Exhibit 99.1

COVANTA REPORTS 2010 FULL YEAR AND FOURTH QUARTER RESULTS
Annual Free Cash Flow Exceeds Guidance;
$328 Million of Capital Returned to Shareholders in 2010

Active Shareholder Distribution Program to Continue

MORRISTOWN, NJ, February 9, 2011 — Covanta Holding Corporation (NYSE:CVA) (“Covanta” or the “Company”) reported unaudited financial results today for the three and twelve months ended December 31, 2010.

		Full Year
		2009				2010				2010 Guidance
		($ in millions, except per share amounts)
Revenue		$	1,384			$	1,583			N/A
Net Income Attributable to Covanta		$	102			$	62			N/A
Adjusted EBITDA		$	515			$	531			$ 525 - $ 550
Free Cash Flow		$	345			$	357			$ 325 - $ 350
EPS, Excluding Special Items		$	0.67			$	0.68			$0.55 - $0.65

Commenting on the year just completed, Anthony Orlando, President and CEO stated, “I’m pleased with our overall performance in 2010, particularly Free Cash Flow generation, which not only exceeded guidance but established a new company record. Covanta’s team accomplished this by maintaining boiler availability above 91%, successfully integrating the EfW businesses acquired from Veolia (“the Veolia acquisition”) and exercising good working capital management. We also followed through on our commitment to return excess capital to shareholders by returning $328 million and to proactively manage our balance sheet by issuing new 10-year senior notes to refinance our 1.00% senior convertible debentures.”

Assets Held for Sale

During the fourth quarter of 2010, our interests in non-core legacy IPP assets located in India, Bangladesh and the Philippines were classified as Assets Held for Sale as a result of our ongoing effort to sell them. Consequently, all corresponding prior year periods have been reclassified to reflect those assets as discontinued operations. Please note that all results presented in the balance of this press release reflect only the results of continuing operations, unless otherwise noted.

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Full Year 2010 Results — From Continuing Operations

For the twelve months ended December 31, 2010, total operating revenues increased 14% to $1.6 billion from $1.4 billion in 2009.

Increased revenues due to the Veolia acquisition, higher metals revenues and higher construction revenues were partially offset by the impact of contract transitions, further weakness in power pricing and continued softness in spot waste disposal pricing.

Operating expenses of $1.4 billion, rose 17% from $1.2 billion. The increase was primarily attributable to the Veolia acquisition and higher construction expenses as well as the non-cash write-down of certain assets.

Adjusted EBITDA was $470 million in 2010 compared to $454 million in 2009. This $16 million, or 4% increase was primarily due to the Veolia acquisition, higher metals revenues and improved performance at recently acquired facilities, partially offset by the impact of the contract transitions and weakness in power pricing and continued softness in spot waste disposal pricing.

For the year, Free Cash Flow was $318 million, an increase of 6% over the $300 million generated in 2009. Strong operating performance and the Veolia acquisition were key contributors to this growth, along with a positive $21 million working capital change. The working capital change is expected to largely reverse during 2011 and 2012.

Diluted earnings per share (“EPS”), excluding special items, was $0.42 compared to $0.40 in 2009. GAAP EPS was $0.19 compared to $0.39 in 2009.

During 2010, we utilized Free Cash Flow and cash on hand to: return $328 million to shareholders; invest $130 million to complete the Veolia acquisition; and pay down $177 million of debt. We ended the year with a strong balance sheet and ample liquidity. As of December 31, 2010, unrestricted cash was $126 million, restricted cash was $233 million (of which $157 million is designated for future project debt principal repayment), and our $300 million revolving credit facility was undrawn and fully available.

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Fourth Quarter Results — From Continuing Operations

For the three months ended December 31, 2010, consolidated operating revenues increased $51 million or 14% to $419 million, up from $368 million in the prior year comparative period. Revenues associated with the Veolia acquisition and higher construction revenues were the main drivers, with higher metals revenues and service fee contract escalations also contributing to the increase. Collectively, these increases were partially offset by lower tip fee and lower power pricing as well as by lower power production due to unprofitable biomass operations being suspended. We refer to this biomass operation suspension as economic dispatch.

