbon generation assets.
- Announced the planned development of up to 300 MW of
utility-scale solar and up to 125 MW of battery energy storage
facilities at nine retired or to-be-retired Vistra coal plant sites
across central and southern Illinois, supported by the passage of
Illinois' landmark Energy
Transition Act, which incorporated Vistra's legislative
priority known as the Illinois Coal to Solar & Energy Storage
Initiative.
- Supported COP26 through
committing to align emissions reduction targets to keep warming to
1.5°C and reaching science-based net-zero emissions by 2050, as
promoted by Science Based Targets initiative's Business Ambition
for 1.5°C, and encouraging governments and corporate leaders to
set strong emissions reduction targets.
ESG Highlights
- Honored with the Excellence in Surface Coal Mining
Reclamation Award by the Office of Surface Mining Reclamation
& Enforcement, a bureau of the U.S. Department of the Interior.
The award recognizes companies that go beyond federal reclamation
requirements to demonstrate their commitment to the
environment.
- Launched TXU Energy Freedom Rewards℠, a first-of-its-kind
energy plan allowing customers to earn 30% in free electricity for
every dollar spent on energy charges.
- Encouraged Fortune 1000 CEOs to help advance disability
inclusion and equality through Disability:IN's CEO letter campaign,
while reinforcing Vistra's commitment to equality and inclusion at
Vistra.
- Incentivized COVID-19 vaccinations for employees through a
vaccine sweepstakes where eight employees will win a cash prize, up
to $50,000 each, for submitting proof
of vaccination.
(1)
|
Corporate-level debt.
Excludes potential future Vistra Zero project financing.
|
(2)
|
Based on management's
recommendations; subject to Board's approval at the applicable
time.
|
(3)
|
Assumes share price
of $20 as of Nov. 1, 2021 close.
|
(4)
|
Excludes the Asset
Closure segment. Net Income from Ongoing Operations, Ongoing
Operations Adjusted EBITDA, Ongoing Operations Adjusted EBITDA,
excluding Uri, Ongoing Operations Illustrative Adjusted EBITDA,
Ongoing Operations Adjusted FCFbG, and Ongoing Operations
Illustrative Adjusted FCFbG are non-GAAP financial measures. See
the "Non-GAAP Reconciliation" tables for further detail.
|
(5)
|
Excludes net $10
million benefit related to Uri, including ERCOT resettlement and
revenue true-up benefit of $43 million net of $(33) million of bill
credits applied to large commercial and industrial customer bills
that curtailed during Uri.
|
(6)
|
The amount of the
securitization proceeds reflects management's estimate. The
final amount is expected to be determined in December 2021, and the
payment of the proceeds will be subject to ERCOT's ability to
secure the financing. The Company currently expects the
proceeds to be reflected in Ongoing Operations Adjusted EBITDA for
the quarter ended Dec. 31, 2021. The inclusion of the
securitization proceeds in Ongoing Operations Adjusted EBITDA
guidance is a non-GAAP determination at this time, reflecting
management's view of the financial impact of securitization on
operating results, which offsets a portion of the Uri-related
retail costs incurred during the first quarter of 2021, and the
representative period for which the proceeds relate. The GAAP
measurement is still under review. Management expects the GAAP
determination will be finalized prior to the filing of the
company's 2021 Form 10-K.
|
(7)
|
Excludes ~$185
million impact from bill credits applied to large commercial and
industrial customers that curtailed during Uri and ~$55 million
impact from retail term contract backwardation. Provided for
illustrative purposes only and should not be read or viewed as
Vistra's actual 2022 guidance, which is also set forth
above.
|
Summary of Financial Results for Third Quarter Ended
Sept. 30, 2021
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
($ in
millions)
|
|
Sept. 30,
2021
|
Sept. 30,
2020
|
|
Sept. 30,
2021
|
Sept. 30,
20203
|
Net Income
(Loss)
|
|
$ 10
|
$ 442
|
|
$ (1,781)
|
$ 651
|
Ongoing Operations
Net Income (Loss)1
|
|
$ 16
|
$ 502
|
|
$ (1,761)
|
$ 740
|
Ongoing Operations
Adjusted EBITDA1
|
|
$ 1,177
|
$ 1,183
|
|
$ 776
|
$ 2,963
|
Excluding
Uri1,2
|
|
$ 1,167
|
|
|
$ 2,811
|
|
Adjusted EBITDA by
Segment
|
|
|
|
|
|
|
Retail
|
|
$ 65
|
$ (140)
|
|
$ 376
|
$ 572
|
Texas
|
|
$ 858
|
$ 972
|
|
$ (350)
|
$ 1,452
|
East
|
|
$ 193
|
$ 245
|
|
$ 573
|
$ 691
|
West
|
|
$ 36
|
$ 23
|
|
$ 81
|
$ 59
|
Sunset
|
|
$ 36
|
$ 93
|
|
$ 115
|
$ 209
|
Corp./Other
|
|
$ (11)
|
$ (10)
|
|
$ (19)
|
$ (20)
|
Asset
Closure
|
|
$ (4)
|
$ (46)
|
|
$ (32)
|
$ (78)
|
For the three months ended Sept. 30,
2021, Vistra reported Net Income of $10 million, Net Income from Ongoing
Operations1 of $16
million, and Ongoing Operations Adjusted EBITDA1
of $1,177 million. Vistra's third
quarter 2021 Ongoing Operations Adjusted EBITDA, excluding
Uri1,2, was $1,167
million. Vistra's third quarter 2021 Net Income was
$432 million lower than third quarter
2020 Net Income, driven primarily by unrealized hedging losses.
Vistra reported third quarter Adjusted EBITDA from the Retail
segment of $65 million, $205
million higher than third quarter 2020 results, driven by
the execution of Vistra's self-help initiatives following Uri and
lower cost of goods sold period-over-period. Third quarter Adjusted
EBITDA from the generation4 segments, on an aggregate
basis, totaled $1,112 million,
$211 million lower than third quarter
2020 results, primarily driven by lower energy margin in
Texas, East, and Sunset.
"Vistra's integrated operations continued to operate well
following Winter Storm Uri, delivering third quarter financial
results that are in-line with the prior period, and capturing
approximately 85% of the company's $500
million self-help target as of Sept.
