Dynegy Inc. (NYSE: DYN):
Summary of First Quarter 2017 Financial
Results (in millions):
Three Months EndedMarch
31,
2017 2016 Operating Revenues $ 1,247 $ 1,123
Net Income (loss) $ 597 $ (10 ) Adjusted EBITDA (1) $ 230 $ 251
2017 Guidance Ranges (in
millions):
Adjusted EBITDA (1) $1,200 - $1,400 Adjusted Free
Cash Flow (1) $300 - $500; increased from the prior range of $150 -
$350
Operating Highlights:
- Adjusted free cash flow guidance
increased by $150 million due to modified capital and outage
plan
- $1.4 billion in liquidity at March 31,
2017
- Generated nearly 26 million megawatt
hours in first quarter 2017
- Safety performance improved by nearly
50% in the first quarter as compared to 2016
Portfolio Transformation:
- Completed the Illinois Power Holdings
(Genco) financial restructuring in February 2017, resulting in a
simplified, more efficient corporate structure and a strengthened
balance sheet with more than $640 million of debt eliminated
- Signed an agreement with LS
Power to sell Armstrong and Troy PJM peaking units,
1,269 MW total, for $480 million ($378/kW) and received
early termination of the Hart-Scott-Rodino Act waiting period;
proceeds will go toward debt reduction
- Currently in the second round of the
mitigation sales process for Milford (MA) and Dighton, 364 MW
total
- Signed agreements with joint operating
partners, AEP and AES, to retire the Stuart and Killen power
plants, nearly 3,000 MW total, by mid-2018
- Agreed to purchase AES’ 28.1% ownership
interest in Zimmer Power Station and 36% interest in Miami Fort
Power Station, approximately 740 MW total, for $50 million plus
working capital
___________________________________ (1) Adjusted
EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures;
see “Regulation G Reconciliations” for further details.
Dynegy Inc. (NYSE: DYN) reported net income of $597 million for
the first quarter of 2017, compared to a net loss of $10 million
for the first quarter of 2016. The quarter-over-quarter increase is
mainly due to a $483 million gain from the cancellation of debt
resulting from the Genco restructuring and a $313 million tax
benefit primarily resulting from the partial release of a deferred
tax valuation allowance as a result of the ENGIE acquisition. These
benefits were offset by a $194 million decrease in operating income
due to reduced spark spreads from mild winter weather, lower gains
on our hedging transactions and incremental acquisition and
integration costs as a result of the ENGIE acquisition.
The Company reported consolidated Adjusted EBITDA of $230
million for the 2017 first quarter compared to $251 million for the
2016 first quarter. While the assets acquired from ENGIE during the
first quarter of 2017 contributed $15 million in Adjusted EBITDA,
consolidated results declined as a result of lower capacity
revenues and energy margin, net of hedges, at the PJM and NY/NE
segments as mild winter weather and increased gas costs lowered
energy margin compared to the first quarter of 2016.
“Protection provided by our hedging program and our growth in
retail contracting has enabled us to remain on track financially
despite the lack of weather and a persistently low commodity price
environment,” said Robert Flexon, Dynegy President and Chief
Executive Officer. “Additionally, we made significant progress
during the quarter on our multiple delevering strategies which
consist of various asset sales, cash generated by our portfolio
including the newly acquired ENGIE fleet and other portfolio
optimization efforts.”
First Quarter
Comparative Results
Quarter Ended March 31, 2017
2016 (in millions)
Operating Income(Loss)
Adjusted EBITDA (1)
Operating Income(Loss)
Adjusted EBITDA (1) PJM $ 86 $ 191 $ 177 $ 209 NY/NE
(41 ) 42 (2 ) 53 ERCOT (28 ) (9 ) — — MISO 17 10 13 (1 ) IPH 18 31
14 21 CAISO (14 ) (3 ) (14 ) — Other (87 ) (32 ) (43 ) (31 ) Total
$ (49 ) $ 230 $ 145 $ 251
___________________________________ (1) Adjusted
EBITDA is a non-GAAP financial measure, see “Regulation G
Reconciliations” for further details.
