energy future holindings _050505
Transcript of energy future holindings _050505
First Quarter 2005 Earnings Discussion
May 5, 2005
Slide 1: 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 earnings release and SEC filings.
Regulation GThis 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.
TXU Corp. Consolidated
TXU Electric Delivery
TXU Energy Holdings
158%158%
0.43
1.01
Q1 04 Q1 05
0.17 0.30
Q1 04 Q1 05
0.33
0.85
Q1 04 Q1 05135%135%
Operational Earnings Contribution by SegmentQ1 04 vs. Q1 05; $ per diluted share
Slide 2: Solid Performance By All Core Businesses
76%76%
Slide 3: TXU Corp. Earnings Walk Forward By Segment
Consolidated – Earnings Walk ForwardQ1 04 to Q1 05; $millions and $ per share after tax
0.32-Effect of reduced shares
246
12
6
79
149$Millions
0.21Energy Holdings segment
0.02Electric Delivery segment
0.03Corporate expenses
1.01Q1 05 operational earnings
0.43Q1 04 operational earnings$ Per ShareEarnings Component
(45)
(29)
(16)$Millions
(0.07)Negative effect of weather
(0.11)Negative effect of commodity drivers
(0.18)Total
$ Per ShareWeather and Commodity Drivers
Pro Forma Variance1 by BusinessQ1 05 vs. Q1 04; $millions
Slide 4: TXU Power Driving TXU Energy Holdings Improvement
13(1)14Special items
45(82)127Contribution margin
118(24)142Operational EBIT
735815Other costs and expenses
131(25)156EBIT
TotalPower EnergyComponent
1 Based upon an estimated floating market-based transfer price.
Slide 5: Although Margins Have Improved, Long-Term ROIC’s For TXU Power Must Still Be Improved
0.0 7.5 8.413.9
7.4
TXU Baseload Plant ROIC1
02-05E; percent
1 Net income divided by PPE.2 Based on 05 operational assumptions with $4.50/MMBtu gas price and 9.0 MMBtu/MWh heat rate.
E&P Refining Steel Pulp & paper
ROIC1 Performance in Other Asset-Intensive Industries 90-03; percent
Long-term target = 10%
Min
Max18
52
04
1216
12
Avg
Long-term2
05E040302
Slide 6: While Regulated Rates Have Risen In Neighboring States, Competitive Rates Have Fallen In Texas
Source: Texas PUC, EIA
Competitive providers have used efficiency to combat higher purchased power costs
Competitive providers have used efficiency to combat higher purchased power costs
133
88
11
15
-1-3
Change in Best Available PriceDec 01 – Dec 04; percent
NorthTexas
NewMexico
Oklahoma
Utah
Arizona
Louisiana
Colorado Arkansas
Houston
Gasoline
Natural gas
180101
Slide 7: ERCOT Power Prices Are Highly Correlated To Natural Gas Prices
$0
$20
$40
$60
$80
Mar-02 Aug-02 Feb-03 Aug-03 Feb-04 Aug-04 Feb-05$0
$2
$4
$6
$8
$10
Natural Gas Price1
$/MMBtu
1 20 day rolling averageSource: MegaWatt Daily
Natural gas price
ERCOT North Zone (7X24) power
The correlation remains extremely strong with an R2 of almost 0.90The correlation remains extremely strong with an R2 of almost 0.90
ERCOT North Zone (7X24) Power Price1
$/MWh
Slide 8: While 7X24 Heat Rates Have Remained Close To 8, Residential Heat Rates Have Remained Close to 10
ERCOT Heat Rate1
98-09; MMBtu/MWh
0
4
8
12
16
98 99 00 01 02 03 04 05E 06E 07E 08E 09E
7X24 heat rate
1 Heat rate is a measure of the efficiency of converting a unit of fuel (MMBtu) into a unit of electricity (MWh); lower heat rate implies higher efficiency.2 Based on shaping premium, cost of ancillary services, congestion, energy losses, UFE.
