C. John Wilder, CEO of TXU, presented at the Deutsche Bank Annual Electric Power Conference on June 15, 2005. In 3 sentences:
TXU's strategy is to transform into an industrial energy company focused on delivering top quartile financial performance through operational excellence, market leadership, and a risk/return mindset. TXU aims to improve earnings power, returns, and financial flexibility simultaneously by enhancing generation performance, optimizing costs, and maintaining a balanced capital structure. Wilder discussed TXU's financial targets and growth outlook, and emphasized the company's focus on optimizing risk-reward for all stakeholders.
TXU's fundamental business strategy is to transform into an industrial energy company focused on delivering top quartile financial performance across its three structurally advantaged businesses: generation, transmission & distribution, and retail.
TXU has significant exposure to natural gas prices and heat rates due to its large baseload coal generation fleet, which produces power at a lower marginal cost than gas plants. However, the integration of its generation and retail businesses helps reduce volatility as the businesses' margins move in opposite directions with changing gas prices.
In the mid to long term, TXU aims to continue improving operational excellence across its businesses to enhance financial performance and total returns for shareholders.
The document provides guidance on forming an effective company strategy in the simulation game Enginuity 2012. Some key points:
- Objectives for the next year could include increasing turnover, improving profitability, enhancing the company's reputation, and satisfying shareholders.
- A long-term strategy is needed to guide decision-making and avoid problems from unforeseen circumstances. The strategy should be periodically reviewed.
- Areas to focus on include utilizing assets, identifying new opportunities, improving client relationships, ensuring overhead costs are managed, and maintaining adequate staffing levels.
- The company's performance will be influenced by factors like the economic climate, competition level, and changes in the client base. An effective strategy adapts
1) Mike Waites, President and CEO of Finning International Inc., presented at the CIBC Whistler Institutional Investor Conference on January 19, 2012.
2) Finning is well positioned for growth as the exclusive Caterpillar dealer in resource-rich territories with unmatched product support capabilities.
3) Waites discussed Finning's strategic priorities to become CAT's best global partner, including operational excellence, sales and solutions growth, and safety. He also outlined expectations to meet financial commitments around revenue growth, improved operating leverage, and investing to maintain competitive advantage.
This presentation by Mike Waites, President & CEO of Finning International Inc., provides an overview of the company and its strategy moving forward. Finning is the exclusive Caterpillar dealer in Canada, Chile, UK and Ireland, with unmatched product support capabilities. The company's vision is to become CAT's best global business partner by providing unrivaled services. Finning will focus on operational excellence, pursuing growth opportunities, generating solid free cash flow, and cultivating a high performance culture. Key initiatives include growing product support, implementing a new ERP system, disciplined capital spending, and investing in technical training.
TXU's earnings and cash flow improved substantially in 2005 compared to 2004. Operational earnings per share increased 136% year-to-date and normalized operating cash flow grew 42% year-to-date. This solid performance reflected gains across TXU's core businesses of TXU Energy Holdings, TXU Electric Delivery, and TXU Power. As part of its turnaround, TXU also significantly improved its risk profile and focused on infrastructure, technology, and growth investments to boost reliability and lower costs.
public serviceenterprise group Bankof Americafinance20
Public Service Enterprise Group held investor meetings from June 24-26, 2008. The document discusses PSEG's focus on operational excellence and participation in regulatory proceedings to support long-term growth. It notes PSEG Power has a low-carbon fleet well positioned for carbon restrictions, while PSE&G operates in a strong market in New Jersey and is increasing investment in transmission, electric, and gas infrastructure to improve reliability. The increased capital spending at PSE&G is expected to grow its rate base substantially through 2012.
public serviceenterprise group EEIMeetingfinance20
This document provides an overview of Public Service Enterprise Group's (PSEG) annual finance committee meeting. It includes forward-looking statements about PSEG's future performance that are subject to risks and uncertainties. It also lists factors that could cause actual results to differ from expectations. Additionally, it provides a GAAP disclaimer about PSEG's presentation of operating earnings in addition to net income under GAAP. The overview discusses how PSEG's electric generation, electric and gas distribution, and asset management platforms provide earnings stability and growth opportunities through operational excellence, a supportive regulatory environment, and manageable growth initiatives.
This document provides an overview of Public Service Enterprise Group (PSEG) and includes forward-looking statements about PSEG's performance. It notes factors that could cause actual results to differ from expectations, such as changes in energy policy, regulation of PSEG's transmission and distribution businesses, environmental regulations, and other risks. The document also includes information about PSEG's generation assets, market positioning, hedging programs, and views on power market volatility.
TXU's fundamental business strategy is to transform into an industrial energy company focused on delivering top quartile financial performance across its three structurally advantaged businesses: generation, transmission & distribution, and retail.
TXU has significant exposure to natural gas prices and heat rates due to its large baseload coal generation fleet, which produces power at a lower marginal cost than gas plants. However, the integration of its generation and retail businesses helps reduce volatility as the businesses' margins move in opposite directions with changing gas prices.
In the mid to long term, TXU aims to continue improving operational excellence across its businesses to enhance financial performance and total returns for shareholders.
The document provides guidance on forming an effective company strategy in the simulation game Enginuity 2012. Some key points:
- Objectives for the next year could include increasing turnover, improving profitability, enhancing the company's reputation, and satisfying shareholders.
- A long-term strategy is needed to guide decision-making and avoid problems from unforeseen circumstances. The strategy should be periodically reviewed.
- Areas to focus on include utilizing assets, identifying new opportunities, improving client relationships, ensuring overhead costs are managed, and maintaining adequate staffing levels.
- The company's performance will be influenced by factors like the economic climate, competition level, and changes in the client base. An effective strategy adapts
1) Mike Waites, President and CEO of Finning International Inc., presented at the CIBC Whistler Institutional Investor Conference on January 19, 2012.
2) Finning is well positioned for growth as the exclusive Caterpillar dealer in resource-rich territories with unmatched product support capabilities.
3) Waites discussed Finning's strategic priorities to become CAT's best global partner, including operational excellence, sales and solutions growth, and safety. He also outlined expectations to meet financial commitments around revenue growth, improved operating leverage, and investing to maintain competitive advantage.
This presentation by Mike Waites, President & CEO of Finning International Inc., provides an overview of the company and its strategy moving forward. Finning is the exclusive Caterpillar dealer in Canada, Chile, UK and Ireland, with unmatched product support capabilities. The company's vision is to become CAT's best global business partner by providing unrivaled services. Finning will focus on operational excellence, pursuing growth opportunities, generating solid free cash flow, and cultivating a high performance culture. Key initiatives include growing product support, implementing a new ERP system, disciplined capital spending, and investing in technical training.
TXU's earnings and cash flow improved substantially in 2005 compared to 2004. Operational earnings per share increased 136% year-to-date and normalized operating cash flow grew 42% year-to-date. This solid performance reflected gains across TXU's core businesses of TXU Energy Holdings, TXU Electric Delivery, and TXU Power. As part of its turnaround, TXU also significantly improved its risk profile and focused on infrastructure, technology, and growth investments to boost reliability and lower costs.
public serviceenterprise group Bankof Americafinance20
Public Service Enterprise Group held investor meetings from June 24-26, 2008. The document discusses PSEG's focus on operational excellence and participation in regulatory proceedings to support long-term growth. It notes PSEG Power has a low-carbon fleet well positioned for carbon restrictions, while PSE&G operates in a strong market in New Jersey and is increasing investment in transmission, electric, and gas infrastructure to improve reliability. The increased capital spending at PSE&G is expected to grow its rate base substantially through 2012.
public serviceenterprise group EEIMeetingfinance20
This document provides an overview of Public Service Enterprise Group's (PSEG) annual finance committee meeting. It includes forward-looking statements about PSEG's future performance that are subject to risks and uncertainties. It also lists factors that could cause actual results to differ from expectations. Additionally, it provides a GAAP disclaimer about PSEG's presentation of operating earnings in addition to net income under GAAP. The overview discusses how PSEG's electric generation, electric and gas distribution, and asset management platforms provide earnings stability and growth opportunities through operational excellence, a supportive regulatory environment, and manageable growth initiatives.
This document provides an overview of Public Service Enterprise Group (PSEG) and includes forward-looking statements about PSEG's performance. It notes factors that could cause actual results to differ from expectations, such as changes in energy policy, regulation of PSEG's transmission and distribution businesses, environmental regulations, and other risks. The document also includes information about PSEG's generation assets, market positioning, hedging programs, and views on power market volatility.
