Investor Presentaiton slide image

Investor Presentaiton

Market Curves and Hedge Position Update VISTRA Vistra's comprehensive hedging program results in a more stable earnings profile and provides opportunities to lock-in significant gross margin in the outer years ERCOT 7x24 ($/MWh) $60 $50 $40 PJM 7x24 ($/MWh) $70 $60 $50 $40 $30 $20 $20 2023 2024 2025 2026 2027 2028 2023 2024 -4/29/2022 -5/4/2023 $30 2025 2026 2027 2028 -4/29/2022 -5/4/2023 Vistra Standalone³ As of May 9, 2023: Significantly hedged in 2023 and 2024; supports guidance and insulates near-term price volatility; as of March 31, 2023, Vistra was ~86% hedged for 2023 - 2025¹ ✓ 2023 99% hedged 2024 96% hedged $40 $30 $20 $10 ERCOT 7x16 Spark Spread 4 $40 $30 $20 $10 PJM 7x16 Spark Spread4 5- $- 2023 2024 2025 2026 2027 2028 2023 2024 2025 2026 2027 2028 -4/29/2022 5/4/2023 -4/29/2022 5/4/2023 Currently expect upside to the previously announced $3.5 billion - $3.7 billion Adj. EBITDA² mid-point opportunities for 2024 and 2025,3 primarily due to ✓ opportunistic hedging since the announcement in May 2022 ✓ elevated power prices and spark spread levels Significant opportunity in 2026, but with a wider range given we are materially more open in 2026 than 2023-2025 Average hedging percentage is across years 2023-2025, across all markets. See appendix for similar charts on NY/NE and CAISO markets. 1. 2. 3. 4. Adj. EBITDA is a reference to Ongoing Operations Adjusted EBITDA, which is a non-GAAP financial measure. See the "Non-GAAP Reconciliation" tables at the end of this presentation for further details. Range of Ongoing Operations Adjusted EBITDA midpoint opportunities as previously announced on the first quarter 2022 earnings call; graphs represent curves through May 4, 2023; range of Adj. EBITDA opportunities does not include the incremental Adj. EBITDA contribution expected from the Energy Harbor acquisition. Spark spreads calculated using an assumed heat rate of 7.2 mmbtu/MWh with $2.50 variable O&M (VOM) costs (market power price -(7.2 x gas price + VOM)). Market power price weighted as ERCOT: 90% North Hub, 10% West Hub; PJM: 50% AD Hub, 25% Ni Hub 25% Western Hub. Gas price weighted as ERCOT: 90% Houston Ship Channel, 10% Permian Basin; PJM: 25% Tetco ELA, 25% Dominion South, 25% Chicago Citygate, 25% Tetco M3. Vistra Investor Presentation/June 2023 14
View entire presentation