News Releases

Vistra Energy Announces Capital Allocation Plan; Reports Third Quarter 2018 Results; Narrows 2018 and 2019 Guidance

IRVING, Texas, Nov. 2, 2018 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):

 

Third Quarter Highlights

  • Announced capital allocation plan:
    • Upsizing of share repurchase program by an incremental $1.25 billion expected to be opportunistically executed over the next 12 to 18 months,
    • Adoption by board of directors of annual dividend program expected to begin in the first quarter of 2019 at approximately $0.50 per share; Vistra management anticipates an annual dividend growth rate in the range of approximately 6-8 percent per share, and
    • Expectation to achieve leverage target of approximately 2.5x net debt to EBITDA1 (or approximately 2.7x gross debt to EBITDA) by year-end 2020.
  • Increased merger EBITDA value lever targets by an additional $65 million to $565 million, reflecting an increase of $15 million of synergies and $50 million from the Operations Performance Initiative.  Expected to realize and achieve value lever targets as follows:

 

 

Realized in Year

Achieved by YE

2018

$175mm

$360mm

2019

$425mm

$515mm

2020

$540mm

$565mm

2021

$565mm

 
 

 

  • Narrowed and reaffirmed 2018 full-year Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted Free Cash Flow before Growth (FCFbG) guidance ranges of $2.75 to $2.85 billion and $1.45 to $1.55 billion, respectively.2  Guidance midpoints approximately $150 million greater than May 2018 guidance applying October 2017 curves.
  • Narrowed and updated 2019 full-year Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of $3.22 to $3.42 billion and $2.1 to $2.3 billion, respectively2, highlighting the company's significant earnings power and EBITDA to free cash flow conversion of approximately 66%.3
  • Completed previously announced $500 million share repurchase program.
  • Reduced annual interest expense by approximately $56 million through the refinancing and repayment of approximately $1.5 billion aggregate principal amount of outstanding senior notes.
  • Continued strong performance from our ERCOT retail business with organic growth resulting in residential customer counts up 1.4% year to date.

(1) Assuming approximately $400 million cash on balance sheet.
(2) Excludes results from the Asset Closure segment.  Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures.  See the "Non-GAAP Reconciliation" tables for further details.
(3) 2019 Ongoing Operations Adjusted EBITDA guidance range includes $425 million of synergies expected to be realized in 2019 as compared to the full run-rate of adjusted EBITDA value lever targets of $565 million.

Summary of Financial Results for the Third Quarter Ended September 30, 2018 (in millions)

($ in millions)

 

Three Months Ended
September 30, 2018

 

Nine Months Ended

September 30, 2018

Net Income

 

$

331

 

$

130

Ongoing Operations Net Income1

 

$

335

 

$

154

Ongoing Operations Adjusted EBITDA1

 

$

1,153

 

$

2,069

  - exc. Odessa Earnout Buybacks

       

$

2,089

 
 

(1)  Excludes results from the Asset Closure segment.  Adjusted EBITDA is a non-GAAP financial measure.  See the "Non-GAAP Reconciliation" tables for further details.

 

For the three months ended September 30, 2018, Vistra reported net income from ongoing operations of $335 million and adjusted EBITDA from ongoing operations of $1,153 million.

Year-to-date, Vistra reported net income from ongoing operations of $154 million and adjusted EBITDA from ongoing operations of $2,069 million.  Excluding the impact to adjusted EBITDA of negative $20 million during the period resulting from the partial buybacks of the Odessa Power Plant earnout in February and May, Vistra's year-to-date adjusted EBITDA from ongoing operations would have been $2,089 million.  When the Odessa earnout buybacks were executed, Vistra estimated the economic benefit of the transactions, net of the premiums paid, would be approximately $25 million.

Curt Morgan, Vistra's chief executive officer, commented, "We are excited to announce Vistra's capital allocation program, including authorization to allocate an additional $1.25 billion of capital toward share repurchases and to initiate a recurring dividend in the first quarter of 2019.  Today's capital allocation announcements are part of an ongoing commitment of returning capital to shareholders—all with a target to achieve 2.5 times net debt to EBITDA by year-end 2020.  Vistra's resilient EBITDA production and robust free cash flow conversion in 2018 and expected in 2019 and beyond, stemming from the stability of our integrated model and substantial merger value, support this diverse capital allocation plan including a growing dividend, which we believe will create meaningful value for our shareholders."

