Earnings Release Highlights
- Recorded second quarter 2023 Net Income of $476 million and Net Income from Ongoing
Operations1 of $409
million and achieved Ongoing Operations Adjusted
EBITDA1 of $1,008
million.
- Updated guidance based on year-to-date performance and outlook,
by narrowing the range and raising the lower end of the originally
announced 2023 Ongoing Operations Adjusted EBITDA and Ongoing
Operations Adjusted FCFbG guidance ranges.
- Continued to progress towards a fourth quarter 2023 closing of
the acquisition of Energy Harbor Corp.
- Achieved commercial operation of the 350-megawatt Phase III
expansion of the Moss Landing Energy Storage Facility, adding to
the 400 megawatts already online at the facility, making it the
largest battery energy storage facility in the world.
- Continued to execute on the $4.25
billion cumulative share repurchase authorization,
repurchasing ~$2.9 billion from
Nov. 2, 2021, through Aug. 4, 2023, leading to a reduction of ~24% of
the shares outstanding over that period.
- Declared third quarter 2023 dividend of $0.2060 per share of common stock to be paid on
Sept. 29, 2023, representing an ~12%
increase from the third quarter 2022 dividend.
IRVING,
Texas, Aug. 9, 2023 /PRNewswire/ -- Vistra Corp.
(NYSE: VST) ("Vistra") today reported its second quarter 2023
financial results and other highlights.
"I'm excited to report our second quarter results today of
$1,008 million in Ongoing Operations
Adjusted EBITDA. Our focus and execution on operational excellence,
risk management, and strong retail performance demonstrated an
integrated platform that is bolstering Vistra's elevated and
de-risked earnings profile and delivering substantial value to our
shareholders through our robust return of capital program," said
Jim Burke, president and CEO of
Vistra. "Our performance year-to-date and the projections we see
for the balance of 2023 provide confidence that we will achieve
results that are in the upper half of our original guidance ranges
initiated for 2023 Ongoing Operations Adjusted EBITDA and Ongoing
Operations Adjusted FCFbG. Given this increased confidence, we
announced narrowed guidance ranges today that adjust the lower end
of the ranges upward by $200 million
in the case of Ongoing Operations Adjusted EBITDA and $150 million in the case of Ongoing Operations
Adjusted FCFbG. As we capitalize on the elevated earnings
opportunities, we in turn are realizing additional free cash flows
that we look forward to using to further our growth and bolster
shareholder returns."
Burke continued, "As we steadily deliver on our capital
allocation program, we simultaneously are focused on the long-term
energy transition this industry faces. We remain committed to
disciplined growth of our zero-carbon portfolio while focusing on
grid reliability. The 350-megawatt Phase III expansion of our Moss
Landing Energy Storage Facility achieved commercial operation
during the second quarter, ahead of schedule and on budget,
bringing our Vistra Zero portfolio currently online to
approximately 3,750 MW, including our nuclear facility Comanche
Peak. We also continue to progress towards a fourth quarter closing
of the acquisition of Energy Harbor Corp. that we announced earlier
this year, which will increase our nuclear generation to more than
6,400 MW."
Burke concluded, "Our retail segment continues to deliver strong
counts and margins performance. And, while the second quarter
weather was on the milder side, we are seeing extreme heat in parts
of the country, particularly in July and August. Our generation
fleet has risen to the challenge, achieving approximately 95%
commercial availability in the second quarter, and we look forward
to continuing that operational excellence through the balance of
the year and beyond."
