Dynegy Inc. (DYN, Financial) filed Quarterly Report for the period ended 2009-09-30.
Dynegy Inc. is a provider of energy products and services in North America the United Kingdom and in continental Europe. Products marketed by the company's wholesale marketing operations include natural gas electricity coal emissions natural gas liquids crude oil liquid petroleum gas and related services. The company's wholesale marketing operations are supported by ownership or control of an extensive assetbase and transportation network. Dynegy Inc. has a market cap of $1.58 billion; its shares were traded at around $1.87 with and P/S ratio of 0.5.
Historical Operating Cash Flows. Dynegy s cash flow provided by operations totaled $304 million for the nine months ended September 30, 2009. DHI s cash flow provided by operations totaled $322 million for the nine months ended September 30, 2009. During the period, our power generation business provided positive cash flow from operations of $683 million from the operation of our power generation facilities. Cash provided by the operations of our power generation facilities was partly offset by a $160 million increase in collateral postings, excluding the effect of cash inflows and outflows arising from the daily settlements of our exchange-traded or brokered commodity futures positions held with our futures clearing manager. Corporate and other operations included a use of approximately $379 million and $361 million in cash by Dynegy and DHI, respectively, primarily due to interest payments to service debt and general and administrative expenses, partially offset by interest income. Dynegy s operating cash flow also reflected the payment of $19 million to LS Associates in conjunction with the dissolution of DLS Power Holdings and DLS Power Development.
Dynegy s cash flow provided by operations totaled $397 million for the nine months ended September 30, 2008. DHI s cash flow provided by operations totaled $393 million for the nine months ended September 30, 2008. During the period, our power generation business provided positive cash flow from operations of $757 million. Cash provided by the operations of our power generation facilities was partly offset by a $79 million increase in collateral postings, including the effect of cash inflows and outflows arising from the daily settlements of our exchange-traded or brokered commodity futures positions held with our futures clearing manager. Corporate and other operations include a use of approximately $360 million and $364 million in cash by Dynegy and DHI, respectively, primarily due to interest payments to service debt, general and administrative expenses and a $17 million legal settlement payment previously reserved, partially offset by interest income.
Cash outflows related to short-term investments increased by $127 million and $120 million for the nine months ended September 30, 2008 for Dynegy and DHI, respectively, as a result of a reclassification from cash equivalents to short-term investments. Additionally, there was a $17 million cash inflow during the nine months ended September 30, 2008 related to changes in restricted cash balances primarily due to a reduction of our cash collateral as a result of SCEA s sale of an 11 percent undivided interest in the Sandy Creek Project, the release of restricted cash and the use of restricted cash for the ongoing construction of the Plum Point Project, partially offset by interest income. Finally, Other included $7 million of insurance proceeds. Dynegy received $4 million of proceeds from the liquidation of an investment during the nine months ended September 30, 2008.
Historical Cash Flow from Financing Activities. Dynegy s net cash provided by financing activities during the nine months ended September 30, 2009 totaled $47 million, primarily related to $91 million of proceeds from long-term borrowings under the Plum Point Credit Agreement Facility, partly offset by a $28 million principal payment on our 9.00 percent secured bonds due 2013 and $14 million of financing fees related to the Credit Facility Amendment No. 4. DHI s net cash used in financing activities during the nine months ended September 30, 2009 totaled $128 million. This included a one-time dividend payment from DHI to Dynegy of $175 million, a $28 million principal payment on our 9.00 percent secured bonds due 2013 and $14 million of financing fees related to the Credit Facility Amendment No. 4 offset by $91 million of proceeds from long-term borrowings under the Plum Point Credit Agreement Facility.
Dynegy s cash provided by financing activities during the nine months ended September 30, 2008 totaled $133 million, which primarily related to proceeds of $158 million from long-term borrowings under the Plum Point Credit Agreement Facility, partly offset by a $21 million principal payment on our 9.00 percent secured bonds due 2013. DHI s cash provided by financing activities during the nine months ended September 30, 2008 totaled $131 million, which primarily related to proceeds of $158 million from long-term borrowings under the Plum Point Credit Agreement Facility, partly offset by a $21 million principal payment on our 9.00 percent secured bonds due 2013.
Read the The complete ReportDYN is in the portfolios of George Soros of Soros Fund Management LLC, Charles Brandes of Brandes Investment.
Dynegy Inc. is a provider of energy products and services in North America the United Kingdom and in continental Europe. Products marketed by the company's wholesale marketing operations include natural gas electricity coal emissions natural gas liquids crude oil liquid petroleum gas and related services. The company's wholesale marketing operations are supported by ownership or control of an extensive assetbase and transportation network. Dynegy Inc. has a market cap of $1.58 billion; its shares were traded at around $1.87 with and P/S ratio of 0.5.
