Energy Future Holdings reports $2 billion fourth-quarter loss

Posted Tuesday, Feb. 19, 2013  comments  Print Reprints

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Dallas-based Energy Future Holdings, formerly TXU Corp., said it lost $3.36 billion last year after taking a $1.2 billion non-cash impairment charge in the fourth quarter and a $983 million paper loss on its hedging contracts.

The company in January released preliminary results, estimating a $2.2 billion loss, but said it might take further write-downs.

At least once a year, public companies must compare their asset values to current market conditions, and adjust the values if the market price is less. Without the adjustments, EFH said it would have lost $1.03 billion. That compared to an adjusted loss of $1.08 million in 2011.

In the fourth quarter, EFH said it lost $1.95 billion including the $1.2 billion impairment as well as other adjustments. Without the adjustments, EFH lost $483 million, compared to a net loss of $407 million in 2011.

EFH owns and operates Luminant Generation, the state's largest electricity producer, and TXU Energy, an electricity retailer. It owns 80 percent of Oncor Electric Delivery, the regulated distribution utility that serves most of North Texas.

The company, which is saddled with more than $40 billion in debt from the nation's largest leveraged buyout, has been experiencing declining revenues and a shrinking customer base. Earlier this month, the Wall Street Journal reported that EFH hired the Kirkland & Ellis law firm to help it restructure its debt.

TXU was taken private in 2007 in a buyout led by KKR and TPG Capital.

Oncor reported a net profit of $340 million, compared to a $360 million profit in 2011.

Jim Fuquay, (817) 390-7552

Twitter: @jimfuquay

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