IRVING,
Texas, Aug. 5, 2022 /PRNewswire/ -- Vistra (NYSE:
VST) today reported its second quarter 2022 results:
Financial and Operating Highlights
‒ Continued to experience favorable
pricing environment allowing Vistra the opportunity to lock in
future value through the continued execution of its comprehensive
hedging strategy. Driven by the material increase in forward power
prices, which requires Vistra to record the current non-cash,
unrealized impact of mark-to-market hedging losses for GAAP
purposes, recorded second quarter 2022 Net Loss of $(1,357) million and Net Loss from Ongoing
Operations1 of $(1,312)
million. The second quarter 2022 Net Loss includes
$(1,987) million of such unrealized
losses from mark-to-market valuations of commodity positions, the
net impacts of which are not expected to be realized in future
quarters assuming the company fulfills its obligations through
normal course operations.
‒ Delivered second quarter 2022 Ongoing Operations
Adjusted EBITDA1 of $761
million. Full year results tracking above midpoint for
2022 Ongoing Operations Adjusted EBITDA1 and Ongoing
Operations Adjusted FCFbG1 guidance ranges of
$2,810 million to $3,310 million and $2,070
million to $2,570 million,
respectively.
‒ Continued executing on comprehensive hedging program,
locking in significant value opportunities in future years. As of
June 30, 2022, Vistra has hedged over
60% of its expected generation volumes on average for the three
-year period 2023 to 2025, with 2023 hedged at approximately
80%.
‒ Vistra's hedging program supports Ongoing Operations
Adjusted EBITDA mid-point opportunities in the range of
$3,500 million to $3,700 million in years 2023 to
2025.2
‒ Achieved best residential
customer growth in a quarter for TXU Energy in nearly 15 years,
also achieved 95% commercial availability3 in an
unseasonably warm second quarter.
‒ Executed approximately
$1.6 billion of the originally
authorized $2 billion share
repurchase program as of Aug. 2,
2022, with such repurchases representing approximately 14.6%
of the shares outstanding as of Nov.
2, 2021. We expect to execute the remaining portion of
the $2 billion authorization before
year-end 2022. Accordingly, the board of directors has
authorized an incremental $1.25
billion for share repurchases effective immediately.
We now have approximately $1.65
billion of authorization remaining for share repurchases,
which we expect to utilize between now and year-end 2023. Taken
together, the board has authorized a cumulative $3.25 billion in share repurchases since Vistra
announced its capital allocation plan in Nov. 2021.
‒ Declared third quarter 2022 dividend of $0.184 per share of common stock, representing an
approximately 23% increase from the company's third quarter 2021
dividend; paid a second quarter 2022 dividend of $0.177 per share of common stock on June 30, 2022.
‒ Restored Phases I and II of the
400-megawatt Moss Landing Energy Storage Facility to service at 98%
of its maximum capacity on the expected schedule and prior to the
hot California summer months.
Announced its 50MW Brightside Solar Facility was online in April
2022. Announced in each of May and June 2022 that its 260MW DeCordova Energy Storage
Facility and its 108MW Emerald Grove Solar Facility were online,
respectively. Actively reviewing its development portfolio for
additional opportunities in light of market conditions and the
newly introduced Inflation Reduction Act.
"We continue to prioritize the realization of our four
previously announced strategic priorities, while fulfilling our
everyday mission: to provide reliable, affordable and ever-cleaner
power to the communities we serve. We delivered strong results in
the second quarter and are focused on executing well this summer in
both generation and retail," said Jim
Burke, president and CEO of Vistra. "Our comprehensive
hedging strategy continues to lock in significant potential value
in the outer years 2023-2025. This plan combined with our
operational performance has increased our confidence in the outlook
for 2022 and beyond. The authorization of the incremental
$1.25 billion for share repurchases
is a testament to the confidence that the board and management have
in Vistra's future. We are committed to providing the power that
the electric grid and our customers need, growing our Vistra Zero
portfolio, all while driving significant shareholder value."