Summary of Financial
Results for the Second Quarter Ended June 30,
20232
(Unaudited)
(Millions of Dollars)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
(loss)
|
$
476
|
|
$
(1,357)
|
|
$
1,174
|
|
$
(1,641)
|
Ongoing operations net
income (loss)
|
$
409
|
|
$
(1,299)
|
|
$
1,134
|
|
$
(1,471)
|
Ongoing operations
Adjusted EBITDA
|
$
1,008
|
|
$
756
|
|
$
1,562
|
|
$
1,297
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment
|
|
|
|
|
|
|
|
Retail
|
$
498
|
|
$
403
|
|
$
469
|
|
$
566
|
Texas
|
$
207
|
|
$
181
|
|
$
590
|
|
$
351
|
East
|
$
211
|
|
$
164
|
|
$
212
|
|
$
312
|
West
|
$
63
|
|
$
40
|
|
$
109
|
|
$
66
|
Sunset
|
$
40
|
|
$
(21)
|
|
$
203
|
|
$
22
|
Corporate and
Other
|
$
(11)
|
|
$
(11)
|
|
$
(21)
|
|
$
(20)
|
Asset
Closure
|
$
59
|
|
$
(19)
|
|
$
18
|
|
$
(19)
|
|
|
|
|
|
|
|
|
For the three months ended June 30,
2023, Vistra reported Net Income of $476 million, Net Income from Ongoing Operations
of $409 million, and Ongoing Operations Adjusted EBITDA of
$1,008 million. Vistra's Net Income
for the second quarter 2023 was an improvement of $1,833 million over the second quarter 2022 Net
Loss, driven primarily by unrealized net hedging gains in the three
months ended June 30, 2023, as
compared to the unrealized net hedging losses in the three months
ended June 30, 2022. Ongoing
Operations Adjusted EBITDA for the second quarter 2023 was
$252 million higher than the second
quarter 2022, driven primarily by higher energy margins
achieved through our comprehensive hedging strategy, backing down
generation at times when prices were below unit costs and strong
counts and margin performance in the retail segment, partially
offset by less favorable weather in the quarter.
Guidance
($ in
millions)
|
Narrowed
2023 Guidance
Ranges
|
Ongoing Operations
Adjusted EBITDA
|
$3,600 -
$4,000
|
Ongoing Operations
Adjusted FCFbG
|
$1,900 -
$2,350
|
|
|
Vistra narrowed its 2023 guidance ranges of Ongoing Operations
Adjusted EBITDA to $3,600 million to
$4,000 million and Ongoing Operations
Adjusted FCFbG of $1,900 million to
$2,350 million. The midpoint of the
narrowed 2023 Ongoing Operations Adjusted EBITDA guidance is now
$3,800 million, which is higher than
the top of the potential Ongoing Operations Adjusted EBITDA
midpoint opportunity range Vistra first announced in May 2022. The midpoint of the narrowed 2023
Ongoing Operations Adjusted FCFbG guidance range is now
$2,125 million.
As of June 30, 2023, Vistra had
hedged approximately 86% of its expected generation volumes on
average for the three-year period 2023 to 2025, with the balance of
2023 hedged at approximately 98% and 2024 hedged at approximately
95%. Vistra's hedging program, as well as forward price curves as
of Aug. 4, 2023, provide confidence
that it will achieve results within the company's narrowed 2023
guidance ranges and further provide increasing confidence in the
previously announced Ongoing Operations Adjusted EBITDA midpoint
opportunities for 2024 and 2025 of $3,700
million to $3,800 million
(exclusive of any future EBITDA contribution from Energy
Harbor).3
Share Repurchase Program
As of Aug. 4, 2023:
- Vistra had executed ~$2.9 billion
in share repurchases since November
2021.
- Vistra had ~$1.35 billion
remaining under its $4.25 billion
share repurchase authorization, which is expected to be utilized by
year-end 2024.
- Vistra had ~367.5 million shares outstanding, representing an
~24% reduction of the amount of the shares outstanding on
Nov. 2, 2021.
Clean Energy Transition
Vistra is focused on reliability, affordability and
sustainability. With this in mind, Vistra continues to grow its
fleet of lower carbon resources, advancing these interests through
cost-effective, strategic investments in solar and battery storage
developments and through its transformative acquisition of Energy
Harbor, anticipated to close in the fourth quarter 2023.
This quarter, Vistra brought the 350 MW Phase III expansion of
its Moss Landing Energy Storage Facility online, boosting its
zero-emission generation and energy storage portfolio to 3,758 MW
currently online (including our 2,400-MW nuclear facility, Comanche
Peak), with additional renewable generation and energy storage
developments in the near-term pipeline.
