Slide 1: Third Quarter 2020 Results
November 4, 2020 Third Quarter 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, VP Investor Relations and Chief Sustainability Officer II Highlights Curt Morgan, President and Chief Executive Officer III Business Updates Scott Hudson, Executive Vice President and President of Retail IV Financial Results David Campbell, Executive Vice
Slide 5: Highlights
Highlights Curt Morgan President and Chief Executive Officer V i s t ra I nv es t or P res ent at ion / Q3 2020
Slide 6: Q3 2020 Financial Results
Q3 2020 FINANCIAL RESULTS Vistra is on track to exceed its raised guidance midpoint in 2020— its fifth consecutive year of exceeding guidance —and is well-positioned to continue to deliver consistently strong, long -term earnings Q3 2020 Financial Results Ongoing Operations ($ millions) Q3 2020 Adju
Slide 7: Reaffirming 2021 Guidance
REAFFIRMING 2021 GUIDANCE Vistra has continued to execute since its virtual investor event in September, increasing our confidence in our 2021 guidance and supporting the view that the upper end of the 2021 guidance range is achievable 2021 Guidance Reaffirmed Ongoing Operations ($ millions) Adjuste
Slide 8: Vistra Transformation
VISTRA TRANSFORMATION Evolution to 2020 2030 2040 Revolutionized the Integrated Model Sustainable Transformation Leading Renewable Provider Built a foundation that prioritizes a Market-leading integrated platform Leader in renewable generation, strong balance sheet and low cost, powering America thr
Slide 9: Business Updates
Business Updates Scott Hudson President of Retail V i s t ra I nv es t or P res ent at ion / Q3 2020
Slide 10: Vistra Retail
VISTRA RETAIL Retail continues to provide stability and strong financial results for the integrated model. We expect to continue to grow our portfolio both organically and through opportunistic acquisitions, as well as to strengthen our customer relationships via value -added offerings INDUSTRY LEAD
Slide 11: Financial Results
Financial Results David Campbell Chief Financial Officer V i s t ra I nv es t or P res ent at ion / Q3 2020
Slide 12: Q3 2020 Financial Results
Q3 2020 FINANCIAL RESULTS With three quarters of outperformance relative to expectations in 2020, we believe Vistra is well-positioned to deliver strong full-year results ONGOING OPERATIONS HIGHLIGHTS ADJUSTED EBITDA1 ($ millions) Q3 2020 Ongoing Ops Adj. EBITDA1: $1,185 million • $108 million highe
Slide 13: Capital Allocation
CAPITAL ALLOCATION Vistra’s high conversion of EBITDA to free cash flow enables a flexible and diverse capital allocation approach with >$6 billion of capital returned to financial stakeholders to date and an average of ~$1.5 billion per year expected to be returned prospectively 2020 2021 - 2022 •
Slide 14: Appendix
Appendix V i s t ra I nv es t or P res ent at ion / Q3 2020
Slide 15: Sustainability: Environmental Stewardship
SUSTAINABILITY: ENVIRONMENTAL STEWARDSHIP COMMITMENT TO CLIMATE CHANGE ADVOCACY ✓ GHG Emissions Reduction Targets ✓ Advocates for action in response to climate change, supporting an economy-wide, adequately priced carbon 2030: 60% reduction vs. 2010 baseline fee and dividend plan with a border carbo
Slide 16: Sustainability: Social Responsibility
SUSTAINABILITY: SOCIAL RESPONSIBILITY DIVERSITY AND INCLUSION PEOPLE AND COMMUNITIES ✓ Governance Enhancements ✓ Pursue a Just Transition • Formalized Board of Director’s oversight of Vistra’s social • Minimize the social impacts from closures of power plants responsibility initiatives, including di
Slide 17: Sustainability: COVID-19 Response
SUSTAINABILITY: COVID-19 RESPONSE HEALTH OF EMPLOYEES AND LOCAL COMMUNITIES CONTRACTORS ✓ Preventative Health Measures $2 MILLION DONATED • Onsite temperature testing and entry questionnaires to over 100 AGENCIES • Require proper personal protective equipment, including in over 50 STATES facial cove
Slide 18: Corporate Debt Profile
CORPORATE DEBT PROFILE ($ millions) Q3 2020 2020E Term Loan B and Funded Revolver1 $2,579 $2,572 Senior Secured Notes 3,100 3,100 Senior Unsecured Notes2 3,600 3,600 Other3 789 573 Total Long-Term Debt $10,068 $9,845 Less: cash and cash equivalents4 (500) (500) Total Net Debt $9,568 $9,345 Adjusted
Slide 19: Select Debt Balances
SELECT DEBT BALANCES FUNDED DEBT TRANCHES As of September 30, 20201 ($ millions) Issuer Series Principal Outstanding Secured Debt Vistra Operations Senior Secured Term Loan B-3 due December 2025 $2,579 Vistra Operations 3.550% Senior Secured Notes due July 2024 1,500 Vistra Operations 3.700% Senior
