Earnings call transcript Q1 2023

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Operator

Good day and welcome to the Vistra's First Quarter 2023 Results Conference Call. Today, all participants will be in a listen-only mode. [Operator Instructions] Please note, that today's event is being recorded.

At this time, I would like to turn the conference over to Meagan Horn, Vice President of Investor Relations. Please go ahead.

Meagan Horn

you quarter joining XXXX thank discussing investor and first our results. morning, all Vistra's for webcast, Good

Today's discussion you is and relations the section being of earnings broadcast live our copies at on release. website www.vistracorp.com. investor There today's can find of also presentation the investor

the Officer; and other Leading call during Chief call, address They joined by Executive Financial senior today's Jim Moldovan, executives Vistra's questions President and Burke, Officer. part the Kris Vistra's Executive Vistra's as to are Chief today of and second Vice President are necessary.

to other release, presentation measures. the in discussed earnings directly today in provided Our section the call Relations the press Investor appendix include to to and comparable Vistra's investor financial matters non-GAAP presentation the website. in are measures and in certain available our of GAAP most references release Reconciliations the

certain are assume Also on are as today's today's to projected date. based Such reasonable We materially or could from to assumptions update those differ obligation we to and statements, contain statements only forward-looking statements. to be cause actual forward-looking of risks implied. discussion forward-looking our results no uncertainties that which believe subject

I safe included slide on certain and use industry harbor of included the review to data on in and presentation encourage of explain presentation our the the the statement investor the that limitations measures. of listeners two website non-GAAP risks all statements, the forward-looking and financial market

call I'll over and the our now Jim and turn Thank you, Burke. to CEO, President

Jim Burke

our quarter morning. Meagan. XXXX Good joining earnings you, call. Thank first you for all Thank

our and are four five. slide We priorities, making on the we entered focused begin will on year I great strides. strategic

value model integrated effectiveness. continues and First, to demonstrate its our

comprehensive We we EBITDA we that executing on available probably as hedging significant. XXXX. liquidity said opportunities opportunities year through locking for believe spent XXXX was utilized this the of support strategy were a majority recall, earnings in strategy last to you XXXX we As our additional

real than to into which weather experienced strategy prices. XXXX led saw power was markets of cleared This first value we across lower as the expected this translate which quarter in operate, major mild we

at hour hour first While clear megawatt prices realization $XX prices hedged around entering we per a year. highly quarter we of were of saw $XX average, power given on average a results our the approximately reflect megawatt

In in years been year. the more to this we increase have compared and outer seen open, spark addition, prices we where as last time have spreads

profile commodity We provides because this it have balance believe hedged our only continued return serve also market, secure and opportunistically can we our on not is position maintain because ensures deliver resiliency commitments sheet, a shareholders, consistently to earnings an to an out long-term. as potential. it fleet increasing but uncertain strong to we strengthen our reliably despite important our for the transform an our to earnings enhanced capital year customers, of We

approximately May Second, robust. will $X.X returned of a highlight shareholders our share shareholders XXXX moment, billion billion aggregate to provide we but a our in of Xth, plan have the repurchase return that capital detailed want X.XX November, to Kris our I remains XXXX. from just authorization, capital consistent to on through and allocation update

dividend in increase we over with representing Additionally, planned a second our as paid Board $XXX to in dividends $XX.XX, XXXX. million quarter XXXX second approximately XX% on in an in common are stock track dividend approving amount pay the the quarter of

Vistra $XXX the common work the dividends number provide program each of dividend expectation structure tandem of is of million spread plan the stock. a in as shares shareholders our aggregate repurchase dividend share quarter, across annual in with together decreasing our The growth to with of

sheet. a focus our continue strong we on balance Third,

Energy Harbor expect are margin the we amount this to delevering opportunistic close announced for we March to and/or utilize positioned see to of acquisition return, the we in cash debt As deposits year. reduce we incur of that to

