Dynegy Inc. (NYSE: DYN):
Summary of Second Quarter 2017 Financial Results (in
millions):
Three Months EndedJune
30,
Six Months EndedJune 30,
2017 2016 2017 2016
Operating Revenues $ 1,164 $ 904 $ 2,411 $ 2,027 Net Income (loss)
$ (296 ) $ (803 ) $ 300 $ (813 ) Adjusted EBITDA (1) $ 240 $ 187 $
470 $ 438
Reaffirming 2017 Guidance Ranges (in millions):
Adjusted EBITDA (1) $1,200 -
$1,400 Adjusted Free Cash Flow (1) $300 - $500
Second Quarter Operating Highlights:
- Achieved top decile safety performance
across the entire company
- Generated more than 25 million megawatt
hours
- Ceased operations at Brayton Point
facility on May 31; related inventory financing fully repaid
- Outstanding collateral declined by
approximately $85 million during the quarter
- $1.4 billion in liquidity at
June 30, 2017; excludes asset sale proceeds of approximately
$480 million received in July
Portfolio Transformation:
- Completed sale of Troy and Armstrong
facilities; received approximately $480 million in cash
proceeds
- Announced sale of Dighton, Lee and
Milford (MA) facilities for approximately $300 million
- Completed 43 MW of uprates at Liberty
and Milford (CT) averaging $175/kW
- Closed Conesville/Zimmer transaction
with AEP
__________________________________________
(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 a net loss of $296 million for
the second quarter of 2017, compared to a net loss of $803 million
for the second quarter of 2016. Results for the most recent quarter
were impacted by positive contributions from assets acquired from
ENGIE (ENGIE assets) in February 2017 and a non-cash asset
impairment related to certain coal facilities in MISO. Results for
the second quarter of 2016 were negatively impacted by a non-cash
asset impairment charge related to the retirement of certain
generation units last year.
The Company reported consolidated Adjusted EBITDA of $240
million for the 2017 second quarter compared to $187 million for
the 2016 second quarter as the positive contribution from the ENGIE
assets and higher capacity revenues in the MISO and IPH segments
more than offset lower energy margins in PJM.
Net income for the first half of 2017 was $300 million compared
to a net loss of $813 million for the first half of 2016. The
year-to-date increase was primarily driven by a $329
million deferred tax valuation allowance reversal, a $482
million gain related to the Genco financial restructuring and
contributions from the ENGIE assets, while second quarter 2016
results were impacted by the asset impairment noted above.
For the first half of 2017, the Company reported consolidated
Adjusted EBITDA of $470 million compared to $438 million for the
first half of 2016. The $32 million increase in Adjusted EBITDA was
primarily driven by the ENGIE assets. Partially offsetting these
improvements were compressed energy margins, particularly in our
natural gas fleet, as natural gas prices rose faster than power
prices which compressed spark spreads during the period.
“Going into the second quarter, our priorities were to prepare
the fleet and workforce for the important summer season, hit our
financial targets and increase our liquidity in preparation for the
pay down of our 2019 debt maturity later this year. By all measures
we had a very successful quarter,” said Robert Flexon, Dynegy
President and Chief Executive Officer. “The balance of the year
will bring added emphasis on analyzing our operating practices to
drive additional efficiencies in preparation for the next
generation of our PRIDE improvement plan and reducing our
leverage.”
Second Quarter Comparative
Results
Quarter Ended June 30, 2017
2016 (in millions)
OperatingIncome (Loss)
Adjusted EBITDA (1)
OperatingIncome (Loss)
Adjusted EBITDA (1) PJM $ 6 $ 168 $ 71 $ 152 NY/NE (1
) 60 (5 ) 34 ERCOT (30 ) 1
-
-
MISO (98 ) 3 (729 ) 4 IPH 11 47 3 11 CAISO (19 ) (1 ) 4 21 Other
(51 ) (38 ) (46 ) (35 ) Total $ (182 ) $ 240 $ (702 ) $ 187
__________________________________________
(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 second quarter
totaled $6 million, compared to operating income of $71 million for
the same period of 2016. The decline was primarily due to lower
spark spreads, non-cash mark-to-market losses on derivatives and a
non-cash loss associated with the Conesville/Zimmer ownership
interest exchange. Adjusted EBITDA totaled $168 million during the
2017 second quarter compared to $152 million during the same period
in 2016 as contributions from the ENGIE assets and higher energy
margins from the coal fleet more than offset weaker spark spreads
at the gas fleet.
