Vistra Reports Third Quarter 2020 Results Above Expectations and Reaffirms 2020 and 2021 Guidance

November 04, 2020

IRVING, Texas, Nov. 4, 2020 /PRNewswire/ -- Vistra (NYSE: VST):

Financial Highlights

  • Delivered third quarter 2020 Net Income of $442 million and Net Income from Ongoing Operations1 of $502 million. Third quarter 2020 Ongoing Operations Adjusted EBITDA1 was $1,185 million—results above expectations for the quarter.
  • Reaffirmed 2020 Ongoing Operations Adjusted EBITDA1 and Ongoing Operations Adjusted Free Cash Flow before Growth1 (FCFbG) guidance ranges, as raised and narrowed on Sept. 29, of $3,485 to $3,685 million and $2,375 to $2,575 million, respectively, an expected Adjusted EBITDA to Adjusted FCFbG conversion of ~69%. Full-year 2020 Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG currently tracking above raised guidance midpoints despite pandemic tail event.
  • Reaffirmed 2021 Ongoing Operations Adjusted EBITDA1 and Ongoing Operations Adjusted FCFbG1 guidance ranges, initiated on Sept. 29, of $3,075 to $3,475 million and $1,765 to $2,165 million, respectively, an expected Adjusted EBITDA to Adjusted FCFbG conversion of ~60%.
  • Paid a quarterly dividend of $0.135 per share on Sept. 30, 2020, to shareholders of record as of Sept. 16, 2020, or $0.54 per share on an annualized basis.
  • Announced a long-term capital allocation plan, with expectation to return ~$2.7 billion to its financial stakeholders over the next two years through debt repayment, dividends, and share repurchases, while simultaneously reinvesting to transition its generation portfolio. Currently one notch below investment grade credit ratings and on positive outlook with all three rating agencies, supporting potential for upgrades to investment grade in 2021.

 

($ in millions, other than
per share)

2021

2022

Debt Reduction

~$550

Enhanced Dividend2

$0.58/share

$0.76/share

Share Repurchases

Up to $1,500

Transformation Growth

~$650

~$500

 

  • Projected to achieve nearly $700 million of the ~$760 million of identified Dynegy, Crius Energy (Crius), and Ambit Energy (Ambit) transaction synergies and Operations Performance Initiative EBITDA value lever targets by year-end 2020. Vistra expects to realize and achieve the EBITDA value lever targets as follows:

 


Realized in Year

Achieved by YE

2020

$622

$697

2021

$726

$756

Portfolio Transformation

  • Announced today an agreement to acquire the Texas electric retail customers of Infinite Energy and Veteran Energy at an estimated EV/EBITDA multiple of ~3.7 times, expanding Vistra's retail footprint in the attractive Texas market with a gain of ~60,000 residential customer equivalents.
  • Announced, during its Sept. 29 investor event, the development of nearly 1,000 MW of renewable generation projects in Texas, including six solar and one battery energy storage facilities, and the intention to retire an incremental ~6,800 MW of coal-fueled generation in Illinois and Ohio, solidifying steps to transition Vistra's generation portfolio to cleaner generation resources and reduce its carbon footprint.
  • Launched Vistra Zero, a generation portfolio consisting of ~4,000 MW of zero-carbon generation resources, including its existing nuclear, solar, and energy storage facilities, as well as its announced emission-free projects under development. With investments requiring less than a quarter of Vistra's expected Adjusted FCFbG, Vistra Zero is projected to reach more than 8,000 MW by 2030, representing nearly 25% of Vistra's Adjusted EBITDA.