Segment Review of Results
Quarter-over-Quarter
PJM - Operating income for the 2017 first quarter totaled
$86 million, compared to $177 million for the same period of 2016,
as non-cash mark-to-market losses on derivatives, a non-cash
impairment related to the Killen facility, lower capacity revenues
and lower energy margin, net of hedges pressured results. Adjusted
EBITDA totaled $191 million during the 2017 first quarter compared
to $209 million during the same period in 2016 as lower energy
margins, net of hedges, together with lower capacity revenues more
than offset contributions from the new assets acquired from
ENGIE.
NY/NE - Operating loss for the 2017 first quarter totaled
$41 million, compared to $2 million for the same period in 2016,
primarily due to non-cash mark-to-market losses on derivatives.
Adjusted EBITDA totaled $42 million during the 2017 first quarter,
compared to $53 million during the same period in 2016 as lower
energy margins, net of hedges, and lower capacity revenues more
than offset contributions from the new assets acquired from
ENGIE.
ERCOT - Operating loss for the 2017 first quarter totaled
$28 million, while Adjusted EBITDA was a loss of $9 million for the
same period. Results for the quarter include $4 million in
operations support overhead allocation and reflect the impact of
five unit outages in February and March without the benefit of
ownership in January.
MISO/IPH - Operating income for the 2017 first quarter
totaled $35 million, compared to $27 million for the same period in
2016, as higher capacity revenues and lower O&M costs more than
offset non-cash mark-to-market losses on derivatives and lower
energy margin, net of hedges. Adjusted EBITDA totaled $41 million
during the 2017 first quarter compared to $20 million during the
same period in 2016 as the capacity revenue and O&M benefits
noted above more than offset lower energy margin, net of
hedges.
CAISO - Operating loss for the 2017 first quarter totaled
$14 million, unchanged from the same period in 2016. Adjusted
EBITDA loss totaled $3 million during the 2017 first quarter
compared to breakeven during the same period in 2016 due to lower
energy margin, net of hedges.
Liquidity
As of March 31, 2017, Dynegy’s total available liquidity
was $1.4 billion as reflected in the table below.
(amounts in millions) Revolving
facilities and LC capacity (1) $ 1,675 Less: Outstanding revolvers
(300 ) Outstanding LCs (476 ) Revolving facilities and LC
availability 899 Cash and cash equivalents 467 Total
available liquidity $ 1,366
___________________________________ (1) Dynegy Inc.
includes $1.5 billion in senior secured revolving credit facilities
and $130 million related to LCs.
Consolidated Cash Flow
Cash provided by operations totaled $149 million for the first
quarter 2017. During the period, our power generation facilities
and retail operations provided cash of $261 million. Corporate
activities, primarily related to general and administrative,
interest and acquisition-related expenses, as well as other working
capital changes used cash of $112 million during the period.
Cash used in investing activities totaled $3.3 billion during
the first quarter 2017 as Dynegy used $3,263 million at the closing
of the ENGIE acquisition and invested $31 million in capital
expenditures.
Cash used in financing activities totaled $228 million for the
first quarter 2017. Cash uses include (i) $375 million paid for the
Energy Capital Partners Buyout, (ii) $119 million of payments
related to the termination of the Genco senior notes (iii) $99
million in financing costs related to our debt issuances, (iv) $75
million for debt reduction related to Dynegy’s equipment financing
agreements and tangible equity units (TEUs), (v) $5 million in
dividend payments on our preferred stock and (vi) $4 million in
interest rate swap settlement payments. Partially offsetting these
cash outflows were (i) $300 million in cash proceeds from a
revolver draw and (ii) $150 million in cash proceeds from the
issuance of Dynegy Inc. common stock to ECP at the closing of the
ENGIE acquisition.
2017 Guidance
Dynegy’s full-year 2017 Adjusted EBITDA guidance range remains
unchanged at $1,200-1,400 million. The Company’s Adjusted free cash
flow range is being increased by $150 million, to $300 million to
$500 million, primarily as a result of deferring and changing the
scope of previously scheduled maintenance capital expenditures.
Environmental Update/Capital
Allocation
As previously disclosed, Dynegy has continued to evaluate the
timing of ELG-related projects and related expenditures and has
determined that, based on existing rules, most of the projects
originally scheduled for 2017 and 2018 will be delayed for
approximately two years. As a result, approximately $40 million in
ELG-related capital expenditures originally expected in 2017 have
been rescheduled to 2019 and approximately $140 million in 2018
spend has been rescheduled to 2020.
