Exhibit 99.1
NEWS RELEASE
Vistra Reports Second Quarter 2023 Results
Earnings Release Highlights
| • | Recorded second quarter 2023 Net Income of $476 million and Net Income from Ongoing Operations1 of $409 million and achieved Ongoing Operations Adjusted EBITDA1 of $1,008 million. |
| • | Updated guidance based on year-to-date performance and outlook, by narrowing the range and raising the lower end of the originally announced 2023 Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges. |
| • | Continued to progress towards a fourth quarter 2023 closing of the acquisition of Energy Harbor Corp. |
| • | Achieved commercial operation of the 350-megawatt Phase III expansion of the Moss Landing Energy Storage Facility, adding to the 400 megawatts already online at the facility, making it the largest battery energy storage facility in the world. |
| • | Continued to execute on the $4.25 billion cumulative share repurchase authorization, repurchasing ~$2.9 billion from Nov. 2, 2021, through Aug. 4, 2023, leading to a reduction of ~24% of the shares outstanding over that period. |
| • | Declared third quarter 2023 dividend of $0.2060 per share of common stock to be paid on Sept. 29, 2023, representing an ~12% increase from the third quarter 2022 dividend. |
IRVING, Texas — Aug. 9, 2023 — Vistra Corp. (NYSE: VST) (“Vistra”) today reported its second quarter 2023 financial results and other highlights.
“I’m excited to report our second quarter results today of $1,008 million in Ongoing Operations Adjusted EBITDA. Our focus and execution on operational excellence, risk management, and strong retail performance demonstrated an integrated platform that is bolstering Vistra’s elevated and de-risked earnings profile and delivering substantial value to our shareholders through our robust return of capital program,” said Jim Burke, president and CEO of Vistra. “Our performance year-to-date and the projections we see for the balance of 2023 provide confidence that we will achieve results that are in the upper half of our original guidance ranges initiated for 2023 Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG. Given this increased confidence, we announced narrowed guidance ranges today that adjust the lower end of the ranges upward by $200 million in the case of Ongoing Operations Adjusted EBITDA and $150 million in the case of Ongoing Operations Adjusted FCFbG. As we capitalize on the elevated earnings opportunities, we in turn are realizing additional free cash flows that we look forward to using to further our growth and bolster shareholder returns.”
Vistra – Press Release
Aug. 9, 2023, Page 2
Burke continued, “As we steadily deliver on our capital allocation program, we simultaneously are focused on the long-term energy transition this industry faces. We remain committed to disciplined growth of our zero-carbon portfolio while focusing on grid reliability. The 350-megawatt Phase III expansion of our Moss Landing Energy Storage Facility achieved commercial operation during the second quarter, ahead of schedule and on budget, bringing our Vistra Zero portfolio currently online to approximately 3,750 MW, including our nuclear facility Comanche Peak. We also continue to progress towards a fourth quarter closing of the acquisition of Energy Harbor Corp. that we announced earlier this year, which will increase our nuclear generation to more than 6,400 MW.”
Burke concluded, “Our retail segment continues to deliver strong counts and margins performance. And, while the second quarter weather was on the milder side, we are seeing extreme heat in parts of the country, particularly in July and August. Our generation fleet has risen to the challenge, achieving approximately 95% commercial availability in the second quarter, and we look forward to continuing that operational excellence through the balance of the year and beyond.”
Summary of Financial Results for the Second Quarter Ended June 30, 20232
(Unaudited) (Millions of Dollars)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) | $ | 476 | $ | (1,357 | ) | $ | 1,174 | $ | (1,641 | ) | ||||||
Ongoing operations net income (loss) | $ | 409 | $ | (1,299 | ) | $ | 1,134 | $ | (1,471 | ) | ||||||
Ongoing operations Adjusted EBITDA | $ | 1,008 | $ | 756 | $ | 1,562 | $ | 1,297 | ||||||||
Adjusted EBITDA by Segment | ||||||||||||||||
Retail | $ | 498 | $ | 403 | $ | 469 | $ | 566 | ||||||||
Texas | $ | 207 | $ | 181 | $ | 590 | $ | 351 | ||||||||
East | $ | 211 | $ | 164 | $ | 212 | $ | 312 | ||||||||
West | $ | 63 | $ | 40 | $ | 109 | $ | 66 | ||||||||
Sunset | $ | 40 | $ | (21 | ) | $ | 203 | $ | 22 | |||||||
Corporate and Other | $ | (11 | ) | $ | (11 | ) | $ | (21 | ) | $ | (20 | ) | ||||
Asset Closure | $ | 59 | $ | (19 | ) | $ | 18 | $ | (19 | ) | ||||||
For the three months ended June 30, 2023, Vistra reported Net Income of $476 million, Net Income from Ongoing Operations of $409 million, and Ongoing Operations Adjusted EBITDA of $1,008 million. Vistra’s Net Income for the second quarter 2023 was an improvement of $1,833 million over the second quarter 2022 Net Loss, driven primarily by unrealized net hedging gains in the three months ended June 30, 2023, as compared to the unrealized net hedging losses in the three months ended June 30, 2022. Ongoing Operations Adjusted EBITDA for the second quarter 2023 was $252 million higher than the second quarter 2022, driven primarily by higher energy margins achieved through our comprehensive hedging strategy, backing down generation at times when prices were below unit costs and strong counts and margin performance in the retail segment, partially offset by less favorable weather in the quarter.
