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State of
Incorporation
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I.R.S. Employer
Identification No.
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Delaware
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20-5653152
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601 Travis, Suite 1400
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Houston, Texas
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77002
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
ý
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Emerging growth company
o
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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 4.
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Item 5.
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Item 6.
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ATSI
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American Transmission Service, Inc.
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CAA
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Clean Air Act
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CAISO
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The California Independent System Operator
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CDD
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Cooling Degree Days
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COMED
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Commonwealth Edison
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CPUC
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California Public Utility Commission
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CT
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Combustion Turbine
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EBITDA
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Earnings Before Interest, Taxes, Depreciation and Amortization
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EMAAC
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Eastern Mid-Atlantic Area Council
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EPA
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Environmental Protection Agency
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ERCOT
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Electric Reliability Council of Texas
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FCA
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Forward Capacity Auction
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FERC
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Federal Energy Regulatory Commission
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FTR
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Financial Transmission Rights
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HDD
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Heating Degree Days
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IMA
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In-market Asset Availability
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IPH
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IPH, LLC
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ISO
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Independent System Operator
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ISO-NE
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Independent System Operator New England
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kW
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Kilowatt
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LIBOR
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London Interbank Offered Rate
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MAAC
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Mid-Atlantic Area Council
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MISO
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Midcontinent Independent System Operator, Inc.
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MMBtu
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One Million British Thermal Units
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Moody’s
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Moody’s Investors Service Inc.
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MW
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Megawatts
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MWh
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Megawatt Hour
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NYISO
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New York Independent System Operator
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PJM
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PJM Interconnection, LLC
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PPL
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PPL Electric Utilities, Corp.
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PRIDE
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Producing Results through Innovation by Dynegy Employees
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RGGI
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Regional Greenhouse Gas Initiative
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RTO
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Regional Transmission Organization
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S&P
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Standard & Poor’s Ratings Services
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SEC
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U.S. Securities and Exchange Commission
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June 30, 2017
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December 31, 2016
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||||
ASSETS
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Current Assets
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Cash and cash equivalents
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$
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447
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$
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1,776
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Restricted cash
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—
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62
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||
Accounts receivable, net of allowance for doubtful accounts of $1 and $1, respectively
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441
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386
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Inventory
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477
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445
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Assets from risk management activities
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83
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130
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Intangible assets
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23
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38
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Prepayments and other current assets
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119
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150
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Total Current Assets
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1,590
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2,987
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Property, plant and equipment, net
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9,485
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7,121
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Investment in unconsolidated affiliate
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150
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—
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Restricted cash
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—
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2,000
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Assets from risk management activities
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46
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16
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Goodwill
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799
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799
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Intangible assets
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58
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23
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Assets held-for-sale
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463
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—
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Other long-term assets
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168
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|
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107
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Total Assets
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$
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12,759
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$
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13,053
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June 30, 2017
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December 31, 2016
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||||
LIABILITIES AND EQUITY
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Current Liabilities
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Accounts payable
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$
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370
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$
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332
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Accrued interest
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116
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81
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Intangible liabilities
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25
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21
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Accrued liabilities and other current liabilities
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154
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133
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Liabilities from risk management activities
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73
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97
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Asset retirement obligations
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59
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51
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Debt, current portion, net
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106
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201
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Total Current Liabilities
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903
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916
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Liabilities subject to compromise (Note 18)
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—
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832
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Debt, long-term portion, net
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9,211
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8,778
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Liabilities from risk management activities
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48
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43
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|
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Asset retirement obligations
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246
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236
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Deferred income taxes
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30
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5
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Intangible liabilities
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41
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34
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Other long-term liabilities
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161
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170
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Total Liabilities
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10,640
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11,014
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Commitments and Contingencies (Note 13)
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Stockholders’ Equity
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Preferred stock, $0.01 par value, 20,000,000 shares authorized:
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Series A 5.375% mandatory convertible preferred stock, $0.01 par value; 4,000,000 shares issued and outstanding, respectively
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400
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400
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Common stock, $0.01 par value, 420,000,000 shares authorized; 142,691,801 shares issued and 131,365,679 shares outstanding at June 30, 2017; 128,626,740 shares issued and 117,300,618 outstanding at December 31, 2016
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1
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1
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Additional paid-in capital
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3,320
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3,547
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Accumulated other comprehensive income, net of tax
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28
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21
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Accumulated deficit
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(1,626
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)
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(1,927
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)
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Total Dynegy Stockholders’ Equity
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2,123
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2,042
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Noncontrolling interest
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(4
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)
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(3
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)
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Total Equity
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2,119
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2,039
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Total Liabilities and Equity
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$
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12,759
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$
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13,053
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2017
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2016
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2017
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2016
|
||||||||
Revenues
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$
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1,164
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|
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$
|
904
|
|
|
$
|
2,411
|
|
|
$
|
2,027
|
|
Cost of sales, excluding depreciation expense
|
|
(681
|
)
|
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(493
|
)
|
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(1,438
|
)
|
|
(1,038
|
)
|
||||
Gross margin
|
|
483
|
|
|
411
|
|
|
973
|
|
|
989
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|
||||
Operating and maintenance expense
|
|
(282
|
)
|
|
(256
|
)
|
|
(514
|
)
|
|
(477
|
)
|
||||
Depreciation expense
|
|
(209
|
)
|
|
(160
|
)
|
|
(409
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)
|
|
(331
|
)
|
||||
Impairments
|
|
(99
|
)
|
|
(645
|
)
|
|
(119
|
)
|
|
(645
|
)
|
||||
Loss on sale of assets, net
|
|
(29
|
)
|
|
—
|
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(29
|
)
|
|
—
|
|
||||
General and administrative expense
|
|
(42
|
)
|
|
(39
|
)
|
|
(82
|
)
|
|
(76
|
)
|
||||
Acquisition and integration costs
|
|
(7
|
)
|
|
3
|
|
|
(52
|
)
|
|
(1
|
)
|
||||
Other
|
|
3
|
|
|
(16
|
)
|
|
1
|
|
|
(16
|
)
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||||
Operating loss
|
|
(182
|
)
|
|
(702
|
)
|
|
(231
|
)
|
|
(557
|
)
|
||||
Bankruptcy reorganization items (Note 18)
|
|
(1
|
)
|
|
—
|
|
|
482
|
|
|
—
|
|
||||
Earnings from unconsolidated investments
|
|
1
|
|
|
1
|
|
|
—
|
|
|
3
|
|
||||
Interest expense
|
|
(159
|
)
|
|
(141
|
)
|
|
(326
|
)
|
|
(283
|
)
|
||||
Other income and expense, net
|
|
29
|
|
|
30
|
|
|
46
|
|
|
31
|
|
||||
Loss before income taxes
|
|
(312
|
)
|
|
(812
|
)
|
|
(29
|
)
|
|
(806
|
)
|
||||
Income tax benefit (expense) (Note 14)
|
|
16
|
|
|
9
|
|
|
329
|
|
|
(7
|
)
|
||||
Net income (loss)
|
|
(296
|
)
|
|
(803
|
)
|
|
300
|
|
|
(813
|
)
|
||||
Less: Net loss attributable to noncontrolling interest
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Net income (loss) attributable to Dynegy Inc.
|
|
(296
|
)
|
|
(801
|
)
|
|
301
|
|
|
(811
|
)
|
||||
Less: Dividends on preferred stock
|
|
6
|
|
|
6
|
|
|
11
|
|
|
11
|
|
||||
Net income (loss) attributable to Dynegy Inc. common stockholders
|
|
$
|
(302
|
)
|
|
$
|
(807
|
)
|
|
$
|
290
|
|
|
$
|
(822
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) Per Share (Note 16):
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share attributable to Dynegy Inc. common stockholders
|
|
$
|
(1.96
|
)
|
|
$
|
(6.73
|
)
|
|
$
|
1.91
|
|
|
$
|
(6.97
|
)
|
Diluted earnings (loss) per share attributable to Dynegy Inc. common stockholders
|
|
$
|
(1.96
|
)
|
|
$
|
(6.73
|
)
|
|
$
|
1.76
|
|
|
$
|
(6.97
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Basic shares outstanding
|
|
154
|
|
|
120
|
|
|
152
|
|
|
118
|
|
||||
Diluted shares outstanding
|
|
154
|
|
|
120
|
|
|
171
|
|
|
118
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
|
$
|
(296
|
)
|
|
$
|
(803
|
)
|
|
$
|
300
|
|
|
$
|
(813
|
)
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
||||||||
Actuarial gain and plan amendment (net of tax of $4, zero, $4, and zero for each respective period)
|
|
(4
|
)
|
|
—
|
|
|
11
|
|
|
—
|
|
||||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of unrecognized prior service credit (net of tax of zero for each respective period)
|
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(2
|
)
|
||||
Other comprehensive income (loss), net of tax
|
|
(6
|
)
|
|
(1
|
)
|
|
7
|
|
|
(2
|
)
|
||||
Comprehensive income (loss)
|
|
(302
|
)
|
|
(804
|
)
|
|
307
|
|
|
(815
|
)
|
||||
Less: Comprehensive loss attributable to noncontrolling interest
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Total comprehensive income (loss) attributable to Dynegy Inc.
|
|
$
|
(302
|
)
|
|
$
|
(802
|
)
|
|
$
|
308
|
|
|
$
|
(813
|
)
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
||
Net income (loss)
|
|
$
|
300
|
|
|
$
|
(813
|
)
|
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
|
|
|
|
|
||||
Depreciation expense
|
|
409
|
|
|
331
|
|
||
Non-cash interest expense
|
|
32
|
|
|
23
|
|
||
Amortization of intangibles
|
|
15
|
|
|
13
|
|
||
Risk management activities
|
|
(1
|
)
|
|
(89
|
)
|
||
Loss on sale of assets, net
|
|
29
|
|
|
—
|
|
||
Earnings from unconsolidated investments
|
|
—
|
|
|
(3
|
)
|
||
Deferred income taxes
|
|
(329
|
)
|
|
7
|
|
||
Impairments
|
|
119
|
|
|
645
|
|
||
Change in value of common stock warrants
|
|
(15
|
)
|
|
(2
|
)
|
||
Bankruptcy reorganization items
|
|
(482
|
)
|
|
—
|
|
||
Other
|
|
29
|
|
|
18
|
|
||
Changes in working capital:
|
|
|
|
|
||||
Accounts receivable, net
|
|
(13
|
)
|
|
15
|
|
||
Inventory
|
|
76
|
|
|
77
|
|
||
Prepayments and other current assets
|
|
44
|
|
|
156
|
|
||
Accounts payable and accrued liabilities
|
|
17
|
|
|
8
|
|
||
Changes in non-current assets
|
|
(1
|
)
|
|
(12
|
)
|
||
Changes in non-current liabilities
|
|
1
|
|
|
1
|
|
||
Net cash provided by operating activities
|
|
230
|
|
|
375
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(86
|
)
|
|
(286
|
)
|
||
Acquisitions, net of cash acquired
|
|
(3,263
|
)
|
|
—
|
|
||
Distributions from unconsolidated investments
|
|
2
|
|
|
8
|
|
||
Other investing
|
|
1
|
|
|
7
|
|
||
Net cash used in investing activities
|
|
(3,346
|
)
|
|
(271
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||
Proceeds from long-term borrowings, net of debt issuance costs
|
|
425
|
|
|
2,278
|
|
||
Repayments of borrowings
|
|
(331
|
)
|
|
(20
|
)
|
||
Proceeds from issuance of equity, net of issuance costs
|
|
150
|
|
|
362
|
|
||
Preferred stock dividends paid
|
|
(11
|
)
|
|
(11
|
)
|
||
Interest rate swap settlement payments
|
|
(9
|
)
|
|
(9
|
)
|
||
Acquisition of noncontrolling interest
|
|
(375
|
)
|
|
—
|
|
||
Payments related to bankruptcy settlement
|
|
(123
|
)
|
|
—
|
|
||
Other financing
|
|
(1
|
)
|
|
(2
|
)
|
||
Net cash provided by (used in) financing activities
|
|
(275
|
)
|
|
2,598
|
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
(3,391
|
)
|
|
2,702
|
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
|
3,838
|
|
|
544
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
447
|
|
|
$
|
3,246
|
|
•
|
Working capital was valued using available market information (Level 2).
|
•
|
Acquired property, plant and equipment (“PP&E”), excluding those assets classified as held-for-sale, was valued using a discounted cash flow (“DCF”) analysis based upon a debt-free, free cash flow model (Level 3). The DCF model was created for each power generation facility based on its remaining useful life, and:
|
◦
|
for the years 2017 and 2018, included gross margin forecasts using quoted forward commodity market prices;
|
◦
|
for the years 2019 through 2026, we used gross margin forecasts based upon commodity and capacity price curves developed internally using forward New York Mercantile Exchange natural gas prices and supply and demand factors;
|
◦
|
for periods beyond 2026, we assumed a
2.5 percent
growth rate.
|
•
|
Acquired PP&E classified as held-for-sale was valued based upon the sale price of the assets (Level 2).
|
•
|
Acquired derivatives were valued using the methods described in
Note 6—Fair Value Measurements
(Level 2 or Level 3).
|
•
|
Contracts with terms that were not at current market prices were also valued using a DCF analysis (Level 3). The cash flows generated by the contracts were compared with their cash flows based on current market prices with the resulting difference recorded as either an intangible asset or liability.
|
•
|
Asset retirement obligations (“AROs”) were recorded in accordance with ASC 410, Asset Retirement and Environmental Obligations (Level 3).
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(amounts in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Acquisition costs
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
2
|
|
Revenues
|
|
$
|
246
|
|
|
N/A
|
|
|
$
|
324
|
|
|
N/A
|
|
||
Operating income
|
|
$
|
20
|
|
|
N/A
|
|
|
$
|
4
|
|
|
N/A
|
|
|
|
Six Months Ended June 30,
|
||||||
(amounts in millions)
|
|
2017
|
|
2016
|
||||
Revenue
|
|
$
|
2,468
|
|
|
$
|
2,315
|
|
Net income (loss)
|
|
$
|
302
|
|
|
$
|
(948
|
)
|
Net income (loss) attributable to Dynegy Inc.
|
|
$
|
303
|
|
|
$
|
(946
|
)
|
Inventory
|
|
$
|
11
|
|
Property, plant & equipment
|
|
452
|
|
|
Assets held-for-sale
|
|
$
|
463
|
|
Contract Type
|
|
Quantity
|
|
Unit of Measure
|
|
Fair Value (1)
|
|||
(dollars and quantities in millions)
|
|
Purchases (Sales)
|
|
|
|
Asset (Liability)
|
|||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
Electricity derivatives (2)
|
|
(65
|
)
|
|
MWh
|
|
$
|
40
|
|
Electricity basis derivatives (3)
|
|
(46
|
)
|
|
MWh
|
|
$
|
(9
|
)
|
Natural gas derivatives (2)
|
|
410
|
|
|
MMBtu
|
|
$
|
(17
|
)
|
Natural gas basis derivatives
|
|
135
|
|
|
MMBtu
|
|
$
|
(15
|
)
|
Physical heat rate derivatives
|
|
142/(15)
|
|
|
MMBtu/MWh
|
|
$
|
(11
|
)
|
Emissions derivatives
|
|
14
|
|
|
Metric Ton
|
|
$
|
(8
|
)
|
Interest rate swaps
|
|
1,965
|
|
|
U.S. Dollar
|
|
$
|
(18
|
)
|
Common stock warrants (4)
|
|
24
|
|
|
Warrant
|
|
$
|
(3
|
)
|
(1)
|
Includes both asset and liability risk management positions but excludes margin and collateral netting of
$46 million
.
|
(2)
|
Mainly comprised of swaps and physical forwards.
|
(3)
|
Comprised of FTRs and swaps.
|
(4)
|
Each warrant is convertible into
one
share of Dynegy common stock.
|
|
|
|
|
|
June 30, 2017
|
||||||||||||||
|
|
|
|
|
|
|
Gross amounts offset in the balance sheet
|
|
|
||||||||||
Contract Type
|
|
Balance Sheet Location
|
|
Gross Fair Value
|
|
Contract Netting
|
|
Collateral or Margin Received or Paid
|
|
Net Fair Value
|
|||||||||
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Commodity contracts
|
|
Assets from risk management activities
|
|
$
|
300
|
|
|
$
|
(182
|
)
|
|
$
|
—
|
|
|
$
|
118
|
|
|
Interest rate contracts
|
|
Assets from risk management activities
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||
|
Total derivative assets
|
|
|
|
$
|
311
|
|
|
$
|
(182
|
)
|
|
$
|
—
|
|
|
$
|
129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Commodity contracts
|
|
Liabilities from risk management activities
|
|
$
|
(320
|
)
|
|
$
|
182
|
|
|
$
|
46
|
|
|
$
|
(92
|
)
|
|
Interest rate contracts
|
|
Liabilities from risk management activities
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
||||
|
Common stock warrants
|
|
Accrued liabilities and other current liabilities and other long-term liabilities
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||
|
Total derivative liabilities
|
|
|
|
$
|
(352
|
)
|
|
$
|
182
|
|
|
$
|
46
|
|
|
$
|
(124
|
)
|
Total derivatives
|
|
|
|
$
|
(41
|
)
|
|
$
|
—
|
|
|
$
|
46
|
|
|
$
|
5
|
|
|
|
|
|
|
December 31, 2016
|
||||||||||||||
|
|
|
|
|
|
|
Gross amounts offset in the balance sheet
|
|
|
||||||||||
Contract Type
|
|
Balance Sheet Location
|
|
Gross Fair Value
|
|
Contract Netting
|
|
Collateral or Margin Received or Paid
|
|
Net Fair Value
|
|||||||||
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Commodity contracts
|
|
Assets from risk management activities
|
|
$
|
311
|
|
|
$
|
(165
|
)
|
|
$
|
—
|
|
|
$
|
146
|
|
|
Total derivative assets
|
|
|
|
$
|
311
|
|
|
$
|
(165
|
)
|
|
$
|
—
|
|
|
$
|
146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Commodity contracts
|
|
Liabilities from risk management activities
|
|
$
|
(329
|
)
|
|
$
|
165
|
|
|
$
|
54
|
|
|
$
|
(110
|
)
|
|
Interest rate contracts
|
|
Liabilities from risk management activities
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
||||
|
Common stock warrants
|
|
Accrued liabilities and other current liabilities
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
|
Total derivative liabilities
|
|
|
|
$
|
(360
|
)
|
|
$
|
165
|
|
|
$
|
54
|
|
|
$
|
(141
|
)
|
Total derivatives
|
|
|
|
$
|
(49
|
)
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
5
|
|
Location on Balance Sheet
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
(amounts in millions)
|
|
|
|
|
||||
Gross collateral posted with counterparties
|
|
$
|
80
|
|
|
$
|
116
|
|
Less: Collateral netted against risk management liabilities
|
|
46
|
|
|
54
|
|
||
Net collateral within Prepayments and other current assets
|
|
$
|
34
|
|
|
$
|
62
|
|
Derivatives Not Designated as Hedges
|
|
Location of Gain (Loss)
Recognized in Income on
Derivatives
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
|
Revenues
|
|
$
|
29
|
|
|
$
|
23
|
|
|
$
|
213
|
|
|
$
|
215
|
|
Interest rate contracts
|
|
Interest expense
|
|
$
|
1
|
|
|
$
|
(4
|
)
|
|
$
|
3
|
|
|
$
|
(12
|
)
|
Common stock warrants
|
|
Other income and (expense), net
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
1
|
|
|
|
Fair Value as of June 30, 2017
|
||||||||||||||
(amounts in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets from commodity risk management activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electricity derivatives
|
|
$
|
—
|
|
|
$
|
195
|
|
|
$
|
15
|
|
|
$
|
210
|
|
Natural gas derivatives
|
|
—
|
|
|
66
|
|
|
9
|
|
|
75
|
|
||||
Physical heat rate derivatives
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||
Emissions derivatives
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Total assets from commodity risk management activities
|
|
—
|
|
|
276
|
|
|
24
|
|
|
300
|
|
||||
Assets from interest rate contracts
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||
Total assets
|
|
$
|
—
|
|
|
$
|
287
|
|
|
$
|
24
|
|
|
$
|
311
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
.
|
|
||||
Liabilities from commodity risk management activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electricity derivatives
|
|
$
|
—
|
|
|
$
|
(163
|
)
|
|
$
|
(16
|
)
|
|
$
|
(179
|
)
|
Natural gas derivatives
|
|
—
|
|
|
(99
|
)
|
|
(8
|
)
|
|
(107
|
)
|
||||
Physical heat rate derivatives
|
|
—
|
|
|
(22
|
)
|
|
(2
|
)
|
|
(24
|
)
|
||||
Emissions derivatives
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||
Total liabilities from commodity risk management activities
|
|
—
|
|
|
(294
|
)
|
|
(26
|
)
|
|
(320
|
)
|
||||
Liabilities from interest rate contracts
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
(29
|
)
|
||||
Liabilities from outstanding common stock warrants
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||
Total liabilities
|
|
$
|
(3
|
)
|
|
$
|
(323
|
)
|
|
$
|
(26
|
)
|
|
$
|
(352
|
)
|
|
|
Fair Value as of December 31, 2016
|
||||||||||||||
(amounts in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets from commodity risk management activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electricity derivatives
|
|
$
|
—
|
|
|
$
|
118
|
|
|
$
|
20
|
|
|
$
|
138
|
|
Natural gas derivatives
|
|
—
|
|
|
169
|
|
|
4
|
|
|
173
|
|
||||
Total assets from commodity risk management activities
|
|
$
|
—
|
|
|
$
|
287
|
|
|
$
|
24
|
|
|
$
|
311
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities from commodity risk management activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Electricity derivatives
|
|
$
|
—
|
|
|
$
|
(245
|
)
|
|
$
|
(12
|
)
|
|
$
|
(257
|
)
|
Natural gas derivatives
|
|
—
|
|
|
(52
|
)
|
|
(10
|
)
|
|
(62
|
)
|
||||
Emissions derivatives
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||
Total liabilities from commodity risk management activities
|
|
—
|
|
|
(307
|
)
|
|
(22
|
)
|
|
(329
|
)
|
||||
Liabilities from interest rate contracts
|
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
||||
Liabilities from outstanding common stock warrants
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Total liabilities
|
|
$
|
(1
|
)
|
|
$
|
(337
|
)
|
|
$
|
(22
|
)
|
|
$
|
(360
|
)
|
Transaction Type
|
|
Quantity
|
|
Unit of Measure
|
|
Net Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Input
|
|
Significant Unobservable Input Range
|
|||
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Electricity derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Forward contracts—power (1)
|
|
(12
|
)
|
|
Million MWh
|
|
$
|
3
|
|
|
Basis spread + liquid location
|
|
Basis spread
|
|
$4.25 - $6.25
|
FTRs
|
|
(40
|
)
|
|
Million MWh
|
|
$
|
(4
|
)
|
|
Historical congestion
|
|
Forward price
|
|
$0 - $6.00
|
Physical heat rate derivatives
|
|
23/(3)
|
|
|
Million MMBtu/Million MWh
|
|
$
|
(2
|
)
|
|
Discounted Cash Flow
|
|
Forward price
|
|
$2.40 - $3.30 / $25 - $31
|
Natural gas derivatives (1)
|
|
103
|
|
|
Million MMBtu
|
|
$
|
1
|
|
|
Illiquid location fixed price
|
|
Forward price
|
|
$2.50 - $3.10
|
(1)
|
Represents forward financial and physical transactions at illiquid pricing locations and long-dated contracts.