While the approximately short-term were repay million quarter flow able first debt. Vistra, of we cash quarter the to free $XXX for lowest typically is

remain Of fund the course, EBITDA. Harbor significant our we're focused excluding the grow achieve expect timeframe. Energy non-recourse come Vistra on we we which net acquisition, any three of debt But of over of our we to a to to expecting goal year long-term net at with to expect the the leverage amount a XXXX balance to debt Zero of balance which than less in ratio, times, XXXX

excited will online about will fleet additional Harbor, is carbon generation regarding today. megawatts ago very acquisition have Finally, acquisition, double an than months we we X,XXX more our With two expected in this the which of just this grow close year. our by Energy which the are to nuclear announcement later PJM, zero

to milder than normal Turning weather operational this EBITDA, and $XXX ongoing discuss results. million adjusted achieved will offset hedging quarter's We operations performance robust six, slide of I the activities our strong helped U.S. throughout

growth achieving significant team a while retail our customer XX%, safety. over number three priority. our team Our teams and counts injury safety commercial operated their on generation and operational fleet, without has margins, attractive maintaining in performance diverse delivering availability large strong of years and generation maintaining The while with generation focus ERCOT one across retail the remains continued and a

ability billion EBITDA the billion exceed ongoing of billion $X.X adjusted confident ahead or midpoint Looking from we are reaffirming range. in guidance cash as from for our flow meet also guidance the growth operations operations $X.XX $X.XX we XXXX to the before our our for third remainder to quarter year, of of ongoing $X.X range to the adjusted We're in billion free announced XXXX.

while summer opportunities be year, to our guidance would otherwise or will adjust including go it detail narrow to premature our Kris range with years for XXXX. cover we in months, more course, Of months the important ahead. the bullish on nine believe we remain in and

acquisition. call more quick first Before Harbor the to in I Energy status I wrap performance and the of our over to update want to provide the Kris turn quarter's up detail, discuss a on

each approvals in by filed needed all close anticipate on to year. end seven, agencies this of we time noted of with and slide three the As receiving approval key request have the

the a of reminder, and to permanent As but committed to commitments closing. our do and in between bridge sufficient entirety transaction, close we amount financing the expect we've financing with bridge place replace now an

think adjusted million basis. at is adjusted and approximately through forecast XX% price opportunities years. worth improve, inclusive noting I we Energy estimates EBITDA seen we midpoint with of growth Harbor has forward in Previous for This opportunities synergies cash out before XXXX flow for XX% open indicated financial that XXXX to our as improved range. curves the year a pretax have of $XXX Finally, March out an it's also shared average on in free

see average EBITDA opportunities from adjusted Energy higher curves, the beyond price original recent be and this midpoint for Harbor Given than estimate. XXXX we to

financial and EBITDA to We expect provide will company closing we after. just closer projections detailed combined the more for that or adjusted other

I'll Kris, now the turn call to you. over

Kris Moldovan

opportunistic impacts Winter weather that at ongoing $XXX Thank strong driven slide were for was offset for backing of in despite guidance hedges money by recognition known PJM primarily quarter delivered year and of EBITDA, benefits the well $XXX for you, settled as and outages at into position of and quarter. in PJM first impacts headwinds were bonus Elliott. the below relating time in prices cost, from the million as operations Jim. pricing, were Generations migration significant including $XX capacity by adjusted Vistra service and nine, costs, Storm on the milder unit were generation results times set, of a opportunistically lower the timing retail. when net generation Those to the partially hedges including entry XXXX down loss planned acceleration of the million on Starting million default revenues, from

was the in important strong we in range the first that for quarter are by retail the to of impacted margin also for what weather, it the counts coming mild management, While retail results is expected due into note year. to

the due entry we the of fourth EBITDA anticipate to winter second all see continue power shaping, higher quarters. achieved and ongoing months, substantially be Given the adjusted to we and for retail in the in summer year to operations costs

in ongoing confident EBITDA operations announced that million ability billion third are our retail or adjusted $XXX $X.XXX midpoint for the on to range we call. XXXX meet to of of Accordingly, quarter the our exceed we

allocation. a on XX, slide Turning capital now I'll to share quick update

billion beginning fourth quarter we of XXXX. program the $X.X As had repurchases in share of since approximately the Xth, the of May executed of

approximately cumulative repurchases expect aggregate of our billion $X Xth, XXX of XX% utilize as of expected a year by in $X.XX share to that XXXX. to authorization the remaining were originally shares million program approximately of May significant outstanding year number billion of in as XXXX started at least of account We calendar Notably shares, with outstanding the reduction the in when XXXX from November planned. had approximately fallen

second or program result growth million approximately dividend received consistent stock and continues per share as common quarter To dividend XX% quarter result share, $XX.X of XXXX, per $XXX a As that compared quarter our XXXX our million the higher the of June is the year purchases, the of in on dividend approximately of second XXXX. shareholders. per per by to approximately to which paid payable our in share significant is share XXth, in dividend end, per robust $XX

less our shareholders, committed any times. steadfast a debt we remain long-term to to we Accordingly, of excluding directly a in strong we to net returning Zero remain non-recourse at commitment While continue sheet. leverage capital also balance three ratio, our consistently target to Vistra than

remains growth Finally, our on Zero Vistra track.