Guidance
| ($ in millions) | Narrowed 2023 Guidance Ranges | |
Ongoing Operations Adjusted EBITDA | $3,600 - $4,000 | |
Ongoing Operations Adjusted FCFbG | $1,900 - $2,350 |
Vistra – Press Release
Aug. 9, 2023, Page 3
Vistra narrowed its 2023 guidance ranges of Ongoing Operations Adjusted EBITDA to $3,600 million to $4,000 million and Ongoing Operations Adjusted FCFbG of $1,900 million to $2,350 million. The midpoint of the narrowed 2023 Ongoing Operations Adjusted EBITDA guidance is now $3,800 million, which is higher than the top of the potential Ongoing Operations Adjusted EBITDA midpoint opportunity range Vistra first announced in May 2022. The midpoint of the narrowed 2023 Ongoing Operations Adjusted FCFbG guidance range is now $2,125 million.
As of June 30, 2023, Vistra had hedged approximately 86% of its expected generation volumes on average for the three-year period 2023 to 2025, with the balance of 2023 hedged at approximately 98% and 2024 hedged at approximately 95%. Vistra’s hedging program, as well as forward price curves as of Aug. 4, 2023, provide confidence that it will achieve results within the company’s narrowed 2023 guidance ranges and further provide increasing confidence in the previously announced Ongoing Operations Adjusted EBITDA midpoint opportunities for 2024 and 2025 of $3,700 million to $3,800 million (exclusive of any future EBITDA contribution from Energy Harbor).3
Share Repurchase Program
As of Aug. 4, 2023:
| • | Vistra had executed ~$2.9 billion in share repurchases since November 2021. |
| • | Vistra had ~$1.35 billion remaining under its $4.25 billion share repurchase authorization, which is expected to be utilized by year-end 2024. |
| • | Vistra had ~367.5 million shares outstanding, representing an ~24% reduction of the amount of the shares outstanding on Nov. 2, 2021. |
Clean Energy Transition
Vistra is focused on reliability, affordability and sustainability. With this in mind, Vistra continues to grow its fleet of lower carbon resources, advancing these interests through cost-effective, strategic investments in solar and battery storage developments and through its transformative acquisition of Energy Harbor, anticipated to close in the fourth quarter 2023.
This quarter, Vistra brought the 350 MW Phase III expansion of its Moss Landing Energy Storage Facility online, boosting its zero-emission generation and energy storage portfolio to 3,758 MW currently online (including our 2,400-MW nuclear facility, Comanche Peak), with additional renewable generation and energy storage developments in the near-term pipeline.
In March 2023, Vistra announced the execution of a definitive agreement to acquire Energy Harbor, which will add more than 4,000 MW of nuclear generation to its portfolio along with approximately one million additional retail customers. Together with Comanche Peak, this acquisition will bring Vistra’s nuclear capacity to more than 6,400 MW at the transaction’s closing. Further, in 2022, Comanche Peak applied to extend its licenses through 2050 and 2053 for the two-unit facility, an additional 20 years beyond the original licenses. This process is advancing as expected.
Vistra – Press Release
Aug. 9, 2023, Page 4
The Inflation Reduction Act is anticipated to provide the opportunity to realize material benefits on the 350 MW Phase III expansion of the Moss Landing Energy Storage Facility and the development of additional renewables and energy storage, as well as provide strong price support via the nuclear production tax credit for our nuclear facilities, including those being acquired through the Energy Harbor transaction.
Vistra intends to remain strategic and disciplined with respect to the timing of investments in renewables and battery storage projects. Overall, continued development of the renewables and battery storage portfolio is expected to be financed primarily with third-party capital. Vistra expects to execute the initial nonrecourse financings in the coming months.
Liquidity
As of June 30, 2023, Vistra had total available liquidity of approximately $2,472 million, including cash and cash equivalents of $643 million, $1,503 million of availability under its corporate revolving credit facility, and $326 million of availability under its commodity-linked revolving credit facility.
Available capacity under the commodity-linked revolving credit facility reflects the borrowing base as of June 30, 2023, which was lower than the aggregate commitments of $1,350 million. The reduction in the borrowing base is due, in part, to the expiration of certain deemed 2023 hedges and would increase in size in a rising commodity price environment in accordance with the terms of the commodity-linked revolving credit facility.
Available liquidity further excludes approximately $725 million of undrawn available borrowing capacity as of June 30, 2023, under Vistra’s accounts receivable financing arrangements.
Earnings Webcast
Vistra will host a webcast today, Aug. 9, 2023, beginning at 9 a.m. ET (8 a.m. CT) to discuss these results and related matters. The live webcast and the accompanying slides that will be discussed on the call can be accessed via Vistra’s website at www.vistracorp.com under “Investor Relations” and then “Events & Presentations.” Participants can also listen by phone by registering here prior to the start time of the call to receive a conference call dial-in number. A replay of the webcast will be available on Vistra’s website for one year following the live event.
