HOUSTON, Aug. 3 /PRNewswire-FirstCall/ -- Reliant Energy, Inc. (NYSE: RRI)
reported income from continuing operations of $70 million, or $0.21 per
diluted share, for the second quarter of 2005, compared to a loss from
continuing operations of ($64 million), or ($0.21) per share, for the same
period of 2004. The reported numbers include a net, after-tax gain from
unrealized energy derivatives totaling $84 million, or $0.25 per diluted share
in 2005, and a net, after-tax loss of ($37 million), or ($0.13) per share in
2004.
"During the quarter, the retail business continued the expansion of its
customer base and the wholesale business experienced improved profitability
due to the new Seward plant and strengthening market conditions," said Joel
Staff, chairman and chief executive officer. "We continue building the highly
efficient scalable platforms and strong capital structure that will allow
Reliant Energy to capitalize on the opportunities we see for profitable
growth. We also remain on-track to deliver on our free cash flow and adjusted
EBITDA outlook."
Adjusted EBITDA (earnings before interest, income taxes, depreciation and
amortization) was $208 million for the second quarter of 2005, compared to
$196 million for the second quarter of 2004. Adjusted EBITDA for the first
six months of 2005 was $267 million compared to $311 million for the same
period of 2004.
During the first half of 2005, the company reported a $48 million use of
cash from operating activities, compared to $39 million in 2004. The reported
numbers include increases in cash margin deposits totaling $204 million in
2005 and $246 million for 2004. Free cash flow from continuing operations for
the first half of 2005 was $114 million, compared to $34 million in 2004. The
improvement in free cash flow was primarily related to lower growth capital
expenditures.
Adjusted EBITDA Reconciliation
Three Months Six Months
Ended June 30, Ended June 30,
($ millions) 2005 2004 2005 2004
Income (loss) from
continuing operations $70 ($64) $45 ($106)
Depreciation and amortization 106 131 221 238
Interest expense, net 101 91 201 177
Income tax expense (benefit) 62 (30) 60 (53)
EBITDA 339 128 527 256
Changes in California-related
receivables and reserves (3) (5) (2) (26)
Unrealized (gains)/losses on
energy derivatives (a) (136) 60 (266) 34
Settlement of shareholder
class action lawsuits 8 --- 8 ---
Gains recorded prior to 2003
that were realized/collected
(EITF No. 02-03) --- 6 --- 17
2004 accrual for payment to
CenterPoint Energy, Inc. --- --- --- 2
2004 severance and
restructuring costs --- 7 --- 28
Adjusted EBITDA $208 $196 $267 $311
(a) Reliant Energy's hedging activities include buying power supply for
its retail business, selling the output of and buying fuel for its
power plants, as well as hedging legacy trading positions and
optimization of gas transport and storage positions. Certain of these
hedging transactions use mark-to-market accounting, which requires the
company to record gains/losses related to future periods based on
current changes in forward commodity prices. The company refers to
these gains and losses prior to settlement as "unrealized gains/losses
on energy derivatives." In certain cases, the related underlying
transactions being hedged receive accrual accounting treatment,
resulting in a mismatch of accounting treatments.
Free Cash Flow Reconciliation
Six Months Ended
June 30,
($ millions) 2005 2004
Operating cash flow from continuing operations ($48) ($39)
Accounts receivable factoring --- (94)
Change in margin deposits (a) 204 246
2004 severance and restructuring costs --- 29
Capital expenditures (42) (108)
Free cash flow from continuing operations $114 $34
(a) Reliant Energy posts collateral to support most commodity sales and
purchase transactions. The collateral provides assurance to
counterparties that contractual obligations will be fulfilled. As the
obligations are fulfilled, the collateral is returned. Reliant Energy
commonly uses both cash and letters of credit as collateral. The use
of cash as collateral appears as an asset on the balance sheet and as
a use of cash in operating cash flow. When cash collateral is
returned, the asset is eliminated from the balance sheet and it
appears as a source of cash in operating cash flow. Changes in margin
deposits reflect the net inflows and outflows of cash collateral and
are driven by hedging levels and changes in commodity prices, not by
the cash flow generated by the business related to sales and purchases
in the reporting period.
OUTLOOK FOR 2005
Reliant Energy's 2005 outlook for adjusted EBITDA remains $900 million to
$1,100 million. Free cash flow from continuing operations outlook remains
$275 million to $475 million.
2005 Adjusted EBITDA
Outlook Reconciliation
($ millions) 2005
Income from continuing operations (a) $199
Delivery of product underlying the unrealized (gains)/losses
on energy derivatives (b) (250)
Settlement of shareholder class action lawsuits 8
California related reserves (2)
Depreciation and amortization 485
Interest expense, net 410
Income tax expense 150
Adjusted EBITDA (mid-point of range) (a) $1,000
(a) Certain factors that could affect GAAP financial measures are not
accessible on a forward-looking basis, but could be material to
future reported earnings.
(b) In the first half of 2005, Reliant Energy recorded a net gain of $266
million and estimates it will incur $250 million for the full year of
2005.
2005 Free Cash Flow From Continuing Operations
Outlook Reconciliation
($ millions) 2005
Operating cash flow from continuing operations (on GAAP basis) $259
Changes in margin deposits as of 6/30/05 (a) 204
Settlement of shareholder class action lawsuits 8
Capital expenditures (96)
FCF from continuing operations (mid-point of range) $375
(a) Certain factors that could affect GAAP financial measures are not
accessible on a forward-looking basis, but could be material to future
reported operating cash flows from continuing operations.
NON-GAAP FINANCIAL MEASURES
This press release and the attached financial tables include the following
non-GAAP financial measures:
- Contribution margin
- Adjusted contribution margin
- Gross margin
- Adjusted gross margin
- Free cash flow
- EBITDA
- Adjusted EBITDA
A reconciliation of these financial measures and the most directly
comparable GAAP measures is included in the attached financial tables or
within this release. Additional information regarding these measures,
including a discussion of their utility and purposes, is included in the Form
8-K filed along with this earnings release.
WEBCAST OF EARNINGS CONFERENCE CALL
Reliant Energy has scheduled its second-quarter 2005 earnings conference
call for Wednesday, August 3, 2005, at 9:00 a.m., Central Daylight Time.
Interested parties may listen to a live audio broadcast of the conference call
at http://www.reliant.com/corporate. A replay of the call can be accessed
approximately two hours after the completion of the call. A copy of the
presentation accompanying the call is available at this Website address.
Reliant Energy, Inc. (NYSE: RRI) based in Houston, Texas, provides
electricity and energy services to retail and wholesale customers in the U.S.
The company provides energy products and services to approximately 1.9 million
electricity customers, ranging from residences and small businesses to large
commercial, industrial, governmental and institutional customers, primarily in
Texas. Reliant also serves commercial, industrial, and governmental customers
in the PJM (Pennsylvania, New Jersey, Maryland) market.
