Vistra Energy Reports 2019 Results Above Guidance Midpoint for the Fourth Year in a Row and Reaffirms 2020 Guidance
IRVING, Texas, Feb. 28, 2020 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):
Financial Highlights
-- Delivered 2019 Ongoing Operations Adjusted EBITDA(1) of $3,393 million
and Net Income from Ongoing Operations of $1,035 million, representing
the fourth year in a row Vistra's financial results have come in above
the midpoint of Vistra's guidance.
-- Delivered 2019 Ongoing Operations Adjusted Free Cash Flow before Growth
(FCFbG)(1) of $2,437 million and Operating Cash Flow from Ongoing
Operations of $2,736 million--results that are $187 million above the
guidance midpoint and $137 million above the high-end of the increased
guidance range as a result of higher EBITDA, capital expenditure
discipline, and the early receipt of $93 million of alternative minimum
tax credit refunds that were anticipated in 2020; results reflect a free
cash flow conversion ratio of nearly 72 percent.
-- Reaffirmed 2020 Ongoing Operations Adjusted EBITDA and Ongoing
Operations Adjusted FCFbG guidance ranges of $3.285 to $3.585 billion
and $2.16 to $2.46 billion(1), respectively.
-- Achieved $565 million of the projected $715 million of Dynegy merger
synergy and Operations Performance Initiative EBITDA value lever targets
by year-end 2019; the $715 million target is an increase of more than
100% from the $350 million per year of EBITDA value lever targets
announced in October of 2017. Vistra expects to realize and achieve the
EBITDA value lever targets as follows:
Realized in Year Achieved by YE
2019 $490 $565
---
2020 $590 $665
---
2021 $685 $715
---
Capital Allocation Highlights
-- Executed approximately $1.418 billion of the previously authorized $1.75
billion share repurchase program as of Feb. 24, 2020, resulting in net
shares outstanding of approximately 487.7 million as of the same date.
-- Paid quarterly dividend of $0.125 per share on Dec. 30, 2019 to
shareholders of record as of Dec. 16, 2019, or $0.50 per share on an
annualized basis.
-- Announced an 8% increase to the annual dividend program, an expected
$0.54 per share on an annual basis; initial quarterly dividend of $0.135
per share to be paid on March 31, 2020 to shareholders of record as of
March 17, 2020.
-- Reduced after-tax interest expense by approximately $95 million in 2019
via multiple financing transactions, including approximately $600
million of optional debt and preferred stock repayments and another
approximately $8.3 billion of refinancings; Vistra continues to progress
toward its long-term leverage target of approximately 2.5x net debt to
EBITDA.
Growth and Sustainability Highlights
-- Closed both the Crius Energy Trust and Ambit Energy acquisitions, making
Vistra the largest company in the high-margin competitive residential
electricity markets in the country and increasing Vistra's average
generation-to-retail load match to nearly 60%.
-- Introduced two new retail brands, Brighten Energy and Better Buy, in
Illinois, Ohio, and Pennsylvania, and launched the first of their kind,
innovative, and market-leading products, TXU Energy Free Pass and TXU
Energy Pure Solar, out of the company's flagship brand, TXU Energy,
while growing residential customer counts in ERCOT.
-- Announced greenhouse gas emissions reduction targets of greater than 50%
by 2030 and greater than 80% by 2050, each as compared to a 2010
baseline, with aspirations to achieve net-zero emissions by 2050,
assuming necessary advancements in technology and supportive market
constructs and public policy.
-- Joined the Climate Leadership Council as a founding member, taking a
leadership role in the promotion of a market-based carbon-pricing
program with a dividend plan and carbon border adjustment as the most
effective and equitable manner of achieving economy-wide decarbonization
while preserving the strengths of the U.S. economy.
-- Continued to advance the company's battery storage business in
California with the 300 MW, 1,200 MWh Moss Landing project under
construction and executing an agreement to develop a 20 MW battery
storage project at the company's Oakland site.
-- Retired approximately 2.0 GW of coal-fueled generation in downstate
Illinois in compliance with the Illinois' Multi-Pollutant Standard rule
changes and supported the Coal to Solar and Energy Storage Act to
repurpose the coal closure sites and bring economic vitality to the
affected communities.