Source: MegaWatt Daily, Gas Daily, Henwood
Market open
7X24 forward curve
“Residential heat rate2”
Slide 9: Residential Retail Gross Margins Have Been Small…
1 Based on $6.52 fuel factor.
Lowering the implied heat rate in the PTB would make it impossible for new entrants to compete and make the business unsustainable in the long-term for TXU
Lowering the implied heat rate in the PTB would make it impossible for new entrants to compete and make the business unsustainable in the long-term for TXU
Residential Contribution Margins02-05; percent
22
4
Current PTB (8 heat rate)
TXU North Texas new entrant
Jan 02 – Apr 05
Apr 051
Modified PTB(7 heat rate)
Modified PTB(9.5 heat rate)
19
2
9
(3)
13
(7)
18
(2)
27
12
Jan 02 – Apr 05
Apr 051
Jan 02 – Apr 05
Apr 051
Slide 10: …Especially When Compared With Other Retail Sectors
Contribution Margin99-04; percent
55
3830 28 26
189
Specialty apparel
Department stores
Grocery stores
Super-center stores
Drug stores
North Texas
attacker(Jan 02 –Apr -05)
TXURetail
(Jan 02 –Apr 05)
It would take an implied heat rate of 9.5 MMBtu/MWh in the fuel factor to approximate the gross margins seen in these other sectors
It would take an implied heat rate of 9.5 MMBtu/MWh in the fuel factor to approximate the gross margins seen in these other sectors
Slide 11: Legislative And Regulatory Update
PUC has recently testified that the market is working and the PTB has been an important mechanism to encourage competition It is normal and reasonable for a governmental body such as the PUC to make sure that its rules are functioning in concert with market forces, within the structure established by SB7No basis for a significant change in the current PTB rule since the rule as it exists today follows the statute as it exists today
Key Date: May 30th – Last Day of Regular Session PUC “Sunset” Bills (S.B. 408 passed Senate and H.B. 1779 passed House committee)
– 79th Legislature ‘must pass’ a Sunset bill– Re-authorizes PUC for 6 years and addresses other Sunset Recommendations
House and Senate have reaffirmed commitment to competitive market framework of SB7No bills before the legislature to change the PTB Broadband over Power Lines (“BPL”) (S.B. 1748, passed by Senate)Tax Reform / School Finance (H.B. 3, passed by House, Senate currently debating)
Energy Policy Bill (H.R. 6, passed by U.S. House on April 21, 2005)– Enhances reliability through nationwide mandatory electric reliability organization– Promotes transmission construction– Repeals Public Utility Holding Company Act of 1935 (“PUHCA”)– Establishes policies to enhance competitive wholesale market development/investment
TexasLegislature
U.S. Congress
TexasPUC
(re: PTB)
Slide 12: For North Texas Residential, Q1 05 PTB Was Well Below The Market Gas Curve
5.00
5.50
6.00
6.50
7.00
7.50
8.00
Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05
Gas Prices: NYMEX vs. Embedded PTB Fuel Factor Q1 04 to Q1 05; $/MMbtu
Current fuel factor = $ 6.52
NYMEX 12 month forward curveQ1 04 Q1 05
3-6%7-10%Approximate net margin3
19-21%
5.36
5.61
Q1 04
6.92Average gas price1
($/MMBtu)
6.52Gas price embedded in PTB ($/MMBtu)
12-14%Headroom at average gas price2
Q1 05
N. Texas Residential PTBEconomics
1 Simple average of NYMEX 12 month strip during quarter.2 Based on average customer usage of ~1000 kWh/month. Headroom defined as PTB – cost of energy (avg. NYMEX 12 mo. strip x 7.8 heat rate x
assumed 25% - 28% for load shaping, congestion, line losses and other ancillary costs) - avg. wires cost (based on published TXU Electric Delivery Rates, excluding clawback).
3 Net margin includes impact of SG&A, bad debt, income taxes at 35% rate, revenue taxes of 1.8%.Source: NYMEX, PUC, TXU Energy estimates
1 Based on current and pending PTB rates as of 5/2/05 (First Choice and TXU Energy). Current Reliant PTB rate includes impact of recent settlement with PUC and subsequent implementation. WTU has yet to file for PTB relief this year.
