IRVING, Texas, Nov. 2, 2018 /PRNewswire/ -- Vistra Energy Corp.
(NYSE: VST):
Third Quarter Highlights
- Announced capital allocation plan:
-
- Upsizing of share repurchase program by an incremental $1.25 billion expected to be
opportunistically executed over the next 12 to 18 months,
- Adoption by board of directors of annual dividend program expected to begin in the first quarter of 2019 at
approximately $0.50 per share; Vistra management anticipates an annual dividend growth rate
in the range of approximately 6-8 percent per share, and
- Expectation to achieve leverage target of approximately 2.5x net debt to EBITDA1 (or approximately 2.7x
gross debt to EBITDA) by year-end 2020.
- Increased merger EBITDA value lever targets by an additional $65 million to $565 million, reflecting an increase of $15 million of synergies and
$50 million from the Operations Performance Initiative. Expected to realize and achieve
value lever targets as follows:
|
Realized in Year
|
Achieved by YE
|
2018
|
$175mm
|
$360mm
|
2019
|
$425mm
|
$515mm
|
2020
|
$540mm
|
$565mm
|
2021
|
$565mm
|
|
- Narrowed and reaffirmed 2018 full-year Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted Free Cash Flow
before Growth (FCFbG) guidance ranges of $2.75 to $2.85 billion and
$1.45 to $1.55 billion, respectively.2 Guidance
midpoints approximately $150 million greater than May 2018 guidance
applying October 2017 curves.
- Narrowed and updated 2019 full-year Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG guidance
ranges of $3.22 to $3.42 billion and $2.1 to $2.3 billion, respectively2, highlighting the company's
significant earnings power and EBITDA to free cash flow conversion of approximately 66%.3
- Completed previously announced $500 million share repurchase program.
- Reduced annual interest expense by approximately $56 million through the refinancing and
repayment of approximately $1.5 billion aggregate principal amount of outstanding senior
notes.
- Continued strong performance from our ERCOT retail business with organic growth resulting in residential customer counts up
1.4% year to date.
(1) Assuming approximately $400 million cash on balance sheet.
(2) Excludes results from the Asset Closure segment. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial
measures. See the "Non-GAAP Reconciliation" tables for further details.
(3) 2019 Ongoing Operations Adjusted EBITDA guidance range includes $425 million of synergies
expected to be realized in 2019 as compared to the full run-rate of adjusted EBITDA value lever targets of $565 million.
Summary of Financial Results for the Third Quarter Ended September 30, 2018 (in
millions)
($ in millions)
|
|
Three Months Ended
September 30, 2018
|
|
Nine Months Ended
September 30, 2018
|
Net Income
|
|
$
|
331
|
|
$
|
130
|
Ongoing Operations Net Income1
|
|
$
|
335
|
|
$
|
154
|
Ongoing Operations Adjusted EBITDA1
|
|
$
|
1,153
|
|
$
|
2,069
|
- exc. Odessa Earnout Buybacks
|
|
|
|
|
$
|
2,089
|
|
(1) Excludes results from the Asset Closure segment. Adjusted
EBITDA is a non-GAAP financial measure. See the "Non-GAAP Reconciliation" tables for further details.
|
For the three months ended September 30, 2018, Vistra reported net income from ongoing
operations of $335 million and adjusted EBITDA from ongoing operations of $1,153 million.
Year-to-date, Vistra reported net income from ongoing operations of $154 million and adjusted
EBITDA from ongoing operations of $2,069 million. Excluding the impact to adjusted EBITDA of
negative $20 million during the period resulting from the partial buybacks of the Odessa Power
Plant earnout in February and May, Vistra's year-to-date adjusted EBITDA from ongoing operations would have been $2,089 million. When the Odessa earnout buybacks were executed, Vistra
estimated the economic benefit of the transactions, net of the premiums paid, would be approximately $25
million.
Curt Morgan, Vistra's chief executive officer, commented, "We are excited to announce Vistra's
capital allocation program, including authorization to allocate an additional $1.25 billion of
capital toward share repurchases and to initiate a recurring dividend in the first quarter of 2019. Today's capital
allocation announcements are part of an ongoing commitment of returning capital to shareholders—all with a target to achieve 2.5
times net debt to EBITDA by year-end 2020. Vistra's resilient EBITDA production and robust free cash flow conversion in
2018 and expected in 2019 and beyond, stemming from the stability of our integrated model and substantial merger value, support
this diverse capital allocation plan including a growing dividend, which we believe will create meaningful value for our
shareholders."
