Vistra Energy Announces Capital Allocation Plan; Reports Third Quarter 2018 Results; Narrows 2018 and 2019 Guidance
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 EBITDA(1) (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, respectively(2), 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 Nine Months Ended
September 30, 2018
September 30, 2018
---
Net Income $
331 $
130
Ongoing Operations Net Income(1) $
335 $
154
Ongoing Operations Adjusted EBITDA(1) $
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. EBITDA(1)
$
2,750 - 2,850
$
3,220 - 3,420
Ongoing Ops. Adj. FCFbG(1)
$
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 Ongoing Asset Vistra
/ Corp and Operations Closure
Other Consolidated 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 Ongoing Asset Vistra
/ Corp and Operations Closure Energy
Other Consolidated 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 / Ongoing Asset Vistra Energy
Operations Closure Consolidated
Corp & Other 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 / Ongoing Asset Vistra
Operations Closure Energy
Corp & Other Consolidated 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 Asset Closure Vistra Energy
Operations 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 Asset Closure Vistra Energy
Operations 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
