Slide 1: Vistra Energy 2016 Results
Vistra Energy 2016 Results March 30, 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 2016 Highlights and Operational Review Curt Morgan, President and Chief Executive Officer 2016 Financial Review Bill Holden, Chief Financial Officer Q&A 3
Slide 5: 2016 Highlights & Operational Review
2016 Highlights & Operational Review Curt Morgan, President and Chief Executive Officer
Slide 6: 2016 Highlights
2016 Highlights Emerged from bankruptcy on October 3, 2016, eliminating more than $33 billion in pre-emergence debt Current total debt of $4.6 billion (~$3.97 billion net of collateralized L/C facility) - 2.5x gross debt/EBITDA; 1.96x net debt/EBITDA $1.6 Billion of Adjusted EBITDA – top quart
Slide 7: Retail Highlights
Retail Highlights Residential Net Attrition Continues to Flatten 1.560 1.516 1.500 1.489 1.478 (4.0%) (2.8%) (1.1%) (0.7%) (0.7%) 2012 2013 2014 2015 2016 Residential customer count (millions) Attrition rate Consistent Retail EBITDA Contribution Strong ’16 Volumes (GWh) Despite Mild Weather $845 $83
Slide 8: Wholesale Highlights
Wholesale Highlights 2016 Net Generation1 25% 56% 89.7 85.4 81.6 $56.90 80.3 19% $53.34 $43.51 $37.57 Coal Gas Nuclear $30.50 $33.93 $21.06 $23.78 2013 2014 2015 2016 TWh 1 Annual Settled Price 2 Annual Realized Price 3 Realized prices for 2016 were nearly 80% higher than settled prices as a result
Slide 9: ERCOT Market Highlights
ERCOT Market Highlights GW ERCOT Summer CDR GW New Planned Resources 100.0 40.0% 12.0 86.7 87.7 88.5 10.6 90.0 85.4 10.2 82.2 35.0% 10.0 1.6 80.0 74.3 9.1 72.5 73.4 1.5 70.4 71.0 30.0% 70.0 0.6 1.4 0.6 8.0 25.0% 6.9 1.4 60.0 0.6 1.4 20.2% 19.6% 19.5% 19.0% 1.0 1.4 50.0 20.0% 6.0 16.9% 0.5 40.0 1.1 1
Slide 10: 2017 Initiatives
2017 Initiatives • Implement capital allocation strategy • Complete and implement operational performance review and optimize Luminant’s generation fleet • Complete implementation of support cost restructuring initiative and generation portfolio assessment/rationalization • List on the New York Stoc
Slide 11: 2016 Financial Review
2016 Financial Review Bill Holden, Chief Financial Officer
Slide 12: 2016 Financial Results
2016 Financial Results Highlights Performance • 2016 Adjusted EBITDA – top quartile of December guidance range 2016 Adjusted EBITDA ($ in millions) • New presentation for 2016 Adjusted Free Cash TXUE Luminant Flow guidance range excluding timing items1: $1,6012 – Guidance range = $815mm to $880mm 76
Slide 13: Vistra Hedge Profile
Vistra Hedge Profile Natural Gas Hedge Profile Heat Rate Hedge Profile 93% 92% 85% 82% 52% 35% 31% 12/31/16 3/1/17¹ 12/31/16 3/1/17¹ 21% 12/31/16 3/1/17 12/31/16 3/1/17 2017 2018 2017 2018 Natural Gas Margin Sensitivity2 Heat Rate Margin Sensitivity2 ($ in millions) ($ in millions) 2017 2018 2017 20
Slide 14: Vistra Capital Structure
Vistra Capital Structure • In February 2017, Vistra repriced its initial term loans B and C (totaling $3.5 billion) to L+275 with a 0.75% LIBOR floor, generating ~$44 million of interest savings per year • In the fourth quarter of 2016, Vistra entered into $3 billion of interest rate swaps, reducing
Slide 15: Q&A
VIeTDA ow Baw = ENERGY Q&A
Slide 16: Appendix
VICTRA ENERGY Appendix
Slide 17: ERCOT Market Pricing
ERCOT Market Pricing Monthly North Hub ATC Power Prices¹ Implied North Hub ATC Market Heat Rates 50 August $49.716 20 $45.616 40 16 15.5 August 14.2516 (mmBtu/MWh) $32.916 ($/MWh) 12.0416 30 $28.116 12 10.2616 20 8 12/31/16 3/1/17 12/31/16 3/1/17 10 4 2015A 2016A 2017E 2018E 2015A 2016A 2017E 2018E
Slide 18: Luminant Asset Details
Luminant Asset Details Installed Environmental Control Equipment1 2017E Capacity Lignite Heat Rate FGD SNCR Bag- Plant (MW) Blend (btu/kWh) (Scrubber) ACI ESP / SCR house Big Brown 1,150 17% 10,761 SNCR 2 2 Monticello 1,880 0% 10,900 SNCR Martin Lake 2,250 52% 10,177 Sandow 4 557
Slide 19: Vistra Capital Expenditures
Vistra Capital Expenditures Capital Expenditures1 2015A-2017E ($ in millions) 2015A 2016A 2017E Nuclear Fuel 122 74 65 Nuclear & Fossil Maintenance 207 189 161 Environmental 82 62 31 IT, Corporate, and Other 44 27 50 Total Capital Expenditures 455 352 307 Non-recurring Capital Expenditures2 - - (25)
Slide 20: Reg G Reconciliation – Adjusted EBITDA
Reg G Reconciliation – Adjusted EBITDA 19
Slide 21: Reg G Reconciliation – Adjusted FCF
Reg G Reconciliation – Adjusted FCF 20