the from focused XXXX things, of over later be level XX% preferred to, December, needs are in year. and other securing among stock allocated the this the anticipate net financing We financing green project proceeds the growth CapEx on of the the place to have company. no issuance such first non-recourse than or portfolio end We of support

update as year XX, of curves slide Xth. an to May price out Turning on forward the provide we

opportunities last $X.X announced XXXX operations estimated April range adjusted quarter of As on year billion of XXth, XXXX recall, billion XXXX that the we years a EBITDA $X.X for to you on midpoint based curves. first potential through we call ongoing

currently in with approximately primary execution for of and now hedge hedged has do continued XX% at through our all approximately XXXX at update XXXX want this and of approximately higher we XX% guidance not of markets, of year, the upside the in comprehensive to average hedging balance the to range hedge range XXXX, XXXX XXXX, did on there's the now in each we expect that before XX%. initiating our XXXX markets and note across program that each to While XXXX, applicable prices believe light we at

a also expect, a our against you progress that strategic forward our less open on executing our you priorities returns. into second hedged, but call. on is As our committed to remain We shareholder opportunity, translating updating given would position. to range success which significantly XXXX and creates wider significant We look XXXX quarter

the ready open operator, we're line now questions. to that for With

Operator

begin We the will now Instructions] [Operator question-and-answer session.

Shar Today's first from Partners. Please Pourreza proceed. comes Guggenheim question with

Shahriar Pourreza

Hey, good morning guys.

Jim Burke

Shar. Hey, mornings, good

Kris Moldovan

Shar. morning, Good

Shahriar Pourreza

morning. Good morning. Good

on what kind touched have guess late, so of guys sort of inflation are floated this numbers is quickly, you first we've And flag two-year you guess commentary think you the revisit in but what Maybe of your seeing could costs strong, Thanks. have O&M O&M increases of XXXX. and been in as those providing. then, put I few obviously, those? in of update peers in I kind I guess, point a guys around embedded those numbers seen differently, you well? I been what

Jim Burke

Yeah. Jim. excuse your This me. Shar -- question. for Thanks is

Shahriar Pourreza

Jim. Hey,

Jim Burke

we've forward the a to at trying a The is a noted, earnings of the midpoint, that. end last to that and curves talk upper construct we X.X was had question, end started spring we the you're opportunistically first when the at to XXXX. to we and this got and started you about as we the two-year, if the range time X.X your which the XXXX were see XXXX the we out speaking out unhedged two-year power to there's XXXX, improving, still the but When out. obviously move of about we midpoint understood I we hedging put use signal put it into X.X of to range, to business view put we And been see which to was market lot

we've us hedge, to see we Since continuing up. continued to move

XXXX, including X.X without move to that to is up see for this XXXX and start Harbor, it sort midpoint in X.X, and we we curves, see X.X than just range. that, the XXXX have year of to Xth the Energy of midpoint opportunities, Again, around when range end of for we bigger is formalize inherent guidance variability managing the the those so this at this given the we'll through business. May the using higher of So, opportunities the a would

even XXXX, perfect continue more XXXX an we're open. these But XXXX, as power further have in we hedges, We increase in we're these and some in from improving to you see we even for open, more numbers. rolled still to definitely XXXX, we this And hedged forward earnings XXXX. obviously, see XXXX, if

Shahriar Pourreza

but O&M I'm inflation just embedding to Perfect. are you what's ask, Okay. then guys those sorry -- And numbers? in the

Jim Burke

Yeah.

it built range. what this as gets, line that solve we're contracting is we competitively but And that have numbers we're the don't run input. inflation, the category trying chemicals OEMs to seen if any in which in Labor between our company, we on process. obviously, it and to takes of are into competitive the We're from possibly which X% as and So, this use power Shar. outages, something But depending sight the consistently is XX%, you a have can, for, and go will, different procuring is nature production as of we we it's doing O&M we of to depends referring from different to, on variable using, the business. best

Shahriar Pourreza

just a right for pulse Perfect. on of get Perfect. seem cycle to now, expectations Anything quieter. And love sort maybe ERCOT. in would little legislative and to resource then your adequacy last, be check a the I

