Vistra Corp, a U.S. energy corporation, increased its estimation of the negative effects of winter storm Uri in Texas in February from $900 million to $1.6 billion.
According to Vistra, the latest forecast removes any future recovery from the storm’s myriad legal and regulatory challenges.
The company reissued its 2021 ongoing operations adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) guidance ranges of $1,475-$1,875 million and ongoing operations adjusted free cash flow before growth guidance ranges of $200-$600 million to account for Uri’s effect.
Before the crisis, Vistra projected $3,075-3,475 million in ongoing operations adjusted EBITDA and $1,765-2,165 million in ongoing operations adjusted free cash flow before development for 2021.
Before the crisis, Vistra projected $3,075-3,475 million in ongoing operations adjusted EBITDA and $1,765-2,165 million in ongoing operations adjusted free cash flow before development for 2021.
Vistra said that during the storm, third-party gas contracts were not honored, forcing it to purchase replacement gas at exorbitant prices, while a shortage of physical gas and inadequate pipeline pressures hampered its ability to produce power at full capacity.
To meet supply commitments, Vistra said it had to purchase power in the ERCOT sector at or near the grid’s $9,000 per megawatt-hour price limit as a result of these challenges.