(1) Excludes the Asset Closure segment.
Adjusted EBITDA and Adjusted FCFbG
are non-GAAP financial measures.
See the "Non-GAAP Reconciliation"
tables for further details.
Summary of Financial Results for Full Year 2019 and the Fourth Quarter Ended Dec. 31, 2019
Three Months Ended
Year Ended
($ in millions) Dec. 31, 2019 Dec. 31, 2018(2) Dec. 31, 2019
---
Net Income $233 $(186) $926
Ongoing Operations Net Income(1) $240 $(166) $1,035
Ongoing Operations Adjusted EBITDA(1) $775 $720 $3,393
---
Operating Cash Flow $2,736
Ongoing Operations Adjusted FCFbG(1) $2,437
Adjusted EBITDA by Segment
Retail $343 $250 $807
ERCOT $187 $139 $1,370
PJM $171 $195 $760
NY/NE $49 $108 $307
MISO $12 $10 $103
CAISO/Corp $13 $18 $46
Asset Closure $(4) $(20) $(68)
For the three months ended Dec. 31, 2019, Vistra reported Net Income from Ongoing Operations(1) of $240 million and Adjusted EBITDA from Ongoing Operations(1) of $775 million. Vistra's fourth quarter Adjusted EBITDA was $55 million higher than fourth quarter 2018 results, driven by retail acquisitions partially offset by lower capacity revenue in generation.
For the full year of 2019, Vistra reported Net Income from Ongoing Operations(1) of $1,035 million and Adjusted EBITDA from Ongoing Operations(1) of $3,393 million. Year-to-date results were above the midpoint of Vistra's guidance driven by higher gross margin in the ERCOT segment.
Vistra reported fourth quarter retail Adjusted EBITDA of $343 million, $93 million higher than fourth quarter 2018 results, driven by the Crius and Ambit acquisitions. Fourth quarter Adjusted EBITDA from the generation segments totaled $432 million(3), $38 million lower than fourth quarter 2018 results, due to lower capacity payments in PJM, NY, and ISO-NE partially offset by higher gross margin in ERCOT.
Curt Morgan, Vistra's president and chief executive officer, said, "Vistra started the year with a focus on execution and I am happy to announce today that once again, for the fourth year in row--every year since Vistra has been a public company--we delivered financial results that exceeded our guidance midpoint. Over that same time period we have more than doubled our EBITDA and returned nearly $5 billion of capital. We believe Vistra's business model, which prioritizes a strong balance sheet, a disciplined approach to capital allocation, and is comprised of industry-leading integrated retail and generation businesses, is well-positioned to continue to deliver strong and consistent results in the years ahead. In 2020, Vistra is focused on further strengthening our balance sheet and providing long-term capital allocation clarity later in the year."
(1) Excludes results from the Asset
Closure segment. Adjusted EBITDA is
a non-GAAP financial measure. See
the "Non-GAAP Reconciliation"
tables for further details. Total by
segment may not tie due to rounding.
(2) 2018 results for four MISO assets
retired in late 2019 were recast
from the MISO segment to the Asset
Closure segment.
(3) Generation includes Corporate.
Guidance
($ in millions) 2020
Ongoing Ops. Adj. EBITDA(1)
$ 3,285 - 3,585
Ongoing Ops. Adj. FCFbG(1)
$ 2,160 - 2,460
(1) Excludes the Asset Closure segment.
Adjusted EBITDA and Adjusted FCFbG
are non-GAAP financial measures.
See the "Non-GAAP Reconciliation"
tables for further details.
Vistra is reaffirming its 2020 Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of $3,285 to $3,585 million and $2,160 to $2,460 million, respectively.
Share Repurchase Program
As of Feb. 24, 2020, Vistra has completed approximately $1.418 billion in share repurchases under the $1.75 billion share repurchase program previously authorized by its board of directors. Vistra has purchased approximately 60 million shares, resulting in net shares outstanding of approximately 487.7 million as of Feb. 24, 2020. Approximately $332 million remains available for execution under the program as of the same date.
