2016 First Quarter Financial Highlights:
- $251 million in consolidated Adjusted
EBITDA for the 2016 first quarter, an increase of $166 million
compared to the 2015 first quarter.
- Newly acquired assets contributed $209
million in Adjusted EBITDA during the first quarter
- $1,809 million in consolidated
liquidity, including $82 million at IPH, as of March 31,
2016.
- Affirmed full-year 2016 Adjusted EBITDA
guidance range at $1,000 million to $1,200 million and Free Cash
Flow guidance range at $200 million to $400 million.
ENGIE Acquisition Update
- $198 million in net cash proceeds
received from the monetization of previously cleared PJM capacity
revenue as part of the financing plan for the ENGIE
acquisition.
- On April 1, 2016, the United States
Department of Justice and Federal Trade Commission granted early
termination of the Hart-Scott-Rodino Act waiting period for the
acquisition.
- On April 13, 2016, the United States
Department of Justice and Federal Trade Commission granted early
termination of the Hart-Scott-Rodino Act waiting period for Energy
Capital Partners’ proposed investment in Dynegy stock.
Operating and Commercial Highlights:
- Executed three year, 959 MW capacity
and energy sale at a capacity price of $4.40/KW-month with Good
Energy, which will generate $152 million in MISO capacity revenues
for Planning Years 2016-2017 through 2018-2019.
- 40 MW uprate at Fayette finished with a
40 MW uprate at Washington and a 30 MW uprate at Ontelaunee to be
completed in the second quarter 2016.
- 70 MW of uprates at Lake Road and
Milford cleared ISO-New England’s capacity auction for Planning
Year 2019-2020 and was awarded a seven year rate-lock at the
clearing price of $7.03/MW-day.
Dynegy Inc. (NYSE: DYN) reported for the 2016 first quarter,
consolidated Adjusted EBITDA of $251 million, compared to $85
million for the 2015 first quarter. The $166 million increase in
Adjusted EBITDA was primarily driven by assets the Company acquired
during the second quarter of 2015 and higher capacity sales in the
IPH segment. Partially offsetting these improvements were lower
generation volumes at the Coal and IPH segments and lower spark
spreads in the Gas segment, primarily at our Independence facility,
resulting from mild winter weather. The operating income for the
2016 first quarter was $145 million compared to an operating loss
of $40 million in the 2015 first quarter. The net loss attributable
to Dynegy Inc. for the 2016 first quarter was $10 million, compared
to $180 million for the 2015 first quarter.
“Mild winter weather during the first quarter impacted both our
energy volumes and power prices across our key markets. However,
the performance of the plants acquired last year continues to
significantly contribute to the Company's favorable financial
performance. As a result, Dynegy remains on track to meet our 2016
guidance range for Adjusted EBITDA and Free Cash Flow,” said Dynegy
President and Chief Executive Officer, Robert C. Flexon.
“Our effort to market and sell capacity in MISO has been very
successful as borne out by the Good Energy transaction leaving us
less dependent on the MISO capacity market design and annual
auction process, which continues to favor traditional utilities in
the surrounding states. The recently completed auction clearly
defined which of our assets are needed in MISO, and where we need
to evaluate alternatives for the balance of the MISO portfolio,”
Flexon added.
