IRVING, Texas, Feb. 2, 2021 /PRNewswire/ -- Vistra (NYSE: VST) plans to report its fourth quarter and full year 2020 financial and operating results on Friday, Feb. 26, 2021. Management will present the results during a live conference call and webcast beginning at 8 a.m. ET (7 a.m. CT).
The live webcast 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. For those unable to participate in the live event, a replay will be available on Vistra's website for one year following the call.
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 4.3 million residential, commercial, and industrial retail customers with electricity and natural gas, Vistra is one of the largest competitive residential electricity providers in the country and offers over 50 renewable energy plans. The company is also the largest competitive power generator in the U.S. with a capacity of approximately 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, the largest of its kind in the world. Vistra is guided by four core principles: we do business the right way, we work as a team, we compete to win, and we care about our stakeholders, including our customers, our communities where we work and live, our employees, and our investors. Learn more about our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistracorp.com/sustainability/.
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SOURCE Vistra
IRVING, Texas, Dec. 8, 2020 /PRNewswire/ -- Vistra (NYSE: VST) today is announcing the appointment of Jim Burke as president and chief financial officer, effective immediately. Mr. Burke, who has been with Vistra and its predecessor companies since 2004, has been serving as executive vice president and chief operating officer since 2016. Vistra's outgoing CFO, David Campbell, will be leaving to join Evergy Inc., a Missouri-based regulated utility, as its chief executive officer following a transition period through the end of the year.
"Jim's vast knowledge of the industry and expansive understanding of our company will prove invaluable," said Curt Morgan, Vistra's chief executive officer. "During his time here, Jim has led most of Vistra's teams, giving him unique insight and knowledge of our company and the CFO position will round out Jim's experience. Jim is highly respected both inside and outside of our company and his strong business and financial acumen, combined with the talents of our existing finance organization, will position Vistra for continued growth and success as we transform our portfolio. The board of directors and I are thrilled to appoint Jim as our new president and CFO."
Morgan continued, "I also want to thank David for his leadership and contributions to our company. The entire Vistra family wishes him much success."
In his new capacity, Mr. Burke will assume broad responsibility for the company's accounting, risk, internal audit, treasury, tax, planning, M&A, and investor activities, along with overseeing the critical technology services function. Mr. Burke will continue to report to Mr. Morgan.
Mr. Burke said, "I've been fortunate to work at this incredible company for 16 years, but there's never been a more exciting time to be part of this team. The industry is changing quickly and Vistra is well-positioned to lead the energy transformation – I'm looking forward to serving our customers, our people, and our shareholders in a new role."
With Mr. Burke's move to CFO, his former position of COO is being eliminated and the various operational functions reporting to that position are being realigned within the organization. The retail and generation businesses, including development of the zero-carbon Vistra Zero generation portfolio, will report to Mr. Morgan. Prior to this announcement the Vistra board of directors initiated discussions with Mr. Morgan, which are ongoing, to extend the term of his employment agreement in recognition of his commitment to lead the company as it transitions to a low-to-no emissions fleet comprised primarily of natural gas, renewables, and energy storage while growing the company's retail business.
Jim Burke Bio
Mr. Burke is a 20-year veteran of the electricity industry. Prior to his role as Vistra's COO, he previously served as chairman and CEO of TXU Energy, the leading competitive retailer in Texas and a subsidiary of Vistra and its predecessor company. Mr. Burke led TXU Energy from August 2005 to October 2016 after joining in late 2004 as senior vice president of TXU Energy's residential markets.
Before to joining TXU Energy, he was president and COO of Gexa Energy, and vice president of residential marketing then senior vice president of consumer operations with Reliant Energy.
Prior to his experience in competitive electricity markets, Mr. Burke worked at The Coca-Cola Company for six years, both domestically in the juice division of The Minute Maid Company and internationally in the expansion of the juice business through Coca-Cola Bottlers in Latin America, South Africa, and Hong Kong. Prior to Coca-Cola, he was a management consultant for Deloitte & Touche Consulting.
Mr. Burke is a licensed certified public accountant and has also earned the designation as a chartered financial analyst. He is a graduate of Tulane University, earning a bachelor's degree in economics and a master's in business administration in finance and general management.
Outside of his responsibilities at Vistra, Mr. Burke currently serves as a board member of the Nuclear Energy Institute and as an advisory board member for the Tulane University Energy Institute. He is also a member of the board for the United Way Foundation of Metropolitan Dallas and the Ursuline Academy of Dallas.
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 our 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 Dec. 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.
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SOURCE Vistra
IRVING, Texas, Nov. 11, 2020 /PRNewswire/ -- Vistra (NYSE: VST) announced today it is donating $50,000 to several organizations working to support active and veteran military members and to celebrate our nation's heroes. With more than 400 veterans, guardsmen, and reservists in the Vistra family, the company has long recognized the immense value military experience adds to the workplace. In addition, the company is committed to working with veteran-owned businesses. Vistra is a founding member of the National Veteran-Owned Business Association, and this year was selected as one of NaVOBA's 2020 Best Corporations for Veteran's Business Enterprises®.
"Vistra is committed to the hiring and advancement of veterans, not because it feels good or looks good, but because it makes good business sense – and more importantly, it is just the right thing to do," said Curt Morgan, president and chief executive officer of Vistra. "There is no more selfless act than to serve our country in the military. In an effort to show our appreciation and to support military members transitioning into the workforce, Vistra is proud to partner with a number of military and veteran organizations. Thank you to all veterans and their families, who have worked so hard and sacrificed so much to protect each and every one of us – Vistra salutes you."
Vistra's donations will directly assist organizations working to transition veterans to the workplace, provide scholarships, build homes for those in need, and organize events honoring our veterans.
"We appreciate the outstanding support by the team at Vistra to help make a positive impact on the lives of our military servicemen and women, veterans, and their families," said Stephen Holley, president and CEO of Carry The Load and Veteran U.S. Navy SEAL. "Their generous donation to Carry The Load helps advance our awareness program of honoring and remembering the sacrifices made by our nation's heroes and their families."
Media
Meranda Cohn
Media.Relations@vistracorp.com
214-875-8004
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 our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistracorp.com/sustainability/.
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SOURCE Vistra Energy
CINCINNATI, Nov. 10, 2020 /PRNewswire/ -- Dynegy today announced a $25,000 donation to the Urban League of Greater Southwestern Ohio, aimed at promoting personal empowerment and economic self-sufficiency. The donation will directly fund the Urban League's workforce development programs.
"As we navigate the fallout of the pandemic, America's leading corporations must partner with small business owners to fuel this vital sector of our economy," said Curt Morgan, president and CEO of Vistra. "Vistra and our team at Dynegy are fully committed to providing support to the small businesses that make Southwestern Ohio – and cities all over this country – strong."
Dynegy's donation will help the Urban League of Greater Southwestern Ohio assist clients in becoming financially self-sufficient and partner with small business owners on development and expansion opportunities.
"The Urban League of Greater Southwestern Ohio thanks Vistra and Dynegy for their generous donation. This $25,000 will support the Urban League's work to help families become financially stable and small businesses grow in communities across Cincinnati and Dayton," said Eddie Koen, president and CEO of the Urban League of Greater Southwestern Ohio. "The pandemic has exposed families and entrepreneurs to additional stress. Important donations like these help the Urban League address the disparities in African American communities' resources."
Dynegy's donation is part of a $10 million commitment from its parent company, Vistra, to support organizations that grow minority-owned small businesses, enhance economic development, and provide educational opportunities for students from diverse backgrounds. 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 is also the largest competitive power generator in the U.S.
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra (NYSE: VST).
Media
Jenny Lyon
214-875-8004
Media.Relations@vistracorp.com
View original content:http://www.prnewswire.com/news-releases/dynegy-donates-25-000-to-support-the-urban-league-of-greater-southwestern-ohio-301169466.html
SOURCE Dynegy
PHILADELPHIA, Nov. 10, 2020 /PRNewswire/ -- Dynegy today announced a $25,000 donation to the Urban League of Philadelphia, aimed at assisting and empowering small business owners. The donation will directly fund the Urban League's Entrepreneurship Center.
"As we navigate the fallout of the pandemic, America's leading corporations must partner with small business owners to fuel this vital sector of our economy," said Curt Morgan, president and CEO of Vistra. "Vistra and our team at Dynegy are fully committed to providing support, training, and financial assistance to the small businesses that make Philadelphia – and cities all over this country – strong."
Dynegy's donation will help the Urban League of Philadelphia assist small business owners with marketing efforts, provide one-on-one coaching to entrepreneurs, and offer business owners credit counseling and tax preparation services.
"We are thankful to Vistra and Dynegy for their generous donation to support our entrepreneurship center and small business clients during these difficult financial times," said Andrea Custis, president and CEO of the Urban League of Philadelphia. "Their support has given our clients the lifeline and resources needed to reposition their businesses and pursue new markets."
Dynegy's donation is part of a $10 million commitment from its parent company, Vistra, to support organizations that grow minority-owned small businesses, enhance economic development, and provide educational opportunities for students from diverse backgrounds. Serving nearly 5 million residential, commercial, and industrial retail customers with electricity and natural gas, Vistra is the largest competitive residential electricity provider in the country and is also the largest competitive power generator in the U.S.
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra (NYSE: VST).
Media
Jenny Lyon
214-875-8004
Media.Relations@vistracorp.com
View original content:http://www.prnewswire.com/news-releases/dynegy-donates-25-000-to-support-the-urban-league-of-philadelphia-301169592.html
SOURCE Dynegy
IRVING, Texas, Nov. 4, 2020 /PRNewswire/ -- Vistra (NYSE: VST):
Financial Highlights
($ in millions, other than | 2021 | 2022 |
Debt Reduction | ~$550 | |
Enhanced Dividend2 | $0.58/share | $0.76/share |
Share Repurchases | Up to $1,500 | |
Transformation Growth | ~$650 | ~$500 |
Realized in Year | Achieved by YE | |
2020 | $622 | $697 |
2021 | $726 | $756 |
Portfolio Transformation
ESG Highlights
(1) | Excludes the Asset Closure segment. Net Income from Ongoing Operations, Ongoing Operations Adjusted EBITDA, and Ongoing Operations Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further detail. |
(2) | Based on management's anticipated recommendations; subject to Board's approval at the applicable time. |
Summary of Financial Results for Third Quarter Ended Sept. 30, 2020
Three Months Ended | Nine Months Ended | |||||
($ 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. | |||||||||||||||
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. | |||||||
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 / | Ongoing | Asset | Vistra Corp. | |||||||||||||||||||||||||||
Net income (loss) | $ | 109 | $ | 925 | $ | 100 | $ | 29 | $ | (385) | $ | (276) | $ | 502 | $ | (60) | $ | 442 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 199 | 199 | — | 199 | ||||||||||||||||||||||||||
Interest expense and | 2 | (2) | 2 | (3) | 1 | 101 | 101 | — | 101 | ||||||||||||||||||||||||||
Depreciation and | 67 | 138 | 181 | 5 | 13 | 17 | 421 | 10 | 431 | ||||||||||||||||||||||||||
EBITDA before | 178 | 1,061 | 283 | 31 | (371) | 41 | 1,223 | (50) | 1,173 | ||||||||||||||||||||||||||
Unrealized net (gain)/ | (316) | (78) | (40) | (9) | 122 | — | (321) | — | (321) | ||||||||||||||||||||||||||
Generation plant | — | — | — | — | 43 | — | 43 | — | 43 | ||||||||||||||||||||||||||
Fresh start/purchase | (6) | — | 6 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Impacts of Tax | — | — | — | — | — | (58) | (58) | — | (58) | ||||||||||||||||||||||||||
Non-cash | — | — | — | — | — | 16 | 16 | — | 16 | ||||||||||||||||||||||||||
Transition and merger | 1 | — | (5) | — | — | 2 | (2) | — | (2) | ||||||||||||||||||||||||||
Impairment of long- | — | — | — | — | 272 | — | 272 | — | 272 | ||||||||||||||||||||||||||
Loss on disposal of | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
COVID-19-related | — | 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 / | Ongoing | Asset | Vistra Corp. | |||||||||||||||||||||||||||
Net income (loss) | $ | 433 | $ | 1,482 | $ | 119 | $ | 49 | $ | (465) | $ | (876) | $ | 742 | $ | (91) | $ | 651 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 283 | 283 | — | 283 | ||||||||||||||||||||||||||
Interest expense and | 8 | (6) | 6 | (6) | 2 | 537 | 541 | — | 541 | ||||||||||||||||||||||||||
Depreciation and | 229 | 427 | 540 | 14 | 73 | 48 | 1,331 | 10 | 1,341 | ||||||||||||||||||||||||||
EBITDA before | 670 | 1,903 | 665 | 57 | (390) | (8) | 2,897 | (81) | 2,816 | ||||||||||||||||||||||||||
Unrealized net (gain)/ | (114) | (449) | (37) | (1) | 157 | — | (444) | — | (444) | ||||||||||||||||||||||||||
Generation plant | — | — | — | — | 43 | — | 43 | — | 43 | ||||||||||||||||||||||||||
Fresh start/purchase | 1 | (4) | 23 | — | 14 | — | 34 | — | 34 | ||||||||||||||||||||||||||
Impacts of Tax | — | — | — | — | — | (44) | (44) | — | (44) | ||||||||||||||||||||||||||
Non-cash | — | — | — | — | — | 46 | 46 | — | 46 | ||||||||||||||||||||||||||
Transition and merger | 8 | (2) | 1 | — | — | 10 | 17 | — | 17 | ||||||||||||||||||||||||||
Impairment of long- | — | — | — | — | 356 | — | 356 | — | 356 | ||||||||||||||||||||||||||
Loss on disposal of | — | — | 29 | — | — | — | 29 | — | 29 | ||||||||||||||||||||||||||
COVID-19-related | — | 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. | |||||||||||||||||||||||||||
Net income (loss) | $ | 573 | $ | (10) | $ | 14 | $ | 41 | $ | (97) | $ | (353) | $ | 168 | $ | (54) | $ | 114 | |||||||||||||||||
Income tax expense | — | — | 45 | 45 | — | 45 | |||||||||||||||||||||||||||||
Interest expense and | 8 | (2) | 3 | — | 2 | 213 | 224 | — | 224 | ||||||||||||||||||||||||||
Depreciation and | 86 | 146 | 170 | 5 | 21 | 16 | 444 | — | 444 | ||||||||||||||||||||||||||
EBITDA before | 667 | 134 | 187 | 46 | (74) | (79) | 881 | (54) | 827 | ||||||||||||||||||||||||||
Unrealized net (gain)/ | (769) | 682 | 60 | (21) | 127 | — | 79 | — | 79 | ||||||||||||||||||||||||||
Generation plant | — | — | — | — | 11 | — | 11 | 38 | 49 | ||||||||||||||||||||||||||
Fresh start / purchase | (12) | — | — | (1) | 8 | — | (5) | (3) | (8) | ||||||||||||||||||||||||||
Impacts of Tax | — | — | — | — | — | 62 | 62 | — | 62 | ||||||||||||||||||||||||||
Non-cash | — | — | — | — | — | 12 | 12 | — | 12 | ||||||||||||||||||||||||||
Transition and merger | 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 / | Ongoing | Asset | Vistra Corp. | |||||||||||||||||||||||||||
Net income (loss) | $ | 3 | $ | 1,346 | $ | 263 | $ | 79 | $ | 166 | $ | (1,062) | $ | 795 | $ | (103) | $ | 692 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 270 | 270 | — | 270 | ||||||||||||||||||||||||||
Interest expense and | 16 | (7) | 10 | — | 5 | 696 | 720 | — | 720 | ||||||||||||||||||||||||||
Depreciation and | 204 | 438 | 506 | 14 | 59 | 45 | 1,266 | — | 1,266 | ||||||||||||||||||||||||||
EBITDA before | 223 | 1,777 | 779 | 93 | 230 | (51) | 3,051 | (103) | 2,948 | ||||||||||||||||||||||||||
Unrealized net (gain)/ | 192 | (616) | (74) | (45) | (82) | — | (625) | — | (625) | ||||||||||||||||||||||||||
Generation plant | — | — | — | — | 11 | — | 11 | 38 | 49 | ||||||||||||||||||||||||||
Fresh start / purchase | 17 | — | 4 | (3) | 10 | — | 28 | (2) | 26 | ||||||||||||||||||||||||||
Impacts of Tax | — | — | — | — | — | 26 | 26 | — | 26 | ||||||||||||||||||||||||||
Non-cash | — | — | — | — | — | 36 | 36 | — | 36 | ||||||||||||||||||||||||||
Transition and merger | 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 | Asset | Vistra Corp. | |||||||||||||||||||||
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 | (704) | (704) | — | — | (704) | (704) | |||||||||||||||||
Solar and Moss Landing development and other growth | (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 | 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 | |||||||||||
____________ | |||||||||||||||||||||||
1 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 | Asset | Vistra Corp. | |||||||||||||||||||||
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 | (771) | (771) | — | — | (771) | (771) | |||||||||||||||||
Solar and Moss Landing development and other growth | (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 | 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 | |||||||||||
____________ | |||||||||||||||||||||||
1 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
IRVING, Texas, Oct. 27, 2020 /PRNewswire/ -- Vistra (NYSE: VST) announced today that its Board of Directors has declared a quarterly dividend of $0.135 per share of Vistra's common stock, or $0.54 per share on an annualized basis. Consistent with the dividend paid in September 2020, this dividend represents an 8% increase from the company's quarterly common stock dividend paid in 2019. The dividend is payable on Dec. 30, 2020, to shareholders of record as of Dec. 16, 2020. The ex-dividend date will be Dec. 15, 2020.
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 40 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/
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SOURCE Vistra
CHICAGO, Oct. 12, 2020 /PRNewswire/ -- Dynegy today announced a $50,000 donation to the Chicago Urban League, aimed at ensuring access to quality education. The donation will directly fund the Chicago Urban League's Youth Services Center (formerly the Center for Student Development), which offers services and programs to help students thrive academically and, ultimately, professionally.
"In this moment, we must acknowledge that fundamental building blocks – like a good education – are out of reach for too many people. As a corporation, Vistra is determined to be part of the solution," said Curt Morgan, president and CEO of Vistra. "Vistra and our team at Dynegy are fully committed to strengthening the communities we serve. For us, that means driving inclusion, promoting equity, and investing in the organizations that serve as a springboard for the next generation of diverse, American leaders."
Dynegy's donation will advance the Chicago Urban League's STEAM (science, technology, engineering, art, and math) programs, which prepare middle school through college students to compete in a growing global economy.
"Our programming engages youth in hands-on applications of science, technology, engineering and math and helps many of them see themselves on a path to a STEAM career though exposure, equity, and access," said Karen Freeman-Wilson, president and CEO of the Chicago Urban League. "Dynegy's generous donation directly contributed to our ability to serve more youth through our virtual STEAM camp this summer and will continue to support our programming over the current academic year."
Dynegy's donation is part of a $10 million commitment from Dynegy's parent company, Vistra, to support organizations that grow minority-owned small businesses, enhance economic development, and provide educational opportunities for students from diverse backgrounds. 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 is also the largest competitive power generator in the U.S.
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra (NYSE: VST).
About the Chicago Urban League
Since 1916, the Chicago Urban League—through collaborative community, corporate and civic relationships—has helped people find jobs, secure affordable housing, enhance their educational experiences, and grow their businesses. We are passionate advocates for economic and social equity for Black families and communities. In FY2019, our Youth Services Center served more than 1,300 middle school through college-age youth. Visit www.chiul.org and follow us on Twitter at @ChiUrbanLeague and Facebook at @ChicagoUrbanLeague.
Media
Jenny Lyon
214-875-8004
Media.Relations@vistracorp.com
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SOURCE Dynegy
IRVING, Texas, Oct. 1, 2020 /PRNewswire/ -- TXU Energy today announced it is committing $100,000 to support Texas food banks, still working through soaring demand and resetting logistics due to the COVID-19 pandemic.
"TXU Energy understands that our food banks are doing what – just months ago – many would have said was impossible. Staff members and volunteers are stepping up to meet record demand head-on, and handling first-time clients with grace and sensitivity," said Brad Watson, TXU Energy's senior director of community affairs. "Our company is deeply committed to supporting the communities we serve, and right now, that means linking arms with organizations on the ground, working to end hunger and help neighbors who have been disproportionately affected by the pandemic."
The $100,000 donation is directly supporting food banks meet their most pressing needs.
"As we continue to meet the need for food assistance for North Texas, we know that it will take a caring community to ensure that our neighbors have the foods that they need to thrive," said Trisha Cunningham, president and CEO of the North Texas Food Bank. "The team at TXU Energy and Vistra have proudly supported the NTFB for some time now, they provided a major gift in March at the onset of the pandemic and now in honor of Hunger Action Month, they are providing the Food Bank with another generous gift which will enable us to provide 75,000 nutritious meals for our neighbors in need. We are so thankful for this gift as it will help us meet the need during a critical time."
TXU Energy's donation to food banks across Texas is part of a $225,000 commitment to food banks nationwide from TXU Energy's parent company, Vistra. 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 is also the largest competitive power generator in the U.S.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra (NYSE: VST). REP #10004
Media
Jenny Lyon
214-875-8004
MediaHotline@txu.com
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www.youtube.com/txuenergy
www.facebook.com/txuenergy
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SOURCE TXU Energy
IRVING, Texas, Sept. 29, 2020 /PRNewswire/ -- Vistra (NYSE: VST) today announced a comprehensive plan to accelerate its transition to clean power generation sources and advance efforts to significantly reduce its carbon footprint. The company launched Vistra Zero, a portfolio of zero-carbon power generation facilities, including seven new developments announced today in its primary market of ERCOT that total nearly 1,000 megawatts. In addition, the company committed to more ambitious long-term emissions reduction targets, released its first climate report, and announced its intention to retire all of its generation subsidiaries' coal plants in Illinois and Ohio.
"The aggregate impact of these milestone initiatives is clear: Vistra's commitment to our transformation to a low-to-no-carbon future is unequivocal and offers unique opportunities for growth and innovation," said Curt Morgan, president and CEO of Vistra. "As evidenced by the actions we take and investments we make, Vistra is paving its way for a sustainable future – economically and environmentally – and we've been focused on transitioning our generation portfolio for the benefit of the environment, our customers, our communities, our people, and our shareholders."
Morgan continued, "Importantly, Vistra's leadership on these issues will not impact our core mission to provide consumers with reliable, affordable, and sustainable energy while lowering emissions. Electricity is an essential resource, and the demand for it will continue to grow as climate initiatives are implemented and the economy is further electrified. So, while the way we produce electricity is changing, our essential role in the process and core mission will not. Vistra is well-positioned to not only prove our resiliency during this important transformation to cleaner generation sources, but to lead the way. Our value proposition has never been stronger, and our sustainability has never been clearer. We are confident over time that the severe under-valuation of our stock price will be recognized, and our fair value achieved."
New Zero-Carbon Development Projects: Vistra Zero
Vistra, which is already developing the world's largest battery energy storage project, the 400-MW/1,600-MWh Moss Landing Energy Storage Facility in California, today announced that it is breaking ground on six new solar projects and one battery energy storage project. These new zero-carbon developments, which are part of a newly launched Vistra Zero portfolio, represent a capital investment of approximately $850 million and are all located in the attractive Texas ERCOT market where Vistra has a leadership position:
Expected online in 2021
Expected online in 2022
The Vistra Zero portfolio also includes the company's existing nuclear, renewable, and energy storage facilities:
Inclusive of its new carbon-free projects, the Vistra Zero portfolio now consists of approximately 4,000 MW of zero-carbon assets. In addition, the company continues to evaluate additional solar and battery projects, including more than 1,000 MW in Texas, more than 1,000 MW in California, and approximately 450 MW in Illinois under the Coal to Solar and Energy Storage Act. Vistra is also exploring potential future development opportunities at many of the company's existing power plant sites.
Updated 2030/2050 Emissions Reduction Targets
Consistent with its strategic priorities, the company also accelerated its greenhouse gas emissions reduction targets. Vistra is now setting out 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 20501.
1 Assuming necessary advancements in technology and supportive market constructs and public policy.
CO2 Reductions Through Coal Retirements
Vistra also announced its next phase of coal plant closures in Illinois and Ohio. The company expects to retire seven Luminant power plants, of which the company owns a combined capacity of more than 6,800 MW, between 2022 and 2027.
By year-end 2022
By year-end 2025 or sooner should economic or other conditions dictate
By year-end 2027 or sooner should economic or other conditions dictate
These plants, especially those operating in the irreparably dysfunctional MISO market, remain economically challenged. Today's retirement announcements are also prompted by upcoming Environmental Protection Agency filing deadlines, which require either significant capital expenditures for compliance or retirement declarations.
"Our team members have gone above and beyond to make these plants viable, and they have been safely powering these communities with affordable and reliable electricity for decades," said Jim Burke, chief operating officer of Vistra. "The advance notice of these retirements provides us with ample time to work with our impacted employees and communities to ease the impact of the closures, including seeking the passage of the Illinois Coal to Solar and Energy Storage Act. We've proven ourselves in previous similar situations to live up to our core principles, taking care of our employees and communities. That will not change."
Since the company's leadership change in 2016, Vistra and its subsidiaries have closed or announced the closure of 19 coal plants totaling more than 16,000 MW across Texas (2018: Big Brown, Monticello, Sandow), Pennsylvania (2018: Northeastern Power Co.), Ohio (2018: J.M. Stuart, Killen; no later than 2027: Miami Fort, Zimmer), Illinois (2016: Wood River; 2019: Coffeen, Duck Creek, Havana, Hennepin; 2022: Edwards; no later than 2025: Baldwin, Joppa; no later than 2027: Kincaid, Newton), and Massachusetts (2017: Brayton Point). In total, Vistra and its subsidiaries have now retired or announced the retirement of more than 19,000 MW at 23 coal and natural gas plants since 2010.
1 Vistra has an 80% ownership interest in Joppa Power Plant that, when combined with its 80-100% ownership interest in the Joppa combustion turbines, totals 1,023 MW of the site's total capacity.
Vistra's Climate Report
A comprehensive review of Vistra's climate strategy is contained in Vistra's first Climate Report, published today in accordance with the guidance set forth by the Task Force on Climate-related Financial Disclosures (TCFD). Among other topics, the Climate Report discusses various climate-related risks and opportunities that Vistra management has identified as influencing the company's long-term strategy. Importantly, as an innovative, market-leading integrated power company, Vistra believes global climate change mitigation will create significant opportunities for the company to grow, even as it reduces its total emissions over the next several decades.
Financial Update
Also this morning, Vistra provided certain financial updates, including raising and narrowing its 2020 financial guidance, initiating its 2021 financial guidance, and announcing its long-term capital allocation plan. Specifically, Vistra:
($ in millions) | Prior 2020 | Current 2020 |
Ongoing Ops. Adj. EBITDA1 | $ 3,285 – 3,585 | $ 3,485 – 3,685 |
Ongoing Ops. Adj. FCFbG1 | $ 2,160 – 2,460 | $ 2,375 – $2,575 |
FCF Conversion | ~67% | ~69% |
($ in millions) | 2021 |
Ongoing Ops. Adj. EBITDA1 | $ 3,075 – 3,475 |
Ongoing Ops. Adj. FCFbG1 | $ 1,765 – 2,165 |
FCF Conversion | ~60% |
($ in millions) | ||
2021 | 2022 | |
Debt Reduction | ~$550 | |
Enhanced Dividend2 | ~$275 ($0.58/share) | ~$350 ($0.76/share) |
Share Repurchases | Up to $1,500 | |
Transformation Growth | ~$650 | ~$500 |
As depicted in the table above, in September 2020 Vistra's board of directors authorized a $1.5 billion share repurchase program. The program commences Jan. 1, 2021, does not expire, and replaces any authorization that remains at the end of 2020 under Vistra's existing repurchase plan.
With today's financial updates, Vistra is on track to beat its original guidance midpoint for the fifth year in a row and potentially even exceed the top end of its original guidance range — despite a pandemic tail event in 2020. In addition, with the continued debt reduction in 2021 and 2022 Vistra believes it is well-positioned to achieve improved credit ratings including the potential to achieve investment grade ratings over this timeframe. The company also believes it is well-positioned to consistently deliver strong long-term earnings into the future, while investing in the transformation of the company and returning a significant amount of its free cash flow to its financial stakeholders on an annual basis.
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.
2 Management recommendation; subject to Board of Director's approval at the applicable time.
Media
Meranda Cohn
Media.Relations@vistracorp.com
214-875-8004
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 our 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 Dec. 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. NON-GAAP RECONCILIATIONS – PRIOR 2020 GUIDANCE1 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing | Asset | Vistra | |||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||
Net Income (loss) | $ | 849 | $ | 1,081 | $ | (95) | $ | (75) | $ | 754 | $ | 1,006 | |||||||||||
Income tax expense | 252 | 320 | — | — | 252 | 320 | |||||||||||||||||
Interest expense and related charges (a) | 463 | 463 | — | — | 463 | 463 | |||||||||||||||||
Depreciation and amortization (b) | 1,600 | 1,600 | — | — | 1,600 | 1,600 | |||||||||||||||||
EBITDA before Adjustments | $ | 3,164 | $ | 3,464 | $ | (95) | $ | (75) | $ | 3,069 | $ | 3,389 | |||||||||||
Unrealized net (gain)/loss resulting from hedging transactions | (29) | (29) | — | — | (29) | (29) | |||||||||||||||||
Impacts of Tax Receivable Agreement | 69 | 69 | — | — | 69 | 69 | |||||||||||||||||
Non-cash compensation expenses | 44 | 44 | — | — | 44 | 44 | |||||||||||||||||
Transition and merger expenses | 35 | 35 | — | — | 35 | 35 | |||||||||||||||||
Other, net | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Adjusted EBITDA guidance | $ | 3,285 | $ | 3,585 | $ | (95) | $ | (75) | $ | 3,190 | $ | 3,510 | |||||||||||
Interest paid, net | (543) | (543) | — | — | (543) | (543) | |||||||||||||||||
Tax (paid)/received (c) | 153 | 153 | — | — | 153 | 153 | |||||||||||||||||
Tax receivable agreement payments | (3) | (3) | — | — | (3) | (3) | |||||||||||||||||
Working capital and margin deposits | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Reclamation and remediation | (60) | (60) | (126) | (126) | (186) | (186) | |||||||||||||||||
Other changes in other operating assets and liabilities | (80) | (80) | 31 | 31 | (49) | (49) | |||||||||||||||||
Cash provided by operating activities | $ | 2,754 | $ | 3,054 | $ | (190) | $ | (170) | $ | 2,564 | $ | 2,884 | |||||||||||
Capital expenditures including nuclear fuel purchases and LTSA Prepayments | (613) | (613) | — | — | (613) | (613) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | (315) | (315) | — | — | (315) | (315) | |||||||||||||||||
(Purchase)/sale of environmental credits and allowances | (39) | (39) | — | — | (39) | (39) | |||||||||||||||||
Other net investing activities | (20) | (20) | — | — | (20) | (20) | |||||||||||||||||
Free cash flow | $ | 1,767 | $ | 2,067 | $ | (190) | $ | (170) | $ | 1,577 | $ | 1,897 | |||||||||||
Working capital and margin deposits | (2) | (2) | — | — | (2) | (2) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | 315 | 315 | — | — | 315 | 315 | |||||||||||||||||
Purchase/(sale) of environmental credits and allowances | 39 | 39 | — | — | 39 | 39 | |||||||||||||||||
Transition and merger expenses | 38 | 38 | — | — | 38 | 38 | |||||||||||||||||
Transition capital expenditures | 3 | 3 | — | — | 3 | 3 | |||||||||||||||||
Adjusted free cash flow before growth guidance | $ | 2,160 | $ | 2,460 | $ | (190) | $ | (170) | $ | 1,970 | $ | 2,290 |
____________ | |||||||||||||||||||||||
1 Regulation G Table for 2020 Guidance prepared as of November 5, 2019. | |||||||||||||||||||||||
(a) Includes unrealized gain on interest rate swaps of $21 million. | |||||||||||||||||||||||
(b) Includes nuclear fuel amortization of $74 million. | |||||||||||||||||||||||
(c) Includes state tax payments. |
VISTRA CORP. | ||||||||||||||||||||||||||||||||||||||||||||||||
Ongoing |
Asset |
Vistra | ||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 3,376 | ||||||||||||||||||||||||||||||||||||
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 |
____________ | ||||||||||||||||||||||||||||||||||||||||
1 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 | Asset | Vistra | |||||||||||||||||||||||||||||
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 |
____________ | |||||||||||||||||||||||||||||||
1 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
CHICAGO, Sept. 24, 2020 /PRNewswire/ -- Dynegy today announced that it has entered into a multi-year partnership with Chicago's iconic Willis Tower to provide 100% renewable electricity to the Tower.
"Sustainability is a top priority as we transform Willis Tower into a market-leading work environment," said David Moore, senior vice president and portfolio director, EQ Office. "Our partnership with Dynegy is one of the many ways we're continuing our commitment to co-creating sustainable experiences in and around Willis Tower, and we're proud to further EQ's mission of making smart, green choices that improve the space around us."
The contract with Dynegy ensures that 100% of Willis Tower's electricity comes from wind power via renewable energy credits and also ensures that costs to tenants remain consistent. The deal was signed as the 110-story urban destination undergoes the biggest restorative project in its history. As part of the transformation, EQ has made significant energy, sustainability and comfort upgrades throughout the building, leading Willis Tower to achieve the U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) Platinum certification. Willis Tower is the largest building in the U.S. to have earned this prestigious ranking.
"For Dynegy, understanding this customer's bold commitment to sustainability and its sweeping vision for the future was key to developing business solutions, and ultimately, a partnership," said Gabe Castro, senior vice president of business markets for Dynegy. "Dynegy is proud to power the historic Willis Tower and serve the millions of people who work and visit there each year, and to provide clean, reliable electricity to the businesses and tenants of this Chicago landmark."
In addition to powering Willis Tower, Dynegy is also the Official and Exclusive Energy Provider for the Chicago Cubs and Wrigley Field. The company understands the unique operational needs of buildings that draw visitors on this scale and is committed to creating tailored solutions that work for each of its customers.
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra (NYSE: VST).
About Willis Tower
Located at 233 S. Wacker Drive in the heart of downtown Chicago, Willis Tower is an urban destination and state-of-the-art workplace that welcomes prominent businesses ranging from law firms to large airline corporations to insurance companies. Standing 1,450 feet and 110 stories tall, Willis Tower has the region's most breathtaking views of Chicago and Lake Michigan. Willis Tower's Skydeck attracts more than 1.7 million visitors each year with its inviting hospitality and memorable experiences. In early 2017, Blackstone and EQ Office announced plans for the biggest restorative transformation project in the building's 47-year history. The $500 million renovation project now underway includes the addition of Catalog, a more than 300,000 square-feet curated dining, entertainment and community experience, as well as a 30,000 square-feet outdoor deck and garden, evolving at the base of the tower. The Catalog name is a historical nod to Willis Tower's original developer and owner, Sears Roebuck, and its popular printed catalog, which was a retail disrupter of its age. Catalog offers an effective way to experience great content, products and experiences. New tenants are now opening in Catalog, and this will continue through its completion in 2021. The Tower renovation also includes 150,000 square feet of new tenant amenity spaces. As part of the renovation, the U.S. Green Building Council awarded Willis Tower the Leadership in Energy and Environmental Design (LEED) Platinum certification for energy efficiency upgrades made throughout the Tower. Willis Tower was also recently named one of the Council on Tall Buildings and Urban Habitat's (CTBUH) 50 Most Influential Tall Buildings of the Last 50 Years and to the Illinois Council of the American Institute of Architects (AIA) Illinois' 200 Great Places list. For more information, visit www.WillisTower.com and connect on Facebook and Instagram.
Media
Jenny Lyon
214-875-8004
Media.Relations@vistracorp.com
View original content:http://www.prnewswire.com/news-releases/dynegy-selected-to-power-chicagos-iconic-willis-tower-with-wind-energy-301137721.html
SOURCE Dynegy
IRVING, Texas, Sept. 14, 2020 /PRNewswire/ -- Vistra (NYSE: VST) will host a virtual investor event, as previously announced, on Tuesday, Sept. 29, 2020. Management will introduce 2021 guidance, announce its long-term capital allocation plan, and present Vistra's sustainable portfolio transformation strategy during a live conference call and webcast beginning at 9 a.m. ET (8 a.m. CT) and ending no later than 11 a.m. ET (10 a.m. CT).
The live webcast 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 dialing (833) 287-0796 in the U.S. or (647) 689-4455 outside the U.S. Please dial in 10 to 15 minutes prior to the scheduled start time using the confirmation code 8476718. For those unable to participate in the live event, a replay will be available on Vistra's website for one year following the call.
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/.
View original content to download multimedia:http://www.prnewswire.com/news-releases/vistra-to-host-virtual-investor-event-301128497.html
SOURCE Vistra
IRVING, Texas, Sept. 8, 2020 /PRNewswire/ -- Vistra (NYSE: VST) today announced that it has capped-off a summer giving campaign to provide laptops to low-income students ahead of the 2020-21 school year. The company has partnered with Comp-U-Dopt, a non-profit organization that provides technology access and education to underserved youth. Vistra's $230,000 donation, through its retail electric brands TXU Energy and Dynegy, supports Comp-U-Dopt programs in Chicago, Dallas, and Fort Worth, with the funds going directly to the purchase of nearly 2,000 refurbished, free-of-charge laptops for families without a computer in the home.
"We understand that this school year is different than any other," said Curt Morgan, Vistra's president and chief executive officer. "We also recognize that the pandemic has disproportionately impacted low-income Americans, including those with school-age children for whom buying the bare essentials is challenging enough – to say nothing of bridging the digital divide. The need to do so is pressing: students without a computer are at risk of losing months of educational opportunity compared to peers with the proper equipment. Comp-U-Dopt's innovative program helps ensure those children do not fall behind and are positioned for success despite the obstacles. We're proud to support their work and look forward to continuing to do so well into the future."
Vistra's commitment to the Comp-U-Dopt program is part of its previously-announced $2 million donation to non-profits and social service agencies that provide direct relief for people with critical needs resulting from the COVID-19 pandemic in the communities it serves. This effort to equip students with the technology they need to navigate online learning is consistent with key focus areas of the company's giving policy – to enhance educational opportunities and support community welfare.
"The COVID-19 outbreak and school closures has magnified the need to get more computers to students and families without access at home," added Megan Steckly, Comp-U-Dopt's chief executive officer. "Vistra's support directly advances that goal and allows us to significantly increase our inventory at the most pressing time of the year. We are immensely grateful for their support, advocacy, and belief in our mission."
According to the Pew Research Institute, 46% of low-income families lack access to a computer at home. With supply chain delays and the global demand for devices at an all-time high, Comp-U-Dopt's mission to provide technology access and education to underserved youth is needed now, more than ever.
"Doing business the right way means looking beyond our four walls to take care of the communities where our customers and employees live and work," Morgan continued. "All students deserve to be equipped with the tools they need to be successful, and we're optimistic that these computers will provide them the confidence to tackle the school year."
Media
Meranda Cohn
Media.Relations@vistracorp.com
214-875-8004
About Vistra
Vistra (NYSE: VST) is a premier, integrated, Fortune 275 energy 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 40 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 our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistracorp.com/sustainability/.
View original content:http://www.prnewswire.com/news-releases/vistra-strengthens-commitment-to-provide-laptops-to-low-income-students-301125558.html
SOURCE Vistra
IRVING, Texas, Sept. 8, 2020 /PRNewswire/ -- Vistra (NYSE: VST) was saddened to hear that Ted Halstead, founder of four non-profit think tanks and advocacy organizations including the Climate Leadership Council (CLC) and Americans for Carbon Dividends (AFCD), of which Vistra is a Founding Member, passed away last week. Vistra would like to send its deepest condolences to his family, the CLC and AFCD teams, and others personally impacted by Ted's passing.
Ted was an innovative leader and a staunch advocate for the environment, spending his career promoting sensible climate progress, most recently through the CLC and AFCD. Through his leadership and enthusiasm these organizations compiled a roster of founding members that included influential business, economic, policy, and environmental leaders. Vistra is committed to advancing the common mission of these organizations through its continued participation.
"It is a true privilege to be a member of the climate organizations Ted founded," said Curt Morgan, Vistra's president and chief executive officer. "Ted devoted so much of his time, talent, and energy into promoting the CLC's climate change solution—it is one Vistra backs 100%. We intend to keep Ted's memory alive through our continued advocacy for the climate pricing and dividends framework he dedicated his last years to promoting."
Media
Meranda Cohn
Media.Relations@vistracorp.com
214-875-8004
Investors
Molly Sorg
Investor@vistracorp.com
214-812-0046
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/.
View original content to download multimedia:http://www.prnewswire.com/news-releases/vistra-sends-heartfelt-condolences-on-the-passing-of-ted-halstead-reiterates-support-for-the-climate-leadership-council-and-americans-for-carbon-dividends-301125205.html
SOURCE Vistra
KING OF PRUSSIA, Pa., Aug. 20, 2020 /PRNewswire/ -- In the aftermath of Hurricane Isaias, Dynegy is here to help. The company today announced a $10,000 donation to provide critical energy assistance for low income households.
"We understand that Isaias arrived in the shadow of a pandemic, adding yet another burden to the most economically vulnerable," said Brad Watson, senior director of community affairs for Dynegy. "For decades, Dynegy has served communities throughout the Northeast, and our commitment continues. As cities and towns work through the aftermath of this storm, Dynegy is here to help households struggling to pay their energy bills."
The $10,000 donation will directly assist residents in temporary crisis who are struggling to pay their energy bills.
"With more people forced to stay, work and learn from home, energy consumption is at its peak and the Fuel Fund of Maryland is seeing an increase in applications for utility assistance," said Debbie Brown, Fuel Fund of Maryland director. "The generosity of Dynegy will allow us to provide assistance to dozens of low income households struggling to pay their utility bill during the COVID-19 pandemic."
"The financial resources of the individuals and families we serve have become increasingly tight, and irrespective of the current season, this will make a significant difference to those struggling with both the summer temperatures and the economic uncertainty as the colder months approach," said Douglas Ferguson, director of corporate and foundation relations for The Salvation Army – Massachusetts.
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra (NYSE: VST).
Media
Jenny Lyon
214-875-8004
Media.Relations@vistraenergy.com
View original content:http://www.prnewswire.com/news-releases/dynegy-supports-communities-impacted-by-hurricane-isaias-301115795.html
SOURCE Dynegy
CHICAGO, Aug. 17, 2020 /PRNewswire/ -- With just a few weeks until the start of the new school year, 1,000 students from Chicago's 10th Ward are getting computers provided by Dynegy and Comp-U-Dopt. On Aug. 21, during two distribution events, pre-selected families will receive laptops, free of charge, at contactless drive-thru events. To qualify, families must have at least one student enrolled in a 10th Ward school or a recent 2020 10th Ward high school graduate.
WHEN: | AUGUST 21, from 10:00 a.m. – 11:00 a.m. |
WHERE: | George Washington High School, 3535 E 114th St., Chicago, IL 60617 |
INTERVIEWEES: | 10th Ward Alderwoman Susan Sadlowski-Garza; |
Kaia Dutler, Comp-U-Dopt Executive Director, Chicago and Northern Illinois | |
On the afternoon of Aug. 21, a second distribution event will take place:
| |
WHEN: | AUGUST 21, from 2:00 p.m. – 3:00 p.m. |
WHERE: | George Washington High School, 3535 E 114th St., Chicago, IL 60617 |
INTERVIEWEES: | U.S. Congresswoman Robin Kelly; |
State Senator Elgie R. Sims; | |
State Representative Marcus Evans |
"I am truly humbled by Dynegy's generosity and its recent investment into 10th Ward students," said Susan Sadlowski-Garza, alderwoman for Chicago's 10th Ward. "We can't achieve true equity in education until our students are equipped with the tools they need to be successful. Students and parents deserve access to technology. Our partnership with Dynegy and Comp-U-Dopt is a step closer in bridging the digital divide."
The refurbished laptops, purchased by Dynegy, include the Windows 10 operating system, two years of technical support, and information on free and low-cost internet options, all furthering efforts to bridge the digital gap for Chicago students.
Brad Watson, Dynegy's senior director of community affairs, said, "As a trusted electricity provider to the greater Chicago area, Dynegy has a long-standing history of supporting educational programs and strengthening the communities we serve. We know this school year will have its challenges but accessing your schoolwork shouldn't be one of them. We want these children to be successful, and our hope is that these computers will give families a greater sense of confidence and peace of mind, knowing they can better navigate online learning."
According to the Pew Research Institute, 46% of low-income families lack access to a computer at home. With supply chain delays and the global demand for devices at an all-time high, Comp-U-Dopt's mission to provide technology access and education to underserved youth is needed now, more than ever.
"Through this partnership, we are not only supporting distance learning, but giving entire families the ability to access other support resources previously beyond reach," said Megan Steckly, Comp-U-Dopt CEO. "Our mission, to provide technology access and education to underserved youth, has become more critical than ever during this time."
Media
Kaia Dutler
kaia@compudopt.org
972-740-7790
Jenny Lyon
Media.Relations@vistracorp.com
214-875-8004
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra (NYSE: VST).
About Comp-U-Dopt
Comp-U-Dopt is a 501(c)(3) non-profit organization founded in 2007 with a mission to provide technology access and education to underserved youth. To date they have distributed over 17,000 devices to students in need and delivered over 100,000 hours of technology education. Each year they serve 3,000-plus young people from economically disadvantaged families providing computers and quality STEM and workforce focused afterschool programming. They have programs in Chicago, Dallas, Galveston, Houston, and Washington D.C. www.compudopt.org
View original content:http://www.prnewswire.com/news-releases/dynegy-and-comp-u-dopt-partner-to-provide-technology-access-to-chicago-students-301113137.html
SOURCE Dynegy
IRVING, Texas, Aug. 14, 2020 /PRNewswire/ -- TXU Energy today announced the recognition of four leading-edge South Texas organizations as category winners in the TXU Energy Leadership Awards Program. This program recognizes companies and non-profits that exhibit exemplary leadership in the areas of engagement, energy management, community, and innovation.
"These organizations truly represent the gold standard in energy efficiency, environmental stewardship, and commitment to community," said Gabe Castro, senior vice president of business markets for TXU Energy. "In honoring these valuable TXU Energy customers, and sharing stories of their success, we hope to inspire leadership across an array of industries, and open minds to changes – both large and small – that can make a world of difference for the environment and a company's bottom line."
The four South Texas-area winners include:
TXU Energy is proud to share the success stories of its Energy Leadership Award recipients. Learn more about what TXU Energy can do to help your business or organization achieve its energy and sustainability goals by visiting us on LinkedIn.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra (NYSE: VST). REP #10004
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View original content:http://www.prnewswire.com/news-releases/txu-energy-announces-recipients-of-energy-leadership-awards-301112266.html
SOURCE TXU Energy
IRVING, Texas, Aug. 5, 2020 /PRNewswire/ -- Vistra (NYSE: VST):
Financial Highlights
Realized in Year | Achieved by YE | ||||||||||
2020 | $622 | $697 | |||||||||
2021 | $726 | $756 |
ESG Highlights
(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) | Vistra has not updated its 2020 Ongoing Operations Adjusted FCFbG guidance to reflect the early receipt of $93 million of alternative minimum tax (AMT) refunds in 2019 that were forecast to be received in 2020. In accordance with the recently passed Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Vistra will accelerate its claim of approximately $64 million of AMT refunds on its 2020 tax return. We expect we will receive the $64 million refund in the second half of 2020. |
Summary of Financial Results for Second Quarter Ended June 30, 2020
Three Months Ended | Six Months Ended | |||||
($ in millions) | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||
Net Income | $ 164 | $ 354 | $ 209 | $ 578 | ||
Ongoing Operations Net Income1 | $ 178 | $ 380 | $ 240 | $ 628 | ||
Ongoing Operations Adjusted EBITDA1 | $ 929 | $ 717 | $ 1,779 | $ 1,541 | ||
Adjusted EBITDA by Segment | ||||||
Retail | $ 401 | $ 293 | $ 712 | $ 550 | ||
ERCOT | $ 260 | $ 156 | $ 477 | $ 360 | ||
PJM | $ 183 | $ 167 | $ 401 | $ 368 | ||
NY/NE | $ 72 | $ 91 | $ 132 | $ 177 | ||
MISO2 | $ 3 | $ 11 | $ 31 | $ 67 | ||
CAISO/Corp. | $ 10 | $ (1) | $ 26 | $ 19 | ||
Asset Closure | $ (13) | $ (25) | $ (30) | $ (47) |
For the three months ended June 30, 2020, Vistra reported Net Income of $164 million, Net Income from Ongoing Operations1 of $178 million, and Ongoing Operations Adjusted EBITDA1 of $929 million. Vistra's second quarter 2020 Net Income was $190 million lower than second quarter 2019 Net Income, driven by a decrease in unrealized gains on hedging transactions. Vistra's second quarter Adjusted EBITDA from Ongoing Operations2 was $212 million higher than second quarter 2019 results, driven by the acquisitions of Ambit and Crius in the second half of 2019, results of Vistra's OPI program, and higher generation margins in ERCOT and PJM.
Vistra reported second quarter Adjusted EBITDA from the Retail segment of $401 million, $108 million higher than second quarter 2019 results, driven by the acquisitions of Crius and Ambit. Second quarter Adjusted EBITDA from the generation3 segments, on an aggregate basis, totaled $528 million, $104 million higher than second quarter 2019 results driven by Vistra's OPI program and higher margins in the ERCOT and PJM segments.
For the first half of 2020, Vistra reported Net Income of $209 million, Net Income from Ongoing Operations1 of $240 million and Ongoing Operations Adjusted EBITDA1 of $1,779 million. Vistra's Net Income for the first half of 2020 was $369 million lower than first half of 2019 Net Income, driven primarily by a decrease in unrealized gains on hedging transactions. Ongoing Operations Adjusted EBITDA2 for the first half of 2020 was $238 million higher than the first half of 2019, driven by higher generation margins and the acquisitions of Crius and Ambit.
"We continue to operate during an unprecedented tail event, proving the resilience of Vistra's business model – one that prioritizes a strong balance sheet and low-cost, integrated operations. Our second quarter performance is further evidence that this business model is the right one, and stronger and more stable than ever," said Curt Morgan, Vistra's president and chief executive officer. "Vistra's strong financial results are the direct result of the work of our No. 1 asset – our people – and our advantaged asset and business positions. We are committed to the health and safety of our employees and that includes an obligation to ensure an equitable workplace so that all team members can achieve their career aspirations. Vistra is prudently investing time and money in its people, its customers, its facilities, and its communities, so that whether faced with a pandemic, a natural disaster, or inequality and social injustice, Vistra will be a sustainable company providing reliable, essential electricity and needed assistance to the communities and customers we serve, while delivering attractive returns to our investors."
(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) | 2019 results for four MISO assets retired in late 2019 were recast from the MISO segment to the Asset Closure segment, resulting in an increase of $10 million and $19 million to our Q2 2019 and first half 2019 MISO segment results, respectively. | |
(3) | Includes ERCOT, PJM, NY/NE, MISO, and CAISO/Corp. |
Guidance
($ in millions) | 2020 | |
Ongoing Operations Adjusted EBITDA1 | $ | 3,285 – 3,585 |
Ongoing Operations Adjusted FCFbG1,2 | $ | 2,160 – 2,460 |
(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. | |
(2) | Vistra has not updated its 2020 Ongoing Operations Adjusted FCFbG guidance to reflect the early receipt of $93 million of AMT refunds in 2019 that were forecast to be received in 2020. In accordance with the CARES Act, Vistra will accelerate its claim of approximately $64 million of AMT refunds on its 2020 tax return. We expect we will receive the $64 million refund in the second half of 2020. |
Vistra is reaffirming its 2020 Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of $3,285 to $3,585 million and $2,160 to $2,460 million, respectively, while currently tracking above both guidance midpoints.
Capital Allocation
Vistra took further steps during the second quarter and continuing into July 2020 to reduce its debt obligations as it approaches its long-term leverage target of 2.5x net debt to EBITDA. Specifically, Vistra redeemed approximately $666 million of debt, consisting of $500 million aggregate principal amount of Vistra 5.875% senior unsecured notes due 2023 and approximately $166 million aggregate principal amount of Vistra's 8.125% senior unsecured notes due 2026. Vistra continues to prioritize debt reduction in 2020 and, as a result, has not repurchased additional shares under its authorized share repurchase program since November 2019. Net shares outstanding are approximately 488.8 million as of July 31, 2020. Vistra plans to announce its long-term capital allocation plan during a virtual investor event on Sept. 29, 2020.
Liquidity
As of June 30, 2020, Vistra had total available liquidity of approximately $1,669 million, including cash and cash equivalents of $382 million and $1,287 million of availability under its revolving credit facility.
Earnings Webcast
Vistra will host a webcast today, Aug. 5, 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 of directors have found it informative to view the Asset Closure segment as separate and distinct from Vistra's ongoing operations. Vistra uses Net Income 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
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Analysts
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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 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. | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Operating revenues | $ | 2,509 | $ | 2,832 | $ | 5,367 | $ | 5,755 | |||||||
Fuel, purchased power costs and delivery fees | (1,029) | (1,139) | (2,362) | (2,600) | |||||||||||
Operating costs | (412) | (370) | (792) | (755) | |||||||||||
Depreciation and amortization | (455) | (384) | (875) | (790) | |||||||||||
Selling, general and administrative expenses | (236) | (210) | (488) | (392) | |||||||||||
Impairment of long-lived assets | — | — | (84) | — | |||||||||||
Operating income | 377 | 729 | 766 | 1,218 | |||||||||||
Other income | 5 | 13 | 12 | 39 | |||||||||||
Other deductions | (4) | (2) | (35) | (5) | |||||||||||
Interest expense and related charges | (141) | (274) | (440) | (495) | |||||||||||
Impacts of Tax Receivable Agreement | (6) | 33 | (14) | 36 | |||||||||||
Equity in earnings of unconsolidated investment | 1 | 3 | 4 | 10 | |||||||||||
Income before income taxes | 232 | 502 | 293 | 803 | |||||||||||
Income tax expense | (68) | (148) | (84) | (225) | |||||||||||
Net income | $ | 164 | $ | 354 | $ | 209 | $ | 578 | |||||||
Net loss attributable to noncontrolling interest | 2 | 2 | 13 | 3 | |||||||||||
Net income attributable to Vistra | $ | 166 | $ | 356 | $ | 222 | $ | 581 | |||||||
VISTRA CORP. | |||||||
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Cash flows — operating activities: | |||||||
Net income | $ | 209 | $ | 578 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 1,022 | 886 | |||||
Deferred income tax expense, net | 73 | 217 | |||||
Impairment of long-lived assets | 84 | — | |||||
Loss on disposal of investment in NELP | 29 | — | |||||
Unrealized net gain from mark-to-market valuations of commodities | (123) | (703) | |||||
Unrealized net loss from mark-to-market valuations of interest rate swaps | 192 | 199 | |||||
Asset retirement obligation accretion expense | 23 | 27 | |||||
Impacts of Tax Receivable Agreement | 14 | (36) | |||||
Stock-based compensation | 30 | 24 | |||||
Other, net | 55 | 73 | |||||
Changes in operating assets and liabilities: | |||||||
Margin deposits, net | 58 | 112 | |||||
Accrued interest | (6) | 6 | |||||
Accrued taxes | (59) | (67) | |||||
Accrued employee incentive | (70) | (72) | |||||
Other operating assets and liabilities | (222) | (362) | |||||
Cash provided by operating activities | 1,309 | 882 | |||||
Cash flows — investing activities: | |||||||
Capital expenditures, including nuclear fuel purchases and LTSA prepayments | (588) | (303) | |||||
Proceeds from sales of nuclear decommissioning trust fund securities | 224 | 292 | |||||
Investments in nuclear decommissioning trust fund securities | (234) | (302) | |||||
Proceeds from sale of environmental allowances | 88 | 31 | |||||
Purchases of environmental allowances | (173) | (138) | |||||
Other, net | 30 | 21 | |||||
Cash used in investing activities | (653) | (399) | |||||
Cash flows — financing activities: | |||||||
Issuances of long-term debt | — | 4,600 | |||||
Repayments/repurchases of debt | (756) | (4,137) | |||||
Net borrowings under accounts receivable securitization program | — | 91 | |||||
Borrowings under Revolving Credit Facility | 925 | — | |||||
Repayments under Revolving Credit Facility | (725) | — | |||||
Stock repurchase | — | (457) | |||||
Dividends paid to stockholders | (132) | (120) | |||||
Debt tender offer and other financing fees | (10) | (146) | |||||
Other, net | — | (1) | |||||
Cash provided by (used in) financing activities | (698) | (170) | |||||
Net change in cash, cash equivalents and restricted cash | (42) | 313 | |||||
Cash, cash equivalents and restricted cash — beginning balance | 475 | 693 | |||||
Cash, cash equivalents and restricted cash — ending balance | $ | 433 | $ | 1,006 |
VISTRA CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE THREE MONTHS ENDED JUNE 30, 2020 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations / Corp and Other | Ongoing Operations Consolidated | Asset Closure | Vistra Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | 229 | $ | 299 | $ | (66) | $ | (18) | $ | (32) | $ | (234) | $ | 178 | $ | (14) | $ | 164 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 68 | 68 | — | 68 | ||||||||||||||||||||||||||
Interest expense and | 3 | (2) | 1 | — | 1 | 138 | 141 | — | 141 | ||||||||||||||||||||||||||
Depreciation and | 82 | 147 | 165 | 48 | 9 | 21 | 472 | — | 472 | ||||||||||||||||||||||||||
EBITDA before | 314 | 444 | 100 | 30 | (22) | (7) | 859 | (14) | 845 | ||||||||||||||||||||||||||
Unrealized net (gain) | 81 | (190) | 67 | 33 | 14 | (3) | 2 | — | 2 | ||||||||||||||||||||||||||
Fresh start/purchase | 5 | (2) | 12 | 7 | 8 | — | 30 | — | 30 | ||||||||||||||||||||||||||
Impacts of Tax | — | — | — | — | — | 6 | 6 | — | 6 | ||||||||||||||||||||||||||
Non-cash | — | — | — | — | — | 17 | 17 | — | 17 | ||||||||||||||||||||||||||
Transition and | 1 | (4) | — | — | — | 3 | — | — | — | ||||||||||||||||||||||||||
Loss on disposal of | — | — | 1 | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||
COVID-19-related | — | 9 | 2 | — | 1 | — | 12 | — | 12 | ||||||||||||||||||||||||||
Other, net | — | 3 | 1 | 2 | 2 | (6) | 2 | 1 | 3 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 401 | $ | 260 | $ | 183 | $ | 72 | $ | 3 | $ | 10 | $ | 929 | $ | (13) | $ | 916 |
___________ | ||
(a) | Includes $18 million of unrealized mark-to-market net gains on interest rate swaps. | |
(b) | Includes nuclear fuel amortization of $17 million in the ERCOT 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 SIX MONTHS ENDED JUNE 30, 2020 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations / Corp and Other | Ongoing Operations Consolidated | Asset Closure | Vistra Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | 323 | $ | 557 | $ | 53 | $ | (3) | $ | (111) | $ | (579) | $ | 240 | $ | (31) | $ | 209 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 84 | 84 | — | 84 | ||||||||||||||||||||||||||
Interest expense and | 6 | (4) | 3 | 1 | 1 | 433 | 440 | — | 440 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 162 | 290 | 303 | 97 | 20 | 40 | 912 | — | 912 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 491 | 843 | 359 | 95 | (90) | (22) | 1,676 | (31) | 1,645 | ||||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | 202 | (371) | 1 | 12 | 24 | 9 | (123) | — | (123) | ||||||||||||||||||||||||||
Fresh start/purchase accounting impacts | 8 | (5) | 14 | 7 | 10 | — | 34 | — | 34 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 14 | 14 | — | 14 | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 30 | 30 | — | 30 | ||||||||||||||||||||||||||
Transition and merger expenses | 6 | (2) | 7 | — | — | 8 | 19 | — | 19 | ||||||||||||||||||||||||||
Impairment of long-lived assets | — | — | — | — | 84 | — | 84 | — | 84 | ||||||||||||||||||||||||||
Loss on disposal of investment in NELP | — | — | 14 | 15 | — | — | 29 | — | 29 | ||||||||||||||||||||||||||
COVID-19-related expenses (c) | — | 9 | 2 | 1 | 1 | 1 | 14 | — | 14 | ||||||||||||||||||||||||||
Other, net | 5 | 3 | 4 | 2 | 2 | (14) | 2 | 1 | 3 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 712 | $ | 477 | $ | 401 | $ | 132 | $ | 31 | $ | 26 | $ | 1,779 | $ | (30) | $ | 1,749 |
___________ | ||
(a) | Includes $192 million of unrealized mark-to-market net losses on interest rate swaps. | |
(b) | Includes nuclear fuel amortization of $37 million in the ERCOT 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 JUNE 30, 20191 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations / Corp and Other | Ongoing Operations Consolidated | Asset Closure | Vistra Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | (585) | $ | 1,056 | $ | 183 | $ | 79 | $ | 46 | $ | (399) | $ | 380 | $ | (26) | $ | 354 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 148 | 148 | — | 148 | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 4 | (3) | 3 | 1 | 2 | 267 | 274 | — | 274 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 59 | 143 | 134 | 39 | 3 | 21 | 399 | — | 399 | ||||||||||||||||||||||||||
EBITDA before Adjustments | (522) | 1,196 | 320 | 119 | 51 | 37 | 1,201 | (26) | 1,175 | ||||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | 797 | (1,047) | (163) | (32) | (65) | (7) | (517) | — | (517) | ||||||||||||||||||||||||||
Fresh start / purchase | 15 | (1) | 2 | 1 | 3 | (1) | 19 | 1 | 20 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | (33) | (33) | — | (33) | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 11 | 11 | — | 11 | ||||||||||||||||||||||||||
Transition and merger expenses | — | 5 | 1 | 1 | 17 | 3 | 27 | — | 27 | ||||||||||||||||||||||||||
Other, net | 3 | 3 | 7 | 2 | 5 | (11) | 9 | — | 9 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 293 | $ | 156 | $ | 167 | $ | 91 | $ | 11 | $ | (1) | $ | 717 | $ | (25) | $ | 692 |
___________ | ||
1 2Q19 results for four MISO assets retired in late 2019 were recast from the MISO segment to the Asset Closure segment, resulting in an increase of $10 million to our 2Q19 MISO segment results. | ||
(a) Includes $119 million of unrealized mark-to-market net gains on interest rate swaps. | ||
(b) Includes nuclear fuel amortization of $15 million in the ERCOT segment. |
VISTRA CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE SIX MONTHS ENDED JUNE 30, 20191 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations / Corp and Other | Ongoing Operations Consolidated | Asset Closure | Vistra Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | (571) | $ | 1,356 | $ | 346 | $ | 100 | $ | 67 | $ | (670) | $ | 628 | $ | (50) | $ | 578 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 225 | 225 | — | 225 | ||||||||||||||||||||||||||
Interest expense and | 8 | (5) | 5 | 1 | 3 | 483 | 495 | — | 495 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 118 | 293 | 265 | 104 | 7 | 37 | 824 | — | 824 | ||||||||||||||||||||||||||
EBITDA before Adjustments | (445) | 1,644 | 616 | 205 | 77 | 75 | 2,172 | (50) | 2,122 | ||||||||||||||||||||||||||
Unrealized net (gain) | 961 | (1,298) | (255) | (38) | (50) | (23) | (703) | — | (703) | ||||||||||||||||||||||||||
Fresh start / purchase accounting impacts | 29 | — | (5) | 3 | 6 | (2) | 31 | 2 | 33 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | (36) | (36) | — | (36) | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 24 | 24 | — | 24 | ||||||||||||||||||||||||||
Transition and merger expenses | — | 6 | 3 | 2 | 24 | 9 | 44 | — | 44 | ||||||||||||||||||||||||||
Other, net | 5 | 8 | 9 | 5 | 10 | (28) | 9 | 1 | 10 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 550 | $ | 360 | $ | 368 | $ | 177 | $ | 67 | $ | 19 | $ | 1,541 | $ | (47) | $ | 1,494 |
___________ | ||
1 YTD 2019 results for four MISO assets retired in late 2019 were recast from the MISO segment to the Asset Closure segment, resulting in an increase of $19 million to our YTD 2019 MISO segment results. | ||
(a) Includes $199 million of unrealized mark-to-market net losses on interest rate swaps. | ||
(b) Includes nuclear fuel amortization of $34 million in the ERCOT segment. |
VISTRA CORP. NON-GAAP RECONCILIATIONS - 2020 GUIDANCE1 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing | Asset | Vistra | |||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||
Net Income (loss) | $ | 849 | $ | 1,081 | $ | (95) | $ | (75) | $ | 754 | $ | 1,006 | |||||||||||
Income tax expense | 252 | 320 | — | — | 252 | 320 | |||||||||||||||||
Interest expense and related charges (a) | 463 | 463 | — | — | 463 | 463 | |||||||||||||||||
Depreciation and amortization (b) | 1,600 | 1,600 | — | — | 1,600 | 1,600 | |||||||||||||||||
EBITDA before Adjustments | $ | 3,164 | $ | 3,464 | $ | (95) | $ | (75) | $ | 3,069 | $ | 3,389 | |||||||||||
Unrealized net (gain)/loss resulting from hedging transactions | (29) | (29) | — | — | (29) | (29) | |||||||||||||||||
Impacts of Tax Receivable Agreement | 69 | 69 | — | — | 69 | 69 | |||||||||||||||||
Non-cash compensation expenses | 44 | 44 | — | — | 44 | 44 | |||||||||||||||||
Transition and merger expenses | 35 | 35 | — | — | 35 | 35 | |||||||||||||||||
Other, net | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Adjusted EBITDA guidance | $ | 3,285 | $ | 3,585 | $ | (95) | $ | (75) | $ | 3,190 | $ | 3,510 | |||||||||||
Interest paid, net | (543) | (543) | — | — | (543) | (543) | |||||||||||||||||
Tax (paid)/received (c) | 153 | 153 | — | — | 153 | 153 | |||||||||||||||||
Tax receivable agreement payments | (3) | (3) | — | — | (3) | (3) | |||||||||||||||||
Working capital and margin deposits | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Reclamation and remediation | (60) | (60) | (126) | (126) | (186) | (186) | |||||||||||||||||
Other changes in other operating assets and liabilities | (80) | (80) | 31 | 31 | (49) | (49) | |||||||||||||||||
Cash provided by operating activities | $ | 2,754 | $ | 3,054 | $ | (190) | $ | (170) | $ | 2,564 | $ | 2,884 | |||||||||||
Capital expenditures including nuclear fuel purchases and | (613) | (613) | — | — | (613) | (613) | |||||||||||||||||
Solar and Moss Landing development and other growth | (315) | (315) | — | — | (315) | (315) | |||||||||||||||||
(Purchase)/sale of environmental credits and allowances | (39) | (39) | — | — | (39) | (39) | |||||||||||||||||
Other net investing activities | (20) | (20) | — | — | (20) | (20) | |||||||||||||||||
Free cash flow | $ | 1,767 | $ | 2,067 | $ | (190) | $ | (170) | $ | 1,577 | $ | 1,897 | |||||||||||
Working capital and margin deposits | (2) | (2) | — | — | (2) | (2) | |||||||||||||||||
Moss Landing development and other growth expenditures | 315 | 315 | — | — | 315 | 315 | |||||||||||||||||
Purchase/(sale) of environmental credits and allowances | 39 | 39 | — | — | 39 | 39 | |||||||||||||||||
Transition and merger expenses | 38 | 38 | — | — | 38 | 38 | |||||||||||||||||
Transition capital expenditures | 3 | 3 | — | — | 3 | 3 | |||||||||||||||||
Adjusted free cash flow before growth guidance | $ | 2,160 | $ | 2,460 | $ | (190) | $ | (170) | $ | 1,970 | $ | 2,290 |
____________ | ||
1 Regulation G Table for 2020 Guidance prepared as of November 5, 2019. | ||
(a) Includes unrealized gain on interest rate swaps of $21 million. | ||
(b) Includes nuclear fuel amortization of $74 million. | ||
(c) Includes state tax payments. |
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SOURCE Vistra
IRVING, Texas, July 29, 2020 /PRNewswire/ -- Vistra (NYSE: VST) announced today that its Board of Directors has declared a quarterly dividend of $0.135 per share of Vistra's common stock, or $0.54 per share on an annualized basis. Consistent with the dividend paid in June 2020, this dividend represents an 8% increase from the company's quarterly common stock dividend paid in 2019. The dividend is payable on Sept. 30, 2020, to shareholders of record as of Sept. 16, 2020. The ex-dividend date will be Sept. 15, 2020.