Financing Update
In November 2019, Vistra Operations used the net proceeds from the issuance of $1.1 billion aggregate principal amount of new senior secured notes - consisting of $300 million of 3.550% senior notes due 2024 and $800 million of 3.700% senior notes due 2027 - plus approximately $799 million of incremental borrowings under the Term Loan B-3 Facility due 2025, to repay the entire amount outstanding of $1.897 billion of term loans under the Term Loan B-1 Facility due 2023.
In addition, in November 2019, Vistra Operations amended its credit facility to reduce the interest rate applicable to its upsized $2.7 billion Term Loan B-3 Facility to a rate equal to, at the option of the Borrower, LIBOR plus 1.75% or a base rate plus 0.75%.
As a result of these transactions, Vistra continued to reduce its annual interest expense and extend the average maturity of its outstanding indebtedness.
Liquidity
As of Dec. 31, 2019, Vistra had total available liquidity of approximately $1,726 million, including cash and cash equivalents of $300 million and $1,426 million of availability under its revolving credit facility. The company had $949 million of letters of credit outstanding as of Dec. 31, 2019.
Earnings Webcast
Vistra will host a webcast today, Feb. 28, 2020, 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 impacts, 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
Meranda Cohn
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, Fortune 350 energy 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 retail markets in the U.S. and markets in Canada and Japan, as well. Serving nearly 5 million residential, commercial, and industrial retail customers with electricity and gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 renewable energy plans. The company is also the largest competitive power generator in the U.S. with a capacity of approximately 39,000 megawatts powered by a diverse portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world - a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders. Learn more about our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.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 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," "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 and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 2019 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
(Unaudited) (Millions of Dollars, Except Per Share Amounts)
Year Ended December 31,
2019 2018 2017
---
Operating revenues $
11,809 $
9,144 $
5,430
Fuel, purchased power
costs and delivery
fees (5,742) (5,036) (2,935)
Operating costs (1,530) (1,297) (973)
Depreciation and
amortization (1,640) (1,394) (699)
Selling, general and
administrative
expenses (904) (926) (600)
Impairment of long-
lived assets - (25)
Operating income 1,993 491 198
Other income 56 47 37
Other deductions (15) (5) (5)
Interest expense and
related charges (797) (572) (193)
Impacts of Tax
Receivable Agreement (37) (79) 213
Equity in earnings of
unconsolidated
investment 16 17
Income before income
taxes 1,216 (101) 250
Income tax expense (290) 45 (504)
Net income $
926 $
(56) $
(254)
Net loss attributable
to noncontrolling
interest 2 2
Net income
attributable to
Vistra Energy $
928 $
(54) $
(254)
VISTRA ENERGY CORP.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited) (Millions of Dollars)
Year Ended December 31,
2019 2018 2017
---
Cash flows - operating activities:
Net income $
926 $
(56) $
(254)
Adjustments to reconcile net income to cash provided by
operating activities:
Depreciation and amortization 1,876 1,533 835
Deferred income tax expense, net 281 (62) 418
Unrealized net (gain) loss from mark-to-
market valuations of commodities (696) 380 145
Unrealized net (gain) loss from mark-to-
market valuations of interest rate swaps 220 5 (29)
Impairment of long-lived assets - 25
Impacts of Tax Receivable Agreement 37 79 (213)
Change in asset retirement obligation
liability (48) (27) 112
Asset retirement obligation accretion expense 53 50 60
Bad debt expense 82 55 39
Stock-based compensation 47 73
Other, net (12) 37 30
Changes in operating assets and liabilities:
Accounts receivable - trade (88) (207) 7