Slide 20: Capital Expenditures
CAPITAL EXPENDITURES PROJECTED CAPITAL EXPENDITURES1 ($ millions) 2020E 2021E Nuclear & Fossil Maintenance2,3 $641 $575 Nuclear Fuel 83 108 Non-Recurring4 23 9 Growth5 377 687 Total Capital Expenditures $1,124 $1,379 Non-Recurring4 (23) (9) Growth5 (377) (687) Adjusted Capital Expenditures $725 $683
Slide 21: Third Quarter Retail Metrics
THIRD QUARTER RETAIL METRICS Q3 2020 RETAIL HIGHLIGHTS RETAIL VOLUME All markets (electric volumes in TWh) ✓ Financial results outperformed expectations driven by 27.7 cost management and strong margin results despite the 24.4 4.8 mildest September in Texas in the past 15 years 3.4 ✓ Grew residentia
Slide 22: Third Quarter Generation Metrics
THIRD QUARTER GENERATION METRICS TOTAL GENERATION CAPACITY FACTOR (CCGT) TWhs Q3 2019 Q3 2020 YTD 2019 YTD 2020 % Q3 2019 Q3 2020 YTD 2019 YTD 2020 TEXAS 26.2 24.2 65.2 62.8 TEXAS 70% 59% 56% 51% EAST 15.5 16.2 41.6 41.7 EAST 64% 66% 58% 58% WEST 1.3 1.3 3.5 3.7 WEST 59% 60% 53% 56% SUNSET 8.7 8.7 2
Slide 23: Hedge Profile & Portfolio Sensitivities
HEDGE PROFILE & PORTFOLIO SENSITIVITIES Effective: 9/30/2020 Balance 2020 2021 TEXAS WEST EAST SUNSET TOTAL TEXAS WEST EAST SUNSET TOTAL Nuclear/Renewable/Coal Gen Position Expected Generation (TWh) 13 - - 10 23 52 - - 36 87 % Hedged 100% - - 100% 100% 86% - - 92% 88% Net Position 0 - - 0 0 7 - - 3
Slide 24: Market Pricing
MARKET PRICING Effective: 9/30/2020 Oct-Dec'20 2021 Oct-Dec'20 2021 Power (ATC, $/MWh) Spark Spreads ($/mwhr) ERCOT North Hub $21.32 $31.05 Approx. Contribution ERCOT West Hub $18.76 $28.87 ERCOT PJM AD Hub $24.56 $27.79 ERCOT North Hub-Houston Ship Channel 90% $0.47 $8.09 PJM Ni Hub $21.47 $24.60 E
Slide 25: Capacity Positions
CAPACITY POSITIONS 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 $171.02 ATSI 2020/2021 1
Slide 26: Asset Fleet Details
ASSET FLEET DETAILS Net Capacity Ownership Asset Location ISO Technology Primary Fuel (MW)1 Interest2 Forney Forney, TX ERCOT CCGT Gas 1,912 100% Lamar Paris, TX ERCOT CCGT Gas 1,076 100 Odessa Odessa, TX ERCOT CCGT Gas 1,054 100 Ennis Ennis, TX ERCOT CCGT Gas 366 100 Hays San Marcos, TX ERCOT CCGT
Slide 27: 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 28: Non-GAAP Reconciliations – Q3 2020 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – Q3 2020 ADJUSTED EBITDA VISTRA CORP – NON-GAAP RECONCILIATIONS THREE MONTHS ENDED SEPTEMBER 30, 2020 (Unaudited) (Millions of Dollars) Ongoing Eliminations / Asset Vistra Retail Texas East West Sunset Operations Corp. and Other Closure Consolidated Consolidated Net Income
Slide 29: Non-GAAP Reconciliations – YTD 2020 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – YTD 2020 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS NINE MONTHS ENDED SEPTEMBER 30, 2020 (Unaudited) (Millions of Dollars) Ongoing Eliminations / Asset Vistra Retail Texas East West Sunset Operations Corp. and Other Closure Consolidated Consolidated Net Income
Slide 30: Non-GAAP Reconciliations – Q3 2019 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – Q3 2019 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS THREE MONTHS ENDED SEPTEMBER 30, 20191 (Unaudited) (Millions of Dollars) Ongoing Eliminations / Asset Vistra Retail Texas East West Sunset Operations Corp. and Other Closure Consolidated Consolidated Net Incom
Slide 31: Non-GAAP Reconciliations – YTD 2019 Adjusted EBITDA
NON-GAAP RECONCILIATIONS – YTD 2019 ADJUSTED EBITDA VISTRA CORP. – NON-GAAP RECONCILIATIONS NINE MONTHS ENDED SEPTEMBER 30, 20191 (Unaudited) (Millions of Dollars) Ongoing Eliminations / Asset Vistra Retail Texas East West Sunset Operations Corp. and Other Closure Consolidated Consolidated Net Incom
Slide 32: Non-GAAP Reconciliations – 2020 Guidance
NON-GAAP RECONCILIATIONS – 2020 GUIDANCE VISTRA CORP. – NON-GAAP RECONCILIATIONS 2020 GUIDANCE1 (Unaudited) (Millions of Dollars) Ongoing Operations Asset Closure Vistra Consolidated Low High Low High Low High Net Income (loss) 897 1,053 (87) (77) 810 976 Income tax expense 249 293 - - 249 293 Inter
Slide 33: 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) 607 920 (80) (60) 527 860 Income tax expense 195 283 - - 195 283 Interes
Slide 34: End Slide
END SLIDE V i s t ra I nv es t or P res ent at ion / Q3 2020