VST - Earnings call transcript Q2 2018

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Operator

Good morning. My name is Tim and I will be your conference operator today. At this time, I would like to welcome everyone to the Vistra Energy Second Quarter 2018 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator Ms. may conference. you begin Sorg, your Molly

Molly Sorg

section Thank Energy’s and related XXXX investor good on morning, our Investor results, Also a earnings at to investor Vistra everyone. Welcome presentation, Relations the release. webcast, from of is website broadcast you our available the being website www.vistraenergy.com. and which live of copy discussing today’s are second quarter XX-Q our

President Bill and are Curt Financial Morgan, and Holden, Joining Executive Muscato, for Officer; Vice Steve and today’s call and me President Chief Chief Officer. Chief Officer President Vice Executive Senior Commercial

also the in call, questions We senior additional of necessary. as have executives room to today’s part second in address the

encourage results those website, forward-looking on the Further, presentation limitations and Before risks of in and data, as non-GAAP measures. statements review financial listeners statements, differ X earnings to contain assumptions only Harbor to non-GAAP reasonable Such be date. discussions which of cause today’s and from Today’s implied. this release, of the investor forward-looking industry financial will subject slides use certain we based which included I and the could on actual presentation explain in X begin that include on to presentation materially discussion certain certain are the are our the uncertainties our all market projected and we Statements risks presentation, will or believe statements, slide of to our Safe forward-looking call included measures. on the

the over our to will release kick to reconciliations the comparable to and the such Curt the GAAP discussion. appendix call to turn Morgan measures, measures earnings directly I most presentation. now investor in For in the off are

Curt Morgan

good the and to Molly call. you, on everyone Thank morning

increased our very contribution quarter. reflects turn X. to guidance always, even As highlights, This had with another after date quarter initiating result results. delivering XXX particularly that curves to a starting like May, in cover synergies. by and results company ERCOT our is again a ERCOT. over and maintenance favorability thought exceeded I’m primarily quarter, lower good than ongoing than wholesale as power higher our XXXX. second forward by appreciate driven retail approximately EBITDA prices, expectations And Energy. portfolio. XXXX the I’d be a of Ohio increase of disclosed in primarily partial Dynegy’s results planned interest higher of to Vistra’s and more the XXXX, by previously quarter of merger the power XXXX second comparison which reduced out million. similar May, This quarter plant we versus results, meaningful, XXXX might our second operations, We realized and which and higher a retail in that in and and comparison for XXXX using for higher XX% slide financial of than standalone A quarterly quarter year imperfect retail first for We our quarter million combined to adjusted comparison expenses our ERCOT your executed interest expectations Odessa buyback earn going Vistra to we quarter was we costs is forecast from once indicates quarter in in yet second operations offset adjusted $XX realized concluded the retail EBITDA margins XXXX,

to of million. positive impact the be net premium $X We transaction, expect the paid, a of the three year

in count ERCOT brands wholesale higher important, environments, and due customers. has during price retail strength it This retain how and quarter had volatile in the power is to the is long negative is only historically customers. our business Notably, more generally highlight have the than the ongoing Vistra’s customer retail retain residential would but that not the demonstrates quarter of acquire by with bills. prices This an its EBITDA able run, XXXX impact, ERCOT second ending the also like million. ongoing wholesale providers to we've EBITDA XXX to million customers highest we our to X% since are our switch Year customer for would new from been run. counts opportunity this retail team Excluding experienced in present quarter, short residential second to million. adjusted from grew adjusted in I very its date, year-over-year, can the customer growth, $XXX as and X.XXX Vistra’s operations operations volatility

of Odessa the adjusted million earnout EBITDA buyback time When May, approximately paid, Excluding the execution. which in the benefit, been resulting would buybacks, Odessa XX of of impact negative largely earnout of locked the plant we February from $XXX the economic premium have the executed was the around adjusted power net partial and in million, we $XX year-to-date to EBITDA Vistra’s million.

up In records month, XX the addition megawatts, strong higher temperatures July demand to XXXXX shaping multiple the peak than with July half to be high second in XX.X ahead strong we saw results Vistra’s highest meaningfully a of through ERCOT set being demand of expectations, forecast peak demand in of gigawatts. as the summer ERCOT’s and is tracking month. internal June peak

the overdone on with to account note regularly set prices able these had Vistra largely ERCOT in like to forwards appears favorability coming and XXXX downside. hour. hourly XXXX per some July than operations Given was important to just forwards into August when and wind hourly retail It performed consistent this expectations real that strong wide day time and prices into $XXXX response hype integrated XXXX It taking the higher temperatures, the actual were plant our high capture is customer ahead recently performance. demand. summer, well day normal our of to meet and the the the prices megawatt was

of multiple of issued to current Despite is point today ran to especially be will Steve worth last the mentioning retail year-to-date performance to will XXXX on their our to our in XXXX for view, out August both November again we forward reaffirming point in was today ERCOT periods. operations in companies though are are It year, softening us the our highs, we opportunities both for provided tight and hedge players ranges, guidance below we May, guidance XXXX slide As our above and detail later guidance and were forth and the XXXX XXXX look the offer original If summer that discuss beat we forwards increasingly combined confident our we view. of and will ongoing I call, significantly initiated those first increased Muscato conditions company. in comparing when as its recent greater. we also guidance believe when X. would continue the XXXX are guidance the and more in XXXX to August our up that in some forwards hedge set experience which forward fundamental XXXX combined market company curves hedge of on to even spring, link want than was Vistra able higher point curve the May,

it view. forward prices price a know, is realized volatility construct and meaningfully has that than Vistra been that allows point above to settled curve you As of curve our in higher historically the this

May given curves ongoing you operations increased ranges, we ERCOT, be XXXX higher guidance. are retail first Now guidance has reflect expected might in that updating why already better wondering all, exceeded year-to-date Well, our performance the to in May results. guidance we expectations, of not in the embedded and

more a in XX% In us expect or atypical half the month update to addition, important for guidance EBITDA for ERCOT. in the out around first and typically our important be is to would very it generate summer, is adjusted wholesale third in would of especially ERCOT August Vistra September to operations, closing prior quarter. of the also as its

this earnings guidance it well on point third until wait in ranges. to previous XXXX discussed XXXX retail shoulder calls, have call both We update the consider ERCOT especially prudent performs December. in to we reaffirm our is and to an our believe the October guidance our and quarter As months, and business at

where we point at very about time. feel are However, in good we this

am EBITDA XXX on of after merger we achieve that announced XXXX. by to track deliver flow levers to end slide year our X, million the to I tax value on on that targets million benefits remain are to value additional $XXX previously the report cash lever free of shown and happy Moving we

credit We track to on of also approximately AMT the billion. remain refunds $X.X capture and substantial and TRA savings tax