Now as session this that items. comes guess, to are passed I Senate what several Thanks close? pathways your the guys. for expectations forward a has

Jim Burke

Utility there's but especially you soon of actually helps consider about the down Yeah. to Texas dispatchable and there's a needs nation's we've to for solar, point the in January. And I timing to impetus process that of a mechanism leader that, from Public generation up, to the Commission attention that be stakeholder nation's so see Austin. is mechanism -- talked was in the in would performance credit bolster grid view. three and wind such think reliability. final in PCM was when is reliability, legislative begin create of how to on that mechanism on and wraps sustainability weeks from able view, to a the it's for Sure. by depending a reward Sure. this the coming appropriately lot That which the do point the adopted the be process market the The that been leader we've

from to the meant many and in I bills is still Senate, There's it's for production forms new on the can credits, considered existing the only create so which think our pass. ensure address what of prices. But incentives of to the doesn't predict prematurely might house being standpoint, hard not the as other generation generation, power generation are retire getting know, pressure but market that because tax some you PCM downward

Texas. If there to think our competitive it'll customers to So see moves PCM it designed it's continue invest fire and our serves to from think standpoint, that the we building business we We the integrated want in reliability designed focus support for well is in bolster a intend well, if We generation that forward, important. obviously think a the is and well we is would gas model PCM. market.

wraps updates the grid this And of weeks have sure, to is solution we'll three I deserved affordable, part and on view process. we and as think as the But well go to what to keep that the state, is policymakers our more up. obviously still and we be the through as we we can the So, in stakeholder but we'll and provide have takes reliable, our much involved attention be session do think this right session focused of to aspects want are here on home it sustainable.

Shahriar Pourreza

Jim. morning. helpful, Have Very a Thank much. guys. good it Appreciate so you

Jim Burke

Thank you, Shar.

Operator

question Dumoulin-Smith Please Bank of Julien comes The next proceed. America. with from

Julien Dumoulin-Smith

talk little today, around, further renewables there's Look, the looking good you. other about we'd to attention. I in what could got angles on transactions. love Energy especially of further Harbor, maintaining time. a that success Can about or But leaning Energy commitments talk your about how reaction the or and that buybacks But wanted up your nuclear Obviously, hear retail you follow lot would you have throughout. Obviously, you Appreciate activities? there whether just Harbor to, thoughts for and bit think of into morning that's inquisitive in Hey, include folks a thoughts. potential Thank can you perhaps to it. a in the team. NorthStar

Jim Burke

good you, have stayed M&A. away Julien and Look, on morning. we generally Thank commenting from

those that have be prepared for to I think comes and activities of you your one opportunistically it's way it.

little be the say, to what on a opportunities. You have always hoop we'd bit around hang

integration process However, I a with think us. and transaction with team. the with agencies, our the but is Energy one Harbor Certainly, not focus through the team very key it's for Energy approval at our significant now, getting the only activities right the Harbor

the highlight a it generation to a going with a amount obviously, transformative you we're the think transaction. because balance lot to The not those fit carbon commitment that we our reason just ways, find with of that's double four used we than of as going because a four within we capital, the of this in how is it's that sheet of everything As to. is the business. priorities returning platform aspects and have note, strong free repeating made. we've much and I business keep have And things priorities And more we to

the think mean those transaction Harbor going those that four stick reinforced. I principles. we're to Energy with core We

to ever off to needs So we've that at fit but Julien, that the the and regard. nothing looking it, criteria from standpoint remain out laid it disciplined of we're table going in the is

Julien Dumoulin-Smith

here. caused just just you what a or in significant process? about I with approval like little that. comment generation be related, seems transaction it. then slight then I I delay Look in the the And appreciate Got mean, you No, process, talk fair transaction, can -- a close the that, execution the respect jump might to what itself, a there enough. and mean, bit?

sizable platform. retail You all pretty obviously have a

building quarter-over-quarter think retail need the you considering might customers. will? deemphasize in Is that that further quote bit platform if a things to with some here light the in priority nuclear of do a How less unquote Oregon? balance about declines retail to retail little Harbor, Energy saw business you out generation, that of that You PTCs like want

Jim Burke

we in the first Well, filings NRC be well and believe for quarter, the Sure. an the think fourth filings, the efficient approvals about we approval, the license scale on early towards the made We a the which on April. progressing more working We on in the side We October this is March. track I where we're key think matter, I to transfer, process. closing is on early actually announced is the go. of six-month in of that We've think, terms the talked would achievable. transaction