In March 2023, Vistra announced
the execution of a definitive agreement to acquire Energy Harbor,
which will add more than 4,000 MW of nuclear generation to its
portfolio along with approximately one million additional retail
customers. Together with Comanche Peak, this acquisition will bring
Vistra's nuclear capacity to more than 6,400 MW at the
transaction's closing. Further, in 2022, Comanche Peak applied to
extend its licenses through 2050 and 2053 for the two-unit
facility, an additional 20 years beyond the original licenses. This
process is advancing as expected.
The Inflation Reduction Act is anticipated to provide the
opportunity to realize material benefits on the 350 MW Phase III
expansion of the Moss Landing Energy Storage Facility and the
development of additional renewables and energy storage, as well as
provide strong price support via the nuclear production tax credit
for our nuclear facilities, including those being acquired through
the Energy Harbor transaction.
Vistra intends to remain strategic and disciplined with respect
to the timing of investments in renewables and battery storage
projects. Overall, continued development of the renewables and
battery storage portfolio is expected to be financed primarily with
third-party capital. Vistra expects to execute the initial
nonrecourse financings in the coming months.
Liquidity
As of June 30, 2023, Vistra had
total available liquidity of approximately $2,472 million,
including cash and cash equivalents of $643
million, $1,503 million of
availability under its corporate revolving credit facility, and
$326 million of availability under
its commodity-linked revolving credit facility.
Available capacity under the commodity-linked revolving credit
facility reflects the borrowing base as of June 30, 2023, which was lower than the aggregate
commitments of $1,350 million.
The reduction in the borrowing base is due, in part, to the
expiration of certain deemed 2023 hedges and would increase in size
in a rising commodity price environment in accordance with the
terms of the commodity-linked revolving credit facility.
Available liquidity further excludes approximately $725 million of undrawn available borrowing
capacity as of June 30, 2023, under
Vistra's accounts receivable financing arrangements.
Earnings Webcast
Vistra will host a webcast today, Aug. 9,
2023, beginning at 9 a.m. ET
(8 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 Vistra's 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), and "Ongoing Operations Adjusted Free
Cash Flow before Growth" or "Ongoing Operations Adjusted FCFbG"
(adjusted free cash flow before growth less cash flow from
operating activities from Asset Closure segment before growth) are
"non-GAAP financial measures." A non-GAAP financial measure is a
numerical measure of financial performance that excludes or
includes amounts so as to be different than the most directly
comparable measure calculated and presented in accordance with GAAP
in Vistra's consolidated statements of operations, comprehensive
income, changes in stockholders' equity and cash flows. Non-GAAP
financial measures should not be considered in isolation or as a
substitute for the most directly comparable GAAP measures. Vistra's
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies.
Vistra uses Adjusted EBITDA as a measure of performance and
believes that analysis of its business by external users is
enhanced by visibility to both Net Income prepared in accordance
with GAAP and Adjusted EBITDA. Vistra uses Adjusted Free Cash Flow
before Growth as a measure of liquidity and believes that analysis
of its ability to service its cash obligations is supported by
disclosure of both cash provided by (used in) operating activities
prepared in accordance with GAAP as well as Adjusted Free Cash Flow
before Growth. Vistra uses Ongoing Operations Adjusted EBITDA as a
measure of performance and Ongoing Operations Adjusted Free Cash
Flow before Growth as a measure of liquidity, and Vistra's
management and board of directors have found it informative to view
the Asset Closure segment as separate and distinct from Vistra's
ongoing operations. Vistra uses Net Income (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.
1 Ongoing Operations
excludes the Asset Closure segment. Net Income (Loss) from Ongoing
Operations, Ongoing Operations Adjusted EBITDA, and Ongoing
Operations Adjusted Free Cash Flow before Growth are non-GAAP
financial measures. Any reference to "Ongoing Operations Adjusted
FCFbG" is a reference to Ongoing Operations Adjusted Free Cash Flow
before Growth. See the "Non-GAAP Reconciliation" tables for further
detail. Total segment information may not tie due to
rounding.
|
|
2 Upon movement of the
Edwards Power Plant to the Asset Closure segment effective Jan. 1,
2023, prior year results were retrospectively adjusted for
comparative purposes.
