Earnings Release Highlights
- Recorded third quarter 2023 Net Income of $502 million and Net Income from Ongoing
Operations1 of $519
million and achieved Ongoing Operations Adjusted
EBITDA1 of $1,613
million.
- Raised and narrowed 2023 Ongoing Operations Adjusted EBITDA and
Ongoing Operations Adjusted FCFbG1 guidance ranges to
$3.95 billion to $4.10 billion and $2.35
billion to $2.50 billion,
respectively.
- Initiated Vistra standalone 2024 Ongoing Operations Adjusted
EBITDA and Ongoing Operations Adjusted FCFbG1 guidance
ranges of $3.7 billion to
$4.1 billion and $1.9 billion to $2.3
billion, respectively.2
- Vistra's reliable generation fleet achieved commercial
availability3 of 98% on average throughout the summer in
ERCOT's record-breaking summer heat; the flexibility of Vistra's
diverse fleet throughout all markets drove higher earnings for the
company.
- TXU Energy recognized as a 5-star retailer by the Public
Utility Commission of Texas for 12
straight months; strong counts and margin performance, even in the
higher-priced summer months, highlight the stability and strength
of the brand.
- Continued steady execution of the capital allocation plan with
$1 billion of share repurchases
executed year-to-date 2023, and a fourth quarter 2023 dividend of
$0.213 per share of common stock
declared.
IRVING,
Texas, Nov. 7, 2023 /PRNewswire/ -- Vistra Corp.
(NYSE: VST) today reported its third quarter 2023 financial results
and other highlights.
"Vistra delivered $1,613 million
in Ongoing Operations Adjusted EBITDA in the third quarter of 2023,
underscoring our core competencies in generation, retail, and
commercial activities in a variety of weather and load conditions
experienced this past quarter across the markets we serve," said
Jim Burke, president and CEO of
Vistra. "Texas experienced a
record-breaking summer as it relates to both weather and demand.
The state saw the hottest third quarter on record. Grid conditions
at times were tight, and ERCOT set new peak demand records on 10
different occasions throughout the summer, setting a new all-time
record for peak load of over 85,000 megawatts in August. Despite
the extreme conditions, our generation team rose to the challenge.
With an unyielding focus on reliability, the team delivered 2.5
terawatt hours more than any other quarter's generation output in
at least the past 10 years, going above and beyond to help keep the
lights on, and much-needed air conditioning flowing, for the people
of Texas."
Burke continued, "Our integrated generation, retail, and
commercial teams worked collaboratively to provide our retail
customers a stable and affordable product while dynamically
managing our own assets and financial positions in a highly
volatile price environment that created significant value for our
shareholders. Outside of Texas,
the summer weather was milder, but our dynamic position management
and retail customer count growth quarter-over-quarter allowed us to
achieve strong results in the markets we serve outside of ERCOT as
well. We are exceedingly proud of the hard work of the women and
men of Vistra in their commitment to serving our customers, the
communities in which we operate and, of course, our
shareholders."
Burke concluded, "I would also like to highlight our continued
steady delivery on our capital allocation program, buying back
approximately 26% of our shares and collectively returning
$3.785 billion to our shareholders
since the program was originally announced in the fourth quarter of
2021. We remain focused on advancing our four strategic priorities
of producing strong, stable earnings through our integrated
business, returning capital to our shareholders, maintaining our
balance sheet strength, and supporting the clean-energy transition
with, among other projects, the transformative acquisition of
Energy Harbor we are targeting and working to close in the fourth
quarter. We look forward to concluding 2023 on a strong note and
beginning our execution against our 2024 financial and performance
targets."
Summary of Financial
Results for the Third Quarter Ended September 30,
20234
|
(Unaudited)
(Millions of Dollars)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
(loss)
|
$
502
|
|
$
678
|
|
$
1,676
|
|
$
(962)
|
Ongoing operations net
income (loss)
|
$
519
|
|
$
662
|
|
$
1,653
|
|
$
(808)
|
Ongoing operations
Adjusted EBITDA
|
$
1,613
|
|
$
1,040
|
|
$
3,174
|
|
$
2,335
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment
|
|
|
|
|
|
|
|
Retail
|
$
173
|
|
$
(2)
|
|
$
642
|
|
$
564
|
Texas
|
$
950
|
|
$
873
|
|
$
1,540
|
|
$
1,221
|
East
|
$
315
|
|
$
138
|
|
$
526
|
|
$
450
|
West
|
$
87
|
|
$
45
|
|
$
196
|
|
$
110
|
Sunset
|
$
102
|
|
$
(6)
|
|
$
305
|
|
$
16
|
Corporate and
Other
|
$
(14)
|
|
$
(8)
|
|
$
(35)
|
|
$
(26)
|
Asset
Closure
|
$
(24)
|
|
$
(59)
|
|
$
(6)
|
|
$
(77)
|
For the three months ended Sept. 30,
2023, Vistra reported Net Income of $502 million, Net Income from Ongoing Operations
of $519 million, and Ongoing Operations Adjusted EBITDA of
$1,613 million. Vistra's Net Income
for the third quarter 2023 was a reduction of $176 million from the third quarter 2022 Net
Income, driven primarily by higher unrealized hedging losses in the
quarter, offset by strong operating performances in the quarter by
each of our generation, retail and commercial teams. Ongoing
Operations Adjusted EBITDA for the third quarter 2023 was
$573 million higher than the third
quarter 2022, driven primarily by higher energy margins
achieved through strong operating results and the comprehensive
hedging strategy.
