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Vistra(VST) - 2023 Q4 - Annual Results
VSTVistra(VST)2024-02-28 12:06

Financial Performance - Full-year 2023 Net Income of 1,492millionandCashFlowfromOperationsof1,492 million and Cash Flow from Operations of 5,453 million[5] - Operating revenues for 2023 increased to 14.779billion,up7.714.779 billion, up 7.7% from 13.728 billion in 2022[33] - Net income attributable to Vistra common stock for 2023 was 1.343billion,asignificantimprovementfromanetlossof1.343 billion, a significant improvement from a net loss of 1.377 billion in 2022[33] - Cash provided by operating activities in 2023 was 5.453billion,comparedto5.453 billion, compared to 485 million in 2022[35] - Adjusted EBITDA for 2023 was 4.101billion,withtheRetailsegmentcontributing4.101 billion, with the Retail segment contributing 1.105 billion and the Texas segment contributing 1.770billion[39]−Vistra′sconsolidatednetincomefortheyearendedDecember31,2023,wasalossof1.770 billion[39] - Vistra's consolidated net income for the year ended December 31, 2023, was a loss of 1,210 million, with ongoing operations contributing a net income of 1,158millionandTexassegmentreportingalossof1,158 million and Texas segment reporting a loss of 615 million[43] - Adjusted EBITDA for the year ended December 31, 2023, was 2,994million,withongoingoperationscontributing2,994 million, with ongoing operations contributing 3,119 million and asset closure resulting in a negative impact of 125million[43]−Vistra′sadjustedfreecashflowfortheyearendedDecember31,2023,was125 million[43] - Vistra's adjusted free cash flow for the year ended December 31, 2023, was 2,422 million, with ongoing operations contributing 2,491millionandassetclosureresultinginanegativeimpactof2,491 million and asset closure resulting in a negative impact of 69 million[47] Share Repurchases and Capital Allocation - Vistra repurchased approximately 98% of the outstanding beneficial interests in the TRA Rights, increasing expected free cash flow over the next several years[12] - Vistra's Board authorized an additional 1.5billionofsharerepurchases,expectedtobeutilizedbyyear−end2025[5]−Vistraexpectstospend1.5 billion of share repurchases, expected to be utilized by year-end 2025[5] - Vistra expects to spend 2.25 billion on share repurchases in 2024 and 2025[11] - Stock repurchases in 2023 amounted to 1.245billion,downfrom1.245 billion, down from 1.949 billion in 2022[37] Liquidity and Debt - Vistra's total available liquidity as of Dec. 31, 2023, was approximately 5,799million,includingcashandcashequivalentsof5,799 million, including cash and cash equivalents of 3,485 million[19] - The company's cash, cash equivalents, and restricted cash balance at the end of 2023 was 3.539billion,upfrom3.539 billion, up from 525 million at the end of 2022[37] - The company issued 2.498billioninlong−termdebtin2023,comparedto2.498 billion in long-term debt in 2023, compared to 1.498 billion in 2022[37] Hedging and Risk Management - Vistra has hedged approximately 99% of its expected generation volumes for the remainder of 2024 and 87% for 2025[10] - Winter Storm Uri had a negative impact of 319milliononadjustedEBITDA,primarilyduetoa319 million on adjusted EBITDA, primarily due to a 183 million reduction in ERCOT default uplift charges and 144millioninbillcreditstolargecommercialandindustrialcustomers[45]CapitalExpendituresandInvestments−Capitalexpendituresin2023totaled144 million in bill credits to large commercial and industrial customers[45] Capital Expenditures and Investments - Capital expenditures in 2023 totaled 1.676 billion, up 28.8% from 1.301billionin2022[37]−Vistra′scapitalexpendituresfortheyearendedDecember31,2023,included1.301 billion in 2022[37] - Vistra's capital expenditures for the year ended December 31, 2023, included 227 million in LTSA prepaid capital expenditures[48] - The company's 2024 guidance includes 745millioninsolarandstoragedevelopmentexpendituresand745 million in solar and storage development expenditures and 74 million in other growth expenditures[50] Guidance and Future Expectations - Ongoing Operations Adjusted EBITDA for 2023 was 4,140million,4,140 million, 440 million higher than the midpoint of the original guidance range[5] - Vistra's 2024 standalone guidance ranges for Ongoing Operations Adjusted EBITDA is 3,700−3,700 - 4,100 million[9] - Vistra's 2024 guidance for adjusted EBITDA ranges between 3,555millionand3,555 million and 4,055 million, with ongoing operations expected to contribute between 3,700millionand3,700 million and 4,100 million[50] - The company's 2024 guidance for free cash flow ranges between 1,480millionand1,480 million and 1,980 million, with ongoing operations expected to contribute between 1,732millionand1,732 million and 2,132 million[50] - Vistra's 2024 guidance for adjusted free cash flow before growth ranges between 1,650millionand1,650 million and 2,150 million, with ongoing operations expected to contribute between 1,900millionand1,900 million and 2,300 million[50] Acquisitions and Strategic Initiatives - Vistra expects to close the Energy Harbor acquisition on March 1, 2024, adding over 4,000 MW of nuclear generation and approximately 1 million retail customers[15] - Vistra plans to start construction on three larger Illinois solar and energy storage projects in spring 2024[17] Other Financial Items - The company recognized a 29milliongainontherepurchaseofTRARightsinDecember2023[40]−Estimatedbillcreditstobeappliedinfutureperiodsareapproximately29 million gain on the repurchase of TRA Rights in December 2023[40] - Estimated bill credits to be applied in future periods are approximately 11 million for 2024 and 26millionfor2025[41]−TheTexassegment′sdepreciationandamortizationfortheyearendedDecember31,2023,included26 million for 2025[41] - The Texas segment's depreciation and amortization for the year ended December 31, 2023, included 86 million in nuclear fuel amortization[44]