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--Third quarter financial results and 2009 outlook reflect depressed commodity prices and weak economic conditions
--2010 outlook shows significant improvement
RRI Energy, Inc. today is reporting open EBITDA of $133 million for the third quarter of 2009, compared to $248 million for the same period of 2008. The decline was primarily due to lower unit margins resulting from lower commodity prices and lower power demand. Adjusted EBITDA was $100 million for the third quarter of 2009, compared to $350 million for the third quarter of 2008. Out-of-the-money coal hedges in 2009 compared to in-the-money coal hedges in 2008 form the primary difference between open and adjusted EBITDA for both periods. Free cash flow used in continuing operations was $179 million for the first nine months of 2009, compared to free cash flow provided by continuing operations of $298 million for the same period in 2008. These results exclude the performance of the Texas retail business, which was sold on May 1, 2009 and is included in discontinued operations.
"Managing challenges of this difficult economic environment continues to be our primary focus," said Mark Jacobs, president and chief executive officer of RRI Energy. "Our modest hedging program, which provides a high probability of achieving free cash flow breakeven or better in 2010 and 2011, secured debt reduction, and over $1.1 billion of cash position us to deliver long-term value to shareholders when the market recovers. Notwithstanding the difficult market conditions, we have taken actions to maximize the value of our assets through efficiency and effectiveness. Some of those actions include reducing our cost structure, utilizing invested capital more efficiently and implementing flexible operating models at some of our generating stations."
Open EBITDA was $129 million for the first nine months of 2009, compared to $505 million for the same period of 2008. Adjusted EBITDA was $42 million for the first nine months of 2009, compared to $709 million for the first nine months of 2008. The declines were due to the same factors as described above. These results exclude the performance of the Texas retail business, which was sold on May 1, 2009 and is included in discontinued operations.
The loss from continuing operations before income taxes for the third quarter of 2009 was $9 million, compared to income of $183 million for the third quarter of 2008. The reported results include net unrealized gains from energy derivatives of $7 million in 2009 and net unrealized losses from energy derivatives of $40 million in 2008.
The loss from continuing operations before income taxes for the first nine months of 2009 was $334 million, compared to income of $351 million for the first nine months of 2008. The 2009 reported results include net unrealized losses from energy derivatives of $30 million and severance costs totaling $8 million. The reported numbers for 2008 include net unrealized gains from energy derivatives of $58 million and a $37 million charge for western states litigation and similar settlements. Operating cash flow from continuing operations was ($275) million for the first nine months of 2009, compared to $505 million for the same period of 2008.
Outlook
RRI Energy's outlook is based on forward commodity prices as of October 23, 2009. The outlook for open EBITDA is $198 million and $455 million for the years ending December 31, 2009 and 2010, respectively. The outlook for adjusted EBITDA, which includes the impact of hedges and other items and gains on sales of assets and emission and exchange allowances, net is $56 million and $428 million for the same periods. The outlook for free cash flow provided by (used in) continuing operations is ($314) million and $167 million for the years ending December 31, 2009 and 2010, respectively.
Open EBITDA Reconciliation ($ millions) 2008A 2009E 2010E Income (loss) from continuing operations before income taxes $26 ($387) ($49) Unrealized (gains) losses on energy derivatives 9 (25) 17 Severance --- 8 --- Western states litigation and similar settlements 37 --- --- Wholesale energy goodwill impairment 305 --- --- Debt extinguishments losses 2 4 --- Depreciation and amortization 313 281 302 Interest expense, net 179 175 158 Adjusted EBITDA $871 $56 $428 Hedges and other items (233) 163 27 Gains on sales of assets and emission and exchange allowances, net (93) (21) --- Open EBITDA $545 $198 $455
Free Cash Flow from Continuing Operations Reconciliation ($ millions) 2008A 2009E 2010E Operating cash flow from continuing operations $703 ($464) $502 Western states litigation and similar settlements payments 34 68 --- Change in margin deposits, net (199) 290 (221) Adjusted cash flow provided by (used in) continuing operations $538 ($106) $281 Maintenance capital expenditures (56) (57) (51) Environmental capital expenditures and capitalized interest(1) (223) (141) (35) Emission and exchange allowances activity, net (19) (10) (28) Free cash flow provided by (used in) continuing operations $240 ($314) $167 1. Estimate represents the low end of the range.