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 40 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/
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SOURCE Vistra
IRVING, Texas, July 29, 2020 /PRNewswire/ -- In the aftermath of Hurricane Hanna, TXU Energy is here to help. The company today announced a $10,000 donation to provide critical personal protective equipment for first responders and to replace food that was lost during power outages.
"We understand that Hanna's arrival presented an immense challenge to our fellow Texans living along the Gulf Coast and in the Rio Grande Valley. A region, already wrestling with the outbreak of a deadly virus, has now been handed the aftermath of a hurricane," said Brad Watson, senior director of community affairs for TXU Energy. "As first responders, families and volunteer organizations are forced to rethink every part of their typical storm response, TXU Energy stands with the heroes who are dealing with dueling crises head on."
The $10,000 donation will directly assist communities and individuals to meet their most urgent needs.
Additionally, as TXU Energy is doing for customers impacted by the pandemic, the company will work with individual customers impacted by Hurricane Hanna to provide payment flexibility. TXU Energy customers should call 1-800-242-9113 to:
Bill-payment assistance is also available through TXU Energy AidSM . The funds, which are donated by the company, its employees, and customers, are allocated to existing TXU Energy Aid agency partners serving the Gulf Coast and the Rio Grande Valley.
To take advantage of this bill-payment assistance, TXU Energy customers affected by the hurricane and or the pandemic should call 2-1-1 or visit 211texas.org.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra (NYSE: VST). REP #10004
Media
Jenny Lyon
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
View original content:http://www.prnewswire.com/news-releases/txu-energy-supports-customers-and-communities-impacted-by-hurricane-hanna-301102525.html
SOURCE TXU Energy
IRVING, Texas, July 13, 2020 /PRNewswire/ -- With the official arrival of triple-digit temperatures, TXU Energy is proud to launch its 22nd annual Beat the Heat program and events. This year, the company is expanding its efforts as more Texans face financial hardships related to the effects of COVID-19. With social distancing in mind, the 2020 program includes drive-thru distributions of new air conditioning units and fans, education on heat safety, easy-to-use tips for saving on energy costs, and information on financial assistance for TXU Energy customers.
"For more than 20 years, TXU Energy's Beat the Heat program has provided support to thousands of Texans. During a Texas summer, being comfortable in your home isn't a luxury; it's a necessity," said Scott Hudson, president of TXU Energy. "This year, as the pandemic keeps people home during our hottest months, we are keenly aware that assistance for the most vulnerable has never been more essential."
TXU Energy's $100,000 contribution directly supports social service organizations assisting people across Texas. With additional donations to be distributed throughout the summer months, TXU Energy's initial Beat the Heat efforts include:
Additionally, TXU Energy continues to provide bill payment assistance to customers in need through its TXU Energy AidSM program. For over 35 years, these funds, donated by employees, customers, and the company, have been distributed by TXU Energy Aid partner agencies. For information on which social service agencies are providing assistance, Texans should call 211 or visit 211Texas.org and type "electricity bill assistance" in the search box.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra (NYSE: VST). REP #10004
Media
Jenny Lyon
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
View original content:http://www.prnewswire.com/news-releases/txu-energy-expands-signature-summer-assistance-program-to-help-more-texans-stay-safe-and-cool-301091957.html
SOURCE TXU Energy
IRVING, Texas, July 13, 2020 /PRNewswire/ -- Vistra (NYSE: VST) plans to report its second quarter 2020 financial and operating results on Wednesday, Aug. 5, 2020. Management will present the results during a live conference call and webcast beginning at 8 a.m. ET (7 a.m. CT).
The live webcast 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. For those unable to participate in the live event, a replay will be available on Vistra's website for one year following the call.
Vistra also plans to host a 90-minute virtual investor broadcast on Tuesday, Sept. 29, 2020 to discuss capital allocation as well as other important business topics. The event will be broadcast live from the Investor Relations section of Vistra's website, and a replay of the presentation will be available for one year following the live event.
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, integrated, Fortune 275 energy 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 40 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/.
View original content to download multimedia:http://www.prnewswire.com/news-releases/vistra-to-report-second-quarter-2020-results-on-aug-5-announces-virtual-investor-event-301091981.html
SOURCE Vistra
IRVING, Texas, July 8, 2020 /PRNewswire/ -- As COVID-19 concerns keep Texans home during the hottest months of the year, TXU Energy is committed to supporting the health and well-being of our customers. These tips and tools can help customers save money while they're spending more time inside:
"For many of our customers, the workday, entertainment for the kids, and everything in between is happening under one roof," said Scott Hudson, president of TXU Energy. "We understand that this increased electricity use, coupled with the heat of the Texas summer, is putting additional strain on families who continue to feel the financial impact of the pandemic. We want to assure our customers that we're here to help – our team is focused on providing resources, relief, and bill-payment assistance options to any customer who needs help."
Three types of assistance are available:
TXU Energy takes seriously our responsibility to provide an essential service to millions of Texas homes and businesses, support our customers with flexible payment options, and serve our communities through this time of enhanced need. Learn more HERE.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra (NYSE: VST). REP #10004
Media
Jenny Lyon
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
View original content:http://www.prnewswire.com/news-releases/txu-energy-supports-customers-in-need-of-electricity-bill-payment-assistance-offers-energy-saving-tips-for-summer-301090171.html
SOURCE TXU Energy
IRVING, Texas, July 6, 2020 /PRNewswire/ -- Vistra (NYSE: VST) today announced the appointment of Tom Farrah as senior vice president and chief information officer, effective July 6, 2020. Farrah, a 30-year information technology veteran, is replacing outgoing CIO, Ravi Malik, who has announced his resignation to pursue other opportunities. Farrah will report to Curt Morgan, Vistra's chief executive officer, and will be responsible for ensuring the reliability, security, and continued development of the company's technology platforms as well as delivering new solutions to support the business.
"Tom brings with him a wealth of technical knowledge, business acumen, and leadership," said Morgan. "Vistra is pleased to welcome him to our team during what is proving to be a critical time for technology. Not only is our company growing and our industry changing rapidly, but Vistra, like so many businesses across the world, has adjusted the way we operate in order to allow our people and customers to function from anywhere with the apps and devices of their choice. I'm confident Tom and our technology services team will provide capabilities that will further the growth and success of our company."
"It's an exciting time to join the Vistra team. I'm looking forward to getting involved in a new industry with a fascinating company that's seen tremendous and impressive growth in a short time," said Farrah. "This pandemic has shown that technology is a critical enabler to keeping business running and allowing customers to choose and manage their electricity needs. I've spent my entire career in technology and it's clear that when a company can marry robust technical knowledge and innovation with strong business operations, you drive greater results."
Before joining Vistra, Farrah most recently served as senior vice president of business transformation of Keurig Dr Pepper. During his 15 years with KDP, he held various positions within information technology, including chief information officer from 2011 to 2018, vice president of global infrastructure and IT operations, and later as vice president of IT, supply chain, architecture, and information management. Prior to KDP, Farrah held senior level IT positions at General Motors, Pfizer, and Electronic Data Systems.
Farrah holds a bachelor's degree in computer science and mathematics from the University of Windsor, Canada.
Media
Meranda Cohn
Media.Relations@vistracorp.com
214-875-8004
About Vistra
Vistra (NYSE: VST) is a premier, integrated, Fortune 275 energy 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 40 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 our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.com/sustainability/.
View original content:http://www.prnewswire.com/news-releases/vistra-names-tom-farrah-as-new-chief-information-officer-301088293.html
SOURCE Vistra Energy
IRVING, Texas, June 30, 2020 /PRNewswire/ -- TXU Energy, the leader in innovative, customer-centric retail energy plans, today announced the launch of TXU Energy AutoSaverSM. The company's newest plan provides customers with a low electricity rate based on monthly NYMEX natural gas prices – which drive energy rates in Texas – while shielding them from the risk when gas prices rise. Here's how it works: When gas prices fall, customers will see automatic savings on their bill; when gas prices go up, their energy rate never goes above the disclosed price-protected cap.
"We are committed to our customers, and to creating experiences and products that work for their lives," said Sydney Seiger, chief marketing officer for TXU Energy. "We've listened to customers who say they've been burned by skyrocketing wholesale prices in the past or blindsided by an astronomically high bill. Customers who choose AutoSaver will find comfort in the plan's price-protection cap and peace of mind knowing they've made a smart decision when it comes to managing their household expenses."
AutoSaver is ideal for the discerning electricity customer who understands that natural gas prices largely set the price of power and wants to participate in the fluctuating energy market for potential savings, with the added assurance of a price-protected cap. The plan's unique billing statements include information about each month's price of natural gas and how the customer benefits from it.
"We are proud to add this plan to an entire suite of TXU Energy products that aim to improve customer experience and exceed expectations," added Seiger.
Also, with innovative tools like TXU Energy MyEnergy Dashboard, customers can monitor their personal consumption information anytime.
For more information about TXU Energy AutoSaverSM, please visit www.txu.com.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra (NYSE: VST). REP #10004
Media
Jenny Lyon
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
View original content:http://www.prnewswire.com/news-releases/txu-energys-newest-plan-provides-price-protection-with-automatic-savings-301085711.html
SOURCE TXU Energy
IRVING, Texas, June 22, 2020 /PRNewswire/ -- Vistra (NYSE: VST) today announced that it is committing $10 million over the next five years to support the advancement of minority communities.
"I think it is pretty simple: Companies have an obligation to ensure an equitable workplace and to help our communities – whether faced with a pandemic, a natural disaster, or inequality and social injustice. Vistra does not see the issues plaguing our country through a political lens; we see it through our people, our communities, and our customers," said Curt Morgan, president and CEO of Vistra. "We must acknowledge that, for some people in our society, there are fewer opportunities and resources, and we are determined to change that. It's the right thing to do."
This investment is a reaffirmation and extension of existing efforts, which focus on national, state, and local organizations that grow minority-owned small businesses, enhance economic development, and provide and improve educational opportunities for students from diverse backgrounds. Today's announcement is consistent with the key focus areas of the company's giving policy and builds upon Vistra's donations in excess of $30 million over the past several years to benefit low-income and minority communities.
"When deciding where to put our focus, we looked to those areas where we believe Vistra can have the most impact – investing in people through education and economic development. When small businesses thrive in minority neighborhoods, they not only provide access to goods and services to local residents, they can transform communities for the better. As an electricity supplier to small businesses, we want to see them flourish," Morgan continued. "We're passionate about helping young people and developing the next generation of professionals. It starts with access to quality education."
Vistra is immediately making donations totaling nearly $1.5 million to a number of proven organizations that impact the communities where the company operates. Ongoing donations will be made in the coming weeks, months, and years.
Examples of Vistra's initial efforts include:
Small Businesses & Economic Development
Education
Vistra's Commitment to Diversity and Inclusion in the Workplace
Vistra has long recognized the value of a diverse workforce. The company has always aimed to create and maintain an environment where differences are valued and respected, which enhances Vistra's ability to recruit and retain the best talent in the marketplace and to better understand and serve our customers.
"It has been an emotional few weeks for the Vistra family and we have had to reflect on where we are in our journey for social justice and equity. The reality is that we all can and must do more. We cannot delegate change to others; it starts with us. We all spend a significant part of our lives working and we want to work for a company that values us equally and provides a fair path to achieving our career aspirations. To that end, we are doubling down on our efforts to ensure our company culture is one where there's mutual respect and each individual's unique characteristics and skills are valued," said Morgan.
Internally, Vistra is holding sessions where members of the leadership team come together in small groups with employees to listen to their thoughts and experiences on race in their lives and within the workplace.
"We recognize that our people, like people across the country, are hurting and frustrated. They're also searching for ways to make a difference and show support. It's important that we create a safe space for our valued employees to talk about their experiences and the role race has played in their careers, and to share ideas of how Vistra can be better," said Carrie Kirby, chief administrative officer for Vistra. "Our leadership team is listening and learning, and we'll take what we hear to better our formal diversity and inclusion policies and programs in our workplace. We are convinced we will be a better company for all of our stakeholders as a result."
Media
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
About Vistra
Vistra (NYSE: VST) is a premier, integrated, Fortune 275 energy 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 40 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 our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.com/sustainability/
View original content:http://www.prnewswire.com/news-releases/vistra-commits-10-million-to-organizations-working-for-social-justice-and-equity-301080837.html
SOURCE Vistra Energy
IRVING, Texas, June 5, 2020 /PRNewswire/ -- Vistra (NYSE: VST) published today its 2019 Annual Sustainability Report, which adopts for the first time the Sustainable Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) frameworks. In addition, the report highlights Vistra's environmental, social, and governance (ESG) initiatives and accomplishments for the 2019 reporting period, including:
Emissions Reductions
Safety
Renewable and No-Carbon Energy
Caring for Our Communities
"The importance of electricity has never been more pronounced than it is today. Vistra is committed to providing affordable and reliable power to our nearly 5 million retail customers while also minimizing our impact on the environment, supporting our customers and the communities where we operate, and keeping our employees safe and healthy," said Curt Morgan, Vistra's president and CEO. "Since becoming a public company in 2016, Vistra has transformed its electricity generation portfolio from one that produced 70% of its output from coal to one that contributes less than 20% of its earnings from coal while also investing heavily in solar and battery storage facilities, with more to come. We are committed to being a leader in the climate change effort and have our sights set on reaching net-zero carbon emissions by 2050, which can be achieved through the continued rotation of our generation base, supportive public policy, and technological advancements."
In addition to being an industry leader in the effort to address climate change, Vistra strives for excellence in employee safety, supply chain and employee diversity, community impact, and the customer experience. Vistra's 2019 Annual Sustainability Report addresses these topics and more. For additional information about our 2019 ESG initiatives and to download a copy of the report, please visit the Vistra website at vistraenergy.com/sustainability.
Media
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra
Vistra (NYSE: VST) is a premier, integrated, Fortune 275 energy 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 40 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 our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.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 Energy 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 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.
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SOURCE Vistra
IRVING, Texas, May 5, 2020 /PRNewswire/ -- Vistra (NYSE: VST):
Financial Highlights
Realized in Year | Achieved by YE | |
2020 | $622 | $697 |
2021 | $726 | $756 |
COVID-19 Response
Growth Highlights
(1) | Excludes the Asset Closure segment. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further detail. |
(2) | Q1 2019 results for four MISO assets retired in late 2019 were recast from the MISO segment to the Asset Closure segment, resulting in an increase of $9 million to our Q1 2019 MISO segment results. |
(3) | Vistra has not updated its 2020 Ongoing Operations Adjusted FCFbG guidance to reflect the early receipt of $93 million of alternative minimum tax (AMT) refunds in 2019 that were forecast to be received in 2020. In accordance with the recently passed Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Vistra will accelerate its claim of approximately $64 million of AMT refunds on its 2020 tax return. We expect we will receive the $64 million refund in the second half of 2020. |
Summary of Financial Results for First Quarter Ended March 31, 2020
Three Months Ended | ||||
($ in millions) | March 31, 2020 | March 31, 20192 | ||
Net Income | $ 45 | $ 224 | ||
Ongoing Operations Net Income1 | $ 62 | $ 248 | ||
Ongoing Operations Adjusted EBITDA1 | $ 850 | $ 824 | ||
Adjusted EBITDA by Segment | ||||
Retail | $ 311 | $ 257 | ||
ERCOT | $ 217 | $ 204 | ||
PJM | $ 218 | $ 201 | ||
NY/NE | $ 60 | $ 86 | ||
MISO | $ 28 | $ 57 | ||
CAISO/Corp | $ 16 | $ 19 | ||
Asset Closure | $ (17) | $ (22) |
For the three months ended March 31, 2020, Vistra reported Net Income from Ongoing Operations1 of $62 million and Ongoing Operations Adjusted EBITDA1 of $850 million. Vistra's first quarter Adjusted EBITDA was $26 million2 higher than first quarter 2019 results, driven by the acquisitions of Ambit Energy and Crius Energy and partially offset by lower generation results driven principally by lower capacity payments in its NY/NE and MISO segments.
Vistra reported first quarter Adjusted EBITDA from the Retail segment of $311 million, $54 million higher than first quarter 2019 results, driven primarily by the additions of Ambit Energy and Crius Energy. First quarter Adjusted EBITDA from the generation segments totaled $539 million,3 $28 million2 lower than first quarter 2019 results due to lower results in the NY/NE and MISO segments, primarily driven by lower capacity revenues.
"First and foremost, our hearts go out to those who have been adversely impacted by the COVID-19 virus. While uncertainty remains, we are confident the American compassion, courage, ingenuity, and resilience will win out," said Curt Morgan, Vistra's president and chief executive officer. "Vistra started the year executing and delivering strong financial results and we are on track to continue to do so, even in the face of headwinds from the COVID-19 pandemic. Our business model – one that prioritizes a strong balance sheet and low-cost, integrated operations – is proving to be more important than ever during this time of economic uncertainty and volatility. We took actions early in the year to prepare our operations for this environment, ensuring the health and safety of our employees while fulfilling our obligation to provide an essential service. Reliable power has perhaps never been more important than it is today, allowing people to shelter in place and providing the essential electricity to keep lifesaving medical equipment running. Vistra takes very seriously its obligation to keep our employees healthy and safe and to provide the American people with affordable and reliable power. I am extremely proud of our team's commitment to execution during these trying times."
(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. Total by segment may not tie due to rounding. |
(2) | Q1 2019 results for four MISO assets retired in late 2019 were recast from the MISO segment to the Asset Closure segment, resulting in an increase of $9 million to our Q1 2019 MISO segment results. |
(3) | Generation includes Corporate and Other. |
Guidance
($ in millions) | 2020 | |
Ongoing Ops. Adj. EBITDA1 | $ | 3,285 – 3,585 |
Ongoing Ops. Adj. FCFbG1,2 | $ | 2,160 – 2,460 |
(1) | Excludes the Asset Closure segment. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
(2) | Vistra has not updated its 2020 Ongoing Operations Adjusted FCFbG guidance to reflect the early receipt of $93 million of AMT refunds in 2019 that were forecast to be received in 2020. In accordance with the CARES Act, Vistra will accelerate its claim of approximately $64 million of AMT refunds on its 2020 tax return. We expect we will receive the $64 million refund in the second half of 2020. |
Vistra is reaffirming its 2020 Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of $3,285 to $3,585 million and $2,160 to $2,460 million, respectively.
Capital Allocation
Vistra took steps within the quarter to reduce its long-term debt obligations. In Jan. 2020, Vistra redeemed the remaining $81 million of 8.000% senior unsecured notes due 2025, and in March 2020, Vistra Operations repurchased $100 million principal amount of Term Loan B-3 under the credit facility. On May 1, 2020, Vistra notified the holders of its 5.875% senior unsecured notes due 2023 that it will redeem all $500 million aggregate principal amount of such notes on June 1, 2020. Vistra continues to prioritize debt reduction in 2020 and, as a result, has not repurchased additional shares under its authorized share repurchase program since Nov. 2019. Net shares outstanding are approximately 488.6 million as of April 30, 2020. Vistra is on track to communicate its long-term capital allocation plan in late September of this year.
Liquidity
Vistra believes it has sufficient liquidity to continue business operations during the COVID-19 pandemic. In addition, Vistra's maturities of long-term debt are relatively modest until 2023. As of March 31, 2020, Vistra had total available liquidity of approximately $1,834 million, including cash and cash equivalents of $717 million and $1,117 million of availability under its revolving credit facility. The company had $1,415 million of letters of credit outstanding as of March 31, 2020. In April 2020, Vistra repaid $550 million aggregate principal amount of revolving credit loans outstanding utilizing cash on hand.
Earnings Webcast
Vistra will host a webcast today, May 5, 2020, 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 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, preferred stock dividends, 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) 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 of directors have found it informative to view the Asset Closure segment as separate and distinct from Vistra'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
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra
Vistra (NYSE: VST) is a premier, integrated, Fortune 350 energy 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 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 40 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 300-MW/1,200-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 our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.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 Energy 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 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 ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Millions of Dollars, Except Per Share Amounts) | |||||||
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Operating revenues | $ | 2,858 | $ | 2,923 | |||
Fuel, purchased power costs and delivery fees | (1,333) | (1,461) | |||||
Operating costs | (379) | (385) | |||||
Depreciation and amortization | (419) | (405) | |||||
Selling, general and administrative expenses | (252) | (182) | |||||
Impairment of long-lived assets | (84) | — | |||||
Operating income | 391 | 490 | |||||
Other income | 7 | 25 | |||||
Other deductions | (31) | (2) | |||||
Interest expense and related charges | (300) | (222) | |||||
Impacts of Tax Receivable Agreement | (8) | 3 | |||||
Equity in earnings of unconsolidated investment | 3 | 7 | |||||
Income before income taxes | 62 | 301 | |||||
Income tax expense | (17) | (77) | |||||
Net income | $ | 45 | $ | 224 | |||
Net loss attributable to noncontrolling interest | 11 | 1 | |||||
Net income attributable to Vistra Energy | $ | 56 | $ | 225 |
VISTRA ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Millions of Dollars) | |||||||
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cash flows — operating activities: | |||||||
Net income | $ | 45 | $ | 224 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 489 | 461 | |||||
Deferred income tax expense, net | 13 | 70 | |||||
Impairment of long-lived assets | 84 | — | |||||
Loss on disposal of investment in NELP | 28 | — | |||||
Unrealized net gain from mark-to-market valuations of commodities | (125) | (186) | |||||
Unrealized net loss from mark-to-market valuations of interest rate swaps | 174 | 80 | |||||
Asset retirement obligation accretion expense | 12 | 14 | |||||
Impacts of Tax Receivable Agreement | 8 | (3) | |||||
Stock-based compensation | 14 | 12 | |||||
Other, net | 3 | (32) | |||||
Changes in operating assets and liabilities: | |||||||
Margin deposits, net | 99 | 34 | |||||
Accrued interest | (77) | 15 | |||||
Accrued taxes | (110) | (75) | |||||
Accrued employee incentive | (90) | (90) | |||||
Other operating assets and liabilities | (15) | (136) | |||||
Cash provided by operating activities | 552 | 388 | |||||
Cash flows — investing activities: | |||||||
Capital expenditures, including nuclear fuel purchases and LTSA prepayments | (261) | (153) | |||||
Proceeds from sales of nuclear decommissioning trust fund securities | 75 | 78 | |||||
Investments in nuclear decommissioning trust fund securities | (80) | (83) | |||||
Proceeds from sale of environmental allowances | 74 | — | |||||
Purchases of environmental allowances | (106) | (1) | |||||
Other, net | 14 | 10 | |||||
Cash used in investing activities | (284) | (149) | |||||
Cash flows — financing activities: | |||||||
Issuances of long-term debt | — | 1,300 | |||||
Repayments/repurchases of debt | (223) | (1,282) | |||||
Net borrowings under accounts receivable securitization program | — | 11 | |||||
Borrowings under Revolving Credit Facility | 425 | — | |||||
Repayments under Revolving Credit Facility | (75) | — | |||||
Stock repurchase | — | (248) | |||||
Dividends paid to stockholders | (66) | (61) | |||||
Debt tender offer and other financing fees | (5) | (64) | |||||
Other, net | (4) | — | |||||
Cash provided by (used in) financing activities | 52 | (344) | |||||
Net change in cash, cash equivalents and restricted cash | 320 | (105) | |||||
Cash, cash equivalents and restricted cash — beginning balance | 475 | 693 | |||||
Cash, cash equivalents and restricted cash — ending balance | $ | 795 | $ | 588 |
VISTRA ENERGY CORP. | |||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2020 | |||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations / | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||
Net income (loss) | $ | 95 | $ | 258 | $ | 118 | $ | 15 | $ | (79) | $ | (345) | $ | 62 | $ | (17) | $ | 45 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 17 | 17 | — | 17 | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 4 | (2) | 2 | — | 1 | 295 | 300 | — | 300 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 80 | 142 | 138 | 48 | 11 | 19 | 438 | — | 438 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 179 | 398 | 258 | 63 | (67) | (14) | 817 | (17) | 800 | ||||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | 121 | (181) | (66) | (21) | 10 | 12 | (125) | — | (125) | ||||||||||||||||||||||||||
Generation plant retirement expenses | — | — | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||
Fresh start/purchase accounting impacts | 4 | (3) | 2 | — | 1 | — | 4 | — | 4 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 8 | 8 | — | 8 | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 13 | 13 | — | 13 | ||||||||||||||||||||||||||
Transition and merger expenses | 5 | 2 | 7 | — | — | 5 | 19 | — | 19 | ||||||||||||||||||||||||||
Impairment of long-lived assets | — | — | — | — | 84 | — | 84 | — | 84 | ||||||||||||||||||||||||||
Loss on disposal of investment in NELP | — | — | 13 | 15 | — | — | 28 | — | 28 | ||||||||||||||||||||||||||
Other, net | 2 | 1 | 4 | 3 | — | (8) | 2 | 1 | 3 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 311 | $ | 217 | $ | 218 | $ | 60 | $ | 28 | $ | 16 | $ | 850 | $ | (17) | $ | 833 |
___________ | |
(a) | Includes $174 million of unrealized mark-to-market net losses on interest rate swaps. |
(b) | Includes nuclear fuel amortization of $19 million in the ERCOT segment. |
VISTRA ENERGY CORP. | |||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 20191 | |||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations / | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||
Net income (loss) | $ | 15 | $ | 301 | $ | 162 | $ | 21 | $ | 21 | $ | (272) | $ | 248 | $ | (24) | $ | 224 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 77 | 77 | — | 77 | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 3 | (3) | 3 | 1 | 2 | 216 | 222 | — | 222 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 59 | 149 | 130 | 64 | 3 | 17 | 422 | — | 422 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 77 | 447 | 295 | 86 | 26 | 38 | 969 | (24) | 945 | ||||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | 164 | (251) | (91) | (6) | 14 | (16) | (186) | — | (186) | ||||||||||||||||||||||||||
Fresh start / purchase accounting impacts | 14 | 2 | (6) | 2 | 4 | (1) | 15 | 1 | 16 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | (3) | (3) | — | (3) | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 13 | 13 | — | 13 | ||||||||||||||||||||||||||
Transition and merger expenses | — | 1 | 1 | 1 | 8 | 7 | 18 | — | 18 | ||||||||||||||||||||||||||
Other, net | 2 | 5 | 2 | 3 | 5 | (19) | (2) | 1 | (1) | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 257 | $ | 204 | $ | 201 | $ | 86 | $ | 57 | $ | 19 | $ | 824 | $ | (22) | $ | 802 |
___________ |
1 Q1 2019 results for four MISO assets retired in late 2019 were recast from the MISO segment to the Asset Closure segment, resulting in an increase of $9 million to our Q1 2019 MISO segment results. |
(a) Includes $80 million of unrealized mark-to-market net losses on interest rate swaps. |
(b) Includes nuclear fuel amortization of $17 million in the ERCOT segment. |
VISTRA ENERGY CORP. | |||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - 2020 GUIDANCE1 | |||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing | Asset | Vistra Energy | |||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||
Net Income (loss) | $ | 849 | $ | 1,081 | $ | (95) | $ | (75) | $ | 754 | $ | 1,006 | |||||||||||
Income tax expense | 252 | 320 | — | — | 252 | 320 | |||||||||||||||||
Interest expense and related charges (a) | 463 | 463 | — | — | 463 | 463 | |||||||||||||||||
Depreciation and amortization (b) | 1,600 | 1,600 | — | — | 1,600 | 1,600 | |||||||||||||||||
EBITDA before Adjustments | $ | 3,164 | $ | 3,464 | $ | (95) | $ | (75) | $ | 3,069 | $ | 3,389 | |||||||||||
Unrealized net (gain)/loss resulting from hedging transactions | (29) | (29) | — | — | (29) | (29) | |||||||||||||||||
Impacts of Tax Receivable Agreement | 69 | 69 | — | — | 69 | 69 | |||||||||||||||||
Non-cash compensation expenses | 44 | 44 | — | — | 44 | 44 | |||||||||||||||||
Transition and merger expenses | 35 | 35 | — | — | 35 | 35 | |||||||||||||||||
Other, net | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Adjusted EBITDA guidance | $ | 3,285 | $ | 3,585 | $ | (95) | $ | (75) | $ | 3,190 | $ | 3,510 | |||||||||||
Interest paid, net | (543) | (543) | — | — | (543) | (543) | |||||||||||||||||
Tax (paid)/received (c) | 153 | 153 | — | — | 153 | 153 | |||||||||||||||||
Tax receivable agreement payments | (3) | (3) | — | — | (3) | (3) | |||||||||||||||||
Working capital and margin deposits | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Reclamation and remediation | (60) | (60) | (126) | (126) | (186) | (186) | |||||||||||||||||
Other changes in other operating assets and liabilities | (80) | (80) | 31 | 31 | (49) | (49) | |||||||||||||||||
Cash provided by operating activities | $ | 2,754 | $ | 3,054 | $ | (190) | $ | (170) | $ | 2,564 | $ | 2,884 | |||||||||||
Capital expenditures including nuclear fuel purchases and LTSA Prepayments | (613) | (613) | — | — | (613) | (613) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | (315) | (315) | — | — | (315) | (315) | |||||||||||||||||
(Purchase)/sale of environmental credits and allowances | (39) | (39) | — | — | (39) | (39) | |||||||||||||||||
Other net investing activities | (20) | (20) | — | — | (20) | (20) | |||||||||||||||||
Free cash flow | $ | 1,767 | $ | 2,067 | $ | (190) | $ | (170) | $ | 1,577 | $ | 1,897 | |||||||||||
Working capital and margin deposits | (2) | (2) | — | — | (2) | (2) | |||||||||||||||||
Moss Landing development and other growth expenditures | 315 | 315 | — | — | 315 | 315 | |||||||||||||||||
Purchase/(sale) of environmental credits and allowances | 39 | 39 | — | — | 39 | 39 | |||||||||||||||||
Transition and merger expenses | 38 | 38 | — | — | 38 | 38 | |||||||||||||||||
Transition capital expenditures | 3 | 3 | — | — | 3 | 3 | |||||||||||||||||
Adjusted Free Cash Flow before Growth guidance | $ | 2,160 | $ | 2,460 | $ | (190) | $ | (170) | $ | 1,970 | $ | 2,290 |
____________ |
1 Regulation G Table for 2020 Guidance prepared as of November 5, 2019. |
(a) Includes unrealized gain on interest rate swaps of $21 million. |
(b) Includes nuclear fuel amortization of $74 million. |
(c) Includes state tax payments. |
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SOURCE Vistra
IRVING, Texas, April 30, 2020 /PRNewswire/ -- Vistra (NYSE: VST) announced today that its Board of Directors has declared a quarterly dividend of $0.135 per share of Vistra's common stock, or $0.54 per share on an annualized basis. Consistent with the dividend paid in March 2020, this dividend represents an 8% increase from the company's quarterly common stock dividend paid in 2019. The dividend is payable on June 30, 2020, to shareholders of record as of June 16, 2020. The ex-dividend date will be June 15, 2020.
Media
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra
Vistra (NYSE: VST) is a premier, integrated, Fortune 350 energy 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 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 40 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 300-MW/1,200-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.vistraenergy.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 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 its contemplated strategic and performance initiatives and to successfully integrate acquired businesses; (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 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 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.
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SOURCE Vistra
CHICAGO, April 30, 2020 /PRNewswire/ -- Dynegy today announced it is committing $60,000 to support the Chicago area, as individuals and households begin the process of economic recovery from COVID-19.
"Our company is inspired by the Chicago food banks working to meet unprecedented need, small businesses doing what it takes to stay afloat, and childcare workers providing an essential service to Chicagoland families," said Brad Watson, Dynegy's director of community affairs. "As the painful effects of this pandemic continue, Dynegy and its employees are honored to assist the Chicago area in an immediate and impactful way."
The $60,000 donation will directly support households and individuals to meet their most pressing needs, including funding for food banks, community assistance funds, and childcare.
"Through the Chicago Community COVID-19 Response Fund, we are committed to supporting the most vulnerable in our region by providing access to essential services such as emergency food and supplies, health services, and financial assistance through direct cash transfers, as well as mortgage, rent and utility assistance," said Dr. Helene Gayle President and CEO of The Chicago Community Trust. "As needs continue to grow, we know it's going to take all of these resources and much more to address the emergent needs as we continue to deploy emergency assistance rapidly."
Dynegy's donation to organizations across Chicago is part of a $2 million commitment to non-profits and social service agencies nationwide from Dynegy's parent company, Vistra. 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 is also the largest competitive power generator in the U.S.
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra (NYSE: VST).
Media
Jenny Lyon
214-875-8004
Media.Relations@vistraenergy.com
View original content:http://www.prnewswire.com/news-releases/dynegy-donates-60-000-to-fund-critical-covid-19-relief-in-chicago-area-301050470.html
SOURCE Dynegy
COLLINSVILLE, Ill., April 29, 2020 /PRNewswire/ -- Homefield Energy today announced it is committing $60,000 to support Illinois communities as they begin the process of economic recovery from COVID-19.
"As with so many states, COVID-19's impact on Illinois has been profound, and Homefield Energy and its employees are honored to do our part to help meet critical needs in the communities we serve," said Brad Watson, Homefield Energy's director of community affairs. "Our company is inspired by the organizations working on the frontlines of the coronavirus pandemic. We stand with you – now, more than ever before."
The $60,000 donation will directly support communities and individuals to meet their most pressing needs, including funding for food banks, community assistance funds, domestic violence prevention, and more.
"We appreciate the support of Homefield Energy as The Community Foundation of Central Illinois partners with nonprofits, working to address essential needs in the community," said Mark Roberts, president and CEO of the Community Foundation of Central Illinois. "This donation enhances our ability to provide emergency food and basic supplies, interim housing and shelter, primary health care services, utility assistance, and support for children and vulnerable populations."
Homefield Energy's donation to communities in Illinois is part of a $2 million commitment to non-profits and social service agencies across the country from Homefield Energy's parent company, Vistra. Serving nearly 5 million residential, commercial, and industrial retail customers with electricity and natural gas, Vistra is the largest competitive residential electricity provider and the largest competitive power generator in the U.S.
About Homefield Energy
Homefield Energy is proud to power Illinois. We are committed to being a leader in the electricity sector and a good neighbor to the communities in which we operate. Homefield Energy is a subsidiary of Vistra (NYSE: VST). Vistra 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. Vistra's retail brands serve approximately five million residential, commercial, and industrial customers across five top retail states.
Media
Jenny Lyon
214-875-8004
Media.Relations@vistraenergy.com
View original content:http://www.prnewswire.com/news-releases/homefield-energy-donates-60-000-for-covid-19-relief-in-illinois-301049458.html
SOURCE Homefield Energy
KING OF PRUSSIA, Pa., April 21, 2020 /PRNewswire/ -- Dynegy today announced it is committing $160,000 to support Pennsylvania communities as they begin the process of economic recovery from COVID-19.
"As the painful effects of this pandemic continue, Dynegy and its employees are honored to assist in this immediate and impactful way to help meet critical needs in the communities we serve," said Brad Watson, Dynegy's director of community affairs. "Our company is inspired by the first responders, food bank workers, the community foundations assisting small businesses, and the health care workers fighting on behalf of us all. We stand with you – now, more than ever before."
The $160,000 donation will directly support communities and individuals to meet their most pressing needs, including funding for food banks, community assistance funds, and more.
"We are grateful to Dynegy for their support of Philabundance, particularly during this time of crisis in our community," said Kim Sears, director of strategic partnerships for Philabundance. "Their generous contribution helps us provide hunger relief for the people of the Delaware Valley."
Dynegy's donation to communities in Pennsylvania is part of a $2 million commitment to non-profits and social service agencies across the country from Dynegy's parent company, Vistra. 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 is also the largest competitive power generator in the U.S.
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra Energy (NYSE: VST).
Media
Jenny Lyon
214-875-8004
Media.Relations@vistraenergy.com
View original content:http://www.prnewswire.com/news-releases/dynegy-donates-160-000-towards-covid-19-relief-in-pennsylvania-301044087.html
SOURCE Dynegy
CINCINNATI, April 17, 2020 /PRNewswire/ -- Dynegy today announced it is committing $150,000 to support Ohio communities as they begin the process of economic recovery from COVID-19.
"As the painful effects of this pandemic continue, Dynegy and its employees are honored to assist in this immediate and impactful way to help meet critical needs in the communities we serve," said Brad Watson, Dynegy's director of community affairs. "Our company is inspired by the first responders, food bank workers, the community foundations assisting small businesses, and the health care workers fighting on behalf of us all. We stand with you – now, more than ever before."
The $150,000 donation will directly support communities and individuals to meet their most pressing needs, including funding for food banks, community assistance funds, hospital employees, and more.
"We can't thank the Dynegy team enough. Your generous donation will help us feed even more families who need our help now more than ever," said Matt Habash, President & CEO of Mid-Ohio Collective. "In fact, the households we're now serving at our Kroger Community Pantry have increased by nearly 170 percent compared to this time last year. Your contribution will help us continue to provide healthy and nutritious food to our neighbors across our network."
Dynegy's donation to communities in Ohio is part of a $2 million commitment to non-profits and social service agencies across the country from Dynegy's parent company, Vistra. Serving nearly 5 million residential, commercial, and industrial retail customers with electricity and natural gas, Vistra is the largest competitive residential electricity provider and the largest competitive power generator in the U.S.
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra Energy (NYSE: VST).
Media
Jenny Lyon
214-875-8004
Media.Relations@vistraenergy.com
View original content:http://www.prnewswire.com/news-releases/dynegy-donates-150-000-to-help-ohio-communities-impacted-by-covid-19--301042953.html
SOURCE Dynegy
IRVING, Texas, April 15, 2020 /PRNewswire/ -- Vistra (NYSE: VST) today announced that it is increasing the size of its battery energy storage project located at the site of its Oakland Power Plant. The battery will now have a capacity of 36.25 megawatts/145 megawatt-hours instead of the previously announced capacity of 20 MW/80 MWh. Vistra anticipates the battery storage project will enter commercial operations by January 2022.
The project has received necessary approvals from East Bay Community Energy (EBCE), a Community Choice Energy provider, and from Pacific Gas and Electric (PG&E). EBCE approved an amended contract to receive the larger resource adequacy capacity from the project, while PG&E approved a new Local Area Reliability Service Agreement to ensure grid reliability as part of the Oakland Clean Energy Initiative. PG&E is awaiting approval from the California Public Utilities Commission (CPUC).
"We are excited to build on our original partnership with East Bay Community Energy and PG&E," said Curt Morgan, president and CEO of Vistra. "We believe battery energy storage will play an increasingly key role in the reliability of the electric system, and this project represents a shining example of that view. Vistra is proud to be able to provide clean energy to the residents of Oakland while, at the same time, helping the city meet its sustainability goals."
East Bay Community Energy CEO Nick Chaset said, "Adding an additional 16.25 MW of battery storage capacity in downtown Oakland is a win for EBCE, our customers, reliability of the electric grid, and local air quality. We're pleased to participate in clean energy developments that help us meet our resource adequacy obligations while creating local benefits for the communities we serve."
The battery system will be a partial replacement for the aging 165-MW jet fuel-fired plant, which is currently on a Reliability Must-Run contract with the California Independent System Operator (CAISO). Vistra plans to eventually retire the existing units at Oakland Power Plant and develop additional energy storage projects on the site in the future.
Vistra is a market leader in utility-scale battery development: its 10-MW/42-MWh Upton 2 Battery Storage Facility came online in December 2018 and is the largest in Texas, while its 300-MW/1,200-MWh Moss Landing battery project is currently under construction in California and slated to be complete later this year. When the Moss Landing battery storage system comes online, it will be the largest battery of its kind in the world.
Media
Meranda Cohn
Media.Relations@vistraenergy.com
214-875-8004
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra
Vistra (NYSE: VST) is a premier, integrated, Fortune 350 energy 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 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 40 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 300-MW/1,200-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.vistraenergy.com/sustainability/.
About East Bay Community Energy (EBCE)
EBCE is a not-for-profit public agency that operates a Community Choice Energy program for Alameda County and eleven incorporated cities, serving more than 550,000 residential and commercial customers throughout the county. EBCE initiated service in June 2018 and will expand to the cities of Pleasanton, Newark, and Tracy in 2021. As one of 19 community choice aggregation (CCA) programs operating in California, EBCE is part of the movement to expedite the climate action goals of their communities and those of California. EBCE is committed to providing clean power at competitive rates while reinvesting in our local communities. For more information about East Bay Community Energy, visit https://ebce.org/.
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, (iv) with respect to the Crius acquisition, the ability for Vistra to successfully integrate the Crius business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
View original content:http://www.prnewswire.com/news-releases/vistra-announces-expansion-of-previously-announced-oakland-battery-energy-storage-facility-301040822.html
SOURCE Vistra Energy
IRVING, Texas, April 13, 2020 /PRNewswire/ -- Vistra (NYSE: VST) plans to report its first quarter 2020 financial and operating results on Tuesday, May 5, 2020. Management will present the results during a webcast beginning at 8 a.m. ET (7 a.m. CT).
The live, listen-only webcast can be accessed via the investor relations section of Vistra's website at www.vistraenergy.com under "Investor Relations" and then "Events & Presentations." For those unable to participate in the live event, a replay will be available on Vistra's website for one year following the webcast.
Media
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra
Vistra (NYSE: VST) is a premier, integrated, Fortune 350 energy 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 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 40 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, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. Vistra is guided by four core principles: we do business the right way, we work as a team, we compete to win, and we care about our stakeholders including our customers, our communities where we work and live, our employees, and our investors. Learn more about our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.com/sustainability/
View original content to download multimedia:http://www.prnewswire.com/news-releases/vistra-to-report-first-quarter-2020-results-on-may-5-2020-301038816.html
SOURCE Vistra Energy
IRVING, Texas, March 26, 2020 /PRNewswire/ -- TXU Energy today announced it is committing $450,000 to support Texans facing unprecedented challenges from the coronavirus pandemic.
"During this time of deep uncertainty, TXU Energy is not only focused on keeping the lights on for millions of Texans, we are also linking arms with non-profits statewide to address critical needs in our communities," said Scott Hudson, president of TXU Energy. "This company has longstanding partnerships with social service agencies across Texas, and we are proud to stand with them as they face this invisible enemy head-on."
The $450,000 donation will directly assist communities and individuals to meet their most pressing needs, including support for food banks and food pantries, bill-payment assistance, critical needs, and more.
"As a longtime partner of the United Way, TXU Energy has always shown a commitment of caring in the communities it serves," said Jennifer Sampson, president and CEO of United Way of Metropolitan Dallas. "This gift – and TXU Energy's strong leadership – will enable us to address immediate and long-term needs resulting from COVID-19 and provide critical support to our most vulnerable populations. We are grateful for this generous commitment – and for your confidence. We know this is an uncertain time, but we'll get through it together. We always have."
In addition to the donations, TXU Energy previously announced that it is providing additional bill-payment assistance to customers in need through its TXU Energy Aid program, one of the largest of its kind in the country. These funds are provided by donations from employees, customers, and the company, and are distributed by existing TXU Energy Aid partner agencies. For over 35 years, this program has helped Texas families going through hard times keep their homes powered and safe. For information on which social service agency provides assistance in their area, customers can go to 211texas.org and type "bill payment" in the search box.
Also, as previously announced, TXU Energy is assisting customers who may incur economic hardship related to the coronavirus by:
If a customer is unable to pay their bill, we're here to help. To take advantage of this assistance, TXU Energy customers should call 1-800-242-9113.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
Jenny Lyon
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
View original content:http://www.prnewswire.com/news-releases/txu-energy-donates-450-000-to-help-texas-communities-impacted-by-covid-19--301030167.html
SOURCE TXU Energy
IRVING, Texas, March 26, 2020 /PRNewswire/ -- Vistra Energy (NYSE: VST) announced today that it is donating $2 million to non-profits and social service agencies, providing direct relief for people with critical needs resulting from the COVID-19 pandemic in the communities it serves. The company recognizes the financial hardship inflicted on millions of Americans in the span of mere weeks. Aside from the stark health impacts, the COVID-19 outbreak has led to a reduction in income for some and job loss for others, making the most essential purchases, like food and electricity, difficult to afford.
"All of us at Vistra are heartbroken to hear how lives have been upended by this pandemic disaster," said Curt Morgan, president and chief executive officer of Vistra. "Many of our neighbors were already dealing with difficult financial circumstances, now made much worse by COVID-19. We want to make sure as many people as possible have access to the things they need most."
Vistra's donation recipients for COVID-19 relief efforts in communities across the country include:
"We've always been committed to helping those in need. Doing business the right way is woven into the fabric of who we are as a company," Morgan continued. "We genuinely care about our customers and the communities in which we live and work, and we're determined to deliver meaningful assistance to those who need it most."
Media
Meranda Cohn
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, Fortune 350 energy 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 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders. Learn more about Vistra's environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.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 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, (iv) with respect to the Crius acquisition, the ability for Vistra to successfully integrate the Crius business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
View original content:http://www.prnewswire.com/news-releases/vistra-energy-announces-2-million-donation-for-covid-19-relief-efforts-301030166.html
SOURCE Vistra Energy
IRVING, Texas, Feb. 28, 2020 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):
Financial Highlights
Realized in Year | Achieved by YE | |
2019 | $490 | $565 |
2020 | $590 | $665 |
2021 | $685 | $715 |
Capital Allocation Highlights
Growth and Sustainability Highlights
(1) | Excludes the Asset Closure segment. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
Summary of Financial Results for Full Year 2019 and the Fourth Quarter Ended Dec. 31, 2019 | |||||
Three Months Ended | Year Ended | ||||
($ in millions) | Dec. 31, 2019 | Dec. 31, 20182 | Dec. 31, 2019 | ||
Net Income | $ 233 | $ (186) | $ 926 | ||
Ongoing Operations Net Income1 | $ 240 | $ (166) | $ 1,035 | ||
Ongoing Operations Adjusted EBITDA1 | $ 775 | $ 720 | $ 3,393 | ||
Operating Cash Flow | $ 2,736 | ||||
Ongoing Operations Adjusted FCFbG1 | $ 2,437 | ||||
Adjusted EBITDA by Segment | |||||
Retail | $ 343 | $ 250 | $ 807 | ||
ERCOT | $ 187 | $ 139 | $ 1,370 | ||
PJM | $ 171 | $ 195 | $ 760 | ||
NY/NE | $ 49 | $ 108 | $ 307 | ||
MISO | $ 12 | $ 10 | $ 103 | ||
CAISO/Corp | $ 13 | $ 18 | $ 46 | ||
Asset Closure | $ (4) | $ (20) | $ (68) |
For the three months ended Dec. 31, 2019, Vistra reported Net Income from Ongoing Operations1 of $240 million and Adjusted EBITDA from Ongoing Operations1 of $775 million. Vistra's fourth quarter Adjusted EBITDA was $55 million higher than fourth quarter 2018 results, driven by retail acquisitions partially offset by lower capacity revenue in generation.
For the full year of 2019, Vistra reported Net Income from Ongoing Operations1 of $1,035 million and Adjusted EBITDA from Ongoing Operations1 of $3,393 million. Year-to-date results were above the midpoint of Vistra's guidance driven by higher gross margin in the ERCOT segment.
Vistra reported fourth quarter retail Adjusted EBITDA of $343 million, $93 million higher than fourth quarter 2018 results, driven by the Crius and Ambit acquisitions. Fourth quarter Adjusted EBITDA from the generation segments totaled $432 million3, $38 million lower than fourth quarter 2018 results, due to lower capacity payments in PJM, NY, and ISO-NE partially offset by higher gross margin in ERCOT.
Curt Morgan, Vistra's president and chief executive officer, said, "Vistra started the year with a focus on execution and I am happy to announce today that once again, for the fourth year in row—every year since Vistra has been a public company—we delivered financial results that exceeded our guidance midpoint. Over that same time period we have more than doubled our EBITDA and returned nearly $5 billion of capital. We believe Vistra's business model, which prioritizes a strong balance sheet, a disciplined approach to capital allocation, and is comprised of industry-leading integrated retail and generation businesses, is well-positioned to continue to deliver strong and consistent results in the years ahead. In 2020, Vistra is focused on further strengthening our balance sheet and providing long-term capital allocation clarity later in the year."
(1) | Excludes results from the Asset Closure segment. Adjusted EBITDA is a non-GAAP financial measure. See the "Non-GAAP Reconciliation" tables for further details. Total by segment may not tie due to rounding. |
(2) | 2018 results for four MISO assets retired in late 2019 were recast from the MISO segment to the Asset Closure segment. |
(3) | Generation includes Corporate. |
Guidance
($ in millions) | 2020 | |
Ongoing Ops. Adj. EBITDA1 | $ | 3,285 – 3,585 |
Ongoing Ops. Adj. FCFbG1 | $ | 2,160 – 2,460 |
(1) | Excludes the Asset Closure segment. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
Vistra is reaffirming its 2020 Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of $3,285 to $3,585 million and $2,160 to $2,460 million, respectively.
Share Repurchase Program
As of Feb. 24, 2020, Vistra has completed approximately $1.418 billion in share repurchases under the $1.75 billion share repurchase program previously authorized by its board of directors. Vistra has purchased approximately 60 million shares, resulting in net shares outstanding of approximately 487.7 million as of Feb. 24, 2020. Approximately $332 million remains available for execution under the program as of the same date.
Financing Update
In November 2019, Vistra Operations used the net proceeds from the issuance of $1.1 billion aggregate principal amount of new senior secured notes - consisting of $300 million of 3.550% senior notes due 2024 and $800 million of 3.700% senior notes due 2027 - plus approximately $799 million of incremental borrowings under the Term Loan B-3 Facility due 2025, to repay the entire amount outstanding of $1.897 billion of term loans under the Term Loan B-1 Facility due 2023.
In addition, in November 2019, Vistra Operations amended its credit facility to reduce the interest rate applicable to its upsized $2.7 billion Term Loan B-3 Facility to a rate equal to, at the option of the Borrower, LIBOR plus 1.75% or a base rate plus 0.75%.
As a result of these transactions, Vistra continued to reduce its annual interest expense and extend the average maturity of its outstanding indebtedness.
Liquidity
As of Dec. 31, 2019, Vistra had total available liquidity of approximately $1,726 million, including cash and cash equivalents of $300 million and $1,426 million of availability under its revolving credit facility. The company had $949 million of letters of credit outstanding as of Dec. 31, 2019.
Earnings Webcast
Vistra will host a webcast today, Feb. 28, 2020, 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 impacts, 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
Meranda Cohn
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, Fortune 350 energy 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 retail 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders. Learn more about our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.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 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," "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 and to successfully integrate acquired businesses; (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 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 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 | |||||||||||
(Unaudited) (Millions of Dollars, Except Per Share Amounts) | |||||||||||
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Operating revenues | $ | 11,809 | $ | 9,144 | $ | 5,430 | |||||
Fuel, purchased power costs and delivery fees | (5,742) | (5,036) | (2,935) | ||||||||
Operating costs | (1,530) | (1,297) | (973) | ||||||||
Depreciation and amortization | (1,640) | (1,394) | (699) | ||||||||
Selling, general and administrative expenses | (904) | (926) | (600) | ||||||||
Impairment of long-lived assets | — | — | (25) | ||||||||
Operating income | 1,993 | 491 | 198 | ||||||||
Other income | 56 | 47 | 37 | ||||||||
Other deductions | (15) | (5) | (5) | ||||||||
Interest expense and related charges | (797) | (572) | (193) | ||||||||
Impacts of Tax Receivable Agreement | (37) | (79) | 213 | ||||||||
Equity in earnings of unconsolidated investment | 16 | 17 | — | ||||||||
Income before income taxes | 1,216 | (101) | 250 | ||||||||
Income tax expense | (290) | 45 | (504) | ||||||||
Net income | $ | 926 | $ | (56) | $ | (254) | |||||
Net loss attributable to noncontrolling interest | 2 | 2 | — | ||||||||
Net income attributable to Vistra Energy | $ | 928 | $ | (54) | $ | (254) |
VISTRA ENERGY CORP. CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (Millions of Dollars) | |||||||||||
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cash flows — operating activities: | |||||||||||
Net income | $ | 926 | $ | (56) | $ | (254) | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation and amortization | 1,876 | 1,533 | 835 | ||||||||
Deferred income tax expense, net | 281 | (62) | 418 | ||||||||
Unrealized net (gain) loss from mark-to-market valuations of commodities | (696) | 380 | 145 | ||||||||
Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps | 220 | 5 | (29) | ||||||||
Impairment of long-lived assets | — | — | 25 | ||||||||
Impacts of Tax Receivable Agreement | 37 | 79 | (213) | ||||||||
Change in asset retirement obligation liability | (48) | (27) | 112 | ||||||||
Asset retirement obligation accretion expense | 53 | 50 | 60 | ||||||||
Bad debt expense | 82 | 55 | 39 | ||||||||
Stock-based compensation | 47 | 73 | — | ||||||||
Other, net | (12) | 37 | 30 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable - trade | (88) | (207) | 7 | ||||||||
Inventories | (44) | 61 | 22 | ||||||||
Accounts payable - trade | (221) | 90 | (30) | ||||||||
Commodity and other derivative contractual assets and liabilities | 98 | (80) | (1) | ||||||||
Margin deposits, net | 170 | (221) | 146 | ||||||||
Accrued interest | 80 | (105) | (10) | ||||||||
Accrued taxes | (4) | (64) | 33 | ||||||||
Accrued employee incentive | 1 | 40 | (24) | ||||||||
Alcoa contract settlement | — | — | 238 | ||||||||
Tax Receivable Agreement payment | (2) | (16) | (26) | ||||||||
ARO settlement | (121) | (100) | (35) | ||||||||
Major plant outage deferral | (19) | (22) | (66) | ||||||||
Other - net assets | (22) | 73 | 4 | ||||||||
Other - net liabilities | 142 | (45) | (40) | ||||||||
Cash provided by operating activities | 2,736 | 1,471 | 1,386 | ||||||||
Cash flows — investing activities: | |||||||||||
Capital expenditures, including LTSA prepayments | (520) | (378) | (114) | ||||||||
Nuclear fuel purchases | (89) | (118) | (62) | ||||||||
Development and growth expenditures | (104) | (34) | (190) | ||||||||
Ambit acquisition | (506) | — | — | ||||||||
Crius acquisition | (374) | — | — | ||||||||
Cash acquired in the Merger | — | 445 | — | ||||||||
Odessa acquisition | — | — | (355) | ||||||||
Proceeds from sales of nuclear decommissioning trust fund securities | 431 | 252 | 252 | ||||||||
Investments in nuclear decommissioning trust fund securities | (453) | (274) | (272) | ||||||||
Proceeds from sale of environmental allowances | 197 | 1 | 1 | ||||||||
Purchases of environmental allowances | (322) | (5) | (3) | ||||||||
Other, net | 23 | 10 | 16 | ||||||||
Cash used in investing activities | (1,717) | (101) | (727) | ||||||||
Cash flows — financing activities: | |||||||||||
Issuances of long-term debt | 6,507 | 1,000 | — | ||||||||
Repayments/repurchases of debt | (7,109) | (3,075) | (191) | ||||||||
Net borrowings under accounts receivable securitization program | 111 | 339 | — | ||||||||
Borrowings under Revolving Credit Facility | 650 | — | — | ||||||||
Repayments under Revolving Credit Facility | (300) | — | — | ||||||||
Debt tender offer and other financing fees | (203) | (236) | (8) | ||||||||
Stock repurchase | (656) | (763) | — | ||||||||
Dividends paid to stockholders | (243) | — | — | ||||||||
Other, net | 6 | 12 | (2) | ||||||||
Cash used in financing activities | (1,237) | (2,723) | (201) | ||||||||
Net change in cash, cash equivalents and restricted cash | (218) | (1,353) | 458 | ||||||||
Cash, cash equivalents and restricted cash — beginning balance | 693 | 2,046 | 1,588 | ||||||||
Cash, cash equivalents and restricted cash — ending balance | $ | 475 | $ | 693 | $ | 2,046 |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE THREE MONTHS ENDED DECEMBER 31, 2019 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||
Net income (loss) | $ | 132 | $ | 22 | $ | 121 | $ | 66 | $ | 31 | $ | (132) | $ | 240 | $ | (7) | $ | 233 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 20 | 20 | — | 20 | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 5 | (2) | 2 | 1 | (1) | 72 | 77 | — | 77 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 88 | 143 | 137 | 53 | 7 | 18 | 446 | — | 446 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 225 | 163 | 260 | 120 | 37 | (22) | 783 | (7) | 776 | ||||||||||||||||||||||||||
Unrealized net (gain) or loss resulting from hedging transactions | 87 | 25 | (88) | (76) | (23) | 4 | (71) | — | (71) | ||||||||||||||||||||||||||
Generation plant retirement expenses | — | — | — | — | — | — | — | 3 | 3 | ||||||||||||||||||||||||||
Fresh start / purchase accounting impacts | 5 | (3) | — | 1 | 2 | (1) | 4 | (1) | 3 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 12 | 12 | — | 12 | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 12 | 12 | — | 12 | ||||||||||||||||||||||||||
Transition and merger expenses | 25 | — | 2 | 2 | (4) | 8 | 33 | — | 33 | ||||||||||||||||||||||||||
Other, net | 1 | 2 | (3) | 2 | — | — | 2 | 1 | 3 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 343 | $ | 187 | $ | 171 | $ | 49 | $ | 12 | $ | 13 | $ | 775 | $ | (4) | $ | 771 |
___________
(a) | Includes $55 million of unrealized mark-to-market net gains on interest rate swaps. |
(b) | Includes nuclear fuel amortization of $20 million in the ERCOT segment. |
VISTRA ENERGY CORP. | |||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2019 | |||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||
Net income (loss) | $ | 134 | $ | 1,368 | $ | 405 | $ | 188 | $ | 55 | $ | (1,115) | $ | 1,035 | $ | (109) | $ | 926 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 290 | 290 | — | 290 | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 21 | (8) | 10 | 3 | 4 | 767 | 797 | — | 797 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 292 | 581 | 537 | 208 | 19 | 76 | 1,713 | — | 1,713 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 447 | 1,941 | 952 | 399 | 78 | 18 | 3,835 | (109) | 3,726 | ||||||||||||||||||||||||||
Unrealized net (gain) or loss resulting from hedging transactions | 278 | (591) | (203) | (109) | (30) | (41) | (696) | — | (696) | ||||||||||||||||||||||||||
Generation plant retirement expenses | — | — | — | — | 12 | — | 12 | 42 | 54 | ||||||||||||||||||||||||||
Fresh start / purchase accounting impacts | 23 | (3) | (2) | 4 | 15 | (4) | 33 | (3) | 30 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 37 | 37 | — | 37 | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 48 | 48 | — | 48 | ||||||||||||||||||||||||||
Transition and merger expenses | 49 | 11 | 6 | 4 | 21 | 24 | 115 | — | 115 | ||||||||||||||||||||||||||
Other, net | 10 | 12 | 7 | 9 | 7 | (36) | 9 | 2 | 11 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 807 | $ | 1,370 | $ | 760 | $ | 307 | $ | 103 | $ | 46 | $ | 3,393 | $ | (68) | $ | 3,325 |
___________ | |
(a) | Includes $220 million of unrealized mark-to-market net losses on interest rate swaps. |
(b) | Includes nuclear fuel amortization of $73 million in the ERCOT segment. |
VISTRA ENERGY CORP. | |||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED DECEMBER 31, 20181 | |||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | 315 | $ | (291) | $ | 7 | $ | 37 | $ | 8 | $ | (242) | $ | (166) | $ | (20) | $ | (186) | |||||||||||||||||
Income tax benefit | — | — | — | — | — | (76) | (76) | — | (76) | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 4 | (2) | 3 | 1 | — | 275 | 281 | — | 281 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 81 | 139 | 147 | 49 | 3 | 25 | 444 | — | 444 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 400 | (154) | 157 | 87 | 11 | (18) | 483 | (20) | 463 | ||||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (168) | 291 | 22 | 18 | (9) | 19 | 173 | — | 173 | ||||||||||||||||||||||||||
Fresh start accounting impacts | 14 | (2) | 1 | — | 2 | — | 15 | — | 15 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 14 | 14 | — | 14 | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 11 | 11 | — | 11 | ||||||||||||||||||||||||||
Transition and merger expenses | 1 | 2 | 7 | 1 | 4 | 13 | 28 | — | 28 | ||||||||||||||||||||||||||
Other, net | 3 | 4 | 8 | 2 | 2 | (21) | (2) | — | (2) | ||||||||||||||||||||||||||
Adjusted EBITDA, including Odessa earnout buybacks | $ | 250 | $ | 141 | $ | 195 | $ | 108 | $ | 10 | $ | 18 | $ | 722 | $ | (20) | $ | 702 | |||||||||||||||||
Odessa earnout buybacks | (2) | (2) | (2) | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 250 | $ | 139 | $ | 195 | $ | 108 | $ | 10 | $ | 18 | $ | 720 | $ | (20) | $ | 700 |
____________ | |
1 2018 results for four MISO assets retired in late 2019 were recast from the MISO segment to the Asset Closure segment. | |
(a) | Includes $128 million of unrealized mark-to-market net losses on interest rate swaps. |
(b) | Includes nuclear fuel amortization of $18 million in the ERCOT segment. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE YEAR ENDED DECEMBER 31, 20181 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | 712 | $ | (55) | $ | 100 | $ | 79 | $ | 48 | $ | (878) | $ | 6 | $ | (62) | $ | (56) | |||||||||||||||||
Income tax benefit | — | — | — | — | — | (45) | (45) | — | (45) | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 7 | 12 | 8 | 2 | 1 | 542 | 572 | — | 572 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 318 | 494 | 413 | 152 | 9 | 86 | 1,472 | — | 1,472 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 1,037 | 451 | 521 | 233 | 58 | (295) | 2,005 | (62) | 1,943 | ||||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (206) | 498 | 42 | 40 | (9) | 15 | 380 | — | 380 | ||||||||||||||||||||||||||
Fresh start accounting impacts | 26 | (6) | (1) | 9 | 12 | — | 40 | 1 | 41 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 79 | 79 | — | 79 | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 73 | 73 | — | 73 | ||||||||||||||||||||||||||
Transition and merger expenses | 1 | 9 | 14 | 2 | 9 | 196 | 231 | 2 | 233 | ||||||||||||||||||||||||||
Other, net | (13) | (2) | 16 | 9 | 10 | (23) | (3) | (4) | (7) | ||||||||||||||||||||||||||
Adjusted EBITDA, including Odessa earnout buybacks | 845 | 950 | 592 | 293 | 80 | 45 | 2,805 | (63) | 2,742 | ||||||||||||||||||||||||||
Odessa earnout buybacks | 18 | 18 | 18 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 845 | $ | 968 | $ | 592 | $ | 293 | $ | 80 | $ | 45 | $ | 2,823 | $ | (63) | $ | 2,760 |
____________ | |
1 2018 results for four MISO assets retired in late 2019 were recast from the MISO segment to the Asset Closure segment. | |
(a) | Includes $5 million of unrealized mark-to-market net losses on interest rate swaps. |
(b) | Includes nuclear fuel amortization of $78 million in the ERCOT segment. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED FREE CASH FLOW FOR YEAR ENDED DECEMBER 31, 2019 (Unaudited) (Millions of Dollars) | ||||||||||||
Ongoing | Asset | Vistra Energy | ||||||||||
Adjusted EBITDA | $ | 3,393 | $ | (68) | $ | 3,325 | ||||||
Interest paid, net (a) | (500) | — | (500) | |||||||||
Taxes received net of payments | 76 | — | — | 76 | ||||||||
Severance | (7) | (10) | (17) | |||||||||
Working capital and margin deposits | 35 | (17) | 18 | |||||||||
Reclamation and remediation | (15) | (101) | (116) | |||||||||
Transition and merger expense | (116) | — | (116) | |||||||||
Changes in other operating assets and liabilities | 60 | 6 | 66 | |||||||||
Cash provided by operating activities | $ | 2,926 | $ | (190) | $ | 2,736 | ||||||
Capital expenditures including LTSA prepayments and nuclear fuel purchases (b) | (609) | — | (609) | |||||||||
Development and growth expenditures | (104) | — | (104) | |||||||||
Ambit and Crius acquisitions | (880) | — | (880) | |||||||||
Purchases and sales of environmental credits and allowances, net | (125) | — | (125) | |||||||||
Other net investing activities (c) | (4) | 5 | 1 | |||||||||
Free cash flow | $ | 1,204 | $ | (185) | $ | 1,019 | ||||||
Working capital and margin deposits | (35) | 16 | (19) | |||||||||
Development and growth expenditures | 104 | — | 104 | |||||||||
Severance | 7 | 10 | 17 | |||||||||
Ambit and Crius acquisitions | 880 | — | 880 | |||||||||
Purchases and sales of environmental credits and allowances, net | 125 | — | 125 | |||||||||
Transition and merger expense | 116 | — | 116 | |||||||||
Transition capital expenditures | 36 | — | 36 | |||||||||
Adjusted free cash flow before growth | $ | 2,437 | $ | (159) | $ | 2,278 | ||||||
(a) | Net of interest received. |
(b) | Includes $122 million LTSA prepaid capital expenditures. |
(c) | Includes investments in and proceeds from the nuclear decommissioning trust fund and other net investing cash flows. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - 2020 GUIDANCE (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing Operations | Asset Closure | Vistra Energy | |||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||
Net Income (loss) | $ | 849 | $ | 1,081 | $ | (95) | $ | (75) | $ | 754 | $ | 1,006 | |||||||||||
Income tax expense | 252 | 320 | — | — | 252 | 320 | |||||||||||||||||
Interest expense and related charges (a) | 463 | 463 | — | — | 463 | 463 | |||||||||||||||||
Depreciation and amortization (b) | 1,600 | 1,600 | — | — | 1,600 | 1,600 | |||||||||||||||||
EBITDA before Adjustments | $ | 3,164 | $ | 3,464 | $ | (95) | $ | (75) | $ | 3,069 | $ | 3,389 | |||||||||||
Unrealized net (gain)/loss resulting from hedging transactions | (29) | (29) | — | — | (29) | (29) | |||||||||||||||||
Impacts of Tax Receivable Agreement | 69 | 69 | — | — | 69 | 69 | |||||||||||||||||
Non-cash compensation expenses | 44 | 44 | — | — | 44 | 44 | |||||||||||||||||
Transition and merger expenses | 35 | 35 | — | — | 35 | 35 | |||||||||||||||||
Other, net | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Adjusted EBITDA guidance | $ | 3,285 | $ | 3,585 | $ | (95) | $ | (75) | $ | 3,190 | $ | 3,510 | |||||||||||
Interest paid, net | (543) | (543) | — | — | (543) | (543) | |||||||||||||||||
Tax (paid)/received (c) | 153 | 1 | 153 | — | — | 153 | 153 | ||||||||||||||||
Tax receivable agreement payments | (3) | (3) | — | — | (3) | (3) | |||||||||||||||||
Working capital and margin deposits | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Reclamation and remediation | (60) | (60) | (126) | (126) | (186) | (186) | |||||||||||||||||
Other changes in other operating assets and liabilities | (80) | (80) | 31 | 31 | (49) | (49) | |||||||||||||||||
Cash provided by operating activities | $ | 2,754 | $ | 3,054 | $ | (190) | $ | (170) | $ | 2,564 | $ | 2,884 | |||||||||||
Capital expenditures including nuclear fuel purchases and LTSA Prepayments | (613) | (613) | — | — | (613) | (613) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | (315) | (315) | — | — | (315) | (315) | |||||||||||||||||
(Purchase)/sale of environmental credits and allowances | (39) | (39) | — | — | (39) | (39) | |||||||||||||||||
Other net investing activities | (20) | (20) | — | — | (20) | (20) | |||||||||||||||||
Free cash flow | $ | 1,767 | $ | 2,067 | $ | (190) | $ | (170) | $ | 1,577 | $ | 1,897 | |||||||||||
Working capital and margin deposits | (2) | (2) | — | — | (2) | (2) | |||||||||||||||||
Moss Landing development and other growth expenditures | 315 | 315 | — | — | 315 | 315 | |||||||||||||||||
Purchase/(sale) of environmental credits and allowances | 39 | 39 | — | — | 39 | 39 | |||||||||||||||||
Transition and merger expenses | 38 | 38 | — | — | 38 | 38 | |||||||||||||||||
Transition capital expenditures | 3 | 3 | — | — | 3 | 3 | |||||||||||||||||
Adjusted free cash flow before growth guidance | $ | 2,160 | $ | 2,460 | $ | (190) | $ | (170) | $ | 1,970 | $ | 2,290 |
____________ | |
(a) | Includes unrealized gain on interest rate swaps of $21 million. |
(b) | Includes nuclear fuel amortization of $74 million. |
(c) | Includes state tax payments. Does not reflect the early receipt of $93 million of alternative minimum tax credit refunds in 2019. |
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SOURCE Vistra Energy Corp.