Guidance
($ in millions)
|
|
2018
|
|
2019
|
Ongoing Ops. Adj. EBITDA1
|
|
$
|
2,750 - 2,850
|
|
$
|
3,220 – 3,420
|
Ongoing Ops. Adj. FCFbG1
|
|
$
|
1,450 - 1,550
|
|
$
|
2,100 – 2,300
|
|
(1) Excludes results from the Asset Closure segment. Adjusted
EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further
details.
|
Vistra Energy is narrowing and reaffirming its 2018 Ongoing Operations guidance ranges, forecasting Ongoing Operations
Adjusted EBITDA of $2,750 to $2,850 million and Ongoing Operations
Adjusted FCFbG of $1,450 to $1,550 million. The 2018 guidance
ranges were developed utilizing improved ERCOT forward curves as of March 29, 2018. The
ranges reflect Vistra's results on a stand-alone basis for the period prior to April 9, 2018 and
anticipated results of the combined company for the period from April 9 through December 31,
2018.
Vistra is also narrowing and updating its 2019 Ongoing Operations guidance ranges, forecasting Ongoing Operations Adjusted
EBITDA of $3,220 to $3,420 million and Ongoing Operations Adjusted
FCFbG of $2,100 to $2,300 million.
Initial Share Repurchase Program
As of November 1, 2018, Vistra has completed the initial $500
million share repurchase program authorized by its board of directors on June 12, 2018.
Vistra purchased approximately 21.4 million shares for an average price of $23.36 per
share.
Financing Update
In August 2018, Vistra Energy used the net proceeds from the issuance by Vistra Operations
Company LLC, a wholly owned, indirect subsidiary of Vistra Energy, of $1,000 million aggregate
principal amount of 5.50% senior notes due 2026, the net proceeds from a $350 million accounts
receivable securitization program, and cash on hand to fund cash tender offers to purchase $1,542
million aggregate principal amount of the following senior notes that Vistra Energy assumed in the merger with Dynegy:
- $26 million of 7.625% senior notes due 2024;
- $163 million of 8.034% senior notes due 2024;
- $669 million of 8.000% senior notes due 2025; and
- $684 million of 8.125% senior notes due 2026.
As a result of the transaction, Vistra reduced its annual interest expense by approximately $56
million and extended maturities.
Liquidity
As of September 30, 2018, Vistra had total available liquidity of approximately $2.101 billion, including cash and cash equivalents of $811 million and
$1,290 million of availability under its revolving credit facility, which remained undrawn but had
$1,210 million of letters of credit outstanding as of September 30,
2018.
Plant Retirement
Vistra announced on August 24, 2018 the planned retirement of its 51-megawatt waste coal
facility, Northeastern Power Company, due to its uneconomic operations and negative financial outlook. The plant was
retired on October 24, 2018.
Earnings Webcast
Vistra will host a webcast today, November 2, 2018, beginning at 8 a.m.
ET (7 a.m. CT) to discuss these results and related matters. The live, listen-only
webcast and the accompanying slides that will be discussed on the call can be accessed via the investor relations section of
Vistra's website at www.vistraenergy.com. 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
obligations, reorganization items, and certain other items described from time to time in Vistra Energy'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, preferred stock dividends, and other items described from time to time in Vistra
Energy's earnings releases), "Ongoing Operations Adjusted EBITDA" (adjusted EBITDA less adjusted EBITDA 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 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 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 Energy 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 Energy's management and board
of directors have found it informative to view the Asset Closure segment as separate and distinct from Vistra Energy's ongoing
operations. 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 (NYSE: VST) is a premier, integrated power company based in Irving,
Texas, combining an innovative, customer-centric approach to retail with a focus on safe, reliable, and efficient power
generation. Through its retail and generation businesses which include TXU Energy, Homefield Energy, Dynegy, and Luminant, Vistra
operates in 12 states and six of the seven competitive markets in the U.S., with about 6,000 employees. Vistra's retail brands
serve approximately 2.9 million residential, commercial, and industrial customers across five top retail states, and its
generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of
natural gas, nuclear, coal, and solar facilities.
