Vistra Corp (VST) 2022 Q2 法說會逐字稿

Good day, and welcome to the Q2 2022 Vistra Earnings Conference Call. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 2022 年第二季度瑞致達收益電話會議。 （操作員說明）今天的演示結束後，將有機會提問。 （操作員說明）請注意正在記錄此事件。

I would now like to turn the conference over to Meagan Horn, VP Investor Relations. Please go ahead.

我現在想將會議轉交給投資者關係副總裁 Meagan Horn。請繼續。

Thank you, and good morning. Welcome to Vistra's investor webcast discussing second quarter 2022 results, which is being broadcast live from the Investor Relations section of our website at www.vistracorp.com. Also available on our website are copies of today's investor presentation, our Form 10-Q and the related press release.

謝謝你，早上好。歡迎收看瑞致達投資者網絡直播，討論 2022 年第二季度的業績，該視頻將在我們網站 www.vistracorp.com 的投資者關係部分進行現場直播。我們網站上還提供今天的投資者介紹、我們的 10-Q 表格和相關新聞稿的副本。

Joining me for today's call are Jim Burke, our President and Chief Executive Officer; and Kris Moldovan, our Executive Vice President and Chief Financial Officer. We have a few additional senior executives present to address questions during the second part of today's call as necessary.

和我一起參加今天電話會議的還有我們的總裁兼首席執行官 Jim Burke；和我們的執行副總裁兼首席財務官 Kris Moldovan。在今天電話會議的第二部分，我們有一些額外的高級管理人員出席，以便在必要時解決問題。

Before we begin our presentation, I encourage all listeners to review the safe harbor statements included on Slide 2 in the investor presentation on our website that explain the risks of forward-looking statements, the limitations of certain industry and market data included in the presentation, and the use of non-GAAP financial measures.

在開始我們的演示之前，我鼓勵所有聽眾查看我們網站上投資者演示中幻燈片 2 中包含的安全港聲明，這些聲明解釋了前瞻性聲明的風險、演示中包含的某些行業和市場數據的限制，以及使用非公認會計原則財務措施。

Today's discussion will contain forward-looking statements, which are based on assumptions we believe to be reasonable only as of today's date. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected or implied. We assume no obligation to update our forward-looking statements.

今天的討論將包含前瞻性陳述，這些陳述基於我們認為僅在今天才合理的假設。此類前瞻性陳述受某些風險和不確定性的影響，可能導致實際結果與預測或暗示的結果存在重大差異。我們不承擔更新我們的前瞻性陳述的義務。

Further, today's press release, slide presentation and discussions on this call will include certain non-GAAP financial measures. For such measures, reconciliations to the most directly comparable GAAP measures are provided in the press release and in the appendix to the investor presentation.

此外，今天關於本次電話會議的新聞稿、幻燈片演示和討論將包括某些非公認會計準則財務措施。對於此類措施，新聞稿和投資者介紹的附錄中提供了與最直接可比的 GAAP 措施的對賬。

I will now turn the call over to our new CEO, Jim Burke, to kick off our discussion.

我現在將把電話轉給我們的新任首席執行官 Jim Burke，開始我們的討論。

Thank you, Meagan, and good morning to everyone. I am excited and eager to talk with all of you as I take on this new role for Vistra. Over the past few months, I've been asked what I envision for Vistra's path forward.

謝謝你，梅根，大家早上好。在我擔任瑞致達的新角色時，我很興奮並渴望與大家交談。在過去的幾個月裡，有人問我我對瑞致達的前進道路有何設想。

Accordingly, turning to Slide 5, before I discuss our second quarter results, I would first like to reinforce a few of my thoughts on Vistra's strategic direction and top priorities. I continue to remain confident in our short-term and long-term value proposition precisely because we intend to remain focused on the 4 key strategic priorities we initially defined in the third quarter of 2021.

因此，轉向幻燈片 5，在我討論我們的第二季度業績之前，我首先想強調我對瑞致達戰略方向和首要任務的一些想法。我繼續對我們的短期和長期價值主張充滿信心，正是因為我們打算繼續專注於我們最初在 2021 年第三季度確定的 4 個關鍵戰略重點。

As we've shared in the past, Vistra is well positioned for the long term during this energy transition. In addition to ensuring that our customers and our communities have the power they need, our integrated approach enables us to deliver strong financial and operational performance, particularly in volatile commodity environments through the operational excellence and expertise of our generation, retail and commercial teams.

正如我們過去所分享的，瑞致達在這次能源轉型中長期處於有利地位。除了確保我們的客戶和我們的社區擁有他們需要的權力之外，我們的綜合方法使我們能夠提供強大的財務和運營績效，特別是通過我們一代、零售和商業團隊的卓越運營和專業知識，在動蕩的商品環境中。

As part of this integrated business, we are continuing to execute on the comprehensive hedging strategy that we announced last quarter, which is locking in significant future year earnings potential. This effort is supported by a high-performing generation team and a customer-focused retail team experienced in managing counts, margins and customer experience, and both teams are supported by a strong commercial team that captures market opportunities and manages risk in a dynamic marketplace.

作為這一綜合業務的一部分，我們將繼續執行我們上個季度宣布的全面對沖策略，該策略鎖定了未來一年的巨大盈利潛力。這項工作得到了高績效的一代團隊和以客戶為中心的零售團隊的支持，他們在管理數量、利潤和客戶體驗方面經驗豐富，並且兩個團隊都得到了強大的商業團隊的支持，他們在動態市場中捕捉市場機會並管理風險。

Second, it is fundamental to a business that manages through volatile commodity markets to have the financial flexibility to hedge both fuel procurement and power sales for our fleet and for customers. We remain committed to a strong balance sheet and an ample liquidity position.

其次，對於通過動蕩的商品市場進行管理的企業而言，擁有財務靈活性以對沖我們的車隊和客戶的燃料採購和電力銷售至關重要。我們仍然致力於保持強勁的資產負債表和充足的流動性頭寸。

As Kris will cover later, we anticipate paying down a significant amount of debt in the second half of this year as our 2022 hedges settle and the corresponding cash collateral is returned. At year-end, we expect our net leverage ratio to be approximately 3x based on the range of ongoing operations adjusted EBITDA we expect in 2023.

正如 Kris 稍後將介紹的那樣，隨著我們 2022 年的對沖結算和相應的現金抵押品歸還，我們預計在今年下半年償還大量債務。在年底，我們預計我們的淨槓桿率約為 3 倍，基於我們預計 2023 年的持續經營調整後 EBITDA 範圍。

Third, we are delivering on our capital allocation plan that prioritizes a significant return of capital to our shareholders through 2026. We remain committed to paying aggregate dividends of approximately $300 million per year with the per share amount increasing as we repurchase our shares. We continue to believe that share repurchases provide an efficient, attractive means to return capital to our shareholders. We are executing on our $2 billion share repurchase program on an accelerated basis, having completed approximately 80% to date and expect to complete the balance before year-end.

第三，我們正在實施我們的資本分配計劃，該計劃優先考慮到 2026 年為股東帶來大量資本回報。我們仍然致力於每年支付約 3 億美元的總股息，隨著我們回購股票，每股金額會增加。我們仍然相信，股票回購提供了一種高效、有吸引力的方式來向我們的股東返還資本。我們正在加速執行 20 億美元的股票回購計劃，迄今已完成約 80%，預計將在年底前完成餘額。

Accordingly, we're pleased to announce that our Board has authorized an incremental $1.25 billion for share repurchases effective immediately, which brings our cumulative authorization to $3.25 billion and the remaining amount available for repurchases to approximately $1.65 billion. We expect to complete the full authorization by the end of 2023.

因此，我們很高興地宣布，我們的董事會已授權增加 12.5 億美元的股票回購，立即生效，這使我們的累計授權達到 32.5 億美元，剩餘的可用於回購的金額約為 16.5 億美元。我們預計在 2023 年底前完成全部授權。

As we deliver on our earnings potential, we will revisit the size of the share repurchase program on a regular basis. Finally, we've made great progress on the build-out of our Vistra Zero platform, which we expect to grow primarily by utilizing cost-effective third-party capital. I'll speak to updates on Vistra Zero in more detail momentarily.