Guidance2
($ in
millions)
|
Increased and
Narrowed 2023 Guidance
Ranges
|
Initiated
2024 Guidance Ranges
|
Ongoing Operations
Adjusted EBITDA
|
$3,950 -
$4,100
|
$3,700 -
$4,100
|
Ongoing Operations
Adjusted FCFbG
|
$2,350 -
$2,500
|
$1,900 -
$2,300
|
The $3,900 million midpoint of
Vistra's 2024 Ongoing Operations Adjusted EBITDA range is
meaningfully higher than the range of midpoint opportunities the
company had estimated for 2024 in prior quarters.
As of Sept. 30, 2023, Vistra had
hedged approximately 90% of its expected generation volumes on
average for the balance of 2023 through 2025, with the balance of
2023 hedged at approximately 99% and 2024 hedged at approximately
97%. Vistra's hedging program, as well as forward price curves as
of Nov. 2, 2023, support the
company's initiated 2024 guidance ranges and further provides
confidence that Vistra has increased its earning potential to the
previously announced Ongoing Operations Adjusted EBITDA midpoint
opportunity for 2025. Vistra is currently anticipating the
2025 midpoint opportunity to be in the range of $3,800 million to $4,000
million for Ongoing Operations Adjusted EBITDA, versus the
prior estimated range of $3,700
million to $3,800 million
(exclusive of any future EBITDA contribution from Energy
Harbor).5
Share Repurchase Program
As of Nov. 2, 2023:
- Vistra had executed ~$3.26
billion in share repurchases since November 2021.
- Vistra had ~$1 billion remaining
under its $4.25 billion share
repurchase authorization, which is expected to be fully utilized by
year-end 2024.
- Vistra had ~357.5 million shares outstanding, representing a
~26% reduction of the amount of the shares outstanding on
Nov. 2, 2021.
Clean Energy Transition
Vistra is focused on reliability, affordability and
sustainability of electricity in the markets in which we operate.
With this in mind, Vistra continues to grow its fleet of lower
carbon resources, advancing these interests through cost-effective,
strategic investments in solar and battery storage developments and
through the anticipated acquisition of Energy Harbor.
On Nov. 6, 2023, Vistra published
its 2023 Climate Report in accordance with the Task Force on
Climate-related Financial Disclosures (TCFD) framework. The
TCFD framework provides a set of recommended climate-related
disclosures and guidelines that companies may use to better inform
investors, customers, and others. We care about our stakeholders
and are proud to share with them how the company is well-prepared
to manage climate-related risks as well as capitalize on potential
opportunities.
In March 2023, Vistra announced
the execution of a definitive agreement to acquire Energy Harbor,
which will add more than 4,000 MW of nuclear generation to its
portfolio along with approximately 1 million additional retail
customers. Together with Comanche Peak, this acquisition will bring
Vistra's nuclear capacity to more than 6,400 MW at the
transaction's closing. Further, in 2022, Comanche Peak applied to
extend its licenses through 2050 and 2053 for the two-unit
facility, an additional 20 years beyond the original licenses. This
process is advancing as expected.
The Inflation Reduction Act is anticipated to provide the
opportunity to realize material benefits to Vistra with respect to
our renewables and energy storage projects, as well as provide
strong price support via the nuclear production tax credit for our
nuclear facilities, including those being acquired through the
Energy Harbor transaction.
Vistra expects to start construction on its three largest
combined solar and energy storage projects, part of the Illinois
Coal to Solar and Energy Storage Initiative, in the spring of 2024.
Vistra intends to remain strategic and disciplined with respect to
the timing of investments in renewables and battery storage
projects.
Liquidity
As of Sept. 30, 2023, Vistra had
total available liquidity of approximately $4,420 million,
including cash and cash equivalents of $3,170 million, $849
million of availability under its corporate revolving credit
facility, and $401 million of
availability under its commodity-linked revolving credit facility.
Available liquidity excludes approximately $750 million and $125
million of undrawn available borrowing capacity as of
Sept. 30, 2023, under Vistra's
accounts receivable and repurchase facility financing arrangements,
respectively.
Available capacity under the commodity-linked revolving credit
facility reflects the borrowing base as of Sept. 30, 2023, of $401
million and no cash borrowings. The reduction in the
borrowing base as compared to the $1.35
billion facility limit was due, in part, to the expiration
of certain deemed 2023 hedges and would have increased in size in a
rising commodity price environment in accordance with the terms of
the Commodity-Linked Facility. The Commodity-Linked Facility was
amended in October 2023, increasing
the aggregate commitments to $1.575
billion and extending the term to October 2024. As part of the amendment, the
portfolio of deemed hedges was updated, leading to an increase in
the borrowing base on such date to $1.233
billion.
Earnings Webcast
Vistra will host a webcast today, Nov. 7,
2023, beginning at 9 a.m. ET
(8 a.m. CT) to discuss these results
and related matters. The live webcast and the accompanying slides
that will be discussed on the call can be accessed via Vistra's
website at www.vistracorp.com under "Investor Relations" and then
"Events & Presentations." Participants can also listen by phone
by registering here prior to the start time of the call to receive
a conference call dial-in number. A replay of the webcast will be
available on Vistra's website for one year following the live
event.