Additionally, the Company recently restructured the first
tranche of an existing PJM capacity monetization to defer
settlement of the obligation from planning year 2017-2018 to
planning year 2019-2020. As a result, $64 million in payments
originally scheduled for 2017 have been deferred to 2019, and $45
million in payments originally scheduled for 2018 have been
deferred to 2020.
The funds previously allocated to these items have been
reallocated to debt reduction.
Retail Growth
Dynegy’s retail business has grown to become one of the top five
residential suppliers in Ohio and is committed to expanding its
presence in the state. Recently, the retail business finalized its
largest aggregation contract, a three-year municipal agreement to
supply electricity to the residents of the City of Cincinnati.
Dynegy currently has a successful integrated wholesale and retail
platform in Ohio and Illinois and is actively pursuing broadening
it to other locations where the Company has generation.
Safety
Total safety performance in the first quarter of 2017 improved
by nearly 50% as compared to 2016. Dynegy’s gas facilities
continued to perform in the top decile, while coal-fueled units
improved significantly due to focus on rigorous safety
initiatives.
Environmental
Improvements
Dynegy’s transformation to a largely gas-fueled portfolio of
assets has significantly improved the Company’s environmental
footprint. Between 2014 and 2017, sulfur dioxide (SO2),
greenhouse gases (GHG) and nitrogen oxides (NOx) emissions
intensities (lb/MWh) will have declined by 48%, 25% and 17%
respectively. (1)
In addition, the Company is well on its way to realizing its
stated goal of recycling 100% of coal combustion byproduct (CCB)
for beneficial reuse by 2020, with Dynegy reusing more than 70% of
CCB last year and on track to achieve 80% by the end of 2017.
Applications include serving as a substitute for cement in concrete
and as a replacement for gypsum in wallboard. This lessens landfill
needs and directly offsets CO2 generated by manufacturing these
products. It not only makes good environmental sense, it makes good
financial sense by eliminating a cost stream and turning it into a
revenue stream.
(1) 2017 emissions are based on expected asset ownership and
forecasted production.
Updates to Asset
Portfolio
Peaker Sales to LS Power
On February 23, Dynegy signed an agreement with LS
Power to sell Armstrong and Troy, two PJM peaking
units totaling 1,269 MW, for $480 million ($378/kW).
On April 6, the United States Department of
Justice and Federal Trade Commission granted early
termination of the Hart-Scott-Rodino Act waiting period. The
transaction close is pending Federal Energy Regulatory
Commission (FERC) approval.
Southeastern New England (SENE) Mitigation
Dynegy is engaged in the second round of its auction process for
assets the Company intends to sell to meet FERC’s market mitigation
requirements associated with the ENGIE acquisition approval.
Asset Retirements
Dynegy and its joint operating partners, AEP and AES, have
formally agreed to shut down the Stuart and Killen coal-fueled
facilities totaling approximately 3,000 MW by mid-2018. Current
ownership interests will be retained through the shutdown date, and
the Company’s portion of previously cleared capacity from Stuart
and Killen will be transferred to other Dynegy plants.
Ownership Consolidation of Jointly Owned Units
On April 24, Dynegy agreed to purchase AES’ 28.1% ownership
interest in Zimmer and 36% in Miami Fort stations, totaling
approximately 740 MW of generating capacity, for $50 million,
subject to certain adjustments. As previously disclosed, Dynegy
will also acquire AEP’s ownership interest in Zimmer and sell its
ownership interest in Conesville to AEP. No consideration will be
exchanged between AEP and Dynegy, however AEP will return a
previously issued letter of credit totaling $58 million to Dynegy.
Upon closing, the Company will fully own and operate Miami Fort and
Zimmer with no additional debt incurred and no material impact to
liquidity.
PRIDE Update and ENGIE
Integration
Dynegy’s PRIDE Energized (Producing Results through
Innovation by Dynegy Employees) program is on track to meet its
2017 target of $65 million in EBITDA by the end of the fourth
quarter and already exceeded its three-year balance sheet goal
of $400 million in 2016 with $422 million in improvements. Dynegy
has identified over $75 million in additional balance sheet
improvements for 2017 to further exceed the three-year target.
To date, Dynegy has secured $95 million of the $120 million
ENGIE synergies target and remains on track to achieve 90% of
the targeted ENGIE synergies by year end.