This document provides an overview of Public Service Enterprise Group (PSEG) and its subsidiaries PSEG Power and PSE&G. It discusses PSEG's assets, earnings guidance, capital spending plans, and positioning in the energy industry. PSEG Power has a diverse fleet of generating assets located in attractive markets in the Northeast. Strong cash flow from Power will provide PSEG with $2.5 billion in discretionary cash through 2011 to support investments, shareholder dividends, and debt payments. Power's assets are well positioned for carbon regulation and its declining capital expenditures will result in substantial discretionary cash flows.
public serviceenterprise group Morgan Stanley FINALfinance20
Public Service Enterprise Group held a presentation at the 15th Annual Global Electricity and Energy Conference on April 2, 2008. The presentation discussed PSEG's focus on operational excellence, participation in regulatory and market discussions, and growth opportunities with manageable risk. PSEG forecasts earnings growth of 8-9% annually through 2011, driven by stable revenues from its electric generation, transmission, and distribution businesses and the deployment of over $3 billion in discretionary cash through 2011.
Public Service Enterprise Group (PSEG) provides a summary of its business segments and financial outlook. PSEG Power operates electric generation assets of 13,300 MW across diverse fuel sources. PSE&G operates New Jersey's electric and gas transmission and distribution networks. PSEG Holdings focuses on managing its existing lease portfolio and investment opportunities. PSEG anticipates $1.04-$1.14 billion in operating earnings from Power in 2008, $350-$370 million from PSE&G, and $45-$60 million from Holdings. PSEG will direct cash flows from its business segments towards growth opportunities, with a focus on improving reliability and meeting regulatory requirements.
Public Service Enterprise Group provides an overview of its business units and strategy. It notes that operational excellence, disciplined investment, and financial strength will drive earnings growth of 8-9% annually. The company has $3 billion in discretionary cash through 2011 that can be used for growth or share repurchases to provide a total shareholder return of 10-13% annually. PSEG's assets are well-positioned for environmental regulations and capacity needs in its markets.
public serviceenterprise group CapReOFlynnfinance20
Public Service Enterprise Group (PSEG) provides an overview of its business segments and financial outlook. PSEG's power generation business has a diverse portfolio of nuclear, coal, gas, and oil-fired assets located in attractive Northeast markets. PSEG's regulated utility business invests in electric transmission and distribution infrastructure to support reliability and earnings growth. PSEG expects to have $3 billion of discretionary cash through 2011, which it can invest in growth opportunities or use to repurchase shares, driving total shareholder returns of 10-13% annually. PSEG is well positioned in the current environment with a focus on operational excellence, regulatory engagement, and manageable growth options.
NiSource Inc. is the parent company of utilities that distribute natural gas. In 2005, the company made progress on its four-point plan for growth despite challenges. Key accomplishments included expanding its pipeline and storage network through projects like the Hardy Storage Project, pursuing regulatory and commercial initiatives, improving financial management, and reducing expenses. However, the company recognizes it still faces issues like high gas prices reducing customer usage that could impact growth plans and ongoing losses at its Whiting Clean Energy division that require resolution. The CEO pledges to keep communicating with shareholders about decisions on addressing these remaining challenges.
1. Santander reported consistent results in Q1 2009, with attributable profit decreasing 5% year-over-year to EUR 2.096 billion. Excluding exchange rates, profit increased 9%.
2. Net interest income increased 18.8% excluding exchange rates, driven by spreads management in a low interest rate environment. Operating expenses increased 1.8% excluding exchange rates and perimeter changes, reflecting strict cost control.
3. Loan-loss provisions increased 67.8% excluding exchange rates to EUR 2.234 billion, but were lower than in Q4 2008 due to specific provisions. Generic provisions decreased as forecasted.
Greene King reported resilient results for 2008/09 despite difficult trading conditions. Revenue increased 1.3% to £954.6 million but operating profit declined 6.7% to £216.2 million due to cost pressures. The company continued to invest in its businesses, pay down debt, and maintain its dividend. Current trading was described as encouraging.
Public Service Enterprise Group held an energy and utilities conference in Miami Beach, Florida on May 29, 2008. The presentation included forward-looking statements about PSEG's performance, which may differ from actual results. It also noted factors that could impact PSEG's operating results such as energy industry and regulatory changes. PSEG Power represents the largest subsidiary and has a diverse portfolio of electric generation assets well-positioned to meet capacity and environmental requirements.
This document is a Form 10-K annual report filed with the SEC by Calpine Generating Company, LLC and CalGen Finance Corp. for the fiscal year ending December 31, 2004. It provides an overview of the companies, including that CalGen owns 14 power generation facilities with 9,834 MW of peak capacity. It also summarizes principal agreements with affiliates for fuel supply and power sales. Risk factors are incorporated by reference from other SEC filings. Financial and operational results for 2004 are provided in detail within the filing.
energy future holindings 07Q2ERExhibits_FINALfinance29
TXU reported financial results for the second quarter and first half of 2007. Net income was $121 million for Q2 2007, down from $497 million in Q2 2006, due to unrealized hedge losses and charges related to suspending generation projects. For the first half, TXU reported a net loss of $377 million compared to net income of $1,073 million in 2006, again due to hedge losses and generation project charges. Operational earnings, which exclude special items, were $430 million for Q2 2007 and $873 million for the first half, lower than the prior year periods due to factors including weather, plant outages, and lower prices. TXU continued to make progress on its proposed merger
This document provides an overview of TXU's first quarter 2006 earnings discussion. It highlights improved operational earnings compared to the first quarter of 2005, driven by record production levels at TXU Power's lignite and nuclear units. It also summarizes new electricity product offerings introduced by TXU Energy in North Texas to establish TXU as the leader among Texas incumbents. Additionally, it outlines six key drivers of attractive returns for TXU's clean coal investment program and how hedging protects a portion of the value while retaining upside potential from commodity price moves.
Calpine Corporation is a major power company that operates 92 power plants capable of delivering over 26,500 megawatts of electricity. In 2004, Calpine generated over 96 million megawatt hours of electricity but reported a net loss of $242.5 million, its first annual loss as a public company. Calpine has significantly expanded its fleet in recent years through new construction and now has over 30,000 megawatts of capacity, making it one of the largest power generators in North America. The company aims to lower costs through economies of scale and efficiency improvements across its operations.
energy future holindings 07Q2ERExhibits_FINALfinance29
TXU reported financial results for Q2 and year-to-date 2007. For Q2, net income was $121 million compared to $497 million in Q2 2006. Operational earnings, which exclude special items, were $430 million in Q2 2007 compared to $650 million in Q2 2006. For year-to-date, TXU reported a net loss of $377 million compared to net income of $1,073 million in 2006. Operational earnings were $873 million year-to-date 2007 compared to $1,179 million in 2006. Results were impacted by cooler weather, higher fuel costs, and lower average pricing. TXU also provided updates on its proposed merger with TEF Holdings and
energy future holindings Q106EARNINGS_FINALfinance29
TXU reported improved financial results for the first quarter of 2006 compared to the first quarter of 2005. Net income increased to $576 million from $416 million in the prior year period. Operational earnings, which exclude special items, also increased significantly, reaching $1.09 per share compared to $0.51 per share in 2005. TXU affirmed its outlook for 2006 and 2007, and announced plans to invest $10 billion to build new coal and lignite power plants in Texas to meet growing energy demand and lower costs.
The Campbell North America division had sales of $5.2 billion in fiscal 2004. Its portfolio includes leading brands like Campbell's, Pace, Prego, Swanson, Pepperidge Farm, and Godiva. The division sees opportunities to grow the U.S. soup business through convenient ready-to-serve soups and expanding production capacity. It will also continue investing in growth drivers like V8, Pepperidge Farm, Prego, Pace, and Godiva while supporting the core soup franchise.
TXU's fundamental business strategy is to transform into an industrial energy company focused on delivering top quartile financial performance across its three structurally advantaged businesses: generation, transmission & distribution, and retail. TXU has significant exposure to natural gas prices and heat rates due to its large baseload coal generation fleet, but this exposure is partially offset by its integrated retail business. TXU sees opportunities for mid and long term growth by improving operational excellence, implementing performance management, and optimizing its risk/return profile.
Calpine Corporation reported its third quarter 2008 earnings results. The company achieved excellent operational performance during Hurricane Ike with nearly 97% plant availability in Texas. Calpine also effectively managed commodity price and counterparty credit risks during the financial crisis. The company's near-term strategy focuses on retaining skilled employees, operational excellence, optimizing existing assets, expanding its portfolio, and leveraging expertise in geothermal energy. Calpine reported strong third quarter 2008 operations results with industry-leading safety, reliability, efficiency, and output.
Calpine Corporation reported third quarter 2008 earnings results. Key highlights included record operating revenues of $3.2 billion, a 37% increase over third quarter 2007. Adjusted EBITDA was a record $593 million, a 17% increase. Cash flow from operations was also a record at $941 million. The company achieved excellent operational performance during the quarter despite hurricanes. Calpine provided guidance for full-year 2008 adjusted EBITDA of $1.65-1.675 billion and discussed near-term strategies around hedging, operations excellence, and growth opportunities.