Non-GAAP Financial Measures
This press release and the attached financial tables include the following non-GAAP financial measures:
-- EBITDA
-- Adjusted EBITDA
-- Open EBITDA
-- Adjusted cash flow provided by (used in) continuing operations
-- Free cash flow provided by (used in) continuing operations
-- Open energy gross margin
-- Open gross margin
-- Gross debt
-- Net debt
-- Operation and maintenance, excluding severance
-- General and administrative, excluding severance
A reconciliation of these financial measures and the most directly comparable GAAP measures is included above or in the attached financial tables. Additional information regarding these measures, including a discussion of their usefulness and purpose, is included in the Form 8-K furnished along with this press release. Certain factors that could affect GAAP financial measures are not accessible on a forward-looking basis, but could be material to future reported earnings and cash flows.
Webcast Of Earnings Conference Call
RRI Energy will host its third quarter 2009 earnings conference call beginning at 9:00 a.m. Central Time on Thursday, November 5, 2009. The conference call will be webcast live with audio and slides at www.rrienergy.com in the investor relations section. A replay of the call can be accessed approximately two hours after the call's completion.
About RRI Energy, Inc.
RRI Energy, Inc. (NYSE:RRI) based in Houston, provides electricity to wholesale customers in the United States. The company is one of the largest independent power producers in the nation with more than 14,000 megawatts of power generation capacity across the United States. These strategically located generating assets use natural gas, fuel oil and coal. RRI will routinely post all important information on its Web site at www.rrienergy.com.
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, estimates or assumptions about our revenues, income, capital structure and other financial items, our plans and objectives for future operations or about our future economic performance, possible transactions, dispositions, financings or offerings, and our view of economic and market conditions. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.
Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, legislative, regulatory and/or market developments, the outcome of pending lawsuits, governmental proceedings and investigations, the effects of competition, financial and economic market conditions, access to capital, the timing and extent of changes in commodity prices and interest rates, weather conditions and other factors we discuss or refer to in the "Risk Factors" section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. Our filings and other important information are also available on the Investor Relations page of our website at www.rrienergy.com.
Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
RRI Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2009 2008 2009 2008
(thousands of dollars, except per share amounts)
Revenues:
Revenues (including $25,095, $6,169, $51,225 and $12,906 $ 507,179 $ 959,865 $ 1,363,140 $ 2,853,227
unrealized losses) (including $0, $0, $0 and $253,001 from
affiliates)
Expenses:
Cost of sales (including $31,826, $(34,247), $20,857 and $70,806 267,632 513,801 872,373 1,591,516
unrealized gains (losses)) (including $0, $1,234, $0 and $71,540
from affiliates)
Operation and maintenance 114,457 134,586 428,567 455,764
General and administrative 23,686 23,070 80,345 84,911
Western states litigation and similar settlements - 3,467 - 37,467
Gains on sales of assets and emission and exchange allowances, net (1,013 ) (16,561 ) (21,184 ) (39,484 )
Depreciation and amortization 67,724 78,353 203,228 244,059
Total operating expense 472,486 736,716 1,563,329 2,374,233
Operating Income (Loss) 34,693 223,149 (200,189 ) 478,994
Other Income (Expense):
Income of equity investment, net 1,297 1,405 1,148 2,600
Debt extinguishments gains (losses) (103 ) (904 ) 741 (2,257 )
