Dynegy Completes Acquisition of ENGIE's U.S. Portfolio

“The ENGIE acquisition adds strategic assets in key markets and leverages our low-cost scalable operating platform, furthering our position as the low-cost operator among our peers.”

The portfolio consists of 9,017 megawatts (MW) of generation capacity, more than 90% of which is gas-fueled. The plants are located in the Texas ERCOT, PJM and ISO-New England markets, the best and most competitive power markets in the country. The addition of the ENGIE asset portfolio enhances the Company’s strategy of driving efficiencies to become the low-cost industry leader. Dynegy now owns more than 31,000 MW of low-cost generating capacity—enough to power 25 million homes.

“Since 2013, we have transformed Dynegy’s fuel and geographic asset mix and increased our fleet longevity through a series of acquisitions, tripling our capacity in just a few short years,” said Robert C. Flexon, Dynegy President and CEO. “The ENGIE acquisition adds strategic assets in key markets and leverages our low-cost scalable operating platform, furthering our position as the low-cost operator among our peers.” The ENGIE transaction adds efficient assets that enhance Dynegy’s existing portfolio in PJM and ISO New England, and diversifies the Company’s geographic markets by establishing a new presence in the Texas ERCOT market. The predominantly gas-fueled ENGIE portfolio increases Dynegy’s overall natural gas-fueled capacity to nearly 2/3 of our total generation.

Dynegy will leverage its scale and proven approach to integration and synergy achievement to maximize the value of transaction. The Company’s integration will be swift with the majority of our initial $90 million synergy target to be achieved within the first 30 days of closing. An updated and increased synergy target will be announced in the near future. The synergies are primarily derived from operations and maintenance, procurement and the elimination of redundant corporate platform costs.

As previously announced, pursuant to the closing of the transaction, Dynegy acquired ECP’s 35% interest in the joint venture, and owns 100% of the acquired business. Dynegy has assumed ECP’s share of the upfront equity funding at closing, and paid ECP the revised discounted floor price of $375 million post-closing. This step allows Dynegy to reduce the cost of the acquisition and accelerate the full integration of the ENGIE portfolio into the Company’s existing business.

In connection with the terms of the transaction with ECP, the Dynegy Board of Directors has named Tyler Reeder as a representative from ECP to its Board. ECP has the right to appoint one director to the Board so long as its common stock ownership in Dynegy is at least 10%. Mr. Reeder is a Partner of Energy Capital Partners. Prior to joining Energy Capital in 2006, he was a member of the Texas Genco, LLC management team until the sale of the company to NRG Energy in 2006. While at Texas Genco, Mr. Reeder was the head of the asset optimization desk and managed the generation portfolio’s power and fuel positions. From 1998 to 2002, he was a Director for Energy Markets and a Finance Manager at Orion Power Holdings, Inc., where he was responsible for power marketing, transaction analysis and execution. From 1996 to 1998, he worked at Goldman Sachs. Mr. Reeder received a B.A. in Economics from Colgate University.