First Quarter Comparative
Results
Quarter Ended March 31, 2016 (in
millions) Coal IPH Gas
Other Total Operating income
(loss) $ 54 $ 14 $ 120 $ (43 ) 145 Plus / (Less): Depreciation
expense 39 9 122 1 171 Amortization expense (12 ) (1 ) 27
-
14 Earnings from unconsolidated investments
-
-
2
-
2 Other items, net
-
-
-
1 1
EBITDA (1) 81 22 271 (41 ) 333 Plus
/ (Less): Earnings from unconsolidated investments
-
-
(2 )
-
(2 ) Cash distributions from unconsolidated investments
-
-
5
-
5 Acquisition and integration costs
-
-
-
4 4 Mark-to-market adjustments (40 ) (3 ) (62 )
-
(105 ) Change in fair value of common stock warrants
-
-
-
(1 ) (1 ) ARO accretion expense 3 2
-
-
5 Wood River energy margin and O&M 5
-
-
-
5 Non-cash compensation expense
-
-
1 6 7 Other 1
-
(1 )
-
-
Adjusted EBITDA (1) $ 50 $ 21 $ 212
$ (32 ) $ 251
Quarter Ended March
31, 2015 (in millions) Coal IPH
Gas Other Total
Operating income (loss) $ 7 $ 22 $ 52 $ (121 ) $ (40 ) Plus
/ (Less): Depreciation expense 10 8 45 1 64 Amortization expense (1
) (1 ) (2 )
-
(4 ) Other items, net
-
-
-
(5 ) (5 )
EBITDA (1) 16 29 95 (125 ) 15 Plus /
(Less): Acquisition and integration costs
-
-
-
90 90 Loss attributable to noncontrolling interest
-
1
-
-
1 Mark-to-market adjustments (7 ) (11 ) (13 )
-
(31 ) Change in fair value of common stock warrants
-
-
-
5 5 ARO accretion expense 1 3
-
-
4 Other
-
-
-
1 1
Adjusted EBITDA (1) $ 10 $
22 $ 82 $ (29 ) $ 85 (1)
EBITDA and Adjusted EBITDA are non-GAAP
financial measures and are used by management to evaluate Dynegy’s
business on an ongoing basis. Please refer to Item 2.02 of Dynegy’s
Form 8-K which is available on the Company’s website:
www.dynegy.com and filed on May 3, 2016, for definitions, purposes
and uses of such non-GAAP financial measures. A reconciliation of
EBITDA to Operating income (loss) is presented above. General and
administrative expenses are not allocated to each segment and are
included in the Other segment. Management does not allocate
interest expense and income taxes on a segment level and therefore
uses Operating income (loss) as the most directly comparable GAAP
measure.
Segment Review of Results
Quarter-over-Quarter
Coal - The 2016 first quarter operating income was $54
million, compared to $7 million for the same period in 2015.
Adjusted EBITDA totaled $50 million during the 2016 first quarter
compared to $10 million during the same period in 2015. The
quarter-over-quarter increase in Adjusted EBITDA primarily resulted
from the positive impact of the Company’s second quarter 2015
acquisitions as well as increased MISO capacity revenues.
IPH - The 2016 first quarter operating income was $14
million, compared to $22 million for the same period in 2015.
Adjusted EBITDA totaled $21 million during the 2016 first quarter
compared to $22 million during the same period in 2015. While mild
winter weather adversely impacted market power prices, generation
volumes, and retail margins, the negative effect was mostly offset
by higher MISO and PJM capacity revenues and lower operating and
maintenance costs due to fewer planned outages.
Gas - The 2016 first quarter operating income was $120
million, compared to $52 million for the same period in 2015.
Adjusted EBITDA totaled $212 million during the 2016 first quarter
compared to $82 million during the same period in 2015. The
quarter-over-quarter increase in Adjusted EBITDA is largely due to
the Company’s second quarter 2015 acquisitions, particularly in
PJM, which more than offset weaker results at the legacy Dynegy
plants, primarily Independence, due to mild winter weather.
Liquidity
As of March 31, 2016, Dynegy’s total available liquidity
was $1.8 billion as reflected in the table below.
March 31, 2016 (amounts in millions) Dynegy
Inc. IPH (1) (2) Total Revolving
facilities and LC capacity (3) $ 1,480 $ 39 $ 1,519 Less:
Outstanding letters of credit (496 ) (35 ) (531 ) Revolving
facilities and LC availability 984 4 988 Cash and cash equivalents
743 78 821 Total available liquidity (4) $
1,727 $ 82 $ 1,809 (1) Includes
cash and cash equivalents of $55 million related to Genco. (2) Due
to the ring-fenced nature of IPH, cash at the IPH and Genco
entities may not be moved out of these entities without meeting
certain criteria. However, cash at these entities is available to
support current operations of these entities. (3) Dynegy Includes:
(i) $950 million of aggregate available capacity related to our
incremental revolving credit facilities, (ii) $475 million of
available capacity related to the five-year senior secured
revolving credit facility, and (iii) $55 million related to a
letter of credit facility. IPH includes (i) up to a maximum of $25
million related to the two-year secured letter of credit facility
and (ii) $14 million related to our fully collateralized letter of
credit and reimbursement agreement. (4) On December 2, 2013, Dynegy
and Illinois Power Resources, LLC entered into an intercompany
revolving promissory note of $25 million. At March 31, 2016, there
was approximately $25 million outstanding on the note, which is not
reflected in the table above.