|
|
3 Reflects the
potential midpoint opportunity range of Ongoing Operations Adjusted
EBITDA for 2024 and 2025 based on market curves as of May 4,
2023 as previously disclosed on our first quarter 2023 earnings
call; does not include the incremental Adjusted EBITDA contribution
expected from the Energy Harbor acquisition; this range of
estimated opportunities is not intended to be guidance.
|
|
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 37,000 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 750-MW/3,000-MWh battery energy
storage system in Moss Landing,
California, the largest 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, 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, including the acquisition
of Energy Harbor, and to successfully integrate acquired
businesses; (iii) actions by credit ratings agencies; (iv) the
severity, magnitude and duration of extreme weather events,
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 (v) those additional risks and
factors discussed in reports filed with the Securities and Exchange
Commission by Vistra from time to time, including the uncertainties
and risks discussed in the sections entitled "Risk Factors" and
"Forward-Looking Statements" in Vistra's annual report on Form 10-K
for the year ended December 31, 2022
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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
revenues
|
$
3,189
|
|
$
1,588
|
|
$
7,614
|
|
$
4,713
|
Fuel, purchased power
costs and delivery fees
|
(1,475)
|
|
(2,162)
|
|
(3,645)
|
|
(4,441)
|
Operating
costs
|
(445)
|
|
(435)
|
|
(866)
|
|
(851)
|
Depreciation and
amortization
|
(369)
|
|
(394)
|
|
(735)
|
|
(824)
|
Selling, general and
administrative expenses
|
(309)
|
|
(280)
|
|
(597)
|
|
(569)
|
Impairment of
long-lived assets
|
—
|
|
—
|
|
(49)
|
|
—
|
Operating income
(loss)
|
591
|
|
(1,683)
|
|
1,722
|
|
(1,972)
|
Other income
|
124
|
|
71
|
|
144
|
|
77
|
Other
deductions
|
(2)
|
|
(9)
|
|
(5)
|
|
(13)
|
Interest expense and
related charges
|
(100)
|
|
(109)
|
|
(307)
|
|
(116)
|
Impacts of Tax
Receivable Agreement
|
(14)
|
|
(34)
|
|
(79)
|
|
(115)
|
Net income (loss)
before income taxes
|
599
|
|
(1,764)
|
|
1,475
|
|
(2,139)
|
Income tax (expense)
benefit
|
(123)
|
|
407
|
|
(301)
|
|
498
|
Net income
(loss)
|
$
476
|
|
$
(1,357)
|
|
$
1,174
|
|
$
(1,641)
|
Net (income) loss
attributable to noncontrolling interest
|
—
|
|
(8)
|
|
1
|
|
(9)
|
Net income (loss)
attributable to Vistra
|
$
476
|
|
$
(1,365)
|
|
$
1,175
|
|
$
(1,650)
|
Cumulative dividends
attributable to preferred stock
|
(37)
|
|
(37)
|
|
(75)
|
|
(75)
|
Net income (loss)
attributable to Vistra common stock
|
$
439
|
|
$
(1,402)
|
|
$
1,100
|
|
$
(1,725)
|
VISTRA
CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions of Dollars)
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
Cash flows — operating
activities:
|
|
|
|
Net income
(loss)
|
$
1,174
|
|
$
(1,641)
|
Adjustments to
reconcile net income (loss) to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
941
|
|
1,054
|
Deferred income tax
expense (benefit), net
|
290
|
|
(501)
|
Gain on sale of
land
|
(94)
|
|
(5)
|
Impairment of
long-lived and other assets
|
49
|
|
—
|
Unrealized net (gain)
loss from mark-to-market valuations of commodities
|
(1,139)
|
|
2,347
|
Unrealized net gain
from mark-to-market valuations of interest rate swaps
|
(22)
|
|
(171)
|
Asset retirement
obligation accretion expense
|
17
|
|
17
|
Impacts of Tax
Receivable Agreement
|
79
|
|
115
|
Stock-based
compensation
|
43
|
|
34
|
Bad debt
expense
|
69
|
|
65
|
Other, net
|
24
|
|
6
|
Changes in operating
assets and liabilities:
|
|
|
|
Margin deposits,
net
|
2,014
|
|
(1,893)
|
Uplift securitization
proceeds receivable from ERCOT
