Vistra Reports First Quarter 2024 Results, Raises Expectations for Energy Harbor and Consolidated Adjusted EBITDA
Earnings Release Highlights
- GAAP first quarter 2024 Net Income of
$18 million and Cash Flow from Operations of$312 million . - Net Income from Ongoing Operations1 of
$39 million and Ongoing Operations Adjusted EBITDA1 of$813 million . - Initiated a combined midpoint guidance for 2024 Ongoing Operations Adjusted EBITDA,1 excluding any potential contribution from the nuclear production tax credit, of
$4,800 million . - Increased synergy expectations for
Energy Harbor and announced targeted Operational Performance Improvement (OPI) initiatives totaling$200 million run-rate on a combined basis by year end 2026. -
Vistra May 8, 2024 .
"It's been an exciting start to 2024 for
Burke continued, "We believe that our integrated model, which combines best-in-class retail and commercial operations with a high-quality portfolio of generation assets enables us to provide our retail customers the electric service they need while delivering consistent financial results for our stakeholders. During another quarter characterized by both winter storms and unseasonably mild weather,
Burke concluded, "Recent power market developments are certainly notable, and we see multiple drivers underlying a projected long-term acceleration in load growth in many of the geographies we serve. The increase in our potential long-term financial expectations reflects the attractive position provided by our integrated business model. We remain focused on advancing our four strategic priorities of delivering strong and stable earnings, executing a disciplined capital allocation strategy, maintaining balance sheet strength, and supporting a sustainable energy future."
Summary of Financial Results for the Three Months Ended |
|||
(Unaudited) (Millions of Dollars) |
|||
|
|||
|
Three Months Ended |
||
|
2024 |
|
2023 |
Net income (loss) |
$ 18 |
|
$ 698 |
Ongoing operations net income (loss) |
$ 39 |
|
$ 725 |
Ongoing operations Adjusted EBITDA |
$ 813 |
|
$ 554 |
|
|
|
|
Adjusted EBITDA by Segment |
|
|
|
Retail |
$ (28) |
|
$ (29) |
|
$ 411 |
|
$ 383 |
East |
$ 201 |
|
$ 1 |
West |
$ 59 |
|
$ 46 |
Sunset |
$ 184 |
|
$ 164 |
Corporate and Other |
$ (14) |
|
$ (11) |
Asset Closure |
$ (23) |
|
$ (41) |
For the quarter ended
Guidance |
|
|
|
($ in millions) |
Initiated
Combined 2024 Guidance Ranges |
Ongoing Operations Adjusted EBITDA |
|
Ongoing Operations Adjusted FCFbG |
|
As of
Share Repurchase Program
As of
-
Vistra executed~$3.9 billion in share repurchases sinceNovember 2021 . -
Vistra had ~347.5 million shares outstanding, representing a ~28% reduction of the amount of the shares outstanding onNov. 2, 2021 .
Clean Energy Investments
On
The Inflation Reduction Act is anticipated to provide the opportunity to realize material benefits to
Liquidity
As of
Earnings Webcast
About
1 Ongoing Operations excludes the Asset Closure segment. Net Income (Loss) from Ongoing Operations, Ongoing Operations Adjusted EBITDA, and Ongoing Operations Adjusted Free Cash Flow before Growth are non-GAAP financial measures. Any reference to "Ongoing Operations Adjusted FCFbG" is a reference to Ongoing Operations Adjusted Free Cash Flow before Growth. See the "Non-GAAP Reconciliation" tables for further detail. Total segment information may not tie due to rounding.