Specifically remain we depict XXX of XXXX. on the on track X, million in synergies, as XXX we traditional slide XXX million in million mergers realize XXXX and to of

XXX track year million rate XXXX. initiative operations of run we XXX remain full by realize EBITDA million million to XXXX, to of XXX amount the XX in XXXX the allowing performance achieve targets, in and of on million full the us end realize to in lever Similarly, XXXX. value expect We

resulting rate run expect XXXX, the year the realization in XXX rate full XXXX. of achieve million by We to of amount run full in end

are that million we previous XX may You from already fossil rate run completed fuel ERCOT the OP on recall fleet. Vistra work, basis on realizing a

the and XX fish million of free XXXX. flow realize benefit, of additional to tax cash On million we free benefits XXXX side, of the after in in flow of XXX approximately expect XXX benefits million

end run XXXX, rate the by in year realization amount million full XXX run achieve rate to of resulting expect full in We the XXXX. of

please XXXX this value mentioned stay out, take previously, to for topic. have however, I OP updates of come, on be more balance believe this to could there we As so more we tuned the prove

as free savings. see addition, could our to interest sheet forecast team to cost Vistra’s expense continue reduce in continues of our In improvements cash flow balance the borrowing, optimize further from to we overall adjusted

will as We an XXXX is will benefits in tax payments million it Last, TRA from they just is on approximately XXXX forecasting keep XXXX. and $XX pay through potential to under identified. you in Vistra payment TRA XXXX year the now of million future are related these apprised $XX taxes, forecasting

XXXX expects not cash still through Vistra federal a payer XXXX. from Importantly, to tax be

during still also are an approximately the credit XXX same We AMT million period. refunds receive forecasting to

as slide now relates to updates it capital we X, a allocation. to few Turning have

forecasting year of target $X same for presentation, debt after end billion cash highest focused capital allocating first term, period. have likely and capital As is on from we net the is its our leverage toward to over approximately approximately debt reduction end in near as term And through XXXX. available long X.X debt by will for are Vistra’s times Allocating X.X time XXXX. of Vistra cash Analyst June reduction this the priority will you year allocation EBITDA Day is achieving billion approximately of foremost recall we allocation for

Day allocation a on in result our As and we end we is share currently Analyst $XXX share year through XX. to undervalued million as meaningful stock June XXXX. opportunities on board repurchases announced repurchase our approved executing its launch the program We been our believe June, at Vistra’s up have for of since

shares million approximately an X.X of approximately share. average price per at of As we XX, July have repurchased $XX.XX

such, million expect program. approximately we have XX% repurchase XXXX executed our capital have approximately authorization, of We remaining to current be available to under the approximately on XXX now As leaving of million XXX capital beyond for allocation through program. the deployed

allocate As to a a initiation we balance have number of optimize be this and will investment opportunities we share capital, attractive to the including previously, repurchases. sheet further assessing discussed incremental dividend, of

landing allocate We some of to Moss projects. battery storage will capital also this previously announced

is may you with project adequacy this Utility twenty PG&E. year California have still subject Public As will and to resource Commission the -- a approval recall, contract

forecast attractive and California landing to will cost we assets generation, low relatively the basis capital believe be above peaking a threshold. in to of contract Moss for project our yield substantial our enormous we it XX risk investment points XX PG&E exceeding the flexible and returns, need solar will Given due

in flexibility attractive the returns. structure our because have we to The how as are sheet, likely we it want We this keep deploy we to XXXX not capital as spreads and in possible. simple are to project that fund much XXX% like we straightforward on balance and and

I'm project potentially flexibility slide XXXX, end, be a in the moving will a financing. execute In initiating by XXXX the end number retain year to always likely as dividend of we we move allocation in we course, now can fronts, a as Of do decided XXXX. expected X. and including on which XXXX, capital to

have we about off of end $X paid As more allocation available in see, and year than achieved through you XXXX, capital billion term long after leverage for XXXX. will debt Vistra in our target, have it billion is can beginning $X.X forecasting

strategic wide will convert of XX% This free enable our flow capital cash EBITDA allocation should adjusted supporting on to growing opportunistically variety cash flow. investing including alternatives, we expect, Vistra free additional we opportunities. and generation a meaningful pursue of to in incremental adjusted a growth dividend, share recurring and As repurchases approximately executing and

pursuit the our in we growth, project be will threshold. always, As satisfy we of will taking disciplined opportunities that return

conversion than believe full heard this before, ratio that you’ve cash a other is XX% for based given will cost, and higher energy commodity sheet. lead low as characteristic the free capital flow financial the intensive debt As very of over to industries many a capital significantly very tier a time addition little we the valuation times say combination result, to of in me the maintenance Vistra. money support in It from company, strong to highly our of takes fleet in EBITDA efficient, business, cost balance the retail low of unique top

liquidity our have and to three also lock on EBITDA capitalize to year We visibility free volatility flow. forward stability market in basis, a contributing and cash commercial two the prowess on and and of certainty, value to

attributes the reflects However, not we of our do price our business. stock believe favorable

stock focused new it commitment to the flow power value, see on even model market what to prove we full we reflect in which challenging create that stable is wholesale and we as its and on can business continuing like price While our plan environment. deliver control, our executing are business significant conversion, to strong we earnings commitment would our a our and to cash

volatility in fact XXXX stock correlated August is highly the which puzzling. recent price, been bit Hub a has our recent I ERCOT In volatility power North to believe in

for Vistra significantly view. know, to run largely is of our XXXX, hedged the above point lock in took advantage you of up As XXXX in we previous value

attractive XXXX our have As of prices point XXXX confident Steve will hedge view. discuss to will above are opportunity at momentarily, and Muscato we we ample

do balance would what as underwrote forward, newbuild, It current be interesting it ERCOT and our would of substantial a to is the In attractive. any recognition be new conditions year the to equity a forwards seems the place that a contained market term market new view infusion. strategic, seems to especially longer However, is should project. for be volatility tight curves end, steeply not financing we more ERCOT risky project one-off forward up via to require backwardated, a build on in is strategic sheet proposition, lining and with about if remain We thermal. very would any in and forward Investment asset of difficult the remain and the leaving that. see be especially unsupportive thermal the have backwardated thermal very high

a ERCOT article, I relieve Amex leave hasXXXX like the construction. Before I would in subject, beakers the Megawatt that will Platts new Megawatt XXX new megawatts daily build construction the megawatts are In under suggested gas article on the to under daily indicated that comment recent Platts that dynamics of help tight market. supply/demand

for summer build the is now the overstating available in to capacity, contribution capacity, is where around capacity, issues is thus abandoned the of ERCOT testing In new in term foreseeable year, short, our XXXX its the on well about important lead ERCOT will reporting balance ERCOT the integrated the and bring XXXX. suggests Steve to the which peak to turn leverage mode released, generally plants fact, no fact of low new of operations under is wholesale construction are Most to operations, best. to of substantial panhandle to investors. with low and in congestion assets is wind are article that note in load reserve ready a on fence. already an by under commercial to would the to target the remain below We formula and XX% It reserve cited plants a centered value to no believe of disciplined not forecast ignoring is margin we give of model about commitment Commercial behind to research that Chief all wind the will company return mention X% grow excited Officer megawatts We the growth also knowledge, our or future. each future are over winning XX.XX% peak nameplate long update ERCOT’s business proposition remain article between of our only either they I power nameplate but there those that or Muscato, they're the supply margins now wind be will or to and approximately construction, and call that best capital is Steve? is at the meaningfully like we market, material be cost believe value. shareholders to our in to market. In shareholder and our of

Steve Muscato

Thanks, Curt.