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||
(amounts in millions)
|
|
Electricity
Derivatives
|
|
Natural Gas Derivatives
|
|
Heat Rate Derivatives
|
|
Total
|
||||||||
Balance at March 31, 2017
|
|
$
|
(17
|
)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(19
|
)
|
Total gains (losses) included in earnings
|
|
7
|
|
|
3
|
|
|
(2
|
)
|
|
8
|
|
||||
Settlements (1)
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
Balance at June 30, 2017
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
Unrealized gains (losses) relating to instruments held as of June 30, 2017
|
|
$
|
7
|
|
|
$
|
3
|
|
|
$
|
(2
|
)
|
|
$
|
8
|
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||
(amounts in millions)
|
|
Electricity
Derivatives
|
|
Natural Gas Derivatives
|
|
Heat Rate Derivatives
|
|
Total
|
||||||||
Balance at December 31, 2016
|
|
$
|
8
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
2
|
|
Acquired derivatives
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total gains (losses) included in earnings
|
|
(22
|
)
|
|
13
|
|
|
(2
|
)
|
|
(11
|
)
|
||||
Settlements (1)
|
|
12
|
|
|
(6
|
)
|
|
—
|
|
|
6
|
|
||||
Balance at June 30, 2017
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
Unrealized gains (losses) relating to instruments held as of June 30, 2017
|
|
$
|
(22
|
)
|
|
$
|
13
|
|
|
$
|
(2
|
)
|
|
$
|
(11
|
)
|
|
|
Three Months Ended June 30, 2016
|
||||||||||||||
(amounts in millions)
|
|
Electricity
Derivatives
|
|
Natural Gas Derivatives
|
|
Coal Derivatives
|
|
Total
|
||||||||
Balance at March 31, 2016
|
|
$
|
(17
|
)
|
|
$
|
(18
|
)
|
|
$
|
1
|
|
|
$
|
(34
|
)
|
Total gains (losses) included in earnings
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||||
Settlements (1)
|
|
5
|
|
|
3
|
|
|
—
|
|
|
8
|
|
||||
Balance at June 30, 2016
|
|
$
|
(24
|
)
|
|
$
|
(15
|
)
|
|
$
|
1
|
|
|
$
|
(38
|
)
|
Unrealized gains (losses) relating to instruments held as of June 30, 2016
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(12
|
)
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||
(amounts in millions)
|
|
Electricity
Derivatives
|
|
Natural Gas Derivatives
|
|
Coal Derivatives
|
|
Total
|
||||||||
Balance at December 31, 2015
|
|
$
|
(18
|
)
|
|
$
|
(32
|
)
|
|
$
|
2
|
|
|
$
|
(48
|
)
|
Total gains (losses) included in earnings
|
|
(5
|
)
|
|
3
|
|
|
—
|
|
|
(2
|
)
|
||||
Settlements (1)
|
|
(1
|
)
|
|
14
|
|
|
(1
|
)
|
|
12
|
|
||||
Balance at June 30, 2016
|
|
$
|
(24
|
)
|
|
$
|
(15
|
)
|
|
$
|
1
|
|
|
$
|
(38
|
)
|
Unrealized gains (losses) relating to instruments held as of June 30, 2016
|
|
$
|
(5
|
)
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
(1)
|
For purposes of these tables, we define settlements as the beginning of period fair value of contracts that settled during the period.
|
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
(amounts in millions)
|
|
Fair Value Hierarchy
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Dynegy Inc.:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tranche C-1 Term Loan, due 2024 (1)
|
|
Level 2
|
|
$
|
(2,129
|
)
|
|
$
|
(2,213
|
)
|
|
$
|
(1,994
|
)
|
|
$
|
(2,025
|
)
|
Tranche B-2 Term Loan, due 2020 (1)
|
|
Level 2
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(219
|
)
|
|
$
|
(225
|
)
|
Revolving Facility (1)
|
|
Level 2
|
|
$
|
(300
|
)
|
|
$
|
(300
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
6.75% Senior Notes, due 2019 (1)
|
|
Level 2
|
|
$
|
(2,085
|
)
|
|
$
|
(2,163
|
)
|
|
$
|
(2,083
|
)
|
|
$
|
(2,137
|
)
|
7.375% Senior Notes, due 2022 (1)
|
|
Level 2
|
|
$
|
(1,733
|
)
|
|
$
|
(1,735
|
)
|
|
$
|
(1,731
|
)
|
|
$
|
(1,665
|
)
|
5.875% Senior Notes, due 2023 (1)
|
|
Level 2
|
|
$
|
(493
|
)
|
|
$
|
(463
|
)
|
|
$
|
(492
|
)
|
|
$
|
(431
|
)
|
7.625% Senior Notes, due 2024 (1)
|
|
Level 2
|
|
$
|
(1,236
|
)
|
|
$
|
(1,213
|
)
|
|
$
|
(1,237
|
)
|
|
$
|
(1,156
|
)
|
8.034% Senior Notes, due 2024 (1)
|
|
Level 2
|
|
$
|
(184
|
)
|
|
$
|
(175
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
8.00% Senior Notes, due 2025 (1)
|
|
Level 2
|
|
$
|
(738
|
)
|
|
$
|
(729
|
)
|
|
$
|
(738
|
)
|
|
$
|
(703
|
)
|
7.00% Amortizing Notes, due 2019 (TEUs) (1)
|
|
Level 2
|
|
$
|
(58
|
)
|
|
$
|
(68
|
)
|
|
$
|
(78
|
)
|
|
$
|
(90
|
)
|
Forward capacity agreement (1)
|
|
Level 3
|
|
$
|
(210
|
)
|
|
$
|
(210
|
)
|
|
$
|
(205
|
)
|
|
$
|
(205
|
)
|
Inventory financing agreements
|
|
Level 3
|
|
$
|
(48
|
)
|
|
$
|
(48
|
)
|
|
$
|
(129
|
)
|
|
$
|
(127
|
)
|
Equipment financing agreements (1)
|
|
Level 3
|
|
$
|
(103
|
)
|
|
$
|
(103
|
)
|
|
$
|
(73
|
)
|
|
$
|
(73
|
)
|
Genco:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities subject to compromise (2)
|
|
Level 3
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(825
|
)
|
|
$
|
(366
|
)
|
(1)
|
Carrying amounts include unamortized discounts and debt issuance costs. Please read
Note 12—Debt
for further discussion.
|
(2)
|
Carrying amounts represent the Genco senior notes that were classified as liabilities subject to compromise as of December 31, 2016. The fair value of the senior notes was equal to the Genco Plan consideration and is a Level 3 valuation due to a lack of observable inputs that make up the consideration. Please read Note 22—Genco Chapter 11 Bankruptcy in our Form 10-K for further details.
|
|
|
Six Months Ended June 30,
|
||||||
(amounts in millions)
|
|
2017
|
|
2016
|
||||
Change in capital expenditures included in accounts payable
|
|
$
|
28
|
|
|
$
|
(3
|
)
|
Change in capital expenditures pursuant to an equipment financing agreement
|
|
$
|
27
|
|
|
$
|
4
|
|
Issuance of 2017 Warrants
|
|
$
|
17
|
|
|
$
|
—
|
|
Issuance of senior notes related to the Genco restructuring
|
|
$
|
185
|
|
|
$
|
—
|
|
Non-cash working capital adjustment to purchase price of the ENGIE acquisition
|
|
$
|
14
|
|
|
$
|
—
|
|
Sale of interest in Conesville facility
|
|
$
|
(57
|
)
|
|
$
|
—
|
|
Acquisition of interest in Zimmer facility
|
|
$
|
27
|
|
|
$
|
—
|
|
(amounts in millions)
|
|
June 30, 2017
|
|
June 30, 2016
|
||||
Cash and cash equivalents
|
|
$
|
447
|
|
|
$
|
1,142
|
|
Restricted cash included in current assets (1)
|
|
—
|
|
|
104
|
|
||
Restricted cash included in long-term assets (2)
|
|
—
|
|
|
2,000
|
|
||
Total cash, cash equivalents and restricted cash
|
|
$
|
447
|
|
|
$
|
3,246
|
|
(1)
|
Includes
$70 million
placed in escrow for the issuance of the Tranche C Term Loan (
$50 million
of pre-funded interest and
$20 million
of pre-funded original issue discount) and
$34 million
related to collateral.
|
(2)
|
Relates to amounts placed into escrow for the issuance of the Tranche C Term Loan.
|
(amounts in millions)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Materials and supplies
|
|
$
|
254
|
|
|
$
|
182
|
|
Coal
|
|
192
|
|
|
238
|
|
||
Fuel oil
|
|
13
|
|
|
17
|
|
||
Natural gas
|
|
15
|
|
|
—
|
|
||
Emissions allowances (1)
|
|
3
|
|
|
8
|
|
||
Total
|
|
$
|
477
|
|
|
$
|
445
|
|
(1)
|
At
June 30, 2017
and
December 31, 2016
, a portion of this inventory was held as collateral by one of our counterparties as part of an inventory financing agreement. Please read
Note 12—Debt
—
Emissions Repurchase Agreements for further discussion.
|
(amounts in millions)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Power generation
|
|
$
|
10,065
|
|
|
$
|
7,537
|
|
Buildings and improvements
|
|
1,137
|
|
|
944
|
|
||
Office and other equipment
|
|
117
|
|
|
98
|
|
||
Property, plant and equipment
|
|
11,319
|
|
|
8,579
|
|
||
Accumulated depreciation
|
|
(1,834
|
)
|
|
(1,458
|
)
|
||
Property, plant and equipment, net
|
|
$
|
9,485
|
|
|
$
|
7,121
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
Facility
|
|
Fair Value
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||
Baldwin (1)
|
|
$
|
97
|
|
|
$
|
—
|
|
|
$
|
645
|
|
|
$
|
—
|
|
|
$
|
645
|
|
Killen (2)
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
||||
Hennepin (1)
|
|
$
|
16
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||
Havana (1)
|
|
$
|
37
|
|
|
89
|
|
|
—
|
|
|
89
|
|
|
—
|
|
||||
Total
|
|
|
|
$
|
99
|
|
|
$
|
645
|
|
|
$
|
119
|
|
|
$
|
645
|
|
(1)
|
Units failed to recover their basic operating costs in the MISO capacity auctions.
|
(2)
|
In first quarter 2017, Dayton Power and Light Co., the partner and operator of Killen, announced the shutdown of the Killen generation facility by June 2018.
|
|
|
June 30, 2017
|
|||||||||||||||||
(dollars in millions)
|
|
Ownership Interest
|
|
Property, Plant and Equipment
|
|
Accumulated Depreciation
|
|
Construction Work in Progress
|
|
Total
|
|||||||||
Miami Fort
|
|
64.0
|
%
|
|
$
|
209
|
|
|
$
|
(50
|
)
|
|
$
|
4
|
|
|
$
|
163
|
|
Stuart (1)(2)
|
|
39.0
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Zimmer
|
|
71.9
|
%
|
|
$
|
125
|
|
|
$
|
(33
|
)
|
|
$
|
8
|
|
|
$
|
100
|
|
Killen (1)(2)
|
|
33.0
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
December 31, 2016
|
|||||||||||||||||
(dollars in millions)
|
|
Ownership Interest
|
|
Property, Plant and Equipment
|
|
Accumulated Depreciation
|
|
Construction Work in Progress
|
|
Total
|
|||||||||
Miami Fort
|
|
64.0
|
%
|
|
$
|
207
|
|
|
$
|
(39
|
)
|
|
$
|
4
|
|
|
$
|
172
|
|
Stuart (1)
|
|
39.0
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
4
|
|
Conesville (1)
|
|
40.0
|
%
|
|
$
|
61
|
|
|
$
|
(3
|
)
|
|
$
|
6
|
|
|
$
|
64
|
|
Zimmer
|
|
46.5
|
%
|
|
$
|
115
|
|
|
$
|
(25
|
)
|
|
$
|
6
|
|
|
$
|
96
|
|
Killen (1)
|
|
33.0
|
%
|
|
$
|
19
|
|
|
$
|
(2
|
)
|
|
$
|
3
|
|
|
$
|
20
|
|
(1)
|
Facilities not operated by Dynegy.
|
(2)
|
Stuart Unit 1 is scheduled to be retired in the third quarter of 2017, with remaining Stuart and Killen units scheduled to be retired by mid-2018.
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(amounts in millions)
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
Intangible Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Electricity contracts
|
|
$
|
281
|
|
|
$
|
(219
|
)
|
|
$
|
62
|
|
|
$
|
260
|
|
|
$
|
(206
|
)
|
|
$
|
54
|
|
Gas transport contracts
|
|
29
|
|
|
(10
|
)
|
|
19
|
|
|
13
|
|
|
(6
|
)
|
|
7
|
|
||||||
Total intangible assets
|
|
$
|
310
|
|
|
$
|
(229
|
)
|
|
$
|
81
|
|
|
$
|
273
|
|
|
$
|
(212
|
)
|
|
$
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Intangible Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Electricity contracts
|
|
$
|
(24
|
)
|
|
$
|
14
|
|
|
$
|
(10
|
)
|
|
$
|
(28
|
)
|
|
$
|
26
|
|
|
$
|
(2
|
)
|
Coal contracts
|
|
(35
|
)
|
|
33
|
|
|
(2
|
)
|
|
(49
|
)
|
|
42
|
|
|
(7
|
)
|
||||||
Coal transport contracts
|
|
(86
|
)
|
|
78
|
|
|
(8
|
)
|
|
(86
|
)
|
|
73
|
|
|
(13
|
)
|
||||||
Gas transport contracts
|
|
(60
|
)
|
|
15
|
|
|
(45
|
)
|
|
(41
|
)
|
|
8
|
|
|
(33
|
)
|
||||||
Gas storage contracts
|
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total intangible liabilities
|
|
$
|
(207
|
)
|
|
$
|
141
|
|
|
$
|
(66
|
)
|
|
$
|
(204
|
)
|
|
$
|
149
|
|
|
$
|
(55
|
)
|
Intangible assets and liabilities, net
|
|
$
|
103
|
|
|
$
|
(88
|
)
|
|
$
|
15
|
|
|
$
|
69
|
|
|
$
|
(63
|
)
|
|
$
|
6
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(amounts in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Electricity contracts, net (1)
|
|
$
|
9
|
|
|
$
|
17
|
|
|
$
|
24
|
|
|
$
|
33
|
|
Coal contracts, net (2)
|
|
(1
|
)
|
|
(11
|
)
|
|
(3
|
)
|
|
(23
|
)
|
||||
Coal transport contracts, net (2)
|
|
(2
|
)
|
|
(7
|
)
|
|
(5
|
)
|
|
(14
|
)
|
||||
Gas transport contracts, net (2)
|
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|
17
|
|
||||
Total
|
|
$
|
4
|
|
|
$
|
(1
|
)
|
|
$
|
15
|
|
|
$
|
13
|
|
(1)
|
The amortization of these contracts is recognized in Revenues or Cost of sales in our unaudited consolidated statements of operations.
|
(2)
|
The amortization of these contracts is recognized in Cost of sales in our unaudited consolidated statements of operations.
|
(amounts in millions/months)
|
|
Gross Carrying Amount
|
|
Weighted-Average Amortization Period
|
||
Intangible Assets:
|
|
|
|
|
||
Electricity contracts
|
|
$
|
34
|
|
|
39
|
Gas transport contracts
|
|
16
|
|
|
47
|
|
Total intangible assets
|
|
$
|
50
|
|
|
41
|
|
|
|
|
|
||
Intangible Liabilities:
|
|
|
|
|
||
Electricity contracts
|
|
$
|
(11
|
)
|
|
32
|
Gas contracts
|
|
—
|
|
|
1
|
|
Gas transport contracts
|
|
(17
|
)
|
|
35
|
|
Gas storage contracts
|
|
(2
|
)
|
|
13
|
|
Total intangible liabilities
|
|
$
|
(30
|
)
|
|
33
|
Total intangible assets and liabilities, net
|
|
$
|
20
|
|
|
|
(amounts in millions)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Secured Obligations:
|
|
|
|
|
||||
Tranche C-1 Term Loan, due 2024 (1)
|
|
$
|
2,218
|
|
|
$
|
2,000
|
|
Tranche B-2 Term Loan, due 2020
|
|
—
|
|
|
224
|
|
||
Revolving Facility
|
|
300
|
|
|
—
|
|
||
Forward Capacity Agreements
|
|
230
|
|
|
219
|
|
||
Inventory Financing Agreements
|
|
48
|
|
|
129
|
|
||
Subtotal secured obligations
|
|
2,796
|
|
|
2,572
|
|
||
Unsecured Obligations:
|
|
|
|
|
||||
7.00% Amortizing Notes, due 2019 (TEUs)
|
|
60
|
|
|
80
|
|
||
6.75% Senior Notes, due 2019
|
|
2,100
|
|
|
2,100
|
|
||
7.375% Senior Notes, due 2022
|
|
1,750
|
|
|
1,750
|
|
||
5.875% Senior Notes, due 2023
|
|
500
|
|
|
500
|
|
||
7.625% Senior Notes, due 2024
|
|
1,250
|
|
|
1,250
|
|
||
8.034% Senior Notes, due 2024 (2)
|
|
184
|
|
|
—
|
|
||
8.00% Senior Notes, due 2025
|
|
750
|
|
|
750
|
|
||
Equipment Financing Agreements
|
|
131
|
|
|
97
|
|
||
Subtotal unsecured obligations
|
|
6,725
|
|
|
6,527
|
|
||
Total debt obligations
|
|
9,521
|
|
|
9,099
|
|
||
Unamortized debt discounts and issuance costs
|
|
(204
|
)
|
|
(120
|
)
|
||
|
|
9,317
|
|
|
8,979
|
|
||
Less: Current maturities, including unamortized debt discounts and issuance costs, net
|
|
106
|
|
|
201
|
|
||
Total long-term debt
|
|
$
|
9,211
|
|
|
$
|
8,778
|
|
(1)
|
At December 31, 2016, the
$2.0 billion
Tranche C Term Loan was held by Dynegy Finance IV. Upon the close of the ENGIE Acquisition, this debt obligation became Dynegy Inc.’s secured obligation.
|
(2)
|
On the Genco Emergence Date, we issued
$182 million
of
8.034 percent
seven
-year unsecured senior notes due 2024 and on April 18, 2017, we issued an additional
$3 million
of such notes. See
Note 18—Genco Chapter 11 Bankruptcy and Emergence
for further discussion.
|
•
|
On January 10, 2017, we amended the Credit Agreement (Fourth Amendment) to increase the revolver capacity by
$45 million
and to extend the maturity date on
$450 million
in revolver capacity to 2021, which was effective upon the ENGIE Acquisition Closing Date.
|
•
|
On the ENGIE Acquisition Closing Date, we amended the Credit Agreement (Fifth Amendment) to (i) reduce the interest rate applicable to the Tranche C Term Loan by
75
basis points and (ii) extend the maturity to 2024 of the existing Tranche B-2 Term Loan through the exchange of the outstanding initial Tranche B-2 Term Loan for the
$2.224 billion
Tranche C-1 Term Loan.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(amounts in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Expected refund of AMT credits previously subject to a valuation allowance
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
Release of valuation allowance for OCI transactions that impacted deferred income taxes
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Valuation allowance release as a result of the 2017 ENGIE Acquisition and the 2016 EquiPower Acquisition
|
|
—
|
|
|
3
|
|
|
317
|
|
|
3
|
|
||||
Other state taxes
|
|
5
|
|
|
6
|
|
|
1
|
|
|
(10
|
)
|
||||
Income tax benefit (expense)
|
|
$
|
16
|
|
|
$
|
9
|
|
|
$
|
329
|
|
|
$
|
(7
|
)
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
|
|
Three Months Ended June 30,
|
||||||||||||||
(amounts in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Service cost benefits earned during period
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost on projected benefit obligation
|
|
5
|
|
|
5
|
|
|
1
|
|
|
1
|
|
||||
Expected return on plan assets
|
|
(7
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Amortization of prior service credit
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
||||
Net periodic benefit cost (gain)
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
|
|
Six Months Ended June 30,
|
||||||||||||||
(amounts in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Service cost benefits earned during period
|
|
$
|
9
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost on projected benefit obligation
|
|
10
|
|
|
10
|
|
|
1
|
|
|
2
|
|
||||
Expected return on plan assets
|
|
(13
|
)
|
|
(12
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Amortization of prior service credit
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
(2
|
)
|
||||
Net periodic benefit cost (gain)
|
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
(in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Shares outstanding at the beginning of the period (1)
|
|
154
|
|
|
117
|
|
|
140
|
|
|
117
|
|
Weighted-average shares outstanding during the period of:
|
|
|
|
|
|
|
|
|
||||
Shares issued under long-term compensation plans
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Shares issued under the PIPE Transaction
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
Prepaid stock purchase contract (TEUs) (1)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
1
|
|
Basic weighted-average shares outstanding
|
|
154
|
|
|
120
|
|
|
152
|
|
|
118
|
|
Dilution from potentially dilutive shares (2)
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
Diluted weighted-average shares outstanding (3)
|
|
154
|
|
|
120
|
|
|
171
|
|
|
118
|
|
(1)
|
The minimum settlement amount of the TEUs, or
23,092,460
shares, is considered to be outstanding since the issuance date of June 21, 2016, and is included in the computation of basic earnings (loss) per share for the
three and six months ended June 30, 2017 and 2016
. Please read Note 13—Tangible Equity Units in our Form 10-K for further discussion.