Other, net (417 ) 4,593 (206 ) 4,619
Interest expense (44,614 ) (49,293 ) (136,600 ) (151,803 )
Interest income 407 4,495 1,376 19,146
Total other expense (43,430 ) (39,704 ) (133,541 ) (127,695 )
Income (Loss) from Continuing Operations Before Income Taxes (8,737 ) 183,445 (333,730 ) 351,299
Income tax expense (benefit) 9,532 89,868 (105,988 ) 162,808
Income (Loss) from Continuing Operations (18,269 ) 93,577 (227,742 ) 188,491
Income (loss) from discontinued operations 2,841 (1,131,497 ) 864,467 (490,511 )
Net Income (Loss) $ (15,428 ) $ (1,037,920 ) $ 636,725 $ (302,020 )
Basic Earnings (Loss) Per Share:
Income (loss) from continuing operations $ (0.05 ) $ 0.27 $ (0.65 ) $ 0.54
Income (loss) from discontinued operations 0.01 (3.24 ) 2.46 (1.41 )
Net income (loss) $ (0.04 ) $ (2.97 ) $ 1.81 $ (0.87 )
Diluted Earnings (Loss) Per Share:
Income (loss) from continuing operations $ (0.05 ) $ 0.26 $ (0.65 ) $ 0.53
Income (loss) from discontinued operations 0.01 (3.19 ) 2.46 (1.38 )
Net income (loss) $ (0.04 ) $ (2.93 ) $ 1.81 $ (0.85 )
Weighted Average Common Shares Outstanding (in thousands):
- Basic 351,561 349,200 350,908 347,086
- Diluted 351,561 353,694 350,908 353,958
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
RRI Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjusted and Open
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2009 2008 Change 2009 2008 Change
(millions of dollars)
East coal open gross margin (1) $ 100 $ 228 $ (128 ) $ 312 $ 714 $ (402 )
East gas open gross margin (1) 67 66 1 155 146 9
West open gross margin (1) 81 90 (9 ) 114 138 (24 )
Other open gross margin (1) 19 17 2 48 42 6
Total 267 401 (134 ) 629 1,040 (411 )
Operation and maintenance, excluding severance (114 ) (135 ) 21 (424 ) (456 ) 32
General and administrative, excluding severance (21 ) (24 ) 3 (77 ) (86 ) 9
Other income (expense), net 1 6 (5 ) 1 7 (6 )
Open EBITDA 133 248 (115 ) 129 505 (376 )
Power (10 ) (18 ) 8 (30 ) (53 ) 23
Fuel (51 ) 90 (141 ) (185 ) 192 (377 )
Tolling / Other 27 13 14 107 25 82
Hedges and other items (34 ) 85 (119 ) (108 ) 164 (272 )
Gains on sales of assets and emission and exchange allowances, net 1 17 (16 ) 21 40 (19 )
Adjusted EBITDA 100 350 (250 ) 42 709 (667 )
Unrealized gains (losses) on energy derivatives 7 (40 ) 47 (30 ) 58 (88 )
Western states litigation and similar settlements - (3 ) 3 - (37 ) 37
Severance (2) (3 ) - (3 ) (8 ) - (8 )
Debt extinguishments gains (losses) - (1 ) 1 1 (2 ) 3
EBITDA 104 306 (202 ) 5 728 (723 )
Depreciation and amortization (68 ) (78 ) 10 (203 ) (244 ) 41
Interest expense, net (45 ) (45 ) - (136 ) (133 ) (3 )
Income (loss) from continuing operations before income taxes $ (9 ) $ 183 $ (192 ) $ (334 ) $ 351 $ (685 )
(1) Segment profitability measure consists of open energy gross
margin and other margin.
(2) Includes severance from operation and maintenance and general
and administrative expenses.
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
RRI Energy, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
September 30, 2009 December 31, 2008
ASSETS (thousands of dollars)
Current Assets:
Cash and cash equivalents $ 1,254,070 $ 1,004,367
Restricted cash 3,473 2,721
Accounts and notes receivable, principally customer 145,266 249,871
Inventory 317,993 314,999
Derivative assets 150,302 161,340
Margin deposits 184,117 32,676
Investment in and receivables from Channelview, net 24,271 58,703
Prepayments and other current assets 94,688 124,449
Current assets of discontinued operations ($87,990 and $295,477 of 161,925 2,506,340
margin deposits)
Total current assets 2,336,105 4,455,466
Property, plant and equipment, gross 6,544,219 6,417,268
Accumulated depreciation (1,773,491 ) (1,597,479 )
Property, Plant and Equipment, net 4,770,728 4,819,789
Other Assets:
Other intangibles, net 370,014 380,554
Derivative assets 62,926 78,879
Prepaid lease 292,127 273,374
Other ($33,264 and $29,012 accounted for at fair value) 238,028 219,552