Guidance

($ in millions)

 

2018

 

2019

Ongoing Ops. Adj. EBITDA1

 

$

 2,750 - 2,850

 

$

 3,220 – 3,420

Ongoing Ops. Adj. FCFbG1

 

$

1,450 - 1,550

 

$

 2,100 – 2,300

 
 

(1)  Excludes results from the Asset Closure segment.  Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures.  See the "Non-GAAP Reconciliation" tables for further details.

 

Vistra Energy is narrowing and reaffirming its 2018 Ongoing Operations guidance ranges, forecasting Ongoing Operations Adjusted EBITDA of $2,750 to $2,850 million and Ongoing Operations Adjusted FCFbG of $1,450 to $1,550 million.  The 2018 guidance ranges were developed utilizing improved ERCOT forward curves as of March 29, 2018.  The ranges reflect Vistra's results on a stand-alone basis for the period prior to April 9, 2018 and anticipated results of the combined company for the period from April 9 through December 31, 2018.

Vistra is also narrowing and updating its 2019 Ongoing Operations guidance ranges, forecasting Ongoing Operations Adjusted EBITDA of $3,220 to $3,420 million and Ongoing Operations Adjusted FCFbG of $2,100 to $2,300 million.

Initial Share Repurchase Program

As of November 1, 2018, Vistra has completed the initial $500 million share repurchase program authorized by its board of directors on June 12, 2018.  Vistra purchased approximately 21.4 million shares for an average price of $23.36 per share.

Financing Update

In August 2018, Vistra Energy used the net proceeds from the issuance by Vistra Operations Company LLC, a wholly owned, indirect subsidiary of Vistra Energy, of $1,000 million aggregate principal amount of 5.50% senior notes due 2026, the net proceeds from a $350 million accounts receivable securitization program, and cash on hand to fund cash tender offers to purchase $1,542 million aggregate principal amount of the following senior notes that Vistra Energy assumed in the merger with Dynegy:

  • $26 million of 7.625% senior notes due 2024;
  • $163 million of 8.034% senior notes due 2024;
  • $669 million of 8.000% senior notes due 2025; and
  • $684 million of 8.125% senior notes due 2026.

As a result of the transaction, Vistra reduced its annual interest expense by approximately $56 million and extended maturities.

Liquidity

As of September 30, 2018, Vistra had total available liquidity of approximately $2.101 billion, including cash and cash equivalents of $811 million and $1,290 million of availability under its revolving credit facility, which remained undrawn but had $1,210 million of letters of credit outstanding as of September 30, 2018. 

Plant Retirement

Vistra announced on August 24, 2018 the planned retirement of its 51-megawatt waste coal facility, Northeastern Power Company, due to its uneconomic operations and negative financial outlook.  The plant was retired on October 24, 2018.

Earnings Webcast

Vistra will host a webcast today, November 2, 2018, beginning at 8 a.m. ET (7 a.m. CT) to discuss these results and related matters.  The live, listen-only webcast and the accompanying slides that will be discussed on the call can be accessed via the investor relations section of Vistra's website at www.vistraenergy.com.  A replay of the webcast will be available on the Vistra website for one year following the live event.

About Non-GAAP Financial Measures and Items Affecting Comparability

"Adjusted EBITDA" (EBITDA as adjusted for unrealized gains or losses from hedging activities, tax receivable agreement obligations, reorganization items, and certain other items described from time to time in Vistra Energy's earnings releases),"Adjusted Free Cash Flow before Growth" (or "Adjusted FCFbG") (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures (including capital expenditures for growth investments), other net investment activities, preferred stock dividends, and other items described from time to time in Vistra Energy's earnings releases), "Ongoing Operations Adjusted EBITDA" (adjusted EBITDA less adjusted EBITDA from Asset Closure segment) and "Ongoing Operations Adjusted Free Cash Flow before Growth" or "Ongoing Operations Adjusted FCFbG" (adjusted free cash flow before growth less cash flow from operating activities from Asset Closure segment before growth), are "non-GAAP financial measures." A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in Vistra Energy's consolidated statements of operations, comprehensive income, changes in stockholders' equity and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. Vistra Energy's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

