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8-K - 8-K - ONCOR ELECTRIC DELIVERY CO LLC | d578417d8k.htm |
Exhibit 99.1
Exhibit 99.1
Second Quarter 2013 Investor Call
August 2, 2013
Oncor Electric Delivery
Forward Looking Statements
This presentation contains forward-looking statements, which are subject to various risks and uncertainties. Discussion of risks and uncertainties that could cause actual results to differ materially from managements current projections, forecasts, estimates and expectations is contained in filings made by Oncor Electric Delivery Company LLC (Oncor) with the Securities and Exchange Commission (SEC). Specifically, Oncor makes reference to the section entitled Risk Factors in its annual and quarterly reports. In addition to the risks and uncertainties set forth in Oncors SEC filings, the forward-looking statements in this presentation could be affected by, among other things: prevailing governmental policies and regulatory actions; legal and administrative proceedings and settlements, including the exercise of equitable powers by courts; weather conditions and other natural phenomena; effects of a bankruptcy or other restructuring transactions, and negotiations relating thereto, involving Texas Energy Future Holdings Limited Partnership and its direct and indirect subsidiaries; acts of sabotage, wars or terrorist or cyber security threats or activities; economic conditions, including the impact of a recessionary environment; unanticipated population growth or decline, or changes in market demand and demographic patterns; changes in business strategy, development plans or vendor relationships; unanticipated changes in interest rates or rates of inflation; unanticipated changes in operating expenses, liquidity needs and capital expenditures; inability of various counterparties to meet their financial obligations to Oncor, including failure of counterparties to perform under agreements; general industry trends; hazards customary to the industry and the possibility that Oncor may not have adequate insurance to cover losses resulting from such hazards; changes in technology used by and services offered by Oncor; significant changes in Oncors relationship with its employees; changes in assumptions used to estimate costs of providing employee benefits, including pension and other post-retirement employee benefits, and future funding requirements related thereto; significant changes in critical accounting policies material to Oncor; commercial bank and financial market conditions, access to capital, the cost of such capital, and the results of financing and refinancing efforts, including availability of funds in the capital markets and the potential impact of disruptions in US credit markets; circumstances which may contribute to future impairment of goodwill, intangible or other long-lived assets; financial restrictions under Oncors revolving credit facility and indentures governing its debt instruments; Oncors ability to generate sufficient cash flow to make interest payments on its debt instruments; actions by credit rating agencies; and Oncors ability to effectively execute its operational strategy. Any forward-looking statement speaks only as of the date on which it is made, and Oncor undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events.
Regulation G
This presentation includes certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in this presentation, which is available on Oncors website, www.oncor.com, in the Investor section, and also filed with the SEC.
Oncor Electric Delivery
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2nd Quarter 2013 Investor Call Agenda
Financial Overview David Davis
Chief Financial Officer
Operational Review Bob Shapard Chairman and CEO
Q&A
Oncor Electric Delivery
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Residential Volumes
Residential Points of Delivery
Q21 12 vs. Q2 13; thousands of meters
1.2% 2,742 2,775
At 6/30/2012 At 6/30/2013
Residential GWH, Actual
Q2 12 vs. Q2 13 and YTD 12 vs. YTD 13
18,019 18,001
9,146
8,546
6.6%
Q2 12 Q2 13 YTD 12 YTD 13
Avg KWH/Residential Premise, Weather Adj Q2 12 vs. Q2 13 and YTD 12 vs. YTD 132
6,611 6,615