|
(2)
|
Shares included in the computation of diluted earnings per share for the six months ended June 30, 2017 consist of:
|
•
|
5,425,700
additional shares upon settlement of the TEUs - which reflects the difference between the minimum settlement amount included in basic weighted-average shares outstanding and the maximum settlement amount (
28,518,160
shares);
|
•
|
12,903,200
additional shares consisting of the maximum settlement amount of shares which can be converted from our outstanding mandatory convertible preferred stock; and
|
•
|
774,864
additional shares attributable to restricted stock units and performance stock units.
|
(3)
|
Entities with a net loss from continuing operations are prohibited from including potential common shares in the computation of diluted per share amounts. Accordingly, we have utilized the basic shares outstanding amount to calculate both basic and diluted loss per share for the three months ended June 30, 2017 and
three and six months ended June 30, 2016
.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
(in millions of shares)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Stock options
|
|
4.3
|
|
|
2.8
|
|
|
2.8
|
|
|
2.8
|
|
Restricted stock units
|
|
1.3
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
Performance stock units
|
|
1.6
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
Warrants
|
|
24.4
|
|
|
15.6
|
|
|
24.4
|
|
|
15.6
|
|
Series A 5.375% mandatory convertible preferred stock
|
|
12.9
|
|
|
12.9
|
|
|
—
|
|
|
12.9
|
|
Prepaid stock purchase contract (TEUs)
|
|
5.4
|
|
|
5.4
|
|
|
—
|
|
|
5.4
|
|
Total
|
|
49.9
|
|
|
39.2
|
|
|
27.2
|
|
|
39.2
|
|
|
|
Six Months Ended June 30,
|
||||||
(amounts in millions)
|
|
2017
|
|
2016
|
||||
Beginning of period
|
|
$
|
21
|
|
|
$
|
19
|
|
Other comprehensive income before reclassifications:
|
|
|
|
|
||||
Actuarial gain and plan amendments (net of tax of $4 and zero, respectively)
|
|
11
|
|
|
—
|
|
||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
|
||
Amortization of unrecognized prior service credit (net of tax of zero and zero, respectively) (1)
|
|
(4
|
)
|
|
(2
|
)
|
||
Net current period other comprehensive income (loss), net of tax
|
|
7
|
|
|
(2
|
)
|
||
End of period
|
|
$
|
28
|
|
|
$
|
17
|
|
(1)
|
Amounts are associated with our defined benefit pension and other post-employment benefit plans and are included in the computation of net periodic pension cost (gain). Please read
Note 15—Pension and Other Post-Employment Benefit Plans
for further discussion.
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Current Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
252
|
|
|
$
|
193
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
447
|
|
Accounts receivable, net
|
145
|
|
|
3,111
|
|
|
12
|
|
|
(2,827
|
)
|
|
441
|
|
|||||
Inventory
|
—
|
|
|
427
|
|
|
50
|
|
|
—
|
|
|
477
|
|
|||||
Other current assets
|
9
|
|
|
301
|
|
|
3
|
|
|
(88
|
)
|
|
225
|
|
|||||
Total Current Assets
|
406
|
|
|
4,032
|
|
|
67
|
|
|
(2,915
|
)
|
|
1,590
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
9,168
|
|
|
317
|
|
|
—
|
|
|
9,485
|
|
|||||
Investment in affiliates
|
16,393
|
|
|
—
|
|
|
4
|
|
|
(16,397
|
)
|
|
—
|
|
|||||
Investment in unconsolidated affiliates
|
—
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|||||
Goodwill
|
—
|
|
|
799
|
|
|
—
|
|
|
—
|
|
|
799
|
|
|||||
Assets held-for-sale
|
—
|
|
|
463
|
|
|
—
|
|
|
—
|
|
|
463
|
|
|||||
Other long-term assets
|
16
|
|
|
219
|
|
|
37
|
|
|
—
|
|
|
272
|
|
|||||
Intercompany note receivable
|
66
|
|
|
—
|
|
|
—
|
|
|
(66
|
)
|
|
—
|
|
|||||
Total Assets
|
$
|
16,881
|
|
|
$
|
14,831
|
|
|
$
|
425
|
|
|
$
|
(19,378
|
)
|
|
$
|
12,759
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
2,459
|
|
|
$
|
501
|
|
|
$
|
237
|
|
|
$
|
(2,827
|
)
|
|
$
|
370
|
|
Other current liabilities
|
191
|
|
|
329
|
|
|
101
|
|
|
(88
|
)
|
|
533
|
|
|||||
Total Current Liabilities
|
2,650
|
|
|
830
|
|
|
338
|
|
|
(2,915
|
)
|
|
903
|
|
|||||
Debt, long-term portion, net
|
8,926
|
|
|
253
|
|
|
32
|
|
|
—
|
|
|
9,211
|
|
|||||
Intercompany note payable
|
3,042
|
|
|
66
|
|
|
—
|
|
|
(3,108
|
)
|
|
—
|
|
|||||
Other long-term liabilities
|
140
|
|
|
337
|
|
|
49
|
|
|
—
|
|
|
526
|
|
|||||
Total Liabilities
|
14,758
|
|
|
1,486
|
|
|
419
|
|
|
(6,023
|
)
|
|
10,640
|
|
|||||
Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Dynegy Stockholders’ Equity
|
2,123
|
|
|
16,391
|
|
|
6
|
|
|
(16,397
|
)
|
|
2,123
|
|
|||||
Intercompany note receivable
|
—
|
|
|
(3,042
|
)
|
|
—
|
|
|
3,042
|
|
|
—
|
|
|||||
Total Dynegy Stockholders’ Equity
|
2,123
|
|
|
13,349
|
|
|
6
|
|
|
(13,355
|
)
|
|
2,123
|
|
|||||
Noncontrolling interest
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Total Equity
|
2,123
|
|
|
13,345
|
|
|
6
|
|
|
(13,355
|
)
|
|
2,119
|
|
|||||
Total Liabilities and Equity
|
$
|
16,881
|
|
|
$
|
14,831
|
|
|
$
|
425
|
|
|
$
|
(19,378
|
)
|
|
$
|
12,759
|
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Current Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
1,529
|
|
|
$
|
221
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
1,776
|
|
Restricted cash
|
21
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|||||
Accounts receivable, net
|
141
|
|
|
2,604
|
|
|
39
|
|
|
(2,398
|
)
|
|
386
|
|
|||||
Inventory
|
—
|
|
|
326
|
|
|
119
|
|
|
—
|
|
|
445
|
|
|||||
Other current assets
|
12
|
|
|
408
|
|
|
2
|
|
|
(104
|
)
|
|
318
|
|
|||||
Total Current Assets
|
1,703
|
|
|
3,600
|
|
|
186
|
|
|
(2,502
|
)
|
|
2,987
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
6,772
|
|
|
349
|
|
|
—
|
|
|
7,121
|
|
|||||
Investment in affiliates
|
12,175
|
|
|
—
|
|
|
—
|
|
|
(12,175
|
)
|
|
—
|
|
|||||
Restricted cash
|
2,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,000
|
|
|||||
Goodwill
|
—
|
|
|
799
|
|
|
—
|
|
|
—
|
|
|
799
|
|
|||||
Other long-term assets
|
2
|
|
|
109
|
|
|
35
|
|
|
—
|
|
|
146
|
|
|||||
Intercompany note receivable
|
—
|
|
|
8
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|||||
Total Assets
|
$
|
15,880
|
|
|
$
|
11,288
|
|
|
$
|
570
|
|
|
$
|
(14,685
|
)
|
|
$
|
13,053
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
1,990
|
|
|
$
|
443
|
|
|
$
|
297
|
|
|
$
|
(2,398
|
)
|
|
$
|
332
|
|
Other current liabilities
|
143
|
|
|
377
|
|
|
168
|
|
|
(104
|
)
|
|
584
|
|
|||||
Total Current Liabilities
|
2,133
|
|
|
820
|
|
|
465
|
|
|
(2,502
|
)
|
|
916
|
|
|||||
Liabilities subject to compromise
|
—
|
|
|
832
|
|
|
—
|
|
|
—
|
|
|
832
|
|
|||||
Debt, long-term portion, net
|
8,531
|
|
|
216
|
|
|
31
|
|
|
—
|
|
|
8,778
|
|
|||||
Intercompany note payable
|
3,042
|
|
|
—
|
|
|
—
|
|
|
(3,042
|
)
|
|
—
|
|
|||||
Other long-term liabilities
|
132
|
|
|
313
|
|
|
51
|
|
|
(8
|
)
|
|
488
|
|
|||||
Total Liabilities
|
13,838
|
|
|
2,181
|
|
|
547
|
|
|
(5,552
|
)
|
|
11,014
|
|
|||||
Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Dynegy Stockholders’ Equity
|
2,042
|
|
|
12,152
|
|
|
23
|
|
|
(12,175
|
)
|
|
2,042
|
|
|||||
Intercompany note receivable
|
—
|
|
|
(3,042
|
)
|
|
—
|
|
|
3,042
|
|
|
—
|
|
|||||
Total Dynegy Stockholders’ Equity
|
2,042
|
|
|
9,110
|
|
|
23
|
|
|
(9,133
|
)
|
|
2,042
|
|
|||||
Noncontrolling interest
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Total Equity
|
2,042
|
|
|
9,107
|
|
|
23
|
|
|
(9,133
|
)
|
|
2,039
|
|
|||||
Total Liabilities and Equity
|
$
|
15,880
|
|
|
$
|
11,288
|
|
|
$
|
570
|
|
|
$
|
(14,685
|
)
|
|
$
|
13,053
|
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
1,097
|
|
|
$
|
97
|
|
|
$
|
(30
|
)
|
|
$
|
1,164
|
|
Cost of sales, excluding depreciation expense
|
—
|
|
|
(653
|
)
|
|
(58
|
)
|
|
30
|
|
|
(681
|
)
|
|||||
Gross margin
|
—
|
|
|
444
|
|
|
39
|
|
|
—
|
|
|
483
|
|
|||||
Operating and maintenance expense
|
—
|
|
|
(250
|
)
|
|
(32
|
)
|
|
—
|
|
|
(282
|
)
|
|||||
Depreciation expense
|
—
|
|
|
(198
|
)
|
|
(11
|
)
|
|
—
|
|
|
(209
|
)
|
|||||
Impairments
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|||||
Gain (loss) on sale of assets, net
|
—
|
|
|
(30
|
)
|
|
1
|
|
|
—
|
|
|
(29
|
)
|
|||||
General and administrative expense
|
(2
|
)
|
|
(38
|
)
|
|
(2
|
)
|
|
—
|
|
|
(42
|
)
|
|||||
Acquisition and integration costs
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||||
Other
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|||||
Operating loss
|
(9
|
)
|
|
(170
|
)
|
|
(3
|
)
|
|
—
|
|
|
(182
|
)
|
|||||
Bankruptcy reorganization items
|
15
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Earnings from unconsolidated investments
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Equity in losses from investments in affiliates
|
(154
|
)
|
|
—
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|||||
Interest expense
|
(154
|
)
|
|
(6
|
)
|
|
(3
|
)
|
|
4
|
|
|
(159
|
)
|
|||||
Other income and expense, net
|
6
|
|
|
27
|
|
|
—
|
|
|
(4
|
)
|
|
29
|
|
|||||
Loss before income taxes
|
(296
|
)
|
|
(164
|
)
|
|
(6
|
)
|
|
154
|
|
|
(312
|
)
|
|||||
Income tax benefit
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Net loss attributable to Dynegy Inc.
|
$
|
(296
|
)
|
|
$
|
(148
|
)
|
|
$
|
(6
|
)
|
|
$
|
154
|
|
|
$
|
(296
|
)
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
2,236
|
|
|
$
|
258
|
|
|
$
|
(83
|
)
|
|
$
|
2,411
|
|
Cost of sales, excluding depreciation expense
|
—
|
|
|
(1,348
|
)
|
|
(173
|
)
|
|
83
|
|
|
(1,438
|
)
|
|||||
Gross margin
|
—
|
|
|
888
|
|
|
85
|
|
|
—
|
|
|
973
|
|
|||||
Operating and maintenance expense
|
—
|
|
|
(451
|
)
|
|
(63
|
)
|
|
—
|
|
|
(514
|
)
|
|||||
Depreciation expense
|
—
|
|
|
(374
|
)
|
|
(35
|
)
|
|
—
|
|
|
(409
|
)
|
|||||
Impairments
|
—
|
|
|
(119
|
)
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
|||||
Gain (loss) on sale of assets, net
|
—
|
|
|
(30
|
)
|
|
1
|
|
|
—
|
|
|
(29
|
)
|
|||||
General and administrative expense
|
(8
|
)
|
|
(71
|
)
|
|
(3
|
)
|
|
—
|
|
|
(82
|
)
|
|||||
Acquisition and integration costs
|
(51
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|||||
Other
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Operating loss
|
(59
|
)
|
|
(157
|
)
|
|
(15
|
)
|
|
—
|
|
|
(231
|
)
|
|||||
Bankruptcy reorganization items
|
—
|
|
|
482
|
|
|
—
|
|
|
—
|
|
|
482
|
|
|||||
Equity in earnings from investments in affiliates
|
652
|
|
|
—
|
|
|
—
|
|
|
(652
|
)
|
|
—
|
|
|||||
Interest expense
|
(315
|
)
|
|
(12
|
)
|
|
(6
|
)
|
|
7
|
|
|
(326
|
)
|
|||||
Other income and expense, net
|
23
|
|
|
30
|
|
|
—
|
|
|
(7
|
)
|
|
46
|
|
|||||
Income (loss) before income taxes
|
301
|
|
|
343
|
|
|
(21
|
)
|
|
(652
|
)
|
|
(29
|
)
|
|||||
Income tax benefit
|
—
|
|
|
329
|
|
|
—
|
|
|
—
|
|
|
329
|
|
|||||
Net income (loss)
|
301
|
|
|
672
|
|
|
(21
|
)
|
|
(652
|
)
|
|
300
|
|
|||||
Less: Net loss attributable to noncontrolling interest
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Net income (loss) attributable to Dynegy Inc.
|
$
|
301
|
|
|
$
|
673
|
|
|
$
|
(21
|
)
|
|
$
|
(652
|
)
|
|
$
|
301
|
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
855
|
|
|
$
|
88
|
|
|
$
|
(39
|
)
|
|
$
|
904
|
|
Cost of sales, excluding depreciation expense
|
—
|
|
|
(489
|
)
|
|
(43
|
)
|
|
39
|
|
|
(493
|
)
|
|||||
Gross margin
|
—
|
|
|
366
|
|
|
45
|
|
|
—
|
|
|
411
|
|
|||||
Operating and maintenance expense
|
—
|
|
|
(216
|
)
|
|
(40
|
)
|
|
—
|
|
|
(256
|
)
|
|||||
Depreciation expense
|
—
|
|
|
(140
|
)
|
|
(20
|
)
|
|
—
|
|
|
(160
|
)
|
|||||
Impairments
|
—
|
|
|
(645
|
)
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|||||
General and administrative expense
|
(1
|
)
|
|
(37
|
)
|
|
(1
|
)
|
|
—
|
|
|
(39
|
)
|
|||||
Acquisition and integration costs
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Other
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
|
—
|
|
|
(16
|
)
|
|||||
Operating loss
|
(1
|
)
|
|
(677
|
)
|
|
(24
|
)
|
|
—
|
|
|
(702
|
)
|
|||||
Earnings from unconsolidated investments
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Equity in losses from investments in affiliates
|
(675
|
)
|
|
—
|
|
|
—
|
|
|
675
|
|
|
—
|
|
|||||
Interest expense
|
(120
|
)
|
|
(20
|
)
|
|
(4
|
)
|
|
3
|
|
|
(141
|
)
|
|||||
Other income and expense, net
|
2
|
|
|
29
|
|
|
2
|
|
|
(3
|
)
|
|
30
|
|
|||||
Loss before income taxes
|
(794
|
)
|
|
(667
|
)
|
|
(26
|
)
|
|
675
|
|
|
(812
|
)
|
|||||
Income tax benefit (expense)
|
(7
|
)
|
|
16
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Net loss
|
(801
|
)
|
|
(651
|
)
|
|
(26
|
)
|
|
675
|
|
|
(803
|
)
|
|||||
Less: Net loss attributable to noncontrolling interest
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Net loss attributable to Dynegy Inc.
|
$
|
(801
|
)
|
|
$
|
(649
|
)
|
|
$
|
(26
|
)
|
|
$
|
675
|
|
|
$
|
(801
|
)
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
1,839
|
|
|
$
|
227
|
|
|
$
|
(39
|
)
|
|
$
|
2,027
|
|
Cost of sales, excluding depreciation expense
|
—
|
|
|
(961
|
)
|
|
(116
|
)
|
|
39
|
|
|
(1,038
|
)
|
|||||
Gross margin
|
—
|
|
|
878
|
|
|
111
|
|
|
—
|
|
|
989
|
|
|||||
Operating and maintenance expense
|
—
|
|
|
(406
|
)
|
|
(71
|
)
|
|
—
|
|
|
(477
|
)
|
|||||
Depreciation expense
|
—
|
|
|
(290
|
)
|
|
(41
|
)
|
|
—
|
|
|
(331
|
)
|
|||||
Impairments
|
—
|
|
|
(645
|
)
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|||||
General and administrative expense
|
(3
|
)
|
|
(70
|
)
|
|
(3
|
)
|
|
—
|
|
|
(76
|
)
|
|||||
Acquisition and integration costs
|
(3
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Other
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
|
—
|
|
|
(16
|
)
|
|||||
Operating loss
|
(6
|
)
|
|
(539
|
)
|
|
(12
|
)
|
|
—
|
|
|
(557
|
)
|
|||||
Earnings from unconsolidated investments
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Equity in losses from investments in affiliates
|
(557
|
)
|
|
—
|
|
|
—
|
|
|
557
|
|
|
—
|
|
|||||
Interest expense
|
(244
|
)
|
|
(38
|
)
|
|
(4
|
)
|
|
3
|
|
|
(283
|
)
|
|||||
Other income and expense, net
|
3
|
|
|
31
|
|
|
—
|
|
|
(3
|
)
|
|
31
|
|
|||||
Loss before income taxes
|
(804
|
)
|
|
(543
|
)
|
|
(16
|
)
|
|
557
|
|
|
(806
|
)
|
|||||
Income tax expense
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||||
Net loss
|
(811
|
)
|
|
(543
|
)
|
|
(16
|
)
|
|
557
|
|
|
(813
|
)
|
|||||
Less: Net loss attributable to noncontrolling interest
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Net loss attributable to Dynegy Inc.
|
$
|
(811
|
)
|
|
$
|
(541
|
)
|
|
$
|
(16
|
)
|
|
$
|
557
|
|
|
$
|
(811
|
)
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net loss
|
$
|
(296
|
)
|
|
$
|
(148
|
)
|
|
$
|
(6
|
)
|
|
$
|
154
|
|
|
$
|
(296
|
)
|
Other comprehensive income before reclassifications:
|
|
|
|
|
|
|
|
|
|
||||||||||
Actuarial gain and plan amendments, net of tax of $4
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of unrecognized prior service credit, net of tax of zero
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Other comprehensive loss from investment in affiliates
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Other comprehensive loss, net of tax
|
(6
|
)
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
(6
|
)
|
|||||
Comprehensive loss
|
(302
|
)
|
|
(148
|
)
|
|
(7
|
)
|
|
155
|
|
|
(302
|
)
|
|||||
Less: Comprehensive loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total comprehensive loss attributable to Dynegy Inc.
|
$
|
(302
|
)
|
|
$
|
(148
|
)
|
|
$
|
(7
|
)
|
|
$
|
155
|
|
|
$
|
(302
|
)
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss)
|
$
|
301
|
|
|
$
|
672
|
|
|
$
|
(21
|
)
|
|
$
|
(652
|
)
|
|
$
|
300
|
|
Other comprehensive income before reclassifications:
|
|
|
|
|
|
|
|
|
|
||||||||||
Actuarial gain and plan amendments, net of tax of $4
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of unrecognized prior service credit, net of tax of zero
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Other comprehensive loss from investment in affiliates
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Other comprehensive income (loss), net of tax
|
7
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
7
|
|
|||||
Comprehensive income (loss)
|
308
|
|
|
672
|
|
|
(22
|
)
|
|
(651
|
)
|
|
307
|
|
|||||
Less: Comprehensive loss attributable to noncontrolling interest
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Total comprehensive income (loss) attributable to Dynegy Inc.