Turning XX, spend the discussing wanted market. on call the slide to of state minutes to ERCOT the now a few today, we

you of July. many know, Texas last of the temperatures weeks As extreme two experienced

period, it’s meaningful daily this graph depicted on slide. saw as ERCOT on volatility, and two the During intraday the

two-week hour $XXXX period, average the megawatt above $XXX July. to with consistently North month prices During hour per on hour. and ahead sell provided megawatt during were exceeding a $XXX XX prices per Vistra opportunity even attractive unhedged the ERCOT These on peak day reached ahead high hour single Hub of day at the megawatt length per July prices

the market day demand, ahead time came time settled below of the day ERCOT were during during the while prices month because However, above meet despite had average in July strong, meaningfully month. to prices temperatures. the supply the sufficient real lower ahead prices Real

year hour July peak three hour was July last wind at right average however in over well the were over the Specifically, the Outages production XXXX in July. production this years. average last around the wind years below at peak the the July three

robust peak ERCOT meet to represented the prices. time real supply generation was result, enough a demand, by as As in

wave, have still might averaged even per day expected extremes July the did though $XXX prices the July some hour. approximately during however, reach peak prices heat megawatt July on Importantly scarcity average that ahead not

heading we are positioned result, into As August. well a

we we Vistra stability. there to approach, we when some seen forwards in point chance though of you and hedging Even important pricing. but see forward Vistra to slide generation, hedging volatility volatility of value and this are Turning to one against Vistra’s when hedge able It in to into in XXXX summer is approach In for forwards earnings net in the have price XXXX. years, opportunity in volatility turns incremental curves, in Vistra’s this heat heat this spring XxXX long forward is can view. Vistra been talk will those reflects attractive position. meaningful basis fundamental hedged the opportunistically net to our XX, incrementally has about locking on the approximately in XX% now the approximately the In to gives of hedge hedged when note been hedge was is above particularly XXXX. that XXXX ERCOT less rates, volatility that has length example, you view it still XXXX, appendix, particular, for now a on point in basis rate ERCOT see fundamental natural traded volatility took in open present. Vistra gas It is and XXXX XX this slide equivalent as XX% a the

thermal a early we will and continue we improve the the believe both grow XXXX two at to the not generation is forward like not forward meaningfully the continue did XXXX the curve We from years. the next higher ERCOT XXXX X% and expected summer. until levels. new ERCOT XXXX get to any will include part curves is Much to of Load XXXX move XXXX, meaningfully year approximately over curves to believe trading in current forward to expected closer and prompt as see

slide see chart left to backed XXXX the is construction have we XXXX, will forward months May the today, out that premise and under yet adjustment, the and implying tight the this generation, you depict line any not reserve construction XXXX. that spreads and is hand ERCOT new XXXX. believe demand in we only you conditions are right will on ERCOT demand ERCOT for In XX. summer supply margin the are from the going we and reserve on forecast declining slide, meaningfully remain the a North years. to CDR hand backwardated, should improve result, through the the coming will as But in only supply Making under declining tight persistent XXXX on by the be current of if a as not As only Despite that side CDR side Hub XxXX the we come, on the however, in hers taken these slide. thermal are yet of not margins, spark the on forecast depict

Given point least through the we backwardation at future. reverse we this in at believe the will margins, tight summer reserve some expect XXXX,

highly making in and construction Importantly and Curt the energy it backwardation CCGT uneconomic and of because the ERCOT development secure new financing. call, is the makes as ERCOT and indicated to curve only earlier in the especially difficult the market, unlikely,

decision, As second will financial Holden it it ERCOT in our turn dynamics remain would rational like summer to view new the financial that, Bill investment, make a to beyond call to discuss I result, to the relates even players that highlights. over With quarter as remains supply/demand XXXX. favorable, likely

Bill Holden

Thank Steve. you,

Curt Turning exceeding as for the second Vistra our delivering million adjusted ongoing in slide XXXX, the operation, XX, $XXX were quarter guidance. EBITDA concluded now embedded quarter in to of our that expectations our from mentioned,

plant adjusted have the EBITDA $XX from million. been Odessa partial its negative impact Vistra’s buyback earnout power the of the May, $XXX million operations in would Excluding of ongoing

segments. results Segment have from million this of higher and performance in million. even slide the and $X operating key and impact, year partial be on in generation segment, can compares were prices our results that buyback favorable to for adjusted adjusted million, market. net retail Vistra six that of consists from ERCOT the the found June appendix, offset positive higher corporate Vistra’s other our results Nationwide the The primarily quarter the higher from England Year-to-date, three by Wholesale strong operations. reporting see interest CAISO $XXX period a following for of retail, non-segment X, XX quarter favorably asset XXXX quarter, and of where operations you Wholesale, from ongoing closure power wholesale, New merger lower reflects premium and segment. and retail EBITDA York/New through in Vistra’s of results costs of XXXX. XX, the its unit costs now ongoing corporate because for operations operations We is ERCOT and from the and PJM second Dynegy paid which will with EBITDA expectations months expenses, six MISO is to operations expect taxes $XXX legacy the the a Dynegy, realized April XXXX wholesale, Vistra legacy

negative earnout the would $XX the Vistra’s Excluding million been Odessa May, for in and EBITDA impact ongoing period. of $XXX power the of February adjusted partial buyback from executed have we plant that operations the million

period We XXXX expect the net to buybacks a positive partial paid the impact, of XXXX. these over premium through have from

now and for operations. XXXX slide will its its guidance to XX, XXXX that see Turning is Vistra ongoing you reaffirming

from As ongoing guidance, ongoing $X.XX result billion the flow ongoing on of of company the adjusted of X, Vistra XXXX December free and its period results billion. to adjusted period of for to a flow through billion billion combined reaffirming XX, $X.X and $X.X billion. guidance, also free forecasting of operations billion operations $X.XX $X.X EBITDA operations Vistra’s billion adjusted standalone its reminder, is anticipated to from cash X ongoing $X.X $X.X XXXX. $X.X billion XXXX XXXX from Vistra reflects to basis Vistra’s prior cash from adjusted from a XXXX for forecasting is April guidance operations the April and reaffirming to EBITDA