Julien, as Harbor. for numbers you related know, into we don't anything XXXX have built Energy to our

opportunity some think far that tracking concerned the there's there. at early just approval hopefully, good. so stage, we're So, but still But There's in I about But this nothing well. process. so we're it's

currently gives customers We've On a which made free do the retail ERCOT the some nuclear it retail. the energy more strategic has couple us obviously, an in reduction side, becoming credits, to some base, operate the bolster outside emissions we are some us in market. Energy states. And that offer. our units Harbor the platform asset does exits opportunity where can counts The including like attributes interested areas been of in give of in more an

do warranted. our model. is still our reforms market like in we some Midwest Northeast We of I retail think markets So, the the retail, integrated like

there is differentiated addition with a there integrated your a still outreach strategy. to a these Texas But and been continue a serve consumer do being innovation marketing the markets, is little it comes being in generation. about, need way business open competition true with limited. markets the a some there But retail markets intact up the efforts than to from and channel open to stakeholder differentiate your reform of level in hope able is has our to to from acquisition, perspective. get in the We rather this we certainly business products, talked in more see open to degree we'll terms or it with of a because these It's customers a business and to well these to of we've model you which As innovation. of bit business can hedge Julien, assets

we so, Julien. do And do some have there, work to

Julien Dumoulin-Smith

Best right. soon. speak All luck I'll We'll see, of guys. leave there. Excellent. it

Jim Burke

Thank you, Julien.

Operator

Our next Wolfe from Sullivan with question Research. proceed. Please comes Michael

Michael Sullivan

good Hey, morning.

Jim Burke

Hey, Michael.

Kris Moldovan

morning. Good

Michael Sullivan

out curves. on in Wanted just Kris. Hey, think the major to your could seeing if then on you basically you that's us view in just Jim. where Hey, if current XXXX, based XXXX give so, your confirm just markets. point the dynamics could you're supply/demand upside on based on to own things And maybe go all way of

Jim Burke

We Xth May you. base this You of bet, Thank using curve. off Michael. Yes. the

you Not it's not outer the out something deep we have these So, this upside? that a is horizon, actually have know curves obviously, chart, we liquidity laid a strategy investors still but is and function curves curves. is It Kris of first years. and a of our of have May which outer of is, to Xth. the that open, we based based what view. initiated infinitely of those in where about the years, as As three-year follow, on some point on the seeing time we in talking hedged, from that improved some in are it's are the trying We his

comment. curves down Muscato, our seen come of of the President to I'm the we've factors, number because of ask a going of Wholesale, while front Steve So, to

and share actually the think these We've to a seen opportunity the for fall Steve the it sign Vistra that this by obviously last of and we where how headed. year factors terms some we as impacted think see market, that helpful through to see But few a Steve? might being thoughts I late markets actually dynamics long-term. we strengthen, that's by out and of for be of years in

Steve Muscato

dry marginal the prices, I start kind we is a behind has the driver now marginal happening, not gas, the is LNG shell, if Hainesville, It's pipeline Jim. a of with which and growing feed wet being Permian due that's growth add, though Thanks in the the Marcellus which limited Utica natural big would all the become shell. even to shell Sure. power We're away the shell. export a really take seeing it's and in markets. limited used that's growth to

on gas, support least provided why $X above, and and which seeing natural it XXXX really that's is you're stay So, at beyond.

really that look curve a of weather, excess forward, end a you you mild once the front XXXX normal out to some XXXX, if by weather XXXX, The you influenced should itself going late inventories are is storage if to that assume -- get the period. early due balance

say, of you're see are terms to renewables each time, Not this but markets lot movement integration the of or it less PJM lot replace it. seeing in Texas incremental lower a a market, factors, also particularly see in effective only in same In renewables, have like, speeds you over like of fundamentals challenging the in stack you PJM, leaving a it renewables. slow because and But Mico. irradiance like takes markets wind that capacity doesn't in coal

of order could same maintain one levels nine reliability. You in see replacement levels five needed to to to