2 Midpoint opportunities are not intended to be guidance and represent only our estimate of potential opportunities for Adj. EBITDA in 2025 and 2026 based on market curves as of
3 The accounts receivable securitization program facility was amended to add
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
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
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law,
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Millions of Dollars) |
|||
|
Three Months Ended |
||
|
2024 |
|
2023 |
Operating revenues |
$ 3,054 |
|
$ 4,425 |
Fuel, purchased power costs and delivery fees |
(1,716) |
|
(2,170) |
Operating costs |
(498) |
|
(421) |
Depreciation and amortization |
(403) |
|
(366) |
Selling, general and administrative expenses |
(351) |
|
(288) |
Impairment of long-lived assets |
— |
|
(49) |
Operating income |
86 |
|
1,131 |
Other income |
91 |
|
20 |
Other deductions |
(4) |
|
(3) |
Interest expense and related charges |
(170) |
|
(207) |
Impacts of Tax Receivable Agreement |
(5) |
|
(65) |
Net income (loss) before income taxes |
(2) |
|
876 |
Income tax (expense) benefit |
20 |
|
(178) |
Net income |
$ 18 |
|
$ 698 |
Net (income) loss attributable to noncontrolling interest |
(53) |
|
1 |
Net income (loss) attributable to |
$ (35) |
|
$ 699 |
Cumulative dividends attributable to preferred stock |
(49) |
|
(38) |
Net income (loss) attributable to |
$ (84) |
|
$ 661 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Millions of Dollars) |
|||
|
Three Months Ended |
||
|
2024 |
|
2023 |
Cash flows — operating activities: |
|
|
|
Net income |
$ 18 |
|
$ 698 |
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
Depreciation and amortization |
555 |
|
477 |
Deferred income tax expense (benefit), net |
(23) |
|
181 |
Impairment of long-lived assets |
— |
|
49 |
Unrealized net (gain) loss from mark-to-market valuations of commodities |
176 |
|
(1,085) |
Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps |
(47) |
|
41 |
Unrealized net gain from nuclear decommissioning trusts |
(28) |
|
— |
Asset retirement obligation accretion expense |
19 |
|
9 |
Impacts of Tax Receivable Agreement |
5 |
|
65 |
Gain on TRA repurchase and tender offers |
(10) |
|
— |
Bad debt expense |
36 |
|
35 |
Stock-based compensation |
21 |
|
22 |
Other, net |
(23) |
|
8 |
Changes in operating assets and liabilities: |
|
|
|
Margin deposits, net |
128 |
|
1,227 |
Accrued interest |
(3) |
|
(47) |
Accrued taxes |
(111) |
|
(91) |
Accrued employee incentive |
(169) |
|
(79) |
Other operating assets and liabilities |
(232) |
|
(75) |
Cash provided by operating activities |
312 |
|
1,435 |
Cash flows — investing activities: |
|
|
|
Capital expenditures, including nuclear fuel purchases and LTSA prepayments |
(465) |
|
(484) |
|
(3,070) |
|
— |
Proceeds from sales of nuclear decommissioning trust fund securities |
214 |
|
119 |
Investments in nuclear decommissioning trust fund securities |
(220) |
|
(125) |