About Non-GAAP Financial Measures and Items Affecting Comparability
“Adjusted EBITDA” (EBITDA as adjusted for unrealized gains or losses from hedging activities, tax receivable agreement impacts, reorganization items, and certain other items described from time to time in Vistra’s earnings releases), “Adjusted Free Cash Flow before Growth” (or “Adjusted FCFbG”) (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures (including capital expenditures for growth investments), other net investment activities, and other items described from time to time in Vistra’s earnings releases), “Ongoing Operations Adjusted EBITDA” (adjusted EBITDA less adjusted EBITDA from Asset Closure segment), “Net Income (Loss) from Ongoing Operations” (net income less net income from Asset Closure segment), and “Ongoing Operations Adjusted Free Cash Flow before Growth” or “Ongoing Operations Adjusted FCFbG” (adjusted free cash flow before growth less cash flow from operating activities from Asset Closure segment before growth) are “non-GAAP financial measures.” A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in Vistra’s consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. Vistra’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.
Vistra – Press Release
Aug. 9, 2023, Page 5
Vistra uses Adjusted EBITDA as a measure of performance and believes that analysis of its business by external users is enhanced by visibility to both Net Income prepared in accordance with GAAP and Adjusted EBITDA. Vistra uses Adjusted Free Cash Flow before Growth as a measure of liquidity and believes that analysis of its ability to service its cash obligations is supported by disclosure of both cash provided by (used in) operating activities prepared in accordance with GAAP as well as Adjusted Free Cash Flow before Growth. Vistra uses Ongoing Operations Adjusted EBITDA as a measure of performance and Ongoing Operations Adjusted Free Cash Flow before Growth as a measure of liquidity, and Vistra’s management and board of directors have found it informative to view the Asset Closure segment as separate and distinct from Vistra’s ongoing operations. Vistra uses Net Income (Loss) from Ongoing Operations as a non-GAAP measure that is most comparable to the GAAP measure Net Income in order to illustrate the company’s Net Income excluding the effects of the Asset Closure segment, as well as a measure to compare to Ongoing Operations Adjusted EBITDA. The schedules attached to this earnings release reconcile the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.
Media
Meranda Cohn
214-875-8004
Media.Relations@vistracorp.com
Analysts
Meagan Horn
214-812-0046
Investor@vistracorp.com
| 1 | Ongoing Operations excludes the Asset Closure segment. Net Income (Loss) from Ongoing Operations, Ongoing Operations Adjusted EBITDA, and Ongoing Operations Adjusted Free Cash Flow before Growth are non-GAAP financial measures. Any reference to “Ongoing Operations Adjusted FCFbG” is a reference to Ongoing Operations Adjusted Free Cash Flow before Growth. See the “Non-GAAP Reconciliation” tables for further detail. Total segment information may not tie due to rounding. |
| 2 | Upon movement of the Edwards Power Plant to the Asset Closure segment effective Jan. 1, 2023, prior year results were retrospectively adjusted for comparative purposes. |
| 3 | Reflects the potential midpoint opportunity range of Ongoing Operations Adjusted EBITDA for 2024 and 2025 based on market curves as of May 4, 2023 as previously disclosed on our first quarter 2023 earnings call; does not include the incremental Adjusted EBITDA contribution expected from the Energy Harbor acquisition; this range of estimated opportunities is not intended to be guidance. |
About Vistra
Vistra (NYSE: VST) is a leading Fortune 500 integrated retail electricity and power generation company based in Irving, Texas, providing essential resources for customers, commerce, and communities. Vistra combines an innovative, customer-centric approach to retail with safe, reliable, diverse, and efficient power generation. The company brings its products and services to market in 20 states and the District of Columbia, including six of the seven competitive wholesale markets in the U.S. Serving approximately 4 million residential, commercial, and industrial retail customers with electricity and natural gas, Vistra is one of the largest competitive electricity providers in the country and offers over 50 renewable energy plans. The company is also the largest competitive power generator in the U.S. with a capacity of approximately 37,000 megawatts powered by a diverse portfolio, including natural gas, nuclear, solar, and battery energy storage facilities. In addition, Vistra is a large purchaser of wind power. The company owns and operates the 750-MW/3,000-MWh battery energy storage system in Moss Landing, California, the largest in the world. Vistra is guided by four core principles: we do business the right way, we work as a team, we compete to win, and we care about our stakeholders, including our customers, our communities where we work and live, our employees, and our investors. Learn more about our environmental, social, and governance efforts and read the company’s sustainability report at https://www.vistracorp.com/sustainability/.
