Slide 1: Fourth Quarter and Full Year 2020 Results
February 26, 2021 Fourth Quarter and Full Year 2020 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 2021 Winter Storm Uri Curt Morgan, Chief Executive Officer III 2020 Business Highlights Curt Morgan, Chief Executive Officer IV 2020 Financial Results Jim Burke, President and Chief Fi
Slide 5: 2021 Winter Storm Uri
2021 Winter Storm Uri Curt Morgan Chief Executive Officer V i s t ra I n v e s t o r P re s e n t a t io n / Q4 2020
Slide 6: Texas Winter Storm Uri
TEXAS WINTER STORM URI Winter storm Uri was an unprecedented weather event with February 14 -16, 2021 being the coldest 3-day stretch on record across all regions in Texas Unprecedented event • First time in history an emergency weather alert declared in all Texas counties • Temperatures reached low
Slide 7: Vistra Priorities
VISTRA PRIORITIES Vistra’s people worked around the clock, across the company and especially at our power plants, to provide as many megawatts as possible to Texans during last week’s unprecedented winter weather event Vistra Focus – Human Needs First • Maximize generation on the system – Procured g
Slide 8: 2021 Guidance Forthcoming
2021 GUIDANCE FORTHCOMING Vistra does not yet have sufficient information to provide an exact estimate of the one-time financial impact of the unprecedented winter storm hitting Texas last week; however, we expect the impact will be material Winter Storm Uri – Preliminary Financial Estimate • While
Slide 9: Next Steps and Takeaways
NEXT STEPS AND TAKEAWAYS Vistra believes the extreme nature of this extraordinary event is not representative of future perfor mance and that opportunities for market reform will prioritize ensuring future reliability Next Steps in ERCOT • A thorough evaluation of system response and areas of weakne
Slide 10: 2020 Business Highlights
2020 Business Highlights Curt Morgan Chief Executive Officer V i s t ra I n v e s t o r P re s e n t a t io n / Q4 2020
Slide 11: 2020 Key Takeaways
2020 KEY TAKEAWAYS Delivered on financial commitment – integrated operations beat guidance midpoint for 5th year in a row despite pandemic tail event in 2020 Repaid >$1.5 billion in debt and achieved long-term leverage target, with Net Debt to Adj. EBITDA of 2.5x as of year-end 2020 Grew premier
Slide 12: Delivering Financial Results
DELIVERING FINANCIAL RESULTS Through its proactive commercial management and continued focus on lean operations, Vistra outperformed its original guidance midpoint by nearly 10%, highlighting the strength and resilience of its integrated model 2020 Financial Results Ongoing Operations ($ millions) 2
Slide 13: Creating Value Through Execution
13 CREATING VALUE THROUGH EXECUTION Through financial discipline and a focus on execution, Vistra has created significant value for stakeholders—a trend it expects to continue in the years ahead EBITDA VALUE LEVERS VALUE CREATION ✓ Increasing Operations Performance ✓ Identified more than $1.5 billio
Slide 14: Prioritizing All Stakeholders
PRIORITIZING ALL STAKEHOLDERS Vistra’s purpose is to “Light up people’s lives, powering a better way forward.” Through our various sustainability initiatives, we strive to light up the lives of all our stakeholders while we transform our company and take actions to combat climate change EMPLOYEES AN
Slide 15: 2020 Financial Results
2020 Financial Results Jim Burke President and Chief Financial Officer V i s t ra I n v e s t o r P re s e n t a t io n / Q4 2020
Slide 16: 2020 Financial Results
2020 FINANCIAL RESULTS Vistra’s Adj. EBITDA from Ongoing Operations rose ~11% in 2020 as compared to 2019, reflecting strong execution by both the retail and generation teams in the face of the pandemic ONGOING OPERATIONS HIGHLIGHTS ADJUSTED EBITDA1 ($ millions) $3,766 Q4 2020 Ongoing Ops Adj. EBITD
Slide 17: Capital Allocation
CAPITAL ALLOCATION Vistra repaid >$1.5 billion in debt in 2020 and achieved its long -term leverage target of 2.5x Net Debt to Adj. EBITDA as of year -end 2020 2021 Capital Allocation Execution • Executed ~$125 million of $1.5 billion share repurchase program Share Repurchase through Feb. 23, 2021 P
Slide 18: Appendix
Appendix V i s t ra I n v e s t o r P re s e n t a t io n / Q4 2020
Slide 19: Sustainability: Environmental Stewardship
SUSTAINABILITY: ENVIRONMENTAL STEWARDSHIP Vistra plans to transform its generation portfolio through planned retirements of coal plants and investments in solar and batteries, and is targeting Net-Zero by 2050 GHG Emissions Reduction Targets (in MMtCO2e) ~4,000 MW 173 39% of zero-carbon generation o
Slide 20: Sustainability: Social Responsibility
