Exhibit 99.1
P.O. BOX 3795 | HOUSTON, TEXAS 77253 | TEL 832 357 3000 | FAX 832 357 5503 |
For more information: | Dennis Barber, Investor Relations: 832-357-3042 Laurie Fickman, Media Relations: 832-357-7720 www.rrienergy.com | |
For immediate release: | February 25, 2010 |
RRI Energy Reports Fourth Quarter and 2009 Results
• | Implemented actions to mitigate near-term risk from current market environment |
• | Sold retail business eliminating nearly $3 billion of collateral obligations and contingent capital | ||
• | Implemented modest hedging for 2010 and 2011 for free cash flow break-even or better if market conditions worsen | ||
• | Reduced gross debt by $540 million and maintained $1.6 billion of liquidity |
• | Improved the current performance and value of the business and positioned for longer-term market recovery |
• | Captured over $415 million in future forward capacity and PPA revenue | ||
• | Realigned corporate support costs saving $40 million | ||
• | Implemented revised plans for profitability at marginal power plants | ||
• | Completed Keystone scrubber, which significantly reduces SO2 emissions |
• | Fourth quarter and 2009 financial results reflect depressed commodity prices and weak economic conditions | ||
• | Indian River and New Castle power plant non-cash impairments totaling $211 million charged in fourth quarter | ||
• | 2010 and 2011 outlooks reflect challenging market conditions |
HOUSTON —RRI Energy, Inc. today is reporting open EBITDA of $185 million for 2009, compared to $545 million for 2008. The decline was primarily due to lower energy unit margins resulting from lower commodity prices and lower power demand. Adjusted EBITDA was $55 million in 2009, compared to $871 million in 2008. Out-of-the-money coal hedges in 2009 compared to in-the-money coal hedges in 2008 form the primary difference between open and adjusted EBITDA. Free cash flow used in continuing operations during 2009 was $327 million, compared to free cash flow provided by continuing operations of $241 million for 2008. These results exclude the performance of the Texas retail business, which was sold on May 1, 2009 and is included in discontinued operations.
“We are managing the challenges of the difficult economic environment and are well positioned to deliver long-term shareholder value,” said Mark Jacobs, president and chief executive officer of RRI Energy. “We are squarely focused on what we can control. In terms of managing risk, we continue to maintain strong liquidity levels which totaled $1.6 billion at
year end with approximately $1 billion of cash and implemented a modest hedging program to provide a high probability of achieving free cash flow break-even or better in 2010 and 2011, even if market conditions deteriorate. In addition, we are taking actions to improve the performance and value of the business in the current environment and position it for longer-term market recovery.”
Open EBITDA was $56 million for the fourth quarter of 2009, compared to $40 million for the same period of 2008. Adjusted EBITDA was $13 million for the fourth quarter of 2009, compared to $162 million for the fourth quarter of 2008. The declines were due to the same factors described above.
The loss from continuing operations before income taxes for 2009 was $604 million, compared to income of $26 million for 2008. The 2009 reported results include impairments of long-lived assets totaling $211 million, net unrealized gains from energy derivatives of $22 million, $9 million in severance costs and charges for debt extinguishments totaling $8 million. The reported numbers for 2008 include a goodwill impairment totaling $305 million, a $37 million charge for western states litigation and similar settlements, net unrealized losses from energy derivatives of $9 million and charges for debt extinguishments totaling $2 million. Operating cash flow from continuing operations was ($392) million for 2009, compared to $704 million for 2008. The $540 million reduction in gross debt consists primarily of $268 million of GAAP debt and $261 million from debt recorded in discontinued operations.
The loss from continuing operations before income taxes for the fourth quarter of 2009 was $270 million, compared to a loss of $325 million for the fourth quarter of 2008. The reported results include impairments of long-lived assets totaling $211 million and net unrealized gains from energy derivatives of $52 million in 2009. The reported results for 2008 include a goodwill impairment totaling $305 million and net unrealized losses from energy derivatives of $67 million.
Outlook
RRI Energy’s outlook is based on forward commodity prices as of February 5, 2010. The outlook for open EBITDA is $367 million and $366 million for the years ending December 31, 2010 and 2011, respectively. The outlook for adjusted EBITDA, which includes the impact of hedges and other items, is $360 million and $309 million for the same periods. The outlook for free cash flow provided by continuing operations is $92 million and $110 million for the years ending December 31, 2010 and 2011, respectively.
Open EBITDA Reconciliation
2008A | 2009A | 2010E | 2011E | |||||||||||||
($ millions) | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 26 | ($604 | ) | ($104 | ) | ($125 | ) | ||||||||
Unrealized (gains) losses on energy derivatives | 9 | (22 | ) | 4 | 7 | |||||||||||
Severance | — | 9 | 4 | — | ||||||||||||
Western states litigation and similar settlements | 37 | — | — | — | ||||||||||||
Goodwill and long-lived assets impairments | 305 | 211 | — | — | ||||||||||||
Debt extinguishments losses | 2 | 8 | — | — | ||||||||||||
Depreciation and amortization | 313 | 269 | 295 | 277 | ||||||||||||
Interest expense, net | 179 | 184 | 161 | 150 | ||||||||||||
Adjusted EBITDA | $ | 871 | $ | 55 | $ | 360 | $ | 309 | ||||||||
Hedges and other items | (233 | ) | 152 | 7 | 57 | |||||||||||
Gains on sales of assets and emission and exchange allowances, net | (93 | ) | (22 | ) | — | — | ||||||||||
Open EBITDA | $ | 545 | $ | 185 | $ | 367 | $ | 366 |
Free Cash Flow from Continuing Operations Reconciliation
2008A | 2009A | 2010E | 2011E | |||||||||||||
($ millions) | ||||||||||||||||
Operating cash flow from continuing operations | $ | 704 | ($392 | ) | $ | 330 | $ | 210 | ||||||||
Western states litigation and similar settlements payments | 34 | 3 | 68 | — | ||||||||||||
Change in margin deposits, net | (199 | ) | 256 | (192 | ) | (14 | ) | |||||||||
Adjusted cash flow provided by (used in) continuing operations | $ | 539 | ($133 | ) | $ | 206 | $ | 196 | ||||||||
Maintenance capital expenditures | (56 | ) | (56 | ) | (48 | ) | (42 | ) | ||||||||
Environmental capital expenditures and capitalized interest | (223 | ) | (134 | ) | (40 | ) | (20 | ) | ||||||||
Emission and exchange allowances activity, net | (19 | ) | (4 | ) | (26 | ) | (24 | ) | ||||||||
Free cash flow provided by (used in) continuing operations | $ | 241 | ($327 | ) | $ | 92 | $ | 110 |
Non-GAAP Financial Measures
This press release and the attached financial tables include the following non-GAAP financial measures:
• | EBITDA | ||
• | Adjusted EBITDA | ||
• | Open EBITDA | ||
• | Adjusted cash flow provided by (used in) continuing operations | ||
• | Free cash flow provided by (used in) continuing operations | ||
• | Open energy gross margin | ||
• | Other margin | ||
• | Open gross margin | ||
• | Gross debt | ||
• | Net debt | ||
• | Operation and maintenance, excluding severance | ||
• | General and administrative, excluding severance |
A reconciliation of these financial measures and the most directly comparable GAAP measures is included above or in the attached financial tables. Additional information regarding these measures, including a discussion of their usefulness and purpose, is included in the Form 8-K furnished along with this press release. Certain factors that could affect GAAP financial measures are not accessible on a forward-looking basis, but could be material to future reported earnings and cash flows.