IRVING, Texas, Feb. 25, 2020 /PRNewswire/ -- Vistra Energy (NYSE: VST) announced today that its board of directors has declared a quarterly dividend of $0.135 per share of Vistra's common stock, representing an 8% increase in the company's quarterly common stock dividend and bringing the annualized dividend to $0.54 per share. The dividend is payable on March 31, 2020, to shareholders of record as of March 17, 2020. The ex-dividend date will be March 16, 2020.
"We are pleased to be increasing our dividend at the high end of our expected 6-8% growth rate, which is supported by our stable and growing EBITDA profile and high free cash flow conversion ratio," said Curt Morgan, president and chief executive officer of Vistra. "This dividend represents just over 10% of Vistra's forecasted 2020 free cash flow before growth. A dividend at this level and growth rate leaves ample capital available to implement a diverse capital allocation plan in the future, including a commitment to return a meaningful amount of capital to shareholders."
Media
Meranda Cohn
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, Fortune 350 energy 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 retail 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders.
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 its contemplated strategic and performance initiatives and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, Feb. 4, 2020 /PRNewswire/ -- Vistra Energy (NYSE: VST) plans to report its 2019 financial and operating results on Friday, Feb. 28, 2020. Management will present the results during a webcast beginning at 8 a.m. ET (7 a.m. CT).
The live, listen-only webcast can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com under "Investor Relations" and then "Events & Presentations." For those unable to participate in the live event, a replay will be available on the Vistra Energy website for one year following the webcast.
Media
Meranda Cohn
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, Fortune 350 energy 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 retail 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders. Learn more about our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.com/sustainability/
View original content to download multimedia:http://www.prnewswire.com/news-releases/vistra-energy-to-report-2019-results-on-february-28-2020-300998006.html
SOURCE Vistra Energy
PEORIA, Ill., Jan. 16, 2020 /PRNewswire/ -- Homefield Energy is partnering with the Peoria Rivermen to send high school students to college. This hockey season, every time the Peoria Rivermen score a goal on a power play, Homefield Energy will donate $100 to Peoria Promise.
"We are honored that Homefield Energy has selected Peoria Promise," said Peoria Promise executive director, M.J. Schettler. "When you support the Rivermen this season, make a lot of noise on power-play goals! These dollars support our future leaders: Peoria Promise students."
Peoria Promise uses a model, completely funded by donors, to provide out-of-pocket tuition reimbursement for City of Peoria high school graduates to attend Illinois Central College. A large majority of these students will then transfer to a four-year college, earn a vocational certificate or go on to work in the community.
Peoria Mayor, Jim Ardis announced Peoria Promise in 2007, and now serves as chairman of the board. "Homefield Energy has become a strong voice in the community, by stressing the importance of education," said Mayor Ardis. "Homefield's continued engagement is shown through the support of Peoria Promise and turning power-play goals into funding for scholarships."
"We are fully committed to being good neighbors in the communities we serve, and investing in education is one of the best ways to do that," said Debbie Lucas, Homefield Energy senior sales executive. "Not only does the promise of a free college education entice students to graduate from high school, but it also supports economic development, and delivers a more skilled workforce to the greater-Peoria area. We have found wonderful partners in the Peoria Rivermen and it's been exciting to see our donation grow with each goal they score."
Since the start of the 2019-2020 season, the Rivermen have scored 21 goals on the power play, bringing the current donation total to $2,100. That number will continue to grow as more power-play goals mean a larger donation. Homefield Energy will present the final amount to Peoria Promise at the Rivermen's last home game of the season.
"The Peoria Rivermen are excited to be partnering with Homefield Energy to help a great mission in Peoria Promise," said Bart Rogers, chief operating officer of the Peoria Rivermen. "We've enjoyed a long- standing relationship with Homefield Energy, and their goal of being a great community partner is identical to ours. Having the No. 1 ranked power play in the SPHL will hopefully mean a large donation to Peoria Promise in April!"
About Homefield
Homefield Energy, a subsidiary of Vistra Energy (NYSE: VST), is proud to power Illinois. We are committed to being a leader in the electricity sector and a good neighbor to the communities in which we operate. Vistra Energy 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. Vistra's retail brands serve approximately five million residential, commercial, and industrial customers across five top retail states.
Media
Jenny Lyon
214-875-8004
Media.Relations@vistraenergy.com
View original content:http://www.prnewswire.com/news-releases/power-plays-bring-the-promise-of-a-college-education-300988119.html
SOURCE Homefield Energy
IRVING, Texas, Dec. 30, 2019 /PRNewswire/ -- After thorough review of the Federal Energy Regulatory Commission's order on the PJM capacity auction rules, Vistra Energy (NYSE: VST) supports the reasoned action that directs PJM to reform its capacity auction to address the anti-competitive effects state-subsidized resources have on the ability of the capacity market to function properly. While the order allows certain exemptions, it strikes the right balance by specifically directing PJM to establish a minimum capacity offer price for all state-subsidized resources equal to the net cost of entry for new resources and the net avoidable cost rate for existing resources. FERC initiated the proceeding to reform PJM's capacity market in a June 2018 order that rejected two PJM proposals for capacity market reform, finding PJM's existing capacity auction rules unjust and unreasonable as a result of the price-suppressive impact of state subsidies.
"We are pleased FERC has resolved the regulatory uncertainty hanging over the PJM markets. We applaud the Commission for directing reforms that preserve the integrity of competitive markets and will provide the confidence in the PJM capacity auction process necessary to support investment in a balanced set of resources to maintain electric reliability," said Curt Morgan, president and chief executive officer of Vistra. "We recognize that some will initially react negatively to the FERC order; however, as they evaluate options, we hope they take into account the tremendous savings their constituents have realized over the years from the competitive PJM markets and recognize that FERC must ensure fair and equitable treatment for all market participants. Vistra supports states developing energy policies, but the company does not support exercising those policy decisions in a way that distorts competitive pricing."
Morgan continued, "It seems most of the energy policy objectives relate to climate change and we believe there is a better path forward to achieve these objectives – one that is market-based, does not disrupt competitive market dynamics, and provides a level playing field. As we recently announced, Vistra supports an economy-wide, national or regional carbon abatement program with a dividend as the most effective and equitable mechanism to promote the reduction of greenhouse gas emissions. This kind of approach would allow companies to make strategic choices about their assets based on a uniform set of rules and transparent pricing and would eliminate the need for subsidies that are the focus of FERC's reforms. We encourage states to work expeditiously to adopt and enhance market-based carbon abatement programs, and we look forward to participating in that process."
Vistra believes the FERC order is appropriate for the following reasons:
The PJM capacity market order is a balanced approach to a very complex and hyper-politicized matter that will preserve the competitive markets, which have protected electric consumers and provided billions of dollars of savings, and ensure that rates are just and reasonable for all market participants, regardless of their fuel source. The order and an effective carbon abatement program can be a powerful combination bridging power markets to a new future. We look forward to working with PJM and stakeholders as this order is implemented.
Media
Meranda Cohn
Media.Relations@vistraenergy.com
214-875-8004
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy (NYSE: VST) is a premier, integrated, Fortune 350 energy 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 power 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders. Learn more about Vistra's environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.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 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, (iv) with respect to the Crius acquisition, the ability for Vistra to successfully integrate the Crius business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
SOURCE Vistra Energy
IRVING, Texas, Dec. 19, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) today announced it has joined the Climate Leadership Council ("CLC") as a founding member. The CLC is an international policy institute created in collaboration with prominent business, opinion, and environmental leaders to promote a carbon dividends framework as the most cost-effective, equitable, and politically viable climate solution. Vistra joins 24 prominent companies across a myriad of industries with a combined market cap of $3.8 trillion in advocating for a national carbon fee and dividend policy. Founding members of the CLC include five oil and gas supermajors, the two largest automobile manufacturers in the U.S., as well as the largest telecommunications company, insurance company, and healthcare company in the world, among others.
Consistent with Vistra's commitment to the transformative impact of a market-based, cost-effective, and politically viable climate solution, the company is also contributing $1 million to the Americans for Carbon Dividends ("AFCD") advocacy campaign, underwriting its efforts to encourage Congress to enact a carbon fee and dividend plan.
Vistra is joined by other prominent organizations including IBM, Ford Motor Company, Calpine, and General Motors, which the AFCD announced today have also made financial commitments to the campaign. IBM will similarly be joining the CLC as a founding member (Ford, Calpine, and General Motors are already founding members).
"Over the last several years, Vistra has greatly accelerated its efforts to reduce its CO2 footprint through, among other initiatives, power plant retirements and billions of dollars of investments in renewables, energy storage, emissions control equipment, and other energy efficient technologies," said Curt Morgan, Vistra's president and chief executive officer. "These types of individual efforts, however, must be complemented and supported by a national public policy solution focused on reducing carbon emissions while utilizing market-based, competitive principles. We believe an economy-wide, adequately priced carbon fee and dividend plan would be the most effective and equitable public policy solution to advance this goal through appropriately incentivized investments in carbon-free and carbon-reducing technologies. The plan put forth by the CLC and advocated for by AFCD is exactly the type of actionable plan to facilitate the country's transition to a lower-carbon future while maintaining a prosperous American economy. With the right policies in place, we believe Vistra can continue to reduce our own emissions and contribute our part to meeting the goals set forth in the Paris Agreement, all while continuing to provide safe, reliable, and affordable power to our customers."
About the CLC
The CLC formally launched in February 2017 with the publication of The Conservative Case for Carbon Dividends, co-authored by James A. Baker, III, Martin Feldstein, Ted Halstead, N. Gregory Mankiw, Henry M. Paulson, Jr., George P. Shultz, Thomas Stephenson, and Rob Walton. The founding members of the CLC believe the U.S. needs a consensus climate solution that bridges partisan divides, strengthens our economy, and protects our shared environment. The bipartisan carbon dividends plan is centered around four policy pillars:
Additional information about the CLC can be found at www.clcouncil.org.
About AFCD
AFCD is a national education and advocacy campaign that promotes a bipartisan climate solution where all sides win. As the most popular, equitable, and politically viable climate solution, carbon dividends offer the best hope for a much-needed bipartisan climate breakthrough. It is already supported by the broadest climate coalition in U.S. history.
Additional information about AFCD can be found at www.afcd.org.
Media
Meranda Cohn
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, Fortune 350 energy 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 retail 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders. Learn more about our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.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 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 and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
HOUSTON, Dec. 12, 2019 /PRNewswire/ -- Be An Angel and TXU Energy partnered to spread joy, and support low-income, special needs children this holiday season. On Wednesday, Dec. 11, an army of volunteers decorated and assembled thousands of gift bags for children with disabilities or profound deafness. Each child was lovingly registered with Be An Angel by their teachers, and last month, volunteers went shopping to fulfill thousands of individual wish lists.
Gift decoration efforts filled an entire exhibit hall at the George R. Brown Convention center. Volunteers were joined by State Representative Dan Huberty, who feels passionately about improving the quality of life for children with multiple disabilities, and serves on Be An Angel's board.
"Many families caring for special needs children struggle to make ends meet, and Christmas poses an additional financial challenge," said Marti Boone, Be An Angel executive director. "Our partnership with TXU Energy is making the season more joyous for thousands of children who might not otherwise have received gifts."
On Thursday, Dec. 12, volunteers delivered gifts to children at the following school districts: Aldine ISD, Alief ISD, Conroe ISD, Harris County, Houston ISD, Magnolia ISD, Pasadena ISD, Royal ISD, Spring ISD, Spring Branch ISD, Tomball ISD, and Waller ISD. Last year, more than 5100 children received gifts from Be An Angel, and this year looks to be even brighter.
"Be An Angel serves a special community that's often overlooked and underserved," said Brad Watson, TXU Energy community affairs senior director. "As a Texas based company, we are honored to partner with an organization that does so much to improve the lives of children all over the state."
Be An Angel was founded in 1986, to provide life-changing benefits to children with special needs or profound deafness at T.H. Rogers School in Houston. More than 30 years later, Be An Angel serves thousands of children throughout Texas, primarily in the Houston, Dallas, and Fort Worth areas, providing needed adaptive equipment, specialized programs, and services.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
Jenny Lyon
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
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www.facebook.com/txuenergy
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SOURCE TXU Energy
IRVING, Texas, Dec. 12, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) today announced that Curt Morgan, Vistra's president and chief executive officer, will be featured in an upcoming podcast interview on "The Stock Podcast," hosted by Nate Abercrombie.
The podcast interview will be available beginning at 9 a.m. ET (8 a.m. CT) today, Dec. 12, 2019, from a link in the investor relations section of Vistra's website, www.vistraenergy.com, and at www.thestockpodcast.com.
Media
Meranda Cohn
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, Fortune 350 energy 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 retail 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders. Learn more about our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.com/sustainability/
Cautionary Note Regarding Forward-Looking Statements
The information presented herein, including the aforementioned podcast, may include 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 or referenced herein or in the aforementioned podcast, 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 and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
DALLAS, Nov. 11, 2019 /PRNewswire/ -- Making good on a promise to help replace trees lost in spring storms, TXU Energy donated 300 trees to the City of Dallas and hosted a volunteer tree planting at White Rock Lake Park. The event, held in partnership with the City of Dallas Parks and Recreation Department and the Texas Trees Foundation, included remarks from District 9 Dallas City Council Member Paula Blackmon, who represents one of the areas hardest hit during the June 9 storm.
"The June storm destroyed trees across multiple City-owned parks. Since then, we've been working with the City and the Texas Trees Foundation to identify where a significant tree donation can be best served," said Scott Hudson, President of TXU Energy. "As a North Texas-based company, we realize how hard the June storm and October tornado have been on our neighbors and neighborhoods. As Dallas digs in for the tough work of rebuilding homes and businesses, we are proud to do our part, helping to replace the well-loved trees that make our city parks so special."
The donated trees – which account for nearly half of those lost on June 9 – are native to the area and will blend in well with the existing canopy.
"The damage from the June storm was devastating to Dallas' tree canopy," said Matt Grubisich, Director of Operations and Urban Forestry for the Texas Trees Foundation. "By replanting these trees, we will be helping to restore the city's tree canopy ensuring a greener, cleaner, cooler Dallas for future generations."
Since 2002, TXU Energy, and its sister companies, have provided more than 300,000 trees to various partner communities. The donated trees have helped generate millions of dollars in environmental savings and health benefits for residents and municipalities.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
Jenny Lyon
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
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SOURCE TXU Energy
IRVING, Texas, Nov. 6, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the pricing of a private offering (the "Offering") of $1.1 billion aggregate principal amount of senior secured notes, consisting of $300 million aggregate principal amount of senior secured notes due 2024 at a price to the public of 101.782% of their face value (the "2024 Notes"), which form a part of the same series as the Company's outstanding 3.55% Senior Secured Notes due 2024 issued on June 11, 2019, and $800 million aggregate principal amount of senior secured notes due 2027 at a price to the public of 99.789% of their face value (the "2027 Notes" and together with the 2024 Notes, the "Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be senior, secured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The 2024 Notes will bear interest at the rate of 3.55% per annum, and the 2027 Notes will bear interest at the rate of 3.70% per annum. The Notes will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries that also guarantee the Issuer's credit agreement. The Notes will be secured by a first-priority security interest in the same collateral that is pledged for the benefit of the lenders under the Issuer's credit agreement, which consists of a substantial portion of the property, assets and rights owned by the Issuer and the subsidiary guarantors as well as the stock of the Issuer. The collateral securing the Notes will be released if the Issuer's senior, unsecured long-term debt securities obtain an investment grade rating from two out of the three rating agencies, subject to reversion if such rating agencies withdraw the investment grade rating of the Issuer's senior, unsecured long-term debt securities or downgrade such rating below investment grade.
The Offering is expected to close on November 15, 2019, subject to customary closing conditions.
The purpose of the Offering is to prepay certain amounts outstanding under the senior secured term loan under the Issuer's credit agreement and to pay fees and expenses related to the Offering. The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any new securities nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful.
Media
Meranda Cohn
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, Fortune 350 energy 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 retail 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders.
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 and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, Nov. 6, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the launch of a private offering (the "Offering") of senior secured notes due 2024 and senior secured notes due 2027 (collectively, the "Secured Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Secured Notes will be senior, secured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The Secured Notes will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries that also guarantee the Issuer's credit agreement. The Secured Notes will be secured by a first-priority security interest in the same collateral that is pledged for the benefit of the lenders under the Issuer's credit agreement, which consists of a substantial portion of the property, assets and rights owned by the Issuer and the subsidiary guarantors as well as the stock of the Issuer. The collateral securing the Secured Notes will be released if the Issuer's senior, unsecured long-term debt securities obtain an investment grade rating from two out of the three rating agencies, subject to reversion if such rating agencies withdraw the investment grade rating of the Issuer's senior, unsecured long-term debt securities or downgrade such rating below investment grade.
The Company intends to use the net proceeds from the Offering, together with cash on hand, to prepay certain amounts outstanding under the senior secured term loan under the Issuer's credit agreement and to pay fees and expenses related to the Offering.
The Secured Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Media
Meranda Cohn
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, Fortune 350 energy 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 retail 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders.
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 and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy Corp.
IRVING, Texas, Nov. 5, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):
Financial Highlights
Realized in Year | Achieved by YE | |
2019 | $490 | $565 |
2020 | $590 | $665 |
2021 | $685 | $715 |
Capital Allocation Highlights
Growth and Sustainability Highlights
(1) Excludes the Asset Closure segment. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
Summary of Financial Results for the Third Quarter Ended September 30, 2019
Three Months Ended | Nine Months Ended | ||||
($ in millions) | Sept. 30, 2019 | Sept. 30, 2018 | Sept. 30, 2019 | ||
Net Income | $ 114 | $ 331 | $ 692 | ||
Ongoing Operations Net Income1 | $ 122 | $ 335 | $ 729 | ||
Ongoing Operations Adjusted EBITDA1 | $ 1,064 | $ 1,153 | $ 2,586 | ||
Adjusted EBITDA by Segment | |||||
Retail | $ (87) | $ 141 | $ 463 | ||
ERCOT | $ 823 | $ 597 | $ 1,183 | ||
PJM | $ 222 | $ 240 | $ 590 | ||
NY/NE | $ 81 | $ 111 | $ 258 | ||
MISO | $ 11 | $ 39 | $ 59 | ||
CAISO/Corp | $ 14 | $ 25 | $ 33 | ||
Asset Closure | $ (4) | $ (12) | $ (32) |
For the three months ended Sept. 30, 2019, Vistra reported Net Income from Ongoing Operations of $122 million and Adjusted EBITDA from Ongoing Operations of $1,064 million. Vistra's third quarter Adjusted EBITDA was $89 million lower than third quarter 2018 results, reflecting lower prices and volumes in its Midwest and Northeast generation segments. Lower results in Vistra's retail segment, which were expected as a result of higher cost of goods sold in the third quarter, were offset by higher results in the ERCOT generation segment.
For the first nine months of 2019, Vistra reported Net Income from Ongoing Operations of $729 million and Adjusted EBITDA from Ongoing Operations of $2,586 million. Year-to-date results were in-line with management expectations.
Vistra reported third quarter retail Adjusted EBITDA of $(87) million, $228 million lower than third quarter 2018 results, which were expected as a result of higher cost of goods sold in the period. Third quarter generation Adjusted EBITDA was $1,151 million,2 $139 million higher than third quarter 2018 results driven by higher prices and volumes in ERCOT partially offset by lower prices and volumes in its Midwest and Northeast segments.
Curt Morgan, Vistra's president and chief executive officer, commented, "As we have been saying all year, 2019 is the year of execution—and we continue to demonstrate the benefits of our integrated model with strong third quarter results. Our initial guidance range for 2019 was based on robust forward curves, in particular in ERCOT which embedded material summer scarcity pricing, and we were able to execute and generate expected EBITDA results despite mild June and July weather. We believe we are well-positioned to deliver strong, stable EBITDA and free cash flow over the long term with our efficient and highly flexible, in-the-money generation fleet and industry-leading retail operations. Our strong free cash flow should enable us to continue to make attractive investments to grow our business, while also returning significant capital to shareholders."
(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. Total by segment may not tie due to rounding. |
(2) Generation includes Corporate. |
Ambit Acquisition
Vistra completed the acquisition of Ambit Energy on Nov. 1, 2019. The transaction is projected to be immediately accretive to both EBITDA and free cash flow, with an expected free cash flow conversion ratio greater than 90%. In addition to improving Vistra's average generation to retail load match to approximately 58%, the transaction brings a proven direct sales channel along with an impressive network of consultants and a proprietary technology platform. Vistra expects the Ambit business will contribute approximately $15 to $20 million to its Ongoing Operations Adjusted EBITDA in 2019.
Guidance
($ in millions) | Prior 2019 | Current 2019 | 2020 | |||
Ongoing Ops. Adj. EBITDA1 | $ | 3,220 – 3,420 | $ | 3,320 – 3,420 | $ | 3,285 – 3,585 |
Ongoing Ops. Adj. FCFbG1 | $ | 2,100 – 2,300 | $ | 2,200 – 2,300 | $ | 2,160 – 2,460 |
(1) Excludes the Asset Closure segment. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
Vistra is narrowing and updating its 2019 Ongoing Operations guidance ranges, forecasting Ongoing Operations Adjusted EBITDA of $3,320 to $3,420 million and Ongoing Operations Adjusted FCFbG of $2,200 to $2,300 million. Vistra's 2019 guidance range includes an expected ($40) million in-year impact from the execution of NPV-positive, long-dated contracts with retail customers that will contribute positive EBITDA in future years. This negative impact was not anticipated at the time original 2019 guidance was developed.
Vistra is initiating its 2020 Ongoing Operations guidance ranges, forecasting Ongoing Operations Adjusted EBITDA of $3,285 to $3,585 million and Ongoing Operations Adjusted FCFbG of $2,160 to $2,460 million. Vistra's 2020 guidance range includes an expected ($70) million in-year impact from the execution of NPV-positive, long-dated contracts with retail customers that will contribute positive EBITDA in future years.
Share Repurchase Program
As of Oct. 31, 2019, Vistra has completed approximately $1.415 billion in share repurchases under the $1.75 billion share repurchase program previously authorized by its board of directors. Vistra has purchased approximately 60 million shares, resulting in net shares outstanding of approximately 487 million as of Oct. 31, 2019. Approximately $335 million remains available for execution under the program as of the same date.
Liquidity
As of Sept. 30, 2019, Vistra had total available liquidity of approximately $2,562 million, including cash and cash equivalents of $707 million, $11 million of availability under our alternative letter of credit facility, and $1,844 million of availability under its revolving credit facility, which remained undrawn, but had $1,370 million of letters of credit outstanding as of Sept. 30, 2019 that reduce availability.
The increase in available liquidity of $791 million as of Sept. 30, 2019, as compared to Dec. 31, 2018, was primarily driven by $500 million of available capacity under our two alternate letter of credit facilities, $225 million of additional available commitments under our revolving credit facility, and decreased letters of credit postings.
Earnings Webcast
Vistra will host a webcast today, Nov. 5, 2019, 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 impacts, 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
Meranda Cohn
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, Fortune 350 energy 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 retail 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 gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 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 of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. 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 people, our neighbors, and our stakeholders. Learn more about our environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.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 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 and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 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 | |||||||||||||||
(Unaudited) (Millions of Dollars, Except Per Share Amounts) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating revenues | $ | 3,194 | $ | 3,243 | $ | 8,949 | $ | 6,581 | |||||||
Fuel, purchased power costs and delivery fees | (1,687) | (1,627) | (4,287) | (3,492) | |||||||||||
Operating costs | (397) | (346) | (1,153) | (926) | |||||||||||
Depreciation and amortization | (424) | (426) | (1,213) | (967) | |||||||||||
Selling, general and administrative expenses | (246) | (194) | (637) | (711) | |||||||||||
Operating income | 440 | 650 | 1,659 | 485 | |||||||||||
Other income | 6 | 6 | 45 | 25 | |||||||||||
Other deductions | (4) | (1) | (9) | (4) | |||||||||||
Interest expense and related charges | (224) | (154) | (720) | (291) | |||||||||||
Impacts of Tax Receivable Agreement | (62) | 17 | (26) | (65) | |||||||||||
Equity in earnings of unconsolidated investment | 3 | 7 | 13 | 11 | |||||||||||
Income before income taxes | 159 | 525 | 962 | 161 | |||||||||||
Income tax expense | (45) | (194) | (270) | (31) | |||||||||||
Net income | $ | 114 | $ | 331 | $ | 692 | $ | 130 | |||||||
Net loss attributable to noncontrolling interest | (1) | (1) | 2 | 2 | |||||||||||
Net income attributable to Vistra Energy | $ | 113 | $ | 330 | $ | 694 | $ | 132 |
VISTRA ENERGY CORP. | |||||||
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS | |||||||
(Unaudited) (Millions of Dollars) | |||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Cash flows — operating activities: | |||||||
Net income | $ | 692 | $ | 130 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 1,394 | 1,070 | |||||
Deferred income tax expense, net | 254 | 29 | |||||
Unrealized net (gain) loss from mark-to-market valuations of commodities | (625) | 207 | |||||
Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps | 275 | (123) | |||||
Asset retirement obligation accretion expense | 40 | 37 | |||||
Impacts of Tax Receivable Agreement | 26 | 65 | |||||
Stock-based compensation | 35 | 59 | |||||
Other, net | 12 | 64 | |||||
Changes in operating assets and liabilities: | |||||||
Margin deposits, net | 129 | (39) | |||||
Accrued interest | 15 | (59) | |||||
Accrued taxes | (31) | (102) | |||||
Accrued employee incentive | (53) | (17) | |||||
Other operating assets and liabilities | (340) | (458) | |||||
Cash provided by operating activities | 1,823 | 863 | |||||
Cash flows — financing activities: | |||||||
Issuances of long-term debt | 4,600 | 1,000 | |||||
Repayments/repurchases of debt | (4,668) | (2,902) | |||||
Net borrowings under accounts receivable securitization program | 261 | 350 | |||||
Stock repurchase | (632) | (414) | |||||
Dividends paid to stockholders | (181) | — | |||||
Debt tender offer and other financing fees | (170) | (216) | |||||
Other, net | 6 | 10 | |||||
Cash used in financing activities | (784) | (2,172) | |||||
Cash flows — investing activities: | |||||||
Capital expenditures, including LTSA prepayments | (348) | (209) | |||||
Nuclear fuel purchases | (33) | (66) | |||||
Development and growth expenditures | (93) | (28) | |||||
Crius acquisition | (374) | — | |||||
Cash acquired in the Merger | — | 445 | |||||
Proceeds from sales of nuclear decommissioning trust fund securities | 354 | 211 | |||||
Investments in nuclear decommissioning trust fund securities | (370) | (227) | |||||
Proceeds from sale of environmental allowances | 32 | — | |||||
Purchases of environmental allowances | (169) | (4) | |||||
Other, net | 22 | 11 | |||||
Cash (used in) provided by investing activities | (979) | 133 | |||||
Net change in cash, cash equivalents and restricted cash | 60 | (1,176) | |||||
Cash, cash equivalents and restricted cash — beginning balance | 693 | 2,046 | |||||
Cash, cash equivalents and restricted cash — ending balance | $ | 753 | $ | 870 |
VISTRA ENERGY CORP. | |||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 | |||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||
Net income (loss) | $ | 573 | $ | (10) | $ | (62) | $ | 21 | $ | (88) | $ | (312) | $ | 122 | $ | (8) | $ | 114 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 45 | 45 | — | 45 | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 8 | (2) | 2 | 1 | 2 | 213 | 224 | — | 224 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 86 | 146 | 135 | 51 | 5 | 21 | 444 | — | 444 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 667 | 134 | 75 | 73 | (81) | (33) | 835 | (8) | 827 | ||||||||||||||||||||||||||
Unrealized net (gain) or loss resulting from hedging transactions | (769) | 682 | 139 | 5 | 43 | (21) | 79 | — | 79 | ||||||||||||||||||||||||||
Generation plant retirement expenses | — | — | — | — | 47 | — | 47 | 2 | 49 | ||||||||||||||||||||||||||
Fresh start / purchase accounting impacts | (12) | — | 3 | — | 2 | (1) | (8) | — | (8) | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 62 | 62 | — | 62 | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 12 | 12 | — | 12 | ||||||||||||||||||||||||||
Transition and merger expenses | 24 | 5 | 1 | 1 | 1 | 5 | 37 | 1 | 38 | ||||||||||||||||||||||||||
Other, net | 3 | 2 | 4 | 2 | (1) | (10) | — | 1 | 1 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | (87) | $ | 823 | $ | 222 | $ | 81 | $ | 11 | $ | 14 | $ | 1,064 | $ | (4) | $ | 1,060 |
___________ | |
(a) | Includes $76 million of unrealized mark-to-market net losses on interest rate swaps. |
(b) | Includes nuclear fuel amortization of $20 million in ERCOT. |
VISTRA ENERGY CORP. | |||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 | |||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||
Net income (loss) | $ | 3 | $ | 1,346 | $ | 283 | $ | 122 | $ | (42) | $ | (983) | $ | 729 | $ | (37) | $ | 692 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 270 | 270 | — | 270 | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 16 | (7) | 8 | 2 | 5 | 696 | 720 | — | 720 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 204 | 438 | 399 | 155 | 11 | 59 | 1,266 | — | 1,266 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 223 | 1,777 | 690 | 279 | (26) | 42 | 2,985 | (37) | 2,948 | ||||||||||||||||||||||||||
Unrealized net (gain) or loss resulting from hedging transactions | 192 | (616) | (115) | (33) | (8) | (45) | (625) | — | (625) | ||||||||||||||||||||||||||
Generation plant retirement expenses | — | — | — | — | 47 | — | 47 | 2 | 49 | ||||||||||||||||||||||||||
Fresh start / purchase accounting impacts | 17 | — | (2) | 3 | 11 | (3) | 26 | — | 26 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 26 | 26 | — | 26 | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 36 | 36 | — | 36 | ||||||||||||||||||||||||||
Transition and merger expenses | 24 | 11 | 4 | 2 | 25 | 16 | 82 | — | 82 | ||||||||||||||||||||||||||
Other, net | 7 | 11 | 13 | 7 | 10 | (39) | 9 | 3 | 12 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 463 | $ | 1,183 | $ | 590 | $ | 258 | $ | 59 | $ | 33 | $ | 2,586 | $ | (32) | $ | 2,554 |
___________ | |
(a) | Includes $275 million of unrealized mark-to-market net losses on interest rate swaps. |
(b) | Includes nuclear fuel amortization of $53 million in ERCOT. |
VISTRA ENERGY CORP. | |||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018 | |||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | (86) | $ | 643 | $ | 62 | $ | 47 | $ | (3) | $ | (328) | $ | 335 | $ | (4) | $ | 331 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 194 | 194 | — | 194 | ||||||||||||||||||||||||||
Interest expense and related charges (a) | 3 | (2) | 3 | 1 | 1 | 148 | 154 | — | 154 | ||||||||||||||||||||||||||
Depreciation and amortization (b) | 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 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 $38 million of unrealized mark-to-market net gains on interest rate swaps. |
(b) | Includes nuclear fuel amortization of $20 million in the ERCOT segment. |
VISTRA ENERGY CORP. | |||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 | |||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | 397 | $ | 236 | $ | 86 | $ | 41 | $ | 29 | $ | (635) | $ | 154 | $ | (24) | $ | 130 | |||||||||||||||||
Income tax expense (benefit) | — | — | — | — | — | 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 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 $123 million of unrealized mark-to-market net gains on interest rate swaps. |
(b) | Includes nuclear fuel amortization of $60 million in the ERCOT segment. |
VISTRA ENERGY CORP. | ||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - 2019 GUIDANCE | ||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | ||||||||||||||||||||||||
Ongoing | Asset Closure | Vistra Energy | ||||||||||||||||||||||
Low | High | Low | High | Low | High | |||||||||||||||||||
Net Income (loss) | $ | 865 | $ | 940 | $ | (109) | $ | (89) | $ | 756 | $ | 851 | ||||||||||||
Income tax expense | 248 | 273 | — | — | 248 | 273 | ||||||||||||||||||
Interest expense and related charges (a) | 868 | 868 | — | — | 868 | 868 | ||||||||||||||||||
Depreciation and amortization (b) | 1,660 | 1,660 | — | — | 1,660 | 1,660 | ||||||||||||||||||
EBITDA before Adjustments | $ | 3,641 | $ | 3,741 | $ | (109) | $ | (89) | $ | 3,532 | $ | 3,652 | ||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (592) | (592) | — | — | (592) | (592) | ||||||||||||||||||
Generation plant retirement expenses | 46 | 46 | 3 | 3 | 49 | 49 | ||||||||||||||||||
Fresh start / purchase accounting impacts | 35 | 35 | — | — | 35 | 35 | ||||||||||||||||||
Impacts of Tax Receivable Agreement | 41 | 41 | — | — | 41 | 41 | ||||||||||||||||||
Non-cash compensation expenses | 48 | 48 | — | — | 48 | 48 | ||||||||||||||||||
Transition and merger expenses | 90 | 90 | — | — | 90 | 90 | ||||||||||||||||||
Other, net | 11 | 11 | 1 | 1 | 12 | 12 | ||||||||||||||||||
Adjusted EBITDA guidance | $ | 3,320 | $ | 3,420 | $ | (105) | $ | (85) | $ | 3,215 | $ | 3,335 | ||||||||||||
Interest paid, net | (517) | (517) | — | — | (517) | (517) | ||||||||||||||||||
Tax paid (c) | (18) | (18) | — | — | (18) | (18) | ||||||||||||||||||
Tax receivable agreement payments | (2) | (2) | — | — | (2) | (2) | ||||||||||||||||||
Working capital and margin deposits | 33 | 33 | (4) | (4) | 29 | 29 | ||||||||||||||||||
Reclamation and remediation | (59) | (59) | (82) | (82) | (141) | (141) | ||||||||||||||||||
Other changes in other operating assets and liabilities | (143) | (143) | 13 | 13 | (130) | (130) | ||||||||||||||||||
Cash provided by operating activities | $ | 2,614 | $ | 2,714 | $ | (178) | $ | (158) | $ | 2,436 | $ | 2,556 | ||||||||||||
Capital expenditures including nuclear fuel purchases and LTSA Prepayments | (603) | (603) | — | — | (603) | (603) | ||||||||||||||||||
Solar and Moss Landing development and other growth expenditures | (96) | (96) | — | — | (96) | (96) | ||||||||||||||||||
Acquisitions | (849) | (849) | — | — | (849) | (849) | ||||||||||||||||||
(Purchase) sale of environmental credits and allowances | (73) | (73) | — | — | (73) | (73) | ||||||||||||||||||
Other net investing activities | (19) | (19) | 4 | 4 | (15) | (15) | ||||||||||||||||||
Free cash flow | $ | 974 | $ | 1,074 | $ | (174) | $ | (154) | $ | 800 | $ | 920 | ||||||||||||
Working capital and margin deposits | (33) | (33) | 4 | 4 | (29) | (29) | ||||||||||||||||||
Solar and Moss Landing development and other growth expenditures | 96 | 96 | — | — | 96 | 96 | ||||||||||||||||||
Acquisitions | 849 | 849 | — | — | 849 | 849 | ||||||||||||||||||
Purchase (sale) of environmental credits and allowances | 73 | 73 | — | — | 73 | 73 | ||||||||||||||||||
Generation plant retirement expenses | 22 | 22 | — | — | 22 | 22 | ||||||||||||||||||
Transition and merger expenses | 181 | 181 | — | — | 181 | 181 | ||||||||||||||||||
Transition capital expenditures | 38 | 38 | — | — | 38 | 38 | ||||||||||||||||||
Adjusted free cash flow before growth guidance | $ | 2,200 | $ | 2,300 | $ | (170) | $ | (150) | $ | 2,030 | $ | 2,150 |
(a) | Includes unrealized loss on interest rate swaps of $317 million. |
(b) | Includes nuclear fuel amortization of $77 million. |
(c) | Includes state tax payments. |
VISTRA ENERGY CORP. | |||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - 2020 GUIDANCE | |||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing | Asset Closure | Vistra Energy | |||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||
Net Income (loss) | $ | 849 | $ | 1,081 | $ | (95) | $ | (75) | $ | 754 | $ | 1,006 | |||||||||||
Income tax expense | 252 | 320 | — | — | 252 | 320 | |||||||||||||||||
Interest expense and related charges (a) | 463 | 463 | — | — | 463 | 463 | |||||||||||||||||
Depreciation and amortization (b) | 1,600 | 1,600 | — | — | 1,600 | 1,600 | |||||||||||||||||
EBITDA before Adjustments | $ | 3,164 | $ | 3,464 | $ | (95) | $ | (75) | $ | 3,069 | $ | 3,389 | |||||||||||
Unrealized net (gain)/loss resulting from hedging transactions | (29) | (29) | — | — | (29) | (29) | |||||||||||||||||
Impacts of Tax Receivable Agreement | 69 | 69 | — | — | 69 | 69 | |||||||||||||||||
Non-cash compensation expenses | 44 | 44 | — | — | 44 | 44 | |||||||||||||||||
Transition and merger expenses | 35 | 35 | — | — | 35 | 35 | |||||||||||||||||
Other, net | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Adjusted EBITDA guidance | $ | 3,285 | $ | 3,585 | $ | (95) | $ | (75) | $ | 3,190 | $ | 3,510 | |||||||||||
Interest paid, net | (543) | (543) | — | — | (543) | (543) | |||||||||||||||||
Tax (paid)/received (c) | 153 | 153 | — | — | 153 | 153 | |||||||||||||||||
Tax receivable agreement payments | (3) | (3) | — | — | (3) | (3) | |||||||||||||||||
Working capital and margin deposits | 2 | 2 | — | — | 2 | 2 | |||||||||||||||||
Reclamation and remediation | (60) | (60) | (126) | (126) | (186) | (186) | |||||||||||||||||
Other changes in other operating assets and liabilities | (80) | (80) | 31 | 31 | (49) | (49) | |||||||||||||||||
Cash provided by operating activities | $ | 2,754 | $ | 3,054 | $ | (190) | $ | (170) | $ | 2,564 | $ | 2,884 | |||||||||||
Capital expenditures including nuclear fuel purchases and LTSA Prepayments | (613) | (613) | — | — | (613) | (613) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | (315) | (315) | — | — | (315) | (315) | |||||||||||||||||
(Purchase)/sale of environmental credits and allowances | (39) | (39) | — | — | (39) | (39) | |||||||||||||||||
Other net investing activities | (20) | (20) | — | — | (20) | (20) | |||||||||||||||||
Free cash flow | $ | 1,767 | $ | 2,067 | $ | (190) | $ | (170) | $ | 1,577 | $ | 1,897 | |||||||||||
Working capital and margin deposits | (2) | (2) | — | — | (2) | (2) | |||||||||||||||||
Moss Landing development and other growth expenditures | 315 | 315 | — | — | 315 | 315 | |||||||||||||||||
Purchase/(sale) of environmental credits and allowances | 39 | 39 | — | — | 39 | 39 | |||||||||||||||||
Transition and merger expenses | 38 | 38 | — | — | 38 | 38 | |||||||||||||||||
Transition capital expenditures | 3 | 3 | — | — | 3 | 3 | |||||||||||||||||
Adjusted free cash flow before growth guidance | $ | 2,160 | $ | 2,460 | $ | (190) | $ | (170) | $ | 1,970 | $ | 2,290 |
____________ | |
(a) | Includes unrealized gain on interest rate swaps of $21 million. |
(b) | Includes nuclear fuel amortization of $77 million. |
(c) | Includes state tax payments. |
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SOURCE Vistra Energy Corp.
IRVING, Texas, Oct. 30, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) announced today that its Board of Directors has declared a quarterly dividend of $0.125 per share of Vistra's common stock, or $0.50 per share on an annualized basis. The dividend is payable on December 30, 2019 to shareholders of record as of December 16, 2019. The ex-dividend date will be December 13, 2019.
Media
Meranda Cohn
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Analysts
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About Vistra Energy
Vistra Energy (NYSE: VST) is a premier, integrated energy 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, Vistra operates in 20 states and the District of Columbia, and six of the seven competitive markets in the U.S., with about 5,400 employees. Vistra is one of the largest competitive residential electricity providers in the country, and its retail brands serve approximately 3.7 million residential, commercial, and industrial customers with electricity and gas. The company's generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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 its contemplated strategic and performance initiatives and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, Oct. 29, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) is continuing to take steps to reduce greenhouse gas emissions and combat climate change, announcing today its long-term emissions reduction targets1:
Vistra is well on its way to achieving its 2030 CO2 equivalent emissions reduction target. Following the merger with Dynegy in April 2018, Vistra meaningfully reduced the percentage of its total generation from coal assets, and its installed capacity is now nearly 70 percent low- to no-CO2-emitting natural gas, nuclear, and renewables. Since 2010 the combined portfolio has decreased CO2 equivalent emissions by more than 31 percent, taking nearly 170 million metric tons of CO2 equivalent emissions out of the air. In addition, Vistra has recently announced the anticipated retirement of approximately 2.5 GWs of coal assets in Illinois, which will further advance Vistra's progress toward achieving its long-term emissions reduction targets by reducing CO2 equivalents an additional approximately 11 percent compared to a 2010 baseline.
Notably, achieving the 80 percent reduction in CO2 equivalent emissions and, in particular, net-zero carbon emissions by 2050 will require a combination of advancements in technology, including carbon capture solutions, as well as the alignment of public policy with clean carbon goals and the adaptation of power grids and power markets to ensure reliability in a low to net-zero carbon emissions context. In this regard, Vistra believes a national or regional, economy-wide carbon fee is the ideal public policy solution to appropriately incentivize investments in carbon-free and carbon-reducing technologies. A nationwide or regional carbon fee that is market-based and consistently applied would allow companies to make strategic choices based on a uniform set of rules and, importantly, would eliminate the need for resource- and technology-specific subsidies. For example, Vistra supports Pennsylvania joining the Regional Greenhouse Gas Initiative to incentivize investments to reduce CO2 emissions rather than subsidies in support of specific resources and technologies. Vistra also supports a dividend to return all or a significant portion of the proceeds collected to those impacted by the fee as a part of any carbon fee program.
"Vistra acknowledges our business has an environmental footprint and we must be part of the solution to combat climate change while balancing the evolution of our generation fleet with our ability to provide cost-effective and reliable power to our customers. We have already taken substantial steps to reduce our CO2 footprint via plant retirements and through billions of dollars of investments in renewables, batteries, emissions control equipment, and other energy-efficient technologies. Our company, shareholders, communities, and customers are in a position to benefit from our evolving generation fleet and new technology investments," said Curt Morgan, Vistra's president and chief executive officer. "The necessary, broad-based steps to approach climate change must be balanced with the other critical societal issues such as poverty and unemployment. The U.S. has a successful history of adapting to change with market-based solutions and doing so without disruption to our economic system and associated prosperity. Climate change should be no different and as a practical matter will require both adaptation and mitigation activities to address the issue in an effective, orderly, and systematic manner. With the right public policies and regulatory oversight in place, combined with a market-based, competitive economic model, Vistra believes the country can effectively progress its efforts to combat climate change. Similarly, with this supportive backdrop, we believe our company can achieve its long-term emissions reduction targets while continuing to provide reliable and affordable power to our customers and meet all of our stakeholders' expectations."
Vistra has already taken or announced significant steps to transition the fuel-mix and reduce the emissions profile of its generation fleet, including:
In total, since 2010, Vistra and its predecessor companies have retired, or announced plans to retire, nearly 13 GW of fossil generation, including 14 coal generation plants and 3 natural gas generation plants.
In order to achieve its CO2 equivalent emissions reduction targets, Vistra expects its generation fleet will continue to evolve as older, more expensive technologies are replaced with investments in low- to no-carbon emissions technologies. Vistra also expects efficient natural gas fueled technologies will continue to play a key role in power generation through 2030 and beyond as the supply base transitions to a higher percentage of more intermittent renewable technologies. In fact, Vistra and other prominent industry experts believe efficient natural gas units will be critical to supplying the electricity needs of consumers as renewable penetration grows, especially through 2030, but also beyond. As a result, with its significant natural gas generation fleet and leading electric and natural gas retail business, Vistra believes it is well positioned for the climate change transition. Moreover, Vistra expects it will find attractive opportunities to participate in the transition by deploying a portion of its projected strong cash flows into new technologies, similar to the solar and battery investments it has recently made at its sites in Upton County, Texas and Moss Landing, California. Any such future investments should enable Vistra to maintain its strong financial position as the power generation space continues to evolve.
As further evidence of the commitment to place climate change as a high priority for the Company, Vistra is pleased to announce its recent governance enhancements formalizing the oversight of its sustainability program. In July the company named a chief sustainability officer, Molly Sorg, who will continue to serve in her role as vice president of investor relations and will also oversee Vistra's strategic efforts regarding our environmental, social, and governance activities. In addition, the board of directors has expanded the responsibility of the risk committee to include the oversight of the company's sustainability practices and policies, including Vistra's progress toward achieving the CO2 equivalent emissions reduction targets announced today. This committee will now be referred to as the sustainability and risk committee.
Additional information about Vistra's sustainability activities can be found on the Vistra website at https://www.vistraenergy.com/sustainability/.
1 Company-wide targets are for Scope 1 emissions. Vistra took the Paris Climate Agreement into consideration when setting its targets.
Media
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy Corp (NYSE: VST) is a premier, integrated energy 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, Vistra operates in 20 states and the District of Columbia, and six of the seven competitive markets in the U.S., with about 5,400 employees. Vistra is one of the largest competitive residential electricity providers in the country, and its retail brands serve approximately 3.7 million residential, commercial, and industrial customers with electricity and gas. The company's generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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 its contemplated strategic and performance initiatives and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, Oct. 24, 2019 /PRNewswire/ -- TXU Energy wants customers impacted by recent storms to know that we're here to help.
TXU Energy will work with individual customers impacted by the storm to:
Additionally, bill-payment assistance is also available through TXU Energy Aid. The funds, which are donated by the company, its employees, and customers, are allocated to existing TXU Energy Aid agency partners serving North Texas.
To take advantage of this assistance, TXU Energy customers affected by the storm should call 2-1-1 or visit 211texas.org.
"Sunday's tornadoes were devastating for thousands of people, many of whom also dealt with damage from severe storms back in June," said Scott Hudson, president of TXU Energy. "We understand the financial hardships many of our customers are experiencing right now and we're here to help. As a North Texas company, TXU Energy is proud to help our neighbors in times of need."
In addition to the ongoing work of TXU Energy Aid, the company is collaborating with the Salvation Army and other agency partners by making financial donations where they can be the most impactful.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
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Jenny Lyon
214-875-8004
MediaHotline@txu.com
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SOURCE TXU Energy
IRVING, Texas, Oct. 15, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) plans to report its third quarter 2019 financial and operating results on Tuesday, November 5, 2019. Management will present the results during a webcast beginning at 8 a.m. ET (7 a.m. CT).
The live, listen-only webcast can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com under "Investor Relations" and then "Events & Presentations." For those unable to participate in the live event, a replay will be available on the Vistra Energy website for one year following the webcast.
Media
Meranda Cohn
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 energy 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, Vistra operates in 20 states and the District of Columbia, and six of the seven competitive markets in the U.S., with about 5,400 employees. Vistra is one of the largest competitive residential electricity providers in the country, and its retail brands serve approximately 3.7 million residential, commercial, and industrial customers with electricity and gas. The company's generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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SOURCE Vistra Energy
HOUSTON, Oct. 3, 2019 /PRNewswire/ -- TriEagle Energy is giving a year of free electricity to seven lucky Houston Dynamo fans. These fans, who entered online or enrolled in the company's "Power2Win" electricity plan, will be recognized at the final Houston Dynamo match of the season against the LA Galaxy at BBVA Stadium on Sunday, October 6.
With a value of nearly $1750, or $145 worth of free power every month, winners are thrilled to put that money to work elsewhere.
"I still can't believe it's true," said Houston Dynamo fan and sweepstakes winner, Stephanie Henry. "We will use money we would have spent on electricity to take an epic family vacation!"
Contestants entered the sweepstakes by selecting the TriEagle Energy "Power2Win" plan or completed an entry form at a stadium kiosk or online. Participants received two Dynamo tickets, Dynamo t-shirts and a chance to win free electricity each time the Dynamo won a home game.
"We're proud to create new ways for our customers to connect with their power provider and their favorite team," said John Smith, Director of Partnerships and Alliances for TriEagle Energy. "Sweepstakes like Power2Win is just one of the perks of being a TriEagle Energy customer."
TriEagle Energy is proud to be the Official Electricity Provider of the Houston Dynamo, Dash, and BBVA Stadium.
WHEN: | Sunday, October 6 |
3:00 p.m. – kickoff time | |
WHERE: | BBVA Stadium |
2200 Texas Ave, Houston, TX 77003 |
About TriEagle Energy
TriEagle Energy is a Texas-based retail energy provider offering electricity service to residential and commercial customers. With innovative products, outstanding customer service, and transparent pricing, thousands have entrusted their power needs to TriEagle since 2003. TriEagle is a Better Business Bureau Accredited Business and an active member of the Retail Energy Supply Association (RESA). Visit trieagleenergy.com and vistraenergy.com for additional information. TriEagle Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10064
About the Houston Dynamo
The Houston Dynamo are a Major League Soccer club that has won two MLS Cup championships, one Lamar Hunt U.S. Open Cup and four conference championships in its first 13 seasons and has qualified to represent the United States in international competition seven times. The Dynamo have advanced to the Conference Championship series seven times in 13 years, the most of any Major League Soccer team since 2006; and the club's 33 playoff games are tied for the most in MLS over that time span. The team trains on the Champions' Field at Houston Sports Park (HSP), the premier training facility in Southeast Texas, and plays at BBVA Stadium in downtown Houston. For more information, log on to HoustonDynamo.com or call (713) 276-7500.
Media
Jenny Lyon
214-875-8004
Media.Relations@vistraenergy.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
View original content:http://www.prnewswire.com/news-releases/trieagle-energy-gives-entire-year-of-free-electricity-to-houston-dynamo-fans-300930928.html
SOURCE TriEagle Energy
IRVING, Texas, Sept. 24, 2019 /PRNewswire/ -- TXU Energy today announced that it has recognized five North Texas organizations as winners in the TXU Energy Leadership Award Program. This program recognizes corporate and nonprofit leaders in categories including energy management, innovation, community, sustainability and engagement. The awards were announced in conjunction with the TXU Energy Summit held today in Arlington.
"These businesses and organizations are setting the standard for energy responsibility and providing an excellent roadmap for their peers to achieve similar success in their operations," said Gabe Castro, TXU Energy vice president of business markets. "We're proud to partner with these customers to help them achieve their sustainability goals and applaud them as they continue to focus on energy leadership."
The five North Texas-area winners include:
Leadership in Energy Management- Fort Worth ISD
Fort Worth Independent School District has demonstrated excellence in managing electricity consumption while minimizing environmental impact. Fort Worth ISD installed an onsite display of solar arrays, educating the public and inspiring others in the industry to follow its lead. The district saved $250,000 and 800,000 kWh's of energy by leveraging TXU Greenback rebates to install HVAC and control work, and strategically partnered with advisors to increase energy efficiency and manage electricity consumption. With 143 schools, Fort Worth ISD is shaping the future of our state. Showing leadership in energy management ensures that their future will be a bright one.
Leadership in Innovation- City of McKinney
From renewable power to energy efficiency, the City of McKinney has come up with innovative ways to manage the way it uses electricity, setting new standards for operational excellence. The City used grant money from the Department of Energy along with TXU Greenback rebates to include hybrid vehicles in the rotation of its city fleet. The City then extended that innovation, adding electric vehicle charging units at four public buildings. By investing in LED lighting and roofing projects, the City reduced energy usage and saw $155,000 in savings annually. Solar panels installed at Fire Station #6 saved 72,000 kWh annually. This stand-out community has been ranked the #1 Best Place to Live in America. The City's leadership in innovative, sustainable energy practices will certainly keep it that way.
Leadership in Community- The Salvation Army
Few organizations are so well-defined by their message as The Salvation Army. The words "Doing the Most Good" embody a non-profit committed to meeting the needs of communities, without discrimination. For more than 130 years, The Salvation Army has helped disaster survivors, provided shelter for the homeless, served veterans, and fought human trafficking. As a partner of TXU Energy Aid, The Salvation Army has assisted more than 10,000 TXU Energy customers to pay electricity bills with $2.6 million dollars, keeping homes powered and safe. Employees of TXU Energy and its parent company, Vistra Energy, are afforded volunteer opportunities with The Salvation Army through Vistra's United Way/TXU Energy Aid campaign.
Leadership in Sustainability- Hood Packaging
For more than 50 years, Hood Packaging has served customers with world-class commitment. Now, that commitment extends to renewable energy and efficiency. Hood Packaging installed variable frequency drives in its manufacturing center, reducing energy usage by 500,000 kWh, or the amount used by approximately 43 homes annually. Hood Packaging also installed more efficient packaging equipment, resulting in even greater energy savings of 1,200,000 kWh. These initiatives coupled with Hood Packaging's commitment to using 100% green energy set it apart from its peers in the packaging industry.
Leadership in Engagement- City of Irving
The City of Irving keeps efficiency and sustainability front of mind, creating momentum that translates into significant environmental impact. The City engages with residents through classes on recycling and hosts a Home Energy Fair to showcase solar panels, home efficiency audits, and green energy options. They will soon be implementing a new Green Neighbor Program that encourages residents to be mindful of their footprint on the environment. The City has also worked closely with Irving ISD to educate students on sustainability and green career choices. They've extended this effort by creating the City of Irving Environmental Career Symposium, to promote the advancement of environmental related careers and provide participants the opportunity to meet and engage with environmental professionals. Additionally, the City has participated in panel discussions and education sessions with other cities across the state through the Texas Municipal League's Annual Conference.
TXU Energy is proud to share the accomplishments of the recipients of its awards program. Awards were presented earlier this year to three South Texas-area businesses and organizations: Plains All American Pipeline, Magnolia ISD and Star of Hope. Learn more about what TXU Energy can do to help your business or organization achieve its energy and sustainability goals by visiting us on LinkedIn.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. TXU Energy is also committed to cultivating a dynamic and enjoyable workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
Media.relations@txu.com
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
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SOURCE TXU Energy
PEORIA, Ill., Sept. 16, 2019 /PRNewswire/ -- Illinois Power Resources Generating, LLC (IPRG), an affiliate of Luminant, the Sierra Club, Natural Resources Defense Council (NRDC), and Respiratory Health Association (RHA) are seeking approval of a proposed settlement of a Clean Air Act lawsuit brought by environmental organizations in 2013. The proposed settlement is subject to review and comment by the Department of Justice and USEPA, and review, approval and entry by the U.S. District Court for the Central District of Illinois. If approved and entered by the Court, the proposed settlement would provide for retirement of the Edwards plant by the end of 2022 (subject to regulatory approval) and millions of dollars in funding for projects that benefit Peoria-area communities.
In response, Sierra Club, NRDC, and RHA released the following joint statement:
"The proposed settlement announced today is an important milestone in improving air quality for families in Peoria and Central Illinois and allows an important period of time to support transition needs of the community and workers. We hope the Court will approve the settlement, and we look forward to working with the people of Peoria and surrounding communities to develop and implement the beneficial projects the settlement provides for."
In response, IPRG released the following statement:
"The proposed settlement resolves a long-running lawsuit while providing three years of certainty for the more than 70 employees working at the Edwards plant and, importantly, a transition period for the community to plan for the plant closure. IPRG and Edwards look forward to continuing to provide reliable power for Illinois for the next three years while supporting the communities where our employees live and work."
About Luminant
Luminant, a subsidiary of Vistra Energy (NYSE: VST), is a competitive power generation business, including mining, wholesale marketing and trading, and development operations. Luminant has approximately 41,000 megawatts of generation across 12 states, powered by a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company operates in six of the seven competitive markets in the U.S. Vistra Energy is a premier, integrated power company based in Texas, combining an innovative, customer-centric approach to retail with a focus on safe, reliable, and efficient power generation. Visit luminant.com and vistraenergy.com for additional information.
About Sierra Club
The Sierra Club is America's largest and most influential grassroots environmental organization, with more than 3.5 million members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.
About Natural Resources Defense Council
The Natural Resources Defense Council (NRDC) is an international nonprofit environmental organization with more than 3 million members and online activists. Since 1970, our lawyers, scientists, and other environmental specialists have worked to protect the world's natural resources, public health, and the environment. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, and Beijing. Visit us at www.nrdc.org and follow us on Twitter @NRDC.
About Respiratory Health Association
Respiratory Health Association (RHA) has been a public health leader in Illinois since 1906. RHA is committed to preventing lung disease, promoting clean air and helping people live better through education, research and policy change. We are one of the state's leading experts on the health consequences of air pollution and strong advocates for clean air protection and management policies. For more information, visit www.resphealth.org.
Media Contacts:
Illinois Power Resources Generating: Meranda Cohn, media.relations@luminant.com, 214.875.8004
Sierra Club: Renner Barsella, renner.barsella@sierraclub.org, 217.390.9394
Natural Resources Defense Council: Ivan Moreno, imoreno@nrdc.org, 312.651.7932
Respiratory Health Association: Erica Krutsch, ekrutsch@resphealth.org, 312.628.0225
SOURCE Illinois Power Resources Generating, LLC
IRVING, Texas, Sept. 3, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) announced today that its Board of Directors has declared a quarterly dividend of $0.125 per share of Vistra's common stock, or $0.50 per share on an annualized basis. The dividend is payable on September 30, 2019 to shareholders of record as of September 16, 2019. The ex-dividend date will be September 13, 2019.