As previously disclosed, a component of Dynegy’s financing plan
for the ENGIE acquisition is the monetization of future PJM
capacity revenues related to volumes cleared in previous PJM
capacity auctions. On March 18, 2016, the Company entered into a
bilateral contract under which it sold 1,500 MW of Base Capacity
and 800 MW of Capacity Performance for Planning Year 2017-2018 and
1,000 MW of Base Capacity and 900 MW of Capacity Performance for
Planning Year 2018-2019 in exchange for $198 million in net cash
proceeds. These cash proceeds are included in the Company’s quarter
end Dynegy Inc. cash balances.
Consolidated Cash Flow
Cash provided by operations for the first three months of 2016
was $191 million. During the period, our power generation business
provided cash of $259 million. Corporate and other activities used
cash of $19 million primarily due to interest payments on our
various debt agreements. Changes in working capital and other,
including general and administrative expenses, used cash of
approximately $49 million, net, during the period.
Cash used in investing activities during the first three months
of 2016 was $57 million. The Company paid $55 million in
maintenance capital expenditures, $6 million in environmental
capital expenditures and $4 million in capitalized interest,
partially offset by receipt of $8 million cash inflow related to
distributions from our unconsolidated investment.
Cash provided by financing activities during the first three
months of 2016 was $182 million. During the period, the Company
received $198 million in proceeds related to our forward capacity
agreement, partially offset by $5 million in repayments associated
with our inventory financing agreements and term loan, $5 million
in dividend payments on the Company’s mandatory convertible
preferred stock, and $4 million in interest rate swap settlement
payments.
PRIDE Energized
PRIDE Energized, the second generation of the Company’s PRIDE
(Producing Results through Innovation by Dynegy Employees) program,
which was introduced at the end of 2015, aims to deliver an
incremental $250 million in EBITDA and $400 million in balance
sheet improvements over the next three years (2016-2018). During
2016, the Company has committed to achieve $135 million in Adjusted
EBITDA and $200 million in balance sheet improvements, and at the
end of the first quarter, the Company remained on target to meet
these objectives.
2016 Guidance
Dynegy’s full-year 2016 Adjusted EBITDA and Free Cash Flow
guidance ranges remain unchanged at $1,000 million to $1,200
million and $200 million to $400 million, respectively.
ENGIE Integration
On April 1, 2016, the United States Department of Justice and
Federal Trade Commission granted early termination of the
Hart-Scott-Rodino Act waiting period for Dynegy’s and Energy
Capital Partners’ planned joint venture to acquire ENGIE’s U.S.
fossil portfolio. The Company also received early termination of
the Hart-Scott-Rodino Act waiting period for Energy Capital
Partners’ proposed investment in Dynegy stock. The transaction,
entered into on February 24, 2016 remains on track to close in the
fourth quarter 2016 and still requires regulatory approval from the
Federal Energy Regulatory Commission and the Public Utility
Commission of Texas.
Illinois Unit Shutdowns
Dynegy Inc. separately announced plans today to shut down
multiple coal-fueled Illinois units after they failed to clear the
recent MISO capacity auction. Units one and three at the Baldwin
Power Station in Baldwin, and unit two at the Newton Power Station
in Newton, are expected to be shut down over the next year. In
total, Dynegy is applying to MISO to take 1,835 MW off the grid in
MISO Zone 4. An additional 500 MW are targeted for shutdown, and a
final determination is likely later this year.
MISO has approved the retirement of Dynegy’s Wood River Power
Station, which is expected to occur on June 1, 2016.
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. Dynegy will answer questions
about its 2016 first quarter financial results during an investor
conference call and webcast tomorrow, May 4, 2016 at 9 a.m.
ET/8 a.m. CT. Participants may access the webcast from the
Company’s website.