The company is one of the largest independent power producers in the
nation with approximately 19,000 megawatts of power generation capacity in
operation or under contract across the U.S. These strategically located
generating assets utilize natural gas, wind, fuel oil and coal. For more
information, visit our Website at http://www.reliant.com/corporate.
This news release contains "forward-looking statements." Forward-looking
statements are statements that contain projections about future economic
performance and plans. Forward-looking statements are often identified by
words such as "anticipate," "estimate," "believe," "could," "intend," "may,"
"plan," "potential," "predict," "should," "will," "expect," "objective,"
"projection," "forecast," "goal," "guidance," "outlook," and other similar
words.
Forward-looking statements are based on management's beliefs, assumptions
and information available to management at the time the statements are made.
Actual results may differ materially from those expressed or implied by
forward-looking statements as a result of many factors or events, including
legislative and regulatory developments, the outcome of pending lawsuits,
governmental proceedings and investigations, the effects of competition,
financial market conditions, weather conditions and other factors we discuss
in our other filings with the Securities and Exchange Commission.
Each forward-looking statement speaks only as of the date of the
particular statement, and we undertake no obligation to publicly update or
revise any forward-looking statement.
Information in this report is subject to adjustment resulting from further
review and the obtaining of additional information that impacts the
consolidated financial statements.
Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
(Thousands of Dollars, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Revenues:
Revenues (including
$48,819, $(6,393),
$(100,639) and $(11,439)
unrealized gains
(losses)) $2,635,872 $2,202,620 $4,504,963 $3,867,334
Expenses:
Fuel and cost of gas sold
(including $(20,416),
$13,259, $105,684 and
$36,379 unrealized gains
(losses)) 666,775 472,062 1,059,497 687,364
Purchased power (including
$107,475, $(67,146),
$260,465 and $(58,796)
unrealized gains
(losses)) 1,294,010 1,280,716 2,312,114 2,278,949
Operation and maintenance 238,706 228,185 445,174 457,895
Selling and marketing 21,925 21,261 40,910 38,927
Bad debt expense 12,529 11,564 21,139 20,308
Total 2,233,945 2,013,788 3,878,834 3,483,443
Contribution Margin 401,927 188,832 626,129 383,891
Other general and
administrative 49,183 44,223 80,847 100,265
Loss on sales of receivables - 10,063 - 19,250
Accrual for payment to
CenterPoint Energy, Inc. - - - 1,658
Gains on sales of assets,
net (13,320) - (8,859) -
Depreciation 99,766 120,500 209,152 218,882
Amortization 6,185 10,916 12,068 19,345
Total 141,814 185,702 293,208 359,400
Operating Income 260,113 3,130 332,921 24,491
Other Income (Expense):
Losses from investments,
net (22,910) (496) (22,903) (665)
Loss of equity investments,
net (3,676) (8,782) (3,844) (9,588)
Other, net 67 3,117 147 3,877
Earnings (Loss) Before
Interest and Taxes 233,594 (3,031) 306,321 18,115
Interest expense (108,201) (97,604) (213,546) (189,471)
Interest income 6,841 7,379 12,053 12,482
Income (Loss) from
Continuing Operations
Before Income Taxes 132,234 (93,256) 104,828 (158,874)
Income tax expense
(benefit) 62,513 (29,628) 60,029 (52,485)
Income (Loss) from
Continuing Operations 69,721 (63,628) 44,799 (106,389)
Income (loss) from
discontinued operations
before income taxes 29,377 (16,330) 29,377 (23,139)
Income tax expense
(benefit) 374 (8,282) 374 (12,191)
Income (loss) from
discontinued operations 29,003 (8,048) 29,003 (10,948)
Income (Loss) Before
Cumulative Effect of
Accounting Change 98,724 (71,676) 73,802 (117,337)
Cumulative effect of
accounting change, net of
tax - - - 7,290
Net Income (Loss) $98,724 $(71,676) $73,802 $(110,047)
Basic Earnings (Loss) Per
Share:
Income (loss) from
continuing operations $0.23 $(0.21) $0.15 $(0.36)
Income (loss) from
discontinued operations 0.10 (0.03) 0.10 (0.03)
Cumulative effect of
accounting change, net of
tax - - - 0.02
Net Income (Loss) $0.33 $(0.24) $0.25 $(0.37)
Diluted Earnings (Loss)
Per Share:
Income (loss) from
continuing operations $0.21 $(0.21) $0.15 $(0.36)
Income (loss) from
discontinued operations 0.09 (0.03) 0.08 (0.03)
Cumulative effect of
accounting change, net of
tax - - - 0.02
Net Income (Loss) $0.30 $(0.24) $0.23 $(0.37)
Weighted Average Common
Shares Outstanding
(in thousands):
- Basic 301,250 296,601 300,848 296,334
- Diluted 337,679 296,601 337,730 296,334
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - As Reported
(Millions of Dollars)
(Unaudited)
Three Months Ended
June 30, June 30, Change
2005 2004
Retail Energy:
Revenues:
Revenues $1,717 $1,479 $238
Operating Expenses:
Purchased power 1,364 1,272 92
Gross margin 353 207 146
Operation and maintenance 49 53 (4)
Selling and marketing 22 21 1
Bad debt expense 12 13 (1)
Contribution margin - Retail Energy 270 120 150
Wholesale Energy:
Revenues:
Revenues 1,041 798 244
Operating Expenses:
Fuel and cost of gas sold 668 472 197
Purchased power 54 83 (29)
Gross margin 319 243 76
Operation and maintenance 188 175 13
Bad debt expense - (1) 1
Contribution margin - Wholesale
Energy 131 69 62
Other Operations:
Revenues:
Revenues 2 - 2
Operating Expenses:
Fuel and cost of gas sold (1) - (1)
Gross margin 3 - 3
Operation and maintenance 2 - 2
Contribution margin - Other
Operations 1 - 1
Eliminations:
Revenues:
Revenues (124) (74) (50)
Operating Expenses:
Purchased power (124) (74) (50)
Gross margin - - -
Consolidated:
Revenues:
Revenues 2,636 2,203 434
Operating Expenses:
Fuel and cost of gas sold 667 472 196
Purchased power 1,294 1,281 13
Gross margin 675 450 225
Operation and maintenance 239 228 11
Selling and marketing 22 21 1
Bad debt expense 12 12 -
Contribution margin - Consolidated 402 189 213
Other general and administrative 49 45 4
Loss on sales of receivables - 10 (10)
Gains on sales of assets, net (13) - (13)
Depreciation and amortization 106 131 (25)
Total 142 186 (44)
Operating income 260 3 257
Losses from investments, net (23) - (23)