ESG Highlights

  • Accelerated its greenhouse gas (GHG) emissions reduction targets with a goal to achieve a 60% reduction, up from 50%, in CO2 equivalent emissions by 2030, as compared to a 2010 baseline, and a long-term objective to achieve net-zero carbon emissions, up from an 80% reduction target, by 2050.
  • Published its 2020 Climate Report in accordance with the recommendations set forth by the Task Force on Climate-related Financial Disclosures (TCFD), discussing various climate-related risks and opportunities that Vistra management has identified as influencing the company's long-term strategy.
  • Expanded the responsibilities of the Compensation Committee of the Board of Directors (Board) to oversee Vistra's social responsibility initiatives, including diversity, equity and inclusion, talent management, and culture and community involvement. This committee will now be referred to as the Social Responsibility and Compensation Committee. Vistra's ESG priorities are governed by the Sustainability and Risk, Social Responsibility and Compensation, and Nominating and Governance Committees of the Board with the full Board maintaining overall oversight.
  • Continued its commitment to employee and contractor health and safety through sustained temperature testing and entry questionnaires at Vistra's corporate offices and plant sites, requiring proper personal protective equipment, including facial coverings, and reworking processes to maximize social distancing at work locations, assisting with access to virus testing if necessary, and maintaining a work-from-home policy for all employees with remote-work capabilities.
  • Distributed $250,000 in Hunger Action Month (September) donations through Vistra's family of brands in the communities where the company operates, as the number of Americans experiencing hunger continues to surge with the ongoing pandemic.
  • Provided $230,000 for the purchase of nearly 2,000 computers, which were given, free-of-charge, to low-income families without a computer in the home, equipping students with the technology needed for online learning. Through this partnership with Comp-U-Dopt, a non-profit organization that provides technology access and education to underserved youth, Vistra assisted students in Dallas, Fort Worth, and Chicago.
  • Supported customers and communities during the pandemic by providing safe and reliable power, maintaining customer service levels at all-time highs, donating $2 million to non-profits and social service agencies, and assisting 12,400 customers impacted by COVID-19 to pay their electric bills through $3.1 million in donations.
  • Committed $10 million in donations over the next five years to support organizations that grow minority-owned small businesses, enhance economic development, and provide educational opportunities for students from diverse backgrounds.

 

(1)

Excludes the Asset Closure segment. Net Income from Ongoing Operations, Ongoing Operations Adjusted EBITDA, and Ongoing Operations Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further detail.

(2)

Based on management's anticipated recommendations; subject to Board's approval at the applicable time.

Summary of Financial Results for Third Quarter Ended Sept. 30, 2020



Three Months Ended


Nine Months Ended

($ in millions)


Sept. 30, 2020

Sept. 30, 20192


Sept. 30, 2020

Sept. 30, 20192

Net Income


$ 442

$ 114


$ 651

$ 692

Ongoing Operations Net Income1


$ 502

$ 168


$ 742

$ 795

Ongoing Operations Adjusted EBITDA1


$ 1,185

$ 1,077


$ 2,964

$ 2,618

 

Adjusted EBITDA by Segment







Retail3


$ (140)

$ (87)


$ 572

$ 463

Texas


$ 1,000

$ 823


$ 1,477

$ 1,183

East


$ 245

$ 254


$ 691

$ 734

West


$ 23

$ 24


$ 59

$ 48

Sunset


$ 67

$ 73


$ 185

$ 205

Corp./Other


$ (10)

$ (10)


$ (20)

$ (15)

Asset Closure


$ (48)

$ (17)


$ (79)

$ (64)

For the three months ended Sept. 30, 2020, Vistra reported Net Income of $442 million, Net Income from Ongoing Operations1 of $502 million, and Ongoing Operations Adjusted EBITDA1 of $1,185 million. Vistra's third quarter 2020 Net Income was $328 million higher than third quarter 2019 Net Income, driven primarily by an increase in unrealized net gains on hedging transactions. Vistra's third quarter Adjusted EBITDA from Ongoing Operations was $108 million higher than third quarter 2019 results2, primarily driven by higher margins in its Texas segment.

Vistra reported third quarter Adjusted EBITDA from the Retail segment of $(140) million, $53 million lower than third quarter 2019 results, driven by higher volumes from the Crius and Ambit acquisitions during negative margin months due to the seasonality of Texas retail margins. Third quarter Adjusted EBITDA from the generation segments4, on an aggregate basis, totaled $1,325 million, $161 million higher than third quarter 2019 results2 driven by higher margins in the Texas segment.

