Vistra (VST) 8 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to the Vistra Second Quarter 2024 Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Eric Micek, Vice President of Investor Relations. Please go ahead.

Good morning, and thank you all for joining Vistra's investor webcast discussing our second quarter 2021 results.

Our discussion today is being broadcast live from the Investor Relations section of our website at www.vistracorp.com. Kris find call today's Vistra's Officer. today Chief Officer; also earnings presentation President can Vice Executive the Executive release. Leading are and you copies Chief investor of and and President There, and Vistra's Financial Moldovan, Jim Burke, are senior to during other address call as Vistra's of second part today's by necessary. joined questions They executives the

of risks and data the the President our in available are measures. Burke. presentation limitations to no of of forward-looking of Our the results provided statements to on that are comparable references certain actual presentation to risks include the to contains differ Jim review on market now or call earnings assumptions today discussion Investor directly release earnings and safe date. only in financial based certain use call those release, to subject update forward-looking the presentation projected to the the most believe industry today's the presentation measures. I non-GAAP to non-GAAP in and over Reconciliations website statements financial and statements, other reasonable our GAAP appendix be the Relations on matters included measures encourage Vistra's investor of listeners website. Also, statements. I X discussed will could forward-looking on Slide uncertainties to the to we are cause the forward-looking included obligation and We as all from assume the certain in the harbor materially that section explains statements, implied. turn and our which of today's Such investor CEO,

prices been wholesale results. work a to adjusted quarter business. and strong all Good of quarter lower XXXX Eric. you, across of has we X, see hard parts us operations against second thank financial you Slide our at second of joining on Through can team backdrop morning, a EBITDA ongoing multiple billion, the our you discuss energy country. the operational efforts, achieved their $X.XXX Thank for very Beginning across and

of contribution in full and from quarter While benefited achievement. played the role major our from Harbor the inclusion consistent results Energy the execution a generation, this commercial retail businesses, first teams from

our portfolio power of generation for record Specifically, prepare customers crucial planned to produced completing assets fleet the needed of diversified for outages levels summer while our the months. the

score our led year-over-year retail Our to Texas flagship performance growth Energy PUC Power of margin by scorecard. solid delivered Choose top business, while on brand, TXU and maintaining producing the a

power cleared Finally, for performance levels. solid despite the we our the general, prices weather quarter results hedge our hedging year. our set below when anticipated comprehensive Through our in strong our execution commercial volatility the country, of reflect by across the team, second expectations program

Turning to guidance.

$X.XXX to end $X.XXX the year, are to We deliver guidance to EBITDA XXXX ongoing billion. upper our range are date of ability reaffirming our of forecast operations we our the confident this towards Based for billion on and performance the adjusted for range. remainder of in

or any guidance first PTC, the benefit receipts production of gross to given related As nuclear during quarter credit, results noted uncertainty our interpretation the excludes tax our we the the around call, regulations. potential in

could we XXXX However, ongoing the the $XXX of forward balance million. adjusted months be the the curve settled based prices of of and the of to our for first on upwards PTC where year in year, the the X operations believe EBITDA impact

long-term our to outlook. Moving

current critical a growing value volatile generation in business model, dispatchable assets the create markets. Our premier us integrated which business retail to and well positions combines long-term with

ongoing XXXX EBITDA range XXXX $X.X guidance, raising PTC. operations million billion. Similar past to to XXXX activity results, ongoing billion opportunities hedging nuclear the over operations our Given excludes by adjusted to auction opportunity midpoint $X.X months to any of estimates and planning are midpoint related our recent the several XXXX, our the year PJM XXXX estimated our we range $XXX

we However, appropriate improvement is for timing such PTC downside will estimates in for PTC in forecast. Underpinning strategic and including is nuclear a focus support the X. on important range our continue provide that believe Slide we our the X to the our evaluate key on will note priorities outlook outlined to it our of opportunities,

Our quarter our results consistent our model coupled brands performance. leverages of generation with by retail deliver integrated business our evidenced second more assets, portfolio diverse as strong to

nuclear but best PJM company a teamwork, our core create aspects team at practices to all Our improvement, added not one tenet and to across foster of including recently of continues culture drives our sites. only learning continuous of

our the providing discussed program also meaningful the to the our to execute hedging earnings outlook. visibility protection into provide continue commercial on of to teams while downside business As long-term previous slide, on our comprehensive power

