Dynegy Announces Third Quarter 2012 Results and $325 Million Debt Repayment

  Dynegy Announces Third Quarter 2012 Results and $325 Million Debt Repayment

Recent Developments:

  *On November 6, 2012, Dynegy provided notification to its lenders of its
    intent to repay $325 million of the Dynegy Power, LLC and Dynegy Midwest
    Generation, LLC term loans
  *Dynegy completed the Baldwin Unit 2 planned outage on November 3, 2012
    marking the Company’s completion of the environmental capital compliance
    obligations under our Consent Decree
  *Auction process for the sale of the Dynegy Northeast assets continues;
    bids were submitted on November 5, 2012
  *On September 30, 2012, Dynegy Holdings, LLC (DH) merged with and into
    Dynegy; the merged company emerged from bankruptcy on October 1, 2012

Third quarter 2012 summary:

  *14% increase in generation volumes compared to the same period in 2011
    driven by a 39% increase in our Gas segment generation due to improved
    spark spreads
  *$50 million in Coal and Gas segment Adjusted EBITDA, a decrease of $52
    million compared to 2011 due to lower realized prices for the Company’s
    Coal segment, the settlement of legacy financial positions, and lower
    capacity and tolling revenues from early terminations of California
    contracts
  *$803 million in enterprise liquidity at November 2, 2012, including $429
    million in unrestricted cash

Year-to-date 2012 summary:

  *18% increase in generation volumes compared to the same period in 2011
    driven by a 76% increase in our Gas segment generation due to improved
    spark spreads partially offset by an 11% decrease in Coal segment
    generation due primarily to higher planned outage hours and lower off-peak
    generation
  *$98 million in Coal and Gas segment Adjusted EBITDA, a decrease of $212
    million compared to 2011 as a result of lower realized prices for the
    Company’s Coal segment, the settlement of legacy financial positions, and
    lower capacity and tolling revenues due to early terminations of
    California contracts
  *$(37) million in consolidated Cash Flow used in Operations

Business Wire

HOUSTON -- November 07, 2012

Dynegy Inc. (NYSE:DYN) reported third quarter 2012 Adjusted EBITDA for the
Coal and Gas segments of $50 million compared to $102 million for the same
period in 2011. Lower realized prices for the Coal segment, lower revenues
from the termination of certain California contracts, and the settlement of
legacy financial positions reduced Adjusted EBITDA for the Coal and Gas
Segment by $89 million. Partially offsetting these items were a $12 million
improvement in Coal and Gas segment general and administrative and operating
and maintenance expenses, a $14 million benefit related to lower option
premium expenses, and a $10 million positive adjustment for non-cash
amortization related to the Gas segment’s Independence contract. The operating
loss for Dynegy’s Coal and Gas segments was $(1) million for the third quarter
of 2012 compared to operating income of $40 million for the same period in
2011. The net loss for Dynegy’s consolidated operations was $(41) million for
the third quarter of 2012 compared to a net loss of $(129) million for the
same period in 2011.

Year-to-date 2012 Adjusted EBITDA for the Coal and Gas segments was $98
million versus $310 million for the same period in 2011. The weaker financial
results were primarily driven by lower realized power prices for the Coal
segment which decreased energy margins by $123 million and an 11% reduction in
generation volumes for our Coal segment which led to an additional $25 million
decrease. Lower capacity and tolling revenues in the Gas segment of $38
million, primarily due to the early termination of the California agreements,
a $28 million reduction in premium revenue, and unfavorable financial
settlements of $49 million related to legacy financial positions further
contributed to the decrease in year-over-year Adjusted EBITDA. These factors
more than offset an $18 million improvement in general and administrative and
operating and maintenance expenditures and a $29 million positive adjustment
for non-cash amortization expense associated with the Company’s Independence
contract. The 2012 year-to-date operating income for the Coal and Gas segments
was $9 million compared to an operating loss of $(56) million for the same
period in 2011. The 2012 year-to-date net loss for Dynegy’s consolidated
operations totaled $(1,192) million compared to a net loss of $(324) million
for the same period in 2011.

“Our gas-fired generation fleet continues to benefit from current market
conditions and performed exceedingly well operationally, leading to record
volumes of generated electricity. While our Illinois-based coal fleet also
operated well, lower energy margins continued to impact the profitability of
the Coal segment,” said Robert C. Flexon, Dynegy President and Chief Executive
Officer. “In our first major capital allocation action post emergence, we are
announcing today the early repayment of $325 million in term loan debt, which
will reduce our annualized cash interest costs by approximately $30 million.”

Third Quarter Comparative Results by Segment

The non-GAAP financial measures of EBITDA and Adjusted EBITDA are used by
management to evaluate Dynegy’s business on an ongoing basis. For comparative
purposes, Adjusted EBITDA results below include the results of Dynegy Inc. for
the three months ending September 30, 2011 and 2012. Please refer to our third
quarter 2012 Form 10-Q (when filed) for greater discussion of the accounting
impacts of the Dynegy Inc. and DH merger on our GAAP financial statements.
General and administrative expenses are allocated to each segment. Management
does not analyze interest expense and income taxes on a segment level and
therefore uses operating income (loss) as the most directly comparable GAAP
measure to Adjusted EBITDA when performance is discussed on a segment level.