|
—
|
|
544
|
Accrued
interest
|
(4)
|
|
13
|
Accrued
taxes
|
(52)
|
|
(62)
|
Accrued employee
incentive
|
(57)
|
|
(38)
|
Other operating assets
and liabilities
|
(320)
|
|
(607)
|
Cash provided by (used
in) operating activities
|
3,012
|
|
(723)
|
Cash flows — investing
activities:
|
|
|
|
Capital expenditures,
including nuclear fuel purchases and LTSA prepayments
|
(926)
|
|
(613)
|
Proceeds from sales of
nuclear decommissioning trust fund securities
|
251
|
|
334
|
Investments in nuclear
decommissioning trust fund securities
|
(262)
|
|
(345)
|
Proceeds from sales of
environmental allowances
|
47
|
|
266
|
Purchases of
environmental allowances
|
(190)
|
|
(258)
|
Insurance
proceeds
|
9
|
|
1
|
Proceeds from sale of
assets
|
110
|
|
14
|
Other, net
|
(6)
|
|
(8)
|
Cash used in investing
activities
|
(967)
|
|
(609)
|
Cash flows — financing
activities:
|
|
|
|
Issuances of long-term
debt
|
—
|
|
1,498
|
Repayments/repurchases
of debt
|
(14)
|
|
(223)
|
Net
(repayments)/borrowings under accounts receivable
financing
|
(425)
|
|
725
|
Borrowings under
Revolving Credit Facility
|
100
|
|
1,500
|
Repayments under
Revolving Credit Facility
|
(350)
|
|
(1,250)
|
Borrowings under
Commodity-Linked Facility
|
—
|
|
2,750
|
Repayments under
Commodity-Linked Facility
|
(400)
|
|
(1,700)
|
Share
repurchases
|
(552)
|
|
(1,194)
|
Dividends paid to
common stockholders
|
(153)
|
|
(152)
|
Dividends paid to
preferred stockholders
|
(75)
|
|
(76)
|
Debt issuance
costs
|
(6)
|
|
(21)
|
Other, net
|
3
|
|
23
|
Cash (used in)
provided by financing activities
|
(1,872)
|
|
1,880
|
Net change in cash,
cash equivalents and restricted cash
|
173
|
|
548
|
Cash, cash equivalents
and restricted cash — beginning balance
|
525
|
|
1,359
|
Cash, cash equivalents
and restricted cash — ending balance
|
$
698
|
|
$
1,907
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE MONTHS
ENDED JUNE 30, 2023
(Unaudited)
(Millions of Dollars)
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations
/
Corp
and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Corp.
Consolidated
|
Net income
(loss)
|
$ 812
|
|
$
(626)
|
|
$ 275
|
|
$ 164
|
|
$ 62
|
|
$
(278)
|
|
$
409
|
|
$ 67
|
|
$
476
|
Income tax
expense
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
122
|
|
123
|
|
—
|
|
123
|
Interest expense and
related charges (a)
|
10
|
|
(6)
|
|
—
|
|
(4)
|
|
1
|
|
97
|
|
98
|
|
2
|
|
100
|
Depreciation and
amortization (b)
|
22
|
|
148
|
|
167
|
|
19
|
|
15
|
|
17
|
|
388
|
|
—
|
|
388
|
EBITDA before
Adjustments
|
844
|
|
(484)
|
|
443
|
|
179
|
|
78
|
|
(42)
|
|
1,018
|
|
69
|
|
1,087
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(347)
|
|
693
|
|
(226)
|
|
(117)
|
|
(49)
|
|
—
|
|
(46)
|
|
(8)
|
|
(54)
|
Generation plant
retirement expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
—
|
|
3
|
|
(2)
|
|
1
|
Fresh start/purchase
accounting impacts
|
1
|
|
—
|
|
1
|
|
—
|
|
1
|
|
—
|
|
3
|
|
—
|
|
3
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
14
|
|
14
|
|
—
|
|
14
|
Non-cash compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
21
|
|
21
|
|
—
|
|
21
|
Transition and merger
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15
|
|
15
|
|
—
|
|
15
|
PJM capacity
performance default impacts (c)
|
—
|
|
—
|
|
(9)
|
|
—
|
|
(3)
|
|
—
|
|
(12)
|
|
—
|
|
(12)
|
Winter Storm Uri
impacts (d)
|
(5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5)
|
|
—
|
|
(5)
|
Other, net
|
5
|
|
(2)
|
|
2
|
|
1
|
|
10
|
|
(19)
|
|
(3)
|
|
—
|
|
(3)
|
Adjusted
EBITDA
|
$
498
|
|
$
207
|
|
$
211
|
|
$ 63
|
|
$ 40
|
|
$
(11)
|
|
$ 1,008
|
|
$ 59
|
|
$ 1,067
|
|
|
|
|
|
|
(a)
|
Includes $63 million of
unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $19 million in the Texas segment.