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 Energy Corp. ("Vistra Energy") operates and beliefs of and assumptions
made by Vistra Energy'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 Energy. 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, 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," "expect," "seek," "anticipate," "estimate," "continue," "will," "shall," "should,"
"could," "may," "might," "predict," "project," "forecast," "target," "potential," "forecast," "goal," "objective," "guidance" and
"outlook"),are forward-looking statements. 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 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 Energy to execute upon the contemplated strategic and
performance initiatives (including the risk that Vistra Energy's and Dynegy's respective businesses will not be integrated
successfully or that the cost savings, synergies and growth from the merger will not be fully realized or may take longer than
expected to realize); (iii) actions by credit ratings agencies and (iv) those additional risks and factors discussed in reports
filed with the Securities and Exchange Commission ("SEC") by Vistra Energy from time to time, including the uncertainties and
risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in Vistra Energy's quarterly report on
Form 10-Q for the fiscal quarter ended June 30, 2018 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 Energy
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 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 Per Share Amounts)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating revenues (Note 5)
|
$
|
3,243
|
|
|
$
|
1,833
|
|
|
$
|
6,581
|
|
|
$
|
4,487
|
|
Fuel, purchased power costs and delivery fees
|
(1,627)
|
|
|
(838)
|
|
|
(3,492)
|
|
|
(2,250)
|
|
Operating costs
|
(346)
|
|
|
(218)
|
|
|
(926)
|
|
|
(626)
|
|
Depreciation and amortization
|
(426)
|
|
|
(178)
|
|
|
(967)
|
|
|
(519)
|
|
Selling, general and administrative expenses
|
(194)
|
|
|
(147)
|
|
|
(711)
|
|
|
(434)
|
|
Operating income
|
650
|
|
|
452
|
|
|
485
|
|
|
658
|
|
Other income (Note 20)
|
6
|
|
|
10
|
|
|
25
|
|
|
29
|
|
Other deductions (Note 20)
|
(1)
|
|
|
—
|
|
|
(4)
|
|
|
(5)
|
|
Interest expense and related charges (Note 20)
|
(154)
|
|
|
(76)
|
|
|
(291)
|
|
|
(169)
|
|
Impacts of Tax Receivable Agreement (Note 8)
|
17
|
|
|
138
|
|
|
(65)
|
|
|
96
|
|
Equity in earnings of unconsolidated investment
|
7
|
|
|
—
|
|
|
11
|
|
|
—
|
|
Income before income taxes
|
525
|
|
|
524
|
|
|
161
|
|
|
609
|
|
Income tax expense (Note 7)
|
(194)
|
|
|
(251)
|
|
|
(31)
|
|
|
(284)
|
|
Net income
|
$
|
331
|
|
|
$
|
273
|
|
|
$
|
130
|
|
|
$
|
325
|
|
Less: Net (income) loss attributable to noncontrolling interest
|
1
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
Net income attributable to Vistra Energy
|
$
|
330
|
|
|
$
|
273
|
|
|
$
|
132
|
|
|
$
|
325
|
|
Weighted average shares of common stock outstanding:
|
|
|
|
|
|
|
|
Basic
|
533,142,189
|
|
|
427,591,426
|
|
|
500,781,573
|
|
|
427,587,404
|
|
Diluted
|
540,972,802
|
|
|
428,312,438
|
|
|
508,128,988
|
|