Media
Meranda Cohn
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 energy 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, Vistra operates in 20 states and the District of Columbia, and six of the seven competitive markets in the U.S., with about 5,400 employees. Vistra is one of the largest competitive residential electricity providers in the country, and its retail brands serve approximately 3.7 million residential, commercial, and industrial customers with electricity and gas. The company's generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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 its contemplated strategic and performance initiatives and to successfully integrate acquired businesses ; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, Aug. 21, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) and its subsidiaries today announced the four power plants that will retire in order to meet the requirements of the recently approved revisions to the Multi-Pollutant Standard rule imposed by the Illinois Pollution Control Board (IPCB). Without this rule change, the company's entire downstate fleet was at risk of near imminent retirement. The company will close the following four coal-fueled power plants in Illinois: Coffeen Power Plant, Duck Creek Power Plant (in Canton), Havana Power Plant, and Hennepin Power Plant.
These plant retirements are required by the revised MPS rule, which regulates emissions at eight power plants operated by Vistra subsidiaries. The revised rule, which also calls for a reduction in annual mass caps for SO2 and NOx, requires that the company permanently shut down 2,000 MW of capacity from the eight MPS group of plants by the end of the year, pending approval by grid operators, Midcontinent Independent System Operator (MISO) and PJM Interconnection, and approval of the termination of certain tariffs by the Federal Energy Regulatory Commission. In addition, the revised rule requires adjustments of these annual caps as additional power plant units are shut down or transferred. As a result, the retirement of the four plants will further reduce annual allowable SO2 and NOx emissions in the MPS group of plants, driving total allowable emissions down by 57 and 61 percent, respectively, from that allowed under the former MPS rule. While not explicitly required by the MPS, CO2 emissions will also be significantly reduced by approximately 40 percent relative to 2018 levels.
"Even though today's retirement announcements were inevitable due to the changing regulatory environment and unfavorable economic conditions in the MISO market, they are nonetheless difficult to make," said Curt Morgan, Vistra's president and chief executive officer. "By far, the hardest decisions we make in our business are those that significantly impact our people. As always, we will do right by those who are impacted by this announcement. Our employees take pride in the work they do, and we appreciate their decades of service providing reliable and affordable power to Illinois, particularly in years like this one with periods of extreme cold and heat."
The decision to retire these four plants resulted from a plant-by-plant analysis that evaluated several factors in making retirement decisions, including ensuring compliance with the new emissions caps set forth in the revised MPS rule, plant economics, federal energy regulations, and MISO market rules. In addition, consideration was given to prioritize retirement of higher emitting plants as suggested by the IEPA and IPCB along with the other factors listed above which resulted in a balanced mix of higher and lower emitting plant retirements.
As part of the closure process, the company is filing the required notices with MISO, PJM, and the Federal Energy Regulatory Commission. If it is determined that the units are not needed for reliability, Vistra expects to cease operations at all four sites by the end of the year. The company will take the necessary steps to responsibly decommission the facilities in accordance with all federal and state regulations.
Approximately 300 jobs will be eliminated across the four plant sites. Vistra is providing outplacement services and working with state workforce agencies to assist the employees impacted by the closures.
Future of Plant Sites and Vistra's Illinois Business
Plant closures can have detrimental impacts to the communities in which they are located, but Vistra aims to mitigate this impact by growing its Illinois business with newer technologies. To that end, the company continues to strongly support legislation that would provide a pathway to reinvest and repurpose its existing coal-fueled power plant sites into solar and battery energy storage facilities. Vistra has a demonstrated history of developing these new technologies in Texas and California and, through the Coal to Solar and Energy Storage Act of 2019, could do the same in Illinois. This legislation would allow the company to reuse substantial transmission infrastructure and its existing footprint of available land at its coal-fueled power plants to develop renewable energy facilities, mitigating employment and property tax impacts to plant communities and helping Illinois meet its clean energy goals.
Vistra is hopeful that the Illinois General Assembly will take up the Coal to Solar and Energy Storage Act during its fall Veto Session.
More on the MPS-Impacted Power Plants
Coffeen Power Plant
Coffeen, IL
Approx. 95 Employees
915 MW
Age: ~54 years (1965)
Duck Creek Power Plant
Canton, IL
Approx. 60 Employees
425 MW
Age: ~43 years (1976)
Havana Power Plant
Havana, IL
Approx. 75 Employees
434 MW
Age: ~41 years (1978)
Hennepin Power Plant
Hennepin, IL
Approx. 60 Employees
294 MW
Age: ~66 years (1953)
Media
Meranda Cohn
Media.Relations@vistraenergy.com
214-875-8004
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy (NYSE: VST) is a premier, integrated energy 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, Vistra operates in 20 states and the District of Columbia, and six of the seven competitive markets in the U.S., with about 5,400 employees. Vistra is one of the largest competitive residential electricity providers in the country, and its retail brands serve approximately 3.7 million residential, commercial, and industrial customers with electricity and gas. The company's generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
View original content:http://www.prnewswire.com/news-releases/vistra-energy-to-close-four-illinois-power-plants-300904904.html
SOURCE Vistra Energy
IRVING, Texas, Aug. 20, 2019 /PRNewswire/ -- Today, Vistra Energy (NYSE: VST) announced it has entered into an agreement to acquire Ambit Energy for $475 million plus net working capital in an all-cash transaction. Following the closing of the transaction, Vistra's share of the ERCOT residential market will grow from approximately 25 percent to approximately 32 percent and an industry-leading 26 percent in all U.S. competitive markets.
"Ambit is a very attractive standalone retail company and a great match for Vistra's retail business, given its leading direct selling capability and its proprietary technology platform. Importantly, Ambit's retail load is nearly two-thirds in the ERCOT market, followed by PJM and the northeast, and this load is 90 percent comprised of residential and small business customers," said Curt Morgan, Vistra's president and chief executive officer. "This acquisition offers significant benefits including consequential synergies and a material enhancement of Vistra's generation to retail load match, with total customers reaching nearly 5 million, and our expected returns from the transaction representing a superior use of capital. Given the attractive EBITDA to free cash flow conversion profile of the business, we expect the transaction to have a minimal impact on Vistra's credit metrics and our capital allocation plan moving forward."
Ambit is headquartered in Dallas, Texas and serves approximately 1.1 million residential customer equivalents in 17 states. The North Texas overlap of administrative functions will uniquely position Vistra to capture synergies and enable the teams to quickly integrate operations. Vistra expects the Ambit business will contribute approximately $125 million to adjusted EBITDA after the full run-rate of approximately $25 million of anticipated annual synergies is achieved.
Transaction Highlights
Transaction and Approvals
In addition to satisfying the closing conditions and consents customary for a transaction of this nature, the transaction is also subject to applicable regulatory approvals, including the expiration or termination of any applicable waiting period under the United States Hart-Scott-Rodino Antitrust Improvements Act, and approval by the Federal Energy Regulatory Commission (FERC).
Pending the receipt of all necessary approvals and the fulfillment of all other customary closing conditions, the parties expect the transaction to close by year end 2019.
Additional Information
Vistra has posted a presentation with additional details of the transaction on the investor relations section of its website at www.vistraenergy.com.
Advisors
Scotiabank is serving as financial advisor and Munsch Hardt Kopf & Harr PC is serving as legal advisor to Ambit.
Latham & Watkins LLP is serving as legal advisor to Vistra.
Media
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy Corp (NYSE: VST) is a premier, integrated energy 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, Vistra operates in 20 states and the District of Columbia, and six of the seven competitive markets in the U.S., with about 5,400 employees. Vistra is one of the largest competitive residential electricity providers in the country, and its retail brands serve approximately 3.7 million residential, commercial, and industrial customers with electricity and gas. The company's generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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 its contemplated strategic and performance initiatives and to successfully integrate acquired businesses; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, Aug. 2, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):
Financial Highlights
Capital Allocation Highlights
Corporate and Growth Highlights
(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. |
(2) Excludes the impact of the partial buybacks of the Odessa earnout of $(10) million. 2Q18 includes Dynegy contribution beginning April 9, 2018. |
(3) Excludes the Asset Closure segment. Includes $430 million of value lever targets expected to be realized in 2019 as compared to the projected full run-rate of Adjusted EBITDA value lever targets of $565 million. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
(4) Shares outstanding reflect the issuance of approximately 18.8 million shares on July 1, 2019 in connection with the settlement of the Tangible Equity Units (TEUs). |
Summary of Financial Results for the Second Quarter Ended June 30, 2019
Three Months Ended | Six Months Ended | ||||
($ in millions) | June 30, 2019 | June 30, 20182 | June 30, 2019 | ||
Net Income | $ 354 | $ 105 | $ 578 | ||
Ongoing Operations Net Income1 | $ 369 | $ 103 | $ 607 | ||
Ongoing Operations Adjusted EBITDA1 | $ 707 | $ 6633 | $ 1,522 |
(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. |
(2) Includes Dynegy contribution beginning April 9, 2018. |
(3) Excludes the impact of the partial buybacks of the Odessa earnout of $(10) million. |
For the three months ended June 30, 2019, Vistra reported Net Income from Ongoing Operations of $369 million and Adjusted EBITDA from Ongoing Operations of $707 million. Vistra's second quarter Adjusted EBITDA was $44 million higher than second quarter 2018 driven by higher retail margin quarter-over-quarter due to seasonal power cost timing.
For the first half of 2019, Vistra reported Net Income from Ongoing Operations of $607 million and Adjusted EBITDA from Ongoing Operations of $1,522 million. First half results were in-line with management expectations.
"Vistra performed well in the first half of 2019, delivering solid results in a challenging wholesale power price environment, which further demonstrates the effectiveness of our integrated model. A few weeks ago, we completed the acquisition of Crius Energy, expanding our retail operations to now serve 19 states and the District of Columbia," Curt Morgan, Vistra's chief executive officer, commented. "We have exhibited a strong focus on execution in the first half of 2019, and we believe we are well-positioned to continue to create value for our shareholders as we progress through the important peak summer period."
Morgan further stated, "Vistra remains steadfastly focused on a balanced capital allocation plan with an emphasis on returning capital to shareholders and debt reduction, with a disciplined approach and high return threshold for investments."
Crius Acquisition
Vistra completed the acquisition of the Crius Energy business on July 15, 2019. Vistra believes this acquisition expands Vistra into higher margin channels outside of ERCOT, improves Vistra's generation-to-load match to approximately 48 percent, an approximately 12 percent increase since the Dynegy merger, and creates a platform for future growth. Vistra estimates the Crius portfolio will contribute approximately $50 million to its Ongoing Operations Adjusted EBITDA in 2019.
Guidance
($ in millions) | 2019 | ||
Ongoing Ops. Adj. EBITDA1 | $ | 3,220 – 3,420 | |
Ongoing Ops. Adj. FCFbG1 | $ | 2,100 – 2,300 |
(1) Excludes the Asset Closure segment. Includes $430 million of value lever targets expected to be realized in 2019 as compared to the projected full run-rate of Adjusted EBITDA value lever targets of $565 million. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
Vistra is reaffirming 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. The 2019 guidance was originally developed utilizing forward curves as of March 30, 2018 and reaffirmed utilizing forward curves as of June 28, 2019.
Share Repurchase Program
As of July 25, 2019, Vistra has completed approximately $1.29 billion of the $1.75 billion share repurchase program previously authorized by its board of directors. Vistra has purchased approximately 54 million shares, resulting in net shares outstanding of approximately 492 million1 as of July 25, 2019. Approximately $462 million remains available for execution under the program as of the same date.
(1) Shares outstanding reflect the issuance of approximately 18.8 million shares on July 1, 2019 in connection with the settlement of the Tangible Equity Units (TEUs). |
Financing Update
In June 2019, Vistra used the net proceeds from the issuance of $2 billion aggregate principal amount of senior secured notes—issued by Vistra Operations Company LLC, a wholly owned, indirect subsidiary of Vistra, consisting of $1.2 billion of 3.550% senior notes due 2024 and $800 million of 4.300% senior notes due 2029—plus cash on hand, to repay $2 billion aggregate principal amount of term loans under our credit facility (approximately $889 million, $977 million, and $134 million of Term Loan B-1, B-2, and B-3 respectively.)
In addition, in June 2019, Vistra Operations issued and sold $1.3 billion aggregate principal amount of 5.00% senior unsecured notes due 2027, the net proceeds of which were used to (i) purchase approximately $173 million of Vistra's 7.375% senior unsecured notes due 2022 and $673 million of Vistra's 7.625% senior unsecured notes due 2024 (including $1 million of late tenders settled in July 2019), and (ii) redeem all of Vistra's outstanding 7.375% senior unsecured notes due 2022 (approximately $306 million) and another approximately $87 million of Vistra's outstanding 7.625% senior unsecured notes due 2024.
As a result of these transactions, Vistra reduced its annual interest expense on a pre-tax basis by approximately $50 million and extended the average maturity of its outstanding senior notes.
Liquidity
As of June 30, 2019, Vistra had total available liquidity of approximately $3.14 billion, including cash and cash equivalents of $964 million and $2,173 million of availability under its revolving credit facility, which remained undrawn but had $552 million of letters of credit outstanding as of June 30, 2019 that reduce availability.
The increase in available liquidity of $1,366 million as of June 30, 2019, as compared to Dec. 31, 2018, was primarily driven by $500 million of available capacity under our two alternate letter of credit facilities, $225 million of additional available commitments under our revolving credit facility, and decreased letters of credit postings.
Earnings Webcast
Vistra will host a webcast today, August 2, 2019, 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 impacts, 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
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy Corp (NYSE: VST) is a premier, integrated energy 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, Vistra operates in 20 states and the District of Columbia, and six of the seven competitive markets in the U.S., with about 5,400 employees. Vistra is one of the largest competitive residential electricity providers in the country, and its retail brands serve approximately 3.7 million residential, commercial, and industrial customers with electricity and gas. The company's generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, (iv) with respect to the Crius acquisition, the ability for Vistra to successfully integrate the Crius business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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 June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating revenues | $ | 2,832 | $ | 2,574 | $ | 5,755 | $ | 3,338 | |||||||
Fuel, purchased power costs and delivery fees | (1,139) | (1,216) | (2,600) | (1,866) | |||||||||||
Operating costs | (370) | (386) | (755) | (580) | |||||||||||
Depreciation and amortization | (384) | (389) | (790) | (542) | |||||||||||
Selling, general and administrative expenses | (210) | (352) | (392) | (514) | |||||||||||
Operating income (loss) | 729 | 231 | 1,218 | (164) | |||||||||||
Other income | 13 | 7 | 39 | 18 | |||||||||||
Other deductions | (2) | (1) | (5) | (3) | |||||||||||
Interest expense and related charges | (274) | (146) | (495) | (137) | |||||||||||
Impacts of Tax Receivable Agreement | 33 | (64) | 36 | (82) | |||||||||||
Equity in earnings of unconsolidated investment | 3 | 4 | 10 | 4 | |||||||||||
Income (loss) before income taxes | 502 | 31 | 803 | (364) | |||||||||||
Income tax (expense) benefit | (148) | 74 | (225) | 163 | |||||||||||
Net income (loss) | $ | 354 | $ | 105 | $ | 578 | $ | (201) | |||||||
Net loss attributable to noncontrolling interest | 2 | 3 | 3 | 3 | |||||||||||
Net income (loss) attributable to Vistra Energy | $ | 356 | $ | 108 | $ | 581 | $ | (198) |
VISTRA ENERGY CORP. CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (Millions of Dollars) | |||||||
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Cash flows — operating activities: | |||||||
Net income (loss) | $ | 578 | $ | (201) | |||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 886 | 619 | |||||
Deferred income tax (benefit) expense, net | 217 | (159) | |||||
Unrealized net (gain) loss from mark-to-market valuations of commodities | (703) | 199 | |||||
Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps | 199 | (86) | |||||
Asset retirement obligation accretion expense | 27 | 44 | |||||
Impacts of Tax Receivable Agreement | (36) | 82 | |||||
Stock-based compensation | 24 | 59 | |||||
Other, net | 73 | (6) | |||||
Changes in operating assets and liabilities: | |||||||
Margin deposits, net | 112 | (61) | |||||
Accrued interest | 6 | (74) | |||||
Accrued taxes | (67) | (112) | |||||
Accrued employee incentive | (72) | (31) | |||||
Other operating assets and liabilities | (362) | (302) | |||||
Cash provided by (used in) operating activities | 882 | (29) | |||||
Cash flows — financing activities: | |||||||
Issuances of long-term debt | 4,600 | — | |||||
Repayments/repurchases of debt | (4,137) | (1,338) | |||||
Net borrowings under accounts receivable securitization program | 91 | — | |||||
Stock repurchase | (457) | (63) | |||||
Dividends paid to stockholders | (120) | — | |||||
Debt tender offer and other financing fees | (146) | (46) | |||||
Other, net | (1) | 4 | |||||
Cash used in financing activities | (170) | (1,443) | |||||
Cash flows — investing activities: | |||||||
Capital expenditures, including LTSA prepayments | (247) | (153) | |||||
Nuclear fuel purchases | (20) | (28) | |||||
Development and growth expenditures | (36) | (21) | |||||
Cash acquired in the Merger | — | 445 | |||||
Proceeds from sales of nuclear decommissioning trust fund securities | 292 | 93 | |||||
Investments in nuclear decommissioning trust fund securities | (302) | (103) | |||||
Proceeds from sale of environmental allowances | 31 | — | |||||
Purchases of environmental allowances | (138) | (1) | |||||
Other, net | 21 | 10 | |||||
Cash (used in) provided by investing activities | (399) | 242 | |||||
Net change in cash, cash equivalents and restricted cash | 313 | (1,230) | |||||
Cash, cash equivalents and restricted cash — beginning balance | 693 | 2,046 | |||||
Cash, cash equivalents and restricted cash — ending balance | $ | 1,006 | $ | 816 |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE THREE MONTHS ENDED JUNE 30, 2019 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||
Net income (loss) | $ | (585) | $ | 1,056 | $ | 183 | $ | 79 | $ | 35 | $ | (399) | $ | 369 | $ | (15) | $ | 354 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 148 | 148 | — | 148 | ||||||||||||||||||||||||||
Interest expense and related charges | 4 | (3) | 3 | 1 | 2 | 267 | 274 | — | 274 | ||||||||||||||||||||||||||
Depreciation and amortization (a) | 59 | 143 | 134 | 39 | 3 | 21 | 399 | — | 399 | ||||||||||||||||||||||||||
EBITDA before Adjustments | (522) | 1,196 | 320 | 119 | 40 | 37 | 1,190 | (15) | 1,175 | ||||||||||||||||||||||||||
Unrealized net (gain) or loss resulting from hedging transactions | 797 | (1,047) | (163) | (32) | (65) | (7) | (517) | — | (517) | ||||||||||||||||||||||||||
Fresh start / purchase accounting impacts | 15 | (1) | 2 | 1 | 4 | (1) | 20 | — | 20 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | (33) | (33) | — | (33) | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 11 | 11 | — | 11 | ||||||||||||||||||||||||||
Transition and merger expenses | — | 5 | 1 | 1 | 17 | 3 | 27 | — | 27 | ||||||||||||||||||||||||||
Other, net | 3 | 3 | 7 | 2 | 5 | (11) | 9 | — | 9 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 293 | $ | 156 | $ | 167 | $ | 91 | $ | 1 | $ | (1) | $ | 707 | $ | (15) | $ | 692 |
___________ |
(a) Includes nuclear fuel amortization of $15 million in ERCOT. |
VISTRA ENERGY CORP. | |||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED JUNE 30, 2019 | |||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||
Net income (loss) | $ | (571) | $ | 1,356 | $ | 346 | $ | 100 | $ | 46 | $ | (670) | $ | 607 | $ | (29) | $ | 578 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 225 | 225 | — | 225 | ||||||||||||||||||||||||||
Interest expense and related charges | 8 | (5) | 5 | 1 | 3 | 483 | 495 | — | 495 | ||||||||||||||||||||||||||
Depreciation and amortization (a) | 118 | 293 | 265 | 104 | 7 | 37 | 824 | — | 824 | ||||||||||||||||||||||||||
EBITDA before Adjustments | (445) | 1,644 | 616 | 205 | 56 | 75 | 2,151 | (29) | 2,122 | ||||||||||||||||||||||||||
Unrealized net (gain) or loss resulting from hedging transactions | 961 | (1,298) | (255) | (38) | (50) | (23) | (703) | — | (703) | ||||||||||||||||||||||||||
Fresh start / purchase accounting impacts | 29 | — | (5) | 3 | 8 | (2) | 33 | — | 33 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | (36) | (36) | — | (36) | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 24 | 24 | — | 24 | ||||||||||||||||||||||||||
Transition and merger expenses | — | 6 | 3 | 2 | 24 | 9 | 44 | — | 44 | ||||||||||||||||||||||||||
Other, net | 5 | 8 | 9 | 5 | 10 | (28) | 9 | 1 | 10 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 550 | $ | 360 | $ | 368 | $ | 177 | $ | 48 | $ | 19 | $ | 1,522 | $ | (28) | $ | 1,494 |
___________ |
(a) Includes nuclear fuel amortization of $34 million in ERCOT. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE THREE MONTHS ENDED JUNE 30, 2018 (Unaudited) (Millions of Dollars) | ||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Consolidated | ||||||||||||||||||||||||||||
Net income (loss) | $ | (288) | $ | 679 | $ | 23 | $ | (5) | $ | 31 | $ | (337) | $ | 103 | $ | 2 | $ | 105 | ||||||||||||||||||
Income tax benefit | — | — | — | — | — | (74) | (74) | — | (74) | |||||||||||||||||||||||||||
Interest expense and related charges | — | 7 | 2 | 1 | — | 136 | 146 | — | 146 | |||||||||||||||||||||||||||
Depreciation and amortization (a) | 80 | 128 | 125 | 49 | 3 | 24 | 409 | — | 409 | |||||||||||||||||||||||||||
EBITDA before Adjustments | (208) | 814 | 150 | 45 | 34 | (251) | 584 | 2 | 586 | |||||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | 462 | (667) | (1) | 22 | (32) | — | (216) | — | (216) | |||||||||||||||||||||||||||
Fresh start/purchase accounting impacts | 15 | (2) | (1) | 4 | 8 | — | 24 | 1 | 25 | |||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 64 | 64 | — | 64 | |||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 42 | 42 | — | 42 | |||||||||||||||||||||||||||
Transition and merger expenses | — | 2 | 1 | — | 3 | 148 | 154 | 2 | 156 | |||||||||||||||||||||||||||
Other, net | (9) | (4) | 5 | 3 | 5 | 1 | 1 | — | 1 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 260 | $ | 143 | $ | 154 | $ | 74 | $ | 18 | $ | 4 | $ | 653 | $ | 5 | $ | 658 |
____________ |
(a) Includes nuclear fuel amortization of $20 million in the ERCOT segment. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE SIX MONTHS ENDED JUNE 30, 2018 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | 483 | $ | (407) | $ | 23 | $ | (5) | $ | 31 | $ | (306) | $ | (181) | $ | (20) | $ | (201) | |||||||||||||||||
Income tax benefit | — | — | — | — | — | (163) | (163) | — | (163) | ||||||||||||||||||||||||||
Interest expense and related charges | 1 | 15 | 2 | 1 | — | 118 | 137 | — | 137 | ||||||||||||||||||||||||||
Depreciation and amortization (a) | 157 | 213 | 125 | 49 | 3 | 35 | 582 | — | 582 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 641 | (179) | 150 | 45 | 34 | (316) | 375 | (20) | 355 | ||||||||||||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (193) | 403 | (1) | 22 | (32) | — | 199 | — | 199 | ||||||||||||||||||||||||||
Fresh start/purchase accounting impacts | 27 | (4) | (1) | 4 | 8 | — | 34 | 1 | 35 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 82 | 82 | — | 82 | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 48 | 48 | — | 48 | ||||||||||||||||||||||||||
Transition and merger expenses | — | 4 | 1 | — | 3 | 174 | 182 | 2 | 184 | ||||||||||||||||||||||||||
Other, net | (21) | (12) | 5 | 3 | 5 | 16 | (4) | — | (4) | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 454 | $ | 212 | $ | 154 | $ | 74 | $ | 18 | $ | 4 | $ | 916 | $ | (17) | $ | 899 |
____________ |
(b) Includes nuclear fuel amortization of $40 million in the ERCOT segment. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - 2019 GUIDANCE (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing | Asset Closure | Vistra Energy | |||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||
Net Income (loss) | $ | 1,331 | $ | 1,486 | $ | (66) | $ | (56) | $ | 1,265 | $ | 1,430 | |||||||||||
Income tax expense | 363 | 408 | — | — | 363 | 408 | |||||||||||||||||
Interest expense and related charges | 740 | 740 | — | — | 740 | 740 | |||||||||||||||||
Depreciation and amortization | 1,565 | 1,565 | — | — | 1,565 | 1,565 | |||||||||||||||||
EBITDA before adjustments | $ | 3,999 | $ | 4,199 | $ | (66) | $ | (56) | $ | 3,933 | $ | 4,143 | |||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (917) | (917) | — | — | (917) | (917) | |||||||||||||||||
Fresh start / purchase accounting impacts | 26 | 26 | — | — | 26 | 26 | |||||||||||||||||
Impacts of Tax Receivable Agreement | (9) | (9) | — | — | (9) | (9) | |||||||||||||||||
Transition and merger expenses | 62 | 62 | — | — | 62 | 62 | |||||||||||||||||
Other, net | 59 | 59 | 1 | 1 | 60 | 60 | |||||||||||||||||
Adjusted EBITDA guidance | $ | 3,220 | $ | 3,420 | $ | (65) | $ | (55) | $ | 3,155 | $ | 3,365 | |||||||||||
Interest paid, net | (506) | (506) | — | — | (506) | (506) | |||||||||||||||||
Tax (paid) / received (a) | 108 | 108 | — | — | 108 | 108 | |||||||||||||||||
Working capital and margin deposits | 103 | 103 | (3) | (3) | 100 | 100 | |||||||||||||||||
Reclamation and remediation | (60) | (60) | (118) | (118) | (178) | (178) | |||||||||||||||||
Other changes in other operating assets and liabilities | (193) | (193) | 28 | 38 | (165) | (155) | |||||||||||||||||
Cash provided by operating activities | $ | 2,672 | $ | 2,872 | $ | (158) | $ | (138) | $ | 2,514 | $ | 2,734 | |||||||||||
Capital expenditures including nuclear fuel purchases and LTSA prepayments | (611) | (611) | — | — | (611) | (611) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | (127) | (127) | — | — | (127) | (127) | |||||||||||||||||
Other net investing activities | (17) | (17) | — | — | (17) | (17) | |||||||||||||||||
Free cash flow | $ | 1,917 | $ | 2,117 | $ | (158) | $ | (138) | $ | 1,759 | $ | 1,979 | |||||||||||
Working capital and margin deposits | (103) | (103) | 3 | 3 | (100) | (100) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | 127 | 127 | — | — | 127 | 127 | |||||||||||||||||
Transition and merger expenses | 126 | 126 | — | — | 126 | 126 | |||||||||||||||||
Transition capital expenditures | 33 | 33 | — | — | 33 | 33 | |||||||||||||||||
Adjusted free cash flow before growth guidance | $ | 2,100 | $ | 2,300 | $ | (155) | $ | (135) | $ | 1,945 | $ | 2,165 |
____________ |
(a) Includes state tax payments. |
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SOURCE Vistra Energy
IRVING, Texas, July 17, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) plans to report its second quarter 2019 financial and operating results on Friday, August 2, 2019. Management will present the results during a webcast beginning at 8 a.m. ET (7 a.m. CT).
The live, listen-only webcast can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com under "Investor Relations" and then "Events & Presentations." For those unable to participate in the live event, a replay will be available on the Vistra Energy website for one year following the webcast.
Media
Meranda Cohn
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 energy 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, Vistra operates in 20 states and the District of Columbia, and six of the seven competitive markets in the U.S., with about 5,400 employees. Vistra is one of the largest competitive residential electricity providers in the country, and its retail brands serve approximately 3.7 million residential, commercial, and industrial customers with electricity and gas. The company's generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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SOURCE Vistra Energy
IRVING, Texas and TORONTO, July 15, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) and Crius Energy Trust ("Crius Energy") (TSX: KWH.UN) today announced the successful completion of the previously announced acquisition by Vistra of the business of Crius Energy. The closing of the transaction follows the overwhelming approval of the transaction by Crius Energy unitholders at the special meeting of unitholders held on March 28, 2019, and the receipt of all required regulatory approvals, including approval from the Federal Energy Regulatory Commission on July 8, 2019. As a result of the closing today, Crius Energy unitholders are entitled to receive C$8.80 per trust unit upon the redemption of such units. In addition, Crius Energy unitholders that were holders of record on March 26, 2019 will receive C$0.209 per unit for the distribution previously declared by Crius Energy on Jan. 16, 2019. The combination of these amounts results in total cash payable to Crius Energy unitholders of C$9.009 per unit. Crius Energy expects that the distribution of C$0.209 per unit will be payable today, with the transaction consideration of C$8.80 payable within three business days of today's date. The units of Crius Energy are expected to be delisted from the Toronto Stock Exchange as of the close of markets on July 17, 2019, and Crius Energy is expected to be wound-up following the redemption of the trust units on July 18, 2019.
"We are excited to welcome the Crius Energy team and brands into our company," Vistra's President and Chief Executive Officer Curt Morgan commented. "We expect this transaction to be immediately accretive to Vistra on both an EBITDA per share and a free cash flow per share basis. The acquisition also accelerates our retail growth plans in the Midwest and Northeast and provides a platform for future growth in key markets where we have complementary generation."
Vistra's retail brands now serve approximately 3.7 million customers and 80 TWh of retail load annually across 19 states and the District of Columbia.
Media
Meranda Cohn
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 energy 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, Vistra operates in 20 states and the District of Columbia, and six of the seven competitive markets in the U.S., with about 5,400 employees. Vistra is one of the largest competitive residential electricity providers in the country, and its retail brands serve approximately 3.7 million residential, commercial, and industrial customers with electricity and gas. The company's generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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 its contemplated strategic and performance initiatives and to successfully integrate acquired businesses ; (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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, July 5, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) ("Vistra Energy") announced today the final results of its previously announced cash tender offers (the "Tender Offers") for any and all of its outstanding 7.375% Senior Notes due 2022 (the "2022 Notes") and up to $760,000,000 aggregate principal amount of its 7.625% Senior Notes due 2024 (the "2024 Notes" and, together with the 2022 Notes, the "Existing Notes"), upon the terms and subject to the conditions set forth in the Offer to Purchase, dated June 6, 2019 (the "Offer to Purchase").
According to information received from Global Bondholder Services Corporation ("GBSC"), the depositary and information agent for the Tender Offers, as of midnight, New York City time, on July 3, 2019 (the "Expiration Date"), Vistra Energy had received valid tenders from holders of the Existing Notes that were not validly withdrawn as set forth in the table below.
Title of Existing Notes | CUSIP | Aggregate Principal | Aggregate | Aggregate Principal | Aggregate Principal | Tender Offer |
7.375% Senior Notes | 26817RAN8 | $479,403,000 | N/A | $173,692,000 | $173,692,000 | N/A |
7.625% Senior Notes | 26817RAP3 | $1,147,075,000 | $760,000,000 | $671,503,000 | $672,829,000 | $1,025.00 |
(1) Per $1,000 principal amount of Existing Notes validly tendered and accepted for purchase by Vistra Energy. |
Because the aggregate principal amount of the 2024 Notes tendered at or prior to the Expiration Date (including those accepted for purchase as of the Early Tender Date) resulted in a 2024 Notes Maximum Tender Amount (as defined in the Offer to Purchase) that was less than $760,000,000, the 2024 Notes that were validly tendered and not validly withdrawn after the Early Tender Date but at or prior to the Expiration Date were accepted for purchase without proration (the "Additional Tendered Notes").
The Additional Tendered Notes were purchased on July 5, 2019.
Vistra Energy has called for redemption of all of the 2022 Notes that remain outstanding after the Tender Offers and an aggregate principal amount of $87,171,000 (subject to confirmation by GBSC) of 2024 Notes. We expect that the redemptions will occur on July 8, 2019 (the "Redemption Date") at the then-applicable redemption price of 103.688% of the principal amount of Notes redeemed (excluding accrued and unpaid interest, if any, to but excluding the Redemption Date) for the 2022 Notes and at a redemption price equal to 100% of the principal amount of Notes redeemed, plus the Applicable Premium (as defined in the indenture governing the 2024 Notes) as of the Redemption Date, and accrued and unpaid interest, if any, to but excluding the Redemption Date for the 2024 Notes.
Goldman Sachs & Co. LLC acted as the Lead Dealer Manager for the Tender Offers, and GBSC served as the Depositary and Information Agent for the Tender Offers.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities issued in connection with any notes offering, nor shall there be any sale of the securities issued in such an offering in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers of any such securities will be made in the United States only by means of a private offering memorandum pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
Media
Meranda Cohn
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 5,275 employees. Vistra's retail brands serve approximately 2.8 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 40,500 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
Cautionary Note Regarding Forward-Looking Statements
The information presented herein includes forward-looking statements. 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 (without limitation) 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; (iv) with respect to the proposed Crius Energy acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) Vistra Energy's ability to successfully integrate the Crius Energy business as currently projected; and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, June 27, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) today announced the settlement rate for the stock purchase contracts that are components of the 7.00% tangible equity units (NYSE: DYN.C). Vistra (as successor in interest to Dynegy Inc.) is party to that certain purchase contract agreement dated as of June 21, 2016 (as amended and supplemented, the "Purchase Contract Agreement"), by and between Vistra and Wilmington Trust, National Association, as the purchase contract agent and as the trustee.
In accordance with Section 4.01 of the Purchase Contract Agreement, holders of the stock purchase contracts will receive 4.0813 shares of Vistra common stock (the "Settlement Amount") for each stock purchase contract that they hold, with cash to be paid in lieu of any fractional shares at a rate of $22.5954 per share. The Settlement Amount is equal to the sum of the Daily Settlement Amounts for each of the 20 consecutive VWAP Trading Days during the Observation Period (in each case, as such term is defined in the Purchase Contract Agreement), which began on May 30, 2019 and ended on June 26, 2019.
On July 1, 2019, the final cash installment payment of $1.7500 payable per amortizing note, which are also components of the 7.00% tangible equity units, will be paid to each noteholder of record as of the close of business on June 15, 2019.
Media
Meranda Cohn
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 5,275 employees. Vistra's retail brands serve approximately 2.8 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 40,500 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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 (without limitation) 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, (iv) with respect to the proposed Crius Energy acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra Energy to successfully integrate the Crius Energy business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, June 20, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) ("Vistra Energy") announced today the results to date of its previously announced cash tender offers (the "Tender Offers") for any and all of its outstanding 7.375% Senior Notes due 2022 (the "2022 Notes") and up to $760,000,000 aggregate principal amount of its 7.625% Senior Notes due 2024 (the "2024 Notes" and, together with the 2022 Notes, the "Existing Notes"), upon the terms and subject to the conditions set forth in the Offer to Purchase, dated June 6, 2019 (the "Offer to Purchase").
According to information received from Global Bondholder Services Corporation, the depositary and information agent for the Tender Offers, as of 5:00 p.m., New York City time, on June 19, 2019 (the "Early Tender Date"), Vistra Energy had received valid tenders from holders of the Existing Notes that were not validly withdrawn as set forth in the table below.
Title of Existing Notes |
CUSIP Number |
Aggregate |
Aggregate Principal Amount Tender Cap |
Aggregate Principal |
Tender Offer Consideration |
Early Tender Premium (1) |
Total Consideration |
|
|
|
|
|
|
|
|
7.375% Senior Notes due 2022 |
26817RAN8 |
$479,403,000 |
N/A |
$173,692,000 |
$1,009.00 |
$30.00 |
$1,039.00 |
|
|
|
|
|
|
|
|
7.625% Senior Notes due 2024 |
26817RAP3 |
$1,147,075,000 |
$760,000,000 |
$671,503,000 |
$1,025.00 |
$30.00 |
$1,055.00 |
|
|
|
|
|
|
|
|
(1) |
Per $1,000 principal amount of Existing Notes validly tendered (and not validly withdrawn) and accepted for purchase by Vistra Energy. |
(2) |
Includes the Early Tender Premium (as defined in the Offer to Purchase) for Existing Notes validly tendered prior to the Early Tender Date (and not validly withdrawn) and accepted for purchase by Vistra Energy. |
The 2022 Notes that were validly tendered and not validly withdrawn at or prior to the Early Tender Date will be accepted for purchase without proration. Subject to the satisfaction or waiver of all remaining applicable conditions to the Tender Offers described in the Offer to Purchase having been either satisfied or waived by Vistra Energy, Vistra Energy intends to accept for purchase all tendered 2022 Notes. Because the aggregate principal amount of the 2024 Notes tendered at or prior to the Early Tender Date would result in a 2024 Notes Maximum Tender Amount (as defined in the Offer to Purchase) that is less than $760,000,000, the 2024 Notes that were validly tendered and not validly withdrawn at or prior to the Early Tender Date (the "Tendered 2024 Notes") will be accepted for purchase without proration. Subject to the satisfaction or waiver of all remaining applicable conditions to the Tender Offers described in the Offer to Purchase having been either satisfied or waived by Vistra Energy, Vistra Energy intends to accept for purchase all of the Tendered 2024 Notes.
The 2022 Notes and the Tendered 2024 Notes will be purchased on the "Early Settlement Date," which is currently expected to occur on June 21, 2019. The applicable Financing Condition (as defined in the Offer to Purchase) with respect to each Tender Offer is expected to be satisfied on June 21, 2019, upon the closing of Vistra Energy's previously announced offering of $1,300,000,000 in aggregate principal amount of 5.00% Senior Notes due 2027.
Full details of the terms and conditions of the Tender Offers are described in the Offer to Purchase and the accompanying Letter of Transmittal, which were sent by Vistra Energy to holders of the Existing Notes. Holders of the Existing Notes are encouraged to read these documents as they contain important information regarding the Tender Offers.
In addition, on June 6, 2019, the Company issued a conditional notice of redemption for all outstanding 2022 Notes that are not accepted for purchase in the applicable Tender Offer (the "2022 Notes Conditional Redemption Notice") and a conditional notice of redemption for a portion of the 2024 Notes up to an aggregate principal amount (the "Available Redemption Amount") that, when taken together with such aggregate principal amount of Tendered 2024 Notes, is equal to, but not in excess of, the 2024 Notes Maximum Tender Amount (the "2024 Notes Conditional Redemption Notice"). The 2022 Note Conditional Redemption Notice is conditioned upon, among other things, the satisfaction of the applicable Financing Condition, and provides that if the conditions to the Tender Offers are satisfied but less than all of the outstanding 2022 Notes are purchased in the applicable Tender Offer, the Company will redeem, under and pursuant to the indenture governing the 2022 Notes, all outstanding 2022 Notes (the "2022 Notes Redemption"). The 2024 Notes Conditional Redemption Notice is conditioned upon, among other things, the satisfaction of the applicable Financing Condition, and will provide that if the conditions to the Tender Offers are satisfied, the Company will redeem, under and pursuant to the indenture governing the 2024 Notes, certain outstanding 2024 Notes up to the Available Redemption Amount (the "2024 Notes Redemption" and, together with the 2022 Notes Redemption, the "Redemptions"). If the conditions to the Redemptions are satisfied, we expect that the Redemptions would occur on or about July 8, 2019 (the "Redemption Date") at the then-applicable redemption price of 103.688% of the principal amount of notes redeemed (excluding accrued and unpaid interest, if any, to but excluding the Redemption Date) for the 2022 Notes and at a redemption price equal to 100% of the principal amount of Notes redeemed, plus the Applicable Premium (as defined in the indenture governing the 2024 Notes) as of the Redemption Date, and accrued and unpaid interest, if any, to but excluding the Redemption Date for the 2024 Notes. In the event that the conditions specified in the 2022 Notes Conditional Redemption Notice and the 2024 Notes Conditional Redemption Notice are not satisfied, the 2022 Notes Redemption and the 2024 Notes Redemption, respectively, will not occur.
Vistra Energy has retained Goldman Sachs & Co. LLC to act as the Lead Dealer Manager for the Tender Offers. Global Bondholder Services Corporation has been retained to serve as the Depositary and Information Agent for the Tender Offers. Questions or requests for assistance regarding the terms of the Tender Offers should be directed to Goldman Sachs & Co. LLC at 200 West Street, New York, New York 10282, Attn: Liability Management Desk, (800) 828-3182 . Requests for the Offer to Purchase and other documents relating to the Tender Offers may be directed to Global Bondholder Services Corporation at 65 Broadway – Suite 404, New York, New York 10006, Attn: Corporate Actions, (212) 430-3774 (for banks and brokers) or (866) 470-3900 (for all others).
None of Vistra Energy, its board of directors or officers, the Lead Dealer Manager, the Depositary and Information Agent, or the Trustee or any of their respective affiliates is making any recommendation as to whether holders should tender any Existing Notes in response to the Tender Offers. Holders must make their own decision as to whether to tender their Existing Notes, and if so, the principal amount of Existing Notes as to which action is to be taken.
The Tender Offers are only being made by, and pursuant to, the Offer to Purchase and the accompanying Letter of Transmittal. This press release is neither an offer to purchase nor a solicitation of an offer to sell any Existing Notes in the Tender Offers. The Tender Offers are not being made to holders of Existing Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky, or other laws of such jurisdiction. In any jurisdiction in which the Tender Offers are required to be made by a licensed broker or dealer, the Tender Offers will be deemed to be made on behalf of Vistra Energy by the Lead Dealer Manager, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities issued in connection with any notes offering, nor shall there be any sale of the securities issued in such an offering in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers of any such securities will be made in the United States only by means of a private offering memorandum pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
Media
Meranda Cohn
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 5,275 employees. Vistra's retail brands serve approximately 2.8 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 40,500 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
Cautionary Note Regarding Forward-Looking Statements
The information presented herein includes forward-looking statements. 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 (without limitation) 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; (iv) with respect to the proposed Crius Energy acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) Vistra Energy's ability to successfully integrate the Crius Energy business as currently projected; and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy Corp.
IRVING, Texas, June 17, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST): On May 21, 2019, Vistra Energy Corp. (NYSE: VST) announced that its Board of Directors (the "Board") declared a quarterly dividend of $0.125 per share of Vistra common stock, or $0.50 per share on an annualized basis (the "Dividend"). In declaring the Dividend, the Board set June 13, 2019 as the ex-dividend date, June 14, 2019 as the record date, and June 28, 2019 as the payment date. Vistra (as successor in interest to Dynegy Inc.) is party to that certain purchase contract agreement dated as of June 21, 2016 (as amended and supplemented, the "Purchase Contract Agreement") by and between Vistra and Wilmington Trust, National Association, as the purchase contract agent and as the trustee, whereby Vistra is the issuer of the prepaid stock purchase contracts that form a component part of its 4,600,000 7.00% Tangible Equity Units ("TEUs").
Upon the payment of the Dividend to stockholders of record of Vistra, Vistra is required to adjust the Fixed Settlement Rates (as defined in the Purchase Contract Agreement) pursuant to Section 5.01(a)(iv) of the Purchase Contract Agreement (such adjustment, the "Adjustment"). Furthermore, pursuant to Section 5.03 of the Purchase Contract Agreement, the Adjustment shall be effective as of May 30, 2019, the first VWAP Trading Day of the current Observation Period (in each case, as defined in the Purchase Contract Agreement), resulting in the following:
The Adjustment effectively changes the Reference Price (as defined in the Purchase Contract Agreement) per share to $24.4933 from $24.6205 and the Threshold Appreciation Price (as defined in the Purchase Contract Agreement) to $30.2480 from $30.4053. Pursuant to the Purchase Contract Agreement, the Adjustment shall be made without duplication of any other adjustment or cash payment otherwise described in the Purchase Contract Agreement.
Media
Meranda Cohn
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 5,275 employees. Vistra's retail brands serve approximately 2.8 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 40,500 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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 (without limitation) 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, (iv) with respect to the proposed Crius Energy acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra Energy to successfully integrate the Crius Energy business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, June 12, 2019 /PRNewswire/ -- To help North Texans impacted following recent severe storms, TXU Energy announced today a series of steps it has taken to support customers.
TXU Energy will work with customers impacted by the storm to:
To take advantage of this assistance, TXU Energy customers affected by the storm should call 1-800-242-9113. The assistance is available until June 30.
"Hundreds of thousands of North Texans were impacted by the storm – and many continue to be impacted – due to widespread power outages," said Scott Hudson, president of TXU Energy. "We're proud to call North Texas home, and we don't want customers to worry about their electric bills. Our neighbors should have the resources they need in times of crisis."
Through the TXU Energy Aid program, TXU Energy is providing $200,000 to assist customers who need help with food, lodging, and bill-payment assistance in areas struck by the storm. These funds are being allocated to existing TXU Energy Aid partners serving Dallas-area communities.
Along with this donation, the TXU Energy Aid program will provide agencies the flexibility they need to assist customers. Those funds are donated by the company, its employees, and customers. All donations are returned to the local communities and can help customers impacted by the storm.
"People truly care about each other in North Texas, and the generosity of our residents, businesses, and community partners shines even brighter during times like this," said Teresa Jackson, founder and CEO, Sharing Life Community Outreach. "We extend our deepest thanks to TXU Energy for its efforts to support those who are most vulnerable when emergencies strike."
As one of the largest electric bill-payment assistance programs in the nation, TXU Energy Aid has helped Texas families going through hard times keep their homes powered and safe for over 35 years. For information on social service agencies providing assistance in a particular area, customers can call 211 and ask for bill-payment assistance.
Additionally, TXU Energy is providing a significant donation of trees to assist in replacing those lost in City of Dallas parks. The tree donation is being made through the company's longtime partnership with the Texas Trees Foundation. Since 2002, TXU Energy and its sister companies have provided nearly 300,000 trees to various partner communities.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Consecutively ranked as one of the Top Places to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
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SOURCE TXU Energy
IRVING, Texas, June 6, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the pricing of an upsized private offering (the "Offering") of $1.3 billion aggregate principal amount of senior notes due 2027 (the "New 2027 Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The New 2027 Notes will be senior, unsecured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The New 2027 Notes will bear interest at the rate of 5.00% per annum and will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries. The Offering is expected to close on June 21, 2019, subject to customary closing conditions. The purpose of the Offering is (i) to purchase and/or redeem for cash (a) any and all outstanding 2022 Notes (as defined below) and (b) a portion of outstanding 2024 Notes (as defined below) up to the 2024 Maximum Tender Amount (as defined below), (ii) to pay fees and expenses related to the Offering and incurred in connection with the Tender Offers (as defined below) and/or redemption and (iii) for general corporate purposes. The New 2027 Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
The Company also announced today that it is commencing cash tender offers (the "Tender Offers") to purchase (i) any and all of its outstanding principal amount of 7.375% Senior Notes due 2022 issued by Dynegy Inc. ("Dynegy"), as predecessor to Vistra Energy (the "2022 Notes"), and (ii) up to $760,000,000 aggregate principal amount (subject to increase or decrease by the Company, the"2024 Maximum Tender Amount") of its outstanding 7.625% Senior Notes due 2024 issued by Dynegy, as predecessor to Vistra Energy (the "2024 Notes" and together with the 2022 Notes, the "Notes").
The price offered in the Tender Offers and other information relating to the Tender Offers are set forth in the table below.
Dollars per $1,000 Principal Amount of Notes | |||||||
Issuer (1) | Title of Notes | CUSIP Number | Aggregate Principal | Aggregate Principal | Tender Offer | Early Tender | Total Consideration |
Vistra Energy Corp. | 2022 Notes | 26817RAN8 | $479,403,000 | N/A | $1,009.00 | $30.00 | $1,039.00 |
Vistra Energy Corp. | 2024 Notes | 26817RAP3 | $1,147,075,000 | $760,000,000 | $1,025.00 | $30.00 | $1,055.00 |
(1) | Vistra Energy Corp. is successor in interest to Dynegy Inc. as a result of their merger, which closed on April 9, 2018. |
(2) | Excludes accrued and unpaid interest, which will be paid in addition to the Tender Offer Consideration or the Total Consideration, as applicable. |
The Tender Offers are being made upon the terms and subject to the conditions set forth in the Offer to Purchase, dated June 6, 2019 (as the same may be amended or supplemented from time to time, the "Offer to Purchase"), including the applicable Financing Condition (as defined below) and in the related Letter of Transmittal (as the same may be amended or supplemented from time to time, the "Letter of Transmittal" and, together with the Offer to Purchase, the "Tender Offer Materials"). The Tender Offers are open to all registered Holders of the Notes. The Company reserves the right, but is under no obligation, to increase the 2024 Maximum Tender Amount, without extending withdrawal rights except as required by law. The amount of 2024 Notes to be purchased may be prorated as set forth in the Offer to Purchase.
Subject to the terms and conditions of the Tender Offers, each Holder who validly tenders and does not subsequently validly withdraw its Notes at or prior to 5:00 p.m., New York City time, on June 19, 2019 (the "Early Tender Date") will be entitled to receive the Total Consideration (as set forth in the table above), plus accrued and unpaid interest up to, but not including, the Early Settlement Date (as defined below) if and when such Notes are accepted for payment. Holders who validly tender their Notes after the Early Tender Date but at or prior to midnight, New York City time, on July 3, 2019, or such other date as the Company extends the Tender Offers (such date and time, as it may be extended, the "Expiration Date") will be entitled to receive only tender offer consideration (the "Tender Offer Consideration") equal to the Total Consideration less the Early Tender Premium (as set forth in the table above), plus accrued and unpaid interest up to, but not including, the applicable settlement date, if and when such Notes are accepted for payment.
Payments for the Notes purchased will include accrued and unpaid interest from and including the last interest payment date applicable to the relevant series of Notes up to, but not including, the applicable settlement date for such Notes accepted for purchase. The settlement date for the Notes that are validly tendered on or prior to the Early Tender Date is expected to be June 21, 2019, two business days following the scheduled Early Tender Date (the "Early Settlement Date"). The settlement date for the Notes that are validly tendered following the Early Tender Date but on or prior to the Expiration Date is expected to be July 5, 2019, one business day following the scheduled Expiration Date (the "Final Settlement Date").
Vistra Energy's obligation to accept for purchase, and to pay for, the Notes validly tendered pursuant to the Tender Offers is subject to, and conditioned upon, among other things, with respect to the 2022 Notes, the receipt by the Company of gross proceeds of at least $500 million from the Offering, and with respect to the 2024 Notes, the receipt by the Company of gross proceeds of at least $1.3 billion (each on terms and conditions satisfactory to the Company, each a "Financing Condition"). We expect to use the net proceeds from the Offering to finance our payments of the Tender Offer Consideration and the Total Consideration, as applicable, and any fees payable in connection with the Tender Offers, subsequent to the date hereof and on or prior to the Final Settlement Date.
The Company's obligation to consummate the Tender Offers is subject to the applicable Financing Condition and the General Conditions (as defined in the Offer to Purchase). The Tender Offers are not contingent upon the tender of any minimum principal amount of Notes.
The Company also intends to issue a conditional notice of redemption for all outstanding 2022 Notes that are not accepted for purchase in the Tender Offer (the "2022 Notes Conditional Redemption Notice") and a conditional notice of redemption for a portion of the 2024 Notes up to an aggregate principal amount (the "Available Redemption Amount") that, when taken together with such aggregate principal amount of 2024 Notes that are validly tendered and accepted for payment in the Tender Offer, is equal to, but not in excess of, the 2024 Maximum Tender Amount (the "2024 Notes Conditional Redemption Notice"). The 2022 Note Conditional Redemption Notice will be conditioned upon, among other things, the satisfaction of the applicable Financing Condition, and will provide that if the conditions to the Tender Offers are satisfied but less than all of the outstanding 2022 Notes are purchased in the applicable Tender Offer, the Company will redeem, under and pursuant to the indenture governing the 2022 Notes, all outstanding 2022 Notes (the "2022 Notes Redemption"). The 2024 Notes Conditional Redemption Notice will be conditioned upon, among other things, the satisfaction of the applicable Financing Condition, and will provide that if the conditions to the Tender Offers are satisfied, the Company will redeem, under and pursuant to the indenture governing the 2024 Notes, certain outstanding 2024 Notes up to the Available Redemption Amount (the "2024 Notes Redemption" and, together with the 2022 Notes Redemption, the "Redemptions"). If the conditions to the Redemptions are satisfied, we expect that the Redemptions would occur on or about July 8, 2019 (the "Redemption Date") at the then-applicable redemption price of 103.688% of the principal amount of Notes redeemed (excluding accrued and unpaid interest, if any, to but excluding the Redemption Date) for the 2022 Notes and at a redemption price equal to 100% of the principal amount of Notes redeemed, plus the Applicable Premium (as defined in the indenture governing the 2024 Notes) as of the Redemption Date, and accrued and unpaid interest, if any, to but excluding the Redemption Date for the 2024 Notes. In the event that the conditions specified in the 2022 Notes Conditional Redemption Notice and the 2024 Notes Conditional Redemption Notice are not satisfied, the 2022 Notes Redemption and the 2024 Notes Redemption, respectively, will not occur.
Vistra Energy has retained Goldman Sachs & Co. LLC to serve as the Lead Dealer Manager for the Tender Offers. Global Bondholder Services Corporation has been retained to serve as the Depositary and Information Agent for the Tender Offers. Questions regarding the Tender Offers may be directed to Goldman Sachs & Co. LLC at 200 West Street, New York, New York 10282, (800) 828-3182. Requests for the Tender Offer Materials may be directed to Global Bondholder Services Corporation at 65 Broadway – Suite 404, New York, New York 10006, Attn: Corporate Actions, (212) 430-3774 (for banks and brokers) or (866) 470-3900 (for all others).
Vistra Energy is making the Tender Offers only by, and pursuant to, the terms of the Tender Offer Materials. None of Vistra Energy, the Lead Dealer Manager, or the Depositary and Information Agent make any recommendation as to whether Holders should tender or refrain from tendering their Notes. Holders must consult their own investment and tax advisors and make their own decisions as to whether to tender their Notes and, if so, the principal amount of the Notes to tender. The Tender Offers are not being made to holders of the Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Tender Offers to be made by a licensed broker or dealer, the Tender Offers will be deemed to be made on behalf of Vistra Energy by the Lead Dealer Manager, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This press release does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any new securities, including in connection with the applicable Financing Condition, nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful. Capitalized terms used in this press release but not otherwise defined herein have the meanings assigned to them in the Tender Offer Materials.
Media
Meranda Cohn
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 5,275 employees. Vistra's retail brands serve approximately 2.8 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 40,500 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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 (without limitation) 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, (iv) with respect to the proposed Crius Energy acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra Energy to successfully integrate the Crius Energy business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy Corp.
IRVING, Texas, June 6, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) today announced its latest retail electricity product, TXU Energy Pure Solar, which provides residential customers easy access to solar power. All of the energy purchased comes from solar farms, including the company's Luminant Upton 2 Solar Power Plant, Texas' largest solar facility. This innovative retail product further delivers on Vistra Energy's strategic plan to market enhanced retail solar offerings made possible by the company's integrated business model.
"This is a great example of how both sides of our business work together – we can couple our retail business with our commercial operations, meeting our retail needs with generation development," said Jim Burke, chief operating officer of Vistra Energy. "We continue to see increased customer demand for solar, but some customers have found it difficult to get the solar power they want because rooftop panels aren't an option. This retail product gives those customers what they want, in a way that is simple and easy."
TXU Energy customers can now turn any electricity plan into a renewable solar plan with TXU Energy Pure Solar. This value-add allows customers to continue to choose the plan that's right for them, based on the way they use electricity, but now they can also choose solar energy. Customers can add TXU Energy Pure Solar to any plan for a nominal fee and ensure that solar energy is being produced and delivered to the ERCOT grid in amounts equal to their energy usage.
"This product brings affordability and flexibility to those customers who want to use solar, but who don't want a 20-year commitment, like you get with rooftop panels. Plus, there's no installation needed, and no maintenance required from the customer. We're especially excited for our customers in apartments and lease agreements to be able to take advantage of this product," Burke added.
TXU Energy Pure Solar is a first-of-its-kind offering in Texas. Known for its innovation and its desire to give customers what they want, TXU Energy's renewable portfolio of offerings is the most comprehensive in ERCOT, with eight products, many of which were first-to-market. Other renewable energy firsts include its popular 100% renewable Free Nights and Solar Days plan, community solar through TXU Energy Solar Club, and its 100% solar plan called TXU Energy Solar Advantage.
Media
Meranda Cohn
214-875-8004
Media.Relations@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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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SOURCE Vistra Energy
IRVING, Texas, June 6, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the launch of a private offering (the "Offering") of $1.0 billion aggregate principal amount of senior notes due 2027 (the "Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be senior, unsecured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The Notes will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries.
The Company intends to use the proceeds of the Offering (i) to purchase and/or redeem for cash (a) any and all of its outstanding 7.375% Senior Notes due 2022 issued by Dynegy Inc. ("Dynegy"), as predecessor to Vistra Energy, and (b) a portion of its outstanding 7.625% Senior Notes due 2024 issued by Dynegy, as predecessor to Vistra Energy, for an aggregate purchase price (excluding accrued and unpaid interest) up to $475,000,000, (ii) to pay fees and expenses related to the Offering and (iii) for general corporate purposes.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Media
Meranda Cohn
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 5,275 employees. Vistra's retail brands serve approximately 2.8 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 40,500 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, Section 27A of the Securities Act 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 (without limitation) 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, (iv) with respect to the proposed Crius Energy acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra Energy to successfully integrate the Crius Energy business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy Corp.
IRVING, Texas, June 4, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the pricing of an upsized private offering (the "Offering") of $2.0 billion aggregate principal amount of senior secured notes, consisting of $1.2 billion aggregate principal amount of senior secured notes due 2024 at a price to the public of 99.807% of their face value (the "2024 Notes") and $800 million aggregate principal amount of senior secured notes due 2029 at a price to the public of 99.784% of their face value (the "2029 Notes and together with the 2024 Notes, the "Secured Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Secured Notes will be senior, secured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The 2024 Notes will bear interest at the rate of 3.550% per annum, and the 2029 Notes will bear interest at the rate of 4.300% per annum. The Secured Notes will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries that also guarantee the Issuer's credit agreement. The Secured Notes will be secured by a first-priority security interest in the same collateral that is pledged for the benefit of the lenders under the Issuer's credit agreement, which consists of a substantial portion of the property, assets and rights owned by the Issuer and the subsidiary guarantors as well as the stock of the Issuer. The collateral securing the Secured Notes will be released if the Issuer's senior, unsecured long-term debt securities obtain an investment grade rating from two out of the three rating agencies, subject to reversion if such rating agencies withdraw the investment grade rating of the Issuer's senior, unsecured long-term debt securities or downgrade such rating below investment grade.
The Offering is expected to close on June 11, 2019, subject to customary closing conditions.
The purpose of the Offering is to prepay certain amounts outstanding under the senior secured term loan under the Issuer's credit agreement and to pay fees and expenses related to the Offering. The Secured Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any new securities nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful.
Media
Meranda Cohn
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 5,275 employees. Vistra's retail brands serve approximately 2.8 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 40,500 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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 (without limitation) 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, (iv) with respect to the proposed Crius Energy acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra Energy to successfully integrate the Crius Energy business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy Corp.
IRVING, Texas, June 4, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the launch of a private offering (the "Offering") of $1.0 billion aggregate principal amount of senior secured notes due 2024 and senior secured notes due 2029 (collectively, the "Secured Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Secured Notes will be senior, secured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The Secured Notes will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries that also guarantee the Issuer's credit agreement. The Secured Notes will be secured by a first-priority security interest in the same collateral that is pledged for the benefit of the lenders under the Issuer's credit agreement, which consists of a substantial portion of the property, assets and rights owned by the Issuer and the subsidiary guarantors as well as the stock of the Issuer. The collateral securing the Secured Notes will be released if the Issuer's senior, unsecured long-term debt securities obtain an investment grade rating from two out of the three rating agencies, subject to reversion if such rating agencies withdraw the investment grade rating of the Issuer's senior, unsecured long-term debt securities or downgrade such rating below investment grade.
The Company intends to use the net proceeds from the Offering, together with cash on hand, to prepay certain amounts outstanding under the senior secured term loan under the Issuer's credit agreement and to pay fees and expenses related to the Offering.
The Secured Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Media
Meranda Cohn
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 5,275 employees. Vistra's retail brands serve approximately 2.8 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 40,500 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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 (without limitation) 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, (iv) with respect to the proposed Crius Energy acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra Energy to successfully integrate the Crius Energy business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, May 28, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) today announced the appointment of respected energy industry veteran David A. Campbell as executive vice president and chief financial officer, effective June 5, 2019. Mr. Campbell replaces outgoing CFO, J. William "Bill" Holden, who has announced his resignation to pursue other opportunities. Mr. Campbell, who has previously worked for Vistra's predecessor companies, will report to Vistra's chief executive officer, Curt Morgan, and will assume broad responsibility for the company's accounting, risk, internal audit, treasury, tax, planning, and investor activities.
"David is a strategic, results-oriented leader with deep industry and capital markets experience. He will be a valuable addition to Vistra's executive team," Mr. Morgan commented. "His familiarity with the industry and much of Vistra's business will enable him to hit the ground running. We are eager to welcome David to the Vistra team as we continue to focus on execution in 2019, and we look forward to his contributions to our continued growth and success in the years ahead."
"Under Curt's leadership, Vistra has transformed its business and the industry," said Mr. Campbell. "The company is well-positioned and now is the right time for me to join the team to help take the enterprise to the next level. I am excited about the future for Vistra."
Mr. Campbell most recently served as the president and chief executive officer of InfraREIT, Inc., a transmission and distribution utility structured as a real estate investment trust, from August 2014 through May 2019. Prior to his role at InfraREIT, he was president and chief operating officer of Bluescape Resources, an energy-focused investment company. Mr. Campbell also previously served as chief executive officer of Luminant when it was a subsidiary of Vistra's predecessor parent company, Energy Future Holdings. He originally joined TXU Corp., the predecessor to EFH, in 2004 as executive vice president of corporate planning, strategy, and risk, and became chief financial officer of TXU in 2006. Prior to joining TXU, Mr. Campbell was a principal in the Dallas office of McKinsey & Company, where he led the Texas and Southern Region hubs of McKinsey's corporate finance and strategy practice.
Mr. Campbell holds a bachelor's degree from Yale University, a juris doctorate from Harvard Law School, and a master's degree from Oxford University, where he studied as a Rhodes Scholar.
Media
Meranda Cohn
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, (iv) with respect to the proposed Crius acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra to successfully integrate the Crius business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy Corp.
CHICAGO, May 28, 2019 /PRNewswire/ -- Dynegy today announced that it has entered into a multi-year partnership with the Chicago Cubs to become the Official and Exclusive Energy Provider for the Chicago Cubs and Wrigley Field.
"We're excited to welcome Dynegy as our official and exclusive energy provider of the Cubs," said Alex Seyferth, vice president of corporate partnerships, Marquee Sports and Entertainment. "We share Dynegy's commitment to deliver best-in-class service as well as provide an enhanced gameday experience for fans visiting Wrigley Field."
Selecting the right energy supplier is critical to ensuring efficient use of power, following what has been a significant update of the ballpark. These efforts aim to upgrade the overall gameday experience for fans while preserving the beauty, charm, and historic features of Chicago's beloved Wrigley Field.
"We're looking forward to bringing the energy to such an iconic ballpark and to powering the great experience Chicago Cubs fans have at Wrigley Field," said Gabe Castro, vice president, business markets for Dynegy. "We know people and businesses have a choice when it comes to their energy provider. Dynegy is honored to be associated with one of baseball's most celebrated clubs and the nostalgic ballpark in which they play."
In addition to powering the ballpark, Dynegy will have a strong in-ballpark sponsorship and marketing presence as part of its multi-year deal.
"We're excited about some of the innovative things we've got in the works due to this partnership agreement," said Sydney Seiger, chief marketing officer for Dynegy. "We're developing unique offers and electricity plans exclusively for Chicago Cubs fans."
The company understands the unique operational needs of professional sports facilities and is committed to creating tailored solutions that work for each of its customers. Dynegy is also the official energy provider of The Great American Ball Park, home of the Cincinnati Reds.
About the Chicago Cubs
The Chicago Cubs franchise, a charter member of Major League Baseball's National League since 1876, has won the National League pennant 17 times and was the first team to win back-to-back World Series titles in the 1907 and 1908 seasons. In 2016, the Chicago Cubs made history again when the team won its first World Series in 108 years, ending the longest championship drought in North American sports. Known for its ivy-covered outfield walls, hand-operated scoreboard and famous Marquee, iconic Wrigley Field has been the home of the Chicago Cubs since 1916 and is the second oldest ballpark in Major League Baseball. In 2009, the Ricketts family assumed ownership of the Chicago Cubs and established three main goals for the organization: Win the World Series, Preserve and Improve Wrigley Field, and Be a Good Neighbor. For more information, visit www.cubs.com.