隨著我們實現盈利潛力，我們將定期重新審視股票回購計劃的規模。最後，我們在構建 Vistra Zero 平台方面取得了巨大進展，我們預計該平台將主要通過利用具有成本效益的第三方資本來實現增長。稍後我將更詳細地介紹有關瑞致達零的更新。

I am committed to the execution of our strategic priorities as I firmly believe that our successful execution of these priorities will enable Vistra to deliver sustainable long-term value for all of our stakeholders. Now turning to Slide 6 for our second quarter results.

我致力於執行我們的戰略重點，因為我堅信我們成功執行這些重點將使瑞致達能夠為我們所有的利益相關者提供可持續的長期價值。現在轉向幻燈片 6 了解我們的第二季度業績。

We achieved $761 million of adjusted EBITDA from ongoing operations. Our Retail segment grew ERCOT residential customer counts in the quarter and year-over-year. In fact, our flagship TXU Energy brand had its best quarter residential counts performance in nearly 15 years while achieving our target margins in a dynamic market. This highlights our expertise as an integrated energy company to acquire and retain customers through volatile and high-priced commodity cycles.

我們從持續運營中實現了 7.61 億美元的調整後 EBITDA。我們的零售部門在本季度和同比增長了 ERCOT 住宅客戶數量。事實上，我們的旗艦 TXU Energy 品牌擁有近 15 年來最好的季度住宅數量表現，同時在充滿活力的市場中實現了我們的目標利潤率。這凸顯了我們作為一家綜合能源公司的專業知識，可以通過波動和高價的商品週期來獲取和留住客戶。

Our unique product offerings and multi-brand and channel strategy, combined with our commercial team's expertise in managing risk, drove this success. Our Generation segment similarly performed above expectations, achieving commercial availability of 95%, a strong performance, especially considering the unseasonably warmer weather experienced in Texas in the second quarter. The teams worked diligently to perform regular maintenance on an expedited basis and in some cases, truncated schedules to ensure the plants were available to the grid during the heatwaves experienced in the latter half of the second quarter.

我們獨特的產品供應和多品牌和渠道戰略，加上我們商業團隊在風險管理方面的專業知識，推動了這一成功。我們的發電部門的表現同樣高於預期，實現了 95% 的商業可用性，這是一個強勁的表現，特別是考慮到第二季度德克薩斯州經歷了異常溫暖的天氣。這些團隊努力工作，以加快進行定期維護，在某些情況下，縮短了時間表，以確保在第二季度後半段經歷的熱浪期間，電廠可以接入電網。

We are reaffirming today our previously announced guidance of adjusted EBITDA from ongoing operations of $2.81 billion to $3.31 billion and adjusted free cash flow before growth from ongoing operations of $2.07 billion to $2.57 billion. We don't typically update current year guidance until our third quarter earnings discussion, but favorable weather and strong performance in our Generation and Retail segments provide increased confidence that our 2022 outlook is tracking above the midpoint of guidance.

我們今天重申我們之前宣布的調整後 EBITDA 指引，從持續運營的 28.1 億美元增至 33.1 億美元，調整後的自由現金流從持續運營的 20.7 億美元增至 25.7 億美元。在第三季度收益討論之前，我們通常不會更新本年度指引，但有利的天氣和發電和零售部門的強勁表現增強了我們對 2022 年展望高於指引中點的信心。

Of course, the remaining summer months are important across the country for us, so we are focused on proactively maintaining our fleet during times of lower demand to avoid unplanned outages as much as possible. We understand that execution is key to delivering the full value we believe possible in this environment.

當然，剩餘的夏季月份對我們來說在全國范圍內都很重要，因此我們專注於在需求較低的時候主動維護我們的機隊，以盡可能避免計劃外的停機。我們明白，執行是在這種環境下實現我們認為可能的全部價值的關鍵。

Turning to Slide 7. As we discussed in the first quarter, we are currently experiencing a highly favorable pricing environment. We've used this opportunity to continue to execute on the comprehensive hedging strategy we previously discussed. As a result of our comprehensive hedging strategy, Vistra is now over 60% hedged across the years 2023 to 2025 with 2023 now hedged at approximately 80%.

轉到幻燈片 7。正如我們在第一季度所討論的，我們目前正在經歷一個非常有利的定價環境。我們利用這個機會繼續執行我們之前討論過的綜合對沖策略。由於我們全面的對沖策略，瑞致達在 2023 年至 2025 年期間的對沖率現已超過 60%，而 2023 年的對沖率約為 80%。

Last quarter, we stated that given the marks as of April 29, we anticipated a risk-adjusted midpoint opportunity in the range of $3.5 billion to $3.7 billion for the years 2023 through 2025.

上個季度，我們表示，鑑於截至 4 月 29 日的分數，我們預計 2023 年至 2025 年的風險調整中點機會在 35 億美元至 37 億美元之間。

Curves moved up considerably in May and early June before coming off in late June with the drop in natural gas prices. For 2023, when comparing where we were as of April 29 and rolling that forward to July 29, overall, the curves are in a similar place despite the volatility we've seen over the past 3 months.

曲線在 5 月和 6 月初大幅上升，然後在 6 月下旬隨著天然氣價格的下跌而下降。對於 2023 年，當比較我們截至 4 月 29 日的位置並將其向前推至 7 月 29 日時，總體而言，儘管我們在過去 3 個月中看到了波動，但曲線處於相似的位置。

However, for 2024 and 2025 since April 29, as the graphs indicate, both power and gas curves have continued moving up. As our hedge percentages have increased, our confidence in this earnings potential has grown. And more than that, we continue to believe this range could be on the conservative side. Of course, given that we are not fully hedged, there remains a significant range around this earnings potential, especially in '24 and '25.

然而，如圖所示，自 4 月 29 日以來的 2024 年和 2025 年，功率和氣體曲線均繼續上升。隨著我們對沖百分比的增加，我們對這種盈利潛力的信心也在增強。不僅如此，我們仍然相信這個範圍可能是保守的。當然，鑑於我們沒有完全對沖，這種盈利潛力仍有很大的波動範圍，尤其是在 24 年和 25 年。

Looking ahead, assuming the forward curves continue to hold or improve, you can expect us to continue to execute on this comprehensive hedging strategy to lock in more value while maintaining sufficient generation [length as] insurance against the unforeseen.

展望未來，假設遠期曲線繼續保持或改善，您可以預期我們將繼續執行這一全面的對沖策略，以鎖定更多價值，同時保持足夠的發電量 [長度作為] 對不可預見的情況的保險。

As discussed last quarter, our hedging strategy requires ample liquidity for collateral postings. We continue to proactively manage our liquidity requirements in a way that allows us to remain confident that we can execute this hedging strategy and the capital allocation plan in tandem. Kris will go into more detail on our liquidity management activities later in the call.

正如上個季度所討論的，我們的對沖策略需要充足的流動性來提供抵押品。我們繼續積極主動地管理我們的流動性需求，讓我們對能夠同時執行這種對沖策略和資本分配計劃充滿信心。 Kris 將在稍後的電話會議中詳細介紹我們的流動性管理活動。

Turning now to Slide 8. I wanted to provide a brief update on our Vistra Zero growth trajectory and how we are positioning Vistra to capitalize on this significant opportunity. This past quarter, we returned both phases of our Moss Landing energy storage facility to service with over 98% of its maximum capacity on the expected schedule and ahead of California's hot summer months. We successfully restored and addressed root cause concerns during this timeframe, and we anticipate the final few megawatts to be restored by the fall.

現在轉到幻燈片 8。我想簡要介紹一下我們的瑞致達零增長軌跡，以及我們如何定位瑞致達以利用這一重要機會。上個季度，我們按照預期的時間表和加州炎熱的夏季月份之前，將 Moss Landing 儲能設施的兩個階段恢復到最大容量的 98% 以上。在此期間，我們成功地恢復並解決了根本原因問題，我們預計最後幾兆瓦將在秋季恢復。

In addition, we began construction on the 350-megawatt Phase III expansion of our Moss Landing facility, which we expect to be online by June 2023. In Illinois, we bid in a competitive process. And in May, were selected by the Illinois Power Agency to provide over 460,000 annual renewable energy credits, or RECs, over the course of 20 years. The contracted sale of these RECs will serve to provide stability to revenue streams of our coal to solar projects.