Loss of equity investments, net (4) (9) 5
Other, net - 3 (3)
Earnings (loss) before interest and
income taxes 233 (3) 236
Interest expense (108) (98) (10)
Interest income 7 7 -
Income (loss) from continuing
operations before income taxes 132 (94) 226
Income tax expense (benefit) 62 (30) 92
Income (loss) from continuing
operations 70 (64) 134
Income (loss) from discontinued
operations 29 (8) 37
Net Income (Loss) $99 $(72) $171
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - As Reported
(Millions of Dollars)
(Unaudited)
Six Months Ended
June 30, June 30, Change
2005 2004
Retail Energy:
Revenues:
Revenues $3,021 $2,631 $390
Operating Expenses:
Purchased power 2,445 2,262 183
Gross margin 576 369 207
Operation and maintenance 87 108 (21)
Selling and marketing 41 39 2
Bad debt expense 21 23 (2)
Contribution margin - Retail Energy 427 199 228
Wholesale Energy:
Revenues:
Revenues 1,712 1,370 342
Operating Expenses:
Fuel and cost of gas sold 1,061 687 374
Purchased power 98 151 (53)
Gross margin 553 532 21
Operation and maintenance 356 350 6
Bad debt expense - (3) 3
Contribution margin - Wholesale
Energy 197 185 12
Other Operations:
Revenues:
Revenues 3 - 3
Operating Expenses:
Fuel and cost of gas sold (1) - (1)
Gross margin 4 - 4
Operation and maintenance 2 - 2
Contribution margin - Other
Operations 2 - 2
Eliminations:
Revenues:
Revenues (231) (134) (97)
Operating Expenses:
Purchased power (231) (134) (97)
Gross margin - - -
Consolidated:
Revenues:
Revenues 4,505 3,867 638
Operating Expenses:
Fuel and cost of gas sold 1,060 687 373
Purchased power 2,312 2,279 33
Gross margin 1,133 901 232
Operation and maintenance 445 458 (13)
Selling and marketing 41 39 2
Bad debt expense 21 20 1
Contribution margin - Consolidated 626 384 242
Other general and administrative 81 101 (20)
Loss on sales of receivables - 19 (19)
Accrual for payment to CenterPoint
Energy, Inc. - 2 (2)
Gains on sales of assets, net (9) - (9)
Depreciation and amortization 221 238 (17)
Total 293 360 (67)
Operating income 333 24 309
Losses from investments, net (23) - (23)
Loss of equity investments, net (4) (10) 6
Other, net - 4 (4)
Earnings before interest and income
taxes 306 18 288
Interest expense (213) (189) (24)
Interest income 12 12 -
Income (loss) from continuing
operations before income taxes 105 (159) 264
Income tax expense (benefit) 60 (53) 113
Income (loss) from continuing
operations 45 (106) 151
Income (loss) from discontinued
operations 29 (11) 40
Cumulative effect of accounting
change, net of tax - 7 (7)
Net Income (Loss) $74 $(110) $184
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjusted
(Millions of Dollars)
(Unaudited)
Three Months Ended
June 30, June 30, Change
2005 2004
Retail Energy:
Revenues:
Revenues $1,717 $1,485 $232
Operating Expenses:
Purchased power 1,472 1,207 265
Gross margin 245 278 (33)
Operation and maintenance 49 51 (2)
Selling and marketing 22 21 1
Bad debt expense 12 13 (1)
Contribution margin - Retail Energy 162 193 (31)
Wholesale Energy:
Revenues:
Revenues 989 798 191
Operating Expenses:
Fuel and cost of gas sold 649 485 164
Purchased power 52 80 (28)
Gross margin 288 233 55
Operation and maintenance 188 170 18
Bad debt expense - (1) 1
Contribution margin - Wholesale
Energy 100 64 36
Other Operations:
Revenues:
Revenues 2 - 2
Operating Expenses:
Fuel and cost of gas sold (1) - (1)
Gross margin 3 - 3
Operation and maintenance 2 - 2
Contribution margin - Other
Operations 1 - 1
Eliminations:
Revenues:
Revenues (124) (74) (50)
Operating Expenses:
Purchased power (124) (74) (50)
Gross margin - - -
Consolidated:
Revenues:
Revenues 2,584 2,209 375
Operating Expenses:
Fuel and cost of gas sold 648 485 163
Purchased power 1,400 1,213 187
Gross margin 536 511 25
Operation and maintenance 239 221 18
Selling and marketing 22 21 1
Bad debt expense 12 12 -
Contribution margin - Consolidated 263 257 6
Other general and administrative 41 45 (4)
Loss on sales of receivables - 10 (10)
Gains on sales of assets, net (13) - (13)
Depreciation and amortization 106 115 (9)
Total 134 170 (36)
Operating income 129 87 42
Losses from investments, net (23) - (23)
Loss of equity investments, net (4) (9) 5
Other, net - 3 (3)
Earnings before interest and income
taxes 102 81 21
Interest expense (108) (98) (10)
Interest income 3 5 (2)
Loss from continuing operations
before income taxes (3) (12) 9
Income tax expense 9 1 8
Loss from continuing operations (12) (13) 1
Income (loss) from discontinued
operations 29 (8) 37
Net Income (Loss) $17 $(21) $38
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjusted
(Millions of Dollars)
(Unaudited)
Six Months Ended
June 30, June 30, Change
2005 2004
Retail Energy:
Revenues:
Revenues $3,021 $2,648 $373
Operating Expenses:
Purchased power 2,707 2,206 501
Gross margin 314 442 (128)
Operation and maintenance 87 103 (16)
Selling and marketing 41 38 3
Bad debt expense 21 23 (2)
Contribution margin - Retail Energy 165 278 (113)
Wholesale Energy:
Revenues:
Revenues 1,810 1,355 455
Operating Expenses:
Fuel and cost of gas sold 1,166 723 443
Purchased power 97 148 (51)
Gross margin 547 484 63
Operation and maintenance 356 340 16
Bad debt expense - (3) 3
Contribution margin - Wholesale
Energy 191 147 44
Other Operations:
Revenues:
Revenues 3 - 3
Operating Expenses:
Fuel and cost of gas sold (1) - (1)
Gross margin 4 - 4
Operation and maintenance 2 - 2
Contribution margin - Other
Operations 2 - 2
Eliminations:
Revenues:
Revenues (231) (134) (97)
Operating Expenses:
Purchased power (231) (134) (97)
Gross margin - - -
Consolidated:
Revenues:
Revenues 4,603 3,869 734
Operating Expenses:
Fuel and cost of gas sold 1,165 723 442
Purchased power 2,573 2,220 353
Gross margin 865 926 (61)
Operation and maintenance 445 443 2
Selling and marketing 41 38 3
Bad debt expense 21 20 1
Contribution margin - Consolidated 358 425 (67)
Other general and administrative 73 89 (16)
Loss on sales of receivables - 19 (19)
Accrual for payment to CenterPoint
Energy, Inc. - - -
Gains on sales of assets, net (9) - (9)
Depreciation and amortization 221 210 11
Total 285 318 (33)
Operating income 73 107 (34)
Losses from investments, net (23) - (23)
Loss of equity investments, net (4) (10) 6
Other, net - 4 (4)