|
$
|
308
|
|
|
$
|
673
|
|
|
$
|
(22
|
)
|
|
$
|
(651
|
)
|
|
$
|
308
|
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net loss
|
$
|
(801
|
)
|
|
$
|
(651
|
)
|
|
$
|
(26
|
)
|
|
$
|
675
|
|
|
$
|
(803
|
)
|
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of unrecognized prior service credit and actuarial gain, net of tax of zero
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Other comprehensive loss, net of tax
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Comprehensive loss
|
(802
|
)
|
|
(651
|
)
|
|
(26
|
)
|
|
675
|
|
|
(804
|
)
|
|||||
Less: Comprehensive loss attributable to noncontrolling interest
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Total comprehensive loss attributable to Dynegy Inc.
|
$
|
(802
|
)
|
|
$
|
(649
|
)
|
|
$
|
(26
|
)
|
|
$
|
675
|
|
|
$
|
(802
|
)
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net loss
|
$
|
(811
|
)
|
|
$
|
(543
|
)
|
|
$
|
(16
|
)
|
|
$
|
557
|
|
|
$
|
(813
|
)
|
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of unrecognized prior service credit and actuarial gain, net of tax of zero
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Other comprehensive loss, net of tax
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Comprehensive loss
|
(813
|
)
|
|
(543
|
)
|
|
(16
|
)
|
|
557
|
|
|
(815
|
)
|
|||||
Less: Comprehensive loss attributable to noncontrolling interest
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Total comprehensive loss attributable to Dynegy Inc.
|
$
|
(813
|
)
|
|
$
|
(541
|
)
|
|
$
|
(16
|
)
|
|
$
|
557
|
|
|
$
|
(813
|
)
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
(322
|
)
|
|
$
|
471
|
|
|
$
|
81
|
|
|
$
|
—
|
|
|
$
|
230
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(81
|
)
|
|
(5
|
)
|
|
—
|
|
|
(86
|
)
|
|||||
Acquisitions, net of cash acquired
|
(3,259
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(3,263
|
)
|
|||||
Distributions from unconsolidated investments
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Net intercompany transfers
|
414
|
|
|
—
|
|
|
—
|
|
|
(414
|
)
|
|
—
|
|
|||||
Other investing
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Net cash used in investing activities
|
(2,845
|
)
|
|
(83
|
)
|
|
(4
|
)
|
|
(414
|
)
|
|
(3,346
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from long-term borrowings, net of debt issuance costs
|
425
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
425
|
|
|||||
Repayments of borrowings
|
(250
|
)
|
|
(30
|
)
|
|
(51
|
)
|
|
—
|
|
|
(331
|
)
|
|||||
Proceeds from issuance of equity, net of issuance costs
|
150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|||||
Preferred stock dividends paid
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|||||
Interest rate swap settlement payments
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Acquisition of noncontrolling interest
|
(375
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(375
|
)
|
|||||
Payments related to bankruptcy settlement
|
(120
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(123
|
)
|
|||||
Net intercompany transfers
|
—
|
|
|
(364
|
)
|
|
(50
|
)
|
|
414
|
|
|
—
|
|
|||||
Intercompany borrowings, net of repayments
|
60
|
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other financing
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Net cash used in financing activities
|
(131
|
)
|
|
(457
|
)
|
|
(101
|
)
|
|
414
|
|
|
(275
|
)
|
|||||
Net decrease in cash, cash equivalents and restricted cash
|
(3,298
|
)
|
|
(69
|
)
|
|
(24
|
)
|
|
—
|
|
|
(3,391
|
)
|
|||||
Cash, cash equivalents, and restricted cash beginning of period
|
3,550
|
|
|
262
|
|
|
26
|
|
|
—
|
|
|
3,838
|
|
|||||
Cash, cash equivalents, and restricted cash end of period
|
$
|
252
|
|
|
$
|
193
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
447
|
|
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
(162
|
)
|
|
$
|
565
|
|
|
$
|
(28
|
)
|
|
$
|
—
|
|
|
$
|
375
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(240
|
)
|
|
(46
|
)
|
|
—
|
|
|
(286
|
)
|
|||||
Distributions from unconsolidated investments
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Net intercompany transfers
|
454
|
|
|
—
|
|
|
—
|
|
|
(454
|
)
|
|
—
|
|
|||||
Other investing
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Net cash provided by (used in) investing activities
|
454
|
|
|
(225
|
)
|
|
(46
|
)
|
|
(454
|
)
|
|
(271
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from long-term borrowings, net of debt issuance costs
|
2,080
|
|
|
198
|
|
|
—
|
|
|
—
|
|
|
2,278
|
|
|||||
Repayments of borrowings
|
(4
|
)
|
|
(15
|
)
|
|
(1
|
)
|
|
—
|
|
|
(20
|
)
|
|||||
Proceeds from issuance of equity, net of issuance costs
|
362
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
362
|
|
|||||
Preferred stock dividends paid
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|||||
Interest rate swap settlement payments
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Net intercompany transfers
|
—
|
|
|
(478
|
)
|
|
24
|
|
|
454
|
|
|
—
|
|
|||||
Other financing
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Net cash provided by (used in) financing activities
|
2,416
|
|
|
(295
|
)
|
|
23
|
|
|
454
|
|
|
2,598
|
|
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
2,708
|
|
|
45
|
|
|
(51
|
)
|
|
—
|
|
|
2,702
|
|
|||||
Cash, cash equivalents and restricted cash, beginning of period
|
327
|
|
|
133
|
|
|
84
|
|
|
—
|
|
|
544
|
|
|||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
3,035
|
|
|
$
|
178
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
3,246
|
|
•
|
On the Emergence Date,
$113 million
of cash,
$182 million
of new Dynegy
seven
year unsecured notes, and warrants (the “2017 Warrants”) to purchase up to
8.7 million
shares of common stock with a fair value of
$17 million
.
|
•
|
On April 18, 2017,
$3 million
of cash,
$3 million
of new Dynegy
seven
-year unsecured notes, and
0.1 million
2017 Warrants with a fair value of less than
$1 million
.
|
(amounts in millions)
|
|
|
||
Liabilities subject to compromise, which were terminated
|
|
$
|
832
|
|
Less:
|
|
|
||
Seven-year unsecured notes
|
|
185
|
|
|
Cash consideration
|
|
116
|
|
|
Accrual for future potential distributions
|
|
22
|
|
|
2017 Warrants, at fair value
|
|
17
|
|
|
Legal and consulting fees
|
|
10
|
|
|
Bankruptcy reorganization items
|
|
$
|
482
|
|
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other and
Eliminations
|
|
Total
|
||||||||||||||||
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unaffiliated revenues
|
|
$
|
548
|
|
|
$
|
239
|
|
|
$
|
95
|
|
|
$
|
86
|
|
|
$
|
181
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
1,164
|
|
Intercompany and affiliate revenues
|
|
(14
|
)
|
|
(2
|
)
|
|
1
|
|
|
2
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total revenues
|
|
$
|
534
|
|
|
$
|
237
|
|
|
$
|
96
|
|
|
$
|
88
|
|
|
$
|
194
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
1,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Depreciation expense
|
|
$
|
(97
|
)
|
|
$
|
(57
|
)
|
|
$
|
(21
|
)
|
|
$
|
(6
|
)
|
|
$
|
(12
|
)
|
|
$
|
(14
|
)
|
|
$
|
(2
|
)
|
|
$
|
(209
|
)
|
Impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
||||||||
Gain (loss) on sale of assets, net
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
||||||||
General and administrative expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
(42
|
)
|
||||||||
Acquisition and integration costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating income (loss)
|
|
$
|
6
|
|
|
$
|
(1
|
)
|
|
$
|
(30
|
)
|
|
$
|
(98
|
)
|
|
$
|
11
|
|
|
$
|
(19
|
)
|
|
$
|
(51
|
)
|
|
$
|
(182
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Bankruptcy reorganization items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||||
Earnings from unconsolidated investments
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
|
(159
|
)
|
||||||||
Other income and expense, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
4
|
|
|
29
|
|
||||||||
Loss before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(312
|
)
|
||||||||||||
Income tax benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||||||
Net loss attributable to Dynegy Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(296
|
)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total assets—domestic
|
|
$
|
5,705
|
|
|
$
|
3,637
|
|
|
$
|
1,620
|
|
|
$
|
247
|
|
|
$
|
602
|
|
|
$
|
478
|
|
|
$
|
470
|
|
|
$
|
12,759
|
|
Investment in unconsolidated affiliate
|
|
$
|
72
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
150
|
|
Capital expenditures
|
|
$
|
(52
|
)
|
|
$
|
(34
|
)
|
|
$
|
(8
|
)
|
|
$
|
(2
|
)
|
|
$
|
(3
|
)
|
|
$
|
(27
|
)
|
|
$
|
(2
|
)
|
|
$
|
(128
|
)
|
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other and
Eliminations
|
|
Total
|
||||||||||||||||
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unaffiliated revenues
|
|
$
|
1,178
|
|
|
$
|
548
|
|
|
$
|
112
|
|
|
$
|
178
|
|
|
$
|
356
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
2,411
|
|
Intercompany and affiliate revenues
|
|
(22
|
)
|
|
(1
|
)
|
|
—
|
|
|
10
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total revenues
|
|
$
|
1,156
|
|
|
$
|
547
|
|
|
$
|
112
|
|
|
$
|
188
|
|
|
$
|
369
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
2,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Depreciation expense
|
|
$
|
(189
|
)
|
|
$
|
(119
|
)
|
|
$
|
(34
|
)
|
|
$
|
(13
|
)
|
|
$
|
(24
|
)
|
|
$
|
(26
|
)
|
|
$
|
(4
|
)
|
|
$
|
(409
|
)
|
Impairments
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
||||||||
Gain (loss) on sale of assets, net
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
||||||||
General and administrative expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(82
|
)
|
|
(82
|
)
|
||||||||
Acquisition and integration costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
(52
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating income (loss)
|
|
$
|
92
|
|
|
$
|
(42
|
)
|
|
$
|
(58
|
)
|
|
$
|
(81
|
)
|
|
$
|
29
|
|
|
$
|
(33
|
)
|
|
$
|
(138
|
)
|
|
$
|
(231
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Bankruptcy reorganization items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
482
|
|
|
—
|
|
|
—
|
|
|
482
|
|
||||||||
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(326
|
)
|
|
(326
|
)
|
||||||||
Other income and expense, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
20
|
|
|
46
|
|
||||||||
Loss before income taxes
|
|
0
|
|
|
—
|
|
|
0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0
|
|
|
(29
|
)
|
||||||||
Income tax benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
329
|
|
|
329
|
|
||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
300
|
|
|||||||||||||||
Less: Net loss attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|||||||||||||||
Net income attributable to Dynegy Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
301
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total assets—domestic
|
|
$
|
5,705
|
|
|
$
|
3,637
|
|
|
$
|
1,620
|
|
|
$
|
247
|
|
|
$
|
602
|
|
|
$
|
478
|
|
|
$
|
470
|
|
|
$
|
12,759
|
|
Investment in unconsolidated affiliate
|
|
$
|
72
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
150
|
|
Capital expenditures
|
|
$
|
(68
|
)
|
|
$
|
(40
|
)
|
|
$
|
(17
|
)
|
|
$
|
(3
|
)
|
|
$
|
(6
|
)
|
|
$
|
(31
|
)
|
|
$
|
(3
|
)
|
|
$
|
(168
|
)
|
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other and
Eliminations
|
|
Total
|
||||||||||||||
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Unaffiliated revenues
|
|
$
|
451
|
|
|
$
|
180
|
|
|
$
|
60
|
|
|
$
|
166
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
893
|
|
Intercompany revenues
|
|
23
|
|
|
4
|
|
|
(15
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||||
Total revenues
|
|
$
|
474
|
|
|
$
|
184
|
|
|
$
|
45
|
|
|
$
|
165
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Depreciation expense
|
|
$
|
(84
|
)
|
|
$
|
(57
|
)
|
|
$
|
(8
|
)
|
|
$
|
(5
|
)
|
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
|
$
|
(160
|
)
|
Impairments
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|||||||
General and administrative expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(39
|
)
|
|||||||
Acquisition and integration costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
(5
|
)
|
|
3
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating income (loss)
|
|
$
|
71
|
|
|
$
|
(5
|
)
|
|
$
|
(729
|
)
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
(46
|
)
|
|
$
|
(702
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings from unconsolidated investments
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(141
|
)
|
|
(141
|
)
|
|||||||
Other income and expense, net
|
|
6
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
12
|
|
|
(2
|
)
|
|
30
|
|
|||||||
Loss before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(812
|
)
|
|||||||||||
Income tax benefit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|||||||
Net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(803
|
)
|
|||||||||||||
Less: Net loss attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|||||||||||||
Net loss attributable to Dynegy Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(801
|
)
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets—domestic
|
|
$
|
5,327
|
|
|
$
|
2,863
|
|
|
$
|
393
|
|
|
$
|
902
|
|
|
$
|
516
|
|
|
$
|
3,161
|
|
|
$
|
13,162
|
|
Investment in unconsolidated affiliate
|
|
$
|
185
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
185
|
|
Capital expenditures
|
|
$
|
(94
|
)
|
|
$
|
(45
|
)
|
|
$
|
(4
|
)
|
|
$
|
(11
|
)
|
|
$
|
(2
|
)
|
|
$
|
(3
|
)
|
|
$
|
(159
|
)
|
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other and
Eliminations
|
|
Total
|
||||||||||||||
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Unaffiliated revenues
|
|
$
|
1,008
|
|
|
$
|
430
|
|
|
$
|
185
|
|
|
$
|
334
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
2,016
|
|
Intercompany revenues
|
|
28
|
|
|
3
|
|
|
(18
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||||
Total revenues
|
|
$
|
1,036
|
|
|
$
|
433
|
|
|
$
|
167
|
|
|
$
|
332
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
2,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Depreciation expense
|
|
$
|
(169
|
)
|
|
$
|
(114
|
)
|
|
$
|
(16
|
)
|
|
$
|
(14
|
)
|
|
$
|
(15
|
)
|
|
$
|
(3
|
)
|
|
$
|
(331
|
)
|
Impairments
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|||||||
General and administrative expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
(76
|
)
|
|||||||
Acquisition and integration costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
(9
|
)
|
|
(1
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating income (loss)
|
|
$
|
248
|
|
|
$
|
(7
|
)
|
|
$
|
(716
|
)
|
|
$
|
17
|
|
|
$
|
(10
|
)
|
|
$
|
(89
|
)
|
|
$
|
(557
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings from unconsolidated investments
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||||
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(283
|
)
|
|
(283
|
)
|
|||||||
Other income and expense, net
|
|
6
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
12
|
|
|
(1
|
)
|
|
31
|
|
|||||||
Loss before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(806
|
)
|
|||||||||||||
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|||||||
Net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(813
|
)
|
|||||||||||||
Less: Net loss attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|||||||||||||
Net loss attributable to Dynegy Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(811
|
)
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets—domestic
|
|
$
|
5,327
|
|
|
$
|
2,863
|
|
|
$
|
393
|
|
|
$
|
902
|
|
|
$
|
516
|
|
|
$
|
3,161
|
|
|
$
|
13,162
|
|
Investment in unconsolidated affiliate
|
|
$
|
185
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
185
|
|
Capital expenditures
|
|
$
|
(111
|
)
|
|
$
|
(74
|
)
|
|
$
|
(8
|
)
|
|
$
|
(21
|
)
|
|
$
|
(3
|
)
|
|
$
|
(8
|
)
|
|
$
|
(225
|
)
|
Revolving facilities and LC capacity (1)
|
|
$
|
1,650
|
|
Less:
|
|
|
||
Outstanding revolver draws
|
|
(300
|
)
|
|
Outstanding LCs
|
|
(413
|
)
|
|
Revolving facilities and LC availability
|
|
937
|
|
|
Cash and cash equivalents
|
|
447
|
|
|
Total available liquidity
|
|
$
|
1,384
|
|
(1)
|
Includes $1.545 billion in senior secured revolving credit facilities and
$105 million
related to LCs. Please read
Note 12—Debt
for further discussion.
|
•
|
April 2017 - We exchanged
$15 million
of the Genco senior notes for
$3 million
cash,
$3 million
in Dynegy senior notes, and
0.1 million
2017 Warrants.
|
•
|
May 2017 - AEP returned previously issued LCs totaling
$58 million
to Dynegy in connection with the exchange of our interest in the Conesville facility for AEP’s interest in the Zimmer facility.
|
•
|
May 2017 - Brayton Point inventory financing agreement terminated and the remaining obligation was paid.
|
•
|
Reduced collateral outstanding by approximately $85 million since March 31, 2017.
|
•
|
July 2017 - We received approximately $479 million in proceeds from the Troy and Armstrong Sale.
|
•
|
July 2017 - Refinanced previously monetized capacity under our Forward Capacity Sales Agreement by 24 months.
|
•
|
July 2017 - Extended a
$55 million
LC for an additional year.
|
•
|
August 2017 - We exchanged
$25 million
of the Genco senior notes for
$6 million
cash,
$4 million
in Dynegy senior notes, and
0.2 million
2017 Warrants. This was the final payment related to the Genco restructuring.
|
|
|
Six Months Ended June 30,
|
|
|
||||||||
(amounts in millions)
|
|
2017
|
|
2016
|
|
Change
|
||||||
Net cash provided by operating activities
|
|
$
|
230
|
|
|
$
|
375
|
|
|
$
|
(145
|
)
|
Net cash used in investing activities
|
|
$
|
(3,346
|
)
|
|
$
|
(271
|
)
|
|
$
|
(3,075
|
)
|
Net cash provided by (used in) financing activities
|
|
$
|
(275
|
)
|
|
$
|
2,598
|
|
|
$
|
(2,873
|
)
|
|
|
(in millions)
|
||
Increase in cash provided by operation of our power generation facilities and retail operations
|
|
$
|
61
|
|
Increase in interest payments on our various debt agreements
|
|
(13
|
)
|
|
Increase in payments for acquisition-related costs
|
|
(44
|
)
|
|
Decrease in cash provided by changes in working capital and other
|
|
(149
|
)
|
|
|
|
$
|
(145
|
)
|
(amounts in millions)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Cash (1)
|
|
$
|
81
|
|
|
$
|
124
|
|
LCs
|
|
413
|
|
|
382
|
|
||
Total
|
|
$
|
494
|
|
|
$
|
506
|
|
(1)
|
Includes broker margin as well as other collateral postings included in Prepayments and other current assets in our unaudited consolidated balance sheets. At
June 30, 2017
and
December 31, 2016
,
$46 million
and
$54 million
, respectively, of cash posted as collateral were netted against Liabilities from risk management activities in our unaudited consolidated balance sheets.
|
|
|
Six Months Ended June 30,
|
|
|
Estimated Remaining
|
||||||||
(amounts in millions)
|
|
2017
|
|
2016
|
|
|
2017
|
||||||
PJM
|
|
$
|
68
|
|
|
$
|
111
|
|
|
|
$
|
39
|
|
NY/NE
|
|
40
|
|
|
74
|
|
|
|
19
|
|
|||
ERCOT
|
|
17
|
|
|
—
|
|
|
|
6
|
|
|||
MISO
|
|
3
|
|
|
8
|
|
|
|
3
|
|
|||
IPH
|
|
6
|
|
|
21
|
|
|
|
21
|
|
|||
CAISO
|
|
31
|
|
|
3
|
|
|
|
4
|
|
|||
Other
|
|
3
|
|
|
8
|
|
|
|
6
|
|
|||
Total Capital Expenditures Incurred (1)
|
|
$
|
168
|
|
|
$
|
225
|
|
|
|
$
|
98
|
|
Non-cash investing activities (2)
|
|
(55
|
)
|
|
(1
|
)
|
|
|
N/A
|
|
|||
Capital work performed under prepaid long-term service agreement
|
|
(31
|
)
|
|
—
|
|
|
|
N/A
|
|
|||
Prepaid cash for long-term service agreements (3)
|
|
4
|
|
|
62
|
|
|
|
N/A
|
|
|||
Capital Expenditures - Statement of Cash Flows
|
|
$
|
86
|
|
|
$
|
286
|
|
|
|
N/A
|
|
(1)
|
Includes capitalized interest of
$1 million
and
$7 million
for the
six months ended June 30, 2017 and 2016
, respectively.
|
(2)
|
Please read
Note 7—Cash Flow Information
for further details.
|
(3)
|
Prepaid cash reclassified into Investing Activities on the consolidated statements of cash flows.
|
•
|
Principal payments on our debt instruments and other financial obligations;
|
•
|
Periodic payments to settle our interest rate swap agreements; and
|
•
|
Dividend payments on our mandatory convertible preferred stock.
|
|
|
Moody’s
|
|
S&P
|
Dynegy Inc.:
|
|
|
|
|
Corporate Family Rating
|
|
B2
|
|
B+
|
Senior Secured
|
|
Ba3
|
|
BB
|
Senior Unsecured
|
|
B3
|
|
B+
|
|
|
Three Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(amounts in millions)
|
|
2017
|
|
2016
|
|
|||||||
Revenues
|
|
|
|
|
|
|
||||||
Energy
|
|
$
|
917
|
|
|
$
|
723
|
|
|
$
|
194
|
|
Capacity
|
|
241
|
|
|
196
|
|
|
45
|
|
|||
Mark-to-market loss, net
|
|
(26
|
)
|
|
(21
|
)
|
|
(5
|
)
|
|||
Contract amortization
|
|
(9
|
)
|
|
(18
|
)
|
|
9
|
|
|||
Other
|
|
41
|
|
|
24
|
|
|
17
|
|
|||
Total revenues
|
|
1,164
|
|
|
904
|
|
|
260
|
|
|||
Cost of sales, excluding depreciation expense
|
|
(681
|
)
|
|
(493
|
)
|
|
(188
|
)
|
|||
Gross margin
|
|
483
|
|
|
411
|
|
|
72
|
|
|||
Operating and maintenance expense
|
|
(282
|
)
|
|
(256
|
)
|
|
(26
|
)
|
|||
Depreciation expense
|
|
(209
|
)
|
|
(160
|
)
|
|
(49
|
)
|
|||
Impairments
|
|
(99
|
)
|
|
(645
|
)
|
|
546
|
|
|||
Loss on sale of assets, net
|
|
(29
|
)
|
|
—
|
|
|
(29
|
)
|
|||
General and administrative expense
|
|
(42
|
)
|
|
(39
|
)
|
|
(3
|
)
|
|||
Acquisition and integration costs
|
|
(7
|
)
|
|
3
|
|
|
(10
|
)
|
|||
Other
|
|
3
|
|
|
(16
|
)
|
|
19
|
|
|||
Operating loss
|
|
(182
|
)
|
|
(702
|
)
|
|
520
|
|
|||
Bankruptcy reorganization items
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Earnings from unconsolidated investment
|
|
1
|
|
|
1
|
|
|
—
|
|
|||
Interest expense
|
|
(159
|
)
|
|
(141
|
)
|
|
(18
|
)
|
|||
Other income and expense, net
|
|
29
|
|
|
30
|
|
|
(1
|
)
|
|||
Loss before income taxes
|
|
(312
|
)
|
|
(812
|
)
|
|
500
|
|
|||
Income tax benefit
|
|
16
|
|
|
9
|
|
|
7
|
|
|||
Net loss
|
|
(296
|
)
|
|
(803
|
)
|
|
507
|
|
|||
Less: Net loss attributable to noncontrolling interest
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|||
Net loss attributable to Dynegy Inc.
