Exhibit 99.1
FOR FURTHER INFORMATION: | Dennis Barber, investors | (713) 497-3042 |
| Pat Hammond, media | (713) 497-7723 |
|
|
|
FOR IMMEDIATE RELEASE: | August 2, 2007 |
|
Reliant Energy Reports Second Quarter Results
· Open and adjusted EBITDA consistent with outlook
· PJM 2008 auction results validate improving supply/demand fundamentals
· Increased 2008 and 2009 open EBITDA and free cash flow outlook
· Completed phase one of comprehensive refinancing plan
HOUSTON – Reliant Energy, Inc. reported open EBITDA of $193 million for the second quarter of 2007, compared to $258 million for the second quarter of 2006. Improved wholesale open contribution margin due to higher energy margins was more than offset by lower retail contribution margin. Retail contribution margin declined due to lower unit gross margins and reduced volumes, primarily due to milder weather. Adjusted EBITDA, which includes the effect of historical and operational wholesale hedges and gains on sales of emission allowances, was $165 million for the second quarter of 2007, compared to $174 million for the second quarter of 2006.
“This quarter has been marked by significant progress in implementing the strategic plan that we announced in March,” said Mark Jacobs, president and chief executive officer. “The completion of the first phase of our comprehensive refinancing plan is a major step in creating the capital structure to support our business objectives in the future. In addition, results of the recently announced PJM capacity auction have reinforced our view that tightening supply and demand fundamentals will continue to improve the outlook for our wholesale business.”
Open EBITDA was $307 million for the first six months of 2007 compared to $303 million for the same period of 2006. Adjusted EBITDA was $246 million for the first six months of 2007 compared to $250 million for the same period of 2006. During the first six months of 2007, the company reported free cash flow used in continuing operations of $142 million, compared to $116 million for the same period of 2006.
On a GAAP basis, the loss from continuing operations before income taxes was $456 million for the second quarter of 2007, compared to income from continuing operations before income taxes of $39 million for the same period of 2006. The second quarter 2007 loss from continuing operations before income taxes includes net unrealized losses from energy derivatives of $326 million and a $71 million charge for debt extinguishment premium and consent fees. Income from continuing operations before income taxes for the second quarter of 2006 includes $52 million of net unrealized gains from energy derivatives. Interest expense in the second quarter of 2007 includes the amortization of $42 million of deferred financing costs, including $39 million related to the June refinancing, compared to $4 million for the same period of 2006.
On a GAAP basis, the loss from continuing operations before income taxes for the first six months of 2007 was $44 million, compared to $42 million for the same period of 2006. The
1
reported numbers include net gains from unrealized energy derivatives of $196 million and $75 million, respectively, for 2007 and 2006. The 2007 loss from continuing operations before income taxes includes a $71 million charge for debt extinguishment premium and consent fees and a $22 million charge for western states and similar settlements. During the first half of 2007, the company reported cash provided by continuing operations from operating activities of $24 million, compared to a $115 million use of cash in continuing operations from operating activities for the same period of 2006.
OUTLOOK
Reliant Energy’s outlook for open EBITDA is $1,012 million, $1,420 million and $1,494 million for the years ending December 31, 2007, 2008 and 2009, respectively. Adjusted EBITDA, which includes the impact of historical and operational wholesale hedges and gains on the sales of emission allowances, net is $897 million, $1,336 million and $1,417 million for the same periods. The outlook for free cash flow provided by continuing operations is $231 million, $595 million and $869 million for the years ending December 31, 2007, 2008 and 2009, respectively.
This outlook is based on forward commodity prices as of June 22, 2007, and assumptions and estimates by Reliant Energy.
Open EBITDA
Outlook Reconciliation
($ millions) |
|
| 2007E |
| 2008E |
| 2009E |
| |||
Income (loss) from continuing operations before income taxes |
| $ | (6 | ) | $ | 540 |
| $ | 803 |
| |
Unrealized (gains) losses on energy derivatives |
| 58 |
| 108 |
| (15 | ) | ||||
Western States and similar settlements |
| 22 |
| — |
| — |
| ||||
Debt extinguishment premium and consent fees |
| 73 |
| — |
| — |
| ||||
Depreciation and amortization |
| 423 |
| 458 |
| 459 |
| ||||
Interest expense, net * |
| 327 |
| 230 |
| 170 |
| ||||
Adjusted EBITDA |
| $ | 897 |
| $ | 1,336 |
| $ | 1,417 |
| |
Historical and operational wholesale hedges |
| 117 |
| 84 |
| 77 |
| ||||
Gains on sales of assets and emission allowances, net |
| (2 | ) | — |
| — |
| ||||
Open EBITDA |
| $ | 1,012 |
| $ | 1,420 |
| $ | 1,494 |
|
* Reduced by $5, $20 and $37 million for 2007E, 2008E and 2009E, respectively for capitalized interest. 2007E includes $39 million amortization of deferred financing costs associated with completion of phase one of comprehensive refinancing plan during the second quarter.
2
Free Cash Flow from Continuing Operations
Outlook Reconciliation
($ millions) |
|
| 2007E |
| 2008E |
| 2009E |
| |||
Operating cash flow from continuing operations * |
| $ | 728 |
| $ | 1,187 |
| $ | 1,262 |
| |
Change in margin deposits, net |
| (244 | ) | (100 | ) | (31 | ) | ||||
Western States and similar settlements payments |
| 57 |
| — |
| — |
| ||||
Adjusted cash flow provided by continuing operations |
| $ | 541 |
| $ | 1,087 |
| $ | 1,231 |
| |
Capital expenditures ** |
| (229 | ) | (337 | ) | (213 | ) | ||||
Emission allowances activity, net |
| (81 | ) | (155 | ) | (149 | ) | ||||
Free cash flow provided by continuing operations |
| $ | 231 |
| $ | 595 |
| $ | 869 |
|
* Outlook assumes no changes in working capital.
** Includes capitalized interest of $5, $20 and $37 million for 2007E, 2008E and 2009E, respectively.
NON-GAAP FINANCIAL MEASURES
This press release and the attached financial tables include the following non-GAAP financial measures:
Retail gross margin*
Open energy gross margin
Open wholesale gross margin
Retail contribution margin
Wholesale open contribution margin
EBITDA
Adjusted EBITDA
Open EBITDA
Adjusted cash flow provided by (used in) continuing operations
Free cash flow provided by (used in) continuing operations
Net debt
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.
* Previously titled “adjusted retail gross margin.”
WEBCAST OF EARNINGS CONFERENCE CALL
Reliant Energy has scheduled its second-quarter 2007 earnings conference call for Thursday August 2, 2007, at 10 a.m. CT. Interested parties may listen to a live audio broadcast of the conference call at www.reliant.com in the investors section. A replay of the call can be accessed approximately two hours after the completion of the call. A copy of the presentation accompanying the call is also available at this Website address.
3
Reliant Energy, Inc. (NYSE: RRI) based in Houston, Texas, provides electricity and energy services to retail and wholesale customers in the United States. In Texas, the company provides service to approximately 1.9 million retail electricity customers, including residential and small business customers and commercial, industrial, governmental and institutional customers. Reliant also serves commercial, industrial, governmental and institutional customers in the PJM (Pennsylvania, New Jersey and Maryland) market.
The company is one of the largest independent power producers in the nation with approximately 16,000 megawatts of power generation capacity across the United States. These strategically located generating assets utilize natural gas, fuel oil and coal. For more information, visit www.reliant.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 and other financial items, and our plans and objectives for future operations or about our future economic performance, transactions and dispositions and financings related thereto. 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 and regulatory developments, the outcome of pending lawsuits, governmental proceedings and investigations, the effects of competition, financial market conditions, access to capital, the timing and extent of changes in commodity prices and interest rates, weather conditions 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.