Inventories (44) 61 22
Accounts payable - trade (221) 90 (30)
Commodity and other derivative contractual
assets and liabilities 98 (80) (1)
Margin deposits, net 170 (221) 146
Accrued interest 80 (105) (10)
Accrued taxes (4) (64) 33
Accrued employee incentive 1 40 (24)
Alcoa contract settlement - 238
Tax Receivable Agreement payment (2) (16) (26)
ARO settlement (121) (100) (35)
Major plant outage deferral (19) (22) (66)
Other - net assets (22) 73 4
Other - net liabilities 142 (45) (40)
Cash provided by operating activities 2,736 1,471 1,386
Cash flows - investing activities:
Capital expenditures, including LTSA
prepayments (520) (378) (114)
Nuclear fuel purchases (89) (118) (62)
Development and growth expenditures (104) (34) (190)
Ambit acquisition (506)
Crius acquisition (374)
Cash acquired in the Merger - 445
Odessa acquisition - (355)
Proceeds from sales of nuclear
decommissioning trust fund securities 431 252 252
Investments in nuclear decommissioning trust
fund securities (453) (274) (272)
Proceeds from sale of environmental
allowances 197 1 1
Purchases of environmental allowances (322) (5) (3)
Other, net 23 10 16
Cash used in investing activities (1,717) (101) (727)
Cash flows - financing activities:
Issuances of long-term debt 6,507 1,000
Repayments/repurchases of debt (7,109) (3,075) (191)
Net borrowings under accounts receivable
securitization program 111 339
Borrowings under Revolving Credit Facility 650
Repayments under Revolving Credit Facility (300)
Debt tender offer and other financing fees (203) (236) (8)
Stock repurchase (656) (763)
Dividends paid to stockholders (243)
Other, net 6 12 (2)
Cash used in financing activities (1,237) (2,723) (201)
Net change in cash, cash equivalents and
restricted cash (218) (1,353) 458
Cash, cash equivalents and restricted cash -
beginning balance 693 2,046 1,588
Cash, cash equivalents and restricted cash -
ending balance $
475 $
693 $
2,046
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE MONTHS ENDED DECEMBER 31, 2019
(Unaudited) (Millions of Dollars)
Retail ERCOT PJM NY/NE MISO Eliminations Ongoing Asset Vistra
/ Corp and Operations Closure Energy
Other Consolidated Consolidated
---
Net income (loss) $
132 $
22 $
121 $
66 $
31 $
(132) $
240 $
(7) $
233
Income tax expense 20 20 20
Interest expense and
related charges (a) 5 (2) 2 1 (1) 72 77 77
Depreciation and
amortization (b) 88 143 137 53 7 18 446 446
EBITDA before
Adjustments 225 163 260 120 37 (22) 783 (7) 776
Unrealized net (gain)
or loss resulting
from hedging
transactions 87 25 (88) (76) (23) 4 (71) (71)
Generation plant
retirement expenses 3 3
Fresh start /purchase
accounting impacts 5 (3) 1 2 (1) 4 (1) 3
Impacts of Tax
Receivable Agreement 12 12 12
Non-cash compensation
expenses 12 12 12
Transition and merger
expenses 25 2 2 (4) 8 33 33
Other, net 1 2 (3) 2 2 1 3
Adjusted EBITDA $
343 $
187 $
171 $
49 $
12 $
13 $
775 $
(4) $
771
___________
(a) Includes $55 million of
unrealized mark-to-market
net gains on interest rate
swaps.
(b) Includes nuclear fuel
amortization of $20 million in
the ERCOT segment.
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA
FOR THE YEAR ENDED DECEMBER 31, 2019
(Unaudited) (Millions of Dollars)
Retail ERCOT PJM NY/NE MISO Eliminations Ongoing Asset Vistra
/ Corp and Operations Closure Energy
Other Consolidated Consolidated
---
Net income (loss) $
134 $
1,368 $
405 $
188 $
55 $
(1,115) $
1,035 $
(109) $
926
Income tax expense 290 290 290
Interest expense and
related charges (a) 21 (8) 10 3 4 767 797 797
Depreciation and
amortization (b) 292 581 537 208 19 76 1,713 1,713
EBITDA before
Adjustments 447 1,941 952 399 78 18 3,835 (109) 3,726
Unrealized net (gain)
or loss resulting
from hedging
transactions 278 (591) (203) (109) (30) (41) (696) (696)
Generation plant
retirement expenses 12 12 42 54
Fresh start /purchase
accounting impacts 23 (3) (2) 4 15 (4) 33 (3) 30
Impacts of Tax
Receivable Agreement 37 37 37
Non-cash compensation
expenses 48 48 48
Transition and merger
expenses 49 11 6 4 21 24 115 115
Other, net 10 12 7 9 7 (36) 9 2 11
Adjusted EBITDA $
807 $
1,370 $
760 $
307 $
103 $
46 $
3,393 $
(68) $
3,325
___________
(a) Includes $220 million of
unrealized mark-to-market
net losses on interest rate
swaps.