About Dynegy
For over 30 years, Dynegy has helped millions of Americans throughout the Northeast, Mid-Atlantic and Midwest power their homes and businesses. Dynegy delivers simple, price-protected electricity plans for residential, municipal aggregation, commercial and industrial customers alike. Dynegy is committed to the communities it serves and gives back through local partnerships. Visit dynegy.com for more. Dynegy is a subsidiary of Vistra Energy (NYSE: VST).
Media
Dynegy
214-875-8004
Media.Relations@vistraenergy.com
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SOURCE Dynegy
IRVING, Texas, May 21, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) announced today that its Board of Directors declared a quarterly dividend of $0.125 per share of Vistra's common stock, or $0.50 per share on an annualized basis. The dividend is payable on June 28, 2019 to shareholders of record as of June 14, 2019. The ex-dividend date will be June 13, 2019.
Media
Meranda Cohn
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, (iv) with respect to the proposed Crius acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra to successfully integrate the Crius business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
View original content to download multimedia:http://www.prnewswire.com/news-releases/vistra-energy-announces-quarterly-dividend-300853564.html
SOURCE Vistra Energy
IRVING, Texas, May 3, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):
Financial Highlights
Capital Allocation Highlights
Growth Highlights
(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.
(2) Excludes the Asset Closure segment and the pending Crius acquisition. Includes $430 million of synergies expected to be realized in 2019 as compared to the projected full run-rate of Adjusted EBITDA value lever targets of $565 million. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details.
Summary of Financial Results for the First Quarter Ended March 31, 2019
($ in millions) | Three Months Ended | |||
Net Income | $ | 224 | ||
Ongoing Operations Net Income1 | $ | 238 | ||
Ongoing Operations Adjusted EBITDA1 | $ | 815 |
(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 March 31, 2019, Vistra reported Net Income from Ongoing Operations of $238 million and Adjusted EBITDA from Ongoing Operations of $815 million. Vistra's first quarter Adjusted EBITDA was above consensus and in-line with management expectations.
"Vistra's strong first quarter results were above consensus and a clear indication of our focus on execution in 2019 and the effectiveness of the integrated model. Our teams continue to integrate Dynegy and capture merger synergy targets and value from our Operations Performance Initiative, as well as prepare for the close of the Crius acquisition," Curt Morgan, Vistra's chief executive officer, commented. "We also continue to execute our capital allocation plan, bolstered by our significant free cash flow generation, purchasing our stock at attractive price levels and significantly rotating our shareholder base while driving to our low-leverage target. We have added a few attractive tuck-in growth investments as well, while exhibiting financial discipline. We look forward to continuing to execute on our commitments and creating value for our shareholders."
Guidance
($ in millions) | 2019 | ||
Ongoing Ops. Adj. EBITDA1 | $ | 3,220 – 3,420 | |
Ongoing Ops. Adj. FCFbG1 | $ | 2,100 – 2,300 |
(1) Excludes the Asset Closure segment and the pending Crius acquisition. Includes $430 million of synergies expected to be realized in 2019 as compared to the projected full run-rate of Adjusted EBITDA value lever targets of $565 million. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
Vistra Energy is reaffirming its 2019 Ongoing Operations Adjusted EBITDA guidance range of $3,220 to $3,420 million and Ongoing Operations Adjusted FCFbG guidance range of $2,100 to $2,300 million. The 2019 guidance was originally developed utilizing forward curves as of March 30, 2018 and reaffirmed utilizing forward curves as of March 29, 2019.
Share Repurchase Program
As of April 25, 2019, Vistra has completed approximately $1.053 billion of the $1.75 billion share repurchase program previously authorized by its board of directors. Vistra has purchased approximately 44.5 million shares, lowering Vistra's shares outstanding to approximately 483 million as of April 25, 2019. Approximately $697 million remains available for execution under the program as of April 25, 2019.
Liquidity
As of March 31, 2019, Vistra had total available liquidity of approximately $2.324 billion. This available liquidity included cash and cash equivalents of $546 million, $1.753 billion of availability under its revolving credit facility, which remained undrawn but had $922 million of letters of credit outstanding as of March 31, 2019 primarily to support commodity hedging activities, and $25 million of availability under its alternate letter of credit facilities. The increase in available liquidity of $553 million as of March 31, 2019 as compared to Dec. 31, 2018 was primarily driven by $175 million of additional available capacity under the Revolving Credit Facility and $350 million of new available capacity under two new alternate letter of credit facilities. In April 2019, the aggregate available capacity under the alternate letter of credit facilities was increased to $450 million.
Earnings Webcast
Vistra will host a webcast today, May 3, 2019, 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 impacts, 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
Meranda Cohn
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, (iv) with respect to the proposed Crius acquisition, (x) the ability of the parties to obtain all required approvals, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra to successfully integrate the Crius business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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 March 31, | |||||||
2019 | 2018 | ||||||
Operating revenues | $ | 2,923 | $ | 765 | |||
Fuel, purchased power costs and delivery fees | (1,461) | (650) | |||||
Operating costs | (385) | (194) | |||||
Depreciation and amortization | (405) | (153) | |||||
Selling, general and administrative expenses | (182) | (162) | |||||
Operating income (loss) | 490 | (394) | |||||
Other income | 25 | 10 | |||||
Other deductions | (2) | (2) | |||||
Interest expense and related charges | (222) | 9 | |||||
Impacts of Tax Receivable Agreement | 3 | (18) | |||||
Equity in earnings of unconsolidated investment | 7 | — | |||||
Income (loss) before income taxes | 301 | (395) | |||||
Income tax (expense) benefit | (77) | 89 | |||||
Net income (loss) | $ | 224 | $ | (306) | |||
Less: Net loss attributable to noncontrolling interest | 1 | — | |||||
Net income (loss) attributable to Vistra Energy | $ | 225 | $ | (306) | |||
Weighted average shares of common stock outstanding: | |||||||
Basic | 502,367,299 | 428,450,384 | |||||
Diluted | 509,139,988 | 428,450,384 | |||||
Net income (loss) per weighted average share of common stock outstanding: | |||||||
Basic | $ | 0.45 | $ | (0.71) | |||
Diluted | $ | 0.44 | $ | (0.71) |
VISTRA ENERGY CORP. CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (Millions of Dollars) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash flows — operating activities: | |||||||
Net income (loss) | $ | 224 | $ | (306) | |||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 461 | 180 | |||||
Deferred income tax (benefit) expense, net | 70 | (83) | |||||
Unrealized net (gain) loss from mark-to-market valuations of commodities | (186) | 415 | |||||
Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps | 80 | (59) | |||||
Asset retirement obligation accretion expense | 14 | 19 | |||||
Impacts of Tax Receivable Agreement | (3) | 18 | |||||
Stock-based compensation | 12 | 6 | |||||
Other, net | (32) | 7 | |||||
Changes in operating assets and liabilities: | |||||||
Margin deposits, net | 34 | (64) | |||||
Accrued interest | 15 | (11) | |||||
Accrued taxes | (75) | (69) | |||||
Accrued employee incentive | (90) | (50) | |||||
Other operating assets and liabilities | (136) | (25) | |||||
Cash provided by (used in) operating activities | 388 | (22) | |||||
Cash flows — financing activities: | |||||||
Issuances of long-term debt | 1,300 | — | |||||
Repayments/repurchases of debt | (1,282) | (10) | |||||
Net borrowings under accounts receivable securitization program | 11 | — | |||||
Stock repurchase | (248) | — | |||||
Dividends paid to stockholders | (61) | — | |||||
Debt tender offer and other financing fees | (64) | — | |||||
Other, net | — | 1 | |||||
Cash used in financing activities | (344) | (9) | |||||
Cash flows — investing activities: | |||||||
Capital expenditures, including LTSA prepayments | (118) | (39) | |||||
Nuclear fuel purchases | (13) | (11) | |||||
Development and growth expenditures | (22) | (21) | |||||
Proceeds from sales of nuclear decommissioning trust fund securities | 78 | 46 | |||||
Investments in nuclear decommissioning trust fund securities | (83) | (51) | |||||
Other, net | 9 | (1) | |||||
Cash used in investing activities | (149) | (77) | |||||
Net change in cash, cash equivalents and restricted cash | (105) | (108) | |||||
Cash, cash equivalents and restricted cash — beginning balance | 693 | 2,046 | |||||
Cash, cash equivalents and restricted cash — ending balance | $ | 588 | $ | 1,938 |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE THREE MONTHS ENDED MARCH 31, 2019 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing Operations Consolidated
| Asset Closure | Vistra Energy Consolidated | |||||||||||||||||||||||||||
Net income (loss) | $ | 15 | $ | 301 | $ | 162 | $ | 21 | $ | 11 | $ | (272) | $ | 238 | $ | (14) | $ | 224 | |||||||||||||||||
Income tax expense | — | — | — | — | — | 77 | 77 | — | 77 | ||||||||||||||||||||||||||
Interest expense and related charges | 3 | (3) | 3 | 1 | 2 | 216 | 222 | — | 222 | ||||||||||||||||||||||||||
Depreciation and amortization (a) | 59 | 149 | 130 | 64 | 3 | 17 | 422 | — | 422 | ||||||||||||||||||||||||||
EBITDA before Adjustments | 77 | 447 | 295 | 86 | 16 | 38 | 959 | (14) | 945 | ||||||||||||||||||||||||||
Unrealized net (gain) or loss resulting from hedging transactions | 164 | (251) | (91) | (6) | 14 | (16) | (186) | — | (186) | ||||||||||||||||||||||||||
Fresh start / purchase accounting impacts | 14 | 2 | (6) | 2 | 5 | (1) | 16 | — | 16 | ||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | (3) | (3) | — | (3) | ||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 13 | 13 | — | 13 | ||||||||||||||||||||||||||
Transition and merger expenses | — | 1 | 1 | 1 | 8 | 7 | 18 | — | 18 | ||||||||||||||||||||||||||
Other, net | 2 | 5 | 2 | 3 | 5 | (19) | (2) | 1 | (1) | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 257 | $ | 204 | $ | 201 | $ | 86 | $ | 48 | $ | 19 | $ | 815 | $ | (13) | $ | 802 |
___________ |
(a) Includes nuclear fuel amortization of $17 million in ERCOT. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE THREE MONTHS ENDED MARCH 31, 2018 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||||||
Retail | ERCOT | Eliminations / Corp & Other | Ongoing Operations Consolidated
| Asset Closure | Consolidated | ||||||||||||||||||
Net income (loss) | $ | 771 | $ | (1,086) | $ | 31 | $ | (284) | $ | (22) | $ | (306) | |||||||||||
Income tax benefit | — | — | (89) | (89) | — | (89) | |||||||||||||||||
Interest expense and related charges | — | 8 | (17) | (9) | — | (9) | |||||||||||||||||
Depreciation and amortization (a) | 76 | 84 | 13 | 173 | — | 173 | |||||||||||||||||
EBITDA before Adjustments | 847 | (994) | (62) | (209) | (22) | (231) | |||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (655) | 1,070 | — | 415 | — | 415 | |||||||||||||||||
Fresh start accounting impacts | 12 | (2) | — | 10 | — | 10 | |||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | 18 | 18 | — | 18 | |||||||||||||||||
Reorganization items and restructuring expenses | — | — | 2 | 2 | — | 2 | |||||||||||||||||
Non-cash compensation expenses | — | — | 6 | 6 | — | 6 | |||||||||||||||||
Transition and merger expenses | — | 2 | 26 | 28 | — | 28 | |||||||||||||||||
Other, net | (10) | (6) | 9 | (7) | — | (7) | |||||||||||||||||
Adjusted EBITDA | 194 | 70 | (1) | 263 | (22) | 241 | |||||||||||||||||
Impact of Odessa earnout buybacks | — | 21 | — | 21 | — | 21 | |||||||||||||||||
Adjusted EBITDA less impacts from Odessa earnout buybacks | $ | 194 | $ | 91 | $ | (1) | $ | 284 | $ | (22) | $ | 262 | |||||||||||
Acquired EBITDA - Dynegy | 292 | 292 | |||||||||||||||||||||
Pro forma adjusted EBITDA - combined | $ | 576 | $ | (22) | $ | 554 |
____________ |
(a) Includes nuclear fuel amortization of $20 million in the ERCOT segment. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - 2019 GUIDANCE (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing | Asset Closure | Vistra Energy | |||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||
Net Income | $ | 891 | $ | 1,047 | $ | (65) | $ | (55) | $ | 826 | $ | 992 | |||||||||||
Income tax expense | 268 | 312 | — | — | 268 | 312 | |||||||||||||||||
Interest expense and related charges | 704 | 704 | — | — | 704 | 704 | |||||||||||||||||
Depreciation and amortization | 1,568 | 1,568 | — | — | 1,568 | 1,568 | |||||||||||||||||
EBITDA before Adjustments | $ | 3,431 | $ | 3,631 | $ | (65) | $ | (55) | $ | 3,366 | $ | 3,576 | |||||||||||
Unrealized net gain resulting from hedging transactions | (386) | (386) | — | — | (386) | (386) | |||||||||||||||||
Fresh start / purchase accounting impacts | 56 | 56 | — | — | 56 | 56 | |||||||||||||||||
Impacts of Tax Receivable Agreement | 42 | 42 | — | — | 42 | 42 | |||||||||||||||||
Transition and merger expenses | 17 | 17 | — | — | 17 | 17 | |||||||||||||||||
Other, net | 60 | 60 | — | — | 60 | 60 | |||||||||||||||||
Adjusted EBITDA guidance | $ | 3,220 | $ | 3,420 | $ | (65) | $ | (55) | $ | 3,155 | $ | 3,365 | |||||||||||
Interest paid, net | (576) | (576) | — | — | (576) | (576) | |||||||||||||||||
Net tax (paid) / received (a) | 108 | 108 | — | — | 108 | 108 | |||||||||||||||||
Working capital and margin deposits | (25) | (25) | (4) | (4) | (29) | (29) | |||||||||||||||||
Reclamation and remediation | (60) | (60) | (118) | (118) | (178) | (178) | |||||||||||||||||
Other changes in other operating assets and liabilities
| (68) | (68) | 25 | 35 | (43) | (33) | |||||||||||||||||
Cash provided by operating activities | $ | 2,599 | $ | 2,799 | $ | (162) | $ | (142) | $ | 2,437 | $ | 2,657 | |||||||||||
Capital expenditures including nuclear fuel purchases and LTSA prepayments | (611) | (611) | — | — | (611) | (611) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | (156) | (156) | — | — | (156) | (156) | |||||||||||||||||
Other net investing activities | (20) | (20) | 3 | 3 | (17) | (17) | |||||||||||||||||
Free cash flow | $ | 1,812 | $ | 2,012 | $ | (159) | $ | (139) | $ | 1,653 | $ | 1,873 | |||||||||||
Working capital and margin deposits | 25 | 25 | 4 | 4 | 29 | 29 | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | 156 | 156 | — | — | 156 | 156 | |||||||||||||||||
Transition and merger expenses | 84 | 84 | — | — | 84 | 84 | |||||||||||||||||
Transition capital expenditures | 23 | 23 | — | — | 23 | 23 | |||||||||||||||||
Adjusted free cash flow before growth guidance | $ | 2,100 | $ | 2,300 | $ | (155) | $ | (135) | $ | 1,945 | $ | 2,165 |
____________ |
(a) Includes state tax payments. |
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SOURCE Vistra Energy
IRVING, Texas, May 1, 2019 /PRNewswire/ -- TXU Energy today announced that it has recognized three South Texas companies as winners in the second annual TXU Energy Leadership Awards Program. The awards, which were announced in conjunction with the TXU Energy Summit held today in Houston, recognize corporate and non-profit organizations that demonstrate leadership in the areas of energy management, innovation, and community.
"We are committed to working with our customers across Texas to help them accomplish their sustainability goals and maintain their environmental commitments," said Gabe Castro, TXU Energy vice president of business markets. "We are thrilled to recognize these three outstanding organizations whose initiatives enhance their standards for energy conservation, improve efficiency, and represent community stewardship. These companies have seen tremendous results in pursuit of their energy and sustainability goals, and we hope their success will influence other organizations to strive for the same."
The three South Texas-area winners include:
TXU Energy is proud to share the accomplishments of the recipients of its awards program and will present additional Energy Leadership Awards this fall at its Dallas/Fort Worth-area summit. Learn more about what TXU Energy can do to help your business or organization achieve its energy and sustainability goals by visiting us on LinkedIn.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Consecutively ranked as one of the Top Places to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
214-875-8004
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SOURCE TXU Energy
IRVING, Texas, April 11, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) plans to report its first quarter 2019 financial and operating results on Friday, May 3, 2019. Management will present the results during a webcast beginning at 8 a.m. ET (7 a.m. CT).
The live, listen-only webcast can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com under "Investor Relations" and then "Events & Presentations." For those unable to participate in the live event, a replay will be available on the Vistra Energy website for one year following the webcast.
Media
Meranda Cohn
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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SOURCE Vistra Energy
IRVING, Texas, April 2, 2019 /PRNewswire/ -- TXU Energy today announced the continuation of its proud legacy of innovative, customer-centric retail energy plans with the launch of TXU Energy Free PassSM. Free Pass is a revolution in the retail electric market, as it automatically gives customers free electricity on the seven days they use it the most every month, all year long. This means customers will receive almost three months of free electricity each year on their highest-use days, when savings matter the most.
"At TXU Energy, we are constantly looking for ways to help our customers. Our Free Pass plan provides customers relief when their electricity use ramps up because of unusually high activity, extreme weather, or unanticipated events," said Sydney Seiger, chief marketing officer for TXU Energy. "Instead of worrying about the how, when, and where of electricity usage, customers who choose Free Pass will have the control, freedom, and comfort of knowing an unusual day or two – or seven – of electricity use won't mean an unusually high monthly bill."
This unique, no-hassle plan is 100 percent personalized and automatically adjusts to each customer's needs, providing relief on the exact days it's needed most. Customers will be able to see which days they received for free and keep track of their ongoing savings both on their monthly bill and in their MyEnergy Dashboard. With Free Pass, customers can relax and save, even on those days when they need a little more electricity.
Seiger added, "TXU Energy's success is based on anticipating our customers' needs and providing service on their terms. Free Pass continues this proud tradition and builds on our full suite of plans, services, and support as we constantly strive to exceed customer expectations."
For more information about TXU Energy Free PassSM, please visit www.txu.com.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Consecutively ranked as one of the Top Places to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
Meranda Cohn
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
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SOURCE TXU Energy
IRVING, Texas, March 26, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) supports legislation to be filed in the Illinois General Assembly by State Senator Michael Hastings and State Representative Luis Arroyo, which the company views as a visionary and comprehensive transition plan for its subsidiaries' central and southern Illinois coal plants.
The Illinois Coal to Solar and Energy Storage Act of 2019 will help mitigate the uncertainty surrounding these power plants and the impact to its employees and communities in which they operate. It will also spur substantial investments in new renewable energy and battery storage projects across Illinois and sustain otherwise uneconomic generation for five years while allowing time for additional capacity to come online.
Currently, as much as 75 percent of Vistra's subsidiaries' downstate generation capacity located within MISO Zone 4 is at risk of closure by the end of 2019 due to a number of factors. Vistra's subsidiaries' nearly 5,500 megawatts of generation capacity accounts for 40 percent of MISO Zone 4's summer capacity. Closing all of these at-risk plants later this year could have significant and detrimental impacts on workers and their families, communities, grid reliability, and power prices.
"There are many challenges to operating power plants in Illinois, from longstanding and unresolved capacity market design flaws to delays in regulatory updates and other economic pressures, including approval of the revised Multi-Pollutant Standard that is critical to the proposed legislation," said Curt Morgan, president and CEO of Vistra and its Illinois subsidiaries. "This bill establishes a reasonable and achievable path to transition existing coal power plants to renewable sources of utility-scale solar and energy storage that help meet the state's evolving energy goals. Importantly, this legislation will also allow for the transition of jobs and support the economies of impacted communities while leading to significant reductions in power plant emissions – most notably greenhouse gas – something Governor Pritzker has made a priority for my home state of Illinois," added Morgan.
The Illinois Coal to Solar and Energy Storage Act will:
Vistra's leadership has expressed a desire to create a sustainable business model in Illinois, though its subsidiaries cannot continue to operate uneconomic plants. This bill calls for reusing Vistra's robust footprint of land and transmission access at current plant sites to reduce costs and time of deploying utility-scale solar and energy storage across the state. The legislation would help Vistra's subsidiaries to bring these technologies to Illinois just as they have brought them to other parts of the country.
Vistra has established itself as a leader in solar and energy storage by developing the largest battery energy storage system in the world, a 300-MW/1,200-MWh system in Moss Landing, California. The company also operates the seventh largest battery in the nation which sits on the site of its 180-MW Upton 2 Solar Power Plant, the largest operating solar facility in Texas.
The company has launched a website at www.renewillinoispower.com to further explain this bill and its position.
Digital
www.renewillinoispower.com
www.vistraenergy.com
Media
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
Investors
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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SOURCE Vistra Energy
IRVING, Texas, March 22, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST): On February 26, 2019, Vistra Energy Corp. (NYSE: VST) announced that its Board of Directors declared a quarterly dividend of $0.125 per share of Vistra common stock, or $0.50 per share on an annualized basis (the "Dividend"). In declaring the Dividend, the Board set March 14, 2019 as the ex-dividend date, March 15, 2019 as the record date, and March 29, 2019 as the payment date. Vistra (as successor in interest to Dynegy Inc.) is party to that certain purchase contract agreement dated as of June 21, 2016 (as amended and supplemented, the "Purchase Contract Agreement") by and between Vistra and Wilmington Trust, National Association, as the purchase contract agent and as the trustee, whereby Vistra is the issuer of the prepaid stock purchase contracts that form a component part of its 4,600,000 7.00% Tangible Equity Units ("TEUs").
Upon the payment of the Dividend to stockholders of record of Vistra, Vistra is required to adjust the Fixed Settlement Rates (as defined in the Purchase Contract Agreement) pursuant to Section 5.01(a)(iv) of the Purchase Contract Agreement, resulting in the following:
This adjustment effectively changes the Reference Price (as defined in the Purchase Contract Agreement) per share to $24.6205 from $24.7393 and the Threshold Appreciation Price (as defined in the Purchase Contract Agreement) to $30.4053 from $30.5521, in each case, subject to further adjustment from time to time as provided in the Purchase Contract Agreement.
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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, (iv) with respect to the proposed Crius acquisition, (x) the ability of the parties to obtain all required approvals, including regulatory approvals and Crius unitholder approval, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra to successfully integrate the Crius business as currently projected, and (v) 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 annual report on Form 10-K for the year ended December 31, 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.
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SOURCE Vistra Energy
IRVING, Texas, March 7, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) announced today that it is launching a new retail electricity brand, Brighten Energy, in Illinois, Ohio, and Pennsylvania. Brighten Energy will supply renewable energy to socially conscious consumers looking for an affordable way to make a difference. Vistra is also expanding its existing retail brand, Dynegy, into the residential market in Pennsylvania. Both retail brands will serve residential and small businesses, while Dynegy also serves large commercial and industrial businesses.
"This is great news for customers and our company," said Scott Hudson, president of Vistra's retail business. "When consumers have a choice of where they get their electricity, the customer wins. We're excited to be able to exclusively provide renewable energy at a fair price through Brighten Energy, and to expand our well-recognized and trusted Dynegy brand, which already serves over 1 million customers."
As part of this expansion, Vistra will continue to invest in the states where it operates. The company will open retail sales offices outside of Chicago in Oak Brook, Illinois; in Columbus, Ohio; and outside of Philadelphia in King of Prussia, Pennsylvania.
"Our merger with Dynegy gave us a jump-start on our growth objectives in the retail sector," Hudson added. "Vistra has a customer-obsessed culture and our team has worked tirelessly to identify what customers in these states are looking for from an electricity supplier."
This expansion further strengthens Vistra's integrated generation-retail model. It also comes on the heels of the company's announcement in February that Vistra will acquire the Crius family of retail brands, expanding Vistra's retail presence from five to 19 states, and making it the leading residential energy provider in the country.
Online
www.brightenenergy.com
www.dynegy.com
Media
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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SOURCE Vistra Energy
IRVING, Texas, Feb. 28, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):
Financial Highlights
Capital Allocation Highlights
Growth Highlights
Realized in Year | Achieved by YE | |
2018 | $195mm | $385mm |
2019 | $430mm | $515mm |
2020 | $540mm | $565mm |
2021 | $565mm |
(1) Excludes results from the Asset Closure segment and the net impact of the partial buybacks of the Odessa earnout in February and May. Vistra excludes the related net cash expenditure from Adjusted FCFbG, as the partial buybacks of the Odessa earnout are considered growth expenditures by management. Vistra is reporting Adjusted EBITDA on a comparable basis. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details.
(2) Excludes the Asset Closure segment and the pending Crius acquisition. Includes $430 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. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details.
(3) Assuming approximately $400 million cash on balance sheet.
Summary of Financial Results for the Three Months and Year Ended Dec. 31, 2018
($ in millions) | Three Months Ended | Twelve Months Ended | ||||
Operating Revenues | $ | 2,584 | $ | 9,144 | ||
Net Income (Loss) | $ | (186) | $ | (56) | ||
Ongoing Operations Net Income (Loss)1 | $ | (161) | $ | (7) | ||
Ongoing Operations Adjusted EBITDA2 | $ | 719 | $ | 2,809 | ||
- inc. Odessa Earnout Buybacks | $ | 721 | $ | 2,791 | ||
Operating Cash Flow | $ | 1,471 | ||||
Ongoing Operations Adjusted FCFbG2 | $ | 1,611 | ||||
- inc. Odessa Earnout Buybacks | $ | 1,589 |
(1) Excludes results from the Asset Closure segment. | |
(2) Excludes results from the Asset Closure segment and the net impact of the partial buybacks of the Odessa earnout in February and May. Vistra excludes the related net cash expenditure from Adjusted FCFbG, as the partial buybacks of the Odessa earnout are considered growth expenditures by management. Vistra is reporting Adjusted EBITDA on a comparable basis. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
For the three months ended Dec. 31, 2018, Vistra reported a Net Loss from Ongoing Operations of $161 million and Adjusted EBITDA from Ongoing Operations of $719 million.
For the full year, Vistra reported a Net Loss from Ongoing Operations of $7 million and Adjusted EBITDA from Ongoing Operations of $2,809 million excluding the net impact to Adjusted EBITDA of the Odessa Power Plant earnout buybacks in February and May 2018. Including these impacts, Vistra's Adjusted EBITDA from Ongoing Operations was $2,791 million. Also for the full year, Vistra reported Operating Cash Flow of $1,471 million and Ongoing Operations Adjusted Free Cash Flow before Growth of $1,611 million.
Curt Morgan, Vistra's president and chief executive officer, commented, "The past 12 months have been a period of transition and growth for Vistra. We integrated Dynegy to create One Company, One Team, expanded our generation platform into renewables with the addition of our Upton 2 solar facility and battery project, announced the planned development of the world's largest battery storage project in California, and recently announced the acquisition of Crius Energy, which will accelerate Vistra's retail growth strategy in markets outside of Texas."
Morgan added, "I believe Vistra's strong balance sheet, low-cost integrated power company model, with our industry-leading retail business and commercial operations, and in-the-money power generation, is proving out its stable earnings profile and ability to generate significant free cash flow. This free cash flow generation has served as the backdrop for Vistra's planned capital allocation strategy to return capital to shareholders through opportunistic share repurchases and a recurring dividend, while also reducing our total debt outstanding to achieve our long-term leverage target of 2.5 times net debt to EBITDA. We expect 2019 to be a year of execution as we continue to integrate acquired operations while working to meet or exceed our synergy and guidance targets."
Acquisition of Crius Energy Trust
In February 2019, Vistra announced its agreement to acquire Crius Energy Trust for approximately $378 million1 plus the assumption of Crius Energy net debt of approximately $108 million. Vistra expects to achieve $15 million of annual EBITDA synergies and an additional $12 million of annual free cash flow synergies resulting from supply and financing efficiencies. In addition, Vistra expects it will avoid a cumulative $29 million of organic retail growth investment over the period from 2019 through 2023 as a result of the acquisition. Pro forma for the full run-rate of synergies, Vistra estimates the purchase at approximately 4.0 times EV/EBITDA, which is projected to be accretive to both EBITDA and free cash flow and to exceed Vistra's investment threshold of mid- to high-teens unlevered returns.
(1) Assumes an exchange rate of US$0.76 for each C$1.
2019 Guidance
($ in millions) | 2019 | ||
Ongoing Operations Adj. EBITDA1 | $ | 3,220 – 3,420 | |
Ongoing Operations Adj. FCFbG1 | $ | 2,100 – 2,300 |
(1) Excludes the Asset Closure segment and the pending Crius acquisition. Includes $430 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. Adjusted EBITDA and Adjusted FCFbG are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
Vistra is reaffirming 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.
Share Repurchase Program
As of Feb. 15, 2019, Vistra has completed $937 million of the $1.75 billion share repurchase program authorized by its board of directors. Vistra has purchased approximately 40 million shares, lowering Vistra's shares outstanding to approximately 486 million as of Feb. 15, 2019. $813 million remains available for execution under the program as of Feb. 15, 2019.
Financing Update
In February 2019, Vistra used the net proceeds from the issuance by Vistra Operations Company LLC, a wholly owned, indirect subsidiary of Vistra Energy, of $1,300 million aggregate principal amount of 5.625 percent senior notes due 2027 to (i) repurchase approximately $1,193 million aggregate principal amount of 7.375 percent senior notes due 2022, (ii) call an additional approximately $35 million aggregate principal amount of 7.375 percent senior notes due 2022, and (iii) call an additional approximately $25 million aggregate principal amount of 8.034 percent senior notes due 2022. As a result of these transactions, Vistra reduced its annual interest expense by approximately $20 million and extended maturities.
Liquidity
As of Dec. 31, 2018, Vistra had total available liquidity of approximately $1.771 billion, including cash and cash equivalents of $636 million and $1,135 million of availability under its revolving credit facility, which remained undrawn but had $1,365 million of letters of credit outstanding as of Dec. 31, 2018.
Upton 2 Battery Storage Project
On Dec. 31, 2018, Vistra achieved commercial operations at its 10-megawatt / 42-megawatt hour Upton 2 battery storage project in West Texas. Upon commercial operations, the project was the largest energy storage project in Texas and the seventh largest in the United States.
Earnings Webcast
Vistra will host a webcast today, Feb. 28, 2019, 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 webcast 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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, (iv) with respect to the proposed Crius acquisition, (x) the ability of the parties to obtain all required approvals, including regulatory approvals and Crius unitholder approval, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra to successfully integrate the Crius business as currently projected, and (v) 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. STATEMENTS OF CONSOLIDATED INCOME (LOSS) (Millions of Dollars, Except Per Share Amounts)
| |||||||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, | Period from October | Period from January | |||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
Operating revenues | $ | 9,144 | $ | 5,430 | $ | 1,191 | $ | 3,973 | |||||||||||||||
Fuel, purchased power costs and delivery fees | (5,036) | (2,935) | (720) | (2,082) | |||||||||||||||||||
Net gain from commodity hedging and trading activities | — | — | — | 282 | |||||||||||||||||||
Operating costs | (1,297) | (973) | (208) | (664) | |||||||||||||||||||
Depreciation and amortization | (1,394) | (699) | (216) | (459) | |||||||||||||||||||
Selling, general and administrative expenses | (926) | (600) | (208) | (482) | |||||||||||||||||||
Impairment of goodwill (Note 8) | — | — | — | — | |||||||||||||||||||
Impairment of long-lived assets | — | (25) | — | — | |||||||||||||||||||
Operating income (loss) | 491 | 198 | (161) | 568 | |||||||||||||||||||
Other income (Note 23) | 47 | 37 | 10 | 19 | |||||||||||||||||||
Other deductions (Note 23) | (5) | (5) | — | (75) | |||||||||||||||||||
Interest expense and related charges (Note 11) | (572) | (193) | (60) | (1,049) | |||||||||||||||||||
Impacts of Tax Receivable Agreement (Note 10) | (79) | 213 | (22) | — | |||||||||||||||||||
Equity in earnings of unconsolidated investment (Note 23) | 17 | — | — | — | |||||||||||||||||||
Reorganization items (Note 5) | — | — | — | 22,121 | |||||||||||||||||||
Income (loss) before income taxes | (101) | 250 | (233) | 21,584 | |||||||||||||||||||
Income tax (expense) benefit (Note 9) | 45 | (504) | 70 | 1,267 | |||||||||||||||||||
Net income (loss) | (56) | (254) | (163) | 22,851 | |||||||||||||||||||
Less: Net loss attributable to noncontrolling interest | 2 | — | — | ||||||||||||||||||||
Net loss attributable to Vistra Energy | $ | (54) | $ | (254) | $ | (163) | |||||||||||||||||
Weighted average shares of common stock outstanding: | |||||||||||||||||||||||
Basic | 504,954,371 | 427,761,460 | 427,560,620 | ||||||||||||||||||||
Diluted | 504,954,371 | 427,761,460 | 427,560,620 | ||||||||||||||||||||
Net loss per weighted average share of common stock outstanding: | |||||||||||||||||||||||
Basic | $ | (0.11) | $ | (0.59) | $ | (0.38) | |||||||||||||||||
Diluted | $ | (0.11) | $ | (0.59) | $ | (0.38) | |||||||||||||||||
Dividend declared per share of common stock | $ | — | $ | — | $ | 2.32 | |||||||||||||||||
VISTRA ENERGY CORP. STATEMENTS OF CONSOLIDATED CASH FLOWS (Millions of Dollars) | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||
Year Ended December 31, | Period from | |||||||||||||||||||||||||||||||||
October 3, 2016 | Period from January | |||||||||||||||||||||||||||||||||
through | 1, 2016 | |||||||||||||||||||||||||||||||||
December 31, | through | |||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | October 2, 2016 | |||||||||||||||||||||||||||||||
Cash flows — operating activities: | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (56) | $ | (254) | $ | (163) | $ | 22,851 | ||||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,533 | 835 | 285 | 532 | ||||||||||||||||||||||||||||||
Deferred income tax expense (benefit), net | (62) | 418 | (76) | (1,270) | ||||||||||||||||||||||||||||||
Unrealized net (gain) loss from mark-to-market valuations of commodities | 380 | 145 | 165 | 36 | ||||||||||||||||||||||||||||||
Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps | 5 | (29) | 11 | — | ||||||||||||||||||||||||||||||
Gain on extinguishment of liabilities subject to compromise (Note 6) | — | — | — | (24,344) | ||||||||||||||||||||||||||||||
Net loss from adopting fresh start reporting (Note 5) | — | — | — | 2,013 | ||||||||||||||||||||||||||||||
Contract claims adjustments of Predecessor (Note 5) | — | — | — | 13 | ||||||||||||||||||||||||||||||
Impairment of long-lived assets (Note 4) | — | 25 | — | — | ||||||||||||||||||||||||||||||
Write-off of intangible and other assets (Note 23) | — | — | — | 45 | ||||||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement (Note 10) | 79 | (213) | 22 | — | ||||||||||||||||||||||||||||||
Change in asset retirement obligation liability | (27) | 112 | — | — | ||||||||||||||||||||||||||||||
Asset Retirement obligation accretion | 50 | 60 | 6 | — | ||||||||||||||||||||||||||||||
Stock-based compensation | 73 | — | — | — | ||||||||||||||||||||||||||||||
Other, net | 92 | 69 | 1 | 63 | ||||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||||
Affiliate accounts receivable/payable — net | — | — | — | 31 | ||||||||||||||||||||||||||||||
Accounts receivable — trade | (207) | 7 | 135 | (216) | ||||||||||||||||||||||||||||||
Inventories | 61 | 22 | 3 | 71 | ||||||||||||||||||||||||||||||
Accounts payable — trade | 90 | (30) | (79) | 26 | ||||||||||||||||||||||||||||||
Commodity and other derivative contractual assets and liabilities | (80) | (1) | (48) | 29 | ||||||||||||||||||||||||||||||
Margin deposits, net | (221) | 146 | (193) | (124) | ||||||||||||||||||||||||||||||
Accrued interest | (105) | (10) | 32 | (10) | ||||||||||||||||||||||||||||||
Accrued taxes | (64) | 33 | 12 | (13) | ||||||||||||||||||||||||||||||
Accrued employee incentive | 40 | (24) | 24 | (30) | ||||||||||||||||||||||||||||||
Alcoa contract settlement (Note 4) | — | 238 | — | — | ||||||||||||||||||||||||||||||
Tax Receivable Agreement payment (Note 10) | (16) | (26) | — | — | ||||||||||||||||||||||||||||||
Major plant outage deferral | (22) | (66) | — | — | ||||||||||||||||||||||||||||||
Other — net assets | 73 | 4 | (2) | (3) | ||||||||||||||||||||||||||||||
Other — net liabilities | (145) | (75) | (54) | 62 | ||||||||||||||||||||||||||||||
Cash provided by (used in) operating activities | 1,471 | 1,386 | 81 | (238) | ||||||||||||||||||||||||||||||
Cash flows — financing activities: | ||||||||||||||||||||||||||||||||||
Issuances of long-term debt (Note 14) | 1,000 | — | — | — | ||||||||||||||||||||||||||||||
Repayments/repurchases of debt (Note 14) | (3,075) | (191) | — | (2,655) | ||||||||||||||||||||||||||||||
Net borrowings under accounts receivable securitization program (Note 13) | 339 | — | — | — | ||||||||||||||||||||||||||||||
Debt tender offer and other debt financing fee | (236) | (8) | — | — | ||||||||||||||||||||||||||||||
Stock repurchase (Note 16) | (763) | — | — | — | ||||||||||||||||||||||||||||||
Incremental Term Loan B Facility (Note 14) | — | — | 1,000 | — | ||||||||||||||||||||||||||||||
Special Dividend (Note 16) | — | — | (992) | — | ||||||||||||||||||||||||||||||
Net proceeds from issuance of preferred stock (Note 5) | — | — | — | 69 | ||||||||||||||||||||||||||||||
Payments to extinguish claims of TCEH first lien creditors (Note 5) | — | — | — | (486) | ||||||||||||||||||||||||||||||
Payment to extinguish claims of TCEH unsecured creditors (Note 5) | — | — | — | (429) | ||||||||||||||||||||||||||||||
Borrowings under TCEH DIP Roll Facilities and DIP Facility (Note 14) | — | — | — | 4,680 | ||||||||||||||||||||||||||||||
TCEH DIP Roll Facilities and DIP Facility financing fees | — | — | — | (112) | ||||||||||||||||||||||||||||||
Other, net | 12 | (2) | (2) | (8) | ||||||||||||||||||||||||||||||
Cash provided by (used in) financing activities | (2,723) | (201) | 6 | 1,059 | ||||||||||||||||||||||||||||||
Cash flows — investing activities: | ||||||||||||||||||||||||||||||||||
Capital expenditures, including LTSA prepayments | (378) | (114) | (48) | (230) | ||||||||||||||||||||||||||||||
Nuclear fuel purchases | (118) | (62) | (41) | (33) | ||||||||||||||||||||||||||||||
Development and growth expenditures (Note 3) | (34) | (190) | — | — | ||||||||||||||||||||||||||||||
Cash acquired in the Merger | 445 | — | — | — | ||||||||||||||||||||||||||||||
Odessa acquisition (Note 3) | — | (355) | — | — | ||||||||||||||||||||||||||||||
Lamar and Forney acquisition — net of cash acquired (Note 3) | — | — | — | (1,343) | ||||||||||||||||||||||||||||||
Changes in restricted cash (Predecessor) | — | — | — | 233 | ||||||||||||||||||||||||||||||
Proceeds from sales of nuclear decommissioning trust fund securities (Note 23) | 252 | 252 | 25 | 201 | ||||||||||||||||||||||||||||||
Investments in nuclear decommissioning trust fund securities (Note 23) | (274) | (272) | (30) | (215) | ||||||||||||||||||||||||||||||
Notes/advances due from affiliates | — | — | — | (41) | ||||||||||||||||||||||||||||||
Other, net | 6 | 14 | 1 | 8 | ||||||||||||||||||||||||||||||
Cash used in investing activities | (101) | (727) | (93) | (1,420) | ||||||||||||||||||||||||||||||
Net change in cash, cash equivalents and restricted cash (Successor); Net change in cash and cash equivalents (Predecessor) | (1,353) | 458 | (6) | (599) | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash — beginning balance (Successor); Cash and cash equivalents — beginning balance (Predecessor) | 2,046 | 1,588 | 1,594 | 1,400 | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash — ending balance (Successor); Cash and cash equivalents — ending balance (Predecessor)
| $ | 693 | $ | 2,046 | $ | 1,588 | $ | 801 |
VISTRA ENERGY CORP. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FOR THREE MONTHS ENDED DECEMBER 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) (Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Vistra | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 315 | $ | (291) | $ | 13 | $ | 37 | $ | 7 | $ | (242) | $ | (161) | $ | (25) | $ | (186) | ||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | — | — | — | — | — | (76) | (76) | — | (76) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense and related charges | 4 | (2) | 3 | 1 | — | 275 | 281 | — | 281 | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 81 | 139 | 147 | 49 | 3 | 25 | 444 | — | 444 | |||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 400 | (154) | 163 | 87 | 10 | (18) | 488 | (25) | 463 | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized net (gain) or loss resulting from hedging transactions | (168) | 291 | 22 | 18 | (9) | 19 | 173 | — | 173 | |||||||||||||||||||||||||||||||||||||||||||||||
Fresh Start / Purchase Accounting Impacts | 14 | (2) | 1 | — | 2 | — | 15 | — | 15 | |||||||||||||||||||||||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 14 | 14 | — | 14 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 11 | 11 | — | 11 | |||||||||||||||||||||||||||||||||||||||||||||||
Transition and merger expenses | 1 | 2 | 7 | 1 | 4 | 13 | 28 | — | 28 | |||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 3 | 4 | 2 | 2 | 2 | (21) | (8) | 6 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA, including Odessa earnout buybacks | $ | 250 | $ | 141 | $ | 195 | $ | 108 | $ | 9 | $ | 18 | $ | 721 | $ | (19) | $ | 702 | ||||||||||||||||||||||||||||||||||||||
Impact of Odessa earnout buybacks | (2) | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 250 | $ | 139 | $ | 195 | $ | 108 | $ | 9 | $ | 18 | $ | 719 | $ | (19) | $ | 700 |
___________ | |
(a) | Includes nuclear fuel amortization of $18 million in ERCOT. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR YEAR ENDED DECEMBER 31, 2018 (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Retail | ERCOT | PJM | NY/NE | MISO | Eliminations | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 712 | $ | (55) | $ | 100 | $ | 79 | $ | 35 | $ | (878) | $ | (7) | $ | (49) | $ | (56) | |||||||||||||||||||||||||||||
Income tax expense (benefit) | — | — | — | — | — | (45) | (45) | — | (45) | ||||||||||||||||||||||||||||||||||||||
Interest expense and related charges | 7 | 12 | 8 | 2 | 1 | 542 | 572 | — | 572 | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 318 | 494 | 413 | 152 | 9 | 86 | 1,472 | — | 1,472 | ||||||||||||||||||||||||||||||||||||||
EBITDA | 1,037 | 451 | 521 | 233 | 45 | (295) | 1,992 | (49) | 1,943 | ||||||||||||||||||||||||||||||||||||||
Unrealized net (gain) or loss resulting from hedging transactions | (206) | 498 | 42 | 40 | (9) | 15 | 380 | — | 380 | ||||||||||||||||||||||||||||||||||||||
Fresh Start / Purchase Accounting Impacts | 26 | (6) | (1) | 9 | 12 | — | 40 | 1 | 41 | ||||||||||||||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement | — | — | — | — | — | 79 | 79 | — | 79 | ||||||||||||||||||||||||||||||||||||||
Non-cash compensation expenses | — | — | — | — | — | 73 | 73 | — | 73 | ||||||||||||||||||||||||||||||||||||||
Transition and merger expenses | 1 | 9 | 14 | 2 | 9 | 196 | 231 | 2 | 233 | ||||||||||||||||||||||||||||||||||||||
Other, net | (13) | (2) | 16 | 9 | 9 | (23) | (4) | (3) | (7) | ||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA, including Odessa earnout buybacks | $ | 845 | $ | 950 | $ | 592 | $ | 293 | $ | 66 | $ | 45 | $ | 2,791 | $ | (49) | $ | 2,742 | |||||||||||||||||||||||||||||
Impact of Odessa earnout buybacks | 18 | 18 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 845 | $ | 968 | $ | 592 | $ | 293 | $ | 66 | $ | 45 | $ | 2,809 | $ | (49) | $ | 2,760 | |||||||||||||||||||||||||||||
___________ | |
(a) | Includes nuclear fuel amortization of $78 million in ERCOT. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - ADJUSTED FREE CASH FLOW FOR YEAR ENDED DECEMBER 31, 2018 (Unaudited) (Millions of Dollars) | |||||||||||
Year Ended December 31, 2018 | |||||||||||
Ongoing | Asset | Vistra Energy | |||||||||
Adjusted EBITDA | $ | 2,809 | $ | (49) | $ | 2,760 | |||||
Interest paid, net (a) | (636) | — | (636) | ||||||||
Taxes paid (b) | (61) | (14) | (75) | ||||||||
Severance | (2) | (20) | (22) | ||||||||
Working capital, margin deposits and derivative related cash activities | (259) | — | (259) | ||||||||
Reclamation and remediation | (41) | (59) | (100) | ||||||||
Taxes related to Alcoa settlement | (45) | — | (45) | ||||||||
Transition and merger expense | (171) | — | (171) | ||||||||
Transition related Capex | (23) | — | (23) | ||||||||
Impact of Odessa earnout buybacks on EBITDA | (18) | — | (18) | ||||||||
Changes in other operating assets and liabilities | 64 | (4) | 60 | ||||||||
Cash provided by operating activities | $ | 1,617 | $ | (146) | $ | 1,471 | |||||
Capital expenditures including LTSA prepayments and nuclear fuel purchases (c) | (510) | — | (510) | ||||||||
Development and growth expenditures | (34) | — | (34) | ||||||||
Other net investing activities (d) | (16) | — | (16) | ||||||||
Free cash flow | $ | 1,057 | $ | (146) | $ | 911 | |||||
Working capital, margin deposits and derivative related cash activities | 259 | — | 259 | ||||||||
Development and growth expenditures | 34 | — | 34 | ||||||||
Severance | 2 | 20 | 22 | ||||||||
Taxes related to Alcoa settlement | 45 | — | 45 | ||||||||
Transition and merger expense | 171 | — | 171 | ||||||||
Transition related Capex | 23 | — | 23 | ||||||||
Other | (2) | — | (2) | ||||||||
Adjusted free cash flow | $ | 1,589 | $ | (126) | $ | 1,463 | |||||
Impact of Odessa earnout buybacks on free cash flow | 22 | $ | — | $ | 22 | ||||||
Adjusted free cash flow before growth | $ | 1,611 | $ | (126) | $ | 1,485 |
____________ |
(a) | Net of interest received. Excludes fees paid on Vistra Operations Credit Facility repricing in February 2018 and refinancing in June 2018, August 2018, and December 2018. |
(b) | Excludes taxes paid related to Alcoa settlement. |
(c) | Includes $114 million LTSA financed capital expenditures. |
(d) | Includes investments in and proceeds from the nuclear decommissioning trust fund and other net investing cash flows. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - 2019 GUIDANCE (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing | Asset Closure | Vistra Energy | |||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||
Net Income | $ | 993 | $ | 1,149 | $ | (66) | $ | (56) | $ | 927 | $ | 1,093 | |||||||||||
Income tax expense | 294 | 338 | — | — | 294 | 338 | |||||||||||||||||
Interest expense and related charges | 589 | 589 | — | — | 589 | 589 | |||||||||||||||||
Depreciation and amortization | 1,550 | 1,550 | — | — | 1,550 | 1,550 | |||||||||||||||||
EBITDA before adjustments | $ | 3,426 | $ | 3,626 | $ | (66) | $ | (56) | $ | 3,360 | $ | 3,570 | |||||||||||
Unrealized net (gain) loss resulting from hedging transactions | (402) | (402) | — | — | (402) | (402) | |||||||||||||||||
Fresh start / purchase accounting impacts | 60 | 60 | — | — | 60 | 60 | |||||||||||||||||
Impacts of Tax Receivable Agreement | 63 | 63 | — | — | 63 | 63 | |||||||||||||||||
Transition and merger expenses | 8 | 8 | — | — | 8 | 8 | |||||||||||||||||
Other, net | 65 | 65 | 1 | 1 | 66 | 66 | |||||||||||||||||
Adjusted EBITDA | $ | 3,220 | $ | 3,420 | $ | (65) | $ | (55) | $ | 3,155 | $ | 3,365 | |||||||||||
Interest payments | (566) | (566) | — | — | (566) | (566) | |||||||||||||||||
Tax payments (a) | 132 | 132 | — | — | 132 | 132 | |||||||||||||||||
Working capital and margin deposits | 161 | 161 | — | — | 161 | 161 | |||||||||||||||||
Reclamation and remediation | (60) | (60) | (118) | (118) | (178) | (178) | |||||||||||||||||
Other changes in operating assets and liabilities | (58) | (58) | 26 | 36 | (32) | (22) | |||||||||||||||||
Cash provided by operating activities | $ | 2,829 | $ | 3,029 | $ | (157) | $ | (137) | $ | 2,672 | $ | 2,892 | |||||||||||
Capital expenditures including nuclear fuel | (586) | (586) | — | — | (586) | (586) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | (156) | (156) | — | — | (156) | (156) | |||||||||||||||||
Other net investing activities | (20) | (20) | 2 | 2 | (18) | (18) | |||||||||||||||||
Free cash flow | $ | 2,067 | $ | 2,267 | $ | (155) | $ | (135) | $ | 1,912 | $ | 2,132 | |||||||||||
Working capital and margin deposits | (161) | (161) | — | — | (161) | (161) | |||||||||||||||||
Solar and Moss Landing development and other growth expenditures | 156 | 156 | — | — | 156 | 156 | |||||||||||||||||
Transition and merger expenses | 15 | 15 | — | — | 15 | 15 | |||||||||||||||||
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
IRVING, Texas, Feb. 26, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) today announced that its Board of Directors declared a quarterly dividend of $0.125 per share of Vistra's common stock, or $0.50 per share on an annualized basis. The dividend is payable on March 29, 2019, to shareholders of record as of March 15, 2019. The ex-dividend date will be March 14, 2019.
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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, (iv) with respect to the proposed Crius acquisition, (x) the ability of the parties to obtain all required approvals, including regulatory approvals and Crius unitholder approval, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra to successfully integrate the Crius business as currently projected and (v) 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.
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SOURCE Vistra Energy
IRVING, Texas, Feb. 20, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) ("Vistra Energy") announced today the final results of its previously announced cash tender offer (the "Tender Offer") for its outstanding 7.375% Senior Notes due 2022 (the "2022 Notes") and related consent solicitation (the "Consent Solicitation"), upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement, dated January 22, 2019 (the "Offer to Purchase and Consent Solicitation").
According to information received from Global Bondholder Services Corporation, the depositary and information agent for the Tender Offer, as of midnight, New York City time, on February 19, 2019 (the "Expiration Date"), Vistra Energy had received additional valid tenders (the "Additional Tenders") from holders of the 2022 Notes as set forth in the table below.
Title of 2022 | CUSIP Number | Aggregate Principal Amount Outstanding Prior to Tender Offer | Aggregate Principal Amount of 2022 Notes Anticipated to be Accepted for Purchase as of February 4, 2019 | Additional Aggregate Principal Amount of 2022 Notes Anticipated to be Accepted for Purchase as of February 19, 2019 | Total Aggregate Principal Amount of 2022 Notes Tendered | Tender Offer Consideration for Additional Tenders (1) |
7.375% Senior | 26817RAN8 | $1,707,341,000 | $1,192,155,000 | $425,000 | $1,192,580,000 | $1,008.38 |
(1) | Per $1,000 principal amount of 2022 Notes validly tendered and accepted for purchase by Vistra Energy. |
Because the aggregate principal amount of the 2022 Notes tendered at or prior to the Expiration Date (including those accepted for purchase as of the Early Tender Date) would result in an Aggregate Maximum Tender Amount (as defined in the Offer to Purchase and Consent Solicitation) that is less than $1,275,000,000, the 2022 Notes that were validly tendered after the Early Tender Date but at or prior to the Expiration Date will be accepted for purchase without proration.
The 2022 Notes relating to the Additional Tenders will be purchased on the "Final Settlement Date," which is currently expected to occur on February 20, 2019.
Full details of the terms and conditions of the Tender Offer and the Consent Solicitation are described in the Offer to Purchase and Consent Solicitation and the accompanying Letter of Transmittal and Consent, which were sent by Vistra Energy to holders of the 2022 Notes. Holders of the 2022 Notes are encouraged to read these documents as they contain important information regarding the Tender Offer and the Consent Solicitation.
Vistra Energy has retained J.P. Morgan Securities LLC to act as the Lead Dealer Manager and Solicitation Agent for the Tender Offer and Consent Solicitation. Global Bondholder Services Corporation has been retained to serve as the Depositary and Information Agent for the Tender Offer. Questions or requests for assistance regarding the terms of the Tender Offer and the Consent Solicitation should be directed to J.P. Morgan Securities LLC at 383 Madison Avenue, New York, New York 10179, Attn: Liability Management Group, (866) 834-4666 (toll free), (212) 834-3260 (collect). Requests for the Offer to Purchase and Consent Solicitation and other documents relating to the Tender Offer and the Consent Solicitation may be directed to Global Bondholder Services Corporation at 65 Broadway – Suite 404, New York, New York 10006, Attn: Corporate Actions, (212) 430-3774 (for banks and brokers) or (866) 470-3900 (for all others).
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities issued in connection with any notes offering, nor shall there be any sale of the securities issued in such an offering in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers of any such securities will be made in the United States only by means of a private offering memorandum pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
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 5,400 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, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, (iv) with respect to the proposed Crius acquisition, (x) the ability of the parties to obtain all required approvals, including regulatory approvals and Crius unitholder approval, (y) the parties ability to otherwise successfully consummate the transaction, and (z) for Vistra to successfully integrate the Crius business as currently projected and (v) 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.
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SOURCE Vistra Energy
IRVING, Texas, Feb. 20, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) and Crius Energy Trust (TSX: KWH.UN) have entered into an amendment to their existing purchase agreement pursuant to which Vistra has agreed to increase its acquisition price for Crius Energy such that unitholders of Crius Energy will now receive C$8.80 per trust unit, an increase of C$1.23 per trust unit from the parties' prior agreement. The purchase price is in addition to Crius Energy's previously-declared C$0.209 per unit distribution for the first quarter of 2019.
Vistra and Crius Energy negotiated the amendment in response to the receipt by the Crius Energy Board of Directors of an unsolicited acquisition proposal from a third party bidder dated Feb. 14, 2019 that was higher than the purchase price previously agreed by Vistra and Crius Energy. Vistra's management and Board of Directors carefully reviewed the terms of the third party acquisition proposal and determined that the Crius Energy transaction remained attractive and accretive at the new price of C$8.80 per trust unit, or approximately US$378 million plus the assumption of Crius Energy net debt of approximately US$108 million.
Curt Morgan, Vistra's president and chief executive officer, stated, "Vistra's decision to increase the purchase price for the Crius Energy portfolio came after a careful evaluation of the economics of the transaction. At a purchase price of approximately 4x EV/EBITDA, this transaction is still projected to be EBITDA and free cash flow accretive and to exceed Vistra's investment threshold of 500-600 basis points above our cost of capital, while not interfering with Vistra's previously announced capital allocation and deleveraging plans."
Morgan added, "Since we first announced the transaction with Crius Energy on Feb. 7, our teams have had the opportunity to continue diligence work, which has only reinforced Vistra's confidence in the strategic and cultural fit of the two organizations, as well as our ability to achieve the synergy targets we previously announced. As a result, the Vistra management team and Board of Directors agreed it would be in the best interest of Vistra and its shareholders to pursue the Crius Energy transaction at a higher price, enabling Vistra to acquire this attractive platform while still remaining disciplined on the overall deal economics."
Brian Burden, chairman of Crius Energy's Board of Directors, commented, "After receiving an unsolicited third-party acquisition proposal reflecting a higher per-unit purchase price for Crius Energy, the Crius Energy management team and Board of Directors advised Vistra of the proposal, which led to subsequent discussions. Following these discussions, our Board unanimously approved the amendment to the purchase agreement, which reflects an increase in proceeds to Crius Energy unitholders of more than C$1 per unit, which is higher than the unsolicited third-party acquisition proposal received by the Board. At an approximately 60 percent premium to Crius Energy's unit price as of market close on Feb. 6, 2019, we believe the proposed transaction with Vistra, as amended, is in the best interest of the Crius Energy unitholders, customers, and employees, and Crius Energy's Independent Directors and Board unanimously support the transaction."
Transaction Highlights
Transaction and Approvals
The definitive agreement (as amended) includes customary deal protections, including non-solicitation covenants, the right of Vistra to match any competing proposals, and the payment of a termination fee to Vistra under certain circumstances. In the amendment, in consideration for the increased purchase price, the parties agreed to increase the termination fee payable to Vistra under the agreement to C$25.1 million from C$10.4 million, together with a corresponding increase in the reverse termination fee payable to Crius Energy under the agreement.
In addition to the C$8.80 per trust unit to be received by Crius Energy unitholders under the proposed transaction, Crius Energy unitholders will also continue to be entitled to receive Crius Energy's C$0.209 per unit distribution for the first quarter of 2019 previously declared on Jan. 16, 2019, resulting in total consideration in the amount of C$9.009 per unit. The declared distribution was amended on Feb. 15, 2019 such that (a) the distribution record date will be Mar. 26, 2019, and (b) the distribution payment date will be the earlier of June 17, 2019 and the closing date of the transaction. Under the definitive agreement, Crius Energy has agreed not to declare any further distributions prior to the closing.
The proposed transaction is subject to the approval of at least two-thirds of Crius Energy's unitholders voting at the special unitholder meeting scheduled for March 28, 2019. Unitholders of Crius Energy representing approximately 17 percent of the units, including all of the directors and senior officers of Crius Energy, previously entered into voting and support agreements with Vistra in support of the transaction (including as amended).
In addition to satisfying the closing conditions and consents customary for a transaction of this nature, the transaction is also subject to applicable regulatory approvals, including the expiration or termination of any applicable waiting period under the United States Hart-Scott-Rodino Antitrust (HSR) Improvements Act, and approval by the Federal Energy Regulatory Commission (FERC). Vistra and Crius Energy made the HSR and FERC filings on Feb. 19, 2019.
Pending the receipt of all necessary approvals and the fulfillment of all other customary closing conditions, the parties expect the transaction to close in the second quarter of 2019.
Additional Information
Vistra has posted a presentation with additional details of the transaction on the investor relations section of its website at www.vistraenergy.com.
Crius Energy will include the full details of the transaction in a management information circular describing the matters that will be considered at the special meeting of Crius Energy's unitholders, which is expected to be mailed in early March 2019. A copy of the definitive agreement has been, and a copy of the amendment will be, made available on SEDAR under Crius Energy's issuer profile at www.sedar.com.
Crius Energy Board Recommendation
Crius Energy's Board of Directors, on the unanimous recommendation of its Independent Directors, approved the transaction and the related amendment, and will recommend that Crius Energy's unitholders vote in favor of the transaction. The Board received a fairness opinion from Guggenheim Securities LLC determining that, based upon and subject to the assumptions, limitations, and qualifications stated in the opinion, the revised per unit consideration to be received by Crius Energy's unitholders under the transaction is fair, from a financial point of view, to the unitholders.
A copy of the fairness opinion, which should be read carefully and in its entirety, and other relevant background information, will be included in the management information circular that will be mailed to Crius Energy's unitholders in connection with the special meeting.
Advisors
Guggenheim Securities LLC is serving as financial advisor to Crius Energy and Bennett Jones LLP and Baker Botts LLP are serving as legal advisors to Crius Energy.
RBC Capital Markets is serving as financial advisor to Vistra and Latham & Watkins, LLP is serving as legal advisor to Vistra.
Company Contacts:
Allan Koenig
Vistra Media
214-875-8004
Media.Relations@vistraenergy.com
Molly Sorg
Vistra Investor Relations
214-812-0046
Investor@vistraenergy.com
Michael Fallquist
Crius Energy Chief Executive Officer
mfallquist@criusenergy.com
(203) 663-7545
Roop Bhullar
Crius Energy Chief Financial Officer
rbhullar@criusenergy.com
(203) 883-9900
Kelly Castledine
Crius Energy Investor Relations
kcastledine@criusenergy.com
(416) 644-1753
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 5,400 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, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
About Crius Energy Trust
With approximately 1 million residential customer equivalents, Crius Energy provides competitive electricity and natural gas products to residential and commercial customers in 19 states and the District of Columbia in the United States. The Company sells energy products through a family of brands strategy utilizing a multi-channel sales approach including exclusive partnerships, direct-to-consumer channels, and broker marketing channels. Crius Energy offers consumers a broad suite of energy products and services including fixed and variable contracts, renewable energy, and bundled products to support their energy needs beyond what is offered by their local utility.
Cautionary Note Regarding Forward-Looking Statements
Material information pertaining to Crius Energy may be found on SEDAR under the Trust's issuer profile at www.sedar.com or on the Trust's website at www.criusenergytrust.ca.
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") and Crius Energy Trust ("Crius Energy") operate and beliefs of and assumptions made by Vistra Energy's and Crius 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 or Crius Energy. The definitive agreement contains conditions to closing and there is no assurance that these conditions will be fulfilled prior to the outside date provided therein. 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 and Crius Energy believe that in making any such forward-looking statement, Vistra Energy's and Crius 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 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 and the ability of the parties to achieve all of the conditions to the closing in order to consummate the transaction (including obtaining any necessary regulatory approvals and Crius Energy unitholder approval for the transaction).
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, neither Vistra Energy nor Crius Energy will 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 or Crius 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.
SOURCE Vistra Energy
IRVING, Texas, Feb. 7, 2019 /PRNewswire/ -- Today, Vistra Energy (NYSE: VST) and Crius Energy Trust (TSX: KWH.UN) announced they have entered into a definitive agreement pursuant to which Vistra will acquire Crius Energy for cash consideration of C$7.57 per trust unit. Following the closing of the transaction, Vistra will be the leading residential electricity provider in the nation with operations in 19 states and the District of Columbia.
"We are excited to announce this transaction, which will accelerate Vistra's retail growth expansion plans via the acquisition of a high-quality electricity and gas retailer serving primarily residential and small business customers," said Curt Morgan, Vistra's President and Chief Executive Officer. "The Crius Energy portfolio has a high degree of overlap with Vistra's generation fleet and complements Vistra's existing municipal aggregation and large commercial and industrial portfolio in the Midwest and Northeast markets. We welcome the Crius Energy team to the Vistra family."
Morgan added, "This transaction is consistent with Vistra's stated strategy to grow our retail business at attractive multiples while remaining committed to our capital allocation and deleveraging plans."
The announcement of this transaction follows a competitive strategic review process led and unanimously recommended by the Independent Directors of Crius Energy, and unanimously approved by Crius Energy's Board of Directors.
"We are pleased to announce this transaction and are confident that it is in the best interests of our unitholders and other stakeholders," said Brian Burden, Chairman of Crius Energy's Board of Directors. "This transaction is the result of an exhaustive review of strategic alternatives undertaken by our Board of Directors, with the assistance of outside advisors, to maximize unitholder value and unlock the company's intrinsic value, while eliminating execution risk. We are confident that this transaction represents the best outcome for our unitholders and other stakeholders and look forward to completing the transaction."
The purchase price of C$7.57 per unit represents an approximately 38 percent premium to Crius Energy's unit price of C$5.48 as of market close on Feb. 6, 2019. In addition to the purchase price, Crius Energy unitholders will receive Crius Energy's previously-declared distribution for the first quarter of 2019 in the amount of C$0.209 per unit for total consideration in the amount of C$7.779 per unit. Under the definitive agreement, Crius Energy has agreed not to declare any further distributions prior to the closing.
"We are excited to have reached an agreement with Vistra, a leading integrated power company serving approximately 2.9 million customers with more than 40 GW of generation," said Michael Fallquist, Chief Executive Officer of Crius Energy. "Partnered with Vistra, Crius Energy will be well-positioned to continue providing our customers and strategic partners with differentiated products and services."
Transaction Highlights
Transaction and Approvals
The proposed transaction has been structured as a sale of two wholly owned subsidiaries of Crius Energy that indirectly own the Crius Energy business. The definitive agreement includes customary deal protections, including non-solicitation covenants, the right of Vistra to match any competing proposals, and the payment of a termination fee to Vistra under certain circumstances.
The proposed transaction is subject to the approval of at least two-thirds of Crius Energy's unitholders. Unitholders of Crius Energy representing approximately 17 percent of the units, including all of the directors and senior officers of Crius Energy, have entered into voting and support agreements with Vistra in support of the transaction.