European That markets problems You the gas east also with volatility. cause markets. recouple coast with also extent have could to can they some

in Jim of And the ERCOT some think I terms in things reform. of already happening are that mentioned

solar out. pushing have peak the You

occur coming You only extended that doesn't help front. heat which an into it have or one wave really ERCOT, extended hour cold on batteries may

the an the And or going renewables seeing and in term, determine the and appears coal with it be least going to time, around win over assets out provides in is what to we're I intermediate this addition stressed. fossil collision so, gas which uncertainty gas at is going fuels, to fleet legislature think It's needed. be happens to aging and

that's think we so, And fundamentals out. supporting

Jim Burke

and a predominantly add, obviously Vistra Michael, our the and a to are XX% Tradition gas addition of think cycle forward Tradition. these forthcoming also Comanche by course, even Vision of that more environmental Peak assets how go also potentially forward service that a Steve, We sustain And Vistra on thanks and the integrating of grids. in basis anchored seeing combined in that is assets be I'll Harbor we've significant grids issued could that resource a fix while renewables. and it's for a has go And is currently Vision, regulations a Energy helping Vistra Zero of able fleet. some coal value changing, reliable have on dynamics that. then, just seen It's Vistra on our lot basis. our pressure a XX% assets a and to of we're that with these been operation reliability put Vistra providing to on handful

So, we actually some this like rules an could and reliability that call think has to time. the it's are why markets, our come a forth growing these from our earnings business customer needed think through whether in for that going whether be or assets with position to and actually we of that's thesis environmental long-term the standpoint, economics backstop And purposes. asset commitments. happens And potential we our see firm what what the we it's we up competitive horizon, incentives the of

Michael Sullivan

Maybe super follow the That quick one rules. on up comprehensive. Thanks. Okay. there was just environmental

were where plants your you of you're it to right in whether terms keep term Jim, have like standing now, impact any planning you of online? that into to from put that some So, coal near investments be

Jim Burke

the on years, sites. Michael. for times XXXX, the and XXXX dates things. retirement that of have does our term, it or which except in that Neighbor Obviously, ELG Casper -- CCR, horizon it Good for A that the was did and stayed. sort multiple our near Not two talked will Rule, couple have we've recently of rules communicated about coal have we impacts fleet,

it that But state on for think of reliability gas here could active. good anticipated even and large challenge. an we to But no, reasons in the that in if a were that CapEx the don't stay, for power participants as to challenge no well we impact we're result, not Michael, in Lake have outside with as certainly this of done near many Martin time have revisit that transition bit circuit, as the some the to old industry on fleet. maybe That is impact term the out. from impact Again, opportunity could Obviously I impacts fifth some pushed of nothing needs but but units, think were it's be be our you terms rule. So, occurring of Texas -- take the thoughtfully, a implemented. only that spend sort party there standpoint going stay our that's the this the we little and to There's so grid fully state. out any to important

Michael Sullivan

Appreciate you. Thank all the color.

Jim Burke

you, Thank Michael.

Operator

proceed. from Morgan Please question David Next Stanley. comes Arcaro with

David Arcaro

my taking Hey, good much Thanks morning. question. for so

Jim Burke

Hey, Dave.

David Arcaro

Hey.

Let's see. Wanted to check retail on business. the

the kind results? given that the to more this maybe the EBITDA this proactive for some Are guidance more need for line going of results in Or the to retail? to -- on wanted initiatives natural just you flow year? ebb confirm, of the is is -- with and for pursue first range really keep track year, Just to quarter

Kris Moldovan

the question, for Thanks Yeah. David.

in that what noted set we $XX is loss million expected XX of As when expected that we was the comments, the range -- was the within -- guidance. we the

we going So, of that's not far were forward. expecting off what

offset of the count saw timing first will we from effects the year. we third of We over benefits and the be retail don't through that or meet I in range in we see margin guidance its exceed and quarter of that some continue balance provided see of midpoint quarter. they We last to to this, have to year expect that continue, noted the able but -- some the weather carried the and some we pressures

need anything that year stretch meet see of particular don't the goal. the we to to in over we that balance So,

of we're the going quarters the pressure would quarters. shape as retail from to see perspective first Again, fourth third on an And And that's continues they winter in the through months flat the power to the substantially prices costs second, EBITDA going but and highest. side and where the they're year, all the EBITDA. we be note, that typically the to have are in is the summer make because

they fourth So, in and is the there's EBITDA the where third first some it quarters on pressure make and quarters up. second,

David Arcaro

it. Got

still right was trends Okay. you Thanks. are I just That's trend default moving Is seeing similar or curious latest are seeing that topic, to then, customers And which you're direction helpful. service. in a happening that's now? the what