Long-term assets of discontinued operations 10,343 494,781
Total other assets 973,438 1,447,140
Total Assets $ 8,080,271 $ 10,722,395
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt and short-term borrowings $ 568,420 $ 12,517
Accounts payable, principally trade 134,583 156,604
Derivative liabilities 215,727 202,206
Margin deposits 4,538 93,000
Other 240,367 199,026
Current liabilities of discontinued operations ($8,750 and $0 of 71,659 2,375,895
margin deposits)
Total current liabilities 1,235,294 3,039,248
Other Liabilities:
Derivative liabilities 87,637 140,493
Other 296,612 272,079
Long-term liabilities of discontinued operations 19,483 873,190
Total other liabilities 403,732 1,285,762
Long-term Debt 1,984,792 2,610,737
Commitments and Contingencies
Temporary Equity Stock-based Compensation 5,765 9,004
Stockholders' Equity:
Preferred stock; par value $0.001 per share (125,000,000 shares - -
authorized; none outstanding)
Common stock; par value $0.001 per share (2,000,000,000 shares 114 111
authorized; 352,757,922 and 349,812,537 issued)
Additional paid-in capital 6,257,995 6,238,639
Accumulated deficit (1,738,476 ) (2,375,201 )
Accumulated other comprehensive loss (68,945 ) (85,905 )
Total stockholders' equity 4,450,688 3,777,644
Total Liabilities and Equity $ 8,080,271 $ 10,722,395
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
RRI Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended September 30,
2009 2008
(thousands of dollars)
Cash Flows from Operating Activities:
Net income (loss) $ 636,725 $ (302,020 )
(Income) loss from discontinued operations (864,467 ) 490,511
Net income (loss) from continuing operations (227,742 ) 188,491
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided
by Operating Activities:
Depreciation and amortization 203,228 244,059
Deferred income taxes (106,923 ) 136,909
Net changes in energy derivatives 30,748 (57,900 )
Amortization of deferred financing costs 6,459 4,949
Gains on sales of assets and emission and exchange allowances, net (21,184 ) (39,484 )
Western states litigation and similar settlements - 37,467
Other, net (2,446 ) (2,158 )
Changes in other assets and liabilities:
Accounts and notes receivable, net 117,255 17,133
Change in notes, receivables and payables with affiliates, net 68 4,183
Inventory (1,399 ) (42,484 )
Margin deposits, net (239,903 ) 28,944
Net derivative assets and liabilities (26,816 ) (5,550 )
Western states litigation and similar settlement payments (3,449 ) -
Accounts payable (9,111 ) (53,185 )
Other current assets 7,749 (800 )
Other assets (19,858 ) (4,774 )
Taxes payable/receivable (3,479 ) 24,034
Other current liabilities 36,779 33,905
Other liabilities (15,719 ) (8,246 )
Net cash provided by (used in) continuing operations from operating (275,743 ) 505,493
activities
Net cash provided by (used in) discontinued operations from 534,275 (237,392 )
operating activities
Net cash provided by operating activities 258,532 268,101
Cash Flows from Investing Activities:
Capital expenditures (157,750 ) (191,059 )
Proceeds from sales of assets, net 35,931 18,429
Proceeds from sales of emission and exchange allowances 19,180 38,685
Purchases of emission allowances (7,624 ) (26,053 )
Restricted cash (752 ) (2,705 )
Other, net 3,750 3,312
Net cash used in continuing operations from investing activities (107,265 ) (159,391 )
Net cash provided by (used in) discontinued operations from 313,775 (24,636 )
investing activities
Net cash provided by (used in) investing activities 206,510 (184,027 )
Cash Flows from Financing Activities:
Payments of long-term debt (59,413 ) (57,704 )
Payments of debt extinguishments - (1,017 )
Proceeds from issuances of stock 4,584 13,542
Net cash used in continuing operations from financing activities (54,829 ) (45,179 )
Net cash used in discontinued operations from financing activities (260,707 ) -
Net cash used in financing activities (315,536 ) (45,179 )
Net Change in Cash and Cash Equivalents, Total Operations 149,506 38,895