About Non-GAAP Financial Measures and Items Affecting
Comparability
"Adjusted EBITDA" (EBITDA as adjusted for unrealized gains or
losses from hedging activities, tax receivable agreement impacts,
reorganization items, and certain other items described from time
to time in Vistra's earnings releases), "Adjusted Free Cash Flow
before Growth" (or "Adjusted FCFbG") (cash from operating
activities excluding changes in margin deposits and working capital
and adjusted for capital expenditures (including capital
expenditures for growth investments), other net investment
activities, and other items described from time to time in Vistra's
earnings releases), "Ongoing Operations Adjusted EBITDA" (adjusted
EBITDA less adjusted EBITDA from Asset Closure segment), "Net
Income (Loss) from Ongoing Operations" (net income less net income
from Asset Closure segment), and "Ongoing Operations Adjusted Free
Cash Flow before Growth" or "Ongoing Operations Adjusted FCFbG"
(adjusted free cash flow before growth less cash flow from
operating activities from Asset Closure segment before growth) are
"non-GAAP financial measures." A non-GAAP financial measure is a
numerical measure of financial performance that excludes or
includes amounts so as to be different than the most directly
comparable measure calculated and presented in accordance with GAAP
in Vistra's consolidated statements of operations, comprehensive
income, changes in stockholders' equity and cash flows. Non-GAAP
financial measures should not be considered in isolation or as a
substitute for the most directly comparable GAAP measures. Vistra's
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies.
Vistra uses Adjusted EBITDA as a measure of performance and
believes that analysis of its business by external users is
enhanced by visibility to both Net Income prepared in accordance
with GAAP and Adjusted EBITDA. Vistra uses Adjusted Free Cash Flow
before Growth as a measure of liquidity and believes that analysis
of its ability to service its cash obligations is supported by
disclosure of both cash provided by (used in) operating activities
prepared in accordance with GAAP as well as Adjusted Free Cash Flow
before Growth. Vistra uses Ongoing Operations Adjusted EBITDA as a
measure of performance and Ongoing Operations Adjusted Free Cash
Flow before Growth as a measure of liquidity, and Vistra's
management and board of directors have found it informative to view
the Asset Closure segment as separate and distinct from Vistra's
ongoing operations. Vistra uses Net Income (Loss) from Ongoing
Operations as a non-GAAP measure that is most comparable to the
GAAP measure Net Income in order to illustrate the company's Net
Income excluding the effects of the Asset Closure segment, as well
as a measure to compare to Ongoing Operations Adjusted EBITDA. The
schedules attached to this earnings release reconcile the non-GAAP
financial measures to the most directly comparable financial
measures calculated and presented in accordance with U.S. GAAP.
1 Ongoing Operations
excludes the Asset Closure segment. Net Income (Loss) from Ongoing
Operations, Ongoing Operations Adjusted EBITDA, and Ongoing
Operations Adjusted Free Cash Flow before Growth are non-GAAP
financial measures. Any reference to "Ongoing Operations Adjusted
FCFbG" is a reference to Ongoing Operations Adjusted Free Cash Flow
before Growth. See the "Non-GAAP Reconciliation" tables for further
detail. Total segment information may not tie due to
rounding.
|
|
2 Initiated 2024
guidance ranges are for Vistra standalone, without any estimated
impacts of Energy Harbor performance.
|
|
3 Commercial
availability statistic here defined to include fossil generation in
our ERCOT operating segments, excluding the impacts from our
prolonged 400MW Lake Hubbard Unit 1 outage beginning in June
due to a transformer replacement. While our nuclear facility,
Comanche Peak, does not report a commercial availability statistic,
it achieved a corresponding 98% capacity factor.
|
|
4 Upon movement of the
Edwards Power Plant to the Asset Closure segment effective Jan. 1,
2023, prior year results were retrospectively adjusted for
comparative purposes.
|
|
5 Reflects the
potential midpoint opportunity range of Ongoing Operations Adjusted
EBITDA for 2025 based on market curves as of Nov. 2, 2023; prior
estimated range as disclosed on first quarter 2023 earnings call;
does not include the incremental Adj. EBITDA contribution expected
from the Energy Harbor acquisition; this range of estimated
opportunities is not intended to be guidance.
|
About Vistra
Vistra (NYSE: VST) is a leading, Fortune 500 integrated retail
electricity and power generation company based in Irving, Texas, providing essential resources
for customers, commerce, and communities. With operations in 20
states and the District of
Columbia, Vistra combines an innovative, customer-centric
approach to retail with safe, reliable, and efficient power
generation. Learn more at https://www.vistracorp.com.
Cautionary Note Regarding Forward-Looking
Statements
The information presented herein includes
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements, which are based on current expectations, estimates and
projections about the industry and markets in which Vistra Corp.
