10-QPeriod: Q1 FY2021

Vistra Corp. Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 4, 2021For Securities:VST

Summary

Vistra Corp. reported a significant net loss of $2.04 billion for the first quarter of 2021, a stark contrast to the $45 million net income in the same period of 2020. This substantial downturn was primarily attributed to the severe impacts of Winter Storm Uri in February 2021, which led to substantial financial consequences including increased power procurement costs due to gas supply shortages and operational challenges. Despite the net loss, the company's operating revenues increased to $3.21 billion from $2.86 billion in the prior year's quarter, indicating underlying demand for its energy services. While the reported results were heavily impacted by the extraordinary weather event, Vistra continues to navigate its business with strategic initiatives such as planned retirements of coal generation facilities, investments in renewable energy projects like solar and battery storage, and ongoing share repurchase programs. Investors should closely monitor the company's ability to manage the financial fallout from Winter Storm Uri, ongoing operational costs, and its progress on strategic transitions towards cleaner energy sources.

Financial Highlights

50 data points
Beta

Revenue

$3.21B

Net Income

-$2.04B

-63.7% Net Margin

EPS (Diluted)

$-4.21

Total Assets

$25.89B

Cash & Equivalents

$561.00M

Free Cash Flow

-$1.84B

Financial Statements
Beta
Revenue$3.21B
SG&A Expenses$251.00M
Operating Income-$2.58B
Interest Expense$29.00M
Net Income-$2.04B
EPS (Basic)$-4.21
EPS (Diluted)$-4.21
Shares Outstanding (Basic)484.70M
Shares Outstanding (Diluted)484.70M

Key Highlights

  • 1Reported a net loss of $2.04 billion for Q1 2021, a significant decrease from a net income of $45 million in Q1 2020, primarily due to Winter Storm Uri.
  • 2Operating revenues increased by 12.2% to $3.21 billion in Q1 2021 from $2.86 billion in Q1 2020.
  • 3Winter Storm Uri had a pre-tax earnings impact of $2.9 billion in Q1 2021.
  • 4The company announced plans to retire all remaining coal generation facilities by year-end 2027, alongside one natural gas facility.
  • 5Vistra is investing in new solar (up to 668 MW) and battery energy storage (up to 260 MW) projects in Texas, with expected commercial operation dates ranging from Summer 2021 to Fall 2022.
  • 6Share repurchases totaled $175 million in Q1 2021 under a $1.5 billion authorization.

Frequently Asked Questions

The primary driver of the significant net loss of $2.04 billion in the first quarter of 2021 was the unprecedented impact of Winter Storm Uri. This event caused surging demand for power, gas supply shortages, operational challenges, and consequently, extremely high fuel costs and power procurement expenses for Vistra.

Vistra's operating revenues increased to $3.21 billion in the first quarter of 2021, up from $2.86 billion in the same period of 2020. This growth was driven by higher retail energy charges and wholesale generation revenue.

Vistra is actively transitioning its generation fleet. This includes announcing the retirement of all remaining coal generation facilities by the end of 2027 and investing in new renewable energy projects, such as solar photovoltaic power generation facilities and battery energy storage systems (ESS), particularly in Texas. The company aims to reduce its carbon footprint.

Vistra repurchased approximately $175 million of its common stock in the first quarter of 2021 under a $1.5 billion share repurchase program authorized in September 2020. However, the company announced in April 2021 that it would pause additional share repurchases for the remainder of 2021.