Less: Net Change in Cash and Cash Equivalents, Discontinued (100,197 ) (90,596 )
Operations
Cash and Cash Equivalents at Beginning of Period, Continuing 1,004,367 524,070
Operations
Cash and Cash Equivalents at End of Period, Continuing Operations $ 1,254,070 $ 653,561
Free Cash Flow Reconciliation
(Unaudited)
Nine Months Ended September 30,
2009 2008
(millions of dollars)
Operating cash flow from continuing operations $ (275 ) $ 505
Western states litigation and similar settlements payments 3 -
Change in margin deposits, net 240 (29 )
Adjusted cash flow provided by (used in) continuing operations (32 ) 476
Capital expenditures (158 ) (191 )
Proceeds from sales of emission and exchange allowances 19 39
Purchases of emission allowances (8 ) (26 )
Free cash flow provided by (used in) continuing operations $ (179 ) $ 298
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
RRI Energy, Inc. and Subsidiaries
Power Generation Data
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2009 2008 2009 2008
GWh % Economic (1) GWh % Economic (1) GWh % Economic (1) GWh % Economic (1)
Economic Generation (2) (3):
East Coal 5,524.6 55 % 5,776.5 57 % 17,886.4 60 % 20,464.7 68 %
East Gas 1,028.4 12 % 766.0 9 % 1,701.7 7 % 1,178.8 5 %
West 288.4 5 % 1,405.9 20 % 576.5 3 % 1,952.9 9 %
Other 11.6 1 % 63.5 3 % 74.7 1 % 70.4 2 %
Total 6,853.0 26 % 8,011.9 29 % 20,239.3 26 % 23,666.8 31 %
Commercial Capacity Factor (4):
East Coal 89.5 % 90.7 % 82.3 % 85.7 %
East Gas 97.6 % 90.2 % 96.3 % 90.8 %
West 94.6 % 96.9 % 86.3 % 93.9 %
Other 100.0 % 81.7 % 98.9 % 81.7 %
Total 90.9 % 91.6 % 83.6 % 86.6 %
Generation (3): GWh GWh GWh GWh
East Coal 4,943.5 5,237.8 14,711.6 17,529.0
East Gas 1,004.1 690.9 1,638.4 1,070.6
West 272.7 1,361.7 497.7 1,834.0
Other 11.6 51.9 73.9 57.5
Total 6,231.9 7,342.3 16,921.6 20,491.1
Open Energy Unit Margin ($/MWh) (5):
East Coal $ 8.70 $ 33.41 $ 12.10 $ 34.91
East Gas 11.95 28.95 10.99 37.36
West 11.00 5.14 24.11 NM (6)
Other - 19.27 - 17.39
Weighted average total $ 9.31 $ 27.65 $ 12.29 $ 31.82
Three Months Ended September 30, Nine Months Ended September 30,
2009 2008 Change 2009 2008 Change
(in millions) (in millions)
East Coal
Open energy gross margin (7) $ 43 $ 175 $ (132 ) $ 178 $ 612 $ (434 )
Other margin (8) 57 53 4 134 102 32
Open gross margin (9) $ 100 $ 228 $ (128 ) $ 312 $ 714 $ (402 )
East Gas
Open energy gross margin (7) $ 12 $ 20 $ (8 ) $ 18 $ 40 $ (22 )
Other margin (8) 55 46 9 137 106 31
Open gross margin (9) $ 67 $ 66 $ 1 $ 155 $ 146 $ 9
West
Open energy gross margin (7) $ 3 $ 7 $ (4 ) $ 12 $ (1 ) $ 13
Other margin (8) 78 83 (5 ) 102 139 (37 )
Open gross margin (9) $ 81 $ 90 $ (9 ) $ 114 $ 138 $ (24 )
Other
Open energy gross margin (7) $ - $ 1 $ (1 ) $ - $ 1 $ (1 )
Other margin (8) 19 16 3 48 41 7
Open gross margin (9) $ 19 $ 17 $ 2 $ 48 $ 42 $ 6
Total
Open energy gross margin (7) $ 58 $ 203 $ (145 ) $ 208 $ 652 $ (444 )
Other margin (8) 209 198 11 421 388 33
Open gross margin $ 267 $ 401 $ (134 ) $ 629 $ 1,040 $ (411 )
(1) Generally represents economic generation (hours) divided by
maximum generation hours (maximum plant capacity multiplied by 8,760
hours).
(2) Estimated generation at 100% plant availability based on an
hourly analysis of when it is economical to generate based on the
price of power, fuel, emission allowances and variable operating
costs.
(3) Excludes generation related to power purchase agreements,
including tolling agreements.
(4) Generation divided by economic generation.
(5) Represents open energy gross margin divided by generation.
(6) NM is not meaningful.
(7) Open energy gross margin is calculated using the power sales
prices received by the plants less market based delivered fuel
cost. This figure excludes the effects of other margin, hedges and
other items and unrealized gains/losses on energy derivatives.
(8) Other margin represents power purchase agreements, capacity
payments, ancillary services revenues and selective commercial
strategies.
(9) Segment profitability measure.