|
(c)
|
Represents change in
estimate of anticipated market participant defaults on PJM
capacity performance penalties due to extreme magnitude of
penalties associated with Winter Storm Elliott.
|
(d)
|
Includes the
application of bill credits to large commercial and industrial
customers that curtailed their usage during Winter
Storm Uri.
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE SIX MONTHS
ENDED JUNE 30, 2023
(Unaudited)
(Millions of Dollars)
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations
/
Corp
and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Corp.
Consolidated
|
Net income
(loss)
|
$ 217
|
|
$ (42)
|
|
$
1,020
|
|
$ 216
|
|
$ 486
|
|
$
(763)
|
|
$
1,134
|
|
$ 40
|
|
$
1,174
|
Income tax
expense
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
300
|
|
301
|
|
—
|
|
301
|
Interest expense and
related charges (a)
|
17
|
|
(10)
|
|
—
|
|
(8)
|
|
2
|
|
303
|
|
304
|
|
3
|
|
307
|
Depreciation and
amortization (b)
|
51
|
|
301
|
|
328
|
|
34
|
|
29
|
|
34
|
|
777
|
|
—
|
|
777
|
EBITDA before
Adjustments
|
285
|
|
249
|
|
1,349
|
|
242
|
|
517
|
|
(126)
|
|
2,516
|
|
43
|
|
2,559
|
Unrealized net (gain)
loss resulting from hedging transactions
|
212
|
|
346
|
|
(1,149)
|
|
(135)
|
|
(388)
|
|
—
|
|
(1,114)
|
|
(25)
|
|
(1,139)
|
Generation plant
retirement expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
—
|
|
3
|
|
(2)
|
|
1
|
Fresh start/purchase
accounting impacts
|
1
|
|
(1)
|
|
3
|
|
—
|
|
1
|
|
—
|
|
4
|
|
—
|
|
4
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
79
|
|
79
|
|
—
|
|
79
|
Non-cash compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
43
|
|
43
|
|
—
|
|
43
|
Transition and merger
expenses
|
(2)
|
|
1
|
|
—
|
|
—
|
|
1
|
|
17
|
|
17
|
|
—
|
|
17
|
Impairment of
long-lived assets
|
—
|
|
—
|
|
—
|
|
—
|
|
49
|
|
—
|
|
49
|
|
—
|
|
49
|
PJM capacity
performance default impacts (c)
|
—
|
|
—
|
|
6
|
|
—
|
|
2
|
|
—
|
|
8
|
|
—
|
|
8
|
Winter Storm Uri
impacts (d)
|
(39)
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(38)
|
|
—
|
|
(38)
|
Other, net
|
12
|
|
(6)
|
|
3
|
|
2
|
|
18
|
|
(34)
|
|
(5)
|
|
2
|
|
(3)
|
Adjusted
EBITDA
|
$
469
|
|
$
590
|
|
$
212
|
|
$
109
|
|
$
203
|
|
$
(21)
|
|
$ 1,562
|
|
$ 18
|
|
$ 1,580
|
|
|
|
|
|
|
(a)
|
Includes $22 million of
unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $42 million in the Texas segment.
|
(c)
|
Represents estimate of
anticipated market participant defaults on PJM capacity
performance penalties due to extreme magnitude of penalties
associated with Winter Storm Elliott, which amounts have been and
will continue to be withheld by PJM from our net bonus position
during 2023.