|
|
$
|
(296
|
)
|
|
$
|
(801
|
)
|
|
$
|
505
|
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||||||||||||
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other
|
|
Total
|
||||||||||||||||
Revenues
|
|
$
|
534
|
|
|
$
|
237
|
|
|
$
|
96
|
|
|
$
|
88
|
|
|
$
|
194
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
1,164
|
|
Cost of sales, excluding depreciation expense
|
|
(282
|
)
|
|
(134
|
)
|
|
(76
|
)
|
|
(55
|
)
|
|
(126
|
)
|
|
(8
|
)
|
|
—
|
|
|
(681
|
)
|
||||||||
Gross margin
|
|
252
|
|
|
103
|
|
|
20
|
|
|
33
|
|
|
68
|
|
|
7
|
|
|
—
|
|
|
483
|
|
||||||||
Operating and maintenance expense
|
|
(119
|
)
|
|
(49
|
)
|
|
(29
|
)
|
|
(26
|
)
|
|
(46
|
)
|
|
(12
|
)
|
|
(1
|
)
|
|
(282
|
)
|
||||||||
Depreciation expense
|
|
(97
|
)
|
|
(57
|
)
|
|
(21
|
)
|
|
(6
|
)
|
|
(12
|
)
|
|
(14
|
)
|
|
(2
|
)
|
|
(209
|
)
|
||||||||
Impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
||||||||
Gain (loss) on sale of assets, net
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
||||||||
General and administrative expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
(42
|
)
|
||||||||
Acquisition and integration costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||||
Other
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
||||||||
Operating income (loss)
|
|
$
|
6
|
|
|
$
|
(1
|
)
|
|
$
|
(30
|
)
|
|
$
|
(98
|
)
|
|
$
|
11
|
|
|
$
|
(19
|
)
|
|
$
|
(51
|
)
|
|
$
|
(182
|
)
|
|
|
Three Months Ended June 30, 2016
|
||||||||||||||||||||||||||
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other
|
|
Total
|
||||||||||||||
Revenues
|
|
$
|
474
|
|
|
$
|
184
|
|
|
$
|
45
|
|
|
$
|
165
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
904
|
|
Cost of sales, excluding depreciation expense
|
|
(203
|
)
|
|
(85
|
)
|
|
(85
|
)
|
|
(101
|
)
|
|
(19
|
)
|
|
—
|
|
|
(493
|
)
|
|||||||
Gross margin
|
|
271
|
|
|
99
|
|
|
(40
|
)
|
|
64
|
|
|
17
|
|
|
—
|
|
|
411
|
|
|||||||
Operating and maintenance expense
|
|
(116
|
)
|
|
(47
|
)
|
|
(36
|
)
|
|
(48
|
)
|
|
(9
|
)
|
|
—
|
|
|
(256
|
)
|
|||||||
Depreciation expense
|
|
(84
|
)
|
|
(57
|
)
|
|
(8
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
(160
|
)
|
|||||||
Impairments
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|||||||
General and administrative expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(39
|
)
|
|||||||
Acquisition and integration costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
(5
|
)
|
|
3
|
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||||
Operating income (loss)
|
|
$
|
71
|
|
|
$
|
(5
|
)
|
|
$
|
(729
|
)
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
(46
|
)
|
|
$
|
(702
|
)
|
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Total
|
||||||||||||||
Revenues, net of hedges, attributable to newly acquired ENGIE plants
|
|
$
|
81
|
|
|
$
|
69
|
|
|
$
|
96
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
246
|
|
Higher (lower) realized power prices
|
|
17
|
|
|
25
|
|
|
—
|
|
|
(6
|
)
|
|
(9
|
)
|
|
8
|
|
|
35
|
|
|||||||
Higher (lower) generation volumes (1)
|
|
(18
|
)
|
|
(23
|
)
|
|
—
|
|
|
(22
|
)
|
|
25
|
|
|
(15
|
)
|
|
(53
|
)
|
|||||||
Higher (lower) capacity revenues
|
|
(3
|
)
|
|
2
|
|
|
—
|
|
|
2
|
|
|
13
|
|
|
(7
|
)
|
|
7
|
|
|||||||
Change in MTM value of derivative transactions
|
|
(45
|
)
|
|
(27
|
)
|
|
—
|
|
|
69
|
|
|
—
|
|
|
(5
|
)
|
|
(8
|
)
|
|||||||
Lower contract amortization
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
8
|
|
|||||||
Other (2)
|
|
24
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(4
|
)
|
|
25
|
|
|||||||
Total change in revenues
|
|
$
|
60
|
|
|
$
|
53
|
|
|
$
|
96
|
|
|
$
|
43
|
|
|
$
|
29
|
|
|
$
|
(21
|
)
|
|
$
|
260
|
|
(1)
|
Decrease primarily due to higher outages and higher gas prices at our PJM and NY/NE segments, and unit shutdowns primarily at our MISO and IPH segments; offsetting increase primarily due to higher market prices at our IPH segment.
|
(2)
|
Other primarily consists of ancillary, tolling, transmission and gas revenues.
|
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Total
|
||||||||||||||
Cost of sales attributable to newly acquired ENGIE plants
|
|
$
|
30
|
|
|
$
|
35
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
141
|
|
Higher (lower) prices
|
|
52
|
|
|
37
|
|
|
—
|
|
|
4
|
|
|
(6
|
)
|
|
2
|
|
|
89
|
|
|||||||
Higher (lower) burn volumes (1)
|
|
(19
|
)
|
|
(25
|
)
|
|
—
|
|
|
(20
|
)
|
|
26
|
|
|
(12
|
)
|
|
(50
|
)
|
|||||||
Lower (higher) contract amortization
|
|
11
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
17
|
|
|||||||
Other (2)
|
|
5
|
|
|
3
|
|
|
—
|
|
|
(14
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|||||||
Total change in cost of sales
|
|
$
|
79
|
|
|
$
|
49
|
|
|
$
|
76
|
|
|
$
|
(30
|
)
|
|
$
|
25
|
|
|
$
|
(11
|
)
|
|
$
|
188
|
|
(1)
|
Lower burn volumes primarily due to higher outages and higher gas prices at our PJM and NY/NE segments, and unit shutdowns at our MISO and IPH segments; offsetting increase primarily due to higher market prices at our IPH segment.
|
(2)
|
Other primarily consists of transmission expenses.
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||||||||||||
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other
|
|
Total
|
||||||||||||||||
Net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(296
|
)
|
||||||||||||||
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(16
|
)
|
|||||||||||||||
Other income and expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(29
|
)
|
|||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
159
|
|
|||||||||||||||
Earnings from unconsolidated investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|||||||||||||||
Bankruptcy reorganization items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|||||||||||||||
Operating income (loss)
|
|
$
|
6
|
|
|
$
|
(1
|
)
|
|
$
|
(30
|
)
|
|
$
|
(98
|
)
|
|
$
|
11
|
|
|
$
|
(19
|
)
|
|
$
|
(51
|
)
|
|
$
|
(182
|
)
|
Depreciation and amortization expense
|
|
98
|
|
|
59
|
|
|
22
|
|
|
7
|
|
|
13
|
|
|
14
|
|
|
2
|
|
|
215
|
|
||||||||
Bankruptcy reorganization items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||||
Earnings from unconsolidated investments
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Other income and expense, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
4
|
|
|
29
|
|
||||||||
EBITDA
|
|
105
|
|
|
58
|
|
|
(8
|
)
|
|
(91
|
)
|
|
48
|
|
|
(5
|
)
|
|
(45
|
)
|
|
62
|
|
||||||||
Adjustments to reflect Adjusted EBITDA from unconsolidated investments and exclude noncontrolling interest
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||||
Acquisition, integration and restructuring costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
||||||||
Bankruptcy reorganization items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Mark-to-market adjustments, including warrants
|
|
31
|
|
|
2
|
|
|
8
|
|
|
(4
|
)
|
|
—
|
|
|
4
|
|
|
(3
|
)
|
|
38
|
|
||||||||
Impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
||||||||
Loss (gain) on sale of assets, net
|
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
29
|
|
||||||||
Non-cash compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
||||||||
Other
|
|
3
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
2
|
|
||||||||
Adjusted EBITDA
|
|
$
|
168
|
|
|
$
|
60
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
47
|
|
|
$
|
(1
|
)
|
|
$
|
(38
|
)
|
|
$
|
240
|
|
|
|
Three Months Ended June 30, 2016
|
||||||||||||||||||||||||||
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other
|
|
Total
|
||||||||||||||
Net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(803
|
)
|
||||||||||||
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9
|
)
|
|||||||||||||
Other income and expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(30
|
)
|
|||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
141
|
|
|||||||||||||
Earnings from unconsolidated investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|||||||||||||
Operating income (loss)
|
|
$
|
71
|
|
|
$
|
(5
|
)
|
|
$
|
(729
|
)
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
(46
|
)
|
|
$
|
(702
|
)
|
Depreciation and amortization expense
|
|
84
|
|
|
60
|
|
|
9
|
|
|
3
|
|
|
6
|
|
|
2
|
|
|
164
|
|
|||||||
Earnings from unconsolidated investments
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Other income and expense, net
|
|
6
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
12
|
|
|
(2
|
)
|
|
30
|
|
|||||||
EBITDA
|
|
162
|
|
|
55
|
|
|
(720
|
)
|
|
20
|
|
|
22
|
|
|
(46
|
)
|
|
(507
|
)
|
|||||||
Adjustments to reflect Adjusted EBITDA from unconsolidated investments and exclude noncontrolling interest
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||||
Acquisition, integration and restructuring costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
5
|
|
|
(3
|
)
|
|||||||
Mark-to-market adjustments, including warrants
|
|
(12
|
)
|
|
(21
|
)
|
|
65
|
|
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|
29
|
|
|||||||
Impairments
|
|
—
|
|
|
—
|
|
|
645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
645
|
|
|||||||
Non-cash compensation expense
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
5
|
|
|||||||
Other (1)
|
|
—
|
|
|
—
|
|
|
14
|
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
15
|
|
|||||||
Adjusted EBITDA
|
|
$
|
152
|
|
|
$
|
34
|
|
|
$
|
4
|
|
|
$
|
11
|
|
|
$
|
21
|
|
|
$
|
(35
|
)
|
|
$
|
187
|
|
(1)
|
Other includes an adjustment to exclude Wood River’s energy margin and O&M costs of
$15 million
for the
three months ended June 30, 2016
. Adjusted EBITDA did not include this adjustment for the
three months ended June 30, 2017
.
|
|
|
Three Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017 (1)
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
|
|
||||
Energy
|
|
$
|
401
|
|
|
$
|
352
|
|
|
$
|
49
|
|
Capacity
|
|
127
|
|
|
105
|
|
|
22
|
|
|||
Mark-to-market income (loss), net
|
|
(16
|
)
|
|
22
|
|
|
(38
|
)
|
|||
Contract amortization
|
|
(4
|
)
|
|
(11
|
)
|
|
7
|
|
|||
Other
|
|
26
|
|
|
6
|
|
|
20
|
|
|||
Total operating revenues
|
|
534
|
|
|
474
|
|
|
60
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(285
|
)
|
|
(215
|
)
|
|
(70
|
)
|
|||
Contract amortization
|
|
3
|
|
|
12
|
|
|
(9
|
)
|
|||
Total operating costs
|
|
(282
|
)
|
|
(203
|
)
|
|
(79
|
)
|
|||
Gross margin
|
|
252
|
|
|
271
|
|
|
(19
|
)
|
|||
Operating and maintenance expense
|
|
(119
|
)
|
|
(116
|
)
|
|
(3
|
)
|
|||
Depreciation expense
|
|
(97
|
)
|
|
(84
|
)
|
|
(13
|
)
|
|||
Loss on sale of assets, net
|
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
|||
Operating income
|
|
6
|
|
|
71
|
|
|
(65
|
)
|
|||
Depreciation and amortization expense
|
|
98
|
|
|
84
|
|
|
14
|
|
|||
Earnings from unconsolidated investments
|
|
1
|
|
|
1
|
|
|
—
|
|
|||
Other income and expense, net
|
|
—
|
|
|
6
|
|
|
(6
|
)
|
|||
EBITDA
|
|
105
|
|
|
162
|
|
|
(57
|
)
|
|||
Adjustments to reflect Adjusted EBITDA from unconsolidated investments
|
|
(1
|
)
|
|
1
|
|
|
(2
|
)
|
|||
Mark-to-market adjustments
|
|
31
|
|
|
(12
|
)
|
|
43
|
|
|||
Loss on sale of assets
|
|
30
|
|
|
—
|
|
|
30
|
|
|||
Non-cash compensation expense
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Other
|
|
3
|
|
|
—
|
|
|
3
|
|
|||
Adjusted EBITDA
|
|
$
|
168
|
|
|
$
|
152
|
|
|
$
|
16
|
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
10.9
|
|
|
11.2
|
|
|
(0.3
|
)
|
|||
IMA (2):
|
|
|
|
|
|
|
||||||
Combined-Cycle Facilities
|
|
87
|
%
|
|
98
|
%
|
|
|
||||
Coal-Fired Facilities
|
|
70
|
%
|
|
79
|
%
|
|
|
||||
Average Capacity Factor (3):
|
|
|
|
|
|
|
||||||
Combined-Cycle Facilities
|
|
51
|
%
|
|
62
|
%
|
|
|
||||
Coal-Fired Facilities
|
|
50
|
%
|
|
46
|
%
|
|
|
||||
CDDs (4)
|
|
349
|
|
|
331
|
|
|
18
|
|
|||
HDDs (4)
|
|
411
|
|
|
589
|
|
|
(178
|
)
|
|||
Average Market On-Peak Spark Spreads ($/MWh) (5):
|
|
|
|
|
|
|
||||||
PJM West
|
|
$
|
15.76
|
|
|
$
|
21.15
|
|
|
$
|
(5.39
|
)
|
AD Hub
|
|
$
|
16.56
|
|
|
$
|
27.53
|
|
|
$
|
(10.97
|
)
|
Average Market On-Peak Power Prices ($/MWh) (6):
|
|
|
|
|
|
|
||||||
PJM West
|
|
$
|
33.24
|
|
|
$
|
32.07
|
|
|
$
|
1.17
|
|
AD Hub
|
|
$
|
33.59
|
|
|
$
|
30.43
|
|
|
$
|
3.16
|
|
Average natural gas price—TetcoM3 ($/MMBtu) (7)
|
|
$
|
2.50
|
|
|
$
|
1.55
|
|
|
$
|
0.95
|
|
(1)
|
Includes the activity of the assets acquired in the ENGIE Acquisition.
|
(2)
|
IMA is an internal measurement calculation that reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes CTs.
|
(3)
|
Reflects actual production as a percentage of available capacity. The calculation excludes CTs.
|
(4)
|
Reflects CDDs or HDDs for the PJM Region based on National Oceanic and Atmospheric Association (“NOAA”) data.
|
(5)
|
Reflects the average of the on-peak spark spreads available to a 7.0 MMBtu/MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas at a daily cash market price and does not reflect spark spreads available to us.
|
(6)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
(7)
|
Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us.
|
|
|
Three Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017 (1)
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
|
|
||||
Energy
|
|
$
|
173
|
|
|
$
|
107
|
|
|
$
|
66
|
|
Capacity
|
|
59
|
|
|
44
|
|
|
15
|
|
|||
Mark-to-market income (loss), net
|
|
(2
|
)
|
|
21
|
|
|
(23
|
)
|
|||
Contract amortization
|
|
(3
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||
Other
|
|
10
|
|
|
13
|
|
|
(3
|
)
|
|||
Total operating revenues
|
|
237
|
|
|
184
|
|
|
53
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(135
|
)
|
|
(85
|
)
|
|
(50
|
)
|
|||
Contract amortization
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total operating costs
|
|
(134
|
)
|
|
(85
|
)
|
|
(49
|
)
|
|||
Gross margin
|
|
103
|
|
|
99
|
|
|
4
|
|
|||
Operating and maintenance expense
|
|
(49
|
)
|
|
(47
|
)
|
|
(2
|
)
|
|||
Depreciation expense
|
|
(57
|
)
|
|
(57
|
)
|
|
—
|
|
|||
Other
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Operating loss
|
|
(1
|
)
|
|
(5
|
)
|
|
4
|
|
|||
Depreciation and amortization expense
|
|
59
|
|
|
60
|
|
|
(1
|
)
|
|||
EBITDA
|
|
58
|
|
|
55
|
|
|
3
|
|
|||
Mark-to-market adjustments
|
|
2
|
|
|
(21
|
)
|
|
23
|
|
|||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Adjusted EBITDA
|
|
$
|
60
|
|
|
$
|
34
|
|
|
$
|
26
|
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
4.2
|
|
|
3.8
|
|
|
0.4
|
|
|||
IMA for Combined-Cycle Facilities (2)
|
|
96
|
%
|
|
95
|
%
|
|
|
||||
Average Capacity Factor for Combined-Cycle Facilities (3)
|
|
37
|
%
|
|
46
|
%
|
|
|
||||
CDDs (4)
|
|
202
|
|
|
150
|
|
|
52
|
|
|||
HDDs (4)
|
|
780
|
|
|
839
|
|
|
(59
|
)
|
|||
Average Market On-Peak Spark Spreads ($/MWh) (5):
|
|
|
|
|
|
|
||||||
New York—Zone C
|
|
$
|
9.63
|
|
|
$
|
13.73
|
|
|
$
|
(4.10
|
)
|
Mass Hub
|
|
$
|
12.07
|
|
|
$
|
11.02
|
|
|
$
|
1.05
|
|
Average Market On-Peak Power Prices ($/MWh) (6):
|
|
|
|
|
|
|
||||||
New York—Zone C
|
|
$
|
26.67
|
|
|
$
|
24.09
|
|
|
$
|
2.58
|
|
Mass Hub
|
|
$
|
32.19
|
|
|
$
|
28.17
|
|
|
$
|
4.02
|
|
Average natural gas price—Algonquin Citygates ($/MMBtu) (7)
|
|
$
|
2.87
|
|
|
$
|
2.44
|
|
|
$
|
0.43
|
|
(1)
|
Includes the activity of the assets acquired in the ENGIE Acquisition.
|
(2)
|
IMA is an internal measurement calculation that reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes our Brayton Point facility.
|
(3)
|
Reflects actual production as a percentage of available capacity. The calculation excludes our Brayton Point facility.
|
(4)
|
Reflects CDDs or HDDs for the ISO-NE Region based on NOAA data.
|
(5)
|
Reflects the average of the on-peak spark spreads available to a 7.0 MMBtu/MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas at a daily cash market price and does not reflect spark spreads available to us.
|
(6)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
(7)
|
Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us.
|
|
|
Three Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Energy
|
|
$
|
101
|
|
|
$
|
—
|
|
|
N/A
|
|
|
Mark-to-market loss, net
|
|
(8
|
)
|
|
—
|
|
|
N/A
|
|
|||
Other
|
|
3
|
|
|
—
|
|
|
N/A
|
|
|||
Total operating revenues
|
|
96
|
|
|
—
|
|
|
N/A
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(75
|
)
|
|
—
|
|
|
N/A
|
|
|||
Contract amortization
|
|
(1
|
)
|
|
—
|
|
|
N/A
|
|
|||
Total operating costs
|
|
(76
|
)
|
|
—
|
|
|
N/A
|
|
|||
Gross margin
|
|
20
|
|
|
—
|
|
|
N/A
|
|
|||
Operating and maintenance expense
|
|
(29
|
)
|
|
—
|
|
|
N/A
|
|
|||
Depreciation expense
|
|
(21
|
)
|
|
—
|
|
|
N/A
|
|
|||
Operating loss
|
|
(30
|
)
|
|
—
|
|
|
N/A
|
|
|||
Depreciation and amortization expense
|
|
22
|
|
|
—
|
|
|
N/A
|
|
|||
EBITDA
|
|
(8
|
)
|
|
—
|
|
|
N/A
|
|
|||
Mark-to-market adjustments
|
|
8
|
|
|
—
|
|
|
N/A
|
|
|||
Other
|
|
1
|
|
|
—
|
|
|
N/A
|
|
|||
Adjusted EBITDA
|
|
$
|
1
|
|
|
$
|
—
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
3.2
|
|
|
—
|
|
|
N/A
|
|
|||
IMA (1):
|
|
|
|
|
|
|
||||||
Combined-Cycle Facilities
|
|
91
|
%
|
|
—
|
%
|
|
|
||||
Coal-Fired Facility
|
|
100
|
%
|
|
—
|
%
|
|
|
||||
Average Capacity Factor (2):
|
|
|
|
|
|
|
||||||
Combined-Cycle Facilities
|
|
26
|
%
|
|
—
|
%
|
|
|
||||
Coal-Fired Facility
|
|
81
|
%
|
|
—
|
%
|
|
|
||||
CDDs (3)
|
|
1,070
|
|
|
982
|
|
|
88
|
|
|||
HDDs (3)
|
|
17
|
|
|
30
|
|
|
(13
|
)
|
|||
Average Market On-Peak Spark Spreads ($/MWh) (4):
|
|
|
|
|
|
|
||||||
ERCOT North
|
|
$
|
7.71
|
|
|
$
|
10.64
|
|
|
$
|
(2.93
|
)
|
Average Market On-Peak Power Prices ($/MWh) (5):
|
|
|
|
|
|
|
||||||
ERCOT North
|
|
$
|
26.76
|
|
|
$
|
24.29
|
|
|
$
|
2.47
|
|
Average natural gas price—Waha Hub ($/MMBtu) (6)
|
|
$
|
2.72
|
|
|
$
|
1.95
|
|
|
$
|
0.77
|
|
(1)
|
IMA is an internal measurement calculation that reflects the percentage of generation available when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes CTs.
