IRVING,
Texas, May 6, 2022 /PRNewswire/ -- Vistra (NYSE:
VST) today reported its first quarter 2022 results:
Financial and Operating Highlights
- Delivered first quarter 2022 Net Loss of $(284) million and Net Loss from Ongoing
Operations1 of $(222)
million. First quarter 2022 Ongoing Operations Adjusted
EBITDA1 was $547
million.
- Reaffirmed with increased confidence 2022 Ongoing Operations
Adjusted EBITDA1 and Ongoing Operations Adjusted
FCFbG1 guidance ranges of $2,810 to $3,310
million and $2,070 to
$2,570 million, respectively, which
reflects an expected Adjusted EBITDA to Adjusted FCFbG conversion
of ~76%, including the cash effect of ERCOT securitization of
$544 million expected to be received
in second quarter 2022.
- Executed ~$1,195 million of the
authorized $2 billion share
repurchase program as of May 3, 2022,
resulting in net shares outstanding of ~431.8 million as of the
same date, a ~10.5% reduction in shares outstanding since the
program was announced in November
2021.
- Paid a first quarter 2022 dividend of $0.17 per share of common stock on March 31, 2022, to shareholders of record as of
March 22, 2022.
- Announced second quarter 2022 dividend of $0.177 per share of common stock to be paid on
June 30, 2022, to shareholders of
record as of June 22, 2022,
reflecting an aggregate payment of ~$75
million for the quarter and consistent with the previously
announced $300 million per year
dividend commitment beginning in 2022. This represents an ~18%
increase in the company's quarterly common stock dividend for
shareholders of record from its second quarter 2021 dividend.
- Completed construction of its 50-MW Brightside Solar Facility,
108-MW Emerald Grove Solar Facility, and 260-MW DeCordova Energy
Storage Facility, all located in Texas.
"We are starting the year with a focus on execution. We
delivered Adjusted EBITDA in the quarter in line with company
expectations with increasing confidence in full year 2022, are
executing on a comprehensive hedging strategy to capitalize on the
beneficial power and commodities markets that is expected to
provide significant value to Vistra in 2023 and beyond, and are
continuing the advancement of our capital allocation priorities,
returning capital through stock repurchases and paying a meaningful
and growing dividend. We have also continued prudently progressing
our Vistra Zero development projects, completing two solar
facilities and one battery energy storage facility in Texas: Brightside, Emerald Grove, and DeCordova." said Curt Morgan, CEO of Vistra. "In the quarter, I
also announced my transition from CEO with my colleague and
friend, Jim Burke, assuming the
responsibilities effective Aug. 1.
Vistra is as strong as ever with the right strategy and capital
allocation plan, and we are well-positioned for the current market
environment. It is the right time for this orderly and seamless
transition as Jim is ready to lead our company. Jim has been
integral to the design of our direction going forward, and the
Board and I have full confidence in his capabilities and commitment
to Vistra. I look forward to watching him successfully lead Vistra
into the future."
(1)
|
Excludes the Asset
Closure segment. Net Income (Loss) 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.
|
Summary of Financial Results for the First Quarter Ended
March 31, 2022
|
|
Three Months
Ended
|
|
($ in
millions)
|
|
March 31,
2022
|
March 31,
20212
|
|
Net Loss
|
|
$ (284)
|
$ (2,040)
|
|
Ongoing Operations Net
Loss1
|
|
$ (222)
|
$ (1,992)
|
|
Ongoing Operations
Adjusted EBITDA1
|
|
$ 547
|
$ (1,208)
|
|
Adjusted EBITDA by
Segment
|
|
|
|
|
Retail
|
|
$ 163
|
$ (199)
|
|
Texas
|
|
$ 171
|
$ (1,352)
|
|
East
|
|
$ 148
|
$ 220
|
|
West
|
|
$ 25
|
$ 24
|
|
Sunset
|
|
$ 50
|
$ 101
|
|
Corp./Other
|
|
$ (10)
|
$ (2)
|
|
Asset Closure
|
|
$ (6)
|
$ (33)
|
|
For the three months ended March 31,
2022, Vistra reported Net Loss of $(284) million, Net Loss from Ongoing
Operations1 of $(222)
million, and Ongoing Operations Adjusted EBITDA1
of $547 million. Vistra's first
quarter 2022 Net Loss of $(284)
million reflects a $1,756
million improvement over first quarter 2021 Net Loss of
$(2,040) million, driven primarily by
the negative impacts of Winter Storm
Uri in first quarter 2021. Vistra's first quarter
Adjusted EBITDA from Ongoing Operations was $1,755 million higher than first quarter 2021
results2, similarly primarily driven by negative impacts
of Winter Storm Uri in first quarter
2021.