Webcast Of Earnings Conference Call
RRI Energy will host its fourth quarter 2009 earnings conference call beginning at 11:00 a.m. Eastern Time on Thursday, February 25, 2010. The conference call will be webcast live with audio and slides atwww.rrienergy.com in the investor relations section. A replay of the call can be accessed approximately two hours after the call’s completion.
About RRI Energy, Inc.
RRI Energy, Inc. (NYSE:RRI) based in Houston, provides electricity to wholesale customers in the United States. The company is one of the largest independent power producers in the nation with more than 14,000 megawatts of power generation capacity across the United States. These strategically located generating assets use natural gas, fuel oil and coal. RRI routinely posts all important information on its Web site atwww.rrienergy.com.
RRI Energy, Inc. (NYSE:RRI) based in Houston, provides electricity to wholesale customers in the United States. The company is one of the largest independent power producers in the nation with more than 14,000 megawatts of power generation capacity across the United States. These strategically located generating assets use natural gas, fuel oil and coal. RRI routinely posts all important information on its Web site atwww.rrienergy.com.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, estimates or assumptions about our revenues, income, capital structure and other financial items, our plans and objectives for future operations or about our future economic performance, possible transactions, dispositions, financings or offerings, and our view of economic and market conditions,. In many cases you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.
Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, legislative, regulatory and/or market developments, the outcome of pending or threatened lawsuits, regulatory or tax proceedings or investigations, the effects of competition or regulatory intervention, financial and economic market conditions, access to capital, the timing and extent of changes in law and regulation (including environmental), commodity prices, prevailing demand and market prices for electricity, capacity, fuel and emission allowances, weather conditions, operational constraints or outages, fuel supply or transmission issues, hedging ineffectiveness and other factors we discuss or refer to in the “Risk Factors” section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. Our filings and other important information are also available on the Investor Relations page of our website atwww.rrienergy.com.
Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
###
RRI Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
Consolidated Statements of Operations
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(Unaudited) | ||||||||||||||||
(thousands of dollars, except per share amounts) | ||||||||||||||||
Revenues: | ||||||||||||||||
Revenues (including $7,055, $11,755, $(44,170) and $(1,151) unrealized gains (losses)) (including $0, $0, $0 and $253,001 from affiliates) | $ | 461,699 | $ | 540,673 | $ | 1,824,839 | $ | 3,393,900 | ||||||||
Expenses: | ||||||||||||||||
Cost of sales (including $45,104, $(78,211), $65,961 and $(7,405) unrealized gains (losses)) (including $0, $28, $0 and $71,568 from affiliates) | 256,876 | 322,173 | 1,129,249 | 1,913,689 | ||||||||||||
Operation and maintenance | 121,686 | 139,498 | 550,253 | 595,262 | ||||||||||||
General and administrative | 20,400 | 36,262 | 100,745 | 121,173 | ||||||||||||
Western states litigation and similar settlements | — | — | — | 37,467 | ||||||||||||
Gains on sales of assets and emission and exchange allowances, net | (729 | ) | (52,718 | ) | (21,913 | ) | (92,202 | ) | ||||||||
Goodwill and long-lived assets impairments | 210,771 | 304,859 | 210,771 | 304,859 | ||||||||||||
Depreciation and amortization | 65,963 | 68,583 | 269,191 | 312,642 | ||||||||||||
Total operating expense | 674,967 | 818,657 | 2,238,296 | 3,192,890 | ||||||||||||
Operating Income (Loss) | (213,268 | ) | (277,984 | ) | (413,457 | ) | 201,010 | |||||||||
Other Income (Expense): | ||||||||||||||||
Income (loss) of equity investment, net | (543 | ) | (1,402 | ) | 605 | 1,198 | ||||||||||
Debt extinguishments losses | (8,242 | ) | — | (7,501 | ) | (2,257 | ) | |||||||||
Other, net | (42 | ) | 108 | (248 | ) | 4,727 | ||||||||||
Interest expense | (49,696 | ) | (47,787 | ) | (186,296 | ) | (199,590 | ) | ||||||||
Interest income | 1,140 | 2,032 | 2,516 | 21,178 | ||||||||||||
Total other expense | (57,383 | ) | (47,049 | ) | (190,924 | ) | (174,744 | ) | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes | (270,651 | ) | (325,033 | ) | (604,381 | ) | 26,266 | |||||||||
Income tax expense (benefit) | (19,361 | ) | (26,276 | ) | (125,349 | ) | 136,532 | |||||||||
Loss from Continuing Operations | (251,290 | ) | (298,757 | ) | (479,032 | ) | (110,266 | ) | ||||||||
Income (loss) from discontinued operations | 17,377 | (138,898 | ) | 881,844 | (629,409 | ) | ||||||||||