While capital in PTC to assets, our making more any process. outlook, increasingly view long-term this disciplined estimates and the nuclear nuclear them allocation to of remain a and portion responsibility, as availability current a a valuable. Switching nuclear derisks believe XXXX allocation. both we of will potential our related of critical the PTC, earnings our guidance the We exclude we substantial

share to of year. of during through our XXXX. plan August including fourth billion time, that the execute repurchases this the return continue Since quarter investors, we $X returned to capital We put X place $X.XX billion approximately in of

at repurchases execute 'XX million. throughout to billion least share expect 'XX of $X.XX We and

sheet. the to balance Moving

the EBITDA. remains at net of position the quarter at end leverage strong financial operations Our ongoing Xx with adjusted

to Microsoft. X year-end continue the energy We To our to began executing Xx Illinois. technology by long-term solar agreements companies, construction purchase Amazon new from expect in in on to XXXX. development transition, pipeline. new below continue of with power Texas and with world's be renewable we We executed X offtake and leverage the one On X other with in opportunistic leading these projects, we ensure full facilities, be net large-scale X

excited with to their are electricity to well-known companies We carbon-free partner operations. for provide these

our pipeline robust. Moving opportunity development forward, remains

needs of energy technology acres interconnects of Our for thousands country, customer encompasses land which co-locate and sites large opportunities ample geographic particular to footprint provides across XX with for a than development or the to meet operations. more great

Our shareholders. our project the responsibly while balance reliability, approach and energy ensuring sustainability continues returns to for expansion to affordability disciplined

most this recent highlighted on sustainability have our XX. approach which we July We published report, in

are our we for of proud are that to while creating business emissions strategy stakeholders. of also sustainability, all take reducing our we approach which the sustainable We a ensures

to X. Slide we In we Moving markets the see significant potential emerging a in gap largest supply serve.

and include During the front the meter, the Texas. CHIPS particularly to behind quarter reshoring future outlined growth, whether due build-out demand, increased industrial population call, our Act, of industrial loads, partially electrification strong and of and of data first in we multiple the of or results the potential activity, in of drivers centers, meter the residential these commercial,

end the In addition growth, Many retirements decade, gap. thermal environmental current at a these supply-demand significant to plants, are we creating of of the this dispatchable coal demand policies driven decisions believe drive and reforms, investors policies notably of federal through the by generation, market recent to to the supply PJM's market policies. Supported capacity can who beginning this higher 'XX less to 'XX, are level gap. by participants, signal prices by clearing influenced the for leading respond competitive state auction are will

May. Generation fuel new new have energy offset to wholesale on to capital only but years believe be on focused for generation. generation, This does predictable XX up gas The forward time our attract lot in wholesale necessary and framework to the consistent, cost attract we outer one can lower auction a capital reforms necessary help is exclusively lower provide build it bill market completion and price forward to While seen assets gas financial capacity Texas call revenues in for reliability a since some market dispatchable have sufficient and units softened for financing incentivize the the new curves. Policymakers energy in supply. relies of signals which have Fund last bonuses created clear, price Texas dispatchable new prices, new fuel support over long-lived are Energy gigawatts equity volatility and these recently we almost to market to generation. is will provide of

forward. However, a investors nearly case the evaluate years, as been be market, their many best path there XX and will in participants competitive opportunities market Texas in their and decide to has for

we from Coleto the plant in to after targeting plant's the for which middle brought at conversion XXX gas this our to good up place our take Creek of Texans. XXX already will and in up X,XXX our generation coal As XXXX. dispatchable This of have facilities, fellow retirement late which megawatts May, megawatts These company, nearly online preserving gas of of a paying of accretive announced fuel for the we opportunities unit, jobs includes to summer fuel while represent investments existing are additions ERCOT. we at half megawatts augmentations

West We for advanced up also application Texas peaker financing in the Energy submitted to XXX of megawatts for in July Texas. our plants Fund

these These of reforms we As an in well grid noted reforms or our key reliability monitor of plants we successful on and effective services, credit announcement, key stages a development implementation first the for ancillary are market standard, efficient Texas. as early as the reliability market the PCM, of signals. mechanism, a performance suite focused of as include in

work for stakeholders policymakers Texas. other a to with continue investment and in shape will We framework to robust

with Looking require dispatchable and set detailed is serve, tax a growth, provide reasons, drives This battery with to will our resources customers. preferences and to plant combination of customers first is at we its team wind, needs fleet opportunities. And quarter is will will affordably of low continue and our interconnection the met coal with number units. Vistra Kris we intermittent of Vistra, results. and broadly policymakers, for solar and with are energy of are the across incentives, reliably, and flexible diversified baseload retirements communities future our large positioned purpose Kris? well policies including it the that, sustainably. state resources their I markets ensure work to a review additional about The queues turn the to over and excited and what filled of largely both

you, Thank Jim.