TXU Power has a structurally advantaged portfolio in ERCOT with 62 TWh of generation, including cost-advantaged lignite and nuclear assets. ERCOT fundamentals are strong with average implied heat rates of 18-21 MMBtu/MWh and robust wholesale power prices of $50-75/MWh. Low coal prices of $2.1-3.8/MMBtu further enhance the economics of TXU Power's generation assets.
The document summarizes an EEI conference presentation by the CEO of TXU. It discusses three phases of TXU's turnaround plan to address challenges in the transition to a competitive energy environment: 1) Risk and return restructuring through asset sales and balance sheet repair, 2) Performance improvement targeting $1.3 billion in savings, and 3) Ongoing value creation. The presentation highlights how execution of the plan through portfolio management, risk management, and performance management has created over $15 billion in shareholder value. It also outlines TXU's strategic principles focused on structurally advantaged assets, industrial performance, and scale.
TXU's earnings and cash flow improved substantially in 2005 compared to 2004. Operational earnings per share increased 136% year-to-date and normalized operating cash flow grew 42% year-to-date. This solid performance reflected gains across TXU's core businesses of TXU Energy Holdings, TXU Electric Delivery, and TXU Power. As part of its turnaround, TXU also significantly improved its risk profile and focused on infrastructure, technology, and growth investments to boost reliability and lower costs.
This document provides an overview of Public Service Enterprise Group (PSEG) and its subsidiaries PSEG Power and PSE&G. It discusses PSEG's assets, earnings guidance, capital spending plans, and positioning in the energy industry. PSEG Power has a diverse fleet of generating assets located in attractive markets in the Northeast. Strong cash flow from Power will provide PSEG with $2.5 billion in discretionary cash through 2011 to support investments, shareholder dividends, and debt payments. Power's assets are well positioned for carbon regulation and its declining capital expenditures will result in substantial discretionary cash flows.
public serviceenterprise group Morgan Stanley FINALfinance20
Public Service Enterprise Group held a presentation at the 15th Annual Global Electricity and Energy Conference on April 2, 2008. The presentation discussed PSEG's focus on operational excellence, participation in regulatory and market discussions, and growth opportunities with manageable risk. PSEG forecasts earnings growth of 8-9% annually through 2011, driven by stable revenues from its electric generation, transmission, and distribution businesses and the deployment of over $3 billion in discretionary cash through 2011.
Public Service Enterprise Group (PSEG) provides a summary of its business segments and financial outlook. PSEG Power operates electric generation assets of 13,300 MW across diverse fuel sources. PSE&G operates New Jersey's electric and gas transmission and distribution networks. PSEG Holdings focuses on managing its existing lease portfolio and investment opportunities. PSEG anticipates $1.04-$1.14 billion in operating earnings from Power in 2008, $350-$370 million from PSE&G, and $45-$60 million from Holdings. PSEG will direct cash flows from its business segments towards growth opportunities, with a focus on improving reliability and meeting regulatory requirements.
Public Service Enterprise Group provides an overview of its business units and strategy. It notes that operational excellence, disciplined investment, and financial strength will drive earnings growth of 8-9% annually. The company has $3 billion in discretionary cash through 2011 that can be used for growth or share repurchases to provide a total shareholder return of 10-13% annually. PSEG's assets are well-positioned for environmental regulations and capacity needs in its markets.
public serviceenterprise group CapReOFlynnfinance20
Public Service Enterprise Group (PSEG) provides an overview of its business segments and financial outlook. PSEG's power generation business has a diverse portfolio of nuclear, coal, gas, and oil-fired assets located in attractive Northeast markets. PSEG's regulated utility business invests in electric transmission and distribution infrastructure to support reliability and earnings growth. PSEG expects to have $3 billion of discretionary cash through 2011, which it can invest in growth opportunities or use to repurchase shares, driving total shareholder returns of 10-13% annually. PSEG is well positioned in the current environment with a focus on operational excellence, regulatory engagement, and manageable growth options.
NiSource Inc. is the parent company of utilities that distribute natural gas. In 2005, the company made progress on its four-point plan for growth despite challenges. Key accomplishments included expanding its pipeline and storage network through projects like the Hardy Storage Project, pursuing regulatory and commercial initiatives, improving financial management, and reducing expenses. However, the company recognizes it still faces issues like high gas prices reducing customer usage that could impact growth plans and ongoing losses at its Whiting Clean Energy division that require resolution. The CEO pledges to keep communicating with shareholders about decisions on addressing these remaining challenges.
1. Santander reported consistent results in Q1 2009, with attributable profit decreasing 5% year-over-year to EUR 2.096 billion. Excluding exchange rates, profit increased 9%.
2. Net interest income increased 18.8% excluding exchange rates, driven by spreads management in a low interest rate environment. Operating expenses increased 1.8% excluding exchange rates and perimeter changes, reflecting strict cost control.
3. Loan-loss provisions increased 67.8% excluding exchange rates to EUR 2.234 billion, but were lower than in Q4 2008 due to specific provisions. Generic provisions decreased as forecasted.
Greene King reported resilient results for 2008/09 despite difficult trading conditions. Revenue increased 1.3% to £954.6 million but operating profit declined 6.7% to £216.2 million due to cost pressures. The company continued to invest in its businesses, pay down debt, and maintain its dividend. Current trading was described as encouraging.
Public Service Enterprise Group held an energy and utilities conference in Miami Beach, Florida on May 29, 2008. The presentation included forward-looking statements about PSEG's performance, which may differ from actual results. It also noted factors that could impact PSEG's operating results such as energy industry and regulatory changes. PSEG Power represents the largest subsidiary and has a diverse portfolio of electric generation assets well-positioned to meet capacity and environmental requirements.
This document is a Form 10-K annual report filed with the SEC by Calpine Generating Company, LLC and CalGen Finance Corp. for the fiscal year ending December 31, 2004. It provides an overview of the companies, including that CalGen owns 14 power generation facilities with 9,834 MW of peak capacity. It also summarizes principal agreements with affiliates for fuel supply and power sales. Risk factors are incorporated by reference from other SEC filings. Financial and operational results for 2004 are provided in detail within the filing.
energy future holindings 07Q2ERExhibits_FINALfinance29
TXU reported financial results for the second quarter and first half of 2007. Net income was $121 million for Q2 2007, down from $497 million in Q2 2006, due to unrealized hedge losses and charges related to suspending generation projects. For the first half, TXU reported a net loss of $377 million compared to net income of $1,073 million in 2006, again due to hedge losses and generation project charges. Operational earnings, which exclude special items, were $430 million for Q2 2007 and $873 million for the first half, lower than the prior year periods due to factors including weather, plant outages, and lower prices. TXU continued to make progress on its proposed merger
This document provides an overview of TXU's first quarter 2006 earnings discussion. It highlights improved operational earnings compared to the first quarter of 2005, driven by record production levels at TXU Power's lignite and nuclear units. It also summarizes new electricity product offerings introduced by TXU Energy in North Texas to establish TXU as the leader among Texas incumbents. Additionally, it outlines six key drivers of attractive returns for TXU's clean coal investment program and how hedging protects a portion of the value while retaining upside potential from commodity price moves.
Calpine Corporation is a major power company that operates 92 power plants capable of delivering over 26,500 megawatts of electricity. In 2004, Calpine generated over 96 million megawatt hours of electricity but reported a net loss of $242.5 million, its first annual loss as a public company. Calpine has significantly expanded its fleet in recent years through new construction and now has over 30,000 megawatts of capacity, making it one of the largest power generators in North America. The company aims to lower costs through economies of scale and efficiency improvements across its operations.
energy future holindings 07Q2ERExhibits_FINALfinance29
TXU reported financial results for Q2 and year-to-date 2007. For Q2, net income was $121 million compared to $497 million in Q2 2006. Operational earnings, which exclude special items, were $430 million in Q2 2007 compared to $650 million in Q2 2006. For year-to-date, TXU reported a net loss of $377 million compared to net income of $1,073 million in 2006. Operational earnings were $873 million year-to-date 2007 compared to $1,179 million in 2006. Results were impacted by cooler weather, higher fuel costs, and lower average pricing. TXU also provided updates on its proposed merger with TEF Holdings and
energy future holindings Q106EARNINGS_FINALfinance29
TXU reported improved financial results for the first quarter of 2006 compared to the first quarter of 2005. Net income increased to $576 million from $416 million in the prior year period. Operational earnings, which exclude special items, also increased significantly, reaching $1.09 per share compared to $0.51 per share in 2005. TXU affirmed its outlook for 2006 and 2007, and announced plans to invest $10 billion to build new coal and lignite power plants in Texas to meet growing energy demand and lower costs.
The Campbell North America division had sales of $5.2 billion in fiscal 2004. Its portfolio includes leading brands like Campbell's, Pace, Prego, Swanson, Pepperidge Farm, and Godiva. The division sees opportunities to grow the U.S. soup business through convenient ready-to-serve soups and expanding production capacity. It will also continue investing in growth drivers like V8, Pepperidge Farm, Prego, Pace, and Godiva while supporting the core soup franchise.