Earnings before interest and income
taxes 46 101 (55)
Interest expense (213) (189) (24)
Interest income 6 9 (3)
Loss from continuing operations
before income taxes (161) (79) (82)
Income tax benefit (43) (22) (21)
Loss from continuing operations (118) (57) (61)
Income (loss) from discontinued
operations 29 (11) 40
Cumulative effect of accounting
change, net of tax - 7 (7)
Net Loss $(89) $(61) $(28)
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjustments
(Millions of Dollars)
(Unaudited)
Three Months Ended
June 30, June 30,
2005 2004 Change
Retail Energy:
Gross Margin (1) Adjustments:
Gains recorded prior to 2003 to be
realized/collected in current period $- $6 $(6)
Unrealized gains/losses on energy
derivatives (108) 65 (173)
Total gross margin adjustments (108) 71 (179)
Operating Expenses Adjustments:
Operation and maintenance adjustment
- severance and restructuring - (2) 2
Total operating expenses adjustments - (2) 2
Wholesale Energy:
Gross Margin (1) Adjustments:
Changes in California-related
receivables and reserves (3) (5) 2
Unrealized gains/losses on energy
derivatives (28) (5) (23)
Total gross margin adjustments (31) (10) (21)
Operating Expenses Adjustments:
Operation and maintenance adjustment
- severance and restructuring - (5) 5
Consolidated:
Depreciation and amortization
adjustment - equipment impairment
related
to turbines and generators - (16) 16
General and administrative adjustment
- settlement of shareholder class
action lawsuits (8) - (8)
Interest income adjustment -
California-related interest income (4) (2) (2)
Income tax expense - tax adjustments,
net (53) 31 (84)
(1) Revenues less fuel and cost of gas sold and purchased power.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjustments
(Millions of Dollars)
(Unaudited)
Six Months Ended
June 30, June 30,
2005 2004 Change
Retail Energy:
Gross Margin (1) Adjustments:
Gains recorded prior to 2003 to be
realized/collected in current period $- $17 $(17)
Unrealized gains/losses on energy
derivatives (262) 56 (318)
Total gross margin adjustments (262) 73 (335)
Operating Expenses Adjustments:
Operation and maintenance adjustment
- severance and restructuring - (5) 5
Selling and marketing adjustment -
severance and restructuring - (1) 1
Total operating expenses adjustments - (6) 6
Wholesale Energy:
Gross Margin (1) Adjustments:
Changes in California-related
receivables and reserves (2) (26) 24
Unrealized gains/losses on energy
derivatives (4) (22) 18
Total gross margin adjustments (6) (48) 42
Operating Expenses Adjustments:
Operation and maintenance adjustment
- severance and restructuring - (10) 10
Consolidated:
Other general and administrative
adjustment - severance and
restructuring - (12) 12
Accrual for payment to CenterPoint
Energy, Inc. adjustment - (2) 2
Depreciation and amortization
adjustment - accelerated
depreciation on retired generation assets - (12) 12
Depreciation and amortization
adjustment - equipment impairment related
to turbines and generators - (16) 16
General and administrative adjustment
- settlement of shareholder class
action lawsuits (8) - (8)
Interest income adjustment -
California-related interest income (6) (3) (3)
Income tax expense - tax adjustments,
net (103) 31 (134)
(1) Revenues less fuel and cost of gas sold and purchased power.
Reliant Energy, Inc. and Subsidiaries
Diluted EPS from Continuing Operations Reconciliation
(Dollars per diluted share)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Diluted:
Net Income (Loss) (per GAAP) $0.30 $(0.24) $0.23 $(0.37)
Cumulative effect of accounting
change, net of tax - - - (0.02)
(Income) loss from discontinued
operations (0.09) 0.03 (0.08) 0.03
Income (loss) from continuing
operations (on GAAP basis) 0.21 (0.21) 0.15 (0.36)
Adjustments:
Gains recorded prior to 2003 to be
realized/collected in current period - 0.01 - 0.04
Changes in California-related
receivables and reserves (including
interest) (0.01) (0.02) (0.01) (0.06)
Unrealized gains/losses on energy
derivatives (0.25) 0.13 (0.49) 0.07
Severance and restructuring - 0.02 - 0.06
Accelerated depreciation on retired
generation assets - - - 0.03
Equipment impairment related to
turbines and generators - 0.03 - 0.03
Settlement of shareholder class
action lawsuits 0.02 - 0.02 -
Adjusted loss from continuing
operations $(0.03) $(0.04) $(0.33) $(0.19)
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Thousands of Dollars)
(Unaudited)
June 30, 2005 December 31, 2004
ASSETS
Current Assets:
Cash and cash equivalents $125,388 $106,613
Restricted cash 11,183 15,610
Accounts and notes receivable,
principally customer, net 1,232,701 1,089,058
Inventory 309,675 273,128
Derivative assets 288,411 312,232
Margin deposits on energy trading
and hedging activities 712,777 509,726
Other current assets 323,225 322,910
Total current assets 3,003,360 2,629,277
Property, Plant and Equipment, net 7,134,229 7,390,130
Other Assets:
Goodwill, net 436,057 440,534
Other intangibles, net 619,631 611,524
Net California receivables subject
to refund 207,589 200,086
Equity investments 77,475 83,819
Derivative assets 430,076 272,254
Restricted cash - 25,547
Other long-term assets 498,903 493,694
Total other assets 2,269,731 2,127,458
Total Assets $12,407,320 $12,146,865
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt
and short-term borrowings $392,985 $618,854
Accounts payable, principally
trade 764,006 572,886
Derivative liabilities 368,137 409,110
Margin deposits on energy trading
and hedging activities 17,594 19,040
Other current liabilities 462,305 450,125
Total current liabilities 2,005,027 2,070,015
Other Liabilities:
Derivative liabilities 558,596 311,222
Other long-term liabilities 720,437 802,417
Total other liabilities 1,279,033 1,113,639
Long-term Debt 4,786,092 4,576,857
Commitments and Contingencies
Total Stockholders' Equity 4,337,168 4,386,354
Total Liabilities and
Stockholders' Equity $12,407,320 $12,146,865
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Thousands of Dollars)
(Unaudited)
Six Months Ended June 30,
2005 2004
Cash Flows from Operating Activities:
Net income (loss) $73,802 $(110,047)
(Income) loss from discontinued
operations (29,003) 10,948
Net income (loss) from continuing
operations and cumulative effect of