此外，我們開始建設 Moss Landing 設施的 350 兆瓦三期擴建工程，我們預計該設施將於 2023 年 6 月上線。在伊利諾伊州，我們在競爭過程中競標。並於 5 月被伊利諾伊州電力局選中，在 20 年內提供超過 460,000 個年度可再生能源信用額度（RECs）。這些 REC 的合同銷售將有助於為我們的煤炭到太陽能項目的收入來源提供穩定性。

In June, we were also awarded energy storage grants at our Joppa, Havana and Edwards sites to be received over 10 years. We expect to bring our Illinois projects online in the 2024 timeframe ahead of the required dates for the awarded contracts.

6 月，我們還在 Joppa、Havana 和 Edwards 工廠獲得了為期 10 年的儲能補助金。我們預計將在 2024 年的時間框架內將我們的伊利諾伊州項目上線，在授予合同的規定日期之前。

Finally, our development projects in Texas continued to make great progress as well. In April, we announced that our 50-megawatt solar facility Brightside was online. This was followed by announcements in May that our 260-megawatt energy storage facility at DeCordova was online. And in June, our 108-megawatt ERCOT solar facility, Emerald Grove, was online. We now have 608 megawatts for Vistra Zero online of solar and energy storage serving the ERCOT grid in addition, of course, to our Comanche Peak nuclear facility.

最後，我們在德克薩斯州的開發項目也繼續取得巨大進展。 4 月，我們宣布我們的 50 兆瓦太陽能設施 Brightside 上線。隨後在 5 月宣布，我們位於 DeCordova 的 260 兆瓦儲能設施已上線。 6 月，我們的 108 兆瓦 ERCOT 太陽能設施 Emerald Grove 上線。我們現在擁有 608 兆瓦的 Vistra Zero 在線太陽能和儲能係統，為 ERCOT 電網提供服務，當然還有我們的 Comanche Peak 核設施。

Our teams did an excellent job of delivering these projects in Texas as well as returning Phases 1 and 2 of our Moss Landing facility to normal operation in California. Some of our early-stage projects that we are evaluating are facing potential impacts from supply chain constraints and inflation. We prudently reevaluate the business cases of these projects on a regular basis.

我們的團隊在德克薩斯州交付這些項目以及將我們的 Moss Landing 設施的第 1 階段和第 2 階段恢復到加利福尼亞的正常運營方面做得非常出色。我們正在評估的一些早期項目正面臨供應鏈限制和通貨膨脹的潛在影響。我們會定期審慎地重新評估這些項目的商業案例。

For example, we have reassessed the timing of certain ERCOT solar projects, and we will move ahead with these projects only if we have confidence in the returns. Since we own these sites and we have the flexibility on timing, this is something we expect to remain dynamic. We are excited about the pipeline and the growth potential of achieving 7.3 gigawatts in Vistra Zero generation online by 2026, but we are also going to remain disciplined on the projects.

例如，我們重新評估了某些 ERCOT 太陽能項目的時間安排，只有在我們對回報有信心的情況下才會推進這些項目。由於我們擁有這些站點並且我們在時間上具有靈活性，因此我們希望保持動態。我們對到 2026 年在線實現 7.3 吉瓦的 Vistra 零發電的管道和增長潛力感到興奮，但我們也將在項目上保持紀律。

Of course, in light of the newly introduced Inflation Reduction Act, it is possible that our Vistra Zero development projects could see enhanced returns. It is certainly a dynamic time in the marketplace and Vistra is extremely well positioned with both a strong outlook on our core generation and retail businesses, but also with Vistra Zero. With that, I will turn the call over to Kris Moldovan, our recently named CFO, to discuss the quarter's financial performance and our capital allocation progress in more detail. Many of you already know Kris well and his track record of successfully driving shareholder value for Vistra, and as of late, his active and effective management of our liquidity position.

當然，鑑於新推出的《減通脹法案》，我們的瑞致達零發展項目有可能獲得更高的回報。這無疑是市場上一個充滿活力的時期，而瑞致達在我們的核心發電和零售業務以及瑞致達零業務方面都處於非常有利的地位。有了這個，我將把電話轉給我們最近任命的首席財務官 Kris Moldovan，以更詳細地討論本季度的財務業績和我們的資本分配進展。你們中的許多人已經很了解 Kris 以及他為瑞致達成功推動股東價值的往績，以及最近他對我們流動性頭寸的積極有效管理。

As background, he practiced as an attorney for over a decade, including gaining significant experience through representing clients in merger and acquisition activity as well as complex financing transactions. Kris has been with Vistra and its predecessor for 16 years and joined the finance team in 2010, where he has focused on some of the most complex financial transactions in our industry. I've had the privilege to work with Chris for many years and could attest personally to his insights and capabilities, and I'm very much looking forward to partnering with him as we take Vistra forward in these exciting times of transition and growth. Kris?

作為背景，他擔任了十多年的律師，包括通過在併購活動以及復雜的融資交易中代表客戶獲得豐富的經驗。 Kris 已在瑞致達及其前身工作了 16 年，並於 2010 年加入財務團隊，專注於我們行業中一些最複雜的金融交易。我有幸與 Chris 共事多年，並且可以親自證明他的洞察力和能力，我非常期待與他合作，因為我們在這些激動人心的過渡和成長時期帶領瑞致達前進。克里斯?

Thank you, Jim. It's an honor to be in the new role and representing Vistra on the call today. While I have met many of the participants on the call in my previous role as the Treasurer of the company, I look forward to getting to know everyone and spending time with each of you in the coming months. I'll turn now to Slide 10.

謝謝你，吉姆。很榮幸能擔任新職務並代表瑞致達參加今天的電話會議。雖然我在之前擔任公司財務主管期間在電話會議上遇到了許多參與者，但我期待在接下來的幾個月裡結識每一個人並與你們每個人共度時光。我現在轉到幻燈片 10。

As Jim noted earlier, Vistra delivered strong financial results during the second quarter with adjusted EBITDA from ongoing operations of approximately $761 million, which was above management's expectations. Retail ended the quarter at $403 million of adjusted EBITDA from ongoing operations. And while this result is $107 million lower than second quarter 2021, it is important to note that this difference is more than accounted for by the amount of onetime self-help initiatives we undertook in the second quarter of 2021 to offset some of the losses we experienced in the preceding quarter. Retail performance this quarter was favorably impacted by warmer weather, strong margins and exceptional residential customer count growth in Texas.

正如 Jim 早些時候指出的，瑞致達在第二季度實現了強勁的財務業績，調整後的 EBITDA 來自持續運營的約 7.61 億美元，高於管理層的預期。零售業在本季度末的持續運營調整後 EBITDA 為 4.03 億美元。儘管這一結果比 2021 年第二季度減少了 1.07 億美元，但重要的是要注意，這一差異遠遠超過了我們在 2021 年第二季度為抵消部分損失而採取的一次性自助舉措的數量。經歷了上一季度。本季度的零售業績受到德克薩斯州天氣變暖、利潤率強勁和住宅客戶數量異常增長的有利影響。

Moving to Generation. Our collective Generation segments ended the quarter with $358 million of adjusted EBITDA from ongoing operations. This result was approximately $14 million above our second quarter 2021 results after adjusting second quarter 2021 to remove the earnings attributable to Zimmer and Joppa, which are now reported in the Asset Closure segment. This increase was driven primarily by favorable prices we experienced in the quarter offset by the ongoing coal constraints the industry continues to experience as well as onetime benefits of self-help initiatives executed in the second quarter of 2021.

轉移到一代。我們的集體發電部門在本季度結束時從正在進行的運營中獲得了 3.58 億美元的調整後 EBITDA。在調整 2021 年第二季度以去除 Zimmer 和 Joppa 的收益後，這一結果比我們 2021 年第二季度的結果高出約 1400 萬美元，這些收益現在在資產關閉部分中報告。這一增長主要是由於我們在本季度經歷的有利價格被行業繼續經歷的持續煤炭限制以及 2021 年第二季度執行的自助計劃的一次性收益所抵消。

Finally, turning to Slide 11. Our strong financial results allow us to continue to favorably execute our capital allocation plan. Specifically, as of August 2, 2022, we have executed approximately $1.6 billion of the original $2 billion authorization, repurchasing approximately 70.5 million shares or approximately 14.6% of the shares that were outstanding as of November 2021.