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.
###
4
Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
(Thousands of Dollars, except per share amounts)
(Unaudited)
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| ||||||||
|
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Revenues: |
|
|
|
|
|
|
|
|
| ||||
Revenues (including $(10,848), $52,393, $3,722 and $201,899 unrealized gains (losses)) |
| $ | 2,649,915 |
| $ | 2,774,903 |
| $ | 5,012,516 |
| $ | 5,227,588 |
|
|
|
|
|
|
|
|
|
|
| ||||
Expenses: |
|
|
|
|
|
|
|
|
| ||||
Purchased power, fuel and cost of gas sold (including $(315,497), $(364), $192,162 and $(126,402) unrealized gains (losses)) |
| 2,475,716 |
| 2,233,908 |
| 3,919,207 |
| 4,483,957 |
| ||||
Operation and maintenance |
| 233,966 |
| 229,975 |
| 464,707 |
| 415,530 |
| ||||
Selling, general and administrative |
| 103,084 |
| 91,690 |
| 190,681 |
| 162,430 |
| ||||
Western states and similar settlements |
| — |
| — |
| 22,000 |
| — |
| ||||
Gains on sales of assets and emission allowances, net |
| (1,727 | ) | (4,854 | ) | (1,727 | ) | (156,330 | ) | ||||
Depreciation and amortization |
| 110,603 |
| 91,092 |
| 202,572 |
| 171,597 |
| ||||
Total operating expense |
| 2,921,642 |
| 2,641,811 |
| 4,797,440 |
| 5,077,184 |
| ||||
Operating Income (Loss) |
| (271,727 | ) | 133,092 |
| 215,076 |
| 150,404 |
| ||||
Other Income (Expense): |
|
|
|
|
|
|
|
|
| ||||
Income of equity investment, net |
| 1,366 |
| 2,061 |
| 2,526 |
| 2,387 |
| ||||
Debt extinguishment premium and consent fees |
| (71,269 | ) | — |
| (71,269 | ) | — |
| ||||
Other, net |
| (574 | ) | 744 |
| 494 |
| 829 |
| ||||
Interest expense |
| (121,975 | ) | (103,444 | ) | (209,045 | ) | (211,606 | ) | ||||
Interest income |
| 8,232 |
| 6,877 |
| 18,696 |
| 15,895 |
| ||||
Total other expense |
| (184,220 | ) | (93,762 | ) | (258,598 | ) | (192,495 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Income (Loss) from Continuing Operations Before Income Taxes |
| (455,947 | ) | 39,330 |
| (43,522 | ) | (42,091 | ) | ||||
Income tax expense (benefit) |
| (174,884 | ) | 16,603 |
| (22,822 | ) | 74,249 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income (Loss) from Continuing Operations |
| (281,063 | ) | 22,727 |
| (20,700 | ) | (116,340 | ) | ||||
Loss from discontinued operations |
| (1,889 | ) | (8,551 | ) | (3,541 | ) | (3,571 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Income (Loss) Before Cumulative Effect of Accounting Change |
| (282,952 | ) | 14,176 |
| (24,241 | ) | (119,911 | ) | ||||
Cumulative effect of accounting change, net of tax |
| — |
| — |
| — |
| 968 |
| ||||
Net Income (Loss) |
| $ | (282,952 | ) | $ | 14,176 |
| $ | (24,241 | ) | $ | (118,943 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Basic Earnings (Loss) Per Share: |
|
|
|
|
|
|
|
|
| ||||
Income (loss) from continuing operations |
| $ | (0.82 | ) | $ | 0.07 |
| $ | (0.06 | ) | $ | (0.38 | ) |
Loss from discontinued operations |
| (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.01 | ) | ||||
Cumulative effect of accounting change, net of tax |
| — |
| — |
| — |
| — |
| ||||
Net income (loss) |
| $ | (0.83 | ) | $ | 0.05 |
| $ | (0.07 | ) | $ | (0.39 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Diluted Earnings (Loss) Per Share: |
|
|
|
|
|
|
|
|
| ||||
Income (loss) from continuing operations |
| $ | (0.82 | ) | $ | 0.07 |
| $ | (0.06 | ) | $ | (0.38 | ) |
Loss from discontinued operations |
| (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.01 | ) | ||||
Cumulative effect of accounting change, net of tax |
| — |
| — |
| — |
| — |
| ||||
Net income (loss) |
| $ | (0.83 | ) | $ | 0.05 |
| $ | (0.07 | ) | $ | (0.39 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Weighted Average Common Shares Outstanding (in thousands): |
|
|
|
|
|
|
|
|
| ||||
- Basic |
| 342,074 |
| 306,780 |
| 340,717 |
| 306,208 |
| ||||
- Diluted |
| 342,074 |
| 342,592 |
| 340,717 |
| 306,208 |
|
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjusted and Open
(Millions of Dollars)
(Unaudited)
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| ||||||||||||||
|
| 2007 |
| 2006 |
| Change |
| 2007 |
| 2006 |
| Change |
| ||||||
Retail Energy: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenues |
| $ | 1,994 |
| $ | 2,217 |
| $ | (223 | ) | $ | 3,695 |
| $ | 3,904 |
| $ | (209 | ) |
Purchased power |
| 2,117 |
| 1,836 |
| 281 |
| 3,026 |
| 3,530 |
| (504 | ) | ||||||
Unrealized (gains) losses on energy derivatives |
| 360 |
| (34 | ) | 394 |
| (256 | ) | 30 |
| (286 | ) | ||||||
Gross margin - Retail Energy (1)(2) |
| 237 |
| 347 |
| (110 | ) | 413 |
| 404 |
| 9 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Operation and maintenance |
| 60 |
| 58 |
| 2 |
| 121 |
| 109 |
| 12 |
| ||||||
Selling and marketing |
| 30 |
| 30 |
| — |
| 60 |
| 54 |
| 6 |
| ||||||
Bad debt expense |
| 21 |
| 22 |
| (1 | ) | 38 |
| 36 |
| 2 |
| ||||||
Contribution margin - Retail Energy |
| 126 |
| 237 |
| (111 | ) | 194 |
| 205 |
| (11 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Unrealized gains (losses) on energy derivatives |
| (360 | ) | 34 |
| (394 | ) | 256 |
| (30 | ) | 286 |
| ||||||
Contribution margin, including unrealized gains/losses on energy derivatives (3) |
| (234 | ) | 271 |
| (505 | ) | 450 |
| 175 |
| 275 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Wholesale Energy: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenues |
| $ | 797 |
| $ | 698 |
| $ | 99 |
| $ | 1,545 |
| $ | 1,609 |
| $ | (64 | ) |
Purchased power |
| 500 |
| 538 |
| (38 | ) | 1,121 |
| 1,240 |
| (119 | ) | ||||||
Historical and operational wholesale hedges |
| 30 |
| 89 |
| (59 | ) | 63 |
| 209 |
| (146 | ) | ||||||
Unrealized (gains) losses on energy derivatives |
| (34 | ) | (18 | ) | (16 | ) | 60 |