Investor Conference
Call/Webcast
Dynegy’s earnings presentation and management comments on the
earnings presentation will be available on the “Investor Relations”
section of www.dynegy.com later today. The Company will answer
questions about its 2017 first quarter financial results during an
investor conference call and webcast tomorrow, May 5, 2017 at
9 a.m. ET/8 a.m. CT. Participants may access the webcast from the
Company’s website.
About Dynegy
At Dynegy, we generate more than just power for our
customers. We are committed to being a leader in the electricity
sector. Throughout the Northeast, Mid-Atlantic, Midwest
and Texas, Dynegy operates power generating
facilities capable of producing more than 31,000 megawatts of
electricity—or enough energy to power about 25 million American
homes. We’re proud of what we do, but it’s about much more than
just output. We’re always striving to generate power safely and
responsibly for our wholesale and retail electricity customers who
depend on that energy to grow and thrive.
Forward-Looking
Statement
This news release contains statements reflecting assumptions,
expectations, projections, intentions or beliefs about future
events that are intended as “forward-looking statements,”
particularly those statements concerning Dynegy’s beliefs and
expectations regarding sale of Dynegy’s PJM peaking units, the sale
process to satisfy the FERC market mitigation requirements,
anticipated asset retirements, and ownership consolidation of
Zimmer and Miami Fort units; execution of its PRIDE Energized
target in balance sheet and operating improvements; the execution
and timing of debt repayments and various delevering strategies;
broadening the retail platform; achievement of Dynegy’s CCB goals;
anticipated earnings and cash flows and Dynegy’s 2017 Adjusted
EBITDA and Adjusted Free Cash Flow guidance. Historically, Dynegy’s
performance has deviated, in some cases materially, from its cash
flow and earnings guidance. Discussion of risks and uncertainties
that could cause actual results to differ materially from current
projections, forecasts, estimates and expectations of Dynegy is
contained in Dynegy’s filings with the Securities and Exchange
Commission (the SEC). Specifically, Dynegy makes reference to, and
incorporates herein by reference, the section entitled “Risk
Factors” in its 2016 Form 10-K and subsequent Form 10-Qs. In
addition to the risks and uncertainties set forth in Dynegy’s SEC
filings, the forward-looking statements described in this press
release could be affected by, among other things, (i) beliefs
and assumptions about weather and general economic
conditions;(ii) beliefs, assumptions, and projections
regarding the demand for power, generation volumes, and commodity
pricing, including natural gas prices and the timing of a recovery
in power market prices, if any; (iii) beliefs and assumptions
about market competition, generation capacity, and regional supply
and demand characteristics of the wholesale and retail power
markets, including the anticipation of plant retirements and higher
market pricing over the longer term; (iv) sufficiency of,
access to, and costs associated with coal, fuel oil, and natural
gas inventories and transportation thereof; (v) the effects
of, or changes to the power and capacity procurement processes in
the markets in which we operate; (vi) expectations regarding,
or impacts of, environmental matters, including costs of
compliance, availability and adequacy of emission credits, and the
impact of ongoing proceedings and potential regulations or changes
to current regulations, including those relating to climate change,
air emissions, cooling water intake structures, coal combustion
byproducts, and other laws and regulations that we are, or could
become, subject to, which could increase our costs, result in an
impairment of our assets, cause us to limit or terminate the
operation of certain of our facilities, or otherwise have a
negative financial effect; (vii) beliefs about the outcome of
legal, administrative, legislative, and regulatory matters,
including any impacts from the change in administration to these
matters; (viii) projected operating or financial results,
including anticipated cash flows from operations, revenues, and
profitability; (ix) our focus on safety and our ability to
operate our assets efficiently so as to capture revenue generating
opportunities and operating margins; (x) our ability to
mitigate forced outage risk, including managing risk associated
with CP in PJM and performance incentives in ISO-NE; (xi) our
ability to optimize our assets through targeted investment in cost
effective technology enhancements; (xii) the effectiveness of
our strategies to capture opportunities presented by changes in
commodity prices and to manage our exposure to energy price
volatility; (xiii) efforts to secure retail sales and the
ability to grow the retail business; (xiv) efforts to identify
opportunities to reduce congestion and improve busbar power prices;
(xv) ability to mitigate impacts associated with expiring
reliability must run “RMR” and/or capacity contracts;
(xvi) expectations regarding our compliance with the Credit
Agreement, including collateral demands, interest expense, any
applicable financial ratios, and other payments;
(xvii) expectations regarding performance standards and
capital and maintenance expenditures; (xviii) the timing and
anticipated benefits to be achieved through our Company-wide
improvement programs, including our PRIDE initiative;
(xix) expectations regarding strengthening the balance sheet,
managing debt and improving Dynegy’s leverage profile; (xx)
expectations, timing and benefits of the AES and AEP transactions;
(xxi) efforts to divest assets and the associated timing of such
divestitures, and anticipated use of proceeds from such
divestitures; (xxii) anticipated timing, outcome and impact of
expected retirements; (xxiii) beliefs about the costs and scope of
the ongoing demolition and site remediation efforts; and (xxiv)
expectations regarding the synergies and anticipated benefits of
the ENGIE Acquisition. Any or all of Dynegy’s forward-looking
statements may turn out to be wrong. They can be affected by
inaccurate assumptions or by known or unknown risks, uncertainties,
and other factors, many of which are beyond Dynegy’s control,
including those set forth under Item 1A - Risk Factors of Dynegy’s
Form 10-K.