TXU's fundamental business strategy is to transform into an industrial energy company focused on delivering top quartile financial performance across its three structurally advantaged businesses: generation, transmission & distribution, and retail. TXU has significant exposure to natural gas prices and heat rates due to its large baseload coal generation fleet, but this exposure is partially offset by its integrated retail business. TXU sees opportunities for mid and long term growth by improving operational excellence, implementing performance management, and optimizing its risk/return profile.
Calpine Corporation reported its third quarter 2008 earnings results. The company achieved excellent operational performance during Hurricane Ike with nearly 97% plant availability in Texas. Calpine also effectively managed commodity price and counterparty credit risks during the financial crisis. The company's near-term strategy focuses on retaining skilled employees, operational excellence, optimizing existing assets, expanding its portfolio, and leveraging expertise in geothermal energy. Calpine reported strong third quarter 2008 operations results with industry-leading safety, reliability, efficiency, and output.
Calpine Corporation reported third quarter 2008 earnings results. Key highlights included record operating revenues of $3.2 billion, a 37% increase over third quarter 2007. Adjusted EBITDA was a record $593 million, a 17% increase. Cash flow from operations was also a record at $941 million. The company achieved excellent operational performance during the quarter despite hurricanes. Calpine provided guidance for full-year 2008 adjusted EBITDA of $1.65-1.675 billion and discussed near-term strategies around hedging, operations excellence, and growth opportunities.
TXU Power has a structurally advantaged portfolio in ERCOT with 62 TWh of generation, including cost-advantaged lignite and nuclear assets. ERCOT fundamentals are strong with average implied heat rates of 18-21 MMBtu/MWh and robust wholesale power prices of $50-75/MWh. Low coal prices of $2.1-3.8/MMBtu further enhance the economics of TXU Power's generation assets.
The document summarizes an EEI conference presentation by the CEO of TXU. It discusses three phases of TXU's turnaround plan to address challenges in the transition to a competitive energy environment: 1) Risk and return restructuring through asset sales and balance sheet repair, 2) Performance improvement targeting $1.3 billion in savings, and 3) Ongoing value creation. The presentation highlights how execution of the plan through portfolio management, risk management, and performance management has created over $15 billion in shareholder value. It also outlines TXU's strategic principles focused on structurally advantaged assets, industrial performance, and scale.
TXU's earnings and cash flow improved substantially in 2005 compared to 2004. Operational earnings per share increased 136% year-to-date and normalized operating cash flow grew 42% year-to-date. This solid performance reflected gains across TXU's core businesses of TXU Energy Holdings, TXU Electric Delivery, and TXU Power. As part of its turnaround, TXU also significantly improved its risk profile and focused on infrastructure, technology, and growth investments to boost reliability and lower costs.
Bear, Stearns Global Transportation Conference Presentationfinance13
- United Airlines presented at the Bear Stearns Global Transportation Conference on May 9, 2007.
- United discussed its performance agenda to drive margin leadership through a customer-focused strategy, optimizing revenue and controlling costs, revitalizing its workforce, and continuous improvement.
- Metrics showed United had competitive unit revenue and costs compared to peers when adjusting for United-specific accounting items, and its strategy positioned United to continue improving performance and benefiting customers, employees, and investors.
ONEOK and ONEOK Partners to Present at Houston Energy Financial finance20
This document provides an agenda and overview for the Houston Energy Financial Forum on November 18, 2008. The presentation discusses ONEOK, Inc. and ONEOK Partners, L.P. as premier energy companies with diversified assets across the natural gas value chain. Key points include ONEOK Partners' $2 billion growth plan through internal projects between 2008-2009 focused on natural gas gathering and processing and natural gas liquids infrastructure in the Rockies. The presentation also highlights ONEOK's strategy of creating value through vertical integration and growth at ONEOK Partners, which benefits ONEOK through increasing distributions.
1. Santander reported consistent results in Q1 2009, with attributable profit decreasing 5% year-over-year to EUR 2.096 billion. Excluding exchange rates, profit increased 9%.
2. Net interest income increased 18.8% excluding exchange rates, driven by spreads management in a low interest rate environment. Operating expenses increased 1.8% excluding exchange rates and perimeter changes, reflecting strict cost control.
3. Loan-loss provisions increased 67.8% excluding exchange rates to EUR 2.234 billion, but were lower than in Q4 2008 due to specific provisions. Generic provisions decreased as forecasted.
ONEOK to Present at Bank of America Conference finance20
John Gibson, CEO of ONEOK, Inc., gave a presentation at the Bank of America Conference in Key Biscayne, Florida on November 14, 2008. The presentation outlined ONEOK's vision as a premier energy company, its diversified assets across the natural gas value chain, and its financial highlights. ONEOK is executing a strategy of rebundling services across the value chain through vertical integration and growth projects at its midstream subsidiary, ONEOK Partners.
This presentation provides an overview of Fidelity National Information Services:
- It is a leading global provider of payment processing and core banking services, with $3.47 billion in annual revenue.
- Its services include payment processing, which accounts for 56% of revenue, as well as core banking and risk management services.
- It expects full year 2008 adjusted earnings per share to be between $1.51-$1.57, an increase over 2007, demonstrating strong execution and earnings growth.
1) The document discusses Fidelity National Information Services, a leading global payment and core processing services provider. It presents information on FIS's business segments, revenue breakdown, competitive positioning, and technology platform.
2) Key metrics highlighted include $3.47 billion in total revenue, $839 million in adjusted EBITDA, serving over 13,000 financial institutions clients in more than 80 countries.
3) The presentation also reviews FIS's diverse and recurring revenue streams, strong operating leverage and customer service, and execution through organic revenue growth and improving EBITDA margins.
This document provides an overview of Public Service Enterprise Group (PSEG). It begins with forward-looking statements and risk factors that could impact PSEG's performance. It then discusses PSEG's strategic focus on maximizing value from existing electric generation, distribution, and transmission assets while deploying capital through asset sales and potential renewable investments. The document notes influences on PSEG's business such as climate change, infrastructure needs, and capacity requirements and how PSEG is positioned to meet these needs with its nuclear, coal, and potential renewable and storage assets.
Public Service Enterprise Group held an energy and utilities conference in Miami Beach, Florida on May 29, 2008. The presentation included forward-looking statements about PSEG's performance, which may differ from actual results. It also noted factors that could impact PSEG's operating results such as energy industry and regulatory changes. PSEG Power represents the largest subsidiary within PSEG's diverse platform and provides earnings stability through its portfolio of electric generation assets.
public serviceenterprise group Bank of Americafinance20
Public Service Enterprise Group held investor meetings from June 24-26, 2008. The document discusses PSEG's focus on operational excellence and participation in regulatory proceedings to support long-term growth. It notes PSEG Power has a low-carbon fleet well positioned for carbon restrictions, while PSE&G operates in a strong market in New Jersey and is increasing investment in transmission, distribution, and new programs. Substantial cash from PSEG Power and PSE&G is expected to be available for additional growth and share repurchases.
This document provides an overview of Public Service Enterprise Group (PSEG) and its subsidiaries PSEG Power and PSE&G. It discusses PSEG's assets, earnings guidance, capital spending plans, and positioning in the energy industry. PSEG Power has a diverse fleet of generating assets located in attractive markets in the Northeast. Strong cash flow from Power will provide PSEG with $2.5 billion in discretionary cash through 2011 to support investments, shareholder dividends, and debt payments. Power's assets are well positioned for carbon-constrained environments.
Merrill Lynch Global Power & Gas Leaders Presentationfinance14
The document is a presentation by Exelon Corporation to investors at the Merrill Lynch Power & Gas Leaders Conference on September 25, 2007. It summarizes Exelon's strategic direction of protecting current value while growing long-term value through operational excellence, supporting competitive markets, and evaluating new growth opportunities. It highlights Exelon's strong financial performance with 12% annual operating EPS growth since 2000, and expectations for continued growth through 2011 driven by its generation business and ComEd's regulatory recovery plan. The presentation also reviews Exelon's financial policies and balance sheet capacity, positioning it well for future opportunities.
FIS Bank of America Conference September 2008finance48
Fidelity National Information Services is a leading global provider of payment processing and core banking services. It generates $2.9 billion in annual revenue, with 86% coming from recurring sources. It has a large diverse customer base including community banks, mid-sized and large U.S. banks, and financial institutions in over 80 countries. The company has the most comprehensive product portfolio in the industry and strong positions across various market segments.