Net Income (Loss) | $ | (233,913 | ) | $ | (437,655 | ) | $ | 402,812 | $ | (739,675 | ) | |||||
Basic Earnings (Loss) Per Share: | ||||||||||||||||
Loss from continuing operations | $ | (0.71 | ) | $ | (0.85 | ) | $ | (1.36 | ) | $ | (0.32 | ) | ||||
Income (loss) from discontinued operations | 0.05 | (0.40 | ) | 2.51 | (1.81 | ) | ||||||||||
Net income (loss) | $ | (0.66 | ) | $ | (1.25 | ) | $ | 1.15 | $ | (2.13 | ) | |||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||
Loss from continuing operations | $ | (0.71 | ) | $ | (0.85 | ) | $ | (1.36 | ) | $ | (0.32 | ) | ||||
Income (loss) from discontinued operations | 0.05 | (0.40 | ) | 2.51 | (1.81 | ) | ||||||||||
Net income (loss) | $ | (0.66 | ) | $ | (1.25 | ) | $ | 1.15 | $ | (2.13 | ) | |||||
Weighted Average Common Shares Outstanding (in thousands): | ||||||||||||||||
- Basic | 352,842 | 350,020 | 351,396 | 347,823 | ||||||||||||
- Diluted | 352,842 | 350,020 | 351,396 | 347,823 |
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
1
RRI Energy, Inc. and Subsidiaries
Results of Operations by Segment — Adjusted and Open
(Unaudited)
Results of Operations by Segment — Adjusted and Open
(Unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||
East coal open gross margin (1) | $ | 113 | $ | 144 | $ | (31 | ) | $ | 425 | $ | 858 | $ | (433 | ) | ||||||||||
East gas open gross margin (1) | 53 | 41 | 12 | 208 | 187 | 21 | ||||||||||||||||||
West open gross margin (1) | 19 | 28 | (9 | ) | 133 | 166 | (33 | ) | ||||||||||||||||
Other open gross margin (1) | 12 | 3 | 9 | 60 | 45 | 15 | ||||||||||||||||||
Total | 197 | 216 | (19 | ) | 826 | 1,256 | (430 | ) | ||||||||||||||||
Operation and maintenance, excluding severance | (120 | ) | (139 | ) | 19 | (544 | ) | (595 | ) | 51 | ||||||||||||||
General and administrative, excluding severance | (21 | ) | (36 | ) | 15 | (98 | ) | (122 | ) | 24 | ||||||||||||||
Other income (expense), net | — | (1 | ) | 1 | 1 | 6 | (5 | ) | ||||||||||||||||
Open EBITDA | 56 | 40 | 16 | 185 | 545 | (360 | ) | |||||||||||||||||
Power | (10 | ) | (17 | ) | 7 | (40 | ) | (70 | ) | 30 | ||||||||||||||
Fuel | (43 | ) | 80 | (123 | ) | (228 | ) | 272 | (500 | ) | ||||||||||||||
Tolling / Other | 9 | 6 | 3 | 116 | 31 | 85 | ||||||||||||||||||
Hedges and other items | (44 | ) | 69 | (113 | ) | (152 | ) | 233 | (385 | ) | ||||||||||||||
Gains on sales of assets and emission and exchange allowances, net | 1 | 53 | (52 | ) | 22 | 93 | (71 | ) | ||||||||||||||||
Adjusted EBITDA | 13 | 162 | (149 | ) | 55 | 871 | (816 | ) | ||||||||||||||||
Unrealized gains (losses) on energy derivatives | 52 | (67 | ) | 119 | 22 | (9 | ) | 31 | ||||||||||||||||
Western states litigation and similar settlements | — | — | — | — | (37 | ) | 37 | |||||||||||||||||
Severance (2) | (1 | ) | — | (1 | ) | (9 | ) | — | (9 | ) | ||||||||||||||
Goodwill and long-lived assets impairments | (211 | ) | (305 | ) | 94 | (211 | ) | (305 | ) | 94 | ||||||||||||||
Debt extinguishments losses | (9 | ) | — | (9 | ) | (8 | ) | (2 | ) | (6 | ) | |||||||||||||
EBITDA | (156 | ) | (210 | ) | 54 | (151 | ) | 518 | (669 | ) | ||||||||||||||
Depreciation and amortization | (66 | ) | (69 | ) | 3 | (269 | ) | (313 | ) | 44 | ||||||||||||||
Interest expense, net | (48 | ) | (46 | ) | (2 | ) | (184 | ) | (179 | ) | (5 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | $ | (270 | ) | $ | (325 | ) | $ | 55 | $ | (604 | ) | $ | 26 | $ | (630 | ) | ||||||||
(1) | Segment profitability measure consists of open energy gross margin and other margin. | |
(2) | Includes severance from operation and maintenance and general and administrative expenses. |
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
2
RRI Energy, Inc. and Subsidiaries
Consolidated Balance Sheets
Consolidated Balance Sheets
December 31, 2009 | December 31, 2008 | |||||||
(thousands of dollars) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 943,440 | $ | 1,004,367 | ||||
Restricted cash | 24,093 | 2,721 | ||||||
Accounts and notes receivable, principally customer | 152,569 | 249,871 | ||||||
Inventory | 331,584 | 314,999 | ||||||
Derivative assets | 132,062 | 161,340 | ||||||
Margin deposits | 198,582 | 32,676 | ||||||
Investment in and receivables from Channelview, net | — | 58,703 | ||||||
Prepayments and other current assets | 86,844 | 124,449 | ||||||
Current assets of discontinued operations ($55,855 and $295,477 of margin deposits) | 108,476 | 2,506,340 | ||||||
Total current assets | 1,977,650 | 4,455,466 | ||||||
Property, plant and equipment, gross | 6,330,879 | 6,417,268 | ||||||
Accumulated depreciation | (1,728,566 | ) | (1,597,479 | ) | ||||
Property, Plant and Equipment, net | 4,602,313 | 4,819,789 | ||||||
Other Assets: | ||||||||
Other intangibles, net | 305,913 | 380,554 | ||||||
Derivative assets | 53,138 | 78,879 | ||||||
Prepaid lease | 277,370 | 273,374 | ||||||
Other ($33,793 and $29,012 accounted for at fair value) | 239,078 | 219,552 | ||||||
Long-term assets of discontinued operations | 5,232 | 494,781 | ||||||
Total other assets | 880,731 | 1,447,140 | ||||||