About Dynegy
We are committed to leadership in the electricity sector. With
nearly 26,000 megawatts of power generation capacity and two retail
electricity companies, Dynegy is capable of supplying 21 million
homes with safe, reliable and economic energy. Homefield Energy and
Dynegy Energy Services are retail electricity providers serving
businesses and residents in Illinois, Ohio, and Pennsylvania.
Forward Looking
Statements
This press 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 regarding
the MISO capacity market design and auction process and Dynegy’s
MISO capacity revenues through 2019; completion of its uprate
projects in second quarter 2016; timing of FERC and Texas PUC
approval and closing of the ENGIE transaction; the shutdown over
the year of certain Illinois coal-fueled units; execution of its
PRIDE Energized target in balance sheet and operating improvements
by year-end 2016; anticipated earnings and cash flows and Dynegy’s
2016 Adjusted EBITDA and 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 2015 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, MISO, PJM, CAISO, NYISO, or ISO-NE power and
capacity procurement processes; (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;
(viii) projected operating or financial results, including
anticipated cash flows from operations, revenues, and
profitability; (ix) our focus on safety and our ability to
efficiently operate our assets 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 new 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 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) anticipated timing, outcome, and impacts of the expected
retirement of Brayton Point; (xx) beliefs about the costs and
scope of the ongoing demolition and site remediation efforts at the
Vermilion and Wood River facilities and any potential future
remediation obligations at the South Bay facility; (xxi)
expectations regarding the financing, synergies, completion,
timing, terms, and anticipated benefits of the Delta Transaction;
and (xxii) beliefs regarding redevelopment efforts for the
Morro Bay facility. 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, 2016
2015 Revenues $ 1,123 $ 632 Cost of sales, excluding
depreciation expense (545 ) (377 ) Gross margin 578 255 Operating
and maintenance expense (221 ) (111 ) Depreciation expense (171 )
(64 ) General and administrative expense (37 ) (30 ) Acquisition
and integration costs (4 ) (90 ) Operating income (loss) 145 (40 )
Earnings from unconsolidated investments 2
-
Interest expense (142 ) (136 ) Other income and (expense), net 1
(5 ) Income (loss) before income taxes 6 (181 ) Income tax
expense (16 )
-
Net loss (10 ) (181 ) Less: Net loss attributable to
noncontrolling interest
-
(1 ) Net loss attributable to Dynegy Inc. (10 ) (180 ) Less:
Dividends on preferred stock 5 5 Net loss
attributable to Dynegy Inc. common stockholders $ (15 ) $ (185 )
Loss Per Share: Basic and diluted loss per share
attributable to Dynegy Inc. common stockholders $ (0.13 ) $ (1.49 )
Basic and diluted shares outstanding 117 124
DYNEGY INC.
REPORTED SEGMENTED RESULTS OF
OPERATIONS
THREE 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 Coal
IPH Gas Other Total Net loss
attributable to Dynegy Inc. $ (10 ) Plus / (Less): Income tax
expense 16 Interest expense 142 Depreciation expense 171
Amortization expense 14
EBITDA (1) $ 81 $ 22 $ 271 $
(41 ) $ 333 Plus / (Less): Earnings from unconsolidated investments
-
-
(2 )
-
(2 ) Cash distributions from unconsolidated investments
-
-
5
-
5 Acquisition and integration costs
-
-
-
4 4 Mark-to-market adjustments (40 ) (3 ) (62 )
-
(105 ) Change in fair value of common stock warrants
-
-
-
(1 ) (1 ) ARO accretion expense 3 2
-
-
5 Wood River energy margin and O&M 5
-
-
-
5 Non-cash compensation expense
-
-
1 6 7 Other 1
-
(1 )
-
-
Adjusted EBITDA (1) $ 50 $ 21 $ 212
$ (32 ) $ 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 3, 2016, for definitions, utility and uses of such
non-GAAP financial measures. A reconciliation of EBITDA to
Operating income (loss) is presented below. Management does not
allocate interest expense and income taxes on a segment level and
therefore uses Operating income (loss) as the most directly
comparable GAAP measure.