3,104 3,048
1.8%
Q2 12 Q2 13 YTD 12 YTD 13
Residential GWH, Weather Adj
Q2 12 vs. Q2 13 and YTD 12 vs. YTD 13
18,298 1.2% 18,077
8,502 8,448
0.6%
Q2 12 Q2 13 YTD 12 YTD 13
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Three months ended June 30. |
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YTD = six months ended June 30. |
Oncor Electric Delivery
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Large C&I1 Demand and Volumes
Large C&I Billed MW Demand Large C&I Actual MW Demand Q22 12 vs. Q2 13 1.8% Q2 12 vs. Q2 13
0.9%
16,698 17,004 16,040 15,898
Q2 12 Q2 13 Q2 12 Q2 13
Large C&I GWH, Actual Large C&I GWH, Weather Adj Q2 12 vs. Q2 13 Q2 12 vs. Q2 13
0.9%
16,992 16,733 16,642 16,793
1.5%
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Commercial & Industrial |
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Three months ended June 30. |
Oncor Electric Delivery
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Summary of Financial Results1
Adjusted Operating Revenues Adjusted Net Income
Q22 12 vs. Q2 13; $ millions Q2 12 vs. Q2 13; $ millions
3.7%
792 821 104
13.5%
[Graphic Appears Here]
Q2 12 Q2 13 Q2 12 Q2 13
Adjusted Operating Cash Flow Adjusted EBITDA
Q2 12 vs. Q2 13; $ millions Q2 12 vs. Q2 13 and TME2 6/30/12 vs. TME 6/30/13; $ millions 3.2%
1,630 1,682 283 283
435 425
2.3%
Q2 12 Q2 13 Q2 12 Q2 13 TME 6/30/12 TME 6/30/13
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See Appendix for Reg G reconciliations and definitions of adjusted financial metrics. |
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Unless otherwise indicated, Q2 reflects three months ended June 30 and TME reflects twelve months ended June 30. |
Oncor Electric Delivery
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Ample Liquidity And Stable Credit Metrics
Secured Revolving Credit Facility1
Balances at June 30, 2013; $ millions
2,400 966
1,434 12 1,446
Revolver Capacity Borrowings and Letters Effective Remaining Cash Total Available Liquidity of Credit Capacity
Adjusted EBITDA2/Cash Interest Debt/Adjusted EBITDA
TME3 6/30/12 vs. TME 6/30/13; Ratio TME 6/30/12 vs. TME 6/30/13; Ratio
5.0x
4.8x 3.7x 3.7x
TME 6/30/12 TME 6/30/13 TME 6/30/12 TME 6/30/13
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Oncors $2.4 billion revolving credit facility matures in 2016. |
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See Appendix for Reg G reconciliation and definition. |
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TME Twelve Months Ended |
Oncor Electric Delivery
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2nd Quarter 2013 Investor Call Agenda
Financial Overview David Davis
Chief Financial Officer
Operational Review Bob Shapard Chairman and CEO
Q&A
Oncor Electric Delivery
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Appendix -
Regulation G Reconciliations and Supplemental Data
Oncor Electric Delivery
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Financial Definitions
Measure Definition
Adjusted Operating Revenues Oncor operating revenues, less operating revenues of Oncor Electric Delivery (non-GAAP) Transition Bond Company LLC (BondCo) Adjusted Net Income Oncor net income, less effects of purchase accounting, a tax audit settlement (non-GAAP) and net income of BondCo Adjusted Operating Cash Flow Oncor cash provided by operating activities, less BondCo cash provided by (non-GAAP) operating activities
Debt (non-GAAP) Oncor total debt, less transition bonds of BondCo
Oncor long-term debt (including current portion), plus bank loans and
Total Debt (GAAP) commercial paper
Income from continuing operations before interest expense and related charges and provisions in lieu of income tax, plus depreciation and amortization and special items. Also adjusted for the effect of the SARs exercise, where applicable. EBITDA is a measure used by Oncor to assess
Adjusted EBITDA (non-GAAP) performance.
Total debt less transition bonds divided by EBITDA. Transition, or securitization, bonds are serviced by a regulatory transition charge on wires Debt/Adjusted EBITDA rates and are therefore excluded from debt in credit reviews. Debt / EBITDA is (non-GAAP) a measure used by Oncor to assess credit quality.