                    Consolidated Financial Results
                      Three Months Ended September 30, 2012

                      (in millions)
                      Coal         Gas          DNE       Other    Total
Operating Income /    $  (53  )     $  52         $  (3  )   $ (9  )   $ (13 )
(Loss)
Plus / (Less):
   Depreciation
   and                   9             35            -         1         45
   amortization
   expense
   Bankruptcy
   reorganization       -           -           -       18      18  
   charges
EBITDA                   (44  )        87            (3  )     10        50
Plus / (Less):
   Bankruptcy
   reorganization        -             -             -         (18 )     (18 )
   charges
   Restructuring         1             2             -         6         9
   costs
   Mark-to-market
   (income)              11            (53  )        1         -         (41 )
   losses, net
   Amortization of
   intangible           37          9           -       -       46  
   assets
Adjusted EBITDA          5             45            (2  )     (2  )     46
   Adjusted EBITDA
   from Legacy          -           -           -       2       2   
   Dynegy
Enterprise-wide
Adjusted EBITDA       $  5         $  45        $  (2  )   $ -      $ 48  
(1)

(1) 2012 consolidated results reflect the results of our accounting
predecessor, DH, which was a wholly owned subsidiary until the merger on
September 30, 2012. Therefore, certain results related to Legacy Dynegy are
not included in our consolidated results for the three months ended September
30, 2012. However, we have included the Adjusted EBITDA related to Legacy
Dynegy for the three months ended September 30, 2012 in this adjustment
because management uses Enterprise-wide Adjusted EBITDA to evaluate the
operating performance of our entire power generation fleet.

                  
                      Consolidated Financial Results
                      Three Months Ended September 30, 2011

                      (in millions)
                      Coal        Gas          DNE         Other   Total
                                                                       
Operating Income/     $  12        $  28         $  (26  )    $ -      $ 14
(Loss)
Plus / (Less):
   Other items,          2            -             -           5        7
   net
   Depreciation
   and                  26         33          -         1      60  
   amortization
   expense
EBITDA                   40           61            (26  )      6        81
Plus / (Less):
   Merger
   agreement
   termination
   fee,                  (1  )        9             1           (4 )     5
   restructuring
   costs and other
   expenses
   Mark-to-market
   (income) loss,       4          (18  )       24        4      14  
   net
Adjusted EBITDA          43           52            (1   )      6        100
   Adjusted EBITDA
   from Legacy          7          -           -         (1 )    6   
   Dynegy
Enterprise-wide
Adjusted EBITDA       $  50       $  52        $  (1   )    $ 5     $ 106 
(1)

(1) Adjusted EBITDA for the three months ended September 30, 2011, is based on
our prior methodology which did not include (i) adjustments for upfront
premiums, (ii) amortization of intangible assets related to the Independence
acquisition, or (iii) mark-to-market adjustments for financial activity not
related to our generation portfolio. Our 2011 consolidated results reflect the
results of our accounting predecessor, DH, which was a wholly-owned subsidiary
until the merger on September 30, 2012. Therefore, certain results related to
Legacy Dynegy are not included in our consolidated results for the three
months ended September 30, 2011. Additionally, effective September 1, 2011, DH
sold 100 percent of the outstanding membership interest of Dynegy Coal Holdco
to Dynegy. As a result, the results of our Coal segment, as well as certain
items in the Other segment, are not included in our consolidated results for
the period from September 1, 2011 through September 30, 2011. However, we have
included the Adjusted EBITDA related to Legacy Dynegy for the three months
ended September 30, 2011 and the Coal segment for the period from September 1,
2011 through September 30, 2011 in this adjustment because management uses
Enterprise-wide Adjusted EBITDA to evaluate the operating performance of our
entire power generation fleet.


Segment Review of Results Quarter-Over-Quarter

Coal – The third quarter 2012 operating loss was $(53) million, compared to
third quarter 2011 operating income of $12 million. Adjusted EBITDA totaled $5
million during the third quarter 2012 compared to $50 million during the same
period in 2011. A 27% decrease in realized power prices accounted for $43
million of the decrease quarter-over-quarter.

Gas – The third quarter 2012 operating income was $52 million compared to
third quarter 2011 operating income of $28 million. Adjusted EBITDA totaled
$45 million during the third quarter 2012 compared to $52 million during the
same period in 2011. While the Gas segment reported a 39% increase in
generation volumes as a result of improved spark spreads, the $9 million in
higher energy margin was more than offset by $32 million in lower capacity and
tolling revenues primarily due to the premature cancellation of tolling and
capacity agreements in California. Additionally, the Company settled $20
million in legacy put option positions during the quarter. Partially
offsetting these results were a $7 million improvement in general and
administrative and operating and maintenance expenditures, a $20 million
reduction in option premium expense and fees, and $10 million in amortization
related to the Independence contract which, while treated as an expense in
2011, was added back for Adjusted EBITDA purposes in 2012 because it is a
non-cash item.

DNE – The third quarter 2012 operating loss was $(3) million compared to a
third quarter 2011 operating loss of $(26) million. Adjusted EBITDA totaled
$(2) million during the third quarter 2012 compared to $(1) million during the
same period in 2011. As a result of the Chapter 11 cases, lease expense for
the DNE assets is no longer being recorded, resulting in a $13 million benefit
to Adjusted EBITDA during the third quarter 2012. This was more than offset by
a decrease in revenue from hedging activities.