30, with a clear line of sight to the balance," said
Curt Morgan, Vistra's chief
executive officer. "We continue to believe in the long-term value
of the company. Our strategic review process, which management and
the board undertook in the first three quarters of 2021, has led us
toward the execution of a capital allocation plan that is focused
on maximizing the value of our business, growing our Vistra Zero
portfolio via cost-effective capital, and prioritizing the return
of capital to our financial stakeholders. The closing of our
preferred equity offering and announcement of our near-term
$2 billion share repurchase program
is an exciting first step in the execution of this plan, with the
very real prospect of repurchasing over 60% of our current market
cap by year-end 2026 and returning an additional $1.5 billion to shareholders through common
dividends over that same time period for a grand total of
$7.5 billion. All in all, at our
current share price, the expected repurchases and dividends are
forecast to result in an average annual cash yield on our current
stock price of an attractive 15%."
(1)
|
Excludes results from
the Asset Closure segment. Net Income from Ongoing Operations,
Ongoing Operations Adjusted EBITDA, and Ongoing Operations Adjusted
EBITDA, excluding Uri, are non-GAAP financial measures. See the
"Non-GAAP Reconciliation" tables for further details. Total by
segment may not tie due to rounding.
|
(2)
|
Q3 2021 Excludes net
$10 million benefit related to Uri, including ERCOT resettlement
and revenue true-up benefit of $43 million net of $(33) million of
bill credits applied to large commercial and industrial customer
bills that curtailed during Uri. YTD 2021 excludes $2,035 million
of Uri-related impacts.
|
(3)
|
Q3 2020 results
decreased by $2 million and YTD 2020 results decreased by $1
million due to the recast of Wharton power plant, retired in 2020,
to the Asset Closure segment.
|
(4)
|
Includes Texas, East,
West, Sunset, and Corp./Other.
|
Guidance
($ in
millions)
|
Prior
20212
|
Current
2021
|
2022
|
Illustrative
20223
|
Ongoing Ops. Adj.
EBITDA1
|
1,475 –
1,875
|
1,890 –
2,090
|
$2,810 –
$3,310
|
$3,050 –
$3,550
|
Ongoing Ops. Adj.
FCFbG1
|
200 – 600
|
100 – 300
|
$2,070 –
$2,570
|
$1,810 –
$2,310
|
Vistra is raising and narrowing its 2021 Ongoing Operations
Adjusted EBITDA1 guidance range to $1,890 to $2,090
million and revising and narrowing its 2021 Ongoing
Operations Adjusted FCFbG1 guidance range to
$100 to $300
million. Vistra's 2021 Ongoing Operations Adjusted
EBITDA guidance range includes ~$500
million4 from ERCOT's securitization of certain
Uri-related costs borne by load-serving entities, which partially
offsets the retail portion of the greater than $2 billion financial loss Vistra recorded in the
first quarter of 2021. Vistra expects to receive the ~$500 million of securitization proceeds in the
first half of 2022. As a result, the cash flow impact of
securitization is included in Vistra's 2022 Ongoing Operations
Adjusted FCFbG guidance range.
Vistra is initiating its 2022 Ongoing Operations guidance
ranges, forecasting Ongoing Operations Adjusted EBITDA1
of $2,810 to $3,310 million and Ongoing Operations Adjusted
FCFbG1 of $2,070 to
$2,570 million, an expected Adjusted
EBITDA to Adjusted FCFbG conversion of ~76%. Vistra's 2022 guidance
ranges include the negative impact of ~$185
million from bill credits applied to large commercial and
industrial customers that curtailed during Uri and the negative
impact of ~$55 million from the
execution of NPV-positive, long-dated contracts with retail
customers that will contribute positive EBITDA in future years.
Excluding these impacts, which is reflective of the long-term
earnings power of the business, Vistra's Ongoing Operations
Illustrative Adjusted EBITDA1,3 guidance range is
$3,050 to $3,550 million.
(1)
|
Excludes the Asset
Closure segment. Ongoing Operations Adjusted EBITDA, Ongoing
Operations Illustrative Adjusted EBITDA, Ongoing Operations
Adjusted FCFbG, and Ongoing Operations Illustrative Adjusted FCFbG
are non-GAAP financial measures. See the "Non-GAAP Reconciliation"
tables for further detail.
|
(2)
|
As issued on April
26, 2021.
|
(3)
|
Illustrative Adj.
EBITDA and Illustrative Adj. FCFbG exclude ~$185 million impact
from bill credits applied to large commercial and industrial
customer bills that curtailed during Uri and ~$55 million impact
from retail term contract backwardation. Illustrative Adj. FCFbG
excludes $500 million securitization proceeds. Provided for
illustrative purposes only and should not be read or viewed as
Vistra's actual 2022 guidance, which is also set forth
above.
|
(4)
|
The amount of the
securitization proceeds reflects management's estimate. The final
amount is expected to be determined in December 2021, and the
payment of the proceeds will be subject to ERCOT's ability to
secure the financing. The Company currently expects the
proceeds to be reflected in Ongoing Operations Adjusted EBITDA for
the quarter ended Dec. 31, 2021. The inclusion of the
securitization proceeds in Ongoing Operations Adjusted EBITDA
guidance is a non-GAAP determination at this time, reflecting
management's view of the financial impact of securitization on
operating results, which offsets a portion of the Uri-related
retail costs incurred during the first quarter of 2021, and the
representative period for which the proceeds relate. The GAAP
measurement is still under review. Management expects the GAAP
determination will be finalized prior to the filing of the
company's 2021 Form 10-K.
|
Liquidity
As of Sept. 30, 2021, Vistra had
total available liquidity of ~$2,071
million, including cash and cash equivalents of $351 million, and $1,720
million of availability under its revolving credit
facility.
Earnings Webcast
Vistra will host a webcast today, Nov. 5,
2021, 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 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), "Ongoing
Operations Adjusted EBITDA, excluding Uri" (Ongoing Operations
Adjusted EBITDA as further adjusted to exclude the impacts arising
from Uri), "Ongoing Operations Illustrative Adjusted EBITDA"
(Ongoing Operations Adjusted EBITDA as further adjusted to exclude
the impacts arising from Uri and the Year 1 impacts from various
long-dated, NPV-positive retail contracts), "Net Income from
Ongoing Operations" (net income less net income from Asset Closure
segment), "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), and "Ongoing Operations
Illustrative Adjusted FCFbG (Ongoing Operations Adjusted FCFbG as
further adjusted to exclude the impacts arising from Uri and the
Year 1 impacts from various long-dated, NPV-positive retail
contracts), 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 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. Vistra uses Ongoing
Operations Adjusted EBITDA, excluding Uri to present a more
normalized view of operating performance excluding the impacts of
Uri. Vistra uses Ongoing Operations Illustrative Adjusted EBITDA to
present a more normalized view of the long-term earnings power of
the Company. 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.