Three Months Ended March 31, 2016 Coal
IPH Gas Other Total Operating income
(loss) $ 54 $ 14 $ 120 $ (43 ) $ 145 Depreciation expense 39 9
122 1 171 Amortization expense (12 ) (1 ) 27
-
14 Earnings from unconsolidated investments
-
-
2
-
2 Other items, net (1)
-
-
-
1 1
EBITDA $ 81 $ 22 $
271 $ (41 ) $ 333
(1) Other items, net primarily consists of
the change in fair value of our common stock warrants.
DYNEGY INC.
REPORTED SEGMENTED RESULTS OF
OPERATIONS
THREE MONTHS ENDED MARCH 31,
2015
(UNAUDITED) (IN MILLIONS)
The following table provides summary
financial data regarding our Adjusted EBITDA by segment for the
three months ended March 31, 2015:
Three Months Ended March 31, 2015 Coal
IPH Gas Other
Total Net loss attributable to Dynegy Inc. $ (180 )
Plus / (Less): Loss attributable to noncontrolling interest (1 )
Interest expense 136 Depreciation expense 64 Amortization expense
(4 )
EBITDA (1) $ 16 $ 29 $ 95 $ (125 ) $ 15 Plus / (Less):
Acquisition and integration costs
-
-
-
90 90 Loss attributable to noncontrolling interest
-
1
-
-
1 Mark-to-market adjustments (7 ) (11 ) (13 )
-
(31 ) Change in fair value of common stock warrants
-
-
-
5 5 ARO accretion expense 1 3
-
-
4 Other
-
-
-
1 1
Adjusted EBITDA (1) $ 10 $
22 $ 82 $ (29 ) $ 85
(1) EBITDA and Adjusted EBITDA are
non-GAAP financial measures. Please refer to Item 2.02 of our Form
8-K filed on May 3, 2016, for definitions, utility and uses of
such non-GAAP financial measures. A reconciliation of EBITDA to
Operating income (loss) is presented below. Management does not
allocate interest expense and income taxes on a segment level and
therefore uses Operating income (loss) as the most directly
comparable GAAP measure.
Three Months Ended March 31, 2015 Coal
IPH Gas Other Total Operating income
(loss) $ 7 $ 22 $ 52 $ (121 ) $ (40 ) Depreciation expense 10 8
45 1 64 Amortization expense (1 ) (1 ) (2 )
-
(4 ) Other items, net (1)
-
-
-
(5 ) (5 )
EBITDA $ 16 $ 29 $ 95
$ (125 ) $ 15
(1) Other items, net primarily consists of
the change in fair value of our common stock warrants.
DYNEGY INC.
OPERATING DATA
The following table provides summary
financial data regarding our Coal, IPH and Gas segment results of
operations for the three months ended March 31, 2016 and 2015,
respectively.
Three Months Ended March 31, 2016
2015 Coal Million Megawatt Hours Generated 7.6
4.8 IMA for Coal-Fired Facilities (1) 81 % 91 % Average Capacity
Factor for Coal-Fired Facilities (2) 46 % 74 % Average Quoted
Market On-Peak Power Prices ($/MWh) (3): Indiana (Indy Hub) $ 25.61
$ 39.27 Commonwealth Edison (NI Hub) $ 27.35 $ 40.82 Mass Hub $
33.85 $ 96.19 AD Hub $ 28.80 $ 45.26 Average Quoted Market Off-Peak
Power Prices ($/MWh) (3): Indiana (Indy Hub) $ 20.18 $ 28.97
Commonwealth Edison (NI Hub) $ 20.55 $ 27.85 Mass Hub $ 26.21 $
76.43 AD Hub $ 22.92 $ 32.27
IPH Million Megawatt
Hours Generated 3.3 5.2 IMA for IPH Facilities (4) 86 % 93 %
Average Capacity Factor for IPH Facilities (5) 39 % 60 % Average
Quoted Market Power Prices ($/MWh) (3): On-Peak: Indiana (Indy Hub)
$ 25.61 $ 39.27 Off-Peak: Indiana (Indy Hub) $ 20.18 $ 28.97
Gas Million Megawatt Hours Generated 13.3 5.0 IMA for
Combined Cycle Facilities (4) 96 % 99 % Average Capacity Factor for
Combined Cycle Facilities (5) 62 % 52 % Average Market On-Peak
Spark Spreads ($/MWh) (6): Commonwealth Edison (NI Hub) $ 13.06 $
17.68 PJM West $ 18.72 $ 17.55 North of Path 15 (NP 15) $ 10.72 $
12.67
New York-Zone A
$ 16.70 $ 39.80 Mass Hub $ 10.83 $ 14.92 AD Hub $ 19.83 $ 31.12
Average Market Off-Peak Spark Spreads ($/MWh) (6): Commonwealth
Edison (NI Hub) $ 6.26 $ 4.71 PJM West $ 12.81 $ 0.98 North of Path
15 (NP 15) $ 6.03 $ 7.25
New York-Zone A
$ 4.92 $ 25.32 Mass Hub $ 3.19 $ (4.84 ) AD Hub $ 13.95 $ 18.13
Average natural gas price-Henry Hub
($/MMBtu) (7)
$ 1.98 $ 2.87 (1)
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. This calculation excludes certain events outside of
management control such as weather related issues. The calculation
for the three months ended March 31, 2016 excludes our Brayton
Point facility and CTs. For the three months ended March 31, 2016,
the IMA for our facilities within MISO and PJM (excluding CTs) were
89 percent and 77 percent, respectively.