最後，轉到幻燈片 11。我們強勁的財務業績使我們能夠繼續有利地執行我們的資本分配計劃。具體而言，截至 2022 年 8 月 2 日，我們已執行了原 20 億美元授權中的約 16 億美元，回購了約 7050 萬股或約 14.6% 的截至 2021 年 11 月已發行股份。

Since we expect to execute the remaining portion of the $2 billion authorization before year-end 2022, as Jim noted, the Board of Directors has authorized an incremental $1.25 billion of share repurchases effective immediately. As such, we have approximately $1.65 billion of aggregate remaining availability for share repurchases under the upsized $3.25 billion authorization, which we expect to execute between now and the end of 2023.

正如吉姆所指出的，由於我們預計在 2022 年底之前執行 20 億美元授權的剩餘部分，因此董事會已授權增加 12.5 億美元的股票回購，立即生效。因此，根據擴大的 32.5 億美元授權，我們有大約 16.5 億美元的剩餘股票回購可用資金，我們預計從現在到 2023 年底執行。

Additionally, the Board recently approved a quarterly dividend to be paid on Vistra's common stock in the amount of $0.184 per share or approximately $75 million in the aggregate payable on September 30, 2022. This is an approximately 23% growth in dividend per share as compared to the dividend paid in the third quarter of 2021.

此外，董事會最近批准了在 2022 年 9 月 30 日支付的瑞致達普通股季度股息，金額為每股 0.184 美元或總計約 7,500 萬美元。與此相比，每股股息增長了約 23%到2021年第三季度支付的股息。

While we are focused on returning capital to our shareholders, we remain steadfastly committed to balance sheet strength, targeting a long-term net leverage ratio below 3x, excluding any nonrecourse debt we raise at Vistra Zero. This year, however, the material increase in forward power prices for the balance of 2022 through 2025, taken together with our increased forward hedging activities to lock in those prices, has resulted in significant increases in our collateral posting obligations and required liquidity to support these obligations.

雖然我們專注於向股東返還資本，但我們仍然堅定地致力於加強資產負債表，目標是長期淨槓桿率低於 3 倍，不包括我們在瑞致達零籌集的任何無追索權債務。然而，今年，2022 年至 2025 年剩餘時間的遠期電力價格大幅上漲，加上我們為鎖定這些價格而增加的遠期對沖活動，導致我們的抵押過帳義務顯著增加，並需要流動性來支持這些義務。

As such, we have actively worked to increase our available liquidity, including issuing $1.5 billion of short-term senior secured notes, in addition to increasing the aggregate commitments under our corporate revolver by $725 million and increasing the aggregate commitments under our commodity-linked revolver by $250 million.

因此，我們積極努力增加我們的可用流動性，包括發行 15 億美元的短期優先擔保票據，此外還將我們的企業左輪手槍的總承諾增加 7.25 億美元，並增加我們與商品掛鉤的左輪手槍的總承諾2.5億美元。

As a result of these proactive transactions, we have significantly increased our available liquidity, which was approximately $4.5 billion as of August 3. Looking forward, as we deliver power against our hedges over the balance of 2022, we expect to see a material return of collateral including a significant amount of the cash we had posted at June 30.

由於這些積極的交易，我們的可用流動性顯著增加，截至 8 月 3 日約為 45 億美元。展望未來，隨著我們在 2022 年剩餘時間內提供對沖的能力，我們預計將看到實質性回報抵押品，包括我們在 6 月 30 日發布的大量現金。

To that end, we anticipate repaying more than $2.5 billion of debt by year-end, including debt outstanding under our revolving credit facilities. Of course, we must continue to prudently balance the timing of these debt repayments against the liquidity needed to support our hedging program. In addition to repaying debt, we will continue to monitor and optimize the amount and sources of liquidity necessary to support our existing hedges as well as any additional hedges we may execute over time.

為此，我們預計到年底償還超過 25 億美元的債務，包括我們循環信貸額度下的未償債務。當然，我們必須繼續謹慎地平衡這些債務償還的時間與支持我們的對沖計劃所需的流動性。除了償還債務外，我們將繼續監控和優化必要的流動性數量和來源，以支持我們現有的對沖以及我們隨著時間的推移可能執行的任何額外對沖。

We said we would focus on execution in 2022 and the efforts of our Generation, Retail and commercial teams in the first 6 months have positioned us well for a successful year. We remain focused on our strategic priorities and look forward to discussing third quarter results and our outlook for the balance of 2022 and for 2023 on our next call.

我們曾說過，我們將在 2022 年專注於執行，而我們的一代、零售和商業團隊在前 6 個月的努力使我們為成功的一年做好了準備。我們仍然專注於我們的戰略重點，並期待在下次電話會議上討論第三季度業績以及我們對 2022 年餘額和 2023 年的展望。

With that, I'll turn the call back over to Jim for a brief wrap-up.

有了這個，我會把電話轉回給 Jim 做一個簡短的總結。

Kris, thank you very much and congratulations on the new role. Turning to Slide 12, I would just like to recap a few key points. First, our integrated model is uniquely positioned to capture long-term value in these dynamic conditions, and we are comprehensively hedging and have locked in over 60% of this value for the period of 2023 to 2025.

Kris，非常感謝你，並祝賀你擔任新角色。轉到幻燈片 12，我想回顧一下幾個關鍵點。首先，我們的集成模型具有獨特的優勢，可以在這些動態條件下捕捉長期價值，我們正在全面對沖，並在 2023 年至 2025 年期間鎖定了該價值的 60% 以上。

We believe we have ample liquidity and balance sheet strength to execute this strategy. Our confidence in our outlook is reinforced by the upsizing of the share repurchase program to $3.25 billion, and we continue to return capital through this program and our $300 million annual dividend.

我們相信我們有充足的流動性和資產負債表實力來執行這一戰略。股票回購計劃擴大至 32.5 億美元，增強了我們對前景的信心，我們繼續通過該計劃和 3 億美元的年度股息返還資本。

Finally, we have made great progress by bringing online over 400 megawatts in new assets in Texas this spring with Vistra Zero while restoring Moss Landing battery operations in California. With our Illinois coal to solar contracts and other pipeline projects, we are excited about our ability to decarbonize our fleet and grow our business. we are tracking ahead of our 60% greenhouse gas emissions reduction target by 2030 for our fleet, and we anticipate Vistra Zero will more than replace the earnings of the retiring coal units and we are doing this with cost-efficient capital. This is an exciting time for Vistra, and we are well positioned for this energy transition to deliver long-term sustainable value for all of our stakeholders.

最後，我們已經取得了巨大進展，今年春天通過 Vistra Zero 在德克薩斯州推出了超過 400 兆瓦的新資產，同時恢復了加利福尼亞州的 Moss Landing 電池運營。通過我們的伊利諾伊州煤炭到太陽能合同和其他管道項目，我們對我們的船隊脫碳和發展業務的能力感到興奮。我們正在跟踪我們的船隊到 2030 年將溫室氣體排放量減少 60% 的目標，我們預計 Vistra Zero 將不僅取代退役煤炭機組的收益，而且我們正在利用具有成本效益的資本來實現這一目標。對於瑞致達來說，這是一個激動人心的時刻，我們已為這一能源轉型做好準備，為我們所有的利益相關者提供長期可持續的價值。

With that, operator, we will open up the line for questions.

有了這個，接線員，我們將打開問題的線路。

(Operator Instructions) The first question comes from Shar Pourreza with Guggenheim Partners.

（操作員說明）第一個問題來自與 Guggenheim Partners 的 Shar Pourreza。

So let me just ask more of a top level and maybe we could start sort of with the capital allocation announcement. It's, obviously, a bit earlier than we expected, but that's a good problem to have. How should we be thinking about the cadence of future updates given the move here? Could we start to see more off-cycle announcements as free cash flow generation for the next 3 years is increasingly locked in with the hedges? I guess what do you mean by "revisit on a regular basis"? And have you and the Board thought about potentially allocating everything you've locked in through '25 all at once?