Vistra reported first quarter 2022 Adjusted EBITDA from the
Retail segment of $163 million,
approximately $362 million higher
than first quarter 2021 results, driven primarily by Winter Storm Uri impacts in first quarter 2021
with some offset in first quarter 2022 by intra-year power cost
seasonality (with expected offset in later months of
2022). First quarter 2022 Adjusted EBITDA from the generation
segments3, on an aggregate basis, totaled $384 million, $1,393
million higher than first quarter 2021 results2
driven primarily by the negative impacts of Winter Storm Uri in first quarter 2021.
(1)
|
Excludes the Asset
Closure segment. Net Income (Loss) 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. Total by segment may not
tie due to rounding.
|
(2)
|
Q1 2021 Ongoing
Operations Net Loss decreased $48 million and Q1 2021 Ongoing
Operations Adjusted EBITDA increased by $19 million due to the
recast of Joppa Power Plant and Zimmer Power Plant, both to cease
operations in 2022, to the Asset Closure segment.
|
(3)
|
Includes Texas, East,
West, Sunset, and Corp./Other.
|
Guidance
($ in
millions)
|
2022
|
Ongoing Ops. Adj.
EBITDA1
|
$2,810 –
$3,310
|
Ongoing Ops. Adj.
FCFbG1
|
$2,070 –
$2,570
|
Vistra is reaffirming its 2022 Ongoing Operations Adjusted
EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of
$2,810 to $3,310 million and $2,070 to $2,570
million, respectively.
(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
detail.
|
Share Repurchase Program
As of May 3, 2022, Vistra has
completed approximately $1,195
million in share repurchases under the $2 billion share repurchase program previously
authorized by its board of directors. Vistra has purchased
approximately 54 million shares since Nov.
2, 2021, resulting in net shares outstanding of
approximately 431.8 million as of May 3,
2022, reflecting a ~10.5% reduction in shares since the
program was announced. Approximately $805
million remains available for execution under the program as
of the same date.
Liquidity
As of March 31, 2022, Vistra had
total available liquidity of ~$3,135
million, including cash and cash equivalents of $1,022 million, $1,113
million of availability under its revolving credit facility,
and $1,000 million of availability
under its commodity-linked facility.
Earnings Webcast
Vistra will host a webcast today, May 6,
2022, 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), "Net
Income (Loss) 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), 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 (Loss) 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.
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, 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 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 the 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, 2021
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 March 31,
|
|
2022
|
|
2021
|
Operating
revenues
|
$
3,125
|
|
$
3,207
|
Fuel, purchased power
costs and delivery fees
|
(2,279)
|
|
(4,745)
|
Operating
costs
|
(416)
|
|
(371)
|
Depreciation and
amortization
|
(430)
|
|
(423)
|
Selling, general and
administrative expenses
|
(288)
|
|
(251)
|
Operating
loss
|
(288)
|
|
(2,583)
|
Other income
|
5
|
|
55
|
Other
deductions
|
(4)
|
|
(5)
|
Interest expense and
related charges
|
(7)
|
|
(29)
|
Impacts of Tax
Receivable Agreement
|
(81)
|
|
37
|
Loss before income
taxes
|
(375)
|
|
(2,525)
|
Income tax
benefit
|
91
|
|
485
|
Net loss
|
$
(284)
|
|
$
(2,040)
|
Net income attributable
to noncontrolling interest
|
(1)
|
|
(3)
|
Net loss attributable
to Vistra
|
$
(285)
|
|
$
(2,043)
|
VISTRA CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited) (Millions of
Dollars)
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
Cash flows — operating
activities:
|
|
|
|
Net loss
|
$
(284)
|