Liquidity

As of November 2, 2012, Dynegy’s available liquidity was $803 million which
included $429 million in unrestricted cash and cash equivalents, $13 million
in letter of credit availability and $361 million in restricted cash available
for collateral posting purposes. On November 6, 2012, Dynegy notified its
agent bank that it has elected to repay $325 million of the outstanding Dynegy
Power and Dynegy Midwest Generation term loans using excess restricted cash.
The restricted cash balances in the Collateral Account Posting accounts have
increased over the past year as a result of various collateral efficiency
initiatives and are only permitted to be used for collateral support or
repayment of the outstanding term loans. Given the company’s reduced cash
collateral needs, Dynegy intends to return this restricted cash to its
lenders, thereby reducing both outstanding debt and ongoing interest expense.

                                         September 30, 2012  November 2, 2012
                                                           
LC capacity, inclusive of required               314              294
reserves
Less: Required reserves                           (9     )         (10     )
Less: Outstanding letters of credit              (289   )       (271    )
                                                              
LC availability                                   16               13
Cash and cash equivalents                         677              429
Collateral posting account                       329           361     
                                                              
Total available liquidity                      $  1,022     $    803     
                                                                           

Consolidated Cash Flow (GAAP)

Dynegy’s cash flow used in operations totaled $(37) million for the nine
months ended September 30, 2012. During the period, our power generation
business used $56 million of cash flow from operations primarily due to
increased collateral postings to satisfy counterparty collateral demands and
other negative working capital. Dynegy’s cash flow used in operations totaled
$(4) million for the nine months ended September 30, 2011. During the same
period in 2011, our power generation business provided positive cash flow from
operations offset by a use of cash from corporate and other operations,
payments to advisors, and other general and administrative expenses.

Cash flow provided by investing activities totaled $300 million during the
first nine months of 2012, compared to cash flow used in investing activities
of $(241) million during the same period in 2011. During the same period 2011,
there was a $441 million cash outflow related to the Dynegy Midwest Generation
transfer to Legacy Dynegy from the unconsolidated DH compared to a $256
million cash inflow in 2012 due to the Dynegy Midwest Generation acquisition
by DH from Legacy Dynegy. Year-to-date 2012 capital expenditures totaled $63
million, including $42 million in maintenance capital expenditures and $21
million in environmental capital expenditures, the latter of which reflects
the Company’s continuing investment in environmental upgrades under the
Consent Decree. During the first nine months of 2011, capital expenditures
totaled $163 million, with $55 million in maintenance capital expenditures and
$108 million in environmental capital expenditures.

Consent Decree

On November 3, 2012, Dynegy completed the Baldwin Unit 2 outage marking the
completion of the Consent Decree environmental capital compliance
requirements. Approximately $1 billion of investment has been made by the
Company in emissions controls at our Illinois coal fleet resulting in what we
believe is one of the cleanest coal portfolios in the country.

“Environmentally compliant, scrubbed coal generation will continue to play a
significant role in providing both responsible and affordable electricity in
America,” said Robert C. Flexon, Dynegy President and Chief Executive Officer.
“Our Illinois coal portfolio is the model for compliance with both state and
federal environmental regulations and we will continue to advocate that all
portfolios either comply with current and proposed legislation or retire.”

PRIDE Update

Dynegy initiated a cost and performance improvement initiative known as PRIDE
(Producing Results through Innovation by Dynegy Employees) during 2011. During
the third quarter 2012, Dynegy continued to capture incremental operating
margin and cost improvement and balance sheet enhancements due to PRIDE
initiatives and is on target to meet or exceed its initial 2012 goals of $26
million in fixed cash improvements, $13 million in incremental gross margin,
and $100 million in balance sheet improvements through various liquidity
initiatives. Third quarter recurring fixed operating costs for the enterprise
were $83 million in 2012 versus $111 million for the same period last year,
while recurring General and Administrative costs for the enterprise declined
$6 million to $21 million in the current quarter as compared to the prior
year. The majority of these reductions are associated with the numerous PRIDE
initiatives.

For 2013, the company expects PRIDE to contribute an additional $16 million
and $20 million in fixed cash and gross margin improvements, respectively.
2013 balance sheet improvements due to PRIDE are targeted to be in excess of
$80 million.

Dynegy Northeast Sale and Storm Update

November 1, 2012 was the original deadline for bids in the on-going sales
process for the Roseton and Danskammer facilities. That deadline was extended
to Monday, November 5, 2012 due to superstorm Sandy which caused flooding at
the Danskammer plant when the Hudson River overflowed its banks in the early
morning on Tuesday, October 30, 2012. Remediation and repair work at the
facility are underway as well as a full assessment on the extent of the
damage.

Investor Conference Call/Webcast

Dynegy will discuss its third quarter 2012 financial results during an
investor conference call and webcast today, November 7, 2012, at 9 a.m. ET/8
a.m. CT. Participants may access the webcast and the related presentation
materials in the “Investor Relations” section of www.dynegy.com.

About Dynegy Inc.

Dynegy Inc.’s subsidiaries produce and sell electric energy, capacity and
ancillary services in key U.S. markets. The Dynegy Power, LLC power generation
portfolio consists of approximately 6,771 megawatts of primarily natural
gas-fired intermediate and peaking power generation facilities, the Dynegy
Midwest Generation, LLC portfolio consists of approximately 3,132 megawatts of
primarily coal-fired baseload power plants, and a separate portfolio consists
of approximately 1,693 megawatts from two power plants which are primarily
natural gas-fired peaking and baseload coal generation facilities.