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 4.3 million
residential, commercial, and industrial retail customers with
electricity and natural gas, Vistra is one of the largest
competitive residential electricity providers 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, Vistra is a large purchaser of wind power.
The company owns and operates a 400-MW/1,600-MWh battery energy
storage system in Moss Landing,
California, the largest of its kind in the world. 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
our 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 its contemplated strategic, capital allocation,
performance, and cost-saving 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; (v) the
severity, magnitude and duration of extreme weather events
(including Winter Storm Uri), contingencies and uncertainties
relating thereto, most of which are difficult to predict and many
of which are beyond our control, and the resulting effects on our
results of operations, financial condition and cash flows; and (vi)
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, 2020 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)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
revenues
|
$
|
2,991
|
|
|
$
|
3,552
|
|
|
$
|
8,763
|
|
|
$
|
8,919
|
|
Fuel, purchased power
costs and delivery fees
|
(1,763)
|
|
|
(1,469)
|
|
|
(7,827)
|
|
|
(3,832)
|
|
Operating
costs
|
(372)
|
|
|
(457)
|
|
|
(1,173)
|
|
|
(1,249)
|
|
Depreciation and
amortization
|
(468)
|
|
|
(410)
|
|
|
(1,355)
|
|
|
(1,284)
|
|
Selling, general and
administrative expenses
|
(269)
|
|
|
(268)
|
|
|
(771)
|
|
|
(755)
|
|
Impairment of
long-lived assets
|
—
|
|
|
(272)
|
|
|
(38)
|
|
|
(356)
|
|
Operating income
(loss)
|
119
|
|
|
676
|
|
|
(2,401)
|
|
|
1,443
|
|
Other
income
|
16
|
|
|
8
|
|
|
108
|
|
|
19
|
|
Other
deductions
|
(5)
|
|
|
—
|
|
|
(13)
|
|
|
(35)
|
|
Interest expense and
related charges
|
(124)
|
|
|
(101)
|
|
|
(288)
|
|
|
(541)
|
|
Impacts of Tax
Receivable Agreement
|
35
|
|
|
58
|
|
|
31
|
|
|
44
|
|
Equity in earnings of
unconsolidated investment
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
Income (loss) before
income taxes
|
41
|
|
|
641
|
|
|
(2,563)
|
|
|
934
|
|
Income tax (expense)
benefit
|
(31)
|
|
|
(199)
|
|
|
569
|
|
|
(283)
|
|
Net income
(loss)
|
$
|
10
|
|
|
$
|
442
|
|
|
$
|
(1,994)
|
|
|
$
|
651
|
|
Net (income) loss
attributable to noncontrolling interest
|
(3)
|
|
|
1
|
|
|
(6)
|
|
|
14
|
|
Net income (loss)
attributable to Vistra
|
$
|
7
|
|
|
$
|
443
|
|
|
$
|
(2,000)
|
|
|
$
|
665
|
|
VISTRA
CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions of Dollars)
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
Cash flows —
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
(1,994)
|
|
|
$
|
651
|
|
Adjustments to
reconcile net income (loss) to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,551
|
|
|
1,512
|
|
Deferred income tax
expense (benefit), net
|
(587)
|
|
|
264
|
|
Impairment of
long-lived assets
|
38
|
|
|
356
|
|
Loss on disposal of
investment in NELP
|
—
|
|
|
29
|
|
Unrealized net (gain)
loss from mark-to-market valuations of commodities
|
771
|
|
|
(444)
|
|
Unrealized net (gain)
loss from mark-to-market valuations of interest rate
swaps
|
(92)
|
|
|
181
|
|
Asset retirement
obligation accretion expense
|
27
|
|
|
33
|
|
Impacts of Tax
Receivable Agreement
|
(31)
|
|
|
(44)
|
|
Stock-based
compensation
|
36
|
|
|
46
|
|
Other, net
|
79
|
|
|
115
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Margin deposits,
net
|
(767)
|
|
|
60
|
|
Accrued
interest
|
(55)
|
|
|
(97)
|
|
Accrued
taxes
|
(63)
|
|
|
(35)
|
|
Accrued employee
incentive
|
(86)
|
|
|
(20)
|
|
Other operating
assets and liabilities
|
680
|
|
|
(257)
|
|
Cash provided by
(used in) operating activities
|
(493)
|
|
|
2,350
|
|
Cash flows —
investing activities:
|
|
|
|
Capital expenditures,
including nuclear fuel purchases and LTSA prepayments
|
(790)
|
|
|
(838)
|
|
Proceeds from sales
of nuclear decommissioning trust fund securities
|
366
|
|
|
291
|
|
Investments in
nuclear decommissioning trust fund securities
|
(382)
|
|
|
(307)
|
|
Proceeds from sales
of environmental allowances
|
102
|
|
|
91
|
|
Purchases of
environmental allowances
|
(247)
|
|
|
(210)
|
|
Insurance
proceeds
|
74
|
|
|
15
|
|
Proceeds from sale of
assets
|
7
|
|
|
23
|
|
Other, net
|
27
|
|
|
8
|
|
Cash used in
investing activities
|
(843)
|
|
|
(927)
|
|
Cash flows —
financing activities:
|
|
|
|
Issuances of
long-term debt
|
1,250
|
|
|
—
|
|
Borrowings under Term
Loan A
|
1,250
|
|
|
—
|
|
Repayment under Term
Loan A
|
(1,250)
|
|
|
—
|
|
Proceeds from forward
capacity agreement
|
500
|
|
|
—
|
|
Repayments/repurchases of debt
|
(234)
|
|
|
(955)
|
|
Net borrowings under
accounts receivable financing
|
175
|
|
|
175
|
|
Borrowings under
Revolving Credit Facility
|
1,300
|
|
|
1,075
|
|
Repayments under
Revolving Credit Facility
|
(1,300)
|
|
|
(1,425)
|
|
Share
repurchases
|
(175)
|
|
|
—
|
|
Dividends paid to
stockholders
|
(219)
|
|
|
(198)
|
|
Debt tender offer and
other financing fees
|
(13)
|
|
|
(17)
|
|
Other, net
|
(5)
|
|
|
(3)
|
|
Cash provided by
(used in) financing activities
|
1,279
|
|
|
(1,348)
|
|
Net change in cash,
cash equivalents and restricted cash
|
(57)
|
|
|
75
|
|
Cash, cash
equivalents and restricted cash — beginning balance
|
444
|
|
|