Vistra – Press Release
Aug. 9, 2023, Page 6
Cautionary Note Regarding Forward-Looking Statements
The information presented herein includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which Vistra Corp. (“Vistra”) operates and beliefs of and assumptions made by Vistra’s management, involve risks and uncertainties, which are difficult to predict and are not guarantees of future performance, that could significantly affect the financial results of Vistra. All statements, other than statements of historical facts, that are presented herein, or in response to questions or otherwise, that address activities, events or developments that may occur in the future, including such matters as activities related to our financial or operational projections, financial condition and cash flows, projected synergy, value lever and net debt targets, capital allocation, capital expenditures, liquidity, projected Adjusted EBITDA to free cash flow conversion rate, dividend policy, business strategy, competitive strengths, goals, future acquisitions or dispositions, development or operation of power generation assets, market and industry developments and the growth of our businesses and operations (often, but not always, through the use of words or phrases, or the negative variations of those words or other comparable words of a future or forward-looking nature, including, but not limited to: “intends,” “plans,” “will likely,” “unlikely,” “believe,” ���confident”, “expect,” “seek,” “anticipate,” “estimate,” “continue,” “will,” “shall,” “should,” “could,” “may,” “might,” “predict,” “project,” “forecast,” “target,” “potential,” “goal,” “objective,” “guidance” and “outlook”), are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra believes that in making any such forward-looking statement, Vistra’s expectations are based on reasonable assumptions, any such forward-looking statement involves uncertainties and risks that could cause results to differ materially from those projected in or implied by any such forward-looking statement, including, but not limited to: (i) adverse changes in general economic or market conditions (including changes in interest rates) or changes in political conditions or federal or state laws and regulations; (ii) the ability of Vistra to execute upon its contemplated strategic, capital allocation, performance, and cost-saving initiatives, including the acquisition of Energy Harbor, and to successfully integrate acquired businesses; (iii) actions by credit ratings agencies; (iv) the severity, magnitude and duration of extreme weather events, contingencies and uncertainties relating thereto, most of which are difficult to predict and many of which are beyond our control, and the resulting effects on our results of operations, financial condition and cash flows; and (v) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission by Vistra from time to time, including the uncertainties and risks discussed in the sections entitled “Risk Factors” and “Forward-Looking Statements” in Vistra’s annual report on Form 10-K for the year ended December 31, 2022 and any subsequently filed quarterly reports on Form 10-Q.
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra will not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all of them; nor can Vistra assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.
Vistra – Press Release
Aug. 9, 2023, Page 7
VISTRA CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Millions of Dollars)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating revenues | $ | 3,189 | $ | 1,588 | $ | 7,614 | $ | 4,713 | ||||||||
Fuel, purchased power costs and delivery fees | (1,475 | ) | (2,162 | ) | (3,645 | ) | (4,441 | ) | ||||||||
Operating costs | (445 | ) | (435 | ) | (866 | ) | (851 | ) | ||||||||
Depreciation and amortization | (369 | ) | (394 | ) | (735 | ) | (824 | ) | ||||||||
Selling, general and administrative expenses | (309 | ) | (280 | ) | (597 | ) | (569 | ) | ||||||||
Impairment of long-lived assets | — | — | (49 | ) | — | |||||||||||
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Operating income (loss) | 591 | (1,683 | ) | 1,722 | (1,972 | ) | ||||||||||
Other income | 124 | 71 | 144 | 77 | ||||||||||||
Other deductions | (2 | ) | (9 | ) | (5 | ) | (13 | ) | ||||||||
Interest expense and related charges | (100 | ) | (109 | ) | (307 | ) | (116 | ) | ||||||||
Impacts of Tax Receivable Agreement | (14 | ) | (34 | ) | (79 | ) | (115 | ) | ||||||||
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Net income (loss) before income taxes | 599 | (1,764 | ) | 1,475 | (2,139 | ) | ||||||||||
Income tax (expense) benefit | (123 | ) | 407 | (301 | ) | 498 | ||||||||||
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Net income (loss) | $ | 476 | $ | (1,357 | ) | $ | 1,174 | $ | (1,641 | ) | ||||||
Net (income) loss attributable to noncontrolling interest | — | (8 | ) | 1 | (9 | ) | ||||||||||
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Net income (loss) attributable to Vistra | $ | 476 | $ | (1,365 | ) | $ | 1,175 | $ | (1,650 | ) | ||||||
Cumulative dividends attributable to preferred stock | (37 | ) | (37 | ) | (75 | ) | (75 | ) | ||||||||
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Net income (loss) attributable to Vistra common stock | $ | 439 | $ | (1,402 | ) | $ | 1,100 | $ | (1,725 | ) | ||||||
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Vistra – Press Release
Aug. 9, 2023, Page 8
VISTRA CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Millions of Dollars)
| Six Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
Cash flows — operating activities: | ||||||||
Net income (loss) | $ | 1,174 | $ | (1,641 | ) | |||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 941 | 1,054 | ||||||
Deferred income tax expense (benefit), net | 290 | (501 | ) | |||||
Gain on sale of land | (94 | ) | (5 | ) | ||||
Impairment of long-lived and other assets | 49 | — | ||||||