This press release contains statements reflecting assumptions, expectations,
projections, intentions or beliefs about future events that are intended as
"forward-looking statements," particularly those statements concerning
Dynegy’s early repayment of term loan debt and its intended benefits, Dynegy’s
future role in providing responsible and affordable electricity in America,
Dynegy’s model Illinois coal portfolio, compliance with both state and federal
environmental regulations, and Dynegy’s advocacy for compliance with current
and proposed environmental legislation. Discussion of risks and uncertainties
that could cause actual results to differ materially from current projections,
forecasts, estimates and expectations of Dynegy is contained in Dynegy's
filings with the Securities and Exchange Commission (the "SEC"). Specifically,
Dynegy makes reference to, and incorporates herein by reference, the section
entitled "Risk Factors" in its most recent Form 10-K, as amended, and
subsequent reports on Form 10-Q. In addition to the risks and uncertainties
set forth in Dynegy's SEC filings, the forward-looking statements described in
this press release could be affected by, among other things, (i)ability to
sell the Roseton and Danskammer Facilities to one or more third parties as set
forth in the Amended and Restated Settlement Agreement and Joint Plan;
(ii)beliefs and assumptions relating to liquidity, available borrowing
capacity and capital resources generally, including the extent to which such
liquidity could be affected by poor economic and financial market conditions
or new regulations and any resulting impacts on financial institutions and
other current and potential counterparties; (iii)the anticipated benefits of
the overall restructuring activities, our reorganization value and the effects
of fresh start accounting; (iv)limitations on Dynegy's ability to utilize
previously incurred federal net operating losses or alternative minimum tax
credits; (v)expectations regarding our compliance with the DMG and DPC Credit
Agreements, including collateral demands, interest expense and other payments;
(vi)the timing and anticipated benefits of any repayments under the DMG and
DPC Credit Agreements; (vii) the timing and anticipated benefits to be
achieved through Dynegy's company-wide cost savings programs, including its
PRIDE initiative; (viii) expectations regarding environmental matters,
including costs of compliance, availability and adequacy of emission credits,
and the impact of ongoing proceedings and potential regulations or changes to
current regulations, including those relating to climate change, air
emissions, cooling water intake structures, coal combustion byproducts, and
other laws and regulations to which Dynegy is, or could become, subject;
(ix)beliefs, assumptions and projections regarding the demand for power,
generation volumes and commodity pricing, including natural gas prices and the
impact on such prices from shale gas proliferation and the timing of a
recovery in natural gas prices, if any; (x)sufficiency of, access to and
costs associated with coal, fuel oil and natural gas inventories and
transportation thereof; (xi)beliefs and assumptions about market competition,
generation capacity and regional supply and demand characteristics of the
wholesale power generation market, including the anticipation of higher market
pricing over the longer term; (xii) the effectiveness of Dynegy's strategies
to capture opportunities presented by changes in commodity prices and to
manage its exposure to energy price volatility; (xiii) beliefs and assumptions
about weather and general economic conditions; (xiv)projected operating or
financial results, including anticipated cash flows from operations, revenues
and profitability; (xv)Dynegy's focus on safety and its ability to
efficiently operate its assets so as to capture revenue generating
opportunities and operating margins; (xvi) beliefs about the costs and scope
of the ongoing demolition and site remediation efforts at the South Bay
Facility; (xvii) beliefs and assumptions regarding the outcome of the SCE
contract terminations dispute and the impact of such terminations on the
timing and amount of future cash flows; (xviii) beliefs about the outcome of
legal, administrative, legislative and regulatory matters, including the
impact of final rulesregarding derivatives to be issued by the CFTC under the
Dodd-Frank Act; and (xix)expectations regarding performance standards and
estimates regarding capital and maintenance expenditures. Any or all of
Dynegy's forward-looking statements may turn out to be wrong. They can be
affected by inaccurate assumptions or by known or unknown risks, uncertainties
and other factors, many of which are beyond Dynegy's control.


DYNEGY INC.
REPORTED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN MILLIONS)
                                             
                    Three Months Ended           Nine Months Ended September
                    September 30,                30,
                    2012          2011          2012            2011
                                                                  
Revenues            $  477         $  467        $  1,042         $  1,298
Cost of sales         (332  )       (278  )      (697    )       (781   )
   Gross margin,
   exclusive of
   depreciation        145            189           345              517
   shown
   separately
   below
                                                                  
Operating and
maintenance
expense,
exclusive of           (84   )        (87   )       (196    )        (303   )
depreciation and
amortization
expense shown
separately below
Depreciation and
amortization           (45   )        (60   )       (110    )        (261   )
expense
Impairments and        -              (3    )       -                (6     )
other charges
General and
administrative        (29   )       (25   )      (66     )       (87    )
expense
   Operating           (13   )        14            (27     )        (140   )
   income (loss)
                                                                  
Bankruptcy
reorganization         18             -             (252    )        -
charges
Interest expense       (48   )        (105  )       (121    )        (283   )
Debt
extinguishment         -              (21   )       -                (21    )
costs
Impairment of
Undertaking            -              -             (832    )        -
receivable,
affiliate
Other income and      -            7           31             11     
expense, net
   Loss before         (43   )        (105  )       (1,201  )        (433   )
   income taxes
                                                                  
Income tax            2            (24   )      9              109    
benefit (expense)
   Net loss         $  (41   )     $  (129  )    $  (1,192  )     $  (324   )
                                                                            


DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2012
(UNAUDITED) (IN MILLIONS)
The following table provides summary financial information data regarding our
enterprise-wide Adjusted EBITDA by segment for the three months ended
September 30, 2012:
                       