|
428,001,869
|
|
Net income per weighted average share of common stock
outstanding:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.62
|
|
|
$
|
0.64
|
|
|
$
|
0.26
|
|
|
$
|
0.76
|
|
Diluted
|
$
|
0.61
|
|
|
$
|
0.64
|
|
|
$
|
0.26
|
|
|
$
|
0.76
|
|
VISTRA ENERGY CORP.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited) (Millions of Dollars)
|
|
|
Nine Months Ended September 30,
|
|
2018
|
|
2017
|
|
|
|
|
Cash flows — operating activities:
|
|
|
|
Net income
|
$
|
130
|
|
$
|
325
|
Adjustments to reconcile net income (loss) to cash provided by (used in)
operating activities:
|
|
|
|
Depreciation and amortization
|
1,070
|
|
621
|
Deferred income tax (benefit) expense, net
|
29
|
|
209
|
Unrealized net (gain) loss from mark-to-market valuations of
commodities
|
207
|
|
(202)
|
Unrealized net (gain) loss from mark-to-market valuations of interest rate
swaps
|
(123)
|
|
3
|
Accretion expense
|
37
|
|
43
|
Impacts of Tax Receivable Agreement (Note 8)
|
65
|
|
(96)
|
Stock-based compensation (Note 17)
|
59
|
|
13
|
Other, net
|
64
|
|
41
|
Changes in operating assets and liabilities:
|
|
|
|
Margin deposits, net
|
(39)
|
|
183
|
Accrued interest
|
(59)
|
|
(26)
|
Accrued taxes
|
(102)
|
|
4
|
Accrued incentive plan
|
(17)
|
|
(46)
|
Other operating assets and liabilities
|
(458)
|
|
(227)
|
Cash provided by operating activities
|
863
|
|
845
|
Cash flows — financing activities:
|
|
|
|
Issuances of long-term debt (Note 11)
|
1,000
|
|
—
|
Repayments/repurchases of debt (Note 11)
|
(2,902)
|
|
(32)
|
Borrowing under accounts receivable securitization program (Note
10)
|
350
|
|
—
|
Stock repurchase (Note 13)
|
(414)
|
|
—
|
Debt tender offer and other financing fees (Note 11)
|
(216)
|
|
(5)
|
Other, net
|
10
|
|
—
|
Cash used in financing activities
|
(2,172)
|
|
(37)
|
Cash flows — investing activities:
|
|
|
|
Capital expenditures
|
(209)
|
|
(86)
|
Nuclear fuel purchases
|
(66)
|
|
(56)
|
Cash acquired in the Merger
|
445
|
|
—
|
Solar development expenditures (Note 3)
|
(28)
|
|
(129)
|
Odessa acquisition (Note 3)
|
—
|
|
(355)
|
Proceeds from sales of nuclear decommissioning trust fund securities (Note
20)
|
211
|
|
154
|
Investments in nuclear decommissioning trust fund securities (Note
20)
|
(227)
|
|
(169)
|
Other, net
|
7
|
|
10
|
Cash provided by (used in) investing activities
|
133
|
|
(631)
|
|
|
|
|
Net change in cash, cash equivalents and restricted cash
|
(1,176)
|
|
177
|
Cash, cash equivalents and restricted cash — beginning balance
|
2,046
|
|
1,588
|
Cash, cash equivalents and restricted cash — ending balance
|
$
|
870
|
|
$
|
1,765
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - SEPTEMBER 2018 QTD ADJUSTED
EBITDA
(Unaudited) (Millions of Dollars)
|
|
|
Three Months Ended September 30, 2018
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income (loss)
|
$
|
(86)
|
|
|
$
|
643
|
|
|
$
|
62
|
|
|
$
|
47
|
|
|
$
|
(3)
|
|
|
$
|
(328)
|
|
|
$
|
335
|
|
|
$
|
(4)
|
|
|
$
|
331
|
|
Income tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
194
|
|
|
194
|
|
|
—
|
|
|
194
|
|
Interest expense and related charges
|
3
|
|
|
(2)
|
|
|
3