Vistra Energy uses Adjusted EBITDA as a measure of performance and believes that analysis of its business by external users is enhanced by visibility to both net income prepared in accordance with GAAP and Adjusted EBITDA. Vistra Energy uses Adjusted Free Cash Flow before Growth as a measure of liquidity and believes that analysis of its ability to service its cash obligations is supported by disclosure of both cash provided by (used in) operating activities prepared in accordance with GAAP as well as Adjusted Free Cash Flow before Growth.  Vistra Energy uses Ongoing Operations Adjusted EBITDA as a measure of performance and Ongoing Operations Adjusted Free Cash Flow before Growth as a measure of liquidity and Vistra Energy's management and board of directors have found it informative to view the Asset Closure segment as separate and distinct from Vistra Energy's ongoing operations. The schedules attached to this earnings release reconcile the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com

Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com

About Vistra Energy
Vistra Energy (NYSE: VST) is a premier, integrated power company based in Irving, Texas, combining an innovative, customer-centric approach to retail with a focus on safe, reliable, and efficient power generation. Through its retail and generation businesses which include TXU Energy, Homefield Energy, Dynegy, and Luminant, Vistra operates in 12 states and six of the seven competitive markets in the U.S., with about 6,000 employees. Vistra's retail brands serve approximately 2.9 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, and solar facilities.

Cautionary Note Regarding Forward-Looking Statements
The information presented herein includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which Vistra Energy Corp. ("Vistra Energy") operates and beliefs of and assumptions made by Vistra Energy's management, involve risks and uncertainties, which are difficult to predict and are not guarantees of future performance, that could significantly affect the financial results of Vistra Energy. All statements, other than statements of historical facts, that are presented herein, or in response to questions or otherwise, that address activities, events or developments that may occur in the future, including such matters as activities related to our financial or operational projections, projected synergy, value lever and net debt targets, capital allocation, capital expenditures, liquidity, projected Adjusted EBITDA to free cash flow conversion rate, dividend policy, business strategy, competitive strengths, goals, future acquisitions or dispositions, development or operation of power generation assets, market and industry developments and the growth of our businesses and operations (often, but not always, through the use of words or phrases, or the negative variations of those words or other comparable words of a future or forward-looking nature, including, but not limited to, "intends," "plans," "will likely," "unlikely," "believe," "expect," "seek," "anticipate," "estimate," "continue," "will," "shall," "should," "could," "may," "might," "predict," "project," "forecast," "target," "potential," "forecast," "goal," "objective," "guidance" and "outlook"),are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra Energy believes that in making any such forward-looking statement, Vistra Energy's expectations are based on reasonable assumptions, any such forward-looking statement involves uncertainties and risks that could cause results to differ materially from those projected in or implied by any such forward-looking statement, including but not limited to (i) adverse changes in general economic or market conditions (including changes in interest rates) or changes in political conditions or federal or state laws and regulations; (ii) the ability of Vistra Energy to execute upon the contemplated strategic and performance initiatives (including the risk that Vistra Energy's and Dynegy's respective businesses will not be integrated successfully or that the cost savings, synergies and growth from the merger will not be fully realized or may take longer than expected to realize); (iii) actions by credit ratings agencies and (iv) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission ("SEC") by Vistra Energy from time to time, including the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in Vistra Energy's quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2018 and any subsequently filed quarterly reports on Form 10-Q.

Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra Energy will not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all of them; nor can Vistra Energy assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. 

VISTRA ENERGY CORP.

CONDENSED STATEMENTS OF CONSOLIDATED INCOME (LOSS)

(Unaudited) (Millions of Dollars, Except Per Share Amounts)

 
 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2018

 

2017

 

2018

 

2017

Operating revenues (Note 5)

$

3,243

   

$

1,833

   

$

6,581

   

$

4,487

 

Fuel, purchased power costs and delivery fees

(1,627)

   

(838)

   

(3,492)

   

(2,250)

 

Operating costs

(346)

   

(218)

   

(926)

   

(626)

 

Depreciation and amortization

(426)

   

(178)

   

(967)

   

(519)

 

Selling, general and administrative expenses

(194)

   

(147)

   

(711)

   

(434)

 

Operating income

650

   

452

   

485

   

658

 

Other income (Note 20)

6

   

10

   

25

   

29

 

Other deductions (Note 20)

(1)

   

   

(4)

   

(5)

 

Interest expense and related charges (Note 20)

(154)

   

(76)

   

(291)

   

(169)

 

Impacts of Tax Receivable Agreement (Note 8)

17

   

138

   