XXXX for slide XX have the asset and XXXX closure You will segment. forecast updated we our that see on

in XX slide and for costs mostly planned includes the retirement forecast and As included I flow asset today’s asset obligations forecast this future in allocated on that the appendix to legacy quarters. we evaluate finalize note presentation. we XX-year could property fleet, costs. to Dynegy continue closure fees our of accounting by expenditures closure shift to taxes cash work for to segment the and mine would the segment free and support from expect reclamation is we Adjusted purchase segment the current also closure for investor driven asset continue

As see, fall asset closure expect you the spend segment cash yearX. will beginning the we off for in significantly, to

decline expect We to year is the even sheet. on to next our spend that spend beyond in XX the It of important reserve included years much the note ARO cash is balance the XX. in further

sales potential including the addition, does reflect forecast current optimization property. potential of In not opportunities,

As detailed always, questions may have. you Molly is available to answer any

Finally, capital approximately already to reduce slide its billion and in turning legacy a Analyst structure. our Vistra and June facility. begun to new repricing into Vistra and its $X discussed Most refinancing the revolvers debt consolidating recently, optimize of $X.X Dynegy we Day, billion legacy XX, leverage and as Dynegy has and

of Vistra in reduced increase revolver table XX. from billion from to As on dollars in as cash $XXX X.X a result is minimum capacity billion, to the has million million X.X reflected its slide requirement $XXX the now

debt that to term $XXX and approximately through of of of to times leverage capital has retirement This we EBITDA X.X voluntary to billion senior long our anticipated have $XXX capital allocated XXX share million for the approximately repurchases. is the of net $X.X Following notes already available year addition million XXXX, allocation. end achieve opportunistic of target million expect in been to

Vistra our will our from improve our on also the to debt, to focus which minimizing opportunities total reduce costs, continue we balance As and sheet cash could borrowing merger. total incremental our free continue to flow optimize savings provide

This As Curt cash billion will capital materially. flow available investments increase forecast of dividends XXXX, leverage or mentioned Vistra assuming previously, long achieve year to end target we at forecast forecasting is allocation more is have term for our Vistra’s XXXX. to through growth strategic through or is healthy in $X return repurchases XXXX capital to invest from direct apart than to share we our a shareholders to ongoing operations lines and that meaningful to EBITDA result capital that, operator, the long open term. operating expect characteristic adjusted adjusted shareholder over believe for XX% that approximately industries of one With expos, will value are from ready we flow, to questions. intensive convert free now commodity an other our the from of ability sets cash we create it us

Operator

the first with Instructions] Your question Shar Guggenheim Partners. line Pourreza of comes [Operator from

Shar Pourreza

given in of I mid you peak, is and of actually on correct So at the with in project, thinking around could somewhere the currently the So, about the you you sort shares, up are especially Curt, buybacks, weakness curves capital if right? double somewhat here. trading mean, incremental you available size higher cash how summer layer the the yields flow post you're free hedges than stock end recent digit

So Day buybacks could has thought that since even evolved of the size -- process Analyst evolve? has the it the or

Curt Morgan

could it evolve. Yes,

so the share feedback just that cash. think tradeoff price share then buybacks choice paying frankly be right down on with because been you very and we're made, ’XX in investors, a I think we're discussed have can do this down in going debt our talking once to flow this in really continue is, capital ��XX, way some real on make we're to cash the where dividend. focused, that's to a I we you our with or depending because that us because to board as could it's an is continue be pay institute of you've around, have focused use of that but we you the because to a best we're it ’XX, ’XX the has investment get And you is and trying not excess would the question we to because where whether strong, as think is to it's debt issue whether know, what be

both. cash what can better picture you right about do have now, then we than if talking we're look, Now

will right good I on going we and stock and manage focused it. significant price we at the given our still when I we're try at around meaningfully is We amount is it to we $XX and going we add continue gone, that. would to back share to look we to is, do shares. obviously say, to buy now, investment instituted too of where we're a think so And buyback were think because our very that that, program, above but that, be and north to company our have even left the for a have that feel And well buyback I'd

think you'll million. execute XXX see I So this us

what cash is summer to what want back year, of to want what be I we’ll going – end board the allocation think our look and recurring dividend. and be also the to come see the this market, and the end include year out able we by able we're we'll think, as well how about looks both near buybacks to a the in of I position about the QX like what out come like ’XX and talk this then talk as call we that we share to the probably might this board to to around definitely capital of will do,

Shar Pourreza

board dividend, just obviously, assuming approves when then your out the first? it pay – when And the can us assuming remind you you recurring

Curt Morgan

asking? the timing So you're what is

Shar Pourreza

That's correct.

Curt Morgan

Yeah.

think, is cash to question it I our about, looks a this that picture to like. do with what need board talk has to we the

need first about but don't So want one, look, would board did on ’XX it half, board would be of would be I would timeframe. talk this, that it and the the so, it we some more this out guess but I to time but in in time, the is get front we of to kind in in be if probably some it

Shar Pourreza

is – rating? since agencies mentioned as about And maybe it, conversations grade the then of the sort are investment on how any if with an there thinking rating just far you going as leverage,

Curt Morgan

We had get we’ll meaningfully late I ’XX where ’XX, conversation a yet, maybe agencies issue them. when that the we have like want not that's we’re because with still with above to. ’XX to engage a feel

this – it I also think we like everybody to first. sector. they’re want They see about else

we them, demonstrate execute to discussion. with had yet So a and some but engaged, have I not detailed not we think agencies, discussions cursory we had have have the we've to so

end detailed probably of our looks but have I a financial direct them with before like and plan to presentation in think will discussions, up -- we what into them we that's engage later see early is going that. year, doing what this ’XX

Shar Pourreza

synergy And schedule to the on achieving then there's it's ahead lastly, you are and guys like see upside. of just good stuff,

of incremental is on taking free as Just cash around from, some maybe but sort or bit then well? XXXX as retirements, about optimization, the of this opportunities? of of think closing? cold into upside, we prepared deal how levers general, of where incremental you on incremental refis, little one color going your just the additional in levers, post -- as where XXXX remarks, we timing two the levers of a story far it seeing is are the adjusted Are just any the further you you gave so as And sort there, some color EBITDA, coming sort are

Curt Morgan

Yes.