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
RRI Energy, Inc. and Subsidiaries
East Coal
(Unaudited)
Capacity Heat Rate Q3 economic generation (GWh) Q3 commercial capacity factor Q3 generation (GWh)
Unit Name (1) (MW) (MMBtu/MWh) 2009 2008 2009 2008 2009 2008
Cheswick 560 10.0 888.5 489.0 91.2 % 96.3 % 810.5 471.0
Conemaugh (2) 280 9.4 502.1 551.8 93.9 % 89.1 % 471.3 491.7
Elrama 460 11.3 33.1 145.1 98.2 % 87.5 % 32.5 127.0
Keystone (2) 282 9.5 583.1 606.4 87.2 % 97.5 % 508.5 591.3
Portland 401 9.8 621.6 608.1 80.6 % 89.7 % 501.1 545.4
Seward 525 9.6 1,053.4 1,088.0 95.9 % 88.3 % 1,010.3 960.9
Shawville (2) 597 10.3 552.2 1,050.7 91.1 % 83.0 % 503.3 871.7
Titus 243 10.8 217.2 299.1 88.4 % 97.1 % 191.9 290.3
Avon Lake 721 9.3 818.2 487.7 84.3 % 99.9 % 690.1 487.3
New Castle 328 10.6 158.3 259.7 92.5 % 96.8 % 146.5 251.4
Niles 216 10.5 96.9 190.9 80.0 % 78.5 % 77.5 149.8
East Coal Total 4,613 5,524.6 5,776.5 89.5 % 90.7 % 4,943.5 5,237.8
Capacity Heat Rate Q3 YTD economic generation (GWh) Q3 YTD commercial capacity factor Q3 YTD generation (GWh)
Unit Name (1) (MW) (MMBtu/MWh) 2009 2008 2009 2008 2009 2008
Cheswick 560 10.0 2,634.2 1,929.5 77.8 % 94.1 % 2,050.6 1,816.0
Conemaugh (2) 280 9.4 1,579.0 1,727.8 94.8 % 88.9 % 1,496.9 1,535.6
Elrama 460 11.3 316.7 1,211.4 88.1 % 83.1 % 278.9 1,007.0
Keystone (2) 282 9.5 1,759.0 1,810.5 81.4 % 98.1 % 1,432.0 1,776.2
Portland 401 9.8 2,069.6 2,011.7 81.8 % 76.4 % 1,693.7 1,536.6
Seward 525 9.6 3,111.7 3,251.6 76.4 % 81.8 % 2,377.0 2,658.3
Shawville (2) 597 10.3 2,043.0 3,143.0 81.0 % 83.6 % 1,654.7 2,628.3
Titus 243 10.8 888.2 1,033.2 86.1 % 87.7 % 765.1 906.4
Avon Lake 721 9.3 2,586.0 2,432.0 89.5 % 83.6 % 2,313.2 2,033.3
New Castle 328 10.6 539.2 1,063.1 83.4 % 88.9 % 449.8 945.4
Niles 216 10.5 359.8 850.9 55.5 % 80.6 % 199.7 685.9
East Coal Total 4,613 17,886.4 20,464.7 82.3 % 85.7 % 14,711.6 17,529.0
(1) Unless otherwise indicated, the Company owns a 100% interest in
each facility listed.
(2) The Company leases a 100% interest in the Shawville facility,
a 16.67% interest in the Keystone facility and a 16.45% interest
in the Conemaugh facility under facility interest lease
agreements, which expire in 2026, 2034 and 2034, respectively.
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
RRI Energy, Inc. and Subsidiaries
East Gas
(Unaudited)
Capacity Heat Rate Q3 economic generation (GWh) Q3 commercial capacity factor Q3 generation (GWh)
Unit Name (1) (MW) (MMBtu/MWh) 2009 2008 2009 2008 2009 2008
