Slide 1: Second Quarter 2021 Results
August 5, 2021 Second Quarter 2021 R E S U LT S
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS 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, esti
Slide 3: Safe Harbor Statements (Cont'd)
SAFE HARBOR STATEMENTS (CONT’D) 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 tim
Slide 4: Agenda
AGENDA I Welcome and Safe Harbor Molly Sorg, SVP Investor Relations and Chief Purpose and Sustainability Officer II Highlights Curt Morgan, Chief Executive Officer III Financial Results Jim Burke, President and Chief Financial Officer Vi s tra Inv es tor Pres en t a ti o n / Q2 2021 4
Slide 5: Highlights
Highlights Curt Morgan Chief Executive Officer Vi s tra Inv es tor Pres en t a ti o n / Q2 2021
Slide 6: Q2 2021 Financial Results
Q2 2021 FINANCIAL RESULTS Vistra’s integrated operations performed well across all markets in the second quarter with the business tracking toward its full year 2021 financial guidance Q2 2021 Financial Results Ongoing Operations ($ millions) Excluding Winter Reported Storm Uri Q2 2021 Adjusted EBIT
Slide 7: Forward Curve Movement
FORWARD CURVE MOVEMENT The rise in 2022 and 2023 forward power price curves in both ERCOT and PJM provide Vistra the opportunity to hedge at attractive prices, optimizing the value of our fleet and locking in future earnings power ERCOT North 7x24 Power Prices PJM WH 7x24 Power Prices ($/MWh) ($/MWh
Slide 8: Risk Profile Significantly Improved
RISK PROFILE SIGNIFICANTLY IMPROVED Vistra has implemented a series of steps to significantly improve positioning for future weather-driven volatility events; Texas legislation and ERCOT market reforms are expected to further improve the risk profile and enhance the attractiveness of the market for
Slide 9: Financial Results
Financial Results Jim Burke President and Chief Financial Officer Vi s tra Inv es tor Pres en t a ti o n / Q2 2021
Slide 10: Q2 2021 Financial Results
Q2 2021 FINANCIAL RESULTS Vistra is on track toward its full year 2021 financial guidance and, excluding Uri, Vistra’s performance would be tracking in-line to ahead of its original guidance midpoint ONGOING OPERATIONS HIGHLIGHTS ADJUSTED EBITDA1 ($ millions) Q2 2021 Ongoing Ops Adj. EBITDA1: $825 m
Slide 11: Capital Allocation
CAPITAL ALLOCATION The impacts from Winter Storm Uri will limit Vistra’s capital deployment in 2021; Vistra expects it will return to a robust and diverse capital allocation plan in 2022+ 2021 Capital Allocation Plan Dividend1 • Expected annual dividend of $0.60/share • Vistra’s net debt increased b
Slide 12: Appendix
Appendix Vi s tra Inv es tor Pres en t a ti o n / Q2 2021
Slide 13: Sustainability: Environmental Stewardship
SUSTAINABILITY: ENVIRONMENTAL STEWARDSHIP Vistra is targeting Net-Zero by 2050 and is advancing its transformation via planned retirements of coal plants and investments in solar and batteries Scope 1 and Scope 2 GHG Emissions Reduction Targets ~4,000 MW (in MMtCO2e) of zero-carbon generation online
Slide 14: Sustainability: Social Responsibility & Governance
SUSTAINABILITY: SOCIAL RESPONSIBILITY & GOVERNANCE Vistra’s Purpose: Lighting up people’s lives, powering a better way forward PEOPLE AND COMMUNITIES GOVERNANCE Diversity, Equity, and Inclusion • Oversight of Vistra’s ESG initiatives is governed by the full Vistra board, with oversight of subject ma
Slide 15: Corporate Debt Profile
CORPORATE DEBT PROFILE ($ millions) Q2 2021 YE 2021E Term Loan B and Funded Revolver $2,557 $2,543 Senior Secured Notes 3,100 3,100 Senior Unsecured Notes 4,850 3,8501 Accounts Receivable Financings 661 750 Other2 568 400 Total Long-Term Debt $11,736 $10,643 Less: cash and cash equivalents (444) (40
Slide 16: Select Debt Balances
SELECT DEBT BALANCES FUNDED DEBT TRANCHES As of June 30, 20211 ($ millions) Issuer Series Principal Outstanding Secured Debt Vistra Operations Senior Secured Term Loan B-3 due December 2025 $2,557 Vistra Operations 3.550% Senior Secured Notes due July 2024 1,500 Vistra Operations 3.700% Senior Secur
Slide 17: Capital Expenditures
CAPITAL EXPENDITURES PROJECTED CAPITAL EXPENDITURES1 ($ millions) 2021E Nuclear & Fossil Maintenance2,3 $575 Nuclear Fuel 53 Non-Recurring4 60 Growth5 428 Total Capital Expenditures $1,116 Non-Recurring4 (60) Growth5 (428) Adjusted Capital Expenditures $627 1 Capital summary for 2021 prepared as of
Slide 18: Second Quarter Retail Metrics
SECOND QUARTER RETAIL METRICS Q2 2021 RETAIL HIGHLIGHTS RETAIL VOLUME All markets (electric volumes in TWh) Grew residential customer counts year-over-year and quarter-over-quarter in ERCOT through our multi-brand 22.1 and channel strategy 21.5 3.8 2.5 Ambit successfully launched first to market