("Vistra") operates and beliefs of and assumptions made by Vistra's
management, involve risks and uncertainties, which are difficult to
predict and are not guarantees of future performance, that could
significantly affect the financial results of Vistra. All
statements, other than statements of historical facts, that are
presented herein, or in response to questions or otherwise, that
address activities, events or developments that may occur in the
future, including such matters as activities related to our
financial or operational projections, financial condition and cash
flows, projected synergy, value lever and net debt targets, capital
allocation, capital expenditures, liquidity, projected Adjusted
EBITDA to free cash flow conversion rate, dividend policy, business
strategy, competitive strengths, goals, future acquisitions or
dispositions, development or operation of power generation assets,
market and industry developments and the growth of our businesses
and operations (often, but not always, through the use of words or
phrases, or the negative variations of those words or other
comparable words of a future or forward-looking nature, including,
but not limited to: "intends," "plans," "will likely," "unlikely,"
"believe," "confident", "expect," "seek," "anticipate," "estimate,"
"continue," "will," "shall," "should," "could," "may," "might,"
"predict," "project," "forecast," "target," "potential," "goal,"
"objective," "guidance" and "outlook"), are forward-looking
statements. Readers are cautioned not to place undue reliance on
forward-looking statements. Although Vistra believes that in making
any such forward-looking statement, Vistra's expectations are based
on reasonable assumptions, any such forward-looking statement
involves uncertainties and risks that could cause results to differ
materially from those projected in or implied by any such
forward-looking statement, including, but not limited to: (i)
adverse changes in general economic or market conditions (including
changes in interest rates) or changes in political conditions or
federal or state laws and regulations; (ii) the ability of Vistra
to execute upon its contemplated strategic, capital allocation,
performance, and cost-saving initiatives, including the acquisition
of Energy Harbor, and to successfully integrate acquired
businesses; (iii) actions by credit ratings agencies; (iv) the
severity, magnitude and duration of extreme weather events,
contingencies and uncertainties relating thereto, most of which are
difficult to predict and many of which are beyond our control, and
the resulting effects on our results of operations, financial
condition and cash flows; and (v) those additional risks and
factors discussed in reports filed with the Securities and Exchange
Commission by Vistra from time to time, including the uncertainties
and risks discussed in the sections entitled "Risk Factors" and
"Forward-Looking Statements" in Vistra's annual report on Form 10-K
for the year ended December 31, 2022
and any subsequently filed quarterly reports on Form 10-Q.
Any forward-looking statement speaks only at the date on which
it is made, and except as may be required by law, Vistra will not
undertake any obligation to update any forward-looking statement to
reflect events or circumstances after the date on which it is made
or to reflect the occurrence of unanticipated events. New factors
emerge from time to time, and it is not possible to predict all of
them; nor can Vistra assess the impact of each such factor or the
extent to which any factor, or combination of factors, may cause
results to differ materially from those contained in any
forward-looking statement.
VISTRA
CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Millions of Dollars)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
revenues
|
$
4,086
|
|
$
5,146
|
|
$
11,701
|
|
$
9,859
|
Fuel, purchased power
costs and delivery fees
|
(2,109)
|
|
(3,139)
|
|
(5,754)
|
|
(7,580)
|
Operating
costs
|
(411)
|
|
(400)
|
|
(1,277)
|
|
(1,250)
|
Depreciation and
amortization
|
(375)
|
|
(390)
|
|
(1,109)
|
|
(1,214)
|
Selling, general and
administrative expenses
|
(357)
|
|
(323)
|
|
(953)
|
|
(894)
|
Impairment of
long-lived assets
|
—
|
|
—
|
|
(49)
|
|
—
|
Operating income
(loss)
|
834
|
|
894
|
|
2,559
|
|
(1,079)
|
Other income
|
32
|
|
10
|
|
174
|
|
88
|
Other
deductions
|
(3)
|
|
(5)
|
|
(9)
|
|
(18)
|
Interest expense and
related charges
|
(143)
|
|
(71)
|
|
(450)
|
|
(186)
|
Impacts of Tax
Receivable Agreement
|
(49)
|
|
86
|
|
(128)
|
|
(29)
|
Net income (loss)
before income taxes
|
671
|
|
914
|
|
2,146
|
|
(1,224)
|
Income tax (expense)
benefit
|
(169)
|
|
(236)
|
|
(470)
|
|
262
|
Net income
(loss)
|
$
502
|
|
$
678
|
|
$
1,676
|
|
$
(962)
|
Net (income) loss
attributable to noncontrolling
interest
|
—
|
|
(10)
|
|
1
|
|
(19)
|
Net income (loss)
attributable to Vistra
|
$
502
|
|
$
668
|
|
$
1,677
|
|
$
(981)
|
Cumulative dividends
attributable to preferred stock
