Vistra Corp. · NYSE:VST
Vistra — Vistra Energy — Q1 2017 Earnings Presentation
26 slides from Vistra's earnings presentation, May 18, 2017
Slide 1: Vistra Energy First Quarter 2017 Results
Vistra Energy First Quarter 2017 Results May 18, 2017
Slide 2: Safe Harbor Statements
Safe Harbor Statements Cautionary Note Regarding Forward-Looking Statements This presentation 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
Slide 3: Safe Harbor Statements, Continued
Safe Harbor Statements, Continued Information 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 describe
Slide 4: Agenda
Agenda Welcome and Safe Harbor Molly Sorg, Vice President, Investor Relations Q1 2017 Highlights and Operational Review Curt Morgan, President and Chief Executive Officer Retail Discussion Jim Burke, Chief Operating Officer Q1 2017 Financial Review Bill Holden, Chief Financial Officer Q&A 3
Slide 5: Q1 2017 Highlights & Operational Review
Q1 2017 Highlights & Operational Review Curt Morgan, President and Chief Executive Officer
Slide 6: Q1 2017 Highlights
Q1 2017 Highlights • Q1 2017 adjusted EBITDA of $276mm • Full Year 2017 adjusted EBITDA and adjusted Free Cash Flow guidance ranges reaffirmed • VST began trading on New York Stock Exchange May 10 • Realizing benefits of support organization restructuring and maintain on track to achieve future savi
Slide 7: Retail Highlights
Retail Highlights Residential Customer Counts1 (in thousands) 1,478 1,478 Q4 2016 Q1 2017 Q1 Retail Volumes (GWh) Continued Product Innovation • Launched “Free Nights and Solar Days” in May 4,220 4,128 combining its most popular Right Time Pricing PlanSM with solar energy for retail customers 4,228
Slide 8: Wholesale Highlights
Wholesale Highlights Strong Commercial Performance • Fossil Fleet Commercial Availability1 of 95% in the first quarter of 2017 • Consistent results from our commercial Balanced EBITDA Contribution2 operations team, with realized prices coming in nearly 55% higher than settled prices for $1,768 $1,66
Slide 9: ERCOT Market Highlights
ERCOT Market Highlights GW ERCOT Summer CDR ERCOT Current Topics 100.0 40.0% 87.0 87.9 87.9 • Waha Gas: 90.0 84.4 85.8 81.9 35.0% – Basis differential is temporary due to ease 80.0 75.2 73.4 74.3 of pipeline buildout 71.0 72.5 30.0% 70.4 70.0 – Market pricing is a heat rate fundamentals 25.0% 60.0 s
Slide 10: Retail Discussion
Retail Discussion Jim Burke, Chief Operating Officer
Slide 11: ERCOT is the Largest, Most Attractive Retail Market
ERCOT is the Largest, Most Attractive Retail Market Attractive ERCOT Retail Market Economics of the ERCOT Retail Business Represents ~31% of competitively served US retail load Retail businesses engage customers directly 75% of ERCOT’s load is in the competitive market, including 7mm meters (w
Slide 12: Leading Retail Platform Paired with Generation
Leading Retail Platform Paired with Generation Unique Position in Texas Highly Valued Retail Brand Complementary Generation Unique Integrated Model and Capabilities Market leading brand1 Commodity management expertise TXU Energy provides stability in varying − Integration with Luminant, power
Slide 13: Stable and Consistent Results
Stable and Consistent Results Largest Residential Market Share in ERCOT1 … … With Stable Customer Base… … Consistent Sales Volume… 23% (GWh) 21% 39,570 41,212 39,888 1,560 1,516 1,500 1,489 1,478 37,994 38,511 (4.0%) 16,287 15,203 16,601 19,289 18,784 11% (2.8%) 7% (1.1%) (0.7%) (0.7%) 5% 5% 4% 23,2
Slide 14: Q1 2017 Financial Review
Q1 2017 Financial Review Bill Holden, Chief Financial Officer
Slide 15: Financial Results
Financial Results Highlights Q1 2017 Performance • Q1 2017 adjusted EBITDA of $276mm1 Adjusted EBITDA – $96mm Luminant ($ in millions) – $177mm TXU Energy TXUE Luminant $2761 • Q1 weather had a negligible impact on Luminant due to hedges 96 • TXU Energy realized strong margin management in the quart
Slide 16: Vistra Hedge Profile
Vistra Hedge Profile Natural Gas Hedge Profile Heat Rate Hedge Profile 100% 92% 91% 85% 64% 52% 43% 3/1/17 4/21/17¹ 3/1/17 4/21/17¹ 35% 3/1/17 4/21/17 3/1/17 4/21/17 2017 2018 2017 2018 Natural Gas Margin Sensitivity2 Heat Rate Margin Sensitivity2 ($ in millions) ($ in millions) 2017 2018 2017 2018
Slide 17: Vistra Capital Structure
Vistra Capital Structure • Vistra’s capital structure provides financial flexibility and represents the lowest leverage among IPPs $ in millions 3/31/2017 2017E Long-term debt1 $4,586 $4,586 Pro forma term loan amortization and other debt repayments -- (32) Pro forma long-term debt $4,586 $4,554 Les
Slide 18: Q&A
VIeTDA ow Baw = ENERGY Q&A
Slide 19: Appendix
VICTRA ENERGY Appendix
Slide 20: ERCOT Market Pricing
ERCOT Market Pricing Monthly North Hub ATC Power Prices¹ Implied North Hub ATC Market Heat Rates August $46.91 $46.7 15.93 August 14.2616 $32.916 12.0416 $28.116 10.2616 12/31/16 3/1/17 12/31/16 3/1/17 Monthly Gas Prices (HSC)² Yearly Average Prices NHUB NHUB Gas - HSC PRB 8800 August ATC ATC HR 201
Slide 21: Luminant Asset Details
Luminant Asset Details Installed Environmental Control Equipment1 2017E Capacity Lignite Heat Rate FGD SNCR Bag- Plant (MW) Blend (btu/kWh) (Scrubber) ACI ESP / SCR house Big Brown 1,150 17% 10,761 SNCR 2 2 Monticello 1,880 0% 10,900 SNCR Martin Lake 2,250 52% 10,177 Sandow 4 557
Slide 22: Luminant Asset Details (continued)
Luminant Asset Details (continued) Capacity Facility (MW) COD Technology Decordova 260 1990 CT Simple Cycle Morgan Creek 390 1988 CT Permian Basin 325 1988 / 1990 CT Total Simple Cycle 975 Graham 630 1960 / 1969 ST Lake Hubbard 921 1970 / 1973 ST Steam Units Stryker Creek 685 1958 / 1965 ST Trinidad
Slide 23: Vistra Capital Expenditures
Vistra Capital Expenditures Capital Expenditures1 2015A-2017E ($ in millions) 2015A 2016A 2017E Nuclear Fuel 122 74 65 Nuclear & Fossil Maintenance 207 189 139 Environmental 82 62 20 IT, Corporate, and Other 44 27 35 Total Capital Expenditures 455 352 259 Non-recurring Capital Expenditures2 - - (10)
Slide 24: Reg G Reconciliation – Adjusted EBITDA
Reg G Reconciliation – Adjusted EBITDA 23
Slide 25: Reg G Reconciliation – Adjusted FCF
Reg G Reconciliation – Adjusted FCF 24
Slide 26: Reg G Reconciliation – 2017 Guidance
Reg G Reconciliation – 2017 Guidance 25