accounting change 44,799 (99,099)
Adjustments to reconcile net income
(loss) to net cash used in operating
activities:
Cumulative effect of accounting
change - (7,290)
Depreciation and amortization 221,220 238,227
Deferred income taxes 58,792 (60,220)
Net unrealized (gains) losses on
energy derivatives (265,510) 33,856
Amortization of deferred financing
costs 8,198 16,498
Other, net 40,362 31,987
Changes in other assets and
liabilities:
Accounts and notes receivable and
unbilled revenue, net (145,337) (179,243)
Receivables facility proceeds, net - 94,000
Inventory (25,097) 16,049
Margin deposits on energy trading and
hedging activities, net (204,497) (246,278)
Net derivative assets and liabilities 61,536 17,794
Prepaid lease 4,911 3,506
Other current assets 36,363 (50,215)
Other assets (45,264) (47,249)
Accounts payable 190,909 133,294
Taxes payable/receivable (19,446) 54,822
Other current liabilities (23,237) (4,121)
Other liabilities 13,127 14,786
Net cash used in continuing
operations from operating activities (48,171) (38,896)
Net cash provided by discontinued
operations from operating activities - 18,122
Net cash used in operating activities (48,171) (20,774)
Cash Flows from Investing Activities:
Capital expenditures (42,466) (108,604)
Proceeds from sales of assets, net 44,932 9,294
Restricted cash 29,974 43,848
Other, net 2,500 2,100
Net cash provided by (used in)
continuing operations from investing
activities 34,940 (53,362)
Net cash provided by (used in)
discontinued operations from
investing activities 29,942 (2,794)
Net cash provided by (used in)
investing activities 64,882 (56,156)
Cash Flows from Financing Activities:
Payments of long-term debt (36,396) (78,379)
Increase in short-term borrowings
and revolving credit facilities,
net 24,019 151,050
Proceeds from issuances of stock 14,441 8,552
Other, net - 8,502
Net cash provided by continuing
operations from financing activities 2,064 89,725
Net cash used in discontinued
operations from financing activities - (3,754)
Net cash provided by financing
activities 2,064 85,971
Net Change in Cash and Cash
Equivalents 18,775 9,041
Cash and Cash Equivalents at
Beginning of Period 106,613 146,244
Cash and Cash Equivalents at End of
Period $125,388 $155,285
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Retail Operational Data
(Unaudited)
Retail Energy Revenues:
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
(in millions) (in millions)
Retail Energy Revenues from End-Use
Retail Customers:
Texas:
Residential and small business $1,004 $906 $1,673 $1,560
Large commercial, industrial
and governmental/institutional 553 472 1,052 898
Outside of Texas:
Commercial, industrial and
governmental/institutional 82 35 152 64
Total 1,639 1,413 2,877 2,522
Retail Energy revenues from resales
of purchased power 90 97 172 130
and other hedging activities
Market usage adjustments (11) (25) (22) (4)
Gains recorded prior to 2003
realized/collected in current
periods (1) (6) (6) (17)
Total retail energy revenues $1,717 $1,479 $3,021 $2,631
Retail Energy Operating Data:
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
(gigawatt hours) (gigawatt hours)
Electricity Sales from End-Use
Retail Customers:
Texas:
Residential:
Price-to-beat 4,731 4,991 8,005 8,669
Non price-to-beat 1,460 995 2,584 1,873
Total residential 6,191 5,986 10,589 10,542
Small business:
Price-to-beat 1,226 1,734 2,448 3,600
Non price-to-beat 817 502 1,313 805
Total small business 2,043 2,236 3,761 4,405
Large commercial, industrial
and governmental/institutional (1) 7,708 7,578 15,007 14,642
Total Texas 15,942 15,800 29,357 29,589
Outside of Texas:
Commercial, industrial and
governmental/institutional 1,372 619 2,596 1,187
Total Outside of Texas 1,372 619 2,596 1,187
Total 17,314 16,419 31,953 30,776
June 30, December 31,
2005 2004
(in thousands, metered locations)
Retail Customers:
Texas:
Residential:
Price-to-beat 1,261 1,313
Non price-to-beat 390 334
Total residential 1,651 1,647
Small business:
Price-to-beat 147 163
Non price-to-beat 42 30
Total small business 189 193
Large commercial, industrial
and governmental/institutional (1) 40 40
Total Texas 1,880 1,880
Outside of Texas:
Commercial, industrial and
governmental/institutional 2 1
Total Outside of Texas 2 1
Total 1,882 1,881
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
(in thousands, (in thousands,
metered locations)metered locations)
Weighted Average Retail Customer
Count:
Texas:
Residential:
Price-to-beat 1,276 1,377 1,289 1,384
Non price-to-beat 371 252 358 242
Total residential 1,647 1,629 1,647 1,626
Small business:
Price-to-beat 150 187 155 189
Non price-to-beat 38 16 34 14
Total small business 188 203 189 203
Large commercial, industrial and
governmental/institutional (1) 39 40 39 40
Total Texas 1,874 1,872 1,875 1,869
Outside of Texas:
Commercial, industrial and
governmental/institutional 1 - 1 -
Total Outside of Texas 1 - 1 -
Total 1,875 1,872 1,876 1,869
(1) These amounts include volumes of customers of the General Land Office
for whom we provide services.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Wholesale Operational Data
(Unaudited)
Wholesale Energy Gross Margin:
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 Change 2005 2004 Change
(in millions) (in millions)
West $37 $29 $8 $65 $37 $28
PJM 109 97 12 207 221 (14)
New York 84 78 6 162 147 15
Southeast (3) 4 (7) 1 7 (6)
MISO 41 15 26 88 41 47
ERCOT 18 18 - 36 35 1
Other:
Billings to Texas Genco for
support costs - 7 (7) - 12 (12)
Other 2 (15) 17 (12) (16) 4
Adjusted Plant Gross Margin 288 233 55 547 484 63
California-related receivables and
reserves:
Credit reserve - - - - 21 (21)
Estimated refund obligation 3 5 (2) 2 5 (3)
Unrealized gains/losses on energy
derivatives (1) 28 5 23 4 22 (18)
Total Wholesale Energy Gross
Margin $319 $243 $76 $553 $532 $21
Wholesale Power Sales (2):
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 Change 2005 2004 Change
(gigawatt hours) (gigawatt hours)
Net power generation
volumes 8,493 8,687 (194) 16,855 17,324 (469)
Power purchase volumes 159 786 (627) 245 921 (676)
Power sales volumes 8,652 9,473 (821) 17,100 18,245 (1,145)
(1) Includes ineffectiveness and derivatives not designated as hedges.