                         
                         Three Months Ended September 30, 2012
                         Coal         Gas          DNE      Other  Total
Net loss                                                               $ (41 )
Plus / (Less):
  Income tax benefit                                                    (2  )
   (1)
   Interest expense                                                      48
   Depreciation and
   amortization                                                         45  
   expense
EBITDA (2)               $  (44  )     $  87         $  (3 )   $       $ 50
                                                               10
Plus / (Less):
   Bankruptcy
   reorganization           -             -             -      (18 )     (18 )
   charges
   Restructuring            1             2             -      6         9
   costs
   Mark-to-market           11            (53  )        1      -         (41 )
   (income) loss, net
   Amortization of
   intangible assets       37          9           -     -       46  
   (4)
Adjusted EBITDA (2)         5             45            (2 )   (2  )     46
   Adjusted EBITDA
   from Legacy Dynegy      -           -           -     2       2   
   (3)
Enterprise-wide          $  5         $  45        $  (2 )   $ -    $ 48  
Adjusted EBITDA (2)
      
      For the three months ended September 30, 2012, our overall effective tax
(1)   rate on continuing operations was different than the statutory rate of
      35 percent as a result of a valuation allowance to eliminate our
      deferred tax assets partially offset by the impact of state taxes.
      EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please refer
      to Item 2.02 of our Form 8-K filed on November 7, 2012, for definitions,
      utility and uses of such non-GAAP financial measures. A reconciliation
(2)   of EBITDA to Operating income (loss) is presented below. Management does
      not allocate interest expenses and income taxes on a segment level and
      therefore uses Operating income (loss) as the most directly comparable
      GAAP measure.
                                                                   
                         Three Months Ended September 30, 2012
                         Coal          Gas           DNE       Other   Total
                                                                       
      Operating          $  (53  )     $  52         $  (3 )   $   )   $ (13 )
      income (loss)                                            (9
      Bankruptcy
      reorganization        -             -             -      18        18
      charges
      Depreciation
      and                  9           35          -     1       45  
      amortization
      expense
      EBITDA             $  (44  )     $  87        $  (3 )   $      $ 50  
                                                               10
                                                                       
      Our 2012 consolidated results reflect the results of our accounting
      predecessor, DH, which was a wholly-owned subsidiary until the Merger on
      September 30, 2012. Therefore, certain results related to Legacy Dynegy
      are not included in our consolidated results for the three months ended
(3)   September 30, 2012. However, we have included the Adjusted EBITDA
      related to Legacy Dynegy for the three months ended September 30, 2012
      in this adjustment because management uses Enterprise-wide Adjusted
      EBITDA to evaluate the operating performance of our entire power
      generation fleet. The following table presents a reconciliation of
      Legacy Dynegy Adjusted EBITDA to Operating income:
                         
                         Three Months Ended September 30, 2012
                         Coal          Gas           DNE       Other   Total
                                                                       
      Operating          $  -          $  -          $  -      $       $ 25
      income                                                   25
      Bankruptcy
      reorganization       -           -           -     (8  )    (8  )
      charges
      EBITDA                -             -             -      17        17
      Bankruptcy
      reorganization        -             -             -      8         8
      charges
      Restructuring        -           -           -     (23 )    (23 )
      charges
      Adjusted EBITDA
      from Legacy        $  -         $  -         $  -     $ 2    $ 2   
      Dynegy
                                                                       
      In connection with the DMG Acquisition, we recorded intangible assets
(4)  and liabilities related to rail transportation and coal contracts,
      respectively. The amount in the Gas segment is related to the intangible
      assets related to the Independence acquisition.
      


DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2011
(UNAUDITED) (IN MILLIONS)

The following table provides summary financial information data regarding our
enterprise-wide Adjusted EBITDA by segment for the three months ended
September 30, 2011:
                       
                         Three Months Ended September 30, 2011
                         Coal        Gas         DNE      Other   Total
Net loss                                                              $ (129 )
Plus / (Less):
      Income tax                                                        24
      expense (1)
      Interest
      expense and
      debt                                                              126
      extinguishment
      costs
      Depreciation
      and                                                              60   
      amortization
      expense
EBITDA (2)               $  40        $  61        $ (26 )   $ 6      $ 81
Plus / (Less):
      Merger
      agreement
      termination
      fee,                  (1  )        9           1         (4 )     5
      restructuring
      costs and other
      expenses
      Mark-to-market
      (income) loss,       4          (18  )     24      4      14   
      net
Adjusted EBITDA (2)      $  43        $  52        $ (1  )   $ 6      $ 100
      Adjusted EBITDA
      from Legacy          7          -         -       (1 )    6    
      Dynegy (3)
Enterprise-wide          $  50       $  52       $ (1  )   $ 5     $ 106  
Adjusted EBITDA (2)
                                                                      
      For the three months ended September 30, 2011, our overall effective tax
(1)   rate on continuing operations was different than the statutory rate of
      35 percent as a result of a valuation allowance to eliminate our
      deferred tax assets partially offset by the impact of state taxes.
      EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please refer
      to Item 2.02 of our Form 8-K filed on  November 7, 2012, for
      definitions, utility and uses of such non-GAAP financial measures. A
(2)   reconciliation of EBITDA to Operating loss is presented below.
      Management does not allocate interest expenses and income taxes on a
      segment level and therefore uses Operating income (loss) as the most
      directly comparable GAAP measure.
                         