(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.
|
(2)
|
Reflects potential
mid-point opportunity range of Ongoing Operations Adjusted EBITDA
for years 2023-2025 based on curves as of April 29, 2022; this
range of opportunities is not intended to be guidance.
|
(3)
|
Commercial availability
defined as measure of the ability of the fossil fleets in the
Texas, East, West and Sunset segments to meet demand during the
highest margin hours.
|
Summary of Financial Results for the Second Quarter Ended
June 30, 2022
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
(loss)
|
$
(1,357)
|
|
$
35
|
|
$
(1,641)
|
|
$
(2,004)
|
Ongoing operations net
income (loss)
|
$
(1,312)
|
|
$
227
|
|
$
(1,534)
|
|
$
(1,765)
|
Ongoing operations
Adjusted EBITDA
|
$
761
|
|
$
854
|
|
$
1,308
|
|
$
(354)
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by Segment
|
|
|
|
|
|
|
|
Retail
|
$
403
|
|
$
510
|
|
$
566
|
|
$
310
|
Texas
|
$
181
|
|
$
144
|
|
$
351
|
|
$
(1,208)
|
East
|
$
164
|
|
$
160
|
|
$
312
|
|
$
380
|
West
|
$
40
|
|
$
21
|
|
$
66
|
|
$
45
|
Sunset
|
$
(16)
|
|
$
25
|
|
$
33
|
|
$
127
|
Corporate and
Other
|
$
(11)
|
|
$
(6)
|
|
$
(20)
|
|
$
(8)
|
Asset
Closure
|
$
(24)
|
|
$
(43)
|
|
$
(30)
|
|
$
(76)
|
For the three months ended June 30,
2022, Vistra reported Net Loss of $(1,357) million, Net Loss from Ongoing
Operations1 of $(1,312)
million, and Ongoing Operations Adjusted EBITDA1
of $761 million. Vistra's second
quarter 2022 Net Loss of $(1,357)
million reflects a change of $(1,392)
million as compared second quarter 2021 Net Income of
$35 million, driven by the GAAP
accounting impacts of approximately $2
billion of mark-to-market non-cash, unrealized hedging
losses in second quarter 2022 recorded solely as a result of a
material increase in forward power prices. Vistra's second quarter
2022 Adjusted EBITDA from Ongoing Operations was $93 million lower than second quarter 2021
results2, primarily driven by the positive impacts of
self-help initiatives in second quarter 2021 that were one-time
benefits.
Vistra reported second quarter 2022 Adjusted EBITDA from Ongoing
Operations from the Retail segment of $403
million, approximately $107
million lower than second quarter 2021 results, driven by
the impact of the above-referenced self-help initiatives in second
quarter 2021 that were one-time benefits, offset by favorable
margins, residential customer counts and weather in Texas in second quarter 2022. Second quarter
2022 Adjusted EBITDA from Ongoing Operations from the generation
segments3, on an aggregate basis, totaled $358 million, $14
million higher than second quarter 2021 results2
driven primarily by impacts of favorable pricing offset by coal
constraints and one-time benefits of self-help initiatives in
second 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)
|
Q2 2021 Ongoing
Operations Net Income increased $178 million and Q2 2021 Ongoing
Operations Adjusted EBITDA increased by $29 million due to the
recast of Joppa Power Plant and Zimmer Power Plant, both ceasing
operations in 2022, to the Asset Closure segment. Six months ended
June 30, 2021 Ongoing Operations Net Income increased $226 million
and six months ended June 30, 2021 Ongoing Operations Adjusted
EBITDA increased $48 due to the recast of Joppa Power Plant and
Zimmer Power Plant to the Asset Closure segment.
|
(3)
|
Includes Texas, East,
West, Sunset, and Corp./Other.
|
Guidance
($ 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
EBITDA1 and Ongoing Operations Adjusted
FCFbG1 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 Aug. 2, 2022, Vistra has
completed approximately $1.6 billion
in share repurchases under its existing $2
billion share repurchase program. Vistra has purchased
approximately 70.5 million shares since Nov.
