Vistra Corp (VST)

[Enterprising Investor]

Vistra Energy Reports 2016 Results and Reaffirms 2017 Guidance (3/30/17)

DALLAS, March 30, 2017 /PRNewswire/ -- Vistra Energy (OTCQX: VSTE), the parent company for TXU Energy and Luminant, today reported its 2016 financial and operational results. Vistra Energy's predecessor entity, TCEH Corp., emerged from Chapter 11 bankruptcy on October 3, 2016, on which date Vistra Energy adopted fresh-start accounting, which resulted in Vistra Energy becoming a new entity for financial reporting purposes. As a result, Vistra Energy's 2016 results are reported for the predecessor entity for the period from January 1, 2016 through October 2, 2016 (the "Predecessor") and for the successor entity for the period from October 3, 2016 through December 31, 2016 (the "Successor").

The financial statements of Vistra Energy for periods on or after October 3, 2016 are not comparable to the financial statements of the Predecessor prior to that date, as those previous periods do not give effect to any adjustments to the carrying values of assets or amounts of liabilities that resulted from the plan of reorganization, and the related application of fresh-start reporting, which includes accounting policies implemented by Vistra Energy that differ from those of the Predecessor. Please refer to our 2016 Annual Report for additional discussion regarding the accounting impacts of our emergence from Chapter 11 and the application of fresh-start accounting to our GAAP financial statements. Our 2016 Annual Report can be found in the investor relations section of Vistra Energy's website at www.vistraenergy.com.

Given the impacts of fresh-start accounting and the implementation of the plan of reorganization on GAAP earnings in 2016, Vistra Energy believes its non-GAAP financial measures of adjusted EBITDA and adjusted free cash flow are more meaningful in evaluating its full-year performance. Vistra Energy's management team evaluates its financial and operational results utilizing these non-GAAP measures. Combining the 2016 results of the Predecessor and the Successor, Vistra Energy reported 2016 adjusted EBITDA of $1,601 million and, after adjusting the presentation of adjusted free cash flow to exclude changes in working capital and margin deposits, Vistra Energy reported 2016 adjusted free cash flow of $886 million.

Curt Morgan, Vistra Energy's chief executive officer, commented, "2016 was a highly productive year for Vistra Energy, as we delivered very strong results under difficult market conditions, demonstrating the resilience of our integrated model and high-performing commercial and retail operations. We exited bankruptcy with a strong and flexible capital structure, and restructured our support organization costs, paving the way to excel in a highly competitive and challenged marketplace. As we move forward into 2017, we are focused on finalizing the process to list on the New York Stock Exchange, improving our plant performance including portfolio optimization, and implementing our capital allocation process, all with an eye toward delivering value to our shareholders."

2017 Guidance

Vistra Energy is reaffirming its 2017 guidance, reflecting an adjusted EBITDA range of $1,350 million to $1,500 million and an adjusted free cash flow range of $745 million to $925 million.

Liquidity

As of December 31, 2016, Vistra Energy had cash and cash equivalents of $843 million, $131 million in available letter of credit capacity under its term loan C facility, and $860 million of availability under its revolving credit facility, which remained undrawn at December 31, 2016.

Earnings Conference Call

Vistra Energy will host a conference call today, March 30, 2017, beginning at 11 a.m. EDT (10 a.m. CDT) to discuss these results and related matters. The live, listen-only webcast of the conference call can be accessed via the investor relations section of Vistra Energy's website at www.vistraenergy.com. For those unable to participate in the live event, a replay of the call will be available on the Vistra Energy website for one year following the call.

About Non-GAAP Financial Measures and Items Affecting Comparability

"Adjusted EBITDA" (EBITDA as adjusted for unrealized gains or losses from hedging activities, tax receivable agreement obligations, reorganization items, and certain other items described from time to time in Vistra Energy's earnings releases); and "adjusted free cash flow" (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures, other net investment activities, preferred stock dividends, and other items described from time to time in Vistra Energy's earnings releases), are "non-GAAP financial measures." A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in Vistra Energy's consolidated statements of operations, comprehensive income, changes in stockholders' equity and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. Vistra Energy's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

Vistra Energy uses adjusted EBITDA as a measure of performance and believes that analysis of its business by external users is enhanced by visibility to both net income prepared in accordance with GAAP and adjusted EBITDA. Vistra Energy uses adjusted free cash flow as a measure of liquidity and believes that analysis of its ability to service its cash obligations is supported by disclosure of both cash provided by (used in) operating activities prepared in accordance with GAAP as well as adjusted free cash flow. The schedules attached to this earnings release reconcile the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

Media
Allan Koenig
214-875-8004
[e-mail]

Analysts
Molly Sorg
214-812-0046
[e-mail]

About Vistra Energy

Vistra Energy is a premier Texas-based energy company focused on the competitive energy and power generation markets through operation as the largest retailer of electricity and generator in the growing Texas market. Our integrated portfolio of competitive businesses consists primarily of TXU Energy and Luminant. TXU Energy sells retail electricity and value-added services (primarily through our market-leading TXU Energy™ brand) to approximately 1.7 million residential and business customers in Texas. Luminant generates and sells electricity and related products from our diverse fleet of generation facilities totaling approximately 17,000 MW of generation in Texas, including 2,300 MW fueled by nuclear power, 8,000 MW fueled by coal and 6,000 MW fueled by natural gas, and is a large purchaser of wind-generated electricity.

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