Dynegy Announces Third Quarter 2009 Financial Results
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HOUSTON--(BUSINESS WIRE)-- Dynegy Inc. (NYSE: DYN):
-- Adjusted EBITDA of $388 million up 44 percent period-over-period
primarily due to:
o The sale and assignment of a multi-year power sales contract;
o Higher capacity and tolling revenues; and
o Higher realized energy prices in the Midwest
-- Net loss attributable to Dynegy Inc. of $212 million reflects after-tax
charges of $238 million primarily related to asset impairments and $78
million of after-tax mark-to-market losses; compares to net income of
$605 million for the third quarter 2008, which included $542 million of
after-tax mark-to-market gains
-- Production volumes down slightly period-over-period
-- Company raises and tightens 2009 guidance estimates and provides details
behind 2010 guidance estimates
Dynegy Inc. (NYSE: DYN) today announced that Adjusted EBITDA for the third quarter 2009 was $388 million, compared to $269 million for the third quarter 2008. The period-over-period increase in Adjusted EBITDA was primarily related to the sale and assignment of a multi-year power sales contract, higher capacity and tolling revenues and higher realized energy prices in the Midwest. The company also reported a net loss attributable to Dynegy Inc. of $212 million or ($0.25) per diluted share for the third quarter 2009, compared to net income of $605 million or $0.72 per diluted share for the third quarter 2008. The net loss in the third quarter 2009 was primarily driven by asset impairment charges and mark-to-market losses. GAAP results include mark-to-market losses of $128 million ($78 million after tax) for the third quarter 2009, compared to mark-to-market gains of $889 million ($542 million after tax) for the third quarter 2008.
"While Dynegy's third quarter financial results continued to be impacted by the overall weakness in U.S. energy prices, we again demonstrated the benefits of having a diverse, well-operated fleet of power generation assets," said Bruce A. Williamson, Chairman, President and Chief Executive Officer of Dynegy Inc. "Increased production volumes from our Midwest and Northeast combined-cycle facilities helped to partially offset reduced run-times from coal-fired generation. This fleet diversity contributed to third quarter production volumes that were down only slightly period-over-period. Our operational performance also included strong reliability levels, with in-market availability of 92 percent for our baseload coal fleet.
"Dynegy's capital structure currently includes available liquidity of $2.1 billion, with cash-on-hand of $699 million," Williamson added. "Following the anticipated completion of the sale of assets to LS Power in the fourth quarter, we will have improved financial strength to address near-term debt maturities and other obligations as we manage through the current depressed commodity markets and position the company to deliver long-term value to investors."
A comparison of the company's third quarter results period-over-period is set forth in the table below (in millions of dollars, except per share amounts). The non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow are used by management to evaluate Dynegy's business on an ongoing basis. Definitions, purposes and uses of such non-GAAP measures are included in Item 2.02 to our Current Report on Form 8-K filed with the SEC on November 5, 2009, which is available on the company's website free of charge at www.dynegy.com. Reconciliations of these measures to the most directly comparable GAAP measures are included in the accompanying schedules to this news release.
Three Months Three Months
Ended Ended
09/30/2009 09/30/2008
(unaudited) (unaudited)
Basic Income (Loss) Per Share Attributable to $ (0.25 ) $ 0.72
Dynegy Inc.
Diluted Income (Loss) Per Share Attributable $ (0.25 ) $ 0.72
to Dynegy Inc.
Net Income (Loss) Attributable to Dynegy Inc. $ (212 ) $ 605
Add Back:
Income Tax Expense (Benefit) (118 ) 414
Interest Expense 115 105
Depreciation and Amortization Expense 87 91
EBITDA (128 ) 1,215
Plus / (Less):
Impairments 383 -
Mark-to-Market Losses (Gains), Net 128 (889 )
Sandy Creek Mark-to-Market Losses 5 -
Gain on Sale of Rolling Hills - (57 )
Adjusted EBITDA $ 388 $ 269
Power Generation
Dynegy's diversified power generation business includes three business segments: the Midwest, with approximately 8,400 megawatts of generation capacity; the West, with approximately 5,500 megawatts of generation capacity; and the Northeast, with approximately 3,800 megawatts of generation capacity.
Adjusted EBITDA from the power generation segments was $431 million for the third quarter 2009, compared to $307 million for the third quarter 2008.
Management does not allocate interest expense and income taxes on a segment level and therefore uses operating income as the most directly comparable GAAP measure. Operating income from the power generation segments was $40 million for the third quarter 2009, compared to $1.1 billion for the third quarter 2008.
Operating income from continuing and discontinued operations during the third quarter 2009 reflected $382 million in impairment charges ($234 million after tax) that were recorded based on the accounting classification of the eight power generation facilities anticipated to be sold to LS Power as held for sale. Operating income from continuing and discontinued operations during the third quarter 2009 also reflected mark-to-market losses of $128 million. This compares to mark-to-market gains of $889 million for the third quarter 2008, when forward market power prices decreased during the period.
The following factors influenced the quarter's results as compared to the third quarter 2008. Please read the accompanying schedules to this news release for additional information.
-- Midwest - Adjusted EBITDA benefited from the sale and assignment of a
multi-year power sales contract and higher realized energy prices that
were contracted prior to the market downturn. Midwest production volumes
decreased 7 percent period-over-period. This was primarily due to a 12
percent reduction in coal facility volumes that was largely related to
decreased demand attributed to mild summer weather and increased
off-peak wind generation. This decline was partially offset by a 15
percent increase in volumes related to the company's natural gas
facilities. Specifically, the company's natural gas combined-cycle
facilities experienced increased run-times due to coal-to-gas switching
in PJM.
-- West - Adjusted EBITDA benefited from increased tolling and capacity
revenues. Production volumes decreased 5 percent due to weak spark
spreads attributed to lower demand and mild weather.
-- Northeast - Adjusted EBITDA benefited from a 20 percent increase in
production volumes attributed to natural gas combined-cycle facilities,
which benefited from coal-to-gas switching in the region and reduced
transmission congestion. This was partially offset by reduced run-times
for coal- and oil-fired units due to compressed spark spreads.