|
(37)
|
|
(37)
|
|
(112)
|
|
(112)
|
Net income (loss)
attributable to Vistra common
stock
|
$
465
|
|
$
631
|
|
$
1,565
|
|
$
(1,093)
|
VISTRA
CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions of Dollars)
|
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
Cash flows — operating
activities:
|
|
|
|
Net income
(loss)
|
$
1,676
|
|
$
(962)
|
Adjustments to
reconcile net income (loss) to cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,442
|
|
1,575
|
Deferred income tax
expense (benefit), net
|
437
|
|
(298)
|
Gain on sale of
land
|
(95)
|
|
(12)
|
Impairment of
long-lived and other assets
|
49
|
|
—
|
Unrealized net (gain)
loss from mark-to-market valuations of commodities
|
(855)
|
|
2,027
|
Unrealized net gain
from mark-to-market valuations of interest rate swaps
|
(65)
|
|
(261)
|
Asset retirement
obligation accretion expense
|
26
|
|
26
|
Impacts of Tax
Receivable Agreement
|
128
|
|
29
|
Stock-based
compensation
|
63
|
|
48
|
Bad debt
expense
|
131
|
|
136
|
Other, net
|
39
|
|
12
|
Changes in operating
assets and liabilities:
|
|
|
|
Margin deposits,
net
|
2,271
|
|
(1,805)
|
Uplift securitization
proceeds receivable from ERCOT
|
—
|
|
544
|
Accrued
interest
|
(47)
|
|
(31)
|
Accrued
taxes
|
(38)
|
|
(46)
|
Accrued employee
incentive
|
(23)
|
|
(17)
|
Other operating assets
and liabilities
|
(567)
|
|
(873)
|
Cash provided by
operating activities
|
4,572
|
|
92
|
Cash flows — investing
activities:
|
|
|
|
Capital expenditures,
including nuclear fuel purchases and LTSA prepayments
|
(1,262)
|
|
(909)
|
Proceeds from sales of
nuclear decommissioning trust fund securities
|
478
|
|
428
|
Investments in nuclear
decommissioning trust fund securities
|
(495)
|
|
(446)
|
Proceeds from sales of
environmental allowances
|
59
|
|
358
|
Purchases of
environmental allowances
|
(277)
|
|
(343)
|
Insurance
proceeds
|
14
|
|
15
|
Proceeds from sale of
assets
|
111
|
|
21
|
Other, net
|
(10)
|
|
(10)
|
Cash used in investing
activities
|
(1,382)
|
|
(886)
|
Cash flows — financing
activities:
|
|
|
|
Issuances of long-term
debt
|
1,750
|
|
1,498
|
Repayments/repurchases
of debt
|
(21)
|
|
(232)
|
Net
(repayments)/borrowings under accounts receivable
financing
|
(425)
|
|
625
|
Borrowings under
Revolving Credit Facility
|
100
|
|
1,500
|
Repayments under
Revolving Credit Facility
|
(350)
|
|
(1,500)
|
Borrowings under
Commodity-Linked Facility
|
—
|
|
2,750
|
Repayments under
Commodity-Linked Facility
|
(400)
|
|
(2,750)
|
Share
repurchases
|
(866)
|
|
(1,590)
|
Dividends paid to
common stockholders
|
(228)
|
|
(227)
|
Dividends paid to
preferred stockholders
|
(75)
|
|
(76)
|
Debt issuance
costs
|
(29)
|
|
(29)
|
Other, net
|
54
|
|
34
|
Cash (used in)
provided by financing activities
|
(490)
|
|
3
|
Net change in cash,
cash equivalents and restricted cash
|
2,700
|
|
(791)
|
Cash, cash equivalents
and restricted cash — beginning balance
|
525
|
|
1,359
|
Cash, cash equivalents
and restricted cash — ending balance
|
$
3,225
|
|
$
568
|
VISTRA
CORP. NON-GAAP RECONCILIATIONS - ADJUSTED
EBITDA FOR THE THREE MONTHS ENDED SEPTEMBER 30,
2023 (Unaudited) (Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
Net income
(loss)
|
$ 245
|
|
$ 438
|
|
$ 29
|
|
$ 264
|
|
$ (44)
|
|
$
(413)
|
|
$
519
|
|
$ (17)
|
|
$
502
|
Income tax
expense
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
169
|
|
169
|
|
—
|
|
169
|
Interest expense
and
related charges (a)
|
2
|
|
(5)
|
|
—
|
|
—
|
|
—
|
|
145
|
|
142
|
|
1
|
|
143
|
Depreciation and
amortization (b)
|
26
|
|
158
|
|
161
|
|
22
|
|
16
|
|
18
|
|
401
|
|
—
|
|
401
|
EBITDA before
Adjustments
|
273
|
|
591
|
|
190
|
|
286
|
|
(28)
|
|
(81)
|
|
1,231
|
|
(16)
|
|
1,215
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
(97)
|
|
356
|
|
125
|
|
(203)
|
|
110
|
|
—
|
|
291
|
|
(8)
|
|
283
|
Impacts of Tax
Receivable
Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
49
|
|
49
|
|
—
|
|
49
|
Non-cash
compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
21
|
|
21
|
|
—
|
|
21
|
Transition and
merger
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
22
|
|
22
|
|
—
|
|
22
|
PJM capacity
performance default
impacts (c)
|
—
|
|
—
|
|
(3)
|
|
—
|
|
4
|
|
—
|
|
1
|
|
—
|
|
1
|
Winter Storm Uri
impacts (d)
|
(8)
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(7)
|
|
—
|
|
(7)
|
Other, net
|
5
|
|
2
|
|
3
|
|
4
|
|
16
|
|
(25)
|
|
5
|
|
—
|
|
5
|
Adjusted
EBITDA
|
$
173
|
|
$
950
|
|
$
315
|
|
$ 87
|
|
$
102
|
|
$
(14)
|
|
$ 1,613
|
|
$
(24)
|
|
$ 1,589
|
|
|
|
|
|
|
|
(a)
|
Includes $43 million of
unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $26 million in the Texas segment.
|
(c)
|
Represents estimate of
anticipated market participant defaults or settlements on initial
PJM capacity performance penalties due to extreme magnitude of
penalties associated with Winter Storm Elliott.
|
(d)
|
Includes the
application of bill credits to large commercial and industrial
customers that curtailed their usage during Winter Storm
Uri.