Highlight of Business Operations:
Based on the fair value at September 30, 2009 of the consideration to be received from LS Power, we recorded further pre-tax impairment charges of approximately $382 million in the third quarter 2009 upon the asset groups meeting the criteria of held for sale. Of the $382 million, approximately $235 million is included in Income (loss) from discontinued operations in our unaudited condensed consolidated statements of operations in the GEN-WE segment. The impairment charges recorded in the third quarter were based on our estimate of the fair value of the proceeds to be received from LS Power and its affiliates which reflects Dynegy s stock price at September 30, 2009 of $2.55 per share. We will record additional gains or losses on the sale based on changes between September 30, 2009 and the closing of the transaction in the fair value of consideration received. Any such gains or losses could be material. Additionally, we expect to record a fourth quarter net loss on the sale of assets of approximately $85 million, related to the sale of our Sandy Creek investment. However, this estimate could change materially based on changes in the value of our investment in Sandy Creek from September 30, 2009 through the time the transaction is closed. Please read Note 6—Impairment Charges for further discussion of these impairments.Historical Operating Cash Flows. Dynegy s cash flow provided by operations totaled $304 million for the nine months ended September 30, 2009. DHI s cash flow provided by operations totaled $322 million for the nine months ended September 30, 2009. During the period, our power generation business provided positive cash flow from operations of $683 million from the operation of our power generation facilities. Cash provided by the operations of our power generation facilities was partly offset by a $160 million increase in collateral postings, excluding the effect of cash inflows and outflows arising from the daily settlements of our exchange-traded or brokered commodity futures positions held with our futures clearing manager. Corporate and other operations included a use of approximately $379 million and $361 million in cash by Dynegy and DHI, respectively, primarily due to interest payments to service debt and general and administrative expenses, partially offset by interest income. Dynegy s operating cash flow also reflected the payment of $19 million to LS Associates in conjunction with the dissolution of DLS Power Holdings and DLS Power Development.
Dynegy s cash flow provided by operations totaled $397 million for the nine months ended September 30, 2008. DHI s cash flow provided by operations totaled $393 million for the nine months ended September 30, 2008. During the period, our power generation business provided positive cash flow from operations of $757 million. Cash provided by the operations of our power generation facilities was partly offset by a $79 million increase in collateral postings, including the effect of cash inflows and outflows arising from the daily settlements of our exchange-traded or brokered commodity futures positions held with our futures clearing manager. Corporate and other operations include a use of approximately $360 million and $364 million in cash by Dynegy and DHI, respectively, primarily due to interest payments to service debt, general and administrative expenses and a $17 million legal settlement payment previously reserved, partially offset by interest income.
Cash outflows related to short-term investments increased by $127 million and $120 million for the nine months ended September 30, 2008 for Dynegy and DHI, respectively, as a result of a reclassification from cash equivalents to short-term investments. Additionally, there was a $17 million cash inflow during the nine months ended September 30, 2008 related to changes in restricted cash balances primarily due to a reduction of our cash collateral as a result of SCEA s sale of an 11 percent undivided interest in the Sandy Creek Project, the release of restricted cash and the use of restricted cash for the ongoing construction of the Plum Point Project, partially offset by interest income. Finally, Other included $7 million of insurance proceeds. Dynegy received $4 million of proceeds from the liquidation of an investment during the nine months ended September 30, 2008.
Historical Cash Flow from Financing Activities. Dynegy s net cash provided by financing activities during the nine months ended September 30, 2009 totaled $47 million, primarily related to $91 million of proceeds from long-term borrowings under the Plum Point Credit Agreement Facility, partly offset by a $28 million principal payment on our 9.00 percent secured bonds due 2013 and $14 million of financing fees related to the Credit Facility Amendment No. 4. DHI s net cash used in financing activities during the nine months ended September 30, 2009 totaled $128 million. This included a one-time dividend payment from DHI to Dynegy of $175 million, a $28 million principal payment on our 9.00 percent secured bonds due 2013 and $14 million of financing fees related to the Credit Facility Amendment No. 4 offset by $91 million of proceeds from long-term borrowings under the Plum Point Credit Agreement Facility.
Dynegy s cash provided by financing activities during the nine months ended September 30, 2008 totaled $133 million, which primarily related to proceeds of $158 million from long-term borrowings under the Plum Point Credit Agreement Facility, partly offset by a $21 million principal payment on our 9.00 percent secured bonds due 2013. DHI s cash provided by financing activities during the nine months ended September 30, 2008 totaled $131 million, which primarily related to proceeds of $158 million from long-term borrowings under the Plum Point Credit Agreement Facility, partly offset by a $21 million principal payment on our 9.00 percent secured bonds due 2013.
Read the The complete ReportDYN is in the portfolios of George Soros of Soros Fund Management LLC, Charles Brandes of Brandes Investment.