| (105 | ) | 165 |
| ||||||
Open gross margin - Wholesale Energy (1) |
| 293 |
| 231 |
| 62 |
| 547 |
| 473 |
| 74 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Operation and maintenance |
| 175 |
| 173 |
| 2 |
| 345 |
| 307 |
| 38 |
| ||||||
Bad debt expense |
| — |
| — |
| — |
| (1 | ) | (3 | ) | 2 |
| ||||||
Open contribution margin - Wholesale Energy |
| 118 |
| 58 |
| 60 |
| 203 |
| 169 |
| 34 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Historical and operational wholesale hedges |
| (30 | ) | (89 | ) | 59 |
| (63 | ) | (209 | ) | 146 |
| ||||||
Unrealized gains (losses) on energy derivatives |
| 34 |
| 18 |
| 16 |
| (60 | ) | 105 |
| (165 | ) | ||||||
Contribution margin, including historical and operational wholesale hedges and unrealized gains/losses on energy derivatives (3) |
| 122 |
| (13 | ) | 135 |
| 80 |
| 65 |
| 15 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Other Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenues |
| $ | 4 |
| $ | — |
| $ | 4 |
| $ | 7 |
| $ | 1 |
| $ | 6 |
|
Purchased power |
| — |
| — |
| — |
| — |
| — |
| — |
| ||||||
Operation and maintenance |
| — |
| — |
| — |
| 1 |
| — |
| 1 |
| ||||||
Contribution margin - Other Operations (3) |
| 4 |
| — |
| 4 |
| 6 |
| 1 |
| 5 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Eliminations: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenues |
| $ | (145 | ) | $ | (140 | ) | $ | (5 | ) | $ | (235 | ) | $ | (286 | ) | $ | 51 |
|
Purchased power |
| (141 | ) | (140 | ) | (1 | ) | (228 | ) | (286 | ) | 58 |
| ||||||
Operation and maintenance |
| (2 | ) | — |
| (2 | ) | (3 | ) | — |
| (3 | ) | ||||||
Total |
| (2 | ) | — |
| (2 | ) | (4 | ) | — |
| (4 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Contribution margin - Retail Energy |
| 126 |
| 237 |
| (111 | ) | 194 |
| 205 |
| (11 | ) | ||||||
Open contribution margin - Wholesale Energy |
| 118 |
| 58 |
| 60 |
| 203 |
| 169 |
| 34 |
| ||||||
Contribution margin - Other Operations |
| 4 |
| — |
| 4 |
| 6 |
| 1 |
| 5 |
| ||||||
Eliminations |
| (2 | ) | — |
| (2 | ) | (4 | ) | — |
| (4 | ) | ||||||
Total |
| 246 |
| 295 |
| (49 | ) | 399 |
| 375 |
| 24 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Other general and administrative |
| (54 | ) | (40 | ) | (14 | ) | (95 | ) | (75 | ) | (20 | ) | ||||||
Income of equity investment, net |
| 2 |
| 2 |
| — |
| 3 |
| 2 |
| 1 |
| ||||||
Other, net |
| (1 | ) | 1 |
| (2 | ) | — |
| 1 |
| (1 | ) | ||||||
Open EBITDA |
| 193 |
| 258 |
| (65 | ) | 307 |
| 303 |
| 4 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Historical and operational wholesale hedges |
| (30 | ) | (89 | ) | 59 |
| (63 | ) | (209 | ) | 146 |
| ||||||
Gains on sales of assets and emission allowances, net |
| 2 |
| 5 |
| (3 | ) | 2 |
| 156 |
| (154 | ) | ||||||
Adjusted EBITDA |
| 165 |
| 174 |
| (9 | ) | 246 |
| 250 |
| (4 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Unrealized gains (losses) on energy derivatives |
| (326 | ) | 52 |
| (378 | ) | 196 |
| 75 |
| 121 |
| ||||||
Western states and similar settlements |
| — |
| — |
| — |
| (22 | ) | — |
| (22 | ) | ||||||
Debt extinguishment premium and consent fees |
| (71 | ) | — |
| (71 | ) | (71 | ) | — |
| (71 | ) | ||||||
EBITDA |
| (232 | ) | 226 |
| (458 | ) | 349 |
| 325 |
| 24 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Depreciation and amortization |
| (110 | ) | (91 | ) | (19 | ) | (202 | ) | (172 | ) | (30 | ) | ||||||
Interest expense |
| (122 | ) | (103 | ) | (19 | ) | (209 | ) | (211 | ) | 2 |
| ||||||
Interest income |
| 8 |
| 7 |
| 1 |
| 18 |
| 16 |
| 2 |
| ||||||
Income (loss) from continuing operations before income taxes |
| $ | (456 | ) | $ | 39 |
| $ | (495 | ) | $ | (44 | ) | $ | (42 | ) | $ | (2 | ) |
(1) |
| Gross margin (revenues less purchased power, fuel and cost of gas sold) excludes depreciation, amortization, labor and other product costs. |
(2) |
| Previously titled “adjusted retail gross margin” or “retail energy gross margin, excluding unrealized gains/losses on energy derivatives.” |
(3) |
| Segment profit or loss measure. |
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
Reliant Energy, Inc. and Subsidiaries
Consolidated Balance Sheets
(Thousands of Dollars)
|
| June 30, 2007 |
| December 31, 2006 |
| ||
|
| (Unaudited) |
|
|
| ||
ASSETS |
|
|
|
|
| ||
Current Assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 165,994 |
| $ | 463,909 |
|
Restricted cash |
| 5,334 |
| 24,980 |
| ||
Accounts and notes receivable, principally customer, net of allowance of $31,894 and $33,332 |
| 1,288,726 |
| 1,043,637 |
| ||
Inventory |
| 283,768 |
| 275,437 |
| ||
Derivative assets |
| 320,847 |
| 489,726 |
| ||
Margin deposits |
| 323,469 |
| 452,605 |
| ||
Accumulated deferred income taxes |
| 262,979 |
| 279,479 |
| ||
Prepayments and other current assets |
| 173,968 |
| 141,016 |
| ||
Current assets of discontinued operations |
| — |
| 2,460 |
| ||
Total current assets |
| 2,825,085 |
| 3,173,249 |
| ||
Property, plant and equipment, gross |
| 7,257,694 |
| 7,192,437 |
| ||
Accumulated depreciation |
| (1,576,153 | ) | (1,450,442 | ) | ||
Property, Plant and Equipment, net |
| 5,681,541 |
| 5,741,995 |
| ||
|
|
|
|
|
| ||
Other Assets: |
|
|
|
|
| ||
Goodwill |
| 379,644 |
| 381,594 |
| ||
Other intangibles, net |
| 410,495 |
| 423,745 |
| ||
Derivative assets |
| 180,256 |
| 203,857 |
| ||
Accumulated deferred income taxes |
| 109,458 |
| 87,858 |
| ||
Prepaid lease |
| 257,556 |
| 264,328 |
| ||
Other |
| 239,138 |
| 290,507 |
| ||
Total other assets |
| 1,576,547 |
| 1,651,889 |
| ||
Total Assets |
| $ | 10,083,173 |
| $ | 10,567,133 |
|
|
|
|
|
|
| ||
LIABILITIES AND EQUITY |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Liabilities: |
|
|
|
|
| ||
Current portion of long-term debt and short-term borrowings |