Operating expenses of $356 million rose 13% from $315 million. The increase, which was primarily attributable to the Veolia acquisition and higher construction related expenses, was partially offset by receipt of a full year of alternative fuel tax credits and the economic dispatching of certain biomass facilities.

Adjusted EBITDA was $129 million, up $3 million or 2% compared to last year’s fourth quarter, primarily due to higher recycled metal prices, the benefit of the Veolia acquisition and increased alternative fuel tax credits. We recorded a full year of these credits in the fourth quarter because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which passed at the end of the year, provided for the retroactive application of those credits from January 1, 2010 as well as their extension through 2011.

Free Cash Flow was $82 million in the fourth quarter, compared to $120 million in the prior year comparative period, with the reduction primarily attributable to the reversal of favorable working capital changes realized earlier in the year.

Our EPS, excluding special items, was $0.20 for the fourth quarter of 2010 compared to $0.10 in the prior year quarter, with the increase attributable to the growth in our operating income as well as the impact of a lower effective tax rate. The special items for the quarter totaling $16 million, pre-tax, relate primarily to a loss incurred on the extinguishment of debt in connection with the tender offer for the 1.00% Senior Convertible Debentures completed in December 2010. On a reported basis, GAAP EPS was $0.13, which compares to EPS of $0.11 in the prior year quarter.

During the quarter, Covanta repurchased $58 million in common stock, or 3.6 million shares (2.4% of our outstanding shares), at a weighted average cost of $16.16 per share, bringing the total amount of stock repurchased in 2010 to $95 million (6.1 million shares) and the total amount of capital returned to shareholders to $328 million.

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2011 Guidance

The Company is establishing guidance for 2011 for the following key metrics (in millions, except per share amounts):

		Continuing Operations
		Full Year				Full Year
Guidance Metrics		2010				2011
Adjusted EBITDA		$	470			$ 480 - $ 520
Free Cash Flow		$	318			$ 250 - $ 300
Adjusted EPS(1)		$	0.42			$0.40 - $0.55

(1)		We will utilize Adjusted EPS as one of our 2011 guidance metrics. The difference between this metric and EPS, Excluding Special Items are adjustments to exclude the net impact of the changes in fair value of the conversion feature in our cash convertible notes and the related hedges and transaction-related costs. There was no net EPS impact for these items for the year ended December 31, 2010.

Commenting on the Company’s 2011 guidance, Mr. Orlando noted that, “I am pleased that at the mid-point of our guidance, we’re targeting about 5% Adjusted EBITDA growth with continued strong free cash flow. I am confident in our team’s ability to accomplish this by improving recently acquired facilities, effectively managing our assets, controlling costs and being more focused with our development efforts. We are also renewing our commitment to continue returning surplus capital to shareholders in a prudent and timely manner and to fund high value development projects as they come to fruition.”

Conference Call Information

Covanta will host a conference call at 8:30 am (Eastern) on Thursday, February 10, 2011 to discuss its results for the three and twelve months ended December 31, 2010. To participate, please dial 877-806-3982 approximately 10 minutes prior to the scheduled start of the call. If you are calling from outside of the United States, please dial 702-928-7062. Please utilize conference ID number 37581766 when prompted by the conference call operator. We will also be referring to supplemental slides and webcasting the conference call, either of which can be accessed from the Investor Relations section of the Covanta website at www.covantaenergy.com.

A replay of the conference call will be available from 11:30 am (Eastern) Thursday, February 10, 2011. To access the replay, please dial 800-642-1687, or from outside of the United States 706-645-9291 and use the replay conference ID number 37581766. The webcast will also be archived on www.covantaenergy.com.

About Covanta

Covanta Energy Corporation is an internationally recognized owner and operator of large-scale Energy-from-Waste and renewable energy projects and a recipient of the Energy Innovator Award from the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy. Covanta’s 44 Energy-from-Waste facilities provide communities with an