NY/NE - Operating loss for the 2017 second quarter
totaled $1 million, compared to operating loss of $5 million for
the same period in 2016. Adjusted EBITDA totaled $60 million during
the 2017 second quarter, compared to $34 million during the same
period in 2016 with the increase primarily due to the contributions
from the ENGIE assets.
ERCOT - Operating loss for the 2017 second quarter
totaled $30 million as energy margin of $29 million was offset by
$29 million of O&M expenses, $21 million of depreciation
expense and $8 million of non-cash mark-to-market losses on
derivatives. Adjusted EBITDA was $1 million for the same period.
During the second quarter, Dynegy completed multiple planned
outages at the ERCOT facilities in order to prepare for the summer
cooling season.
MISO - Operating loss for the 2017 second quarter totaled
$98 million, compared to an operating loss of $729 million for the
same period in 2016. Previous year results were impacted by asset
impairments, however 2017 results benefited from lower O&M
costs and non-cash mark-to-market income on derivatives. Adjusted
EBITDA totaled $3 million during the 2017 second quarter compared
to $4 million during the same period in 2016.
IPH - Operating income for the 2017 second quarter
totaled $11 million, compared to $3 million for the same period of
2016 due to higher capacity revenues. Adjusted EBITDA totaled $47
million during the 2017 second quarter compared to $11 million
during the same period in 2016 due to higher capacity revenues and
the receipt of contingent proceeds in 2017 related to the 2013
Ameren acquisition.
CAISO - Operating loss for the 2017 second quarter
totaled $19 million, compared to operating income of $4 million for
the same period in 2016. The decrease is due to lower capacity
revenues and higher depreciation. Adjusted EBITDA loss totaled $1
million during the 2017 second quarter compared to Adjusted EBITDA
of $21 million during the same period in 2016 due to lower capacity
revenues and a one-time supplier settlement in 2016.
Liquidity
As of June 30, 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) $ 1,650 Less: Outstanding revolvers
(300 ) Outstanding LCs (413 ) Revolving facilities and LC
availability 937 Cash and cash equivalents 447 Total
available liquidity $ 1,384
__________________________________________
(1) Dynegy Inc. includes $1.5 billion in senior secured
revolving credit facilities and $105 million related to LCs.
During the second quarter, outstanding collateral declined by
approximately $85 million primarily due to the AEP transaction
closing and the subsequent return of a $58 million letter of
credit, as well as other collateral efficiency initiatives.
Additionally, upon retirement of the Brayton Point Power Station,
the associated inventory financing was fully paid and
extinguished.
Consolidated Cash Flow
Cash provided by operations totaled $230 million for the first
half of 2017. During the period, our power generation facilities
and retail operations provided cash of $523 million. Corporate
activities, primarily related to general and administrative,
interest and acquisition-related expenses, as well as other working
capital changes, used cash of $293 million during the period.
Cash used in investing activities totaled $3.3 billion during
the first half of 2017 as Dynegy used $3,263 million at the ENGIE
acquisition closing and invested $86 million in capital
expenditures.
Cash used in financing activities totaled $275 million for the
first half of 2017.
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 affirmed at $300-$500 million. The Company is
maintaining these guidance ranges despite foregoing approximately
$55 million in forecasted Adjusted EBITDA from the later than
expected closing of the ENGIE acquisition and the mid-year sale of
the Troy and Armstrong facilities which were included for the full
12 months guidance target when originally issued.
Retail Growth
Dynegy’s business has grown to serve approximately 1.2 million
residential and commercial accounts. The retail business expanded
to New England this summer with its municipal aggregation contracts
in the greater Boston area. The Company now provides electricity to
more than 550 communities in Illinois, Massachusetts and Ohio.
Safety
Dynegy’s safety performance has reached the top decile for the
industry. Both coal and gas facilities are focused on intensive
safety initiatives helping to drive safety culture: second quarter
2017 saw safety performance improved with 40% fewer injuries
overall compared to 2016. Dynegy expects that all its plants will
complete the Voluntary Protection Program (VPP) certification, a
rigorous evaluation process conducted by the Occupational Safety
and Health Administration, within the next three years. The Lake
Road plant received its VPP certification renewal during the second
quarter.