Adjusted Cash Flow from Operations for generation was $690 million for the nine months ended September 30, 2009, while maintenance and environmental capital expenditures were $103 million and $241 million, respectively. Adjusted Cash Flow from Operations for generation was $764 million for the nine months ended September 30, 2008, while maintenance and environmental capital expenditures were $83 million and $171 million, respectively. Adjusted Free Cash Flow from the power generation business was $346 million for the nine months ended September 30, 2009, compared to $510 million for the nine months ended September 30, 2008.
On a GAAP basis, Cash Flow from Operations for generation was $683 million for the nine months ended September 30, 2009, compared to $757 million for the nine months ended September 30, 2008. Net cash used in investing activities was $341 million for the nine months ended September 30, 2009, compared to net cash used in investing activities of $108 million for the nine months ended September 30, 2008. Net cash provided by financing activities was $47 million for the nine months ended September 30, 2009, compared to net cash provided by financing activities of $133 million for the nine months ended September 30, 2008.
Other
Other primarily consists of general and administrative expenses, partially offset by interest income. In Other, the company reported a $43 million Adjusted loss before interest, taxes and depreciation and amortization ($47 million operating loss) during the third quarter 2009, compared to an Adjusted loss of $38 million ($51 million operating loss) during the third quarter 2008. The higher Adjusted loss during the third quarter 2009 was primarily related to a decrease in interest income due to lower interest rates.
Consolidated Interest Expense and Taxes
The company's interest expense totaled $115 million for the third quarter 2009, compared to $105 million for the third quarter 2008. The increase was primarily attributable to $14 million of expenses related to the change in value and settlement of interest rate swaps associated with the Plum Point credit agreement, partially offset by lower LIBOR rates on the company's variable-rate debt.
The third quarter 2009 income tax benefit from continuing operations was $34 million, compared to an income tax expense from continuing operations of $392 million for the third quarter 2008.
Liquidity
As of September 30, 2009, Dynegy's liquidity was $1.9 billion. This consisted of $703 million in cash on hand and $1.2 billion in unused availability under the company's credit facility.
The company's previously disclosed transaction with LS Power is expected to be completed in the fourth quarter 2009, with an anticipated increase in available cash and liquidity of more than $1 billion.
Cash Flow
Adjusted Cash Flow from Operations totaled an inflow of $336 million for the nine months ended September 30, 2009. There was a cash inflow of $690 million from the power generation business, offset by outflows of $354 million in Other resulting primarily from interest payments and general and administrative expenses, net of interest income.
For the nine months ended September 30, 2009, Dynegy's Adjusted Free Cash Flow was an outflow of $13 million. Capital expenditures included maintenance and environmental capital expenditures of $108 million and $241 million, respectively, the latter of which reflects the company's continuing investment in environmental upgrades.
For the nine months ended September 30, 2008, Dynegy's Adjusted Free Cash Flow was an inflow of $156 million. This consisted of Adjusted Cash Flow from Operations of $421 million, offset by maintenance and environmental capital expenditures of $94 million and $171 million, respectively.
On a GAAP basis, Cash Flow from Operations for the nine months ended September 30, 2009, and September 30, 2008, was $304 million and $397 million, respectively. Net cash used in investing activities for the nine months ended September 30, 2009, was $341 million, compared to net cash used in investing activities of $108 million for the nine months ended September 30, 2008. Net cash provided by financing activities for the nine months ended September 30, 2009, was $47 million, compared to net cash provided by financing activities of $133 million for the nine months ended September 30, 2008.
2009 Guidance Estimates
Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow ranges for 2009 have been raised and tightened from the previous ranges presented on August 10, 2009.
The new estimates are:
-- A range of Adjusted EBITDA of $730 million to $760 million;
-- A range of Adjusted Cash Flow from Operations of $75 million to $105
million; and
-- A range of Adjusted Free Cash Flow of $(425) million to $(395) million.
Adjusted EBITDA improved due to the sale and assignment of a power sales contract, partially offset by the purchase of additional options that provide downside protection in future periods. Additionally, ranges were tightened across all of the company's operating segments. The decline in Adjusted Cash Flow from Operations and Adjusted Free Cash Flow resulted from increased cash collateral postings related to 2010 and 2011 contracted positions. This additional cash outflow is currently the most efficient means of collateralizing the company's hedging program due to the favorable economics of posting cash in lieu of letters of credit for exchange-traded positions. However, the company could decide to exchange letters of credit for cash, resulting in a significant cash inflow.
The guidance estimates for the most directly comparable measures on a GAAP basis include:
-- A range of Net Loss of $(1.2) billion to $(1.1) billion;
-- A range of Cash Flow from Operations of $45 million to $75 million;
-- Net Cash provided by Investing Activities of $260 million; and
-- Net Cash used in Financing Activities of $(555) million.
These estimates reflect quoted forward commodity price curves as of October 6, 2009. These estimates also reflect assumptions regarding, among other things, sales volumes, fuel costs and other operational activities.
2010 Guidance Estimates
On August 10, 2009, the company provided an Adjusted EBITDA range of $425 million to $550 million for 2010. In today's news release, the company is reaffirming that range and providing additional 2010 guidance estimate ranges relating to Adjusted Cash Flow from Operations and Adjusted Free Cash Flow. These ranges reflect business changes, including the sale of eight power generation facilities and a power generation project under construction, that are expected to result from the pending transaction with LS Power. The transaction is expected to close in the fourth quarter 2009 assuming all necessary closing conditions are satisfied.
The estimates are:
-- A range of Adjusted EBITDA of $425 million to $550 million;
-- A range of Adjusted Cash Flow from Operations of $(15) million to $110
million; and
-- A range of Adjusted Free Cash Flow of $(360) million to $(235) million.
This primarily reflects the significant investment in environmental
capital expense to reduce emissions.
The guidance estimates for the most directly comparable measures on a GAAP basis include:
-- A range of Net Loss of $(250) million to $(175) million;
-- A range of Cash Flow from Operations of $(15) million to $110 million;
-- Net Cash used in Investing Activities of $(345) million; and
-- Net Cash used in Financing Activities of $(65) million.
These estimates reflect quoted forward commodity price curves as of October 6, 2009. These estimates also reflect assumptions regarding, among other things, a liability management program, sales volumes, fuel costs and other operational activities.