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environmentally sound solution to their solid waste disposal needs by using that municipal solid waste to generate clean, renewable energy. Annually, Covanta’s modern Energy-from-Waste facilities safely and securely convert approximately 20 million tons of waste into 9 million megawatt hours of clean renewable electricity and more than 9 billion pounds of steam that are sold to a variety of industries. For more information, visit www.covantaenergy.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking” statements as defined in Section 27A of the Securities Act of 1933 (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), the Private Securities Litigation Reform Act of 1995 (the “PSLRA”) or in releases made by the Securities and Exchange Commission (“SEC”), all as may be amended from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Covanta and its subsidiaries, or general industry or broader economic performance in global markets in which Covanta operates or competes, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements that are not historical fact are forward-looking statements. Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “may,” “will,” “would,” “could,” “should,” “seeks,” or “scheduled to,” or other similar words, or the negative of these terms or other variations of these terms or comparable language, or by discussion of strategy or intentions. These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the “safe harbor” provisions of such laws. Covanta cautions investors that any forward-looking statements made by Covanta are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements with respect to Covanta, include, but are not limited to, the risk that Covanta may not successfully close its announced or planned acquisitions or projects in development and those factors, risks and uncertainties that are described in periodic securities filings by Covanta with the SEC. Although Covanta believes that its plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, actual results could differ materially from a projection or assumption in any forward-looking statements. Covanta’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The forward-looking statements contained in this press release are made only as of the date hereof and Covanta does not have or undertake any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.

Contacts
Marisa F. Jacobs, Esq.
1- 862.345.5285

Attachments

Exhibit 1

Covanta Holding Corporation
Consolidated Statements of Income

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2010				2009(A)				2010				2009(A)
		(Unaudited)
		(In millions, except per share amounts)
Operating revenues
Waste and service revenues		$	270			$	251			$	1,036			$	916
Electricity and steam sales			104				102				420				417
Other operating revenues			45				15				127				51
Total operating revenues			419				368				1,583				1,384
Operating expenses
Plant operating expenses			228				212				943				821
Other operating expenses			43				14				120				48
General and administrative expenses			27				28				103				109
Depreciation and amortization expense			48				51				190				197
Net interest expense on project debt			8				10				38				45
Write-down of assets (B)			2				—				34				—
Total operating expenses			356				315				1,428				1,220
Operating income			63				53				155				164
Other income (expense)
Investment income			—				—				1				2
Interest expense			(13	)			(11	)			(45	)			(38	)
Non-cash convertible debt related expense			(9	)			(9	)			(39	)			(24	)
Loss on extinguishment of debt (C)			(15	)			—				(15	)			—
Total other expenses			(37	)			(20	)			(98	)			(60	)
Income from continuing operations before income tax expense and equity in net income from unconsolidated investments			26				33				57				104
Income tax expense			(6	)			(16	)			(24	)			(42	)
Equity in net income from unconsolidated investments			1				1				2				3
Income from continuing operations			21				18				35				65
Income from discontinued operations (including loss on assets held for sale of $8, pre-tax in 2010), net of income taxes of $3 and $8 in 2010, respectively (A)			4				12				36				46
Net Income			25				30				71				111
Noncontrolling interests:
Less: Income from continuing operations attributable to noncontrolling interests in subsidiaries			(1	)			(1	)			(5	)			(4	)
Less: Income from discontinued operations attributable to noncontrolling interests in subsidiaries (A)			(1	)			(1	)			(4	)			(5	)
Total net income attributable to noncontrolling interests in subsidiaries			(2	)			(2	)			(9	)			(9	)
Net Income Attributable to Covanta Holding Corporation		$	23			$	28			$	62			$	102
Amounts Attributable to Covanta Holding Corporation stockholders:
Continuing operations		$	20			$	17			$	30			$	61
Discontinued operations, net of taxes (A)			3				11				32				41
Net Income Attributable to Covanta Holding Corporation		$	23			$	28			$	62			$	102
Earnings Per Share Attributable to Covanta Holding Corporation stockholders:
Basic
Continuing operations		$	0.13			$	0.11			$	0.19			$	0.39
Discontinued operations (A)			0.02				0.07				0.21				0.27
Covanta Holding Corporation		$	0.15			$	0.18			$	0.40			$	0.66
Weighted Average Shares			151				154				153				154
Diluted
Continuing operations		$	0.13			$	0.11			$	0.19			$	0.39
Discontinued operations (A)			0.02				0.07				0.21				0.27
Covanta Holding Corporation		$	0.15			$	0.18			$	0.40			$	0.66
Weighted Average Shares			152				155				154				155
Cash Dividend Paid Per Share:		$	—			$	—			$	1.50			$	—
Supplemental Information — Non-GAAP
Diluted Earnings Per Share, Excluding Special Items (D)		$	0.27			$	0.17			$	0.68			$	0.67