In addition to satisfying the closing conditions and consents customary for a transaction of this nature, the transaction is also subject to applicable regulatory approvals, including the expiration or termination of any applicable waiting period under the United States Hart-Scott-Rodino Antitrust Improvements Act, and approval by the Federal Energy Regulatory Commission (FERC).
Pending the receipt of all necessary approvals and the fulfillment of all other customary closing conditions, the parties expect the transaction to close in the second quarter of 2019.
Additional Information
Vistra has posted a presentation with additional details of the transaction on the investor relations section of its website at www.vistraenergy.com.
Crius Energy will include the full details of the transaction in a management information circular describing the matters that will be considered at the special meeting of Crius Energy's unitholders, which is expected to be mailed in early March 2019. A copy of the definitive agreement will also be made available on SEDAR under Crius Energy's issuer profile at www.sedar.com.
Crius Energy Board Recommendation
Crius Energy's Board of Directors, on the unanimous recommendation of its Independent Directors, approved the transaction and will recommend that Crius Energy's unitholders vote in favor of the transaction. The Board received a fairness opinion from Guggenheim Securities LLC determining that, based upon and subject to the assumptions, limitations, and qualifications stated in the opinion, the per unit consideration to be received by Crius Energy's unitholders under the transaction is fair, from a financial point of view, to the unitholders.
A copy of the fairness opinion, which should be read carefully and in its entirety, and other relevant background information, will be included in the management information circular that will be mailed to Crius Energy's unitholders in connection with the special meeting.
Advisors
Guggenheim Securities LLC is serving as financial advisor to Crius Energy and Bennett Jones LLP and Baker Botts LLP are serving as legal advisors to Crius Energy.
RBC Capital Markets is serving as financial advisor to Vistra and Latham & Watkins, LLP is serving as legal advisor to Vistra.
Company Contacts:
Allan Koenig
Vistra Media
214-875-8004
Media.Relations@vistraenergy.com
Molly Sorg
Vistra Investor Relations
214-812-0046
Investor@vistraenergy.com
Michael Fallquist
Crius Energy Chief Executive Officer
mfallquist@criusenergy.com
(203) 663-7545
Roop Bhullar
Crius Energy Chief Financial Officer
rbhullar@criusenergy.com
(203) 883-9900
Kelly Castledine
Crius Energy Investor Relations
kcastledine@criusenergy.com
(416) 644-1753
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 5,400 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, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
About Crius Energy Trust
With approximately 1 million residential customer equivalents, Crius Energy provides competitive electricity and natural gas products to residential and commercial customers in 19 states and the District of Columbia in the United States. The Company sells energy products through a family of brands strategy utilizing a multi-channel sales approach including exclusive partnerships, direct-to-consumer channels, and broker marketing channels. Crius Energy offers consumers a broad suite of energy products and services including fixed and variable contracts, renewable energy, and bundled products to support their energy needs beyond what is offered by their local utility.
Cautionary Note Regarding Forward-Looking Statements
Material information pertaining to Crius Energy may be found on SEDAR under the Trust's issuer profile at www.sedar.com or on the Trust's website at www.criusenergytrust.ca.
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") and Crius Energy Trust ("Crius Energy") operate and beliefs of and assumptions made by Vistra Energy's and Crius 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 or Crius Energy. The definitive agreement contains conditions to closing and there is no assurance that these conditions will be fulfilled prior to the outside date provided therein. 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 and Crius Energy believe that in making any such forward-looking statement, Vistra Energy's and Crius 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 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 and the ability of the parties to achieve all of the conditions to the closing in order to consummate the transaction (including obtaining any necessary regulatory approvals and Crius Energy unitholder approval for the transaction).
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, neither Vistra Energy nor Crius Energy will 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 or Crius 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.
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SOURCE Vistra Energy
IRVING, Texas, Feb. 6, 2019 /PRNewswire/ -- Vistra Energy (NYSE: VST) plans to report its 2018 financial and operating results on Thursday, February 28, 2019. Management will present the results during a webcast beginning at 8 a.m. ET (7 a.m. CT).
The live, listen-only webcast of the conference call can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com under "Events and Presentations." For those unable to participate in the live event, a replay of the call will be available on the Vistra Energy website for one year following the call.
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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SOURCE Vistra Energy
IRVING, Texas, Feb. 5, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) ("Vistra Energy") announced today the results to date of its previously announced cash tender offer (the "Tender Offer") for its outstanding 7.375% Senior Notes due 2022 (the "2022 Notes") and related consent solicitation (the "Consent Solicitation"), upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement, dated January 22, 2019 (the "Offer to Purchase and Consent Solicitation").
According to information received from Global Bondholder Services Corporation, the depositary and information agent for the Tender Offer, as of 5:00 p.m., New York City time, on February 4, 2019 (the "Early Tender Date"), Vistra Energy had received valid tenders from holders of the 2022 Notes that were not validly withdrawn as set forth in the table below.
Title of 2022 Notes | CUSIP Number | Aggregate Principal Amount Outstanding Prior to Tender Offer | Aggregate Principal Amount of 2022 Notes Anticipated to be Accepted for Purchase | Tender Offer Consideration (1) | Early Tender Premium (1) | Total Consideration (1)(2) |
7.375% Senior Notes due 2022 | 26817RAN8 | $1,707,341,000 | $1,192,155,000 | $1,008.38 | $30.00 | $1,038.38 |
(1) | Per $1,000 principal amount of 2022 Notes validly tendered (and not validly withdrawn) and accepted for purchase by Vistra Energy. |
(2) | Includes the Early Tender Premium (as defined in the Offer to Purchase and Consent Solicitation) for 2022 Notes validly tendered prior to the Early Tender Date (and not validly withdrawn) and accepted for purchase by Vistra Energy. |
Because the aggregate principal amount of the 2022 Notes tendered at or prior to the Early Tender Date would result in an Aggregate Maximum Tender Amount (as defined in the Offer to Purchase and Consent Solicitation) that is less than $1,275,000,000, the 2022 Notes that were validly tendered and not validly withdrawn at or prior to the Early Tender Date will be accepted for purchase without proration. Subject to the satisfaction or waiver of all remaining conditions to the Tender Offer described in the Offer to Purchase and Consent Solicitation having been either satisfied or waived by Vistra Energy, Vistra Energy intends to accept for purchase all tendered 2022 Notes.
The 2022 Notes will be purchased on the "Early Settlement Date," which is currently expected to occur on February 6, 2019. The Financing Condition (as defined in the Offer to Purchase and Consent Solicitation) with respect to the Tender Offer is expected to be satisfied on February 6, 2019, upon the closing of Vistra Energy's previously announced offering of $1,300,000,000 in aggregate principal amount of 5.625% Senior Notes due 2027.
In addition, the Requisite Consent (as defined in the Offer to Purchase and Consent Solicitation) to effect the Proposed Amendments (as defined in the Offer to Purchase and Consent Solicitation) with respect to the indenture relating to the 2022 Notes has been received.
Full details of the terms and conditions of the Tender Offer and the Consent Solicitation are described in the Offer to Purchase and Consent Solicitation and the accompanying Letter of Transmittal and Consent, which were sent by Vistra Energy to holders of the 2022 Notes. Holders of the 2022 Notes are encouraged to read these documents as they contain important information regarding the Tender Offer and the Consent Solicitation.
Vistra Energy has retained J.P. Morgan Securities LLC to act as the Lead Dealer Manager and Solicitation Agent for the Tender Offer and Consent Solicitation. Global Bondholder Services Corporation has been retained to serve as the Depositary and Information Agent for the Tender Offer. Questions or requests for assistance regarding the terms of the Tender Offer and the Consent Solicitation should be directed to J.P. Morgan Securities LLC at 383 Madison Avenue, New York, New York 10179, Attn: Liability Management Group, (866) 834-4666 (toll free), (212) 834-3260 (collect). Requests for the Offer to Purchase and Consent Solicitation and other documents relating to the Tender Offer and the Consent Solicitation may be directed to Global Bondholder Services Corporation at 65 Broadway – Suite 404, New York, New York 10006, Attn: Corporate Actions, (212) 430-3774 (for banks and brokers) or (866) 470-3900 (for all others).
None of Vistra Energy, its board of directors or officers, the Lead Dealer Manager and Solicitation Agent, the Depositary and Information Agent, or the Trustee or any of their respective affiliates is making any recommendation as to whether Holders should tender any 2022 Notes in response to the Tender Offer or deliver any consents pursuant to the Consent Solicitation. Holders must make their own decision as to whether to tender their 2022 Notes and, if applicable, to deliver their consents, and, if so, the principal amount of 2022 Notes as to which action is to be taken.
The Tender Offer and the Consent Solicitation are only being made by, and pursuant to, the Offer to Purchase and Consent Solicitation and the accompanying Letter of Transmittal and Consent. This press release is neither an offer to purchase nor a solicitation of an offer to sell any 2022 Notes in the Tender Offer. The Tender Offer and the Consent Solicitation are not being made to holders of 2022 Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky, or other laws of such jurisdiction. In any jurisdiction in which the Tender Offer and the Consent Solicitation are required to be made by a licensed broker or dealer, the Tender Offer and the Consent Solicitation will be deemed to be made on behalf of Vistra Energy by the Lead Dealer Manager and Solicitation Agent, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities issued in connection with any notes offering, nor shall there be any sale of the securities issued in such an offering in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers of any such securities will be made in the United States only by means of a private offering memorandum pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
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 5,400 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, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
Cautionary Note Regarding Forward-Looking Statements
The information presented herein includes forward-looking statements. 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) 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.
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.
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SOURCE Vistra Energy
IRVING, Texas, Jan. 22, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the pricing of an upsized private offering (the "Offering") of $1.3 billion aggregate principal amount of senior notes due 2027 (the "2027 Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The 2027 Notes will be senior, unsecured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The 2027 Notes will bear interest at the rate of 5.625% per annum and will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries. The Offering is expected to close on February 6, 2019, subject to customary closing conditions. The purpose of the Offering is (i) to purchase and/or redeem for cash outstanding 2022 Notes (as defined below), (ii) to pay fees and expenses related to the Offering and incurred in connection with the Tender Offer (as defined below) and/or redemption and (iii) for general corporate purposes. The 2027 Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
The Company also announced today that it is commencing a cash tender offer (the "Tender Offer") to purchase its outstanding 7.375% Senior Notes due 2022 (the "2022 Notes") for a maximum aggregate purchase price (excluding accrued and unpaid interest) of up to $1.275 billion (subject to increase or decrease by the Company, the "Aggregate Maximum Tender Amount").
The price offered in the Tender Offer for the 2022 Notes and other information relating to the Tender Offer and the Consent Solicitation (as defined below) are set forth in the table below.
Dollars per $1,000 Principal Amount of 2022 Notes | ||||||
Issuer (1) | Title of Notes | CUSIP Number | Aggregate | Tender Offer | Early Tender | Total |
Vistra Energy Corp. | 2022 Notes | 26817RAN8 | $1,707,341,000 | $1,008.38 | $30.00 | $1,038.38 |
(1) | Vistra Energy Corp. is successor in interest to Dynegy Inc. as a result of their merger, which closed on April 9, 2018. |
(2) | Excludes accrued and unpaid interest, which will be paid in addition to the Tender Offer Consideration or the Total Consideration, as applicable. |
(3) | No separate consent payment or fee is being paid to holders in the Consent Solicitation. |
In conjunction with the Tender Offer, the Company is soliciting (the "Consent Solicitation") consents (the "Consents") from each holder (individually, a "Holder," and collectively, the "Holders") of the 2022 Notes, subject to the terms and conditions set forth in the Offer to Purchase (as defined below), to certain proposed amendments (the "Proposed Amendments") to the indenture dated as of October 27, 2014 (as supplemented, the "Indenture"), among Vistra Energy (as successor in interest to Dynegy), the subsidiary guarantors party thereto and Wilmington Trust, as trustee. The Proposed Amendments would amend the Indenture as described herein to, among other things, decrease the minimum notice period for redemptions of the 2022 Notes to three business days (the "Redemption Amendment") and eliminate substantially all of the restrictive covenants and certain events of default under the Indenture (the "Covenant Amendments"). Delivery of Consents to the Proposed Amendments by Holders of at least a majority of the aggregate principal amount of the 2022 Notes is required for the adoption of the Proposed Amendments with respect to the 2022 Notes. In the event of any proration of the 2022 Notes, the Consents delivered with respect to the 2022 Notes shall be null and void for purposes of the Covenant Amendments, but they shall be effective for purposes of the Redemption Amendment regardless of proration.
The Tender Offer and Consent Solicitation are being made upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement, dated January 22, 2019 (as the same may be amended or supplemented from time to time, the "Offer to Purchase"), including the Financing Condition (as defined below) and in the related Letter of Transmittal and Consent (as the same may be amended or supplemented from time to time, the "Letter of Transmittal" and, together with the Offer to Purchase, the "Tender Offer Materials"). The Tender Offer and the Consent Solicitation are open to all registered Holders of the 2022 Notes. The Company reserves the right, but is under no obligation, to increase the Aggregate Maximum Tender Amount, without extending withdrawal rights except as required by law. The amount of 2022 Notes to be purchased may be prorated as set forth in the Offer to Purchase.
Subject to the terms and conditions of the Tender Offer, each Holder who validly tenders and does not subsequently validly withdraw its 2022 Notes at or prior to 5:00 p.m., New York City time, on February 4, 2019 (the "Early Tender Date") will be entitled to receive the Total Consideration (as set forth in the table above), plus accrued and unpaid interest up to, but not including, the Early Settlement Date (as defined below) if and when such 2022 Notes are accepted for payment. Holders who validly tender their 2022 Notes after the Early Tender Date but at or prior to midnight, New York City time, on February 19, 2019, or such other date as the Company extends the Tender Offer or Consent Solicitation (such date and time, as it may be extended, the "Expiration Date") will be entitled to receive only tender offer consideration (the "Tender Offer Consideration") equal to the Total Consideration less the Early Tender Premium (as set forth in the table above), plus accrued and unpaid interest up to, but not including, the applicable settlement date, if and when such 2022 Notes are accepted for payment.
Payments for the 2022 Notes purchased will include accrued and unpaid interest from and including the last interest payment date applicable to the 2022 Notes up to, but not including, the applicable settlement date for the 2022 Notes accepted for purchase. The settlement date for the 2022 Notes that are validly tendered on or prior to the Early Tender Date is expected to be February 6, 2019, two business days following the scheduled Early Tender Date (the "Early Settlement Date"). The settlement date for the 2022 Notes that are validly tendered following the Early Tender Date but on or prior to the Expiration Date is expected to be February 20, 2019, one business day following the scheduled Expiration Date (the "Final Settlement Date").
Vistra Energy's obligation to accept for purchase, and to pay for, the 2022 Notes validly tendered pursuant to the Tender Offer is subject to, and conditioned upon, among other things, the receipt by the Company of the net proceeds expected from the Offering (on terms and conditions reasonably satisfactory to the Company, the "Financing Condition"). We expect to use the net proceeds from the Financing Condition to finance our payments of the Tender Offer Consideration and the Total Consideration, as applicable, and any fees payable in connection with the Tender Offer and Consent Solicitation, subsequent to the date hereof and on or prior to the Final Settlement Date.
The Company's obligation to consummate the Tender Offer is subject to the Financing Condition and the General Conditions (as defined in the Offer to Purchase). The Tender Offer is not contingent upon the tender of any minimum principal amount of 2022 Notes or obtaining the Requisite Consent (as defined in the Offer to Purchase).
The Company also intends to issue a conditional notice of redemption for 2022 Notes that are not accepted for purchase in the Tender Offer and Consent. The notice of redemption will be conditioned upon, among other things, the satisfaction of the Financing Condition, and will provide that if the conditions to the Tender Offer are satisfied but less than the Aggregate Maximum Tender Amount is purchased in the Tender Offer, the Company will redeem 2022 Notes for an aggregate purchase price (excluding accrued interest) equal to the Aggregate Maximum Tender Amount minus the aggregate purchase price (excluding accrued interest) for 2022 Notes accepted for payment in the Tender Offer (the "Redemption"). If the conditions to the Redemption are satisfied, we expect that the Redemption would occur on or about February 21, 2019 at the then-applicable redemption price of 103.688%. In the event that the conditions specified in the notice of redemption are not satisfied, the redemption will not occur.
Vistra Energy has retained J.P. Morgan Securities LLC to serve as the Lead Dealer Manager and Solicitation Agent for the Tender Offer and Consent Solicitation. Global Bondholder Services Corporation has been retained to serve as the Depositary and Information Agent for the Tender Offer. Questions regarding the Tender Offer may be directed to J.P. Morgan Securities LLC at 383 Madison Avenue, New York, New York 10179, (866) 834-4666. Requests for the Tender Offer Materials may be directed to Global Bondholder Services Corporation at 65 Broadway – Suite 404, New York, New York 10006, Attn: Corporate Actions, (212) 430-3774 (for banks and brokers) or (866) 470-3900 (for all others).
Vistra Energy is making the Tender Offer only by, and pursuant to, the terms of the Tender Offer Materials. None of Vistra Energy, the Lead Dealer Manager and Solicitation Agent, or the Depositary and Information Agent make any recommendation as to whether Holders should tender or refrain from tendering their 2022 Notes and delivering Consents. Holders must consult their own investment and tax advisors and make their own decisions as to whether to tender 2022 Notes and deliver Consents and, if so, the principal amount of the 2022 Notes to tender. The Tender Offer and Consent Solicitation are not being made to holders of the 2022 Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Tender Offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of Vistra Energy by the Lead Dealer Manager and Solicitation Agent, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This press release does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any new securities, including in connection with the Financing Condition, nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful. Capitalized terms used in this press release but not otherwise defined herein have the meanings assigned to them in the Tender Offer Materials.
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 5,400 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, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
Cautionary Note Regarding Forward-Looking Statements
The information presented herein includes forward-looking statements within the meaning of the Private Notes Litigation Reform Act of 1995, Section 27A of the Notes Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) those additional risks and factors discussed in reports filed with the Notes 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.
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.
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SOURCE Vistra Energy
IRVING, Texas, Jan. 22, 2019 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the launch of a private offering (the "Offering") of $700 million aggregate principal amount of senior notes due 2027 (the "Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be senior, unsecured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The Notes will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries.
The Company intends to use the proceeds of the Offering (i) to purchase and/or redeem for cash outstanding 7.375% Senior Notes due 2022 issued by Dynegy Inc., as predecessor to Vistra Energy, (ii) to pay fees and expenses related to the Offering and (iii) for general corporate purposes.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
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 5,400 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, solar and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) 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.
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.
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SOURCE Vistra Energy
IRVING, Texas, Jan. 18, 2019 /PRNewswire/ -- TXU Energy, the energy retail subsidiary of Vistra Energy (NYSE: VST), today announced a series of energy assistance programs intended to assist customers who have been adversely impacted by the extended federal government shutdown. The announcement is intended to expand awareness of these efforts, respond to customer inquiries, and ensure impacted customers are informed and able to avail themselves of all available options. This support is similar to the company's previous customer assistance programs.
"We understand that our customers may have had their steady paycheck or regular income disrupted because of the furlough," said Scott Hudson, president of TXU Energy. "In these circumstances, we believe in stepping up and doing our part to provide customers with some relief. We also want to remind customers who are experiencing financial hardship about TXU Energy Aid."
TXU Energy Aid has helped Texas families going through hard times keep their homes powered and safe for more than 35 years, including providing much needed assistance during natural disasters like Hurricane Harvey in 2017.
New program details for impacted, eligible federal workers include:
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Consecutively ranked as one of the Top Places to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
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Media Relations
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MediaHotline@txu.com
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SOURCE TXU Energy
IRVING, Texas, Jan. 17, 2019 /PRNewswire/ -- Today the Public Utility Commission of Texas (PUCT) took an important and necessary step to ensure the long-term reliability of the electric market while balancing the cost to consumers. The state's electric system is critical to the strength of the Texas economy and this decision sends the proper signal of confidence that the competitive electric market can deliver reliable and affordable electricity for Texans. Vistra Energy (NYSE: VST) supports this reasoned action and is appreciative of the careful consideration and substantial time the PUCT has given to this significant effort.
Since 2002, competition in Texas has produced among the lowest wholesale electric prices and one of the most reliable systems in the United States. Residential and business customers have benefited greatly from the competitive electric market. As the Texas electric system evolves from older, less-efficient technology, proper price signals must be sent to incentivize investment in maintaining the existing generation facilities and developing new, more efficient technology to continue the reliable and competitively priced access to electricity by Texas consumers.
"This thoughtful move by the PUCT is all about the continued reliability of the electric market and support for the growing Texas economy, and was made after significant, broad-based input," said Curt Morgan, President and CEO of Vistra Energy. "We believe this is the right decision for the long-term success of the competitive electric market and for consumers in Texas."
As a leader in the Texas competitive electric business, Vistra has recently invested in new technology in the Texas electric market including a significant solar facility in Upton County and an associated 10 MW / 42 MWh battery storage facility. Vistra has over 1500 MW of projects under consideration to expand its current operations and potentially invest in new electric generation facilities over the next few years. We expect that the PUCT's decision today will help to support these potential market-based investments.
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 5,400 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, solar, and battery storage facilities. The company is currently developing the largest battery energy storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) 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.
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.
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SOURCE Vistra Energy
IRVING, Texas, Jan. 3, 2019 /PRNewswire/ -- Luminant, a subsidiary of Vistra Energy (NYSE: VST), announced that its Upton 2 battery energy storage system project has finished construction and began operating on Dec. 31, 2018.
The battery system, which is the largest energy storage project in Texas and seventh largest in the United States, is located on the site of Luminant's 180-megawatt Upton 2 Solar Power Plant in Upton County, Texas. The solar facility continues to deliver on the company's strategic plan to strengthen and expand its integrated businesses through enhanced retail solar offerings and diversity across its generation fleet. It is also direct evidence that competitive generators will invest in batteries in Texas when supported by market economics.
The 10-MW/42-MWh lithium-ion energy storage system captures excess solar energy produced at Upton 2 during the day and can release the power in late afternoon and early evening, when energy demand in ERCOT is highest. The battery system can also take advantage of low-priced grid power — during times of high wind output, for example — to charge the batteries to be available for higher demand periods.
Vistra is also currently developing the world's largest battery energy storage project, the 300-MW/1,200-MWh storage system at its Moss Landing Power Plant in California, scheduled for commercial operations in the fourth quarter of 2020.
Media
Luminant Media Relations
(214) 875-8004
Media.Relations@luminant.com
About Luminant
Luminant, a subsidiary of Vistra Energy (NYSE: VST), is a competitive power generation business, including mining, wholesale marketing and trading, and development operations. Luminant has approximately 41,000 megawatts of generation across 12 states, powered by a diverse portfolio of natural gas, nuclear, coal, and solar facilities. Vistra Energy is a premier, integrated power company based in Texas, combining an innovative, customer-centric approach to retail with a focus on safe, reliable, and efficient power generation. Visit luminant.com and vistraenergy.com for additional information.
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SOURCE Luminant
IRVING, Texas, Nov. 20, 2018 Vistra Energy Corp. (NYSE: VST) announced today that on November 19, 2018, a significant stockholder (the "Stockholder") of Vistra Energy Corp. ("Vistra") agreed to sell 17 million shares of Vistra common stock. Of these shares, 5 million were sold directly to Vistra as part of its $1.25 billion share repurchase authorization, leaving over 90 percent of the authorized amount available for future repurchases. The Stockholder sold the remaining 12 million shares in a separate unregistered Rule 144 secondary block trade to a broker-dealer, who placed all 12 million shares with institutional investors. The Stockholder sold the shares to each of Vistra and the broker-dealer at the same discounted price to the November 19, 2018 closing price.
The execution of these trades is another positive step as Vistra continues to rotate its stockholder base from post-emergence stockholders to more natural, long-term holders of the stock. Vistra's decision to repurchase its shares, alongside the investment by other institutional investors, is consistent with management's stated intent regarding potential uses of its $1.25 billion share repurchase authorization. Curt Morgan, Vistra's president and chief executive officer, stated, "Vistra is excited to announce this repurchase of a meaningful amount of its shares as an existing significant stockholder reduces its ownership position in Vistra, continuing the already substantial rotation of our stockholder base since our emergence from bankruptcy. The ability of the company to repurchase 5 million shares at a discount to the then-prevailing market price, together with concurrent investments by other institutional investors, is exactly in-line with Vistra's capital allocation strategy. This repurchase is an outward indication of our fundamental view of Vistra's value. We will continue to repurchase shares in the open market under our $1.25 billion share repurchase authorization, since we view our shares as the most attractive place for Vistra to invest its capital."
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.
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SOURCE Vistra Energy
IRVING, Texas, Nov. 2, 2018 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):
Third Quarter Highlights
Realized in Year | Achieved by YE | |
2018 | $175mm | $360mm |
2019 | $425mm | $515mm |
2020 | $540mm | $565mm |
2021 | $565mm |
(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 | 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:
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 | Ongoing | Asset | Vistra Energy | |||||||||||||||||||||||||||||||||||
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 | Ongoing | Asset | Vistra | |||||||||||||||||||||||||||
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 | Asset | Vistra Energy | ||||||||||||||||||
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 | Asset | Vistra | ||||||||||||||||||
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 | Asset Closure | Vistra Energy | |||||||||||||||||||||
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 | Asset Closure | Vistra Energy | |||||||||||||||||||||
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. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/vistra-energy-announces-capital-allocation-plan-reports-third-quarter-2018-results-narrows-2018-and-2019-guidance-300742878.html
SOURCE Vistra Energy
IRVING, Texas, Oct. 15, 2018 /PRNewswire/ -- Vistra Energy (NYSE: VST) plans to report its third quarter 2018 financial and operating results on Friday, November 2, 2018. Management will present the results during a webcast beginning at 8 a.m. ET (7 a.m. CT).
The live, listen-only webcast of the conference call can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com under "Events and Presentations." For those unable to participate in the live event, a replay of the call will be available on the Vistra Energy website for one year following the call.
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.
View original content:http://www.prnewswire.com/news-releases/vistra-energy-to-report-third-quarter-2018-results-on-november-2-2018-300730425.html
SOURCE Vistra Energy
IRVING, Texas, Oct. 8, 2018 /PRNewswire/ -- Luminant, a subsidiary of Vistra Energy (NYSE: VST), today released the following statement:
Amendments to the Illinois emissions rules suggested by the Illinois Pollution Control Board, like those proposed by the Illinois Environmental Protection Agency, reflect a significant cap on emissions. The IPCB emission caps are more restrictive than those proposed by the IEPA. While Vistra Energy and Luminant supported the IEPA proposal, the company believes the IPCB proposal to be thoughtful and reasonable. Luminant will work constructively through the remainder of the process and looks forward to fully implementing the new standards.
The board's revised proposal will substantially reduce allowable emissions – which is good for the environment – while allowing Luminant the flexibility to assess and optimize its fleet of power plants to compete in the market. The proposal will also allow Luminant to fulfill its sustainability goals of balancing the generation and sale of reliable, cost-effective power for residential and business customers with environmental considerations.
We appreciate both the IPCB's and IEPA's diligence in this complex matter. They incorporated public, governmental, and industry feedback, ultimately outlining regulations that are good for the environment and the people of the Illinois.
Key Points:
In short, the amended rule appropriately balances the desire to adopt smarter and more efficient environmental regulations with providing the operational flexibility needed to safely operate Luminant's plants in a challenging economic environment.
Media
Meranda Cohn
214-875-8004
Media.Relations@vistraenergy.com
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Molly Sorg
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SOURCE Luminant
IRVING, Texas, Aug. 24, 2018 /PRNewswire/ -- Luminant, a subsidiary of Vistra Energy (NYSE: VST), today announced that it filed a notice of suspension of operations with PJM and other mandatory regulatory notifications related to the retirement of its 51-megawatt waste coal facility, Northeastern Power Company, in McAdoo, Pennsylvania, due to its uneconomic operations and negative financial outlook. Following the receipt of regulatory approvals, the plant is expected to close in late 2018.
Luminant estimates fewer than 25 full-time positions will be affected by this decision. Eligible employees will be offered severance benefits and outplacement assistance. The company will take the necessary and required steps to decommission the facility, including working with the key constituents.
Northeastern Power Company Information
Location: McAdoo (Schuylkill County), Pennsylvania
Fuel Type: Waste anthracite coal
Generating Capacity: 51 megawatts
Electricity Market: PJM
Commercial Operation Date: 1989
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) 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.
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.
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SOURCE Vistra Energy
IRVING, Texas, Aug. 7, 2018 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the pricing of an upsized private offering (the "Offering") of $1 billion aggregate principal amount of senior notes due 2026 (the "Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be senior, unsecured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The Notes will bear interest at the rate of 5.500% per annum and will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries. The Offering is expected to close on August 22, 2018, subject to customary closing conditions.
The purpose of the Offering is (i) to fund concurrent tender offers (the "Tender Offers") to purchase for cash its outstanding 7.375% Senior Notes due 2022, 7.625% Senior Notes due 2024, 8.034% Senior Notes due 2024, 8.000% Senior Notes due 2025, and 8.125% Senior Notes due 2026, in each case issued by Dynegy, as predecessor to Vistra Energy (collectively, the "Tender Offer Notes"), subject to the relevant terms and conditions set forth in the Offer to Purchase related to the concurrent Tender Offers, (ii) to pay fees and expenses related to the Offering and incurred in connection with the Tender Offers and (iii) for general corporate purposes. In connection with upsizing the Offering, the Company has determined to upsize the maximum aggregate purchase price (excluding accrued and unpaid interest) under the Tender Offers from $1.5 billion to $1.7 billion.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) 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.
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.
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SOURCE Vistra Energy
IRVING, Texas, Aug. 7, 2018 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today the launch of a private offering (the "Offering") of $800 million aggregate principal amount of senior notes due 2026 (the "Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be senior, unsecured obligations of Vistra Operations Company LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company (the "Issuer"). The Notes will be fully and unconditionally guaranteed by certain of the Issuer's current and future subsidiaries.
The purpose of the Offering is (i) to fund a concurrently announced tender offer (the "Tender Offer") to purchase for cash its outstanding 7.375% Senior Notes due 2022, 7.625% Senior Notes due 2024, 8.034% Senior Notes due 2024, 8.000% Senior Notes due 2025, and 8.125% Senior Notes due 2026, in each case issued by Dynegy, as predecessor to Vistra Energy (collectively, the "Tender Offer Notes"), subject to the relevant terms and conditions set forth in the Offer to Purchase related to the concurrent Tender Offer, (ii) to pay fees and expenses related to the Offering and incurred in connection with the Tender Offer and (iii) for general corporate purposes. The Offering is not conditioned on the consummation of the Tender Offer. The Tender Offer is conditioned on, among other things, the consummation of the Offering.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) 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.
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.
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SOURCE Vistra Energy
IRVING, Texas, Aug. 7, 2018 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) (the "Company" or "Vistra Energy") announced today that it is commencing cash tender offers (the "Tender Offers") to purchase its outstanding 8.125% Senior Notes due 2026 (the "2026 Notes"), 8.034% Senior Notes due 2024 (the "8.034% 2024 Notes"), 8.000% Senior Notes due 2025 (the "2025 Notes"), 7.625% Senior Notes due 2024 (the "7.625% 2024 Notes") and 7.375% Senior Notes due 2022 (the "2022 Notes", and, together with the 2026 Notes, the 8.034% 2024 Notes, the 2025 Notes and the 7.625% 2024 Notes, the "Notes") for a maximum aggregate purchase price (excluding accrued and unpaid interest) of up to $1.5 billion (subject to increase or decrease by the Company, the "Aggregate Maximum Tender Amount").
The price offered in the Tender Offers for the Notes and other information relating to the Tender Offers and the Consent Solicitation (as defined below) are set forth in the table below.
Dollars per $1,000 Principal Amount of Notes | |||||||
Issuer (1) |
Title of Notes |
CUSIP Number |
Aggregate Principal Amount Outstanding |
Acceptance Priority Level |
Tender Offer Consideration (2) |
Early Tender Premium (3) |
Total Consideration (2) (3) |
Vistra Energy Corp. |
2026 Notes |
26817RBA5 / U2676QAN8 |
$850,000,000 |
1 |
$1,085.00 |
$30.00 |
$1,115.00 |
Vistra Energy Corp. |
8.034% 2024 Notes |
26817RAV0 / 26817RAX6 / 26817RAZ1 |
$188,237,672 |
2 |
$1,032.50 |
$30.00 |
$1,062.50 |
Vistra Energy Corp. |
2025 Notes |
26817RAS7 / U2676QAL2 |
$750,000,000 |
3 |
$1,070.00 |
$30.00 |
$1,100.00 |
Vistra Energy Corp. |
7.625% 2024 Notes |
26817RAP3 |
$1,250,000,000 |
4 |
$1,052.50 |
$30.00 |
$1,082.50 |
Vistra Energy Corp. |
2022 Notes |
26817RAN8 |
$1,750,000,000 |
5 |
$1,015.00 |
$30.00 |
$1,045.00 |
(1) |
Vistra Energy Corp. is successor in interest to Dynegy Inc. as a result of their merger, which closed on April 9, 2018. |
(2) |
Excludes accrued and unpaid interest, which will be paid in addition to the Tender Offer Consideration or the Total Consideration, as applicable. |
(3) |
No separate consent payment or fee is being paid to holders in the Consent Solicitation. |
In conjunction with the Tender Offers, the Company is soliciting (the "Consent Solicitations") consents (the "Consents") from each holder (individually, a "Holder," and collectively, the "Holders") of the Notes, subject to the terms and conditions set forth in the Offer to Purchase (as defined below), to certain proposed amendments (the "Proposed Amendments") to the: (i) indenture dated as of August 21, 2017 (as supplemented, the "2026 Notes Indenture"), among Vistra Energy (as successor in interest to Dynegy Inc. ("Dynegy")), the subsidiary guarantors party thereto and Wilmington Trust, National Association ("Wilmington Trust"), as trustee; (ii) indenture dated as of February 2, 2017 (as supplemented, the "8.034% 2024 Notes Indenture"), among Vistra Energy (as successor in interest to Dynegy), the subsidiary guarantors party thereto and Wilmington Trust, as trustee; (iii) indenture dated as of October 11, 2016 (as supplemented, the "2025 Notes Indenture"), among Vistra Energy (as successor in interest to Dynegy), the subsidiary guarantors party thereto and Wilmington Trust, as trustee; (iv) indenture dated as of October 27, 2014 (as supplemented, the "2024 Notes Indenture"), among Vistra Energy (as successor in interest to Dynegy), the subsidiary guarantors party thereto and Wilmington Trust, as trustee; (v) indenture dated as of October 27, 2014 (as supplemented, the "2022 Notes Indenture", and together with the 2026 Notes Indenture, the 8.034% 2024 Notes Indenture, the 2025 Notes Indenture and the 2024 Notes Indenture, each an "Indenture" and collectively, the "Indentures"), among Vistra Energy (as successor in interest to Dynegy), the subsidiary guarantors party thereto and Wilmington Trust, as trustee; and (vi) registration rights agreement related to the 2026 Note (the "Registration Rights Agreement"). The Proposed Amendments would (i) amend each Indenture as described herein to, among other things, eliminate substantially all of the restrictive covenants and certain events of default under such Indenture and (ii) amend the Registration Rights Agreement to remove, among other things, the requirement that the Company commence an exchange offer to issue registered securities in exchange for the 2026 Notes. Delivery of Consents to the Proposed Amendments by Holders of at least a majority of the aggregate principal amount of each series of outstanding Notes is required for the adoption of the Proposed Amendments with respect to each such series of Notes. In the event of any proration of a series of Notes, the Consents delivered with respect to such series of Notes shall be null and void.
The Tender Offers and Consent Solicitations are being made upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement, dated August 7, 2018 (as the same may be amended or supplemented from time to time, the "Offer to Purchase"), including the Financing Condition (as defined below) and in the related Letter of Transmittal and Consent (as the same may be amended or supplemented from time to time, the "Letter of Transmittal" and, together with the Offer to Purchase, the "Tender Offer Materials"). The Tender Offers and the Consent Solicitations are open to all registered Holders of the Notes. The Company reserves the right, but is under no obligation, to increase the Aggregate Maximum Tender Amount, without extending withdrawal rights except as required by law. The amounts of each series of Notes to be purchased may be prorated as set forth in the Offer to Purchase.
Subject to the terms and conditions of the Tender Offers, each Holder who validly tenders and does not subsequently validly withdraw their Notes at or prior to 5:00 p.m., New York City time, on August 20, 2018 (the "Early Tender Date") will be entitled to receive the Total Consideration (as set forth in the table above), plus accrued and unpaid interest up to, but not including, the Early Settlement Date (as defined below) if and when such Notes are accepted for payment. Holders who validly tender their Notes after the Early Tender Date but at or prior to midnight, New York City time, on September 4, 2018, or such other date as the Company extends the Tender Offers or Consent Solicitations (such date and time, as it may be extended, the "Expiration Date") will be entitled to receive only tender offer consideration (the "Tender Offer Consideration") equal to the Total Consideration less the Early Tender Premium (as set forth in the table above), plus accrued and unpaid interest up to, but not including, the applicable settlement date, if and when such Notes are accepted for payment.
Payments for Notes purchased will include accrued and unpaid interest from and including the last interest payment date applicable to the relevant series of Notes up to, but not including, the applicable settlement date for such Notes accepted for purchase. The settlement date for Notes that are validly tendered on or prior to the Early Tender Date is expected to be August 22, 2018, two business days following the scheduled Early Tender Date (the "Early Settlement Date"). The settlement date for the Notes that are validly tendered following the Early Tender Date but on or prior to the Expiration Date is expected to be September 5, 2018, one business day following the scheduled Expiration Date (the "Final Settlement Date").
Vistra Energy's obligation to accept for purchase, and to pay for, Notes validly tendered pursuant to the Tender Offers is subject to, and conditioned upon, among other things, the receipt by the Company of (i) the net proceeds expected from an unregistered offering of $800 million aggregate principal amount of Senior Notes due 2026 (subject to increase by the Company, the "Debt Financing") and (ii) the net proceeds expected from an accounts receivable securitization program of $300 million aggregate principal amount (subject to increase by the Company, the "Receivables Financing"), in each case, on terms and conditions reasonably satisfactory to the Company (the "Financing Condition"). We expect to use the net proceeds from the Debt Financing and the Receivables Financing, together with cash on hand, to finance our payments of the Tender Offer Consideration and the Total Consideration, as applicable, and any fees payable in connection with the Tender Offers and Consent Solicitations, subsequent to the date hereof and on or prior to the Final Settlement Date.
The Company's obligation to consummate the Tender Offers is subject to the Financing Condition and the General Conditions (as defined in the Offer to Purchase). The Tender Offers are not contingent upon the tender of any minimum principal amount of Notes, the consummation of any other Tender Offer in respect of any other series of Notes or obtaining any Requisite Consent (as defined in the Offer to Purchase). The adoption of the Proposed Amendments with respect to any Indenture or series of Notes is not conditioned upon the consummation of any other Consent Solicitation or adoption of the Proposed Amendments in respect of any other Indenture or series of Notes or obtaining any Requisite Consent with respect to any other Indenture or series of Notes. Each Tender Offer and Consent Solicitation may be amended, extended or terminated individually.
Vistra Energy has retained Citigroup Global Markets Inc. to serve as the Lead Dealer Manager and Solicitation Agent for the Tender Offers and Consent Solicitations. Global Bondholder Services Corporation has been retained to serve as the Depositary and Information Agent for the Tender Offers. Questions regarding the Tender Offers may be directed to Citigroup Global Markets Inc. at 388 Greenwich Street, 7th Floor, New York, New York 10013, Attn: Liability Management Group, (800) 558-3745 (toll-free), (212) 723-6106 (collect). Requests for the Tender Offer Materials may be directed to Global Bondholder Services Corporation at 65 Broadway – Suite 404, New York, New York 10006, Attn: Corporate Actions, (212) 430-3774 (for banks and brokers) or (866) 470-3900 (for all others).
Vistra Energy is making the Tender Offers only by, and pursuant to, the terms of the Tender Offer Materials. None of Vistra Energy, the Lead Dealer Manager and Solicitation Agent, or the Depositary and Information Agent make any recommendation as to whether Holders should tender or refrain from tendering their Notes and delivering Consents. Holders must consult their own investment and tax advisors and make their own decisions as to whether to tender Notes and deliver Consents and, if so, the principal amount of the Notes to tender. The Tender Offers and Consent Solicitations are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Tender Offers to be made by a licensed broker or dealer, the Tender Offers will be deemed to be made on behalf of Vistra Energy by the Lead Dealer Manager and Solicitation Agent, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This press release does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any new securities, including in connection with the Debt Financing, nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful. Capitalized terms used in this press release but not otherwise defined herein have the meanings assigned to them in the Tender Offer Materials.
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 Notes Litigation Reform Act of 1995, Section 27A of the Notes Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) those additional risks and factors discussed in reports filed with the Notes 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.
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.
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SOURCE Vistra Energy
/PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):
IRVING, Texas, Aug. 6, 2018
Summary of Financial Results for the Second Quarter Ended June 30, 2018 (in millions)
($ in millions) |
Three Months Ended |
Six Months Ended June 30, 2018 | ||||
Ongoing Operations Net Income (Loss)1 |
$ |
103 |
$ |
(181) | ||
Ongoing Operations Adjusted EBITDA1 |
$ |
653 |
$ |
916 | ||
- exc. Odessa Earnout Buybacks |
$ |
663 |
$ |
944 |
(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 June 30, 2018, Vistra reported net income from ongoing operations of $103 million and adjusted EBITDA from ongoing operations of $653 million. Vistra's second quarter adjusted EBITDA exceeded expectations as a result of higher realized prices, lower than forecast operations and maintenance expenses, and strong ERCOT retail performance that was offset by higher power costs than planned for our Ohio retail portfolio.
For the first half of 2018, Vistra reported a net loss from ongoing operations of $181 million, which includes unrealized net losses on hedging activities of $199 million, and adjusted EBITDA from ongoing operations of $916 million. Excluding the impact to adjusted EBITDA of negative $28 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 would have been $944 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, "Our company had another strong quarter, delivering adjusted EBITDA that exceeded expectations. Following the close of the Dynegy merger on April 9, our integration efforts are in full swing and we remain on track to achieve the full $500 million run-rate value lever targets by year-end 2019. We are confident our low-cost, low-leverage, integrated business model will generate strong, stable EBITDA while converting approximately 60 percent of adjusted EBITDA to adjusted free cash flow on an annual basis. This kind of performance will enable a diverse set of capital allocation alternatives to create and return value for our shareholders."
Reportable Segments
Following the closing of the merger with Dynegy, Vistra has six reportable segments: (i) Retail, (ii) ERCOT, (iii) PJM, (iv) NY/NE (comprising NYISO and ISO-NE), (v) MISO, and (vi) Asset Closure.
Guidance
($ in millions) |
2018 |
2019 | ||||
Ongoing Ops. Adj. EBITDA1 |
$ |
2,700 - 2,900 |
$ |
3,200 – 3,500 | ||
Ongoing Ops. Adj. FCF1 |
$ |
1,400 - 1,600 |
$ |
2,050 – 2,350 |
(1) Excludes results from the Asset Closure segment. Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures. See the "Non-GAAP Reconciliation" tables for further details. |
Vistra Energy is reaffirming its 2018 Ongoing Operations guidance ranges, forecasting an Ongoing Operations adjusted EBITDA range of $2,700 to $2,900 million and an Ongoing Operations adjusted free cash flow range of $1,400 to $1,600 million. The 2018 guidance 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 reaffirming its 2019 Ongoing Operations guidance ranges, forecasting adjusted EBITDA of $3,200 to $3,500 million and adjusted free cash flow of $2,050 to $2,350 million.
Completed Merger with Dynegy
Vistra closed its merger with Dynegy on April 9, 2018, creating the leading, lowest-cost integrated power company across the key competitive markets in the United States. Through the combination, Vistra has achieved earnings, geographic, and fuel diversification and transformed into a highly efficient, natural gas-centric power plant fleet with approximately 41,000 megawatts of capacity (84 percent of which is in the attractive ERCOT, PJM, and ISO-NE regions). In addition, Vistra has expanded its retail footprint and created a platform for further retail growth and integration, while maintaining a strong and liquid balance sheet – with an intention to de-lever to a 2.5 times net debt to EBITDA target by year-end 2019.
On May 4, 2018, Vistra increased its anticipated annual EBITDA value levers and free cash flow value levers by approximately 43 percent and 300 percent, respectively. Integration and execution of all synergy and operations performance initiative value levers remains on schedule.
Share Repurchase Program
On June 12, 2018, Vistra announced that its board of directors authorized a $500 million share repurchase program. Vistra plans to execute the program on an opportunistic basis over eighteen months. As of July 31, 2018, Vistra had purchased approximately 6.4 million shares for approximately $150 million.
Financing Update
On May 1, 2018, Vistra repaid the $850 million aggregate principal amount of 6.75 percent senior notes due 2019.
On June 14, 2018, Vistra closed a transaction that optimized over $5 billion of the company's secured debt, resulting in anticipated after-tax interest savings of $23 million annually. Through the transaction, Vistra refinanced over $2 billion in term loans, repriced Vistra's $2.8 billion term loan, repaid the $500 million Term Loan C letter of credit facility with its restricted cash balance, and consolidated legacy Vistra and Dynegy revolvers into a new, five-year $2.5 billion Revolving Credit Facility. In addition, the transaction simplified the company's capital structure from the "silo" structure following the merger.
Vistra also entered into approximately $3 billion of notional value fixed interest rate swaps with effective dates from 2023 to 2026 during the quarter.
Liquidity
As of June 30, 2018, Vistra had total available liquidity of approximately $1.822 billion, including cash and cash equivalents of $757 million and $1,065 million of availability under its revolving credit facility, which remained undrawn but had $1,435 million of letters of credit outstanding as of June 30, 2018.
Announced 300-megawatt Battery Storage Project at Moss Landing
On June 29, 2018, Vistra announced its intention to develop the world's largest battery storage project: a 300-megawatt / 1,200-megawatt hour battery storage project at its Moss Landing Power Plant site in Moss Landing, California. The company has entered into a 20-year resource adequacy contract for the project with investment grade off-taker Pacific Gas & Electric (PG&E), creating a low-risk project with anticipated unlevered returns in excess of Vistra's investment criteria. The contract is subject to approval by the California Public Utilities Commission (CPUC).
Development will begin following CPUC approval, which is expected within 90 days of PG&E's application to the CPUC. The project will use the existing interconnection and other infrastructure from mothballed Moss Landing units 6 and 7, and is expected to go into service during the fourth quarter of 2020.
Upton 2 Solar COD
On June 1, 2018, Vistra achieved commercial operations at the 180-megawatt Upton 2 solar power plant in West Texas – the largest operating solar facility in the state. The output from the Upton 2 plant will further diversify Luminant's generation capacity while enhancing Vistra's market-leading retail solar offerings and capabilities in ERCOT, highlighting the value created from the company's integrated business model. In addition, Upton 2 provides a platform for economic battery storage development, and the company is currently developing a 10-megawatt (42-megawatt hour) battery project at the site.
Earnings Webcast
Vistra will host a webcast today, Aug. 6, 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" (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures, 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 new Asset Closure segment) and "Ongoing Operations Adjusted Free Cash Flow" (adjusted free cash flow less cash flow from operating activities from new Asset Closure segment), 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 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. Vistra Energy uses Ongoing Operations Adjusted EBITDA as a measure of performance and Ongoing Operations Adjusted Free Cash Flow 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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) 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.
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 June 30, |
Six Months Ended June 30, | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
Operating revenues (Note 5) |
$ |
2,574 |
$ |
1,296 |
$ |
3,338 |
$ |
2,653 |
|||||||
Fuel, purchased power costs and delivery fees |
(1,216) |
(729) |
(1,866) |
(1,411) |
|||||||||||
Operating costs |
(386) |
(195) |
(580) |
(409) |
|||||||||||
Depreciation and amortization |
(389) |
(172) |
(542) |
(341) |
|||||||||||
Selling, general and administrative expenses |
(352) |
(147) |
(514) |
(285) |
|||||||||||
Operating income (loss) |
231 |
53 |
(164) |
207 |
|||||||||||
Other income (Note 19) |
7 |
9 |
18 |
18 |
|||||||||||
Other deductions (Note 19) |
(1) |
(5) |
(3) |
(5) |
|||||||||||
Interest expense and related charges (Note 19) |
(146) |
(69) |
(137) |
(93) |
|||||||||||
Impacts of Tax Receivable Agreement (Note 8) |
(64) |
(22) |
(82) |
(42) |
|||||||||||
Equity in earnings of unconsolidated investment |
4 |
— |
4 |
— |
|||||||||||
Income (loss) before income taxes |
31 |
(34) |
(364) |
85 |
|||||||||||
Income tax benefit (expense) (Note 7) |
74 |
8 |
163 |
(33) |
|||||||||||
Net income (loss) |
$ |
105 |
$ |
(26) |
$ |
(201) |
$ |
52 |
|||||||
Less: Net loss attributable to noncontrolling interest |
(3) |
— |
(3) |
— |
|||||||||||
Net income (loss) attributable to Vistra Energy |
$ |
108 |
$ |
(26) |
$ |
(198) |
$ |
52 |
|||||||
Weighted average shares of common stock outstanding: |
|||||||||||||||
Basic |
526,332,862 |
427,587,401 |
477,662,016 |
427,585,381 |
|||||||||||
Diluted |
533,786,824 |
427,587,401 |
477,662,016 |
427,846,563 |
|||||||||||
Net income (loss) per weighted average share of common stock outstanding: |
|||||||||||||||
Basic |
$ |
0.21 |
$ |
(0.06) |
$ |
(0.41) |
$ |
0.12 |
|||||||
Diluted |
$ |
0.20 |
$ |
(0.06) |
$ |
(0.41) |
$ |
0.12 |
VISTRA ENERGY CORP. CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (Millions of Dollars) | |||||||
Six Months Ended June 30, | |||||||
2018 |
2017 | ||||||
Cash flows — operating activities: |
|||||||
Net income (loss) |
$ |
(201) |
$ |
52 |
|||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: |
|||||||
Depreciation and amortization |
619 |
437 |
|||||
Deferred income tax (benefit) expense, net |
(159) |
29 |
|||||
Unrealized net (gain) loss from mark-to-market valuations of commodities |
199 |
(54) |
|||||
Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps |
(86) |
6 |
|||||
Equity in earnings of unconsolidated investments |
— |
— |
|||||
Write-off of intangible and other assets (Note 19) |
— |
— |
|||||
Accretion expense |
44 |
29 |
|||||
Impacts of Tax Receivable Agreement (Note 8) |
82 |
42 |
|||||
Stock-based compensation (Note 16) |
59 |
8 |
|||||
Other, net |
(6) |
(7) |
|||||
Changes in operating assets and liabilities: |
|||||||
Margin deposits, net |
(61) |
147 |
|||||
Accrued interest |
(74) |
(29) |
|||||
Accrued taxes |
(112) |
(73) |
|||||
Accrued incentive plan |
(31) |
(60) |
|||||
Other operating assets and liabilities |
(302) |
(194) |
|||||
Cash provided by (used in) operating activities |
(29) |
333 |
|||||
Cash flows — financing activities: |
|||||||
Repayments/repurchases of debt (Note 10) |
(1,338) |
(24) |
|||||
Stock repurchase |
(63) |
— |
|||||
Debt financing fee (Note 10) |
(46) |
(3) |
|||||
Other, net |
4 |
— |
|||||
Cash used in financing activities |
(1,443) |
(27) |
|||||
Cash flows — investing activities: |
|||||||
Capital expenditures |
(153) |
(63) |
|||||
Nuclear fuel purchases |
(28) |
(35) |
|||||
Cash acquired in the Merger |
445 |
— |
|||||
Solar development expenditures (Note 3) |
(21) |
(96) |
|||||
Proceeds from sales of nuclear decommissioning trust fund securities (Note 19) |
93 |
98 |
|||||
Investments in nuclear decommissioning trust fund securities (Note 19) |
(103) |
(107) |
|||||
Other, net |
9 |
9 |
|||||
Cash provided by (used in) investing activities |
242 |
(194) |
|||||
Net change in cash, cash equivalents and restricted cash |
(1,230) |
112 |
|||||
Cash, cash equivalents and restricted cash — beginning balance |
2,046 |
1,588 |
|||||
Cash, cash equivalents and restricted cash — ending balance |
$ |
816 |
$ |
1,700 |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - Q2 2018 ADJUSTED EBITDA (Unaudited) (Millions of Dollars) Three Months Ended June 30, 2018 Retail ERCOT PJM NY/NE MISO Eliminations Ongoing Asset Vistra Net income (loss) $ (288) $ 679 $ 23 $ (5) $ 31 $ (337) $ 103 $ 2 $ 105 Income tax expense (benefit) — — — — — (74) (74) — (74) Interest expense and related charges — 7 2 1 — 136 146 — 146 Depreciation and amortization (a) 80 128 125 49 3 24 409 — 409 EBITDA before adjustments $ (208) $ 814 $ 150 $ 45 $ 34 $ (251) $ 584 $ 2 $ 586 Unrealized net (gain) loss resulting from hedging transactions 462 (667) (1) 22 (32) — (216) — (216) Fresh start/purchase accounting impacts 15 (2) (1) 4 8 — 24 1 25 Impacts of Tax Receivable Agreement — — — — — 64 64 — 64 Non-cash compensation expenses — — — — — 42 42 — 42 Transition and merger expenses — 2 1 — 3 148 154 2 156 Other, net (9) (4) 5 3 5 1 1 — 1 Adjusted EBITDA $ 260 $ 143 $ 154 $ 74 $ 18 $ 4 $ 653 $ 5 $ 658 (a) Includes nuclear fuel amortization of $20 million in the ERCOT segment.
/ Corp and
Other
Operations
Consolidated
Closure
Energy
Consolidated
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS – Q2 2017 ADJUSTED EBITDA (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Three Months Ended June 30, 2017 | |||||||||||||||||||||||
Retail |
ERCOT |
Eliminations / Corp & Other |
Ongoing |
Asset |
Vistra | ||||||||||||||||||
Net income (loss) |
$ |
183 |
$ |
(155) |
$ |
(104) |
$ |
(76) |
$ |
50 |
$ |
(26) |
|||||||||||
Income tax expense (benefit) |
— |
— |
(8) |
(8) |
— |
(8) |
|||||||||||||||||
Interest expense and related charges |
— |
4 |
65 |
69 |
— |
69 |
|||||||||||||||||
Depreciation and amortization (a) |
108 |
71 |
10 |
189 |
— |
189 |
|||||||||||||||||
EBITDA before adjustments |
$ |
291 |
$ |
(80) |
$ |
(37) |
$ |
174 |
$ |
50 |
$ |
224 |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
(89) |
157 |
(1) |
67 |
— |
67 |
|||||||||||||||||
Fresh start accounting impacts |
20 |
— |
— |
20 |
4 |
24 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
— |
— |
22 |
22 |
— |
22 |
|||||||||||||||||
Non-cash compensation expenses |
— |
— |
4 |
4 |
— |
4 |
|||||||||||||||||
Transition and merger expenses |
1 |
2 |
— |
3 |
— |
3 |
|||||||||||||||||
Other, net |
(4) |
3 |
2 |
1 |
— |
1 |
|||||||||||||||||
Adjusted EBITDA |
$ |
219 |
$ |
82 |
$ |
(10) |
$ |
291 |
$ |
54 |
$ |
345 |
(a) |
Includes nuclear fuel amortization of $17 million in the ERCOT segment. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS – 1H 2018 ADJUSTED EBITDA (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||
Retail |
ERCOT |
PJM |
NY/NE |
MISO |
Eliminations |
Ongoing |
Asset |
Vistra | |||||||||||||||||||||||||||
Net income (loss) |
$ |
483 |
$ |
(407) |
$ |
23 |
$ |
(5) |
$ |
31 |
$ |
(306) |
$ |
(181) |
$ |
(20) |
$ |
(201) |
|||||||||||||||||
Income tax expense (benefit) |
— |
— |
— |
— |
— |
(163) |
(163) |
— |
(163) |
||||||||||||||||||||||||||
Interest expense and related charges |
1 |
15 |
2 |
1 |
— |
118 |
137 |
— |
137 |
||||||||||||||||||||||||||
Depreciation and amortization (a) |
157 |
213 |
125 |
49 |
3 |
35 |
582 |
— |
582 |
||||||||||||||||||||||||||
EBITDA before adjustments |
$ |
641 |
$ |
(179) |
$ |
150 |
$ |
45 |
$ |
34 |
$ |
(316) |
$ |
375 |
$ |
(20) |
$ |
355 |
|||||||||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
(193) |
403 |
(1) |
22 |
(32) |
— |
199 |
— |
199 |
||||||||||||||||||||||||||
Fresh start/purchase accounting impacts |
27 |
(4) |
(1) |
4 |
8 |
— |
34 |
1 |
35 |
||||||||||||||||||||||||||
Impacts of Tax Receivable Agreement |
— |
— |
— |
— |
— |
82 |
82 |
— |
82 |
||||||||||||||||||||||||||
Non-cash compensation expenses |
— |
— |
— |
— |
— |
48 |
48 |
— |
48 |
||||||||||||||||||||||||||
Transition and merger expenses |
— |
4 |
1 |
— |
3 |
174 |
182 |
2 |
184 |
||||||||||||||||||||||||||
Other, net |
(21) |
(12) |
5 |
3 |
5 |
16 |
(4) |
— |
(4) |
||||||||||||||||||||||||||
Adjusted EBITDA |
$ |
454 |
$ |
212 |
$ |
154 |
$ |
74 |
$ |
18 |
$ |
4 |
$ |
916 |
$ |
(17) |
$ |
899 |
(a) |
Includes nuclear fuel amortization of $40 million in the ERCOT segment. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS – 1H 2017 ADJUSTED EBITDA (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Six Months Ended June 30, 2017 | |||||||||||||||||||||||
Retail |
ERCOT |
Eliminations / Corp & Other |
Ongoing |
Asset |
Vistra Energy | ||||||||||||||||||
Net income (loss) |
$ |
70 |
$ |
147 |
$ |
(202) |
$ |
15 |
$ |
37 |
$ |
52 |
|||||||||||
Income tax expense (benefit) |
— |
— |
33 |
33 |
— |
33 |
|||||||||||||||||
Interest expense and related charges |
— |
5 |
88 |
93 |
— |
93 |
|||||||||||||||||
Depreciation and amortization (a) |
214 |
154 |
21 |
389 |
— |
389 |
|||||||||||||||||
EBITDA before adjustments |
$ |
284 |
$ |
306 |
$ |
(60) |
$ |
530 |
$ |
37 |
$ |
567 |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
73 |
(127) |
— |
(54) |
— |
(54) |
|||||||||||||||||
Fresh start accounting impacts |
44 |
(1) |
— |
43 |
8 |
51 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
— |
— |
42 |
42 |
— |
42 |
|||||||||||||||||
Non-cash compensation expenses |
— |
— |
9 |
9 |
— |
9 |
|||||||||||||||||
Transition and merger expenses |
1 |
3 |
— |
4 |
— |
4 |
|||||||||||||||||
Other, net |
(6) |
4 |
4 |
2 |
— |
2 |
|||||||||||||||||
Adjusted EBITDA |
$ |
396 |
$ |
185 |
$ |
(5) |
$ |
576 |
$ |
45 |
$ |
621 |
(a) |
Includes nuclear fuel amortization of $47 million in the ERCOT segment. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - 2018 GUIDANCE (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing |
Asset Closure |
Vistra Energy | |||||||||||||||||||||
Low |
High |
Low |
High |
Low |
High | ||||||||||||||||||
Net Income |
$ |
274 |
$ |
429 |
$ |
(68) |
$ |
(58) |
$ |
206 |
$ |
371 |
|||||||||||
Income tax expense |
110 |
155 |
— |
— |
110 |
155 |
|||||||||||||||||
Interest expense and related charges |
476 |
476 |
— |
— |
476 |
476 |
|||||||||||||||||
Depreciation and amortization |
1,442 |
1,442 |
— |
— |
1,442 |
1,442 |
|||||||||||||||||
EBITDA before adjustments |
$ |
2,302 |
$ |
2,502 |
$ |
(68) |
$ |
(58) |
$ |
2,234 |
$ |
2,444 |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
(63) |
(63) |
3 |
3 |
(60) |
(60) |
|||||||||||||||||
Fresh start accounting impacts |
54 |
54 |
(2) |
(2) |
52 |
52 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
112 |
112 |
— |
— |
112 |
112 |
|||||||||||||||||
Transition and merger expenses |
212 |
212 |
— |
— |
212 |
212 |
|||||||||||||||||
Other, net |
83 |
83 |
2 |
2 |
85 |
85 |
|||||||||||||||||
Adjusted EBITDA |
$ |
2,700 |
$ |
2,900 |
$ |
(65) |
$ |
(55) |
$ |
2,635 |
$ |
2,845 |
|||||||||||
Interest paid, net |
(628) |
(628) |
— |
— |
(628) |
(628) |
|||||||||||||||||
Tax payments (a) |
(51) |
(51) |
— |
— |
(51) |
(51) |
|||||||||||||||||
Tax receivable agreement payments |
(24) |
(24) |
— |
— |
(24) |
(24) |
|||||||||||||||||
Working capital and margin deposits |
(52) |
(52) |
6 |
6 |
(46) |
(46) |
|||||||||||||||||
Reclamation and remediation |
(32) |
(32) |
(85) |
(85) |
(117) |
(117) |
|||||||||||||||||
Other changes in operating assets and liabilities
|
(325) |
(325) |
(26) |
(16) |
(351) |
(341) |
|||||||||||||||||
Cash provided by operating activities |
$ |
1,588 |
$ |
1,788 |
$ |
(170) |
$ |
(150) |
$ |
1,418 |
$ |
1,638 |
|||||||||||
Capital expenditures including nuclear fuel |
(508) |
(508) |
— |
— |
(508) |
(508) |
|||||||||||||||||
Solar and Moss Landing development expenditures |
(61) |
(61) |
— |
— |
(61) |
(61) |
|||||||||||||||||
Other net investing activities |
(8) |
(8) |
— |
— |
(8) |
(8) |
|||||||||||||||||
Free cash flow |
$ |
1,011 |
$ |
1,211 |
$ |
(170) |
$ |
(150) |
$ |
841 |
$ |
1,061 |
|||||||||||
Working capital and margin deposits |
52 |
52 |
(6) |
(6) |
46 |
46 |
|||||||||||||||||
Solar and Moss Landing development expenditures |
61 |
61 |
— |
— |
61 |
61 |
|||||||||||||||||
Taxes related to Alcoa settlement |
45 |
45 |
— |
— |
45 |
45 |
|||||||||||||||||
Transition and merger expenses |
186 |
186 |
— |
— |
186 |
186 |
|||||||||||||||||
Generation plant retirement expenses |
— |
— |
26 |
26 |
26 |
26 |
|||||||||||||||||
Transition capital expenditures |
45 |
45 |
— |
— |
45 |
45 |
|||||||||||||||||
Adjusted free cash flow |
$ |
1,400 |
$ |
1,600 |
$ |
(150) |
$ |
(130) |
$ |
1,250 |
$ |
1,470 |
(a) |
Includes state tax payments. |
VISTRA ENERGY CORP. NON-GAAP RECONCILIATIONS - 2019 GUIDANCE (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing |
Asset Closure |
Vistra Energy | |||||||||||||||||||||
Low |
High |
Low |
High |
Low |
High | ||||||||||||||||||
Net Income |
$ |
946 |
$ |
1,181 |
$ |
(70) |
$ |
(60) |
$ |
876 |
$ |
1,121 |
|||||||||||
Income tax expense |
264 |
329 |
— |
— |
264 |
329 |
|||||||||||||||||
Interest expense and related charges |
587 |
587 |
— |
— |
587 |
587 |
|||||||||||||||||
Depreciation and amortization |
1,558 |
1,558 |
— |
— |
1,558 |
1,558 |
|||||||||||||||||
EBITDA before adjustments |
$ |
3,355 |
$ |
3,655 |
$ |
(70) |
$ |
(60) |
$ |
3,285 |
$ |
3,595 |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
(352) |
(352) |
— |
— |
(352) |
(352) |
|||||||||||||||||
Fresh start accounting impacts |
54 |
54 |
— |
— |
54 |
54 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
67 |
67 |
— |
— |
67 |
67 |
|||||||||||||||||
Transition and merger expenses |
8 |
8 |
— |
— |
8 |
8 |
|||||||||||||||||
Other, net |
68 |
68 |
— |
— |
68 |
68 |
|||||||||||||||||
Adjusted EBITDA |
$ |
3,200 |
$ |
3,500 |
$ |
(70) |
$ |
(60) |
$ |
3,130 |
$ |
3,440 |
|||||||||||
Interest payments |
(579) |
(579) |
— |
— |
(579) |
(579) |
|||||||||||||||||
Tax payments (a) |
111 |
111 |
— |
— |
111 |
111 |
|||||||||||||||||
Working capital and margin deposits |
73 |
73 |
— |
— |
73 |
73 |
|||||||||||||||||
Reclamation and remediation |
(73) |
(73) |
(123) |
(123) |
(196) |
(196) |
|||||||||||||||||
Other changes in operating assets and liabilities
|
(34) |
(34) |
33 |
43 |
(1) |
9 |
|||||||||||||||||
Cash provided by operating activities |
$ |
2,698 |
$ |
2,998 |
$ |
(160) |
$ |
(140) |
$ |
2,538 |
$ |
2,858 |
|||||||||||
Capital expenditures including nuclear fuel |
(606) |
(606) |
— |
— |
(606) |
(606) |
|||||||||||||||||
Solar and Moss Landing development expenditures |
(251) |
(251) |
— |
— |
(251) |
(251) |
|||||||||||||||||
Free cash flow |
$ |
1,841 |
$ |
2,141 |
$ |
(160) |
$ |
(140) |
$ |
1,681 |
$ |
2,001 |
|||||||||||
Working capital and margin deposits |
(73) |
(73) |
— |
— |
(73) |
(73) |
|||||||||||||||||
Solar and Moss Landing development expenditures |
251 |
251 |
— |
— |
251 |
251 |
|||||||||||||||||
Taxes related to Alcoa Settlement |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Transition and merger expenses |
8 |
8 |
— |
— |
8 |
8 |
|||||||||||||||||
Generation plant retirement expenses |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Transition capital expenditures |
23 |
23 |
— |
— |
23 |
23 |
|||||||||||||||||
Adjusted free cash flow |
$ |
2,050 |
$ |
2,350 |
$ |
(160) |
$ |
(140) |
$ |
1,890 |
$ |
2,210 |
(a) |
Includes state tax payments. |
View original content with multimedia:http://www.prnewswire.com/news-releases/vistra-energy-reports-second-quarter-2018-results-above-expectations-reaffirms-2018--2019-ongoing-operations-guidance-300692074.html
SOURCE Vistra Energy
IRVING, Texas, July 16, 2018 /PRNewswire/ -- Vistra Energy (NYSE: VST) plans to report its second quarter 2018 financial and operating results on Monday, August 6, 2018. Management will present the results during a webcast beginning at 8 a.m. ET (7 a.m. CT).