For the first nine months of 2020, Vistra reported Net Income of $651 million, Net Income from Ongoing Operations1 of $742 million and Ongoing Operations Adjusted EBITDA1 of $2,964 million. Vistra's Net Income for the first nine months of 2020 was $41 million lower than first nine months of 2019 Net Income, driven primarily by a decrease in unrealized gains on hedging transactions. Ongoing Operations Adjusted EBITDA for the first nine months of 2020 was $346 million higher than the first nine months of 20192, driven primarily by higher margins in the Texas segment and the acquisitions of Crius and Ambit.

"Vistra's very strong performance during the first three quarters of the year has positioned the company to achieve year-end results firmly above our recently raised 2020 guidance midpoint," said Curt Morgan, Vistra's president and chief executive officer. "This will mark the fifth year in a row where Vistra has delivered financial results exceeding our guidance midpoint, with 2020 results achieved despite a tail-event pandemic. We have a team that knows how to operate cost-effectively and flexibly to extract the embedded option value from our portfolio. Since taking over the company in 2016, we have meaningfully reduced our cost structure, strengthened the balance sheet to position the business to achieve investment grade credit ratings, and enhanced the integrated model. We are now set-up to reinvest in our business as we transform our generation fleet for a sustainable future, while providing double-digit returns to our investors on an annual basis. Vistra has positioned the company to continue to transform our operations to both succeed, and lead, as the country evolves to combat climate change, without sacrificing reliability or financial performance, and with the right asset and business mix for today and the right strategic direction for the creation of long-term value and a sustainable future."

(1)

Excludes results from the Asset Closure segment. Net Income from Ongoing Operations and Ongoing Operations Adjusted EBITDA are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. Total by segment may not tie due to rounding.

(2)

Q3 2019 and YTD 2019 Ongoing Operations Net Income increased $46 million and $66 million, respectively, and Q3 2019 and YTD 2019 Ongoing Operations Adjusted EBITDA increased by $13 million and $32 million, respectively, due to the recast of four Illinois plants retired in 2019 to the Asset Closure segment.

(3)

Retail Adjusted EBITDA is negative in the third quarter due to the seasonality of power costs in Texas.  Margins are higher in the first, second, and fourth quarters, offsetting the negative third quarter margins.

(4)

Includes Texas, East, West, Sunset, and Corp./Other.

Guidance

($ in millions)


2020

2021

Ongoing Ops. Adj. EBITDA1

$

3,485 – 3,685

$

3,075 – 3,475

Ongoing Ops. Adj. FCFbG1

$

2,375 – 2,575

$

1,765 – 2,165



(1)

Excludes the Asset Closure segment. Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details.

Vistra is reaffirming both its 2020 and 2021 Ongoing Operations guidance ranges, forecasting 2020 Ongoing Operations Adjusted EBITDA of $3,485 to $3,685 million, 2020 Ongoing Operations Adjusted FCFbG of $2,375 to $2,575 million, 2021 Ongoing Operations Adjusted EBITDA of $3,075 to $3,475 million, and 2021 Ongoing Operations Adjusted FCFbG of $1,765 to $2,165 million.

Capital Allocation

Vistra continued to reduce its debt obligation within the quarter as it approaches its long-term leverage target of 2.5x net debt to EBITDA. During the third quarter, Vistra repaid ~$750 million of debt, consisting of ~$166 million aggregate principal amount of Vistra's 8.125% senior unsecured notes due 2026, $550 million of outstanding borrowings under its revolving credit facility, and ~$35 million of other debt including term loan amortization and borrowings under the forward capacity agreement. Year-to-date, Vistra has reduced its debt by ~$1,150 million.

On Sept. 29, Vistra announced its long-term capital allocation plan for 2021 and 2022, which includes continued debt reduction, an enhanced dividend1, a $1.5 billion authorized share repurchase program, and planned capital expenditures for transformational growth. The $1.5 billion share repurchase program authorized by the Board will begin Jan. 1, 2021, does not have an expiration date, and replaces any authorization under Vistra's existing repurchase plan that remains at the end of 2020. Vistra has not repurchased additional shares under its existing repurchase program since November 2019, as debt reduction has remained the priority year-to-date. Net shares outstanding are ~489 million as of Oct. 30, 2020.