|
(2)
|
Reflects actual production as a percentage of available capacity. The calculation excludes CTs.
|
(3)
|
Reflects CDDs or HDDs for the ERCOT Region based on NOAA data.
|
(4)
|
Reflects the average of the on-peak spark spreads available to a 7.0 MMBtu/MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas at a daily cash market price and does not reflect spark spreads available to us.
|
(5)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
(6)
|
Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us.
|
|
|
(in millions)
|
||
Energy margin, net of realized hedges
|
|
$
|
29
|
|
O&M costs
|
|
$
|
(29
|
)
|
|
|
Three Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
|
|
||||
Energy
|
|
$
|
75
|
|
|
$
|
103
|
|
|
$
|
(28
|
)
|
Capacity
|
|
9
|
|
|
7
|
|
|
2
|
|
|||
Mark-to-market income (loss), net
|
|
4
|
|
|
(65
|
)
|
|
69
|
|
|||
Total operating revenues
|
|
88
|
|
|
45
|
|
|
43
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(55
|
)
|
|
(85
|
)
|
|
30
|
|
|||
Total operating costs
|
|
(55
|
)
|
|
(85
|
)
|
|
30
|
|
|||
Gross margin
|
|
33
|
|
|
(40
|
)
|
|
73
|
|
|||
Operating and maintenance expense
|
|
(26
|
)
|
|
(36
|
)
|
|
10
|
|
|||
Depreciation expense
|
|
(6
|
)
|
|
(8
|
)
|
|
2
|
|
|||
Impairments
|
|
(99
|
)
|
|
(645
|
)
|
|
546
|
|
|||
Operating loss
|
|
(98
|
)
|
|
(729
|
)
|
|
631
|
|
|||
Depreciation and amortization expense
|
|
7
|
|
|
9
|
|
|
(2
|
)
|
|||
EBITDA
|
|
(91
|
)
|
|
(720
|
)
|
|
629
|
|
|||
Mark-to-market adjustments
|
|
(4
|
)
|
|
65
|
|
|
(69
|
)
|
|||
Impairments
|
|
99
|
|
|
645
|
|
|
(546
|
)
|
|||
Other (1)
|
|
(1
|
)
|
|
14
|
|
|
(15
|
)
|
|||
Adjusted EBITDA
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
2.7
|
|
|
3.6
|
|
|
(0.9
|
)
|
|||
IMA for Coal-Fired Facilities (2)
|
|
84
|
%
|
|
86
|
%
|
|
|
||||
Average Capacity Factor for Coal-Fired Facilities (3)
|
|
65
|
%
|
|
59
|
%
|
|
|
||||
CDDs (4)
|
|
420
|
|
|
472
|
|
|
(52
|
)
|
|||
HDDs (4)
|
|
459
|
|
|
535
|
|
|
(76
|
)
|
|||
Average Market On-Peak Power Prices ($/MWh) (5):
|
|
|
|
|
|
|
||||||
Indiana (Indy Hub)
|
|
$
|
35.03
|
|
|
$
|
31.14
|
|
|
$
|
3.89
|
|
Commonwealth Edison (NI Hub)
|
|
$
|
33.16
|
|
|
$
|
28.87
|
|
|
$
|
4.29
|
|
(1)
|
Other includes an adjustment to exclude Wood River’s energy margin and O&M costs of $15 million for the
three months ended June 30, 2016
. Adjusted EBITDA did not include this adjustment for the
three months ended June 30, 2017
.
|
(2)
|
IMA is an internal measurement calculation that reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues.
|
(3)
|
Reflects actual production as a percentage of available capacity.
|
(4)
|
Reflects CDDs or HDDs for the MISO Region based on NOAA data.
|
(5)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
|
|
Three Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Energy
|
|
$
|
152
|
|
|
$
|
139
|
|
|
$
|
13
|
|
Capacity
|
|
43
|
|
|
30
|
|
|
13
|
|
|||
Contract amortization
|
|
(2
|
)
|
|
(4
|
)
|
|
2
|
|
|||
Other
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total operating revenues
|
|
194
|
|
|
165
|
|
|
29
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(128
|
)
|
|
(110
|
)
|
|
(18
|
)
|
|||
Contract amortization
|
|
2
|
|
|
9
|
|
|
(7
|
)
|
|||
Total operating costs
|
|
(126
|
)
|
|
(101
|
)
|
|
(25
|
)
|
|||
Gross margin
|
|
68
|
|
|
64
|
|
|
4
|
|
|||
Operating and maintenance expense
|
|
(46
|
)
|
|
(48
|
)
|
|
2
|
|
|||
Depreciation expense
|
|
(12
|
)
|
|
(5
|
)
|
|
(7
|
)
|
|||
Acquisition and integration costs
|
|
—
|
|
|
8
|
|
|
(8
|
)
|
|||
Gain on sale of assets
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Other
|
|
—
|
|
|
(16
|
)
|
|
16
|
|
|||
Operating income
|
|
11
|
|
|
3
|
|
|
8
|
|
|||
Depreciation and amortization expense
|
|
13
|
|
|
3
|
|
|
10
|
|
|||
Bankruptcy reorganization items
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Other income and expense, net
|
|
25
|
|
|
14
|
|
|
11
|
|
|||
EBITDA
|
|
48
|
|
|
20
|
|
|
28
|
|
|||
Adjustment to exclude noncontrolling interest
|
|
(1
|
)
|
|
2
|
|
|
(3
|
)
|
|||
Acquisition and integration costs
|
|
—
|
|
|
(8
|
)
|
|
8
|
|
|||
Bankruptcy reorganization items
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Mark-to-market adjustments
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|||
Gain on sale of assets
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Other
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||
Adjusted EBITDA
|
|
$
|
47
|
|
|
$
|
11
|
|
|
$
|
36
|
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
4.2
|
|
|
3.3
|
|
|
0.9
|
|
|||
IMA (1)
|
|
88
|
%
|
|
91
|
%
|
|
|
||||
Average Capacity Factor for IPH Facilities (2)
|
|
58
|
%
|
|
38
|
%
|
|
|
||||
CDDs (3)
|
|
420
|
|
|
472
|
|
|
(52
|
)
|
|||
HDDs (3)
|
|
459
|
|
|
535
|
|
|
(76
|
)
|
|||
Average Market On-Peak Power Prices ($/MWh) (4):
|
|
|
|
|
|
|
||||||
Indiana (Indy Hub)
|
|
$
|
35.03
|
|
|
$
|
31.14
|
|
|
$
|
3.89
|
|
Commonwealth Edison (NI Hub)
|
|
$
|
33.16
|
|
|
$
|
28.87
|
|
|
$
|
4.29
|
|
(1)
|
IMA is an internal measurement calculation that reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes CTs.
|
(2)
|
Reflects actual production as a percentage of available capacity. The calculation excludes CTs.
|
(3)
|
Reflects CDDs or HDDs for the MISO Region based on NOAA data.
|
(4)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
|
|
(in millions)
|
||
Lower energy margin, net of hedges due to the following:
|
|
|
||
Lower net realized power prices and lower retail contribution due to unfavorable weather
|
|
$
|
(8
|
)
|
Higher generation as a result of higher market prices, net of 2016 shutdowns
|
|
$
|
4
|
|
Higher capacity revenues due to higher pricing
|
|
$
|
13
|
|
|
|
Three Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Energy
|
|
$
|
15
|
|
|
$
|
22
|
|
|
$
|
(7
|
)
|
Capacity
|
|
3
|
|
|
10
|
|
|
(7
|
)
|
|||
Mark-to-market income (loss), net
|
|
(4
|
)
|
|
1
|
|
|
(5
|
)
|
|||
Contract amortization
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|||
Other
|
|
1
|
|
|
5
|
|
|
(4
|
)
|
|||
Total operating revenues
|
|
15
|
|
|
36
|
|
|
(21
|
)
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(8
|
)
|
|
(19
|
)
|
|
11
|
|
|||
Total operating costs
|
|
(8
|
)
|
|
(19
|
)
|
|
11
|
|
|||
Gross margin
|
|
7
|
|
|
17
|
|
|
(10
|
)
|
|||
Operating and maintenance expense
|
|
(12
|
)
|
|
(9
|
)
|
|
(3
|
)
|
|||
Depreciation expense
|
|
(14
|
)
|
|
(4
|
)
|
|
(10
|
)
|
|||
Operating income (loss)
|
|
(19
|
)
|
|
4
|
|
|
(23
|
)
|
|||
Depreciation and amortization expense
|
|
14
|
|
|
6
|
|
|
8
|
|
|||
Other income and expense, net
|
|
—
|
|
|
12
|
|
|
(12
|
)
|
|||
EBITDA
|
|
(5
|
)
|
|
22
|
|
|
(27
|
)
|
|||
Mark-to-market adjustments
|
|
4
|
|
|
(1
|
)
|
|
5
|
|
|||
Adjusted EBITDA
|
|
$
|
(1
|
)
|
|
$
|
21
|
|
|
$
|
(22
|
)
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
0.2
|
|
|
0.8
|
|
|
(0.6
|
)
|
|||
IMA for Combined-Cycle Facilities (1)
|
|
78
|
%
|
|
99
|
%
|
|
|
||||
Average Capacity Factor for Combined-Cycle Facilities (2)
|
|
11
|
%
|
|
32
|
%
|
|
|
||||
CDDs (3)
|
|
303
|
|
|
284
|
|
|
19
|
|
|||
HDDs (3)
|
|
148
|
|
|
122
|
|
|
26
|
|
|||
Average Market On-Peak Spark Spreads ($/MWh) (4):
|
|
|
|
|
|
|
||||||
North of Path 15 (NP 15)
|
|
$
|
9.50
|
|
|
$
|
10.76
|
|
|
$
|
(1.26
|
)
|
Average natural gas price—PG&E Citygate ($/MMBtu) (5)
|
|
$
|
3.27
|
|
|
$
|
2.17
|
|
|
$
|
1.10
|
|
(1)
|
IMA is an internal measurement calculation that reflects the percentage of generation available when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes CTs.
|
(2)
|
Reflects actual production as a percentage of available capacity. The calculation excludes CTs.
|
(3)
|
Reflects CDDs or HDDs for the CAISO Region based on NOAA data.
|
(4)
|
Reflects the average of the on-peak spark spreads available to a 7.0 MMBtu/MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas at a daily cash market price and does not reflect spark spreads available to us.
|
(5)
|
Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us.
|
|
|
Six Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(amounts in millions)
|
|
2017
|
|
2016
|
|
|||||||
Revenues
|
|
|
|
|
|
|
||||||
Energy
|
|
$
|
1,938
|
|
|
$
|
1,543
|
|
|
$
|
395
|
|
Capacity
|
|
444
|
|
|
380
|
|
|
64
|
|
|||
Mark-to-market income (loss), net
|
|
(12
|
)
|
|
91
|
|
|
(103
|
)
|
|||
Contract amortization
|
|
(24
|
)
|
|
(35
|
)
|
|
11
|
|
|||
Other
|
|
65
|
|
|
48
|
|
|
17
|
|
|||
Total revenues
|
|
2,411
|
|
|
2,027
|
|
|
384
|
|
|||
Cost of sales, excluding depreciation expense
|
|
(1,438
|
)
|
|
(1,038
|
)
|
|
(400
|
)
|
|||
Gross margin
|
|
973
|
|
|
989
|
|
|
(16
|
)
|
|||
Operating and maintenance expense
|
|
(514
|
)
|
|
(477
|
)
|
|
(37
|
)
|
|||
Depreciation expense
|
|
(409
|
)
|
|
(331
|
)
|
|
(78
|
)
|
|||
Impairments
|
|
(119
|
)
|
|
(645
|
)
|
|
526
|
|
|||
Loss on sale of assets, net
|
|
(29
|
)
|
|
—
|
|
|
(29
|
)
|
|||
General and administrative expense
|
|
(82
|
)
|
|
(76
|
)
|
|
(6
|
)
|
|||
Acquisition and integration costs
|
|
(52
|
)
|
|
(1
|
)
|
|
(51
|
)
|
|||
Other
|
|
1
|
|
|
(16
|
)
|
|
17
|
|
|||
Operating loss
|
|
(231
|
)
|
|
(557
|
)
|
|
326
|
|
|||
Bankruptcy reorganization items
|
|
482
|
|
|
—
|
|
|
482
|
|
|||
Earnings from unconsolidated investments
|
|
—
|
|
|
3
|
|
|
(3
|
)
|
|||
Interest expense
|
|
(326
|
)
|
|
(283
|
)
|
|
(43
|
)
|
|||
Other income and expense, net
|
|
46
|
|
|
31
|
|
|
15
|
|
|||
Loss before income taxes
|
|
(29
|
)
|
|
(806
|
)
|
|
777
|
|
|||
Income tax benefit (expense)
|
|
329
|
|
|
(7
|
)
|
|
336
|
|
|||
Net income (loss)
|
|
300
|
|
|
(813
|
)
|
|
1,113
|
|
|||
Less: Net loss attributable to noncontrolling interest
|
|
(1
|
)
|
|
(2
|
)
|
|
1
|
|
|||
Net income (loss) attributable to Dynegy Inc.
|
|
$
|
301
|
|
|
$
|
(811
|
)
|
|
$
|
1,112
|
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||||||||||
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other
|
|
Total
|
||||||||||||||||
Revenues
|
|
$
|
1,156
|
|
|
$
|
547
|
|
|
$
|
112
|
|
|
$
|
188
|
|
|
$
|
369
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
2,411
|
|
Cost of sales, excluding depreciation expense
|
|
(619
|
)
|
|
(373
|
)
|
|
(93
|
)
|
|
(105
|
)
|
|
(229
|
)
|
|
(19
|
)
|
|
—
|
|
|
(1,438
|
)
|
||||||||
Gross margin
|
|
537
|
|
|
174
|
|
|
19
|
|
|
83
|
|
|
140
|
|
|
20
|
|
|
—
|
|
|
973
|
|
||||||||
Operating and maintenance expense
|
|
(206
|
)
|
|
(97
|
)
|
|
(43
|
)
|
|
(52
|
)
|
|
(88
|
)
|
|
(27
|
)
|
|
(1
|
)
|
|
(514
|
)
|
||||||||
Depreciation expense
|
|
(189
|
)
|
|
(119
|
)
|
|
(34
|
)
|
|
(13
|
)
|
|
(24
|
)
|
|
(26
|
)
|
|
(4
|
)
|
|
(409
|
)
|
||||||||
Impairments
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
||||||||
Gain (loss) on sale of assets, net
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
||||||||
General and administrative expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(82
|
)
|
|
(82
|
)
|
||||||||
Acquisition and integration costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
(52
|
)
|
||||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||
Operating income (loss)
|
|
$
|
92
|
|
|
$
|
(42
|
)
|
|
$
|
(58
|
)
|
|
$
|
(81
|
)
|
|
$
|
29
|
|
|
$
|
(33
|
)
|
|
$
|
(138
|
)
|
|
$
|
(231
|
)
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||||||
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other
|
|
Total
|
||||||||||||||
Revenues
|
|
$
|
1,036
|
|
|
$
|
433
|
|
|
$
|
167
|
|
|
$
|
332
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
2,027
|
|
Cost of sales, excluding depreciation expense
|
|
(416
|
)
|
|
(239
|
)
|
|
(148
|
)
|
|
(200
|
)
|
|
(35
|
)
|
|
—
|
|
|
(1,038
|
)
|
|||||||
Gross margin
|
|
620
|
|
|
194
|
|
|
19
|
|
|
132
|
|
|
24
|
|
|
—
|
|
|
989
|
|
|||||||
Operating and maintenance expense
|
|
(203
|
)
|
|
(87
|
)
|
|
(74
|
)
|
|
(93
|
)
|
|
(19
|
)
|
|
(1
|
)
|
|
(477
|
)
|
|||||||
Depreciation expense
|
|
(169
|
)
|
|
(114
|
)
|
|
(16
|
)
|
|
(14
|
)
|
|
(15
|
)
|
|
(3
|
)
|
|
(331
|
)
|
|||||||
Impairments
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(645
|
)
|
|||||||
General and administrative expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
(76
|
)
|
|||||||
Acquisition and integration costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
(9
|
)
|
|
(1
|
)
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||||
Operating income (loss)
|
|
$
|
248
|
|
|
$
|
(7
|
)
|
|
$
|
(716
|
)
|
|
$
|
17
|
|
|
$
|
(10
|
)
|
|
$
|
(89
|
)
|
|
$
|
(557
|
)
|
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Total
|
||||||||||||||
Revenues, net of hedges, attributable to newly acquired ENGIE plants for the first quarter of 2017
|
|
$
|
119
|
|
|
$
|
92
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
323
|
|
Higher (lower) realized power prices
|
|
76
|
|
|
92
|
|
|
—
|
|
|
(4
|
)
|
|
(20
|
)
|
|
12
|
|
|
156
|
|
|||||||
Higher (lower) generation volumes (1)
|
|
(4
|
)
|
|
(9
|
)
|
|
—
|
|
|
(35
|
)
|
|
28
|
|
|
(26
|
)
|
|
(46
|
)
|
|||||||
Higher (lower) capacity revenues
|
|
(21
|
)
|
|
(2
|
)
|
|
—
|
|
|
3
|
|
|
30
|
|
|
(5
|
)
|
|
5
|
|
|||||||
Change in MTM value of derivative transactions
|
|
(88
|
)
|
|
(66
|
)
|
|
—
|
|
|
56
|
|
|
(2
|
)
|
|
1
|
|
|
(99
|
)
|
|||||||
Lower (higher) contract amortization
|
|
4
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
4
|
|
|
3
|
|
|
9
|
|
|||||||
Other (2)
|
|
34
|
|
|
9
|
|
|
—
|
|
|
1
|
|
|
(3
|
)
|
|
(5
|
)
|
|
36
|
|
|||||||
Total change in revenues
|
|
$
|
120
|
|
|
$
|
114
|
|
|
$
|
112
|
|
|
$
|
21
|
|
|
$
|
37
|
|
|
$
|
(20
|
)
|
|
$
|
384
|
|
(1)
|
Decrease primarily due to unit shutdowns at our MISO and IPH segments and higher outages at our CAISO segment; offsetting increase primarily due to higher market prices at our IPH segment.
|
(2)
|
Other primarily consists of ancillary, tolling, transmission and gas revenues.
|
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Total
|
||||||||||||||
Cost of sales attributable to newly acquired ENGIE plants for the first quarter of 2017
|
|
$
|
46
|
|
|
$
|
45
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
184
|
|
Higher (lower) prices
|
|
133
|
|
|
117
|
|
|
—
|
|
|
3
|
|
|
(7
|
)
|
|
6
|
|
|
252
|
|
|||||||
Higher (lower) burn volumes (1)
|
|
(6
|
)
|
|
(12
|
)
|
|
—
|
|
|
(32
|
)
|
|
35
|
|
|
(22
|
)
|
|
(37
|
)
|
|||||||
Lower (higher) contract amortization
|
|
21
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
15
|
|
|||||||
Other (2)
|
|
9
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(9
|
)
|
|
—
|
|
|
(14
|
)
|
|||||||
Total change in cost of sales
|
|
$
|
203
|
|
|
$
|
134
|
|
|
$
|
93
|
|
|
$
|
(43
|
)
|
|
$
|
29
|
|
|
$
|
(16
|
)
|
|
$
|
400
|
|
(1)
|
Lower burn volumes primarily due to higher gas prices at our PJM and NY/NE segments, unit shutdowns at our MISO and IPH segments, and higher outages at our CAISO segment; offsetting increase primarily due to higher market prices at our IPH segment.
|
(2)
|
Other primarily consists of transmission expenses.