(b) Includes nuclear fuel
amortization of $73 million in
the ERCOT segment.
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE MONTHS ENDED DECEMBER 31, 2018(1)
(Unaudited) (Millions of Dollars)
Retail ERCOT PJM NY/NE MISO Eliminations Ongoing Asset Consolidated
/ Corp and Operations Closure
Other Consolidated
Net income (loss) $
315 $
(291) $
7 $
37 $
8 $
(242) $
(166) $
(20) $
(186)
Income tax benefit (76) (76) (76)
Interest expense and
related charges (a) 4 (2) 3 1 275 281 281
Depreciation and
amortization (b) 81 139 147 49 3 25 444 444
EBITDA before
Adjustments 400 (154) 157 87 11 (18) 483 (20) 463
Unrealized net (gain)
loss resulting from
hedging transactions (168) 291 22 18 (9) 19 173 173
Fresh start accounting
impacts 14 (2) 1 2 15 15
Impacts of Tax
Receivable Agreement 14 14 14
Non-cash compensation
expenses 11 11 11
Transition and merger
expenses 1 2 7 1 4 13 28 28
Other, net 3 4 8 2 2 (21) (2) (2)
Adjusted EBITDA,
including Odessa
earnout buybacks $
250 $
141 $
195 $
108 $
10 $
18 $
722 $
(20) $
702
Odessa earnout buybacks (2) (2) (2)
Adjusted EBITDA $
250 $
139 $
195 $
108 $
10 $
18 $
720 $
(20) $
700
____________
1 2018 results for four MISO
assets retired in late 2019
were recast from the MISO
segment to the Asset Closure
segment.
(a) Includes $128 million of
unrealized mark-to-market
net losses on interest rate
swaps.
(b) Includes nuclear fuel
amortization of $18 million in
the ERCOT segment.
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA
FOR THE YEAR ENDED DECEMBER 31, 2018(1)
(Unaudited) (Millions of Dollars)
Retail ERCOT PJM NY/NE MISO Eliminations Ongoing Asset Consolidated
/ Corp and Operations Closure
Other Consolidated
Net income (loss) $
712 $
(55) $
100 $
79 $
48 $
(878) $
6 $
(62) $
(56)
Income tax benefit (45) (45) (45)
Interest expense and
related 7 12 8 2 1 542 572 572
charges (a)
Depreciation and
amortization (b) 318 494 413 152 9 86 1,472 1,472
EBITDA before
Adjustments 1,037 451 521 233 58 (295) 2,005 (62) 1,943
Unrealized net (gain)
loss resulting from
hedging transactions (206) 498 42 40 (9) 15 380 380
Fresh start accounting
impacts 26 (6) (1) 9 12 40 1 41
Impacts of Tax
Receivable Agreement 79 79 79
Non-cash compensation
expenses 73 73 73
Transition and merger
expenses 1 9 14 2 9 196 231 2 233
Other, net (13) (2) 16 9 10 (23) (3) (4) (7)
Adjusted EBITDA,
including Odessa
earnout buybacks 845 950 592 293 80 45 2,805 (63) 2,742
Odessa earnout buybacks 18 18 18
Adjusted EBITDA $
845 $
968 $
592 $
293 $
80 $
45 $
2,823 $
(63) $
2,760
____________
1 2018 results for four MISO
assets retired in late 2019
were recast from the MISO
segment to the Asset Closure
segment.
(a) Includes $5 million of
unrealized mark-to-market
net losses on interest rate
swaps.
(b) Includes nuclear fuel
amortization of $78 million in
the ERCOT segment.
