Dynegy Provides Liquidity Update, Announces 2003 Guidance; Company Expects Strong Operating Cash Flow in 2003
HOUSTON--(BUSINESS WIRE)--Jan. 7, 2003--Dynegy Inc. (NYSE:DYN)
today announced its liquidity position as of Dec. 31, 2002 and 2003
guidance for earnings per share, earnings before interest and taxes
and operating cash flow for its generation, natural gas liquids and
regulated energy delivery segments:
-- As of Dec. 31, Dynegy's liquidity was $1.47 billion. This
consisted of $915 million in cash, including $137 million in
escrow relating to the Illinois Power bond offering, $1.4
billion in bank lines and $258 million of remaining highly
liquid inventories, less $228 million of draws against bank
lines and $878 million in letters of credit posted for
collateral relating principally to third-party aspects of the
company's marketing and trading business;
-- In addition to maintaining a $1.47 billion liquidity position
during the fourth quarter, the company reduced its bank
exposure and debt by approximately $850 million and will
re-pay an additional $100 million later this month;
-- Earnings per share is estimated to be $0.08 to $0.15 in 2003;
-- Earnings before interest and taxes is estimated to be $465 to
$500 million in 2003; and
-- Operating cash flow, including working capital changes, is
estimated to be $1.2 to $1.3 billion in 2003. This consists of
$635 to $665 million from the three operating segments and
$595 to $600 million from risk management roll-off and the
return of cash collateral, less corporate-level general and
administrative, interest and other cash expenses.
In addition to the results for the operating segments, guidance
estimates include certain corporate-level general and administrative,
depreciation, interest and other expenses. Guidance estimates exclude
the results associated with the businesses that the company is
currently exiting - communications and third-party marketing and
trading, including tolling contracts - and any costs required to
execute these exits, except in the case of operating cash flow, which
reflects the benefits of the risk management roll-off and the return
of cash collateral.
The earnings per share estimate of $0.08 to $0.15 in 2003 equates
to net income of $31 to $54 million. The earnings before interest and
taxes estimate of $465 million reconciles to the low end of the net
income range with interest expense estimated to be $417 million and
taxes estimated to be $17 million.
Dynegy will discuss liquidity and guidance during an analyst
conference call today at 10:00 a.m. EST, 9:00 a.m. CST. A live
simulcast of the conference call will be available on the "News and
Financials" section of www.dynegy.com. |
