Vistra Q3 2021 Earnings Report
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
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