                         Three Months Ended September 30, 2011
                         Coal         Gas          DNE       Other    Total
                                                                      
      Operating          $  12        $  28        $ (26 )   $ -      $ 14
      income (loss)
      Other items,          2            -           -         5        7
      net
      Depreciation
      and                  26         33        -       1      60   
      amortization
      expense
      EBITDA             $  40       $  61       $ (26 )   $ 6     $ 81   
                                                                      
                                                 
      Our 2011 consolidated results reflect the results of our accounting
      predecessor, DH, which was our wholly-owned subsidiary until the Merger
      on September 30, 2012. Therefore, certain results related to Legacy
      Dynegy are not included in our consolidated results for the three months
      ended September 30, 2011. Additionally, effective September 1, 2011, we
      completed the DMG Transfer. As a result, the results of our Coal
      segment, as well as certain items in the Other segment, are not included
(3)   in our consolidated results for the period from September 1, 2011
      through September 30, 2011. However, we have included the Adjusted
      EBITDA related to Legacy Dynegy for the three months ended September 30,
      2011 and the Coal segment for the period from September 1, 2011 through
      September 30, 2011 in this adjustment because management uses
      Enterprise-wide Adjusted EBITDA to evaluate the operating performance of
      our entire power generation fleet. The following table presents a
      reconciliation of Legacy Dynegy Adjusted EBITDA to Operating loss:
                         
                         Three Months Ended September 30, 2011
                         Coal         Gas          DNE       Other    Total
                                                                      
      Operating loss     $  (8  )     $  -         $ -       $ (1 )   $ (9   )
      Depreciation
      and                   13           -           -         -        13
      amortization
      expense
      Other items,         (2  )       -         -       (5 )    (7   )
      net
      EBITDA                3            -           -         (6 )     (3   )
      Restructuring         5            -           -         5        10
      charges
      Mark-to-market       (1  )       -         -       -      (1   )
      income, net
      Adjusted EBITDA
      from Legacy        $  7        $  -        $ -      $ (1 )   $ 6    
      Dynegy
                                                                             


DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2012
(UNAUDITED) (IN MILLIONS)
                    
The following table provides summary financial information data regarding our
enterprise-wide Adjusted EBITDA by segment for the nine months ended September
30, 2012:
                       
                       Nine Months Ended September 30, 2012
                       Coal        Gas       DNE       Other       Total
Net loss                                                               $ (1,192 )
Plus / (Less):
  Income tax                                                            (9     )
   benefit (1)
   Interest expense                                                      121
   Depreciation and
   amortization                                                         110    
   expense
EBITDA (2)             $ (57    )   $ 177      $ (612 )   $ (478   )   $ (970   )
Plus / (Less):
   Impairment of
   Undertaking           -            -          -          832          832
   receivable,
   affiliate
   Bankruptcy
   reorganization        -            -          589        (337   )     252
   charges
   Interest income
   on Undertaking        -            -          -          (24    )     (24    )
   receivable
   Restructuring
   costs and other       (3     )     2          -          6            5
   expense
   Mark-to-market
   income (loss),        13           (106 )     1          -            (92    )
   net
   Amortization of
   intangible assets     49           29         -          -            78
   (4)
   Premium               -            1          -          -            1
   adjustment
   SCE termination       -            (21  )     -          -            (21    )
   Other                5          2        -        -          7      
Adjusted EBITDA (2)      7            84         (22  )     (1     )     68
   Adjusted EBITDA
   from Legacy          7          -        -        2          9      
   Dynegy (3)
Enterprise-wide        $ 14        $ 84      $ (22  )   $ 1         $ 77     
Adjusted EBITDA (2)
                                                                       
      For the nine months ended September 30, 2012, the difference between the
      effective tax rate of 1 percent and the statutory rate of 35 percent
      resulted primarily from a valuation allowance to eliminate our net deferred
(1)   tax assets partially offset by the impact of state taxes. As of September
      30, 2012, we do not believe we will produce sufficient future taxable
      income, nor are there tax planning strategies available, to realize our net
      deferred tax assets not otherwise realized by reversing temporary
      differences.
      EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please refer to
      Item 2.02 of our Form 8-K filed on November 7, 2012, for definitions,
      utility and uses of such non-GAAP financial measures. A reconciliation of
(2)   EBITDA to Operating income (loss) is presented below. Management does not
      allocate interest expenses and income taxes on a segment level and
      therefore uses Operating income (loss) as the most directly comparable GAAP
      measure.
                                                                    
                       Nine Months Ended September 30, 2012
                       Coal         Gas        DNE        Other        Total
                                                                       
      Operating        $ (75    )   $ 84       $ (23  )   $ (13    )   $ (27    )
      income (loss)
      Impairment of
      Undertaking        -            -          -          (832   )     (832   )
      receivable,
      affiliate
      Bankruptcy
      reorganization     -            -          (589 )     337          (252   )
      charges
      Depreciation
      and                13           91         -          6            110
      amortization
      expense
      Other items,      5          2        -        24         31     
      net
      EBITDA           $ (57    )   $ 177     $ (612 )   $ (478   )   $ (970   )
                                                                       
                                                                       
      Our 2012 consolidated results reflect the results of our accounting
      predecessor, DH, which was a wholly-owned subsidiary until the Merger on
      September 30, 2012. Therefore, certain results related to Legacy Dynegy are
      not included in our consolidated results for the nine months ended
      September 30, 2012. Additionally, effective June 5, 2012, we completed the
      DMG Acquisition. As a result, the results of our Coal segment, as well as
(3)   certain items in the Other segment, are not included in our consolidated
      results for the period from January 1, 2012 through June 5, 2012. However,
      we have included the Adjusted EBITDA related to Legacy Dynegy for the nine
      months ended September 30, 2012 and the Coal segment for the period from
      January 1, 2012 through June 5, 2012 in this adjustment because management
      uses Enterprise-wide Adjusted EBITDA to evaluate the operating performance
      of our entire power generation fleet. The following table presents a
      reconciliation of Legacy Dynegy Adjusted EBITDA to Operating income (loss):
                       
