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    Bill Appicelli • UBS

    Bill Appicelli's questions to Vistra Corp (VST) leadership

    Bill Appicelli's questions to Vistra Corp (VST) leadership • Q2 2025

    Question

    Bill Appicelli of UBS Group AG asked for more detail on the improved free cash flow conversion target, the specific drivers for achieving an investment-grade rating, and management's perspective on the PJM capacity auction clearing at its cap and future price direction.

    Answer

    EVP & CFO Kris Moldovan explained the higher free cash flow conversion (to 60%+) is driven by the One Big Beautiful Bill Act's depreciation benefits, potentially adding ~$200M annually starting in 2026. He stated the path to investment grade involves both higher EBITDA and debt paydown, expecting leverage to fall materially below 3x. President & CEO Jim Burke added that recent PJM auction clears reflect rising new-build costs and are sending necessary investment signals, noting the market is responding with new supply and conversions like Miami Fort.

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    Bill Appicelli's questions to PPL Corp (PPL) leadership

    Bill Appicelli's questions to PPL Corp (PPL) leadership • Q2 2025

    Question

    Bill Appicelli asked for PPL's perspective on the PJM capacity auction issues, the company's preferred solution between pending legislation and the new JV, and the expected financial structure of the JV regarding leverage and returns.

    Answer

    President & CEO Vincent Sorgi explained that the JV was created as a proactive solution to the PJM market's failure to incentivize new generation, which has raised customer costs without improving reliability. He noted the JV and state legislation are PPL's primary strategies to address this. Regarding the JV's structure, Sorgi stated its capitalization will depend on the final Energy Services Agreements (ESAs) but will be designed to maintain PPL's corporate credit metrics, with returns expected to be slightly above regulated levels to reflect the risk profile.

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    Bill Appicelli's questions to PPL Corp (PPL) leadership • Q2 2025

    Question

    Bill Appicelli asked for PPL's preferred solution to the PJM capacity auction's inability to procure new generation and for details on the Blackstone JV's high-level structure, particularly regarding leverage and expected returns on projects.

    Answer

    President & CEO Vincent Sorgi stated that the Blackstone JV was created specifically to address the failure of PJM capacity auctions, which have increased customer costs without adding new generation. He noted the JV is not disincentivized by cannibalizing existing assets, unlike some IPPs. Regarding the JV's structure, Sorgi explained its capitalization will depend on the final Energy Services Agreements (ESAs) but will aim to maintain PPL's corporate credit metrics, likely financed similarly to a utility. He expects returns to be slightly above regulated rates to compensate for slightly higher risk.

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    Bill Appicelli's questions to Southern Co (SO) leadership

    Bill Appicelli's questions to Southern Co (SO) leadership • Q2 2025

    Question

    Bill Appicelli from UBS Group sought to clarify the plan for rebasing the 5-7% EPS growth rate post-2027 and asked for the company's outlook on escalating generation construction costs and how that is factored into financial planning.

    Answer

    David Poroch, SVP & incoming CFO, reiterated that a rebasing could happen as early as 2027 but is contingent on seeing sustained, long-term momentum in load growth, refusing to commit to a specific date. Regarding costs, he acknowledged that prices are rising but stated the company has placeholders and reservation fees in place to manage this. CEO Chris Womack added that high demand is creating significant upward price pressure in the market.

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    Bill Appicelli's questions to Entergy Corp (ETR) leadership

    Bill Appicelli's questions to Entergy Corp (ETR) leadership • Q2 2025

    Question

    Bill Appicelli asked about the company's capital expenditure headroom before requiring additional equity, the tariff structure for the new Arkansas customer, and the potential magnitude of nuclear uprate opportunities.

    Answer

    CFO Kimberly Fontan emphasized a disciplined financing framework with a 10-15% equity run rate rather than a specific CapEx ceiling. She highlighted Arkansas's new infrastructure rider, which allows for timely recovery. Regarding nuclear uprates, Fontan noted the capital for the Waterford project is not significant and is already in the plan, while CEO Drew Marsh added that customer support would be sought for any future, larger uprates.

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    Bill Appicelli's questions to CenterPoint Energy Inc (CNP) leadership

    Bill Appicelli's questions to CenterPoint Energy Inc (CNP) leadership • Q2 2025

    Question

    Bill Appicelli from UBS sought to clarify the equity funding plan, confirming that the base plan plus proceeds from the Ohio asset sale would cover existing needs, and that additional CapEx beyond that would not require new equity. He also asked if this plan contemplated further asset sales.

    Answer

    EVP & CFO Christopher Foster confirmed the interpretation was correct, noting that a third of the $2.75 billion equity need has already been de-risked. He clarified that the Ohio gas LDC sale is intended to fund the $5.5 billion in CapEx updates from this year and that the ability to fund further increases without equity does not contemplate additional asset sales, but rather relies on improved operating cash flow.

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    Bill Appicelli's questions to CenterPoint Energy Inc (CNP) leadership • Q2 2025

    Question

    Bill Appicelli from UBS sought to clarify the equity financing plan, confirming if the base plan plus the Ohio asset sale proceeds would fund current plans, with any further CapEx increases not requiring additional equity. He also asked if this contemplated sales beyond Ohio.

    Answer

    CFO Chris Foster confirmed the understanding was correct: the base equity plan (one-third of which is de-risked) and Ohio sale proceeds cover the current capital plan, and there is capacity for further CapEx without more equity. Foster explicitly stated this capacity does not assume any asset sales beyond the Ohio gas LDC, attributing the flexibility to improved operating cash flow from recent regulatory outcomes.

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    Bill Appicelli's questions to Spire Inc (SR) leadership

    Bill Appicelli's questions to Spire Inc (SR) leadership • Q4 2024

    Question

    Bill Appicelli asked for clarification on the Q4 results coming in below lowered expectations, specifically questioning the shortfall in the Gas Marketing segment. He also inquired about the cadence of O&M cost savings and whether further opportunities exist beyond the flat O&M guidance for 2025.

    Answer

    Executive Vice President and CFO Steven Rasche confirmed the Q4 miss was primarily due to weak market conditions impacting the Gas Marketing segment, along with slightly higher interest costs. On O&M, Executive Vice President and COO Scott Doyle detailed that savings came from labor reductions and optimizing labor strategies, with more efficiency gains expected from technology like advanced meters. Vice President and Treasurer Adam Woodard noted that guiding to flat O&M is a significant achievement given inflationary pressures.

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