(65)

   

96

 

Equity in earnings of unconsolidated investment

7

   

   

11

   

 

Income before income taxes

525

   

524

   

161

   

609

 

Income tax expense (Note 7)

(194)

   

(251)

   

(31)

   

(284)

 

Net income

$

331

   

$

273

   

$

130

   

$

325

 

Less: Net (income) loss attributable to noncontrolling interest

1

   

   

(2)

   

 

Net income attributable to Vistra Energy

$

330

   

$

273

   

$

132

   

$

325

 

Weighted average shares of common stock outstanding:

             

Basic

533,142,189

   

427,591,426

   

500,781,573

   

427,587,404

 

Diluted

540,972,802

   

428,312,438

   

508,128,988

   

428,001,869

 

Net income per weighted average share of common stock outstanding:

             

Basic

$

0.62

   

$

0.64

   

$

0.26

   

$

0.76

 

Diluted

$

0.61

   

$

0.64

   

$

0.26

   

$

0.76

 
 

 

VISTRA ENERGY CORP.

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

(Unaudited) (Millions of Dollars)

 
 

Nine Months Ended September 30,

 

2018

 

2017

       

Cash flows — operating activities:

     

Net income

$

130

 

$

325

Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:

     

Depreciation and amortization

1,070

 

621

Deferred income tax (benefit) expense, net

29

 

209

Unrealized net (gain) loss from mark-to-market valuations of commodities

207

 

(202)

Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps

(123)

 

3

Accretion expense

37

 

43

Impacts of Tax Receivable Agreement (Note 8)

65

 

(96)

Stock-based compensation (Note 17)

59

 

13

Other, net

64

 

41

Changes in operating assets and liabilities:

     

Margin deposits, net

(39)

 

183

Accrued interest

(59)

 

(26)

Accrued taxes

(102)

 

4

Accrued incentive plan

(17)

 

(46)

Other operating assets and liabilities

(458)

 

(227)

Cash provided by operating activities

863

 

845

Cash flows — financing activities:

     

Issuances of long-term debt (Note 11)

1,000

 

Repayments/repurchases of debt (Note 11)

(2,902)

 

(32)

Borrowing under accounts receivable securitization program (Note 10)

350

 

Stock repurchase (Note 13)

(414)

 

Debt tender offer and other financing fees (Note 11)

(216)

 

(5)

Other, net

10

 

Cash used in financing activities

(2,172)

 

(37)

Cash flows — investing activities:

     

Capital expenditures

(209)

 

(86)

Nuclear fuel purchases

(66)

 

(56)

Cash acquired in the Merger

445

 

Solar development expenditures (Note 3)

(28)

 

(129)

Odessa acquisition (Note 3)

 

(355)

Proceeds from sales of nuclear decommissioning trust fund securities (Note 20)

211

 

154

Investments in nuclear decommissioning trust fund securities (Note 20)

(227)

 

(169)

Other, net

7

 

10

Cash provided by (used in) investing activities

133

 

(631)

       

Net change in cash, cash equivalents and restricted cash

(1,176)

 

177

Cash, cash equivalents and restricted cash — beginning balance

2,046

 

1,588

Cash, cash equivalents and restricted cash — ending balance

$

870

 

$

1,765

 

 

 

VISTRA ENERGY CORP.

NON-GAAP RECONCILIATIONS -  SEPTEMBER 2018 QTD ADJUSTED EBITDA

(Unaudited) (Millions of Dollars)

 
 

Three Months Ended September 30, 2018

 

Retail

 

ERCOT

 

PJM

 

NY/NE

 

MISO

 

Eliminations
/ Corp and
Other

 

Ongoing
Operations
Consolidated

 

Asset
Closure

 

Vistra

 Energy
Consolidated

Net income (loss)

$

(86)

   

$

643

   

$

62

   

$

47

   

$

(3)

   

$

(328)

   

$

335

   

$

(4)

   

$

331

 

Income tax expense

   

   

   

   

   

194

   

194

   

   

194

 

Interest expense and related charges

3

   

(2)

   

3

   

1

   

1

   

148

   

154

   

   

154

 

Depreciation and amortization (a)

80

   

142

   

141

   

55

   

3

   

25

   

446

   

   

446

 

EBITDA before Adjustments

$

(3)

   

$

783

   

$

206

   

$

103

   

$

1

   

$

39

   

$

1,129

   