Jim Burke

some seeing through market prices level. procurement, kind that are you the seeing offers competitive that south the now increase default still we're Yeah. default their in of David, delayed of in are but markets

level you same So, the default. of are to seeing migration not

and is not utility dynamic. of increasing that we that's have it was for retailer. have they've You're in wholesale this and you start from obviously But a from stage a reform more standpoint, migration retail between markets ideally for this away a more But savings that's mentioning seeing into the the moving to of seeing default competitive some going from that also and market some at customer bouncing the back because the creating are folks a to part prices and opportunities arena creating customer I default some started through have relationship a create with and one-to-one come game, still crested, in and off prices business. in opportunities to they're it's our going market the default markets of May, customers. would

David Arcaro

much. Thanks sense. so Great. Okay. makes That

Jim Burke

Thank you, David.

Operator

Chopra Durgesh from with Evercore comes next ISI. Please Our question proceed.

Durgesh Chopra

Thanks is giving for XXXX range, Shar's and the XXXX this to the for morning team. higher wanted of Jim, be clearly make the billion in response question sort the me just is to and midpoint earlier, XXXX, than $X.X for sure that to expected heard I Hey, to base in good billion time. business? $X.X Hey,

Jim Burke

correct. is That

Durgesh Chopra

Okay. as And in XXXX well? Harbor $XXX million kind Energy above of for

Jim Burke

is XXXX we view given, XXXX numbers because -- this talked obviously is a Energy again current hedges And see XXXX, actually Yeah. Energy have. Harbor you you when XXXX at That talked open. get is are Harbor Once you pretty in Energy to out that better XXXX, to million could that we've about Harbor. we've And the doing open. them which than you Energy We're curves. basis, largely $XXX pretty open have for hedge Harbor. We've get on we in

Durgesh Chopra

Just going be of kind last free that Thank to be as flow the Understood. end look we a you is of you of three-year, to you. just terms guidance then EBITDA as it for Energy maybe what sort can would is you that share, helpful. year close for the on cash me. year And did any Harbor, disclosures? of clarifying you we in your expect -- range? Thank It should or color like and

Kris Moldovan

or update for at will I We're guidance then at to of we XXXX Yeah. think time XXXX -- and of balance going the obviously the closing.

to put We getting probably far. we'll what far that forward. But give I I haven't We'll closer we'll know going continue going. as updates we've as we're so to as see where don't out made update. -- how to get we continue to ranges out a continue things directionally to far we to closing, But decision plan think we give consistently three-year

Durgesh Chopra

Jim Understood. Thanks Kris. and

Jim Burke

Thank Durgesh. you,

Operator

Angie Seaport. Today's proceed. with from question final Storozynski comes Please

Angie Storozynski

you. Thank

Energy -- transaction. some of about One Harbor the in So actually flexibility financing questions.

spreads. we're think watching I So, all credit

You to finance. deal this have

you before You financing in refinance have the place, the but the year. bridge to end plan of it

you project wondering at example, just if any renewable to the you use, debt assets So, for yourself here. mentioned I'm could help maybe level the of

So that's one.

And bigger number two the picture a from -- question.

if So, prices, of pretty when solving you at of deleveraging earnings Tradition Probably at Vision and you are sooner. mark-to-market for not the these look XXXX Vistra Vistra quickly.

change a thoughts businesses i.e. Vision, Vistra Thanks. could value separation assets? true that again, these the your we which would see So, of about together, of these would two keeping unlock

Kris Moldovan

I'll we and the some in where -- transaction, Energy the talked when the Obviously put amount question of first we we on financing the of debt assumptions we -- Angie, the in use the would cash out the about split of Harbor. debt. of that amount we announced handle

for We opportunities. to continue look

we summer of $X the approximately And March as as about the are through over First settle from margin back the continue We through of into back deposit expected. going our hedges returns deposits margin billion, as this some saw XXst. year saw, billion see year. -- the end you $X.X come we to coming

cash that continue expect from of So, amount optimize use the us sheet. to we're you balance going can to to the

As indicated we on than transaction. could we amount be so larger that and the the when -- it announced we call the

to that As number far to opportunities. We're opportunistic which at of we're and as look to going a we're in. as market be debt, timing going

see avenues look different it number a until one of and preparing end And to at you'll opportunities. wait the all already just and I not for think us market. try those we're So, do in to raise debt that