(1)

Based on management's anticipated recommendations; subject to Board's approval at the applicable time 

Liquidity

As of Sept. 30, 2020, Vistra had total available liquidity of ~$2,557 million, including cash and cash equivalents of $500 million and $2,057 million of availability under its revolving credit facility.

Earnings Webcast

Vistra will host a webcast today, Nov. 4, 2020, beginning at 8 a.m. ET (7 a.m. CT) to discuss these results and related matters. The live webcast and the accompanying slides that will be discussed on the call can be accessed via the investor relations section of Vistra's website at www.vistracorp.com under "Investor Relations" and then "Events & Presentations." Participants can also listen by phone by registering here prior to the start time of the call to receive a conference call dial-in number. A replay of the webcast will be available on 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 impacts, reorganization items, and certain other items described from time to time in Vistra's earnings releases),"Adjusted Free Cash Flow before Growth" (or "Adjusted FCFbG") (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures (including capital expenditures for growth investments), other net investment activities, and other items described from time to time in Vistra's earnings releases), "Ongoing Operations Adjusted EBITDA" (adjusted EBITDA less adjusted EBITDA from Asset Closure segment), "Net Income from Ongoing Operations" (net income less net income from Asset Closure segment) and "Ongoing Operations Adjusted Free Cash Flow before Growth" or "Ongoing Operations Adjusted FCFbG" (adjusted free cash flow before growth less cash flow from operating activities from Asset Closure segment before growth), are "non-GAAP financial measures." A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in Vistra's consolidated statements of operations, comprehensive income, changes in stockholders' equity, and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. Vistra's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

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

Media
Meranda Cohn
214-875-8004
Media.Relations@vistracorp.com

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

About  Vistra
Vistra (NYSE: VST) is a leading, Fortune 275 integrated retail electricity and power generation company based in Irving, Texas, providing essential resources for customers, commerce, and communities. Vistra combines an innovative, customer-centric approach to retail with safe, reliable, diverse, and efficient power generation. The company brings its products and services to market in 20 states and the District of Columbia, including six of the seven competitive wholesale markets in the U.S. and markets in Canada and Japan, as well. Serving nearly 5 million residential, commercial, and industrial retail customers with electricity and natural gas, Vistra is the largest competitive residential electricity provider in the country and offers over 50 renewable energy plans. The company is also the largest competitive power generator in the U.S. with a capacity of approximately 39,000 megawatts powered by a diverse portfolio, including natural gas, nuclear, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently constructing a 400-MW/1,600-MWh battery energy storage system in Moss Landing, California, which will be the largest of its kind in the world when it comes online. Vistra is guided by four core principles: we do business the right way, we work as a team, we compete to win, and we care about our stakeholders, including our customers, our communities where we work and live, our employees, and our investors. Learn more about Vistra's environmental, social, and governance efforts and read the company's sustainability report at https://www.vistracorp.com/sustainability/.

Cautionary Note Regarding Forward-Looking Statements
The information presented herein includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which Vistra Corp. ("Vistra") operates and beliefs of and assumptions made by Vistra's management, involve risks and uncertainties, which are difficult to predict and are not guarantees of future performance, that could significantly affect the financial results of Vistra. All statements, other than statements of historical facts, that are presented herein, or in response to questions or otherwise, that address activities, events or developments that may occur in the future, including such matters as activities related to our financial or operational projections, the potential impacts of the COVID-19 pandemic on our results of operations, financial condition and cash flows, projected synergy, value lever and net debt targets, capital allocation, capital expenditures, liquidity, projected Adjusted EBITDA to free cash flow conversion rate, dividend policy, business strategy, competitive strengths, goals, future acquisitions or dispositions, development or operation of power generation assets, market and industry developments and the growth of our businesses and operations (often, but not always, through the use of words or phrases, or the negative variations of those words or other comparable words of a future or forward-looking nature, including, but not limited to: "intends," "plans," "will likely," "unlikely," "believe," "confident", "expect," "seek," "anticipate," "estimate," "continue," "will," "shall," "should," "could," "may," "might," "predict," "project," "forecast," "target," "potential," "goal," "objective," "guidance" and "outlook"),are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra believes that in making any such forward-looking statement, Vistra's expectations are based on reasonable assumptions, any such forward-looking statement involves uncertainties and risks that could cause results to differ materially from those projected in or implied by any such forward-looking statement, including, but not limited to: (i) adverse changes in general economic or market conditions (including changes in interest rates) or changes in political conditions or federal or state laws and regulations; (ii) the ability of Vistra to execute upon the contemplated strategic, capital allocation, and performance initiatives and to successfully integrate acquired businesses; (iii) actions by credit ratings agencies; (iv) the severity, magnitude and duration of pandemics, including the COVID-19 pandemic, and the resulting effects on our results of operations, financial condition and cash flows; and (v) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission by Vistra from time to time, including the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in Vistra's annual report on Form 10-K for the year ended December 31, 2019 and any subsequently filed quarterly reports on Form 10-Q.

