IRVING, Texas, Aug. 4, 2017 /PRNewswire/ -- Vistra Energy
(NYSE: VST), the parent company for TXU Energy and Luminant, today reported a second quarter 2017 net loss of $26 million. Net income for the first half of 2017 was $52 million and cash
provided by operating activities for the same period was $333 million.
Adjusted EBITDA for the second quarter 2017 was $345 million. For the first half of 2017,
Vistra Energy's adjusted EBITDA was $621 million and adjusted free cash flow was $179 million.
Curt Morgan, Vistra Energy's chief executive officer, remarked, "Vistra Energy's second quarter
results were strong despite some headwinds, including a lackluster start to the Texas summer and
an unplanned outage at Comanche Peak Unit 2, which began on June 5. Our solid performance for the quarter is a direct
result of our persistent cost management and the consistently robust margins realized in both our wholesale and retail
segments. In addition, our operations performance initiative is well under way and, while we have not yet finalized review
of the entire fleet, we already expect to capture approximately $28 million of incremental EBITDA
in 2017 as a result of this process. This incremental $28 million of EBITDA translates to a
full year run-rate in the range of $45 to 50 million based on the reviews we have completed to
date. Also of note thus far in 2017 are the acquisitions of the Odessa plant and the
Upton 2 solar development project, both of which are consistent with Vistra Energy's strategic
direction and expected to enhance shareholder value. We are proud of our team's execution in the first half of 2017 and
pleased to reaffirm our 2017 guidance."
2017 Guidance
Vistra Energy is reaffirming its 2017 guidance ranges, reflecting an adjusted EBITDA range of $1,350
million to $1,500 million and an adjusted free cash flow range of $745 million to $925
million.
Liquidity
As of June 30, 2017, Vistra Energy had total available liquidity of approximately $2.021 billion, including cash and cash equivalents of $986 million, $175 million in available letter of credit capacity under its term loan C facility, and $860 million of availability under its revolving credit facility, which remained undrawn at June 30, 2017. Liquidity increased by approximately $35 million in the
second quarter of 2017 due to increased available cash from operations.
Odessa Acquisition
On August 1, 2017, Vistra Energy acquired a 1,054 MW combined cycle, combustion turbine power
plant located in Odessa, Texas (the "Odessa plant") for
approximately $350 million. Vistra Energy funded the acquisition with cash on hand. The
addition of the Odessa plant to Luminant's generation fleet provides geographic diversity to the
portfolio and matches generation against TXU Energy's load position in the ERCOT West Zone. Further, the Odessa plant's ideal location in West Texas provides it with gas sourcing
flexibility, including access to the deeply discounted gas supply from the Permian Basin. The acquisition is consistent
with Vistra Energy's strategy to opportunistically acquire more efficient and flexible gas-fired generation and renewable
generation to support its retail business.
Earnings Conference Call
Vistra Energy will host a conference call today, August 4, 2017, beginning at 11 a.m. EDT (10 a.m. CDT) to discuss these results and related matters. The
live, listen-only webcast of the conference call and the accompanying slides that will be discussed on the call can be accessed
via the investor relations section of Vistra Energy's website at www.vistraenergy.com. For those unable to participate in the live event, a replay of the call will be
available on the Vistra Energy website for one year following the call.
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
obligations, reorganization items, and certain other items described from time to time in Vistra Energy's earnings releases) and
"adjusted free cash flow" (cash from operating activities excluding changes in margin deposits and working capital and adjusted
for capital expenditures, other net investment activities, preferred stock dividends, and other items described from time to time
in Vistra Energy's earnings releases), 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 Energy'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 Energy's non-GAAP financial measures may be different from
non-GAAP financial measures used by other companies.
Vistra Energy 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 Energy uses adjusted free
cash flow 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. The schedules attached to this earnings release reconcile the non-GAAP financial measures to the most directly
comparable financial measures calculated and presented in accordance with U.S. GAAP.
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and
power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and
Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand)
to approximately 1.7 million residential and business customers in Texas. Luminant generates and
sells electricity and related products from our diverse fleet of generation facilities totaling approximately 18,000 MW of
generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and
7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The
company is currently developing one of the largest solar facilities in Texas by capacity.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. All statements,
other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made
through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result,"
"expect," "continue," "will," "shall," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal,"
"target," "would," "guidance" and "outlook," or the negative variations of those words or other comparable words of a future or
forward-looking nature. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra Energy
believes that in making any such forward-looking statement, Vistra Energy'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 the uncertainties and risks discussed in the sections
entitled "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in our prospectus filed with the Securities and
Exchange Commission pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as
supplemented).