from adjusted Turning and and forecast upper improvement strong our billion together our with Vistra guidance retail. result, businesses approximately year-to-date with the $X.XXX generation EBITDA billion. Notably, XX% performance represents ongoing in of our $X.XXX the EBITDA of operations end including both quarterly to ability remainder million of deliver Vistra's confidence ongoing approximately range. $XXX the generation towards Slide aggregate driving the to for of results year, for This the an delivered XXXX year-to-date, are from $XXX to year-over-year million operations retail brings X. and another adjusted

the continued across on year-over-year our weather the quarter wholesale Texas optimizing in the prices and again by generation volatility competitive the capitalized in of summer on including down generation team market team's markets, flexibility the and once appropriate. consistently despite profile results, units, of run when lower is conditions a ability The to high by market and the fleet. possible buying our made economically perform diversity of from the in ramping variety performance, power the Focusing operational

Turning to retail.

higher of accounts margins continuation Our cited the the results and second quarter quarter. in benefited from first

Additionally, as the adjusted delivered of half due underlying the power costs, ongoing to evolving retail EBITDA as the the seasonality compared first higher of expected in XXXX portion of expected, significantly operations team XXXX. to a annual

Finally, second million for the from accounted $XXX the Energy for approximately which both $XXX by our and retail was benefited second inclusion The for periods. driven have year-to-date. year-to-date XXXX from both results and for benefit nuclear Harbor these the of the X/X businesses, former approximately the and of results, totaled million in generation primarily the which contribution PJM contribution quarter approximately businesses, quarter fleet,

Slide to XX. Moving

We have the forward months. curves in several power in price seen significant volatility last

XX% calendar our year increasing we attractive prices. to our hedge balances take volatility, this calendar XXXX be to was able team at approximately in approximately advantage to However, wholesale year and XXXX what believe of XX% in commercial

our earlier, planning As the PJM XXXX combined for range XXXX XXXX, in our midpoint $XXX ongoing million. estimate year adjusted in capacity prices with Jim positions recent the given EBITDA auction, hedge realized increased current we XXXX, opportunity by noted operations the

XXXX forward since guidance, XXXX, generally quarter and XXXX us operations we confidence to XXXX in excludes XXXX power auction which more first we Notably, additional Although $X XXXX, PJM be adjusted give call, executed results our the PJM the ongoing of the estimated continue year long-term the with any is meaningful. have assumptions update for even hedges our PTC, have EBITDA capacity upcoming nuclear midpoint than our before auction. prices fallen our case earnings the opportunity planning to as estimates related could outlook our billion,

expected beyond, before adjusted conversion we flow to XX% growth target to continue from upside flow for to operations XX% growth free PTC, being of before and which cash Finally, XXXX of the adjusted ongoing at EBITDA generally adjusted a ongoing nuclear in one operations EBITDA. any to free excluding benefit adjusted after year least is recognized rate cash

expect we amount quarter November. meaningful XXXX, As a generate on unallocated which a result, capital third call through discuss in to our to we detail of expect results in more

XX. our provide capital on the update on Slide of execution allocation plan we an Finally,

trading to to Since in program our of Jim in November approximately an XXXX, approximately allocating by beginning an significant Our cash $X XXXX, price the XXXX believe repurchases at an over capital our share increase least repurchases yield of end, shares noted, of an XXX see To outstanding shares $X.XX we free our at shares value generated priority. XX% has is and at we or per XXXX, in share and stock share we at least execute and billion course the as billion repurchase approximately $XX.XX. to important XXXX. elevated expect in the program continue flow that our to price average share still shareholders. additional reduced Despite million

net adjusted close Vistra's sits the was debt required acquisition Harbor despite Energy the leverage currently and quarter additional balance of first this Moving ongoing sheet, to EBITDA Xx ratio in the to operations year. at that the

return expect end the below We Xx it XXXX. to of to by

We margin continue Xx. deposits to long-term below target benefit ratio, leverage a not of including net the

agreements solar facilities. X As to long-term and power purchase X we large-scale announce Jim discussed Microsoft with are for earlier, new Amazon excited the

As solar to remain and We we opportunistic of to storage energy expect to to to approximately financing. our strategy of or continue committed approach these a fund mid-teens and growth our with returns energy levered for expenditures XX% capital higher storage reminder, solar target XX% our nonrecourse projects. and

the first with Energy closing acquisition, Vision. to the Vistra in the minority begun connection results the in call, have we of highlighted dividends we Harbor investors in paying as Finally, quarter

our Our is consolidated XXXX. a continue as of in allocation $XXX million approximately current capital we Vistra's on we view these expectation that power of program analyze basis. pay to as will such dividends We part dividends earnings

ready committed in very for year open remain proud X Vistra against are executing half priorities. With team's of performance to the first and We that, the to we're line the of strategic our the we operator, questions.