Investor Conference Call/Web Cast
Dynegy will discuss its third quarter 2009 financial results during an investor conference call and web cast today, November 5, 2009, at 9 a.m. ET/8 a.m. CT. Participants may access the web cast and the related presentation materials in the "Investor Relations" section of www.dynegy.com.
About Dynegy Inc.
Through its subsidiaries, Dynegy Inc. produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 17,700 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. DYNC
Certain statements included in this news release are intended as "forward-looking statements." These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the statements concerning: anticipated earnings or cash flows; the closing of the LS Power transaction and the timing, terms or success thereof; Dynegy's commercial strategy; and Dynegy's estimated financial results for 2009 and 2010. Historically, Dynegy's performance has deviated, in some cases materially, from its cash flow and earnings estimates and Dynegy cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. While Dynegy would expect to update these estimates on a quarterly basis, it does not intend to update these estimates during any quarter because definitive information regarding its quarterly financial results is not available until after the books for the quarter have been closed. Accordingly, Dynegy expects to provide updates only after it has closed the books and reported the results for a particular quarter, or otherwise as may be required by applicable law.
Dynegy cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. Specifically, Dynegy cautions that: the LS Power transaction may not close on the timing and terms expected, if at all; market fundamentals and trends may not be to Dynegy's benefit or as Dynegy anticipates; Dynegy's capital resources and available liquidity may be negatively impacted by market forces beyond its control, reducing capital available for discretionary or other purposes; Dynegy's asset base may not perform at the level anticipated; changes in commodity prices for fuel and power may negatively impact Dynegy and impact its ability to continue to satisfy its credit agreement financial covenants; and uncertainties exist regarding environmental regulations, litigation and other legal, legislative or regulatory developments and their potential impacts on Dynegy's businesses. More information about the risks and uncertainties relating to these forward-looking statements is found in Dynegy's SEC filings, including its Annual Report on Form 10-K, as supplemented, for the year ended December 31, 2008, its Quarterly Reports on Forms 10-Q for the quarters ended March 31, 2009, and June 30, 2009, and its Current Reports, all of which are available free of charge on Dynegy's website at www.dynegy.com. Dynegy expressly disclaims any obligation to update any forward-looking statements contained in this news release to reflect events or circumstances that may arise after the date of this release, except as otherwise required by applicable law.
DYNEGY INC.
REPORTED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN MILLIONS, EXCEPT PER SHARE DATA)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenues $ 673 $ 1,759 $ 2,027 $ 2,550
Cost of sales (286 ) (498 ) (927 ) (1,326 )
Operating and maintenance expense,
exclusive of depreciation and (121 ) (122 ) (373 ) (344 )
amortization shown separately below
Depreciation and amortization (83 ) (85 ) (258 ) (258 )
expense
Gain on sale of assets - 57 - 83
Goodwill impairments - - (433 ) -
Impairments and other charges,
exclusive of goodwill impairments (148 ) - (535 ) -
shown separately above
General and administrative expenses (42 ) (48 ) (125 ) (126 )
Operating income (loss) (7 ) 1,063 (624 ) 579
Earnings (losses) from (8 ) (5 ) 13 (17 )
unconsolidated investments
Interest expense (115 ) (105 ) (311 ) (322 )
Other income and expense, net 2 11 10 46
Income (loss) from continuing (128 ) 964 (912 ) 286
operations before income taxes
Income tax benefit (expense) 34 (392 ) 147 (121 )
Income (loss) from continuing (94 ) 572 (765 ) 165
operations
Income (loss) from discontinued (129 ) 32 (141 ) 13
operations, net of tax
Net income (loss) (223 ) 604 (906 ) 178
Less: Net loss attributable to the (11 ) (1 ) (14 ) (3 )
noncontrolling interests
Net income (loss) attributable $ (212 ) $ 605 $ (892 ) $ 181
to Dynegy Inc.
Basic income (loss) per share
attributable to Dynegy Inc. common
stockholders:
Income (loss) from continuing $ (0.10 ) $ 0.68 $ (0.89 ) $ 0.20
operations (1)
Income (loss) from discontinued (0.15 ) 0.04 (0.17 ) 0.02
operations
Basic income (loss) per share
attributable to Dynegy Inc. common $ (0.25 ) $ 0.72 $ (1.06 ) $ 0.22
stockholders
Diluted income (loss) per share
attributable to Dynegy Inc. common
stockholders:
Income (loss) from continuing $ (0.10 ) $ 0.68 $ (0.89 ) $ 0.20
operations (1)
Income (loss) from discontinued (0.15 ) 0.04 (0.17 ) 0.02
operations
Diluted income (loss) per share
attributable to Dynegy Inc. common $ (0.25 ) $ 0.72 $ (1.06 ) $ 0.22
stockholders:
Basic shares outstanding 843 840 842 840
Diluted shares outstanding 846 842 845 842
A reconciliation of basic loss per share from continuing operations
(1) attributable to Dynegy Inc. to diluted loss per share from continuing
operations attributable to Dynegy Inc. is presented below:
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Income (loss) from continuing $ (94 ) $ 572 $ (765 ) $ 165
operations
Less: Net loss attributable to the (11 ) (1 ) (14 ) (3 )
noncontrolling interests
Income (loss) from continuing
operations attributable to Dynegy $ (83 ) $ 573 $ (751 ) $ 168
Inc. for basic and diluted loss per
share
Basic weighted-average shares 843 840 842 840
Effect of dilutive securities:
Stock options and restricted 3 2 3 2
stock
Diluted weighted-average shares 846 842 845 842
Income (loss) per share from
continuing operations attributable
to Dynegy Inc.:
Basic $ (0.10 ) $ 0.68 $ (0.89 ) $ 0.20
Diluted (2) $ (0.10 ) $ 0.68 $ (0.89 ) $ 0.20
Entities with a net loss from continuing operations are prohibited from
including potential common shares in the computation of diluted per-share
(2) amounts. Accordingly, Dynegy Inc. has utilized the basic shares outstanding
amount to calculate both basic and diluted loss per share for the three and
nine months ended September 30, 2009.
DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED) (IN MILLIONS)
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Net loss attributable to Dynegy $ (212 )
Inc.
Plus / (Less):
Income tax benefit (118 )
Interest expense 115
Depreciation and 87
amortization expense
EBITDA (1) $ 73 $ (167 ) $ 9 $ (43 ) $ (128 )
Plus / (Less):
Asset impairments (2) 147 235 1 - 383
Sandy Creek mark-to-market - 5 - - 5
losses (3)
Mark-to-market losses, net 44 39 45 - 128
Adjusted EBITDA (1) $ 264 $ 112 $ 55 $ (43 ) $ 388
EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please refer to
Item 2.02 of our Form 8-K filed on November 5, 2009, for definitions,
(1) utility and uses of such non-GAAP financial measures. A reconciliation of
EBITDA to Operating income (loss) is presented below. Management does not
allocate interest expenses and income taxes on a segment level and therefore
uses Operating income (loss) as the most directly comparable GAAP measure.
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Operating income (loss) $ 5 $ 34 $ 1 $ (47 ) $ (7 )
Losses from unconsolidated - (8 ) - - (8 )
investments
Other items, net - 1 - 1 2
Net loss attributable to
the noncontrolling 11 - - - 11
interests
Depreciation and 57 15 8 3 83
amortization expense
EBITDA from continuing 73 42 9 (43 ) 81
operations
EBITDA from discontinued - (209 ) - - (209 )
operations (4)
EBITDA $ 73 $ (167 ) $ 9 $ (43 ) $ (128 )
On August 9, 2009, we entered into a purchase and sale agreement with LS
Power. At that time, the assets included in the agreement met the criteria
(2) of held for sale. As a result, we recognized pre-tax charges of
approximately $382 million ($234 million after-tax) related to asset
impairments. Below is the breakdown of the asset impairment charges by
region:
Pre-tax After-tax
GEN-MW
Renaissance $ 65 $ 40
Riverside/Foothills 18 11
Rocky Road 22 14
Tilton 42 26
Total (a) $ 147 $ 91
GEN-WE
Arlington Valley $ 112 $ 68
Griffith 123 75
Total (b) $ 235 $ 143
(a) These charges are included in Impairments and other charges on our
Reported Unaudited Condensed Consolidated Statements of Operations and will
be further described in our Quarterly Report on Form 10-Q for the quarterly
period ended September 30, 2009.
(b) These charges are included in Income (loss) from discontinued
operations, net on our Reported Unaudited Condensed Consolidated Statements
of Operations and will be further described in our Quarterly Report on Form
10-Q for the quarterly period ended September 30, 2009.
In addition, GEN-NE also included a $1 million ($1 million after-tax)
impairment charge related to our Roseton and Danskammer power generation
facilities as a result of continued expected cash flow losses related to
these assets. This charge is included in Impairments and other charges on
our Reported Unaudited Condensed Consolidated Statements of Operations and
will be further described in our Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2009.
We recognized pre-tax losses of approximately $5 million ($3 million
after-tax) related to the change in fair value of the Sandy Creek Project
(3) interest rate swaps. This loss is included in Earnings (losses) from
unconsolidated investments on our Reported Unaudited Condensed Consolidated
Statements of Operations.
(4) A reconciliation of EBITDA from discontinued operations to Loss from
discontinued operations, net of tax, is presented below.
EBITDA from discontinued $ (209 )
operations
Depreciation and amortization (4 )
expense from discontinued operations
Income tax benefit from discontinued 84
operations
Loss from discontinued operations, $ (129 )
net of tax
DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2008
(UNAUDITED) (IN MILLIONS)
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Net income attributable to $ 605
Dynegy Inc.
Plus / (Less):
Income tax expense 414
Interest expense 105
Depreciation and 91
amortization expense
EBITDA (1) $ 807 $ 229 $ 217 $ (38 ) $ 1,215
Plus / (Less):
Gain on sale of Rolling (57 ) - - - (57 )
Hills (2)
Mark-to-market gains, net (568 ) (146 ) (175 ) - (889 )
Adjusted EBITDA (1) $ 182 $ 83 $ 42 $ (38 ) $ 269
EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please refer to
Item 2.02 of our Form 8-K filed on November 5, 2009, for definitions,
utility and uses of such non-GAAP financial measures. A reconciliation of
(1) EBITDA to Operating income (loss) is presented below. Management does not
allocate interest expenses and income taxes on a segment level and
therefore uses Operating income (loss) as the most directly comparable GAAP
measure.
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Operating income (loss) $ 757 $ 153 $ 204 $ (51 ) $ 1,063
Losses from unconsolidated - (5 ) - - (5 )
investments
Other items, net - 1 (1 ) 11 11
Net loss attributable to
the noncontrolling 1 - - - 1
interests
Add: Depreciation and 49 20 14 2 85
amortization expense
EBITDA from continuing 807 169 217 (38 ) 1,155
operations
EBITDA from discontinued - 60 - - 60
operations (3)
EBITDA $ 807 $ 229 $ 217 $ (38 ) $ 1,215
We recognized a pre-tax gain of approximately $57 million ($32 million
(2) after-tax) on the sale of our Rolling Hills power generation facility. This
gain is included in Gain on sale of assets on our Reported Unaudited
Condensed Consolidated Statements of Operations.
(3) A reconciliation of EBITDA from discontinued operations to Income from
discontinued operations, net of tax, is presented below.
EBITDA from discontinued $ 60
operations
Depreciation and amortization
expense from discontinued (6 )
operations
Income tax expense from (22 )
discontinued operations
Income from discontinued $ 32
operations, net of tax
DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED) (IN MILLIONS)
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Net loss attributable to $ (892 )
Dynegy Inc.
Plus / (Less):
Income tax benefit (7) (238 )
Interest expense 311
Depreciation and 273
amortization expense
EBITDA (1) $ 302 $ (344 ) $ (385 ) $ (119 ) $ (546 )
Plus / (Less):
Asset impairments (2) 170 235 388 - 793
Goodwill impairment (3) 76 260 97 - 433
Gain on sale of Heard - (10 ) - - (10 )
County (4)
Sandy Creek - (20 ) - - (20 )
mark-to-market gains (5)
Mark-to-market losses, 4 50 8 - 62
net
Adjusted EBITDA (1) $ 552 $ 171 $ 108 $ (119 ) $ 712
EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please refer to
Item 2.02 of our Form 8-K filed on November 5, 2009, for definitions,
(1) utility and uses of such non-GAAP financial measures. A reconciliation of
EBITDA to Operating income (loss) is presented below. Management does not
allocate interest expenses and income taxes on a segment level and therefore
uses Operating income (loss) as the most directly comparable GAAP measure.