So and of just ’XX it’s each the each XXX plants, end these ideas process, that the very it is getting through performance different OP operations and probably get ’XX, up because time takes there's, initiative, a detail plants that's implemented. probably more later into probably to ’XX,

would our that about that's looks So that's all what that and I like. process getting through guess

the sheet, In terms expense ’XX. the interest, later savings incremental into through that ’XX of of could optimization be balance

are expense the could the looking available But us I wouldn't and amount. lot balance are is, to talk but QX little about not things a a and think to there that about. and have nice about till ’XX, that -- I talk we're we right bit think there will I QX be on that the extending have and a the there synergy at optimize interest it's think have thing talk call, I So those a that that to probably material little we’ll sheet the think call, now we into reduce may still bit things we side,

substantially else folks reemphasize used curves, using. it, a guidance out which then I of relative the with We think back were we what about expectation. was November, came increased higher. Shar, to That's that to you we when any March basically If to to end I October it the going have, want curves. in the, don’t think, we're everybody this year year, good And here

year once that, meaningfully already probably the beating So are that are this we guys guidance and curves, relative hearing guidance are lower. XXXX then which the other we're you to of already whereas increased back October into

we’re to talk coming balance market continue effort improvements about the to around and/or buy OP we're strong recurring strong going well sheet cash, a have do to the we continuing back then shares earnings, forward and and other catalysts to produce to dividend. So as want whether we

feel the talk next about. we in to we’ll coming the six and good So a forward catalyst lot have about months

Operator

of the comes Your Mehta question next Praful from Citigroup. with line

Praful Mehta

quarter, the guidance on give and in embedded So broadly. that mentioned this higher much was well, the us us higher you're any for you any how you can for this is that you than where tracking you had give EBITDA there full is EBITDA Can on at color as what obviously year your look sense was but quickly guidance. going to

Bill Holden

scale ability, think, to where front can’t. we want how much the I on ours don’t So can generally we -- I -- what, you know was.

Curt Morgan

the I mean is basically, in I higher million million. wholesale of $XX and probably $XX retail the in would line, roughly say, sort segment to was

Bill Holden

lot XXXX, year you to on to feel full guidance so I that around remarks, back Yeah. remember, that Right. we're I guidance full do a curves in think full to on think in May. weather year prudent and early – than guidance. with gave it's we not is had guidance the that this. so year year at full ready subsided have the and the We're August, call for know where guys are do think increased us yet against anything I for dime on said us October basis, a playing is we'll to, we given mean, And to you has we this pretty about at -- that, QX especially talk ’XX prepared not August point then higher because, a I we on to bit this out, the in and we hold will guidance can weather curves better as much the it's in but change the in using. and to others I fact ready for that’s on good and my ERCOT, want higher anything But are not

Praful Mehta

And then almost million here we NPV segment, of understand this negative. asset so XXX just closure the

You of said sitting cash sheet the support over can kind balance us it, investment how is closure a sense most kind of kind to of are of time. there funds support on you much give of asset this just to

Bill Holden

if at is retirement, and closure total time the at in obligation liability mining Yeah. roughly billion retirement then obligations every think already attributable end about the segment. And that to look and an it, the Praful, of that those half expenditures we’re which referring I has to what of the would was been be X.XXX and you for QX for plant total asset booked for

Curt Morgan

is obligation sheet the another are I assume along, Praful, which way of on all MTV expected the much. balance Dynegy of at at, because is, what future the has to both that number you obligations Vistra company, guys look say this not if looking So of retirement changed that were you right, asset retirement the the and

to obligation nuclear the total that asset closure There's has it Comanche segment. to plant, continues half and So be that same large been and about the of another relates about related the to rather Peak.

that on that. conservative in invest we rates against You return surcharge large obligation the against over to have the probably what -- time, this do we in securities that that to go against encore actually the earn reserve a grows We that. we as a go obviously that know a have that there's reserve surcharge is particular collected and in

Praful Mehta

no IPPs, in build overtime, of Curt, see you you play your the and better some in there's stability you it's And then and see on debates this kind keep volatility enough ERCOT, would preference, to do guess, new build new finally, just just do quickly prefer to market. like how attract ongoing movement or the what's whether what on have the come and I for where out. ERCOT ERCOT should actually to price see spikes some on it rather

Curt Morgan

But locks, guys somebody called us sweet the to for just can't just way in kind we situation it, about we remember right, like the the summers spot new range. It's one up. think what you what's it, concerned think of right going in is building be. particular, too good which look, be I for the a XXX I build we're I us called and set of can’t that XXX, in the

development. think out, think, not I new I would reflect that to there's out stronger would or prefer reality prefer, two we I would because actually, and three forwards see it years

previous to there is the into some went development? this I know. out, market new two did All -- they forward were on don't years and market people I bring three built that would people when time and Now bankruptcies. it overbuilt the curves know out came the and respond

push hard I so wanting And balance it's reflect it. is and always and we really overbuild and there's the because exuberance investors but reality into, forwards and market. that would situation, would projects we for control It's the be of to delicate of a that hedge to what the that over of because developers hope that then mindful can don't us

very not ascribe hard earnings it's see don't the forward to higher a reflected because you it, and in way at on look and when prompt don't see the fact, do in couple about you this. out power right going that run guys build And you is, just side forward you not thermal and as more is we now. that that, existing generation the and take the the to into forwards roll and have is We look at fundamental the been to it us, is it forwards gets plays into do it years. I curve, new in change, we curve year, of for the next on it. the We economics over the so analysis uncomfortable for up it's higher for the guess we popping when investors hedge that keep we'll then of company What advantage we but and open favorable supply/demand

dilemma So a it, here market say, okay, there curves when don't yet, a well do. definitely the fundamentals at reflect is you look the you the and

into what that's it point can the volatility All is take above doing. we advantage hedge and our view of it's and do of when we're of

also just going strategics people dollars and were that people, bankrupt would ERCOT think ’XX think there's to up are on billion if and no ago forward that again, come I ’XX there down plus now the development out rather in risk the again. take I the and reflect it's who I'd not to punt I ask me right see and like reality willing because long So where curves in see, side, a you what

asset, acquired difficult. to I be I that it’s this know difficult So it's when to even very ERCOT think ECP. when it's existing ECP, developers then at extremely at was financing very, I going ones on get was based we and I

to So I our fundamental that's what don't own reflect it's our forwards doing see view I -- right just think the prefer. now. own and That's that we reality. would prefer that's

Operator

comes of Steve question Wolfe. line next from Your Fleishman the with

Steve Fleishman

on Just asset the closure segment.

think but So the full the slide kind XX picture us of you could just costs closure the of I per benefits, remind the have reflects together. we EBITDA so

Curt Morgan

what from Steve. benefit shutting down, talking And to three about shutting down you’re the Is talking plants, about? you’re ERCOT of that EBITDA you're referring the the benefit