Total Assets | $ | 7,460,694 | $ | 10,722,395 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Current portion of long-term debt and short-term borrowings | $ | 404,505 | $ | 12,517 | ||||
Accounts payable, principally trade | 142,787 | 156,604 | ||||||
Derivative liabilities | 151,461 | 202,206 | ||||||
Margin deposits | 2,860 | 93,000 | ||||||
Other | 169,898 | 199,026 | ||||||
Current liabilities of discontinued operations ($11,000 and $0 of margin deposits) | 58,452 | 2,375,895 | ||||||
Total current liabilities | 929,963 | 3,039,248 | ||||||
Other Liabilities: | ||||||||
Derivative liabilities | 61,436 | 140,493 | ||||||
Other | 260,547 | 272,079 | ||||||
Long-term liabilities of discontinued operations | 13,700 | 873,190 | ||||||
Total other liabilities | 335,683 | 1,285,762 | ||||||
Long-term Debt | 1,949,771 | 2,610,737 | ||||||
Commitments and Contingencies | ||||||||
Temporary Equity Stock-based Compensation | 6,890 | 9,004 | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock; par value $0.001 per share (125,000,000 shares authorized; none outstanding) | — | — | ||||||
Common stock; par value $0.001 per share (2,000,000,000 shares authorized; 352,785,985 and 349,812,537 issued) | 114 | 111 | ||||||
Additional paid-in capital | 6,259,248 | 6,238,639 | ||||||
Accumulated deficit | (1,972,389 | ) | (2,375,201 | ) | ||||
Accumulated other comprehensive loss | (48,586 | ) | (85,905 | ) | ||||
Total stockholders’ equity | 4,238,387 | 3,777,644 | ||||||
Total Liabilities and Equity | $ | 7,460,694 | $ | 10,722,395 | ||||
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
3
RRI Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
Twelve Months Ended December 31, | ||||||||
2009 | 2008 | |||||||
(thousands of dollars) | ||||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 402,812 | $ | (739,675 | ) | |||
(Income) loss from discontinued operations | (881,844 | ) | 629,409 | |||||
Net loss from continuing operations | (479,032 | ) | (110,266 | ) | ||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and amortization | 269,191 | 312,642 | ||||||
Deferred income taxes | (120,646 | ) | 99,930 | |||||
Net changes in energy derivatives | (21,285 | ) | 8,556 | |||||
Amortization of deferred financing costs | 7,086 | 6,653 | ||||||
Gains on sales of assets and emission and exchange allowances, net | (21,913 | ) | (92,202 | ) | ||||
Western states litigation and similar settlements | — | 3,467 | ||||||
Goodwill and long-lived assets impairments | 210,771 | 304,859 | ||||||
Debt extinguishments losses | 7,501 | 2,257 | ||||||
Other, net | (13,121 | ) | (10,486 | ) | ||||
Changes in other assets and liabilities: | ||||||||
Accounts and notes receivable, net | 108,985 | 9,978 | ||||||
Change in notes, receivables and payables with affiliates, net | 43 | 3,687 | ||||||
Inventory | (14,711 | ) | (31,862 | ) | ||||
Margin deposits, net | (256,046 | ) | 199,370 | |||||
Net derivative assets and liabilities | (32,460 | ) | 3,049 | |||||
Western states litigation and similar settlement payments | (3,449 | ) | — | |||||
Accounts payable | (12,776 | ) | (48,470 | ) | ||||
Other current assets | 12,269 | 1,969 | ||||||
Other assets | (6,466 | ) | 10,207 | |||||
Taxes payable/receivable | (6,883 | ) | 24,325 | |||||
Other current liabilities | (11,157 | ) | 10,091 | |||||
Other liabilities | (7,417 | ) | (4,327 | ) | ||||
Net cash provided by (used in) continuing operations from operating activities | (391,516 | ) | 703,427 | |||||
Net cash provided by (used in) discontinued operations from operating activities | 585,045 | (520,732 | ) | |||||
Net cash provided by operating activities | 193,529 | 182,695 | ||||||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (189,511 | ) | (278,757 | ) | ||||
Proceeds from sales of assets, net | 35,931 | 526,956 | ||||||
Proceeds from sales of emission and exchange allowances | 19,180 | 42,458 | ||||||
Purchases of emission allowances | (22,711 | ) | (60,986 | ) | ||||
Restricted cash | (4,620 | ) | 530 | |||||
Other, net | 3,750 | 6,562 | ||||||
Net cash provided by (used in) continuing operations from investing activities | (157,981 | ) | 236,763 | |||||
Net cash provided by (used in) discontinued operations from investing activities | 311,800 | (20,128 | ) | |||||
Net cash provided by investing activities | 153,819 | 216,635 | ||||||
Cash Flows from Financing Activities: | ||||||||
Payments of long-term debt | (254,980 | ) | (57,704 | ) | ||||
Payments of debt extinguishments | (4,778 | ) | (1,017 | ) | ||||
Proceeds from issuances of stock | 11,245 | 13,570 | ||||||
Net cash used in continuing operations from financing activities | (248,513 | ) | (45,151 | ) | ||||
Net cash used in discontinued operations from financing activities | (260,707 | ) | — | |||||
Net cash used in financing activities | (509,220 | ) | (45,151 | ) | ||||
Net Change in Cash and Cash Equivalents, Total Operations | (161,872 | ) | 354,179 | |||||
Less: Net Change in Cash and Cash Equivalents, Discontinued Operations | (100,945 | ) | (126,118 | ) | ||||
