Vistra (NYSE: VST) CEO Curt Morgan on Friday celebrated his organization’s recovery from the $1.6 billion in losses suffered in the wake of February’s Winter Storm Uri by saying he was excited to share details of the long-term capital allocation plan.

“It’s hard to believe we are still in the same year where we experienced the significant effects from Winter Storm Uri,” Morgan said during a conference call with financial analysts. “We are beginning to execute on our strategic priorities … that have begun prior to Uri but accelerated greatly immediately on the heels of the storm.”

Vistra plans to strengthen its business model, which includes both generation and retail sales, through investments in its fleet and fuel supply and improved risk management practices. Morgan said that involves $2 billion in share repurchases through next year, just over 60% of its market capitalization, “for as long as our stock remains at what we believe is such a meaningful discount to its fundamental value.”

The company’s quarterly results excluded a net $10 million “benefit” related to Uri, including in ERCOT resettlements and revenue true-up of $43 million net of $33 million in bill credits applied to large commercial and industrial customers that curtailed during the storm. Vistra also expects to receive about $500 million in proceeds when the grid operator begins securitizing the market’s uplift balance in the first quarter of 2021.

Morgan said the company has already completed about 85% of the $500 million “self-help” initiatives it announced after Uri, including monetizing certain commercial positions, generation savings from lower operations and maintenance project work, retail savings, and reduced administrative expenses. “All of that done without really impacting any future periods,” he said.

Vistra reported third-quarter ongoing operations of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.177 billion, down slightly from last year’s third quarter of $1.183 billion.

The company uses adjusted EBITDA as a performance measure because it believes that external analysis of its business is improved by visibility to both adjusted EBITDA and net income prepared in accordance with generally accepted accounting principles.

Vistra’s share price gained $1.25 Friday and closed the week at $20.46. It dropped to $17.25 in February after the company’s Uri losses were disclosed. (See Vistra Stock Plunges After Market Losses.)

CenterPoint Profits Surge

Another Texas company hammered by the winter storm, Houston’s CenterPoint Energy (NYSE: CNP), said its profits surged during the third quarter.

The utility delivered third-quarter earnings of $195 million ($0.32/diluted share), nearly triple 2020’s third-quarter performance of $69 million ($0.13/diluted share). That beat analysts’ expectations of $0.28/diluted share compiled by Thomson Reuters. 

“We now have six quarters of meeting or exceeding expectations, but we believe that there is much more to come,” CEO Dave Lesar said.

He said the company has mechanisms in place to recover the storm’s gas costs in its various jurisdictions and recently reached a settlement on prudence proceedings supporting securitization of 100% of gas costs in Texas. 

CenterPoint has also begun recovery in Minnesota and is “working with stakeholders … to reduce the impact on our customers,” Lesar said.

The utility’s share price finished the week at $26.67, a 40-cent gain following the earnings announcement.

OGE Energy Maintains Status Quo

OGE Energy (NYSE: OGE) released quarterly earnings Thursday of $252 million ($1.26/share) as compared to $177 million ($0.89/share) in the third quarter last year. The utility narrowed its year-end guidance to $1.79-$1.83/share.

Oklahoma City-based OGE has reached a joint settlement that would, with regulatory approval, allowing it to securitize $875 million over 13 years and recover 99% of the fuel and purchased power costs incurred during Uri.

The company’s share price gained a penny over its per-earnings close, finishing the week at $34.60.