475
|
|
Cash, cash
equivalents and restricted cash — ending balance
|
$
|
387
|
|
|
$
|
550
|
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 2021
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and Other
|
|
Ongoing Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
Net income
(loss)
|
$
|
779
|
|
|
$
|
4
|
|
|
$
|
(233)
|
|
|
$
|
(18)
|
|
|
$
|
(375)
|
|
|
$
|
(141)
|
|
|
$
|
16
|
|
|
$
|
(6)
|
|
|
$
|
10
|
|
Income tax
expense
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
31
|
|
|
—
|
|
|
31
|
|
Interest expense and
related charges (a)
|
2
|
|
|
(3)
|
|
|
5
|
|
|
(1)
|
|
|
1
|
|
|
119
|
|
|
123
|
|
|
1
|
|
|
124
|
|
Depreciation and
amortization (b)
|
53
|
|
|
200
|
|
|
164
|
|
|
15
|
|
|
40
|
|
|
17
|
|
|
489
|
|
|
—
|
|
|
489
|
|
EBITDA before
Adjustments
|
836
|
|
|
201
|
|
|
(64)
|
|
|
(4)
|
|
|
(334)
|
|
|
24
|
|
|
659
|
|
|
(5)
|
|
|
654
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(739)
|
|
|
654
|
|
|
254
|
|
|
39
|
|
|
381
|
|
|
—
|
|
|
589
|
|
|
—
|
|
|
589
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Fresh start/purchase
accounting impacts
|
(2)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
(13)
|
|
|
—
|
|
|
(17)
|
|
|
—
|
|
|
(17)
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35)
|
|
|
(35)
|
|
|
—
|
|
|
(35)
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
11
|
|
Transition and merger
expenses
|
(4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Impairment of
long-lived assets
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
COVID-19-related
expenses (c)
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Winter Storm Uri
impacts (d)
|
(31)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33)
|
|
|
—
|
|
|
(33)
|
|
Other, net
|
5
|
|
|
4
|
|
|
3
|
|
|
1
|
|
|
(2)
|
|
|
(14)
|
|
|
(3)
|
|
|
1
|
|
|
(2)
|
|
Adjusted
EBITDA
|
$
|
65
|
|
|
$
|
858
|
|
|
$
|
193
|
|
|
$
|
36
|
|
|
$
|
36
|
|
|
$
|
(11)
|
|
|
$
|
1,177
|
|
|
$
|
(4)
|
|
|
$
|
1,173
|
|
Other Winter Storm
Uri impacts (e)
|
(13)
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10)
|
|
|
—
|
|
|
(10)
|
|
Adjusted EBITDA,
excluding Winter Storm Uri impacts
|
$
|
52
|
|
|
$
|
861
|
|
|
$
|
193
|
|
|
$
|
36
|
|
|
$
|
36
|
|
|
$
|
(11)
|
|
|
$
|
1,167
|
|
|
$
|
(4)
|
|
|
$
|
1,163
|
|
|
|
|
|
|
|
(a)
|
Includes $13 million
of unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $21 million in Texas segment.
|
(c)
|
Includes material and
supplies and other incremental costs related to our COVID-19
response.
|
(d)
|
Includes bill credits
related to large commercial and industrial customers that curtailed
during Winter Storm Uri as the credits are applied to customer
bills and a small reduction of ERCOT default uplift charges,
partially offset by ongoing Winter Storm Uri related legal fees and
other costs.
|
(e)
|
Includes the ERCOT
resettlement and revenue true-up benefit of $43 million net of bill
credits of $(33) million applied to large commercial and industrial
customer bills that curtailed during Uri.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2021
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and Other
|
|
Ongoing Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
Net income
(loss)
|
$
|
2,677
|
|
|
$
|
(3,651)
|
|
|
$
|
(332)
|
|
|
$
|
(62)
|
|
|
$
|
(841)
|
|
|
$
|
235
|
|
|
$
|
(1,974)
|
|
|
$
|
(20)
|
|
|
$
|
(1,994)
|
|
Income tax expense
(benefit)
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(571)
|
|
|
(569)
|
|
|
—
|
|
|
(569)
|
|
Interest expense and
related charges (a)
|
7
|
|
|
(10)
|
|
|
11
|
|
|
(9)
|
|
|
1
|
|
|
287
|
|
|
287
|
|
|
1
|
|
|
288
|
|
Depreciation and
amortization (b)
|
160
|
|
|
523
|
|
|
553
|
|
|
30
|
|
|
99
|
|
|
51
|
|
|
1,416
|
|
|
—
|
|
|
1,416
|
|
EBITDA before
Adjustments
|
2,846
|
|
|
(3,138)
|
|
|
232
|
|
|
(41)
|
|
|
(741)
|
|
|
2
|
|
|
(840)
|
|
|
(19)
|
|
|
(859)
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(2,840)
|
|
|
2,269
|
|
|
407
|
|
|
120
|
|
|
815
|
|
|
—
|
|
|
771
|
|
|
—
|
|
|
771
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
Fresh start/purchase
accounting impacts
|
1
|
|
|
(3)
|
|
|
(74)
|
|
|
—
|
|
|
(20)
|
|
|
—
|
|
|
(96)
|
|
|
—
|
|
|
(96)
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31)
|
|
|
(31)
|
|
|
—
|
|
|
(31)
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
40
|
|
|
—
|
|
|
40
|
|
Transition and merger
expenses
|
(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(15)
|
|
|
(17)
|
|
Impairment of
long-lived assets
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
COVID-19-related
expenses (c)
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Winter Storm Uri
impacts (d)
|
354
|
|
|
511
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
866
|
|
|
—
|
|
|
866
|
|
Other, net
|
17
|
|
|
6
|
|
|
7
|
|
|
2
|
|
|
2
|
|
|
(31)
|
|
|
3
|
|
|
2
|
|
|
5
|
|
Adjusted
EBITDA
|
376
|
|
|
(350)
|
|
|
573
|
|
|
81
|
|
|
115
|
|
|
(19)
|
|
|
776
|
|
|
(32)
|
|
|
744
|
|
Other Winter Storm
Uri impacts (e)
|
551
|
|
|
1,551
|
|
|
(50)
|
|
|
—
|
|
|
(17)
|
|
|
—
|
|
|
2,035
|
|
|
—
|
|
|
2,035
|
|
Adjusted EBITDA,
excluding Winter Storm Uri impacts
|
$
|
927
|
|
|
$
|
1,201
|
|
|
$
|
523
|
|
|
$
|
81
|
|
|
$
|
98
|
|
|
$
|
(19)
|
|
|
$
|
2,811
|
|
|
$
|
(32)
|
|
|
$
|
2,779
|
|
|
|
|
|
|
|
(a)
|
Includes $92 million
of unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $61 million in the Texas segment.