DYNEGY INC. REPORTED UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS (IN MILLIONS, EXCEPT PER SHARE
DATA) Three Months Ended March 31,
2017 2016 Revenues $ 1,247 $ 1,123 Cost of
sales, excluding depreciation expense (757 ) (545 ) Gross margin
490 578 Operating and maintenance expense (232 ) (221 )
Depreciation expense (200 ) (171 ) Impairments (20 ) — General and
administrative expense (40 ) (37 ) Acquisition and integration
costs (45 ) (4 ) Other (2 ) — Operating income (loss) (49 )
145 Bankruptcy reorganization items 483 — Earnings (losses) from
unconsolidated investments (1 ) 2 Interest expense (167 ) (142 )
Other income and expense, net 17 1 Income before
income taxes 283 6 Income tax benefit (expense) 313 (16 )
Net income (loss) 596 (10 ) Less: Net loss attributable to
noncontrolling interest (1 ) — Net income (loss)
attributable to Dynegy Inc. 597 (10 ) Less: Dividends on preferred
stock 5 5 Net income (loss) attributable to Dynegy
Inc. common stockholders $ 592 $ (15 )
Earnings
(Loss) Per Share: Basic earnings (loss) per share attributable
to Dynegy Inc. common stockholders $ 4.00 $ (0.13 ) Diluted
earnings (loss) per share attributable to Dynegy Inc. common
stockholders $ 3.57 $ (0.13 ) Basic shares outstanding 148
117 Diluted shares outstanding 167 117
The following table reflects significant components of our
weighted average shares outstanding used in the basic and diluted
loss per share calculations for the three months ended March 31,
2017 and 2016:
Three Months Ended March 31, (in
millions) 2017 2016 Shares outstanding at
the beginning of the period (1) 140 117 Weighted-average shares
outstanding during the period of: Shares issued under the PIPE
Transaction 8 — Basic weighted-average shares outstanding 148 117
Dilution from potentially dilutive shares (2) 19 — Diluted
weighted-average shares outstanding 167 117
___________________________________ (1) The minimum
settlement amount of the TEUs, or 23,092,460 shares, are considered
to be outstanding since the issuance date of June 21, 2016, and are
included in the computation of basic earnings (loss) per share for
the three months ended March 31, 2017. No such amounts were
considered outstanding for the three months ended March 31, 2016.
(2) Shares included in the computation of diluted earnings (loss)
per share for the three months ended March 31, 2017 primarily
consist of approximately 5.4 million shares related to our TEUs and
12.9 million shares related to our mandatory convertible preferred
stock.
Entities with a net loss from continuing operations are
prohibited from including potential common shares in the
computation of diluted per share amounts. Accordingly, we have
utilized the basic shares outstanding amount to calculate both
basic and diluted loss per share for the three months ended March
31, 2016.
DYNEGY INC.OPERATING DATA
The following table provides summary financial data regarding
our PJM, NY/NE, ERCOT, MISO, IPH and CAISO segment results of
operations for the three months ended March 31, 2017 and 2016,
respectively.