Cash and Cash Equivalents at Beginning of Period, Continuing Operations | 1,004,367 | 524,070 | ||||||
Cash and Cash Equivalents at End of Period, Continuing Operations | $ | 943,440 | $ | 1,004,367 | ||||
Free Cash Flow Reconciliation
(Unaudited)
(Unaudited)
Twelve Months Ended December 31, | ||||||||
2009 | 2008 | |||||||
(millions of dollars) | ||||||||
Operating cash flow from continuing operations | $ | (392 | ) | $ | 704 | |||
Western states litigation and similar settlements payments | 3 | 34 | ||||||
Change in margin deposits, net | 256 | (199 | ) | |||||
Adjusted cash flow provided by (used in) continuing operations | (133 | ) | 539 | |||||
Capital expenditures | (190 | ) | (279 | ) | ||||
Proceeds from sales of emission and exchange allowances | 19 | 42 | ||||||
Purchases of emission allowances | (23 | ) | (61 | ) | ||||
Free cash flow provided by (used in) continuing operations | $ | (327 | ) | $ | 241 | |||
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
4
RRI Energy, Inc. and Subsidiaries
Power Generation Operational and Financial Data
(Unaudited)
Power Generation Operational and Financial Data
(Unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||
GWh | % Economic (1) | GWh | % Economic (1) | GWh | % Economic (1) | GWh | % Economic (1) | |||||||||||||||||||||||||
Economic Generation (2) (3): | ||||||||||||||||||||||||||||||||
East Coal | 6,192.1 | 62 | % | 6,688.1 | 66 | % | 24,078.7 | 61 | % | 27,136.7 | 67 | % | ||||||||||||||||||||
East Gas | 355.0 | 4 | % | 183.5 | 2 | % | 2,054.7 | 6 | % | 1,362.5 | 4 | % | ||||||||||||||||||||
West | 116.8 | 2 | % | 601.0 | 10 | % | 693.4 | 3 | % | 2,553.9 | 10 | % | ||||||||||||||||||||
Other | 2.4 | 0 | % | 4.1 | 0 | % | 77.0 | 1 | % | 74.5 | 1 | % | ||||||||||||||||||||
Total | 6,666.3 | 26 | % | 7,476.7 | 28 | % | 26,903.8 | 26 | % | 31,127.6 | 30 | % | ||||||||||||||||||||
Commercial Capacity Factor (4): | ||||||||||||||||||||||||||||||||
East Coal | 83.0 | % | 88.2 | % | 82.4 | % | 86.3 | % | ||||||||||||||||||||||||
East Gas | 88.1 | % | 89.4 | % | 95.0 | % | 90.6 | % | ||||||||||||||||||||||||
West | 97.0 | % | 93.0 | % | 88.1 | % | 93.7 | % | ||||||||||||||||||||||||
Other | 100.0 | % | 100.0 | % | 99.1 | % | 82.7 | % | ||||||||||||||||||||||||
Total | 83.5 | % | 88.6 | % | 83.6 | % | 87.1 | % | ||||||||||||||||||||||||
Generation (3): | GWh | GWh | GWh | GWh | ||||||||||||||||||||||||||||
East Coal | 5,139.2 | 5,896.9 | 19,850.5 | 23,425.9 | ||||||||||||||||||||||||||||
East Gas | 312.7 | 164.1 | 1,951.1 | 1,234.9 | ||||||||||||||||||||||||||||
West | 113.3 | 559.2 | 611.0 | 2,393.2 | ||||||||||||||||||||||||||||
Other | 2.4 | 4.1 | 76.3 | 61.6 | ||||||||||||||||||||||||||||
Total | 5,567.6 | 6,624.3 | 22,488.9 | 27,115.6 | ||||||||||||||||||||||||||||
Open Energy Unit Margin ($/MWh) (5): | ||||||||||||||||||||||||||||||||
East Coal | $ | 11.87 | $ | 18.15 | $ | 12.04 | $ | 30.69 | ||||||||||||||||||||||||
East Gas | 6.40 | 12.19 | 10.25 | 34.01 | ||||||||||||||||||||||||||||
West | 17.65 | — | 22.91 | NM | (6) | |||||||||||||||||||||||||||
Other | — | — | — | 16.23 | ||||||||||||||||||||||||||||
Weighted average total | $ | 11.67 | $ | 16.45 | $ | 12.14 | $ | 28.07 | ||||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
East Coal | ||||||||||||||||||||||||
Open energy gross margin (7) | $ | 61 | $ | 107 | $ | (46 | ) | $ | 239 | $ | 719 | $ | (480 | ) | ||||||||||
Other margin (8) | 52 | 37 | 15 | 186 | 139 | 47 | ||||||||||||||||||
Open gross margin (9) (10) | $ | 113 | $ | 144 | $ | (31 | ) | $ | 425 | $ | 858 | $ | (433 | ) | ||||||||||
East Gas | ||||||||||||||||||||||||
Open energy gross margin (7) | $ | 2 | $ | 2 | $ | — | $ | 20 | $ | 42 | $ | (22 | ) | |||||||||||
Other margin (8) | 51 | 39 | 12 | 188 | 145 | 43 | ||||||||||||||||||
Open gross margin (9) (10) | $ | 53 | $ | 41 | $ | 12 | $ | 208 | $ | 187 | $ | 21 | ||||||||||||
West | ||||||||||||||||||||||||
Open energy gross margin (7) | $ | 2 | $ | — | $ | 2 | $ | 14 | $ | (1 | ) | $ | 15 | |||||||||||
Other margin (8) | 17 | 28 | (11 | ) | 119 | 167 | (48 | ) | ||||||||||||||||
Open gross margin (9) (10) | $ | 19 | $ | 28 | $ | (9 | ) | $ | 133 | $ | 166 | $ | (33 | ) | ||||||||||
Other | ||||||||||||||||||||||||
Open energy gross margin (7) | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | (1 | ) | |||||||||||
Other margin (8) | 12 | 3 | 9 | 60 | 44 | 16 | ||||||||||||||||||
Open gross margin (9) (10) | $ | 12 | $ | 3 | $ | 9 | $ | 60 | $ | 45 | $ | 15 | ||||||||||||
Total | ||||||||||||||||||||||||
Open energy gross margin (7) | $ | 65 | $ | 109 | $ | (44 | ) | $ | 273 | $ | 761 | $ | (488 | ) | ||||||||||
Other margin (8) | 132 | 107 | 25 | 553 | 495 | 58 | ||||||||||||||||||
Open gross margin (10) | $ | 197 | $ | 216 | $ | (19 | ) | $ | 826 | $ | 1,256 | $ | (430 | ) | ||||||||||
(1) | Generally represents economic generation (hours) divided by maximum generation hours (maximum plant capacity multiplied by 8,760 hours). | |