Proceeds from sales of environmental allowances |
17 |
|
35 |
Purchases of environmental allowances |
(131) |
|
(61) |
Proceeds from sale of property, plant and equipment, including nuclear fuel |
127 |
|
2 |
Other, net |
— |
|
1 |
Cash used in investing activities |
(3,528) |
|
(513) |
Cash flows — financing activities: |
|
|
|
Issuances of long-term debt |
700 |
|
— |
Repayments/repurchases of debt |
(756) |
|
(7) |
Net borrowings under accounts receivable financing |
875 |
|
175 |
Borrowings under Revolving Credit Facility |
— |
|
100 |
Repayments under Revolving Credit Facility |
— |
|
(350) |
Borrowings under Commodity-Linked Facility |
500 |
|
— |
Repayments under Commodity-Linked Facility |
— |
|
(400) |
Stock repurchases |
(291) |
|
(301) |
Dividends paid to common stockholders |
(77) |
|
(77) |
TRA Repurchase and tender offer — return of capital |
(122) |
|
— |
Other, net |
(36) |
|
(14) |
Cash provided by (used in) financing activities |
793 |
|
(874) |
Net change in cash, cash equivalents and restricted cash |
(2,423) |
|
48 |
Cash, cash equivalents and restricted cash — beginning balance |
3,539 |
|
525 |
Cash, cash equivalents and restricted cash — ending balance |
$ 1,116 |
|
$ 573 |
|
|||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA |
|||||||||||||||||
FOR THE THREE MONTHS ENDED |
|||||||||||||||||
(Unaudited) (Millions of Dollars) |
|||||||||||||||||
|
|||||||||||||||||
|
Retail |
|
|
|
East |
|
West |
|
Sunset |
|
Eliminations / |
|
Ongoing |
|
Asset |
|
|
Net income (loss) |
$ 561 |
|
$ (331) |
|
$ (185) |
|
$ 164 |
|
$ 7 |
|
$ (177) |
|
$ 39 |
|
$ (21) |
|
$ 18 |
Income tax benefit |
— |
|
— |
|
— |
|
— |
|
— |
|
(20) |
|
(20) |
|
— |
|
(20) |
Interest expense and related charges (a) |
6 |
|
(10) |
|
1 |
|
— |
|
— |
|
172 |
|
169 |
|
1 |
|
170 |
Depreciation and amortization (b) |
23 |
|
158 |
|
215 |
|
21 |
|
20 |
|
16 |
|
453 |
|
— |
|
453 |
EBITDA before Adjustments |
590 |
|
(183) |
|
31 |
|
185 |
|
27 |
|
(9) |
|
641 |
|
(20) |
|
621 |
Unrealized net (gain) loss resulting from hedging transactions |
(623) |
|
584 |
|
193 |
|
(129) |
|
155 |
|
— |
|
180 |
|
(4) |
|
176 |
Purchase accounting impacts |
(2) |
|
— |
|
(2) |
|
— |
|
— |
|
(14) |
|
(18) |
|
— |
|
(18) |
Impacts of Tax Receivable Agreement (c) |
— |
|
— |
|
— |
|
— |
|
— |
|
(5) |
|
(5) |
|
— |
|
(5) |
Non-cash compensation expenses |
— |
|
— |
|
— |
|
— |
|
— |
|
21 |
|
21 |
|
— |
|
21 |
Transition and merger expenses |
1 |
|
— |
|
4 |
|
— |
|
— |
|
28 |
|
33 |
|
— |
|
33 |
Decommissioning-related activities (d) |
— |
|
5 |
|
(26) |
|
— |
|
2 |
|
— |
|
(19) |
|
— |
|
(19) |
ERP system implementation |
— |
|
— |
|
— |
|
— |
|
— |
|
6 |
|
6 |
|
— |
|
6 |
Other, net |
6 |
|
5 |
|
1 |
|
3 |
|
— |
|
(41) |
|
(26) |
|
1 |
|
(25) |
Adjusted EBITDA |
$ (28) |
|
$ 411 |
|
$ 201 |
|
$ 59 |
|
$ 184 |
|
$ (14) |
|
$ 813 |
|
$ (23) |
|
$ 790 |
___________
(a) |
Includes |
(b) |
Includes nuclear fuel amortization of |
(c) |
Includes |
(d) |
