Vistra's Retail Segment Reports Highest Texas Residential Organic Growth Since 2008

February 25, 2022

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Vistra reported financial results for the quarter and full year ending December 31, 2021.

Vistra's overall residential customer count across all markets was 2.717 million as of Q4 2021, versus 2.707 million as of Q3 2021 and 2.736 million a year ago.

The net increase of 10,000 residential customers from Q3 2021 to Q4 2021 compares to a net loss of 9,000 customers from Q2 2021 to Q3 2021. The year-over-year decline reflects a decline in Midwest and Northeast customers, partially offset by an increase in Texas customers

For the year 2021, Vistra said that its Retail segment grew ERCOT residential customer count by ~23,000 its highest organic growth since 2008. Most of the growth was in the TXU brand.

In a 10-K, Vistra said that it serves approximately 4.3 million customers.

Vistra provides retail electricity to approximately 2.4 million customers in ERCOT. As of December 31, 2021, Vistra provided electricity to approximately 30% of the residential customers in ERCOT and for approximately 15% of business customers' demand.

Retail volumes for the fourth quarter of 2021 were as follows by customer segment (in TWh):

Vistra Retail Volumes (TWh)
            Q4 2020   Q4 2021
Residential   7.0       6.5
Business     10.9      12.2
Muni Agg.     2.9       2.6

Total        20.8      21.3

Vistra reported fourth quarter 2021 Adjusted EBITDA from the Retail segment of $937 million, $526 million higher than fourth quarter 2020 results, driven by the allocation of ERCOT securitization, partially offset by mild weather

Vistra reported full year 2021 Adjusted EBITDA from the Retail segment of $1.3 billion, $329 million higher than full year 2020 results, by self-help initiatives partially offset by Winter Storm Uri impacts (including securitization proceeds) and milder weather in ERCOT

Overall across all segments, for the three months ended Dec. 31, 2021, Vistra reported Net Income of $731 million, Net Income from Ongoing Operations of $733 million, and Ongoing Operations Adjusted EBITDA of $1,165 million. Vistra's fourth quarter 2021 Net Income of $731 million was $757 million higher than fourth quarter 2020 Net Loss of $(26) million, driven primarily by the $544 million allocation of ERCOT securitization as well as lower unrealized net losses resulting from hedging transactions. Vistra's fourth quarter Adjusted EBITDA from Ongoing Operations was $363 million higher than fourth quarter 2020 results, primarily driven by the allocation of ERCOT securitization.

For the full year of 2021, Vistra reported Net Loss of $(1,264) million, Net Loss from Ongoing Operations of $(1,242) million, and Ongoing Operations Adjusted EBITDA of $1,941 million (which includes the impact from high IRR early settlement of retail bill credits noted below). Vistra's Net Loss for the full year of 2021 was $1,888 million lower than full year 2020 Net Income, driven primarily by the impacts of Winter Storm Uri. Ongoing Operations Adjusted EBITDA for the full year of 2021 was $1,825 million lower than the full year of 2020, driven primarily by the impacts of Winter Storm Uri.

The adjustment for future retail bill credits relates to large commercial and industrial customers that curtailed their usage during Winter Storm Uri and will reverse and impact Adjusted EBITDA in future periods as the credits are applied to customer bills. For 2021 the impact was negative $53 million. "We estimate the amounts to be applied in future periods are 2022 (approximately $150 million), 2023 (approximately $67 million), 2024 (approximately $11 million) and 2025 (approximately $4 million). The Company believes the inclusion of the bill credits as a reduction to Adjusted EBITDA in the years in which such bill credits are applied more accurately reflects its operating performance," Vistra said

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