Vistra Corp. Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Performance Overview

  • Adjusted EBITDA from ongoing operations was $825 million. Excluding Winter Storm Uri–related impacts (bill credits and higher fuel costs), adjusted EBITDA was $909 million, roughly in line with Q2 2020's strong performance.
  • Retail segment EBITDA increased by $109 million versus Q2 2020, driven by self-help operational initiatives.
  • Generation segment EBITDA declined by $213 million versus Q2 2020, reflecting lower realized Texas prices after a strong 2020 and lower capacity revenues.
  • Management reaffirmed full-year 2021 adjusted EBITDA and free cash flow guidance ranges.
  • Excluding Uri impacts, the company would be tracking to meet or exceed its pre‑Uri 2021 guidance midpoint of $3.275 billion in adjusted EBITDA.

Outlook for 2022 and Beyond

  • Forward power curves in ERCOT, PJM, and other markets have strengthened meaningfully, particularly ERCOT winter and summer pricing.
  • Vistra is now hedged 54% in ERCOT and 93% in PJM for 2022, up from 40% and 50% respectively.
  • Management continues to believe 2022 adjusted EBITDA could reach approximately $3.4 billion (excluding Uri bill credits), aligning with the average of 2020 and pre-Uri 2021 guidance midpoints.
  • Expected 2022 free cash flow conversion remains strong at 60% to 70%.

Operational & Market Developments

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Operator: Good morning, everyone and welcome to the Vistra Second Quarter 2021 Investor Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Molly Sorg, Head of Investor Relations. Please go ahead. Molly Sorg: Thank you and good morning everyone. Welcome to Vistra’s second quarter 2021 results conference call, which is being broadcast live from the Investor Relations section of our website at www.vistracorp.com. Also available on our website are a copy of today’s investor presentation, our Form 10-Q and the related press release. Joining me for today’s call are Curt Morgan, Chief Executive Officer and Jim Burke, President and Chief Financial Officer. We have a few additional senior executives present to address questions during the second part of today’s call as necessary. Before we begin our presentation, I encourage all listeners to review the Safe Harbor statements included on Slides 2 and 3 in the investor presentation on our website that explain the risks of forward-looking statements, the limitations of certain industry and market data included in the presentation and the use of non-GAAP financial measures. Today’s discussion will contain forward-looking statements, which are based on assumptions we believe to be reasonable only as of today’s date. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those

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