Energy Future Holdings reports $2.17 billion loss

Posted Thursday, Jan. 24, 2013  comments  Print Reprints

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Energy Future Holdings, the Dallas-based electricity company, lost $2.17 billion in 2012 on sharply lower operating revenue of $5.64 billion, according to preliminary results filed with the Securities and Exchange Commission.

That's compared with a 2011 net loss of $1.91 billion on $7.04 billion in revenue.

EFH, formerly known as TXU Corp., owns Luminant Generation, the state's largest power generator; TXU Energy, an electricity retailer; and a majority of Oncor Electric Delivery, which operates the wires and poles that distribute power in North Texas. It was taken private in 2007 in a $45 billion buyout by a group led by private equity investors Texas Pacific Group and Kohlberg Kravis Roberts.

The Oncor regulated utility, in which it has an 80 percent stake, earned $340 million on $3.3 billion in revenue.

The 2012 results are unaudited and preliminary, the filing said. They do not include the impact of any noncash write-downs that could result from the company's test of the value of certain assets, a process required at least once a year. The company expects to report its full earnings around Feb. 15.

EFH was weighed down with $38.5 billion in long-term debt after its buyout, and interest charges have been a drag on the company's finances, especially after Texas electricity prices declined with falling natural gas prices.

According to its latest filings, EFH reduced interest and related charges to $3.5 billion in 2012, from $4.3 billion in 2011. It did not list its current long-term debt but said it was $45 billion as of Sept. 30.

In a Jan. 2 filing, EFH said it expects to reduce its interest payments to $2.7 billion in 2013 and $2.6 billion in 2014. It has been in discussions with lenders to restructure its debt and said in the Jan. 2 disclosure that it borrowed from a credit line and was working to extend other debt.

Jim Fuquay, 817-390-7552

Twitter: @jimfuquay

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