|
VISTRA
CORP. NON-GAAP RECONCILIATIONS - ADJUSTED
EBITDA FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2023 (Unaudited) (Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
Net income
(loss)
|
$ 462
|
|
$ 396
|
|
$
1,049
|
|
$ 481
|
|
$ 442
|
|
$ (1,177)
|
|
$
1,653
|
|
$ 23
|
|
$
1,676
|
Income tax
expense
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
469
|
|
470
|
|
—
|
|
470
|
Interest expense
and
related charges (a)
|
19
|
|
(15)
|
|
—
|
|
(8)
|
|
2
|
|
448
|
|
446
|
|
4
|
|
450
|
Depreciation and
amortization (b)
|
78
|
|
458
|
|
488
|
|
56
|
|
45
|
|
52
|
|
1,177
|
|
—
|
|
1,177
|
EBITDA before
Adjustments
|
559
|
|
839
|
|
1,538
|
|
529
|
|
489
|
|
(208)
|
|
3,746
|
|
27
|
|
3,773
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
114
|
|
703
|
|
(1,024)
|
|
(338)
|
|
(278)
|
|
—
|
|
(823)
|
|
(32)
|
|
(855)
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
128
|
|
128
|
|
—
|
|
128
|
Non-cash
compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
63
|
|
63
|
|
—
|
|
63
|
Transition and
merger
expenses
|
(2)
|
|
1
|
|
—
|
|
—
|
|
1
|
|
39
|
|
39
|
|
—
|
|
39
|
Impairment of
long-
lived assets
|
—
|
|
—
|
|
—
|
|
—
|
|
49
|
|
—
|
|
49
|
|
—
|
|
49
|
PJM capacity
performance default
impacts (c)
|
—
|
|
—
|
|
3
|
|
—
|
|
6
|
|
—
|
|
9
|
|
—
|
|
9
|
Winter Storm Uri
impacts (d)
|
(46)
|
|
2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(44)
|
|
—
|
|
(44)
|
Other, net
|
17
|
|
(5)
|
|
9
|
|
5
|
|
38
|
|
(57)
|
|
7
|
|
(1)
|
|
6
|
Adjusted
EBITDA
|
$
642
|
|
$
1,540
|
|
$
526
|
|
$
196
|
|
$
305
|
|
$
(35)
|
|
$ 3,174
|
|
$ (6)
|
|
$ 3,168
|
|
|
|
|
|
|
|
(a)
|
Includes $65 million of
unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $68 million in the Texas segment.
|
(c)
|
Represents estimate of
anticipated market participant defaults or settlements on initial
PJM capacity performance penalties due to extreme magnitude of
penalties associated with Winter Storm Elliott.
|
(d)
|
Includes the
application of bill credits to large commercial and industrial
customers that curtailed their usage during Winter Storm Uri.
We estimate remaining bill credit amounts to be applied in future
periods are for the remainder of 2023 (approximately $6 million),
2024 (approximately $11 million) and 2025 (approximately $25
million).
|
VISTRA
CORP. NON-GAAP RECONCILIATIONS - ADJUSTED
EBITDA FOR THE THREE MONTHS ENDED SEPTEMBER 30,
2022 (Unaudited) (Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
Net income
(loss)
|
$(1,227)
|
|
$
2,156
|
|
$
(119)
|
|
$ 72
|
|
$ 31
|
|
$
(251)
|
|
$
662
|
|
$ 16
|
|
$
678
|
Income tax
expense
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
236
|
|
236
|
|
—
|
|
236
|
Interest expense
and
related charges (a)
|
4
|
|
(9)
|
|
—
|
|
(2)
|
|
1
|
|
76
|
|
70
|
|
1
|
|
71
|
Depreciation and
amortization (b)
|
36
|
|
158
|
|
187
|
|
(4)
|
|
17
|
|
18
|
|
412
|
|
1
|
|
413
|
EBITDA before
Adjustments
|
(1,187)
|
|
2,305
|
|
68
|
|
66
|
|
49
|
|
79
|
|
1,380
|
|
18
|
|
1,398
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
1,203
|
|
(1,436)
|
|
68
|
|
(22)
|
|
(65)
|
|
—
|
|
(252)
|
|
(68)
|
|
(320)
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(86)
|
|
(86)
|
|
—
|
|
(86)
|
Non-cash
compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
14
|
|
14
|
|
—
|
|
14
|
Transition and
merger
expenses
|
(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2)
|
|
—
|
|
(2)
|
Winter Storm Uri
impacts (c)
|
(32)
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(31)
|
|
—
|
|
(31)
|
Other, net
|
16
|
|
3
|
|
2
|
|
1
|
|
10
|
|
(15)
|
|
17
|
|
(9)
|
|
8
|
Adjusted
EBITDA
|
$ (2)
|
|
$
873
|
|
$
138
|
|
$ 45
|
|
$ (6)
|
|
$
(8)
|
|
$ 1,040
|
|
$
(59)
|
|
$
981
|
|
|
|
|
|
|
|
(a)
|
Includes $90 million of
unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $23 million in Texas segment.
|
(c)
|
Adjusted EBITDA impacts
of Winter Storm Uri reflects the application of bill credits to
large commercial and industrial customers that curtailed their
usage during Winter Storm Uri.
|
VISTRA
CORP. NON-GAAP RECONCILIATIONS - ADJUSTED
EBITDA FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2022 (Unaudited) (Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
Net income
(loss)
|
$
2,099
|
|
$
(1,455)
|
|
$
(910)
|
|
$ 36
|
|
$
(525)
|
|
$
(53)
|
|
$
(808)
|
|
$
(154)
|
|
$
(962)
|
Income tax
benefit
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(262)
|
|
(262)
|
|
—
|
|
(262)
|
Interest expense
and
related charges (a)
|
8
|
|
(20)
|
|
3
|
|
(3)
|
|
2
|
|
194
|
|
184
|
|
2
|
|
186
|
Depreciation and
amortization (b)
|
109
|
|
467
|
|
545
|
|
26
|
|
49
|
|
52
|
|
1,248
|
|
29
|
|
1,277
|
EBITDA before
Adjustments
|
2,216
|
|
(1,008)
|
|
(362)
|
|
59
|
|
(474)
|
|
(69)
|
|
362
|
|
(123)
|
|
239
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
(1,602)
|
|
2,260
|
|
805
|
|
49
|
|
473
|
|
—
|
|
1,985
|
|
42
|
|
2,027
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
29
|
|
29
|
|
—
|
|
29
|
Non-cash
compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
48
|
|
48
|
|
—
|
|
48
|
Transition and
merger
expenses
|
7
|
|
—
|
|
1
|
|
—
|
|
—
|
|
10
|
|
18
|
|
—
|
|
18
|
Winter Storm Uri
impacts (c)
|
(95)
|
|
(52)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(147)
|
|
—
|
|
(147)
|
Other, net
|
38
|
|
21
|
|
6
|
|
2
|
|
17
|
|
(44)
|
|
40
|
|
4
|
|
44
|
Adjusted
EBITDA
|
$
564
|
|
$
1,221
|
|
$
450
|
|
$
110
|
|
$ 16
|
|
$
(26)
|
|
$ 2,335
|
|
$
(77)
|
|
$ 2,258
|
|
|
|
|
|
|
|
(a)
|
Includes $261 million
of unrealized mark-to-market net gains on interest rate
swaps.