question Our Guggenheim. is first Instructions] [Operator Pourreza with Shar from today

Jim, attract just and gas kind at gas think this the or do new regarding you print, change sufficient in sunset any would mean, level more X or potential RTO fleet? coal on in I X capacity are new your this light entry? of of point? PJM thinking the to investing consider at this any you of prints storage to Does

about next some classes, previous reforms process, has at working looking clear. this on long course, and PJM in we dispatchable, calls. made think think time, And on of auction, It's of question. great reflected a sort in recent most the new long that that headway behind, It's they're sure. given some recent is the Yes, couple the one attractive. contribution of not PJM the and above been project I I And a market that enough are for will the they've quite in and this think can December talked where fundamentals. be most does up saw clear resource we've only like starting to they another different I that in provide. was a great It We because make future clear of it years. This obviously, can signal. out or be and on of think catching auctions at interesting just number

that's us that think of towards offering assets PJM now benefit. I is one a provides reliability things that is signal the

signal. some been have could to coal will point at good still others stages, of progress of I I as a is But made We conversions And early that look there. a it's at potential some look it have but plants, number has in operating. Shar, at well. obviously sites lot think PJM We we think a gas.

if have billion midpoint put ranges at the you the figure Maybe finer directionally? on could bit a falling reiterated some the that between Jim, it. the you And just, been $X even of curves before capacity saw number. on would results? the Got but is around PJM just we a year, auction trade-offs you little point in the XXXX, blowout right, then opportunity, obviously, Perfect. Question like,

question, Sure. Shar. Yes, good

strong in point this that So the the we at plus, May in billion Curves and across were time we first announced PJM, in country. actually talking Texas were on quite when frankly, call. $X market the the about

come We were the that have know, hedged you on off XX% call. As curves a about bit. quite

Now we're about hedged. XX%

we're gross volatility did a unhedged part in other XXXX particularly up in of put capture in. for Shar, this nature the So some of this had if seen erode plus earnings. But handle XXXX. We clear, XXXX the of captures coming sense will the part because auction we the have the that our business some have curves not the the margin because December we only open just some couldn't of position, portion, number. wouldn't 'XX With $X billion and of we obviously, revise we that's out

As you revise noted, we XXXX. did

business, the we we've clear having the plus merely with going into I our the and reflected XXXX. been we'll which business has come next to with provided diversification today. these plus in had, We this out figure, a is the we've quarter. are upcoming you of fleet, we'll of visibility clear strong. we're -- give I above XXXX number, is these not billion think next the the more quarter, earnings we -- think When strongly clear, retail give $X guidance refresh what that business for the very power the But resilient. auction XXXX, And but

one. then Perfect. And more one Got quick just it.

Has slowed been vocal know in the around on customers Just super the -- colocation have you've conference, of Technical process. ISA technical I opportunities? Susquehanna conversations Conference, that the with that amendment you any having guys FERC the been obviously has

Shar, The not slowed. it down. has is conversation

a it technical folks. But sites, with making We're like They billion year potential a are but power of lot folks -- We're including process, are due conversations for numerous. that are a -- for are -- with, and site. of could suppliers making. having costs interest will our having of sites. these all, think, ourselves. approaching progress a conversations of to a these If I single of conversations for customers. in really a this instance, long-dated are number are not larger good there having Clearly, with contract our one we're they're diligence in they first sizable customers be decisions $X conversations is lot these only at conference some that they of

it of but has time pace So to these evolve, not the slowed take play.

I think also meter of the front and load data co-located there's to of be meter. going center the or behind plenty

plenty. there's they're these customers think I going options. are to be think I And all evaluating evaluating their

needs. So on jobs, as expect our with broadly. I see technical And in conference the able our industry how opportunity decision a optimistic customers, market we're know the couple development. that we ISA. to see very is these amended clearly hope stay support of that active, clear going here we that, to for an our think key come, a a until But as lot record this don't goes. We're of meet is which economy the I we'll lot own We loan but really And we're of customer more conversations to approving beneficial really we stay economic industry will. in way growth a participants And pretty about. this get to active we're and get to a frankly, FERC all and to for this is of big