SUSTAINABILITY: SOCIAL RESPONSIBILITY Vistra’s Purpose: Lighting up people’s lives, powering a better way forward DIVERSITY AND INCLUSION PEOPLE AND COMMUNITIES Board Composition • Raised nearly $2 million in annual 2020 United Way and TXU Energy Aid giving campaign 30% 20% 90% Independent Female Mi
Slide 21: Corporate Debt Profile
CORPORATE DEBT PROFILE ($ millions) 2020A Term Loan B and Funded Revolver $2,572 Senior Secured Notes 3,100 Senior Unsecured Notes 3,600 Accounts Receivable Securitization 300 Other1 116 Total Long-Term Debt $9,688 Less: cash and cash equivalents (406) Total Net Debt $9,282 Adjusted EBITDA (Ongoing
Slide 22: Select Debt Balances
SELECT DEBT BALANCES FUNDED DEBT TRANCHES As of December 31, 20201 ($ millions) Issuer Series Principal Outstanding Secured Debt Vistra Operations Senior Secured Term Loan B-3 due December 2025 $2,572 Vistra Operations 3.550% Senior Secured Notes due July 2024 1,500 Vistra Operations 3.700% Senior S
Slide 23: Capital Expenditures
CAPITAL EXPENDITURES PROJECTED CAPITAL EXPENDITURES1 ($ millions) 2020A 2021E Nuclear & Fossil Maintenance2,3 $738 $575 Nuclear Fuel 84 108 Non-Recurring4 22 9 Growth5 383 687 Total Capital Expenditures $1,228 $1,379 Non-Recurring4 (22) (9) Growth5 (383) (687) Adjusted Capital Expenditures $823 $683
Slide 24: Fourth Quarter Retail Metrics
FOURTH QUARTER RETAIL METRICS Q4 2020 RETAIL HIGHLIGHTS RETAIL VOLUME All markets (electric volumes in TWh) ✓ Grew residential customers year-over-year in Texas 20.1 20.8 ✓ Purchased and integrated Infinite and Veteran Energy 2.7 2.9 customer portfolios 10.7 10.9 ✓ Continued to effectively manage cu
Slide 25: Fourth Quarter Generation Metrics
FOURTH QUARTER GENERATION METRICS TOTAL GENERATION CAPACITY FACTOR (CCGT) TWhs Q4 2019 Q4 2020 2019 2020 % Q4 2019 Q4 2020 2019 2020 TEXAS 20.9 19.8 83.7 81.0 TEXAS 52% 45% 55% 49% EAST 14.0 14.3 55.6 55.9 EAST 58% 58% 58% 58% WEST 1.7 1.5 5.2 5.3 WEST 75% 68% 59% 59% SUNSET 7.7 9.3 34.4 30.0 Ong. O
Slide 26: Hedge Profile & Portfolio Sensitivities
HEDGE PROFILE & PORTFOLIO SENSITIVITIES Effective: 12/31/2020 2021 2022 TEXAS WEST EAST SUNSET TOTAL TEXAS WEST EAST SUNSET TOTAL Nuclear/Renewable/Coal Gen Position Expected Generation (TWh) 49 - - 36 85 45 - - 35 80 % Hedged 91% - - 98% 94% 46% - - 57% 51% Net Position 5 - - 1 5 25 - - 15 40 Sensi
Slide 27: Market Pricing
MARKET PRICING Effective: 12/31/2020 Jan-Dec'21 2022 Jan-Dec'21 2022 Power (ATC, $/MWh) Spark Spreads ($/mwhr) ERCOT North Hub $29.01 $25.50 Approx. Contribution ERCOT West Hub $25.63 $21.13 ERCOT PJM AD Hub $25.49 $26.80 ERCOT North Hub-Houston Ship Channel 90% $7.63 $4.76 PJM Ni Hub $22.92 $24.24
Slide 28: Capacity Positions
CAPACITY POSITIONS Effective: 12/31/2020 Segment Market Tenor MW Position Average Price PJM $/mw-day RTO 2020/20211 3,429 $75.44 2021/2022 3,328 $140.00 ComEd 2020/2021 1,451 $192.75 2021/2022 1,447 $202.70 MAAC 2020/2021 547 $116.74 2021/2022 548 $150.95 EMAAC 2020/2021 803 $193.90 2021/2022 798 $1
Slide 29: Capacity Positions
CAPACITY POSITIONS Effective: 12/31/2020 Segment Market Tenor MW Position Average Price CAISO1 2020 1,020 WEST 2021 1,020 2022 831 PJM $/mw-day RTO 2020/20211 1,936 $110.86 2021/2022 2,011 $126.76 ComEd 2020/2021 888 $221.66 SUNSET 2021/2022 1,067 $195.55 MISO2 $/kw-mo 2020/2021 2,672 $3.04 2021/202
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
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
Slide 32: 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
Slide 33: 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)
Slide 34: Non-GAAP Reconciliations – Q4 2019 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – Q4 2019 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS FOR THREE MONTHS ENDED DECEMBER 31, 2019 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Inc
Slide 35: Non-GAAP Reconciliations – 2019 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – 2019 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS FOR YEAR ENDED DECEMBER 31, 2019 (Unaudited) (Millions of Dollars) Eliminations / Ongoing Asset Vistra Retail Texas East West Sunset Corp. and Operations Closure Consolidated Other Consolidated Net Income (loss)
Slide 36: Non-GAAP Reconciliations – 2020 Adjusted FCFbG
NON-GAAP RECONCILIATIONS – 2020 ADJUSTED FCFbG VISTRA CORP. – NON-GAAP RECONCILIATIONS FOR YEAR ENDED DECEMBER 31, 2020 (Unaudited) (Millions of Dollars) Ongoing Operations Asset Closure Vistra Consolidated Adjusted EBITDA 3,766 (81) 3,685 Interest paid, net (a) (513) - (513) Taxes received, net of
Slide 37: End Slide
END SLIDE V i s t ra I n v e s t o r P re s e n t a t io n / Q4 2020