Dynegy reports liquidity of $1.01 billion, reduced fixed cash costs

By Lisa Kerner

Charlotte, N.C., March 8 - Dynegy Holdings, LLC reported available liquidity of $1.01 billion at March 2, including $835 million of unrestricted cash and cash equivalents, $25 million of letter-of-credit availability and $224 million of restricted cash available for collateral posting purposes.

The company reported its fourth-quarter and full-year 2011 financial results on Thursday.

President and chief executive officer Robert C. Flexon said that while the company was impacted by market conditions, it continues to make progress in its financial and operational restructuring activities.

A disclosure statement hearing is set for March 12.

In August, Dynegy reorganized its operations into three segments: coal, gas and Dynegy Northeast.

During the earnings call, Flexon said management's Pride program (Producing Results through Innovation by Dynegy Employees) cut recurring fixed cash costs by $58 million compared to 2010. The program identified an additional $26 million of cost improvements for 2012.

In addition, gross margin improved $12 million during 2011 as a result of Pride initiatives, and $376 million of balance sheet efficiencies were secured primarily through the return of $364 million of collateral and restricted cash.

Dynegy is a Houston-based producer and seller of electric energy, capacity and ancillary services. The company and four subsidiaries filed for bankruptcy on Nov. 7. The Chapter 11 case number is 11-38111.

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