2, 2021, representing approximately 14.6% of the shares
outstanding at that time. Taking into account the incremental
$1.25 billion authorization,
approximately $1.65 billion remains
available for execution under the program, which we expect to
execute by year-end 2023.
Liquidity
As of June 30, 2022, Vistra had
total available liquidity of approximately $3,439 million,
including cash and cash equivalents of $1,871 million, $368
million of availability under its corporate revolving credit
facility, and $1,200 million of
availability under its commodity-linked revolving credit facility
assuming the borrowing base equals the aggregate commitments of
$2.25 billion.
Earnings Webcast
Vistra will host a webcast today, Aug. 5,
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 500 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. Serving
approximately 4 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Operating
revenues
|
$
1,588
|
|
$
2,565
|
|
$
4,713
|
|
$
5,772
|
|
Fuel, purchased power
costs and delivery fees
|
(2,162)
|
|
(1,320)
|
|
(4,441)
|
|
(6,065)
|
|
Operating
costs
|
(435)
|
|
(429)
|
|
(851)
|
|
(801)
|
|
Depreciation and
amortization
|
(394)
|
|
(464)
|
|
(824)
|
|
(887)
|
|
Selling, general and
administrative expenses
|
(280)
|
|
(252)
|
|
(569)
|
|
(502)
|
|
Impairment of
long-lived assets
|
—
|
|
(38)
|
|
—
|
|
(38)
|
|
Operating income
(loss)
|
(1,683)
|
|
62
|
|
(1,972)
|
|
(2,521)
|
|
Other income
|
71
|
|
36
|
|
77
|
|
92
|
|
Other
deductions
|
(9)
|
|
(2)
|
|
(13)
|
|
(7)
|
|
Interest expense and
related charges
|
(109)
|
|
(135)
|
|
(116)
|
|
(164)
|
|
Impacts of Tax
Receivable Agreement
|
(34)
|
|
(41)
|
|
(115)
|
|
(4)
|
|
Loss before income
taxes
|
(1,764)
|
|
(80)
|
|
(2,139)
|
|
(2,604)
|
|
Income tax
benefit
|
407
|
|
115
|
|
498
|
|
600
|
|
Net income
(loss)
|
$
(1,357)
|
|
$
35
|
|
$
(1,641)
|
|
$
(2,004)
|
|
Net (income) loss
attributable to noncontrolling interest
|
(8)
|
|
1
|
|
(9)
|
|
(2)
|
|
Net income (loss)
attributable to Vistra
|
$
(1,365)
|
|
$
36
|
|
$
(1,650)
|
|
$
(2,006)
|
|
VISTRA
CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions of Dollars)
|
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
Cash flows — operating
activities:
|
|
|
|
Net loss
|
$
(1,641)
|
|
$
(2,004)
|
Adjustments to
reconcile net loss to cash used in operating activities:
|
|
|
|
Depreciation and
amortization
|
1,054
|
|
969
|
Deferred income tax
benefit, net
|
(501)
|
|
(626)
|
Impairment of
long-lived assets
|
—
|
|
38
|
Unrealized net loss
from mark-to-market valuations of commodities
|
2,347
|
|
182
|
Unrealized net gain
from mark-to-market valuations of interest rate swaps
|
(171)
|
|
(79)
|
Asset retirement
obligation accretion expense
|
17
|
|
19
|
Impacts of Tax
Receivable Agreement
|
115
|
|
4
|
Stock-based
compensation
|
34
|
|
25
|
Other, net
|
66
|
|
56
|
Changes in operating
assets and liabilities:
|
|
|
|
Margin deposits,
net
|
(1,893)
|
|
(240)
|
Uplift securitization
proceeds receivable from ERCOT
|
544
|
|
—
|
Accrued
interest
|
13
|
|
8
|
Accrued
taxes
|
(62)
|
|
(75)
|
Accrued employee
incentive
|
(38)
|
|
(107)
|
Other operating assets
and liabilities
|
(607)
|
|
773
|
Cash used in operating
activities
|
(723)
|
|
(1,057)
|
Cash flows — investing
activities:
|
|
|
|