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Operating income (loss) $ 143 $ (209 ) $ (424 ) $ (134 ) $ (624 )
Earnings from
unconsolidated - 12 - 1 13
investments
Other items, net 2 3 - 5 10
Net loss attributable to
the noncontrolling 14 - - - 14
interests
Depreciation and 165 45 39 9 258
amortization expense
EBITDA from continuing 324 (149 ) (385 ) (119 ) (329 )
operations
EBITDA from discontinued (22 ) (195 ) - - (217 )
operations (6)
EBITDA $ 302 $ (344 ) $ (385 ) $ (119 ) $ (546 )
During the second quarter 2009, we recognized pre-tax charges of
approximately $202 million ($123 million after-tax) related to asset
impairments. These impairments were recorded due to management's conclusion
that it was more likely than not that these assets would be sold prior to
(2) the end of their previously estimated useful lives. On August 9, 2009, we
entered into a purchase and sale agreement with LS Power. At that time, the
assets included in the agreement met the criteria of held for sale. As a
result, we recognized pre-tax charges of approximately $382 million ($234
million after-tax) related to asset impairments. Below is the breakdown of
these asset impairment charges by region:
Pre-tax After-tax
GEN-MW
Renaissance (a) $ 65 $ 40
Riverside/Foothills (a) 18 11
Rocky Road (a) 22 14
Tilton (a) 42 26
Blugrass (b) 23 14
Total $ 170 $ 105
GEN-WE
Arlington Valley (b) $ 112 $ 68
Griffith (b) 123 75
Total $ 235 $ 143
GEN-NE
Bridgeport (a) $ 179 $ 109
Total $ 179 $ 109
(a) These charges are included in Impairments and other charges on our
Reported Unaudited Condensed Consolidated Statements of Operations and will
be further described in our Quarterly Report on Form 10-Q for the quarterly
period ended September 30, 2009.
(b) These charges are included in Income (loss) from discontinued
operations, net on our Reported Unaudited Condensed Consolidated Statements
of Operations and will be further described in our Quarterly Report on Form
10-Q for the quarterly period ended September 30, 2009.
In addition, GEN-NE also included a $209 million ($129 million after-tax)
impairment charge related to our Roseton and Danskammer power generation
facilities as a result of continued weakening in forward capacity and
forward power prices in certain of the markets in which we operate. This
charge is included in Impairments and other charges on our Reported
Unaudited Condensed Consolidated Statements of Operations and will be
further described in our Quarterly Report on Form 10-Q for the quarterly
period ended September 30, 2009.
We recognized pre-tax charges of approximately $433 million ($433 million
after-tax) related to the impairment of our goodwill . These charges are
(3) included in Goodwill impairments on our Reported Unaudited Condensed
Consolidated Statement of Operations and will be further described in our
Quarterly Report on Form 10-Q for the quarterly period ended September 30,
2009.
We recognized a pre-tax gain of approximately $10 million ($6 million
(4) after-tax) on the sale of our Heard County power generation facility. This
gain is included in Income (loss) from discontinued operations, net of tax
on our Reported Unaudited Condensed Consolidated Statements of Operations.
We recognized pre-tax income of approximately $20 million ($12 million
after-tax) related to the change in fair value of the Sandy Creek Project
(5) interest rate swaps. This income is included in Earnings (losses) from
unconsolidated investments on our Reported Unaudited Condensed Consolidated
Statements of Operations.
(6) A reconciliation of EBITDA from discontinued operations to Loss from
discontinued operations, net of tax, is presented below.
EBITDA from discontinued $ (217 )
operations
Depreciation and
amortization expense from (15 )
discontinued operations
Income tax benefit from 91
discontinued operations
Loss from discontinued $ (141 )
operations, net of tax
Includes additional expenses primarily due to $151 million nondeductible
(7) goodwill, $21 million due to a change in state income tax law and $10
million due to revised assumptions around the ability to utilize certain
state deferred tax assets.
DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2008
(UNAUDITED) (IN MILLIONS)
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Net income attributable to $ 181
Dynegy Inc.
Plus / (Less):
Income tax expense 131
Interest expense 322
Depreciation and 277
amortization expense
EBITDA (1) $ 685 $ 201 $ 87 $ (62 ) $ 911
Plus / (Less):
Gain on sale of Rolling (57 ) - - - (57 )
Hills (2)
Release of state franchise
tax and sales tax - - - (16 ) (16 )
liabilities (3)
Gain on sale of NYMEX - - - (15 ) (15 )
shares (4)
Gain on sale of Sandy Creek - (13 ) - - (13 )
ownership interest (5)
Gain on sale of Oyster
Creek ownership interest - (11 ) - - (11 )
(6)
Mark-to-market losses (89 ) (44 ) 9 - (124 )
(gains), net
Adjusted EBITDA (1) $ 539 $ 133 $ 96 $ (93 ) $ 675
EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please refer to
Item 2.02 of our Form 8-K filed on November 5, 2009, for definitions,
(1) utility and uses of such non-GAAP financial measures. A reconciliation of
EBITDA to Operating income (loss) is presented below. Management does not
allocate interest expenses and income taxes on a segment level and therefore
uses Operating income (loss) as the most directly comparable GAAP measure.
Power Generation
GEN - MW GEN - WE GEN - NE OTHER Total
Operating income (loss) $ 529 $ 104 $ 41 $ (95 ) $ 579
Losses from unconsolidated - (7 ) - (10 ) (17 )
investments
Other items, net - 5 5 36 46
Net loss attributable to
the noncontrolling 3 - - - 3
interests
Add: Depreciation and 153 57 41 7 258
amortization expense
EBITDA from continuing 685 159 87 (62 ) 869
operations
EBITDA from discontinued - 42 - - 42
operations (7)
EBITDA $ 685 $ 201 $ 87 $ (62 ) $ 911
We recognized a pre-tax gain of approximately $57 million ($32 million
(2) after-tax) on the sale of our Rolling Hills power generation facility. This
gain is included in Gain on sale of assets on our Reported Unaudited
Condensed Consolidated Statements of Operations.