13.1
13.6
12.8
12.0 12.1
10
11
12
13
14
WTU RetailEnergy
CPL RetailEnergy
Reliant First Choice TXU Energy
Slide 13: TXU Energy Filed For PTB Relief, But Will Maintain One Of The Lowest PTB Rates In The State
PTB Pricing (assuming a 1,000 kWh/month customer)1
¢/kWh
Current
CurrentProjected - based on filing
Slide 14: North Texas Customer Losses In Q1 05 Exceeded Q1 04 But Mix Improved
0%
1%
2%
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
2003 2004 2005
In-Territory, Residential Customer Net Loss by Quarter03 to Q1 05; percent net loss of service points
• Net customer losses in Q1 05 was high relative to Q1 04 experience and headroom in the market
• Key Q1 05 vs. Q1 04 drivers:
• Gross losses up 14K• Drops to AREP down
14K• Customer mix improved
Q1 05 vs. Q1 04 as indicated by a 56% reduction in bad debt expense
49%51%74%Switches as % of gross losses
1.3%6.7%8.8%Net loss rate (excl drops to AREP)
1.3%5.2%6.6%Net loss rate
2005Q1
2004Full Year
2003Full Year
Slide 15: Mixed Results Across Other Retail Segments
• In line with expectations• EBIT impact of segment is small• Remains intensely competitive• Several profitability initiatives underway
(35)Large Business
(16)
21
%Change
• New competitive cost structure in place• Turnaround essentially complete• Growing market share• Headroom opportunity exists
Residential Out-of-Territory
• Results in line with expectations and better than other major incumbents
• Out-of-territory opportunities
Small/Medium Business
Highlights and InitiativesRetail Segment
1 Weather adjusted for comparison to 04.
Sales Volumes1 ChangeQ1 05 vs. Q1 04; percent
33
18
Q1 04 Q1 05
Retail Bad DebtQ1 04 vs. Q1 05; $millions
Slide 16: TXU Energy’s Operational Metrics Improved For Quarter
PUC Complaints/100K CustomersQ1 04 vs. Q1 05; number of
Call Answer TimesQ1 04 vs. Q1 05; seconds
Time In IVR Q1 04 vs. Q1 05; seconds
56%56%
12
110
Q1 04 Q1 05
25
11
Q1 04 Q1 05
10978
Q1 04 Q1 05
89%89% 45%45%
28%28%
Source: PUC complaint data via Regulatory Compliance Services; TXU Energy
Slide 17: PTB Filing Impacts Several Aspects Of 05 Projection
• Switching drives most of decrease
• Average consumption down ~2% after price increase
33 - 3435.5Total residential sales volumes1 (TWh)
• Poised to grow with improved cost structure
50 - 5546Out-of-territory residentialnet customer increase (thousands)
• Higher switching due to PTB filing and increased competition
7 - 8%5.2%In-territory residentialnet customer losses (percent)
Comments on 05E04 05EPerformance Measure
Key Retail Measures of Performance05E vs. 04; mixed measures
1 Weather adjusted by 1.5 TWh for 04 and 0.6 TWh for 05E.
Increased switching, demand elasticity, and other effects following the increase in natural gas prices and the fuel factor adjustment are estimated to dampen potential
05E EBIT improvement by $30 Million
Increased switching, demand elasticity, and other effects following the increase in natural gas prices and the fuel factor adjustment are estimated to dampen potential
05E EBIT improvement by $30 Million
Reported Earnings Per ShareQ1 04 vs. Q1 05; $ per diluted share
Slide 18: TXU’s Operational Earnings Improved Substantially
Q1 05Q1 04
Q1 05Q1 04
Operational EarningsQ1 04 vs. Q1 05; $millions
Q1 05Q1 04
Operational Earnings Per ShareQ1 04 vs. Q1 05; $ per diluted share
(0.19)
0.49 1.01
0.43
173
416140%140% 65%65%
Reported EarningsQ1 04 vs. Q1 05; $millions
135%135%139%139%
Q1 05Q1 04
149
246
Slide 19: Description Of Special Items
Effect on Reported EarningsQ1 05; $millions and $ per share
23-0.0923Other incomeLitigation settlement benefit
161(6)0.64155Total special items
-(3)(0.01)(3)Other deductionsOutsourcing transition costs
-(1)-(1)Other deductionsOutsourcing transition costs
138
(2)
$Millions
0.57
(0.01)
$ Per Share
-(2)Other deductionsOutsourcing transition costs
138-Income taxIncome tax benefit
Electric Delivery segment:
Category
Corporate and Other:
CashEnergy segment:
Non-Cash1Item
1 While these items are reflected in earnings for the current period, the cash impact, if any, will be realized in future periods. These items are considered non-cash for the current period.