Steve Fleishman

the net just Yeah. want My the recollection is of savings EBITDA the maybe is is guidance picture then is, the cost, to your -- you’ve already benefits. of out this cost, part closure including this I both from pulled and of full and have the kind a

Curt Morgan

understand the we want I I sure make don't just to – question. have So

about, you say not the a EBITDA, savings is that you been because years, first tell way actual So, I there, slide I And that's the always that’s on and so why and it the and and decline tenth so in cash just pulled there, you you're the think had had largely I remediation that the mines. it the recall, after get five to you of I asset it’s closure then we that's which asking, of That's in will time think would the be that just that's, out we what you not is, what Steve, we're year further is is, to an drag you as clear, see get down decline going segment EBITDA in the you if expect could our that of we drag is over a XX And that the acceleration those expenditure, drag right, on EBITDA we we those thinking anymore, to the substantial have can well ARO. – have -- actual decided drag the see as are that showing from Steve, to we effect XX. it's frankly on plants, if the shut have but see and

Steve Fleishman

the those flow rid to to be as if benefit ongoing this essentially go versus trying free of XX, the that drag? the avoiding that we’re would just getting then closure, asset net so cash And impacts of at cost slide well, match drag, you the EBITDA XXXX, roughly

Curt Morgan

Yeah. bit over declines too And actually time. it a

as that we million into $XX but to it So think basis, Steve does time. did but over not million range the a I not on EBITDA $XX provide those, proportional decline, well, declines like

decline that you will. see would if you that So also benefit,

Steve Fleishman

of on the just then the – way sense any And investment to give landing Okay. MOSS size. a

Curt Morgan

Yeah.

we've been what have what confidentiality dealing is some think -- with. done issues, I we we've which

KWH don't I is, to we trying think, think it as the that, against you we're range, XX difficult take think against So was guys be here we're being think, and math -- it was what I of -- I you $XXX I want if XXXX. used,

to get but can directly. So want we on I want some get to to just what way, be as that, issues clear as disclose that, that I I around hate we be

Steve Fleishman

XX-XX it And or going are a the thing? own you investment like -- to you’re is whole

Curt Morgan

not on are it thinking just returns we’re the doing spreads and we balance Well, basically like compelling. about the sheet,

the bit just going spreads aren't grade, So are little but and investment but on with compelling. still that about they what's PG&E, a

XXX% at on So in point is this this sheet. do view would our is, balance we time, that

Steve Fleishman

whole own project? the And you

Curt Morgan

that all where and are going we returns on lot I’ve was into is, of the and so mezzanine back to things, keep And do know extent kinds me, we’d that early-XXXXs better like everybody is the simplify financing, the thing to great, project and the capital other to prefer this our structure and we to battle spreads the have Steve, our XXX%. our enough capital to a simple Yeah. you view it's late-XXs, aren’t scars likely got financing trying structure

finance at but balance be any Now sheet. could look better believe time, we project on it's it we to

Steve Fleishman

quick generation the on just – quick one your subsidized take and And then capacity on the just one FRR. order alternative and on last FERC potential

Curt Morgan

Yes.

So PJM? at

Steve Fleishman

Yeah.

Curt Morgan

of first again. at think Analyst Day, FERC Well, and Yeah. it I’ve all, this the I'll I say said

can come I zero. PJM, capacity in and much ICAP and are higher constructive but We've and actually they're years. solution out and – I remember more PJM just mean [indiscernible] I LICAP be going be I believe imagine agreeing are more that will LICAP has can't you with to negative today. I to the it when what ISO-New them also been clears, think that seen where we getting either to and but say I that will doing that up largely England, over but proactive equally net FERC are states FERC a model neutral. would something and

think I net it be will at least neutral.

positive could FRR we're be do offer get We actually way the to devil's the is believe votes slightly plays into FRR cut the we Steve, restrictions take Commissioner something renewables there and it a way single now the is basically got no three able here, which run said how that has but the say with in and there's votes quo a couple a to with think -- go details that which and how together on you this able right front to those market, important where an much to but to constructed with because because -- FERC curve, exemptions leaving, as put of now FRR inside now a There's out, it’s by there's with, the trying actually do they're Paulsen market, off. We potential is actually that against weeds neutral. three with try how there's signed I won’t the parties that, depending a I I we you've around idea, load right this of on I get different is actually to right where coming I out, demand how the much -- what believe details -- trying to don't against that don't do cobble a think out, the is much market. do there have FERC. shape, place number think going of – idea, votes I how we're work three people that into three on no I people forward is, credit too resource let’s put there's of path resource, the get to implemented, the to that's you work way, in group a think too, good, today the is to better no you is because to we're think not block want in be to into status are ideas we to want where

go to FERC think I be think you to – in have net I could positive. is think it a we or trying may it’s we neutral strength coalition, numbers we're think and when we but to

of I through states. what exemptions you'll weakest our in out are think a There that structures like. with in get -- for details the but again us, we that would the the FRR that it complete is I don't on straight shuts probably move that. a be is believe couple X devil the for view other that for

to for work good net-net some probably done we're positive, market, trying be is chance believe would low I good holding to that that our of do capacity the believe accomplish. states as coalition states' be are work rights a get The company the between there and are good to out with news of part that in and trying to FERC, votes standpoint. are because from try if some that, for but states for are think could FERC I to on live not with something I and that but a perfect, good that what extremely of would I has their believe is, success, that's role a things that things

Operator

Your next with of line from America Lynch. the question comes Merrill Bank Dumoulin-Smith Julien of

Julien Dumoulin-Smith

slide here capital on complete follow-up, So last to to just available. wanted maybe the

out that landing not You ’XX, and available of and about basically do ’XX code spread words, of MOSS for you XXX the relative XXX, timing think as take talked Should say CapEx a think between MOSS? million, take about yours, remaining and of we couple my about allocation. to how the for in XXX the XXX XXX million being so that hundred zip of

Bill Holden

’XX recurring be. financing well. the allocation dividend said we additional share standpoint, wanted purposes, that news of manage the it's sources a opportunities but well and there's do. cash good you we end the are whether timing construction The If use couple XXX a or do be could because day. be against can just cash repurchases issue door I we so, for so and up and a as what timing think capital we with may that and suppliers there as terms would ’XX, kinds of that then that I probably split out work whether in and that to a around, of do the XXX, cash We a recurring we other in project could that can be of dividend, – end how for is, half, we may things that you fair at that I if can could a come the and will that’s really for our from we half think the depend or modeling It is of things can payments. really paying or of think, of all and that optimize on think I enough There around

So we good it's a I think news have the issue. -- is, ’XX

to I can XX we manage have, more wanted push issue into think, if it's we we to. good a actually and it could

Julien Dumoulin-Smith

and in had in you slide maybe much bit lower across the the to real realized have elaborate doesn't multiply, elaborate on of on but little like XQ, the all seem just takes regions. estimated a of versus might puts to relative XQ, a some can generation, slightly bit if you little going there, commercial turning a the you just quickly price, you question, some be the ‘XX then Steve versus And XX too ops, can estimated changes change,

Steve Muscato

I can one start Steve thing. with at least

protocols If showing incorporated have think the of Dynegy our as and put where cost most that what on you’re generation cycle is less probably we’re during which would that talking the been hours their forecast. the about we've the ERCOT, I essentially in shows dispatched Dynegy plants assets, up, we shoulder combined lower

Bill Holden

cycling than the combined bit a model more it our cycles in models it’s Dynegy Basically, Yeah. little in the did previously.