We recognized income related to a release of approximately $16 million ($10
(3) million after-tax) of sales and use tax liability. This income is included
in Operating and maintenance expense on our Reported Unaudited Condensed
Consolidated Statements of Operations.
We recognized a pre-tax gain of approximately $15 million ($9 million
(4) after-tax) on the sale of our NYMEX shares and two membership seats. This
gain is included in Gain on sale of assets on our Reported Unaudited
Condensed Consolidated Statements of Operations.
We recognized equity earnings of approximately $13 million ($8 million
after-tax) on the sale of an approximate 11 percent undivided interest in
(5) the Sandy Creek Project. This gain is included in Earnings (losses) from
unconsolidated investments on our Reported Unaudited Condensed Consolidated
Statements of Operations.
We recognized a pre-tax gain of approximately $11 million ($7 million
(6) after-tax) on the sale of our beneficial interest in Oyster Creek. This gain
is included in Gain on sale of assets on our Reported Unaudited Condensed
Consolidated Statements of Operations.
(7) A reconciliation of EBITDA from discontinued operations to Income from
discontinued operations, net of tax, is presented below.
EBITDA from discontinued $ 42
operations
Depreciation and
amortization expense from (19 )
discontinued operations
Income tax expense from (10 )
discontinued operations
Income from discontinued $ 13
operations, net of tax
DYNEGY INC.
SUMMARY CASH FLOW INFORMATION (1)
(UNAUDITED) (IN MILLIONS)
Nine Months Ended September Nine Months Ended September 30,
30, 2009 2008
GEN OTHER Total GEN OTHER Total
Adjusted EBITDA $ 831 $ (119 ) $ 712 $ 768 $ (93 ) $ 675
(2)
Interest - (231 ) (231 ) - (257 ) (257 )
payments
Cash taxes - (3 ) (3 ) - (12 ) (12 )
Collateral (95 ) - (95 ) (61 ) - (61 )
(3)
Working
capital /
non-cash (46 ) (1 ) (47 ) 57 19 76
adjustments /
other changes
Adjusted Cash
Flow from 690 (354 ) 336 764 (343 ) 421
Operations (4)
Maintenance
capital (103 ) (5 ) (108 ) (83 ) (11 ) (94 )
expenditures
Environmental
capital (241 ) - (241 ) (171 ) - (171 )
expenditures
Adjusted Free $ 346 $ (359 ) $ (13 ) $ 510 $ (354 ) $ 156
Cash Flow (4)
Net cash used in
Investing $ (341 ) $ (108 )
Activities
Net cash provided
by Financing $ 47 $ 133
Activities
This presentation is intended to demonstrate the relationship between the
performance measure of Adjusted EBITDA and the liquidity measure of Adjusted
Free Cash Flow. We believe it is useful to our analysts and investors to
(1) understand this relationship because it demonstrates how the cash generated
by our operations is used to satisfy various liquidity requirements. This
presentation is not intended to be a reconciliation of non-GAAP measures
pursuant to Regulation G. Such reconciliations of these non-GAAP financial
measures to GAAP measures can be found below.
Adjusted EBITDA is a non-GAAP financial measure. Please refer to Item 2.02
of our Form 8-K filed on November 5, 2009 for definitions, utility and uses
(2) of such non-GAAP financial measures. Please see Reported Segmented Results
of Operations for the nine months ended September 30, 2009 and September 30,
2008 for a reconciliation of Adjusted EBITDA to Net income (loss)
attributable to Dynegy Inc.
Collateral, including initial margin, includes the effect of cash inflows
(3) and outflows arising from the daily settlements of our exchange-traded or
brokered commodity futures positions held with our futures clearing manager.
Adjusted Cash Flow from Operations and Adjusted Free Cash Flow are non-GAAP
financial measures. Please refer to Item 2.02 of our Form 8-K filed on
(4) November 5, 2009 for definitions, utility and uses of such non-GAAP
financial measures. A reconciliation of Adjusted Cash Flow from Operations
and Adjusted Free Cash Flow to Cash Flow from Operations is presented below.
Nine Months Ended September Nine Months Ended September 30,
30, 2009 2008
GEN OTHER Total GEN OTHER Total
Cash Flow
from $ 683 $ (379 ) $ 304 $ 757 $ (360 ) $ 397
Operations
Legal and
regulatory 7 6 13 7 17 24
payments
Payment for
JV - 19 19 - - -
Dissolution
Adjusted Cash
Flow from 690 (354 ) 336 764 (343 ) 421
Operations
Maintenance
capital (103 ) (5 ) (108 ) (83 ) (11 ) (94 )
expenditures
Environmental
capital (241 ) - (241 ) (171 ) - (171 )
expenditures
Adjusted Free $ 346 $ (359 ) $ (13 ) $ 510 $ (354 ) $ 156
Cash Flow
DYNEGY INC.