Asset Portfolio Updates
PJM and ISO-NE Asset Sales
On July 10, Dynegy reached agreements to sell three generating
assets for approximately $300 million.
Lee Energy Facility, a 625 MW (summer capacity rating)
gas-fueled peaking asset in the PJM ComEd region will be sold to an
affiliate of Rockland Capital for $180 million in cash, and the
sale will enable the company to avoid significant incremental
capital investments necessary to convert the plant to dual fuel
status in order to meet PJM capacity performance obligations.
Dynegy also signed a purchase and sale agreement with Starwood
Energy Group Global to sell two intermediate gas-fueled plants
located in Dighton and Milford, Massachusetts for $119 million in
cash. The Dighton and Milford sale fulfills the mitigation plan
approved by the Federal Energy Regulatory Commission (FERC)
regarding the Company’s purchase of ENGIE’s US-based asset
portfolio.
On July 11, Dynegy completed the sale of two peaking units, Troy
and Armstrong Energy Facilities, and received approximately $480
million in cash proceeds.
In total, these asset sales will provide approximately $780
million in proceeds which will be used for debt reduction.
AEP Conesville/Zimmer Transaction Complete
On May 9, Dynegy finalized the sale of its 40% ownership
interest (312 MW) in Conesville Power Station to AEP and acquired
AEP’s 25.4% ownership interest (330 MW) in Zimmer Power Station. No
cash was exchanged, no additional debt incurred and AEP returned
$58 million in letters of credit previously posted
by Dynegy.
As a result, Dynegy owns 71.9% (971 MW) and continues to operate
Zimmer. Dynegy no longer has an ownership interest in the
AEP-operated Conesville.
AES Miami Fort/Zimmer Ownership Consolidation Update
On April 21, Dynegy reached agreement 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. The transaction close is
pending FERC approval, anticipated to come by year end.
Uprate Program Developments
We completed 43 MW of low-cost uprates at Liberty and Milford
(CT) averaging $175/kW, bringing our uprate total to 702 MW over
the past three years.
PRIDE and ENGIE Synergies
Update
Dynegy’s PRIDE Energized (Producing Results through Innovation
by Dynegy Employees) program is on track to meet or exceed its 2017
target of $65 million in EBITDA by the end of the fourth quarter.
Through its PRIDE program, Dynegy has already exceeded its
three-year goal of $400 million in balance sheet improvements with
$422 million in improvements accomplished in 2016. Dynegy has
identified more than $100 million of incremental balance sheet
opportunities that will result in more than $500 million in PRIDE
improvements secured over the course of 2016 and 2017.
Dynegy has completed the ENGIE integration and achieved the
expected $120 million in synergies. Any future opportunities
related to the ENGIE assets will be incorporated in the PRIDE
program for which we expect to provide enhanced targets later this
year.
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 second quarter financial results during an
investor conference call and webcast tomorrow, August 4, 2017
at 9 am ET/8 am 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 28,000 megawatts of
electricity—or enough energy to power about 22 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 the Lee, Dighton and Milford (MA)
facilities; execution of its PRIDE Energized target in balance
sheet and operating improvements, including beliefs regarding the
next generation of PRIDE; broadening the retail platform;
achievement of OSHAs VPP certification within the next three years;
the execution and timing of debt repayments and various delevering
strategies; anticipated FERC approval, closing and ownership
consolidation of Zimmer and Miami Fort units; 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 maturities and improving Dynegy’s leverage profile; (xx)
expectations, timing and benefits of the AES transaction; (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, anticipated benefits and FERC
mitigation efforts resulting from 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.
DYNEGY INC.