|
(c)
|
Includes material and
supplies and other incremental costs related to our COVID-19
response.
|
(d)
|
Includes the
following amounts, which we believe are not reflective of our
operating performance: $194 million for allocation of ERCOT default
uplift charges which are expected to be paid over more than 90
years under current protocols (net present value of $45 million
applying a 4.25% discount rate); accrual of Koch earn-out disputed
amounts of $286 million that the Company is contesting and does not
believe should be paid; $386 million for future bill credits
related to Winter Storm Uri as further described below and Winter
Storm Uri related legal fees and other costs. The adjustment
for future bill credits relates to large commercial and industrial
customers that curtailed during Winter Storm Uri and will reverse
and impact Adjusted EBITDA in future periods as the credits are
applied to customer bills. We estimate the amounts to be
applied in future periods are for the remainder of 2021
(approximately $43 million), 2022 (approximately $185 million),
2023 (approximately $84 million), 2024 (approximately $18 million),
and 2025 (approximately $8 million). The Company believes the
inclusion of the bill credits as a reduction to Adjusted EBITDA in
the years in which such bill credits are applied more accurately
reflects its operating performance.
|
(e)
|
Removes losses
incurred due to the need to procure power in ERCOT at market prices
at or near the price cap due to lower output from our natural
gas-fueled power plants driven by natural gas deliverability issues
and our coal-fueled power plants driven by coal fuel handling
challenges, high fuel costs, and high retail load costs, partially
offset by favorable prices on volumes produced in the East and
Sunset segments.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 2020
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and Other
|
|
Ongoing Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
Net income
(loss)
|
$
|
109
|
|
|
$
|
908
|
|
|
$
|
100
|
|
|
$
|
29
|
|
|
$
|
(368)
|
|
|
$
|
(276)
|
|
|
$
|
502
|
|
|
$
|
(60)
|
|
|
$
|
442
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
199
|
|
|
199
|
|
|
—
|
|
|
199
|
|
Interest expense and
related charges (a)
|
2
|
|
|
(2)
|
|
|
2
|
|
|
(3)
|
|
|
1
|
|
|
101
|
|
|
101
|
|
|
—
|
|
|
101
|
|
Depreciation and
amortization (b)
|
67
|
|
|
127
|
|
|
181
|
|
|
5
|
|
|
22
|
|
|
17
|
|
|
419
|
|
|
12
|
|
|
431
|
|
EBITDA before
Adjustments
|
178
|
|
|
1,033
|
|
|
283
|
|
|
31
|
|
|
(345)
|
|
|
41
|
|
|
1,221
|
|
|
(48)
|
|
|
1,173
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(316)
|
|
|
(78)
|
|
|
(40)
|
|
|
(9)
|
|
|
122
|
|
|
—
|
|
|
(321)
|
|
|
—
|
|
|
(321)
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
Fresh start /
purchase accounting impacts
|
(6)
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(58)
|
|
|
(58)
|
|
|
—
|
|
|
(58)
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
|
—
|
|
|
16
|
|
Transition and merger
expenses
|
1
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
272
|
|
COVID-19-related
expenses (c)
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
Other, net
|
3
|
|
|
15
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
(11)
|
|
|
9
|
|
|
2
|
|
|
11
|
|
Adjusted
EBITDA
|
$
|
(140)
|
|
|
$
|
972
|
|
|
$
|
245
|
|
|
$
|
23
|
|
|
$
|
93
|
|
|
$
|
(10)
|
|
|
$
|
1,183
|
|
|
$
|
(46)
|
|
|
$
|
1,137
|
|
|
|
|
|
|
|
(a)
|
Includes $11 million
of unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $20 million in Texas 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 NINE
MONTHS ENDED SEPTEMBER 30, 2020
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and Other
|
|
Ongoing Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
Net income
(loss)
|
$
|
433
|
|
|
$
|
1,484
|
|
|
$
|
119
|
|
|
$
|
49
|
|
|
$
|
(469)
|
|
|
$
|
(876)
|
|
|
$
|
740
|
|
|
$
|
(89)
|
|
|
$
|
651
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
283
|
|
|
283
|
|
|
—
|
|
|
283
|
|
Interest expense and
related charges (a)
|
8
|
|
|
(6)
|
|
|
6
|
|
|
(6)
|
|
|
2
|
|
|
537
|
|
|
541
|
|
|
—
|
|
|
541
|
|
Depreciation and
amortization (b)
|
229
|
|
|
397
|
|
|
540
|
|
|
14
|
|
|
101
|
|
|
48
|
|
|
1,329
|
|
|
12
|
|
|
1,341
|
|
EBITDA before
Adjustments
|
670
|
|
|
1,875
|
|
|
665
|
|
|
57
|
|
|
(366)
|
|
|
(8)
|
|
|
2,893
|
|
|
(77)
|
|
|
2,816
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(114)
|
|
|
(449)
|
|
|
(37)
|
|
|
(1)
|
|
|
157
|
|
|
—
|
|
|
(444)
|
|
|
—
|
|
|
(444)
|
|
Generation plant
retirement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
Fresh start /
purchase accounting impacts
|
1
|
|
|
(4)
|
|
|
23
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44)
|
|
|
(44)
|
|
|
—
|
|
|
(44)
|
|
Non-cash compensation
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
46
|
|
|
—
|
|
|
46
|
|
Transition and merger
expenses
|
8
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
20
|
|
|
(3)
|
|
|
17
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
356
|
|
|
—
|
|
|
356
|
|
|
—
|
|
|
356
|
|
Loss on disposal of
investment in NELP
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
29
|
|
COVID-19-related
expenses (c)
|
—
|
|
|
12
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
18
|
|
|
—
|
|
|
18
|
|
Other, net
|
7
|
|
|
17
|
|
|
8
|
|
|
3
|
|
|
2
|
|
|
(25)
|
|
|
12
|
|
|
2
|
|
|
14
|
|
Adjusted
EBITDA
|
$
|
572
|
|
|
$
|
1,452
|
|
|
$
|
691
|
|
|
$
|
59
|
|
|
$
|
209
|
|
|
$
|
(20)
|
|
|
$
|
2,963
|
|
|
$
|
(78)
|
|
|
$
|
2,885
|
|
|
|
|
|
|
|
(a)
|
Includes $181 million
of unrealized mark-to-market net losses on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $57 million in Texas segment.
|
(c)
|
Included material and
supplies and other incremental costs related to our COVID-19
response.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - 2021 GUIDANCE1
(Unaudited)
(Millions of Dollars)
|
|
|
Ongoing
Operations
|
|
Asset
Closure
|
|
Vistra
Corp.