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||||||||||
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
ERCOT
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other
|
|
Total
|
||||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
300
|
|
||||||||||||||
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(329
|
)
|
|||||||||||||||
Other income and expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(46
|
)
|
|||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
326
|
|
|||||||||||||||
Bankruptcy reorganization items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(482
|
)
|
|||||||||||||||
Operating income (loss)
|
|
$
|
92
|
|
|
$
|
(42
|
)
|
|
$
|
(58
|
)
|
|
$
|
(81
|
)
|
|
$
|
29
|
|
|
$
|
(33
|
)
|
|
$
|
(138
|
)
|
|
$
|
(231
|
)
|
Depreciation and amortization expense
|
|
198
|
|
|
127
|
|
|
35
|
|
|
15
|
|
|
27
|
|
|
29
|
|
|
4
|
|
|
435
|
|
||||||||
Bankruptcy reorganization items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
482
|
|
|
—
|
|
|
—
|
|
|
482
|
|
||||||||
Other income and expense, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
20
|
|
|
46
|
|
||||||||
EBITDA
|
|
290
|
|
|
85
|
|
|
(23
|
)
|
|
(66
|
)
|
|
564
|
|
|
(4
|
)
|
|
(114
|
)
|
|
732
|
|
||||||||
Adjustments to reflect Adjusted EBITDA to exclude noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||||
Acquisition, integration and restructuring costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
52
|
|
||||||||
Bankruptcy reorganization items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(482
|
)
|
|
—
|
|
|
—
|
|
|
(482
|
)
|
||||||||
Mark-to-market adjustments, including warrants
|
|
16
|
|
|
17
|
|
|
14
|
|
|
(19
|
)
|
|
(1
|
)
|
|
—
|
|
|
(15
|
)
|
|
12
|
|
||||||||
Impairments
|
|
20
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
119
|
|
||||||||
Loss (gain) on sale of assets, net
|
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
29
|
|
||||||||
Non-cash compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
||||||||
Other
|
|
3
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
||||||||
Adjusted EBITDA
|
|
$
|
359
|
|
|
$
|
102
|
|
|
$
|
(8
|
)
|
|
$
|
13
|
|
|
$
|
78
|
|
|
$
|
(4
|
)
|
|
$
|
(70
|
)
|
|
$
|
470
|
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||||||
(amounts in millions)
|
|
PJM
|
|
NY/NE
|
|
MISO
|
|
IPH
|
|
CAISO
|
|
Other
|
|
Total
|
||||||||||||||
Net loss attributable to Dynegy Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(813
|
)
|
||||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|||||||||||||
Other income and expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31
|
)
|
|||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
283
|
|
|||||||||||||
Earnings from unconsolidated investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|||||||||||||
Operating income (loss)
|
|
$
|
248
|
|
|
$
|
(7
|
)
|
|
$
|
(716
|
)
|
|
$
|
17
|
|
|
$
|
(10
|
)
|
|
$
|
(89
|
)
|
|
$
|
(557
|
)
|
Depreciation and amortization expense
|
|
167
|
|
|
135
|
|
|
18
|
|
|
13
|
|
|
18
|
|
|
3
|
|
|
354
|
|
|||||||
Earnings from unconsolidated investments
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||||
Other income and expense, net
|
|
6
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
12
|
|
|
(1
|
)
|
|
31
|
|
|||||||
EBITDA
|
|
424
|
|
|
128
|
|
|
(698
|
)
|
|
44
|
|
|
20
|
|
|
(87
|
)
|
|
(169
|
)
|
|||||||
Adjustments to reflect Adjusted EBITDA from unconsolidated investments and exclude noncontrolling interest
|
|
4
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||||
Acquisition and integration costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
9
|
|
|
1
|
|
|||||||
Mark-to-market adjustments, including warrants
|
|
(68
|
)
|
|
(41
|
)
|
|
37
|
|
|
(5
|
)
|
|
1
|
|
|
(1
|
)
|
|
(77
|
)
|
|||||||
Impairments
|
|
—
|
|
|
—
|
|
|
645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
645
|
|
|||||||
Non-cash compensation expense
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
12
|
|
|||||||
Other (1)
|
|
—
|
|
|
—
|
|
|
19
|
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
20
|
|
|||||||
Adjusted EBITDA
|
|
$
|
361
|
|
|
$
|
87
|
|
|
$
|
3
|
|
|
$
|
32
|
|
|
$
|
21
|
|
|
$
|
(66
|
)
|
|
$
|
438
|
|
(1)
|
Other includes an adjustment to exclude Wood River’s energy margin and O&M costs of
$20 million
for the
six months ended June 30, 2016
. Adjusted EBITDA did not include this adjustment for the
six months ended June 30, 2017
.
|
|
|
Six Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017 (1)
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
|
|
||||
Energy
|
|
$
|
899
|
|
|
$
|
747
|
|
|
$
|
152
|
|
Capacity
|
|
234
|
|
|
216
|
|
|
18
|
|
|||
Mark-to-market income (loss), net
|
|
(1
|
)
|
|
78
|
|
|
(79
|
)
|
|||
Contract amortization
|
|
(13
|
)
|
|
(21
|
)
|
|
8
|
|
|||
Other
|
|
37
|
|
|
16
|
|
|
21
|
|
|||
Total operating revenues
|
|
1,156
|
|
|
1,036
|
|
|
120
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(625
|
)
|
|
(441
|
)
|
|
(184
|
)
|
|||
Contract amortization
|
|
6
|
|
|
25
|
|
|
(19
|
)
|
|||
Total operating costs
|
|
(619
|
)
|
|
(416
|
)
|
|
(203
|
)
|
|||
Gross margin
|
|
537
|
|
|
620
|
|
|
(83
|
)
|
|||
Operating and maintenance expense
|
|
(206
|
)
|
|
(203
|
)
|
|
(3
|
)
|
|||
Depreciation expense
|
|
(189
|
)
|
|
(169
|
)
|
|
(20
|
)
|
|||
Impairments
|
|
(20
|
)
|
|
—
|
|
|
(20
|
)
|
|||
Loss on sale of assets
|
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
|||
Operating income
|
|
92
|
|
|
248
|
|
|
(156
|
)
|
|||
Depreciation and amortization expense
|
|
198
|
|
|
167
|
|
|
31
|
|
|||
Earnings from unconsolidated investments
|
|
—
|
|
|
3
|
|
|
(3
|
)
|
|||
Other income and expense, net
|
|
—
|
|
|
6
|
|
|
(6
|
)
|
|||
EBITDA
|
|
290
|
|
|
424
|
|
|
(134
|
)
|
|||
Adjustments to reflect Adjusted EBITDA from unconsolidated investments
|
|
—
|
|
|
4
|
|
|
(4
|
)
|
|||
Mark-to-market adjustments
|
|
16
|
|
|
(68
|
)
|
|
84
|
|
|||
Impairments
|
|
20
|
|
|
—
|
|
|
20
|
|
|||
Loss on sale of assets
|
|
30
|
|
|
—
|
|
|
30
|
|
|||
Non-cash compensation expense
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Other
|
|
3
|
|
|
—
|
|
|
3
|
|
|||
Adjusted EBITDA
|
|
$
|
359
|
|
|
$
|
361
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
24.3
|
|
|
24.2
|
|
|
0.1
|
|
|||
IMA (2):
|
|
|
|
|
|
|
||||||
Combined-Cycle Facilities
|
|
88
|
%
|
|
98
|
%
|
|
|
||||
Coal-Fired Facilities
|
|
68
|
%
|
|
78
|
%
|
|
|
||||
Average Capacity Factor (3):
|
|
|
|
|
|
|
||||||
Combined-Cycle Facilities
|
|
59
|
%
|
|
72
|
%
|
|
|
|
|||
Coal-Fired Facilities
|
|
55
|
%
|
|
44
|
%
|
|
|
|
|||
CDDs (4)
|
|
350
|
|
|
334
|
|
|
16
|
|
|||
HDDs (4)
|
|
2,636
|
|
|
3,038
|
|
|
(402
|
)
|
|||
Average Market On-Peak Spark Spreads ($/MWh) (5):
|
|
|
|
|
|
|
||||||
PJM West
|
|
$
|
13.57
|
|
|
$
|
19.94
|
|
|
$
|
(6.37
|
)
|
AD Hub
|
|
$
|
14.59
|
|
|
$
|
29.68
|
|
|
$
|
(15.09
|
)
|
Average Market On-Peak Power Prices ($/MWh) (6):
|
|
|
|
|
|
|
||||||
PJM West
|
|
$
|
32.88
|
|
|
$
|
31.78
|
|
|
$
|
1.10
|
|
AD Hub
|
|
$
|
32.49
|
|
|
$
|
29.61
|
|
|
$
|
2.88
|
|
Average natural gas price—TetcoM3 ($/MMBtu) (7)
|
|
$
|
2.76
|
|
|
$
|
1.69
|
|
|
$
|
1.07
|
|
(1)
|
Includes the activity of the assets acquired in the ENGIE Acquisition for our period of ownership. Million Megawatt Hours Generated and Average Capacity Factor include such activity for the full month of February. IMA excludes such activity for our period of ownership in February.
|
(2)
|
IMA is an internal measurement calculation that reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes CTs.
|
(3)
|
Reflects actual production as a percentage of available capacity. The calculation excludes CTs.
|
(4)
|
Reflects CDDs or HDDs for the PJM Region based on NOAA data.
|
(5)
|
Reflects the average of the on-peak spark spreads available to a 7.0 MMBtu/MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas at a daily cash market price and does not reflect spark spreads available to us.
|
(6)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
(7)
|
Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us.
|
|
|
Six Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017 (1)
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
|
|
||||
Energy
|
|
$
|
446
|
|
|
$
|
278
|
|
|
$
|
168
|
|
Capacity
|
|
105
|
|
|
87
|
|
|
18
|
|
|||
Mark-to-market income (loss), net
|
|
(17
|
)
|
|
48
|
|
|
(65
|
)
|
|||
Contract amortization
|
|
(7
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|||
Other
|
|
20
|
|
|
23
|
|
|
(3
|
)
|
|||
Total operating revenues
|
|
547
|
|
|
433
|
|
|
114
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(373
|
)
|
|
(223
|
)
|
|
(150
|
)
|
|||
Contract amortization
|
|
—
|
|
|
(16
|
)
|
|
16
|
|
|||
Total operating costs
|
|
(373
|
)
|
|
(239
|
)
|
|
(134
|
)
|
|||
Gross margin
|
|
174
|
|
|
194
|
|
|
(20
|
)
|
|||
Operating and maintenance expense
|
|
(97
|
)
|
|
(87
|
)
|
|
(10
|
)
|
|||
Depreciation expense
|
|
(119
|
)
|
|
(114
|
)
|
|
(5
|
)
|
|||
Operating loss
|
|
(42
|
)
|
|
(7
|
)
|
|
(35
|
)
|
|||
Depreciation and amortization expense
|
|
127
|
|
|
135
|
|
|
(8
|
)
|
|||
EBITDA
|
|
85
|
|
|
128
|
|
|
(43
|
)
|
|||
Mark-to-market adjustments
|
|
17
|
|
|
(41
|
)
|
|
58
|
|
|||
Adjusted EBITDA
|
|
$
|
102
|
|
|
$
|
87
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
8.9
|
|
|
7.7
|
|
|
1.2
|
|
|||
IMA for Combined-Cycle Facilities (2)
|
|
97
|
%
|
|
92
|
%
|
|
|
||||
Average Capacity Factor for Combined-Cycle Facilities (3)
|
|
37
|
%
|
|
43
|
%
|
|
|
||||
CDDs (4)
|
|
202
|
|
|
150
|
|
|
52
|
|
|||
HDDs (4)
|
|
3,552
|
|
|
3,558
|
|
|
(6
|
)
|
|||
Average Market On-Peak Spark Spreads ($/MWh) (5):
|
|
|
|
|
|
|
||||||
New York—Zone C
|
|
$
|
10.69
|
|
|
$
|
13.04
|
|
|
$
|
(2.35
|
)
|
Mass Hub
|
|
$
|
9.35
|
|
|
$
|
10.92
|
|
|
$
|
(1.57
|
)
|
Average Market On-Peak Power Prices ($/MWh) (6):
|
|
|
|
|
|
|
||||||
New York—Zone C
|
|
$
|
28.59
|
|
|
$
|
22.71
|
|
|
$
|
5.88
|
|
Mass Hub
|
|
$
|
34.98
|
|
|
$
|
31.01
|
|
|
$
|
3.97
|
|
Average natural gas price—Algonquin Citygates ($/MMBtu) (7)
|
|
$
|
3.66
|
|
|
$
|
2.87
|
|
|
$
|
0.79
|
|
(1)
|
Adjusted EBITDA includes the activity of the assets acquired in the ENGIE Acquisition for our period of ownership. Million Megawatt Hours Generated and Average Capacity Factor include such activity for the full month of February. IMA excludes such activity for our period of ownership in February.
|
(2)
|
IMA is an internal measurement calculation that reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes our Brayton Point facility.
|
(3)
|
Reflects actual production as a percentage of available capacity. The calculation excludes our Brayton Point facility.
|
(4)
|
Reflects CDDs or HDDs for the ISO-NE Region based on NOAA data.
|
(5)
|
Reflects the average of the on-peak spark spreads available to a 7.0 MMBtu/MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas at a daily cash market price and does not reflect spark spreads available to us.
|
(6)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
(7)
|
Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us.
|
|
|
Six Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Energy
|
|
$
|
123
|
|
|
$
|
—
|
|
|
N/A
|
|
|
Mark-to-market loss, net
|
|
(14
|
)
|
|
—
|
|
|
N/A
|
|
|||
Other
|
|
3
|
|
|
—
|
|
|
N/A
|
|
|||
Total operating revenues
|
|
112
|
|
|
—
|
|
|
N/A
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(92
|
)
|
|
—
|
|
|
N/A
|
|
|||
Contract amortization
|
|
(1
|
)
|
|
—
|
|
|
N/A
|
|
|||
Total operating costs
|
|
(93
|
)
|
|
—
|
|
|
N/A
|
|
|||
Gross margin
|
|
19
|
|
|
—
|
|
|
N/A
|
|
|||
Operating and maintenance expense
|
|
(43
|
)
|
|
—
|
|
|
N/A
|
|
|||
Depreciation expense
|
|
(34
|
)
|
|
—
|
|
|
N/A
|
|
|||
Operating loss
|
|
(58
|
)
|
|
—
|
|
|
N/A
|
|
|||
Depreciation and amortization expense
|
|
35
|
|
|
—
|
|
|
N/A
|
|
|||
EBITDA
|
|
(23
|
)
|
|
—
|
|
|
N/A
|
|
|||
Mark-to-market adjustments
|
|
14
|
|
|
—
|
|
|
N/A
|
|
|||
Other
|
|
1
|
|
|
—
|
|
|
N/A
|
|
|||
Adjusted EBITDA
|
|
$
|
(8
|
)
|
|
$
|
—
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated (1)
|
|
3.8
|
|
|
—
|
|
|
N/A
|
|
|||
IMA (1)(2):
|
|
|
|
|
|
|
||||||
Combined-Cycle Facilities
|
|
93
|
%
|
|
—
|
%
|
|
|
|
|||
Coal-Fired Facility
|
|
98
|
%
|
|
—
|
%
|
|
|
||||
Average Capacity Factor (1)(3):
|
|
|
|
|
|
|
||||||
Combined-Cycle Facilities
|
|
20
|
%
|
|
—
|
%
|
|
|
|
|||
Coal-Fired Facility
|
|
56
|
%
|
|
—
|
%
|
|
|
||||
CDDs (4)
|
|
1,337
|
|
|
1,102
|
|
|
235
|
|
|||
HDDs (4)
|
|
511
|
|
|
788
|
|
|
(277
|
)
|
|||
Average Market On-Peak Spark Spreads ($/MWh) (5):
|
|
|
|
|
|
|
||||||
ERCOT North
|
|
$
|
5.91
|
|
|
$
|
8.64
|
|
|
$
|
(2.73
|
)
|
Average Market On-Peak Power Prices ($/MWh) (6):
|
|
|
|
|
|
|
||||||
ERCOT North
|
|
$
|
25.15
|
|
|
$
|
21.95
|
|
|
$
|
3.20
|
|
Average natural gas price—Waha Hub ($/MMBtu) (7)
|
|
$
|
2.75
|
|
|
$
|
1.90
|
|
|
$
|
0.85
|
|
(1)
|
Million Megawatt Hours Generated and Average Capacity Factor include such activity for the full month of February. IMA excludes such activity for our period of ownership in February.
|
(2)
|
IMA is an internal measurement calculation that reflects the percentage of generation available when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes CTs.
|
(3)
|
Reflects actual production as a percentage of available capacity. The calculation excludes CTs.
|
(4)
|
Reflects CDDs or HDDs for the ERCOT Region based on NOAA data.
|
(5)
|
Reflects the average of the on-peak spark spreads available to a 7.0 MMBtu/MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas at a daily cash market price and does not reflect spark spreads available to us.
|
(6)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
(7)
|
Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us.
|
|
|
(in millions)
|
||
Energy margin, net of realized hedges
|
|
$
|
34
|
|
O&M costs
|
|
$
|
(43
|
)
|
|
|
Six Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
|
|
||||
Energy
|
|
$
|
152
|
|
|
$
|
191
|
|
|
$
|
(39
|
)
|
Capacity
|
|
16
|
|
|
13
|
|
|
3
|
|
|||
Mark-to-market income (loss), net
|
|
19
|
|
|
(37
|
)
|
|
56
|
|
|||
Other
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total operating revenues
|
|
188
|
|
|
167
|
|
|
21
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(105
|
)
|
|
(148
|
)
|
|
43
|
|
|||
Total operating costs
|
|
(105
|
)
|
|
(148
|
)
|
|
43
|
|
|||
Gross margin
|
|
83
|
|
|
19
|
|
|
64
|
|
|||
Operating and maintenance expense
|
|
(52
|
)
|
|
(74
|
)
|
|
22
|
|
|||
Depreciation expense
|
|
(13
|
)
|
|
(16
|
)
|
|
3
|
|
|||
Impairments
|
|
(99
|
)
|
|
(645
|
)
|
|
546
|
|
|||
Operating loss
|
|
(81
|
)
|
|
(716
|
)
|
|
635
|
|
|||
Depreciation and amortization expense
|
|
15
|
|
|
18
|
|
|
(3
|
)
|
|||
EBITDA
|
|
(66
|
)
|
|
(698
|
)
|
|
632
|
|
|||
Mark-to-market adjustments
|
|
(19
|
)
|
|
37
|
|
|
(56
|
)
|
|||
Impairments
|
|
99
|
|
|
645
|
|
|
(546
|
)
|
|||
Other (1)
|
|
(1
|
)
|
|
19
|
|
|
(20
|
)
|
|||
Adjusted EBITDA
|
|
$
|
13
|
|
|
$
|
3
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
5.4
|
|
|
7.0
|
|
|
(1.6
|
)
|
|||
IMA for Coal-Fired Facilities (2)
|
|
87
|
%
|
|
87
|
%
|
|
|
||||
Average Capacity Factor for Coal-Fired Facilities (3)
|
|
65
|
%
|
|
54
|
%
|
|
|
||||
CDDs (4)
|
|
476
|
|
|
500
|
|
|
(24
|
)
|
|||
HDDs (4)
|
|
2,662
|
|
|
2,959
|
|
|
(297
|
)
|
|||
Average Market On-Peak Power Prices ($/MWh) (5):
|
|
|
|
|
|
|
||||||
Indiana (Indy Hub)
|
|
$
|
33.84
|
|
|
$
|
28.38
|
|
|
$
|
5.46
|
|
Commonwealth Edison (NI Hub)
|
|
$
|
31.71
|
|
|
$
|
28.11
|
|
|
$
|
3.60
|
|
(1)
|
Other includes an adjustment to exclude Wood River’s energy margin and O&M costs of $20 million for the
six months ended June 30, 2016
. Adjusted EBITDA did not include this adjustment for the
six months ended June 30, 2017
.
|
(2)
|
IMA is an internal measurement calculation that reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues.
|
(3)
|
Reflects actual production as a percentage of available capacity.
|
(4)
|
Reflects CDDs or HDDs for the MISO Region based on NOAA data.
|
(5)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
|
|
Six Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Energy
|
|
$
|
289
|
|
|
$
|
284
|
|
|
$
|
5
|
|
Capacity
|
|
82
|
|
|
52
|
|
|
30
|
|
|||
Mark-to-market income, net
|
|
1
|
|
|
3
|
|
|
(2
|
)
|
|||
Contract amortization
|
|
(4
|
)
|
|
(8
|
)
|
|
4
|
|
|||
Other
|
|
1
|
|
|
1
|
|
|
—
|
|
|||
Total operating revenues
|
|
369
|
|
|
332
|
|
|
37
|
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(233
|
)
|
|
(214
|
)
|
|
(19
|
)
|
|||
Contract amortization
|
|
4
|
|
|
14
|
|
|
(10
|
)
|
|||
Total operating costs
|
|
(229
|
)
|
|
(200
|
)
|
|
(29
|
)
|
|||
Gross margin
|
|
140
|
|
|
132
|
|
|
8
|
|
|||
Operating and maintenance expense
|
|
(88
|
)
|
|
(93
|
)
|
|
5
|
|
|||
Depreciation expense
|
|
(24
|
)
|
|
(14
|
)
|
|
(10
|
)
|
|||
Acquisition and integration costs
|
|
—
|
|
|
8
|
|
|
(8
|
)
|
|||
Other
|
|
1
|
|
|
(16
|
)
|
|
17
|
|
|||
Operating income
|
|
29
|
|
|
17
|
|
|
12
|
|
|||
Depreciation and amortization expense
|
|
27
|
|
|
13
|
|
|
14
|
|
|||
Bankruptcy reorganization items
|
|
482
|
|
|
—
|
|
|
482
|
|
|||
Other income and expense, net
|
|
26
|
|
|
14
|
|
|
12
|
|
|||
EBITDA
|
|
564
|
|
|
44
|
|
|
520
|
|
|||
Adjustment to exclude noncontrolling interest
|
|
(1
|
)
|
|
2
|
|
|
(3
|
)
|
|||
Acquisition and integration costs
|
|
—
|
|
|
(8
|
)
|
|
8
|
|
|||
Bankruptcy reorganization items
|
|
(482
|
)
|
|
—
|
|
|
(482
|
)
|
|||
Mark-to-market adjustments
|
|
(1
|
)
|
|
(5
|
)
|
|
4
|
|
|||
Gain on sale of assets, net
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Other
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||
Adjusted EBITDA
|
|
$
|
78
|
|
|
$
|
32
|
|
|
$
|
46
|
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
8.0
|
|
|
6.6
|
|
|
1.4
|
|
|||
IMA (1)
|
|
87
|
%
|
|
89
|
%
|
|
|
||||
Average Capacity Factor for IPH Facilities (2)
|
|
55
|
%
|
|
38
|
%
|
|
|
||||
CDDs (3)
|
|
476
|
|
|
500
|
|
|
(24
|
)
|
|||
HDDs (3)
|
|
2,662
|
|
|
2,959
|
|
|
(297
|
)
|
|||
Average Market On-Peak Power Prices ($/MWh) (4):
|
|
|
|
|
|
|
||||||
Indiana (Indy Hub)
|
|
$
|
33.84
|
|
|
$
|
28.38
|
|
|
$
|
5.46
|
|
Commonwealth Edison (NI Hub)
|
|
$
|
31.71
|
|
|
$
|
28.11
|
|
|
$
|
3.60
|
|
(1)
|
IMA is an internal measurement calculation that reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes CTs.