Represents net of all NDT income (loss), ARO accretion expense for operating assets and ARO remeasurement impacts for operating assets. |
|
|||||||||||||||||
NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA |
|||||||||||||||||
FOR THE THREE MONTHS ENDED |
|||||||||||||||||
(Unaudited) (Millions of Dollars) |
|||||||||||||||||
|
|||||||||||||||||
|
Retail |
|
|
|
East |
|
West |
|
Sunset |
|
Eliminations / |
|
Ongoing |
|
Asset |
|
|
Net income (loss) |
$ (595) |
|
$ 584 |
|
$ 745 |
|
$ 52 |
|
$ 424 |
|
$ (485) |
|
$ 725 |
|
$ (27) |
|
$ 698 |
Income tax expense |
— |
|
— |
|
— |
|
— |
|
— |
|
178 |
|
178 |
|
— |
|
178 |
Interest expense and related charges (a) |
7 |
|
(4) |
|
— |
|
(4) |
|
1 |
|
206 |
|
206 |
|
1 |
|
207 |
Depreciation and amortization (b) |
29 |
|
153 |
|
161 |
|
15 |
|
14 |
|
17 |
|
389 |
|
— |
|
389 |
EBITDA before Adjustments |
(559) |
|
733 |
|
906 |
|
63 |
|
439 |
|
(84) |
|
1,498 |
|
(26) |
|
1,472 |
Unrealized net (gain) loss resulting from hedging transactions |
559 |
|
(346) |
|
(923) |
|
(18) |
|
(340) |
|
— |
|
(1,068) |
|
(17) |
|
(1,085) |
Generation plant retirement expenses |
— |
|
— |
|
— |
|
— |
|
— |
|
1 |
|
1 |
|
— |
|
1 |
Fresh start/purchase accounting impacts |
1 |
|
(1) |
|
2 |
|
— |
|
1 |
|
— |
|
3 |
|
— |
|
3 |
Impacts of Tax Receivable Agreement |
— |
|
— |
|
— |
|
— |
|
— |
|
65 |
|
65 |
|
— |
|
65 |
Non-cash compensation expenses |
— |
|
— |
|
— |
|
— |
|
— |
|
22 |
|
22 |
|
— |
|
22 |
Transition and merger expenses |
(2) |
|
— |
|
— |
|
— |
|
1 |
|
2 |
|
1 |
|
— |
|
1 |
Impairment of long-lived assets |
— |
|
— |
|
— |
|
— |
|
49 |
|
— |
|
49 |
|
— |
|
49 |
PJM capacity performance default impacts (c) |
— |
|
— |
|
14 |
|
— |
|
6 |
|
— |
|
20 |
|
— |
|
20 |
Winter Storm Uri impacts (d) |
(34) |
|
1 |
|
— |
|
— |
|
— |
|
— |
|
(33) |
|
— |
|
(33) |
Other, net |
6 |
|
(4) |
|
2 |
|
1 |
|
8 |
|
(17) |
|
(4) |
|
2 |
|
(2) |
Adjusted EBITDA |
$ (29) |
|
$ 383 |
|
$ 1 |
|
$ 46 |
|
$ 164 |
|
$ (11) |
|
$ 554 |
|
$ (41) |
|
$ 513 |
___________
(a) |
Includes |
(b) |
Includes nuclear fuel amortization of |
(c) |
Represents estimate of anticipated market participant defaults or settlements on initial PJM capacity performance penalties due to extreme magnitude of penalties associated with Winter Storm Elliott. |
(d) |
Adjusted EBITDA impacts of Winter Storm Uri reflects the application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri and a reduction in the allocation of |
|
|||||||||||
(Unaudited) (Millions of Dollars) |
|||||||||||
|
|||||||||||
|
Ongoing Operations |
|
Asset Closure |
|
Consolidated |
||||||
|
Low |
|
High |
|
Low |
|
High |
|
Low |
|
High |
Net income (loss) |
$ 2,030 |
|
|
|
$ (90) |
|
$ (90) |
|
$ 1,940 |
|
$ 2,340 |
Income tax expense |
550 |
|
650 |
|
— |
|
— |
|
550 |
|
650 |
Interest expense and related charges (a) |
980 |
|
980 |
|
— |
|
— |
|
980 |
|
980 |
Depreciation and amortization (b) |
2,130 |
|
2,130 |
|
— |
|
— |
|
2,130 |
|
2,130 |
EBITDA before Adjustments |
$ 5,690 |
|
|
|