Slide 20: TXU Corp. Operational Earnings Improved In Each Segment
Consolidated – Operational Earnings ReconciliationQ1 04 to Q1 05; $millions and $ per share after tax
0.32-Effect of reduced shares
0.026Electric Delivery segment
246
12
79149
$Millions
0.21Energy Holdings segment
0.03Corporate expenses
1.01Q1 05 operational earnings
0.43Q1 04 operational earnings$ Per ShareEarnings Factor
(0.03)(8)Coal contract default reserve(0.01)(4)Gas storage (timing of MtM vs. accrual)(0.02)(5)Increase in credit reserves(0.05)(12)Temporary gas position
(45)
(16)$Millions
(0.07)Effect of weatherEffect of commodity drivers:
(0.18)Total
$ Per ShareWeather and Commodity Drivers
Slide 21: Energy Holdings Operational Earnings Improved Substantially
Energy Holdings Segment - Operational Earnings ReconciliationQ1 04 to Q1 05; $millions and $ per share
0.0935SG&A--Franchise and revenue based taxes
0.027Other income and deductions (0.01)(5)Net interest(0.09)(35)Income taxes
0.31-Effect of reduced shares
0.0415Operating costs
206
18
44127
$Millions
0.11Contribution margin
0.05Depreciation and amortization
0.85Q1 05 operational earnings
0.33Q1 04 operational earnings$ Per ShareEarnings Factor
Slide 22: Electric Delivery Operational Earnings Improved Substantially
Electric Delivery Segment - Operational Earnings ReconciliationQ1 04 to Q1 05; $millions and $ per share
--SG&A-2Franchise and revenue based taxes
(0.01)(4)Other income and deductions 0.026Net interest
-(2)Income taxes0.11-Effect of reduced shares
(0.01)(5)Operating costs
72
(18)
2766
$Millions
0.07Contribution margin (revenues)
(0.05)Depreciation and amortization
0.30Q1 05 operational earnings
0.17Q1 04 operational earnings$ Per ShareEarnings Factor
Reinvest-ment
Excess
Yes, if
50% of cash returned within 3 yearsMinimum ROI of 15%
DebtHolders
FinancialFlexibility
Yes, until
Strong Credit Metrics
• Coverage ratio • Debt/EBITDA• Debt/EV
Excess
Yes
Payout of 30-40%
Excess
EquityHolders
DividendPayout
Cash FlowfromOper-ations
andAssetSalesTX
U B
usin
ess
Uni
ts
“Customer”Capital
Yes
Quality serviceProduction reliability
Repurchasesor Distributions
Retained forInvestment
Excess
Total Payout Cap - 75% ofOperational
Earnings
Slide 23: Rigorous And Disciplined Capital Allocation Process
Slide 24: TXU Corp. 05 Earnings Outlook
Consolidated – Earnings Walk ForwardPrevious 05E to Revised 05E; $ per share after tax; indicative
0.73Operating revenuesIncreased revenues from wholesale market price changes
(0.05)Interest expenseIncreased interest expenses
Operating revenues
Income Statement Category
(0.08)Reduced margin from customer churn and demand elasticity
6.25–6.45Revised 05E operational earnings outlook
5.65-5.85Previous 05E operational earnings outlook05EPerformance Driver
Slide 25: TXU Corp. Phasing of Revised 05E Outlook Consolidated - Revised 05E Outlook05E; $millions; $ per share; percent; indicative
6.25 – 6.451,500 – 1,550Revised 05E operational earnings outlook range2.8288704 operational earnings
5.25 – 5.451,250 – 1,305Q2-Q4 revised 05E operational earnings outlook2.39738Q2-Q4 04 operational earnings
0.43149Q1 04 operational earnings
122 - 129%69 - 75%Percent growth estimate range
135%65%Percent growth
120-128%
1.01
100-107%2.82
5.65-5.85
$ Per Share; %change
88704 operational earnings
69 - 77%Percent growth estimate
53-58%Percent growth estimate range
246
1,356-1,404
$Millions; %change
Q1 05 operational earnings
Previous 05E operational earnings outlook rangeCategory
-
05E0342
575
130%130%Taxes2
03-05E; $ millions
04
252
Slide 26: Drivers Of Improving EPS
Operational Earnings 103-05E; $ millions
05E03
544
1,500-1,550
180%180%
887
04
Shares Outstanding03-05E; millions
05E03
379 321
÷
37%
04
240
Net Interest03-05E; $ millions
05E03
748 765
-
04
667
2%2%Operational EPS03-05E; $ per share
05E03
1.58
6.25-6.45
300%300%
04
2.82
1 Includes impact from preferred dividends and excludes extraordinary items, changes in accounting principles and special items.2 Taxes inclusive of ($138M) Europe tax reserve release and ($26M) of Corporate tax initiatives.