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - ADJUSTED FREE CASH FLOW
FOR YEAR ENDED DECEMBER 31, 2019
(Unaudited) (Millions of Dollars)
Ongoing Asset Vistra Energy
Operations Closure Consolidated
---
Adjusted EBITDA $
3,393 $
(68) $
3,325
Interest paid, net (a) (500) (500)
Taxes received net of
payments 76 76
Severance (7) (10) (17)
Working capital and
margin deposits 35 (17) 18
Reclamation and
remediation (15) (101) (116)
Transition and merger
expense (116) (116)
Changes in other
operating assets and
liabilities 60 6 66
Cash provided by
operating activities $
2,926 $
(190) $
2,736
Capital expenditures
including LTSA
prepayments and
nuclear fuel
purchases (b) (609) (609)
Development and growth
expenditures (104) (104)
Ambit and Crius
acquisitions (880) (880)
Purchases and sales of
environmental credits
and allowances, net (125) (125)
Other net investing
activities (c) (4) 5 1
Free cash flow $
1,204 $
(185) $
1,019
Working capital and
margin deposits (35) 16 (19)
Development and growth
expenditures 104 104
Severance 7 10 17
Ambit and Crius
acquisitions 880 880
Purchases and sales of
environmental credits
and allowances, net 125 125
Transition and merger
expense 116 116
Transition capital
expenditures 36 36
Adjusted free cash
flow before growth $
2,437 $
(159) $
2,278
(a)
Net of interest received.
(b) Includes $122 million LTSA prepaid
capital expenditures.
(c) Includes investments in and proceeds from
the nuclear decommissioning trust fund
and other net investing cash flows.
VISTRA ENERGY CORP.
NON-GAAP RECONCILIATIONS - 2020 GUIDANCE
(Unaudited) (Millions of Dollars)
Ongoing Operations Asset Closure Vistra Energy
Consolidated
Low High Low High Low High
---
Net Income (loss) $
849 $
1,081 $
(95) $
(75) $
754 $
1,006
Income tax expense 252 320 252 320
Interest expense and
related charges (a) 463 463 463 463
Depreciation and
amortization (b) 1,600 1,600 1,600 1,600
EBITDA before Adjustments $
3,164 $
3,464 $
(95) $
(75) $
3,069 $
3,389
Unrealized net
(gain)/loss resulting
from hedging
transactions (29) (29) (29) (29)
Impacts of Tax Receivable
Agreement 69 69 69 69
Non-cash compensation
expenses 44 44 44 44
Transition and merger
expenses 35 35 35 35
Other, net 2 2 2 2
Adjusted EBITDA guidance $
3,285 $
3,585 $
(95) $
(75) $
3,190 $
3,510
Interest paid, net (543) (543) (543) (543)
Tax (paid)/received (c) 153 1 153 153 153
Tax receivable agreement
payments (3) (3) (3) (3)
Working capital and
margin deposits 2 2 2 2
Reclamation and
remediation (60) (60) (126) (126) (186) (186)
Other changes in other
operating assets and
liabilities (80) (80) 31 31 (49) (49)
Cash provided by
operating activities $
2,754 $
3,054 $
(190) $
(170) $
2,564 $
2,884
Capital expenditures
including nuclear fuel
purchases and LTSA
Prepayments (613) (613) (613) (613)
Solar and Moss Landing
development and other
growth expenditures (315) (315) (315) (315)
(Purchase)/sale of
environmental credits
and allowances (39) (39) (39) (39)
Other net investing
activities (20) (20) (20) (20)
Free cash flow $
1,767 $
2,067 $
(190) $
(170) $
1,577 $
1,897
Working capital and
margin deposits (2) (2) (2) (2)
Moss Landing development
and other growth
expenditures 315 315 315 315
Purchase/(sale) of
environmental credits
and allowances 39 39 39 39
Transition and merger
expenses 38 38 38 38
Transition capital
expenditures 3 3 3 3
Adjusted free cash flow
before growth guidance $
2,160 $
2,460 $
(190) $
(170) $
1,970 $
2,290
____________
(a) Includes unrealized gain on
interest rate swaps of $21
million.
(b) Includes nuclear fuel
amortization of $74 million.
(c) Includes state tax payments.
Does not reflect the early
receipt of $93 million of
alternative minimum tax credit
refunds in 2019.
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SOURCE Vistra Energy Corp.