| $ | 381,011 |
| $ | 355,264 |
|
Accounts payable, principally trade |
| 845,316 |
| 664,630 |
| ||
Derivative liabilities |
| 841,538 |
| 1,164,809 |
| ||
Margin deposits |
| — |
| 16,490 |
| ||
Other |
| 405,462 |
| 488,764 |
| ||
Current liabilities of discontinued operations |
| 1,828 |
| 3,286 |
| ||
Total current liabilities |
| 2,475,155 |
| 2,693,243 |
| ||
|
|
|
|
|
| ||
Other Liabilities: |
|
|
|
|
| ||
Derivative liabilities |
| 282,945 |
| 420,534 |
| ||
Other |
| 308,471 |
| 324,145 |
| ||
Total other liabilities |
| 591,416 |
| 744,679 |
| ||
|
|
|
|
|
| ||
Long-term Debt |
| 2,987,441 |
| 3,177,691 |
| ||
Commitments and Contingencies |
|
|
|
|
| ||
Temporary Equity Stock-based Compensation |
| 2,620 |
| 1,647 |
| ||
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; 342,425,141 and 337,623,392 issued) |
| 103 |
| 99 |
| ||
Additional paid-in capital |
| 6,201,536 |
| 6,174,665 |
| ||
Retained deficit |
| (2,024,874 | ) | (2,026,316 | ) | ||
Accumulated other comprehensive loss |
| (150,224 | ) | (198,575 | ) | ||
Total stockholders’ equity |
| 4,026,541 |
| 3,949,873 |
| ||
Total Liabilities and Equity |
| $ | 10,083,173 |
| $ | 10,567,133 |
|
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
|
| Six Months Ended June 30, |
| ||||
|
| 2007 |
| 2006 |
| ||
|
| (in thousands) |
| ||||
Cash Flows from Operating Activities: |
|
|
|
|
| ||
Net loss |
| $ | (24,241 | ) | $ | (118,943 | ) |
Loss from discontinued operations |
| 3,541 |
| 3,571 |
| ||
Net loss from continuing operations and cumulative effect of accounting change |
| (20,700 | ) | (115,372 | ) | ||
Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating Activities: |
|
|
|
|
| ||
Cumulative effect of accounting change |
| — |
| (968 | ) | ||
Depreciation and amortization |
| 202,572 |
| 171,597 |
| ||
Deferred income taxes |
| (30,116 | ) | 68,644 |
| ||
Net changes in energy derivatives |
| (166,400 | ) | (43,342 | ) | ||
Amortization of deferred financing costs |
| 45,443 |
| 7,982 |
| ||
Gains on sales of assets and emission allowances, net |
| (1,727 | ) | (156,330 | ) | ||
Debt extinguishment premium and consent fees |
| 71,269 |
| — |
| ||
Other, net |
| 6,364 |
| 4,611 |
| ||
Changes in other assets and liabilities: |
|
|
|
|
| ||
Accounts and notes receivable, net |
| (212,797 | ) | (135,413 | ) | ||
Inventory |
| (18,390 | ) | 6,269 |
| ||
Margin deposits, net |
| 112,646 |
| 311,582 |
| ||
Net derivative assets and liabilities |
| (27,380 | ) | (137,484 | ) | ||
Western states and similar settlements payments |
| (35,000 | ) | (159,319 | ) | ||
Accounts payable |
| 206,017 |
| 35,514 |
| ||
Other current assets |
| (24,432 | ) | 8,304 |
| ||
Other assets |
| (2,980 | ) | 14,663 |
| ||
Taxes payable/receivable |
| (7,444 | ) | (29,884 | ) | ||
Other current liabilities |
| (75,353 | ) | 31,285 |
| ||
Other liabilities |
| 2,493 |
| 2,845 |
| ||
Net cash provided by (used in) continuing operations from operating activities |
| 24,085 |
| (114,816 | ) | ||
Net cash used in discontinued operations from operating activities |
| (2,540 | ) | (36,997 | ) | ||
Net cash provided by (used in) operating activities |
| 21,545 |
| (151,813 | ) | ||
Cash Flows from Investing Activities: |
|
|
|
|
| ||
Capital expenditures |
| (99,172 | ) | (41,919 | ) | ||
Proceeds from sales of assets, net |
| 380 |
| 1,382 |
| ||
Proceeds from sales of emission allowances |
| 3,346 |
| 197,201 |
| ||
Purchases of emission allowances |
| (14,127 | ) | (3,273 | ) | ||
Restricted cash |
| 19,646 |
| 17,033 |
| ||
Other, net |
| 1,750 |
| 4,750 |
| ||
Net cash provided by (used in) continuing operations from investing activities |
| (88,177 | ) | 175,174 |
| ||
Net cash provided by discontinued operations from investing activities |
| — |
| 967,568 |
| ||
Net cash provided by (used in) investing activities |
| (88,177 | ) | 1,142,742 |
| ||
Cash Flows from Financing Activities: |
|
|
|
|
| ||
Payments of long-term debt |
| (1,465,891 | ) | (326,201 | ) | ||
Proceeds from long-term debt |
| 1,300,000 |
| — |
| ||
Increase (decrease) in short-term borrowings and revolving credit facilities, net |
| 6,554 |
| (55,337 | ) | ||
Payments of financing costs |
| (29,634 | ) | — |
| ||
Payments of debt extinguishment premium and consent fees |
| (71,269 | ) | — |
| ||
Proceeds from issuances of stock |
| 28,957 |
| 10,031 |
| ||
Net cash used in continuing operations from financing activities |
| (231,283 | ) | (371,507 | ) | ||
Net cash used in discontinued operations from financing activities |
| — |
| (638,000 | ) | ||
Net cash used in financing activities |
| (231,283 | ) | (1,009,507 | ) | ||
Net Change in Cash and Cash Equivalents |
| (297,915 | ) | (18,578 | ) | ||
Cash and Cash Equivalents at Beginning of Period |
| 463,909 |
| 88,397 |
| ||
Cash and Cash Equivalents at End of Period |
| $ | 165,994 |
| $ | 69,819 |
|
Free Cash Flow Reconciliation
(Unaudited)
|
| Six Months Ended June 30, |
| ||||
|
| 2007 |
| 2006 |
| ||
|
| (in millions) |
| ||||
|
|
|
|
|
| ||
Operating cash flow from continuing operations |
| $ | 24 |
| $ | (115 | ) |
Western states and similar settlements payments |
| 57 |
| 159 |
| ||
Change in margin deposits, net |
| (113 | ) | (312 | ) | ||
Adjusted cash flow used in continuing operations |
| (32 | ) | (268 | ) | ||
Capital expenditures |
| (99 | ) | (42 | ) | ||
Proceeds from sales of emission allowances |
| 3 |
| 197 |
| ||
Purchases of emission allowances |
| (14 | ) | (3 | ) | ||
Free cash flow used in continuing operations |
| $ | (142 | ) | $ | (116 | ) |
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
Reliant Energy, Inc. and Subsidiaries
Retail Energy Data
(Unaudited)
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| ||||||||||||||
|
| 2007 |
| 2006 |
| Change |