(2)
Reflects actual production as a percentage
of available capacity. The calculation for the three months ended
March 31, 2016 excludes our Brayton Point facility and CTs. For the
three months ended March 31, 2016, the average capacity factors for
our facilities within MISO and PJM (excluding CTs) were 50 percent
and 43 percent, respectively.
(3) Reflects the average of day-ahead quoted prices for the periods
presented and does not necessarily reflect prices we realized. (4)
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.
This calculation excludes certain events outside of management
control such as weather related issues. (5) Reflects actual
production as a percentage of available capacity. (6) Reflects the
simple average of the on- and off-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. (7) Reflects the
average of daily quoted prices for the periods presented and does
not reflect costs incurred by us.
DYNEGY INC.
2016 ADJUSTED EBITDA AND FREE CASH FLOW
GUIDANCE
(UNAUDITED) (IN MILLIONS)
The following table provides summary
financial data regarding our 2016 Adjusted EBITDA guidance, updated
based on April 19, 2016 forward curves, as presented on May 3,
2016:
Dynegy Consolidated Low
High Net loss attributable to Dynegy Inc. (1)
$ (351 ) $ (181 ) Plus /
(Less): Income tax expense (2) 16 16 Interest expense 540 545
Earnings from unconsolidated investments (2) (2 ) (2 )
Operating
Income 203 378 Depreciation expense 710 730
Amortization expense 30 30 Earnings from unconsolidated investments
(2) 2 2
EBITDA (3) 945 1,140
Plus / (Less): Earnings from unconsolidated investments (2) (2 ) (2
) Acquisition and integration costs 35 40 Other (4) 22 22
Adjusted EBITDA (3) $ 1,000
$ 1,200 (1) For purposes of Net
loss attributable to Dynegy Inc. guidance reconciliation,
mark-to-market adjustments and changes in the fair value of common
stock warrants are assumed to be zero. (2) Represents actual
amounts for the three months ended March 31, 2016. (3) EBITDA and
Adjusted EBITDA are non-GAAP measures. (4) Represents actual
amounts for three months ended March 31, 2016. Other consists
primarily of cash distributions from unconsolidated investments,
asset retirement obligation accretion, non-cash compensation
expense, and energy margin and operating and maintenance costs
associated with our Wood River facility.
The following table provides summary
financial data regarding our 2016 Free Cash Flow guidance:
Dynegy Consolidated Low
High Adjusted EBITDA (1) $ 1,000
$ 1,200 Cash interest payments (515 ) (515 )
Acquisition and integration costs (35 ) (40 ) Other cash items 10
10
Cash Flow from Operations 460
655 Maintenance capital expenditures (275 ) (275 )
Environmental capital expenditures (20 ) (20 ) Acquisition and
integration costs 35 40
Free Cash Flow (1)
$ 200 $ 400 (1)
Adjusted EBITDA and Free Cash Flow are non-GAAP measures.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160503007101/en/
Dynegy Inc.Media: Micah Hirschfield, 713.767.5800Analysts:
713.507.6466
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From Jul 2023 to Jul 2024