Three Months Ended March 31,
2017 2016 PJM
Million Megawatt Hours Generated (1) 13.4 13.0 IMA (1)(2): Combined
Cycle Facilities 89 % 98 % Coal-Fueled Facilities 65 % 77 % Average
Capacity Factor (1)(3): Combined Cycle Facilities 68 % 83 %
Coal-Fueled Facilities 60 % 43 % CDDs (4) 2 2 HDDs (4) 2,226 2,449
Average Market On-Peak Spark Spreads ($/MWh) (5): PJM West $ 11.38
$ 18.73 AD Hub $ 12.63 $ 19.81 Average Market On-Peak Power Prices
($/MWh) (6): PJM West $ 32.52 $ 31.49 AD Hub $ 31.39 $ 28.80
Average natural gas price—TetcoM3 ($/MMBtu) (7) $ 3.02 $ 1.82
NY/NE Million Megawatt Hours Generated (1) 4.7 3.9
IMA for Combined Cycle Facilities (1)(2) 98 % 89 % Average Capacity
Factor for Combined Cycle Facilities (1)(3) 37 % 40 % CDDs (4) — —
HDDs (4) 2,772 2,719 Average Market On-Peak Spark Spreads ($/MWh)
(5): New York—Zone A $ 10.99 $ 16.69 Mass Hub $ 6.63 $ 10.82
Average Market On-Peak Power Prices ($/MWh) (6): Mass Hub $ 37.76 $
33.85 Average natural gas price—Algonquin Citygates ($/MMBtu) (7) $
4.45 $ 3.29
ERCOT Million Megawatt Hours Generated
(1) 0.6 — IMA (1)(2): Combined-Cycle Facilities 97 % — %
Coal-Fueled Facility 93 % — % Average Capacity Factor (1)(3):
Combined-Cycle Facilities 9 % — % Coal-Fueled Facility 18 % — %
CDDs (4) 267 120 HDDs (4) 494 758 Average Market On-Peak Spark
Spreads ($/MWh) (5): ERCOT North $ 4.11 $ 6.65 Average Market
On-Peak Power Prices ($/MWh) (6): ERCOT North $ 23.54 $ 19.62
Average natural gas price—Waha Hub ($/MMBtu) (7) $ 2.78 $ 1.85
MISO Million Megawatt Hours Generated 2.7 3.3 IMA for
Coal-Fueled Facilities (2) 89 % 89 % Average Capacity Factor for
Coal-Fueled Facilities (3) 65 % 50 % CDDs (4) 57 28 HDDs (4) 2,203
2,424 Average Market On-Peak Power Prices ($/MWh) (6): Indiana
(Indy Hub) $ 32.65 $ 25.61 Commonwealth Edison (NI Hub) $ 30.27 $
27.34
IPH Million Megawatt Hours Generated 3.8 3.3
IMA for IPH Facilities (2) 86 % 86 % Average Capacity Factor for
IPH Facilities (3) 52 % 39 % CDDs (4) 57 28 HDDs (4) 2,203 2,424
Average Market On-Peak Power Prices ($/MWh) ($/MWh) (6): Indiana
(Indy Hub) $ 32.65 $ 25.61 Commonwealth Edison (NI Hub) $ 30.27 $
27.34
CAISO Million Megawatt Hours Generated 0.3 0.7
IMA for Combined Cycle Facilities (2) 95 % 99 % Average Capacity
Factor for Combined Cycle Facilities (3) 14 % 29 % CDDs (4) 25 44
HDDs (4) 717 594 Average Market On-Peak Spark Spreads ($/MWh) (5):
North of Path 15 (NP 15) $ 8.34 $ 10.71 Average natural gas
price—PG&E Citygate ($/MMBtu) (7) $ 3.34 $ 2.20
___________________________________ (1) Adjusted
EBITDA includes the activity of the assets acquired in the ENGIE
acquisition for our period of ownership. Million Megawatt Hours
Generated and Average Capacity Factor include such activity for the
full month of February. IMA includes such activity for March only.
(2) IMA is an internal measurement calculation that reflects the
percentage of generation available during periods when market
prices are such that these units could be profitably dispatched.