$

(4)

   

$

1,125

 

Unrealized net (gain) loss resulting from hedging transactions

154

   

(195)

   

21

   

   

32

   

(4)

   

8

   

   

8

 

Fresh start/purchase accounting impacts

(15)

   

   

(1)

   

5

   

3

   

   

(8)

   

   

(8)

 

Impacts of Tax Receivable Agreement

   

   

   

   

   

(17)

   

(17)

   

   

(17)

 

Non-cash compensation expenses

   

   

   

   

   

14

   

14

   

   

14

 

Transition and merger expenses

   

3

   

5

   

1

   

1

   

9

   

19

   

   

19

 

Other, net

5

   

6

   

9

   

2

   

2

   

(16)

   

8

   

(8)

   

 

Adjusted EBITDA

$

141

   

$

597

   

$

240

   

$

111

   

$

39

   

$

25

   

$

1,153

   

$

(12)

   

$

1,141

 
                                                                                       
 

____________

   

(a)

Includes nuclear fuel amortization of $20 million in ERCOT.

 

 

VISTRA ENERGY CORP.

NON-GAAP RECONCILIATIONS -  SEPTEMBER 2018 YTD ADJUSTED EBITDA

(Unaudited) (Millions of Dollars)

 
 

Nine Months Ended September 30, 2018

 

Retail

 

ERCOT

 

PJM

 

NY/NE

 

MISO

 

Eliminations
/ Corp and
Other

 

Ongoing
Operations
Consolidated

 

Asset
Closure

 

Vistra
Energy
Consolidated

Net income (loss)

$

397

   

$

236

   

$

86

   

$

41

   

$

29

   

$

(635)

   

$

154

   

$

(24)

   

$

130

 

Income tax expense

   

   

   

   

   

31

   

31

   

   

31

 

Interest expense and related charges

3

   

13

   

5

   

1

   

1

   

268

   

291

   

   

291

 

Depreciation and amortization (a)

237

   

355

   

266

   

104

   

6

   

59

   

1,027

   

   

1,027

 

EBITDA before Adjustments

$

637

   

$

604

   

$

357

   

$

146

   

$

36

   

$

(277)

   

$

1,503

   

$

(24)

   

$

1,479

 

Unrealized net (gain) loss resulting from hedging transactions

(38)

   

207

   

20

   

22

   

   

(4)

   

207

   

   

207

 

Fresh start/purchase accounting impacts

12

   

(4)

   

(2)

   

9

   

11

   

   

26

   

   

26

 

Impacts of Tax Receivable Agreement

   

   

   

   

   

65

   

65

   

   

65

 

Non-cash compensation expenses

   

   

   

   

   

62

   

62

   

   

62

 

Transition and merger expenses

   

7

   

7

   

1

   

5

   

183

   

203

   

2

   

205

 

Other, net

(16)

   

(5)

   

12

   

7

   

5

   

   

3

   

(7)

   

(4)

 

Adjusted EBITDA

$

595

   

$

809

   

$

394

   

$

185

   

$

57

   

$

29

   

$

2,069

   

$

(29)

   

$

2,040

 
 

___________

   

(a)

Includes nuclear fuel amortization of $60 million in ERCOT.

 

 

VISTRA ENERGY CORP.

NON-GAAP RECONCILIATIONS - SEPTEMBER 2017 QTD ADJUSTED EBITDA

(Unaudited) (Millions of Dollars)

 
 

Three Months Ended September 30, 2017

 

Retail

 

ERCOT

 

Eliminations /

Corp & Other

 

Ongoing
Operations
Consolidated

 

Asset
Closure

 

Vistra Energy
Consolidated

Net income (loss)

$

7

   

$

405

   

$

(203)

   

$

209

   

$

64

   

$

273

 

Income tax expense (benefit)

   

   

251

   

251

   

   

251

 

Interest expense and related charges

   

9

   

67

   

76

   

   

76

 

Depreciation and amortization (a)

108

   

77

   

10

   

195

   

1

   

196

 

EBITDA before adjustments

$

115

   

$

491

   

$

125

   

$

731

   

$

65

   

$

796

 

Unrealized net (gain) loss resulting from hedging transactions

87

   

(235)

   

   

(148)

   

   

(148)

 

Generation plant retirement expenses

   

       

   

24

   

24

 

Fresh start accounting impacts

(19)

   

   

   

(19)

   

4

   

(15)

 

Impacts of Tax Receivable Agreement

   

   

(138)

   

(138)

   

   

(138)

 

Reorganization items and restructuring expenses

   

   

2

   

2

   

   

2

 

Other, net

(7)

   

   

8

   

1

   

   

1

 

Adjusted EBITDA

$

176

   

$

256

   

$

(3)

   

$

429

   

$

93

   

$

522

 
 

____________

   

(a)

Includes nuclear fuel amortization of $19 million in the ERCOT segment.