REPORTED UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS
(IN MILLIONS, EXCEPT PER SHARE
DATA)
Three Months EndedJune
30,
Six Months EndedJune 30,
2017 2016 2017 2016
Revenues $ 1,164 $ 904 $ 2,411 $ 2,027 Cost of sales, excluding
depreciation expense (681 ) (493 ) (1,438 ) (1,038 )
Gross margin
483 411 973 989 Operating and maintenance expense (282 ) (256 )
(514 ) (477 ) Depreciation expense (209 ) (160 ) (409 ) (331 )
Impairments (99 ) (645 ) (119 ) (645 ) Loss on sale of assets, net
(29 )
-
(29 )
-
General and administrative expense (42 ) (39 ) (82 ) (76 )
Acquisition and integration costs (7 ) 3 (52 ) (1 ) Other 3
(16 ) 1 (16 ) Operating loss (182 ) (702 ) (231 ) (557 )
Bankruptcy reorganization items (1 )
-
482
-
Earnings from unconsolidated investments 1 1
-
3 Interest expense (159 ) (141 ) (326 ) (283 ) Other income and
expense, net 29 30 46 31 Loss before
income taxes (312 ) (812 ) (29 ) (806 ) Income tax benefit
(expense) 16 9 329 (7 ) Net income (loss) (296
) (803 ) 300 (813 ) Less: Net loss attributable to noncontrolling
interest
-
(2 ) (1 ) (2 ) Net income (loss) attributable to Dynegy Inc.
(296 ) (801 ) 301 (811 ) Less: Dividends on preferred stock 6
6 11 11 Net income (loss) attributable
to Dynegy Inc. common stockholders $ (302 ) $ (807 ) $ 290 $
(822 )
Earnings (Loss) Per Share: Basic earnings
(loss) per share attributable to Dynegy Inc. common stockholders $
(1.96 ) $ (6.73 ) $ 1.91 $ (6.97 ) Diluted earnings (loss) per
share attributable to Dynegy Inc. common stockholders $ (1.96 ) $
(6.73 ) $ 1.76 $ (6.97 ) Basic shares outstanding 154 120
152 118 Diluted shares outstanding 154 120 171 118
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 and six months ended June
30, 2017 and 2016:
Three Months EndedJune
30,
Six Months EndedJune 30,
(in millions) 2017 2016 2017
2016 Shares outstanding at the beginning of the
period (1) 154 117 140 117 Weighted-average shares outstanding
during the period of: Shares issued under long-term compensation
plans
-
-
1
-
Shares issued under the PIPE Transaction
-
-
11
-
Prepaid stock purchase contract (TEUs) (1)
-
3
-
1 Basic weighted-average shares outstanding 154 120 152 118
Dilution from potentially dilutive shares (2)
-
-
19
-
Diluted weighted-average shares outstanding (3) 154 120
171 118
_________________________________________
(1)
The minimum settlement amount of the TEUs,
or 23,092,460 shares, is considered to be outstanding since the
issuance date of June 21, 2016, and is included in the computation
of basic earnings (loss) per share for the three and six months
ended June 30, 2017 and 2016.
(2) Shares included in the computation of diluted earnings (loss)
per share for the six months ended June 30, 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. (3) 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 June
30, 2017 and three and six months ended June 30, 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 and six months ended
June 30, 2017 and 2016, respectively.
Three Months EndedJune
30,
Six Months EndedJune 30,
2017 2016 2017 2016
PJM Million Megawatt Hours Generated (1) 10.9 11.2 24.3 24.2