所以讓我問更多的高層，也許我們可以從資本分配公告開始。顯然，這比我們預期的要早一點，但這是一個很好的問題。考慮到這裡的移動，我們應該如何考慮未來更新的節奏？隨著未來 3 年自由現金流的產生越來越多地被對沖鎖定，我們能否開始看到更多的非週期公告？我想您所說的“定期重訪”是什麼意思？您和董事會是否考慮過一次性分配您鎖定到 25 年的所有內容？

Shar, there's a lot in that question. Let me first start with the idea that we are just past the halfway point 2022 and we feel good about where 2022 is trending. We were working through the buyback program in a fairly expeditious manner. And our next call, obviously, would be early November. So we thought, given where we're tracking in '22, plus the incremental hedging that we've been able to do for '23 through '25, our confidence level was higher. We wanted to keep the momentum in the market from a return of capital standpoint. So we felt comfortable asking for the authorization and the Board was obviously comfortable approving it as a sign that the earnings power of this business has taken a material step up since early this year when we saw the curve start to rise in April.

夏爾，這個問題有很多。首先讓我從這樣一個想法開始，即我們剛剛過去 2022 年的中點，我們對 2022 年的趨勢感覺良好。我們正在以相當迅速的方式完成回購計劃。顯然，我們的下一次電話會議將在 11 月初舉行。所以我們認為，考慮到我們在 22 年跟踪的位置，加上我們在 23 年到 25 年能夠進行的增量對沖，我們的信心水平更高。從資本回報的角度來看，我們希望保持市場的勢頭。因此，我們很樂意請求授權，而董事會顯然很樂意批准它，這表明該業務的盈利能力自今年年初以來已取得實質性進展，當時我們看到曲線在 4 月開始上升。

As far as the frequency of it, I think it's a function of a number of factors. It's a function of what are the market opportunities from the capital standpoint that we could deploy in the base business. We are obviously always even looking for upgrades in our own units, where we can bring in incremental megawatts. For instance, in ERCOT we've operated some of our units to capture some of the prices that we saw this summer.

至於它的頻率，我認為它是多種因素的函數。從資本的角度來看，這是我們可以在基礎業務中部署的市場機會的函數。顯然，我們甚至一直在尋找我們自己的單位的升級，在那裡我們可以帶來增量兆瓦。例如，在 ERCOT，我們運營了一些單位來捕捉我們今年夏天看到的一些價格。

So there's -- on the margin, there's opportunities to deploy on the base business small amounts of capital. Vistra Zero is obviously something that could accelerate some with the IRA that we're talking about here. But I think the main thesis, which is as we get a line of sight to these cash flows, the 60% is still well hedged, but there's still plenty that's not hedged. As that confidence builds, we could continue to update the capital return strategy, and that was the point we tried to make in our comments, and I think we have to just see how the market curves and follow from this point forward in tandem with our hedging strategy.

因此，在邊際上，有機會在基礎業務上部署少量資本。瑞致達零顯然可以通過我們在這裡談論的 IRA 加速一些事情。但我認為主要論點是，當我們看到這些現金流時，60% 仍然被很好地對沖，但仍有很多沒有被對沖。隨著信心的建立，我們可以繼續更新資本回報策略，這就是我們試圖在評論中提出的觀點，我認為我們必須看看市場曲線如何，並從這一點開始與我們的對沖策略。

Got it. Got it. And just on your hedging real quick, I guess, obviously, the backdrop is really strong. There's some perpetuity to it. I guess, why aren't you just hedging everything at this point? Is it just that you can't given the liquidity out in 25 fuel hedging, maybe just a bit of a fundamental view here.

知道了。知道了。我想，就你的對沖來說，很明顯，背景真的很強大。它有一些永恆性。我想，你為什麼不在此時對沖一切？只是你不能在25個燃料對沖中給出流動性嗎，也許這裡只是一點基本面的看法。

Sure. I think you hit a couple of the key points, Shar. The market depth is not as great, clearly, out in 2025 as it is in '23. The liquidity that we have, while it is ample, it does take more liquidity in reserve to be able to hedge that far out. And so you can imagine we've got sort of a downward sloping hedge percentage where '23 is hedged higher as we said, over 80%. '24 is less than that and then '25 is less than that.

當然。我認為你達到了幾個關鍵點，Shar。顯然，2025 年的市場深度並不像 23 年那樣大。我們擁有的流動性雖然充足，但確實需要更多的流動性儲備才能對沖那麼遠。所以你可以想像我們有一種向下傾斜的對沖百分比，正如我們所說，23 年的對沖比例更高，超過 80%。 '24 小於那個值，然後 '25 小於那個值。

It's also we do tandem hedging, where we want to make sure that we've got the fuel to back up the hedging for our generation assets and some of the fuel procurement out that far in certain regions is not as deep. And so we take all that into consideration. And also, we're not sure in some of these that full value are still realized. These curves have moved up in '24, '25, but there may still be some room to run. And so it's okay for us to have a little bit of exposure to that, too.

這也是我們進行串聯對沖，我們希望確保我們有燃料來支持我們的發電資產的對沖，並且在某些地區那麼遠的一些燃料採購沒有那麼深。因此，我們將所有這些都考慮在內。而且，我們不確定其中一些是否仍能實現全部價值。這些曲線在 24 和 25 年有所上升，但可能仍有一些運行空間。因此，我們也可以稍微接觸一下。

Got it. And then lastly, Jim, for me is one of your peers recently mentioned that they were considering maybe contracting for new build gas in ERCOT, right? I guess do you agree the market needs more? Do you guys have a fundamental view, I guess, over the next 5 years in Texas. The CDR says one thing, but the real-time market says another.

知道了。最後，吉姆，對我來說，你的一位同行最近提到他們正在考慮在 ERCOT 簽訂新的建造天然氣合同，對嗎？我想你同意市場需要更多嗎？我猜你們對德克薩斯州未來 5 年有基本看法嗎？ CDR 說的是一回事，但實時市場說的是另一回事。

Yes. Shar, great question. That's actually hitting on the bigger topic about ERCOT market reform and how is ERCOT going to sufficiently incentivize not only the potential for new assets to come online that are dispatchable, be it thermal or battery, but also retain the assets that it actually has on the grid that were needed multiple times from May through July.

是的。夏爾，好問題。這實際上觸及了關於 ERCOT 市場改革的更大話題，以及 ERCOT 如何充分激勵不僅可調度的新資產上線的潛力，無論是熱能還是電池，而且保留它實際擁有的資產從 5 月到 7 月多次需要的網格。

I think as the market and the CDR indicates more [intermediary] resources are clearly in the queue, and they've been coming in a fairly robust fashion. But that means that all the other assets are dispatching at times against marginal cost assets that could be dispatching at 0 or even negative prices.

我認為隨著市場和 CDR 表明更多 [中介] 資源顯然在隊列中，並且它們一直以相當強勁的方式出現。但這意味著所有其他資產有時都在調度，而邊際成本資產可能以 0 甚至負價格調度。

So I think ERCOT reform is going to have to consider how does the revenue mechanism for dispatchable assets have a factor that considers their availability and their reliability. And that may be a payment mechanism that separate and apart can simply when you dispatch for energy purposes. That hadn't been figured out yet. And so I do think there's a worry that the only thing that has the incentives and that's primarily because of federal incentives to be billed are more the intermittent resources.

因此，我認為 ERCOT 改革將不得不考慮可調度資產的收入機制如何具有考慮其可用性和可靠性的因素。這可能是一種支付機制，當您出於能源目的進行調度時，這種支付機制可以簡單地分開。那還沒有想通。所以我確實認為有人擔心唯一有激勵措施的東西，這主要是因為聯邦激勵措施要收費的是更多的間歇性資源。

And I think policymakers are focused and interested in having the reliability that the dispatchable assets bring. That's the focus of the study that the consultant is doing on behalf of the Public Utility Commission. We believe that there needs to be a focus on reliability. There's been a lot of focus on the transition from an environmental and emission standpoint, but in many places around the country, the reliability aspect has not been the key area of focus.

而且我認為政策制定者專注於並有興趣擁有可調度資產帶來的可靠性。這是顧問代表公用事業委員會進行的研究的重點。我們認為需要關注可靠性。從環境和排放的角度來看，這一轉變備受關注，但在全國許多地方，可靠性方面並不是重點關注的領域。

I think Texas is focused on that, and Texas wants to solve this. That might incentivize some thermal generation. But without that incentive, it is hard to see that penciling now in our analysis. And so potentially with market reform, that might be something that would work.