Unrealized net (gain) loss from mark-to-market valuations of commodities | (1,139 | ) | 2,347 | |||||
Unrealized net gain from mark-to-market valuations of interest rate swaps | (22 | ) | (171 | ) | ||||
Asset retirement obligation accretion expense | 17 | 17 | ||||||
Impacts of Tax Receivable Agreement | 79 | 115 | ||||||
Stock-based compensation | 43 | 34 | ||||||
Bad debt expense | 69 | 65 | ||||||
Other, net | 24 | 6 | ||||||
Changes in operating assets and liabilities: | ||||||||
Margin deposits, net | 2,014 | (1,893 | ) | |||||
Uplift securitization proceeds receivable from ERCOT | — | 544 | ||||||
Accrued interest | (4 | ) | 13 | |||||
Accrued taxes | (52 | ) | (62 | ) | ||||
Accrued employee incentive | (57 | ) | (38 | ) | ||||
Other operating assets and liabilities | (320 | ) | (607 | ) | ||||
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Cash provided by (used in) operating activities | 3,012 | (723 | ) | |||||
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Cash flows — investing activities: | ||||||||
Capital expenditures, including nuclear fuel purchases and LTSA prepayments | (926 | ) | (613 | ) | ||||
Proceeds from sales of nuclear decommissioning trust fund securities | 251 | 334 | ||||||
Investments in nuclear decommissioning trust fund securities | (262 | ) | (345 | ) | ||||
Proceeds from sales of environmental allowances | 47 | 266 | ||||||
Purchases of environmental allowances | (190 | ) | (258 | ) | ||||
Insurance proceeds | 9 | 1 | ||||||
Proceeds from sale of assets | 110 | 14 | ||||||
Other, net | (6 | ) | (8 | ) | ||||
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Cash used in investing activities | (967 | ) | (609 | ) | ||||
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Cash flows — financing activities: | ||||||||
Issuances of long-term debt | — | 1,498 | ||||||
Repayments/repurchases of debt | (14 | ) | (223 | ) | ||||
Net (repayments)/borrowings under accounts receivable financing | (425 | ) | 725 | |||||
Borrowings under Revolving Credit Facility | 100 | 1,500 | ||||||
Repayments under Revolving Credit Facility | (350 | ) | (1,250 | ) | ||||
Borrowings under Commodity-Linked Facility | — | 2,750 | ||||||
Vistra – Press Release
Aug. 9, 2023, Page 9
VISTRA CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Millions of Dollars)
| Six Months Ended June 30, | ||||||||
| 2023 | 2022 | |||||||
Repayments under Commodity-Linked Facility | (400 | ) | (1,700 | ) | ||||
Share repurchases | (552 | ) | (1,194 | ) | ||||
Dividends paid to common stockholders | (153 | ) | (152 | ) | ||||
Dividends paid to preferred stockholders | (75 | ) | (76 | ) | ||||
Debt issuance costs | (6 | ) | (21 | ) | ||||
Other, net | 3 | 23 | ||||||
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Cash (used in) provided by financing activities | (1,872 | ) | 1,880 | |||||
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Net change in cash, cash equivalents and restricted cash | 173 | 548 | ||||||
Cash, cash equivalents and restricted cash — beginning balance | 525 | 1,359 | ||||||
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Cash, cash equivalents and restricted cash — ending balance | $ | 698 | $ | 1,907 | ||||
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Vistra – Press Release
Aug. 9, 2023, Page 10
VISTRA CORP.
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE MONTHS ENDED JUNE 30, 2023
(Unaudited) (Millions of Dollars)
| Retail | Texas | East | West | Sunset | Eliminations / Corp and Other | Ongoing Operations Consolidated | Asset Closure | Vistra Corp. Consolidated | ||||||||||||||||||||||||||||
Net income (loss) | $ | 812 | $ | (626 | ) | $ | 275 | $ | 164 | $ | 62 | $ | (278 | ) | $ | 409 | $ | 67 | $ | 476 | ||||||||||||||||
Income tax expense | — | — | 1 | — | — | 122 | 123 | — | 123 | |||||||||||||||||||||||||||
Interest expense and related charges (a) | 10 | (6 | ) | — | (4 | ) | 1 | 97 | 98 | 2 | 100 | |||||||||||||||||||||||||
Depreciation and amortization (b) | 22 | 148 | 167 | 19 | 15 | 17 | 388 | — | 388 | |||||||||||||||||||||||||||
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EBITDA before Adjustments | 844 | (484 | ) | 443 | 179 | 78 | (42 | ) | 1,018 | 69 | 1,087 | |||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (347 | ) | 693 | (226 | ) | (117 | ) | (49 | ) | — | (46 | ) | (8 | ) | (54 | ) | ||||||||||||||||||||
Generation plant retirement expenses | — | — | — | — | 3 | — | 3 | (2 | ) | 1 | ||||||||||||||||||||||||||
Fresh start/purchase accounting impacts | 1 | — | 1 | — | 1 | — | 3 | — | 3 | |||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 14 | 14 | — | 14 | |||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 21 | 21 | — | 21 | |||||||||||||||||||||||||||
Transition and merger expenses | — | — | — | — | — | 15 | 15 | — | 15 | |||||||||||||||||||||||||||
PJM capacity performance default impacts (c) | — | — | (9 | ) | — | (3 | ) | — | (12 | ) | — | (12 | ) | |||||||||||||||||||||||
Winter Storm Uri impacts (d) | (5 | ) | — | — | — | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||||||||||
Other, net | 5 | (2 | ) | 2 | 1 | 10 | (19 | ) | (3 | ) | — | (3 | ) | |||||||||||||||||||||||
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Adjusted EBITDA | $ | 498 | $ | 207 | $ | 211 | $ | 63 | $ | 40 | $ | (11 | ) | $ | 1,008 | $ | 59 | $ | 1,067 | |||||||||||||||||
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| (a) | Includes $63 million of unrealized mark-to-market net gains on interest rate swaps. |
| (b) | Includes nuclear fuel amortization of $19 million in the Texas segment. |
| (c) | Represents change in estimate of anticipated market participant defaults on PJM capacity performance penalties due to extreme magnitude of penalties associated with Winter Storm Elliott. |
| (d) | Includes the application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri. |
Vistra – Press Release
Aug. 9, 2023, Page 11
VISTRA CORP.