Capital expenditures,
including nuclear fuel purchases and LTSA prepayments
|
(613)
|
|
(546)
|
Proceeds from sales of
nuclear decommissioning trust fund securities
|
334
|
|
267
|
Investments in nuclear
decommissioning trust fund securities
|
(345)
|
|
(277)
|
Proceeds from sales of
environmental allowances
|
266
|
|
64
|
Purchases of
environmental allowances
|
(258)
|
|
(173)
|
Insurance
proceeds
|
1
|
|
63
|
Proceeds from sale of
assets
|
14
|
|
8
|
Other, net
|
(8)
|
|
19
|
Cash used in investing
activities
|
(609)
|
|
(575)
|
Cash flows — financing
activities:
|
|
|
|
Issuances of long-term
debt
|
1,498
|
|
1,250
|
Borrowings under
Commodity-Linked Facility
|
2,750
|
|
—
|
Repayments under
Commodity-Linked Facility
|
(1,700)
|
|
—
|
Borrowings under Term
Loan A
|
—
|
|
1,250
|
Repayment under Term
Loan A
|
—
|
|
(1,250)
|
Proceeds from forward
capacity agreement
|
—
|
|
500
|
Repayments/repurchases
of debt
|
(223)
|
|
(101)
|
Net borrowings under
accounts receivable financing
|
725
|
|
361
|
Borrowings under
Revolving Credit Facility
|
1,500
|
|
1,300
|
Repayments under
Revolving Credit Facility
|
(1,250)
|
|
(1,300)
|
Share
repurchases
|
(1,194)
|
|
(175)
|
Dividends paid to
common stockholders
|
(152)
|
|
(147)
|
Dividends paid to
preferred stockholders
|
(76)
|
|
—
|
Debt tender offer and
other financing fees
|
(21)
|
|
(13)
|
Other, net
|
23
|
|
(4)
|
Cash provided by
financing activities
|
1,880
|
|
1,671
|
Net change in cash,
cash equivalents and restricted cash
|
548
|
|
39
|
Cash, cash equivalents
and restricted cash — beginning balance
|
1,359
|
|
444
|
Cash, cash equivalents
and restricted cash — ending balance
|
$
1,907
|
|
$
483
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE MONTHS
ENDED JUNE 30, 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)
|
$ 898
|
|
$ (1,638)
|
|
$
(662)
|
|
$ 25
|
|
$
(168)
|
|
$
233
|
|
$ (1,312)
|
|
$ (45)
|
|
$ (1,357)
|
Income tax
expense
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(407)
|
|
(407)
|
|
—
|
|
(407)
|
Interest expense and
related charges (a)
|
4
|
|
(6)
|
|
1
|
|
(1)
|
|
—
|
|
110
|
|
108
|
|
1
|
|
109
|
Depreciation and
amortization (b)
|
36
|
|
164
|
|
179
|
|
(11)
|
|
18
|
|
17
|
|
403
|
|
9
|
|
412
|
EBITDA before
Adjustments
|
938
|
|
(1,480)
|
|
(482)
|
|
13
|
|
(150)
|
|
(47)
|
|
(1,208)
|
|
(35)
|
|
(1,243)
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(500)
|
|
1,665
|
|
645
|
|
28
|
|
140
|
|
—
|
|
1,978
|
|
9
|
|
1,987
|
Generation plant
retirement expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
(1)
|
|
—
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
34
|
|
34
|
|
—
|
|
34
|
Non-cash compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17
|
|
17
|
|
—
|
|
17
|
Transition and merger
expenses
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
—
|
|
3
|
Winter Storm Uri
impacts (c)
|
(52)
|
|
(10)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(62)
|
|
—
|
|
(62)
|
Other, net
|
14
|
|
6
|
|
1
|
|
(1)
|
|
(7)
|
|
(15)
|
|
(2)
|
|
3
|
|
1
|
Adjusted
EBITDA
|
$
403
|
|
$
181
|
|
$
164
|
|
$ 40
|
|
$
(16)
|
|
$
(11)
|
|
$
761
|
|
$
(24)
|
|
$
737
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes $45 million of
unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $18 million in Texas segment.