Curt Morgan

helpful combined when cycle movement about you Hey did is is think study We plants Julien, ability think the this cycle run something. of that cycles and the I to a their for combined on XX% money. about I’ll before, add and off, time given in

of The margin we’ve it other sort of in then breakeven XX% all. really pricing at that And so band, a we of hours. a just move modeled those that if is doesn't have that generally volumes at sort margin move and type lot only it not that, of not and so reality tested and with there's back modeled within

Julien Dumoulin-Smith

on the all So cycle speaking, always this hence, moving much, of margin. especially combined your around aren’t of at is day, given outlook end really the that ’XX practically the expectation expectations

Curt Morgan

Yeah.

Operator

question of line next Deutsche Azar with comes Abe Bank. from Your the

Abe Azar

Can you hedge talk more gas strategy, natural about hedging heat you second aggressively why quarter? the than the rate in

Steve Muscato

out associated Permian, oil continues rapidly. the grow associated gas pretty with strong we look at production that prices, coming the with like When of to places -- growth

the Freeport delayed. was addition, In LNG

just combination look So probability gas those the upside. thought two of when at than more downside there we was we events, in of

hedge is why we So dramatically in period. that around increased percentage XXXX take our we out, XX% kind which the to wanted pretty to up risk of

Curt Morgan

into upside that I a the And hit -- of next but stop we're with almost give the away gas, side to bearish couple point and more have is the was billion at the of there's just I that can't up too we And we're give this out basically upside because where we of basis. to years. a on gas and of thing we're pretty plus of able X our downside on do And mean, ton any and the we details, add gas ways costless skew EBITDA that our get willing one on I’ll doing we down the some keeps in gas coming. of target.

is do see of little you're bit probability a this key protecting that of preserving greater band giving you're occurrence. which while really -- way a in of we we but downside, upside your is, away, the the you're where upside So the and

Abe Azar

learned tightness. the the going balance than that summer. assumptions in of different in you of future performed way from the the Is summer supply supply have what there into is, it demand stack kind and about Follow-up anything your Texas makes

Curt Morgan

meaning add add you and some summer, fleet, three last can. relative the Well, have in materially say the I’ll to of has if years, been assets this fleet entire ERCOT want The outperformed I’d there, meaning to outages the then below. last, Steve, you

here is But in a far can -- they question the on, happens. that And thing the The outperformed wave you got prepared, of argue, get what so they think, did, has so they people another or we’ll good the think investments so lights some did the I see have coming, that's and you right, has saw needed you plants they market it if real heat that get summer keeping and it far, of two, they I but for what from for the is I performed. fatigue think we've happens what the seen.

come little bit we to you think it just think did that? of you mention in expecting to was supply want see Steve, were a not imported came come I largely within expectations. that We in in, and I

Steve Muscato

say real that up and in I would in Up in the are SPP, the can that Panhandle the there back forth. Panhandle, -- only units issue Sure. that switch is

they into watch. the over guess to that's lines and flow the to Panhandle, have able because were so I Panhandle that And we material switched ERCOT only the really issue

Curt Morgan

And that's not that huge of been because although recently, dipped. haven't surprised a it have we that's seen prices but

swing And I in, we so huge think it had that wasn't but it strong surprise us to because happen pricing. and a did that have to

it saw worked. has generated The our cases, model I offsetting. that higher is mean, incremental it cost So generation for. was -- but news -- business some had I way prepared volume, the two generation than more those the value in the in for retail our our think integrated I our think, in were we we to in and good largely come come

it pretty darn of at us. worked the the well So end I for day, think out

Abe Azar

ongoing way And then don't there bit, to have divested the assets shifting nuclear from the liability, companies such some plants gears recently? opportunity an sell the segment an asset similar a closure have to that you is the

Curt Morgan

to answer is that yes. short The Yes.

number We're -- but and us others that That's have have of that an reduction metal of against that be sort and we’re can to significant not think manage on we not the the and for I optimization it, conservative [indiscernible] we but expect put would a I an was that do you would of that liability you in. had and scrap they RFP looking have I of will these and saw -- down, paying We what that process being actually in running same. to baked to expect opportunity. scrap a guys as appropriate that

thing a as I relates we mines, about have that though it want is to one to make point on think, remediation, do I do the to that work.

we you think, the but wanted that else a and and being I in site we with land to if is, it some could you somebody that’s offload the it, to they be is that interest do nothing of you with there point recovery have There's -- you dismantlement be time so a to compelling that. plant, power to have metal for scrap the better. wait can market to do, --

do timeframe, of have As pretty down. to you it's have you much shut the those ash after you relatively relates immediately but a mines, near And that to remediation term. then ponds, it

some we're because it, that, bet don’t don't so flexibility can to trying around if little on but this of we a we a want bit meaningful in out could to change RFPs do have it. of know that see in We out this, of run but front we get why liability right we now these want so to that's and

Operator

from comes Michael question line of with the next Weinstein Suisse. Credit Your

Michael Weinstein

bit ERCOT, In with that point? one beyond beyond can mentioned buy, maybe doesn’t this willing in the about, year. what's driving I you year market reason conversations participants other extend tightness why a Steve, to factor talk at see out your people the you you behind little aren’t guess, puzzling one

Steve Muscato

what it's retailers, that's buying just One by three a typically buy they things. two lot typically demand There's right. of I to dynamic. think years, call front, we the it, driven the so don't contract for on is period supply five

like sheet. on I a of in market, think companies historically cycles the balance other saw prior that, to come And me kind in come this like other previously we've strategics [indiscernible] mean. show finance, seen I either Exxon thing just, combined is and is we building

seeing to think So and see a build, but of I there's it’s two irrational those think any people combination I waiting are if kind factors. type of of

Michael Weinstein

of XX% the going generally is rate forward curious? just a Also fixed direction at kind upward or that speaking, Is just – conversion a from number that you an trends something cash a time, look EBITDA. over that flow that as in

Steve Muscato

– sorry I’m

Michael Weinstein

More for Yeah. The cash conversion Bill. flow XX% rate.