The calculation excludes certain events outside of management
control such as weather related issues. The calculation excludes
our Brayton Point facility and CTs. (3) Reflects actual production
as a percentage of available capacity. The calculation excludes our
Brayton Point facility and CTs. (4) Reflects CDDs or HDDs for the
region based on NOAA data. (5) Reflects the simple average of the
on-peak spark spreads available to a 7.0 MMBtu/MWh heat rate
generator selling power at day-ahead prices and buying delivered
natural gas at a daily cash market price and does not reflect spark
spreads available to us. (6) Reflects the average of day-ahead
settled prices for the periods presented and does not necessarily
reflect prices we realized. (7) Reflects the average of daily
quoted prices for the periods presented and does not reflect costs
incurred by us.
DYNEGY INC.REG G RECONCILIATIONS -
ADJUSTED EBITDATHREE MONTHS ENDED MARCH 31,
2017(UNAUDITED) (IN MILLIONS)
The following table provides summary financial data regarding
our Adjusted EBITDA by segment for the three months ended March 31,
2017:
Three Months Ended March 31, 2017 PJM
NY/NE ERCOT MISO
IPH CAISO Other
Total Net income attributable to Dynegy Inc. $ 597
Plus / (Less): Loss attributable to noncontrolling interest (1 )
Income tax benefit (313 ) Other income and expense, net (17 )
Interest expense 167 Loss from unconsolidated investments 1
Bankruptcy reorganization items (483 ) Operating income (loss) $ 86
$ (41 ) $ (28 ) $ 17 $ 18 $ (14 ) $ (87 ) $ (49 ) Depreciation and
amortization expense 100 68 13 8 14 15 2 220 Bankruptcy
reorganization items — — — — 498 — (15 ) 483 Loss from
unconsolidated investments (1 ) — — — — — — (1 ) Other income and
expense, net — — — — 1 —
16 17
EBITDA (1) 185 27 (15 ) 25 531 1 (84 )
670 Plus / (Less): Adjustments to reflect Adjusted EBITDA from
unconsolidated investment and exclude noncontrolling interest 1 — —
— — — — 1 Acquisition, integration costs and restructuring costs —
— — — — — 46 46 Bankruptcy reorganization items — — — — (498 ) — 15
(483 ) Mark-to-market adjustments, including warrants (15 ) 15 6
(15 ) (1 ) (4 ) (12 ) (26 ) Impairments 20 — — — — — — 20 Non-cash
compensation expense — — — — — — 5 5 Other — — —
— (1 ) — (2 ) (3 )
Adjusted EBITDA
(1)(2) $ 191 $ 42 $ (9 ) $ 10 $ 31
$ (3 ) $ (32 ) $ 230 ___________________________________
(1) EBITDA and Adjusted EBITDA are non-GAAP financial
measures. Please refer to Item 2.02 of our Form 8-K filed on May 4,
2017, for definitions, utility and uses of such non-GAAP financial
measures. A reconciliation of EBITDA to Operating income (loss) is
presented above. Management does not allocate G&A, interest
expense and income taxes on a segment level and therefore uses
Operating income (loss) as the most directly comparable GAAP
measure. (2) Not adjusted to exclude Wood River’s energy margin and
O&M costs.
DYNEGY INC.REG G RECONCILIATIONS -
ADJUSTED EBITDATHREE MONTHS ENDED MARCH 31,
2016(UNAUDITED) (IN MILLIONS)
The following table provides summary financial data regarding
our Adjusted EBITDA by segment for the three months ended March 31,
2016:
Three Months Ended March 31, 2016 PJM
NY/NE ERCOT MISO
IPH CAISO Other
Total Net loss attributable to Dynegy Inc. $ (10 )
Plus / (Less): Income tax expense 16 Other income and expense, net
(1 ) Interest expense 142 Earnings from unconsolidated investments
(2 ) Operating income (loss) $ 177 $ (2 ) $ — $ 13 $ 14 $ (14 ) $
(43 ) $ 145 Depreciation and amortization expense 83 75 — 9 10 12 1
190 Earnings from unconsolidated investments 2 — — — — — — 2 Other
income and expense, net — — — — —
— 1 1
EBITDA (1) 262 73 — 22 24
(2 ) (41 ) 338 Plus / (Less): Adjustment to reflect Adjusted EBITDA
from unconsolidated investment 3 — — — — — — 3 Acquisition and
integration costs — — — — — — 4 4 Mark-to-market adjustments,
including warrants (56 ) (20 ) — (28 ) (3 ) 2 (1 ) (106 ) Non-cash
compensation expense — — — — — — 7 7 Other (2) — — —
5 — — — 5
Adjusted
EBITDA (1) $ 209 $ 53 $ — $ (1 ) $ 21
$ — $ (31 ) $ 251
___________________________________ (1) EBITDA and
Adjusted EBITDA are non-GAAP financial measures. Please refer to
Item 2.02 of our Form 8-K filed on May 4, 2017, for definitions,
utility and uses of such non-GAAP financial measures. A
reconciliation of EBITDA to Operating income (loss) is presented
above. Management does not allocate G&A, interest expense and
income taxes on a segment level and therefore uses Operating income
(loss) as the most directly comparable GAAP measure. (2) Other
includes an adjustment to exclude Wood River’s energy margin and
O&M costs of $5 million.