                       Nine Months Ended September 30, 2012
                       Coal         Gas        DNE        Other        Total
                                                                       
      Operating        $ (2,715 )   $ -        $ -        $ 1,683      $ (1,032 )
      income (loss)
      Depreciation
      and                78           -          -          -            78
      amortization
      expense
      Bankruptcy
      reorganization     -            -          -          (8     )     (8     )
      charges
      Loss from
      unconsolidated    -          -        -        (1     )    (1     )
      investment
      EBITDA             (2,637 )     -          -          1,674        (963   )
      Loss (gain) on
      Coal Holdco        2,652        -          -          (1,711 )     941
      Transfer
      Bankruptcy
      reorganization     -            -          -          8            8
      charges
      Restructuring
      costs and          -            -          -          30           30
      other expense
      Mark-to-market     (8     )     -          -          -            (8     )
      income, net
      Loss from
      unconsolidated    -          -        -        1          1      
      investment
      Adjusted
      EBITDA from      $ 7         $ -       $ -       $ 2         $ 9      
      Legacy Dynegy
                                                                       
      In connection with the DMG Acquisition, we recorded intangible assets and
(4)   liabilities related to rail transportation and coal contracts,
      respectively. The amount in the Gas segment is related to the intangible
      assets related to the Independence acquisition.
      


DYNEGY INC.
REPORTED SEGMENTED RESULTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2011
(UNAUDITED) (IN MILLIONS)
                       
        The following table provides summary financial information data
        regarding our enterprise-wide Adjusted EBITDA by segment for the nine
        months ended September 30, 2011:
                           Nine Months Ended September 30, 2011
                           Coal         Gas    DNE      Other     Total
Net loss                                                              $ (324 )
Plus / (Less):
  Income tax benefit                                                   (109 )
   (1)
   Interest expense and
   debt extinguishment                                                  304
   costs
   Depreciation and                                                    261  
   amortization expense
EBITDA (2)                 $  93         $ 110   $ (65 )   $ (6  )    $ 132
Plus / (Less):
   Merger agreement
   termination fee,           (1   )       12      (2  )     6          15
   restructuring costs
   and other expenses
   Impairment and other       -            -       2         -          2
   charges
   Mark-to-market loss,      76         13     47      5        141  
   net
Adjusted EBITDA (2)           168          135     (18 )     5          290
   Adjusted EBITDA from      7          -      -       (2  )     5    
   Legacy Dynegy (3)
Enterprise-wide            $  175       $ 135   $ (18 )   $ 3       $ 295  
Adjusted EBITDA (2)
                                                                      
        For the nine months ended September 30, 2011, the difference between
        the effective tax rate of 25 percent and the statutory rate of 35
        percent resulted primarily from a valuation allowance to eliminate our
(1)     net deferred tax assets partially offset by the impact of state taxes
        which included a benefit of $9 million related to an increase in state
        NOLs due to acceptance of amended returns, partially offset by an
        expense of $3 million related to an increase in the Illinois statutory
        rate.
        EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please
        refer to Item 2.02 of our Form 8-K filed on November 7, 2012, for
        definitions, utility and uses of such non-GAAP financial measures. A
(2)     reconciliation of EBITDA to Operating loss is presented below.
        Management does not allocate interest expenses and income taxes on a
        segment level and therefore uses Operating income (loss) as the most
        directly comparable GAAP measure.
                                                                   
                           Nine Months Ended September 30, 2011
                           Coal          Gas     DNE       Other    Total
                                                                     
        Operating          $  (65  )     $ 9     $ (65 )   $ (19 )   $ (140  )
        income (loss)
        Other items,          2            1       -         8       11
        net
        Depreciation
        and                  156        100    -       5      261     
        amortization
        expense
        EBITDA             $  93        $ 110   $ (65 )   $ (6  )   $ 132   
                                                                     
                                                                     
        Our 2011 consolidated results reflect the results of our accounting
        predecessor, DH, which was a wholly-owned subsidiary until the Merger
        on September 30, 2012. Therefore, certain results related to Legacy
        Dynegy are not included in our consolidated results for the nine
        months ended September 30, 2011. Additionally, effective September 1,
        2011, we completed the DMG Transfer. As a result, the results of our
        Coal segment, as well as certain items in the Other segment, are not
(3)     included in our consolidated results for the period from September 1,
        2011 through September 30, 2011. However, we have included the
        Adjusted EBITDA related to Legacy Dynegy for the nine months ended
        September 30, 2011 and the Coal segment for the period from September
        1, 2011 through September 30, 2011 in this adjustment because
        management uses Enterprise-wide Adjusted EBITDA to evaluate the
        operating performance of our entire power generation fleet. The
        following table presents a reconciliation of Legacy Dynegy Adjusted
        EBITDA to Operating loss:
                                                                     
                           Coal          Gas     DNE       Other     Total
                                                                     
        Operating loss     $  (8   )     $ -     $ -       $ (2  )   $ (10   )
        Depreciation
        and                   13           -       -         -       13
        amortization
        expense
        Other items,         (2   )      -      -       (5  )   (7      )
        net
        EBITDA                3            -       -         (7  )   (4      )
        Restructuring         5            -       -         5       10
        charges
        Mark-to-market       (1   )      -      -       -      (1      )
        income, net
        Adjusted EBITDA
        from Legacy        $  7         $ -     $ -      $ (2  )   $ 5     
        Dynegy
                                                                             