 

 

VISTRA ENERGY CORP.

NON-GAAP RECONCILIATIONS - SEPTEMBER 2017 YTD ADJUSTED EBITDA

(Unaudited) (Millions of Dollars)

 
 

Nine Months Ended September 30, 2017

 

Retail

 

ERCOT

 

Eliminations /

Corp & Other

 

Ongoing
Operations
Consolidated

 

Asset
Closure

 

Vistra
Energy
Consolidated

Net income (loss)

$

77

   

$

552

   

$

(405)

   

$

224

   

$

101

   

$

325

 

Income tax expense (benefit)

   

   

284

   

284

   

   

284

 

Interest expense and related charges

   

14

   

155

   

169

   

   

169

 

Depreciation and amortization (a)

322

   

232

   

29

   

583

   

1

   

584

 

EBITDA before adjustments

$

399

   

$

798

   

$

63

   

$

1,260

   

$

102

   

$

1,362

 

Unrealized net (gain) loss resulting from hedging transactions

160

   

(362)

   

   

(202)

   

   

(202)

 

Generation plant retirement expenses

   

   

   

   

24

   

24

 

Fresh start accounting impacts

24

   

(1)

   

   

23

   

12

   

35

 

Impacts of Tax Receivable Agreement

   

   

(96)

   

(96)

   

   

(96)

 

Reorganization items and restructuring expenses

2

   

1

   

12

   

15

   

   

15

 

Other, net

(13)

   

6

   

12

   

5

   

   

5

 

Adjusted EBITDA

$

572

   

$

442

   

$

(9)

   

$

1,005

   

$

138

   

$

1,143

 
 

____________

   

(a)

Includes nuclear fuel amortization of $66 million in the ERCOT segment.

 

 

VISTRA ENERGY CORP.

NON-GAAP RECONCILIATIONS - 2018 GUIDANCE

(Unaudited) (Millions of Dollars)

 
 

Ongoing
Operations

 

Asset Closure

 

Vistra Energy
Consolidated

 

Low

 

High

 

Low

 

High

 

Low

 

High

Net Income

$

103

   

$

180

   

$

(74)

   

$

(64)

   

$

29

   

$

116

 

Income tax expense

78

   

101

   

   

   

78

   

101

 

Interest expense and related charges

474

   

474

   

   

   

474

   

474

 

Depreciation and amortization

1,468

   

1,468

   

   

   

1,468

   

1,468

 

EBITDA before adjustments

$

2,123

   

$

2,223

   

$

(74)

   

$

(64)

   

$

2,049

   

$

2,159

 

Unrealized net (gain) loss resulting from hedging transactions

150

   

150

   

3

   

3

   

153

   

153

 

Fresh start / purchase accounting impacts

63

   

63

   

(2)

   

(2)

   

61

   

61

 

Impacts of Tax Receivable Agreement

113

   

113

   

   

   

113

   

113

 

Transition and merger expenses

212

   

212

   

   

   

212

   

212

 

Other, net

89

   

89

   

3

   

3

   

92

   

92

 

Adjusted EBITDA

$

2,750

   

$

2,850

   

$

(70)

   

$

(60)

   

$

2,680

   

$

2,790

 

Interest paid, net

(628)

   

(628)

   

   

   

(628)

   

(628)

 

Tax payments (a)

(48)

   

(48)

   

   

   

(48)

   

(48)

 

Tax receivable agreement payments

(29)

   

(29)

   

   

   

(29)

   

(29)

 

Working capital and margin deposits

(218)

   

(218)

   

1

   

1

   

(217)

   

(217)

 

Reclamation and remediation

(34)

   

(34)

   

(69)

   

(69)

   

(103)

   

(103)

 

Other changes in operating assets and liabilities

(335)

   

(335)

   

(30)

   

(20)

   

(365)

   

(355)

 

Cash provided by operating activities

$

1,458

   