(2) These amounts include physically delivered volumes, hedge activity
related to our power generation portfolio and volumes associated
with our legacy trading activities. These amounts exclude (a)
volumes associated with our discontinued operations, (b) generation
of 995 GWh and 512 GWh for the three months ended June 30, 2005 and
2004, respectively, and 1,840 GWh and 544 GWh for the six months
ended June 2005 and 2004, respectively, from facilities where the
generation is sold by a third party pursuant to a tolling
agreement, (c) generation from facilities that are accounted for as
an equity method investment and (d) physical transactions that are
settled prior to delivery.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Net Generation Volumes (1) (2)
(MWh)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
By region: 2005 2004 2005 2004
MISO 1,210,827 1,130,973 2,831,479 2,437,104
PJM 4,557,380 3,890,337 8,802,472 8,572,062
New York 1,307,752 946,431 2,311,961 1,812,984
Southeast 341,540 650,842 599,358 943,060
West 1,179,655 1,424,510 2,547,031 2,134,884
ERCOT 1,218,197 1,379,466 2,459,935 2,677,711
Total 9,815,351 9,422,559 19,552,236 18,577,805
Three Months Ended Six Months Ended
June 30, June 30,
By asset type: 2005 2004 2005 2004
Base load 7,702,538 7,061,856 15,875,741 14,894,522
Intermediate 1,704,358 1,871,226 3,137,449 3,045,261
Peaking 408,455 489,477 539,046 638,022
Total 9,815,351 9,422,559 19,552,236 18,577,805
(1) These amounts exclude volumes associated with our discontinued
operations.
(2) These amounts include (a) physically delivered volumes, (b) hedge
activity related to our power generation portfolio, (c) generation of
995 GWh and 512 GWh for the three months ended June 30, 2005 and
2004, respectively, and 1,840 GWh and 544 GWH for the six months
ended June 2005 and 2004, respectively, from facilities where the
generation is sold by a third-party pursuant to a tolling agreement
and (d) generation from facilities that are accounted for as an
equity method investment.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
MISO Asset Summary
(Unaudited)
Q2 net
Summer/ capacity
Winter Heat Q2 net generation factor (2)
Average Rate volume (1) (MWh) (MWh)
Unit Name Capacity (MMBtu/
(MW) MWh) 2005 2004 2005 2004
Base Load
Avon Lake 7 & 9 692 9.8 755,454 428,832 50% 28%
New Castle 3-5 325 10.7 280,107 413,435 39% 58%
Niles 1-2 216 10.5 155,684 284,187 33% 60%
1,233 1,191,245 1,126,454 44% 42%
Peaking
Avon Lake 10 29 17.4 540 260 1% 0%
New Castle A-B 6 10.0 36 17 0% 0%
Niles A 30 21.3 6 (52) 0% 0%
Shelby 1-8 371 9.8 19,000 4,294 2% 1%
436 19,582 4,519 2% 0%
MISO Total 1,669 1,210,827 1,130,973 33% 31%
Q2 YTD net
capacity
Q2 YTD net generation factor (2)
volume (1) (MWh) (MWh)
Unit Name 2005 2004 2005 2004
Base Load
Avon Lake 7 & 9 692 9.8 1,754,900 947,698 58% 31%
New Castle 3-5 325 10.7 613,432 939,788 43% 66%
Niles 1-2 216 10.5 443,458 543,110 47% 58%
1,233 2,811,790 2,430,596 53% 45%
Peaking
Avon Lake 10 29 17.4 730 2,232 1% 2%
New Castle A-B 6 10.0 39 59 0% 0%
Niles A 30 21.3 (80) (77) 0% 0%
Shelby 1-8 371 9.8 19,000 4,294 1% 0%
436 19,689 6,508 1% 0%
MISO Total 1,669 2,831,479 2,437,104 39% 33%
(1) Represents net generation assets only.
(2) Capacity factor is the ratio of the actual net electricity generated
to the energy that could have been generated at continuous full-power
operation during the period.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
PJM Asset Summary
(Unaudited)
Summer/ Heat Q2 net
Winter Rate capacity
Average (1) Q2 net generation factor (1)(3)
Capacity (MMBtu/ volume (2)(MWh) (MWh)
Unit Name (1)(MW) MWh) 2005 2004 2005 2004
Base Load
Conemaugh 1-2
(16%) 280 9.4 582,802 428,736 95% 70%
Cheswick 1 583 10.0 570,661 387,984 45% 30%
Deep Creek 1-2
(4) 19 2,360 6,301 6% 15%
Elrama 1-4 487 11.3 284,710 559,494 27% 53%
Keystone 1-2 (16%) 282 9.5 498,366 558,186 81% 91%
Piney Station 1-3
(4) 28 8,006 24,008 13% 39%
Portland 1&2 400 10.1 462,753 539,273 53% 62%
Seward 1 520 9.7 829,834 - 73% 0%
Shawville 1-4 608 10.3 765,093 796,188 58% 60%
Titus 1-3 246 10.8 225,875 328,201 42% 61%
3,453 4,230,460 3,628,371 56% 48%
Intermediate
Brunot Island CCGT 287 9.8 (297) 7,710 0% 1%
Gilbert CCGT 336 9.5 32,457 5,098 4% 1%
Gilbert 9 168 11.1 5,801 4,677 2% 1%
Hunterstown CCGT 795 7.0 182,695 150,983 11% 9%
Portland 5 144 10.1 5,244 12,181 2% 4%
1,730 225,900 180,649 6% 5%
Peaking
Aurora 1-10 912 10.5 89,060 10,013 4% 1%
Blossburg 1 23 14.6 866 511 2% 1%
Brunot Island 1A-
1C 60 13.6 (200) 612 0% 0%
Ceredo 1-6 505 12.1 1,285 523 0% 0%
Gilbert 1-4 111 15.1 185 (310) 0% 0%
Glen Gardner 1-8 184 14.6 348 2,102 0% 1%
Hamilton 1 23 14.8 168 1,188 0% 2%
Hunterstown 1-3 71 14.8 1,003 3,351 1% 2%
Mountain 1-2 47 14.3 954 1,070 1% 1%
Orrtanna 1 23 14.4 220 926 0% 2%
Portland 3-4 40 15.1 523 509 1% 1%
Sayreville A-D 264 13.8 3,146 30,829 1% 5%
Shawnee 1 23 14.0 138 - 0% 0%
Shawville 5-7 6 10.2 (3) (9) 0% 0%
Tolna 1-2 47 14.2 2,254 2,568 2% 3%
Titus 4-5 35 17.4 68 - 0% 0%
Wayne 1 - - (66) - -
Warren 3 68 12.8 (103) (78) 0% 0%
Werner 1-4 252 13.8 963 27,471 0% 5%
Keystone 3-6 2 10.3 137 89 3% 2%
Conemaugh A-D 2 9.7 8 18 0% 0%
2,698 101,020 81,317 2% 1%
PJM Total 7,881 4,557,380 3,890,337 26% 23%
(1) Excludes Wayne 1 of 66 MW, which was retired in May 2004.