EBIT03-05E; $ millions
05E
93%93%
1,9803,000-3,050
04
1,566
03
Slide 27: 05E Free Cash Flow Shows Strong Growth
Cash Provided by Operating Activities and Free Cash Flow05E vs. 04; $millions
214172540Dividends on preference and common stock
302,0422,650Cash provided by operating activities1
461,0431,525Free cash flow139991,125Capital expenditures and nuclear fuel
13871985Free cash flow after dividends
% Change05E 04Component
1 05 excludes an estimated $125M of special items. 04 excludes $284M of special items.
Slide 28: TXU’s Financial Profile Is Significantly Improved
Total Debt2
03-05E; $billions
Operational EPS03-05E; $ per share
Normalized FCF1
03-05E; $millionsROIC1
03-05E; percent
EBITDA/Interest1
03-05E; ratioTotal Debt/EBITDA1
03-05E; percent
3.04.8
4.0
5.1
3.2
4.214.5
12.311.6
60%60%
5.6
8.4160%160%710
1,500-1,550
1,043
04 05E03
1.58
6.25-6.45
2.82 300%300%
04 05E03 04 05E03
04 05E03 04 05E03 04 05E03
14.5
37%37%
1 Results from continuing operations excluding special items; FCF excludes ~ $600M in 03 associated with one-time refund related to Europe and $337M of 02 collections in 03.
2 03 total debt of $14.5B includes $2.4B related to Telecom debt and discontinued operations; 05E includes $300M to retire preference stock and $100M to refinance operating lease for transportation mining equipment.
115%115%
15%15%
11.9
Slide 29: Financial Metrics At Or Near The Top Quartile By 2005Financial Metrics for SPELEC1 (n=20)03-052; various measures
4th Quartile 3rd Quartile Median 2nd Quartile
Total debt/EBITDA(X)
7.8 4.2 3.7 3.2 2.2
Total debt/ enterprise value4
(%) 73.1 50.2 45.2 37.1 20.8
TXU 05E
Top
TXU 03
EBITDA/interest(X)
3.9 4.3 5.5 6.01.7
1 S&P Electric Utility Index.2 Quartile based on LTM as of Dec 04 performance; TXU 05E performance based on current outlook; TXU 03 includes discontinued operations.3 Two companies ranked at #5 with a 3.2 multiple.4 Enterprise value as of 04/29/05.
TXU 04
3.0 4.0 4.8#7
5.1 4.2 3.2#53
64.8 42.7 37.1#5
Slide 30: TXU Earnings Growth Drivers For 06Consolidated – Significant Growth Drivers05E to 06E; percent growth
1-2Interest expense/average share countDeployment of cash
5-6Operating revenuesNet effect of increased wholesale market prices1
1-2Operating revenuesIncreased Electric Delivery revenue from growth and investment
3-4O&M/SG&A expenseO&M/SG&A improvements
1Cost of energy sold expenseIncreased production from coal generation
3Operating revenues/ cost of energy sold expenseDecreased expenses and revenue losses due to hedge roll off