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra Energy
undertakes no 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 Energy 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 ENERGY CORP.
CONDENSED STATEMENTS OF CONSOLIDATED INCOME (LOSS)
(Unaudited) (Millions of Dollars, Except Earnings Per Share)
|
|
Three Months
Ended
June 30, 2017
|
|
Six Months
Ended
June 30, 2017
|
Operating revenues
|
$
|
1,296
|
|
|
$
|
2,653
|
|
Fuel, purchased power costs and delivery fees
|
(729)
|
|
|
(1,411)
|
|
Operating costs
|
(195)
|
|
|
(409)
|
|
Depreciation and amortization
|
(172)
|
|
|
(341)
|
|
Selling, general and administrative expenses
|
(147)
|
|
|
(285)
|
|
Operating income
|
53
|
|
|
207
|
|
Other income
|
9
|
|
|
18
|
|
Other deductions
|
(5)
|
|
|
(5)
|
|
Interest expense and related charges
|
(69)
|
|
|
(93)
|
|
Impacts of Tax Receivable Agreement
|
(22)
|
|
|
(42)
|
|
Income (loss) before income taxes
|
(34)
|
|
|
85
|
|
Income tax (expense) benefit
|
8
|
|
|
(33)
|
|
Net income (loss)
|
$
|
(26)
|
|
|
$
|
52
|
|
Weighted average shares of common stock outstanding:
|
|
|
|
Basic
|
427,587,401
|
|
|
427,585,381
|
|
Diluted
|
427,587,401
|
|
|
427,846,563
|
|
Net income (loss) per weighted average share of common stock
outstanding:
|
|
|
|
Basic
|
$
|
(0.06)
|
|
|
$
|
0.12
|
|
Diluted
|
$
|
(0.06)
|
|
|
$
|
0.12
|
|
VISTRA ENERGY CORP.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited) (Millions of Dollars)
|
|
Six Months
Ended
June 30, 2017
|
Cash flows — operating activities:
|
|
Net income
|
$
|
52
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
Depreciation and amortization
|
437
|
|
Deferred income tax expense, net
|
29
|
|
Unrealized net gain from mark-to-market valuations of
derivatives
|
(48)
|
|
Impacts of Tax Receivable Agreement
|
42
|
|
Stock-based compensation
|
8
|
|
Other, net
|
22
|
|
Changes in operating assets and liabilities:
|
|
Margin deposits, net
|
147
|
|
Accrued interest
|
(29)
|
|
Accrued taxes
|
(85)
|
|
Accrued incentive plan
|
(60)
|
|
Other operating assets and liabilities, including liabilities subject to
compromise
|
(182)
|
|
Cash provided by operating activities
|
333
|
|
Cash flows — financing activities:
|
|
Repayments/repurchases of debt
|
(24)
|
|
Other, net
|
(3)
|
|
Cash used in financing activities
|
(27)
|
|
Cash flows — investing activities:
|
|
Capital expenditures
|
(63)
|
|
Nuclear fuel purchases
|
(35)
|
|
Solar development expenditures
|
(96)
|
|
Changes in restricted cash
|
31
|
|
Proceeds from sales of nuclear decommissioning trust fund
securities
|
98
|
|
Investments in nuclear decommissioning trust fund securities
|
(107)
|
|
Other, net
|
9
|
|
Cash used in investing activities
|
(163)
|
|
|
|
Net change in cash and cash equivalents
|
143
|
|
Cash and cash equivalents — beginning balance
|
843
|
|
Cash and cash equivalents — ending balance
|
$
|
986
|
|
VISTRA ENERGY CORP.