IMA (1)(2): Combined Cycle Facilities 87 % 98 % 88 % 98 %
Coal-Fueled Facilities 70 % 79 % 68 % 78 % Average Capacity Factor
(1)(3): Combined Cycle Facilities 51 % 62 % 59 % 72 % Coal-Fueled
Facilities 50 % 46 % 55 % 44 % CDDs (4) 349 331 350 334 HDDs (4)
411 589 2,636 3,038 Average Market On-Peak Spark Spreads ($/MWh)
(5): PJM West $ 15.76 $ 21.15 $ 13.57 $ 19.94 AD Hub $ 16.56 $
27.53 $ 14.59 $ 29.68 Average Market On-Peak Power Prices ($/MWh)
(6): PJM West $ 33.24 $ 32.07 $ 32.88 $ 31.78 AD Hub $ 33.59 $
30.43 $ 32.49 $ 29.61 Average natural gas price—TetcoM3 ($/MMBtu)
(7) $ 2.50 $ 1.55 $ 2.76 $ 1.69
NY/NE Million
Megawatt Hours Generated (1) 4.2 3.8 8.9 7.7 IMA for Combined Cycle
Facilities (1)(2) 96 % 95 % 97 % 92 % Average Capacity Factor for
Combined Cycle Facilities (1)(3) 37 % 46 % 37 % 43 % CDDs (4) 202
150 202 150 HDDs (4) 780 839 3,552 3,558 Average Market On-Peak
Spark Spreads ($/MWh) (5): New York—Zone C $ 9.63 $ 13.73 $ 10.69 $
13.04 Mass Hub $ 12.07 $ 11.02 $ 9.35 $ 10.92 Average Market
On-Peak Power Prices ($/MWh) (6): New York—Zone C $ 26.67 $ 24.09 $
28.59 $ 22.71 Mass Hub $ 32.19 $ 28.17 $ 34.98 $ 31.01 Average
natural gas price—Algonquin Citygates ($/MMBtu) (7) $ 2.87 $ 2.44 $
3.66 $ 2.87
ERCOT Million Megawatt Hours Generated
(1) 3.2
-
3.8
-
IMA (1)(2): Combined-Cycle Facilities 91 %
-
% 93 %
-
% Coal-Fueled Facility 100 %
-
% 98 %
-
% Average Capacity Factor (1)(3): Combined-Cycle Facilities 26 %
-
% 20 %
-
% Coal-Fueled Facility 81 %
-
% 56 %
-
% CDDs (4) 1,070 982 1,337 1,102 HDDs (4) 17 30 511 788 Average
Market On-Peak Spark Spreads ($/MWh) (5): ERCOT North $ 7.71 $
10.64 $ 5.91 $ 8.64 Average Market On-Peak Power Prices ($/MWh)
(6): ERCOT North $ 26.76 $ 24.29 $ 25.15 $ 21.95 Average natural
gas price—Waha Hub ($/MMBtu) (7) $ 2.72 $ 1.95 $ 2.75 $ 1.90
MISO Million Megawatt Hours Generated 2.7 3.6 5.4 7.0 IMA
for Coal-Fueled Facilities (2) 84 % 86 % 87 % 87 % Average Capacity
Factor for Coal-Fueled Facilities (3) 65 % 59 % 65 % 54 % CDDs (4)
420 472 476 500 HDDs (4) 459 535 2,662 2,959 Average Market On-Peak
Power Prices ($/MWh) (6): Indiana (Indy Hub) $ 35.03 $ 31.14 $
33.84 $ 28.38 Commonwealth Edison (NI Hub) $ 33.16 $ 28.87 $ 31.71
$ 28.11
IPH Million Megawatt Hours Generated 4.2 3.3
8.0 6.6 IMA for IPH Facilities (2) 88 % 91 % 87 % 89 % Average
Capacity Factor for IPH Facilities (3) 58 % 38 % 55 % 38 % CDDs (4)
420 472 476 500 HDDs (4) 459 535 2,662 2,959 Average Market On-Peak
Power Prices ($/MWh) ($/MWh) (6): Indiana (Indy Hub) $ 35.03 $
31.14 $ 33.84 $ 28.38 Commonwealth Edison (NI Hub) $ 33.16 $ 28.87
$ 31.71 $ 28.11
CAISO Million Megawatt Hours
Generated 0.2 0.8 0.5 1.4 IMA for Combined Cycle Facilities (2) 78
% 99 % 85 % 99 % Average Capacity Factor for Combined Cycle
Facilities (3) 11 % 32 % 12 % 31 % CDDs (4) 303 284 328 328 HDDs
(4) 148 122 866 715 Average Market On-Peak Spark Spreads ($/MWh)
(5): North of Path 15 (NP 15) $ 9.50 $ 10.76 $ 8.92 $ 10.74 Average
natural gas price—PG&E Citygate ($/MMBtu) (7) $ 3.27 $ 2.17 $
3.31 $ 2.18
__________________________________________
(1) Million Megawatt Hours Generated and Average Capacity
Factor include such activity for the full month of February. IMA