Exhibit 2

Covanta Holding Corporation
Condensed Consolidated Balance Sheets

		As of December 31,
		2010				2009(A)
		(Unaudited)
		(In millions, except per share amounts)
ASSETS
Current:
Cash and cash equivalents		$	126			$	418
Restricted funds held in trust			126				106
Receivables (less allowances of $3 and $3, respectively)			272				297
Unbilled service receivables			23				38
Deferred income taxes			27				9
Prepaid expenses and other current assets			110				102
Assets held for sale (A)			191				200
Total Current Assets			875				1,170
Property, plant and equipment, net			2,478				2,541
Investments in fixed maturities at market (cost: $29 and $28, respectively)			29				28
Restricted funds held in trust			107				134
Unbilled service receivables			32				37
Waste, service and energy contracts, net			472				380
Other intangible assets, net			79				85
Goodwill			230				203
Investments in investees and joint ventures			46				50
Other assets			328				306
Total Assets		$	4,676			$	4,934
LIABILITIES AND EQUITY
Current:
Current portion of long-term debt		$	7			$	7
Current portion of project debt			141				164
Accounts payable			23				19
Deferred revenue			72				60
Accrued expenses and other current liabilities			186				209
Liabilities held for sale (A)			34				52
Total Current Liabilities			463				511
Long-term debt			1,558				1,431
Project debt			662				764
Deferred income taxes			605				571
Waste and service contracts			89				101
Other liabilities			140				139
Total Liabilities			3,517				3,517
Equity:
Covanta Holding Corporation stockholders’ equity:
Preferred stock ($0.10 par value; authorized 10 shares; none issued and outstanding)			—				—
Common stock ($0.10 par value; authorized 250 shares; issued 157 and 156 shares; outstanding 150 and 155 shares)			16				16
Additional paid-in capital			827				909
Accumulated other comprehensive income			5				7
Accumulated earnings			279				451
Treasury stock, at par			(1	)			—
Total Covanta Holding Corporation stockholders’ equity			1,126				1,383
Noncontrolling interests in subsidiaries			33				34
Total Equity			1,159				1,417
Total Liabilities and Equity		$	4,676			$	4,934

Exhibit 3

Covanta Holding Corporation
Condensed Consolidated Statements of Cash Flow

		Twelve Months Ended
		December 31,
		2010				2009(A)
		(Unaudited, in millions)
OPERATING ACTIVITIES:
Net income		$	71			$	111
Less: Income from discontinued operations, net of tax expense (A)			36				46
Income from continuing operations			35				65
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization expense			190				197
Write-down of assets			34				—
Loss on extinguishment of debt			15				—
Non-cash convertible debt related expense			39				24
Stock-based compensation expense			17				14
Deferred income taxes			19				33
Decrease in restricted funds held in trust			11				19
Other, net			11				2
Change in working capital, net of effects of acquisitions			21				(2	)
Net cash provided by operating activities from continuing operations			392				352
Net cash provided by operating activities of discontinued operations (A)			39				45
Net cash provided by operating activities			431				397
INVESTING ACTIVITIES:
Proceeds from asset sales			12				—
Purchase of property, plant and equipment			(115	)			(74	)
Purchase of equity interest			—				(9	)
Acquisition of noncontrolling interests in subsidiaries			(2	)			(24	)
Acquisition of businesses, net of cash acquired			(130	)			(266	)
Loan issued for the Harrisburg EfW facility to fund certain facility improvements, net of repayments			—				(11	)
Acquisition of land use rights			(19	)			—
Other, net			(21	)			(3	)
Net cash used in investing activities from continuing operations			(275	)			(387	)
Net cash used in investing activities of discontinued operations (A)			—				—
Net cash used in investing activities			(275	)			(387	)
FINANCING ACTIVITIES:
Proceeds from borrowings on long-term debt			400				460
Proceeds from issuance of warrants			—				54
Purchase of convertible note hedge			—				(112	)
Payment of deferred financing costs			(10	)			(14	)
Payment of interest rate swap termination costs			—				(11	)
Principal payments on long-term debt			(320	)			(7	)
Principal payments on project debt			(202	)			(230	)
Payments of borrowings on revolving credit facility			(79	)			—
Proceeds from borrowings on project debt			39				70
Proceeds from borrowings on revolving credit facility			79				—
Change in restricted funds held in trust			3				45
Cash dividends paid to shareholders			(233	)			—
Common stock repurchased			(95	)			—
Financings of insurance premiums, net			(10	)			—
Other financing			19				30
Net cash (used in) provided by financing activities from continuing operations			(409	)			285
Net cash used in financing activities from discontinued operations (A)			(40	)			(54	)
Net cash (used in) provided by financing activities			(449	)			231
Effect of exchange rate changes on cash and cash equivalents			(1	)			1
Net (decrease) increase in cash and cash equivalents			(294	)			242
Cash and cash equivalents at beginning of year			434				192
Cash and cash equivalents at end of year			140				434
Less: Cash and cash equivalents of discontinued operations at end of year (A)			14				16
Cash and cash equivalents of continuing operations at end of year		$	126			$	418