|
|
|
1
|
|
|
1
|
|
|
148
|
|
|
154
|
|
|
—
|
|
|
154
|
|
Depreciation and amortization (a)
|
80
|
|
|
142
|
|
|
141
|
|
|
55
|
|
|
3
|
|
|
25
|
|
|
446
|
|
|
—
|
|
|
446
|
|
EBITDA before Adjustments
|
$
|
(3)
|
|
|
$
|
783
|
|
|
$
|
206
|
|
|
$
|
103
|
|
|
$
|
1
|
|
|
$
|
39
|
|
|
$
|
1,129
|
|
|
$
|
(4)
|
|
|
$
|
1,125
|
|
Unrealized net (gain) loss resulting from hedging transactions
|
154
|
|
|
(195)
|
|
|
21
|
|
|
—
|
|
|
32
|
|
|
(4)
|
|
|
8
|
|
|
—
|
|
|
8
|
|
Fresh start/purchase accounting impacts
|
(15)
|
|
|
—
|
|
|
(1)
|
|
|
5
|
|
|
3
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
|
(8)
|
|
Impacts of Tax Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17)
|
|
|
(17)
|
|
|
—
|
|
|
(17)
|
|
Non-cash compensation expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|
—
|
|
|
14
|
|
Transition and merger expenses
|
—
|
|
|
3
|
|
|
5
|
|
|
1
|
|
|
1
|
|
|
9
|
|
|
19
|
|
|
—
|
|
|
19
|
|
Other, net
|
5
|
|
|
6
|
|
|
9
|
|
|
2
|
|
|
2
|
|
|
(16)
|
|
|
8
|
|
|
(8)
|
|
|
—
|
|
Adjusted EBITDA
|
$
|
141
|
|
|
$
|
597
|
|
|
$
|
240
|
|
|
$
|
111
|
|
|
$
|
39
|
|
|
$
|
25
|
|
|
$
|
1,153
|
|
|
$
|
(12)
|
|
|
$
|
1,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________
|
|
|
(a)
|
Includes nuclear fuel amortization of $20 million in ERCOT.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - SEPTEMBER 2018 YTD ADJUSTED
EBITDA
(Unaudited) (Millions of Dollars)
|
|
|
Nine Months Ended September 30, 2018
|
|
Retail
|
|
ERCOT
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
Eliminations
/ Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income (loss)
|
$
|
397
|
|
|
$
|
236
|
|
|
$
|
86
|
|
|
$
|
41
|
|
|
$
|
29
|
|
|
$
|
(635)
|
|
|
$
|
154
|
|
|
$
|
(24)
|
|
|
$
|
130
|
|
Income tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
31
|
|
|
—
|
|
|
31
|
|
Interest expense and related charges
|
3
|
|
|
13
|
|
|
5
|
|
|
1
|
|
|
1
|
|
|
268
|
|
|
291
|
|
|
—
|
|
|
291
|
|
Depreciation and amortization (a)
|
237
|
|
|
355
|
|
|
266
|
|
|
104
|
|
|
6
|
|
|
59
|
|
|
1,027
|
|
|
—
|
|
|
1,027
|
|
EBITDA before Adjustments
|
$
|
637
|
|
|
$
|
604
|
|
|
$
|
357
|
|
|
$
|
146
|
|
|
$
|
36
|
|
|
$
|
(277)
|
|
|
$
|
1,503
|
|
|
$
|
(24)
|
|
|
$
|
1,479
|
|
Unrealized net (gain) loss resulting from hedging transactions
|
(38)
|
|
|
207
|
|
|
20
|
|
|
22
|
|
|
—
|
|
|
(4)
|
|
|
207
|
|
|
—
|
|
|
207
|
|
Fresh start/purchase accounting impacts
|
12
|
|
|
(4)
|
|
|
(2)
|
|
|
9
|
|
|
11
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
Impacts of Tax Receivable Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
65
|
|
|
—
|
|
|
65
|
|
Non-cash compensation expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
62
|
|
|
—
|
|
|
62
|
|
Transition and merger expenses
|
—
|
|
|
7
|
|
|
7
|
|
|
1
|
|
|
5
|
|
|
183
|
|
|
203
|
|
|
2
|
|
|
205
|
|
Other, net
|
(16)
|
|
|
(5)
|
|
|
12
|
|
|
7
|
|
|
5
|
|
|
—
|
|
|
3
|
|
|
(7)
|
|
|
(4)
|
|
Adjusted EBITDA
|
$
|
595
|
|
|
$
|
809
|
|
|
$
|
394
|
|
|
$
|
185
|
|
|
$
|
57
|
|
|
$
|
29
|
|
|
$
|
2,069
|
|
|
$
|
(29)
|
|
|
$
|
2,040
|
|
___________
|
|
|
(a)
|