|
$
(2,040)
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities :
|
|
|
|
Depreciation and
amortization
|
542
|
|
511
|
Deferred income tax
expense (benefit), net
|
(84)
|
|
(524)
|
Unrealized net (gain)
loss from mark-to-market valuations of commodities
|
360
|
|
(96)
|
Unrealized net gain
from mark-to-market valuations of interest rate swaps
|
(126)
|
|
(88)
|
Asset retirement
obligation accretion expense
|
9
|
|
11
|
Impacts of Tax
Receivable Agreement
|
81
|
|
(37)
|
Stock-based
compensation
|
14
|
|
16
|
Other, net
|
32
|
|
11
|
Changes in operating
assets and liabilities:
|
|
|
|
Margin deposits,
net
|
210
|
|
(134)
|
Accrued
interest
|
(62)
|
|
(75)
|
Accrued
taxes
|
(98)
|
|
(79)
|
Accrued employee
incentive
|
(59)
|
|
(128)
|
Other operating assets
and liabilities
|
56
|
|
999
|
Cash provided by (used
in) operating activities
|
591
|
|
(1,653)
|
Cash flows — investing
activities:
|
|
|
|
Capital expenditures,
including nuclear fuel purchases and LTSA prepayments
|
(373)
|
|
(192)
|
Proceeds from sales of
nuclear decommissioning trust fund securities
|
98
|
|
133
|
Investments in nuclear
decommissioning trust fund securities
|
(103)
|
|
(138)
|
Proceeds from sales of
environmental allowances
|
7
|
|
45
|
Purchases of
environmental allowances
|
(116)
|
|
(28)
|
Insurance
proceeds
|
1
|
|
40
|
Other, net
|
6
|
|
11
|
Cash used in investing
activities
|
(480)
|
|
(129)
|
Cash flows — financing
activities:
|
|
|
|
Borrowings under Term
Loan A
|
—
|
|
1,000
|
Proceeds from forward
capacity agreement
|
—
|
|
500
|
Repayments/repurchases
of debt
|
(132)
|
|
(36)
|
Net borrowings under
accounts receivable financing
|
500
|
|
425
|
Borrowings under
Revolving Credit Facility
|
—
|
|
1,300
|
Repayments under
Revolving Credit Facility
|
—
|
|
(1,000)
|
Share
repurchases
|
(710)
|
|
(175)
|
Dividends paid to
common stockholders
|
(77)
|
|
(74)
|
Other, net
|
6
|
|
(1)
|
Cash (used in) provided
by financing activities
|
(413)
|
|
1,939
|
Net change in cash,
cash equivalents and restricted cash
|
(302)
|
|
157
|
Cash, cash equivalents
and restricted cash — beginning balance
|
1,359
|
|
444
|
Cash, cash equivalents
and restricted cash — ending balance
|
$
1,057
|
|
$
601
|
VISTRA
CORP. NON-GAAP RECONCILIATIONS - ADJUSTED
EBITDA FOR THE THREE MONTHS ENDED MARCH 31,
2022 (Unaudited) (Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
Net income (loss)
|
$
2,428
|
|
$ (1,972)
|
|
$
(128)
|
|
$ (61)
|
|
$
(450)
|
|
$
(39)
|
|
$
(222)
|
|
$ (62)
|
|
$
(284)
|
Income tax
benefit
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(91)
|
|
(91)
|
|
—
|
|
(91)
|
Interest expense
and
related charges (a)
|
1
|
|
(5)
|
|
2
|
|
—
|
|
1
|
|
8
|
|
7
|
|
—
|
|
7
|
Depreciation and
amortization (b)
|
36
|
|
145
|
|
179
|
|
42
|
|
19
|
|
17
|
|
438
|
|
14
|
|
452
|
EBITDA before
Adjustments
|
2,465
|
|
(1,832)
|
|
53
|
|
(19)
|
|
(430)
|
|
(105)
|
|
132
|
|
(48)
|
|
84
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
(2,306)
|
|
2,031
|
|
93
|
|
44
|
|
465
|
|
—
|
|
327
|
|
33
|
|
360
|
Generation plant
retirement expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
—
|
|
4
|
|
2
|
|
6
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
81
|
|
81
|
|
—
|
|
81
|
Non-cash
compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17
|
|
17
|
|
—
|
|
17
|
Transition and
merger
expenses
|
6
|
|
—
|
|
1
|
|
—
|
|
—
|
|
10
|
|
17
|
|
—
|
|
17
|
Winter Storm Uri
impacts (c)
|
(12)
|
|
(42)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(54)
|
|
—
|
|
(54)
|
Other, net
|
10
|
|
14
|
|
1
|
|
—
|
|
11
|
|
(13)
|
|
23
|
|
7
|
|
30
|
Adjusted EBITDA
|
$ 163
|
|
$ 171
|
|
$ 148
|
|
$
25
|
|
$
50
|
|
$
(10)
|
|
$
547
|
|
$
(6)
|
|
$
541
|
______
|
|
(a)
|
Includes $126 million
of unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $22 million in the Texas segment.