Seaport. from is next Angie question with The Storozynsk

growth. continuing of and on the general, the So this just load topic colocations

from concerned and years load of next the some are raised particular, electric on and of seemingly growth service this couple reliability seeing over markets. PJM, materializes. as competitive in the the wires load conversations utilities the we're about So they

capacity power should market right, we build, same parties the potential and to not And is markets, in also build. raising seemingly, be power super prices not to And cyclical about name should that were concerning, build low. so prices last because where regulated just mean the power interventions concerns somewhat new that PJM it. to it a auction. I support you new this merchant new but competitive when response led their in to capacity it's projections, hands were And spikes power seemingly to incentivize some plants

that mean manage you your you is but how know protect So so assets it to wonder that take -- goes my big -- way that can just market that going [indiscernible] sort -- benefit of narrative? interventions? assets, that the I'm just to has just do approach this that Do to contract Is going mean, of this just all that I a to them utilities against been wires that? the rush parties do through will is pass? benefit? pull to on show how you're rhetoric you to the sort them Is any I best think generation

XX% our makes strategy. a it without like what than the feel work new margin XXx product, higher investor regulated bringing energy framework customers something generation the is regulated lot competitive and the companies looks that that Yes. can context. life need as in average, that doing view. I in is by shown billion we long the we the just some itself a first their you quite know Over bit. as all as to to X a since competitive question. well. in they're need a serve over by opened. This competitive in we competitive PJM And since a a It about, has of point Angie, that That need on That an not This reliable in math while core think a tenet from feel is of ERCOT utilities it invested shown the is there's companies maybe billion clear time. about includes the talked over of with is to years market has a and market as of has utilities to clear, has the XX% market, market in invested it's a quite $XX that plant. gas and build been to build would the real $XXX at beauty market the competitive clear, is of been anybody opened. last

new not on know resources. transmission plenty connect only to and opportunities and PJM, in to that. to develop slow that think to generation side distribution the the new load wants And accelerate there's has serve PGM I queue investment but been of I

paid. So go think about, that worried there ancillary said some some customers what that side minute we're to ago, the are should I back charges pay The I that's the to that delivered, we be still on want talking or to be a to, to the for or just they're I services need being generation wire need services don't be wires whether paid side.

to. plenty opportunity to and together make fast through to. I unfold That's for all in it. But together would to something would happens meeting customer to it need think, we respective here do as for think only there's of technology I the all the of doing as And going like have time. to like Angie, customer our us fast space power as to think economic the Nothing but is not that we're I we're meet ultimately an companies, opportunity to it's is work frankly, a need. as work this market to going it what

these around plenty think for But think be I to a this stakeholders. through need we issues. keep work we all So dialogue real and boom open there's the for to to just go

in worth but just plant to risk announcements, maybe not regulatory just as about to far these strategy. your taking companies, but to deals [indiscernible] you if would that you other far wondering, scrutiny it forward deals contracts. as happen for wait of don't And of just the were also to colocations the it time could pulling more tech mean, think essence, Again, some like the I'm like it announce by is only transactions approach as these deals deals. I as of the of there for again, portfolio to this by plant future feels deals, on of like not these long-term and these market be then just portfolio I reviews almost colocation those as mean happen? a any But time all plant? plant other be seems to because

Yes.

going I speed comfortable the resources, and this but contracts we'll I with questions think, with to attention, the getting the do still customers business. are these The they Angie, to the terms customer-driven under obviously regulatory which location, get sign as some event. are which a want the will energize view

just there, necessary isn't just of just the to up studies I valuable to one-way to and do, how filings think move questions. and not direction happen. But any we move. Vistra is pull amended company to meet time. not we the has need to a that the control. we'll It's deals, Vistra parties to customer to in those to think the need. simply company are to they work job for they're real So the that Vistra fast quickly. response to in responsive be just provided I all is this our and for and been real going that conversations need resources right take think is your here But also question. make our it to if be that just to is committing to the Vistra regulators wants to I those like terms that's customer answered they're ISA be other it's needs, up questions, of the there customers I with But we're There are able the that, doing with this ask optimistic approved. But And which are These think committing complicated us. up will and be of hear get through

to time is the this think right on together that get it something done work frame. to need we I

addressed feels both the in it would colocation preference? concerns the last almost I ISA? like front you behind of raised mentioned some and any And of have mean have [indiscernible] the one, meter in meter Okay. front of the the meter you in colocation. Do

absolutely. Yes,

be from front folks and that this one meet of -- think a there's this everybody going lot vast just other. but meter. low going into majority is data be comes growth, for I what much follow will all of I other as is discussion needs are -- to way so There's players frustration, -- the is times I these not and both. There of at, the think, if at these the all, be think sources views electrification to the meter. first or reindustrialization only centers, no to of you the looking behind -- there's There's