DYNEGY INC.
OPERATING DATA
                                                              
The following table provides summary financial data regarding our Gas and DNE
segments results of operations for the three and nine months ended September
30, 2012 and 2011, respectively. As a result of the DMG Transfer, 2011 results
only include the results of the Coal segment through August 31, 2011.The
following table provides summary financial data regarding our Coal segment
results of operations for the three months ended September 30, 2012 and 2011,
respectively. As a result of the DMG Acquisition, 2012 results only include
the results of the Coal segment for the period of June 6, 2012 through
September 30, 2012. Additionally, as a result of the DMG Transfer, 2011
results only include the results of the Coal segment for the period from
January 1, 2011 through August 31, 2011. The following table provides summary
financial data regarding our Coal segment results of operations for the nine
months ended September 30, 2012 and 2011, respectively:
                         
                             Three Months Ended            Nine Months Ended
                             September 30,                 September 30,
                             2012          2011           2012       2011
Coal
Million Megawatt Hours          4.9         3.8            6.6          15.6
Generated (9)
In Market Availability
for Coal Fired Facilities       93    %     93     %       93     %     92   %
(2)
Average Quoted On-Peak
Market Power Prices
($/MWh) (5):
           Indiana (Indy     $  40          $ 52           $ 40       $ 45
           Hub) (10)
                                                                      
Gas
Million Megawatt Hours          6.2         4.4            16.9         9.6
Generated (7)
Average Capacity Factor
for Combined Cycle              61    %     44     %       57     %     33   %
Facilities (3)
Average Quoted On-Peak
Market Power Prices
($/MWh) (4):
           Commonwealth
           Edison (NI        $  40          $ 48           $ 34       $ 44
           Hub)
           PJM West          $  45          $ 58           $ 40       $ 55
           North of Path     $  37          $ 40           $ 30       $ 36
           15 (NP 15)
           New York -        $  41          $ 47           $ 35       $ 43
           Zone A
           Mass Hub          $  45          $ 56           $ 39       $ 57
Average Market Spark
Spreads ($/MWh) (6):
           Commonwealth
           Edison (NI        $  20          $ 19           $ 16       $ 14
           Hub)
           PJM West          $  24          $ 28           $ 20       $ 21
           North of Path     $  13          $ 7            $ 8        $ 3
           15 (NP 15)
           New York -        $  18          $ 14           $ 13       $ 10
           Zone A
           Mass Hub          $  24          $ 23           $ 18       $ 19
                                                                      
Average Natural Gas Price    $  2.87        $ 4.13         $ 2.53     $ 4.21
- Henry Hub ($/MMBtu) (8)
                                                                      
DNE
Million Megawatt Hours          0.4         0.5            0.7          1.1
Generated
In Market Availability
for Coal Fired Facilities       83    %     97     %       87     %     97   %
(1)
Average Capacity Factor -       22    %     37     %       12     %     34   %
Coal
Average Capacity Factor -       8     %     7      %       4      %     4    %
Gas
Average Quoted On-Peak
Market Power Prices
($/MWh) (4):
           New York -        $  50          $ 63           $ 43       $ 61
           Zone G
Average Market Spark
Spreads ($/MWh) (6):
           Fuel Oil          $  (138  )     $ (119 )       $ (150 )   $ (116 )
                                                                      
                                                                      
         Reflects the percentage of generation available during periods when
(1)     market prices are such that these units could be profitably
         dispatched.
         Reflects the percentage of generation available during periods Coal
         was included in our consolidated results when market prices are such
         that these units could be profitably dispatched. In Market
(2)      Availability for Coal Fired Facilities was 92 percent for the full
         three months ended September 30, 2011. In Market Availability for
         Coal Fired Facilities was 93 percent for the full nine months ended
         September 30, 2012 and 2011, respectively.
(3)      Reflects actual production as a percentage of available capacity.
(4)      Reflects the average of day-ahead quoted prices for the periods
         presented and does not necessarily reflect prices we realized.
         Reflects the average of day-ahead quoted prices for the periods Coal
         was included in our consolidated results and does not necessarily
(5)      reflect prices we realized. The average of day-ahead quoted prices
         was $47 for the full three months ended September 30, 2011. The
         average of day-ahead quoted prices were $35 and $44 for the full nine
         months ended September 30, 2012 and 2011, respectively.
         Reflects the simple average of the spark spread available to a 7.0 
         MMBtu/MWh heat rate generator or an 11.0 MMBtu/MWh heat rate fuel
(6)      oil-fired generator selling power at day-ahead prices and buying
         delivered natural gas or fuel oil at a daily cash market price and
         does not reflect spark spreads available to us.
         Includes our ownership percentage in the MWh generated by our
(7)      investment in the Black Mountain power generation facility for the
         three and nine months ended September 30, 2012 and 2011,
         respectively.
(8)      Reflects the average of daily quoted prices for the periods presented
         and does not reflect costs incurred by us.
         Reflects production volumes in million MWh generated during the
         periods Coal was included in our consolidated results. Generation
(9)      volumes were 5.1 million MWh for the full three months ended
         September 30, 2011. Generation volumes were 15.2 million MWh and 16.9
         million MWh for the full nine months ended September 30, 2012 and
         2011, respectively.
(10)     The market reference for 2011 was Cinergy (Cin Hub).

Contact:

Dynegy Inc.
Media: 713-767-5800
or
Analysts: 713-507-6466