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Sep 30, 2021
Vistra Q3 2021 Earnings Report
Vistra's financial performance remained strong, with net income and adjusted EBITDA from ongoing operations reported, and long-term capital allocation plans announced.
Key Takeaways
Vistra reported a net income of $10 million and net income from ongoing operations of $16 million for the third quarter of 2021. The ongoing operations adjusted EBITDA was $1,177 million. The company announced plans to return at least $7.5 billion to common stockholders through year-end 2026.
Net Income was $10 million and Net Income from Ongoing Operations was $16 million.
Ongoing Operations Adjusted EBITDA was $1,177 million.
The company announced a $2 billion share repurchase program.
Vistra expects to commit $300 million annually toward its common dividend program.
Vistra
Vistra
Vistra Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comTexas Revenue
CapyFin.comEast Revenue
CapyFin.comWest Revenue
CapyFin.comAsset Closure Revenue
CapyFin.com Forward Guidance
Vistra raised and narrowed its 2021 Ongoing Operations Adjusted EBITDA guidance range to $1,890 to $2,090 million and revised and narrowed its 2021 Ongoing Operations Adjusted FCFbG guidance range to $100 to $300 million. Vistra is initiating its 2022 Ongoing Operations guidance ranges, forecasting Ongoing Operations Adjusted EBITDA of $2,810 to $3,310 million and Ongoing Operations Adjusted FCFbG of $2,070 to $2,570 million.
Positive Outlook
- Vistra is raising and narrowing its 2021 Ongoing Operations Adjusted EBITDA1 guidance range to $1,890 to $2,090 million.
- Vistra is revising and narrowing its 2021 Ongoing Operations Adjusted FCFbG1 guidance range to $100 to $300 million.
- Vistra is initiating its 2022 Ongoing Operations guidance ranges, forecasting Ongoing Operations Adjusted EBITDA1 of $2,810 to $3,310 million.
- Vistra is forecasting Ongoing Operations Adjusted FCFbG1 of $2,070 to $2,570 million.
- Vistra's 2022 guidance ranges include the negative impact of ~$185 million from bill credits applied to large commercial and industrial customers that curtailed during Uri and the negative impact of ~$55 million from the execution of NPV-positive, long-dated contracts with retail customers.
Challenges Ahead
- Vistra's 2022 guidance ranges include the negative impact of ~$185 million from bill credits applied to large commercial and industrial customers that curtailed during Uri.
- Vistra's 2022 guidance ranges include the negative impact of ~$55 million from the execution of NPV-positive, long-dated contracts with retail customers.
- The Ongoing Operations Adjusted EBITDA guidance range includes ~$500 million6 from ERCOT’s securitization of certain Uri-related costs borne by load-serving entities, which partially offsets the retail portion of the greater than $2 billion financial loss Vistra recorded in the first quarter of 2021.
- The cash impact of the securitization is reflected in Vistra’s 2022 Adjusted FCFbG guidance range, which is the year in which the company expects to receive the cash proceeds.
- The inclusion of the securitization proceeds in Ongoing Operations Adjusted EBITDA guidance is a non-GAAP determination at this time, reflecting management’s view of the financial impact of securitization on operating results, which offsets a portion of the Uri-related retail costs incurred during the first quarter of 2021, and the representative period for which the proceeds relate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income