我認為德克薩斯州專注於這一點，而德克薩斯州想要解決這個問題。這可能會激勵一些熱發電。但如果沒有這種激勵，我們現在很難在分析中看到這種傾向。因此，通過市場改革，這可能會奏效。

Perfect. And Jim and Kris, really huge congrats on the spots.

完美的。吉姆和克里斯，真的非常祝賀現場。

Our next question comes from Steve Fleishman with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Steve Fleishman。

Yes. I want to echo congratulations, Jim and Kris. So just on the $3.5 billion to $3.7 billion range, '23 to '25. Is that an average over the 3 years? Or is that a range you expect each year?

是的。我想向吉姆和克里斯表示祝賀。所以就在 23 到 25 年的 35 億美元到 37 億美元之間。這是3年的平均值嗎？或者這是您每年期望的範圍？

So that is an average, Steve. And similar to the last call we had, what we see is we're more hedged in the early part of that period, and we're less hedged obviously in the latter part. So even though on an absolute basis, the curves aren't as high in say '25 as '23. Once you consider the relative hedge ratios, they actually end up being pretty similar.

所以這是一個平均值，史蒂夫。與我們最後一次看漲期權類似，我們看到的是，我們在那個時期的早期被更多的對沖，而在後期我們顯然更少被對沖。因此，即使在絕對基礎上，25 年的曲線也沒有 23 年那麼高。一旦考慮了相對對沖比率，它們實際上最終會非常相似。

Okay. So just I guess my next question was just going to be the shaping of the $3.5 billion to $3.7 billion, '23, '24, '25. It sounds like based on what you said, it's kind of similar each year?

好的。所以我想我的下一個問題就是 23 年、24 年、25 年 35 億到 37 億美元的塑造。聽你說的，每年都差不多？

It is. Now the good news is that '24 and '25 have continued to run. I'm fine if that shape doesn't look flatter. We're more locked in for '23, so we won't capture probably as much upside if '23 were to continue to run. But if '24, '25 were to, then you could absolutely see still upside in that slope actually shifting more to upward.

這是。現在好消息是'24 和'25 繼續運行。如果那個形狀看起來不平坦，我很好。我們更多地鎖定了 23 年，因此如果 23 年繼續運行，我們可能不會捕捉到那麼多的上漲空間。但如果 24 年、25 年是這樣，那麼你絕對可以看到該斜坡的上行趨勢實際上更多地向上移動。

Okay. That makes sense. Is it fair to assume for '24, '25, you're using forward curves as they are right now for the open positions in those years? Or are you hair cutting some just because?

好的。那講得通。假設'24、'25，你使用遠期曲線，就像它們現在用於那些年的未平倉頭寸一樣公平嗎？或者你只是因為剪頭髮？

So yes, so we're using curves of 7/29 as we refresh this analysis. We have to take into some consideration, Steve, some of the unknowns. I mean we assume that some factors like coal constraints have worked their way out more by 2025 than potentially the balance of '22 and '23.

所以是的，所以我們在刷新此分析時使用的是 7/29 曲線。史蒂夫，我們必須考慮一些未知因素。我的意思是，我們假設到 2025 年，煤炭限制等一些因素已經解決了，而不是 22 年和 23 年的潛在平衡。

So we have done, and we said this risk adjustment, we have taken into account some risk adjustments as we think about this. That's why we think the $3.5 billion to $3.7 billion is conservative. So we still have a decent open position out there. So it can go the other way, right? That's why we feel like hedging makes sense. That's why we like the opportunity to keep ample liquidity. But yes, this is a conservative view on a risk-adjusted basis.

所以我們已經做到了，我們說這個風險調整，我們在考慮這個問題時已經考慮了一些風險調整。這就是為什麼我們認為 35 億至 37 億美元是保守的。所以我們仍然有一個不錯的空缺職位。所以它可以走另一條路，對吧？這就是為什麼我們覺得對沖是有道理的。這就是為什麼我們喜歡有機會保持充足的流動性。但是，是的，這是在風險調整的基礎上的保守觀點。

Yes. All right. That makes a ton of sense. And then just on the IRA aside from potentially improving returns for your renewables opportunities? Any other broad thoughts on implications for Vistra if it passes?

是的。好的。這很有意義。然後只是在 IRA 上，除了可能提高可再生能源機會的回報之外？如果它通過，對瑞致達的影響還有其他廣泛的想法嗎？

Yes. I think there are some. I think obviously, the most immediate ones would be on the renewables piece and the standalone batteries. More than 50% of our Vistra Zero opportunity set is storage related, and that was not attached to solar, in most cases to solar. So standalone battery ITC is meaningful for us.

是的。我認為有一些。我認為顯然，最直接的將是可再生能源和獨立電池。我們超過 50% 的瑞致達零機會集與存儲相關，這與太陽能無關，在大多數情況下與太陽能無關。所以獨立電池 ITC 對我們來說很有意義。

On carbon capture, we have some assets that could be good candidates. That's a little bit further out to be able to get the technology, but certainly, the economic incentives could be there, and we've got some attractive assets that could be coal or gas that could be candidates for carbon capture.

在碳捕獲方面，我們有一些資產可能是很好的候選者。獲得這項技術還有一點點遙遠，但可以肯定的是，經濟激勵措施可能存在，而且我們擁有一些有吸引力的資產，可能是煤炭或天然氣，它們可能是碳捕獲的候選者。

And then the hydrogen piece, obviously, with the nuclear facility, with Comanche Peak. You've got not only the hydrogen incentive, but the production tax credit, which at today's curves looks a little bit more like it provides a floor support. I wouldn't consider it in the near-term incremental EBITDA, but it certainly helps provide a floor that's a lot higher than where the floor was in 2018, where we were looking at forward curves in the mid-$25 to $27 range for as far as the eye can see.

然後是氫部分，顯然，與核設施一起，與科曼奇峰。你不僅有氫激勵，還有生產稅收抵免，在今天的曲線上看起來更像是提供了底線支持。我不會在近期增量 EBITDA 中考慮它，但它肯定有助於提供比 2018 年的下限高得多的下限，當時我們正在尋找 25 美元至 27 美元範圍內的遠期曲線眼睛所能看到的。

So even if the floor is $40 to $44, that's a much more attractive place to put an anchor for a large carbon-free asset like Comanche Peak. So that's how we think about the IRA.

因此，即使底價為 40 至 44 美元，對於像 Comanche Peak 這樣的大型無碳資產而言，這也是一個更具吸引力的地方。這就是我們對愛爾蘭共和軍的看法。

Okay. And then one last quick question on Retail. Very strong quarter for you in terms of customer growth and the like. Could you just maybe give a little bit more flavor on the competitive dynamics you're seeing in Retail in Texas?

好的。然後是關於零售的最後一個快速問題。在客戶增長等方面對您來說非常強勁。您能否對您在德克薩斯州零售業看到的競爭動態多加一點了解？

Yes, you bet. And I'll kick it off, Steve, and then I'd like Scott Hudson to comment here in a second.

是的，你打賭。史蒂夫，我將開始它，然後我希望斯科特·哈德森在此發表評論。

We have -- had a really good run in the ERCOT Retail business for well over a year now. And the second quarter was really strong, as you noted. We tend to do really well. If you go back over the 20 years, when curves start to move up rapidly, and there's a lot of volatility, our value proposition to our customers really shine because we forward buy, sometimes the hedging and folks would like to see a more open position.

一年多來，我們在 ERCOT 零售業務中的表現非常出色。正如你所指出的，第二季度真的很強勁。我們往往做得很好。如果你回顧過去的 20 年，當曲線開始迅速上升並且波動很大時，我們對客戶的價值主張真的很亮，因為我們遠期購買，有時對沖和人們希望看到更開放的頭寸.

But part of our hedging strategy is selling from Generation to Retail and Retail being able to lock in a good price for that -- for the customer base. A lot of our competitors aren't doing that. So our customers were seeing year-over-year, when inflation for gasoline was up 50% and even doubling, we're seeing our revenue rates over the quarter-over-quarter in the 8% to 10% increase range. So that's a real value proposition for our customers.