| 2007 |
| 2006 |
| Change |
| ||||||
|
|
|
| (in millions) |
|
|
|
|
| (in millions) |
|
|
| ||||||
Mass gross margin |
| $ | 201 |
| $ | 272 |
| $ | (71 | ) | $ | 356 |
| $ | 297 |
| $ | 59 |
|
Commercial and industrial gross margin |
| 52 |
| 88 |
| (36 | ) | 68 |
| 108 |
| (40 | ) | ||||||
Market usage adjustments |
| (16 | ) | (13 | ) | (3 | ) | (11 | ) | (1 | ) | (10 | ) | ||||||
Retail gross margin (1) |
| 237 |
| 347 |
| (110 | ) | 413 |
| 404 |
| 9 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Operation and maintenance |
| (60 | ) | (58 | ) | (2 | ) | (121 | ) | (109 | ) | (12 | ) | ||||||
Selling and marketing |
| (30 | ) | (30 | ) | — |
| (60 | ) | (54 | ) | (6 | ) | ||||||
Bad debt expense |
| (21 | ) | (22 | ) | 1 |
| (38 | ) | (36 | ) | (2 | ) | ||||||
Retail contribution margin |
| 126 |
| 237 |
| (111 | ) | 194 |
| 205 |
| (11 | ) | ||||||
Unrealized gains (losses) on energy derivatives |
| (360 | ) | 34 |
| (394 | ) | 256 |
| (30 | ) | 286 |
| ||||||
Total retail energy contribution margin, including unrealized gains/losses on energy derivatives (2) |
| $ | (234 | ) | $ | 271 |
| $ | (505 | ) | $ | 450 |
| $ | 175 |
| $ | 275 |
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| ||||
|
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
| (gigawatt hours) |
| (gigawatt hours) |
| ||||
Electricity Sales to End-Use Retail Customers: |
|
|
|
|
|
|
|
|
|
Mass: |
|
|
|
|
|
|
|
|
|
Residential: |
|
|
|
|
|
|
|
|
|
Houston |
| 3,542 |
| 4,572 |
| 6,187 |
| 7,399 |
|
Non-Houston |
| 1,923 |
| 2,013 |
| 3,849 |
| 3,502 |
|
Small Business: |
|
|
|
|
|
|
|
|
|
Houston |
| 756 |
| 954 |
| 1,471 |
| 1,719 |
|
Non-Houston |
| 365 |
| 382 |
| 668 |
| 652 |
|
Total Mass |
| 6,586 |
| 7,921 |
| 12,175 |
| 13,272 |
|
Commercial and Industrial: |
|
|
|
|
|
|
|
|
|
ERCOT (3) |
| 9,052 |
| 8,631 |
| 17,062 |
| 16,147 |
|
Non-ERCOT |
| 1,106 |
| 1,539 |
| 2,085 |
| 3,143 |
|
Total Commercial and Industrial |
| 10,158 |
| 10,170 |
| 19,147 |
| 19,290 |
|
|
|
|
|
|
|
|
|
|
|
Market usage adjustments |
| 28 |
| (62 | ) | (73 | ) | 11 |
|
Total |
| 16,772 |
| 18,029 |
| 31,249 |
| 32,573 |
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| ||||
|
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
| (in thousands, metered locations) |
| (in thousands, metered locations) |
| ||||
Weighted Average Retail Customer Count: |
|
|
|
|
|
|
|
|
|
Mass: |
|
|
|
|
|
|
|
|
|
Residential: |
|
|
|
|
|
|
|
|
|
Houston |
| 1,066 |
| 1,189 |
| 1,074 |
| 1,201 |
|
Non-Houston |
| 565 |
| 490 |
| 560 |
| 480 |
|
Small Business: |
|
|
|
|
|
|
|
|
|
Houston |
| 117 |
| 134 |
| 119 |
| 135 |
|
Non-Houston |
| 35 |
| 27 |
| 34 |
| 28 |
|
Total Mass |
| 1,783 |
| 1,840 |
| 1,787 |
| 1,844 |
|
Commercial and Industrial: |
|
|
|
|
|
|
|
|
|
ERCOT (3) |
| 87 |
| 75 |
| 85 |
| 74 |
|
Non-ERCOT |
| 2 |
| 2 |
| 2 |
| 2 |
|
Total Commercial and Industrial |
| 89 |
| 77 |
| 87 |
| 76 |
|
Total |
| 1,872 |
| 1,917 |
| 1,874 |
| 1,920 |
|
|
| June 30, |
| December 31, |
|
|
| 2007 |
| 2006 |
|
|
| (in thousands, metered locations) |
| ||
Retail Customers: |
|
|
|
|
|
Mass: |
|
|
|
|
|
Residential: |
|
|
|
|
|
Houston |
| 1,058 |
| 1,095 |
|
Non-Houston |
| 567 |
| 547 |
|
Small Business: |
|
|
|
|
|
Houston |
| 115 |
| 124 |
|
Non-Houston |
| 36 |
| 33 |
|
Total Mass |
| 1,776 |
| 1,799 |
|
Commercial and Industrial: |
|
|
|
|
|
ERCOT (3) |
| 89 |
| 75 |
|
Non-ERCOT |
| 2 |
| 1 |
|
Total Commercial and Industrial |
| 91 |
| 76 |
|
Total |
| 1,867 |
| 1,875 |
|
(1) | Previously titled “adjusted retail gross margin” or “retail energy gross margin, excluding unrealized gains/losses on energy derivatives.” |
(2) | Segment profit or loss measure. |
(3) | Includes customers of the Texas General Land Office for whom we provide services. |
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
Reliant Energy, Inc. and Subsidiaries
Wholesale Energy Data
(Unaudited)
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| ||||||||||||||||
|
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| ||||||||||||
|
| GWh |
| % Economic (1) |
| GWh |
| % Economic (1) |
| GWh |
| % Economic (1) |
| GWh |
| % Economic (1) |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
PJM Coal |
| 6,028.7 |
| 83 | % | 5,847.6 |
| 81 | % | 12,127.1 |
| 84 | % | 11,692.4 |
| 81 | % | ||||
MISO Coal |
| 2,063.3 |
| 75 | % | 1,748.4 |
| 63 | % | 4,244.7 |
| 78 | % | 3,040.3 |
| 55 | % | ||||
PJM/MISO Gas |
| 349.8 |
| 5 | % | 248.0 |
| 4 | % | 417.1 |
| 3 | % | 286.4 |
| 2 | % | ||||
West |
| 899.3 |
| 13 | % | 345.8 |
| 5 | % | 908.0 |
| 7 | % | 1,270.8 |
| 9 | % | ||||
Other (3) |
| 1,413.3 |
| 69 | % | 1,467.3 |
| 91 | % | 2,750.3 |
| 67 | % | 2,874.5 |
| 88 | % | ||||
Total |
| 10,754.4 |
| 41 | % | 9,657.1 |
| 39 | % | 20,447.2 |
| 39 | % | 19,164.4 |
| 37 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Commercial Capacity Factor (4): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
PJM Coal |
| 75.9 | % |
|
| 70.6 | % |
|
| 77.6 | % |
|
| 78.3 | % |
|
| ||||
MISO Coal |
| 51.3 | % |
|
| 77.1 | % |
|
| 56.4 | % |
|
| 84.7 | % |
|
| ||||
PJM/MISO Gas |
| 88.8 | % |
|
| 90.7 | % |
|
| 83.8 | % |
|
| 77.4 | % |
|
| ||||
West |
| 95.1 | % |
|
| 87.9 | % |
|
| 94.9 | % |
|
| 96.5 | % |
|
| ||||
Other |
| 91.9 | % |
|
| 94.3 | % |
|
| 91.4 | % |
|
| 88.8 | % |
|
| ||||
Total |
| 75.3 | % |
|
| 76.5 | % |
|
| 75.9 | % |
|
| 82.1 | % |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Generation Volume (5): |
| GWh |
|
|
| GWh |
|
|
| GWh |
|
|
| GWh |
|
|
| ||||
PJM Coal |
| 4,575.2 |
|
|
| 4,128.1 |
|
|
| 9,407.4 |
|
|
| 9,158.4 |
|
|
| ||||
MISO Coal |
| 1,058.7 |
|
|
| 1,347.6 |
|
|
| 2,395.0 |
|
|
| 2,573.7 |
|
|
| ||||
PJM/MISO Gas |
| 310.5 |
|
|
| 224.9 |
|
|
| 349.6 |
|
|
| 221.6 |
|
|
| ||||
West |
| 855.5 |
|
|
| 304.1 |
|
|