Exhibit 4

Covanta Holding Corporation
Reconciliation of Diluted Earnings Per Share (“EPS”) to Diluted EPS, Excluding Special Items

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,								Full Year
		2010				2009(A)				2010				2009(A)				Estimated 2011
		(Unaudited)
Continuing Operations — Diluted EPS		$	0.13			$	0.11			$	0.19			$	0.39			$0.40 - $0.55
Continuing Operations — Special Items (B)			0.07				(0.01	)			0.23				0.01			—
Continuing Operations — Diluted EPS, Excluding Special Items			0.20				0.10				0.42				0.40			$0.40 - $0.55
Discontinued Operations — Diluted EPS			0.02				0.07				0.21				0.27
Discontinued Operations — Special Items (B)			0.05				—				0.05				—
Discontinued Operations — Diluted EPS, Excluding Special Items			0.07				0.07				0.26				0.27
Consolidated — Diluted EPS, Excluding Special Items		$	0.27			$	0.17			$	0.68			$	0.67
Exhibit 4A
Covanta Holding Corporation Reconciliation of Special Items
		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2010				2009				2010				2009
		(Unaudited)
		(In millions, except per share amounts)
Continuing Operations — Special Items
Non-cash write-down of loan issued for the Harrisburg EfW facility to fund certain facility improvements		$	—			$	—			$	7			$	—
Non-cash write-down of capitalized costs related to the Dublin development project			—				—				23				—
Other asset write-downs, net			1				—				3				—
Loss on extinguishment of debt (C)			15				—				15				—
Total Continuing Operations — Special Items, pre-tax			16				—				48				—
Proforma income tax impact (D)			(1	)			—				(10	)			—
Grantor trust activity			(5	)			(1	)			(2	)			1
Total Continuing Operations — Special Items, net of tax		$	10			$	(1	)		$	36			$	1
Discontinued Operations — Special Items
Loss on assets held for sale (A)(E)		$	8			$	—			$	8			$	—
Total Discontinued Operations — Special Items, pre-tax			8				—				8				—
Proforma income tax impact (F)			—				—				—				—
Total Discontinued Operations — Special Items, net of tax		$	8			$	—			$	8			$	—
Diluted EPS Impact
Continuing Operations — Diluted EPS Impact		$	0.07			$	(0.01	)		$	0.23			$	0.01
Discontinued Operations — Diluted EPS Impact		$	0.05			$	—			$	0.05			$	—
Weighted Average Diluted Shares Outstanding			152				155				154				155
Exhibit 4B
Covanta Holding Corporation Effective Tax Rate
		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2010				2009				2010				2009
		(Unaudited)
Effective Tax Rate from Continuing Operations (G)			21.1	%			48.3	%			41.3	%			41.1	%