Includes nuclear fuel amortization of $60 million in ERCOT.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - SEPTEMBER 2017 QTD ADJUSTED EBITDA
(Unaudited) (Millions of Dollars)
|
|
|
Three Months Ended September 30, 2017
|
|
Retail
|
|
ERCOT
|
|
Eliminations /
Corp & Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Energy
Consolidated
|
Net income (loss)
|
$
|
7
|
|
|
$
|
405
|
|
|
$
|
(203)
|
|
|
$
|
209
|
|
|
$
|
64
|
|
|
$
|
273
|
|
Income tax expense (benefit)
|
—
|
|
|
—
|
|
|
251
|
|
|
251
|
|
|
—
|
|
|
251
|
|
Interest expense and related charges
|
—
|
|
|
9
|
|
|
67
|
|
|
76
|
|
|
—
|
|
|
76
|
|
Depreciation and amortization (a)
|
108
|
|
|
77
|
|
|
10
|
|
|
195
|
|
|
1
|
|
|
196
|
|
EBITDA before adjustments
|
$
|
115
|
|
|
$
|
491
|
|
|
$
|
125
|
|
|
$
|
731
|
|
|
$
|
65
|
|
|
$
|
796
|
|
Unrealized net (gain) loss resulting from hedging transactions
|
87
|
|
|
(235)
|
|
|
—
|
|
|
(148)
|
|
|
—
|
|
|
(148)
|
|
Generation plant retirement expenses
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
24
|
|
|
24
|
|
Fresh start accounting impacts
|
(19)
|
|
|
—
|
|
|
—
|
|
|
(19)
|
|
|
4
|
|
|
(15)
|
|
Impacts of Tax Receivable Agreement
|
—
|
|
|
—
|
|
|
(138)
|
|
|
(138)
|
|
|
—
|
|
|
(138)
|
|
Reorganization items and restructuring expenses
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Other, net
|
(7)
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Adjusted EBITDA
|
$
|
176
|
|
|
$
|
256
|
|
|
$
|
(3)
|
|
|
$
|
429
|
|
|
$
|
93
|
|
|
$
|
522
|
|
____________
|
|
|
(a)
|
Includes nuclear fuel amortization of $19 million in the ERCOT
segment.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - SEPTEMBER 2017 YTD ADJUSTED EBITDA
(Unaudited) (Millions of Dollars)
|
|
|
Nine Months Ended September 30, 2017
|
|
Retail
|
|
ERCOT
|
|
Eliminations /
Corp & Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra
Energy
Consolidated
|
Net income (loss)
|
$
|
77
|
|
|
$
|
552
|
|
|
$
|
(405)
|
|
|
$
|
224
|
|
|
$
|
101
|
|
|
$
|
325
|
|
Income tax expense (benefit)
|
—
|
|
|
—
|
|
|
284
|
|
|
284
|
|
|
—
|
|
|
284
|
|
Interest expense and related charges
|
—
|
|
|
14
|
|
|
155
|
|
|
169
|
|
|
—
|
|
|
169
|
|
Depreciation and amortization (a)
|
322
|
|
|
232
|
|
|
29
|
|
|
583
|
|
|
1
|
|
|
584
|
|
EBITDA before adjustments
|
$
|
399
|
|
|
$
|
798
|
|
|
$
|
63
|
|
|
$
|
1,260
|
|
|
$
|
102
|
|
|
$
|
1,362
|
|
Unrealized net (gain) loss resulting from hedging transactions
|
160
|
|
|
(362)
|
|
|
—
|
|
|
(202)
|
|
|
—
|
|
|
(202)
|
|
Generation plant retirement expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
Fresh start accounting impacts
|
24
|
|
|
(1)
|
|
|
—
|
|
|
23
|
|
|
12
|
|
|
35
|
|
Impacts of Tax Receivable Agreement
|
—
|
|
|
—
|
|
|
(96)
|
|
|
(96)
|
|
|
—
|
|
|
(96)
|
|
Reorganization items and restructuring expenses
|
2
|
|
|
1
|
|
|
12
|
|
|
15
|
|
|
—
|
|
|
15
|
|
Other, net
|
(13)
|
|
|
6
|
|
|
12
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Adjusted EBITDA
|
$
|
572
|
|
|
$
|
442
|
|
|
$
|
(9)
|
|
|
$
|
1,005
|
|
|
$
|
138
|
|
|
$
|
1,143
|
|
____________
|
|
|
(a)
|
Includes nuclear fuel amortization of $66 million in the ERCOT
segment.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - 2018 GUIDANCE