|
(2)
|
Reflects actual production as a percentage of available capacity. The calculation excludes CTs.
|
(3)
|
Reflects CDDs or HDDs for the MISO Region based on NOAA data.
|
(4)
|
Reflects the average of day-ahead settled prices for the periods presented and does not necessarily reflect prices we realized.
|
|
|
Six Months Ended June 30,
|
|
Favorable (Unfavorable) $ Change
|
||||||||
(dollars in millions, except for price information)
|
|
2017
|
|
2016
|
|
|||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Energy
|
|
$
|
29
|
|
|
$
|
43
|
|
|
$
|
(14
|
)
|
Capacity
|
|
7
|
|
|
12
|
|
|
(5
|
)
|
|||
Mark-to-market loss, net
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||
Contract amortization
|
|
—
|
|
|
(3
|
)
|
|
3
|
|
|||
Other
|
|
3
|
|
|
8
|
|
|
(5
|
)
|
|||
Total operating revenues
|
|
39
|
|
|
59
|
|
|
(20
|
)
|
|||
Operating costs
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
(19
|
)
|
|
(35
|
)
|
|
16
|
|
|||
Total operating costs
|
|
(19
|
)
|
|
(35
|
)
|
|
16
|
|
|||
Gross margin
|
|
20
|
|
|
24
|
|
|
(4
|
)
|
|||
Operating and maintenance expense
|
|
(27
|
)
|
|
(19
|
)
|
|
(8
|
)
|
|||
Depreciation expense
|
|
(26
|
)
|
|
(15
|
)
|
|
(11
|
)
|
|||
Operating loss
|
|
(33
|
)
|
|
(10
|
)
|
|
(23
|
)
|
|||
Depreciation and amortization expense
|
|
29
|
|
|
18
|
|
|
11
|
|
|||
Other income and expense, net
|
|
—
|
|
|
12
|
|
|
(12
|
)
|
|||
EBITDA
|
|
(4
|
)
|
|
20
|
|
|
(24
|
)
|
|||
Mark-to-market adjustments
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Adjusted EBITDA
|
|
$
|
(4
|
)
|
|
$
|
21
|
|
|
$
|
(25
|
)
|
|
|
|
|
|
|
|
||||||
Million Megawatt Hours Generated
|
|
0.5
|
|
|
1.4
|
|
|
(0.9
|
)
|
|||
IMA for Combined-Cycle Facilities (1)
|
|
85
|
%
|
|
99
|
%
|
|
|
||||
Average Capacity Factor for Combined-Cycle Facilities (2)
|
|
12
|
%
|
|
31
|
%
|
|
|
||||
CDDs (3)
|
|
328
|
|
|
328
|
|
|
—
|
|
|||
HDDs (3)
|
|
866
|
|
|
715
|
|
|
151
|
|
|||
Average Market On-Peak Spark Spreads ($/MWh) (4):
|
|
|
|
|
|
|
||||||
North of Path 15 (NP 15)
|
|
$
|
8.92
|
|
|
$
|
10.74
|
|
|
$
|
(1.82
|
)
|
Average natural gas price—PG&E Citygate ($/MMBtu) (5)
|
|
$
|
3.31
|
|
|
$
|
2.18
|
|
|
$
|
1.13
|
|
(1)
|
IMA is an internal measurement calculation that reflects the percentage of generation available when market prices are such that these units could be profitably dispatched. The calculation excludes certain events outside of management control such as weather related issues. The calculation excludes CTs.
|
(2)
|
Reflects actual production as a percentage of available capacity. The calculation excludes CTs.
|
(3)
|
Reflects CDDs or HDDs for the CAISO Region based on NOAA data.
|
(4)
|
Reflects the average of the on-peak spark spreads available to a 7.0 MMBtu/MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas at a daily cash market price and does not reflect spark spreads available to us.
|
(5)
|
Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us.
|
|
|
2017
|
|
2018
|
|
2019 to 2021
|
Generation volumes hedged
|
|
84%
|
|
61%
|
|
10%
|
Coal requirements contracted (1)
|
|
95%
|
|
93%
|
|
24%
|
Coal requirements priced (1)
|
|
95%
|
|
93%
|
|
13%
|
Coal transportation requirements contracted (1)
|
|
100%
|
|
100%
|
|
100%
|
(1)
|
Excludes non-operated jointly-owned generating units.
|
|
|
2017-2018
|
|
2018-2019
|
|
2019-2020
|
|
2020-2021
|
||||||||||||||||||||
(price per MW-day)
|
|
Legacy Capacity
|
|
CP
|
|
Base
|
|
CP
|
|
Base
|
|
CP
|
|
CP
|
||||||||||||||
RTO zone (1)
|
|
$
|
120.00
|
|
|
$
|
151.50
|
|
|
$
|
149.98
|
|
|
$
|
164.77
|
|
|
$
|
80.00
|
|
|
$
|
100.00
|
|
|
$
|
88.32
|
|
MAAC zone
|
|
$
|
120.00
|
|
|
$
|
151.50
|
|
|
$
|
149.98
|
|
|
$
|
164.77
|
|
|
$
|
80.00
|
|
|
$
|
100.00
|
|
|
$
|
86.04
|
|
EMAAC zone
|
|
$
|
120.00
|
|
|
$
|
151.50
|
|
|
$
|
210.63
|
|
|
$
|
225.42
|
|
|
$
|
99.77
|
|
|
$
|
119.77
|
|
|
$
|
187.87
|
|
COMED zone
|
|
$
|
120.00
|
|
|
$
|
151.50
|
|
|
$
|
200.21
|
|
|
$
|
215.00
|
|
|
$
|
182.77
|
|
|
$
|
202.77
|
|
|
$
|
188.12
|
|
ATSI zone
|
|
$
|
120.00
|
|
|
$
|
151.50
|
|
|
$
|
149.98
|
|
|
$
|
164.77
|
|
|
$
|
80.00
|
|
|
$
|
100.00
|
|
|
$
|
76.53
|
|
PPL zone
|
|
$
|
120.00
|
|
|
$
|
151.50
|
|
|
$
|
75.00
|
|
|
$
|
164.77
|
|
|
$
|
80.00
|
|
|
$
|
100.00
|
|
|
$
|
86.04
|
|
(1)
|
Planning Year 2020-2021 includes DEOK zone which broke out from RTO zone at $130.00 per MW-day.
|
|
|
2017-2018
|
|
2018-2019
|
|
2019-2020
|
|
2020-2021
|
Legacy/Base auction capacity sold, net (MW)
|
|
3,480
|
|
1,960
|
|
1,639
|
|
—
|
CP auction capacity sold, net (MW)
|
|
6,666
|
|
7,487
|
|
8,073
|
|
8,467
|
Bilateral capacity sold, net (MW)
|
|
2
|
|
295
|
|
200
|
|
200
|
Total segment capacity sold, net (MW)
|
|
10,148
|
|
9,742
|
|
9,912
|
|
8,667
|
Average price per MW-day
|
|
$142.22
|
|
$181.78
|
|
$132.09
|
|
$134.19
|
|
|
2017
|
|
2018
|
|
2019 to 2021
|
Generation volumes hedged (1)
|
|
91%
|
|
41%
|
|
7%
|
(1)
|
Excludes volumes subject to tolling agreements.
|
|
|
Winter 2016-2017
|
|
Summer 2017
|
Price per kW-month
|
|
$0.75
|
|
$3.00
|
|
|
Summer 2017
|
|
Winter 2017-2018
|
|
Summer 2018
|
|
Winter 2018-2019
|
|
Summer 2019
|
|
Winter 2019-2020
|
|
Summer 2020
|
Auction capacity sold (MW)
|
|
66
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Bilateral capacity sold (MW)
|
|
868
|
|
930
|
|
670
|
|
380
|
|
255
|
|
118
|
|
50
|
Total capacity sold (MW)
|
|
934
|
|
930
|
|
670
|
|
380
|
|
255
|
|
118
|
|
50
|
Average price per kW-month
|
|
$3.39
|
|
$2.23
|
|
$3.50
|
|
$3.00
|
|
$3.39
|
|
$3.40
|
|
$3.45
|
|
|
2016-2017
|
|
2017-2018
|
|
2018-2019
|
|
2019-2020
|
|
2020-2021
|
Price per kW-month
|
|
$3.15
|
|
$7.03
|
|
$9.55
|
|
$7.03
|
|
$5.30
|
|
|
2017-2018
|
|
2018-2019
|
|
2019-2020
|
|
2020-2021
|
Auction capacity sold (MW)
|
|
3,435
|
|
3,471
|
|
3,515
|
|
3,595
|
Bilateral capacity sold (MW)
|
|
148
|
|
91
|
|
45
|
|
—
|
Total capacity sold (MW)
|
|
3,583
|
|
3,562
|
|
3,560
|
|
3,595
|
Average price per kW-month
|
|
$6.98
|
|
$10.08
|
|
$7.01
|
|
$5.38
|
|
|
2017
|
|
2018
|
|
2019 to 2021
|
Generation volumes hedged
|
|
79%
|
|
63%
|
|
7%
|
Coal requirements contracted
|
|
100%
|
|
—%
|
|
—%
|
Coal requirements priced
|
|
100%
|
|
—%
|
|
—%
|
Coal transportation requirements contracted
|
|
100%
|
|
100%
|
|
—%
|
|
|
2017
|
|
2018
|
|
2019 to 2021
|
Generation volumes hedged
|
|
78%
|
|
64%
|
|
7%
|
Coal requirements contracted
|
|
100%
|
|
87%
|
|
53%
|
Coal requirements priced
|
|
100%
|
|
87%
|
|
—%
|
Coal transportation requirements contracted
|
|
100%
|
|
98%
|
|
96%
|
|
|
2017
|
|
2018
|
|
2019 to 2021
|
Generation volumes hedged
|
|
78%
|
|
49%
|
|
22%
|
Coal requirements contracted
|
|
100%
|
|
50%
|
|
27%
|
Coal requirements priced
|
|
85%
|
|
45%
|
|
—%
|
Coal transportation requirements contracted
|
|
100%
|
|
100%
|
|
100%
|
|
|
2017-2018
|
Price per MW-day
|
|
$1.50
|
|
|
2017-2018
|
|
2018-2019
|
|
2019-2020
|
|
2020-2021
|
MISO Segment:
|
|
|
|
|
|
|
|
|
Bilateral capacity sold in MISO (MW)
|
|
1,075
|
|
242
|
|
185
|
|
185
|
Legacy/Base auction capacity sold in PJM (MW)
|
|
207
|
|
—
|
|
—
|
|
—
|
CP auction capacity sold in PJM (MW)
|
|
—
|
|
—
|
|
—
|
|
38
|
Total MISO segment capacity sold (MW)
|
|
1,282
|
|
242
|
|
185
|
|
223
|
Average price per kW-month
|
|
$2.97
|
|
$2.68
|
|
$2.60
|
|
$2.65
|
|
|
|
|
|
|
|
|
|
IPH Segment:
|
|
|
|
|
|
|
|
|
Bilateral capacity sold in MISO (MW)
|
|
2,350
|
|
1,943
|
|
918
|
|
789
|
Legacy/Base auction capacity sold in PJM (MW)
|
|
365
|
|
—
|
|
260
|
|
—
|
CP auction capacity sold in PJM (MW)
|
|
472
|
|
835
|
|
356
|
|
406
|
Total IPH segment capacity sold (MW)
|
|
3,187
|
|
2,778
|
|
1,534
|
|
1,195
|
Average price per kW-month
|
|
$4.42
|
|
$4.92
|
|
$4.00
|
|
$4.16
|
|
|
2017
|
|
2018
|
|
2019 to 2021
|
Generation volumes hedged
|
|
57%
|
|
—%
|
|
—%
|
|
|
Remainder of 2017
|
|
2018
|
|
2019
|
Bilateral capacity sold (Avg. MW)
|
|
856
|
|
420
|
|
850
|
(amounts in millions)
|
|
Less than
1 Year |
|
1 - 3 Years
|
|
3 - 5 Years
|
|
More than
5 Years |
|
Total
|
||||||||||
ELG expenditures (1)
|
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
155
|
|
|
$
|
38
|
|
|
$
|
245
|
|
(1)
|
Projections have not been adjusted to reflect the pending AES transaction. Please read
Note 3—Acquisitions and Divestitures
and
Note 10—Joint Ownership of Generating Facilities
for further discussion.
|
(amounts in millions)
|
|
As of and for the Six Months Ended June 30, 2017
|
||
Fair value of portfolio at December 31, 2016
|
|
$
|
6
|
|
Risk management gains recognized through the statement of operations in the period, net
|
|
9
|
|
|
Contracts realized or otherwise settled during the period
|
|
(8
|
)
|
|
Acquired derivatives
|
|
9
|
|
|
Change in collateral/margin netting
|
|
(8
|
)
|
|
Fair value of portfolio at June 30, 2017
|
|
$
|
8
|
|
(amounts in millions)
|
|
Total
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
||||||||||||||
Market quotations (1)(2)
|
|
$
|
(36
|
)
|
|
$
|
(24
|
)
|
|
$
|
(16
|
)
|
|
$
|
(8
|
)
|
|
$
|
(1
|
)
|
|
$
|
3
|
|
|
$
|
10
|
|
Prices based on models (2)
|
|
(2
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||||||
Total (3)
|
|
$
|
(38
|
)
|
|
$
|
(26
|
)
|
|
$
|
(19
|
)
|
|
$
|
(7
|
)
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
10
|
|
(3)
|
Excludes
$46 million
of broker margin that has been netted against Risk management liabilities in our unaudited consolidated balance sheets. Please read
Note 5—Risk Management Activities, Derivatives and Financial Instruments
for further discussion.
|
•
|
beliefs and assumptions about weather and general economic conditions;
|
•
|
beliefs, assumptions, and projections regarding the demand for power, generation volumes, and commodity pricing, including natural gas prices and the timing of a recovery in power market prices, if any;
|
•
|
beliefs and assumptions about market competition, generation capacity, and regional supply and demand characteristics of the wholesale and retail power markets, including the anticipation of plant retirements and higher market pricing over the longer term;
|
•
|
sufficiency of, access to, and costs associated with coal, fuel oil, and natural gas inventories and transportation thereof;
|
•
|
the effects of, or changes to the power and capacity procurement processes in the markets in which we operate;
|
•
|
expectations regarding, or impacts of, environmental matters, including costs of compliance, availability and adequacy of emission credits, and the impact of ongoing proceedings and potential regulations or changes to current regulations, including those relating to climate change, air emissions, cooling water intake structures, coal combustion byproducts, and other laws and regulations that we are, or could become, subject to, which could increase our costs, result in an impairment of our assets, cause us to limit or terminate the operation of certain of our facilities, or otherwise have a negative financial effect;
|
•
|
beliefs about the outcome of legal, administrative, legislative, and regulatory matters, including any impacts from the change in administration to these matters;
|
•
|
projected operating or financial results, including anticipated cash flows from operations, revenues, and profitability;
|
•
|
our focus on safety and our ability to operate our assets efficiently so as to capture revenue generating opportunities and operating margins;
|
•
|
our ability to mitigate forced outage risk, including managing risk associated with CP in PJM and performance incentives in ISO-NE;
|
•
|
our ability to optimize our assets through targeted investment in cost effective technology enhancements;
|
•
|
the effectiveness of our strategies to capture opportunities presented by changes in commodity prices and to manage our exposure to energy price volatility;
|
•
|
efforts to secure retail sales and the ability to grow the retail business;
|
•
|
efforts to identify opportunities to reduce congestion and improve busbar power prices;
|
•
|
ability to mitigate impacts associated with expiring RMR and/or capacity contracts;
|
•
|
expectations regarding our compliance with the Credit Agreement, including collateral demands, interest expense, any applicable financial ratios, and other payments;
|
•
|
expectations regarding performance standards and capital and maintenance expenditures;
|
•
|
the timing and anticipated benefits to be achieved through our company-wide improvement programs, including our PRIDE initiative;
|
•
|
expectations regarding strengthening the balance sheet, managing debt maturities and improving Dynegy’s leverage profile;
|
•
|
expectations, timing and benefits of the AES transaction;
|
•
|
efforts to divest assets and the associated timing of such divestitures, and anticipated use of proceeds from such divestitures;
|
•
|
anticipated timing, outcome, and impact of expected retirements;
|
•
|
beliefs about the costs and scope of the ongoing demolition and site remediation efforts; and
|
•
|
expectations regarding the synergies, anticipated benefits and FERC mitigation efforts resulting from the ENGIE Acquisition.
|
(amounts in millions)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
One day VaR—95 percent confidence level
|
|
$
|
14
|
|
|
$
|
38
|
|
One day VaR—99 percent confidence level
|
|
$
|
20
|
|
|
$
|
53
|
|
Average VaR—95 percent confidence level for the rolling twelve months ended
|
|
$
|
16
|
|
|
$
|
14
|
|
(amounts in millions)
|
|
Investment
Grade Quality
|
|
Non-Investment Grade Quality
|
|
Total
|
||||||
Type of Business:
|
|
|
|
|
|
|
|
|||||
Financial institutions
|
|
$
|
37
|
|
|
$
|
2
|
|
|
$
|
39
|
|
Oil and gas producers
|
|
9
|
|
|
—
|
|
|
9
|
|
|||
Utility and power generators
|
|
17
|
|
|
—
|
|
|
17
|
|
|||
Commercial/industrial/end users
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Total
|
|
$
|
64
|
|
|
$
|
2
|
|
|
$
|
66
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Interest rate swaps (in millions of U.S. dollars)
|
|
$
|
1,965
|
|
|
$
|
769
|
|
Fixed interest rate paid (percent)
|
|
2.38
|
%
|
|
3.19
|
%
|
Exhibit
Number
|
|
Description
|
*2.1
|
|
Asset Purchase Agreement dated April 21, 2017, by and among Dynegy Zimmer, LLC, Dynegy Miami Fort, LLC, AES Ohio Generation, LLC and The Dayton Power and Light Company
(incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of Dynegy Inc. filed on April 24, 2017 File No. 001-33443).
|
*2.2
|
|
Membership Interest Purchase Agreement, dated as of July 10, 2017, by and between Dynegy Inc. and Bruce Power, LLC
(incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of Dynegy Inc. filed on July 12, 2017 File No. 001-33443).
|
*2.3
|
|
Purchase and Sale Agreement, dated July 10, 2017, by and among Dynegy Resources Generating Holdco, LLC, ANP Funding I, LLC and Marco DM Holdings, L.L.C.
(incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of Dynegy Inc. filed on July 13, 2017 File No. 001-33443).
|
10.1
|
|
Second Amendment Agreement, dated April 21, 2017, to the Letter of Credit and Reimbursement Agreement by and between Illinois Power Marketing Company and MUFG Union Bank, N.A.
(incorporated by reference to Exhibit 10.9 to the Quarterly Report on Form 10-Q for the Quarter ended March 31, 2017 of Dynegy Inc. File No. 001-33443).
|
**10.2
|
|
|
**31.1
|
|
|
**31.2
|
|
|
†32.1
|
|
|
†32.2
|
|
|
**101.INS
|
|
XBRL Instance Document
|
**101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
**101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
**101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
**101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
**101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
**
|
Filed herewith.
|
*
|
Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Dynegy will furnish the omitted schedules and exhibits to the Securities and Exchange Commission upon request by the Commission.
|
†
|
Pursuant to Securities and Exchange Commission Release No. 33-8238, this certification will be treated as “accompanying” this report and not “filed” as part of such report for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liability of Section 18 of the Exchange Act, and this certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.
|
|
|
|
DYNEGY INC.
|
|
|
|
|
Date:
|
August 4, 2017
|
By:
|
/s/ CLINT C. FREELAND
|
|
|
|
Clint C. Freeland
Executive Vice President and Chief Financial Officer
|
Americas 93041309 (2K)
|
|
|
i.
|
The reference to the phrase “Effective Date” in clause (e) and clause (f) of such Article shall mean the “Second Amendment Effective Date”;
|
ii.
|
The reference to “December 31, 2013” in clause (f) of such Article shall mean “December 31, 2016” and the reference to “March 31, 2014” in such clause (f) shall mean “March 31, 2017”; and
|
iii.
|
The reference to “December 31, 2013” in clause (g) of such Article shall mean “December 31, 2017.”
|
Americas 93041309 (2K)
|
|
|
By:
|
/s/ Kimberly Peck
Name: Kimberly Peck Title: Assistant Treasurer |
Americas 93041309 (2K)
|
|
|
By:
|
/s/ Robert Trevena
Name: Robert Trevena Title: Division Director |
By:
|
/s/ Nathan Booker
Name: Nathan Booker Title: Division Director |
Americas 93041309 (2K)
|
|
|
1.
|
I have reviewed this report on Form 10-Q of Dynegy Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
August 4, 2017
|
By:
|
/s/ R
OBERT
C
.
F
LEXON
|
|
|
|
Robert C. Flexon
President and Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-Q of Dynegy Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
August 4, 2017
|
By:
|
/s/ C
LINT
C. F
REELAND
|
|
|
|
Clint C. Freeland
Executive Vice President and Chief Financial Officer
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.
|
Date:
|
August 4, 2017
|
By:
|
/s/ ROBERT C. FLEXON
|
|
|
|
Robert C. Flexon
President and Chief Executive Officer
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.
|
Date:
|
August 4, 2017
|
By:
|
/s/ C
LINT
C. F
REELAND
|
|
|
|
Clint C. Freeland
Executive Vice President and Chief Financial Officer
|