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA
FOR THE SIX MONTHS ENDED JUNE 30, 2023
(Unaudited) (Millions of Dollars)
| Retail | Texas | East | West | Sunset | Eliminations / Corp and Other | Ongoing Operations Consolidated | Asset Closure | Vistra Corp. Consolidated | ||||||||||||||||||||||||||||
Net income (loss) | $ | 217 | $ | (42 | ) | $ | 1,020 | $ | 216 | $ | 486 | $ | (763 | ) | $ | 1,134 | $ | 40 | $ | 1,174 | ||||||||||||||||
Income tax expense | — | — | 1 | — | — | 300 | 301 | — | 301 | |||||||||||||||||||||||||||
Interest expense and related charges (a) | 17 | (10 | ) | — | (8 | ) | 2 | 303 | 304 | 3 | 307 | |||||||||||||||||||||||||
Depreciation and amortization (b) | 51 | 301 | 328 | 34 | 29 | 34 | 777 | — | 777 | |||||||||||||||||||||||||||
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EBITDA before Adjustments | 285 | 249 | 1,349 | 242 | 517 | (126 | ) | 2,516 | 43 | 2,559 | ||||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | 212 | 346 | (1,149 | ) | (135 | ) | (388 | ) | — | (1,114 | ) | (25 | ) | (1,139 | ) | |||||||||||||||||||||
Generation plant retirement expenses | — | — | — | — | 3 | — | 3 | (2 | ) | 1 | ||||||||||||||||||||||||||
Fresh start/purchase accounting impacts | 1 | (1 | ) | 3 | — | 1 | — | 4 | — | 4 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 79 | 79 | — | 79 | |||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 43 | 43 | — | 43 | |||||||||||||||||||||||||||
Transition and merger expenses | (2 | ) | 1 | — | — | 1 | 17 | 17 | — | 17 | ||||||||||||||||||||||||||
Impairment of long-lived assets | — | — | — | — | 49 | — | 49 | — | 49 | |||||||||||||||||||||||||||
PJM capacity performance default impacts (c) | — | — | 6 | — | 2 | — | 8 | — | 8 | |||||||||||||||||||||||||||
Winter Storm Uri impacts (d) | (39 | ) | 1 | — | — | — | — | (38 | ) | — | (38 | ) | ||||||||||||||||||||||||
Other, net | 12 | (6 | ) | 3 | 2 | 18 | (34 | ) | (5 | ) | 2 | (3 | ) | |||||||||||||||||||||||
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Adjusted EBITDA | $ | 469 | $ | 590 | $ | 212 | $ | 109 | $ | 203 | $ | (21 | ) | $ | 1,562 | $ | 18 | $ | 1,580 | |||||||||||||||||
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| (a) | Includes $22 million of unrealized mark-to-market net gains on interest rate swaps. |
| (b) | Includes nuclear fuel amortization of $42 million in the Texas segment. |
| (c) | Represents estimate of anticipated market participant defaults on PJM capacity performance penalties due to extreme magnitude of penalties associated with Winter Storm Elliott, which amounts have been and will continue to be withheld by PJM from our net bonus position during 2023. |
| (d) | Includes the application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri. We estimate remaining bill credit amounts to be applied in future periods are for the remainder of 2023 (approximately $14 million), 2024 (approximately $11 million) and 2025 (approximately $25 million). |
Vistra – Press Release
Aug. 9, 2023, Page 12
VISTRA CORP.