|
(b)
|
Includes nuclear fuel
amortization of $63 million in Texas segment.
|
(c)
|
Adjusted EBITDA impacts
of Winter Storm Uri reflects the application of bill credits to
large commercial and industrial customers that curtailed their
usage during Winter Storm Uri and a reduction in the allocation of
ERCOT default uplift charges which were expected to be paid over
several decades under protocols existing at the time of the
storm.
|
VISTRA CORP –
Non-GAAP Reconciliations 2023 Guidance1
(Unaudited) (Millions of Dollars)
|
|
Ongoing
Operations
|
Asset
Closure
|
Vistra
Consolidated
|
|
Low
|
High
|
Low
|
High
|
Low
|
High
|
Net Income
(loss)
|
1,860
|
1,960
|
(70)
|
30
|
1,790
|
1,990
|
Income tax
expense
|
540
|
590
|
0
|
0
|
540
|
590
|
Interest expense and
related charges (a)
|
670
|
670
|
0
|
0
|
670
|
670
|
Depreciation and
amortization (b)
|
1,570
|
1,570
|
0
|
0
|
1,570
|
1,570
|
EBITDA before
adjustments
|
4,640
|
4,790
|
(70)
|
30
|
4,570
|
4,820
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(889)
|
(889)
|
(36)
|
(36)
|
(925)
|
(925)
|
Impacts of Tax
Receivable Agreement
|
130
|
130
|
0
|
0
|
130
|
130
|
Non-cash compensation
expenses
|
76
|
76
|
0
|
0
|
76
|
76
|
Impairment of
long-lived and other assets
|
49
|
49
|
0
|
0
|
49
|
49
|
Transition and merger
expenses
|
52
|
52
|
0
|
0
|
52
|
52
|
PJM capacity
performance default impacts
|
6
|
6
|
0
|
0
|
6
|
6
|
Winter storm Uri
impacts (c)
|
(49)
|
(49)
|
0
|
0
|
(49)
|
(49)
|
Interest
Income
|
(92)
|
(92)
|
0
|
0
|
(92)
|
(92)
|
Other, net
|
27
|
27
|
6
|
6
|
33
|
33
|
Adjusted EBITDA
guidance
|
3,950
|
4,100
|
(100)
|
0
|
3,850
|
4,100
|
Interest paid,
net
|
(581)
|
(581)
|
0
|
0
|
(581)
|
(581)
|
Tax (paid) / received
(d)
|
(24)
|
(24)
|
0
|
0
|
(24)
|
(24)
|
Tax Receivable
Agreement payments
|
(10)
|
(10)
|
0
|
0
|
(10)
|
(10)
|
Working capital and
margin deposits
|
2,223
|
2,223
|
(5)
|
(5)
|
2,218
|
2,218
|
Accrued environmental
allowances
|
339
|
339
|
0
|
0
|
339
|
339
|
Reclamation and
remediation
|
(33)
|
(33)
|
(57)
|
(57)
|
(90)
|
(90)
|
ERP implementation
expenditures
|
(6)
|
(6)
|
0
|
0
|
(6)
|
(6)
|
Other changes in other
operating assets and liabilities
|
(49)
|
(49)
|
(15)
|
(15)
|
(64)
|
(64)
|
Cash provided by
operating activities
|
5,809
|
5,959
|
(177)
|
(77)
|
5,632
|
5,882
|
Capital expenditures
including nuclear fuel purchases and LTSA prepayments
|
(929)
|
(929)
|
0
|
0
|
(929)
|
(929)
|
Solar and storage
development expenditures
|
(587)
|
(587)
|
0
|
0
|
(587)
|
(587)
|
Other growth
expenditures
|
(148)
|
(148)
|
0
|
0
|
(148)
|
(148)
|
(Purchase) sale of
environmental allowances
|
(596)
|
(596)
|
0
|
0
|
(596)
|
(596)
|
Other net investing
activities
|
(21)
|
(21)
|
12
|
12
|
(9)
|
(9)
|
Free cash
flow
|
3,528
|
3,678
|
(165)
|
(65)
|
3,363
|
3,613
|
Working capital and
margin deposits
|
(2,223)
|
(2,223)
|
5
|
5
|
(2,218)
|
(2,218)
|
Solar and storage
development and other growth expenditures
|
587
|
587
|
0
|
0
|
587
|
587
|
Other growth
expenditures
|
148
|
148
|
0
|
0
|
148
|
148
|
Accrued environmental
allowances
|
(339)
|
(339)
|
0
|
0
|
(339)
|
(339)
|
Purchase (sale) of
environmental allowances
|
596
|
596
|
0
|
0
|
596
|
596
|
Transition and merger
expenditures
|
47
|
47
|
25
|
25
|
72
|
72
|
ERP implementation
expenditures
|
6
|
6
|
0
|
0
|
6
|
6
|
Adjusted free cash
flow before growth guidance
|
2,350
|
2,500
|
(135)
|
(35)
|
2,215
|
2,465
|
|
1 Regulation G Table for 2023
Guidance prepared as of Nov. 7, 2023.