level can really is years, that either market to and behind supply done growth the large the advantage customers is there of kind got should way, the them able unique from provide for be provide the a transmission same doing co-locate we frame to and a time The the for they're of should load the build just XX have we've resources us other the out piece So demand perspective. for be we fundamentals. as product if contract looking we land and to and needed for, not on help view last because earn to much meter like to simply opportunity a reliable so. margin a that ability When going in side to speed that

think So both with pursuing of those opportunities, our Angie, I are customers. both valuable and we're

with is from Morgan question David Next Stanley. Arcaro

newbuild there? this economics when How your an the going that's view, high really you the update look final newbuild? think we to to could much in are see prices TEF, proposals on we out? And latest the justify out views you in how curve ERCOT, Could about on your give of shake as enough

great David, question.

view months, So a sitting and do a couple is of off where of coming week even there. I things there in than starting May. in first the last the in just is different the we itself curve couple were of of think

a challenged. you a at I simply the if projects company. net And are think look curves, long so we're generator just a long as And -- these

length We have we serve than a generation load. retail more lot

that performance you we is the ancillary, also the to that. only liquid, they some and investment the at also overreact markets So curve the on a construct in curve curve August. But why pass market reserve then And the curves of in in I other Bill Texas That's a the you put to and curves the early Sunset not the in credit which last the service, things can't so country. other May, and here mechanism. they early overreact looking basis, test, they reliability work is and on can't a is than to if different codified legislature a the couple were think recognized new session, only

view, the megawatts. has a financing to encourage gas we And of be say plants low-cost some in would did, our maximum what built. need So legislature XX,XXX to Texas that provide to

to regardless process, So are had how the XX,XXX is the billion. And funding to session megawatts. of it's right $XX before back many was to That next billion billion additional funded But interest they of come, many fully now, notification the application the in fund expected the how $X during XX,XXX and of $X have or to it. session, likely up max the megawatts. could have next

financing to Our to and view helpful, be able revenue lower make of The justifiable. is that projects work. adequate but projects cost not make these low-cost completion these is some would still alone financing bonuses you need

proceeding with -- the of So augmentation. We're the and when of those, market and very believe don't announcement reforms important for requests we're conversion made part that, test X,XXX given comfortable we have the overall we the May in Coleto, forward. we about those comfortable the we are with expect any economics move the would And proceeding megawatts, of our the package.

address the to interest I going sure built. to around We're because grid for been that are However, know reliability loan file helpful, some new peakers, so the we believe of those market the Texas. don't enough the shake we again, did is, much reforms how to to the TEF construct that address. We maybe also ultimately intended not that ultimately the still TEF out think in help see the folks revenue gets are much generation need there's but think concerns we and TEF that TEF X that's for how in

too I to early it's tell. think

the prices. reliability XX only are base long some some reliable advocacy the not be but stakeholders from very to term, cost aging This to that is Not on all currently plus, there needs market commercial industrials energy of are very customer the agreement to grid, price long which preserve revenue sensitive, low a But lives, years sensitive. reliability incentivize and in for assets, quite signals. that. right the is also assets XX, that values on large the The

develops to active here, the and how that session. it throughout in the out. I going monitor ultimately think So how we'll we're work know stakeholder will see from and I But We're don't very it, it's process especially the come of to supported of this aspects early consistent if not fruition, going tell Bill through with reform of to is process, how too SVX. market some to the end at are all the the Sunset

The Research. Fleishman Wolfe with next question is Steve from

us decision better others made need when of make really? a for do this curves? you Just on sense TEF. the the when be to a last on go/no-go Yes, you to by like process through the maybe might you to and question that decision up follow whatever have give Could

perspective of with So August, forward to process. diligence the the end to move from selected who's at expect we a due been TEF hear

and of and to we we're we on on peakers work, summer. And in now at program, round. to award Steve, due will the of think And on active monies more time loans, process have perspective, decision available. will made in we'll loan all next take to our work, to terms decision And how we'll dispersed. I'm will participants it site that's I a quick late real of in whether time. process that look early the then made market can is bonus the line more, the August, making be for our So they up [indiscernible] we then. and there learn by We interconnect diligence hear ultimately, then I the have be as the stakeholder through. to to closer make next be have anticipate expect quickly obviously, by believe XXXX. the an engineering have time. some a the we end those see and information the Steve, to -- frame, we'll be we probably And the frame these go/no-go point lot time going time that to they line process see And market it. have from working and between a need But

couple, then That's helpful. a And I guess, maybe numbers questions.