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA
FOR THE THREE MONTHS ENDED JUNE 30, 2022
(Unaudited) (Millions of Dollars)
| Retail | Texas | East | West | Sunset | Eliminations / Corp and Other | Ongoing Operations Consolidated | Asset Closure | Vistra Corp. Consolidated | ||||||||||||||||||||||||||||
Net income (loss) | $ | 898 | $ | (1,638 | ) | $ | (662 | ) | $ | 25 | $ | (155 | ) | $ | 233 | $ | (1,299 | ) | $ | (58 | ) | $ | (1,357 | ) | ||||||||||||
Income tax benefit | — | — | — | — | — | (407 | ) | (407 | ) | — | (407 | ) | ||||||||||||||||||||||||
Interest expense and related charges (a) | 4 | (6 | ) | 1 | (1 | ) | — | 110 | 108 | 1 | 109 | |||||||||||||||||||||||||
Depreciation and amortization (b) | 36 | 164 | 179 | (11 | ) | 16 | 17 | 401 | 11 | 412 | ||||||||||||||||||||||||||
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EBITDA before Adjustments | 938 | (1,480 | ) | (482 | ) | 13 | (139 | ) | (47 | ) | (1,197 | ) | (46 | ) | (1,243 | ) | ||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (500 | ) | 1,665 | 645 | 28 | 124 | — | 1,962 | 25 | 1,987 | ||||||||||||||||||||||||||
Generation plant retirement expenses | — | — | — | — | 1 | — | 1 | (1 | ) | — | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 34 | 34 | — | 34 | |||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 17 | 17 | — | 17 | |||||||||||||||||||||||||||
Transition and merger expenses | 3 | — | — | — | — | — | 3 | — | 3 | |||||||||||||||||||||||||||
Winter Storm Uri impacts (c) | (52 | ) | (10 | ) | — | — | — | — | (62 | ) | — | (62 | ) | |||||||||||||||||||||||
Other, net | 14 | 6 | 1 | (1 | ) | (7 | ) | (15 | ) | (2 | ) | 3 | 1 | |||||||||||||||||||||||
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Adjusted EBITDA | $ | 403 | $ | 181 | $ | 164 | $ | 40 | $ | (21 | ) | $ | (11 | ) | $ | 756 | $ | (19 | ) | $ | 737 | |||||||||||||||
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| (a) | Includes $45 million of unrealized mark-to-market net gains on interest rate swaps. |
| (b) | Includes nuclear fuel amortization of $18 million in Texas segment. |
| (c) | Adjusted EBITDA impacts of Winter Storm Uri reflects the application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri and a reduction in the allocation of ERCOT default uplift charges which were expected to be paid over several decades under protocols existing at the time of the storm. |
Vistra – Press Release
Aug. 9, 2023, Page 13
VISTRA CORP.
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA
FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Unaudited) (Millions of Dollars)
| Retail | Texas | East | West | Sunset | Eliminations / Corp and Other | Ongoing Operations Consolidated | Asset Closure | Vistra Corp. Consolidated | ||||||||||||||||||||||||||||
Net income (loss) | $ | 3,326 | $ | (3,610 | ) | $ | (791 | ) | $ | (36 | ) | $ | (556 | ) | $ | 196 | $ | (1,471 | ) | $ | (170 | ) | $ | (1,641 | ) | |||||||||||
Income tax benefit | — | — | — | — | — | (498 | ) | (498 | ) | — | (498 | ) | ||||||||||||||||||||||||
Interest expense and related charges (a) | 5 | (11 | ) | 3 | (1 | ) | 1 | 118 | 115 | 1 | 116 | |||||||||||||||||||||||||
Depreciation and amortization (b) | 72 | 309 | 358 | 31 | 32 | 34 | 836 | 28 | 864 | |||||||||||||||||||||||||||
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EBITDA before Adjustments | 3,403 | (3,312 | ) | (430 | ) | (6 | ) | (523 | ) | (150 | ) | (1,018 | ) | (141 | ) | (1,159 | ) | |||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (2,805 | ) | 3,696 | 738 | 71 | 537 | — | 2,237 | 110 | 2,347 | ||||||||||||||||||||||||||
Generation plant retirement expenses | — | — | — | — | 5 | — | 5 | 1 | 6 | |||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 115 | 115 | — | 115 | |||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 34 | 34 | — | 34 | |||||||||||||||||||||||||||
Transition and merger expenses | 9 | — | 1 | — | — | 10 | 20 | — | 20 | |||||||||||||||||||||||||||
Winter Storm Uri impacts (c) | (64 | ) | (52 | ) | — | — | — | — | (116 | ) | — | (116 | ) | |||||||||||||||||||||||
Other, net | 23 | 19 | 3 | 1 | 3 | (29 | ) | 20 | 11 | 31 | ||||||||||||||||||||||||||
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Adjusted EBITDA | $ | 566 | $ | 351 | $ | 312 | $ | 66 | $ | 22 | $ | (20 | ) | $ | 1,297 | $ | (19 | ) | $ | 1,278 | ||||||||||||||||
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| (a) | Includes $171 million of unrealized mark-to-market net gains on interest rate swaps. |
| (b) | Includes nuclear fuel amortization of $40 million in Texas segment. |
| (c) | Adjusted EBITDA impacts of Winter Storm Uri reflects the application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri and a reduction in the allocation of ERCOT default uplift charges which were expected to be paid over several decades under protocols existing at the time of the storm. |
Vistra – Press Release
Aug. 9, 2023, Page 14
VISTRA CORP. - NON-GAAP RECONCILIATIONS 2023 GUIDANCE
(Unaudited) (Millions of Dollars)