| 861.4 |
|
|
| 1,226.4 |
|
|
| ||||
Other |
| 1,298.7 |
|
|
| 1,383.4 |
|
|
| 2,512.9 |
|
|
| 2,553.5 |
|
|
| ||||
Total |
| 8,098.6 |
|
|
| 7,388.1 |
|
|
| 15,526.3 |
|
|
| 15,733.6 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Unit Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
PJM Coal |
| $ | 32.57 |
|
|
| $ | 26.16 |
|
|
| $ | 31.68 |
|
|
| $ | 26.97 |
|
|
|
MISO Coal |
| 30.23 |
|
|
| 19.29 |
|
|
| 28.81 |
|
|
| 21.37 |
|
|
| ||||
PJM/MISO Gas |
| 28.99 |
|
|
| 40.02 |
|
|
| 28.60 |
|
|
| 40.61 |
|
|
| ||||
West |
| — |
|
|
| NM | (7) |
|
| NM | (7) |
|
| NM | (7) |
|
| ||||
Other |
| 5.39 |
|
|
| — |
|
|
| 5.57 |
|
|
| NM | (7) |
|
| ||||
Weighted Average Total |
| $ | 24.33 |
|
|
| $ | 18.95 |
|
|
| $ | 24.93 |
|
|
| $ | 19.58 |
|
|
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| ||||||||||||||
|
| 2007 |
| 2006 |
| Change |
| 2007 |
| 2006 |
| Change |
| ||||||
|
| (in millions) |
| (in millions) |
| ||||||||||||||
Open energy gross margin (8): |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
PJM Coal |
| $ | 149 |
| $ | 108 |
| $ | 41 |
| $ | 298 |
| $ | 247 |
| $ | 51 |
|
MISO Coal |
| 32 |
| 26 |
| 6 |
| 69 |
| 55 |
| 14 |
| ||||||
PJM/MISO Gas |
| 9 |
| 9 |
| — |
| 10 |
| 9 |
| 1 |
| ||||||
West |
| — |
| (3 | ) | 3 |
| (4 | ) | (2 | ) | (2 | ) | ||||||
Other |
| 7 |
| — |
| 7 |
| 14 |
| (1 | ) | 15 |
| ||||||
Total |
| 197 |
| 140 |
| 57 |
| 387 |
| 308 |
| 79 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Other margin (9): |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
PJM Coal |
| 15 |
| 7 |
| 8 |
| 22 |
| 16 |
| 6 |
| ||||||
MISO Coal |
| 3 |
| 2 |
| 1 |
| 5 |
| 3 |
| 2 |
| ||||||
PJM/MISO Gas |
| 25 |
| 8 |
| 17 |
| 36 |
| 11 |
| 25 |
| ||||||
West |
| 36 |
| 46 |
| (10 | ) | 59 |
| 83 |
| (24 | ) | ||||||
Other |
| 17 |
| 28 |
| (11 | ) | 38 |
| 52 |
| (14 | ) | ||||||
Total |
| 96 |
| 91 |
| 5 |
| 160 |
| 165 |
| (5 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Open wholesale gross margin |
| 293 |
| 231 |
| 62 |
| 547 |
| 473 |
| 74 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Operation and maintenance |
| (175 | ) | (173 | ) | (2 | ) | (345 | ) | (307 | ) | (38 | ) | ||||||
Bad debt expense |
| — |
| — |
| — |
| 1 |
| 3 |
| (2 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Wholesale open contribution margin |
| 118 |
| 58 |
| 60 |
| 203 |
| 169 |
| 34 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Historical and operational wholesale hedges |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Power |
| (55 | ) | (65 | ) | 10 |
| (111 | ) | (180 | ) | 69 |
| ||||||
Fuel |
| 5 |
| 5 |
| — |
| 10 |
| 12 |
| (2 | ) | ||||||
Tolling/Other |
| 20 |
| (29 | ) | 49 |
| 38 |
| (41 | ) | 79 |
| ||||||
Total historical and operational wholesale hedges |
| (30 | ) | (89 | ) | 59 |
| (63 | ) | (209 | ) | 146 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Unrealized gains (losses) on energy derivatives |
| 34 |
| 18 |
| 16 |
| (60 | ) | 105 |
| (165 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total wholesale energy contribution margin, including historical and operational wholesale hedges and unrealized gains/losses on energy derivatives (10) |
| $ | 122 |
| $ | (13 | ) | $ | 135 |
| $ | 80 |
| $ | 65 |
| $ | 15 |
|
(1) Represents economic generation volume (hours) divided by maximum generation hours (maximum plant capacity X 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) Includes maximum generation hours from certain units in 2007 that were excluded in 2006 because a purchase power agreement was in place during that period.
(4) Generation volume divided by economic generation volume.
(5) Excludes generation volume related to power purchase agreements, including tolling agreements.
(6) Represents open energy gross margin divided by generation volume.
(7) NM is not meaningful.
(8) Open energy gross margin is calculated using the power sales prices received by the plants less delivered spot fuel prices. This figure excludes the effects of other margin and our historical and operational wholesale hedges.
(9) Other margin represents power purchase agreements, capacity payments, ancillary revenues and selective commercial hedge strategies.
(10) Wholesale energy segment profit and loss measure.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
Reliant Energy, Inc. and Subsidiaries
PJM Coal and MISO Coal (1)
(Unaudited)
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 economic generation volume (GWh) |
| Q2 commercial capacity factor |
| Q2 generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cheswick |
| 580 |
| 10.0 |
| 966.1 |
| 933.9 |
| 53.0 | % | 31.1 | % | 512.2 |
| 290.0 |
|
Conemaugh (2) |
| 280 |
| 9.4 |
| 590.8 |
| 603.7 |
| 74.7 | % | 99.9 | % | 441.4 |
| 603.1 |
|
Elrama |
| 465 |
| 11.3 |
| 764.4 |
| 708.7 |
| 61.4 | % | 49.4 | % | 469.2 |
| 350.1 |
|
Keystone (2) |
| 282 |
| 9.5 |
| 595.7 |
| 585.8 |
| 95.1 | % | 83.8 | % | 566.5 |
| 490.7 |
|
Portland |
| 400 |
| 9.8 |
| 676.7 |
| 611.1 |
| 66.2 | % | 86.8 | % | 447.7 |
| 530.2 |
|
Seward |
| 521 |
| 9.6 |
| 1,052.8 |
| 1,082.4 |
| 82.6 | % | 59.5 | % | 870.1 |
| 643.5 |
|
Shawville (2) |
| 566 |
| 10.3 |
| 1,009.6 |
| 1,008.3 |
| 91.3 | % | 90.7 | % | 921.5 |
| 914.6 |
|
Titus |
| 246 |
| 10.8 |
| 372.6 |
| 313.7 |
| 93.0 | % | 97.5 | % | 346.6 |
| 305.9 |
|
PJM Coal Total |
| 3,340 |
|
|
| 6,028.7 |
| 5,847.6 |
| 75.9 | % | 70.6 | % | 4,575.2 |
| 4,128.1 |
|
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 economic generation volume (GWh) |
| Q2 commercial capacity factor |
| Q2 generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avon Lake |
| 721 |
| 9.3 |
| 1,197.7 |
| 1,064.2 |
| 38.1 | % | 82.9 | % | 456.2 |
| 882.5 |
|
New Castle |
| 328 |
| 10.6 |
| 491.5 |
| 414.9 |
| 53.9 | % | 67.2 | % | 264.7 |
| 278.8 |
