Vistra Corp. · NYSE:VST

Vistra — FY2021 Earnings Presentation

42 slides from Vistra's earnings presentation, Feb 25, 2022

  1. Slide 1: Fourth Quarter and Full Year 2021 Results

    February 25, 2022 Fourth Quarter and Full Year 2021 R E S U LT S

  2. 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

  3. 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

  4. Slide 4: Agenda

    AGENDA I Welcome and Safe Harbor Meagan Horn, VP Investor Relations, Sustainability and Purpose II 2021 Highlights Curt Morgan, Chief Executive Officer III Financial Highlights Jim Burke, President and Chief Financial Officer Vi s tra Inv es tor Pres en t a ti o n / Q4 2021 4

  5. Slide 5: 2021 Highlights

    2021 Highlights Curt Morgan Chief Executive Officer Vi s tra Inv es tor Pres en t a ti o n / Q4 2021

  6. Slide 6: 2021 Key Takeaways

    2021 KEY TAKEAWAYS  Achieved narrowed and raised November guidance; strong recovery from Uri and back on track  Returned significant capital to shareholders through share buyback program and dividends, financed in part through $1 billion low-cost October preferred stock issuance Issued $1 billion

  7. Slide 7: 2021 Financial Highlights

    2021 FINANCIAL HIGHLIGHTS 2021 Financial Results Ongoing Operations ($ millions) Adjusted EBITDA1 Before Bill Credit Settlement $1,994 High IRR Early Bill Credit Settlements $(53) Adjusted EBITDA1 $1,941 • Ongoing Operations Adjusted EBITDA is at midpoint of November guidance of $1,990 million when

  8. Slide 8: Delivering on Our Strategic Priorities

    DELIVERING ON OUR STRATEGIC PRIORITIES In 2021, we identified and delivered on four key strategic imperatives as part of our long-term capital allocation plan RETURNING CAPITAL ZERO-CARBON GROWTH ✓ $764 million in share Expected to grow Vistra Zero to ~7,300 MW2 by 2026, financed in part with $1 bil

  9. Slide 9: Leading the Way in the Clean Power Transition

    LEADING THE WAY IN THE CLEAN POWER TRANSITION Our Vistra Zero project pipeline provides a significantly contracted path forward in the clean power transition with a continued focus on EBITDA growth and shareholder returns California: Line of Sight to up to ~2,040 MW of Energy Storage 300 MW Moss Pha

  10. Slide 10: Financial Highlights

    Financial Highlights Jim Burke Chief Financial Officer Vi s tra Inv es tor Pres en t a ti o n / Q4 2021

  11. Slide 11: Q4 2021 Financial Results

    Q4 2021 FINANCIAL RESULTS Vistra’s integrated operations continued to execute well, delivering solid results despite the financial impact from Winter Storm Uri; back on track in 2022 ONGOING OPERATIONS ADJUSTED EBITDA1 HIGHLIGHTS ($ millions) $3,766 Q4 2021 Ongoing Ops Adj. EBITDA1: $1,165 million •

  12. Slide 12: Capital Allocation

    CAPITAL ALLOCATION Vistra is executing on its long-term capital allocation plan announced in third quarter 2021, which reflects an expected return of capital of at least $7.5 billion to its common stockholders through year end 2026 1 2022 Capital Allocation Plan • Executed ~$764 million of the autho

  13. Slide 13: Appendix

    Appendix Vi s tra Inv es tor Pres en t a ti o n / Q4 2021

  14. Slide 14: Vistra Zero

    Vistra Zero Vi s tra Inv es tor Pres en t a ti o n / Q4 2021 14

  15. Slide 15: Vistra Zero Portfolio

    VISTRA ZERO PORTFOLIO Projects listed below represent only planned projects that have been announced. Vistra expects to grow the portfolio to ~7,300 MW by 2026 Capacity Asset Location ISO Status In-Service Year1 (MW) NUCLEAR Comanche Peak Glen Rose, TX ERCOT 2,300 Online 1990 SOLAR Upton 2 Upton Cou

  16. Slide 16: DeCordova

    DECORDOVA DeCordova is a 260 MW / 260 MWh energy storage system co-located at Luminant's natural gas-fueled DeCordova Power Plant Vi s tra Inv es tor Pres en t a ti o n / Q4 2021 16