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

VISTRA CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Millions of Dollars, Except Per Share Amounts)



Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Operating revenues

$

3,552



$

3,194



$

8,919



$

8,949


Fuel, purchased power costs and delivery fees

(1,469)



(1,687)



(3,832)



(4,287)


Operating costs

(457)



(397)



(1,249)



(1,153)


Depreciation and amortization

(410)



(424)



(1,284)



(1,213)


Selling, general and administrative expenses

(268)



(246)



(755)



(637)


Impairment of long-lived assets

(272)





(356)




Operating income

676



440



1,443



1,659


Other income

8



6



19



45


Other deductions



(4)



(35)



(9)


Interest expense and related charges

(101)



(224)



(541)



(720)


Impacts of Tax Receivable Agreement

58



(62)



44



(26)


Equity in earnings of unconsolidated investment



3



4



13


Income before income taxes

641



159



934



962


Income tax expense

(199)



(45)



(283)



(270)


Net income

$

442



$

114



$

651



$

692


Net (income) loss attributable to noncontrolling interest

1



(1)



14



2


Net income attributable to Vistra Energy

$

443



$

113



$

665



$

694


 

VISTRA CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Millions of Dollars)


Nine Months Ended September 30,


2020


2019

Cash flows — operating activities:




Net income

$

651



$

692


Adjustments to reconcile net income to cash provided by operating activities:




Depreciation and amortization

1,512



1,394


Deferred income tax expense, net

264



254


Impairment of long-lived assets

356




Loss on disposal of investment in NELP

29




Unrealized net gain from mark-to-market valuations of commodities

(444)



(625)


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

181



275


Asset retirement obligation accretion expense

33



40


Impacts of Tax Receivable Agreement

(44)



26


Stock-based compensation

46



35


Other, net

115



12


Changes in operating assets and liabilities:




Margin deposits, net

60



129


Accrued interest

(97)



15


Accrued taxes

(35)



(31)


Accrued employee incentive

(20)



(53)


Other operating assets and liabilities

(257)



(340)


Cash provided by operating activities

2,350



1,823


Cash flows — investing activities:




Capital expenditures, including nuclear fuel purchases and LTSA prepayments

(838)



(474)


Crius acquisition (net of cash acquired)



(374)


Proceeds from sales of nuclear decommissioning trust fund securities

291



354


Investments in nuclear decommissioning trust fund securities

(307)



(370)


Proceeds from sale of environmental allowances

91



32


Purchases of environmental allowances

(210)



(169)


Proceeds from sale of assets

23



6


Other, net

23



16


Cash used in investing activities

(927)



(979)


Cash flows — financing activities:




Issuances of long-term debt



4,600


Repayments/repurchases of debt

(955)



(4,668)


Net borrowings under accounts receivable securitization program

175



261


Borrowings under Revolving Credit Facility

1,075



100


Repayments under Revolving Credit Facility

(1,425)



(100)


Stock repurchase



(632)


Dividends paid to stockholders

(198)



(181)


Debt tender offer and other financing fees

(17)



(170)


Other, net

(3)



6


Cash used in financing activities

(1,348)



(784)


Net change in cash, cash equivalents and restricted cash

75



60


Cash, cash equivalents and restricted cash — beginning balance

475



693


Cash, cash equivalents and restricted cash — ending balance

$

550



$

753


 

VISTRA CORP.

NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020

(Unaudited) (Millions of Dollars)



Retail


Texas


East


West


Sunset


Eliminations /
Corp and
Other


Ongoing
Operations
Consolidated


Asset
Closure


Vistra Corp.
Consolidated

Net income (loss)

$

109



$

925



$

100



$

29



$

(385)



$

(276)



$

502



$

(60)



$

442


Income tax expense











199



199





199


Interest expense and
related charges (a)

2



(2)



2



(3)



1



101



101





101


Depreciation and
amortization (b)

67



138



181



5



13



17



421



10



431


EBITDA before
Adjustments

178



1,061



283



31



(371)



41



1,223



(50)



1,173


Unrealized net (gain)/
loss resulting from
hedging transactions

(316)



(78)



(40)



(9)



122





(321)





(321)


Generation plant
retirement expenses









43





43





43


Fresh start/purchase
accounting impacts

(6)





6














Impacts of Tax
Receivable Agreement











(58)



(58)





(58)


Non-cash
compensation
expenses











16



16





16


Transition and merger
expenses

1





(5)







2



(2)





(2)


Impairment of long-
lived assets









272





272





272


Loss on disposal of
investment in NELP


















COVID-19-related
expenses (c)



2







1





3





3


Other, net

3



15



1



1





(11)



9



2



11


Adjusted EBITDA

$

(140)



$

1,000



$

245



$

23



$

67



$

(10)



$

1,185



$

(48)



$

1,137


___________

(a)     Includes $11 million of unrealized mark-to-market net gains on interest rate swaps.

(b)     Includes nuclear fuel amortization of $20 million in the Texas segment.

(c)     Includes material and supplies and other incremental costs related to our COVID-19 response.

 

VISTRA CORP.

NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

(Unaudited) (Millions of Dollars)



Retail


Texas


East


West


Sunset


Eliminations /
Corp and
Other


Ongoing
Operations
Consolidated


Asset
Closure


Vistra Corp.
Consolidated

Net income (loss)

$

433



$

1,482



$

119



$

49



$

(465)



$

(876)



$

742



$

(91)



$

651


Income tax expense











283



283





283


Interest expense and
related charges (a)

8



(6)



6



(6)



2



537



541





541


Depreciation and
amortization (b)

229



427



540



14



73



48



1,331



10



1,341


EBITDA before
Adjustments

670



1,903



665



57



(390)



(8)



2,897



(81)



2,816


Unrealized net (gain)/
loss resulting from
hedging transactions

(114)



(449)



(37)



(1)



157





(444)





(444)


Generation plant
retirement expenses









43





43





43


Fresh start/purchase
accounting impacts

1



(4)



23





14





34





34


Impacts of Tax
Receivable Agreement











(44)



(44)





(44)


Non-cash
compensation
expenses











46



46





46


Transition and merger
expenses

8



(2)



1







10



17





17


Impairment of long-
lived assets









356





356





356


Loss on disposal of
investment in NELP





29









29





29


COVID-19-related
expenses (c)



12



2





3



1



18





18


Other, net

7



17



8



3



2



(25)



12



2



14


Adjusted EBITDA

$

572



$

1,477



$

691



$

59



$

185



$

(20)



$

2,964



$

(79)



$

2,885


___________

(a)     Includes $181 million of unrealized mark-to-market net losses on interest rate swaps.

(b)     Includes nuclear fuel amortization of $57 million in the Texas segment.

(c)     Includes material and supplies and other incremental costs related to our COVID-19 response.

 

VISTRA CORP.

NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 20191

(Unaudited) (Millions of Dollars)



Retail


Texas


East


West


Sunset


Eliminations / Corp and Other


Ongoing Operations Consolidated


Asset Closure


Vistra Corp.
Consolidated

Net income (loss)

$

573



$

(10)



$

14



$

41



$

(97)



$

(353)



$

168



$

(54)



$

114


Income tax expense











45



45





45


Interest expense and
related charges (a)

8



(2)



3





2



213



224





224


Depreciation and
amortization (b)

86



146



170



5



21



16



444





444


EBITDA before
Adjustments

667



134



187



46



(74)



(79)



881



(54)



827


Unrealized net (gain)/
loss resulting from
hedging transactions

(769)