that the have nuclear XXXX, of You disclosure thank if in you roughly, had you that included $XXX from million you it. would for PTC

that you're say for of on the mean now just Are floor? because just provide 'XX PTC trying you average then downside it yet. you're you're you 'XX that right that not You it Does saying -- quantifying above to support? would kind not -- are really that for

you on give more Just that? color could

Sure. Steve, then your and question floor, depends on which August week the floor. we're we're at X, PTC of as below talking right about. Literally, PTC right that

day-to-day, softness change But communication so in we our business. wanted reflect revenue that this. to underlying So views annual way was not can to capacity through merely you like that obviously we our it's in I the think could needed some the that week-to-week range other our flow cover see

curves some $XXX would protection if lot certainly, provides for protection that's We But feel The we strongly get communicating in, we're before, the and little the adding off, feel really It's we more we that's downside have get 'XX revenues. are, upside. we capacity where downside PTC stayed a did range, exactly million came raised what valuable. you curves not if the more And but protection. maybe PTC a and XXXX. the we're PTC only about bit as for comes they

if above and range upper the think 'XX we're communicating going million come results, the over for that you of see $XXX are, You're we're the we in out regs that XXXX. number they the giving to way it end our

So that's it protection some downside comfort. certainly the give It that in-the-money should investors provides always works. it how an isn't tool, our but

question. Okay. And then one last

the the seems auction on maybe That 'XX, auction Could might be than the there? that the talk in actual we somewhat you on million upside just the in based would calculated just outcome. of $XXX have to from some less offsets PJM increase. Just

Yes.

disclosed a embedded numbers on half, auction Steve, clear when auction assumption an already that look what turned putting -- to in at the So we than be. out had last we revenue had out that our clear XXXX, for quarter, we

have of So we've in energy, a how works, you forward only do on the point but residential, XXXX starting then business numbers. And in particularly at look some already if piece sale you capacity. the our retail not

not fixed So the that, but price of particularly long which for the residential is space, in some effectively of those dated have commitment you a customers. deal, are as

value. full at to through So pass that you the wouldn't expect

would be passing Some pass of industrial on through the contracts residential, it the But commercial not typical through. piece. to capacity is

So have capacity. obviously, XXXX see would months then, you even of And get benefit sold time planning the to of the you -- there's auction, forward X course, well. when less retail the $XXX period. XXXX would the By that there's be as that that million, XXXX,

move of you see So as even clear these levels through you forward. flow would more at

The Chopra from is next with Evercore question Durgesh ISI.

on just there's to a pieces. every spot, been to hate I you has going lot you is, colocation but more moving put question the burning This data several but before earnings to talk we you sign opportunity? center on you Jim, can the the understand you a times, color are asked on to share time I timing? any when of

thinking how year? potential announcement there? Just trying timing can and about this whether to see something understand are Or we you

but do our these spot. some is comfort extremely are details hard I customers' through on depend complicated to on question deals get put can, which Yes. only desire these being is, we're not mind do can think the large a question getting with done, answer, they working I of and deals Durgesh, best and the only don't the it I well. I the to answer one done. the

have that We and know multiple conversations strong just not parties, due having processes they're Vistra. with engagement diligence but we

as So industry working a to think there's options. work its well funnel the that realistic a going co-locators, I be power hyperscalers lot down process generation the in of of and from as to there's way the and do a

PJM same have the the with the not amended jurisdiction. environment being regarding ERCOT in that example, Well, ISA. raised questions For does

have perspective, Comanche in a ISA. Comanche Peak some and up as a started PJM Peak step So become to there's amended more we're in seeing and relative that with value discussions process, interest the on on these public even

it's can, customer be a and we're about does best thing with that, take say to moving as to Durgesh, market. we It's as the but side dynamic So, fast it the comfortable this. I can

As large I mentioned, these complicated deals. very are

our So deals. of they depend center don't of our lot fundamentals Durgesh, business, doing on data a

that many behind or the we customers, they're meter talked forecast unique supply-demand the baked into it's whether with our a many directly upside. that opportunities I and like not opportunity have about, they're company it just sites and partner meter, there, our ours think to of And the so for with front a so fundamentals is we've views.