(2) Represents net generation assets only.
(3) Capacity factor is the ratio of the actual net electricity generated
to the energy that could have been generated at continuous full-power
operation during the period.
(4) Includes Deep Creek 1-2 of 19 MW and Piney Station 1-3 of 28 MW,
which were sold in April 2005.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
PJM Asset Summary
(Unaudited)
Summer/ Heat Q2 YTD net
Winter Rate capacity
Average (1) Q2 YTD net generation factor (1)(3)
Capacity (MMBtu/ volume (2)(MWh) (MWh)
Unit Name (1) (MW) MWh) 2005 2004 2005 2004
Base Load
Conemaugh 1-2
(16%) 280 9.4 1,160,513 1,013,166 95% 83%
Cheswick 1 583 10.0 1,271,855 1,453,347 50% 57%
Deep Creek 1-2(4) 19 13,776 19,177 17% 23%
Elrama 1-4 487 11.3 432,216 1,206,164 20% 57%
Keystone 1-2 (16%) 282 9.5 1,068,762 1,089,427 87% 88%
Piney Station 1-3(4) 28 28,569 39,349 23% 32%
Portland 1&2 400 10.1 946,980 1,166,396 55% 67%
Seward 1 520 9.7 1,341,347 - 59% 0%
Shawville 1-4 608 10.3 1,568,505 1,574,357 59% 59%
Titus 1-3 246 10.8 553,014 663,875 52% 62%
3,453 8,385,537 8,225,258 56% 55%
Intermediate
Brunot Island CCGT 287 9.8 (2,937) 5,911 0% 0%
Gilbert CCGT 336 9.5 59,528 53,807 4% 4%
Gilbert 9 168 11.1 5,903 11,400 1% 2%
Hunterstown CCGT 795 7.0 224,176 145,914 6% 4%
Portland 5 144 10.1 18,486 31,242 3% 5%
1,730 305,156 248,274 4% 3%
Peaking
Aurora 1-10 912 10.5 91,792 13,009 2% 0%
Blossburg 1 23 14.6 1,253 682 1% 1%
Brunot Island 1A-1C 60 13.6 (70) 2,475 0% 1%
Ceredo 1-6 505 12.1 7,960 1,045 0% 0%
Gilbert 1-4 111 15.1 (325) 214 0% 0%
Glen Gardner 1-8 184 14.6 459 2,256 0% 0%
Hamilton 1 23 14.8 168 1,339 0% 1%
Hunterstown 1-3 71 14.8 1,156 4,323 0% 1%
Mountain 1-2 47 14.3 1,104 1,604 1% 1%
Orrtanna 1 23 14.4 377 926 0% 1%
Portland 3-4 40 15.1 659 1,122 0% 1%
Sayreville A-D 264 13.8 4,220 31,548 0% 3%
Shawnee 1 23 14.0 182 219 0% 0%
Shawville 5-7 6 10.2 (31) (35) 0% 0%
Tolna 1-2 47 14.2 2,342 3,156 1% 2%
Titus 4-5 35 17.4 181 22 0% 0%
Wayne 1 - - 486 - -
Warren 3 68 12.8 (228) 1,208 0% 0%
Werner 1-4 252 13.8 387 32,669 0% 3%
Keystone 3-6 2 10.3 176 218 2% 2%
Conemaugh A-D 2 9.7 17 44 0% 1%
2,698 111,779 98,530 1% 1%
PJM Total 7,881 8,802,472 8,572,062 26% 25%
(1) Excludes Sayreville 4-5 of 232 MW, which was retired in February 2004
and Wayne 1 of 66 MW, which was retired in May 2004.
(2) Represents net generation assets only.
(3) Capacity factor is the ratio of the actual net electricity generated
to the energy that could have been generated at continuous full-power
operation during the period.
(4) Includes Deep Creek 1-2 of 19 MW and Piney Station 1-3 of 28 MW,
which were sold in April 2005.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
New York Asset Summary
(Unaudited)
Summer/ Q2 net
Winter Heat capacity
Average Rate Q2 net generation factor (2)
Unit Name Capacity (MMBtu/ volume (1) (MWh) (MWh)
(MW) MWh) 2005 2004 2005 2004
Intermediate
Astoria 3-5 1,105 10.9 1,176,106 830,299 49% 34%
Peaking
Astoria 2 178 12.3 30,187 24,692 8% 6%
Gowanus 1-4 610 18.0 28,960 17,630 2% 1%
Narrows 1-2 317 17.4 72,499 73,810 10% 11%
1,105 131,646 116,132 5% 5%
New York Total 2,210 1,307,752 946,431 27% 20%
Q2 YTD net
capacity
Q2 YTD net generation factor (2)
volume (1) (MWh) (MWh)
Unit Name 2005 2004 2005 2004
Intermediate
Astoria 3-5 1,105 10.9 2,166,213 1,607,426 45% 33%
Peaking
Astoria 2 178 12.3 28,168 24,198 4% 3%
Gowanus 1-4 610 18.0 34,230 38,330 1% 1%
Narrows 1-2 317 17.4 83,350 143,030 6% 10%
1,105 145,748 205,558 3% 4%
New York Total 2,210 2,311,961 1,812,984 24% 19%
(1) Represents net generation assets only.
(2) Capacity factor is the ratio of the actual net electricity generated
to the energy that could have been generated at continuous full-power
operation during the period.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Southeast Asset Summary
(Unaudited)
Summer/ Heat Q2 net
Winter Rate capacity
Average (3) Q2 net generation factor (2)
Unit Name Capacity (MMBtu volume (1)(3)(MWh) (3)(MWh)
(3) (MW) /MWh) 2005 2004 2005 2004
Base Load
Sabine 54 10.0 73,853 91,714 63% 78%
Intermediate
Indian River 1-3 587 10.5 111,879 273,558 9% 21%
Choctaw (3) 800 6.9 - (1,939) 0% 0%
1,387 111,879 271,619 4% 9%
Peaking
Osceola 1-3 465 11.0 79,395 129,457 8% 13%
Shady Hills 474 10.8 46,415 120,399 4% 12%
Vandolah 630 10.8 29,998 37,653 2% 3%
1,569 155,808 287,509 5% 8%
Southeast Total 3,010 341,540 650,842 5% 10%
Q2 YTD net
Q2 YTD net capacity
generation volume factor (2)
(1) (3) (MWh) (3) (MWh)
Unit Name 2005 2004 2005 2004
Base Load
Sabine 54 10.0 145,538 183,661 62% 78%
Intermediate
Indian River 1-3 587 10.5 192,749 437,061 8% 17%
Choctaw (3) 800 6.9 - (5,088) 0% 0%
1,387 192,749 431,973 3% 7%
Peaking
Osceola 1-3 465 11.0 119,498 154,570 6% 8%
Shady Hills 474 10.8 83,823 129,965 4% 6%
Vandolah 630 10.8 57,750 42,891 2% 2%
1,569 261,071 327,426 4% 5%
Southeast Total 3,010 599,358 943,060 5% 7%
(1) Represents net generation assets only.