但我們對沖策略的一部分是從一代到零售銷售，而零售能夠為此鎖定一個好價格——為客戶群。我們的很多競爭對手都沒有這樣做。因此，當汽油的通貨膨脹率上升 50% 甚至翻倍時，我們的客戶看到了同比增長，我們看到我們的收入環比增長在 8% 到 10% 的範圍內。所以這對我們的客戶來說是一個真正的價值主張。

So our retention was excellent and then our acquisition with new products that we've announced heading into this hot summer which has been really well received, is something I'd like Scott to comment on because it is a product innovation and a channel strategy. It isn't just a game about pricing, but I think the platform that we have of stability for customers is really attractive in these periods, and it's showing up in the customer count. Scott?

因此，我們的保留率非常好，然後我們在這個炎熱的夏天宣布了新產品的收購，這些新產品非常受歡迎，我希望 Scott 對此發表評論，因為它是一種產品創新和一種渠道戰略。這不僅僅是一場關於定價的遊戲，而且我認為我們為客戶提供的穩定平台在這些時期確實很有吸引力，而且它正在顯示在客戶數量中。斯科特?

Yes. Thanks, Jim, and thanks for the question, Steve. A little bit about market dynamics that we're seeing. The market was extremely active in the quarter, first of all, with new transactions being up by about 19%, and then we're (inaudible) to capture more of that market activity.

是的。謝謝，吉姆，謝謝史蒂夫的問題。關於我們所看到的市場動態。本季度市場非常活躍，首先，新交易增長了約 19%，然後我們（聽不清）捕捉更多的市場活動。

We also saw a tremendous amount of leads coming into our call centers and our digital properties, which, as Jim mentioned, I think, really speaks to the effectiveness of the marketing. And in times of volatility customers that might be on a less-known brand really come to brands that they know and trust and TXU Energy clearly falls in that category.

我們還看到大量潛在客戶進入我們的呼叫中心和我們的數字資產，正如吉姆所說，我認為這確實說明了營銷的有效性。在動盪時期，可能使用鮮為人知的品牌的客戶確實會選擇他們了解和信任的品牌，而 TXU Energy 顯然屬於這一類。

And then lastly, as Jim mentioned, we're really known for offering first of a kind mass market product offers. In the market we had -- the product we had in market this summer was called Ultimate Summer Pass. And it's a seasonal discount product that gives you percentage off during the summer and because it was so hot, that particular product just really resonated with the consumers.

最後，正如 Jim 所提到的，我們以提供首創的大眾市場產品而聞名。在我們擁有的市場上——我們今年夏天在市場上擁有的產品被稱為 Ultimate Summer Pass。它是一種季節性折扣產品，在夏季為您提供百分比折扣，因為它非常熱，該特定產品真的引起了消費者的共鳴。

But we have a lot of proven capabilities in terms of analytics and marketing and channel strategies, but it really is just a focus on the customer experience. and how we really try to be consultative with our customers and help them find the right product and the right plan, and it's really all contributed to our success. But again, thanks for the question.

但我們在分析、營銷和渠道戰略方面有很多成熟的能力，但它確實只是關注客戶體驗。以及我們如何真正嘗試與客戶協商並幫助他們找到正確的產品和正確的計劃，這一切都對我們的成功做出了貢獻。但再次感謝您的提問。

Steve, I would just wrap by with Scott's comment by just adding that these gains are some of the best gains we've seen 14, 15 years. Competition has kind of winnowed a bit in terms of number of competitors because the balance sheet and the hedging requirements and the volatility make this a difficult business to just be standalone. And I think this is another case where the integrated model has really been able to show its effectiveness.

史蒂夫，我只想補充一下斯科特的評論，這些收益是我們在 14 年、15 年中看到的一些最好的收益。由於資產負債表和對沖要求以及波動性使得該業務難以獨立，因此競爭在競爭者數量方面有所下降。我認為這是集成模型真正能夠顯示其有效性的另一個案例。

Our next question comes from David Arcaro with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 David Arcaro。

Maybe just a quick follow-up on the Inflation Reduction Act. Any thoughts on the minimum tax and whether that could impact cash flow going forward?

也許只是對《通貨膨脹減少法案》的快速跟進。關於最低稅的任何想法以及這是否會影響未來的現金流？

I'll comment, and then I'll ask Kris to say a few words. It could. Not in the near term. We don't see anything. We still carry losses from [Yuri]. And so this is going to be something that for book purposes, it's going to take a while to work out of. And so it would down the road as we think about what is our federal tax exposure. It could increase it. But it's not a near-term kind of in the immediate vicinity of our planning horizon, but I'm going to let Kris comment further.

我會發表評論，然後我會請 Kris 說幾句話。它可能。短期內不會。我們什麼都看不到。我們仍然承受著 [Yuri] 的損失。因此，這將成為書籍目的，需要一段時間才能解決。因此，當我們考慮我們的聯邦稅收風險時，它會在路上。它可以增加它。但這不是我們計劃範圍內的短期類型，但我會讓 Kris 進一步評論。

Thanks, Jim. I think that's right. Given the fact of the losses during [Yuri] and those book losses, we don't see throughout the entirety of our planning horizon that coming into play. We will continue to monitor it. But it's not, as Jim said, it's not a near-term effect on us. .

謝謝，吉姆。我認為這是對的。考慮到 [Yuri] 期間的虧損和賬面虧損的事實，我們在整個計劃範圍內都沒有看到它開始發揮作用。我們將繼續對其進行監控。但正如吉姆所說，這並不是對我們的近期影響。 .

Okay. Great. That makes sense. That's helpful. And then there's been a lot of focus on operations, just given how tight the ERCOT market has been. Wondering if you could just comment on kind of the current health of your fleet in ERCOT, how comfortable you're feeling as we head into August. And whether there is just still kind of maintenance work that you're trying to chip away at or just how -- what the current state of the fleet is right now?

好的。偉大的。那講得通。這很有幫助。然後，考慮到 ERCOT 市場的緊張程度，人們非常關注運營。想知道您是否可以評論一下您在 ERCOT 的船隊目前的健康狀況，當我們進入八月時，您感覺有多舒服。以及是否仍然存在您正在嘗試減少的維護工作，或者只是如何進行 - 艦隊的當前狀態是什麼？

David, thank you. Great question. First of all, I'm going to tell you about how we have performed, and I hope that doesn't jinx our performance going forward because it is a tough business. And I can't get into the specific details of the financial impacts, but I can tell you from a reliability standpoint, the fleet performed exceptionally well, particularly in July, which was a critical period. The men and women that are out there in these conditions, making these units operate at the level of effectiveness that they have is really just a tremendous, tremendous effort, and there were times, I'm sure you were following where basically every megawatt was needed on the grid to keep the system with a minimum operating level of reserves.

大衛，謝謝。好問題。首先，我將告訴你我們的表現如何，我希望這不會影響我們未來的表現，因為這是一項艱難的業務。我無法深入了解財務影響的具體細節，但我可以從可靠性的角度告訴你，機隊表現異常出色，尤其是在 7 月份，這是一個關鍵時期。在這些條件下的男男女女，讓這些單位以他們所擁有的效率水平運行，這真的是一項巨大的、巨大的努力，而且有時，我敢肯定，你正在追隨基本上每兆瓦的情況需要在電網上保持系統具有最低運行水平的儲備。

So the fleet is in good shape. It remains in good shape. We tend to take some periods on the weekends to come down for some assets to do minor repairs to make sure they're ready to go. And of course, we use our weather -- our weather forecasting as well as coordinating with ERCOT with advanced notice to let them know what our intentions are, and that has been very helpful so that we're able to do the maintenance that we need.

因此，艦隊狀況良好。它保持良好狀態。我們傾向於在周末花一些時間對一些資產進行小修，以確保它們準備就緒。當然，我們使用我們的天氣——我們的天氣預報以及與 ERCOT 協調並提前通知讓他們知道我們的意圖，這非常有幫助，因此我們能夠進行我們需要的維護.

I will say in some other parts of the country in July in PJM, we did have a few struggles with some older coal units. And so the performance that we saw from the -- from the July Generation and Retail performance was offset some by where we were seeing some unit challenges in PJM, not fully offsetting by any means, but just recognition that when you run a 40,000-megawatt fleet, there's going to be some cases where you have some unplanned impacts. Those units have been recovered and they're operating, but it's still just a matter of a large fleet diversified across the country. But in the moment, when ERCOT was its tightest and when these units were needed, there was exceptional performance by the ERCOT fleet.