682



60



(21)



127





79





79


Generation plant
retirement expenses









11





11



38



49


Fresh start / purchase
accounting impacts

(12)







(1)



8





(5)



(3)



(8)


Impacts of Tax
Receivable Agreement











62



62





62


Non-cash
compensation
expenses











12



12





12


Transition and merger
expenses

24



5



1





2



5



37



1



38


Other, net

3



2



6





(1)



(10)





1



1


Adjusted EBITDA

$

(87)



$

823



$

254



$

24



$

73



$

(10)



$

1,077



$

(17)



$

1,060


___________

1 Q3 2019 results increased by $13 million due to the recast of four Illinois plants retired in 2019 to the Asset Closure segment.


(a)     Includes $76 million of unrealized mark-to-market net losses on interest rate swaps.

(b)     Includes nuclear fuel amortization of $20 million in the Texas segment.

 

VISTRA CORP.

NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 20191

(Unaudited) (Millions of Dollars)



Retail


Texas


East


West


Sunset


Eliminations /
Corp and
Other


Ongoing
Operations
Consolidated


Asset
Closure


Vistra Corp.
Consolidated

Net income (loss)

$

3



$

1,346



$

263



$

79



$

166



$

(1,062)



$

795



$

(103)



$

692


Income tax expense











270



270





270


Interest expense and
related charges (a)

16



(7)



10





5



696



720





720


Depreciation and
amortization (b)

204



438



506



14



59



45



1,266





1,266


EBITDA before
Adjustments

223



1,777



779



93



230



(51)



3,051



(103)



2,948


Unrealized net (gain)/
loss resulting from
hedging transactions

192



(616)



(74)



(45)



(82)





(625)





(625)


Generation plant
retirement expenses









11





11



38



49


Fresh start / purchase
accounting impacts

17





4



(3)



10





28



(2)



26


Impacts of Tax
Receivable Agreement











26



26





26


Non-cash
compensation
expenses











36



36





36


Transition and merger
expenses

24



11



5



1



26



15



82





82


Other, net

7



11



20



2



10



(41)



9



3



12


Adjusted EBITDA

$

463



$

1,183



$

734



$

48



$

205



$

(15)



$

2,618



$

(64)



$

2,554


___________

1 YTD 2019 results increased by $32 million due to the recast of four Illinois plants retired in 2019 to the Asset Closure segment.


(a)     Includes $275 million of unrealized mark-to-market net losses on interest rate swaps.

(b)     Includes nuclear fuel amortization of $53 million in the Texas segment.

 

VISTRA CORP.

NON-GAAP RECONCILIATIONS - 2020 GUIDANCE1

(Unaudited) (Millions of Dollars)



Ongoing
Operations


Asset
Closure


Vistra Corp.
Consolidated


Low


High


Low


High


Low


High

Net income (loss)

$

897



$

1,053



$

(87)



$

(77)



$

810



$

976


Income tax expense

249



293







249



293


Interest expense and related charges (a)

657



657







657



657


Depreciation and amortization (b)

1,750



1,750







1,750



1,750


EBITDA before Adjustments

$

3,553



$

3,753



$

(87)



$

(77)



$

3,466



$

3,676


Unrealized net (gain)/loss resulting from hedging transactions

(364)



(364)







(364)



(364)


Fresh start / purchase accounting impacts

31



31







31



31


Impacts of Tax Receivable Agreement

47



47







47



47


Non-cash compensation expenses

59



59







59



59


Transition and merger expenses

40



40



1



1



41



41


Other, net

119



119



1



1



120



120


Adjusted EBITDA guidance

$

3,485



$

3,685



$

(85)



$

(75)



$

3,400



$

3,610


Interest paid, net

(514)



(514)







(514)



(514)


Tax (paid)/received (c)

136



136







136



136


Tax receivable agreement payments

(1)



(1)







(1)



(1)


Working capital and margin deposits

17



17



(5)



(5)



12



12


Reclamation and remediation

(34)



(34)



(94)



(94)



(128)



(128)


Other changes in other operating assets and liabilities

(129)



(129)



(3)



(3)



(132)



(132)


Cash provided by operating activities

$

2,960



$

3,160



$

(187)