Consolidated
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net income
(loss)
|
$
|
(1,918)
|
|
|
$
|
(1,764)
|
|
|
$
|
(67)
|
|
|
$
|
(47)
|
|
|
$
|
(1,985)
|
|
|
$
|
(1,811)
|
|
Income tax
benefit
|
(509)
|
|
|
(463)
|
|
|
—
|
|
|
—
|
|
|
(509)
|
|
|
(463)
|
|
Interest expense and
related charges (a)
|
417
|
|
|
417
|
|
|
—
|
|
|
—
|
|
|
417
|
|
|
417
|
|
Depreciation and
amortization (b)
|
1,790
|
|
|
1,790
|
|
|
—
|
|
|
—
|
|
|
1,790
|
|
|
1,790
|
|
EBITDA before
Adjustments
|
$
|
(220)
|
|
|
$
|
(20)
|
|
|
$
|
(67)
|
|
|
$
|
(47)
|
|
|
$
|
(287)
|
|
|
$
|
(67)
|
|
Unrealized net
(gain)/loss resulting from hedging transactions
|
763
|
|
|
763
|
|
|
—
|
|
|
—
|
|
|
763
|
|
|
763
|
|
Fresh start / purchase
accounting impacts
|
(78)
|
|
|
(78)
|
|
|
—
|
|
|
—
|
|
|
(78)
|
|
|
(78)
|
|
Impacts of Tax
Receivable Agreement
|
(17)
|
|
|
(17)
|
|
|
—
|
|
|
—
|
|
|
(17)
|
|
|
(17)
|
|
Non-cash compensation
expenses
|
48
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
48
|
|
Transition and merger
expenses
|
27
|
|
|
27
|
|
|
(15)
|
|
|
(15)
|
|
|
12
|
|
|
12
|
|
Winter storm Uri
impacts (c)
|
1,326
|
|
|
1,326
|
|
|
—
|
|
|
—
|
|
|
1,326
|
|
|
1,326
|
|
Other, net
|
41
|
|
|
41
|
|
|
2
|
|
|
2
|
|
|
43
|
|
|
43
|
|
Adjusted EBITDA
guidance
|
$
|
1,890
|
|
|
$
|
2,090
|
|
|
$
|
(80)
|
|
|
$
|
(60)
|
|
|
$
|
1,810
|
|
|
$
|
2,030
|
|
Interest paid,
net
|
(504)
|
|
|
(504)
|
|
|
—
|
|
|
—
|
|
|
(504)
|
|
|
(504)
|
|
Tax (paid) / received
(d)
|
(44)
|
|
|
(44)
|
|
|
—
|
|
|
—
|
|
|
(44)
|
|
|
(44)
|
|
Tax receivable
agreement payments
|
(2)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(2)
|
|
Working capital and
margin deposits
|
(738)
|
|
|
(738)
|
|
|
(4)
|
|
|
(4)
|
|
|
(742)
|
|
|
(742)
|
|
Accrued environmental
allowances
|
253
|
|
|
253
|
|
|
—
|
|
|
—
|
|
|
253
|
|
|
253
|
|
Reclamation and
remediation
|
(38)
|
|
|
(38)
|
|
|
(66)
|
|
|
(66)
|
|
|
(104)
|
|
|
(104)
|
|
Winter storm Uri
impacts (e)
|
(500)
|
|
|
(500)
|
|
|
—
|
|
|
—
|
|
|
(500)
|
|
|
(500)
|
|
Other changes in other
operating assets and liabilities
|
(120)
|
|
|
(120)
|
|
|
(42)
|
|
|
(42)
|
|
|
(162)
|
|
|
(162)
|
|
Cash provided by
operating activities
|
$
|
197
|
|
|
$
|
397
|
|
|
$
|
(192)
|
|
|
$
|
(172)
|
|
|
$
|
5
|
|
|
$
|
225
|
|
Capital expenditures
including nuclear fuel purchases and LTSA prepayments
|
(639)
|
|
|
(639)
|
|
|
—
|
|
|
—
|
|
|
(639)
|
|
|
(639)
|
|
Solar and Moss Landing
development and other growth expenditures
|
(471)
|
|
|
(471)
|
|
|
—
|
|
|
—
|
|
|
(471)
|
|
|
(471)
|
|
(Purchase) / sale of
environmental credits and allowances
|
(197)
|
|
|
(197)
|
|
|
—
|
|
|
—
|
|
|
(197)
|
|
|
(197)
|
|
Other net investing
activities
|
(18)
|
|
|
(18)
|
|
|
8
|
|
|
8
|
|
|
(10)
|
|
|
(10)
|
|
Free cash
flow
|
$
|
(1,128)
|
|
|
$
|
(928)
|
|
|
$
|
(184)
|
|
|
$
|
(164)
|
|
|
$
|
(1,312)
|
|
|
$
|
(1,092)
|
|
Working capital and
margin deposits
|
738
|
|
|
738
|
|
|
4
|
|
|
4
|
|
|
742
|
|
|
742
|
|
Solar and Moss Landing
development and other growth expenditures
|
471
|
|
|
471
|
|
|
—
|
|
|
—
|
|
|
471
|
|
|
471
|
|
Accrued environmental
allowances
|
(253)
|
|
|
(253)
|
|
|
—
|
|
|
—
|
|
|
(253)
|
|
|
(253)
|
|
Purchase / (sale) of
environmental credits and allowances
|
197
|
|
|
197
|
|
|
—
|
|
|
—
|
|
|
197
|
|
|
197
|
|
Transition and merger
expenses
|
58
|
|
|
58
|
|
|
40
|
|
|
40
|
|
|
98
|
|
|
98
|
|
Transition capital
expenditures
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
Adjusted free cash
flow before growth guidance
|
$
|
100
|
|
|
$
|
300
|
|
|
$
|
(140)
|
|
|
$
|
(120)
|
|
|
$
|
(40)
|
|
|
$
|
180
|
|
|
|
|
|
|
|
1
Regulation G Table for 2021 Guidance prepared as of November 5,
2021.
|
(a)
|
Includes unrealized
(gain) / loss on interest rate swaps of ($105) million.
|
(b)
|
Includes nuclear fuel
amortization of $82 million.
|
(c)
|
Includes $500 million
securitization proceeds, $194 million for allocation of ERCOT
default uplift charges; accrual of Koch earn-out disputed amounts
of $286 million; $306 million for future bill credits related to
Winter Storm Uri and Winter Storm Uri related legal fees and other
costs. The adjustment for future bill credits relates to
large commercial and industrial customers that curtailed during
Winter Storm Uri and will reverse in future periods as the credits
are applied to customer bills. We estimate the amounts to be
applied in future years are 2022 (~$185 million), 2023 (~$84
million), 2024 (~$18 million), and 2025 (~$8 million).
|
(d)
|
Includes state tax
payments.
|
(e)
|
Adjustments for
non-cash impact of securitization proceeds.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - 2022 GUIDANCE1
(Unaudited)
(Millions of Dollars)
|
|
|
Ongoing
Operations
|
|
Asset
Closure
|
|
Vistra
Corp.