Exhibit 5

Covanta Holding Corporation
Reconciliation of Net Income to Adjusted EBITDA

		Three Months Ended												Twelve Months Ended												Full Year
		December 31, 2010												December 31, 2010												Estimated 2011(A)
						Discontinued				Continuing								Discontinued				Continuing				Continuing
		Total				Operations				Operations				Total				Operations				Operations				Operations
		(Unaudited, in millions)												(Unaudited, in millions)
Net Income attributable to Covanta Holding Corporation		$	23			$	3			$	20			$	62			$	32			$	30
Special Items, net of tax (B)			18				8				10				44				8				36
Net Income excluding Special Items, net of tax		$	41			$	11			$	30			$	106			$	40			$	66			$60 - $83
Depreciation and amortization expense			50				2				48				196				6				190			$196 - $190
Debt service:
Net interest expense on project debt			9				1				8				41				3				38
Interest expense			13				—				13				45				—				45
Non-cash convertible debt related expense			9				—				9				39				—				39
Investment income			(1	)			(1	)			—				(3	)			(2	)			(1	)
Subtotal debt service			30				—				30				122				1				121			$133 - $128
Income tax expense, excluding tax effect of Special Items (B)			13				3				10				44				8				36			$41 - $67
Net income attributable to noncontrolling interests in subsidiaries			2				1				1				9				4				5			$3 - $9
Other adjustments:
Decrease in unbilled service receivables			5				—				5				29				—				29
Non-cash compensation expense			4				—				4				17				—				17
Transaction-related costs (C)			1				1				—				2				2				—
Other non-cash expenses (D)			1				—				1				6				—				6
Subtotal other adjustments			11				1				10				54				2				52			$47 - $43
Total adjustments			106				7				99				425				21				404
Adjusted EBITDA		$	147			$	18			$	129			$	531			$	61			$	470			$480 - $520
		Three Months Ended												Twelve Months Ended
		December 31, 2009(E)												December 31, 2009(E)
						Discontinued				Continuing								Discontinued				Continuing
		Total				Operations				Operations				Total				Operations				Operations
		(Unaudited, in millions)												(Unaudited, in millions)
Net Income attributable to Covanta Holding Corporation		$	28			$	11			$	17			$	102			$	41			$	61
Special Items, net of tax (B)			(1	)			—				(1	)			1				—				1
Net Income excluding Special Items, net of tax		$	27			$	11			$	16			$	103			$	41			$	62
Depreciation and amortization expense			53				2				51				203				6				197
Debt service:
Net interest expense on project debt			11				1				10				49				4				45
Interest expense			11				—				11				38				—				38
Non-cash convertible debt related expense			9				—				9				24				—				24
Investment income			—				—				—				(4	)			(2	)			(2	)
Subtotal debt service			31				1				30				107				2				105
Income tax expense, excluding tax effect of Special Items (B)			16				(1	)			17				48				7				41
Net income attributable to noncontrolling interests in subsidiaries			2				1				1				9				5				4
Other adjustments:
Decrease in unbilled service receivables			6				—				6				20				—				20
Non-cash compensation expense			4				—				4				14				—				14
Transaction-related costs (C)			—				—				—				6				—				6
Other non-cash expenses (D)			1				—				1				5				—				5
Subtotal other adjustments			11				—				11				45				—				45
Total adjustments			113				3				110				412				20				392
Adjusted EBITDA		$	140			$	14			$	126			$	515			$	61			$	454

Exhibit 6

Covanta Holding Corporation
Reconciliation of Cash Flow Provided by Operating Activities to Free Cash Flow