excludes such activity for our period of ownership in February. (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
EBITDA
THREE MONTHS ENDED JUNE 30,
2017
(UNAUDITED) (IN MILLIONS)
The following table provides summary
financial data regarding our Adjusted EBITDA by segment for the
three months ended June 30, 2017:
Three Months Ended June 30, 2017 PJM
NY/NE ERCOT MISO
IPH CAISO Other
Total Net loss $ (296 ) Plus / (Less): Income tax
benefit (16 ) Other income and expense, net (29 ) Interest expense
159 Earnings from unconsolidated investments (1 ) Bankruptcy
reorganization items 1
Operating income (loss) $ 6 $
(1 ) $ (30 ) $ (98 ) $ 11 $ (19 ) $ (51 ) $ (182 ) Depreciation and
amortization expense 98 59 22 7 13 14 2 215 Bankruptcy
reorganization items
-
-
-
-
(1 )
-
-
(1 ) Earnings from unconsolidated investments 1
-
-
-
-
-
-
1 Other income and expense, net
-
-
-
-
25
-
4 29
EBITDA (1) 105 58 (8 ) (91 ) 48 (5
) (45 ) 62 Plus / (Less): Adjustments to reflect Adjusted EBITDA
from unconsolidated investments and exclude noncontrolling interest
(1 )
-
-
-
(1 )
-
-
(2 ) Acquisition, integration and restructuring costs
-
-
-
-
-
-
6 6 Bankruptcy reorganization items
-
-
-
-
1
-
-
1 Mark-to-market adjustments, including warrants 31 2 8 (4 )
-
4 (3 ) 38 Impairments
-
-
-
99
-
-
-
99 Loss (gain) on sale of assets 30
-
-
-
(1 )
-
-
29 Non-cash compensation expense
-
-
-
-
-
-
5 5 Other 3
-
1 (1 )
-
-
(1 ) 2
Adjusted EBITDA (1)(2) $ 168 $
60 $ 1 $ 3 $ 47 $ (1 ) $ (38 ) $ 240
__________________________________________
(1) EBITDA and Adjusted EBITDA are non-GAAP financial
measures. Please refer to Item 2.02 of our Form 8-K filed on August
3, 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
EBITDA
THREE MONTHS ENDED JUNE 30,
2016
(UNAUDITED) (IN MILLIONS)
The following table provides summary
financial data regarding our Adjusted EBITDA by segment for the
three months ended June 30, 2016:
Three Months Ended June 30, 2016 PJM
NY/NE ERCOT MISO
IPH CAISO Other
Total Net loss $ (803 ) Plus / (Less):
Income tax benefit
(9 ) Other income and expense, net (30 ) Interest expense 141
Earnings from unconsolidated investments (1 )
Operating income
(loss) $ 71 $ (5 ) $
-
$ (729 ) $ 3 $ 4 $ (46 ) $ (702 ) Depreciation and amortization
expense 84 60
-
9 3 6 2 164 Earnings from unconsolidated investments 1
-
-
-
-
-
-
1 Other income and expense, net 6
-
-
-
14 12 (2 ) 30
EBITDA (1) 162 55
-
(720 ) 20 22 (46 ) (507 ) Plus / (Less): Adjustments to reflect
Adjusted EBITDA from unconsolidated investments and exclude
noncontrolling interest 1
-
-
-
2
-
-
3 Acquisition, integration and restructuring costs
-
-
-
-
(8 )
-
5 (3 ) Mark-to-market adjustments, including warrants (12 ) (21 )
-
65 (2 ) (1 )
-
29 Impairments
-
-
-
645
-
-
-
645 Non-cash compensation expense 1
-
-
-
-
-
4 5 Other (2)
-
-
-
14 (1 )
-
2 15
Adjusted EBITDA (1) $ 152 $
34 $
-
$ 4 $ 11 $ 21 $ (35 ) $ 187
__________________________________________
(1) EBITDA and Adjusted EBITDA are non-GAAP financial
measures. Please refer to Item 2.02 of our Form 8-K filed on August
3, 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 $15 million.
DYNEGY INC.