  17. Slide 17: Brightside and Emerald Grove

    BRIGHTSIDE AND EMERALD GROVE Brightside and Emerald Grove bring a combined 158 MW of solar capacity to the ERCOT grid Emerald Grove Brightside Vi s tra Inv es tor Pres en t a ti o n / Q4 2021 17

  18. Slide 18: Moss Landing Energy Storage Facility

    MOSS LANDING ENERGY STORAGE FACILITY Phase III of the Moss Landing Energy Storage Facility brings the site's total energy storage capacity to 750 MW/3,000 MWh Vi s tra Inv es tor Pres en t a ti o n / Q4 2021 18

  19. Slide 19: Quarterly Business Disclosures

    Quarterly Business Disclosures Vi s tra Inv es tor Pres en t a ti o n / Q4 2021 19

  20. Slide 20: 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 EMISSIONS REDUCTIONS PORTFOLIO TRANSFORMATION 60% by ~2,900 MW1 Scope 1 and Scope 2 GHG Emissions (in MMtCO

  21. Slide 21: 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

  22. Slide 22: Corporate Debt Profile

    CORPORATE DEBT PROFILE A strong balance sheet is core to Vistra’s strategy. Vistra believes it can maintain financial strength with leverage in the range of ~3 -3.5x net debt to Adj. EBITDA in the near-term as we approach less than 3x ($ millions) Q3 2021 YE 2021 Term Loan B $2,550 $2,543 Senior Sec

  23. Slide 23: Select Debt Balances

    SELECT DEBT BALANCES FUNDED DEBT TRANCHES As of December 31, 20211 ($ millions) Issuer Series Principal Outstanding Secured Debt Vistra Operations Senior Secured Term Loan B-3 due December 2025 $2,543 Vistra Operations 3.550% Senior Secured Notes due July 2024 1,500 Vistra Operations 3.700% Senior S

  24. Slide 24: Capital Expenditures

    CAPITAL EXPENDITURES PROJECTED CAPITAL EXPENDITURES1 ($ millions) 2021A 2022E Nuclear & Fossil Maintenance2,3 $518 $570 Nuclear Fuel 41 117 Non-Recurring4 35 72 Solar & Energy Storage Development5 386 1,002 Other Growth6 13 53 Total Capital Expenditures $993 $1,814 Non-Recurring4 (35) (72) Solar & E

  25. Slide 25: Fourth Quarter Retail Metrics

    FOURTH QUARTER RETAIL METRICS Q4 2021 RETAIL HIGHLIGHTS RETAIL VOLUME All markets (electric volumes in TWh) ✓ Grew residential customer counts in Texas in Q4 and on a full year basis with strong customer satisfaction results 20.8 21.3 2.9 2.6 ✓ TXU Energy finished Q4 with a 5-star rating on the PUC

  26. Slide 26: Fourth Quarter Generation Metrics

    FOURTH QUARTER GENERATION METRICS TOTAL GENERATION CAPACITY FACTOR (CCGT) TWhs Q4 2020 Q4 2021 FY 2020 FY 2021 % Q4 2020 Q4 2021 FY 2020 FY 2021 TEXAS 19.8 18.0 81.0 76.3 TEXAS 45% 44% 49% 43% EAST 14.3 14.6 55.9 55.4 EAST 58% 60% 58% 58% WEST 1.5 1.4 5.3 5.4 WEST 68% 61% 59% 60% SUNSET 9.3 8.4 30.0

  27. Slide 27: Hedge Profile & Portfolio Sensitivities

    HEDGE PROFILE & PORTFOLIO SENSITIVITIES Effective: 12/31/2021 2022 2023 TEXAS WEST EAST SUNSET TOTAL TEXAS WEST EAST SUNSET TOTAL Nuclear/Renewable/Coal Gen Position Expected Generation (TWh) 48 - - 28 75 46 - - 22 68 % Hedged 90% - - 98% 93% 55% - - 47% 52% Net Position 5 - - 1 5 21 - - 12 32 Sensi

  28. Slide 28: Market Pricing

    MARKET PRICING Effective: 12/31/2021 2022 2023 2022 2023 Power (ATC, $/MWh) Spark Spreads ($/mwhr) ERCOT North Hub $40.37 $35.55 Approx. Contrib ution ERCOT West Hub $35.36 $29.60 ERCOT PJM AD Hub $40.71 $38.64 ERCOT North Hub-Houston Ship Channel 90% $12.25 $8.99 PJM Ni Hub $36.03 $34.31 ERCOT West