|
Niles |
| 216 |
| 10.5 |
| 374.1 |
| 269.3 |
| 90.3 | % | 69.2 | % | 337.8 |
| 186.3 |
|
MISO Coal Total |
| 1,265 |
|
|
| 2,063.3 |
| 1,748.4 |
| 51.3 | % | 77.1 | % | 1,058.7 |
| 1,347.6 |
|
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 YTD economic generation volume (GWh) |
| Q2 YTD commercial capacity factor |
| Q2 YTD generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cheswick |
| 580 |
| 10.0 |
| 1,884.1 |
| 1,765.0 |
| 72.1 | % | 63.3 | % | 1,358.5 |
| 1,116.5 |
|
Conemaugh (2) |
| 280 |
| 9.4 |
| 1,186.5 |
| 1,206.5 |
| 83.6 | % | 97.7 | % | 992.3 |
| 1,179.2 |
|
Elrama |
| 465 |
| 11.3 |
| 1,611.9 |
| 1,549.2 |
| 66.9 | % | 65.5 | % | 1,079.0 |
| 1,014.1 |
|
Keystone (2) |
| 282 |
| 9.5 |
| 1,182.5 |
| 1,153.4 |
| 81.4 | % | 81.5 | % | 962.3 |
| 940.2 |
|
Portland |
| 400 |
| 9.8 |
| 1,356.5 |
| 1,227.5 |
| 72.8 | % | 90.5 | % | 987.5 |
| 1,110.9 |
|
Seward |
| 521 |
| 9.6 |
| 2,118.9 |
| 2,191.6 |
| 68.0 | % | 65.4 | % | 1,440.9 |
| 1,434.2 |
|
Shawville (2) |
| 566 |
| 10.3 |
| 2,054.5 |
| 1,973.4 |
| 92.9 | % | 89.7 | % | 1,909.2 |
| 1,770.8 |
|
Titus |
| 246 |
| 10.8 |
| 732.2 |
| 625.8 |
| 92.6 | % | 94.7 | % | 677.7 |
| 592.5 |
|
PJM Coal Total |
| 3,340 |
|
|
| 12,127.1 |
| 11,692.4 |
| 77.6 | % | 78.3 | % | 9,407.4 |
| 9,158.4 |
|
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 YTD economic generation volume (GWh) |
| Q2 YTD commercial capacity factor |
| Q2 YTD generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avon Lake |
| 721 |
| 9.3 |
| 2,502.2 |
| 1,867.2 |
| 43.0 | % | 88.2 | % | 1,075.9 |
| 1,646.6 |
|
New Castle |
| 328 |
| 10.6 |
| 999.2 |
| 651.9 |
| 66.0 | % | 76.7 | % | 659.6 |
| 500.2 |
|
Niles |
| 216 |
| 10.5 |
| 743.3 |
| 521.2 |
| 88.7 | % | 81.9 | % | 659.5 |
| 426.9 |
|
MISO Coal Total |
| 1,265 |
|
|
| 4,244.7 |
| 3,040.3 |
| 56.4 |
| 84.7 | % | 2,395.0 |
| 2,573.7 |
|
(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 Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
Reliant Energy, Inc. and Subsidiaries
PJM/MISO Gas (1)
(Unaudited)
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 economic generation volume (GWh) |
| Q2 commercial capacity factor |
| Q2 generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aurora (2) |
| 942 |
| 10.5 |
| 11.9 |
| 3.8 |
| 69.7 | % | 28.9 | % | 8.3 |
| 1.1 |
|
Blossburg |
| 23 |
| 14.6 |
| 0.8 |
| 0.3 |
| 100.0 | % | 100.0 | % | 0.8 |
| 0.3 |
|
Brunot Island |
| 315 |
| 10.4 |
| 2.9 |
| — |
| 100.0 | % | 0.0 | % | 2.9 |
| (1.1 | ) |
Gilbert |
| 614 |
| 11.0 |
| 16.9 |
| 14.7 |
| 38.5 | % | 30.6 | % | 6.5 |
| 4.5 |
|
Glen Gardner |
| 184 |
| 14.6 |
| 2.0 |
| 1.8 |
| 100.0 | % | 88.9 | % | 2.0 |
| 1.6 |
|
Hamilton |
| 23 |
| 14.8 |
| 1.7 |
| 0.1 |
| 100.0 | % | 100.0 | % | 1.7 |
| 0.1 |
|
Hunterstown |
| 70 |
| 14.8 |
| 5.2 |
| 0.5 |
| 98.1 | % | 100.0 | % | 5.1 |
| 0.5 |
|
Hunterstown CCGT |
| 833 |
| 7.0 |
| 258.6 |
| 214.3 |
| 94.0 | % | 97.0 | % | 243.0 |
| 207.9 |
|
Mountain |
| 47 |
| 14.3 |
| 4.3 |
| 0.8 |
| 100.0 | % | 100.0 | % | 4.3 |
| 0.8 |
|
Orrtanna |
| 23 |
| 14.4 |
| 2.5 |
| 0.3 |
| 100.0 | % | 100.0 | % | 2.5 |
| 0.3 |
|
Portland |
| 185 |
| 11.2 |
| 3.6 |
| 1.6 |
| 100.0 | % | 87.5 | % | 3.6 |
| 1.4 |
|
Sayreville |
| 264 |
| 13.8 |
| 9.0 |
| 4.4 |
| 23.3 | % | 75.0 | % | 2.1 |
| 3.3 |
|
Shawnee |
| 23 |
| 14.0 |
| — |
| — |
| 0.0 | % | 0.0 | % | (0.1 | ) | — |
|
Shawville 5-7 (3) |
| 6 |
| 10.2 |
| — |
| — |
| 0.0 | % | 0.0 | % | — |
| — |
|
Titus |
| 35 |
| 17.4 |
| — |
| — |
| 0.0 | % | 0.0 | % | (0.6 | ) | (1.2 | ) |
Tolna |
| 47 |
| 14.2 |
| 3.2 |
| 0.7 |
| 100.0 | % | 100.0 | % | 3.2 |
| 0.7 |
|
Werner |
| 252 |
| 13.8 |
| 8.9 |
| 0.1 |
| 87.6 | % | 100.0 | % | 7.8 |
| 0.1 |
|
Shelby |
| 356 |
| 9.8 |
| 18.3 |
| 4.6 |
| 95.1 | % | 100.0 | % | 17.4 |
| 4.6 |
|
PJM/MISO Gas Total |
| 4,242 |
|
|
| 349.8 |
| 248.0 |
| 88.8 | % | 90.7 | % | 310.5 |
| 224.9 |
|
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 YTD economic generation volume (GWh) |
| Q2 YTD commercial capacity factor |
| Q2 YTD generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aurora (2) |
| 942 |
| 10.5 |
| 15.6 |
| 7.0 |
| 53.2 | % | 15.7 | % | 8.3 |
| 1.1 |
|
Blossburg |
| 23 |
| 14.6 |
| 4.0 |
| 1.2 |
| 100.0 | % | 100.0 | % | 4.0 |
| 1.2 |
|
Brunot Island |
| 315 |
| 10.4 |
| 3.7 |
| — |
| 100.0 | % | 0.0 | % | 3.7 |
| (3.0 | ) |
Gilbert |
| 614 |
| 11.0 |
| 25.1 |
| 43.6 |
| 47.0 | % | 19.7 | % | 11.8 |
| 8.6 |
|
Glen Gardner |
| 184 |
| 14.6 |
| 2.2 |
| 2.0 |
| 100.0 | % | 90.0 | % | 2.2 |
| 1.8 |
|
Hamilton |
| 23 |
| 14.8 |
| 1.7 |
| 0.2 |
| 100.0 | % | 100.0 | % | 1.7 |
| 0.2 |
|
Hunterstown |
| 70 |
| 14.8 |
| 5.2 |
| 0.6 |
| 96.2 | % | 100.0 | % | 5.0 |
| 0.6 |
|
Hunterstown CCGT |
| 833 |
| 7.0 |
| 302.8 |
| 214.3 |
| 88.4 | % | 94.4 | % | 267.7 |
| 202.4 |
|
Mountain |
| 47 |
| 14.3 |
| 5.5 |
| 1.4 |
| 100.0 | % | 100.0 | % | 5.5 |
| 1.4 |
|
Orrtanna |
| 23 |
| 14.4 |
| 3.0 |
| 0.3 |
| 100.0 | % | 100.0 | % | 3.0 |
| 0.3 |
|
Portland |
| 185 |
| 11.2 |
| 6.8 |
| 1.8 |
| 100.0 | % | 77.8 | % | 6.8 |
| 1.4 |
|
Sayreville |
| 264 |
| 13.8 |
| 9.7 |
| 4.8 |
| 18.6 | % | 58.3 | % | 1.8 |
| 2.8 |
|
Shawnee |
| 23 |
| 14.0 |
| 0.1 |
| — |
| 0.0 | % | 0.0 | % | — |
| (0.1 | ) |
Shawville 5-7 (3) |
| 6 |
| 10.2 |
| — |
| — |
| 0.0 | % | 0.0 | % | (0.1 | ) | — |
|
Titus |
| 35 |
| 17.4 |
| — |
| — |
| 0.0 | % | 0.0 | % | (1.5 | ) | (1.7 | ) |
Tolna |
| 47 |
| 14.2 |
| 4.0 |
| 0.9 |
| 100.0 | % | 100.0 | % | 4.0 |
| 0.9 |
|
Werner |
| 252 |
| 13.8 |
| 9.4 |
| 0.1 |
| 88.3 | % | 0.0 | % | 8.3 |
| (0.4 | ) |
Shelby |
| 356 |
| 9.8 |
| 18.3 |
| 8.2 |
| 95.1 | % | 50.0 | % | 17.4 |
| 4.1 |
|
PJM/MISO Gas Total |
| 4,242 |
|
|
| 417.1 |
| 286.4 |
| 83.8 | % | 77.4 | % | 349.6 |
| 221.6 |
|
(1) Unless otherwise indicated, the Company owns a 100% interest in each facility listed.