Jim Burke

greenhouse with is an amount was obviously obviously our and execute sheet, this Vistra it emissions comments I'll on in the Vision Angie, for future in to a this Energy gas on transaction keep did of conceived idea investment to this key Harbor profile. as strong add that. that participate The balance zero a stream do vehicle And Kris' It things two for created also order earning Jim. that has to shareholders entity. highlighted some the of

what this reliable about business grid, that has view looking electric they're but a a is in That grid, more also essence a the grid. customer of step that back think is and we're still the Vistra. from different one, and we're our presence and doing Harbor doing. it, Zero. with through that Energy the it Crius most obviously mean, expressing Ambit of I is transactions. launching significant our opportunities our I including and as -- what is of sort changing for but growing Vistra retail then own We're sustainable a with

how business is achieve of things structure what a which we're is the think really So, the think sustainable they that way business their with generate we of this can value, to on express we about this in. come and fundamentals about they in cash have invest and electric long-term And and how flows. is importantly, not only by obviously But could I can want view that we view the based that, functions. still that It even most that this point here. in invest grid a is we investors saying dissynergies only

we as I come create out good the on customers of return It know some people What see, want might I to they some think And advantage take about, extremely very with moves and our And attractive control about debt. execute aggressively do shareholders paydown and think come is to model. business what some get winning that's capital I if I do talk level think we're we an to to a for in that. that do serve is own our in to well. on take not ability a folks it we're control. rerate, our and us of our that's term decisions, make enduring think that's market opportunities investors, building prepared may and that, going to we're the might just but shorter to

Angie Storozynski

That's the great. last And one just question.

you that to we're those power, in it, more those spreads So, forward some right? just is versus in limited power liquidity spark years, curves maybe are on always question, that look that seeing liquid relatively be gas mean mentioned this for forward There's incredible I true. of and

either that you to for capture derivative through I hedges, you So, driven it. mean, a name with there transactions, strengths way limited liquidity in even trading markets, some power basically is gas

Jim Burke

can. not is to proxy Yes. for power. power. many Angie, times gas But it's perfect Obviously, a we a and power, is proxy your liquid than good more gas for point,

curves is we balance don't that Angie, Because the why thinking. bit there into go, out we do with grid of thinking are means And again, some tomorrow we our a you what to just in valued was that think go And value. these further assets happening that which we're flexibility, this And how getting away we liquidity sensitive, granted. a we're little valued on the speak taken because our depending and with hedge, efficient Steve, we thinking reliability comment have because obviously is portfolio. differently not we to of use and past, fundamentals the getting that on to we electric use for how are also those is try about they're liquidity, things and than the capturing and reliability think the they of

we're you why Steve, blocking a this in. bit on comment about how thinking But don't little

Steve Muscato

Sure.

decent gas is for a proxy assets, think a as nuclear hedge. I

consideration. different least the we have PTC, NYMEX protect the gas instruments put of a are And use a so, like But and NYMEX either value or structures do we in at downside. able that's kind of value lock in place to to so to range

the to gas have of and more some the spark, specific challenging. lock the buy gas in we sparks, in terms the do In locations to of is order

that time. initial you further, places there's -- margins you exchanges like the the out independent I to for PJM, New do you to liquidity with think England or manner more But be have efficient go out in liquidity can it expensive than get the we postings independent in try because post ERCOT, as a sure. quite as

we're get to when with done. or far, lien to first And that using structures out credit that go looking so, increase counterparties at trying even bilaterally we

to working use little something far to to on going slower and channels, we've it wholesale also like we're use bilaterals. first liquidity directly is But and And so, trying liquidity other it's out will is But as liens And bit in it a and counterparties. customers trying efficient both, from XXXX, as efficient direct because time. begun definitely XXXX. channels again, even take important, to

Angie Storozynski

Great. you. Thank

Jim Burke

you thank Angie, the question. for

Operator

remarks. conference session. over I turn to Burke the for Mr. back This like Jim any closing question-and-answer our now to would concludes

Jim Burke

everyone. is joining Yes. Thanks. this I interest updates. in Thank hard strategic forward and us everybody Vistra for we our look that thank great to morning. want to Vistra for our please execute team Have and priorities, the your working you. future summer, and giving to morning We appreciate you well a know

Operator

disconnect. presentation and now now The has concluded. for today's conference may Thank you attending you

Vistra (VST) 9 May 232023 Q1 Earnings call transcript