  29. Slide 29: Capacity Positions

    CAPACITY POSITIONS Effective: 12/31/2021 MW Average MW Average Segment Market Tenor Segment Market Tenor Position Price Position Price PJM1 $/mw-day CAISO RTO 2021/2022 3,466 $136.91 WEST 2022 1,287 2022/2023 2,967 $50.00 2023 1,275 ComEd 2021/2022 1,415 $206.84 PJM $/mw-day 2022/2023 1,254 $68.96 R

  30. Slide 30: 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

  31. Slide 31: 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

  32. Slide 32: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Vi s tra Inv es tor Pres en t a ti o n / Q4 2021 32

  33. Slide 33: Non-GAAP Reconciliations – Q4 2021 Adjusted EBITDA

    NON-GAAP RECONCILIATIONS – Q4 2021 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS THREE MONTHS ENDED DECEMBER 31, 2021 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Income

  34. Slide 34: Non-GAAP Reconciliations – Q4 2021 Adjusted EBITDA

    NON-GAAP RECONCILIATIONS – Q4 2021 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS THREE MONTHS ENDED DECEMBER 31, 2021 FOOTNOTES (Unaudited) (Millions of Dollars) (a) Includes $42 million of unrealized mark-to-market net gains on interest rate swaps. (b) Includes nuclear fuel amortization o

  35. Slide 35: Non-GAAP Reconciliations – 2021 Adjusted EBITDA

    NON-GAAP RECONCILIATIONS – 2021 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS FOR YEAR ENDED DECEMBER 31, 2021 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Income (loss)

  36. Slide 36: Non-GAAP Reconciliations – 2021 Adjusted EBITDA

    NON-GAAP RECONCILIATIONS – 2021 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS YEAR ENDED DECEMBER 31, 2021 FOOTNOTES (Unaudited) (Millions of Dollars) (a) Includes $134 million of unrealized mark-to-market net gains on interest rate swaps. (b) Includes nuclear fuel amortization of $78 mill

  37. Slide 37: Non-GAAP Reconciliations – Q4 2020 Adjusted EBITDA

    NON-GAAP RECONCILIATIONS – Q4 2020 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS THREE MONTHS ENDED DECEMBER 31, 2020 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Income

  38. Slide 38: Non-GAAP Reconciliations – 2020 Adjusted EBITDA

    NON-GAAP RECONCILIATIONS – 2020 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS FOR YEAR ENDED DECEMBER 31, 2020 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Income (loss)

  39. Slide 39: Non-GAAP Reconciliations – 2021 Adjusted FCFbG

    NON-GAAP RECONCILIATIONS – 2021 ADJUSTED FCFbG VISTRA CORP. – NON-GAAP RECONCILIATIONS FOR YEAR ENDED DECEMBER 31, 2021 (Unaudited) (Millions of Dollars) Ongoing Operations Asset Closure Vistra Consolidated Adjusted EBITDA 1,941 (33) 1,908 Interest paid, net (a) (506) - (506) Taxes received, net of

  40. Slide 40: Non-GAAP Reconciliations – 2022 Guidance

    NON-GAAP RECONCILIATIONS – 2022 GUIDANCE VISTRA CORP. – NON-GAAP RECONCILIATIONS 2022 GUIDANCE1 (Unaudited) (Millions of Dollars) Ongoing Operations Asset Closure Vistra Consolidated Low High Low High Low High Net Income (loss) 1,027 1,401 (140) (40) 887 1,361 Income tax expense 301 427 - - 301 427

  41. Slide 41: Non-GAAP Reconciliations – 2022 Guidance

    NON-GAAP RECONCILIATIONS – 2022 GUIDANCE VISTRA CORP. – NON-GAAP RECONCILIATIONS 2022 GUIDANCE1 FOOTNOTES (Unaudited) (Millions of Dollars) 1 Regulation G Table for 2022 Guidance prepared as of November 5, 2021. (a) Includes unrealized (gain) / loss on interest rate swaps of ($50) million. (b) Inclu

  42. Slide 42: End Slide

    END SLIDE Vi s tra Inv es tor Pres en t a ti o n / Q4 2021

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