EX-99.1 2 a13-2329_1ex99d1.htm EX-99.1

Exhibit 99.1

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Base Case Cash Flow Summary Base Case Cash Flow Summary Source: Company filings; 8-K dated 12/17/12 For illustrative purposes only, projections assume Powerton and Joliet leases remain in place and are not modified in connection with the Company’s Chapter 11. No determination has been made regarding the assumption or rejection of the financing or treatment of the financing in connection with the Chapter 11 Tax payments are preliminary in nature and subject to revision and to changes in law. Excludes any audit payments related to outstanding tax disputes. On 01/01/13, fiscal cliff legislation extended 50% bonus depreciation for one year (through 2013). Based on preliminary analysis, this extension is anticipated to result in a reduction in tax sharing payments to EME of approximately $400 million in 2014 Represents a combination of working capital, deferred revenues, cash taxes paid after deconsolidation and other cash items Includes approximately $200 million of cash that management believes is required to operate the Company in the ordinary course Adjusted to exclude Midwest Generation EBITDAR, capex and PoJo payments. No adjustments made for changes in working capital or Corporate G&A Includes Capistrano debt in the amount of $198 million as of December 31, 2013 with annual amortization per the terms of the indentures. 2014 includes a reduction of $222 million associated with certain operations ceasing to be part of continuing operations Includes restricted cash at various subsidiaries and margin and collateral deposits at EMMT. Some portion of restricted cash is anticipated to be released upon emergence from bankruptcy $ in mm 2013E 2014E 2015E 2016E 2017E Adjusted EBITDAR $141 $230 $276 $465 $505 Less: PoJo Payments (1) (151) (151) (67) (26) (1) Less: Capital Expenditures (217) (382) (194) (19) (18) Plus: EIX Tax Refund to EME (2) 80 622 0 0 0 Less: Project Level Debt Amortization (17) (111) (113) (109) (106) Less: Project Level Interest Payments (83) (75) (71) (67) (61) Plus: Distributions from Uncons. Affiliates, Net (1) 2 (8) (2) 2 Minority Interests, Net (Including Capistrano) (3) (59) 20 (4) (29) Other Cash Flows (3) 140 111 (61) (76) (32) Less: Restructuring Costs (36) (36) 0 0 0 Free Cash Flow ($148) $150 ($218) $163 $261 Beginning Cash Balance 670 522 672 455 618 Ending Cash Balance (4) $522 $672 $455 $618 $879 Illustrative Free Cash Flow Excluding MWG (5) $253 $739 $48 $22 $61 Beginning Cash Balance Excluding MWG 595 848 1,586 1,634 1,656 Illustrative Ending Cash Balance Excl. MWG $848 $1,586 $1,634 $1,656 $1,716 Total Project Level Debt (6) $1,461 $1,129 $1,016 $907 $801 December 31, 2012 Projected Unrestricted Cash Balances Corporate Cash $401 EMMT 120 Midwest Generation 75 Other Project Level 75 Total Unrestricted Cash $670 Restricted Cash (7) $285

 


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Downside Case Cash Flow Summary Downside Case Cash Flow Summary Source: Company filings; 8-K dated 12/17/12 For illustrative purposes only, projections assume Powerton and Joliet leases remain in place and are not modified in connection with the Company’s Chapter 11. No determination has been made regarding the assumption or rejection of the financing or treatment of the financing in connection with the Chapter 11 Tax payments are preliminary in nature and subject to revision and to changes in law. Excludes any audit payments related to outstanding tax disputes. On 01/01/13, fiscal cliff legislation extended 50% bonus depreciation for one year (through 2013). Based on preliminary analysis, this extension is anticipated to result in a reduction in tax sharing payments to EME of approximately $400 million in 2014 Represents a combination of working capital, deferred revenues, cash taxes paid after deconsolidation and other cash items Includes approximately $200 million of cash that management believes is required to operate the Company in the ordinary course Adjusted to exclude Midwest Generation EBITDAR, capex and PoJo payments. No adjustments made for changes in working capital or Corporate G&A Includes Capistrano debt in the amount of $198 million as of December 31, 2013 with annual amortization per the terms of the indentures. 2014 includes a reduction of $222 million associated with certain operations ceasing to be part of continuing operations Includes restricted cash at various subsidiaries and margin and collateral deposits at EMMT. Some portion of restricted cash is anticipated to be released upon emergence from bankruptcy $ in mm 2013E 2014E 2015E 2016E 2017E Adjusted EBITDAR $29 $101 $125 $368 $383 Less: PoJo Payments (1) (151) (151) (67) (26) (1) Less: Capital Expenditures (217) (382) (194) (19) (18) Plus: EIX Tax Refund to EME (2) 81 644 0 0 0 Less: Project Level Debt Amortization (17) (111) (113) (109) (106) Less: Project Level Interest Payments (83) (75) (71) (67) (61) Plus: Distributions from Uncons. Affiliates, Net (1) 2 (8) (2) 2 Minority Interests, Net (Including Capistrano) (3) (64) 4 17 (29) Other Cash Flows (3) 71 120 35 (85) (4) Less: Restructuring Costs (36) (36) 0 0 0 Free Cash Flow ($329) $47 ($288) $77 $166 Beginning Cash Balance 664 335 383 95 172 Ending Cash Balance (4) $335 $383 $95 $172 $338 Illustrative Free Cash Flow Excluding MWG (5) $184 $765 $128 $33 $88 Beginning Cash Balance Excluding MWG 589 773 1,538 1,666 1,699 Illustrative Ending Cash Balance Excl. MWG $773 $1,538 $1,666 $1,699 $1,788 Total Project Level Debt (6) $1,461 $1,129 $1,016 $907 $801 December 31, 2012 Projected Unrestricted Cash Balances Corporate Cash $401 EMMT 114 Midwest Generation 75 Other Project Level 75 Total Unrestricted Cash $664 Restricted Cash (7) $285