我會在 7 月份的 PJM 會議上說，在該國其他一些地區，我們確實與一些較舊的煤炭單位發生了一些爭執。因此，我們從 7 月份的發電和零售業績中看到的表現被我們在 PJM 中看到的一些單位挑戰所抵消，並沒有以任何方式完全抵消，但只是認識到當你運行 40,000 兆瓦時艦隊，在某些情況下，您會產生一些計劃外的影響。這些單位已經恢復並且正在運行，但這仍然只是全國范圍內多元化的大型機隊的問題。但在 ERCOT 最緊張的時刻，當需要這些裝置時，ERCOT 機隊表現出色。

Our next question comes from Durgesh Chopra with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Durgesh Chopra。

And congratulations to you both. I just wanted to go back to the -- I'm sorry, I was going to ask you a question about your debt-to-EBITDA metrics. And obviously, as of the second quarter, they're kind of -- you've got some margin contributions there. So they're elevated above the 3x target you have long term. Maybe just could you talk to how do you see that trending over the next few years? Should we expect them to kind of remain elevated given the margin deposits? Or how should we think about those targets over the next 12 to 24 months?

並祝賀你們倆。我只是想回到 - 對不起，我要問你一個關於你的債務與 EBITDA 指標的問題。顯然，截至第二季度，它們有點 - 你在那裡有一些保證金貢獻。因此，它們高於您長期設定的 3 倍目標。也許你能談談你如何看待未來幾年的趨勢？考慮到保證金存款，我們是否應該期望它們保持高位？或者我們應該如何考慮未來 12 到 24 個月的這些目標？

Sure. Yes, Durgesh, thank you. In the deck, we tried to highlight the total debt numbers, recognizing, of course, we have cash on hand. And then we have a significant amount post of this margin deposits. And of course, as we operate our fleet and we serve customers, we would expect this cash that's posted in terms of net margin deposits to come back into the system, and we've used that obviously, to pay down debt, as Kris indicated in his remarks.

當然。是的，Durgesh，謝謝。在甲板上，我們試圖突出總債務數字，當然，我們手頭有現金。然後我們有大量的保證金存款。當然，當我們運營我們的機隊並為客戶提供服務時，我們預計這些以淨利潤存款形式計入的現金會重新回到系統中，我們顯然已經用它來償還債務，正如 Kris 所指出的那樣在他的講話中。

I believe that we're tracking, and I think you see this in the chart. I think we're tracking in the low 3s. In the -- under normal course of operation here in the very near term. If we have to keep posting margin, it means that the curves are moving up, and that probably means that our unhedged position is even more in the money, and that's a good thing from an enterprise value for Vistra.

我相信我們正在跟踪，我認為您在圖表中看到了這一點。我認為我們正在追踪低三分。在 - 在非常短期內正常運作的情況下。如果我們必須繼續發布保證金，這意味著曲線正在向上移動，這可能意味著我們的未對沖頭寸更加有利可圖，這對瑞致達的企業價值來說是一件好事。

So I think the most important thing that we've done, and Kris has done an excellent job of doing this, is securing ample liquidity, which I realize that you've read some announcements over time, wondering what is the adequate amount to have, and that's something we monitor every day, and it's a function of how hedged are we, what's the volatility in the market, how far out are we hedging.

所以我認為我們所做的最重要的事情，並且 Kris 在這方面做得非常出色，就是確保充足的流動性，我意識到隨著時間的推移，你已經閱讀了一些公告，想知道有多少足夠的流動性，這是我們每天都在監控的東西，它取決於我們對沖的程度、市場的波動性以及我們對沖的程度。

And if anything, we're going to be conservative on the liquidity side and make sure that we are not paying down debt, permanent debt any sooner than we should because we want to make sure that the liquidity is there to keep taking advantage of these market opportunities. And so I'm going to ask Kris if he would like to add something.

如果有的話，我們將在流動性方面保持保守，並確保我們不會比我們應該更快地償還債務、永久債務，因為我們希望確保有流動性來繼續利用這些市場機會。所以我要問克里斯，他是否想補充一些東西。

Yes. Thanks, Jim. The only thing that I would add is that it's just the timing that you referenced. As we reported this morning, we have approximately just over $3 billion of cash posted, and a significant amount of that cash will come back over the balance of this year. And that's what -- as we perform and our units run. So that's what gives us the ability to be confident when we say that we'll be able to repay more than $2.5 billion over the balance of the year and get back into the range of our target, we think, in the very near future.

是的。謝謝，吉姆。我唯一要補充的是，這只是您引用的時間。正如我們今天早上報導的那樣，我們發布了大約超過 30 億美元的現金，其中很大一部分現金將在今年的餘額中返還。這就是 - 當我們執行和我們的單位運行時。因此，當我們說我們將能夠在今年剩餘時間內償還超過 25 億美元並在不久的將來回到我們的目標範圍時，這就是讓我們有能力自信的原因。

Our last question comes from Jonathan Arnold with Vertical Research Partners.

我們的最後一個問題來自 Vertical Research Partners 的 Jonathan Arnold。

Durgesh just asked what I was going to ask. One other thing I wanted to -- just curious on as Vistra Zero grows and you start to see more of a contribution, how are you going to show that to us? Any thoughts about sort of does it just show up in the segments? Are you going to call it out just sort of back to the comment on anticipating replacing EBITDA from retiring coal with that portfolio over time. [There's no more] any sense of just sort of tracking that we'll be able to do on that.

Durgesh 只是問我要問什麼。我想要做的另一件事——只是好奇隨著瑞致達零的成長，你開始看到更多的貢獻，你將如何向我們展示這一點？關於它的任何想法只是出現在細分市場中嗎？你是否打算把它說出來，只是回到關於預期隨著時間的推移用該投資組合取代退休煤炭的 EBITDA 的評論。 [不再有] 任何一種我們將能夠對此進行的跟踪的感覺。

Yes. Great question, Jonathan. I think I even indicated earlier this year that we would envision providing visibility for that segment. And at that same time, we were focused on restoring Moss 300 and 100 because until we got these assets operating in the spring in Texas and got Moss 300, 100 restored, there wasn't a lot of operating EBITDA in Vistra Zero.

是的。好問題，喬納森。我想我什至在今年早些時候表示，我們將設想為該細分市場提供可見性。同時，我們專注於恢復 Moss 300 和 100，因為直到我們在德克薩斯州春季讓這些資產運營並恢復 Moss 300、100 之前，Vistra Zero 的運營 EBITDA 並不多。

Now that we have even those assets on the ground and operating with obviously Moss 300 and 100, we have a material contribution for 2023, we see it in the ballpark of around $200 million coming from Vistra Zero. That's not a segment reported yet, but I see us getting to that segment reporting towards the end of this year. And we just wanted to make sure it was meaningful, Jonathan, to go through that exercise at this point and we wanted to get the operating assets on the ground delivering and we've got that. So I think you can expect to see more visibility into that towards the end of the year.

現在我們甚至在地面上擁有這些資產，並且顯然使用 Moss 300 和 100 進行運營，我們對 2023 年做出了重大貢獻，我們看到它來自 Vistra Zero 的大約 2 億美元。這還不是一個部分報告，但我看到我們將在今年年底前進入該部分報告。喬納森，我們只是想確保在這一點上進行該練習是有意義的，我們希望讓運營資產在地面上交付，我們已經做到了。所以我認為你可以期待在今年年底看到更多的可見性。

Okay, great. That's helpful. And congrats to both of you.

好，太棒了。這很有幫助。並祝賀你們倆。

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

我們的問答環節到此結束。我想把會議轉回給 Jim Burke 做任何閉幕詞。

I just want to thank you for taking the time to join us, be with Kris, myself and the management team. We are incredibly excited about where Vistra is, and we look forward to speaking to you again in a few months as we update you on our execution and our outlook for 2023 and beyond. Thanks again.

我只想感謝您抽出寶貴時間加入我們，與 Kris、我自己和管理團隊在一起。我們對瑞致達的位置感到非常興奮，我們期待在幾個月後再次與您交談，因為我們會向您更新我們的執行情況以及我們對 2023 年及以後的展望。再次感謝。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。