(2) Excludes generation volume during periods the unit operated under power purchase agreements.
(3) The Company leases a 100% interest in the Shawville facility under a facility interest lease agreement, which expires in 2026.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
Reliant Energy, Inc. and Subsidiaries
West and Other (1)
(Unaudited)
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 economic generation volume (GWh) |
| Q2 commercial capacity factor |
| Q2 generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bighorn (2) |
| 598 |
| 7.2 |
| 517.0 |
| 16.7 |
| 100.0 | % | 79.6 | % | 517.0 |
| 13.3 |
|
Coolwater |
| 622 |
| 10.1 |
| 136.6 |
| 110.8 |
| 96.3 | % | 99.3 | % | 131.6 |
| 110.0 |
|
Ellwood (2) |
| 54 |
| 13.3 |
| — |
| — |
| 0.0 | % | 0.0 | % | (0.1 | ) | — |
|
Etiwanda (2) |
| 640 |
| 10.0 |
| 0.4 |
| — |
| 100.0 | % | 0.0 | % | 0.4 |
| — |
|
Mandalay (2) |
| 560 |
| 10.9 |
| 111.7 |
| 79.8 |
| 99.4 | % | 96.1 | % | 111.0 |
| 76.7 |
|
Ormond Beach |
| 1,516 |
| 9.6 |
| 133.6 |
| 138.5 |
| 71.6 | % | 75.2 | % | 95.6 |
| 104.1 |
|
West Total |
| 3,990 |
|
|
| 899.3 |
| 345.8 |
| 95.1 | % | 87.9 | % | 855.5 |
| 304.1 |
|
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 economic generation volume (GWh) |
| Q2 commercial capacity factor |
| Q2 generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Channelview (2) |
| 830 |
| 6.1 |
| 1,398.4 |
| 1,461.3 |
| 91.8 | % | 94.3 | % | 1,283.8 |
| 1,377.4 |
|
Choctaw |
| 800 |
| 7.0 |
| 13.9 |
| — |
| 100.0 | % | 0.0 | % | 13.9 |
| — |
|
Indian River (2) |
| 587 |
| 10.5 |
| — |
| — |
| 0.0 | % | 0.0 | % | — |
| — |
|
Osceola (2) |
| 470 |
| 11.0 |
| 1.0 |
| 6.0 |
| 100.0 | % | 100.0 | % | 1.0 |
| 6.0 |
|
Other Total |
| 2,687 |
|
|
| 1,413.3 |
| 1,467.3 |
| 91.9 | % | 94.3 | % | 1,298.7 |
| 1,383.4 |
|
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 YTD economic generation volume (GWh) |
| Q2 YTD commercial capacity factor |
| Q2 YTD generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bighorn (2) |
| 598 |
| 7.2 |
| 517.0 |
| 935.5 |
| 99.8 | % | 99.5 | % | 515.8 |
| 931.0 |
|
Coolwater |
| 622 |
| 10.1 |
| 136.6 |
| 110.8 |
| 95.2 | % | 97.8 | % | 130.0 |
| 108.4 |
|
Ellwood (2) |
| 54 |
| 13.3 |
| 0.3 |
| 0.1 |
| 33.3 | % | 100.0 | % | 0.1 |
| 0.1 |
|
Etiwanda (2) |
| 640 |
| 10.0 |
| 0.4 |
| — |
| 100.0 | % | 0.0 | % | 0.4 |
| — |
|
Mandalay (2) |
| 560 |
| 10.9 |
| 120.1 |
| 85.9 |
| 99.5 | % | 96.4 | % | 119.5 |
| 82.8 |
|
Ormond Beach |
| 1,516 |
| 9.6 |
| 133.6 |
| 138.5 |
| 71.6 | % | 75.2 | % | 95.6 |
| 104.1 |
|
West Total |
| 3,990 |
|
|
| 908.0 |
| 1,270.8 |
| 94.9 | % | 96.5 | % | 861.4 |
| 1,226.4 |
|
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capacity |
| Heat Rate |
| Q2 YTD economic generation volume (GWh) |
| Q2 YTD commercial capacity factor |
| Q2 YTD generation volume (GWh) |
| ||||||
Unit Name |
| (MW) |
| (MMBtu/MWh) |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| 2007 |
| 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Channelview (2) |
| 830 |
| 6.1 |
| 2,735.3 |
| 2,864.7 |
| 91.3 | % | 88.8 | % | 2,497.9 |
| 2,543.7 |
|
Choctaw |
| 800 |
| 7.0 |
| 13.9 |
| — |
| 100.0 | % | 0.0 | % | 13.9 |
| — |
|
Indian River (2) |
| 587 |
| 10.5 |
| 0.1 |
| — |
| 100.0 | % | 0.0 | % | 0.1 |
| — |
|
Osceola (2) |
| 470 |
| 11.0 |
| 1.0 |
| 9.8 |
| 100.0 | % | 100.0 | % | 1.0 |
| 9.8 |
|
Other Total |
| 2,687 |
|
|
| 2,750.3 |
| 2,874.5 |
| 91.4 | % | 88.8 | % | 2,512.9 |
| 2,553.5 |
|
(1) Unless otherwise indicated, the Company owns a 100% interest in each facility listed.
(2) Excludes generation volume during periods the unit operated under power purchase agreements.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
Reliant Energy, Inc. and Subsidiaries
Net Debt
(Unaudited)
(in millions)
| June 30, 2007 |
| ||
|
|
|
| |
Debt: |
|
|
| |
Senior secured revolver |
| $ | — |
|
Senior secured notes |
| 750 |
| |
Senior unsecured notes |
| 1,342 |
| |
Convertible senior subordinated notes |
| 2 |
| |
Orion Power 12% notes (1) |
| 432 |
| |
PEDFA fixed-rate bonds for Seward plant due 2036 |
| 500 |
| |
Channelview |
| 342 |
| |
Retail working capital facility |
| — |
| |
Warrants |
| (1 | ) | |
Other (2) |
| 1 |
| |
Total GAAP debt |
| 3,368 |
| |
|
|
|
| |
REMA operating leases (off-balance sheet) |
| 480 |
| |
Total debt and debt equivalents (3) |
| 3,848 |
| |
|
|
|
| |
Less: |
|
|
| |
Cash and cash equivalents |
| (166 | ) | |
Restricted cash |
| (5 | ) | |
Net margin deposits |
| (323 | ) | |
Net Debt |
| $ | 3,354 |
|
(1) Orion 12% notes include purchase accounting adjustments of $32 million.
(2) Other subsidiary debt.
(3) Debt equivalents include off-balance sheet REMA leases of $480 million.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2006.
FOR ADDITIONAL INQUIRIES PLEASE CONTACT:
Dennis Barber
(713) 497-3042