Aurora (2) 878 10.5 2.8 23.1 100.0 % 100.0 % 2.8 23.1
Blossburg 19 14.6 2.5 0.7 100.0 % 100.0 % 2.5 0.7
Brunot Island 289 10.4 0.2 0.8 100.0 % 100.0 % 0.2 0.8
Gilbert 536 11.0 4.0 18.1 100.0 % 100.0 % 4.0 18.1
Glen Gardner 160 14.6 0.4 0.5 75.0 % 100.0 % 0.3 0.5
Hamilton 20 14.8 0.1 0.1 100.0 % 100.0 % 0.1 0.1
Hunterstown 60 14.8 0.2 1.1 100.0 % 100.0 % 0.2 1.1
Hunterstown CCGT 810 7.0 1,014.8 709.1 97.6 % 89.7 % 990.6 635.8
Mountain 40 14.3 0.3 1.6 100.0 % 100.0 % 0.3 1.6
Orrtanna 20 14.4 0.1 0.2 100.0 % 100.0 % 0.1 0.2
Portland 169 11.2 0.7 0.9 100.0 % 100.0 % 0.7 0.9
Sayreville 224 13.8 0.3 5.4 100.0 % 68.5 % 0.3 3.7
Shawnee 20 14.0 0.2 - 100.0 % 0.0 % 0.2 -
Shawville 5-7 (3) 6 10.2 - - 0.0 % 0.0 % - -
Titus 31 17.4 - - 0.0 % 0.0 % - -
Tolna 39 14.2 0.2 0.7 100.0 % 100.0 % 0.2 0.7
Warren 68 12.8 - - 0.0 % 0.0 % - -
Werner 212 13.8 0.6 1.8 100.0 % 94.4 % 0.6 1.7
Shelby 356 9.8 1.0 1.9 100.0 % 100.0 % 1.0 1.9
East Gas Total 3,957 1,028.4 766.0 97.6 % 90.2 % 1,004.1 690.9
Capacity Heat Rate Q3 YTD economic generation (GWh) Q3 YTD commercial capacity factor Q3 YTD generation (GWh)
Unit Name (1) (MW) (MMBtu/MWh) 2009 2008 2009 2008 2009 2008
Aurora (2) 878 10.5 14.0 34.4 99.3 % 100.0 % 13.9 34.4
Blossburg 19 14.6 2.6 7.9 100.0 % 92.4 % 2.6 7.3
Brunot Island 289 10.4 3.6 2.1 100.0 % 100.0 % 3.6 2.1
Gilbert 536 11.0 12.3 36.8 100.0 % 100.0 % 12.3 36.8
Glen Gardner 160 14.6 0.4 3.0 75.0 % 86.7 % 0.3 2.6
Hamilton 20 14.8 0.6 0.4 100.0 % 100.0 % 0.6 0.4
Hunterstown 60 14.8 1.6 2.6 100.0 % 100.0 % 1.6 2.6
Hunterstown CCGT 810 7.0 1,655.3 1,016.3 96.3 % 90.8 % 1,594.2 922.9
Mountain 40 14.3 2.0 5.3 100.0 % 100.0 % 2.0 5.3
Orrtanna 20 14.4 0.6 0.5 33.3 % 100.0 % 0.2 0.5
Portland 169 11.2 2.6 10.3 100.0 % 100.0 % 2.6 10.3
Sayreville 224 13.8 1.7 44.2 88.2 % 71.7 % 1.5 31.7
Shawnee 20 14.0 0.2 0.1 100.0 % 100.0 % 0.2 0.1
Shawville 5-7 (3) 6 10.2 0.1 - 100.0 % 0.0 % 0.1 -
Titus 31 17.4 - - 0.0 % 0.0 % - -
Tolna 39 14.2 0.5 1.7 100.0 % 100.0 % 0.5 1.7
Warren 68 12.8 - - 0.0 % 0.0 % - -
Werner 212 13.8 2.6 9.4 46.2 % 86.2 % 1.2 8.1
Shelby 356 9.8 1.0 3.8 100.0 % 100.0 % 1.0 3.8
East Gas Total 3,957 1,701.7 1,178.8 96.3 % 90.8 % 1,638.4 1,070.6
(1) Unless otherwise indicated, the Company owns a 100% interest in
each facility listed.
(2) Excludes generation during periods the unit operated under power
purchase agreements.
(3) The Company leases a 100% interest in the Shawville facility
under a facility interest lease agreement, which expires in 2026.