GE Capital held an investor meeting on March 19, 2009 to discuss its funding and liquidity position, portfolio risk management, business reviews and stress testing results, and financial outlook. Key messages included that GE Capital's 2009 long-term funding needs were 93% complete, it had $60 billion in liquidity, and stress testing indicated it was well capitalized and expected to remain profitable even in a severe economic downturn. The presentation addressed questions about GE Capital's commercial real estate, mortgage, consumer credit and other investment exposures.
public serviceenterprise group Morgan Stanley FINALfinance20
Public Service Enterprise Group held a presentation at the 15th Annual Global Electricity and Energy Conference on April 2, 2008. The presentation discussed PSEG's focus on operational excellence, participation in regulatory and market discussions, and growth opportunities with manageable risk. PSEG forecasts earnings growth of 8-9% annually through 2011, driven by stable revenues from its electric generation, transmission, and distribution businesses and the deployment of over $3 billion in discretionary cash through 2011.
This document provides an overview of Chesapeake Energy Corporation (CHK) from a March 2009 investor presentation. It summarizes that CHK is a leading producer of natural gas in the US, with production of over 2 billion cubic feet per day. It has top-quality assets in major shale plays like the Haynesville, Marcellus, Barnett, and Fayetteville, giving it low finding and development costs. Joint venture deals have also provided significant value for the company while improving its balance sheet. Looking ahead, CHK expects to continue increasing production and reserves at a low cost despite the economic downturn.
The document contains a single number - 5.5% - which appears to indicate a percentage or rate of some kind. No other context or details are provided that would help explain what the given percentage refers to.
The document contains a single number - 5.5% - which appears to indicate a percentage or rate of some kind. No other context or details are provided that would help explain the meaning or significance of this number.
This document provides an overview of Chesapeake Energy Corporation (CHK) from a March 2009 investor presentation. It summarizes that CHK is a leading producer of natural gas in the US, with production of over 2 billion cubic feet per day. It has top-quality assets in major shale plays like the Haynesville, Marcellus, Barnett, and Fayetteville shales. CHK has captured value through joint venture deals in these plays while maintaining high production growth rates and low finding costs. The document outlines CHK's competitive advantages that position it well during an economic downturn.
This document provides an overview of Chesapeake Energy Corporation (CHK) from a March 2009 investor presentation. It summarizes that CHK is a leading producer of natural gas in the US, with production of over 2 billion cubic feet per day. It has top-quality assets in major shale plays like the Haynesville, Marcellus, Barnett, and Fayetteville shales. CHK has captured value through joint venture deals in these plays while maintaining high production growth rates and low finding costs. The document outlines CHK's competitive advantages that position it well during an economic downturn.
The document contains a single number - 5.5% - which appears to indicate a percentage or rate of some kind. No other context or details are provided, so a concise 3 sentence summary cannot capture much meaningful information from this very brief document.
The document contains a single number - 5.5% - which appears to indicate a percentage or rate of some kind. No other context or details are provided that would help explain what the given percentage refers to.
This document provides an overview of Chesapeake Energy Corporation (CHK) from a March 2009 investor presentation. It summarizes that CHK is a leading producer of natural gas in the US, with production of over 2 billion cubic feet per day. It has top-quality assets in major shale plays like the Haynesville, Marcellus, Barnett, and Fayetteville, giving it low finding and development costs. Joint venture deals have also provided significant value for the company while improving its balance sheet. Looking ahead, CHK expects to continue increasing production and reserves at a low cost despite the economic downturn.
This document contains selected historical net revenue and EBITDA data by resort for MGM MIRAGE and its subsidiaries. It shows that for the quarter ending September 30, 2004, Mandalay Bay had the highest net revenue of $194,864,000 and EBITDA of $47,807,000. Overall for 2004, Mandalay Bay had the highest annual net revenue of $823,464,000 and EBITDA of $241,512,000 among all the listed resorts. The data is broken out by quarter and resort, with notes on what properties are included in certain categories.
This document provides pro forma net revenues and EBITDA by resort for MGM MIRAGE and subsidiaries for the second quarter and first half of 2005 and 2004. It shows that the Bellagio and MGM Grand Las Vegas resorts generated the highest net revenues and EBITDA amounts both quarterly and year-to-date. Additional data includes pro forma results for other Nevada properties, MGM Grand Detroit, and Mississippi properties including Beau Rivage and Gold Strike Tunica. Schedules also reconcile operating income to EBITDA for the periods presented.
This document provides supplemental data on net revenues and EBITDA by resort for MGM MIRAGE and its subsidiaries. It shows that for the second quarter of 2005, net revenues increased over 60% and EBITDA increased over 47% compared to the same period in 2004. The largest contributors to net revenues and EBITDA were the Bellagio, MGM Grand Las Vegas, and other Las Vegas Strip properties. EBITDA margins expanded as several new acquisitions were integrated into operations.
2. Safe Harbor Statement & Regulation G
This presentation contains forward-looking statements, which are
subject to various risks and uncertainties. Discussion of risks and
uncertainties that could cause actual results to differ materially from
management's current projections, forecasts, estimates and
expectations is contained in the company's SEC filings. In addition to
the risks and uncertainties set forth in the company’s SEC filings, the
forward looking statements in this presentation could be affected by the
ability of the company to implement initiatives that are part of the
restructuring, operational improvement, and cost reduction program,
and the terms under which the company executes those initiatives, and
any adjustments as a result of the planned reevaluation of the financial
strategy pursuant to the recent change of the company’s credit ratings
by Standard & Poor’s Ratings Services.
Regulation G
This presentation includes certain non-GAAP financial measures. A
reconciliation of these measures to the most directly comparable GAAP
measure is included in the appendix of the printed version of the slides
and the version included on the company’s website at
www.txucorp.com under Investor Resources/Presentations.
1
3. Key Questions That Get To The Heart Of Our Business
1. What is TXU’s fundamental business strategy?
2. What are the goals of TXU’s financial strategy?
3. How is the restructured Texas electricity market performing?
4. What is TXU’s exposure to natural gas and heat rate?
5. What are TXU’s perspectives on mid and long term growth?
2
4. TXU – Transforming Into An Industrial Energy Company…
…focused on
TXU has 3 structurally …enabled by an
delivering top quartile
advantaged industrial skill set…
financial performance
businesses…
Earnings
Earnings
Power
Power
• EPS
• Cash flow
TXU Power
Returns
Returns
Operational Market Risk/Return
Excellence Leadership Mindset
• ROIC
• Total return to
shareholders
TXU Electric
Performance Financial
Financial
Delivery
Management Flexibility
Flexibility
• EBITDA/Interest
• Total debt/Enterprise
value
• Total debt/EBITDA
TXU Energy
3
5. …Enabled By An Industrial Skill Set
Market Leadership
Operational Excellence Risk/Return Mindset
• Superior customer service/
• Top decile throughput • Strict capital allocation
brand management discipline
• World class industrial
• Customer segmentation
production costs • Risk/return restructuring
and pricing
• Industry leading reliability • Commodity risk
• Distinctive commodity management
• Lean corporate SG&A
sourcing
Performance Management
• High performance culture
• Balanced cascading scorecards
• Employee development
• Incentives linked to key value drivers
4
7. Market Leadership: Improving The Profile Of Our Customer
Mix
Losing lower profitability customers in …Gaining higher profitability customers
North Texas… out of territory
In-territory residential switching Out of territory customer counts
03-04; Thousands of customers 03-04; Thousands of customers
230
194
Better 164
48%
profit- 148
ability Better
38%
69%
profit-
57%
ability
Lower Lower
52% 62%
43% 31%
profit- profit-
ability ability
03 04 03 04
TXU is focused on retaining the most profitable in territory
TXU is focused on retaining the most profitable in territory
customers and building a profitable out of territory business
customers and building a profitable out of territory business
6
8. The Risk Return Mindset Is Focused On Optimizing The
Risk Return Profile For All Key Stakeholders
Major business risks
Dec 03 Oct 04 May 05
• Underwater gas hedge
• Poor financial forecasting
• Poor performance management
• High fixed costs
• Poor customer service
• Underfunded capital programs
• Weak governance
• Uneconomic leases/contracts • Uneconomic leases/contracts
• Litigation • Litigation
• Unregulated pension costs • Unregulated pension costs
• Above market OPEB • Above market OPEB
• Substantial bad debt • Substantial bad debt
• Legislative risk • Legislative risk
• Single plant nuclear risk • Single plant nuclear risk • Single plant nuclear risk