$

1,558

   

$

(168)

   

$

(148)

   

$

1,290

   

$

1,410

 

Capital expenditures including nuclear fuel

(454)

   

(454)

   

   

   

(454)

   

(454)

 

Solar and Moss Landing development expenditures

(71)

   

(71)

   

   

   

(71)

   

(71)

 

Other net investing activities

(22)

   

(22)

   

3

   

3

   

(19)

   

(19)

 

Free cash flow

$

911

   

$

1,011

   

$

(165)

   

$

(145)

   

$

746

   

$

866

 

Working capital and margin deposits

218

   

218

   

(1)

   

(1)

   

217

   

217

 

Solar and Moss Landing development expenditures

71

   

71

   

   

   

71

   

71

 

Taxes related to Alcoa settlement

45

   

45

   

   

   

45

   

45

 

Transition and merger expenses

182

   

182

   

   

   

182

   

182

 

Generation plant retirement expenses

   

   

26

   

26

   

26

   

26

 

Transition capital expenditures

23

   

23

   

   

   

23

   

23

 

Adjusted free cash flow

$

1,450

   

$

1,550

   

$

(140)

   

$

(120)

   

$

1,310

   

$

1,430

 
 

____________

   

(a)

Includes state tax payments.

 

 

VISTRA ENERGY CORP.

NON-GAAP RECONCILIATIONS - 2019 GUIDANCE

(Unaudited) (Millions of Dollars)

 
 

Ongoing
Operations

 

Asset Closure

 

Vistra Energy
Consolidated

 

Low

 

High

 

Low

 

High

 

Low

 

High

Net Income

$

944

   

$

1,100

   

$

(66)

   

$

(56)

   

$

878

   

$

1,044

 

Income tax expense

283

   

327

   

   

   

283

   

327

 

Interest expense and related charges

575

   

575

   

   

   

575

   

575

 

Depreciation and amortization

1,558

   

1,558

   

   

   

1,558

   

1,558

 

EBITDA before adjustments

$

3,360

   

$

3,560

   

$

(66)

   

$

(56)

   

$

3,294

   

$

3,504

 

Unrealized net (gain) loss resulting from hedging transactions

(355)

   

(355)

   

   

   

(355)

   

(355)

 

Fresh start / purchase accounting impacts

67

   

67

   

   

   

67

   

67

 

Impacts of Tax Receivable Agreement

67

   

67

   

   

   

67

   

67

 

Transition and merger expenses

8

   

8

   

   

   

8

   

8

 

Other, net

73

   

73

   

1

   

1

   

74

   

74

 

Adjusted EBITDA

$

3,220

   

$

3,420

   

$

(65)

   

$

(55)

   

$

3,155

   

$

3,365

 

Interest payments

(583)

   

(583)

   

   

   

(583)

   

(583)

 

Tax payments (a)

110

   

110

   

   

   

110

   

110

 

Working capital and margin deposits

81

   

81

   

   

   

81

   

81

 

Reclamation and remediation

(60)

   

(60)

   

(118)

   

(118)

   

(178)

   

(178)

 

Other changes in operating assets and liabilities

(5)

   

(5)

   

26

   

36

   

21

   

31

 

Cash provided by operating activities

$

2,763

   

$

2,963

   

$

(157)

   

$

(137)

   

$

2,606

   

$

2,826

 

Capital expenditures including nuclear fuel

(594)

   

(594)

   

   

   

(594)

   

(594)

 

Solar and Moss Landing development expenditures

(135)

   

(135)

   

   

   

(135)

   

(135)

 

Other net investing activities

(20)

   

(20)

   

2

   

2

   

(18)

   

(18)

 

Free cash flow

$

2,014

   

$

2,214

   

$

(155)

   

$

(135)

   

$

1,859

   

$

2,079

 

Working capital and margin deposits

(81)

   

(81)

   

   

   

(81)

   

(81)

 

Solar and Moss Landing development expenditures

135

   

135

   

   

   

135

   

135

 

Transition and merger expenses

9

   

9

   

   

   

9

   

9

 

Transition capital expenditures

23

   

23

   

   

   

23

   

23

 

Adjusted free cash flow

$

2,100

   

$

2,300

   

$

(155)

   

$

(135)

   

$

1,945

   

$

2,165

 
 

____________

   

(a)

Includes state tax payments.

 

 

 

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SOURCE Vistra Energy