Vistra Energy (NYSE: VST) reported Q1 revenue for the quarter came in at $2.86 billion versus the consensus estimate of $2.81 billion.

Financial Highlights

• Delivered first quarter 2020 Ongoing Operations Adjusted EBITDA1 of $850 million and Net Income from Ongoing Operations1 of $62 million—results above consensus and management expectations for the quarter. Ongoing Operations Adjusted EBITDA1 results were $26 million2 better than first quarter 2019 primarily driven by the acquisitions of Ambit Energy and Crius Energy.
• Reaffirmed 2020 Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of $3,285 to $3,585 million1 and $2,160 to $2,460 million,1,3 respectively.
  • ­Vistra expects its integrated business model to continue to demonstrate its strength and relative stability in 2020.
  • Vistra's guidance reaffirmation reflects its meaningful hedge position (Vistra is approximately 99% hedged for the balance of the year) and its attractive retail customer mix (Vistra derives approximately 90% of its Retail segment Adjusted EBITDA from the residential and mass business customer classes), thereby minimizing the current and potential negative impacts of COVID-19 including lower business demand for electricity, lower power prices and volumes in 2020 reflecting this decreased demand, and anticipated increased bad debt in the Retail segment.
• Paid a quarterly dividend of $0.135 per share on March 31, 2020, to shareholders of record as of March 17, 2020, and announced the second quarter dividend of $0.135 per share payable on June 30, 2020, to shareholders of record as of June 16, 2020, or $0.54 per share on an annualized basis. This dividend represents an 8% increase from the company's quarterly common stock dividend paid in 2019.
• Announced it is on track to achieve nearly $700 million of the projected ~$760 million of Dynegy, Crius, and Ambit merger synergies and Operations Performance Initiative (OPI) EBITDA value lever targets by year-end 2020. Vistra expects to realize and achieve the EBITDA value lever targets as follows:

"First and foremost, our hearts go out to those who have been adversely impacted by the COVID-19 virus. While uncertainty remains, we are confident the American compassion, courage, ingenuity, and resilience will win out," said Curt Morgan, Vistra's president and chief executive officer. "Vistra started the year executing and delivering strong financial results and we are on track to continue to do so, even in the face of headwinds from the COVID-19 pandemic. Our business model – one that prioritizes a strong balance sheet and low-cost, integrated operations – is proving to be more important than ever during this time of economic uncertainty and volatility. We took actions early in the year to prepare our operations for this environment, ensuring the health and safety of our employees while fulfilling our obligation to provide an essential service. Reliable power has perhaps never been more important than it is today, allowing people to shelter in place and providing the essential electricity to keep lifesaving medical equipment running. Vistra takes very seriously its obligation to keep our employees healthy and safe and to provide the American people with affordable and reliable power. I am extremely proud of our team\'s commitment to execution during these trying times."

Guidance

Vistra is reaffirming its 2020 Ongoing Operations Adjusted EBITDA and Ongoing Operations Adjusted FCFbG guidance ranges of $3,285 to $3,585 million and $2,160 to $2,460 million, respectively.

For earnings history and earnings-related data on Vistra Energy (VST) click here.