Dynegy Narrows 2015 Guidance, Initiates 2016 Guidance

(RTTNews) - Dynegy Inc. (DYN) announced the company's full-year 2015 adjusted EBITDA and free cash flow guidance ranges are narrowed at $825 million to $925 million and $140 million to $240 million, respectively.

Dynegy has set its full-year 2016 adjusted EBITDA guidance range at $1.10 billion to $1.30 billion and free cash flow guidance at $300 million to $500 million.

The company reported third-quarter consolidated adjusted EBITDA of $350 million, compared to $90 million for the prior year third quarter. The company said $260 million increase was primarily due to its recent acquisitions, higher spark spreads in the Gas segment, higher wholesale capacity revenues at the IPH and Coal segments, and improved results for the retail business.

"Dynegy remains on track to meet the 2015 guidance range for Adjusted EBITDA and Free Cash Flow in spite of the mild third quarter summer temperatures, which adversely impacted the demand for power and power prices across our operating regions," said Dynegy President and CEO Robert Flexon.

Separately, Dynegy announced its plans to retire 465 megawatt (MW) Wood River Power Station in Alton, Illinois in mid-2016. The company said the the decision to retire the Wood River facility is due to its uneconomic operation stemming from a poorly designed wholesale capacity market in Central and Southern Illinois that does not allow competitive generators to recover costs.

The Wood River Power Station includes two coal-fueled units that entered commercial operation in 1954 and 1964, respectively.