(Unaudited) (Millions of Dollars)
|
|
|
Ongoing
Operations
|
|
Asset Closure
|
|
Vistra Energy
Consolidated
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net Income
|
$
|
103
|
|
|
$
|
180
|
|
|
$
|
(74)
|
|
|
$
|
(64)
|
|
|
$
|
29
|
|
|
$
|
116
|
|
Income tax expense
|
78
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
101
|
|
Interest expense and related charges
|
474
|
|
|
474
|
|
|
—
|
|
|
—
|
|
|
474
|
|
|
474
|
|
Depreciation and amortization
|
1,468
|
|
|
1,468
|
|
|
—
|
|
|
—
|
|
|
1,468
|
|
|
1,468
|
|
EBITDA before adjustments
|
$
|
2,123
|
|
|
$
|
2,223
|
|
|
$
|
(74)
|
|
|
$
|
(64)
|
|
|
$
|
2,049
|
|
|
$
|
2,159
|
|
Unrealized net (gain) loss resulting from hedging transactions
|
150
|
|
|
150
|
|
|
3
|
|
|
3
|
|
|
153
|
|
|
153
|
|
Fresh start / purchase accounting impacts
|
63
|
|
|
63
|
|
|
(2)
|
|
|
(2)
|
|
|
61
|
|
|
61
|
|
Impacts of Tax Receivable Agreement
|
113
|
|
|
113
|
|
|
—
|
|
|
—
|
|
|
113
|
|
|
113
|
|
Transition and merger expenses
|
212
|
|
|
212
|
|
|
—
|
|
|
—
|
|
|
212
|
|
|
212
|
|
Other, net
|
89
|
|
|
89
|
|
|
3
|
|
|
3
|
|
|
92
|
|
|
92
|
|
Adjusted EBITDA
|
$
|
2,750
|
|
|
$
|
2,850
|
|
|
$
|
(70)
|
|
|
$
|
(60)
|
|
|
$
|
2,680
|
|
|
$
|
2,790
|
|
Interest paid, net
|
(628)
|
|
|
(628)
|
|
|
—
|
|
|
—
|
|
|
(628)
|
|
|
(628)
|
|
Tax payments (a)
|
(48)
|
|
|
(48)
|
|
|
—
|
|
|
—
|
|
|
(48)
|
|
|
(48)
|
|
Tax receivable agreement payments
|
(29)
|
|
|
(29)
|
|
|
—
|
|
|
—
|
|
|
(29)
|
|
|
(29)
|
|
Working capital and margin deposits
|
(218)
|
|
|
(218)
|
|
|
1
|
|
|
1
|
|
|
(217)
|
|
|
(217)
|
|
Reclamation and remediation
|
(34)
|
|
|
(34)
|
|
|
(69)
|
|
|
(69)
|
|
|
(103)
|
|
|
(103)
|
|
Other changes in operating assets and liabilities
|
(335)
|
|
|
(335)
|
|
|
(30)
|
|
|
(20)
|
|
|
(365)
|
|
|
(355)
|
|
Cash provided by operating activities
|
$
|
1,458
|
|
|
$
|
1,558
|
|
|
$
|
(168)
|
|
|
$
|
(148)
|
|
|
$
|
1,290
|
|
|
$
|
1,410
|
|
Capital expenditures including nuclear fuel
|
(454)
|
|
|
(454)
|
|
|
—
|
|
|
—
|
|
|
(454)
|
|
|
(454)
|
|
Solar and Moss Landing development expenditures
|
(71)
|
|
|
(71)
|
|
|
—
|
|
|
—
|
|
|
(71)
|
|
|
(71)
|
|
Other net investing activities
|
(22)
|
|
|
(22)
|
|
|
3
|
|
|
3
|
|
|
(19)
|
|
|
(19)
|
|
Free cash flow
|
$
|
911
|
|
|
$
|
1,011
|
|
|
$
|
(165)
|
|
|
$
|
(145)
|
|
|
$
|
746
|
|
|
$
|
866
|
|
Working capital and margin deposits
|
218
|
|
|
218
|
|
|
(1)
|
|
|
(1)
|
|
|
217
|
|
|
217
|
|
Solar and Moss Landing development expenditures
|
71
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|
71
|
|
Taxes related to Alcoa settlement
|
45
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
Transition and merger expenses
|
182
|
|
|
182
|
|
|
—
|
|
|
—
|
|
|
182
|
|
|
182
|
|
Generation plant retirement expenses
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
|
26
|
|
|
26
|
|
Transition capital expenditures
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
Adjusted free cash flow
|
$
|
1,450
|
|
|
$
|
1,550
|
|
|
$
|
(140)
|
|
|
$
|
(120)
|
|
|
$
|
1,310
|
|
|
$
|
1,430
|
|
____________
|
|
|
(a)
|
Includes state tax payments.