OPERATING DATA
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
GEN - MW
Million Megawatt Hours Generated 6.7 7.2 19.2 18.5
In Market Availability for Coal Fired 92 % 95 % 89 % 89 %
Facilities (1)
Average Capacity Factor for Combined 38 % 28 % 32 % 17 %
Cycle Facilities (2)
Average Quoted On-Peak Market Power
Prices ($/MWh) (3):
Cinergy (Cin Hub) $ 31 $ 74 $ 35 $ 73
Commonwealth Edison (NI Hub) $ 31 $ 73 $ 34 $ 72
PJM West $ 40 $ 95 $ 45 $ 91
Average On-Peak Market Spark Spreads
($/MWh) (4):
PJM West $ 16 $ 27 $ 13 $ 17
GEN - WE
Million Megawatt Hours Generated (5) 4.0 4.2 6.8 8.9
Average Capacity Factor for Combined 60 % 66 % 36 % 47 %
Cycle Facilities (2)
Average Quoted On-Peak Market Power
Prices ($/MWh) (3):
North Path 15 (NP 15) $ 38 $ 86 $ 36 $ 88
Average On-Peak Market Spark Spreads
($/MWh) (4):
North Path 15 (NP 15) $ 12 $ 25 $ 8 $ 20
GEN - NE
Million Megawatt Hours Generated 2.6 2.2 7.8 5.7
In Market Availability for Coal Fired 95 % 93 % 94 % 92 %
Facilities (1)
Average Capacity Factor for Combined 44 % 29 % 44 % 25 %
Cycle Facilities (2)
Average Quoted On-Peak Market Power
Prices ($/MWh) (3):
New York - Zone G $ 44 $ 113 $ 50 $ 111
New York - Zone A $ 29 $ 76 $ 36 $ 73
Mass Hub $ 37 $ 95 $ 45 $ 100
Average On-Peak Market Spark Spreads
($/MWh) (4):
New York - Zone A $ 4 $ 10 $ 5 $ 2
Mass Hub $ 13 $ 28 $ 11 $ 25
Fuel Oil $ (72 ) $ (60 ) $ (45 ) $ (45 )
Average Natural Gas Price - Henry Hub $ 3.15 $ 9.10 $ 3.80 $ 9.67
($/MMBtu) (6)
(1) Reflects the percentage of generation available during periods when market
prices are such that these units could be profitably dispatched.
(2) Reflects actual production as a percentage of available capacity.
(3) Reflects the average of day-ahead quoted prices for the periods presented
and does not necessarily reflect prices realized by the Company.
Reflects the simple average of the spark spread available to a 7.0MMBtu /
(4) MWh heat rate generator selling power at day-ahead prices and buying
delivered natural gas or fuel oil at a daily cash market price and does
not reflect spark spreads available to us.
Includes our ownership percentage in the MWh generated by our GEN-WE
(5) investment in the Black Mountain power generation facility for the three
and nine months ended September 30, 2009 and 2008, respectively.
(6) Reflects the average of daily quoted prices for the periods presented and
does not reflect costs incurred by the Company.
DYNEGY INC.
2009 EARNINGS ESTIMATES(1)
(IN MILLIONS)
Power Generation
GEN - MW GEN - WE GEN - NE Total GEN OTHER Total
Adjusted Gross $ 845 $ 860 $ 260 $ 270 $ 290 $ 300 $ 1,395 $ 1,430 $ - $ - $ 1,395 $ 1,430
Margin (2)
Operating (215 ) (225 ) (125 ) (125 ) (185 ) (180 ) (525 ) (530 ) - - (525 ) (530 )
Expenses
General and
Administrative - - - - - - - - (175 ) (175 ) (175 ) (175 )
Expense
Adjusted
EBITDA from - - 25 25 - - 25 25 - - 25 25
discontinued
operations
Losses From
Unconsolidated - - (10 ) (10 ) - - (10 ) (10 ) - - (10 ) (10 )
Investments
Other Items, - - - - - - - - 20 20 20 20
Net
Adjusted $ 630 $ 635 $ 150 $ 160 $ 105 $ 120 $ 885 $ 915 $ (155 ) $ (155 ) $ 730 $ 760
EBITDA (2)
2009 CASH FLOW ESTIMATES (1) (3)
(IN MILLIONS)
GEN OTHER Total
Adjusted $ 885 $ 915 $ (155 ) $ (155 ) $ 730 $ 760
EBITDA (2)
Cash Interest - - (430 ) (430 ) (430 ) (430 )
Payments
Cash Tax - - (5 ) (5 ) (5 ) (5 )
Payments
Collateral (185 ) (185 ) - - (185 ) (185 )
Working
Capital / (40 ) (40 ) 5 5 (35 ) (35 )
Other Changes
Adjusted Cash
Flow from 660 690 (585 ) (585 ) 75 105
Operations (4)
Maintenance
Capital (185 ) (185 ) (10 ) (10 ) (195 ) (195 )
Expenditures
Environmental
Capital (280 ) (280 ) - - (280 ) (280 )
Expenditures
Capitalized (25 ) (25 ) - - (25 ) (25 )
Interest
Adjusted Free $ 170 $ 200 $ (595 ) $ (595 ) $ (425 ) $ (395 )
Cash Flow (4)
Net Cash
Provided by $ 260 $ 260
Investing
Activities
Net Cash Used
in Financing $ (555 ) $ (555 )
Activities
2009 estimates are based on quoted forward commodity price curves using a
$3.97/MMBtu gas price as of October 6, 2009. Actual results may vary
materially from these estimates based on changes in commodity prices, among
other things, including operational activities, legal settlements,
financing or investing activities and other uncertain or unplanned items.
(1) Reduced 2009 and forward adjusted EBITDA or free cash flow could result
from potential divestitures of (a) non-core assets where the earnings
potential is limited, or (b) assets where the value that can be captured
through a divestiture is believed to outweigh the benefits of continuing to
own or operate such assets. Divestitures could also result in impairment
charges.
EBITDA, Adjusted EBITDA and Adjusted Gross Margin are non-GAAP financial
measures. Please refer to Item 2.02 of our Form 8-K filed on November 5,
2009, for definitions, utility and uses of such non-GAAP financial
measures. Reconciliations of consolidated EBITDA and Adjusted EBITDA to
(2) NetLoss attributable to Dynegy Inc. and Adjusted Gross Margin to Operating
Income (loss)are presented below. Management does not allocate interest
expenses and income taxes on a segment level and therefore uses Operating
Income (loss) as the most directly comparable GAAP measure. Accordingly, a
reconciliation of EBITDA and Adjusted EBITDA to Operating Income (loss) on
a segment level is also presented below.