• Environmental risk • Environmental risk • Environmental risk
• Gas price risk • Gas price risk • Gas price risk
05E normalized $0.8 billion $0.9 billion $1.7 – $1.8 billion
FCF
05E normalized $2.52 $3.75 $7.00 – $7.45
FCF/share
Enterprise value $18.7 billion $27.8 billion $31.2 billion
7
9. Key Questions That Get To The Heart Of Our Business
1. What is TXU’s fundamental business strategy?
2. What are the goals of TXU’s financial strategy?
3. How is the restructured Texas electricity market performing?
4. What is TXU’s exposure to natural gas and heat rate?
5. What are TXU’s perspectives on mid and long term growth?
8
10. TXU Is Focused On Achieving Balanced Financial
Performance…
Increased
Earning
Power
Increased
Value
Increased
Increased
Financial
Returns
Flexibility
TXU’s ultimate financial objective is to
TXU’s ultimate financial objective is to
simultaneously improve all three economic dimensions
simultaneously improve all three economic dimensions
9
11. …By Improving The Fundamental Building Blocks Of Percent
Financial Health… improvement:
Units 03-05E
Top performance Generation $/MWh 44%
Gross
Area for improvement
Margin
Residential retail $/MWh (45)%
Sub par performance
Baseload generation TWh 5%
Volume
Res. and SMB load TWh (14)%
$ millions 3%
O&M
Increasing
operational Cost
TXU $ millions 7%
cash flow SG&A
Value
$ billions (2)%
Debt (ex. securitization)
Interest
Percent 4%
Interest rate
n/a
Percent
Taxes Cash tax rate
$ millions (4)%
Working capital
Optimizing
$ millions (35)%
Capex
capital
deployment
Percent 43%
Capital structure (D/EV)
10
12. …And Through A Rigorous Cash Allocation Process To
Optimize The Risk Reward Profile For All Stakeholders
Retained for
Investment
TXU Business Units
Cash
Flow
Excess Excess Excess
Excess
from
“Customer” Reinvest Financial Dividend
Oper-
Capital -ment Flexibility Payout
ations
and
Asset
Yes Yes, if Yes, until Yes
Sales
Quality service 50% of cash Coverage ratio Payout of Repurchases
Production returned within Debt/EBITDA 30-40% or Distributions
reliability 3 years Debt/EV
Minimum ROI
Total Payout
of 15%
Cap - 75% of
Operational
Earnings
Equity
Debt
Holders Holders
11
13. Potential Revisions Discussed With The Rating Agencies
Element Unit Value Remarks
05E share count - May 5 release Million shares 240
Adjustment Million shares 2-3 3-4 mm shares repurchased instead of 6 mm
Revised 05E share count Million shares 242-243
05E EPS - May 5 release EPS 6.25-6.45
Lower share count EPS (0.06) Reduction in share repurchases
Lower interest expense EPS 0.03 Lower interest net of preferred dividends
Increased contribution margin EPS 0.02 Increased base load production
Lower SG&A expense EPS 0.01 Lower SG&A and bad debt expense
05E EPS EPS 6.25-6.45 No change to earnings guidance
05E year-end debt1 – May 5
release $ billions 12.3
Refinance $300 mm of
preferred $ billions (0.3) Refinance $300 mm of preference stock
Reduction of share repurchases to 3-4
Lower share repurchases $ billions (0.2) million
No repurchase of operating lease;
Capital expenditure review $ billions (0.2) reduction of capital expenditures
Asset sales; optimization of cash levels;
Asset sales/cash redeployment $ billions (0.2) litigation-related insurance recoveries
Revised 05E year-end debt $ billions 11.4
1 Excludes transition bonds 12
14. The Ultimate Goal Is Balanced Performance Against All Key
Metrics
Operational EPS1 Normalized operating cash flow2
03-05E; $ per share 03-05E; $ billions
2.6-2.7
6.25-6.45 2.0
302% 77%
302% 77%
1.5
2.82
1.58
03 04 05E 03 04 05E
Increased returns: ROIC
Normalized free cash flow3
03-05E; Percent
1.7-1.8
03-05E; $ billions
14.6
150% 161%
150% 161%
1.0
8.4
0.7
5.6
03 04 05E
03 04 05E
1 Results are from continuing operations excluding special items
2 2003 normalized operating cash flow ($2.4B) excluding cash tax refund ($0.6B) and 2002 collections; 2004 normalized operating cash flow ($1.8B)
excluding special items (-$0.3B); 2005 normalized operating cash flow excludes an estimated $125 million of special items
13
3 Normalized Free Cash Flow is defined as Normalized Operating Cash Flow less capital expenditure and nuclear fuel
15. Understanding TXU’s Short-Term Growth Outlook
Component $/share
05 guidance midpoint (4th quarter 04) 5.75
Expected growth 05-06 (16%-20%) 0.90 – 1.15
06 guidance (4th quarter 04) 6.65 – 6.90
Higher natural gas and wholesale prices1 1.20
Adjusted 06 guidance 7.85 – 8.10
Increased share count2 (0.10)
Increased churn and demand elasticity (0.15)
Contingency (0.25)
Revised 06 guidance3 7.35 – 7.60
Revised guidance based on cal 06 natural gas price of $7.07/MMBtu
Revised guidance based on cal 06 natural gas price of $7.07/MMBtu
Based on Monday’s cal 06 natural gas price of $7.81/MMBtu, the contingency would
Based on Monday’s cal 06 natural gas price of $7.81/MMBtu, the contingency would
be reduced to ($0.10) and the new range would be $7.50-$7.75
be reduced to ($0.10) and the new range would be $7.50-$7.75
1 Includes increased wholesale prices due to higher gas prices, and fuel factor adjustments to $7.87/MMBtu natural gas
2 Includes change in dilution due to long term compensation, increase in share price, other
3 TXU plans to conduct a detailed review of the 06 business plan over the summer, and provide an updated outlook in the fall
14
16. Performance Has Rewarded Debt Holders With Superior
And Consistently Improving Financial Flexibility…
Financial metrics for S&P Electric Utility Index1
03-05E; Mixed measures
Median Top
Bottom
TXU 03 TXU 04 TXU 05E
4.0 4.8
3.0
EBITDA/interest
(X)
1.7 3.9 4.3 6.0
5.5
4.2 3.2
5.1
Total debt/EBITDA
(X)
7.8 4.2 3.7 3.2 2.2
42.7 37.1
64.8
Total debt/
enterprise value2
(%) 50.2 45.2 20.8
73.1 37.1
1 Quartile based on LTM as of Dec 04 performance; TXU 05E performance based on current outlook
2 Enterprise Value as of 04/29/05
15
17. …And A Capital Structure That Is Closer To Optimal
Weighted average cost of capital (WACC)
03-05E; Percent
9.0%
09 upside case 1 09 mid case 2 09 downside case 3
8.5%
8.0%
7.5%
03
7.0%
05E
6.5% 04
6.0%
5.5% Acceptable range
5.0%
0 10 20 30 40 50 60 70 80
Debt/Enterprise Value
Percent
The current capital allocation process maintains an
The current capital allocation process maintains an
extremely strong capital structure even in downside scenarios
extremely strong capital structure even in downside scenarios
1 07+ heat rate = 9.5 MMBtu/MWh; gas price = $8/MMBtu; residential churn=6%; EV/EBITDA= 7.5
2 07+ heat rate = 8.5 MMBtu/MWh; gas price = $7/MMBtu; residential churn=8%; EV/EBITDA= 7.5
3 07+ heat rate = 7.5 MMBtu/MWh; gas price = $4/MMBtu; residential churn=10%; EV/EBITDA= 7.5 16
18. Key Questions That Get To The Heart Of Our Business
1. What is TXU’s fundamental business strategy?
2. What are the goals of TXU’s financial strategy?
3. How is the restructured Texas electricity market performing?
4. What is TXU’s exposure to natural gas and heat rate?
5. What are TXU’s perspectives on mid and long term growth?
17
19. In The Generation Market, Competition Has Spurred
Investment And Improved Efficiency…
TXU owns 10,300 MW of
gas/oil generation
ERCOT generation portfolio: Average variable cost • 9,400 MW of gas
04; $/MWh • 900 MW of CT’s
200
Internal
TXU owns 8,100 MW of
combustion
solid fuel generation:
• 5,800 MW of lignite
150
• 2,300 MW of nuclear
Gas/oil
22 GW of new efficient
100 capacity
($15 billion investment)