Operating revenues/ cost of energy sold
Cost of energy sold expense
Income Statement Category
4Decreased expenses due to only single-unit nuclear outage
(1-2)Mass market customer churn/demand elasticity
16-20Expected growth range
05EPerformance Driver
1 Based on April 05 market forward curves at time of fuel factor adjustment.
Q & ADiscussion
Appendix –Regulation G Reconciliations
Table 1: TXU Corp. Operational Earnings Reconciliation Quarter Ended March 31, 2005 and 2004 $millions and $ per share after tax
0.0726(0.63)(155)Special items--1.90-Effect of dilution calculation
149-
(5)128
5(50)173
Q1 04
1.01-
(0.02)(0.24)
0.02(0.07)(0.19)
Q1 05
0.43246Operational earnings-1Rounding
(0.01)(5)Preference stock dividends0.37405Income (loss) from continuing operations 0.015Preference stock dividends
(0.13)(16)Discontinued operations 0.49416Net income (loss) to common
Q1 04Q1 05
Table 2: TXU Energy Holdings Operational Earnings ReconciliationQuarter Ended March 31, 2005 and 2004 $millions and $ per share after tax
0.03110.012Special items(0.01)-(0.01)1Effect of share dilution and rounding
127
1163
113
Q1 04
0.85
0.850.010.84
Q1 05
0.33206Operational earnings
0.31203Income (loss) from continuing operations 0.013Discontinued operations 0.30200Net income (loss) to common
Q1 04Q1 05
Table 3: TXU Electric Delivery Operational Earnings Reconciliation Quarter Ended March 31, 2005 and 2004 $millions and $ per share after tax
---1Special items66
66-
66
Q1 04
0.30
0.30-
0.30
Q1 05
0.1772Operational earnings
0.1771Income (loss) from continuing operations --Discontinued operations
0.1771Net income (loss) to common
Q1 04Q1 05
Table 4: TXU Corp. Operational Earnings Reconciliation Twelve Months Ended December 31, 2004 and 2003 $ per share after tax
1.582.82Operational earnings-2.58Special items
0.010.04Effect of diluted shares calculation(0.06)(0.07)Preference stock dividends
1.630.27Income from continuing operations 0.060.07Preference stock dividends
-2.83Premium on EPMIs0.15(0.03)Cum. effect of changes in accounting principles
-(0.05)Extraordinary gain(0.20)(1.26)Discontinued operations
1.62(1.29)Net income (loss) to common 0304
Table 5: TXU Corp. Normalized Operating and Free Cash Flow Twelve Months Ended December 31, 2004 and 2003 $millions
(44)(87)Nuclear fuel(721)(912)Capital expenditures
1,4752,042Normalized operating cash flow
7101,043Normalized free cash flow
(337)-2002 collections in 2003(601)-2003 tax refund
-284Special items 2,4131,758Reported operating cash flow
0304
Table 6: TXU Corp. Return On Average Invested Capital CalculationTwelve Months Ended December 31, 2004 and 2003 $millions unless otherwise noted
___________
B1,0521,343Total return (based on operational earnings)
748667Net
(36)(28)Interest income
262233Tax at 35%
486434Net of tax
784695Interest expense
544887Operational earnings
5.6
5.7
18,831
486
22
1,068486
582
03
8.4
5.7
16,019
434
22
919434
485
04
(1)After-tax interest expense and related charges net of interest income
Return on average invested capital–based on operational earnings - % (B/C)Return on average invested capital–based on net income - % (A/C)
CAverage total capitalization
After-tax interest expense and related charges net of interest income(1)
Preference stock dividends
ATotal return (based on net income)After-tax interest expense and related charges net of interest income
Net income
Ref
04 03Debt
Notes payable 210 - Long-term debt due currently 229 678 Long-term debt held by sub Trusts - 546 All other LT debt, less due current 12,412 10,608 Securitization debt (1,258) (500) Preferred securities of subs 38 759
Total debt less transition bonds 11,631 12,091
Table 7: TXU Corp. Total Debt Years Ended December 31, 2004 and 2003 $millions unless otherwise noted
Table 8: TXU Corp. Interest and Debt Coverage RatiosTwelve Months Ended December 31, 2004 and 2003 $millions unless otherwise noted
3.04.0EBITDA/interest – ratio (A/B)
5.14.2Debt/EBITDA – ratio (D/A)
3.22.6Cash provided by operating activities/cash interest expense – ratio (E/B)
5.27.3Total debt/cash flow from operating activities – ratio (C/E)
E2,4131,758Cash provided by operating activities
1,8471,677Reconciling adjustments from cash flow statement
C12,59112,889Total debt
784695Interest expense and related charges
56681Income from continuing operations
D11,56611,631Total debt less transition bonds and debt-related restricted cash
(525)-Debt-related restricted cash
724760Depreciation and amortization
(500)
765
12
(31)
2,290
-
(36)
784
818
03
(1,258)
680
12
(27)
2,740
1,190
(28)
695
123
04
Transition bonds
BCash interest expense
Capitalized interest
Amortization of discount and reacquired debt expense
AEBITDA
Special Items
Interest income
Interest expense and related charges
Income from continuing operations before taxes and extraordinary items
Ref
04 03 RefDebt
Notes payable 210 - Long-term debt due currently 229 678 Long-term debt held by sub Trusts - 546 All other LT debt, less due current 12,412 10,608 Securitization debt (1,258) (500) Preferred securities of subs 38 759
Total debt less transition bonds 11,631 12,091 APreference stock 300 300
Total debt and preference stock 11,931 12,391
Market capitalizationShares outstanding 240 324 Price per share 64.56 23.72
Total market capitalization 15,494 7,685
Cash (202) (1,423)
Enterprise Value 27,223 18,653 B
Debt to enterprise value - % (A/B) 42.7 64.8
Table 9: TXU Corp. Total Debt to Enterprise Value Years Ended December 31, 2004 and 2003 $millions unless otherwise noted