(2) | Estimated generation at 100% plant availability based on an hourly analysis of when it is economical to generate based on the price of power, fuel, emission allowances and variable operating costs. | |
(3) | Excludes generation related to power purchase agreements, including tolling agreements. | |
(4) | Generation divided by economic generation. | |
(5) | Represents open energy gross margin divided by generation. | |
(6) | NM is not meaningful. | |
(7) | Open energy gross margin is calculated using the day-ahead and real-time market power sales prices received by the plants less market-based delivered fuel costs. | |
(8) | Other margin represents power purchase agreements, capacity payments, ancillary services revenues and selective commercial strategies relating to optimizing our assets. | |
(9) | Segment profitability measure. | |
(10) | This figure excludes the effects of hedges and other items and unrealized gains/losses on energy derivatives. |
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
5
RRI Energy, Inc. and Subsidiaries
East Coal
(Unaudited)
East Coal
(Unaudited)
Capacity | Heat Rate | Q4 economic generation (GWh) | Q4 commercial capacity factor | Q4 generation (GWh) | ||||||||||||||||||||||||||||
Unit Name (1) | (MW) | (MMBtu/MWh) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||
Cheswick | 560 | 10.0 | 931.4 | 673.1 | 76.6 | % | 93.6 | % | 713.8 | 630.2 | ||||||||||||||||||||||
Conemaugh (2) | 280 | 9.4 | 565.8 | 583.8 | 88.7 | % | 60.4 | % | 501.8 | 352.6 | ||||||||||||||||||||||
Elrama | 460 | 11.3 | 94.0 | 204.9 | 84.8 | % | 67.4 | % | 79.7 | 138.1 | ||||||||||||||||||||||
Keystone (2) | 282 | 9.5 | 594.6 | 597.5 | 54.8 | % | 97.3 | % | 325.9 | 581.5 | ||||||||||||||||||||||
Portland | 401 | 9.8 | 657.0 | 696.9 | 89.5 | % | 88.9 | % | 588.3 | 619.5 | ||||||||||||||||||||||
Seward | 525 | 9.6 | 1,110.2 | 1,116.0 | 92.3 | % | 99.8 | % | 1,024.9 | 1,113.6 | ||||||||||||||||||||||
Shawville (2) | 597 | 10.3 | 744.9 | 965.0 | 85.6 | % | 86.9 | % | 638.0 | 838.2 | ||||||||||||||||||||||
Titus | 243 | 10.8 | 211.6 | 348.4 | 89.1 | % | 86.0 | % | 188.6 | 299.7 | ||||||||||||||||||||||
Avon Lake | 734 | 9.3 | 937.5 | 864.2 | 87.3 | % | 93.9 | % | 818.4 | 811.1 | ||||||||||||||||||||||
New Castle | 328 | 10.6 | 192.9 | 331.3 | 88.0 | % | 95.6 | % | 169.8 | 316.7 | ||||||||||||||||||||||
Niles | 216 | 10.5 | 152.2 | 307.0 | 59.1 | % | 63.7 | % | 90.0 | 195.7 | ||||||||||||||||||||||
East Coal Total | 4,626 | 6,192.1 | 6,688.1 | 83.0 | % | 88.2 | % | 5,139.2 | 5,896.9 | |||||||||||||||||||||||
Capacity | Heat Rate | Q4 YTD economic generation (GWh) | Q4 YTD commercial capacity factor | Q4 YTD generation (GWh) | ||||||||||||||||||||||||||||
Unit Name (1) | (MW) | (MMBtu/MWh) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||
Cheswick | 560 | 10.0 | 3,565.6 | 2,602.6 | 77.5 | % | 94.0 | % | 2,764.4 | 2,446.1 | ||||||||||||||||||||||
Conemaugh (2) | 280 | 9.4 | 2,144.8 | 2,311.6 | 93.2 | % | 81.7 | % | 1,998.6 | 1,888.2 | ||||||||||||||||||||||
Elrama | 460 | 11.3 | 410.7 | 1,400.3 | 87.3 | % | 81.8 | % | 358.6 | 1,145.2 | ||||||||||||||||||||||
Keystone (2) | 282 | 9.5 | 2,353.7 | 2,408.0 | 74.7 | % | 97.9 | % | 1,757.9 | 2,357.7 | ||||||||||||||||||||||
Portland | 401 | 9.8 | 2,726.6 | 2,708.6 | 83.7 | % | 79.6 | % | 2,282.0 | 2,156.1 | ||||||||||||||||||||||
Seward | 525 | 9.6 | 4,221.9 | 4,367.5 | 80.6 | % | 86.4 | % | 3,401.9 | 3,771.9 | ||||||||||||||||||||||
Shawville (2) | 597 | 10.3 | 2,787.9 | 4,108.1 | 82.2 | % | 84.4 | % | 2,292.7 | 3,466.5 | ||||||||||||||||||||||
Titus | 243 | 10.8 | 1,099.8 | 1,381.6 | 86.7 | % | 87.3 | % | 953.6 | 1,206.1 | ||||||||||||||||||||||
Avon Lake | 734 | 9.3 | 3,523.5 | 3,296.2 | 88.9 | % | 86.3 | % | 3,131.6 | 2,844.3 | ||||||||||||||||||||||
New Castle | 328 | 10.6 | 732.1 | 1,394.3 | 84.6 | % | 90.5 | % | 619.5 | 1,262.1 | ||||||||||||||||||||||
Niles | 216 | 10.5 | 512.1 | 1,157.9 | 56.6 | % | 76.1 | % | 289.7 | 881.7 | ||||||||||||||||||||||
East Coal Total | 4,626 | 24,078.7 | 27,136.7 | 82.4 | % | 86.3 | % | 19,850.5 | 23,425.9 | |||||||||||||||||||||||
(1) | Unless otherwise indicated, the Company owns a 100% interest in each facility listed. | |
(2) | The Company leases a 100% interest in the Shawville facility, a 16.67% interest in the Keystone facility and a 16.45% interest in the Conemaugh facility under facility interest lease agreements, which expire in 2026, 2034 and 2034, respectively. |
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
6
RRI Energy, Inc. and Subsidiaries
East Gas
(Unaudited)
East Gas
(Unaudited)
Capacity | Heat Rate | Q4 economic generation (GWh) | Q4 commercial capacity factor | Q4 generation (GWh) | ||||||||||||||||||||||||||||
Unit Name (1) | (MW) | (MMBtu/MWh) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||
Aurora | 878 | 10.5 | 0.2 | 1.3 | 100.0 | % | 100.0 | % | 0.2 | 1.3 | ||||||||||||||||||||||
Blossburg | 19 | 14.6 | 3.3 | 0.2 | 100.0 | % | 100.0 | % | 3.3 | 0.2 | ||||||||||||||||||||||
Brunot Island | 289 | 10.4 | 0.4 | — | 100.0 | % | 0.0 | % | 0.4 | — | ||||||||||||||||||||||