$ (90) |
|
$ (90) |
|
$ 5,600 |
|
$ 6,100 |
Unrealized net (gain) loss resulting from hedging transactions |
(1,151) |
|
(1,151) |
|
(9) |
|
(9) |
|
(1,160) |
|
(1,160) |
Impacts of Tax Receivable Agreement |
(4) |
|
(4) |
|
— |
|
— |
|
(4) |
|
(4) |
Non-cash compensation expenses |
69 |
|
69 |
|
— |
|
— |
|
69 |
|
69 |
Transition and merger expenses |
8 |
|
8 |
|
— |
|
— |
|
8 |
|
8 |
Interest income |
(61) |
|
(61) |
|
— |
|
— |
|
(61) |
|
(61) |
Other, net |
(1) |
|
(1) |
|
4 |
|
4 |
|
3 |
|
3 |
Adjusted EBITDA guidance |
$ 4,550 |
|
|
|
$ (95) |
|
$ (95) |
|
$ 4,455 |
|
$ 4,955 |
Interest paid, net |
(910) |
|
(910) |
|
— |
|
— |
|
(910) |
|
(910) |
Tax (paid) / received (c) |
(89) |
|
(89) |
|
— |
|
— |
|
(89) |
|
(89) |
Tax Receivable Agreement payments |
(30) |
|
(30) |
|
— |
|
— |
|
(30) |
|
(30) |
Working capital and margin deposits |
439 |
|
439 |
|
— |
|
— |
|
439 |
|
439 |
Accrued environmental allowances |
459 |
|
459 |
|
— |
|
— |
|
459 |
|
459 |
Reclamation and remediation |
(31) |
|
(31) |
|
(95) |
|
(95) |
|
(126) |
|
(126) |
ERP implementation expenditures |
(50) |
|
(50) |
|
— |
|
— |
|
(50) |
|
(50) |
Other changes in other operating assets and liabilities |
(153) |
|
(153) |
|
(12) |
|
(12) |
|
(165) |
|
(165) |
Cash provided by operating activities |
$ 4,185 |
|
|
|
$ (202) |
|
$ (202) |
|
$ 3,983 |
|
$ 4,483 |
Capital expenditures including nuclear fuel purchases and LTSA prepayments |
(1,172) |
|
(1,172) |
|
— |
|
— |
|
(1,172) |
|
(1,172) |
Solar and storage development expenditures |
(745) |
|
(745) |
|
— |
|
— |
|
(745) |
|
(745) |
Acquisitions |
(3,192) |
|
(3,192) |
|
— |
|
— |
|
(3,192) |
|
(3,192) |
Other growth expenditures |
(74) |
|
(74) |
|
— |
|
— |
|
(74) |
|
(74) |
(Purchase)/sale of environmental allowances |
(291) |
|
(291) |
|
— |
|
— |
|
(291) |
|
(291) |
Other net investing activities |
11 |
|
11 |
|
— |
|
— |
|
11 |
|
11 |
Free cash flow |
|
|
$ (778) |
|
$ (202) |
|
$ (202) |
|
|
|
$ (980) |
Working capital and margin deposits |
(439) |
|
(439) |
|
— |
|
— |
|
(439) |
|
(439) |
Solar and storage development and other growth expenditures |
745 |
|
745 |
|
— |
|
— |
|
745 |
|
745 |
Acquisitions |
3,192 |
|
3,192 |
|
— |
|
— |
|
3,192 |
|
3,192 |
Other growth expenditures |
74 |
|
74 |
|
— |
|
— |
|
74 |
|
74 |
Accrued environmental allowances |
(459) |
|
(459) |
|
— |
|
— |
|
(459) |
|
(459) |
Purchase/(sale) of environmental allowances |
291 |
|
291 |
|
— |
|
— |
|
291 |
|
291 |
Transition and merger expenses |
24 |
|
24 |
|
2 |
|
2 |
|
26 |
|
26 |
ERP implementation expenditures |
50 |
|
50 |
|
— |
|
— |
|
50 |
|
50 |
Adjusted free cash flow before growth guidance |
$ 2,200 |
|
|
|
$ (200) |
|
$ (200) |
|
$ 2,000 |
|
$ 2,500 |
___________
1 Regulation G Table 2024 Guidance prepared as of |
|
(a) |
Includes unrealized (gain) / loss on interest rate swaps of |
(b) |
Includes nuclear fuel amortization of |
(c) |
Includes state tax payments. |
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