DYNEGY INC.REG G RECONCILIATIONS -
UPDATED 2017 GUIDANCE(UNAUDITED) (IN MILLIONS)
The following table provides summary financial data regarding
our 2017 Adjusted EBITDA and Adjusted Free Cash Flow guidance:
Dynegy Consolidated Low
High Net income attributable to Dynegy Inc. (1)
$ 455 $ 655 Plus / (Less): Interest
expense 655 660 Tax benefit (310 ) (320 ) Depreciation and
amortization expense 815 835
EBITDA (2)
1,615 1,830 Plus / (Less): Acquisition, integration
and restructuring costs 45 50 Bankruptcy reorganization items (480
) (500 ) Impairments 20 20
Adjusted EBITDA (2)
$ 1,200 $ 1,400 Cash interest payments
(600 ) (600 ) Acquisition, integration and restructuring costs (45
) (50 ) Other cash items (80 ) (80 )
Cash Flow from
Operations 475 670 Maintenance capital
expenditures (210 ) (210 ) Environmental capital expenditures (10 )
(10 ) Acquisition, integration and restructuring costs 45 50
Adjusted Free Cash Flow (2) $ 300
$ 500
___________________________________ (1) For purposes
of our 2017 guidance, fair value adjustments related to derivatives
and our common stock warrants are assumed to be zero. (2) EBITDA,
Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP measures.
Please refer to Item 2.02 of our Form 8-K filed on May 4, 2017, for
definitions, utility and uses of such non-GAAP financial measures.
DYNEGY INC.REG G RECONCILIATIONS -
ORIGINAL 2017 GUIDANCE(UNAUDITED) (IN MILLIONS)
The 2017 guidance was prepared using reasonable efforts and
based on currently available information assuming the following:
(a) the Delta transaction closed on February 7, 2017, (b) all
of the purchase price is allocated to property, plant and
equipment, (c) property, plant and equipment is depreciated over an
average useful life of 20 years, and (d) Genco restructuring
completed on February 2, 2017.
The following table provides summary financial data regarding
our 2017 Adjusted EBITDA and Adjusted Free Cash Flow guidance,
updated based on February 7, 2017 forward curves, as presented
on February 23, 2017:
Dynegy Consolidated Low
High Net loss attributable to Dynegy Inc. (1)
$ (265 ) $ (95 ) Plus /
(Less): Interest expense 660 665 Depreciation and amortization
expense 765 785
EBITDA (2) 1,160
1,355 Plus / (Less): Acquisition, integration and
restructuring costs 40 45
Adjusted EBITDA (2)
1,200 1,400 Cash interest payments (625 ) (625 )
Acquisition, integration and restructuring costs (40 ) (45 ) Other
cash items (35 ) (35 )
Cash Flow from Operations 500
695 Maintenance capital expenditures (370 ) (370 )
Environmental capital expenditures (20 ) (20 ) Acquisition,
integration and restructuring costs 40 45
Adjusted
Free Cash Flow (2) $ 150 $
350 ___________________________________
(1) For purposes of our 2017 guidance, fair value adjustments
related to derivatives and our common stock warrants are assumed to
be zero. (2)
EBITDA, Adjusted EBITDA and Adjusted Free
Cash Flow are non-GAAP measures. Please refer to Item 2.02 of our
Form 8-K filed on May 4, 2017, for definitions, utility and uses of
such non-GAAP financial measures.
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version on businesswire.com: http://www.businesswire.com/news/home/20170504006732/en/
Dynegy Inc.Media:David Onufer, 713-767-5800orAnalysts:
713-507-6466
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