Adjusted EBITDA/Cash Interest EBITDA divided by cash interest expense is a measure used by Oncor to (non-GAAP) assess credit quality.
Oncor Electric Delivery
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Table 1: Oncor Adjusted Operating Revenues Reconciliation
Three Months Ended June 30, 12 and 13 $ millions
Q2 12 Q2 13
Operating revenues Oncor 828 857 Adjustments: Operating revenues BondCo (36) (36) Adjusted operating revenues, excluding BondCo 792 821
Oncor Electric Delivery
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Table 2: Oncor Adjusted Net Income Reconciliation
Three Months Ended June 30, 12 and 13 $ millions
Q2 12 Q2 13
Net income Oncor 107 96
Adjustments: Effects of purchase accounting (after tax) (3) (3)
Bondco net income
Tax audit settlement (after tax)(3)
Adjusted net income, excluding BondCo 104 90
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Table 3: Oncor Adjusted Operating Cash Flow Reconciliation
Three Months Ended June 30, 12 and 13 $ millions
Q2 12 Q2 13
Operating cash flow Oncor 305 308 Adjustments: Operating cash flow BondCo (22) (25) Adjusted operating cash flow, excluding BondCo 283 283
Oncor Electric Delivery
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Table 4: Oncor Adjusted EBITDA Reconciliation
Three Months Ended June 30, 12 and 13 $ millions
Q2 12 Q2 13
Net income Oncor 107 96 Plus: Depreciation & amortization Oncor 192 202 Provision in lieu of income taxes Oncor 72 58 Interest expense Oncor 92 95 Equals: EBITDA Oncor 463 451 Adjustments: Net income BondCo Depreciation & amortization BondCo (29) (30) Interest expense BondCo (7) (5) Effects of fair value accounting (pre tax) (6) (4) Regulatory asset amortization in O&M expense 14 13 Oncor Adjusted EBITDA, excluding BondCo 435 425
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Table 5: Oncor Adjusted EBITDA Reconciliation
Twelve Months Ended June 30, 12 and 13 $ millions
TME 12 TME 13
Net income Oncor 392 350 Plus: Depreciation & amortization Oncor 745 796 Provision in lieu of income taxes Oncor 252 210 Interest expense Oncor 365 380 Equals: EBITDA Oncor 1,754 1,736 Adjustments: Net income BondCo Depreciation & amortization BondCo (117) (121) Interest expense BondCo (29) (23) Effects of fair value accounting (pre tax) (26) (20) SARs exercise (pre-tax)57 Regulatory asset amortization in O&M expense 48 53 Oncor Adjusted EBITDA, excluding BondCo 1,630 1,682
Oncor Electric Delivery
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Table 6: Oncor Total Debt Reconciliation
At June 30, 12 and 13 $ millions
12 13
Short-term debt- Oncor 935 960 Long-term debt due currently Oncor 121 128 Long-term debt, less due currently Oncor 5,460 5,444 Total debt Oncor, including BondCo 6,516 6,532 Adjustments: Long-term debt due currently BondCo (121) (128)
Long-term debt, less due currently BondCo (374) (246) Fair value adjustment BondCo 2 1 Total Oncor debt, excluding BondCo 6,023 6,159
Oncor Electric Delivery
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Table 7: Oncor Interest And Debt Coverages
Twelve Months Ended June 30, 12 and 13 $ millions
Interest expense and related charges Oncor Amortization of debt fair value discount Oncor Amortization of debt discount Oncor AFUDC Oncor Cash interest expense Oncor Less: Interest expense BondCo
Cash interest expense, excluding BondCo
TME 12 TME 13 Ref Source
365 380
(4) (30)
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11 368 361 (29) (23) |
339 338 A
EBITDA, excluding BondCo
Total debt, excluding BondCo
EBITDA/cash interest ratio (B / A)
Debt/EBITDA ratio (C / B)
1,630 1,682 B Table 5
6,023 6,159 C Table 6
4.8x 5.0x
3.7x 3.7x
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