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
RRI Energy, Inc. and Subsidiaries
West and Other
(Unaudited)
West
Capacity Heat Rate Q3 economic generation (GWh) Q3 commercial capacity factor Q3 generation (GWh)
Unit Name (1) (MW) (MMBtu/MWh) 2009 2008 2009 2008 2009 2008
Bighorn (2) 598 7.2 - 582.3 0.0 % 94.8 % - 552.2
Coolwater 622 10.1 25.4 189.0 89.8 % 96.8 % 22.8 182.9
Ellwood (3) 54 13.3 - - 0.0 % 0.0 % - -
Etiwanda (3) 640 10.0 - - 0.0 % 0.0 % - -
Mandalay (3) 560 10.9 107.0 219.3 87.9 % 97.3 % 94.0 213.3
Ormond Beach 1,516 9.6 156.0 415.3 99.9 % 99.5 % 155.9 413.3
West Total 3,990 288.4 1,405.9 94.6 % 96.9 % 272.7 1,361.7
Capacity Heat Rate Q3 YTD economic generation (GWh) Q3 YTD commercial capacity factor Q3 YTD generation (GWh)
Unit Name (1) (MW) (MMBtu/MWh) 2009 2008 2009 2008 2009 2008
Bighorn (2) 598 7.2 - 582.8 0.0 % 94.8 % - 552.7
Coolwater 622 10.1 102.8 363.3 37.8 % 90.9 % 38.9 330.3
Ellwood (3) 54 13.3 - - 0.0 % 0.0 % - -
Etiwanda (3) 640 10.0 - - 0.0 % 0.0 % - -
Mandalay (3) 560 10.9 223.5 381.0 93.4 % 96.0 % 208.7 365.8
Ormond Beach 1,516 9.6 250.2 625.8 100.0 % 93.5 % 250.1 585.2
West Total 3,990 576.5 1,952.9 86.3 % 93.9 % 497.7 1,834.0
Other
Capacity Heat Rate Q3 economic generation (GWh) Q3 commercial capacity factor Q3 generation (GWh)
Unit Name (1) (MW) (MMBtu/MWh) 2009 2008 2009 2008 2009 2008
Choctaw 800 7.0 11.6 62.9 100.0 % 81.6 % 11.6 51.3
Indian River (3) 587 10.5 - - 0.0 % 0.0 % - -
Osceola (3) 470 11.0 - 0.6 0.0 % 100.0 % - 0.6
Other Total 1,857 11.6 63.5 100.0 % 81.7 % 11.6 51.9
Capacity Heat Rate Q3 YTD economic generation (GWh) Q3 YTD commercial capacity factor Q3 YTD generation (GWh)
Unit Name (1) (MW) (MMBtu/MWh) 2009 2008 2009 2008 2009 2008
Choctaw 800 7.0 73.2 66.9 98.9 % 80.7 % 72.4 54.0
Indian River (3) 587 10.5 - - 0.0 % 0.0 % - -
Osceola (3) 470 11.0 1.5 3.5 100.0 % 100.0 % 1.5 3.5
Other Total 1,857 74.7 70.4 98.9 % 81.7 % 73.9 57.5
(1) Unless otherwise indicated, the Company owns a 100% interest in
each facility listed.
(2) The Bighorn facility was sold in October 2008.
(3) Excludes generation during periods the unit operated under power
purchase agreements.
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
RRI Energy, Inc. and Subsidiaries
Capital Expenditures
(Unaudited)
Nine months ended September 30, Projected Annual Outlook
2009 2008 2009E 2010E
(in millions) (in millions)
Maintenance capital expenditures $ 45 $ 39 $ 57 $ 51
Environmental 91 141 111 (1) 25 (1)
Capitalized interest 22 (2) 11 (2) 30 (2) 10 (3)
Total environmental and cap interest 113 152 141 35
Total capital expenditures $ 158 $ 191 $ 198 $ 86
(1) Estimate represents the low end of the range.
(2) Relates primarily to scrubber projects at Cheswick and Keystone.
(3) Relates primarily to a scrubber project at Cheswick.
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
RRI Energy, Inc. and Subsidiaries
GAAP Debt, Gross Debt and Net Debt
(Unaudited)
September 30, 2009
(in millions)
Senior secured revolver $ -
Senior secured notes (1) 437
Senior unsecured notes 1,300
Orion Power 12% notes (2) 408
PEDFA fixed-rate bonds for Seward plant (3) 408
GAAP debt $ 2,553
Orion Power 12% notes purchase accounting adjustment (8 )
REMA operating leases (off-balance sheet) 423
Gross Debt $ 2,968
Cash and cash equivalents (1,254 )
Restricted cash (3 )
Net margin deposits and cash collateral (4) (5) (278 )
Net Debt $ 1,433
(1) During October 2009, we completed a tender offer and purchased
for cash $127 million principal amount. During November 2009, we
repurchased for cash $31 million principal amount.
(2) Orion Power 12% notes include purchase accounting adjustment of
$8 million.
(3) During October 2009, we completed a tender offer and purchased
for cash $2 million principal amount.
(4) Includes $79 million related to discontinued operations.
(5) Includes $19 million related to cash collateral.
Reference is made to RRI Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.
SOURCE: RRI Energy, Inc.
RRI Energy, Inc. Dennis Barber, Investor Relations: 832-357-3042 Laurie Fickman, Media Relations: 832-357-7720 www.rrienergy.com
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