Gilbert | 536 | 11.0 | 2.2 | 1.3 | 100.0 | % | 100.0 | % | 2.2 | 1.3 | ||||||||||||||||||||||
Glen Gardner | 160 | 14.6 | 0.3 | 0.6 | 100.0 | % | 100.0 | % | 0.3 | 0.6 | ||||||||||||||||||||||
Hamilton | 20 | 14.8 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Hunterstown | 60 | 14.8 | — | 0.1 | 0.0 | % | 100.0 | % | — | 0.1 | ||||||||||||||||||||||
Hunterstown CCGT | 810 | 7.0 | 346.0 | 177.8 | 88.0 | % | 89.2 | % | 304.5 | 158.6 | ||||||||||||||||||||||
Mountain | 40 | 14.3 | — | 0.4 | 0.0 | % | 100.0 | % | — | 0.4 | ||||||||||||||||||||||
Orrtanna | 20 | 14.4 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Portland | 169 | 11.2 | — | 0.8 | 0.0 | % | 87.5 | % | — | 0.7 | ||||||||||||||||||||||
Sayreville | 224 | 13.8 | 1.1 | 0.8 | 100.0 | % | 100.0 | % | 1.1 | 0.8 | ||||||||||||||||||||||
Shawnee | 20 | 14.0 | 0.1 | — | 100.0 | % | 0.0 | % | 0.1 | — | ||||||||||||||||||||||
Shawville (2) | 6 | 10.2 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Titus | 31 | 17.4 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Tolna | 39 | 14.2 | — | 0.1 | 0.0 | % | 100.0 | % | — | 0.1 | ||||||||||||||||||||||
Warren | 68 | 12.8 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Werner | 212 | 13.8 | 1.4 | 0.1 | 42.9 | % | 0.0 | % | 0.6 | — | ||||||||||||||||||||||
Shelby | 356 | 9.8 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
East Gas Total | 3,957 | 355.0 | 183.5 | 88.1 | % | 89.4 | % | 312.7 | 164.1 | |||||||||||||||||||||||
Capacity | Heat Rate | Q4 YTD economic generation (GWh) | Q4 YTD commercial capacity factor | Q4 YTD generation (GWh) | ||||||||||||||||||||||||||||
Unit Name (1) | (MW) | (MMBtu/MWh) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||
Aurora (3) | 878 | 10.5 | 14.2 | 35.7 | 99.3 | % | 100.0 | % | 14.1 | 35.7 | ||||||||||||||||||||||
Blossburg | 19 | 14.6 | 5.9 | 8.1 | 100.0 | % | 92.6 | % | 5.9 | 7.5 | ||||||||||||||||||||||
Brunot Island | 289 | 10.4 | 4.0 | 2.2 | 100.0 | % | 100.0 | % | 4.0 | 2.2 | ||||||||||||||||||||||
Gilbert | 536 | 11.0 | 14.5 | 38.1 | 100.0 | % | 100.0 | % | 14.5 | 38.1 | ||||||||||||||||||||||
Glen Gardner | 160 | 14.6 | 0.6 | 3.6 | 100.0 | % | 88.9 | % | 0.6 | 3.2 | ||||||||||||||||||||||
Hamilton | 20 | 14.8 | 0.6 | 0.4 | 100.0 | % | 100.0 | % | 0.6 | 0.4 | ||||||||||||||||||||||
Hunterstown | 60 | 14.8 | 1.6 | 2.6 | 100.0 | % | 100.0 | % | 1.6 | 2.6 | ||||||||||||||||||||||
Hunterstown CCGT | 810 | 7.0 | 1,999.3 | 1,194.1 | 95.0 | % | 90.6 | % | 1,898.6 | 1,081.6 | ||||||||||||||||||||||
Mountain | 40 | 14.3 | 2.0 | 5.7 | 100.0 | % | 100.0 | % | 2.0 | 5.7 | ||||||||||||||||||||||
Orrtanna | 20 | 14.4 | 0.6 | 0.5 | 33.3 | % | 100.0 | % | 0.2 | 0.5 | ||||||||||||||||||||||
Portland | 169 | 11.2 | 2.6 | 11.1 | 100.0 | % | 99.1 | % | 2.6 | 11.0 | ||||||||||||||||||||||
Sayreville | 224 | 13.8 | 2.9 | 45.0 | 93.1 | % | 72.2 | % | 2.7 | 32.5 | ||||||||||||||||||||||
Shawnee | 20 | 14.0 | 0.3 | 0.1 | 100.0 | % | 100.0 | % | 0.3 | 0.1 | ||||||||||||||||||||||
Shawville (2) | 6 | 10.2 | 0.1 | 0.1 | 100.0 | % | 100.0 | % | 0.1 | 0.1 | ||||||||||||||||||||||
Titus | 31 | 17.4 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Tolna | 39 | 14.2 | 0.5 | 1.8 | 100.0 | % | 100.0 | % | 0.5 | 1.8 | ||||||||||||||||||||||
Warren | 68 | 12.8 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Werner | 212 | 13.8 | 4.0 | 9.6 | 45.0 | % | 84.4 | % | 1.8 | 8.1 | ||||||||||||||||||||||
Shelby | 356 | 9.8 | 1.0 | 3.8 | 100.0 | % | 100.0 | % | 1.0 | 3.8 | ||||||||||||||||||||||
East Gas Total | 3,957 | 2,054.7 | 1,362.5 | 95.0 | % | 90.6 | % | 1,951.1 | 1,234.9 | |||||||||||||||||||||||
(1) | Unless otherwise indicated, the Company owns a 100% interest in each facility listed. | |
(2) | The Company leases a 100% interest in the Shawville facility under a facility interest lease agreement, which expires in 2026. | |
(3) | Excludes generation during periods the unit operated under power purchase agreements. |
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
7
RRI Energy, Inc. and Subsidiaries
West and Other
(Unaudited)
West and Other
(Unaudited)
West
Capacity | Heat Rate | Q4 economic generation (GWh) | Q4 commercial capacity factor | Q4 generation (GWh) | ||||||||||||||||||||||||||||
Unit Name (1) | (MW) | (MMBtu/MWh) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||
Bighorn (2) | 598 | 7.2 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Coolwater | 622 | 10.1 | 27.8 | 228.9 | 97.1 | % | 96.0 | % | 27.0 | 219.8 | ||||||||||||||||||||||
Ellwood (3) | 54 | 13.3 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Etiwanda (3) | 640 | 10.0 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Mandalay (3) | 560 | 10.9 | 65.0 | 200.9 | 96.0 | % | 98.8 | % | 62.4 | 198.5 | ||||||||||||||||||||||
Ormond Beach | 1,516 | 9.6 | 24.0 | 171.2 | 99.6 | % | 82.3 | % | 23.9 | 140.9 | ||||||||||||||||||||||
West Total | 3,990 | 116.8 | 601.0 | 97.0 | % | 93.0 | % | 113.3 | 559.2 | |||||||||||||||||||||||
Capacity | Heat Rate | Q4 YTD economic generation (GWh) | Q4 YTD commercial capacity factor | Q4 YTD generation (GWh) | ||||||||||||||||||||||||||||