Consolidated
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net income
(loss)
|
$
|
1,027
|
|
|
$
|
1,401
|
|
|
$
|
(140)
|
|
|
$
|
(40)
|
|
|
$
|
887
|
|
|
$
|
1,361
|
|
Income tax
expense
|
301
|
|
|
427
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
427
|
|
Interest expense and
related charges (a)
|
467
|
|
|
467
|
|
|
—
|
|
|
—
|
|
|
467
|
|
|
467
|
|
Depreciation and
amortization (b)
|
1,640
|
|
|
1,640
|
|
|
—
|
|
|
—
|
|
|
1,640
|
|
|
1,640
|
|
EBITDA before
Adjustments
|
$
|
3,435
|
|
|
$
|
3,935
|
|
|
$
|
(140)
|
|
|
$
|
(40)
|
|
|
$
|
3,295
|
|
|
$
|
3,895
|
|
Unrealized net
(gain)/loss resulting from hedging transactions
|
(557)
|
|
|
(557)
|
|
|
—
|
|
|
—
|
|
|
(557)
|
|
|
(557)
|
|
Fresh start / purchase
accounting impacts
|
19
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
19
|
|
Impacts of Tax
Receivable Agreement
|
65
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
65
|
|
Non-cash compensation
expenses
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
38
|
|
Transition and merger
expenses
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Winter storm Uri
impacts (c)
|
(185)
|
|
|
(185)
|
|
|
—
|
|
|
—
|
|
|
(185)
|
|
|
(185)
|
|
Other, net
|
(7)
|
|
|
(7)
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
|
(7)
|
|
Adjusted EBITDA
guidance
|
$
|
2,810
|
|
|
$
|
3,310
|
|
|
$
|
(140)
|
|
|
$
|
(40)
|
|
|
$
|
2,670
|
|
|
$
|
3,270
|
|
Interest paid,
net
|
(514)
|
|
|
(514)
|
|
|
—
|
|
|
—
|
|
|
(514)
|
|
|
(514)
|
|
Tax (paid) / received
(d)
|
(44)
|
|
|
(44)
|
|
|
—
|
|
|
—
|
|
|
(44)
|
|
|
(44)
|
|
Tax receivable
agreement payments
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Working capital and
margin deposits
|
644
|
|
|
644
|
|
|
18
|
|
|
18
|
|
|
662
|
|
|
662
|
|
Accrued environmental
allowances
|
330
|
|
|
330
|
|
|
—
|
|
|
—
|
|
|
330
|
|
|
330
|
|
Reclamation and
remediation
|
(19)
|
|
|
(19)
|
|
|
(89)
|
|
|
(89)
|
|
|
(108)
|
|
|
(108)
|
|
Winter storm Uri
impacts (e)
|
500
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|
500
|
|
Other changes in other
operating assets and liabilities
|
58
|
|
|
58
|
|
|
(26)
|
|
|
(26)
|
|
|
32
|
|
|
32
|
|
Cash provided by
operating activities
|
$
|
3,764
|
|
|
$
|
4,264
|
|
|
$
|
(237)
|
|
|
$
|
(137)
|
|
|
$
|
3,527
|
|
|
$
|
4,127
|
|
Capital expenditures
including nuclear fuel purchases and LTSA prepayments
|
(717)
|
|
|
(717)
|
|
|
—
|
|
|
—
|
|
|
(717)
|
|
|
(717)
|
|
Solar and storage
development expenditures (f)
|
TBD
|
|
—
|
|
|
—
|
|
|
TBD
|
Other growth
expenditures
|
(120)
|
|
|
(120)
|
|
|
—
|
|
|
—
|
|
|
(120)
|
|
|
(120)
|
|
(Purchase) / sale of
environmental credits and allowances
|
(229)
|
|
|
(229)
|
|
|
—
|
|
|
—
|
|
|
(229)
|
|
|
(229)
|
|
Other net investing
activities
|
(20)
|
|
|
(20)
|
|
|
—
|
|
|
—
|
|
|
(20)
|
|
|
(20)
|
|
Free cash
flow
|
$
|
2,678
|
|
|
$
|
3,178
|
|
|
$
|
(237)
|
|
|
$
|
(137)
|
|
|
$
|
2,441
|
|
|
$
|
3,041
|
|
Working capital and
margin deposits
|
(644)
|
|
|
(644)
|
|
|
(18)
|
|
|
(18)
|
|
|
(662)
|
|
|
(662)
|
|
Solar and storage
development expenditures (f)
|
TBD
|
|
—
|
|
|
—
|
|
|
TBD
|
Other growth
expenditures
|
120
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
120
|
|
Accrued environmental
allowances
|
(330)
|
|
|
(330)
|
|
|
—
|
|
|
—
|
|
|
(330)
|
|
|
(330)
|
|
Purchase / (sale) of
environmental credits and allowances
|
229
|
|
|
229
|
|
|
—
|
|
|
—
|
|
|
229
|
|
|
229
|
|
Transition and merger
expenses
|
11
|
|
|
11
|
|
|
25
|
|
|
25
|
|
|
36
|
|
|
36
|
|
Transition capital
expenditures
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
Adjusted free cash
flow before growth guidance
|
$
|
2,070
|
|
|
$
|
2,570
|
|
|
$
|
(230)
|
|
|
$
|
(130)
|
|
|
$
|
1,840
|
|
|
$
|
2,440
|
|
|
|
|
|
|
|
1
Regulation G Table for 2021 Guidance prepared as of November 5,
2021.
|
(a)
|
Includes unrealized
(gain) / loss on interest rate swaps of ($50) million.
|
(b)
|
Includes nuclear fuel
amortization of $88 million.
|
(c)
|
Adjustment for bill
credits applied to large commercial and industrial customers that
curtailed during 2021 Winter Storm Uri. We estimate the amounts to
be applied in future years are 2023 (~$84 million), 2024 (~$18
million) and 2025 (~$8 million).
|
(d)
|
Includes state tax
payments.
|
(e)
|
Receipt of
securitization proceeds.
|
(f)
|
Estimates for solar
& energy capital expenditures in 2022 awaiting completion of
renewables financing strategy.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ILLUSTRATIVE 2022
GUIDANCE1
(Unaudited)
(Millions of Dollars)
|
|
|
Ongoing
Operations
|
|
Asset
Closure
|
|
Vistra
Corp.