| Ongoing Operations | Asset Closure | Vistra Consolidated | ||||||||||||||||||||||
| Low | High | Low | High | Low | High | |||||||||||||||||||
Net Income (loss) | 2,240 | 2,530 | (70 | ) | 30 | 2,170 | 2,560 | |||||||||||||||||
Income tax expense | 630 | 740 | 0 | 0 | 630 | 740 | ||||||||||||||||||
Interest expense and related charges (a) | 700 | 700 | 0 | 0 | 700 | 700 | ||||||||||||||||||
Depreciation and amortization (b) | 1,580 | 1,580 | 0 | 0 | 1,580 | 1,580 | ||||||||||||||||||
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EBITDA before adjustments | 5,150 | 5,550 | (70 | ) | 30 | 5,080 | 5,580 | |||||||||||||||||
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Unrealized net (gain) loss resulting from hedging transactions | (1,694 | ) | (1,694 | ) | (36 | ) | (36 | ) | (1,730 | ) | (1,730 | ) | ||||||||||||
Tax credits | 4 | 4 | 0 | 0 | 4 | 4 | ||||||||||||||||||
Generation plant retirement expense | 1 | 1 | (1 | ) | (1 | ) | 0 | 0 | ||||||||||||||||
Fresh start / purchase accounting impacts | 7 | 7 | 0 | 0 | 7 | 7 | ||||||||||||||||||
Impacts of Tax Receivable Agreement | 112 | 112 | 0 | 0 | 112 | 112 | ||||||||||||||||||
Non-cash compensation expenses | 71 | 71 | 0 | 0 | 71 | 71 | ||||||||||||||||||
Impairment of long-lived and other assets | 49 | 49 | 0 | 0 | 49 | 49 | ||||||||||||||||||
Transition and merger expenses | 14 | 14 | 0 | 0 | 14 | 14 | ||||||||||||||||||
PJM capacity performance default impacts | 20 | 20 | 0 | 0 | 20 | 20 | ||||||||||||||||||
Winter storm Uri impacts (c) | (51 | ) | (51 | ) | 0 | 0 | (51 | ) | (51 | ) | ||||||||||||||
Other, net | (83 | ) | (83 | ) | 7 | 7 | (76 | ) | (76 | ) | ||||||||||||||
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Adjusted EBITDA guidance | 3,600 | 4,000 | (100 | ) | (0 | ) | 3,500 | 4,000 | ||||||||||||||||
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Interest paid, net | (615 | ) | (615 | ) | 0 | 0 | (615 | ) | (615 | ) | ||||||||||||||
Tax (paid) / received (d) | (18 | ) | (18 | ) | 0 | 0 | (18 | ) | (18 | ) | ||||||||||||||
Tax Receivable Agreement payments | (10 | ) | (10 | ) | 0 | 0 | (10 | ) | (10 | ) | ||||||||||||||
Working capital and margin deposits | 2,400 | 2,400 | 3 | 3 | 2,403 | 2,403 | ||||||||||||||||||
Accrued environmental allowances | 388 | 388 | 0 | 0 | 388 | 388 | ||||||||||||||||||
Reclamation and remediation | (34 | ) | (34 | ) | (79 | ) | (79 | ) | (113 | ) | (113 | ) | ||||||||||||
Winter storm Uri impacts | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other changes in other operating assets and liabilities | (90 | ) | (40 | ) | (53 | ) | (53 | ) | (143 | ) | (93 | ) | ||||||||||||
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Cash provided by operating activities | 5,621 | 6,071 | (229 | ) | (129 | ) | 5,392 | 5,942 | ||||||||||||||||
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Capital expenditures including nuclear fuel purchases and LTSA prepayments | (963 | ) | (963 | ) | 0 | 0 | (963 | ) | (963 | ) | ||||||||||||||
Solar and storage development expenditures | (664 | ) | (664 | ) | 0 | 0 | (664 | ) | (664 | ) | ||||||||||||||
Other growth expenditures | (143 | ) | (143 | ) | 0 | 0 | (143 | ) | (143 | ) | ||||||||||||||
Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
(Purchase) sale of environmental allowances | (486 | ) | (486 | ) | 0 | 0 | (486 | ) | (486 | ) | ||||||||||||||
Other net investing activities | 4 | 4 | 12 | 12 | 16 | 16 | ||||||||||||||||||
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Free cash flow | 3,369 | 3,819 | (217 | ) | (117 | ) | 3,152 | 3,702 | ||||||||||||||||
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Working capital and margin deposits | (2,400 | ) | (2,400 | ) | (3 | ) | (3 | ) | (2,403 | ) | (2,403 | ) | ||||||||||||
Solar and storage development and other growth expenditures | 664 | 664 | 0 | 0 | 664 | 664 | ||||||||||||||||||
Other growth expenditures | 143 | 143 | 0 | 0 | 143 | 143 | ||||||||||||||||||
Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Accrued environmental allowances | (388 | ) | (388 | ) | 0 | 0 | (388 | ) | (388 | ) | ||||||||||||||
(Purchase) sale of environmental allowances | 486 | 486 | 0 | 0 | 486 | 486 | ||||||||||||||||||
Transition and merger expenses | 22 | 22 | 25 | 25 | 47 | 47 | ||||||||||||||||||
Transition capital expenditures | 4 | 4 | 0 | 0 | 4 | 4 | ||||||||||||||||||
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Adjusted free cash flow before growth guidance | 1,900 | 2,350 | (195 | ) | (95 | ) | 1,705 | 2,255 | ||||||||||||||||
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Vistra – Press Release
Aug. 9, 2023, Page 15
| 1 | Regulation G Table for 2023 Guidance prepared as of August 9, 2023. |
| (a) | Includes unrealized (gain) / loss on interest rate swaps of $(1) million. |
| (b) | Includes nuclear fuel amortization of $100 million. |
| (c) | Adjustment for bill credits applied to large commercial and industrial customers that curtailed during Winter Storm Uri. |
| (d) | Includes state tax payments. |