And I as is can can to deal. bunch our a that a get as so competitive we're we -- but to hard working team you tell

supply power a But second My chatter Great. long-term then that what dynamic near-term I know and that question bad recession, is is mean power tailwind just of for as here, around a there's on lot does -- implications scenario prices we major what your demand a does business? you. landing the hard that mean? for a

some gas That's also not there. consistent returns. only to but more price be our XXXX X near a into We've been But really in competitive of kind shocks economic and the out business going demand we move XX strong power near open years number and as to our term, company. X you about to as the and environment. term, macroeconomic next ability years, customer of just I times a natural the when generate through the is feel levels, Obviously, say beyond, our is to demand the price

sort those very and of proof. business healthy And or type in a very to tend be the fixed that's risk contracts more to load baseload and industrial, the We We have tend have business taking or we most pretty to products that. quantity that our swing take-or-pay customers. commercial recession we're healthy business sell of residential a where don't

So up I well, Durgesh. think our business is set

has I even cost whether whether or our think down we're things that down. we're back get able the it's we some marketplace that of shown generating [indiscernible] in a buyback units, hedges margin, back effectively, when soft, business to

not in if worry anything downturn. model, about were I investment, make business think we'll your at a not long and we it about really is of this -- thought your capital certainly, the we've the term, you in So allocation sort that's proven planning you but But prolonged horizon. near-term that resiliency think

is from Dumoulin-Smith The with question next Julien Jefferies.

It's actually Antoine for Julien.

to these up yet. But data getting more I start you you comment pricing haven't the baseload side, the to can So value and evaluating how reliable on is discussion has more providers? signed center evolved the for contracts data capacity anything follow know maybe Like potential of on contracts recognized. on center with

capacity PJM do the how auction. play level comfort of deal? signing does had just pricing into your How that trending? see long-term you And a You into

speed competitive the a But on and discussing a would are to call. customers on the competitive you're we of to particularly They understand process. topic value of sensitive say pricing engaged Well, value nuclear company with I that units, -- that. I understand they earnings potential is mean, of and reliability. that the are understand Yes. They be the in the market to value carbon-free a understand the our pay again, the we attribute. they're benefit willing for

So have other are similar that, people that Vistra. resources offering to

the the of buyer a just think and we again, a than Ultimately, options is, along fleet. and moving having the part conversation, is those more nuclear also are to that this But So well. gas there's and needing conversations, The I are value seller agreement fleet reach those are is. on potentially what wouldn't that other the gas They to attribute. But and provide to price be premium some the same the cases obviously, on in customers. the renewables benefits for They necessarily assets carbon-free the provide paying connected opportunity for grid for provide the use be grid reliability. customer. optimize they

customer-specific. this and a there's of are be deal to to So lot variables going that

capacity clear the was noted. But

they're looking to these need meter, going that is something the of as I to think the of kind at something pay. that's or meter going that a whether clears be capacity load customer, front behind to

the I they've auctions. than think be that it unclear been auction was previous what more in actually so that a And auction, might revenues before last little this more do bit

this I for for this shaping parameter December, up supply auction actually and show more need think the in a there PJM. is that

they so are And customers the perspective. know clears see from and we'd or that cost to that level higher, power a stay and expect we coming at savvy this

see existing talking a sort wide Got come of any -- opportunities about you out these the take builds, time How bid-ask spread about today? but think it. new And we've buying to online. Do been you then how do there? lot assets? lastly, has been

Yes.

end IPP financially considerably the I cheaply grown business sector, trading through a We IPPs more have the and unfortunately, acquisition. have that much those solvent discount. our aftermath. history assets usually cases, many In brand-new been not think And the of has up assets in up themselves the at stayed have picked actually folks

talk build. you was the a competitive ERCOT And forward with new one still about see people dollar recent largely argue PJM, on when curves partners with $X.XX even receiving sale that an a fleet, is are so where a at that's $X.XX, look and challenge to for the of that And announced we value I think assets that those a on with leaning forward say return that's at plant, market instance, market market. true regulated in a for and curves or a look the a a That's the it's or whether for be offtake asset cheaper and agreement they in on buying asset gas market it's the on might requirement. that's true, a brand-new still competitive paying than to could whether

up ability So integrate and and assets coming the doing are There I and to to assets think we still have shown synergies, more we're earn that. an market. to them the pick open

closed value level costs the new gap think to meaningfully. that do I improved, haven't gas to the is have of improved that not seen they have people it assets build. but And these

a right to still delta. things the yes, X But so are We see down be converge And we'll in looking looking if will at we active. be there always active is But those opportunities. now, road.

the on congrats Jim, quarter.

like This to to the concludes for would back our Burke any closing conference session. question-and-answer turn I over remarks. Jim

everyone want thank and work soon. thank see we'll service Vistra, for We the communities. here customers joining. you our our months appreciate And to your our priorities. person for to strategic deliver to continue on power to team and and to in and execution hope through want I their in to our continued we just I Yes. interest hard summer

So on summer, to you have we'll November. call in Thanks. again our and talk of a your end nice quarter next

now Thank presentation. today's attending has you for conference concluded. The

may disconnect. You now