ADJUSTED EBITDA RECONCILIATION
(Unaudited) (Millions of Dollars)
|
|
Three Months
Ended
June 30, 2017
|
|
Six Months
Ended
June 30, 2017
|
Net income (loss)
|
$
|
(26)
|
|
|
$
|
52
|
|
Income tax expense
|
(8)
|
|
|
33
|
|
Interest expense and related charges
|
69
|
|
|
93
|
|
Depreciation and amortization (a)
|
189
|
|
|
389
|
|
EBITDA before adjustments
|
$
|
224
|
|
|
$
|
567
|
|
Reorganization items and restructuring expenses
|
5
|
|
|
9
|
|
Unrealized net (gains) losses resulting from hedging
transactions
|
67
|
|
|
(54)
|
|
Fresh start accounting impacts
|
24
|
|
|
51
|
|
Tax receivable agreement obligation accretion
|
22
|
|
|
42
|
|
Other
|
3
|
|
|
6
|
|
Adjusted EBITDA
|
$
|
345
|
|
|
$
|
621
|
|
____________
(a)
|
Includes nuclear fuel amortization of $17 million and $47 million for the
three and six months ended June 30, 2017, respectively.
|
VISTRA ENERGY CORP.
ADJUSTED FREE CASH FLOW RECONCILIATION
(Unaudited) (Millions of Dollars)
|
|
Six Months
Ended
June 30, 2017
|
Adjusted EBITDA
|
$
|
621
|
|
Interest paid, net (a)
|
(133)
|
|
Changes in other operating assets and liabilities
|
(238)
|
|
Changes in working capital
|
(74)
|
|
Changes in margin deposits (b)
|
158
|
|
Other, net
|
(1)
|
|
Cash provided by (used in) operating activities
|
$
|
333
|
|
Capital expenditures
|
(63)
|
|
Nuclear fuel purchases
|
(35)
|
|
Solar development expenditures
|
(96)
|
|
Other net investing activities (c)
|
2
|
|
Free cash flow
|
$
|
141
|
|
Changes in working capital
|
74
|
|
Changes in margin deposits (b)
|
(158)
|
|
Solar development expenditures
|
96
|
|
Payments funded from restructuring escrow accounts
|
26
|
|
Adjusted free cash flow
|
$
|
179
|
|
____________
(a)
|
Net of interest received. Excludes fees paid on Vistra Operations
Credit Facility repricing in February 2017.
|
(b)
|
Includes $11 million of margin deposits with CME, which are included in the
unrealized net (gain) loss from mark-to-market valuations of derivatives in the condensed statements of consolidated cash
flows.
|
(c)
|
Includes investments in and proceeds from the nuclear decommissioning trust
fund and other net investing cash flows, but excludes changes in restricted cash.
|
VISTRA ENERGY CORP.
2017 GUIDANCE RECONCILIATION
(Unaudited) (Millions of Dollars)
|
|
Year Ended
December 31, 2017
|
|
|
High
|
|
Low
|
Net Income
|
$
|
221
|
|
|
$
|
123
|
|
Income tax expense
|
186
|
|
|
134
|
|
Interest expense and related charges
|
199
|
|
|
199
|
|
Depreciation and amortization
|
676
|
|
|
676
|
|
EBITDA before adjustments
|
$
|
1,282
|
|
|
$
|
1,132
|
|
Fresh start accounting adjustments
|
63
|
|
|
63
|
|
Unrealized net (gain) loss resulting from hedging transactions
|
23
|
|
|
23
|
|
Tax receivable agreement accretion
|
100
|
|
|
100
|
|
Restructuring and other
|
32
|
|
|
32
|
|
Adjusted EBITDA
|
$
|
1,500
|
|
|
$
|
1,350
|
|
Interest payments
|
(225)
|
|
|
(225)
|
|
Tax payments
|
(64)
|
|
|
(42)
|
|
Tax receivable agreement payments
|
(16)
|
|
|
(16)
|
|
Working capital and margin deposits
|
188
|
|
|
188
|
|
Payments funded from restructuring escrow accounts
|
(90)
|
|
|
(90)
|
|
Other, net
|
(41)
|
|
|
(93)
|
|
Cash provided by (used in) operating activities
|
$
|
1,252
|
|
|
$
|
1,072
|
|
Capital expenditures including nuclear fuel
|
(219)
|
|
|
(219)
|
|
Other net investing activities
|
(10)
|
|
|
(10)
|
|
Free cash flow
|
$
|
1,023
|
|
|
$
|
843
|
|
Working capital and margin deposits
|
(188)
|
|
|
(188)
|
|
Payments funded from restructuring escrow accounts
|
90
|
|
|
90
|
|
Adjusted free cash flow
|
$
|
925
|
|
|
$
|
745
|
|
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SOURCE Vistra Energy