direction or of that's kind that over trends – a is or that that that time sort of in consistent something wondering something view is Just constant if another? you a one as

Bill Holden

Yeah.

on think, general, in it’s average over I time. XX%

types to expense, did we that potential the conversion some forward, things flow the free for to forecast have Now, in like the ratio. transactions of things balance the Curt do cash become pickup those mention going additional reduce of interest net a to

Michael Weinstein

allocation mostly safe second to the for results million Is that’s that that that's extra this so to year. by is half, the seems available program, far And be -- XX capital say? the the driven --

Bill Holden

sum before credit revolvers new biggest that $X.X we mid-June, combined that Yeah. completed I able billion. debt the I The that transactions less we secured financing a think the when the closed of were in changes, had get company mean we -- was facility that bit all to that. the were we a revolving than little

by So we've we requirement cash minimum through about got were able $XXX – into and cash. essentially, million reduce the our to that’s fled

Michael Weinstein

that's capital that going buybacks, be maybe the addition misspoke almost additional And then is you of to I else? everything the at definitely allocation, Obviously, part be but record least buybacks other kind you I of thing, see that more comment, but Curt, in decision, would would as board an you you to definitely in think a was certainly be or this it, be pending have including mentioned, may you just think, something XXXX. just one said off of part

Curt Morgan

No.

trades to it’s value. where our think of stock the as I relative function what see a

couple doing consider would may we have the some the real that little next are then at up may in our debt, course pretty what Clearly the we other picture would some to then down the do the that of that's bit I point But was One six than capital bit, may sheet I helpful and would shares would cash, I if up Illinois shore good got is there's company, is paying what a investment of but that things mentioned a looking focus for allocation likely I and a those overall, that we return rationalizing months. cash is to in I may we think is two of and allocation be refer a balance what things that So, down the debt and pay over that. those company. answer an we fleet think they're of opportunities. rationalize make doing. opportunities be clear. look things driving shareholders to our the cash our that might focus but at think as we've other a that if the recurring I attractive, becomes, the us picture Bill that, use end of little might can all It’s portfolio dividend think

Michael Weinstein

more of XXXX issue Illinois just Is as you Just you rationalization, could in and, do point, New that When possibly the you one asset York. made? question a have past, and as talked the last you well? one California be mentioned, that in those asset decisions same about think on

Curt Morgan

you Independents play Well, to to on better strategy maybe there's and periods. we're to over I adjacent have ’XX, say terms later think out at our that, some and right. would good I make make New and decisions a I’d We're York the money, is could year to other as we are MISO of the the and If in opportunities. how do this to play sooner have early looking to expect as that. we losing choices going think plan. us Independent’s in plan is other the very that actually some multiple markets whether

have going feel a put plant, to going to pretty would to So can a do we In a decisions continue current then place a battery RPS any be compelled and installation. work us don't XXX and to need they're for site independents to around more site, know it going It to installation. building we're because transaction. and grow nice accretive that it's has that perfect something though we over even do batteries we have have, the do need a think PG&E there because be They we retire and next that. battery is would strong is with go have Landing we're The is to smaller to will opportunity combined business going useful they batteries at years. Oakland made to California, we site contract be and and perfect to to with value around to that cycle going We've proposition for for got in RMR be California site their so to put plant the additional Moss battery that several will think the current, good that a little megawatt we need a basically shut to a installation. it's and away the there's be

term save and in us. could develop you probably little see about or sit more nice we because where MISO others So FERC to we California, so wait what thinking think I now business here save in yourself. think action, for I can't that's is to legislators We a got would but is or near California, we're

Operator

with Your next the question of line comes from Storozynski Macquarie. Angie

Angie Storozynski

comment but answered, growing and asked been have questions a about your you made retail my count. of Most customer

to of you the way a books retail be make then in this it missions you’re summer past more summer this it there this far acquisitions, think to change so Texas to organically? that business the perspective, difficult do happened has grow in does that, absence through is Texas to the think actually large in you your that acquire business maybe grow and is going and do what Given

Curt Morgan

of favorable buy to couple prices was we're We're in net growing to that experienced, One, it now things. everybody that in I’ll a books X.X%. our year. ERCOT to in So, make the think, that remind customer count and attrition customers, increase down we've I growing actually more in this customers fact, volatility higher

think this that bigger whether spikes that to is be they entity people a result direct actively response that's in go in with that prices somebody of activates up. somebody them -- prices whether people phenomenon that because and a book if us. happen that to I their benefit entity we or to then is see it’s want raises continue stronger, come to from pick in We've and market, going to we seen our think ERCOT only it we're that. like And I to think continue going to tightness

customers, retained one what’s more for those to than and picking customers thing, think really to with a get work in that's anything, to customer one to of us able before powerful up keep do while. typically I and of for for saw important we been able where the the and because we've customer up customers then is that. pick but way years can a number ERCOT we able we be number the this we customer were them retain We and

and us to us we situation whether comes it's really advantage an we we found lot number buying got organic growth, worry we’ve real So and books a of this and a of the have of there's be, regard With it's that's is that. because at combination that it and what that comfortable feel when in and you a whatever just it purely we looked this just is don't but make with something really. whether like can to value to for maybe are but we about or you've precisely -- business why, sure might picky, model, something call it's we reasons retail,

this on are it's shouldn’t to organic over to a our So nice basically hasn't put anybody embarking picked business came to have because a an methodically. into business a of grow out not doing out We're going and on to are out we the what we put together to effort will our retail we prudent, organically footprint ton prudent performed on it to organic be NRG basis, grow of do like of done kind skis our that do NRG a will get business we and it, going up expect going and of effort Dynegy retail an million that. are outside And ERCOT. it going already to it that is we We've grown work be money basis. but you not we're that with, number. And who's XXX we've

step point -- the to in near don't some term at acquire? something that, think we at be ERCOT we in proposition, can find Maybe. do there ERCOT, if we we like just grow going if would interested and was and you're in I larger somebody see selective something saw we had buy buying retailer a be interested, would If time have an to But because was right wouldn’t and we struggling do value it. you get a XXX to now I Could million it books, something. that or we would that, we in position,

that. We for a I do and but have I this is open us think know, don't time one for at that in others. know of looked be we ERCOT maybe We in particular. retail would to opportunity

Operator

for This closing concludes turn the Mr. remarks. Morgan question-and-answer like call. to now Curt to over portion I'd call of our the

Curt Morgan

call. be talking And for much in our for joining QX very Thank earnings your us again you I’m to thanks on sure we’ll you Well, soon. XXXX interest Vistra.

Operator

conference today's concludes This call.

You may disconnect. now

Vistra (VST) 6 Aug 182018 Q2 Earnings call transcript