Power Generation
GEN - MW GEN - WE GEN - NE Total GEN OTHER Total
Operating $ 75 $ 80 $ (320 ) $ (310 ) $ (470 ) $ (455 ) $ (715 ) $ (685 ) $ (185 ) $ (185 ) $ (900 ) $ (870 )
Income (Loss)
Earnings From
Unconsolidated - - 10 10 - - 10 10 - - 10 10
Investments
Other Items, - - - - - - - - 20 20 20 20
Net
Add:
Depreciation
and
Amortization 230 230 60 60 50 50 340 340 10 10 350 350
Expense from
continuing
operations
EBITDA from
continuing 305 310 (250 ) (240 ) (420 ) (405 ) (365 ) (335 ) (155 ) (155 ) (520 ) (490 )
operations
EBITDA from
discontinued (25 ) (25 ) (200 ) (200 ) - - (225 ) (225 ) - - (225 ) (225 )
operations
EBITDA $ 280 $ 285 $ (450 ) $ (440 ) $ (420 ) $ (405 ) $ (590 ) $ (560 ) $ (155 ) $ (155 ) $ (745 ) $ (715 )
Plus / (Less):
Impairments
from $ 220 $ 220 $ 260 $ 260 $ 485 $ 485 $ 965 $ 965 $ - $ - $ 965 $ 965
continuing
operations
Impairments
from 25 25 235 235 - - 260 260 - - 260 260
discontinued
operations
Sandy Creek
Mark-to-Market - - (20 ) (20 ) - - (20 ) (20 ) - - (20 ) (20 )
Gains
Loss on Sale
of Assets from 75 75 85 85 - - 160 160 - - 160 160
continuing
operations
Gain on Sale
of Assets from - - (10 ) (10 ) - - (10 ) (10 ) - - (10 ) (10 )
discontinued
operations
Mark-to-Market 30 30 50 50 40 40 120 120 - - 120 120
Losses
Adjusted $ 630 $ 635 $ 150 $ 160 $ 105 $ 120 $ 885 $ 915 $ (155 ) $ (155 ) $ 730 $ 760
EBITDA
Power Generation
GEN - MW GEN - WE GEN - NE Total GEN OTHER Total
Adjusted Gross $ 845 $ 860 $ 260 $ 270 $ 290 $ 300 $ 1,395 $ 1,430 $ - $ - $ 1,395 $ 1,430
Margin
Impairments
from (220 ) (220 ) (260 ) (260 ) (485 ) (485 ) (965 ) (965 ) - - (965 ) (965 )
continuing
operations
Loss on Sale
of Assets from (75 ) (75 ) (85 ) (85 ) - - (160 ) (160 ) - - (160 ) (160 )
continuing
operations
Mark-to-Market (30 ) (30 ) (50 ) (50 ) (40 ) (40 ) (120 ) (120 ) - - (120 ) (120 )
Losses
Operating (215 ) (225 ) (125 ) (125 ) (185 ) (180 ) (525 ) (530 ) - - (525 ) (530 )
Expenses
Depreciation
and
Amortization (230 ) (230 ) (60 ) (60 ) (50 ) (50 ) (340 ) (340 ) (10 ) (10 ) (350 ) (350 )
Expense from
continuing
operations
General and
Administrative - - - - - - - - (175 ) (175 ) (175 ) (175 )
Expenses
Operating $ 75 $ 80 $ (320 ) $ (310 ) $ (470 ) $ (455 ) $ (715 ) $ (685 ) $ (185 ) $ (185 ) $ (900 ) $ (870 )
Income (Loss)
Total
Net loss
attributable $ (1,155 ) $ (1,135 )
to Dynegy Inc.
Add Back:
Income Tax (435 ) (425 )
Benefit
Interest
Expense and
Debt 480 480
Conversion
Cost
Depreciation
and
Amortization 350 350
Expense from
continuing
operations
Depreciation
and
Amortization 15 15
Expense from
discontinued
operations
EBITDA $ (745 ) $ (715 )
Plus / (Less):
Impairments
from 965 965
continuing
operations
Impairments
from 260 260
discontinued
operations
Sandy Creek
Mark-to-Market (20 ) (20 )
Gains
Loss on Sale
of Assets from 160 160
continuing
operations
Gain on Sale
of Assets from (10 ) (10 )
discontinued
operations
Mark-to-Market 120 120
Losses
Adjusted $ 730 $ 760
EBITDA
(3) This presentation is not intended to be a reconciliation of non-GAAP
measures pursuant to Regulation G.
Adjusted Cash Flow from Operations and Adjusted Free Cash Flow are non-GAAP
financial measures. Please refer to Item 2.02 of our Form 8-K filed on
(4) November 5, 2009, for definitions, utility and uses of such non-GAAP
financial measures. A reconciliation of Adjusted Cash Flow from Operations
and Adjusted Free Cash Flow to Cash Flow from Operations is presented
below.
GEN OTHER Total
Cash Flow From $ 650 $ 680 $ (605 ) $ (605 ) $ 45 $ 75
Operations
Legal and Regulatory 10 10 - - 10 10
Payments
Payment for JV - - 20 20 20 20
Dissolution
Adjusted Cash Flow 660 690 (585 ) (585 ) 75 105
From Operations
Maintenance Capital (185 ) (185 ) (10 ) (10 ) (195 ) (195 )
Expenditures
Environmental Capital (280 ) (280 ) - - (280 ) (280 )
Expenditures
Capitalized Interest (25 ) (25 ) - - (25 ) (25 )
Adjusted Free Cash $ 170 $ 200 $ (595 ) $ (595 ) $ (425 ) $ (395 )
Flow
DYNEGY INC.
2010 EARNINGS ESTIMATES (1)
(IN MILLIONS)
Power Generation
GEN - MW GEN - WE GEN - NE Total GEN OTHER Total
Adjusted Gross $ 585 $ 680 $ 245 $ 255 $ 225 $ 245 $ 1,055 $ 1,180 $ - $ - $ 1,055 $ 1,180
Margin (2)
Operating (215 ) (215 ) (115 ) (115 ) (165 ) (165 ) (495 ) (495 ) - - (495 ) (495 )
Expenses
General and
Administrative - - - - - - - - (150 ) (150 ) (150 ) (150 )
Expense
Other Items, - - - - - - - - 15 15 15 15
Net
Adjusted $ 370 $ 465 $ 130 $ 140 $ 60 $ 80 $ 560 $ 685 $ (135 ) $ (135 ) $ 425 $ 550
EBITDA (2)
2010 CASH FLOW ESTIMATES (1) (3)
(IN MILLIONS)
GEN OTHER Total
Adjusted $ 560 $ 685 $ (135 ) $ (135 ) $
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