|
(c)
|
Includes the
application of future 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.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE SIX MONTHS
ENDED JUNE 30, 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)
|
$
3,326
|
|
$ (3,610)
|
|
$
(791)
|
|
$ (36)
|
|
$
(619)
|
|
$
196
|
|
$ (1,534)
|
|
$
(107)
|
|
$ (1,641)
|
Income tax
benefit
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(498)
|
|
(498)
|
|
—
|
|
(498)
|
Interest expense and
related charges (a)
|
5
|
|
(11)
|
|
3
|
|
(1)
|
|
1
|
|
118
|
|
115
|
|
1
|
|
116
|
Depreciation and
amortization (b)
|
72
|
|
309
|
|
358
|
|
31
|
|
37
|
|
34
|
|
841
|
|
23
|
|
864
|
EBITDA before
Adjustments
|
3,403
|
|
(3,312)
|
|
(430)
|
|
(6)
|
|
(581)
|
|
(150)
|
|
(1,076)
|
|
(83)
|
|
(1,159)
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(2,805)
|
|
3,696
|
|
738
|
|
71
|
|
605
|
|
—
|
|
2,305
|
|
42
|
|
2,347
|
Generation plant
retirement expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
5
|
|
—
|
|
5
|
|
1
|
|
6
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
115
|
|
115
|
|
—
|
|
115
|
Non-cash compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
34
|
|
34
|
|
—
|
|
34
|
Transition and merger
expenses
|
9
|
|
—
|
|
1
|
|
—
|
|
—
|
|
10
|
|
20
|
|
—
|
|
20
|
Winter Storm Uri
impacts (c)
|
(64)
|
|
(52)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(116)
|
|
—
|
|
(116)
|
Other, net
|
23
|
|
19
|
|
3
|
|
1
|
|
4
|
|
(29)
|
|
21
|
|
10
|
|
31
|
Adjusted
EBITDA
|
$
566
|
|
$
351
|
|
$
312
|
|
$ 66
|
|
$ 33
|
|
$
(20)
|
|
$ 1,308
|
|
$
(30)
|
|
$ 1,278
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes $171 million
of unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $40 million in the Texas segment.
|
(c)
|
Includes 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 $82
million), 2023 (approximately $44 million), 2024 (approximately $39
million) and 2025 (approximately $1 million).
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE MONTHS
ENDED JUNE 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)
|
$
1,810
|
|
$ (1,138)
|
|
$
(100)
|
|
$ (13)
|
|
$
(246)
|
|
$
(86)
|
|
$
227
|
|
$
(192)
|
|
$
35
|
Income tax
expense
|
—
|
|
—
|
|
|
|
|
|
|
|
(115)
|
|
(115)
|
|
—
|
|
(115)
|
Interest expense and
related charges (a)
|
2
|
|
(4)
|
|
5
|
|
(5)
|
|
—
|
|
137
|
|
135
|
|
—
|
|
135
|
Depreciation and
amortization (b)
|
54
|
|
179
|
|
193
|
|
10
|
|
26
|
|
18
|
|
480
|
|
4
|
|
484
|
EBITDA before
Adjustments
|
1,866
|
|
(963)
|
|
98
|
|
(8)
|
|
(220)
|
|
(46)
|
|
727
|
|
(188)
|
|
539
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(1,318)
|
|
1,093
|
|
133
|
|
27
|
|
248
|
|
—
|
|
183
|
|
95
|
|
278
|
Generation plant
retirement expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
1
|
|
—
|
|
15
|
|
15
|
Fresh start / purchase
accounting impacts
|
2
|
|
(1)
|
|
(73)
|
|
—
|
|
(4)
|
|
—
|
|
(76)
|
|
(3)
|
|
(79)
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
41
|
|
41
|
|
—
|
|
41
|
Non-cash compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12
|
|
12
|
|
—
|
|
12
|
Transition and merger
expenses
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2)
|
|
1
|
|
—
|
|
1
|
Impairment of
long-lived assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
38
|
|
38
|
Winter Storm Uri
impacts (c)
|
(47)
|
|
12
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(35)
|
|
—
|
|
(35)
|
Other, net
|
4
|
|
3
|
|
2
|
|
2
|
|
2
|
|
(12)
|
|
1
|
|
—
|
|
1
|
Adjusted
EBITDA
|
$
510
|
|
$
144
|
|
$
160
|
|
$ 21
|
|
$ 25
|
|
$
(6)
|
|
$ 854
(d)
|
|
$
(43)
|
|
$
811
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes $9 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 the following
of the Winter Storm Uri impacts, which we believe are not
reflective of our operating performance: future bill credits
related to Winter Storm Uri, partially offset by the allocation of
additional ERCOT default uplift charges, which are expected to be
paid over several decades under current protocols, 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.