|
(c)
|
Adjusted EBITDA impacts
of Winter Storm Uri reflects the application of bill credits to
large commercial and industrial
customers that curtailed their usage during Winter Storm Uri and a
reduction in the allocation of ERCOT default uplift
charges which are expected to be paid over several decades under
current protocols. We estimate bill credit amounts to be
applied in future periods are for the remainder of 2022
(approximately $119 million), 2023 (approximately $57 million),
2024 (approximately $43 million) and 2025 (approximately $1
million).
|
VISTRA
CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE MONTHS ENDED MARCH 31, 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)
|
$ 88
|
|
$ (2,518)
|
|
$
1
|
|
$ (31)
|
|
$
5
|
|
$
463
|
|
$ (1,992)
|
|
$ (48)
|
|
$ (2,040)
|
Income tax
benefit
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(485)
|
|
(485)
|
|
—
|
|
(485)
|
Interest expense
and
related charges (a)
|
2
|
|
(3)
|
|
1
|
|
(4)
|
|
1
|
|
32
|
|
29
|
|
—
|
|
29
|
Depreciation and
amortization (b)
|
53
|
|
144
|
|
196
|
|
5
|
|
25
|
|
16
|
|
439
|
|
4
|
|
443
|
EBITDA before
Adjustments
|
143
|
|
(2,377)
|
|
198
|
|
(30)
|
|
31
|
|
26
|
|
(2,009)
|
|
(44)
|
|
(2,053)
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
(783)
|
|
522
|
|
20
|
|
53
|
|
67
|
|
—
|
|
(121)
|
|
25
|
|
(96)
|
Generation plant
retirement expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
|
2
|
|
—
|
|
2
|
Fresh start /
purchase
accounting impacts
|
1
|
|
(1)
|
|
(1)
|
|
—
|
|
2
|
|
—
|
|
1
|
|
—
|
|
1
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(37)
|
|
(37)
|
|
—
|
|
(37)
|
Non-cash compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17
|
|
17
|
|
—
|
|
17
|
Transition and
merger
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
|
(15)
|
|
(14)
|
Winter Storm Uri
impacts (c)
|
432
|
|
501
|
|
—
|
|
—
|
|
1
|
|
—
|
|
934
|
|
—
|
|
934
|
Other, net
|
8
|
|
3
|
|
3
|
|
1
|
|
(1)
|
|
(10)
|
|
4
|
|
1
|
|
5
|
Adjusted EBITDA
|
$
(199)
|
|
$(1,352)
|
|
$ 220
|
|
$
24
|
|
$ 101
|
|
$
(2)
|
|
$ (1,208)
|
|
$
(33)
|
|
$ (1,241)
|
|
|
________________
|
(a)
|
Includes $88 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 the following
Winter Storm Uri impacts, which we believe are not reflective of
our operating performance: the
allocation of ERCOT default uplift charges which are expected to be
paid over several decades under current protocols,
accrual of Koch earn-out amounts that we will pay by the end of the
second quarter of 2022, 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 their
usage during Winter Storm Uri and will reverse and impact
Adjusted EBITDA in future periods as the credits are applied to
customer bills. 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.
|
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)
|
(1,002)
|
|
(1,002)
|
|
—
|
|
—
|
|
(1,002)
|
|
(1,002)
|
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
|
$
1,676
|
|
$
2,176
|
|
$
(237)
|
|
$
(137)
|
|
$
1,439
|
|
$
2,039
|
Working capital and
margin deposits
|
(644)
|
|
(644)
|
|
(18)
|
|
(18)
|
|
(662)
|
|
(662)
|
Solar and storage
development expenditures (f)
|
1,002
|
|
1,002
|
|
—
|
|
—
|
|
1,002
|
|
1,002
|
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
2022 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 benefit.
|
(f)
|
Amounts previously
reflected as TBD, pending the announcement of our renewables
financing strategy, when guidance
was initiated on November 5, 2021. Following such announcement in
December 2021, amounts have been updated consistent
with our expectations as of November 5, 2021.
|
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SOURCE Vistra Corp.