The live, listen-only webcast of the conference call can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com under "Events and Presentations." For those unable to participate in the live event, a replay of the call will be available on the Vistra Energy website for one year following the call.
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.
View original content with multimedia:http://www.prnewswire.com/news-releases/vistra-energy-to-report-second-quarter-2018-results-on-august-6-2018-300681008.html
SOURCE Vistra Energy
IRVING, Texas, June 1, 2018 /PRNewswire/ -- Vistra Energy (NYSE: VST) today announced that its Upton 2 Solar Power Plant in West Texas has achieved commercial operations. At 180 megawatts, Upton 2 is Texas' largest operating solar facility. The company's power generating subsidiary, Luminant, is the plant's owner and serves as its qualified scheduling entity with the Electric Reliability Council of Texas (ERCOT).
Vistra announced the purchase of Upton 2 in May 2017 while the project was under development.
"When we announced the project a year ago, we did so knowing that Upton 2 was the perfect fit for Vistra's integrated business model," said Curt Morgan, the company's president and chief executive officer. "Through this project, we're enabling our Texas retail brand, TXU Energy, to enhance its retail solar offerings, and we're diversifying Luminant's generation fleet, as well. This project makes strategic sense for us as a business, and we're excited that it is officially powering Texas in time for the 2018 summer."
Upton 2 Solar Power Plant Facts
Media
Meranda Cohn
Media.Relations@vistraenergy.com
214-875-8004
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.
View original content:http://www.prnewswire.com/news-releases/upton-2-solar-power-plant-achieves-commercial-operation-300658136.html
SOURCE Vistra Energy
IRVING, Texas, May 23, 2018 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST) today reported its results from the PJM capacity auction for planning year 2021/2022. The company cleared a total of 9,779 megawatts (MW) at a weighted average clearing price of $156.47 per megawatt-day, equating to approximately $559 million in capacity revenue for the 2021/2022 planning year. This total includes Vistra's PJM fleet that cleared 8,981 MW at a weighted average price of $157.94 per megawatt-day for total capacity revenues of $518 million and exports from MISO to PJM that cleared 799 MW at a weighted average price of $140.00 per megawatt-day for total capacity revenues of $41 million.
The table below lists Vistra's cleared capacity and associated clearing price for the 2021/2022 capacity auction by zone.
Zone |
Clearing Price |
Megawatts | ||
RTO1 |
$140.00 |
6,435 | ||
COMED |
$195.55 |
2,450 | ||
EMAAC |
$165.73 |
534 | ||
ATSI |
$171.33 |
360 | ||
Total |
$156.47 |
9,779 |
1 |
Includes 799 MW of MISO imports. |
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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission ("SEC") by Vistra Energy and Dynegy from time to time, including the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in Vistra Energy's and Dynegy's respective annual reports on Form 10-K for the fiscal year ended Dec. 31, 2017.
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.
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
View original content with multimedia:http://www.prnewswire.com/news-releases/vistra-energy-reports-pjm-auction-results-300653997.html
SOURCE Vistra Energy
IRVING, Texas, May 18, 2018 /PRNewswire/ -- Vistra Energy (NYSE: VST) is honored to have been awarded the Spirit of Caring Award from United Way of Metropolitan Dallas. The Spirit of Caring Award is the most prestigious award given by United Way of Metropolitan Dallas and is presented to the company that demonstrates excellence in supporting the United Way's annual campaign and outstanding community involvement throughout the year.
In the past year, Vistra raised more than $1.57 million in employee and corporate contributions for United Way. Contributions went to United Way chapters in communities across Texas where the company has locations, but most of the money raised went to the Metropolitan Dallas chapter, making Vistra one of only 12 "Million Dollar" companies. In addition, Vistra employees volunteered more than 700 hours during the annual campaign.
"Vistra's dedicated employees have a longstanding commitment to positively and constructively engaging our local communities, service organizations, and charitable leaders that make a lasting difference in the lives of those in need," said Curt Morgan, Vistra's president and chief executive officer. "The United Way is so incredibly effective in this respect, and I'm proud of our people for living our values, for going above and beyond, and for selflessly serving others in the communities where we work and live."
"Metropolitan Dallas is deeply blessed by the determination and commitment to serve shown by Vistra's outstanding employees," added Jennifer Sampson, president and CEO of United Way of Metropolitan Dallas. "Vistra's receipt of the Spirit of Caring Award caps years of remarkable generosity, highlighted by the fact that the company has raised a total of $10.5 million for annual United Way campaigns since 2013. Furthermore, and just as importantly, Vistra employees have donated thousands of volunteer hours to nonprofits across North Texas. We are deeply grateful to Vistra for these remarkable contributions and look to Vistra as a continuing standard for commitment to the community. They inspire us."
In addition to receipt of the Spirit of Caring Award, Vistra team member Danielle Cooper has been recognized with the Emerging Leader award for her role in the Vistra campaign, the company's volunteer program Energy In Action, and ongoing volunteerism as a Grant Panelist with United Way of Metropolitan Dallas. The award is given to a young professional who is committed to helping communities succeed through giving, volunteerism, and advocacy.
Vistra Energy was formally honored at the annual United Way Awards dinner on May 17 in Dallas.
Media
Meranda Cohn
Media.Relations@vistraenergy.com
214-875-8004
About Vistra Energy
Vistra Energy (NYSE: VST) is a premier, integrated power company based in Irving, Texas, combining an innovative, customer-centric approach to retail with a focus on safe, reliable, and efficient power generation. Through its retail and generation businesses which include TXU Energy, Homefield Energy, Dynegy, and Luminant, Vistra operates in 12 states and six of the seven competitive markets in the U.S., with about 6,000 employees. Vistra's retail brands serve approximately 2.9 million residential, commercial, and industrial customers across five top retail states, and its generation fleet totals approximately 41,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, and solar facilities.
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SOURCE Vistra Energy
IRVING, Texas, May 4, 2018 /PRNewswire/ -- Vistra Energy Corp. (NYSE: VST):
Highlights:
($ in millions) |
Oct. 2017 |
May 2018 |
Increase | ||||||
Adjusted EBITDA Value Levers |
$ |
350 |
$ |
500 |
$ |
150 | |||
After-Tax Adj. Free Cash Flow Value Levers |
$ |
65 |
$ |
235 |
$ |
170 | |||
NPV of DYN NOLs and AMT Credit Refunds |
$ |
500-600 |
$ |
750-850 |
$ |
250 |
($ in millions) |
2018E |
2018E |
2019E |
2019E | ||||||||
Ongoing Ops. Adj. EBITDA2 |
$ |
2,700 - 2,900 |
$ |
3,150 - 3,350 |
$ |
3,200 - 3,500 |
$3,275 - 3,575 | |||||
Ongoing Ops. Adj. FCF2 |
$ |
1,400 - 1,600 |
$ |
1,675 - 1,875 |
$ |
2,050 - 2,350 |
$2,150 - 2,450 | |||||
1 2018E Illustrative guidance provided solely to give investors a full-year view of the earnings power of the combined company. 2019E Illustrative guidance provided solely to give investors a view of the earnings power of the combined company once the full run-rate of value levers is achieved. Such guidance is being provided for illustrative purposes only and does not reflect management's actual expectations for 2018 and 2019 performance. |
2 Excludes results from the Asset Closure segment. Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures. See the "Reg G Reconciliations" tables for further details. |
Completed Merger with Dynegy and Increasing Value Lever and Synergy Targets
On April 9, 2018, Vistra Energy Corp. (NYSE: VST) closed its merger with Dynegy, Inc., creating the leading, lowest-cost integrated power company across the key competitive markets in the United States. Through the combination, Vistra has achieved earnings, geographic, and fuel diversification and transformed into a highly efficient, natural gas-centric power plant fleet with approximately 41,000 MW of capacity (84 percent of which is in the attractive ERCOT, PJM, and ISO-NE regions). In addition, Vistra has expanded its retail footprint and created a platform for further retail growth and integration, while maintaining a strong and liquid balance sheet – with an intention to de-lever to a 2.5 times net debt to EBITDA target by year-end 2019.
Vistra also believes the combination creates the opportunity to drive substantial value for shareholders through the anticipated realization of projected EBITDA and after-tax free cash flow value levers and tax synergies. Based on further, in-depth diligence undertaken since the merger was announced, Vistra is increasing its previously communicated adjusted EBITDA, adjusted free cash flow, and tax synergy value lever targets, as reflected in the table below.
($ in millions) |
Oct. 2017 |
May 2018 |
Increase | ||||||
Adjusted EBITDA Value Levers |
$ |
350 |
$ |
500 |
$ |
150 | |||
After-Tax Adj. Free Cash Flow Value Levers |
$ |
65 |
$ |
235 |
$ |
170 | |||
NPV of DYN NOLs and AMT Credit Refunds |
$ |
500-600 |
$ |
750-850 |
$ |
250 |
Combined Company Guidance
Vistra is initiating 2018 and 2019 guidance reflecting the closing of the merger with Dynegy. Vistra's 2018 guidance reflects earnings and cash flow expectations of Vistra on a stand-alone basis for the period prior to April 9, 2018 and earnings and cash flow expectations on a combined-company basis for the period from April 9 through Dec. 31, 2018. The guidance assumes power price curves as of March 30, 2018 in all markets.
The combined company is projected to convert approximately 60 percent of its ongoing operations adjusted EBITDA to free cash flow on an annual basis, which far exceeds other commodity-based, capital-intensive industries, affording Vistra a broad range of capital allocation alternatives, including the potential to return capital to shareholders.
Vistra Energy Guidance ($ in millions) |
2018E |
2019E | ||||
Ongoing Operations Adjusted EBITDA3 |
$ |
2,700 – 2,900 |
$ |
3,200 – 3,500 | ||
Ongoing Operations Adjusted Free Cash Flow3 |
$ |
1,400 – 1,600 |
$ |
2,050 – 2,350 |
3 Excludes results from the Asset Closure Segment. Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures. See the "Reg G Reconciliations" tables for further details. |
Pro Forma Illustrative Guidance4
Vistra is also providing illustrative guidance for 2018 and 2019. The 2018 illustrative guidance is pro forma for a merger close date of Jan. 1, 2018, which provides visibility into the hypothetical earnings power of the combined company for the full year and includes an estimate of value lever targets expected to be achieved in the first 12 months following the merger close. The 2019 illustrative guidance is pro forma for the full run-rate of value levers, providing a view of the potential earnings power of the combined company after all targeted merger value levers are realized. The illustrative guidance is provided for illustration purposes only and is not intended to replace Vistra's actual guidance set forth above.
Vistra Energy Illustrative Guidance ($ in millions) |
2018E Pro forma for 1-1-18 |
2019E Pro forma for full run- | ||||
Ongoing Operations Adjusted EBITDA5 |
$ |
3,150 – 3,350 |
$ |
3,275 – 3,575 | ||
Ongoing Operations Adjusted Free Cash Flow5 |
$ |
1,675 – 1,875 |
$ |
2,150 – 2,450 |
4 2018E Illustrative guidance provided solely to give investors a full-year view of the earnings power of the combined company. 2019E Illustrative guidance provided solely to give investors a view of the earnings power of the combined company once the full run-rate of value levers is achieved. Such guidance is being provided for illustrative purposes only and does not reflect management's actual expectations for 2018 and 2019 performance. |
5 Excludes results from the Asset Closure Segment. Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures. See the "Reg G Reconciliations" tables for further details. |
Summary of Financial Results for the First Quarter Ended March 31, 2018 (in millions):
Three Months Ended March 31, | ||||||
($ in millions) |
2018 |
2017 | ||||
Ongoing Operations Net Income (Loss)6 |
$ |
(284) |
$ |
91 | ||
Ongoing Operations Adjusted EBITDA5 |
$ |
263 |
$ |
285 | ||
- excl. Odessa Earnout Buyback5 |
$ |
284 |
$ |
285 |
6 Ongoing Operations includes Wholesale Generation, Retail Electricity, and Corporate and Other. It excludes the Asset Closure segment. |
Vistra reported a net loss from its ongoing operations of $284 million for the three months ended March 31, 2018 as compared to net income from its ongoing operations of $91 million in the first quarter of 2017. The quarter-over-quarter decrease was driven by $426 million of unrealized losses on wholesale hedge positions in 2018, reflecting sharply rising ERCOT forward power prices due principally to higher market heat rates.
Vistra reported adjusted EBITDA from its ongoing operations of $263 million in the first quarter of 2018, exceeding expectations embedded in Vistra's stand-alone earnings guidance, versus $285 million in the first quarter of 2017. The decrease was driven predominantly by a $21 million reduction in adjusted EBITDA related to Vistra's partial buyback of the Odessa Power Plant earnout for a three-year period, which is expected to generate an approximately $3 million and $23 million adjusted EBITDA benefit (net of the premium paid) for Vistra in 2018 and in the aggregate over the next three years, respectively. Operating and maintenance expenses were higher quarter over quarter as a result of outage expense timing. These impacts were partially offset by higher adjusted EBITDA from the retail segment due to favorable weather and lower SG&A expenses versus the first quarter of 2017.
Segment Results:
Table 1: Net Income / (Loss) | ||||||||||
Three Months Ended March 31, | ||||||||||
($ in millions) |
2018 |
2017 | ||||||||
Retail |
$ |
771 |
$ |
(113) | ||||||
Wholesale7 |
$ |
(1,086) |
$ |
303 | ||||||
Corporate / Other |
$ |
31 |
$ |
(99) | ||||||
Ongoing Operations |
(284) |
91 | ||||||||
Asset Closure7 |
$ |
(22) |
$ |
(13) | ||||||
Total |
$ |
(306) |
$ |
78 | ||||||
Table 2: Adjusted EBITDA | ||||||||||
Three Months Ended March 31, | ||||||||||
($ in millions) |
2018 |
2017 | ||||||||
Retail |
$ |
194 |
$ |
177 | ||||||
Wholesale7 |
$ |
70 |
$ |
105 | ||||||
Corporate |
$ |
(1) |
$ |
3 | ||||||
Ongoing Operations |
263 |
285 | ||||||||
Asset Closure7 |
$ |
(22) |
$ |
(9) | ||||||
Total |
$ |
241 |
$ |
276 |
7 In accordance with GAAP, 2017 results have been recast to reflect the introduction of the Asset Closure segment. |
Retail: First quarter net income was $771 million, $884 million higher than first quarter 2017 results primarily due to unrealized gains on hedge positions with Vistra's wholesale segment driven by sharply rising ERCOT forward prices principally driven by higher market heat rates. Adjusted EBITDA totaled $194 million for the first quarter 2018 compared to $177 million during the same period in 2017, with the increase driven by comparatively favorable weather and lower SG&A expenses.
Wholesale: First quarter net loss was $1,086 million, $1,389 million lower than first quarter 2017 results primarily driven by unrealized losses of $1,069 million on wholesale positions with both retail affiliates and third-parties caused by sharply rising ERCOT forward power prices principally driven by higher market heat rates. Adjusted EBITDA totaled $70 million for the first quarter 2018 compared to $105 million during the same period in 2017 with the decrease driven by outage expense timing, as well as a $21 million reduction in adjusted EBITDA in February 2018 related to Vistra's partial buyback of the Odessa Power Plant earnout, which is expected to generate a $3 million and $23 million adjusted EBITDA benefit (net of the premium paid) for Vistra in 2018 and in the aggregate over the next three years, respectively. The partial buyback had a minimal impact on net income as the earnout is marked to market for GAAP reporting.
Asset Closure: First quarter net loss was $22 million, compared to a net loss of $13 million in the first quarter of 2017, and first quarter 2018 Adjusted EBITDA totaled $(22) million compared to $(9) million during the same period in 2017. The decrease was primarily driven by lower contribution from assets that were retired throughout the first quarter of 2018 but were generating revenues for the entire first quarter of 2017.
Liquidity
Liquidity ($ in millions) |
3/31/2018 |
3/31/2018 | ||||
Cash |
$ |
939 |
$ |
1,379 | ||
Revolver Availability |
$ |
1,495 |
$ |
584 | ||
Term Loan C Availability |
$ |
18 |
$ |
18 | ||
Total |
$ |
2,452 |
$ |
1,981 |
As of March 31, 2018, on a stand-alone basis, Vistra had total available liquidity of approximately $1.981 billion, including cash and cash equivalents of $1.379 billion, $18 million in available letter of credit capacity under its term loan C facility, and $584 million of availability under its revolving credit facility, which remained undrawn but had $276 million of letters of credit outstanding as of March 31, 2018.
Assuming the merger had closed on March 31, 2018 and that Vistra utilized $864 million of cash to pay the principal and redemption premium for the remaining $850 million of legacy Dynegy 6.75% notes due November 2019, Vistra on a combined-company basis would have had approximately $2.452 billion of liquidity, including cash and cash equivalents of $939 million, $18 million in available letter of credit capacity under its term loan C facility, and $1,495 million of combined availability under its revolving credit facilities, which remained undrawn but had a cumulative $910 million of letters of credit outstanding as of March 31, 2018.
Earnings Conference Call
Vistra will host a conference call today, May 4, 2018, beginning at 8 a.m. EDT (7 a.m. CDT) to discuss these results and related matters. The live, listen-only webcast of the conference call 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 call 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" (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures, 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 new Asset Closure segment) and "Ongoing Operations Adjusted Free Cash Flow" (adjusted free cash flow less cash flow from operating activities from new Asset Closure segment), 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 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. Vistra Energy uses Ongoing Operations Adjusted EBITDA as a measure of performance and Ongoing Operations Adjusted Free Cash Flow 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) the effect of the merger (the "Merger") on Vistra Energy's relationships with Vistra Energy's and Dynegy Inc.'s ("Dynegy") respective customers and their operating results and businesses generally (including the diversion of management time on integration-related issues); (ii) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (iii) 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; (iv) 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); and (v) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission ("SEC") by Vistra Energy and Dynegy from time to time, including the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in Vistra Energy's and Dynegy's respective annual reports on Form 10-K for the fiscal year ended Dec. 31, 2017.
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 March 31, | |||||||
2018 |
2017 | ||||||
Operating revenues |
$ |
765 |
$ |
1,357 |
|||
Fuel, purchased power costs and delivery fees |
(650) |
(683) |
|||||
Operating costs |
(194) |
(214) |
|||||
Depreciation and amortization |
(153) |
(170) |
|||||
Selling, general and administrative expenses |
(162) |
(135) |
|||||
Operating income (loss) |
(394) |
155 |
|||||
Other income |
10 |
9 |
|||||
Other deductions |
(2) |
— |
|||||
Interest expense and related charges |
9 |
(24) |
|||||
Impacts of Tax Receivable Agreement |
(18) |
(21) |
|||||
Income (loss) before income taxes |
(395) |
119 |
|||||
Income tax benefit (expense) |
89 |
(41) |
|||||
Net income (loss) |
$ |
(306) |
$ |
78 |
|||
Weighted average shares of common stock outstanding: |
|||||||
Basic |
428,450,384 |
427,583,339 |
|||||
Diluted |
428,450,384 |
427,800,350 |
|||||
Net income (loss) per weighted average share of common stock outstanding: |
|||||||
Basic |
$ |
(0.71) |
$ |
0.18 |
|||
Diluted |
$ |
(0.71) |
$ |
0.18 |
VISTRA ENERGY CORP. CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (Millions of Dollars) | |||||||
Three Months Ended March 31, | |||||||
2018 |
2017 | ||||||
Cash flows — operating activities: |
|||||||
Net income (loss) |
$ |
(306) |
$ |
78 |
|||
Adjustments to reconcile net income (loss) to cash provided by operating activities: |
|||||||
Depreciation and amortization |
180 |
226 |
|||||
Deferred income tax (benefit) expense, net |
(83) |
42 |
|||||
Unrealized net (gain) loss from mark-to-market valuations of derivatives |
356 |
(129) |
|||||
Accretion expense |
19 |
14 |
|||||
Impacts of Tax Receivable Agreement |
18 |
21 |
|||||
Stock-based compensation |
6 |
4 |
|||||
Other, net |
7 |
(13) |
|||||
Changes in operating assets and liabilities: |
|||||||
Margin deposits, net |
(64) |
113 |
|||||
Accrued interest |
(11) |
(31) |
|||||
Accrued taxes |
(69) |
(73) |
|||||
Accrued incentive plan |
(50) |
(73) |
|||||
Other operating assets and liabilities |
(25) |
(38) |
|||||
Cash (used in) provided by operating activities |
(22) |
141 |
|||||
Cash flows — financing activities: |
|||||||
Repayments/repurchases of debt |
(10) |
(13) |
|||||
Other, net |
1 |
(5) |
|||||
Cash used in financing activities |
(9) |
(18) |
|||||
Cash flows — investing activities: |
|||||||
Capital expenditures |
(39) |
(31) |
|||||
Nuclear fuel purchases |
(11) |
(12) |
|||||
Solar development expenditures |
(21) |
— |
|||||
Proceeds from sales of nuclear decommissioning trust fund securities |
46 |
79 |
|||||
Investments in nuclear decommissioning trust fund securities |
(51) |
(84) |
|||||
Other, net |
(1) |
(3) |
|||||
Cash used in investing activities |
(77) |
(51) |
|||||
Net change in cash, cash equivalents and restricted cash |
(108) |
72 |
|||||
Cash, cash equivalents and restricted cash — beginning balance |
2,046 |
1,588 |
|||||
Cash, cash equivalents and restricted cash — ending balance |
$ |
1,938 |
$ |
1,660 |
VISTRA ENERGY CORP. REG G RECONCILIATIONS - Q1 2018 ADJUSTED EBITDA (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||||||
Wholesale Generation |
Retail Electricity |
Eliminations / Corp & Other |
Ongoing Operations Consolidated |
Asset Closure |
Vistra | ||||||||||||||||||
Net income (loss) |
$ |
(1,086) |
$ |
771 |
$ |
31 |
$ |
(284) |
$ |
(22) |
$ |
(306) |
|||||||||||
Income tax expense (benefit) |
— |
— |
(89) |
(89) |
— |
(89) |
|||||||||||||||||
Interest expense and related charges |
8 |
— |
(17) |
(9) |
— |
(9) |
|||||||||||||||||
Depreciation and amortization (a) |
84 |
76 |
13 |
173 |
— |
173 |
|||||||||||||||||
EBITDA before adjustments |
$ |
(994) |
$ |
847 |
$ |
(62) |
$ |
(209) |
$ |
(22) |
$ |
(231) |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
1,070 |
(655) |
— |
415 |
— |
415 |
|||||||||||||||||
Fresh start accounting impacts |
(2) |
12 |
— |
10 |
— |
10 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
— |
— |
18 |
18 |
— |
18 |
|||||||||||||||||
Reorganization items and restructuring expenses |
— |
— |
2 |
2 |
— |
2 |
|||||||||||||||||
Non-cash compensation expenses |
— |
— |
6 |
6 |
— |
6 |
|||||||||||||||||
Transition and merger expenses |
2 |
— |
26 |
28 |
— |
28 |
|||||||||||||||||
Other, net |
(6) |
(10) |
9 |
(7) |
— |
(7) |
|||||||||||||||||
Adjusted EBITDA |
$ |
70 |
$ |
194 |
$ |
(1) |
$ |
263 |
$ |
(22) |
$ |
241 |
____________ |
(a) Includes nuclear fuel amortization of $20 million in the Wholesale Generation segment. |
VISTRA ENERGY CORP. REG G RECONCILIATIONS - Q1 2017 ADJUSTED EBITDA (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Three Months Ended March 31, 2017 | |||||||||||||||||||||||
Wholesale Generation |
Retail Electricity |
Eliminations / Corp & Other |
Ongoing Operations Consolidated |
Asset Closure |
Vistra Energy | ||||||||||||||||||
Net income (loss) |
$ |
303 |
$ |
(113) |
$ |
(99) |
$ |
91 |
$ |
(13) |
$ |
78 |
|||||||||||
Income tax expense (benefit) |
— |
— |
41 |
41 |
— |
41 |
|||||||||||||||||
Interest expense and related charges |
1 |
— |
23 |
24 |
— |
24 |
|||||||||||||||||
Depreciation and amortization (a) |
83 |
106 |
11 |
200 |
— |
200 |
|||||||||||||||||
EBITDA before adjustments |
$ |
387 |
$ |
(7) |
$ |
(24) |
$ |
356 |
$ |
(13) |
$ |
343 |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
(282) |
162 |
— |
(120) |
— |
(120) |
|||||||||||||||||
Fresh start accounting impacts |
(1) |
24 |
— |
23 |
4 |
27 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
— |
— |
21 |
21 |
— |
21 |
|||||||||||||||||
Reorganization items and restructuring expenses |
— |
— |
4 |
4 |
— |
4 |
|||||||||||||||||
Other, net |
1 |
(2) |
2 |
1 |
— |
1 |
|||||||||||||||||
Adjusted EBITDA |
$ |
105 |
$ |
177 |
$ |
3 |
$ |
285 |
$ |
(9) |
$ |
276 |
(a) Includes nuclear fuel amortization of $30 million in the Wholesale Generation segment. |
VISTRA ENERGY CORP. REG G RECONCILIATIONS - 2018 GUIDANCE (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing |
Asset Closure |
Vistra Energy | |||||||||||||||||||||
Low |
High |
Low |
High |
Low |
High | ||||||||||||||||||
Net Income |
$ |
549 |
$ |
705 |
$ |
(94) |
$ |
(84) |
$ |
455 |
$ |
621 |
|||||||||||
Income tax expense |
139 |
183 |
— |
— |
139 |
183 |
|||||||||||||||||
Interest expense and related charges |
552 |
552 |
— |
— |
552 |
552 |
|||||||||||||||||
Depreciation and amortization |
1,244 |
1,244 |
— |
— |
1,244 |
1,244 |
|||||||||||||||||
EBITDA before adjustments |
$ |
2,485 |
$ |
2,685 |
$ |
(94) |
$ |
(84) |
$ |
2,391 |
$ |
2,601 |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
(58) |
(58) |
— |
— |
(58) |
(58) |
|||||||||||||||||
Adjusted EBITDA from unconsolidated investments and exclude noncontrolling interest |
(5) |
(5) |
— |
— |
(5) |
(5) |
|||||||||||||||||
Fresh start accounting impacts |
26 |
26 |
— |
— |
26 |
26 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
64 |
64 |
— |
— |
64 |
64 |
|||||||||||||||||
Reorganization and restructuring expenses |
2 |
2 |
— |
— |
2 |
2 |
|||||||||||||||||
Transition and merger expenses |
156 |
156 |
— |
— |
156 |
156 |
|||||||||||||||||
Other, net |
29 |
29 |
4 |
4 |
33 |
33 |
|||||||||||||||||
Adjusted EBITDA |
$ |
2,700 |
$ |
2,900 |
$ |
(90) |
$ |
(80) |
$ |
2,610 |
$ |
2,820 |
|||||||||||
Interest payments |
(634) |
(634) |
— |
— |
(634) |
(634) |
|||||||||||||||||
Tax payments |
(51) |
(51) |
— |
— |
(51) |
(51) |
|||||||||||||||||
Tax receivable agreement payments |
(24) |
(24) |
— |
— |
(24) |
(24) |
|||||||||||||||||
Working capital and margin deposits |
25 |
25 |
— |
— |
25 |
25 |
|||||||||||||||||
Reclamation and remediation |
(44) |
(44) |
(102) |
(102) |
(146) |
(146) |
|||||||||||||||||
Other changes in operating assets and liabilities |
(262) |
(262) |
6 |
16 |
(257) |
(247) |
|||||||||||||||||
Cash provided by operating activities |
$ |
1,710 |
$ |
1,910 |
$ |
(186) |
$ |
(166) |
$ |
1,524 |
$ |
1,744 |
|||||||||||
Capital expenditures including nuclear fuel |
(508) |
(508) |
— |
— |
(508) |
(508) |
|||||||||||||||||
Solar development expenditures |
(29) |
(29) |
— |
— |
(29) |
(29) |
|||||||||||||||||
Other net investing activities |
(24) |
(24) |
— |
— |
(24) |
(24) |
|||||||||||||||||
Free cash flow |
$ |
1,149 |
$ |
1,349 |
$ |
(186) |
$ |
(166) |
$ |
963 |
$ |
1,183 |
|||||||||||
Working capital and margin deposits |
(25) |
(25) |
— |
— |
(25) |
(25) |
|||||||||||||||||
Solar development expenditures |
29 |
29 |
— |
— |
29 |
29 |
|||||||||||||||||
Taxes related to Alcoa Settlement |
45 |
45 |
— |
— |
45 |
45 |
|||||||||||||||||
Transition and merger expenses |
156 |
156 |
— |
— |
156 |
156 |
|||||||||||||||||
Generation plant retirement expenses |
— |
— |
26 |
26 |
26 |
26 |
|||||||||||||||||
Transition capital expenditures |
45 |
45 |
— |
— |
45 |
45 |
|||||||||||||||||
Adjusted free cash flow |
$ |
1,400 |
$ |
1,600 |
$ |
(160) |
$ |
(140) |
$ |
1,240 |
$ |
1,460 |
VISTRA ENERGY CORP. REG G RECONCILIATIONS - 2018 GUIDANCE (ILLUSTRATIVE) (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Illustrative | |||||||||||||||||||||||
Ongoing |
Asset Closure |
Vistra Energy | |||||||||||||||||||||
Low |
High |
Low |
High |
Low |
High | ||||||||||||||||||
Net Income |
$ |
695 |
$ |
851 |
$ |
(94) |
$ |
(84) |
$ |
601 |
$ |
767 |
|||||||||||
Income tax expense |
178 |
222 |
— |
— |
178 |
222 |
|||||||||||||||||
Interest expense and related charges |
668 |
668 |
— |
— |
668 |
668 |
|||||||||||||||||
Depreciation and amortization |
1,394 |
1,394 |
— |
— |
1,394 |
1,394 |
|||||||||||||||||
EBITDA before adjustments |
$ |
2,935 |
$ |
3,135 |
$ |
(94) |
$ |
(84) |
$ |
2,841 |
$ |
3,051 |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
(58) |
(58) |
— |
— |
(58) |
(58) |
|||||||||||||||||
Adjusted EBITDA from unconsolidated investments and exclude noncontrolling interest |
(5) |
(5) |
— |
— |
(5) |
(5) |
|||||||||||||||||
Fresh start accounting impacts |
26 |
26 |
— |
— |
26 |
26 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
64 |
64 |
— |
— |
64 |
64 |
|||||||||||||||||
Reorganization and restructuring expenses |
2 |
2 |
— |
— |
2 |
2 |
|||||||||||||||||
Transition and merger expenses |
156 |
156 |
— |
— |
156 |
156 |
|||||||||||||||||
Other, net |
29 |
29 |
4 |
4 |
33 |
33 |
|||||||||||||||||
Adjusted EBITDA |
$ |
3,150 |
$ |
3,350 |
$ |
(90) |
$ |
(80) |
$ |
3,060 |
$ |
3,270 |
|||||||||||
Interest payments |
(740) |
(740) |
— |
— |
(740) |
(740) |
|||||||||||||||||
Tax payments |
(51) |
(51) |
— |
— |
(51) |
(51) |
|||||||||||||||||
Tax receivable agreement payments |
(24) |
(24) |
— |
— |
(24) |
(24) |
|||||||||||||||||
Working capital and margin deposits |
25 |
25 |
— |
— |
25 |
25 |
|||||||||||||||||
Reclamation and remediation |
(44) |
(44) |
(102) |
(102) |
(146) |
(146) |
|||||||||||||||||
Other changes in operating assets and liabilities |
(251) |
(251) |
6 |
16 |
(245) |
(235) |
|||||||||||||||||
Cash provided by operating activities |
$ |
2,065 |
$ |
2,265 |
$ |
(186) |
$ |
(166) |
$ |
1,879 |
$ |
2,099 |
|||||||||||
Capital expenditures including nuclear fuel |
(587) |
(587) |
— |
— |
(587) |
(587) |
|||||||||||||||||
Solar development expenditures |
(29) |
(29) |
— |
— |
(29) |
(29) |
|||||||||||||||||
Other net investing activities |
(24) |
(24) |
— |
— |
(24) |
(24) |
|||||||||||||||||
Free cash flow |
$ |
1,424 |
$ |
1,625 |
$ |
(186) |
$ |
(166) |
$ |
1,238 |
$ |
1,458 |
|||||||||||
Working capital and margin deposits |
(25) |
(25) |
— |
— |
(25) |
(25) |
|||||||||||||||||
Solar development expenditures |
29 |
29 |
— |
— |
29 |
29 |
|||||||||||||||||
Taxes related to Alcoa Settlement |
45 |
45 |
— |
— |
45 |
45 |
|||||||||||||||||
Transition and merger expenses |
156 |
156 |
— |
— |
156 |
156 |
|||||||||||||||||
Generation plant retirement expenses |
— |
— |
26 |
26 |
26 |
26 |
|||||||||||||||||
Transition capital expenditures |
45 |
45 |
— |
— |
45 |
45 |
|||||||||||||||||
Adjusted free cash flow |
$ |
1,675 |
$ |
1,875 |
$ |
(160) |
$ |
(140) |
$ |
1,515 |
$ |
1,735 |
VISTRA ENERGY CORP. REG G RECONCILIATIONS - 2019 GUIDANCE (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Ongoing |
Asset Closure |
Vistra Energy | |||||||||||||||||||||
Low |
High |
Low |
High |
Low |
High | ||||||||||||||||||
Net Income |
$ |
1,029 |
$ |
1,264 |
$ |
(70) |
$ |
(60) |
$ |
959 |
$ |
1,204 |
|||||||||||
Income tax expense |
248 |
313 |
— |
— |
248 |
313 |
|||||||||||||||||
Interest expense and related charges |
555 |
555 |
— |
— |
555 |
555 |
|||||||||||||||||
Depreciation and amortization |
1,339 |
1,339 |
— |
— |
1,339 |
1,339 |
|||||||||||||||||
EBITDA before adjustments |
$ |
3,171 |
$ |
3,471 |
$ |
(70) |
$ |
(60) |
$ |
3,101 |
$ |
3,411 |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
(83) |
(83) |
— |
— |
(83) |
(83) |
|||||||||||||||||
Adjusted EBITDA from unconsolidated investments and exclude noncontrolling interest |
(7) |
(7) |
— |
— |
(7) |
(7) |
|||||||||||||||||
Fresh start accounting impacts |
17 |
17 |
— |
— |
17 |
17 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
55 |
55 |
— |
— |
55 |
55 |
|||||||||||||||||
Reorganization and restructuring expenses |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Transition and merger expenses |
8 |
8 |
— |
— |
8 |
8 |
|||||||||||||||||
Other, net |
39 |
39 |
— |
— |
39 |
39 |
|||||||||||||||||
Adjusted EBITDA |
$ |
3,200 |
$ |
3,500 |
$ |
(70) |
$ |
(60) |
$ |
3,130 |
$ |
3,440 |
|||||||||||
Interest payments |
(551) |
(551) |
— |
— |
(551) |
(551) |
|||||||||||||||||
Tax payments |
111 |
111 |
— |
— |
111 |
111 |
|||||||||||||||||
Tax receivable agreement payments |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Working capital and margin deposits |
23 |
23 |
— |
— |
23 |
23 |
|||||||||||||||||
Reclamation and remediation |
(73) |
(73) |
(100) |
(100) |
(173) |
(173) |
|||||||||||||||||
Other changes in operating assets and liabilities |
(56) |
(56) |
20 |
30 |
(36) |
(26) |
|||||||||||||||||
Cash provided by operating activities |
$ |
2,653 |
$ |
2,953 |
$ |
(150) |
$ |
(130) |
$ |
2,504 |
$ |
2,824 |
|||||||||||
Capital expenditures including nuclear fuel |
(606) |
(606) |
— |
— |
(606) |
(606) |
|||||||||||||||||
Solar development expenditures |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Other net investing activities |
(5) |
(5) |
— |
— |
(5) |
(5) |
|||||||||||||||||
Free cash flow |
$ |
2,042 |
$ |
2,342 |
$ |
(150) |
$ |
(130) |
$ |
1,893 |
$ |
2,213 |
|||||||||||
Working capital and margin deposits |
(23) |
(23) |
— |
— |
(23) |
(23) |
|||||||||||||||||
Solar development expenditures |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Taxes related to Alcoa Settlement |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Transition and merger expenses |
8 |
8 |
— |
— |
8 |
8 |
|||||||||||||||||
Generation plant retirement expenses |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Transition capital expenditures |
23 |
23 |
— |
— |
23 |
23 |
|||||||||||||||||
Adjusted free cash flow |
$ |
2,050 |
$ |
2,350 |
$ |
(150) |
$ |
(130) |
$ |
1,900 |
$ |
2,220 |
VISTRA ENERGY CORP. REG G RECONCILIATIONS - 2019 GUIDANCE (ILLUSTRATIVE) (Unaudited) (Millions of Dollars) | |||||||||||||||||||||||
Illustrative | |||||||||||||||||||||||
Ongoing |
Asset Closure |
Vistra Energy | |||||||||||||||||||||
Low |
High |
Low |
High |
Low |
High | ||||||||||||||||||
Net Income |
$ |
1,088 |
$ |
1,323 |
$ |
(70) |
$ |
(60) |
$ |
1,018 |
$ |
1,263 |
|||||||||||
Income tax expense |
264 |
329 |
— |
— |
264 |
329 |
|||||||||||||||||
Interest expense and related charges |
555 |
555 |
— |
— |
555 |
555 |
|||||||||||||||||
Depreciation and amortization |
1,339 |
1,339 |
— |
— |
1,339 |
1,339 |
|||||||||||||||||
EBITDA before adjustments |
$ |
3,246 |
$ |
3,546 |
$ |
(70) |
$ |
(60) |
$ |
3,176 |
$ |
3,486 |
|||||||||||
Unrealized net (gain) loss resulting from hedging transactions |
(83) |
(83) |
— |
— |
(83) |
(83) |
|||||||||||||||||
Adjusted EBITDA from unconsolidated investments and exclude noncontrolling interest |
(7) |
(7) |
— |
— |
(7) |
(7) |
|||||||||||||||||
Fresh start accounting impacts |
17 |
17 |
— |
— |
17 |
17 |
|||||||||||||||||
Impacts of Tax Receivable Agreement |
55 |
55 |
— |
— |
55 |
55 |
|||||||||||||||||
Reorganization and restructuring expenses |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Transition and merger expenses |
8 |
8 |
— |
— |
8 |
8 |
|||||||||||||||||
Other, net |
39 |
39 |
— |
— |
39 |
39 |
|||||||||||||||||
Adjusted EBITDA |
$ |
3,275 |
$ |
3,575 |
$ |
(70) |
$ |
(60) |
$ |
3,205 |
$ |
3,515 |
|||||||||||
Interest payments |
(551) |
(551) |
— |
— |
(551) |
(551) |
|||||||||||||||||
Tax payments |
111 |
111 |
— |
— |
111 |
111 |
|||||||||||||||||
Tax receivable agreement payments |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Working capital and margin deposits |
23 |
23 |
— |
— |
23 |
23 |
|||||||||||||||||
Reclamation and remediation |
(73) |
(73) |
(100) |
(100) |
(173) |
(173) |
|||||||||||||||||
Other changes in operating assets and liabilities |
(31) |
(31) |
20 |
30 |
(11) |
(1) |
|||||||||||||||||
Cash provided by operating activities |
$ |
2,753 |
$ |
3,053 |
$ |
(150) |
$ |
(130) |
$ |
2,603 |
$ |
2,923 |
|||||||||||
Capital expenditures including nuclear fuel |
(606) |
(606) |
— |
— |
(606) |
(606) |
|||||||||||||||||
Solar development expenditures |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Other net investing activities |
(5) |
(5) |
— |
— |
(5) |
(5) |
|||||||||||||||||
Free cash flow |
$ |
2,142 |
$ |
2,442 |
$ |
(150) |
$ |
(130) |
$ |
1,992 |
$ |
2,312 |
|||||||||||
Working capital and margin deposits |
(23) |
(23) |
— |
— |
(23) |
(23) |
|||||||||||||||||
Solar development expenditures |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Taxes related to Alcoa Settlement |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Transition and merger expenses |
8 |
8 |
— |
— |
8 |
8 |
|||||||||||||||||
Generation plant retirement expenses |
— |
— |
— |
— |
— |
— |
|||||||||||||||||
Transition capital expenditures |
23 |
23 |
— |
— |
23 |
23 |
|||||||||||||||||
Adjusted free cash flow |
$ |
2,150 |
$ |
2,450 |
$ |
(150) |
$ |
(130) |
$ |
2,000 |
$ |
2,320 |
View original content with multimedia:http://www.prnewswire.com/news-releases/vistra-energy-significantly-increases-merger-synergy-targets-announces-post-merger-financial-guidance-and-reports-first-quarter-results-300642645.html
SOURCE Vistra Energy
IRVING, Texas, April 25, 2018 /PRNewswire/ -- TXU Energy today announced that it has recognized four innovative, Houston-area companies as category winners in the inaugural TXU Energy Leadership Award Program. This program recognizes corporate and non-profit leaders who define energy responsibility, including sustainability, energy management, community, and innovation. The awards were announced in conjunction with the TXU Energy Summit held today in Houston.
Gabe Castro, vice president of business markets for TXU Energy, stated, "We are committed to working with customers in South Texas to power their success through best-in-class standards for energy savings, efficiency, and environmental stewardship. We're so pleased to recognize four such customers who excel at putting 'theory into practice' by exhibiting exemplary leadership in the areas of energy management, innovation, sustainability, and community. By sharing their success stories, we hope to inspire others to follow suit and highlight best practices for energy professionals in every industry."
The four South Texas-area winners include:
Houston Pizza Venture ("HPV") is one of the largest Papa John's franchisees in the country, with more than 85 stores. The Houston-based company includes Papa John's, Genghis Grill, Firehouse Subs, Sure Fire Tacos, and Tortilla Grill stores throughout the South Texas region. HPV has elected to power all its stores with 100% renewable energy and committed to using clean energy from wind and solar for the next nine years. HPV's dedication to environmental leadership is also demonstrated through its annual Earth Day partnership #Trees4Pizza, which includes distributing more than 60,000 new trees in Houston over the last four years.
The Lone Star Flight Museum is an aviation history and STEM learning facility with a mission to honor, preserve, educate, and inspire. The museum is home to the Texas Aviation Hall of Fame, a renowned flying collection of historic aircraft, and the $1 million, high-tech Aviation Learning Center. The museum has chosen to power its new 130,000-square-foot facility with 100% clean energy from wind and solar power, resulting in long‐term benefits for the broader community.
Cypress Fairbanks ISD is one of the largest school districts in Texas, located just outside of the Houston metro area. The district consists of 56 facilities and it serves more than 115,000 students. Cy-Fair ISD strives to achieve an environment with no electricity waste, while maintaining an optimal learning environment. By installing energy efficient equipment and implementing automated systems to schedule use, the district significantly reduced waste and recognized long-term savings. The district also did its part to reduce consumption during peak usage periods to help ensure grid reliability and realize additional savings at the same time.
BakerRipley is a non-profit organization that serves communities in the Houston region. With more than 60 service centers, BakerRipley offers a variety of services to more than half a million people each year including Early Head Start, Head Start, education, and small business programs for individuals of all ages – from youths to seniors. During Hurricane Harvey, for example, BakerRipley was called upon on short notice by Harris County to operate one of the largest emergency shelters and ensure compassionate, effective immediate response, and is now providing long-term disaster recovery for impacted families. On a daily basis, the organization provides those in need across Houston with assistance, including energy bill funds through TXU Energy Aid.
TXU Energy is proud to share the accomplishments of the recipients of its inaugural awards program, and will present additional Energy Leadership Awards this fall at its Dallas / Ft. Worth Metroplex summit. Learn more about what TXU Energy can do to help your business or organization achieve its energy and sustainability goals by visiting us on LinkedIn.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Consistently ranked as one of the Top Places to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
Meranda Cohn
214-875-8004
MediaHotline@txu.com
View original content with multimedia:http://www.prnewswire.com/news-releases/txu-energy-announces-recipients-of-energy-leadership-awards-300636163.html
SOURCE TXU Energy
IRVING, Texas, April 20, 2018 /PRNewswire/ -- Papa John's and TXU Energy are once again partnering to help beautify Houston communities with the fourth annual #trees4pizza Earth Day promotion. This year will not only mark 60,000 trees delivered in the Houston area, it will also include a special donation of 450 large trees in some of the neighborhoods hit hardest by Hurricane Harvey.
"Trees are a big part of the charm of the Houston area, and so many of them were damaged or destroyed due to the hurricane," said Keith Sullins, president of Houston Pizza Venture, the region's largest Papa John's franchisee. "We know that most of the hurricane recovery efforts are rightly still focused on rebuilding homes and businesses, so we thought this was the perfect opportunity for us to help make these neighborhoods green again for our customers."
The two companies coordinated an online registration and distribution process for customers living in some of the most dramatically affected areas. On Saturday, April 21, with the help of Texas Trees Foundation and Trees for Houston, volunteers will distribute 450 five-gallon mature trees perfectly suited for growing in South Texas. Tree species being distributed include loblolly pine, little gem magnolia, crepe myrtle, and live oak.
In addition, Papa John's and TXU Energy will continue their popular #trees4pizza Earth Day promotion on Sunday, April 22. For the fourth year in a row, they'll deliver tree seedlings with every pizza order in the Houston area in honor of Earth Day, resulting in 60,000 tree seedlings being delivered over the four-year partnership.
"Earth Day has a little more meaning for us here in Houston this year as we're still recovering from the hurricane," said Jason Schultz, TXU Energy's director of business sales for Houston and South Texas. "We're excited to see our #trees4pizza partnership contribute to rebuilding, replanting, and reclaiming the beauty of our beloved communities."
Customers who receive a tree seedling this year – and those who received trees in previous years – are encouraged to use the #trees4pizza hashtag on social media to share pictures of their trees. The loblolly pine seedlings, which thrive in the Texas Bayou Region, come with planting and care instructions, and can be potted for up to two years before being planted.
About Houston Pizza Venture
Houston Pizza Venture Restaurant Group is a locally owned and operated, multi-concept restaurant franchise group. It is the area's largest Papa John's franchisee and also owns and operates Genghis Grill, Firehouse Subs and Surefire Tacos locations.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Consecutively ranked as one of the Top Places to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
Meranda Cohn
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
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SOURCE TXU Energy
IRVING, Texas, April 18, 2018 /PRNewswire/ -- Vistra Energy (NYSE: VST) plans to report its first quarter 2018 financial and operating results on Friday, May 4, 2018. Management will present the results during a webcast beginning at 8 a.m. ET (7 a.m. CT).
The live, listen-only webcast of the conference call can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com under "Events and Presentations." For those unable to participate in the live event, a replay of the call will be available on the Vistra Energy website for one year following the call.
Vistra Energy is also announcing that it will hold an Analyst Day for investors beginning at 9:30 a.m. ET (8:30 a.m. CT) on Tuesday, June 12, 2018. The Analyst Day presentation will be broadcast live via webcast from Vistra Energy's website, and a replay of the presentation will be available for one year following the live event.
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 subsidiaries that include TXU Energy, Dynegy Energy Services, Homefield Services, 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 40,000 megawatts of highly efficient generation capacity, with a diverse portfolio of natural gas, nuclear, coal, and solar facilities.
View original content with multimedia:http://www.prnewswire.com/news-releases/vistra-energy-to-report-first-quarter-2018-results-on-may-4-2018-and-announces-2018-analyst-day-300631761.html
SOURCE Vistra Energy
IRVING, Texas, Feb. 26, 2018 /PRNewswire/ -- Vistra Energy (NYSE: VST):
Summary of Financial Results for the Year Ended December 31, 2017 (in millions):
Operating Revenues |
$ 5,430 |
Net Income (Loss) |
$ (254) |
Adjusted EBITDA1 |
$ 1,455 |
Operating Cash Flow |
$ 1,386 |
Adjusted Free Cash Flow1 |
$ 831 |
2017 Highlights:
Vistra Energy (NYSE: VST), the parent company for TXU Energy and Luminant, today reported financial results for the 12 months ended Dec. 31, 2017. Vistra reported a full year 2017 net loss of $254 million, primarily due to the $451 million write-down of its deferred tax asset balance as a result of tax reform's reduction in the federal corporate tax rate from 35% to 21%, as well as the $206 million charge related to Vistra's decision in 2017 to retire three coal plants. Cash provided by operating activities was $1.386 billion for the same period. Adjusted EBITDA for the full year was $1.455 billion and adjusted free cash flow was $831 million.
Curt Morgan, Vistra Energy's chief executive officer, commented, "Our company delivered excellent results in 2017 in the face of fairly significant headwinds, including mild weather and a two-month unplanned outage at Comanche Peak Unit 2 in the summer of 2017. The fact that we were able to deliver adjusted EBITDA in the top quartile of our narrowed guidance range despite these headwinds speaks volumes about the performance of our business teams. Through disciplined cost management, continued customer satisfaction and retention efforts, and value-added execution from our commercial operations, we concluded the year delivering strong financial results, reducing 2017 support costs and capital expenditures by more than $40 million beyond our $300 million target, realizing wholesale prices 44% over settled prices, and reducing annual residential customer net attrition to 0.4%—our lowest level since 2008. I am proud of our employees for their work ethic and commitment, and I look forward to what we plan to achieve in 2018, starting with closing the anticipated merger with Dynegy and working to achieve or exceed the $350 million of projected synergies and operational improvements."
Segment Results
For the full year, the Retail segment reported operating income of $461 million and adjusted EBITDA of $779 million, within its adjusted EBITDA guidance range of $760–$810 million. Results were driven by strong margin and cost management, coupled with favorable customer attrition and mix, all of which helped to offset abnormally mild weather in the first quarter of 2017.
The Wholesale segment reported an operating loss of $186 million, including the $206 million charge related to the Retired Plants, and adjusted EBITDA of $696 million for 2017, exceeding the high end of its adjusted EBITDA guidance range of $630–$680 million. Results were driven by strong commercial performance and disciplined cost management throughout the year. Full-year performance was partially impacted by the Comanche Peak Unit 2 unplanned outage in the summer of 2017.
Plant Retirements and Early Settlement of Sandow Agreements
In October 2017, Vistra Energy filed notices with the Electric Reliability Council of Texas ("ERCOT") stating its plans to retire its Monticello, Sandow, and Big Brown generation plants. Late in 2017, Vistra received determinations from ERCOT that these retirements would not impact system reliability, and the company has since retired the plants as scheduled on Jan. 4, Jan. 11, and Feb. 12, 2018, respectively.
Also in October, Vistra and Alcoa entered into a contract termination agreement, resulting in an early settlement of certain power and mining agreements related to the Sandow facilities. In consideration for the early termination, Alcoa made a one-time cash payment to Luminant of $237.5 million.
Asset Closure Segment
Beginning in the first quarter of 2018, Vistra Energy will be reporting the financial results of a new segment titled "Asset Closures," which will include the financial results related to the closure and remediation activities of its Retired Plants. Vistra's ongoing wholesale and retail operations will continue to be reported separately. Vistra is introducing the Asset Closure segment in 2018 to more closely align financial reporting with how management and the board of directors will be evaluating Vistra's business operations going forward, as well as to provide investors with a better understanding of the performance and earnings power of Vistra's ongoing operations.
Proposed Merger with Dynegy
On Oct. 30, 2017, Vistra Energy announced the execution of a definitive merger agreement with Dynegy, creating the leading integrated power company across the key competitive power markets in the United States. Vistra estimates the combination could create nearly $4 billion in equity value for the benefit of both companies' shareholders via expected EBITDA, free cash flow, and tax synergies, as well as operational improvements. The proposed company is also expected to benefit from geographic, fuel, market, and earnings diversification, while still maintaining a strong balance sheet and liquidity profile.
Vistra and Dynegy have each scheduled a special meeting of its stockholders on March 2, 2018 to vote on the approval of the merger. Assuming affirmation by both companies' stockholders and the timely receipt of applicable regulatory approvals, Vistra anticipates the merger will close in the second quarter of 2018.
Liquidity
As of Dec. 31, 2017, Vistra Energy had total available liquidity of approximately $2.328 billion, including cash and cash equivalents of $1.487 billion, $7 million in available letter of credit capacity under its term loan C facility, and $834 million of availability under its revolving credit facility, which remained undrawn but had $26 million of letters of credit outstanding as of Dec. 31, 2017. Liquidity increased by approximately $244 million in the fourth quarter of 2017, primarily due to the proceeds received from the Sandow contract settlement.
2018 Guidance
Vistra Energy is not changing its 2018 stand-alone guidance at this time. However, in recent months forward power prices have improved and spark spreads in ERCOT have expanded for 2018 and 2019, as well as in key markets where Dynegy operates. Vistra Energy believes this recent upward movement in the various forward curves could provide an improved outlook for the combined entity in 2018 and 2019.
Vistra plans to provide 2018 guidance for the combined entity following the closing of the merger.
Earnings Conference Call
Vistra Energy will host a conference call today, Feb. 26, 2018, beginning at 11 a.m. EST (10 a.m. CST) to discuss these results and related matters. The live, listen-only webcast of the conference call 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. For those unable to participate in the live event, a replay of the call will be available on the Vistra website for one year following the call.
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) and "adjusted free cash flow" (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures, other net investment activities, preferred stock dividends, and other items described from time to time in Vistra Energy's earnings releases) 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 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. 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 is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 14,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 4,000 MW fueled by coal, and 7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing one of the largest solar facilities in Texas by capacity.
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 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 performances, that could significantly affect the financial results of Vistra Energy or the combined company. All statements, other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "shall," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would," "guidance," and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. 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) the failure to consummate or delay in consummating the proposed merger transaction with Dynegy; (ii) the risk that a condition to closing of the proposed transaction may not be satisfied; (iii) the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained, or is obtained subject to conditions that are not anticipated or that cause the parties to abandon the proposed transaction; (iv) the effect of the announcement of the proposed transaction on Vistra Energy's relationship with its customers and its operating results and businesses generally (including the diversion of management time on transaction-related issues); (v) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy expects; (vi) 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; (vii) the ability of the combined company to execute upon the strategic and performance initiatives contemplated herein (including the risk that Vistra Energy's businesses will not be integrated successfully or that the cost savings, synergies and growth from the proposed transaction will not be fully realized or may take longer to realize than expected); (viii) there may be changes in the trading prices of Vistra Energy's and Dynegy's common stock prior to the closing of the proposed transaction; and (ix) those additional risks and factors discussed in reports filed with the SEC by Vistra Energy from time to time, including (a) the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in Vistra Energy's prospectus filed with the SEC pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as supplemented), and (b) the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in the Dynegy's annual report on Form 10-K for the fiscal year ended December 31, 2017.
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra Energy undertakes no 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.
Additional Information about the Transaction and Where to Find It
This communication relates to the proposed merger pursuant to the terms of the Agreement and Plan of Merger, dated as of October 29, 2017, by and between Vistra Energy and Dynegy. The proposed transaction will be submitted to the respective stockholders of Dynegy and Vistra Energy for their consideration. In connection with the proposed merger, Vistra Energy has filed with the SEC a registration statement on Form S-4 that includes a joint proxy statement of Vistra Energy and Dynegy that also constitutes a prospectus of Vistra Energy (the "joint proxy statement"), which joint proxy statement which has been mailed or otherwise disseminated to Vistra Energy stockholders and Dynegy stockholders. Vistra Energy and Dynegy also plan to file other relevant documents with the SEC regarding the proposed transaction. INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT VISTRA ENERGY, DYNEGY, THE PROPOSED MERGER AND RELATED MATTERS. You may obtain a free copy of the joint proxy statement and other relevant documents (if and when they become available) filed by Vistra Energy and Dynegy with the SEC at the SEC's website at www.sec.gov. Copies of the documents filed by Vistra Energy with the SEC will be available free of charge on Vistra Energy's website at www.vistraenergy.com or by contacting Vistra Energy Investor Relations at 214-812-0046 or at investor@vistraenergy.com. Copies of the documents filed by Dynegy with the SEC will be available free of charge on Dynegy's website at www.dynegy.com or by contacting Dynegy Investor Relations at (713) 507-6466 or at ir@dynegy.com.
Certain Information Regarding Participants in the Solicitation
Vistra Energy and Dynegy and certain of their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. You can find information about Vistra Energy's directors and executive officers in Vistra Energy's prospectus filed with the SEC pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as supplemented), and on its website at www.vistraenergy.com. You can find information about Dynegy's directors and executive officers in its proxy statement for its 2017 annual meeting of stockholders, which was filed with the SEC on March 30, 2017, and on its website at www.dynegy.com. Additional information regarding the interests of such potential participants will be included in the joint proxy statement and other relevant documents filed with the SEC if and when they become available. You may obtain free copies of these documents from Vistra Energy or Dynegy using the sources indicated above.
No Offer of Solicitation
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
VISTRA ENERGY CORP. CONDENSED STATEMENT OF CONSOLIDATED INCOME YEAR ENDED DECEMBER 31, 2017 (Millions of Dollars, Except Earnings Per Share) | |||
Operating revenues |
$ |
5,430 |
|
Fuel, purchased power costs and delivery fees |
(2,935) |
||
Operating costs |
(973) |
||
Depreciation and amortization |
(699) |
||
Selling, general and administrative expenses |
(600) |
||
Impairment of long-lived assets |
(25) |
||
Operating income |
198 |
||
Other income |
37 |
||
Other deductions |
(5) |
||
Interest expense and related charges |
(193) |
||
Impacts of Tax Receivable Agreement |
213 |
||
Income before income taxes |
250 |
||
Income tax expense |
(504) |
||
Net income |
$ |
(254) |
|
Weighted average shares of common stock outstanding: |
|||
Basic |
427,761,460 |
||
Diluted |
427,761,460 |
||
Net income per weighted average share of common stock outstanding: |
|||
Basic |
$ |
(0.59) |
|
Diluted |
$ |
(0.59) |
VISTRA ENERGY CORP. STATEMENT OF CONSOLIDATED CASH FLOWS YEAR ENDED DECEMBER 31, 2017 (Millions of Dollars) | ||||
Cash flows — operating activities: |
||||
Net loss |
$ |
(254) |
||
Adjustments to reconcile net loss to cash provided by (used in) operating activities: |
||||
Depreciation and amortization |
835 |
|||
Deferred income tax expense, net |
418 |
|||
Unrealized net loss from mark-to-market valuations of derivatives |
116 |
|||
Impairment of long-lived assets |
25 |
|||
Impacts of Tax Receivable Agreement |
(213) |
|||
Increase in asset retirement obligation liability |
112 |
|||
Accretion expense |
60 |
|||
Other, net |
69 |
|||
Changes in operating assets and liabilities: |
||||
Accounts receivable — trade |
7 |
|||
Inventories |
22 |
|||
Accounts payable — trade |
(30) |
|||
Commodity and other derivative contractual assets and liabilities |
(1) |
|||
Margin deposits, net |
146 |
|||
Accrued interest |
(10) |
|||
Alcoa contract settlement |
238 |
|||
Tax Receivable Agreement payment |
(26) |
|||
Major plant outage deferral |
(66) |
|||
Other — net assets |
4 |
|||
Other — net liabilities |
(66) |
|||
Cash provided by operating activities |
1,386 |
|||
Cash flows — financing activities: |
||||
Repayments/repurchases of debt |
(191) |
|||
Other, net |
(10) |
|||
Cash used in financing activities |
(201) |
|||
Cash flows — investing activities: |
||||
Capital expenditures |
(114) |
|||
Nuclear fuel purchases |
(62) |
|||
Solar development expenditures |
(190) |
|||
Odessa acquisition |
(355) |
|||
Changes in restricted cash |
186 |
|||
Proceeds from sales of nuclear decommissioning trust fund securities |
252 |
|||
Investments in nuclear decommissioning trust fund securities |
(272) |
|||
Other, net |
14 |
|||
Cash used in investing activities |
(541) |
|||
Net change in cash and cash equivalents |
644 |
|||
Cash and cash equivalents — beginning balance |
843 |
|||
Cash and cash equivalents — ending balance |
$ |
1,487 |
VISTRA ENERGY CORP. REG G RECONCILIATIONS - ADJUSTED EBITDA Year Ended DECEMBER 31, 2017 (Unaudited) (Millions of Dollars)
| |||||||||||||||
Wholesale Generation |
Retail Electricity |
Eliminations / Corp and Other |
Vistra Energy Consolidated | ||||||||||||
Net income (loss) |
$ |
(181) |
$ |
495 |
$ |
(568) |
$ |
(254) |
|||||||
Income tax expense (benefit) |
— |
— |
504 |
504 |
|||||||||||
Interest expense and related charges |
21 |
— |
172 |
193 |
|||||||||||
Depreciation and amortization (a) |
312 |
430 |
39 |
781 |
|||||||||||
EBITDA before adjustments |
$ |
152 |
$ |
925 |
$ |
147 |
$ |
1,224 |
|||||||
Unrealized net (gain) loss resulting from hedging transactions |
317 |
(171) |
— |
146 |
|||||||||||
Generation plant retirement expense |
206 |
— |
— |
206 |
|||||||||||
Fresh start accounting impacts |
13 |
46 |
— |
59 |
|||||||||||
Impacts of Tax Receivable Agreement |
— |
— |
(213) |
(213) |
|||||||||||
Reorganization items and restructuring expenses |
— |
— |
3 |
3 |
|||||||||||
Non-cash compensation expenses |
— |
— |
19 |
19 |
|||||||||||
Transition and merger expenses |
8 |
1 |
18 |
27 |
|||||||||||
Other, net |
— |
(22) |
6 |
(16) |
|||||||||||
Adjusted EBITDA |
$ |
696 |
$ |
779 |
$ |
(20) |
$ |
1,455 |
|||||||
____________ | |||||||||||||||
(a) Includes nuclear fuel amortization of $82 million. |
VISTRA ENERGY CORP. REG G RECONCILIATIONS – ADJUSTED FREE CASH FLOW YEAR ENDED DECEMBER 31, 2017 (Unaudited) (Millions of Dollars) | |||
Adjusted EBITDA |
$ |
1,455 |
|
Interest paid, net (a) |
(222) |
||
Taxes paid |
(64) |
||
Payments funded from restructuring escrow accounts |
(32) |
||
Alcoa contract early termination settlement (b) |
227 |
||
Working capital and margin deposits |
172 |
||
Merger expenditures |
(5) |
||
Reclamation and remediation |
(36) |
||
Changes in other operating assets and liabilities |
(109) |
||
Cash provided by operating activities |
$ |
1,386 |
|
Capital expenditures |
(114) |
||
Nuclear fuel purchases |
(62) |
||
Solar development expenditures |
(190) |
||
Odessa acquisition |
(355) |
||
Other net investing activities (c) |
(6) |
||
Free cash flow |
$ |
659 |
|
Working capital and margin deposits |
(172) |
||
Solar development expenditures |
190 |
||
Odessa acquisition |
355 |
||
Payments funded from restructuring escrow accounts |
32 |
||
Alcoa contract early termination settlement |
(238) |
||
Merger expenditures |
5 |
||
Adjusted free cash flow |
$ |
831 |
|
____________ | |||
(a) Net of interest received. Excludes fees paid on Vistra Operations Credit Facility repricing in February 2017, August 2017 and December 2017. | |||
(b) Less $11 million gain recognized related to the settlement reflected in Adjusted EBITDA. | |||
(c) Includes investments in and proceeds from the nuclear decommissioning trust fund and other net investing cash flows, but excludes changes in restricted cash. |
1 Adjusted EBITDA and adjusted free cash flow are non-GAAP financial measures. See the "Reg G Reconciliations" tables for further details.