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,								Full Year
		2010				2009(A)				2010				2009(A)				Estimated 2011
		(Unaudited, in millions)
Cash flow provided by operating activities		$	103			$	149			$	431			$	397
Less: Maintenance capital expenditures (B)			(17	)			(8	)			(74	)			(52	)
Free Cash Flow		$	86			$	141			$	357			$	345
Cash flow provided by operating activities of continuing operations		$	99			$	128			$	392			$	352			$325 - $385
Less: Maintenance capital expenditures (B)			(17	)			(8	)			(74	)			(52	)		$(75) - $(85)
Continuing Operations Free Cash Flow		$	82			$	120			$	318			$	300			$250 - $300
Uses of Continuing Operations Free Cash Flow
Continuing Operations Free Cash Flow		$	82			$	120			$	318			$	300
Net cash used for scheduled principal payments on project debt (C)			(27	)			(29	)			(170	)			(121	)		$(102)
Net cash used for scheduled principal payments on long-term debt			(2	)			(2	)			(7	)			(7	)		$(7)
Distributions to partners of noncontrolling interests in subsidiaries			(2	)			(1	)			(6	)			(6	)		$(6)
Free Cash Flow Available After Scheduled Payments		$	51			$	88			$	135			$	166			$135 - $185
Other Sources and Uses of Cash:
Investments:
Acquisition of businesses, net of cash acquired		$	(2	)		$	(14	)		$	(130	)		$	(266	)
Non-maintenance capital expenditures			(15	)			(7	)			(41	)			(22	)
Acquisition of land use rights			—				—				(19	)			—
Acquisition of noncontrolling interests in subsidiaries			—				(24	)			(2	)			(24	)
Purchase of equity interests			—				—				—				(9	)
Other investing activities, net (D)			(7	)			(5	)			(21	)			(14	)
Total investments		$	(24	)		$	(50	)		$	(213	)		$	(335	)
Return of capital to shareholders:
Cash dividends paid to shareholders		$	—			$	—			$	(233	)		$	—
Common stock repurchased			(58	)			—				(95	)			—
Total return of capital to shareholders		$	(58	)		$	—			$	(328	)		$	—
Capital raising activities:
Net proceeds from issuance of corporate debt (E)		$	390			$	2			$	390			$	388
Net proceeds from issuance of project debt (F)			5				(1	)			10				(5	)
Net proceeds from asset sales			12				—				12				—
Other financing activities, net			11				7				27				36
Net proceeds from capital raising activities		$	418			$	8			$	439			$	419
Optional debt repayments:
Optional repayment of corporate debt		$	(313	)		$	—			$	(313	)		$	—
Optional repayment of project debt			—				—				—				—
Fees incurred for debt redemption			(2	)			—				(2	)			—
Total optional debt repayments		$	(315	)		$	—			$	(315	)		$	—
Short-term borrowing activities:
Borrowing (repayment) under Revolving Credit Facility, net		$	—			$	—			$	—			$	—
Financing of insurance premiums, net			—				10				(10	)			—
Short-term borrowing activities, net		$	—			$	10			$	(10	)		$	—
Net change in cash and cash equivalents from continuing operations		$	72			$	56			$	(292	)		$	250
(A)  See Exhibit 1 — Note A of this Press Release.
(B)  Purchases of property, plant and equipment is also referred to as capital expenditures. Capital expenditures that primarily maintain existing facilities are classified as maintenance capital expenditures. The following table provides the components of total purchases of property, plant and equipment:
Maintenance capital expenditures		$	(17	)		$	(8	)		$	(74	)		$	(52	)
Capital expenditures associated with project construction / development			(7	)			(3	)			(21	)			(13	)
Capital expenditures associated with technology development			(2	)			(2	)			(6	)			(5	)
Capital expenditures — other			(6	)			(2	)			(14	)			(4	)
Total purchases of property, plant and equipment		$	(32	)		$	(15	)		$	(115	)		$	(74	)
(C)  Calculated as follows:
Total principal payments on project debt		$	(100	)		$	(60	)		$	(202	)		$	(230	)		$	(140	)
Decrease in related restricted funds held in trust			44				31				3				45			$	38
Less: repayments from cash prior to scheduled amortization, final maturity or investor put			29				—				29				64
Net cash used for principal payments on project debt		$	(27	)		$	(29	)		$	(170	)		$	(121	)		$	(102	)
(D)  For the twelve months ended December 31, 2010, other investing activities is primarily comprised of net payments from the purchase/sale of investment securities and business development expenses. For the twelve months ended December 31, 2009, other investing activities is primarily comprised of a loan issued for the Harrisburg energy-from-waste facility to fund certain facility improvements, net of repayments.
(E)  Excludes borrowings under Revolving Credit Facility. Calculated as follows:
Proceeds from borrowings on long-term debt		$	400			$	—			$	400			$	460
Financing costs related to issuance of long-term debt			(10	)			2				(10	)			(14	)
Purchase of convertible note hedge			—				—				—				(112	)
Proceeds from issuance of warrants			—				—				—				54
Net proceeds from issuance of corporate debt		$	390			$	2			$	390			$	388
(F)  Excludes borrowings under project working capital facilities. Calculated as follows:
Proceeds from issuance of project debt		$	34			$	—			$	39			$	70
Less: proceeds used to repay project debt (refinancing)			(29	)			—				(29	)			(64	)
Interest rate swap termination costs			—				(1	)			—				(11	)
Net proceeds from issuance of project debt		$	5			$	(1	)		$	10			$	(5	)