Wind
Coal CCGT
50
Nuclear
0
0 10 20 30 40 50 60 70 80 90
Cumulative Capacity
GW
Wholesale prices are 40% lower than they would have been under regulation
Wholesale prices are 40% lower than they would have been under regulation
18
20. … Giving Customers In Texas Access To Lower Prices Than
Before Restructuring
Change in best available price
Dec 01 – Dec 04; Percent
180
101
25.2
8.4
7.5
3.7
-1.2
-1 -3.2
-3
-6.9
North Colorado Arizona Oklahoma Arkansas Gasoline
Texas
Houston Louisiana Utah New Natural gas
Mexico
Competitive providers have used efficiency
Competitive providers have used efficiency
to combat higher purchased power costs
to combat higher purchased power costs
Source: Texas PUC, EIA
19
21. This Has Led To Significant Switching, Making Texas The
Only Functioning Competitive Retail Market
Significant competition: Net incumbent switch rates
May 05; Percent of load
73
72
28 14
4
Large Small and Residential Local Long distance
Business Medium telephone 3 3 years after
Business years after restructuring
restructuring
ERCOT retail switching
The only true market: Net residential incumbent switch rates
Feb 05; Percent of load
1
28
8 7
3 3
2 2 2 1 1
TX DC NY PA MD OH MA CT ME CA
1 TX data May 05 20
22. Texas Customers Receive Superior Customer Service,
Even When Benchmarked Against More Mature Industries…
Average speed of answer
03-05; Seconds
489
280
96% 98%
96% 98%
52
12 16
12
03 Avg Q1 05 Baby Bell National
April 04 Oct 04
telephone financial
TXU Energy ERCOT Competitor
company services
company
Service excellence across all competitors
Service excellence across all competitors
Source: TXU
21
23. Key Questions That Get To The Heart Of Our Business
1. What is TXU’s fundamental business strategy?
2. What are the goals of TXU’s financial strategy?
3. How is the restructured Texas electricity market performing?
4. What is TXU’s exposure to natural gas and heat rate?
5. What are TXU’s perspectives on mid and long term growth?
22
24. Understanding TXU’s Heat Rate And Gas Position In 05
(Full-Year View)
05 7X24
05 adjusted heat rate 05 nat gas
volumes MMBtu / Million
TWh MWh MMBtu
Baseload production 60 8.0 480
Gas plants1 8 N/A 0
PPAs/Tolls/Other2 9 N/A 9
Total sources 77 489
Retail3 (61) 8.0 (488)
Net position 16 (1)
Heat rate Natural gas
Heat rate Natural gas
position4 position44
position4 position
1 Since TXU gas plants often operate close to the margin, their gas equivalent position is approximately zero. If they are able to run at more positive spark
spreads, they will behave like a long natural gas position.
2 Other items include wholesale heat rate positions that do not create incremental natural gas price exposure
3 Assumes no fuel factor adjustment; retail load adjusted for adders linked to shape of retail load; line losses and UFE; congestion; and ancillary services
4 Current positions
23
25. TXU’s Position Is Relatively Balanced To Natural Gas In The
Short To Mid Term…
05 nat gas 06 nat gas 07 nat gas
position position1 position1
Million MMBtu Million MMBtu Million MMBtu
Baseload production 480 490 480
Gas plants2 0 0 0
PPAs/Tolls/Other3 9 5 0
Total sources 489 495 480
Retail4 (488) (425) (365)
Net position (1) 70 115
By the end of 05, we expect to reduce our 06 position to ~30-50 million MMBtu
By the end of 05, we expect to reduce our 06 position to ~30-50 million MMBtu
and the 07 position to ~75-100 million MMBtu
and the 07 position to ~75-100 million MMBtu
1 Estimate based on projected price-to-beat volumes net of churn rates, planned production levels, and current contract positions
2 Since TXU gas plants often operate close to the margin, their gas equivalent position is approximately zero. If they are able to run at more positive spark
spreads, they will behave like a long natural gas position.
3 Other items include wholesale heat rate positions that do not create incremental natural gas price exposure.
4 Assumes no fuel factor adjustment; retail load adjusted for adders linked to shape of retail load; line losses and UFE; congestion; and ancillary services
24
26. … Especially Relative To Other Players In The Industry
Equivalent gas production1 Equivalent fixed price short2 Net gas position3
Million MMBtu Million MMBtu Million MMBtu
Company A 700 255 449
Company B 650 345 305
0
Company C 290
290
240
Company D 15 225
TXU Long-
490 300 190
term1
0
Company E 85 85
75
Company F 75
0
1 Estimated long term exposure (2010+)
2 Includes adders to account for shaping, line losses and congestion; Assumes residential, small, medium, and large business are short positions
25
3 Native risk position; excludes gas contracts and hedges
27. TXU’s Exposure To Heat Rate Grows Over Time…
05 heat rate 06 heat rate 07 heat rate
position1 position1 position1
TWh TWh TWh
Baseload production 60 62 60
Gas plants2 8 8 10
PPAs/Tolls/Other3 9 4 4
Total sources 77 74 74
Retail4 (61) (54) (46)
Net underlying position 16 20 28
TXU’s long heat rate exposure is well-positioned and represents a
TXU’s long heat rate exposure is well-positioned and represents a
potential offset to natural gas price volatility
potential offset to natural gas price volatility
1 Estimate based on projected price-to-beat volumes net of churn rates, planned production levels, and current contract positions
2 Since TXU gas plants often operate close to the margin, their gas equivalent position is approximately zero. If they are able to run at more positive spark
spreads, they will behave like a long natural gas position.
3 Other items include wholesale heat rate positions that do not create incremental natural gas price exposure.
4 Assumes no fuel factor adjustment; retail load adjusted for adders linked to shape of retail load; line losses and UFE; congestion; and ancillary services
26
29. This Position Provides An Additional Hedge To Gas Price
Declines $ millions 1
Percent
Estimated EBITDA impact1 (relative to forward curve as of June 1, 2005)
07E; $ millions
Gas price ($/MMBtu)
Heat rate
(MMBtu/MWh) 7.142
4.00 6.00 8.00
-145 192 385 530
10.0
8.8%
-3.3% 4.4% 12.1%
-255 30 190 315
9.0
4.3%
-5.8% 0.7% 7.2%
-360 -130 0 100
8.02
0.0%
-8.2% -3.0% 2.3%
-415 -210 -95 -10
7.5
-2.2%
-9.4% -4.8% -0.2%
Based on current curves/position estimates the following thumbrules apply:
Based on current curves/position estimates the following thumbrules apply:
Gas price: +/- $1/MMBtu ~ +/- $115 million in EBITDA in 07
Gas price: +/- $1/MMBtu ~ +/- $115 million in EBITDA in 07
Heat rate: +/- 1 MMBtu/MWh ~ +/- $200 million in EBITDA in 07
Heat rate: +/- 1 MMBtu/MWh ~ +/- $200 million in EBITDA in 07
1 Based on illustrative 07 EBITDA of $4.4 billion
2 Based on forward curves as of June 1, 2005 28
30. Key Questions That Get To The Heart Of Our Business
1. What is TXU’s fundamental business strategy?
2. What are the goals of TXU’s financial strategy?
3. How is the restructured Texas electricity market performing?
4. What is TXU’s exposure to natural gas and heat rate?
5. What are TXU’s perspectives on mid and long term growth?
29
31. Defining TXU’s Growth Strategy
What are our What type of
distinctive assets and
competitive which markets
advantages? do we want to
Assets/
Distinctive compete in?
Businesses
Capabilities
Profitable
Growth
Management
Capital
Capacity
How will we How much free
scale up our cash flow and
management access to capital
practices and do we have?
fill skill gaps? 30
32. A Vision Of The Assets/Businesses In Which We
…And
Want To Compete
Structurally Distinctive asset positions that are difficult
Structurally to recreate
Advantaged
Advantaged Well positioned based on fundamental
Assets
Assets supply and demand economics
Enabled By An Merchant or light touch regulated assets that
Enabled By An provide incentives for constant improvement
Industrial Skill
Industrial Skill Large O&M bases that can reap benefits of
Set
Set lean practices
Natural Assets that provide natural hedge to existing
Natural commodity positions
Commodity
Commodity Assets that can be resilient throughout the
Benefits
Benefits commodity cycle
31
33. Assets/Businesses: TXU Is In The Process Of Evaluating A
Portfolio Of Organic Growth Initiatives…
Potential annual EBIT
Potential capex impact
$ millions $ millions
Initiative Low High Low High
Twin Oak lignite reserves 60 80 40 60
Unlocking Barnett Shale -- -- 20 40
trapped value Real estate sales -- -- 5 10
Subtotal 60 80 65 110
Texas coal development 200 300 40 50
Renewables 60 70 10 15
New product
BPL -- -- 10 25
Subtotal 260 370 60 90
Coal plant operations -- -- 15 20
New services
Subtotal -- -- 15 20
Out of territory retail 30 40 70 90
New markets
Subtotal 30 40 70 90
Total 350 490 210 310
32
34. TXU Has Significant Free Cash Flow To Invest In Profitable
Growth Initiatives
Prior to any additional
Cumulative operating cash flow leverage, $3 billion could:
05E-07E (indicative); $ billions
Build a 2000 MW coal plant
Build a 2000 MW coal plant
9.0-9.5
Invest in 5 mid merit CCGT
Cash for Invest in 5 mid merit CCGT
plants
investment/ plants
distribution to
4.1-5.1
capital Invest in a 4 million
Invest in a 4 million
providers customer incumbent retail
customer incumbent retail
position
position
1.65-1.75 Invest in a 7,500 mile
Dividends Invest in a 7,500 mile
interstate gas transport
interstate gas transport
system
system
Capex 2.8-3.2
Build 6-7 BCF/day of LNG
Build 6-7 BCF/day of LNG
capacity
capacity
05E-07E
33
35. TXU: A Structurally Advantaged Portfolio With Significant
Upside
Focused on continuous improvement of three structurally
advantaged core businesses to deliver superior financial metrics
– 2X earnings power
– Double digit ROIC
– Top quartile financial flexibility
Financial strategy based around maximizing cash returns to
stakeholders
Integrated business model is resilient under multiple scenarios with
relatively low gas risk and with large heat rate upside
Evaluating intrinsic and extrinsic growth options while maintaining a
disciplined capital allocation approach
34
37. Appendix –
Financial Definitions and
Regulation G Reconciliations
38. Financial Definitions
Measure Definition
Capex Capital expenditures.