|
(d)
|
Includes the
application of bill credits to large commercial and industrial
customers that curtailed their usage during Winter
Storm Uri. We estimate remaining bill credit amounts to
be applied in future periods are for the remainder of 2023
(approximately $14 million), 2024 (approximately $11 million) and
2025 (approximately $25 million).
|
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
|
|
$
(155)
|
|
$
233
|
|
$ (1,299)
|
|
$ (58)
|
|
$ (1,357)
|
Income tax
benefit
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(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)
|
|
16
|
|
17
|
|
401
|
|
11
|
|
412
|
EBITDA before
Adjustments
|
938
|
|
(1,480)
|
|
(482)
|
|
13
|
|
(139)
|
|
(47)
|
|
(1,197)
|
|
(46)
|
|
(1,243)
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(500)
|
|
1,665
|
|
645
|
|
28
|
|
124
|
|
—
|
|
1,962
|
|
25
|
|
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
|
|
$
(21)
|
|
$
(11)
|
|
$
756
|
|
$
(19)
|
|
$
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)
|
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 were expected to be paid over
several decades under protocols existing at the time of the
storm.
|
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)
|
|
$
(556)
|
|
$
196
|
|
$ (1,471)
|
|
$
(170)
|
|
$ (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
|
|
32
|
|
34
|
|
836
|
|
28
|
|
864
|
EBITDA before
Adjustments
|
3,403
|
|
(3,312)
|
|
(430)
|
|
(6)
|
|
(523)
|
|
(150)
|
|
(1,018)
|
|
(141)
|
|
(1,159)
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(2,805)
|
|
3,696
|
|
738
|
|
71
|
|
537
|
|
—
|
|
2,237
|
|
110
|
|
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
|
|
3
|
|
(29)
|
|
20
|
|
11
|
|
31
|
Adjusted
EBITDA
|
$
566
|
|
$
351
|
|
$
312
|
|
$ 66
|
|
$ 22
|
|
$
(20)
|
|
$ 1,297
|
|
$
(19)
|
|
$ 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 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 were expected to be paid over
several decades under protocols existing at the time of the
storm.
|
|
VISTRA CORP. -
NON-GAAP RECONCILIATIONS 2023 GUIDANCE
|
|
(Unaudited) (Millions
of Dollars)
|
|
|
Ongoing
Operations
|
Asset
Closure
|
Vistra
Consolidated
|
|
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
|
Net Income
(loss)
|
2,240
|
|
2,530
|
(70)
|
|
30
|
2,170
|
|
2,560
|
|
Income tax
expense
|
630
|
|
740
|
0
|
|
0
|
630
|
|
740
|
|
Interest expense and
related charges (a)
|
700
|
|
700
|
0
|
|
0
|
700
|
|
700
|
|
Depreciation and
amortization (b)
|
1,580
|
|
1,580
|
0
|
|
0
|
1,580
|
|
1,580
|
|
EBITDA before
adjustments
|
5,150
|
|
5,550
|
(70)
|
|
30
|
5,080
|
|
5,580
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(1,694)
|
|
(1,694)
|
(36)
|
|
(36)
|
(1,730)
|
|
(1,730)
|
|
Tax credits
|
4
|
|
4
|
0
|
|
0
|
4
|
|
4
|
|
Generation plant
retirement expense
|
1
|
|
1
|
(1)
|
|
(1)
|
0
|
|
0
|
|
Fresh start / purchase
accounting impacts
|
7
|
|
7
|
0
|
|
0
|
7
|
|
7
|
|
Impacts of Tax
Receivable Agreement
|
112
|
|
112
|
0
|
|
0
|
112
|
|
112
|
|
Non-cash compensation
