How Electricity Retailer TXU Energy Emerged From Bankruptcy as a Hot Property

TXU Energy never got much respect, despite being the largest electricity retailer in Texas. Now it’s emerged as a surprising breakout star from one of the biggest bankruptcies in the power industry.Customer defections are down sharply since 2012, electricity sales are up and a key financial metric, free cash flow, has improved by about $100 million since the summer.Its parent company, rebranded as Vistra Energy, emerged from Chapter 11 in October. It recently projected a profit of $150 million for 2017, up from an estimated loss of $587 million last year.Vistra includes Luminant, a giant power generator with coal and natural gas plants, and a nuclear facility. When Vistra raised guidance estimates last month, one of the primary drivers was the “continued outperformance by TXU Energy,” it said.Elsewhere, it cited the “attractive margins” in TXU’s business, the unit’s “leading profitability” and the advantages of an energy model that integrates power generation and electricity retailing.“We believe this is a unique company structure in the competitive” market, Vistra said in a public filing last month.  Continue reading...

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