(2) Capacity factor is the ratio of the actual net electricity generated
to the energy that could have been generated at continuous full-power
operation during the period.
(3) Choctaw was mothballed in May 2004.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
West Asset Summary
(Unaudited)
Summer/ Heat Q2 net
Winter Rate capacity
Average (1) Q2 net generation factor (1)
Unit Name Capacity (MMBtu/ volume (1) (2) (MWh) (3) (MWh)
(1) (MW) MWh) 2005 2004 2005 2004
Base Load
Bighorn CCGT (4) 591 7.2 735,405 703,785 57% 55%
El Dorado CCGT (5) 235 7.2 253,378 132,066 49% 26%
826 988,783 835,851 55% 46%
Intermediate
Coolwater 1-2 146 10.5 (270) 451 0% 0%
Coolwater 3-4 476 10.0 3,235 40,533 0% 4%
Etiwanda 3-4 640 10.0 143,518 (2,185) 10% 0%
Mandalay 1-2 430 9.5 18,011 117,253 2% 12%
Ormond Beach 1-2 1,516 9.6 25,979 432,607 1% 13%
3,208 190,473 588,659 3% 8%
Peaking
Ellwood 54 13.3 159 - 0% 0%
Mandalay 3 130 15.8 240 - 0% 0%
184 399 - 0% 0%
West Total 4,218 1,179,655 1,424,510 13% 15%
Q2 YTD net
capacity
Q2 YTD net generation factor (1) (3)
volume (1) (2) (MWh) (MWh)
Unit Name 2005 2004 2005 2004
Base Load
Bighorn CCGT (4) 591 7.2 1,361,781 851,246 53% 40%
El Dorado CCGT (5) 235 7.2 711,160 526,050 70% 51%
826 2,072,941 1,377,296 58% 38%
Intermediate
Coolwater 1-2 146 10.5 (554) 176 0% 0%
Coolwater 3-4 476 10.0 51,813 43,210 3% 2%
Etiwanda 3-4 640 10.0 274,401 (4,533) 10% 0%
Mandalay 1-2 430 9.5 69,615 219,859 4% 12%
Ormond Beach 1-2 1,516 9.6 78,056 498,876 1% 8%
3,208 473,331 757,588 3% 5%
Peaking
Ellwood 54 13.3 307 - 0% 0%
Mandalay 3 130 15.8 452 - 0% 0%
184 759 - 0% 0%
West Total 4,218 2,547,031 2,134,884 14% 12%
(1) Excludes Etiwanda 5 of 118 MW, which was retired in January 2004.
Q2 YTD 2005 includes net generation from Ellwood and Mandalay 3
although the units were mothballed in November 2003 and not
officially returned to service until April 2005. The net generation
from Mandalay 3 and Ellwood was produced during the re-commissioning.
Etiwanda 3 and 4 were also mothballed in November 2003 and returned
to service in September 2004 and July 2004, respectively, under a
reliability-must-run contract with the California Independent System
Operator through the end of 2004.
(2) Represents net generation assets only.
(3) Capacity factor is the ratio of the actual net electricity generated
to the energy that could have been generated at continuous full-power
operation during the period.
(4) Big Horn CCGT began operations in February 2004.
(5) El Dorado was sold in July 2005.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
ERCOT Asset Summary
(Unaudited)
Summer/ Q2 net
Winter Heat capacity
Average Rate Q2 net generation factor (2)
Unit Name Capacity (MMBtu/ volume (1) (MWh) (MWh)
(MW) MWh) 2005 2004 2005 2004
Base Load
Channelview 805 6.1 1,180,460 1,345,698 67% 77%
Landfill Gas (3) 26 10.5 37,737 33,768 66% 59%
ERCOT Total 831 1,218,197 1,379,466 67% 76%
Q2 YTD net
capacity
Q2 YTD net generation factor (2)
volume (1) (MWh) (MWh)
Unit Name 2005 2004 2005 2004
Base Load
Channelview 805 6.1 2,383,537 2,606,011 68% 74%
Landfill Gas (3) 26 10.5 76,398 71,700 68% 63%
ERCOT Total 831 2,459,935 2,677,711 68% 74%
(1) Represents net generation assets only.
(2) Capacity factor is the ratio of the actual net electricity generated
to the energy that could have been generated at continuous full-power
operation during the period.
(3) These assets were sold in July 2005.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Adjusted Net Debt - to - Adjusted EBITDA Ratio
(in millions, except ratio)
(Unaudited)
June 30, 2005
Debt:
Senior secured term loan $1,297
Senior secured revolver 92
Senior secured notes 1,850
Convertible senior subordinated notes 275
Orion Power 12% notes (1) 453
PEDFA fixed-rate bonds for Seward plant due 2036 500
Channelview 362
Receivables facility 350
Warrants (1)
Other (2) 1
El Dorado net debt (off-balance sheet) 59 (3)
REMA operating lease (off-balance sheet) 522 (3)
Total debt and debt equivalents (4) 5,760
Less:
Cash and cash equivalents (125)
Restricted cash (11)
Net margin deposits (695)
Adjusted Net Debt $4,929
Adjusted EBIT $411 (5)
Adjusted depreciation and amortization 460 (5)
Adjusted EBITDA 871 (5)
Less: El Dorado equity loss 7 (3) (5)
Add: 50% El Dorado EBITDA 1 (3) (5)
REMA lease expense 60 (3) (5)
Receivables facility expense
(July 1, 2004 to September 28, 2004) 7 (3) (5)
Total Adjusted EBITDA $946 (5)
Ratio 5.2
(1) Orion 12% notes includes purchase accounting adjustments of $53
million.
(2) Other subsidiary debt.
(3) For purposes of computing this ratio, the effects of these off-
balance sheet items are included.
(4) Debt equivalents include off-balance sheet REMA lease of $522 million
and our portion of off-balance sheet El Dorado an equity method
investment, net debt of $59 million.
(5) Represents amounts for the rolling four quarters ended June 30, 2005.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2004.
SOURCE Reliant Energy, Inc.
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Related links:
http://www.reliant.com/corporate
CONTACT:
Dennis Barber, +1-713-497-3042, or Kevin
Kremke, +1-713-497-5468, both for Reliant Energy, Inc.
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