$

(177)



$

2,773



$

2,983


Capital expenditures including nuclear fuel purchases and LTSA
prepayments

(704)



(704)







(704)



(704)


Solar and Moss Landing development and other growth
expenditures

(377)



(377)







(377)



(377)


(Purchase)/sale of environmental credits and allowances

(253)



(253)







(253)



(253)


Other net investing activities

(1)



(1)



7



7



6



6


Free cash flow

$

1,625



$

1,825



$

(180)



$

(170)



$

1,445



$

1,655


Working capital and margin deposits

(17)



(17)



5



5



(12)



(12)


Solar and Moss Landing development and other growth
expenditures

377



377







377



377


Purchase/(sale) of environmental credits and allowances

253



253







253



253


Transition and merger expenses

114



114



10



10



124



124


Transition capital expenditures

23



23







23



23


Adjusted free cash flow before growth guidance

$

2,375



$

2,575



$

(165)



$

(155)



$

2,210



$

2,420


____ ________

Regulation G Table for 2020 Guidance prepared as of September 29, 2020.


(a)     Includes unrealized loss on interest rate swaps of $181 million (an incremental loss of $202 million from prior 2020 guidance).  

(b)     Includes nuclear fuel amortization of $74 million.

(c)     Includes state tax payments.

 

VISTRA CORP.

NON-GAAP RECONCILIATIONS - 2021 GUIDANCE1

(Unaudited) (Millions of Dollars)



Ongoing
Operations


Asset
Closure


Vistra Corp.
Consolidated


Low


High


Low


High


Low


High

Net income (loss)

$

607



$

920



$

(80)



$

(60)



$

527



$

860


Income tax expense

195



283







195



283


Interest expense and related charges (a)

429



429







429



429


Depreciation and amortization (b)

1,650



1,650







1,650



1,650


EBITDA before Adjustments

$

2,881



$

3,282



$

(80)



$

(60)



$

2,801



$

3,222


Unrealized net (gain)/loss resulting from hedging transactions

59



59







59



59


Fresh start / purchase accounting impacts

2



2







2



2


Impacts of Tax Receivable Agreement

75



75







75



75


Non-cash compensation expenses

45



45







45



45


Transition and merger expenses

10



10







10



10


Other, net

3



2







3



2


Adjusted EBITDA guidance

$

3,075



$

3,475



$

(80)



$

(60)



$

2,995



$

3,415


Interest paid, net

(456)



(456)







(456)



(456)


Tax (paid)/received (c)

(60)



(60)







(60)



(60)


Tax receivable agreement payments

(3)



(3)







(3)



(3)


Working capital and margin deposits

60



60







60



60


Reclamation and remediation

(38)



(38)



(100)



(100)



(138)



(138)


Other changes in other operating assets and liabilities

1



1



(6)



(6)



(5)



(5)


Cash provided by operating activities

$

2,579



$

2,979



$

(186)



$

(166)



$

2,393



$

2,813


Capital expenditures including nuclear fuel purchases and LTSA
prepayments

(771)



(771)







(771)



(771)


Solar and Moss Landing development and other growth
expenditures

(687)



(687)







(687)



(687)


(Purchase)/sale of environmental credits and allowances

(29)



(29)







(29)



(29)


Other net investing activities

(20)



(20)



6



6



(14)



(14)


Free cash flow

$

1,072



$

1,472



$

(180)



$

(160)



$

892



$

1,312


Working capital and margin deposits

(60)



(60)







(60)



(60)


Solar and Moss Landing development and other growth
expenditures

687



687







687



687


Purchase/(sale) of environmental credits and allowances

29



29







29



29


Transition and merger expenses

28



28







28



28


Transition capital expenditures

9



9







9



9


Adjusted free cash flow before growth guidance

$

1,765



$

2,165



$

(180)



$

(160)



$

1,585



$

2,005


____ ________

Regulation G Table for 2021 Guidance prepared as of September 29, 2020.


(a)     Includes unrealized gain on interest rate swaps of $52 million.

(b)     Includes nuclear fuel amortization of $82 million.

(c)     Includes state tax payments.

 

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SOURCE Vistra

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