|
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - 2019 GUIDANCE
(Unaudited) (Millions of Dollars)
|
|
|
Ongoing
Operations
|
|
Asset Closure
|
|
Vistra Energy
Consolidated
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net Income
|
$
|
944
|
|
|
$
|
1,100
|
|
|
$
|
(66)
|
|
|
$
|
(56)
|
|
|
$
|
878
|
|
|
$
|
1,044
|
|
Income tax expense
|
283
|
|
|
327
|
|
|
—
|
|
|
—
|
|
|
283
|
|
|
327
|
|
Interest expense and related charges
|
575
|
|
|
575
|
|
|
—
|
|
|
—
|
|
|
575
|
|
|
575
|
|
Depreciation and amortization
|
1,558
|
|
|
1,558
|
|
|
—
|
|
|
—
|
|
|
1,558
|
|
|
1,558
|
|
EBITDA before adjustments
|
$
|
3,360
|
|
|
$
|
3,560
|
|
|
$
|
(66)
|
|
|
$
|
(56)
|
|
|
$
|
3,294
|
|
|
$
|
3,504
|
|
Unrealized net (gain) loss resulting from hedging transactions
|
(355)
|
|
|
(355)
|
|
|
—
|
|
|
—
|
|
|
(355)
|
|
|
(355)
|
|
Fresh start / purchase accounting impacts
|
67
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
67
|
|
Impacts of Tax Receivable Agreement
|
67
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
67
|
|
Transition and merger expenses
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
Other, net
|
73
|
|
|
73
|
|
|
1
|
|
|
1
|
|
|
74
|
|
|
74
|
|
Adjusted EBITDA
|
$
|
3,220
|
|
|
$
|
3,420
|
|
|
$
|
(65)
|
|
|
$
|
(55)
|
|
|
$
|
3,155
|
|
|
$
|
3,365
|
|
Interest payments
|
(583)
|
|
|
(583)
|
|
|
—
|
|
|
—
|
|
|
(583)
|
|
|
(583)
|
|
Tax payments (a)
|
110
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|
110
|
|
Working capital and margin deposits
|
81
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
81
|
|
|
81
|
|
Reclamation and remediation
|
(60)
|
|
|
(60)
|
|
|
(118)
|
|
|
(118)
|
|
|
(178)
|
|
|
(178)
|
|
Other changes in operating assets and liabilities
|
(5)
|
|
|
(5)
|
|
|
26
|
|
|
36
|
|
|
21
|
|
|
31
|
|
Cash provided by operating activities
|
$
|
2,763
|
|
|
$
|
2,963
|
|
|
$
|
(157)
|
|
|
$
|
(137)
|
|
|
$
|
2,606
|
|
|
$
|
2,826
|
|
Capital expenditures including nuclear fuel
|
(594)
|
|
|
(594)
|
|
|
—
|
|
|
—
|
|
|
(594)
|
|
|
(594)
|
|
Solar and Moss Landing development expenditures
|
(135)
|
|
|
(135)
|
|
|
—
|
|
|
—
|
|
|
(135)
|
|
|
(135)
|
|
Other net investing activities
|
(20)
|
|
|
(20)
|
|
|
2
|
|
|
2
|
|
|
(18)
|
|
|
(18)
|
|
Free cash flow
|
$
|
2,014
|
|
|
$
|
2,214
|
|
|
$
|
(155)
|
|
|
$
|
(135)
|
|
|
$
|
1,859
|
|
|
$
|
2,079
|
|
Working capital and margin deposits
|
(81)
|
|
|
(81)
|
|
|
—
|
|
|
—
|
|
|
(81)
|
|
|
(81)
|
|
Solar and Moss Landing development expenditures
|
135
|
|
|
135
|
|
|
—
|
|
|
—
|
|
|
135
|
|
|
135
|
|
Transition and merger expenses
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
Transition capital expenditures
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
Adjusted free cash flow
|
$
|
2,100
|
|
|
$
|
2,300
|
|
|
$
|
(155)
|
|
|
$
|
(135)
|
|
|
$
|
1,945
|
|
|
$
|
2,165
|
|
____________
|
|
|
(a)
|
Includes state tax payments.
|
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SOURCE Vistra Energy