|
|
(a) Includes unrealized
(gain) / loss on interest rate swaps of $(56) million.
|
(b) Includes nuclear
fuel amortization of $92 million.
|
(c) Adjustment for bill
credits applied to large commercial and industrial customers that
curtailed during Winter Storm Uri.
|
(d) Includes state tax
payments.
|
VISTRA CORP. -
NON-GAAP RECONCILIATIONS 2024
GUIDANCE2 (Unaudited) (Millions of Dollars)
|
|
Ongoing
Operations
|
Asset
Closure
|
Vistra
Consolidated
|
|
Low
|
High
|
Low
|
High
|
Low
|
High
|
Net Income
(loss)
|
1,790
|
2,090
|
(140)
|
(40)
|
1,650
|
2,050
|
Income tax
expense
|
500
|
600
|
0
|
0
|
500
|
600
|
Interest expense and
related charges (a)
|
960
|
960
|
0
|
0
|
960
|
960
|
Depreciation and
amortization (b)
|
1,650
|
1,650
|
0
|
0
|
1,650
|
1,650
|
EBITDA before
adjustments
|
4,900
|
5,300
|
(140)
|
(40)
|
4,760
|
5,260
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(1,151)
|
(1,151)
|
(9)
|
(9)
|
(1,160)
|
(1,160)
|
Impacts of Tax
Receivable Agreement
|
96
|
96
|
0
|
0
|
96
|
96
|
Non-cash compensation
expenses
|
69
|
69
|
0
|
0
|
69
|
69
|
Transition and merger
expenses
|
8
|
8
|
0
|
0
|
8
|
8
|
Interest
Income
|
(220)
|
(220)
|
0
|
0
|
(220)
|
(220)
|
Other, net
|
(2)
|
(2)
|
4
|
4
|
2
|
2
|
Adjusted EBITDA
guidance
|
3,700
|
4,100
|
(145)
|
(45)
|
3,555
|
4,055
|
Interest paid,
net
|
(725)
|
(725)
|
0
|
0
|
(725)
|
(725)
|
Tax (paid) / received
(c)
|
(22)
|
(22)
|
0
|
0
|
(22)
|
(22)
|
Tax Receivable
Agreement payments
|
(28)
|
(28)
|
0
|
0
|
(28)
|
(28)
|
Working capital and
margin deposits
|
498
|
498
|
0
|
0
|
498
|
498
|
Accrued environmental
allowances
|
459
|
459
|
0
|
0
|
459
|
459
|
Reclamation and
remediation
|
(31)
|
(31)
|
(95)
|
(95)
|
(126)
|
(126)
|
ERP implementation
expenditures
|
(50)
|
(50)
|
0
|
0
|
(50)
|
(50)
|
Other changes in other
operating assets and liabilities
|
(46)
|
(46)
|
(12)
|
(12)
|
(58)
|
(58)
|
Cash provided by
operating activities
|
3,755
|
4,155
|
(252)
|
(152)
|
3,503
|
4,003
|
Capital expenditures
including nuclear fuel purchases and LTSA prepayments
|
(924)
|
(924)
|
0
|
0
|
(924)
|
(924)
|
Solar and storage
development expenditures
|
(745)
|
(745)
|
0
|
0
|
(745)
|
(745)
|
Other growth
expenditures
|
(74)
|
(74)
|
0
|
0
|
(74)
|
(74)
|
(Purchase) sale of
environmental allowances
|
(291)
|
(291)
|
0
|
0
|
(291)
|
(291)
|
Other net investing
activities
|
11
|
11
|
0
|
0
|
11
|
11
|
Free cash
flow
|
1,732
|
2,132
|
(252)
|
(152)
|
1,480
|
1,980
|
Working capital and
margin deposits
|
(498)
|
(498)
|
0
|
0
|
(498)
|
(498)
|
Solar and storage
development and other growth expenditures
|
745
|
745
|
0
|
0
|
745
|
745
|
Other growth
expenditures
|
74
|
74
|
0
|
0
|
74
|
74
|
Accrued environmental
allowances
|
(459)
|
(459)
|
0
|
0
|
(459)
|
(459)
|
Purchase (sale) of
environmental allowances
|
291
|
291
|
0
|
0
|
291
|
291
|
Transition and merger
expenditures
|
(35)
|
(35)
|
2
|
2
|
(33)
|
(33)
|
ERP implementation
expenditures
|
50
|
50
|
0
|
0
|
50
|
50
|
Adjusted free cash
flow before growth guidance
|
1,900
|
2,300
|
(250)
|
(150)
|
1,650
|
2,150
|
|
2 Regulation G Table for 2024
Guidance prepared as of Nov. 7, 2023; excludes any potential
contributions from Energy Harbor's performance.
|
|
(a) Includes unrealized
(gain) / loss on interest rate swaps of $50 million.
|
(b) Includes nuclear
fuel amortization of $107 million.
|
(c) Includes state tax
payments.
|
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SOURCE Vistra Corp.