Vistra(VST) - 2023 Q4 - Annual Results

Financial Performance - Full-year 2023 Net Income of $1,492 million and Cash Flow from Operations of $5,453 million[5] - Operating revenues for 2023 increased to $14.779 billion, up 7.7% from $13.728 billion in 2022[33] - Net income attributable to Vistra common stock for 2023 was $1.343 billion, a significant improvement from a net loss of $1.377 billion in 2022[33] - Cash provided by operating activities in 2023 was $5.453 billion, compared to $485 million in 2022[35] - Adjusted EBITDA for 2023 was $4.101 billion, with the Retail segment contributing $1.105 billion and the Texas segment contributing $1.770 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 $1,158 million and Texas segment reporting a loss of $615 million[43] - Adjusted EBITDA for the year ended December 31, 2023, was $2,994 million, with ongoing operations contributing $3,119 million and asset closure resulting in a negative impact of $125 million[43] - Vistra's adjusted free cash flow for the year ended December 31, 2023, was $2,422 million, with ongoing operations contributing $2,491 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 $1.5 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 $1.245 billion, down from $1.949 billion in 2022[37] Liquidity and Debt - Vistra's total available liquidity as of Dec. 31, 2023, was approximately $5,799 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 $3.539 billion, up from $525 million at the end of 2022[37] - The company issued $2.498 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 $319 million on adjusted EBITDA, primarily due to a $183 million reduction in ERCOT default uplift charges and $144 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 $1.301 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 $745 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 $4,140 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 - $4,100 million[9] - Vistra's 2024 guidance for adjusted EBITDA ranges between $3,555 million and $4,055 million, with ongoing operations expected to contribute between $3,700 million and $4,100 million[50] - The company's 2024 guidance for free cash flow ranges between $1,480 million and $1,980 million, with ongoing operations expected to contribute between $1,732 million and $2,132 million[50] - Vistra's 2024 guidance for adjusted free cash flow before growth ranges between $1,650 million and $2,150 million, with ongoing operations expected to contribute between $1,900 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 $29 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 $26 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]