Cash Interest Expense Interest expense and related charges less amortization of discount and reacquired debt expense plus
(non-GAAP) capitalized interest. Cash interest expense is a measure used by TXU to assess credit quality.
Contribution Margin Operating revenues (GAAP) less Cost of energy sold and delivery fees (GAAP).
EBITDA (non-GAAP) Income from continuing operations before interest income, interest expense and related charges, and
income tax plus depreciation and amortization and special items. EBITDA is a measure used by TXU to
assess performance.
EBITDA/Interest (non-GAAP) EBITDA divided by cash interest expense is a measure used by TXU to assess credit quality.
Enterprise Value (non-GAAP) Total debt plus preference stock plus market capitalization less cash and restricted cash.
Market Capitalization Shares of common stock outstanding multiplied by closing share price as of the balance sheet date.
(non-GAAP) Measures the market value of a company’s equity at a point in time.
Normalized Free Cash Flow Cash from operating activities, adjusted for unusual or nonrecurring items, less capital expenditures and
(non-GAAP) nuclear fuel. Used by TXU predominantly as a forecasting tool to estimate cash available for dividends, debt
reduction, and other investments.
Normalized Free Cash Flow For 2003 and 2004: normalized free cash flow per average share (diluted) divided by year-end share price.
Yield For 2005: 2005 estimated normalized free cash flow per average share (diluted) divided by May 13, 2005
(non-GAAP) share price.
Normalized Operating Cash Cash provided by operating activities adjusted for unusual or nonrecurring items. Used by TXU
Flow predominantly as a forecasting tool to estimate cash available for capital expenditures, nuclear fuel,
(non-GAAP) dividends, debt reduction and other investments.
Operational Earnings per Share Per share (diluted) income from continuing operations net of preference stock dividends, excluding special
(non-GAAP) items and the adjustment in 2005 for the estimated cost of a true-up payment on the 52.5 million share
accelerated common stock repurchase. TXU relies on operational earnings for evaluation of performance
and believes that analysis of the business by external users is enhanced by visibility to both reported GAAP
earnings and operational earnings.
37
39. Financial Definitions – cont.
Measure Definition
Return on Invested Capital Operational earnings plus preference stock dividends plus after-tax interest expense and related charges,
(ROIC) net of interest income on restricted cash related to debt, divided by the average of the beginning and ending
(non-GAAP) total capitalization less debt-related restricted cash. This measure is used by TXU to evaluate operational
performance and management effectiveness.
Special Items Unusual charges related to the implementation of the performance improvement program and other
charges, credits or gains, that are unusual or nonrecurring. The performance improvement program is being
implemented in phases, and the charges are expected to occur largely within a one-year period. Special
items are included in reported GAAP earnings, but are excluded from operational earnings. Special items
associated with the performance improvement program include debt extinguishment losses and costs
related to severance programs, asset impairments and facility closures.
Total Debt (GAAP) Long-term debt (including current portion), plus bank loans and commercial paper, plus long-term debt held
by subsidiary trusts, plus preferred securities of subsidiaries, including exchangeable preferred
membership interests (EPMIs). 2003 total debt includes debt related to Telecom and discontinued
operations.
Total Debt/EBITDA (non-GAAP) Total debt less transition bonds and debt-related restricted cash divided by EBITDA. Transition, or
securitization, bonds are serviced by a regulatory transition charge on wires rates and are therefore
excluded from debt in credit reviews. Debt-related restricted cash is treated as net debt in credit reviews.
Total debt/EBITDA is a measure used by TXU to access credit quality.
Total Debt/Enterprise Value Total debt less transition bonds divided by enterprise value is used by TXU to assess credit quality.
(D/EV) (non-GAAP)
38
40. Table 1: TXU Corp. Operational Earnings Reconciliation
Twelve Months Ended December 31, 2004 and 2003
$ per share after tax
04 03
Net income (loss) to common (1.29) 1.62
Discontinued operations (1.26) (0.20)
Extraordinary gain (0.05) -
Cum. effect of changes in accounting principles (0.03) 0.15
Premium on EPMIs 2.83 -
Preference stock dividends 0.07 0.06
Income from continuing operations 0.27 1.63
Preference stock dividends (0.07) (0.06)
Effect of diluted shares calculation 0.04 0.01
Special items 2.58 -
Operational earnings 2.82 1.58
39
41. Table 2: TXU Corp. Normalized Operating Cash Flow, Normalized Free
Cash Flow and Normalized Free Cash Flow Yield
Twelve Months Ended December 31, 2004 and 2003
$ millions, unless otherwise noted
04 03 Ref
Reported cash provided by operating activities 1,758 2,413
Special items 284 -
2003 tax refund - (601)
2002 collections in 2003 - (337)
Normalized operating cash flow 2,042 1,475
Capital expenditures (912) (721)
Nuclear fuel (87) (44)
Normalized free cash flow 1,043 710
Average diluted common shares outstanding - millions 321 379
Normalized free cash flow per share - $ per share $3.25 $1.87 A
Year-end common stock closing price - $ per share $64.56 $23.72 B
Normalized free cash flow yield - % (A/B) 5.0% 7.9%
40
42. Table 3: TXU Corp. Return On Average Invested Capital Calculation
Twelve Months Ended December 31, 2004 and 2003
$ millions, unless otherwise noted
04 03 Ref
Net income 485 582
After-tax interest expense and related charges net of interest income 434 486
Total return (based on net income) 919 1,068 A
Operational earnings 887 544
Preference stock dividends 22 22
After-tax interest expense and related charges net of interest income(1) 434 486
Total return (based on operational earnings) 1,343 1,052 B
Average total capitalization 16,019 18,831 C
Return on average invested capital–based on net income - % (A/C) 5.7 5.7
Return on average invested capital–based on operational earnings - % (B/C) 8.4 5.6
___________
(1)After-tax interest expense and related charges net of interest income
Interest expense 695 784
Interest income (28) (36)
Net 667 748
Tax at 35% 233 262
Net of tax 434 486
41
43. Table 4: TXU Corp. Interest and Debt Coverage Ratios
Twelve Months Ended December 31, 2004 and 2003
$ millions, unless otherwise noted
04 03 Ref
Income from continuing operations before income taxes and extraordinary items 123 818
Interest expense and related charges 695 784
Interest income (28) (36)
Depreciation and amortization 760 724
Special Items 1,190 -
EBITDA 2,740 2,290 A
Interest expense and related charges 695 784
Amortization of discount and reacquired debt expense (27) (31)
Capitalized interest 12 12
Cash interest expense 680 765 B
Total debt 12,889 12,591 C
Transition bonds (1,258) (500)
Debt-related restricted cash - (525)
Total debt less transition bonds and debt-related restricted cash 11,631 11,566 D
Cash provided by operating activities 1,758 2,413 E
Reconciling adjustments from cash flow statement 1,677 1,847
Income from continuing operations 81 566
EBITDA/interest – ratio (A/B) 4.0 3.0
Debt/EBITDA – ratio (D/A) 4.2 5.1
Cash provided by operating activities/cash interest expense – ratio (E/B) 2.6 3.2
Total debt/cash provided by operating activities – ratio (C/E) 7.3 5.2
42
44. Table 5: TXU Corp. Total Debt to Enterprise Value
Years Ended December 31, 2004 and 2003
$ millions, unless otherwise noted
May 05 2004 Oct. 04 2003 Ref
Debt
Notes payable 395 210 565 -
Long-term debt due currently 624 229 1,858 678
Long-term debt held by subsidiary trusts - - 155 546
Other long-term debt less due current 11,970 12,412 9,394 10,608
Transition bonds (1,237) (1,258) (1,267) (500) A
Preferred securities of subsidiaries 38 38 113 759
Total debt less transition bonds 11,790 11,631 10,818 12,091 B
Preference stock 300 300 300 300
Total debt and preference stock 12,090 11,931 11,118 12,391 C
Market capitalization
Shares outstanding 240 240 292 324
Price per share 80.28 64.56 61.22 23.72
Total market capitalization 19,267 15,494 17,876 7,685
Cash and restricted cash (174) (202) (1200) (1,423)
Enterprise Value 31,183 27,223 27,794 18,653 D
Debt to enterprise value - % (B/D) 37.8 42.7 38.9 64.8
Common equity (GAAP) 643 339 4,420 5,619 E
Total Capital (C-A+E) (GAAP) 13,970 13,528 16,805 18,510 F
Debt/Total Capital -% (B-A)/F 93.2 95.3 71.9 68.0
43