Consolidated
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net income
(loss)
|
$
|
1,027
|
|
|
$
|
1,401
|
|
|
$
|
(140)
|
|
|
$
|
(40)
|
|
|
$
|
887
|
|
|
$
|
1,361
|
|
Income tax
expense
|
301
|
|
|
427
|
|
|
—
|
|
|
—
|
|
|
301
|
|
|
427
|
|
Interest expense and
related charges (a)
|
467
|
|
|
467
|
|
|
—
|
|
|
—
|
|
|
467
|
|
|
467
|
|
Depreciation and
amortization (b)
|
1,640
|
|
|
1,640
|
|
|
—
|
|
|
—
|
|
|
1,640
|
|
|
1,640
|
|
EBITDA before
Adjustments
|
$
|
3,435
|
|
|
$
|
3,935
|
|
|
$
|
(140)
|
|
|
$
|
(40)
|
|
|
$
|
3,295
|
|
|
$
|
3,895
|
|
Unrealized net
(gain)/loss resulting from hedging transactions
|
(557)
|
|
|
(557)
|
|
|
—
|
|
|
—
|
|
|
(557)
|
|
|
(557)
|
|
Fresh start / purchase
accounting impacts
|
19
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
19
|
|
Impacts of Tax
Receivable Agreement
|
65
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
65
|
|
Non-cash compensation
expenses
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
38
|
|
Transition and merger
expenses
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Winter storm Uri
impacts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other, net
(c)
|
48
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
48
|
|
Adjusted EBITDA
guidance
|
$
|
3,050
|
|
|
$
|
3,550
|
|
|
$
|
(140)
|
|
|
$
|
(40)
|
|
|
$
|
2,910
|
|
|
$
|
3,510
|
|
Interest paid,
net
|
(514)
|
|
|
(514)
|
|
|
—
|
|
|
—
|
|
|
(514)
|
|
|
(514)
|
|
Tax (paid) / received
(d)
|
(44)
|
|
|
(44)
|
|
|
—
|
|
|
—
|
|
|
(44)
|
|
|
(44)
|
|
Tax receivable
agreement payments
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Working capital and
margin deposits
|
644
|
|
|
644
|
|
|
18
|
|
|
18
|
|
|
662
|
|
|
662
|
|
Accrued environmental
allowances
|
330
|
|
|
330
|
|
|
—
|
|
|
—
|
|
|
330
|
|
|
330
|
|
Reclamation and
remediation
|
(19)
|
|
|
(19)
|
|
|
(89)
|
|
|
(89)
|
|
|
(108)
|
|
|
(108)
|
|
Winter storm Uri
impacts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other changes in other
operating assets and liabilities
|
58
|
|
|
58
|
|
|
(26)
|
|
|
(26)
|
|
|
32
|
|
|
32
|
|
Cash provided by
operating activities
|
$
|
3,504
|
|
|
$
|
4,004
|
|
|
$
|
(237)
|
|
|
$
|
(137)
|
|
|
$
|
3,267
|
|
|
$
|
3,867
|
|
Capital expenditures
including nuclear fuel purchases and LTSA prepayments
|
(717)
|
|
|
(717)
|
|
|
—
|
|
|
—
|
|
|
(717)
|
|
|
(717)
|
|
Solar and storage
development expenditures (e)
|
TBD
|
|
—
|
|
|
—
|
|
|
TBD
|
Other growth
expenditures
|
(120)
|
|
|
(120)
|
|
|
—
|
|
|
—
|
|
|
(120)
|
|
|
(120)
|
|
(Purchase) / sale of
environmental credits and allowances
|
(229)
|
|
|
(229)
|
|
|
—
|
|
|
—
|
|
|
(229)
|
|
|
(229)
|
|
Other net investing
activities
|
(20)
|
|
|
(20)
|
|
|
—
|
|
|
—
|
|
|
(20)
|
|
|
(20)
|
|
Free cash
flow
|
$
|
2,418
|
|
|
$
|
2,918
|
|
|
$
|
(237)
|
|
|
$
|
(137)
|
|
|
$
|
2,181
|
|
|
$
|
2,781
|
|
Working capital and
margin deposits
|
(644)
|
|
|
(644)
|
|
|
(18)
|
|
|
(18)
|
|
|
(662)
|
|
|
(662)
|
|
Solar and storage
development expenditures (e)
|
TBD
|
|
—
|
|
|
—
|
|
|
TBD
|
Other growth
expenditures
|
120
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
120
|
|
Accrued environmental
allowances
|
(330)
|
|
|
(330)
|
|
|
—
|
|
|
—
|
|
|
(330)
|
|
|
(330)
|
|
Purchase / (sale) of
environmental credits and allowances
|
229
|
|
|
229
|
|
|
—
|
|
|
—
|
|
|
229
|
|
|
229
|
|
Transition and merger
expenses
|
11
|
|
|
11
|
|
|
25
|
|
|
25
|
|
|
36
|
|
|
36
|
|
Transition capital
expenditures
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
Adjusted free cash
flow before growth guidance
|
$
|
1,810
|
|
|
$
|
2,310
|
|
|
$
|
(230)
|
|
|
$
|
(130)
|
|
|
$
|
1,580
|
|
|
$
|
2,180
|
|
|
|
|
|
|
|
1
Regulation G Table for 2021 Guidance prepared as of November 5,
2021. 2022 Illustrative Guidance excludes ~$185 million impact from
bill credits applied to large commercial and industrial customer
bills that curtailed during Uri and ~$55 million impact from retail
term contract backwardation. Also excludes $500 million
securitization proceeds from Adjusted FCFbG. Provided for
illustrative purposes only and should not be read or viewed as
Vistra's actual 2022 guidance, which is also set forth
above.
|
(a)
|
Includes unrealized
(gain) / loss on interest rate swaps of ($50) million.
|
(b)
|
Includes nuclear fuel
amortization of $88 million.
|
(c)
|
Includes $55 million
adjustment for retail term contracts backwardation
|
(d)
|
Includes state tax
payments.
|
(e)
|
Estimates for solar
& energy capital expenditures in 2022 awaiting completion of
renewables financing strategy.
|
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multimedia:https://www.prnewswire.com/news-releases/vistra-reports-third-quarter-2021-results-and-announces-additional-long-term-capital-allocation-plan-details-301417410.html
SOURCE Vistra Corp.