expenses
|
71
|
|
71
|
0
|
|
0
|
71
|
|
71
|
|
Impairment of
long-lived and other assets
|
49
|
|
49
|
0
|
|
0
|
49
|
|
49
|
|
Transition and merger
expenses
|
14
|
|
14
|
0
|
|
0
|
14
|
|
14
|
|
PJM capacity
performance default impacts
|
20
|
|
20
|
0
|
|
0
|
20
|
|
20
|
|
Winter storm Uri
impacts (c)
|
(51)
|
|
(51)
|
0
|
|
0
|
(51)
|
|
(51)
|
|
Other, net
|
(83)
|
|
(83)
|
7
|
|
7
|
(76)
|
|
(76)
|
|
Adjusted EBITDA
guidance
|
3,600
|
|
4,000
|
(100)
|
|
(0)
|
3,500
|
|
4,000
|
|
Interest paid,
net
|
(615)
|
|
(615)
|
0
|
|
0
|
(615)
|
|
(615)
|
|
Tax (paid) / received
(d)
|
(18)
|
|
(18)
|
0
|
|
0
|
(18)
|
|
(18)
|
|
Tax Receivable
Agreement payments
|
(10)
|
|
(10)
|
0
|
|
0
|
(10)
|
|
(10)
|
|
Working capital and
margin deposits
|
2,400
|
|
2,400
|
3
|
|
3
|
2,403
|
|
2,403
|
|
Accrued environmental
allowances
|
388
|
|
388
|
0
|
|
0
|
388
|
|
388
|
|
Reclamation and
remediation
|
(34)
|
|
(34)
|
(79)
|
|
(79)
|
(113)
|
|
(113)
|
|
Winter storm Uri
impacts
|
0
|
|
0
|
0
|
|
0
|
0
|
|
0
|
|
Other changes in other
operating assets and liabilities
|
(90)
|
|
(40)
|
(53)
|
|
(53)
|
(143)
|
|
(93)
|
|
Cash provided by
operating activities
|
5,621
|
|
6,071
|
(229)
|
|
(129)
|
5,392
|
|
5,942
|
|
Capital expenditures
including nuclear fuel purchases and LTSA prepayments
|
(963)
|
|
(963)
|
0
|
|
0
|
(963)
|
|
(963)
|
|
Solar and storage
development expenditures
|
(664)
|
|
(664)
|
0
|
|
0
|
(664)
|
|
(664)
|
|
Other growth
expenditures
|
(143)
|
|
(143)
|
0
|
|
0
|
(143)
|
|
(143)
|
|
Acquisitions
|
0
|
|
0
|
0
|
|
0
|
0
|
|
0
|
|
(Purchase) sale of
environmental allowances
|
(486)
|
|
(486)
|
0
|
|
0
|
(486)
|
|
(486)
|
|
Other net investing
activities
|
4
|
|
4
|
12
|
|
12
|
16
|
|
16
|
|
Free cash
flow
|
3,369
|
|
3,819
|
(217)
|
|
(117)
|
3,152
|
|
3,702
|
|
Working capital and
margin deposits
|
(2,400)
|
|
(2,400)
|
(3)
|
|
(3)
|
(2,403)
|
|
(2,403)
|
|
Solar and storage
development and other growth expenditures
|
664
|
|
664
|
0
|
|
0
|
664
|
|
664
|
|
Other growth
expenditures
|
143
|
|
143
|
0
|
|
0
|
143
|
|
143
|
|
Acquisitions
|
0
|
|
0
|
0
|
|
0
|
0
|
|
0
|
|
Accrued environmental
allowances
|
(388)
|
|
(388)
|
0
|
|
0
|
(388)
|
|
(388)
|
|
(Purchase) sale of
environmental allowances
|
486
|
|
486
|
0
|
|
0
|
486
|
|
486
|
|
Transition and merger
expenses
|
22
|
|
22
|
25
|
|
25
|
47
|
|
47
|
|
Transition capital
expenditures
|
4
|
|
4
|
0
|
|
0
|
4
|
|
4
|
|
Adjusted free cash
flow before growth guidance
|
1,900
|
|
2,350
|
(195)
|
|
(95)
|
1,705
|
|
2,255
|
1 Regulation
G Table for 2023 Guidance prepared as of August 9, 2023.
|
|
(a) Includes unrealized
(gain) / loss on interest rate swaps of $(1) million.
|
(b) Includes nuclear
fuel amortization of $100 million.
|
(c) Adjustment for bill
credits applied to large commercial and industrial customers that
curtailed during Winter Storm Uri.
|
(d) Includes state tax
payments.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/vistra-reports-second-quarter-2023-results-301896524.html
SOURCE Vistra Corp.