Slide 19: Second Quarter Generation Metrics
SECOND QUARTER GENERATION METRICS TOTAL GENERATION CAPACITY FACTOR (CCGT) TWhs Q2 2020 Q2 2021 YTD 2020 YTD 2021 % Q2 2020 Q2 2021 YTD 2020 YTD 2021 TEXAS 18.2 17.3 37.9 35.3 TEXAS 42% 38% 47% 38% EAST 12.3 12.1 25.4 26.0 EAST 51% 50% 53% 55% WEST 0.9 1.1 2.4 2.4 WEST 40% 49% 54% 53% SUNSET 5.4 8.6
Slide 20: Hedge Profile & Portfolio Sensitivities
HEDGE PROFILE & PORTFOLIO SENSITIVITIES Effective: 6/30/2021 Balance of 2021 2022 TEXAS WEST EAST SUNSET TOTAL TEXAS WEST EAST SUNSET TOTAL Nuclear/Renewable/Coal Gen Position Expected Generation (TWh) 25 - - 23 48 47 - - 34 81 % Hedged 95% - - 95% 95% 75% - - 82% 78% Net Position 1 - - 1 2 12 - - 6
Slide 21: Market Pricing
MARKET PRICING Effective: 6/30/2021 Jul-Dec'21 2022 Jul-Dec'21 2022 Power (ATC, $/MWh) Spark Spreads ($/mwhr) ERCOT North Hub $46.91 $39.30 Approx. Contribution ERCOT West Hub $43.18 $35.22 ERCOT PJM AD Hub $34.65 $31.99 ERCOT North Hub-Houston Ship Channel 90% $17.77 $13.56 PJM Ni Hub $31.76 $29.00
Slide 22: Capacity Positions
CAPACITY POSITIONS Effective: 6/30/2021 MW Average MW Average Segment Market Tenor Segment Market Tenor Position Price Position Price PJM $/mw-day CAISO4 RTO 2020/20211 3,429 $75.44 WEST 2021 1,221 2021/2022 3,466 $136.91 2022 1,420 2022/2023 3,066 $50.70 PJM $/mw-day ComEd 2020/2021 1,451 $192.75 R
Slide 23: Asset Fleet Details
ASSET FLEET DETAILS Net Capacity Ownership Asset Location ISO Technology Primary Fuel (MW)1 Interest2 Ennis Ennis, TX ERCOT CCGT Gas 366 100% Forney Forney, TX ERCOT CCGT Gas 1,912 100 Hays San Marcos, TX ERCOT CCGT Gas 1,047 100 Lamar Paris, TX ERCOT CCGT Gas 1,076 100 Midlothian Midlothian, TX ERC
Slide 24: Asset Fleet Details (Cont'd)
ASSET FLEET DETAILS (CONT’D) Net Capacity Ownership Asset Location ISO Technology Primary Fuel (MW)1 Interest2 Independence Oswego, NY NYISO CCGT Gas 1,212 100% Bellingham Bellingham, MA ISO-NE CCGT Gas 566 100 Blackstone Blackstone, MA ISO-NE CCGT Gas 544 100 Casco Bay Veazie, ME ISO-NE CCGT Gas 54
Slide 25: Non-GAAP Reconciliations – Q2 2021 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – Q2 2021 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS THREE MONTHS ENDED JUNE 30, 2021 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Income (los
Slide 26: Non-GAAP Reconciliations – Q2 2021 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – Q2 2021 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS THREE MONTHS ENDED JUNE 30, 2021 FOOTNOTES (Unaudited) (Millions of Dollars) (a) Includes $9 million of unrealized mark-to-market net losses on interest rate swaps. (b) Includes nuclear fuel amortization of $2
Slide 27: Non-GAAP Reconciliations – Q2 2020 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – Q2 2020 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS THREE MONTHS ENDED JUNE 30, 2020 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Income (los
Slide 28: Non-GAAP Reconciliations – 1H 2021 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – 1H 2021 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS SIX MONTHS ENDED JUNE 30, 2021 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Income (loss)
Slide 29: Non-GAAP Reconciliations – 1H 2021 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – 1H 2021 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS SIX MONTHS ENDED JUNE 30, 2021 FOOTNOTES (Unaudited) (Millions of Dollars) (a) Includes $79 million of unrealized mark-to-market net gains on interest rate swaps. (b) Includes nuclear fuel amortization of $40
Slide 30: Non-GAAP Reconciliations – 1H 2020 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – 1H 2020 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS SIX MONTHS ENDED JUNE 30, 2020 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Income (loss)
Slide 31: Non-GAAP Reconciliations – 2021 Guidance
NON-GAAP RECONCILIATIONS – 2021 GUIDANCE VISTRA CORP. – NON-GAAP RECONCILIATIONS 2021 GUIDANCE1 (Unaudited) (Millions of Dollars) Ongoing Operations Asset Closure Vistra Consolidated Low High Low High Low High Net Income (loss) (1,083) (771) (126) (106) (1,209) (877) Income tax benefit (274) (186) -
Slide 32: Non-GAAP Reconciliations – 2021 Guidance
NON-GAAP RECONCILIATIONS – 2021 GUIDANCE VISTRA CORP. – NON-GAAP RECONCILIATIONS 2021 GUIDANCE1 FOOTNOTES (Unaudited) (Millions of Dollars) 1 Regulation G Table for 2021 Guidance prepared as of April 26, 2021. (a) Includes unrealized gain on interest rate swaps of $101 million. (b) Includes nuclear
Slide 33: End Slide
END SLIDE Vi s tra Inv es tor Pres en t a ti o n / Q2 2021