REG G RECONCILIATIONS - ADJUSTED
EBITDA
SIX MONTHS ENDED JUNE 30,
2017
(UNAUDITED) (IN MILLIONS)
The following table provides summary
financial data regarding our Adjusted EBITDA by segment for the six
months ended June 30, 2017:
Six Months Ended June 30, 2017 PJM
NY/NE ERCOT MISO
IPH CAISO Other
Total Net income $ 300 Plus / (Less): Income tax
benefit (329 ) Other income and expense, net (46 ) Interest expense
326 Bankruptcy reorganization items (482 )
Operating income
(loss) $ 92 $ (42 ) $ (58 ) $ (81 ) $ 29 $ (33 ) $ (138 ) $
(231 ) Depreciation and amortization expense 198 127 35 15 27 29 4
435 Bankruptcy reorganization items
-
-
-
-
482
-
-
482 Other income and expense, net
-
-
-
-
26
-
20 46
EBITDA (1) 290 85 (23 ) (66 ) 564
(4 ) (114 ) 732 Plus / (Less): Adjustments to reflect Adjusted
EBITDA from unconsolidated investments and exclude noncontrolling
interest
-
-
-
-
(1 )
-
-
(1 ) Acquisition, integration and restructuring costs
-
-
-
-
-
-
52 52 Bankruptcy reorganization items
-
-
-
-
(482 )
-
-
(482 ) Mark-to-market adjustments, including warrants 16 17 14 (19
) (1 )
-
(15 ) 12 Impairments 20
-
-
99
-
-
-
119 Loss (gain) on sale of assets 30
-
-
-
(1 )
-
-
29 Non-cash compensation expense
-
-
-
-
-
-
10
10 Other 3
-
1 (1 ) (1 )
-
(3 ) (1 )
Adjusted EBITDA (1)(2) $ 359 $ 102
$ (8 ) $ 13 $ 78 $ (4 ) $ (70 ) $ 470
__________________________________________
(1) EBITDA and Adjusted EBITDA are non-GAAP financial
measures. Please refer to Item 2.02 of our Form 8-K filed on August
3, 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
EBITDA
SIX MONTHS ENDED JUNE 30,
2016
(UNAUDITED) (IN MILLIONS)
The following table provides summary
financial data regarding our Adjusted EBITDA by segment for the six
months ended June 30, 2016:
Six Months Ended June 30, 2016 PJM
NY/NE ERCOT MISO
IPH CAISO Other
Total Net loss $ (813 ) Plus / (Less): Income tax
expense 7 Other income and expense, net (31 ) Interest expense 283
Earnings from unconsolidated investments (3 )
Operating income
(loss) $ 248 $ (7 ) $
-
$ (716 ) $ 17 $ (10 ) $ (89 ) $ (557 ) Depreciation and
amortization expense 167 135
-
18 13 18 3 354 Earnings from unconsolidated investments 3
-
-
-
-
-
-
3 Other income and expense, net 6
-
-
-
14 12 (1 ) 31
EBITDA (1) 424 128
-
(698 ) 44 20 (87 ) (169 ) Plus / (Less): Adjustments to reflect
Adjusted EBITDA from unconsolidated investments and exclude
noncontrolling interest 4
-
-
-
2
-
-
6 Acquisition and integration costs
-
-
-
-
(8 )
-
9 1 Bankruptcy reorganization items
-
-
-
-
-
-
-
-
Mark-to-market adjustments, including warrants (68 ) (41 )
-
37 (5 ) 1 (1 ) (77 ) Impairments
-
-
-
645
-
-
-
645 Non-cash compensation expense 1
-
-
-
-
-
11 12 Other (2)
-
-
-
19 (1 )
-
2 20
Adjusted EBITDA (1) $ 361 $
87 $
-
$ 3 $ 32 $ 21 $ (66 ) $ 438
__________________________________________
(1) EBITDA and Adjusted EBITDA are non-GAAP financial
measures. Please refer to Item 2.02 of our Form 8-K filed on August
3, 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 $20 million for the six months
ended June 30, 2016.
DYNEGY INC.
REG G RECONCILIATIONS - 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 (1) $ 371
$ 566 Plus / (Less): Interest expense 645 655 Tax
benefit (320 ) (330 ) Depreciation and amortization expense 815
835
EBITDA (2) 1,511 1,726 Plus
/ (Less): Acquisition, integration and restructuring costs 50 55
Bankruptcy reorganization items (480 ) (500 ) Impairments 119
119
Adjusted EBITDA (2) $ 1,200
$ 1,400 Cash interest payments (600 ) (600 )
Acquisition, integration and restructuring costs (50 ) (55 ) Other
cash items (90 ) (90 )
Cash Flow from Operations 460
655 Maintenance capital expenditures (200 ) (200 )
Environmental capital expenditures (10 ) (10 ) Acquisition,
integration and restructuring costs 50 55
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 August 3, 2017, for definitions, utility and
uses of such non-GAAP financial measures.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170803006501/en/
Dynegy Inc.Media:Julius Cox, 713.767.5800orAnalysts:
713.507.6466
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