View original content:http://www.prnewswire.com/news-releases/vistra-energy-reports-2017-results-above-midpoint-of-guidance-300603753.html
SOURCE Vistra Energy
IRVING, Texas, Nov. 8, 2017 /PRNewswire/ -- When Hurricane Harvey ravaged South Texas, one of TXU Energy's important community partners, BakerRipley, immediately jumped into action. With a few hours' notice from local officials, the dedicated team at BakerRipley had a shelter up and running, providing food, clothing, and a safe place to sleep for those displaced by the storm.
Whether the hardship is brought on by Mother Nature or just everyday life, the caring people at BakerRipley are there to serve those in the Houston community who need it most.
"TXU Energy could not be prouder to be a longtime partner of BakerRipley," said Kim Campbell, senior manager of customer advocacy services for TXU Energy. "They are there throughout the year to lend our customers a little extra help when they can't make ends meet by providing them our TXU Energy Aid bill-payment assistance."
For the 13th year in a row, the retail electric company is sponsoring the TXU Energy BakerRipley Turkey Trot in Houston, the largest public event of the year for the community agency.
"As we head into the holiday season, the Houston community has much to be thankful for," said Campbell. "The TXU Energy BakerRipley Turkey Trot is not only a fun way to kick off Thanksgiving Day with your loved ones, it's an easy way to support the vital work of BakerRipley. When you sign up to participate, you are helping BakerRipley serve more than half a million people in the Houston area."
There is still time to register for the 25th Annual TXU Energy BakerRipley Turkey Trot. More information and online registration for this Thanksgiving Day tradition can be found at houstonturkeytrot.org.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Ranked as the No. 9 Top Place to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
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SOURCE TXU Energy
IRVING, Texas, Nov. 3, 2017 /PRNewswire/ -- Vistra Energy (NYSE: VST), the parent company for TXU Energy and Luminant, today reported third quarter 2017 net income of $273 million. Net income for the first three quarters of 2017 was $325 million and cash provided by operating activities for the same period was $845 million.
Adjusted EBITDA for the third quarter 2017 was $522 million. For the first three quarters of 2017, Vistra Energy's adjusted EBITDA was $1,143 million and adjusted free cash flow was $625 million.
Curt Morgan, Vistra Energy's chief executive officer, remarked, "Vistra Energy's third quarter results were strong, despite disappointing summer weather and the unplanned outage at Comanche Peak Unit 2 that lasted through early August. Our results this quarter, in the face of these headwinds, once again reinforce the strength of our integrated operations and our commercial capabilities."
Morgan continued, "In 2017 we have put considerable focus on optimizing the value of our wholesale operations in order to successfully compete in this challenging, low wholesale power price environment. Our operations performance initiative has been successful, identifying approximately $50 million in annual run-rate EBITDA enhancement opportunities on a full-year basis. Despite this great result, certain of our coal assets no longer support continued investment in this existing oversupplied generation market, which includes the proliferation of subsidized renewables, that when combined with low natural gas prices has created a period of historically low wholesale power prices. As a result, earlier this month we announced the difficult decision to retire three of our coal plants. We thank our employees at these sites, who have reliably powered Texas for decades, for their dedicated service."
Narrowing 2017 Guidance and Initiating 2018 Guidance
Vistra Energy is narrowing its 2017 adjusted EBITDA and adjusted free cash flow guidance ranges, and the company is also initiating guidance for 2018, each as set forth below:
($ in millions) |
2017 Prior Guidance |
2017 Narrowed Guidance |
2018 Guidance |
Adjusted EBITDA |
$1,350 – 1,500 |
$1,375 – 1,475 |
$1,300 – 1,450 |
Adjusted Free Cash Flow |
$745 – 925 |
$770 – 900 |
$600 – 750 |
Vistra Energy's 2018 guidance ranges reflect expectations of continued strong performance from the retail operations, hedge positions as of Oct. 20, 2017, and the impact of forward price curves on the wholesale operation's open position as of the same date. Had Vistra Energy been unhedged as of Oct. 20, 2017, Vistra Energy's adjusted EBITDA guidance range would have moved up by approximately $75 million and its adjusted free cash flow guidance range would have moved up by a similar amount. The 2018 guidance also assumes full-year contributions from the Odessa plant and the operations performance initiative, one planned nuclear refueling outage at Comanche Peak, and assumes each of Monticello, Sandow, and Big Brown are retired in early 2018.
Liquidity
As of Sept. 30, 2017, Vistra Energy had total available liquidity of approximately $2.084 billion, including cash and cash equivalents of $1.054 billion, $170 million in available letter of credit capacity under its term loan C facility, and $860 million of availability under its revolving credit facility, which remained undrawn at September 30, 2017. Liquidity increased by approximately $63 million in the third quarter of 2017 primarily due to increased available cash from operations.
Announced Plant Retirements
In October, Vistra Energy filed notices with the Electric Reliability Council of Texas ("ERCOT") stating its plans to retire its Monticello, Sandow, and Big Brown generation plants. The decision to retire these units came after an extensive year-long review that determined these plants are economically challenged in the competitive ERCOT environment. The retirement of these facilities will reduce Vistra's generation capacity by approximately 4,200 MW from its approximately 17,800 MW of current capacity. Monticello (1,880 MW) will be taken offline in January 2018. Assuming ERCOT does not determine the plant is needed for system reliability, Sandow (1,137 MW) will also be taken offline in January 2018. Big Brown (1,150 MW) will be taken offline in February 2018 unless either ERCOT determines the plant is needed for system reliability or the ongoing sales process is successful.
Also in October, Vistra Energy and Alcoa entered into a contract termination agreement, resulting in an early settlement of certain power and mining agreements. In consideration for the early termination, Alcoa made a one-time payment to Luminant of $237.5 million. The contracts helped shield Sandow from significant exposure to the downturn in the wholesale power market; however, the standalone economics of the Sandow complex did not support continued investment in the site.
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) and "adjusted free cash flow" (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures, other net investment activities, preferred stock dividends, and other items described from time to time in Vistra Energy's earnings releases), 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 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. 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 is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 18,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing one of the largest solar facilities in Texas by capacity.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. All statements, other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "shall," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would," "guidance" and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. 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 the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in our prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as supplemented).
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra Energy undertakes no 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 (Unaudited) (Millions of Dollars, Except Earnings Per Share) | |||||||
Three Months |
Nine Months | ||||||
Operating revenues |
$ |
1,833 |
$ |
4,487 |
|||
Fuel, purchased power costs and delivery fees |
(838) |
(2,250) |
|||||
Operating costs |
(218) |
(626) |
|||||
Depreciation and amortization |
(178) |
(519) |
|||||
Selling, general and administrative expenses |
(147) |
(434) |
|||||
Operating income |
452 |
658 |
|||||
Other income |
10 |
29 |
|||||
Other deductions |
— |
(5) |
|||||
Interest expense and related charges |
(76) |
(169) |
|||||
Impacts of Tax Receivable Agreement |
138 |
96 |
|||||
Income before income taxes |
524 |
609 |
|||||
Income tax expense |
(251) |
(284) |
|||||
Net income |
$ |
273 |
$ |
325 |
|||
Weighted average shares of common stock outstanding: |
|||||||
Basic |
427,591,426 |
427,587,404 |
|||||
Diluted |
428,312,438 |
428,001,869 |
|||||
Net income per weighted average share of common stock outstanding: |
|||||||
Basic |
$ |
0.64 |
$ |
0.76 |
|||
Diluted |
$ |
0.64 |
$ |
0.76 |
VISTRA ENERGY CORP. CONDENSED STATEMENT OF CONSOLIDATED CASH FLOWS (Unaudited) (Millions of Dollars) | |||
Nine Months | |||
Cash flows — operating activities: |
|||
Net income |
$ |
325 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|||
Depreciation and amortization |
621 |
||
Deferred income tax expense, net |
209 |
||
Unrealized net gain from mark-to-market valuations of derivatives |
(199) |
||
Impacts of Tax Receivable Agreement |
(96) |
||
Stock-based compensation |
13 |
||
Other, net |
84 |
||
Changes in operating assets and liabilities: |
|||
Margin deposits, net |
183 |
||
Accrued taxes |
4 |
||
Accrued incentive plan |
(46) |
||
Accrued interest |
(26) |
||
Other operating assets and liabilities |
(227) |
||
Cash provided by operating activities |
845 |
||
Cash flows — financing activities: |
|||
Repayments/repurchases of debt |
(32) |
||
Other, net |
(5) |
||
Cash used in financing activities |
(37) |
||
Cash flows — investing activities: |
|||
Capital expenditures |
(86) |
||
Nuclear fuel purchases |
(56) |
||
Odessa acquisition |
(355) |
||
Solar development expenditures |
(129) |
||
Changes in restricted cash |
34 |
||
Proceeds from sales of nuclear decommissioning trust fund securities |
154 |
||
Investments in nuclear decommissioning trust fund securities |
(169) |
||
Other, net |
10 |
||
Cash used in investing activities |
(597) |
||
Net change in cash and cash equivalents |
211 |
||
Cash and cash equivalents — beginning balance |
843 |
||
Cash and cash equivalents — ending balance |
$ |
1,054 |
VISTRA ENERGY CORP. ADJUSTED EBITDA RECONCILIATION (Unaudited) (Millions of Dollars) | |||||||||||||||
Successor | |||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||
Wholesale |
Retail |
Eliminations / Corp and Other |
Vistra Energy | ||||||||||||
Net income |
$ |
469 |
$ |
7 |
$ |
(203) |
$ |
273 |
|||||||
Income tax expense |
— |
— |
251 |
251 |
|||||||||||
Interest expense and related charges |
9 |
— |
67 |
76 |
|||||||||||
Depreciation and amortization (a) |
78 |
108 |
10 |
196 |
|||||||||||
EBITDA before adjustments |
$ |
556 |
$ |
115 |
$ |
125 |
$ |
796 |
|||||||
Unrealized net (gain) loss resulting from hedging transactions |
(235) |
87 |
— |
(148) |
|||||||||||
Generation plant retirement expense |
24 |
— |
— |
24 |
|||||||||||
Fresh start accounting impacts |
4 |
(19) |
— |
(15) |
|||||||||||
Impacts of Tax Receivable Agreement |
— |
— |
(138) |
(138) |
|||||||||||
Reorganization items and restructuring expenses |
— |
— |
2 |
2 |
|||||||||||
Other, net |
— |
(7) |
8 |
1 |
|||||||||||
Adjusted EBITDA |
$ |
349 |
$ |
176 |
$ |
(3) |
$ |
522 |
____________ | |
(a) |
Includes nuclear fuel amortization of $18 million for the three months ended September 30, 2017. |
VISTRA ENERGY CORP. ADJUSTED EBITDA RECONCILIATION (Unaudited) (Millions of Dollars) | |||||||||||||||
Successor | |||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||
Wholesale |
Retail |
Eliminations / |
Vistra Energy | ||||||||||||
Net income |
$ |
653 |
$ |
77 |
$ |
(405) |
$ |
325 |
|||||||
Income tax expense |
— |
— |
284 |
284 |
|||||||||||
Interest expense and related charges |
14 |
— |
155 |
169 |
|||||||||||
Depreciation and amortization (a) |
233 |
322 |
29 |
584 |
|||||||||||
EBITDA before adjustments |
$ |
900 |
$ |
399 |
$ |
63 |
$ |
1,362 |
|||||||
Unrealized net (gain) loss resulting from hedging transactions |
(362) |
160 |
— |
(202) |
|||||||||||
Generation plant retirement expense |
24 |
— |
— |
24 |
|||||||||||
Fresh start accounting impacts |
11 |
24 |
— |
35 |
|||||||||||
Impacts of Tax Receivable Agreement |
— |
— |
(96) |
(96) |
|||||||||||
Reorganization items and restructuring expenses |
1 |
2 |
12 |
15 |
|||||||||||
Other, net |
6 |
(13) |
12 |
5 |
|||||||||||
Adjusted EBITDA |
$ |
580 |
$ |
572 |
$ |
(9) |
$ |
1,143 |
___________ | |
(a) |
Includes nuclear fuel amortization of $65 million for the nine months ended September 30, 2017. |
VISTRA ENERGY CORP. ADJUSTED FREE CASH FLOW RECONCILIATION (Unaudited) (Millions of Dollars) | |||
Successor | |||
Nine Months Ended September 30, 2017 | |||
Adjusted EBITDA |
$ |
1,143 |
|
Interest paid, net (a) |
(182) |
||
Taxes paid |
(51) |
||
Payments funded from restructuring escrow accounts |
(29) |
||
Other changes in operating assets and liabilities |
(115) |
||
Working capital and margin deposits |
102 |
||
Reclamation and remediation |
(23) |
||
Cash provided by operating activities |
$ |
845 |
|
Capital expenditures |
(86) |
||
Nuclear fuel purchases |
(56) |
||
Solar development expenditures |
(129) |
||
Odessa acquisition |
(355) |
||
Other net investing activities (b) |
(5) |
||
Free cash flow |
$ |
214 |
|
Working capital and margin deposits |
(102) |
||
Solar development expenditures |
129 |
||
Odessa acquisition |
355 |
||
Payments funded from restructuring escrow accounts |
29 |
||
Adjusted free cash flow |
$ |
625 |
___________ | |
(a) |
Net of interest received. Excludes fees paid on Vistra Operations Credit Facility repricing in February 2017 and August 2017. |
(b) |
Includes investments in and proceeds from the nuclear decommissioning trust fund and other net investing cash flows, but excludes changes in restricted cash. |
VISTRA ENERGY CORP. ADJUSTED EBITDA GUIDANCE RECONCILIATION (Unaudited) (Millions of Dollars) | |||||||||||||||
Year Ended December 31, 2017 |
Year Ended December 31, 2018 | ||||||||||||||
Low |
High |
Low |
High | ||||||||||||
Net Income |
$ |
393 |
$ |
458 |
$ |
150 |
$ |
248 |
|||||||
Income tax expense |
161 |
196 |
127 |
179 |
|||||||||||
Interest expense and related charges |
202 |
202 |
176 |
176 |
|||||||||||
Depreciation and amortization |
761 |
761 |
660 |
660 |
|||||||||||
EBITDA before adjustments |
$ |
1,517 |
$ |
1,617 |
$ |
1,113 |
$ |
1,263 |
|||||||
Unrealized net (gain) loss resulting from hedging transactions |
(134) |
(134) |
44 |
44 |
|||||||||||
Generation plant retirement expenses |
24 |
24 |
24 |
24 |
|||||||||||
Fresh start accounting impacts |
59 |
59 |
36 |
36 |
|||||||||||
Reorganization and restructuring expenses |
11 |
11 |
3 |
3 |
|||||||||||
Other, net |
(102) |
(102) |
80 |
80 |
|||||||||||
Adjusted EBITDA |
$ |
1,375 |
$ |
1,475 |
$ |
1,300 |
$ |
1,450 |
VISTRA ENERGY CORP. ADJUSTED FREE CASH FLOW GUIDANCE RECONCILIATION (Unaudited) (Millions of Dollars) | |||||||||||||||
Year Ended December 31, 2017 |
Year Ended December 31, 2018 | ||||||||||||||
Low |
High |
Low |
High | ||||||||||||
Adjusted EBITDA |
$ |
1,375 |
$ |
1,475 |
$ |
1,300 |
$ |
1,450 |
|||||||
Interest payments |
(219) |
(219) |
(203) |
(203) |
|||||||||||
Tax payments |
(106) |
(141) |
(22) |
(22) |
|||||||||||
Tax receivable agreement payments |
(25) |
(25) |
— |
— |
|||||||||||
Working capital and margin deposits |
350 |
350 |
50 |
50 |
|||||||||||
Payments funded from restructuring escrow accounts |
(90) |
(90) |
— |
— |
|||||||||||
Alcoa settlement |
238 |
238 |
— |
— |
|||||||||||
Reclamation and remediation |
(41) |
(41) |
(121) |
(121) |
|||||||||||
Other changes in operating assets and liabilities
|
(100) |
(35) |
5 |
5 |
|||||||||||
Cash provided by operating activities |
$ |
1,382 |
$ |
1,512 |
$ |
1,009 |
$ |
1,159 |
|||||||
Capital expenditures including nuclear fuel |
(213) |
(213) |
(363) |
(363) |
|||||||||||
Solar development expenditures |
(204) |
(204) |
(29) |
(29) |
|||||||||||
Odessa acquisition |
(355) |
(355) |
— |
— |
|||||||||||
Other net investing activities |
(5) |
(5) |
(20) |
(20) |
|||||||||||
Free cash flow |
$ |
605 |
$ |
735 |
$ |
597 |
$ |
747 |
|||||||
Working capital and margin deposits |
(350) |
(350) |
(50) |
(50) |
|||||||||||
Solar development expenditures |
204 |
204 |
29 |
29 |
|||||||||||
Odessa acquisition |
355 |
355 |
— |
— |
|||||||||||
Alcoa settlement, net of related taxes |
(154) |
(154) |
— |
— |
|||||||||||
Generation plant retirement expenses |
11 |
11 |
24 |
24 |
|||||||||||
Restructuring related payments |
9 |
9 |
— |
— |
|||||||||||
Payments funded from restructuring escrow accounts |
90 |
90 |
— |
— |
|||||||||||
Adjusted free cash flow |
$ |
770 |
$ |
900 |
$ |
600 |
$ |
750 |
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SOURCE Vistra Energy
IRVING, Texas, Nov. 2, 2017 /PRNewswire/ -- TXU Energy, the leader in innovation among retail electric providers in Texas, announces two new ways customers can personalize their Amazon Alexa experience. The company has launched two separate Alexa skills – one for account information, and another to control the TXU iThermostat.
"Our innovation begins with our customers," said Scott Hudson, president of TXU Energy. "We strive to provide convenient, helpful, and meaningful opportunities for customers to engage with us, whether it's with a customer service agent on the phone, through our website, on our smartphone app, or, now, with an Alexa-enabled device."
Customers will find it easier than ever to manage their TXU Energy account by enabling the TXU Energy skill. They can get their account balance, make a payment, and more. Alexa can even provide the 24/7 phone number to TXU Energy's friendly customer service team.
The TXU iThermostat skill can help to make customers' homes smarter and change their iThermostat's settings anytime, from anywhere. After enabling the skill, customers can ask Alexa to adjust their TXU iThermostat without having to get off the couch or out of bed.
"This is just the latest example of TXU Energy's focus on its customers," said Hudson. "We listen to what they need and create products and services designed to fit their lifestyle and energy use."
The two Alexa skills are the latest in a series of innovative product announcements from the company. From products that give customers 24/7 access to their account like TXU Energy MyAccount and the smartphone app to those that help you adjust your temperature and energy usage like the iThermostat app, TXU Energy is focused on bringing that innovation to its customers.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Ranked as the No. 9 Top Place to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
Meranda Cohn
214-875-8004
MediaHotline@txu.com
www.twitter.com/txuenergy
www.youtube.com/txuenergy
www.facebook.com/txuenergy
View original content with multimedia:http://www.prnewswire.com/news-releases/txu-energy-enables-customers-to-adjust-smart-thermostat-or-pay-bill-with-two-new-amazon-alexa-skills-300548059.html
SOURCE TXU Energy
NEW ORLEANS, Oct. 31, 2017 /PRNewswire/ -- Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are investigating the proposed sale of Dynegy Inc. ("Dynegy" or the "Company") (NYSE: DYN) to Vistra Energy (NYSE: VST). Under the terms of the proposed transaction, shareholders of Dynegy will receive only 0.652 shares of Vistra for each share of Dynegy that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn (lewis.kahn@ksfcounsel.com) toll free at any time at 855-768-1857.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC
206 Covington St.
Madisonville, LA 70447
View original content with multimedia:http://www.prnewswire.com/news-releases/dynegy-investor-alert-by-the-former-attorney-general-of-louisiana-kahn-swick--foti-llc-investigates-adequacy-of-price-and-process-in-proposed-sale-of-dynegy-inc-300546848.html
SOURCE Kahn Swick & Foti, LLC
IRVING, Texas, Oct. 31, 2017 /PRNewswire/ -- Following Vistra Energy's Oct. 30, 2017 announcement of its signed merger agreement with Dynegy Inc., the management of Vistra Energy will spend the next week traveling to discuss the merger's benefits with shareholders and the investment community. While Vistra Energy's third quarter 2017 results and related SEC filings will be released as scheduled on Friday, Nov. 3, 2017, management will not be available to host a third quarter 2017 webcast discussing these results. Supplemental materials related to Vistra Energy's third quarter earnings will be available via the investor relations section of Vistra Energy's website at www.vistraenergy.com.
Media
Allan Koenig
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 18,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing one of the largest solar facilities in Texas by capacity.
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 and Dynegy operate and beliefs of and assumptions made by Vistra Energy's management and Dynegy's management, involve risks and uncertainties, which are difficult to predict and are not guarantees of future performances, that could significantly affect the financial results of Vistra Energy or Dynegy or the combined company. All statements, other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "shall," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would," "guidance," and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra Energy and Dynegy believe that in making any such forward-looking statement, Vistra Energy's and Dynegy'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) the failure to consummate or delay in consummating the proposed transaction; (ii) the risk that a condition to closing of the proposed transaction may not be satisfied; (iii) the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained, or is obtained subject to conditions that are not anticipated or that cause the parties to abandon the proposed transaction; (iv) the effect of the announcement of the proposed transaction on Vistra Energy's and Dynegy's relationships with their respective customers and their operating results and businesses generally (including the diversion of management time on transaction-related issues); (v) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy and Dynegy expect; (vi) 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; (vii) the ability of the combined company to execute upon the strategic and performance initiatives contemplated herein (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 proposed transaction will not be fully realized or may take longer to realize than expected); (viii) there may be changes in the trading prices of Vistra Energy's and Dynegy's common stock prior to the closing of the proposed transaction; and (ix) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission ("SEC") by Vistra Energy and Dynegy from time to time, including (a) the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in the Vistra Energy's prospectus filed with the SEC pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as supplemented), and (b) the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in the Dynegy's annual report on Form 10-K for the fiscal year ended December 31, 2016.
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, neither Vistra Energy nor Dynegy 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 or Dynegy 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.
Additional Information About the Transaction and Where to Find It
This communication relates to the proposed merger pursuant to the terms of the Agreement and Plan of Merger, dated as of October 29, 2017, by and between Vistra Energy and Dynegy. The proposed transaction will be submitted to the respective stockholders of Dynegy and Vistra Energy for their consideration. In connection with the proposed merger, Vistra Energy expects to file with the SEC a registration statement on Form S-4 that will include a joint proxy statement of Vistra Energy and Dynegy that also constitutes a prospectus of Vistra Energy (the "joint proxy statement"), which joint proxy statement will be mailed or otherwise disseminated to Vistra Energy stockholders and Dynegy stockholders when it becomes available. Vistra Energy and Dynegy also plan to file other relevant documents with the SEC regarding the proposed transaction. INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT VISTRA ENERGY, DYNEGY, THE PROPOSED MERGER AND RELATED MATTERS. You may obtain a free copy of the joint proxy statement and other relevant documents (if and when they become available) filed by Vistra Energy and Dynegy with the SEC at the SEC's website at www.sec.gov. Copies of the documents filed by Vistra Energy with the SEC will be available free of charge on Vistra Energy's website at www.vistraenergy.com or by contacting Vistra Energy Investor Relations at 214-812-0046 or at investor@vistraenergy.com. Copies of the documents filed by Dynegy with the SEC will be available free of charge on Dynegy's website at www.dynegy.com or by contacting Dynegy Investor Relations at (713) 507-6466 or at ir@dynegy.com.
Certain Information Regarding Participants in the Solicitation
Vistra Energy and Dynegy and certain of their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. You can find information about Vistra Energy's directors and executive officers in Vistra Energy's prospectus filed with the SEC pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as supplemented), and on its website at www.vistraenergy.com. You can find information about Dynegy's directors and executive officers in its proxy statement for its 2017 annual meeting of stockholders, which was filed with the SEC on March 30, 2017, and on its website at www.dynegy.com. Additional information regarding the interests of such potential participants will be included in the joint proxy statement and other relevant documents filed with the SEC if and when they become available. You may obtain free copies of these documents from Vistra Energy or Dynegy using the sources indicated above.
No Offer or Solicitation
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
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SOURCE Vistra Energy
IRVING, Texas and HOUSTON, Oct. 30, 2017 /PRNewswire/ -- Vistra Energy (NYSE: VST), the parent company for TXU Energy and Luminant, and Dynegy Inc. (NYSE: DYN) today announced that their Boards of Directors have approved, and the companies have executed, a definitive merger agreement pursuant to which Dynegy will merge with and into Vistra Energy in a tax-free, all-stock transaction, creating the leading integrated power company across the key competitive power markets in the United States. The resulting company is projected to have a combined market capitalization in excess of $10 billion and a combined enterprise value greater than $20 billion.
Under the terms of the agreement, Dynegy shareholders will receive 0.652 shares of Vistra Energy common stock for each share of Dynegy common stock they own, resulting in Vistra Energy and Dynegy shareholders owning approximately 79 percent and 21 percent, respectively, of the combined company. Based on Vistra Energy's closing share price of $20.30 on October 27, 2017 and the aforementioned exchange ratio, Dynegy shareholders would receive $13.24 per Dynegy share. Through the all-stock transaction, both Vistra Energy and Dynegy shareholders are expected to benefit from an estimated $350 million in projected annual run-rate EBITDA value levers, additional annual free cash flow value levers of approximately $65 million (after tax), and approximately $500-600 million in projected net present value benefit from tax synergies.
The combination of Dynegy's generation capacity and existing retail footprint with Vistra Energy's integrated ERCOT model is expected to create the lowest-cost integrated power company in the industry and to position the combined company as the leading integrated retail and generation platform throughout key competitive power markets in the U.S. Together with Dynegy, Vistra Energy will serve approximately 240,000 commercial and industrial (C&I) customers and 2.7 million residential customers in five top retail states, with estimated retail sales of 75 terawatt (TWh) hours in 2018. The combined company will also own approximately 40 GW of installed generation capacity. Of that capacity, more than 60 percent is natural gas-fueled, and 84 percent is in the ERCOT, PJM, and ISO-NE competitive power markets.
Vistra Energy President and Chief Executive Officer Curt Morgan said, "This combination represents a transformative opportunity to create the leading integrated power company in the United States. Combining Vistra Energy's leading retail and commercial operations with Dynegy's leading CCGT fleet and geographically diverse portfolio is expected to create a company with significant earnings diversification and scale. The resulting combined enterprise is projected to have the lowest-cost structure in the industry and will benefit from weather and market diversification that, when combined with Vistra Energy's balance sheet strength, will provide a platform for future growth. The result will be a leading integrated power company with significant scale in the key U.S. competitive markets. We look forward to building on Vistra Energy and Dynegy's highly attractive business mix and asset quality to deliver enhanced value to current shareholders of both companies and attract and retain new investors on a long-term, sustainable basis."
Dynegy President and Chief Executive Officer Bob Flexon stated, "Our combination with Vistra Energy accelerates Dynegy's strategic initiatives of strengthening our balance sheet while creating the preeminent integrated power company. Vistra Energy's strength in retail combined with Dynegy's infrastructure and generation capabilities will provide an unmatched, highly efficient integrated business in key competitive markets. The premium offered to Dynegy shareholders reflects the quality of our generation assets and the retail business we have built over the past five years. In addition, with the all-stock transaction, shareholders of both companies will benefit from the significant projected synergies and financial flexibility enabled by the combined company's strong balance sheet and cash flow profile. We at Dynegy are proud of what we have accomplished, and we look forward to this exciting next step in the company's evolution."
Projected Strategic and Financial Benefits of the Combination
Management, Board of Directors and Headquarters
Following the close of the transaction, the combined company will be led by Curt Morgan as President and Chief Executive Officer. Bill Holden will serve as the Chief Financial Officer with Jim Burke as the Chief Operating Officer.
The Board of Directors is expected to have a total of 11 directors consisting of the current eight members of the Vistra Energy Board and three members from Dynegy's Board.
The Dynegy Board of Directors and Mr. Flexon have mutually agreed to extend his employment as permitted under the terms of his existing employment agreement for one year. Mr. Flexon will continue to serve as President and Chief Executive Officer of Dynegy through April 30, 2019 or the date the transaction closes, whichever comes first.
The combined company's headquarters will be in Irving, Texas. In addition, the combined entity has retail offices in Houston, Texas, Cincinnati, Ohio, and Collinsville, Illinois.
Conditions and Timing
The companies anticipate closing the transaction in the second quarter of 2018.
The transaction is subject to certain regulatory approvals, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and approval by the Federal Energy Regulatory Commission, the Federal Communications Commission, the Public Utility Commission of Texas, the New York Public Service Commission, and other customary closing conditions. The transaction is subject to approval by the shareholders of Vistra Energy and Dynegy. In addition, the transaction will not require any refinancing of Vistra Energy's or Dynegy's debt, but preserves flexibility for opportunistic refinancing at, or after, closing.
Advisors
Citi is serving as financial advisor, Credit Suisse is serving as capital markets advisor, and Simpson Thacher & Bartlett LLP is serving as legal advisor to Vistra Energy.
PJT Partners and Morgan Stanley are serving as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Dynegy.
Conference Call/Webcast
Vistra Energy and Dynegy will host a joint conference call to discuss the merger today at 8:30 am ET (7:30 am CT). The call will be webcast live at www.vistraenergy.com and www.dynegy.com. Alternatively, callers may dial (844) 579-6824 within the United States or (763) 488-9145 from outside the U.S. utilizing the Conference ID 3685219. It is recommended that participants call 20 minutes ahead of the scheduled start time.
Shortly before the conference call begins, slides will be posted under the investor relations sections of each company's website that will be referred to during the call.
A webcast replay and transcript of the call will be available approximately 24 hours following the call at www.vistraenergy.com and www.dynegy.com.
ABOUT DYNEGY
Throughout the Northeast, Mid-Atlantic, Midwest, and Texas, Dynegy operates 27,000 megawatts (MW) of power generating facilities capable of producing enough energy to supply more than 22 million American homes. With 17,000 MW fueled by natural gas and more than 9,000 MW fueled by coal, our plants can generate enough electricity to power more than 17 million homes. We generate power safely and responsibly for 1.2 million electricity customers who depend on that energy to grow and thrive.
ABOUT VISTRA ENERGY
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 18,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing one of the largest solar facilities in Texas by capacity.
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 and Dynegy operate and beliefs of and assumptions made by Vistra Energy's management and Dynegy's management, involve risks and uncertainties, which are difficult to predict and are not guarantees of future performances, that could significantly affect the financial results of Vistra Energy or Dynegy or the combined company. All statements, other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "might", "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "shall," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would," "guidance," and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra Energy and Dynegy believe that in making any such forward-looking statement, Vistra Energy's and Dynegy'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) the failure to consummate or delay in consummating the proposed transaction; (ii) the risk that a condition to closing of the proposed transaction may not be satisfied; (iii) the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained, or is obtained subject to conditions that are not anticipated or that cause the parties to abandon the proposed transaction; (iv) the effect of the announcement of the proposed transaction on Vistra Energy's and Dynegy's relationships with their respective customers and their operating results and businesses generally (including the diversion of management time on transaction-related issues); (v) the risk that the credit ratings of the combined company or its subsidiaries are different from what Vistra Energy and Dynegy expect; (vi) 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; (vii) the ability of the combined company to execute upon the strategic and performance initiatives contemplated herein (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 proposed transaction will not be fully realized or may take longer to realize than expected); (viii) there may be changes in the trading prices of Vistra Energy's and Dynegy's common stock prior to the closing of the proposed transaction; and (ix) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission ("SEC") by Vistra Energy and Dynegy from time to time, including (a) the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in the Vistra Energy's prospectus filed with the SEC pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as supplemented), and (b) the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in the Dynegy's annual report on Form 10-K for the fiscal year ended December 31, 2016.
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, neither Vistra Energy nor Dynegy 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 or Dynegy 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.
ADDITIONAL INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT
This communication relates to the proposed merger pursuant to the terms of the Agreement and Plan of Merger, dated as of October 29, 2017, by and between Vistra Energy and Dynegy. The proposed transaction will be submitted to the respective stockholders of Dynegy and Vistra Energy for their consideration. In connection with the proposed merger, Vistra Energy expects to file with the SEC a registration statement on Form S-4 that will include a joint proxy statement of Vistra Energy and Dynegy that also constitutes a prospectus of Vistra Energy (the "joint proxy statement"), which joint proxy statement will be mailed or otherwise disseminated to Vistra Energy stockholders and Dynegy stockholders when it becomes available. Vistra Energy and Dynegy also plan to file other relevant documents with the SEC regarding the proposed transaction. INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT VISTRA ENERGY, DYNEGY, THE PROPOSED MERGER AND RELATED MATTERS. You may obtain a free copy of the joint proxy statement and other relevant documents (if and when they become available) filed by Vistra Energy and Dynegy with the SEC at the SEC's website at www.sec.gov. Copies of the documents filed by Vistra Energy with the SEC will be available free of charge on Vistra Energy's website at www.vistraenergy.com or by contacting Vistra Energy Investor Relations at 214-812-0046 or at investor@vistraenergy.com. Copies of the documents filed by Dynegy with the SEC will be available free of charge on Dynegy's website at www.dynegy.com or by contacting Dynegy Investor Relations at (713) 507-6466 or at ir@dynegy.com.
CERTAIN INFORMATION REGARDING PARTICIPANTS IN THE SOLICITATION
Vistra Energy and Dynegy and certain of their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. You can find information about Vistra Energy's directors and executive officers in Vistra Energy's prospectus filed with the SEC pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as supplemented), and on its website at www.vistraenergy.com. You can find information about Dynegy's directors and executive officers in its proxy statement for its 2017 annual meeting of stockholders, which was filed with the SEC on March 30, 2017, and on its website at www.dynegy.com. Additional information regarding the interests of such potential participants will be included in the joint proxy statement and other relevant documents filed with the SEC if and when they become available. You may obtain free copies of these documents from Vistra Energy or Dynegy using the sources indicated above.
NO OFFER OF SOLICITATION
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
VISTRA ENERGY CONTACTS
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
Investor@vistraenergy.com
DYNEGY CONTACTS
Media
713-767-5800
Investors
713-507-6466
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SOURCE Vistra Energy; Dynegy Inc.
IRVING, Texas, Oct. 13, 2017 /PRNewswire/ -- Luminant, a subsidiary of Vistra Energy (NYSE: VST), today announced that it will close two coal-fueled power plants in Central Texas: its two-unit Sandow Power Plant in Milam County and its two-unit Big Brown Power Plant in Freestone County. In total, approximately 2,300 MW of nameplate power will be taken offline in early 2018.
These two plants are economically challenged in the competitive ERCOT market. Sustained low wholesale power prices, an oversupplied renewable generation market, and low natural gas prices, along with other factors, have contributed to this decision.
Curt Morgan, Vistra Energy's president and chief executive officer, said, "This announcement is a difficult one to make. It is never easy to announce an action that has a significant impact on our people. Though the long-term economic viability of these plants has been in question for some time, our year-long analysis indicates this announcement is now necessary. These employees have kept both plants reliably powering Texas for decades, and we greatly appreciate their service."
Sandow Site
Earlier this week, the company and Alcoa entered into a contract termination agreement pursuant to which the parties agreed to an early settlement of a long-standing power and mining agreement. In consideration for the early termination, Alcoa made a one-time payment to Luminant. The settlement follows a decrease in wholesale power prices in ERCOT and the prior curtailment of Alcoa's smelter operation next to Sandow. The contract has helped shield Sandow from significant exposure to the downturn in the wholesale power market; however, the standalone economics of the Sandow complex no longer support continued investment in the site in this low wholesale power price environment.
Also closing will be Three Oaks Mine, located primarily in Bastrop County, which supports this plant.
Luminant estimates that approximately 450 employees will be impacted by the Sandow plant and Three Oaks mine closure. Eligible and affected employees will be offered severance benefits and outplacement assistance.
As part of the closure process, today Luminant filed a 90-day notice of suspension of operations with ERCOT, which will trigger a 60-day reliability review. If ERCOT determines the Sandow units are not needed for reliability following this 60-day review, Luminant expects to cease plant operations on Jan. 11, 2018.
Luminant will take the necessary steps to responsibly decommission the facility in accordance with all federal and state regulations. In addition, ongoing reclamation work will continue at Three Oaks Mine.
Big Brown Site
Over the last few years, the Big Brown team has made tremendous operational adjustments to remain viable given the challenging market conditions. However, despite these best efforts, the economics of operating Big Brown do not make it a sustainable option for our fleet. The company will explore a sales process for the site during the ERCOT notification period.
Turlington Mine, which supplies Big Brown, was already scheduled to wind down operations by the end of 2017. Reclamation work will continue there.
Luminant estimates that about 200 employees will be impacted by the Big Brown closure. Eligible and affected employees will be offered severance benefits and outplacement assistance.
As part of the closure process, today Luminant filed a 120-day notice of suspension of operations with ERCOT, which will trigger a 60-day reliability review. Luminant is extending the 90-day notice to 120 days to permit a more complete sales process and give ERCOT additional time to conduct their reliability analysis. If ERCOT determines the Big Brown units are not needed for reliability following the 60-day review, and if the site has not been sold, Luminant expects to cease operations on Feb. 12, 2018.
Financial Impact
Vistra expects to record one-time charges of approximately $70 to 90 million in the fourth quarter of 2017 related to the expected retirements, including employee-related severance costs and non-cash charges for writing off materials inventory and a contract intangible asset associated with Big Brown. We expect to record additional one-time charges in the fourth quarter of 2017 related to changes in the timing and amounts of asset retirement obligations for mining and plant-related reclamation obligations at these facilities.
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 18,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing one of the largest solar facilities in Texas by capacity.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. All statements, other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would" and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. Readers are cautioned not to place undue reliance on forward-looking statements. Any such forward-looking statement involves uncertainties and is qualified in its entirety by reference to the discussion of risk factors under "Risk Factors" and the discussion under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Form 10-Ks and Form 10-Qs filed by Vistra Energy Corp. and other important factors that could cause actual results to differ materially from those implied by such forward-looking statements.
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra Energy undertakes no 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.
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SOURCE Vistra Energy
IRVING, Texas, Oct. 12, 2017 /PRNewswire/ -- Vistra Energy (NYSE: VST), the parent company for TXU Energy and Luminant, plans to report its third quarter 2017 financial and operating results on Friday, November 3, 2017. Management will present the results during a webcast beginning at 11 a.m. ET (10 a.m. CT) on Friday, November 3, 2017.
The live, listen-only webcast of the conference call can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com. For those unable to participate in the live event, a replay of the call will be available on the Vistra Energy website for one year following the call.
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 18,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing one of the largest solar facilities in Texas by capacity.
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SOURCE Vistra Energy
IRVING, Texas, Oct. 6, 2017 /PRNewswire/ -- Luminant, a subsidiary of Vistra Energy (NYSE: VST), today announced plans to retire its Monticello Power Plant in Titus County, Texas. In total, approximately 1,800 MW of power will be taken offline in January of 2018.
Curt Morgan, Vistra Energy's president and chief executive officer, said, "For more than 40 years, Monticello employees have generated reliable power for Texans, and we honor and recognize their service. But the market's unprecedented low power price environment has profoundly impacted its operating revenues and no longer supports continued investment."
Luminant estimates that approximately 200 employees will be impacted by Monticello's retirement. Eligible and affected employees will be offered severance benefits and outplacement assistance. The company will also assist employees who are interested in pursuing open positions within our fleet.
Mr. Morgan continued, "This was a difficult decision made after a year of careful analysis. We are sensitive to the consequences of our decision on employees and members of the local community, with whom we have worked closely for decades. Luminant will be coordinating with civic leadership to prepare for the impacts of the transition."
As part of the retirement process, today Luminant filed a notice with the Electric Reliability Council of Texas ("ERCOT"), which will trigger a reliability review. If ERCOT determines the units are not needed for reliability following this 60-day review, Luminant expects to stop plant operations on Jan. 4, 2018.
Luminant will take the necessary steps to responsibly decommission the facility in accordance with all federal and state regulations. In addition, we will continue the ongoing reclamation work at the plant's mines, which ceased active operations in the spring of 2016.
Vistra estimates it will record one-time charges of approximately $20-25 million in the third quarter of 2017 related to the retirement, including employee-related severance costs and non-cash charges for materials inventory and the acceleration of Luminant's mining reclamation obligations.
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 18,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing one of the largest solar facilities in Texas by capacity.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. All statements, other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would" and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. Readers are cautioned not to place undue reliance on forward-looking statements. Any such forward-looking statement involves uncertainties and is qualified in its entirety by reference to the discussion of risk factors under "Risk Factors" and the discussion under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Form 10-Ks and Form 10-Qs filed by Vistra Energy Corp. and other important factors that could cause actual results to differ materially from those implied by such forward-looking statements.
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra Energy undertakes no 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.
View original content:http://www.prnewswire.com/news-releases/luminant-announces-decision-to-retire-its-monticello-power-plant-300532152.html
SOURCE Luminant
IRVING, Texas, Sept. 26, 2017 /PRNewswire/ -- Houston Pizza Venture, one of the largest Papa John's franchisees in the country, will now add solar to its 100-percent renewable energy purchase as part of a nine-year agreement with TXU Energy. The Houston-based company has been powering its more than 85 stores, which include Papa John's, Genghis Grill, Firehouse Subs, and Sure Fire Tacos and Tortilla Grill locations, with 100-percent wind power since 2015. Beginning in 2018, solar power from the new Luminant Upton 2 Solar Power Plant in West Texas will also make up nearly a quarter of the restaurant company's renewable energy mix.
"As a business owner, it is important to me to know that the electricity powering my restaurants comes from renewable sources," said Keith Sullins, president of Houston Pizza Venture. "This isn't an agreement that simply makes us feel good; it also makes financial sense. TXU Energy was able to add solar to our already 100-percent renewable plan without an upfront cost component."
The nine-year agreement, which includes both solar and wind, will begin in April 2018 at the culmination of the company's current 100-percent wind contract.
"Our goal has always been to provide Papa John's and Houston Pizza Venture with a plan that makes the most sense for their operations and meets the sustainability goals they've set," said Gabe Castro, vice president of business for TXU Energy. "Because we've been working together for nearly a decade now, we know how passionate Mr. Sullins is about renewables and knew he would be interested in the newly announced 180-megawatt solar plant."
Energy Edge Consulting advised Houston Pizza Ventures on the transaction.
"Many businesses, like Houston Pizza Venture, are restricted in their ability to install solar panels at individual stores – both physically and financially," said Matt Hobson, founder of Energy Edge. "TXU Energy's solar product provides the benefits of long term price protection without the complexity and risks that go along with some renewable energy contracts. It's exciting when we're able to align a client's goals with an innovative product offering like this from TXU Energy."
This renewable power agreement is the latest in the partnership between Houston Pizza Ventures and TXU Energy. This year marked the third year in a row that Papa John's and TXU Energy teamed up for Earth Day to deliver tree seedlings with every pizza order. The promotion has resulted in 50,000 seedlings delivered in the Houston area.
"People have asked me why I like doing business with TXU Energy," Sullins said. "You can pick almost any energy provider out there and the cost might be similar, but there aren't too many companies out there that think outside the box, that's unusual. TXU Energy is a true partner for my business."
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Ranked as the No. 9 Top Place to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
About Houston Pizza Venture
Houston Pizza Venture Restaurant Group is a locally owned and operated, multi-concept restaurant franchise group. It is the area's largest Papa John's franchisee and also owns and operates Genghis Grill, Firehouse Subs, and Surefire Tacos locations.
About Energy Edge Consulting
Energy Edge Consulting provides a full suite of energy management, consulting, and advisory services to a wide range of businesses and institutions. The Energy Edge team has over 150 years of combined experience in various aspects of the electricity and natural gas industries, and the knowledge and expertise from this experience is leveraged every day to deliver value to clients.
Media
TXU Energy
214-875-8004
MediaHotline@txu.com
http://twitter.com/txuenergy
http://www.facebook.com/txuenergy
http://www.youtube.com/txuenergy
Houston Pizza Venture
Adam Garza, 281.580.6088
agarza@pjhouston.com
https://twitter.com/PapaJohnsHousTx
https://www.facebook.com/PapaJohnsHouston/
Energy Edge
Matt Hobson
713-300-0680 x 702
View original content:http://www.prnewswire.com/news-releases/houston-area-papa-johns-renewable-power-purchase-to-include-wind-and-solar-300525799.html
SOURCE TXU Energy; Papa John’s; Energy Edge Consulting
IRVING, Texas, Aug. 30, 2017 /PRNewswire/ -- With disaster recovery from Hurricane Harvey underway, TXU Energy announced today a series of steps it has taken to help customers.
During this time of extreme need, TXU Energy is assisting customers affected by Hurricane Harvey by:
To take advantage of this assistance, TXU Energy customers affected by the storm should call 1-800-242-9113. The assistance is available until at least Sept. 30.
"As people get back in their homes and begin their recovery from this historic storm, we don't want them worrying about their electric bills. As a company, we can help our customers so they can focus on rebuilding their homes and lives," said Scott Hudson, president of TXU Energy.
Through the TXU Energy AidSM program, TXU Energy is providing $500,000 to assist customers who need help paying their electric bills in areas hit by Hurricane Harvey. These funds are being allocated to existing TXU Energy Aid partners serving Houston and upper Texas Gulf Coast areas.
Along with this donation, the TXU Energy Aid program will provide agencies the flexibility they need to assist customers. Those funds are donated by the company, its employees, and customers. All donations are returned to the local communities and can help customers impacted by Hurricane Harvey.
"The needs of the community will be significant during the long-term recovery process. Thank you, TXU Energy. We deeply appreciate your year-round partnership but even more so in times like this," said Angela Blanchard, president and CEO of BakerRipley, TXU Energy Aid partner.
For more than 30 years, TXU Energy Aid, one of the largest electric bill payment assistance programs in the nation, has helped Texas families going through hard times keep their homes powered and safe. For information on which social service agency provides assistance in their area, customers can call 211 and ask for bill payment assistance.
Additionally, Vistra Energy (NYSE: VST), the parent company of TXU Energy and Luminant, the largest power generation company in Texas, donated $25,000 to the American Red Cross for disaster relief and made a substantial delivery of clothing and toiletries for storm evacuees at North Texas shelters. The company will continue to assess the customer and community impact and provide further assistance as needed.
About TXU Energy
More Texans trust TXU Energy to power their homes and businesses than any other electricity provider. We're passionate about creating experiences and solutions tailored to fit the needs of our customers, including electricity plans, online tools to help save, renewable energy options and more. Ranked as the No. 9 Top Place to Work by The Dallas Morning News, TXU Energy is also committed to creating a dynamic and fun workplace where all our people can succeed. Visit txu.com for more. TXU Energy is a subsidiary of Vistra Energy (NYSE: VST). REP #10004
Media
Meranda Cohn
214-875-8004
MediaHotline@txu.com
https://twitter.com/txuenergy
https://www.youtube.com/txuenergy
https://www.facebook.com/txuenergy
View original content:http://www.prnewswire.com/news-releases/txu-energy-pledges-500000-to-aid-hurricane-impacted-customers-and-communities-300511828.html
SOURCE TXU Energy
IRVING, Texas, Aug. 4, 2017 /PRNewswire/ -- Vistra Energy (NYSE: VST), the parent company for TXU Energy and Luminant, today reported a second quarter 2017 net loss of $26 million. Net income for the first half of 2017 was $52 million and cash provided by operating activities for the same period was $333 million.
Adjusted EBITDA for the second quarter 2017 was $345 million. For the first half of 2017, Vistra Energy's adjusted EBITDA was $621 million and adjusted free cash flow was $179 million.
Curt Morgan, Vistra Energy's chief executive officer, remarked, "Vistra Energy's second quarter results were strong despite some headwinds, including a lackluster start to the Texas summer and an unplanned outage at Comanche Peak Unit 2, which began on June 5. Our solid performance for the quarter is a direct result of our persistent cost management and the consistently robust margins realized in both our wholesale and retail segments. In addition, our operations performance initiative is well under way and, while we have not yet finalized review of the entire fleet, we already expect to capture approximately $28 million of incremental EBITDA in 2017 as a result of this process. This incremental $28 million of EBITDA translates to a full year run-rate in the range of $45 to 50 million based on the reviews we have completed to date. Also of note thus far in 2017 are the acquisitions of the Odessa plant and the Upton 2 solar development project, both of which are consistent with Vistra Energy's strategic direction and expected to enhance shareholder value. We are proud of our team's execution in the first half of 2017 and pleased to reaffirm our 2017 guidance."
2017 Guidance
Vistra Energy is reaffirming its 2017 guidance ranges, reflecting an adjusted EBITDA range of $1,350 million to $1,500 million and an adjusted free cash flow range of $745 million to $925 million.
Liquidity
As of June 30, 2017, Vistra Energy had total available liquidity of approximately $2.021 billion, including cash and cash equivalents of $986 million, $175 million in available letter of credit capacity under its term loan C facility, and $860 million of availability under its revolving credit facility, which remained undrawn at June 30, 2017. Liquidity increased by approximately $35 million in the second quarter of 2017 due to increased available cash from operations.
Odessa Acquisition
On August 1, 2017, Vistra Energy acquired a 1,054 MW combined cycle, combustion turbine power plant located in Odessa, Texas (the "Odessa plant") for approximately $350 million. Vistra Energy funded the acquisition with cash on hand. The addition of the Odessa plant to Luminant's generation fleet provides geographic diversity to the portfolio and matches generation against TXU Energy's load position in the ERCOT West Zone. Further, the Odessa plant's ideal location in West Texas provides it with gas sourcing flexibility, including access to the deeply discounted gas supply from the Permian Basin. The acquisition is consistent with Vistra Energy's strategy to opportunistically acquire more efficient and flexible gas-fired generation and renewable generation to support its retail business.
Earnings Conference Call
Vistra Energy will host a conference call today, August 4, 2017, beginning at 11 a.m. EDT (10 a.m. CDT) to discuss these results and related matters. The live, listen-only webcast of the conference call and the accompanying slides that will be discussed on the call can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com. For those unable to participate in the live event, a replay of the call will be available on the Vistra Energy website for one year following the call.
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) and "adjusted free cash flow" (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures, other net investment activities, preferred stock dividends, and other items described from time to time in Vistra Energy's earnings releases), 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 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. 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 is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 18,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing one of the largest solar facilities in Texas by capacity.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. All statements, other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "shall," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would," "guidance" and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. 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 the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in our prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) of the Securities Act on May 9, 2017 (as supplemented).
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra Energy undertakes no 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 Earnings Per Share)
| |||||||
Three Months Ended June 30, 2017 |
Six Months Ended June 30, 2017 | ||||||
Operating revenues |
$ |
1,296 |
$ |
2,653 |
|||
Fuel, purchased power costs and delivery fees |
(729) |
(1,411) |
|||||
Operating costs |
(195) |
(409) |
|||||
Depreciation and amortization |
(172) |
(341) |
|||||
Selling, general and administrative expenses |
(147) |
(285) |
|||||
Operating income |
53 |
207 |
|||||
Other income |
9 |
18 |
|||||
Other deductions |
(5) |
(5) |
|||||
Interest expense and related charges |
(69) |
(93) |
|||||
Impacts of Tax Receivable Agreement |
(22) |
(42) |
|||||
Income (loss) before income taxes |
(34) |
85 |
|||||
Income tax (expense) benefit |
8 |
(33) |
|||||
Net income (loss) |
$ |
(26) |
$ |
52 |
|||
Weighted average shares of common stock outstanding: |
|||||||
Basic |
427,587,401 |
427,585,381 |
|||||
Diluted |
427,587,401 |
427,846,563 |
|||||
Net income (loss) per weighted average share of common stock outstanding: |
|||||||
Basic |
$ |
(0.06) |
$ |
0.12 |
|||
Diluted |
$ |
(0.06) |
$ |
0.12 |
VISTRA ENERGY CORP. CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (Millions of Dollars)
| |||
Six Months Ended June 30, 2017 | |||
Cash flows — operating activities: |
|||
Net income |
$ |
52 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|||
Depreciation and amortization |
437 |
||
Deferred income tax expense, net |
29 |
||
Unrealized net gain from mark-to-market valuations of derivatives |
(48) |
||
Impacts of Tax Receivable Agreement |
42 |
||
Stock-based compensation |
8 |
||
Other, net |
22 |
||
Changes in operating assets and liabilities: |
|||
Margin deposits, net |
147 |
||
Accrued interest |
(29) |
||
Accrued taxes |
(85) |
||
Accrued incentive plan |
(60) |
||
Other operating assets and liabilities, including liabilities subject to compromise |
(182) |
||
Cash provided by operating activities |
333 |
||
Cash flows — financing activities: |
|||
Repayments/repurchases of debt |
(24) |
||
Other, net |
(3) |
||
Cash used in financing activities |
(27) |
||
Cash flows — investing activities: |
|||
Capital expenditures |
(63) |
||
Nuclear fuel purchases |
(35) |
||
Solar development expenditures |
(96) |
||
Changes in restricted cash |
31 |
||
Proceeds from sales of nuclear decommissioning trust fund securities |
98 |
||
Investments in nuclear decommissioning trust fund securities |
(107) |
||
Other, net |
9 |
||
Cash used in investing activities |
(163) |
||
Net change in cash and cash equivalents |
143 |
||
Cash and cash equivalents — beginning balance |
843 |
||
Cash and cash equivalents — ending balance |
$ |
986 |
VISTRA ENERGY CORP. ADJUSTED EBITDA RECONCILIATION (Unaudited) (Millions of Dollars)
| |||||||
Three Months Ended June 30, 2017 |
Six Months Ended June 30, 2017 | ||||||
Net income (loss) |
$ |
(26) |
$ |
52 |
|||
Income tax expense |
(8) |
33 |
|||||
Interest expense and related charges |
69 |
93 |
|||||
Depreciation and amortization (a) |
189 |
389 |
|||||
EBITDA before adjustments |
$ |
224 |
$ |
567 |
|||
Reorganization items and restructuring expenses |
5 |
9 |
|||||
Unrealized net (gains) losses resulting from hedging transactions |
67 |
(54) |
|||||
Fresh start accounting impacts |
24 |
51 |
|||||
Tax receivable agreement obligation accretion |
22 |
42 |
|||||
Other |
3 |
6 |
|||||
Adjusted EBITDA |
$ |
345 |
$ |
621 |
____________
(a) |
Includes nuclear fuel amortization of $17 million and $47 million for the three and six months ended June 30, 2017, respectively. |
VISTRA ENERGY CORP. ADJUSTED FREE CASH FLOW RECONCILIATION (Unaudited) (Millions of Dollars)
| |||
Six Months Ended June 30, 2017 | |||
Adjusted EBITDA |
$ |
621 |
|
Interest paid, net (a) |
(133) |
||
Changes in other operating assets and liabilities |
(238) |
||
Changes in working capital |
(74) |
||
Changes in margin deposits (b) |
158 |
||
Other, net |
(1) |
||
Cash provided by (used in) operating activities |
$ |
333 |
|
Capital expenditures |
(63) |
||
Nuclear fuel purchases |
(35) |
||
Solar development expenditures |
(96) |
||
Other net investing activities (c) |
2 |
||
Free cash flow |
$ |
141 |
|
Changes in working capital |
74 |
||
Changes in margin deposits (b) |
(158) |
||
Solar development expenditures |
96 |
||
Payments funded from restructuring escrow accounts |
26 |
||
Adjusted free cash flow |
$ |
179 |
____________
(a) |
Net of interest received. Excludes fees paid on Vistra Operations Credit Facility repricing in February 2017. |
(b) |
Includes $11 million of margin deposits with CME, which are included in the unrealized net (gain) loss from mark-to-market valuations of derivatives in the condensed statements of consolidated cash flows. |
(c) |
Includes investments in and proceeds from the nuclear decommissioning trust fund and other net investing cash flows, but excludes changes in restricted cash. |
VISTRA ENERGY CORP. 2017 GUIDANCE RECONCILIATION (Unaudited) (Millions of Dollars)
| |||||||
Year Ended December 31, 2017 | |||||||
High |
Low | ||||||
Net Income |
$ |
221 |
$ |
123 |
|||
Income tax expense |
186 |
134 |
|||||
Interest expense and related charges |
199 |
199 |
|||||
Depreciation and amortization |
676 |
676 |
|||||
EBITDA before adjustments |
$ |
1,282 |
$ |
1,132 |
|||
Fresh start accounting adjustments |
63 |
63 |
|||||
Unrealized net (gain) loss resulting from hedging transactions |
23 |
23 |
|||||
Tax receivable agreement accretion |
100 |
100 |
|||||
Restructuring and other |
32 |
32 |
|||||
Adjusted EBITDA |
$ |
1,500 |
$ |
1,350 |
|||
Interest payments |
(225) |
(225) |
|||||
Tax payments |
(64) |
(42) |
|||||
Tax receivable agreement payments |
(16) |
(16) |
|||||
Working capital and margin deposits |
188 |
188 |
|||||
Payments funded from restructuring escrow accounts |
(90) |
(90) |
|||||
Other, net |
(41) |
(93) |
|||||
Cash provided by (used in) operating activities |
$ |
1,252 |
$ |
1,072 |
|||
Capital expenditures including nuclear fuel |
(219) |
(219) |
|||||
Other net investing activities |
(10) |
(10) |
|||||
Free cash flow |
$ |
1,023 |
$ |
843 |
|||
Working capital and margin deposits |
(188) |
(188) |
|||||
Payments funded from restructuring escrow accounts |
90 |
90 |
|||||
Adjusted free cash flow |
$ |
925 |
$ |
745 |
View original content with multimedia:http://www.prnewswire.com/news-releases/vistra-energy-reports-second-quarter-2017-results-and-reaffirms-2017-guidance-300499637.html
SOURCE Vistra Energy
IRVING, Texas, Aug. 1, 2017 /PRNewswire/ -- Vistra Energy (NYSE: VST), the parent company for TXU Energy and Luminant, today completed the previously announced acquisition of the 1,054 MW combined cycle, combustion turbine power plant located in Odessa, Texas (the "Odessa plant") from a subsidiary of Koch Ag & Energy Solutions, LLC.
"We are excited to announce the closing of this transaction and the addition of the Odessa plant to Luminant's generation fleet," said Curt Morgan, Vistra Energy's chief executive officer. "The addition of this flexible and efficient gas-fueled asset to our portfolio in the heat of the Texas summer could not be better timing. We look forward to welcoming the Odessa team into the Vistra family."
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer and generator of electricity in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 18,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 7,500 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing one of the largest solar facilities in Texas by capacity.
View original content with multimedia:http://www.prnewswire.com/news-releases/vistra-energy-completes-acquisition-of-1054-mw-odessa-plant-300497747.html
SOURCE Vistra Energy
DALLAS, July 6, 2017 /PRNewswire/ -- Vistra Energy (NYSE: VST), the parent company for TXU Energy and Luminant, announced today it has entered into a definitive agreement to acquire a 1,054 MW combined cycle, combustion turbine power plant located in Odessa, Texas (the "Odessa plant") from a subsidiary of Koch Ag & Energy Solutions, LLC.
Curt Morgan, Vistra Energy's chief executive officer, remarked, "The Odessa plant is an efficient, well-maintained asset that will provide critical flexible generation capabilities to Luminant's ERCOT portfolio."
Morgan added, "Perhaps even more important, the Odessa plant brings geographic diversity to the Luminant fleet, as it is ideally situated in West Texas to capture the current natural gas price advantage in the Permian Basin. We expect this price advantage to continue for the next several years until adequate pipeline infrastructure is constructed to transport the large volumes of associated gas out of the region."
"Moreover, this transaction is consistent with Vistra Energy's strategy to opportunistically acquire more efficient and flexible gas-fired generation and renewable generation to support our retail business," Morgan said. "By purchasing this asset at what we estimate to be a nearly 60 percent discount to new construction cost, and with a near-term fuel cost advantage, we believe the acquisition will provide incremental value to our shareholders in the years to come."
Transaction Highlights
Odessa Plant Statistics and Other Key Factors
Pending the receipt of all necessary government approvals and the fulfillment of all other customary closing conditions, Vistra Energy anticipates the transaction will close in the third quarter of 2017.
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer of electricity and generator in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 17,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 6,000 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing the largest solar facility in Texas by capacity.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. All statements, other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would" and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. 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 the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in Vistra Energy's prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) of the Securities Act on May 9, 2017, as well the following risks and uncertainties: the ability of the parties to obtain all applicable governmental approvals and third party consents required to be obtained in connection with the Odessa transaction, fluctuations in gas prices (particularly in the Permian Basin) and ERCOT power prices, and the ability of Vistra Energy to successfully implement any operational or other improvements to the Odessa facility, including those contemplated herein.
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra Energy undertakes no 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.
SOURCE Vistra Energy
DALLAS, June 29, 2017 /PRNewswire/ -- Vistra Energy (NYSE: VST), the parent company for TXU Energy and Luminant, plans to report its second quarter 2017 financial and operating results on Friday, August 4, 2017. Management will present the results during a webcast beginning at 11 a.m. EDT (10 a.m. CDT) on Friday, August 4, 2017.
The live, listen-only webcast of the conference call can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com. For those unable to participate in the live event, a replay of the call will be available on the Vistra Energy website for one year following the call.
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer of electricity and generator in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 17,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal, and 6,000 MW fueled by natural gas, and is a large purchaser of renewable power including wind and solar-generated electricity. The company is currently developing the largest solar facility in Texas by capacity.
SOURCE Vistra Energy
DALLAS, May 17, 2017 /PRNewswire/ -- Vistra Energy (NYSE: VST), the parent company for TXU Energy and Luminant, today announced the purchase of the Upton County Solar 2 development project in West Texas. The purchase delivers on the company's strategic plan to further strengthen and expand its integrated businesses through enhanced retail solar offerings and diversity across its generation fleet.
Simultaneous with the acquisition of the project, Upton 2 entered into a turnkey, fixed-price, engineering, procurement, and construction contract to deliver the 180-megawatt solar plant in the summer of 2018. The Upton 2 facility will provide a company-owned asset as a platform for offering significant, long-term, and economically viable renewable options to a variety of customers throughout Texas, including commercial, industrial, and residential customers.
"This purchase is an additional proof point of Vistra Energy's ability to uniquely couple our retail business with our commercial operations in a meaningful and beneficial way," said Curt Morgan, the company's president and chief executive officer. "It also shows our commitment to expand this model while providing significant advantages compared to a standalone retailer or generator."
A Key Retail Platform
An Excellent Addition to Luminant's Fleet
Project Information
Media
Allan Koenig
214-875-8004
Media.Relations@vistraenergy.com
Analysts
Molly Sorg
214-812-0046
Investor@vistraenergy.com
Additional Information
Vistra Energy has filed with the Securities Exchange Commission (the SEC) a registration statement on Form S-1 under the Securities Act with respect to resales of the shares of our common stock offered thereunder. Upon the effectiveness of the registration statement, which we expect to be prior to May 10, 2017, we will be subject to the information and periodic reporting requirements of the Securities and Exchange Act and, in accordance therewith, will file periodic reports, proxy statements and other information with the SEC. A copy of the registration statement, the exhibits and schedules filed with the registration statement, and future periodic reports, proxy statements, and other filings may be inspected without charge at the public reference room maintained by the SEC, located at 100 F Street, N.E., Washington, D.C. 20549, and copies of all or any part of the registration statement or other filings may be obtained upon the payment of the fees prescribed by the SEC. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. The SEC also maintains an Internet website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the website is www.sec.gov.
Vistra Energy maintains a website at www.vistraenergy.com. You may access our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act with the SEC free of charge at our website as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. However, the reference to our web address does not constitute incorporation by reference of the information contained at such site.
About Vistra Energy
Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer of electricity and generator in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 17,000 MW of generation in Texas, including approximately 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal and 6,000 MW fueled by natural gas, and is a large purchaser of wind-generated electricity.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. All statements, other than statements of historical facts, are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "shall," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would" and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. 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 is qualified in its entirety by reference to the discussion of risk factors under "Risk Factors" and the discussion under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the registration statement on Form S-1 filed by Vistra Energy and other important factors that could cause actual results to differ materially from those implied by such forward-looking statements, including changes in the Texas energy market; economic, regulatory and environmental conditions; and any strategies Vistra Energy employs to pursue growth opportunities in any particular market.
SOURCE Vistra Energy
Upton County Solar 2 Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Vistra Energy
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