|
(d)
|
Q2 2021 Ongoing
Operations Adjusted EBITDA increased by $29 million due to the
recast of Joppa Power Plant and Zimmer Power Plant, both ceasing
operations in 2022, to the Asset Closure segment.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE SIX MONTHS
ENDED JUNE 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)
|
$
1,898
|
|
$ (3,656)
|
|
$ (99)
|
|
$ (44)
|
|
$
(241)
|
|
$
377
|
|
$ (1,765)
|
|
$
(239)
|
|
$ (2,004)
|
Income tax
benefit
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(600)
|
|
(600)
|
|
—
|
|
(600)
|
Interest expense and
related charges (a)
|
4
|
|
(7)
|
|
7
|
|
(8)
|
|
—
|
|
168
|
|
164
|
|
—
|
|
164
|
Depreciation and
amortization (b)
|
107
|
|
323
|
|
389
|
|
15
|
|
51
|
|
34
|
|
919
|
|
8
|
|
927
|
EBITDA before
Adjustments
|
2,009
|
|
(3,340)
|
|
297
|
|
(37)
|
|
(190)
|
|
(21)
|
|
(1,282)
|
|
(231)
|
|
(1,513)
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(2,101)
|
|
1,615
|
|
153
|
|
80
|
|
315
|
|
—
|
|
62
|
|
120
|
|
182
|
Generation plant
retirement expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15
|
|
15
|
Fresh start / purchase
accounting impacts
|
3
|
|
(2)
|
|
(74)
|
|
—
|
|
(3)
|
|
—
|
|
(76)
|
|
(3)
|
|
(79)
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
4
|
|
—
|
|
4
|
Non-cash compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
29
|
|
29
|
|
—
|
|
29
|
Transition and merger
expenses
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
2
|
|
(15)
|
|
(13)
|
Impairment of
long-lived assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
38
|
|
38
|
Winter Storm Uri
impacts (c)
|
384
|
|
514
|
|
—
|
|
—
|
|
1
|
|
1
|
|
900
|
|
—
|
|
900
|
Other, net
|
12
|
|
5
|
|
4
|
|
2
|
|
4
|
|
(20)
|
|
7
|
|
—
|
|
7
|
Adjusted
EBITDA
|
$
310
|
|
$
(1,208)
|
|
$
380
|
|
$ 45
|
|
$
127
|
|
$
(8)
|
|
$
(354)(d)
|
|
$
(76)
|
|
$
(430)
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes $79 million of
unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $40 million in Texas segment.
|
(c)
|
Includes the following
of the 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 were paid in 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.
|
(d)
|
Six months ended June
30, 2021 Ongoing Operations Adjusted EBITDA increased by $48
million due to the recast of Joppa Power Plant and Zimmer Power
Plant, both ceasing operations in 2022, to the Asset Closure
segment.
|
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 (approximately $84 million),
2024 (approximately $18 million) and 2025 (approximately $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. However, as of the second quarter of 2022, spend associated
with solar and energy storage projects is tracking below the amount
shown here, primarily due to a deferral of capital spend from 2022
to 2023 (also resulting in a deferral of project financing
originally anticipated for that spend).
|
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SOURCE Vistra Corp.