Unit Name (1) | (MW) | (MMBtu/MWh) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||
Bighorn (2) | 598 | 7.2 | — | 582.8 | 0.0 | % | 94.8 | % | — | 552.7 | ||||||||||||||||||||||
Coolwater | 622 | 10.1 | 130.6 | 592.2 | 50.5 | % | 92.9 | % | 65.9 | 550.1 | ||||||||||||||||||||||
Ellwood (3) | 54 | 13.3 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Etiwanda (3) | 640 | 10.0 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Mandalay (3) | 560 | 10.9 | 288.5 | 581.9 | 94.0 | % | 97.0 | % | 271.1 | 564.3 | ||||||||||||||||||||||
Ormond Beach | 1,516 | 9.6 | 274.3 | 797.0 | 99.9 | % | 91.1 | % | 274.0 | 726.1 | ||||||||||||||||||||||
West Total | 3,990 | 693.4 | 2,553.9 | 88.1 | % | 93.7 | % | 611.0 | 2,393.2 | |||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Capacity | Heat Rate | Q4 economic generation (GWh) | Q4 commercial capacity factor | Q4 generation (GWh) | ||||||||||||||||||||||||||||
Unit Name (1) | (MW) | (MMBtu/MWh) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||
Choctaw | 800 | 7.0 | 2.4 | 4.1 | 100.0 | % | 100.0 | % | 2.4 | 4.1 | ||||||||||||||||||||||
Indian River (3)(4) | 587 | 10.5 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Osceola (3) | 470 | 11.0 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Other Total | 1,857 | 2.4 | 4.1 | 100.0 | % | 100.0 | % | 2.4 | 4.1 | |||||||||||||||||||||||
Capacity | Heat Rate | Q4 YTD economic generation (GWh) | Q4 YTD commercial capacity factor | Q4 YTD generation (GWh) | ||||||||||||||||||||||||||||
Unit Name (1) | (MW) | (MMBtu/MWh) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||
Choctaw | 800 | 7.0 | 75.5 | 71.0 | 99.1 | % | 81.8 | % | 74.8 | 58.1 | ||||||||||||||||||||||
Indian River (3)(4) | 587 | 10.5 | — | — | 0.0 | % | 0.0 | % | — | — | ||||||||||||||||||||||
Osceola (3) | 470 | 11.0 | 1.5 | 3.5 | 100.0 | % | 100.0 | % | 1.5 | 3.5 | ||||||||||||||||||||||
Other Total | 1,857 | 77.0 | 74.5 | 99.1 | % | 82.7 | % | 76.3 | 61.6 | |||||||||||||||||||||||
(1) | Unless otherwise indicated, the Company owns a 100% interest in each facility listed. | |
(2) | The Bighorn facility was sold in October 2008. | |
(3) | Excludes generation during periods the unit operated under power purchase agreements. | |
(4) | This plant was mothballed in January 2010. |
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
8
RRI Energy, Inc. and Subsidiaries
Capital Expenditures
(Unaudited)
Capital Expenditures
(Unaudited)
Twelve Months Ended December 31, | Projected Annual Outlook | |||||||||||||||
2009 | 2008 | 2010E | 2011E | |||||||||||||
(in millions) | (in millions) | |||||||||||||||
Maintenance capital expenditures | $ | 56 | $ | 56 | $ | 48 | $ | 42 | ||||||||
Environmental (1) | 111 | 206 | 34 | 20 | ||||||||||||
Capitalized interest | 23 | (2) | 17 | (2) | 6 | — | ||||||||||
Total environmental and cap interest | 134 | 223 | 40 | 20 | ||||||||||||
Total capital expenditures | $ | 190 | $ | 279 | $ | 88 | $ | 62 | ||||||||
(1) | The environmental amounts for years beyond 2011 could significantly increase subject to finalization of rules and market conditions. | |
(2) | Relates primarily to environmental capital expenditures for SO2 emission reductions at our Cheswick and Keystone plants, which are included in our East Coal segment. |
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
9
RRI Energy, Inc. and Subsidiaries
GAAP Debt, Gross Debt and Net Debt
(Unaudited)
GAAP Debt, Gross Debt and Net Debt
(Unaudited)
December 31, 2009 | December 31, 2008 | Change | ||||||||||
(in millions) | ||||||||||||
Senior secured revolver | $ | — | $ | — | $ | — | ||||||
Senior secured notes | 279 | 498 | (219 | ) | ||||||||
Senior unsecured notes | 1,300 | 1,300 | — | |||||||||
Orion Power 12% notes (1) | 405 | 417 | (12 | ) | ||||||||
PEDFA fixed-rate bonds for Seward plant | 371 | 408 | (37 | ) | ||||||||
GAAP Debt | $ | 2,355 | $ | 2,623 | $ | (268 | ) | |||||
Orion Power 12% notes purchase accounting adjustment | (5 | ) | (17 | ) | 12 | |||||||
REMA operating leases (off-balance sheet) | 423 | 443 | (20 | ) | ||||||||
Debt recorded in discontinued operations | — | 261 | (261 | ) | ||||||||
Gross Debt | $ | 2,773 | $ | 3,310 | $ | (537 | ) | |||||
Cash and cash equivalents | (943 | ) | (1,004 | ) | 61 | |||||||
Restricted cash | (24 | ) | (3 | ) | (21 | ) | ||||||
Net margin deposits and cash collateral | (260 | )(2) | (253 | )(3) | (7 | ) | ||||||
Net Debt | $ | 1,546 | $ | 2,050 | $ | (504 | ) | |||||
(1) | Orion Power 12% notes include purchase accounting adjustment of $5 million. | |
(2) | Includes $45 million related to discontinued operations and $20 million related to cash collateral. | |
(3) | Includes $295 million related to discontinued operations and $18 million related to cash collateral. |
Reference is made to RRI Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2009.
on Form 10-K for the year ended December 31, 2009.
FOR ADDITIONAL INQUIRIES PLEASE CONTACT:
Dennis Barber
(832) 357-3042
(832) 357-3042
10